Tax Credits

Part of the debate – in the House of Lords at 11:30 am on 11 October 2007.

Alert me about debates like this

Photo of Lord Oakeshott of Seagrove Bay Lord Oakeshott of Seagrove Bay Spokesperson in the Lords, Treasury, Spokesperson in the Lords, Work & Pensions 11:30, 11 October 2007

My Lords, I thank the Minister for that reply, but it completely fails to match up to the scale of the problem. This is not about the HMRC. Do the Government accept the ombudsman's finding that complainants frequently explain how they budget carefully to avoid debt and have little or no savings to fall back on, and then how distressing it is for them that the tax credits system lands them with a significant debt at the end of the year? Do they accept the finding that the annualised system is basically a serious design fault? In particular, do the Government accept the ombudsman's call that Parliament must examine the whole structure of the tax credits system? This is not about HMRC but about a Government sorting out a failed system.