Families 'could lose £400m' in taxation benefit

Date: 23rd January 2009

Families hit by the recession could lose £400 million in benefit because of changes to the taxation credit system, it has been claimed.

The Liberal Democrats are calling on the government to extend the January 31st deadline - which is also the final day for submitting tax returns - for claiming Children's Tax Credit for 2002-03.

According to statistics, up to 700,000 households could miss out on the fund as many are unaware that it exists.

Shadow work and pensions secretary, Steve Webb, commented: "At a time of recession, when families need every penny they can get, it is wrong for thousands of working families to lose out simply because the system is so complicated."

He added that it was the responsibility of the government to inform families they were entitled to the benefit.

Earlier this week, taxpayers were urged by Moneywise.co.uk to think carefully before paying tax bills with a credit card.