Claiming tax credits ‘could ease debt worries’

Those struggling with debt concerns could be adding to their worry by not claiming all available tax credits, new statistics have suggested.

Research carried out by unbiased.co.uk found failure to do so will cost UK taxpayers more than £3.9 billion in 2010 and 2011.

The website’s Tax Action report predicted nine per cent – almost one-in-ten – of entitled families will miss the opportunity to gain child tax credits this year.

It noted the average annual amount per household totals around £3,411, which results in £1.5 million of tax benefits going unclaimed every 12 months.

This indicates to a one per cent increase on 2009, when eight per cent of families that could have claimed, did not.

Moreover, the portal found more than a quarter of older people will fail to register for their pension credits.

Such a wasted chance will result in a further £2.4 billion of unclaimed cash not being accessed.

And the organisation has called on consumers to take note and not miss out on this “free money” any longer – especially in the ongoing climate of economic uncertainty.

Karen Barrett, chief executive at unbiased.co.uk, commented: “The system has been set up to help those who need it most and quite simply if you don’t claim your credit, it expires.”

A recent study conducted by moneysupermarket.com revealed many Britons appear disconcertingly lackadaisical about their financial situations.

It showed 60 per cent would not be concerned about their debts, even if they were to suddenly be made redundant.

By Joe Shervin