(2) how many and what percentage of tax credit claimants have been overpaid more than (a) once, (b) twice, (c) three times and (d) four times since their claim began.
Overpayments fell very significantly in 2006-07, to £1 billion, as a direct result of the successful implementation of a package of measures to improve tax credits announced at PBR 2005. They are now less than half the level of the first year of the system and through the Tax Credits Transformation programme we are continuing to help people to reduce the likelihood of getting an over or under-payment on their award.
Information on the number of tax credit awards with more than one, two and three underpayments or overpayments, between 2003-04 and 2006-07, is provided in the following table.
Regularity with which overpayment or underpayment occurred Number of awards underpaid Number of awards overpaid (a) More than once1 555 1,811 (b) More than twice2 82 461 (c) More than three times 6 63 Proportion of all tax credit awards in 2003-04, 2004-05, 2005-06 and 2006-07, which were under/overpaid more than once (Percentage) 6 21 1 Number is cumulative and therefore includes (b) and (c). 2 Number is cumulative and therefore includes (c).
Information on the number of families incurring underpayments or overpayments in 2007-08 is not yet available.