Mr Eugenides: Tax credits; a fiasco yet again

Wednesday, 31 May 2006

Tax credits; a fiasco yet again

For the second year running, Gordon Brown's byzantine tax credits system is a monumental screw-up.

More than £2bn of tax credits has been overpaid for a second year running, the government is expected to confirm. Families given too much during the 2004-2005 financial year could now face having to make reimbursements.

When Bono is in town or there's an African orphan to hug, you can't keep Gordon away from the cameras. When Blair is on the rack Gordon will tour the weekend TV sofas like a man possessed. But this is his pet project and when it goes tits-up he's harder to find than Jade Goody's bellybutton.

Dawn Primarolo is the minister in charge and she's been thrust squarely into the firing line. Rightly so: the administration of the scheme is her department's responsibility. But the Chancellor was warned at the time he introduced this system that it would be a nightmare to introduce. He ignored the warnings.

Citizens Advice has warned the situation in the past has seen people on low incomes borrow money to buy food and being threatened with eviction. The government has said people will not be forced to give back money if the overpayment is down to its mistake.

How nice of them. Of course, as we know from this government's prior history, admissions of fault are hard to come by.

Ministers say they have changed the system - but not in time to affect the latest figures.

So it's jam tomorrow, but in the meantime we regret to inform you that we've given you too much bread. The bigger the government, it seems, the greater the incompetence.

// posted by Mr Eugenides on 31.5.06

Comments:

'For the second year running, Gordon Brown's byzantine tax credits system is a monumental screw-up....'

That's a bit unfair, old chap. The Byzantine tax system was actually quite effective, run with less people, and was less burdensome to its people than ours ;)

TM

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