Citizens Advice raises tax credit concerns

The charity makes clear that thousands of Brits have faced debt management problems as a result of money being demanded back from them by the government after claims that tax credits were paid in error.

And the issue ought to be addressed at a national level in light of the 10,000 people across England and Wales who approached the charity for debt advice for this reason during the 2005-06 financial year, it has been claimed.

David Harker, chief executive of Citizens Advice, said: “Thousands of families are also being threatened with court action for the recovery of overpayments about which they are still challenging or awaiting explanation, sometimes not even knowing yet the amount due.”

“Urgent change is still needed to help the thousands of families experiencing huge problems with the system [of tax credit payments],” he added.

A new partnership arrangement between Citizens Advice and the Association of British Credit Unions aimed at reducing financial exclusion was announced last week.