Minister's Job Is On The Line Over Tax Credit Fiasco

9.05.00am BST (GMT +0100) Wed 22nd Jun 2005

Commenting on the Parliamentary Ombudsman's report into complaints made about the Tax Credits system, Liberal Democrat Shadow Work and Pensions Secretary, David Laws MP said:

"The Tax Credit system is a shambles but Ministers are still in denial about the scale of the problem.

"Dawn Primarolo's job is now on the line. She has been complacent about this problem and has taken too long to act. She must now take decisive action and accept the responsibility that comes with high office.

"It is a scandal that hundreds of thousands of people who have made no mistakes are having to pay back money to the Inland Revenue because of the department's own incompetence.

"As the Ombudsman hinted in her report, it is not only that the system needs fixing but the system itself is fundamentally flawed.

"We must consider going back to fixed awards for three or six months to stop the problems of over incorrect payments which will always be endemic for people on low incomes whose circumstances will often change."