'Millions' of Britons overpaid tax credits

Date: 13th January 2009

Millions of Britons have potentially been overpaid taxation credits by the government, according to new statistics.

Figures published by the Liberal Democrats have revealed 1.8 million families have received too much in working or child benefit credits over the last four years - representing one in five of all claimants.

What's more, the data suggests that approximately 60,000 families have been over-awarded on at least three occasions.

Steve Webb, shadow work secretary for the party, commented: "The complexities of the tax credit system mean it is almost impossible to know if you are being paid the right amount."

He added that families must know their exact incomings and outgoings, and "not live in fear that the taxman will come knocking".

Earlier in the month, the Conservatives proposed to abolish all tax on savings income and raise the basic pensioners' allowance to just under £11,500.