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UK Tax Credits
| | Reading Chronicle - reported by Alison Powell 19th June 2008 Family Told Their Children Don't Exist
A family have been left shattered after they were told their children do not exist - and have
been hit with a demand to repay £l2,500 in tax credits. The bill is still mounting and the
family are terrified there will be a knock on the door from the bailiffs.
The couple, both aged 41, do not want to be named but the mother, who is expecting a baby in
three months’ time, said: “I am absolutely out of my mind with worry. I can’t talk about this
without crying and it’s affecting my sleep and general well-being. It’s a complete
nightmare.”
The pair both work and have a four-year-old daughter. But the problems started earlier this
year when the father’s 13-year-old daughter from a previous relationship moved into their
home in Katesgrove, to live with them permanently and they contacted the tax credit office to
inform officials. Within a few days all their tax credits were abruptly stopped and they
received a huge bill for tax overpayments.
The mum said: “We have claimed tax credits since 2004 when our daughter was born.
This spring my partner’s eldest daughter moved in with us and I contacted the tax credit
office helpline to inform them. A week later we received Final Decision Notices for the
previous three years informing us that, as we have no qualifying children, we had been
overpaid and had to pay back over £12,500 by June 9th."
“Needless to say we don’t have this kind of money and we do have two children in the house.”
She was told over the phone that a mistake had been made and someone would be in contact, but
they heard nothing. She appealed against the decision and put in a complaint, but again had
no reply.
This week the family had another payment demand and the bill has now risen to £12,549.
The mother said: I asked the tax credits office for my data and was sent about 350 pages of
paperwork. It’s quite clear to me what happened - when I called about having a second child,
the system removed our existing daughter.
“Surely someone at the tax office can see this? They just say there is no proof of children.
I am worried that the system is so badly organised that we’ll receive a visit from bailiffs."
“I have written to Gordon Brown, Alistair Darling and Jane Kennedy, the treasury minister,
telling them of this horrifically worrying situation and asking them to take a good hard look
at the system which clearly fails so many people. We’ll wait and see if he really is the
listening Prime Minister.”
The family are being backed by Reading East MP Rob Wilson who has already contacted Richard
Summersgil, the director of tax and credit operations at HM Revenue and Customs, on their
behalf.
Mr Wilson said: “This is typical of the way the tax credit system is operating. It is
chaotic, overly bureaucratic and letting down thousands of hard-pressed families around the
country. In my own constituency I have had well over 100 such cases in the last couple of
years.”
“It is not only the shock of receiving a substantial bill, it’s also the issue of the stress
and time it takes to sort out the problem. It’s an extra burden that families do not need.
The whole system needs to be overhauled or replaced.” Bob Gaiger, spokesman for HM Revenue and Customs, said: “We are unable to comment on
individual cases due to tax payer confidentiality, but we have referred the matter to our tax
credit office for investigation.”
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