Hastings and Rye MP Michael Foster has tabled a parliamentary motion calling for greater leniency to be shown to people who receive tax credit overpayments in error.

“I have seen cases of people who, because they filled out a form incorrectly, were ordered to repay money they had already spent even though their financial situation meant they would have been entitled to it.

“When people have simply failed to complete a claim by the due date individuals are being asked not just to forgo income, but are asked to pay back the money they are entitled to. One constituent who came to me had been asked to repay £7,000 from no income. She sent her form in but it was not received. In those cases there should be some discretion to show leniency.”

The Early Day Motion Michael Foster has tabled states ‘That this House believes that some families are experiencing excessive hardship through being required to repay tax credits after failing to finalise their award; and considers that the Government should review the statutory recovery of such overpayments and institute an appeals process so that where entitlement for the tax year can be shown, even at a later date, only recovery of a justifiable amount of overpayment should be made.’

The MP emphasised the fact he was not saying people should be allowed to keep money they were not entitled to. Rather he was simply calling for greater flexibility to be introduced into the system so as to stop honest mistakes being heavily penalised.

Notes

For a full list of signatories please visit

http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=36498&SESSION=891