Clause 28 - Recovery of overpayments
Tax Credits Bill
5:45 pm
Mr Paul Boateng (Financial Secretary, HM Treasury; Brent South, Labour)
The hon. Member for Northavon referred to the collective consciousness of the Revenue. That is a rather scary phrase. One thinks back to watching ''Doctor Who'' in one's youth, and imagines something amorphous and pulsating in a hidden room in the Treasury. There is no such entity, but we are anxious to ensure that we take into account the sort of constructive representation that the hon. Member for Teignbridge made. I do not doubt that the hon. Gentleman's point will be taken into account not only in the guidance, to which I have referred, but in the care that will be taken in drafting the standard communications with those in receipt of tax credits.
The exact wording of those communications is not an appropriate matter for the Committee, but it is important to make sure that the wording of all communications will not be such as will instil apprehension and fear. That is a serious point, because for many people, any communication from what is perceived as authority—or from actual authority—instils fear. That is something that we must take into account. It is important to remember that for those in receipt of income support or jobseeker's allowance there is no power to deduct tax credit overpayments from the amount they receive.
As I said earlier, the Inland Revenue will need to consider cases individually. It will consider the amount of the overpayment and the individual's resources before determining the period over which payment should be recovered. With that explanation, I hope
that the hon. Gentleman will withdraw the amendment.