Tax credit fiasco puts parent in debt (From Western Telegraph)

Tax credit fiasco puts parent in debt

The Inland Revenue is under pressure to sort out the fiasco surrounding the new Child Tax Credit following mounting anger from claimants in Pembrokeshire.

Last week's Western Telegraph front page story, highlighting the distress of families who have waited weeks for their benefits payments, struck a chord with many readers.

They are angry at what they see as a series of excuses by the Inland Revenue on the reasons for the delays.

Mick Andrews, who is self-employed as a kindling supplier in Fishguard and has a 16-year-old daughter in full-time education, is entitled to the Child Tax Credit.

But, despite repeated calls to the helpline, he had until this week received nothing but excuses.

"One of the operators I spoke to told me the system was on the point of collapse. He told me that staff were stressed out dealing with tearful and abusive callers and that the computer system couldn't cope with the level of demands,'' said Mr Andrews, whose business is based at Midland Garages.

He has had to rely on the earnings of his wife, Jenny, a registered childminder, and has also been forced to set up a bank overdraft facility. "I finally got a call this week telling me that I could pick up a Giro from the benefits office in Haverfordwest. It was money I was due on April 17th. The payments are supposed to be made directly into a bank account.''

The Inland Revenue admits that 800,000 applicants for Child Tax Credit have yet to be paid. But, said its spokesman, payments are being made to everyone who applied by January 31st.

"Four million applications have been made and 3.2 million of these people have been paid,'' said a spokesman.