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Top Working Tax Credit & Child Tax Credit topic #1211

Subject: "Writing off overpaid Tax Credits" First topic | Last topic
stephenh
                              

Welfare Benefits Worker, Arrowe Park Hospital CAB, Wirral, Merseyside
Member since
18th Feb 2005

Writing off overpaid Tax Credits
Wed 03-Aug-05 10:12 AM

I think it stinks that the government continue to adopt double standards in dealing with the issue of tax credit overpayments. If the DWP overpay benefit due to official error then the benefit is non recoverable irrespective of whether or not the claimant knew they were being overpaid, yet with tax credit (and housing/council tax benefit) they continue to put in the added condition that if the claimant knew they were being overpaid, recovery is justified.

  

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Replies to this topic
RE: Writing off overpaid Tax Credits, carol_laidlaw, 18th Aug 2005, #1
RE: Writing off overpaid Tax Credits, abcxyz, 07th Sep 2005, #2
      RE: Writing off overpaid Tax Credits, jj, 07th Sep 2005, #3

carol_laidlaw
                              

welfare benefits adviser, Local Solutions, Liverpool
Member since
02nd Mar 2004

RE: Writing off overpaid Tax Credits
Thu 18-Aug-05 12:22 PM

What stinks is that the TCO are not being made to pay for their own mistakes, like the DWP. Even when a claimant notices they are getting the wrong amount of tax credit and informs them, AND they fail to act on the information for months, the TCO can still recover the overpayment. And there's no right of appeal!

  

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abcxyz
                              

Head of Policy, adviceNI, 1 Rushfield Avenue, Belfast
Member since
21st Feb 2005

RE: Writing off overpaid Tax Credits
Wed 07-Sep-05 01:32 PM

Another slightly worrying take on this. Instead of HMRC adopting an approach more like DWP, could well evolve that the opposite happens ie. DWP (and SSA in Northern Ireland) may become more like HMRC in terms of recovering overpayments. I have been to meetings where the view was expressed that regardless of the reasons, an overpayment is an overpayment from public funds and should be recovered. Wonder what lies ahead?

  

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jj
                              

welfare rights adviser, saltley & nechells law centre birmingham
Member since
21st Jan 2004

RE: Writing off overpaid Tax Credits
Wed 07-Sep-05 06:46 PM

i think you're right. it has been going this way since the 1998 Act, and the recent Commissioners' decisions also head that way, despite the political talk of social justice. there is a huge inequality of arms, and the public are not only expected to pay for the scheme and its administration - which seems to largely consist in giving huge sums of public money to multinationals, but are also expected to underwrite its mistakes and poor performance. what's worse, the very poorest have to pay as individuals, for the mistakes of officials. it's very disproportionate. and if the state can't lose, it has very little incentive to get it right in the first place...

Injustice has a strange way of bouncing back on the perpetrators, that's all i can say at the present time...

  

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Top Working Tax Credit & Child Tax Credit topic #1211First topic | Last topic