The cost of redistribution

Tax credit costs spiral 10-fold

The costs of administering the tax credit system have risen from £36.1m to £403m in four years, Treasury figures have revealed.

The statistics also show that 65.5m award notices have been issued in just over two years even though only six million households receive tax credits.

One award notice every two months to each household receiving tax credits? Why?

That is nearly half a billion pounds a year to administer a system that doesn't even work.

Filed under: Politics, New Labour Spin