Public purse £2bn lighter thanks to tax credit shambles - Bruce

2.32.59pm UTC (GMT +0000) Wed 9th May 2007

Nearly £2bn has been lost as a result of tax credit errors and fraud

Reacting to today's report by the influential Parliamentary Public Accounts Committee on the tax credit system, Gordon MP Malcolm Bruce said.

"After numerous reports, criticisms and assurances of improvements, it is shocking that the Government has not yet rectified all the damage caused by the over-complicated tax credit system."

"Many affected constituents have contacted me on this issue seeking assistance and are proof, if it is needed, of the impact that the government's failure to act is continuing to have on families living on tight budgets who don't have spare funds in the bank to rectify the Government's incompetence."

"Today's report shows that tax credits account for the highest rates of error and fraud in Government, that families are being plunged into poverty to pay for these errors and that £2 billion of taxpayers' money has been lost because of this shambles so far.

"As the heir apparent to Number 10, Gordon Brown must take responsibility for the very real problems his tax credit system is bogged down in."

ENDS

Notes to Editors

The Public Accounts Committee (PAC) report can be found here http://www.publications.parliament.uk/pa/cm200607/cmselect/cmpubacc/487/48702.htm

The press release issued by the PAC to accompany the report can be found here http://www.parliament.uk/parliamentary_committees/committee_of_public_accounts/pacpn070509.cfm