Chancellor reveals tax credit savings

Date: 11th May 2011

HM Revenue & Customs (HMRC) stopped £1 billion worth of fraudulent or incorrect tax credit payment sin the financial year 2010-11, it has been revealed.

Chancellor of the Exchequer George Osborne told the House of Commons of the savings and claimed HMRC's new error and fraud strategy will see another £1 billion saved in 2011.

Mr Osborne explained that the new strategy is preventing incorrect payments being made to customers and making it more difficult for criminals to defraud the system.

HE said: "The department has exceeded its £1 billion target and prevented a total of £1.05 billion being incorrectly paid out - an increase of 60 per cent in just one year

"The government is committed to cutting the amount of money lost to fraud and error in the benefits system. HMRC's achievement means that tax credits are being paid to those entitled, whilst waste is swiftly cut out."

He added that HMRC is now running checks than before covering claimants' statements on employment, self-employment, hours worked, childcare and children.

Posted by Jacob Williams