Government meets tax credit target

Friday, 30 January 2004 12:00 AM

The government claims to have met its target to have six million families receiving Child Tax credits or Working Tax credits two months ahead of schedule.

The introduction of the tax credits system was beset with problems, with a series of computer problems and many claimants complained that they experienced huge delays before credits were paid.

The two new tax credits were introduced in April 2003, replacing the old-style Working Families' Tax Credit and the Disabled Person's Tax Credit.

Last November, the tax credit launch was described by the National Audit Office as "disastrous", with the NAO estimating that between 10 per cent and 14 per cent of the tax credit - £510 million and £710 million - may have been paid in error or as a result of fraudulent claims.

However, today paymaster general Dawn Primarolo, described the scheme, launched 10 months ago, as a "huge success".

The Conservatives claimed it was too early to determine whether or not the scheme was a success and pointed to continuing problems with overpayment.

A spokesman for Shadow Work and Pensions secretary David Willetts said: "There is still a long way to go and the government can't claim that the system has been a success."

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