More on Tax Credits
James Bartholemew of The Welfare State We’re In points out a statistic cited by Alan Milburn in his recent attack on El Gordo:
21% of families who were eligible to claim the children’s tax credit did not do so
Giving us yet another reason why means tested tax credits are crap. Maybe the 21% have been scared off by tales of the tax man getting it wrong and wanting their money back.
I have two friends who claimed tax credits. Changes in their circumstances now mean that they collectively owe the tax man over £5000. Wouldn’t that scare you off?
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By Serf, March 30, 2006 @ 6:06 am
It allows Gordon to pretend to care aboutr the poor, without actually spending the money. Perfect system really, unless you are one of the poor in need of cash.