SOUTH Yorkshire's poorest working families face having to pay back thousands of pounds in benefit after Government admin blunders. Almost £49 million has been overpaid to people in the county who qualify for child and working tax credits aimed at helping those with low paid jobs to stay in work.


Full Story Here:
http://www.rotherhamtoday.co.uk/ViewArticle2.aspx?SectionID=85&ArticleID=1050622

Hmm interesting interpretation of the facts in that headline. How about "£17.3m of taxpayer’s money paid out in error"???

Don't want to be too harsh on the people involved but I don't think you should get on your high horse - people have no rights to benefits.

No worries mate, completely non-equestrian intent!:D
Just found it interesting :thumbsup:

Yep know about it let them know I was changing jobs but did not stop the money now am paying back £50+ for 18 months.

Whilst I agree with you Barny, the problems with tax credits is that they are so complicated. You could have two people with seemingly the same domestic situation, but both get paid different amounts.

The benefits system at moment is in a crazy situation and needs somehow consolidating. And I am speaking here as an employer.

For instance, we have a number of staff )due to the hours and type of work) who are lone parents some of whom have come back into work for the first time in years. Some are on tax credits (if they work 16 hours or more) whilst some are on income support (if they work 15 hours or less).

We have peak periods where we require some staff to work a little overtime.

Those on income support can not do anything otherwise they lose their benefit.

Those on tax credit have the flexibility to work overtime and can earn upto £2200 per year in bonus and overtime without it affecting their tax credits. However, if these people are on housing benefit and/or council tax benefit (which as lone parents they invariably are) then they cannot work the overtime because they lose their housing/council tax benefits on a £ for £ basis.

So whilst they can work it with tax credits - which is paid by the Inland Revenue - they can't with the housing/council tax benefits - which are paid by the Council.

As an employer, it does nothing. As a claimant it does nothing as they may want to work but will not obviously do so because they will not be financially better off.

Personally, I would get rid of Housing/Council tax benefits and pay everything through tax credits. It is a huge step for people to take if they have been on benefits for years but something radical has to be done to stop this chaos.