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Welfare Tax Credits

Volume 503: debated on Monday 11 January 2010

To ask the Chancellor of the Exchequer what research has been undertaken into the number of tax credits claimants who do not renew their claim or subsequently reclaim and who would still be entitled to receive tax credits; and if he will make a statement. (308183)

If a family does not renew their tax credit award, by confirming or updating their circumstances, it is not possible to determine whether they are still entitled. Therefore reliable estimates of the number of claimants who would still be entitled to receive tax credits are not available.

HM Revenue and Customs has published research which explores claimants’ understanding of the tax credits renewal process. The report is available at:

http://www.hmrc.gov.uk/research/report-52-final.pdf

To ask the Chancellor of the Exchequer how many requests have been made to expedite individuals’ tax credits claims (a) by (i) local authorities, (ii) voluntary agencies, (iii) Jobcentre Plus offices, (iv) hospitals, (v) hon. Members, (vi) local councillors and (vii) claimants and (b) in total in (A) 2005-06, (B) 2006-07, (C) 2007-08 and (D) 2008-09. (308190)

The information requested is not available as HM Revenue and Customs’ systems do not capture the number of requests to expedite individuals’ tax credits claims.

To ask the Chancellor of the Exchequer what the (a) average and (b) highest number of tax credits award notices sent to a unique claimant was in the course of (i) one year and (ii) one month in (A) 2005-06, (B) 2006-07, (C) 2007-08 and (D) 2008-09. (308194)

Award notices are issued at the following points in the tax credits cycle:

An initial award notice, following a successful claim.

An amended award notice when a claimant notifies HM Revenue and Customs (HMRC) of a change of circumstances or income during a year.

A finalised award notice following the completion of the renewal process.

Where payments are continuing following a finalised award for one year, an award notice is issued to advise of the provisional payments HMRC will be making for the subsequent year.

Each adult involved in a tax credits claim received an average of between two and three award notices in each of the specified income tax years. This average is derived by dividing the total number of award notices issued each year by a snapshot of the number of adult claimants as in April 2006; April 2007; April 2008 and April 2009.

For information on the number of tax credits award notices issued in 2005-06 and 2006-07 I refer my right hon. Friend to the answer given to the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Danny Alexander) on 2 April 2008, Official Report, column 973W. A total of around 29.9 million award notices were issued in 2007-08 and around 33.2 million award notices were issued in 2008-09.

Information on the highest number of tax credits award notices sent to a unique claimant is only available at disproportionate cost.

To ask the Chancellor of the Exchequer how many tax credit applications are being processed for (a) UK nationals, (b) non-UK EEA nationals, (c) A8 EEA nationals, (d) A2 EEA nationals and (e) non-European nationals. (308205)

HM Revenue and Customs (HMRC) use rapid data capture (RDC) techniques for scanning tax credits claims electronically and capturing the details supplied on the claim on the tax credits computer system. Further information about RDC is published on the HMRC website at:

www.hmrc.gov.uk/manuals/ntcmanual/rdc/ntc1101100.htm

All claims are subject to a range of automated checks. Tax credits entitlement is calculated automatically if all checks are passed. HMRC often need to make more detailed inquiries into incomplete claims or those that fail risk checks. HMRC may be unable to process and pay those claims within the usual target times.

HMRC also seek additional information from claimants from other EEA member states, A2 and A8 nationals to verify that eligibility criteria for tax credits are met.

To ask the Chancellor of the Exchequer what the average length of time was between the receipt of an application to his Department for tax credit and the issue of a receipt for the application in (a) 2005-06, (b) 2006-07, (c) 2007-08 and (d) 2008-09; and what the average length of time was in respect of applicants in the (i) upper and (ii) lower quartiles in each such year. (309789)

The information is not available, as HM Revenue and Customs (HMRC) does not issue receipts for tax credits claims.

For information about HMRC targets and performance outturn in relation to tax credits in 2008-09 and earlier years, I refer the right hon. Member to my recent answer to him on 5 January 2010, Official Report, column 179W.

In 2009-10 HMRC aims to clear 60 per cent. of new claims in 15 calendar days.