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Welfare Tax Credits: Overpayments

Volume 468: debated on Monday 26 November 2007

To ask the Chancellor of the Exchequer (1) what has been spent on recovering tax credit overpayments in each year since the introduction of tax credits; and what estimate he has made of future costs of recovery; (166666)

(2) what estimate he has made of the cost of writing off debts arising from the overpayment of tax credits for (a) 2003-04, (b) 2004-05, (c) 2005-06, (d) 2006-07 and (e) all overpayments.

[holding answer 20 November 2007]: The total costs of administration of tax credits from 2003-04 to 2004-06 were published on 6 July 2007 in part two of the Standard Report on HM Revenue and Customs 2006-07 accounts together with provisional estimates for 2006-07. Details of administration costs for earlier years were published in the Inland Revenue Trust statements for those years. Details of tax credits overpayments written off from 2003-04 to 2005-06 were published in the same report.

Details of Inland Revenue losses, including tax written off by HM Revenue and Customs, is published annually in the departmental accounts and are available on the departmental website.

Information on the amount spent on recovering tax credits overpayments and the cost of writing off debts arising from the overpayment of tax credits is not available.