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The Tax Credit Gamble, Part 2 20 May 2008 In the Tax Credit Gamble, on 13 May, we showed the overpayment figures for 2003-2004, 2004-2005 and 2005-2006. Well, HMRC have just published the figures for 2006-2007 , which show that :
This is the first year that the higher £25,000 income disregard came into force. Although the overpayment figures have improved by approximately 8.5% over the previous year, having one in five of all Tax Credit awards overpaid is still unforgiveable - and certainly not acceptable, by any means. Just how are HMRC going to further reduce the overpayment figures? They've already played their card on increasing the income disregard - Oops! Can't do that again! And do they really, really think that one in five claimants don't report changes in circumstances? Maybe there are some other reasons, like a naff computer system. Or a helpdesk that doesn't record changes of circumstances properly. Or taking 8 weeks to open a letter - well the ones they don't lose, that is. Or maybe a management team that are guilty of systematic maladministration. Or even a Government of ostriches .... HMRC, the Treasury and the Government are probably very pleased with the latest overpayment figures. But there are one million, two-hundred and ninety-one thousand claimants, that have nine-hundred and fifty-three million reasons not to be pleased. Not pleased at all ..... Need An Abacus, Gordon? 16 May 2008 During the Westminster Hall Tax Credits debate on 29 April this year, Jane Kennedy was "surprised to hear" that Helen Sheppey, the secretary to Daniel Kawczynsk MP, spends 30-40 per cent. of her time dealing with tax credit problems. Maybe the figures below will help Jane Kennedy become a little more "un-surprised". I don't believe that these figures have ever been seen in one table before now, so you might like to let your MP know about them :
This is why MPs are totally fed-up with Tax Credits - because nothing meaningful is being done to sort out the problems, and they are having to get on the MP Hotline just as often as they had to right at the beginning in 2003. In fact, for the last three years, the figures have increased! Even though over 30% of claimants are being let down by the Tax Credit system, the Prime Minister, the Government and the Treasury still seem to be living in cloud-cuckoo land - even when they are "surprised to hear" about the problems. Even when it's MPs that are telling them. The figures above speak for themselves. Increasingly so, it would appear ...... Do we really have an ex-chancellor Prime Minister and a Treasury that can't count? It Won't Get Better !! 14 May 2008 Yesterday, in "The Tax Credit Gamble", you saw the official HMRC figures showing the overpayments in previous award years. Those figures are not going to go away. Why? Because overpayments are an inherent part of the Tax Credit system - they are built into the design of the system. The current UK system of Tax Credits is largely based on the Australian system, which was introduced there in the year 2000. Even after the first year of Australian Tax Credits, there was a huge public outcry, which grew and grew in the following few years - until the Australian Government had to make drastic changes to the system to pacify claimants and activists. Damn right too! Yet, after 8 years, and major, major changes to the Australian system - their overpayment rate is still over 10%. You have been warned! So, our Gordon, and all of his advisers, knew about the problems at least two years before Tax Credits were introduced into this country. They commissioned various "in-depth" studies, probably at vast public expense, to make sure that the same problems couldn't happen in the UK. The "in-depth" studies failed to identify the frequency of changes in claimants circumstances. And, the "highly automated" system could handle it !! Highly automated? The new Tax Credit computer system wasn't fully ready when Tax Credits were introduced. Can you imagine the mayhem? The staff at HMRC were working with paper, improvising a "highly automated" system, while the IT company rushed around, hurriedly commissioning a computer system that wasn't ready to go to work yet. Because of the rush, the computer system had more bugs than your average hospital. The trouble is, that in many cases where they tried to fix the bugs, they created even more. Could there be more? Of course there is! Because the system was designed, (must be a new definition of 'designed', that I've not heard before), to be highly automated, staffing levels were set at minimum. That's why your average letter isn't answered. Mind you, it only took them 6 weeks to acknowledge one of my latest recorded delivery letters - they wrote, "Thank you for your letter received on 12th May ..." - the trouble is, it was received by them on the 2nd April. How many letters, forms, and other types of correspondence are lying around, waiting to be opened? In the House of Commons last week, Jane Kennedy stated that the Tax Credit Office receive 3.5 to 4 million letters a year. So, assuming that all of the letters are recorded delivery, and are opened in arrival order - 6 weeks of mail is a half a million letters lying around, unopened. But a lot of them won't be recorded delivery, and won't need to be opened so quickly (?) - so what's the real total? And this is a system that is supposed to be able to react quickly to claimants changes in circumstances? All pigs fed, and ready to fly, Sir!! Just to summarise, The Tax Credit system and organisation is failing over 30% (underpayments, as well) of it's customers. Gordon would say that it's only 30% wrong, so that's OK! (Same as only 1.1 million of the poorest still lose out over the 10% income tax fiasco. So it must be OK.) What can you do? Tell people about this site, in any way you can. We have a nice, short and easy to remember web address now. You have seen, in HMRC's own reports, that 30% of claimants are overpaid each year. You've seen that the problem isn't going to go away. Nearly everyone you talk to has, or knows someone who has, an overpayment. Tell them all about this site. Most people don't know about us, and that's the only reason we don't have the biggest campaign in Britain today. It's why the Tax Credit system hasn't yet been reformed. To get massive egos to move, we have to build a massive campaign. While I was writing this (in my local pub), a nice young lady called Julia asked me what I was doing. When I told her - she said, "I've just got a letter about an overpayment ..... ". Tell all the Julia's ......... tell everyone about Tax Credit Casualties. You only have to remember www.TaxCC.org !! The Tax Credit Gamble 13 May 2008 It's that time of year again. The Annual Reviews are dropping through letterboxes all over the country. Families throughout the land are praying that their Tax Credit gamble has paid off, and that they won't be facing huge overpayment bills - caused by changes in their circumstances not being entered onto the system, computer error, form scanning errors, incompetence, etcetera, etcetera, etcetera ..... This is probably a good time to go over the HMRC figures for previous years: 2003-2004 2004-2005 2005-2006 The figures for 2006-2007 are not available yet. (Well, HMRC have only had a year to get them together ....) It is quite easy to see that Working Tax Credits aren't, in fact, working. And Child Tax Credit doesn't actually help one-third of the children that it is supposed to. For one-third of all claimants, they are left in a much worse position than if they had never claimed "Money With Your Name On It". Normally very prudent with the cash they do have, one-third of claimants and their families are forced into debt by this benefit which is administered using the full weight of Tax law. Claiming again for 2008-2009? Even if you're just visiting this site, and don't have an overpayment at the moment, you have a 30% chance of being given one in the future. There are many people who have overpayment after overpayment - year on year! Debt, piled on top of even more debt! That's the Tax Credit gamble! TCC Nominated For The New Statesman New Media Award 6 May 2008 The New Statesman New Media Awards have been highlighting the positive impact of new media technology on public life for ten years. Tax Credit Casualties have been nominated for this years award. If we have helped you, it would be wonderful if you could help us to win this award. Just go to The New Statesman New Media Award website, and post your comments. Let's show overwhelming support for Tax Credit Casualties, and finally give our organisation the recognition it deserves! More Dual Standards From HMRC 2 May 2008 Recently, the BBC reported that 'Tax staff breach data security' :
It is very reassuring that HMRC take security issues seriously, and I am sure that James Brokenshire, along with the rest of the House of Commons and the whole population will feel totally reassured by "the strength of HMRC's disciplinary procedures". Back in February, we reported that HMRC Contractors Totally Ignore Security Of Data? . Just to refresh your memories, someone who could only have been an HMRC 'insider' wrote this: “It isn't HMRC, but Fujitsu Services currently have the contract for supplying IT services to HMRC that is at fault. In Netherton (Liverpool) where they process tax credit forms & CIS forms, the managers there employ users to key this data into their system without even security checks, and people who claim new tax credit have their details sent over email by IT staff without any security enabled, plus peoples details are recorded on CD-roms and left lying around in unlocked cupboards. Also there was new tax claimants details internally copied by users, but breaches like this are never highlighted to HMRC and covered up! HMRC should be made aware of the sloppy practices of Fujitsu services and if they renew the contract with them, it will cost them dearly both in money and security. Capgemini are actually the prime contractor for IT services at HMRC, with Fujitsu being subcontracted to supply data services. But HMRC are ultimately responsible for their contractors, and must know that these practices are going on. Maybe the Treasury and HMRC are totally out of touch with what is actually happening in their own back yard, which is totally plausible considering some of the statements that are issued by both. The phrases "rose-tinted", "cloud 9" and "cuckoo land" spring to mind. So, who's going to be disciplined for this one, then? Reassure me some more! Or do HMRC's disciplinary procedures only apply to the cannon fodder? TCC Need You ! 1 May 2008 The campaign is building. Tax Credit Casualties are becoming busier, and more well known every day. More about that later ... Right now, we are looking for two dedicated volunteers to fill a couple of posts and join our team. You'll know if it's you, as soon as you've taken a look at our Vacancies page. You won't be thrown in at the deep end - we'll help you, until you become comfortable and confident. And then, we all work as a team! Now, back to us becoming busier. We like being busy, and we like helping overpayment victims. Everyone can help lead people to this website, and by doing that you, too, will be helping others. How? It's easy! 49% of the people who find this site, find it because someone posted a little message, with a link to this site, on a website somewhere. Maybe a forum, or a message board. Anywhere that people communicate. Let's get that figure up to 80% within 3 months! Every opportunity that you have, post a link to www.TaxCC.org, along with a little message. You, helping us to help others. Helping you. The bigger TCC get, the louder we can shout - and the more we will be heard. People power - and YOU are the people! | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Tax Credit Casualties (TCC) is a voluntary, unfunded, not for profit
organisation run by members for members. We cannot take any responsibility for
decisions made by HMRC, The Parliamentary Ombudsman, The Adjudicator, or any
other organisation, regarding claimants cases. We offer free advice on how to
dispute unfair overpayments based on our own experiences, the experiences of
other claimants and HMRC guidelines.
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