TAX CREDITS OVERPAYMENTS

That this House notes with concern the 1.6 million tax credits awards which were overpaid in 2013-14; acknowledges that this amounts to 30 per cent of the total awards paid and that 159,000 of the overpayments were made to households whose claim should have been terminated; believes that many overpayments were due to tax credit applicants being unaware of the requirement to return an annual renewal declaration by 31 July even if their entitlement had ceased at the end of the financial year in April; recognises that the lack of clear guidance from HM Revenue and Customs has created financial difficulties for those who have had to pay back money they were mistakenly overpaid; further notes that some applicants are not informed of an overpayment until the next financial year; and calls on the Government to introduce measures to address this issue as a matter of urgency.