Tax credits attacked
The system of tax credits is 'flawed' and is not aiding the low income families that it was designed to help, according to the parliamentary ombudsman.The report, Tax Credits: Getting it Wrong?, suggests that the scheme is so complicated that even MPs cannot understand it and has meant that many families have ended up in debt as a result and discouraged others from claiming the benefit or finding jobs. Many families are suffering "extreme worry and anxiety" because of inconsistencies in the system, the ombudsman Ann Abraham reported, and in particular because of the "unduly harsh" demands for repayments where overpayments have been made.A spokesperson for HM Revenue and Customs said that it would respond "positively" to the report's findings, but argued that the tax credit system is a boon to the majority of its recipients.
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