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Dundee LibDems condemn further bad news on Tax Credits

June 3, 2007 3:20 PM
Cllr Fraser Macpherson, West End Ward Liberal Democrat Councillor

Cllr Fraser Macpherson condemns further bad news on Tax Credits

Following recent concerns highlighted by Dundee Liberal Democrats that the Government overpaid £4.5 million of Tax Credits in 2005/6 to Dundee citizens, the LibDems have today (Sunday 3rd June) expressed great concern that millions of people are also missing out on the chance to claim money they are entitled to under the tax credit system.

The statistics revealed by the Liberal Democrats show that more than two million people across the UK are failing to claim an average of between £1,410 and £1,778 per year. Up to 260,000 people earning less than £20,000 are missing out on an average of between £2,500 and £3,577 per year.

Liberal Democrat Shadow Work and Pensions Secretary, David Laws MP said, "It is deeply disturbing that so many of the poorest families are shunning the tax credit system because of fears of having to repay back large amounts of money.

"With millions of families each year having thousands of pounds demanded back by Gordon Brown - money most simply don't have - it is entirely understandable that many want out of the system altogether."

Locally, Liberal Democrat Group Leader on Dundee City Council, Cllr Fraser Macpherson, said, "We were recently very concerned at the huge level of Tax Credit repayments being demanded from Dundee families and this further bad news about poor take-up of Tax Credits simply highlights the need for root and branch reform of the system."

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