Tax credit declared a ‘massive success’
The Government’s child tax credit system is a “massive success”, according Paymaster General Dawn Primarolo.
Speaking at a Child Poverty Action Group conference in London, Ms Primarolo said: “We expected that by next April, after a full year, six million families would be benefiting. So after just four months, we have achieved over 95% of our target for the year, a massive success by anyone’s standards.”
She added: “Tax credits play a crucial role in support for mums who want to go back to work; help for families coping with the costs of a new baby; help for hard-working families.”
Her comments came as the Government prepares to publish a Green Paper consultation document on children on Monday.
She said 5.8 million families were now benefiting from the credit and the take-up rate was “exceeding our greatest expectations.”
Previously, Ms Primarolo said the new credits signified the “biggest revolution” to the tax and
benefits system since Beveridge and the advent of the Welfare state.
The Inland Revenue has been criticised for late payments of the child and working tax credit.
In May, according to estimates, about half a million claimants were denied entitlements because of IT glitches.
And at the start of last month, there was a backlog of nearly a quarter of a million applications.
Tory work and pensions spokesman David Willetts MP said it was ‘appallingly complacent’ for the Government to boast that child tax credits were a massive success.
He said: “There is no hint of apology in these claims to the millions of families, many who suffered severe financial distress by not getting they money owed to them on time.”
He questioned Government figures on the take-up rate. “Ministers have always said that 9 out of 10 families would gain from tax credits. That means 6.5m families ought to be receiving them.
“But Dawn Primarolo’s own estimate shows that 700,000 families are still not getting the help they are entitled to. That is not good enough, especially when many of these families used to get their tax allowances automatically.”
The Tories have rejected claims that they would “scrap” the child tax credit if they regained office.
Lib Dems work and pensions spokesman Steve Webb MP said it was premature to herald the tax credit a success.
He said the public ought to be repaid for the “distress caused by the Government’s bungling.”
“The Government pat themselves on the back because they nearly hit their targets. What they don’t say is that their target had a built-in failure rate and that over half a million families are still missing out.”
