PM should strip control of tax credits from Treasury after 'monumental complacency' - Laws

10.07.44pm UTC (GMT +0000) Mon 5th Jun 2006

In response to today's written Statement by the Treasury on the overpayment of tax credits, Liberal Democrat Shadow Secretary of State for Work and Pensions, David Laws MP said: "Today's statement confirms the Treasury is monumentally complacent about tax credits. The Prime Minister should strip the Treasury of responsibility for tax credits and put these means-tested benefits back where they belong - in the Department for Work and Pensions.

"In just two years, £4bn has been overpaid, and up to half of this may never be recovered. In the meantime, millions of people on low incomes are being asked to pay back huge sums of money, often through no fault of their own.

"The Treasury is in denial over the extent of the problems affecting the Chancellor's pet scheme, and Paymaster General Dawn Primarolo seems to be keeping a low profile to avoid the fallout from last week's figures.

"People struggling to pay back thousands of pounds, will be unimpressed by the Government's insistence that the tax credits system is working well."