This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7505860.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Tax credit problems 'cost £1.5bn' | Tax credit problems 'cost £1.5bn' |
(30 minutes later) | |
Up to £1.5bn in tax credit payments was lost to fraud, accidental overclaims and other errors in 2006/07, the National Audit Office says. | |
This accounted for 7.2% and 8.4% of all the money given out in credits during this period, it added. | |
The NAO's head, Tim Burr, said the size of the problem facing HM Revenue and Customs was "significant". | |
But the proportion of tax credit funding lost in this way was falling, the NAO's report said. | |
'Respond effectively' | 'Respond effectively' |
The figure for 2006/07 was between £1.28bn and £1.5bn, it was calculated. This was down from between £1.3bn and £1.64 the previous year. | The figure for 2006/07 was between £1.28bn and £1.5bn, it was calculated. This was down from between £1.3bn and £1.64 the previous year. |
Mr Burr, the comptroller general, said: "Levels of tax credits error and fraud are significant when compared with the expenditure on the scheme... | Mr Burr, the comptroller general, said: "Levels of tax credits error and fraud are significant when compared with the expenditure on the scheme... |
"HMRC now has a target and has developed a strategy for reducing error and fraud. It will need to monitor how the measures it adopts are contributing to the achievement of the target and to respond effectively." | "HMRC now has a target and has developed a strategy for reducing error and fraud. It will need to monitor how the measures it adopts are contributing to the achievement of the target and to respond effectively." |
Treasury Minister Jane Kennedy said levels of fraud and error were falling, and that no more that 5% of tax credit payments should be lost in this way by April 2011. | Treasury Minister Jane Kennedy said levels of fraud and error were falling, and that no more that 5% of tax credit payments should be lost in this way by April 2011. |
Liberal Democrat work and pensions spokesman Jenny Willott said: "The tax credits system is so complex that it is abused by fraudsters, misunderstood by claimants and mismanaged by officials." | Liberal Democrat work and pensions spokesman Jenny Willott said: "The tax credits system is so complex that it is abused by fraudsters, misunderstood by claimants and mismanaged by officials." |
Earlier this year it was revealed that rightful tax credit claimants had been overpaid by £1bn in 2006/07. | Earlier this year it was revealed that rightful tax credit claimants had been overpaid by £1bn in 2006/07. |
Previous version
1
Next version