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The Welsh Liberal Democrats have highlighted Government figures, which show that 100,000 fewer families nationwide received Child Tax Credit in 2007 than in the previous year.
These figures have come to light at the same time as an Institute for Public Policy Research (IPPR) report showed 68,000 children in Wales live in poverty despite having at least one working parent.
Welsh Liberal Democrat Spokesperson for Social Justice, Peter Black said:
"The drop in the number of families receiving Child Tax Credit is deeply worrying. It is clear that the most vulnerable families are being put off claiming Tax Credits for fear of being plunged into debt when the Government claws back overpayments. Is it any wonder that Labour sneaked out these figures so close to Christmas?
"Families could be missing out on up to £6,090 a year. Labour's incompetent handling of personal data is likely to put more people off claiming credits and benefits. Confidence must be restored urgently, or more people will miss out.
"If Labour are serious about rescuing the 170,000 children living in poverty in Wales then they need to do more to encourage parents into work, to simplify the benefits system, and to make certain our personal data is secure."
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