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Welfare Tax Credits: Compensation

Volume 474: debated on Tuesday 1 April 2008

To ask the Chancellor of the Exchequer (1) for what reasons HM Revenue and Customs pays compensation to tax credit claimants; and how the amount of compensation is determined; (194482)

(2) how many compensation payments have been made by HM Revenue and Customs to tax credit claimants for problems with their awards in each year since April 2003; what the sum of payments in each quarter was; and how many families have received (a) one, (b) two, (c) three and (d) more than three compensation payments.

The circumstances in which HM Revenue and Customs will make compensation payments to its customers are explained in the Department's fact sheet C/FS ‘Complaints and Putting Things Right’ which is available at www.hmrc.gov.uk/factsheets/complaints-factsheet.pdf. The Department will pay compensation for reasonable costs incurred as a direct result of its mistakes or delays and to recognise worry and distress caused by those mistakes and delays. The value of each payment is decided according to individual circumstances.

For the number and value of such payments made to tax credit customers I refer the hon. Member to the answer given to the hon. Member for St. Albans (Anne Main) on 23 January 2008, Official Report, columns 2100-01W. The updated figures for 2007-08 to the end of February are:

2007-08

Value (£ million)

0.414

Number

9,374

Information on the number of such payments made to each family is not available in that level of detail requested.