Soaring Tax Credit Costs
Bill for managing tax credits system rises tenfold over 4 years
6th July 2005
Treasury figures hav revealed that the cost of managing the much-criticised tax credits system has risen more than tenfold in the last four years, soaring from £36.1m to £403m.
The figures were provided in a parliamentary written answer to the Liberal Democrats, who seized on the figures as proving that tax credits were 'an expensive mess'.
A government source, however, countered that the Lib Dems' interpretation of the figures was 'ridiculous' - administration costs were bound to rise as the system grew from 0% to 80% usage, and that the average administration cost per case had actually fallen.
Tax credits have recently been heavily criticised for failings in its IT systems which have led to overpayments and general inflexibility and inefficiencies.
Read More: BBC Report
|
More on Tax Credits : Ombudsman Criticises Tax Credits System (News, 22/06/2005) |
Home - General Finance - Tax
