TAX CREDITS MINISTER SHOULD FACE AXE AFTER FAILING FAMILIES

12.00.00am UTC (GMT +0000) Wed 31st May 2006

Liberal Democrat Shadow Work and Pensions Secretary, David Laws MP and local MP Paul Holmes, have today called for the replacement of the minister responsible for tax credits, Dawn Primarolo, and urgent action to address the failing system.

Paul Holmes, MP for Chesterfield said:

"More than 60 constituents have contacted me after tax credit overpayments have been clawed back by the Government to leave them suffering extreme financial hardship.

"In one recent case, after losing her appeal against the DWP's decision to claw back overpayments, a hard working young mother has had to resign from her part-time job because she can no longer afford childcare. Like so many others, she has been plunged into debt and poverty by the very system which the Government claimed was designed to help her.

"Families have been let down by the tax credit system for too long, as Paymaster General Dawn Primarolo has failed to take decisive action to resolve this continuing crisis. It is time for her to take responsibility for the failing system and face the axe."

Commenting David Laws MP said:

"It is surely now time to replace the Paymaster General, who through oversight, incompetence, or complacency has presided over a broken system rife with incorrect payments and fraud.

"As Dawn Primarolo continues to block parliamentary scrutiny of this crucial issue, new ministerial leadership is now needed to introduce a radical overhaul of the way tax credits are administered.

"The Liberal Democrats are today setting out a Five Point Plan which would make tax credits work more effectively."