FE exclusive in the Independent: tax credits money clawed back from Britain’s poor under new powers
Our latest research in the Independent: We know tax credits were overpaid. Now it's revealed the figure is £5.6bn.
"The debt owed to government after more than a decade of overpaying tax credits to some of Britain's poorest citizens has now reached more than £5.6bn. The startling figure comes as the tax office takes increasingly aggressive steps to claw back money that is often overpaid because of its own errors.
It plans to seize money from around 3,000 people's bank accounts a year for overpaid tax credits, according to figures released by HM Revenue and Customs (HMRC), in response to a Freedom of Information request by the campaign group False Economy.
Since tax credits go to those on lower incomes, and mistakes may not be discovered for a year or more, when an overpayment happens without the recipient realising, it can often be impossible for them to find the money to repay."
- Posted by: False Economy at 7:59am on 1 September 2014
- Filed under: Benefits, Inequality, Tax justice
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