The Welsh Liberal Democrat spokesperson for Communities, Social Justice and Housing, Peter Black, has hit out at the UK Labour Government for it's failures over tax credits.
In her second report on Family Tax Credits "Tax Credits: Getting it Wrong?" the Parliamentary Ombudsman has said that the tax credit system is 'unfair' to some of the UK's poorest families and even forces some families into debt. While many of the problems which caused the overpayments have been ironed out, families are still being chased for the estimated two million overpayments from 2005 and 2006.
"This is not a minor policy mistake, this is an absolute disgrace." said Mr Black. "The issue here is not the fact that overpayments occurred, that is in the past. What we have now is the aggressive strategy of forcing some of the poorest in our communities to repay large quantities of money in order to rectify the governments mistakes."
"A small overpayment of only £10 a week could leave a family with over £1,000 within two years. Families can not be expected to notice a mistake that small, when they did they were very often told it was not an error. They now find themselves with large debts. Families whose tax credits have been reduced this year are now too scared to see if this is a mistake in case it reveals an overpayment the previous year which they will have to repay."
"Tax credits were meant to help the poorest in our communities, instead it has become a millstone around many families necks and is dragging them further into poverty. This mistake must fall at the feet of the UK government . They must ensure that the Department of Work and Pensions is acting in the best interests of those who need the most help."
