§ Mr. WebbTo ask the Chancellor of the Exchequer what assessment he has made of the level of fraud in the Child Care Tax Credit element of the Working Families Tax Credit. [154216]
§ Dawn Primarolo[holding answer 16 March 2001]: There is as yet no statistically valid data available from which a meaningful estimate of the level of fraud in the recently introduced Child Care Tax Credit element of the Working Families Tax Credit can be made.
Applicants are required to supply evidence of child care costs from their provider in order to receive Child Care Tax Credit. The Inland Revenue carry out risk assessments of applications based on their experience of fraudulent claims, and can impose financial penalties where fraud is found to have taken place. These checks and sanctions apply to the child care tax credit in the same way as other elements of the Working Families Tax Credit.
§ Mr. WebbTo ask the Chancellor of the Exchequer what checks are in place to ensure that the child care expenditure covered by the Child Care Tax Credit has actually been incurred by the claimant and continues to be incurred for the duration of the claim. [154217]
§ Dawn Primarolo[holding answer 16 March 2001]: Applications for the Working Families and Disabled Person's Tax Credits are subject to risk assessments based on accumulated Inland Revenue and DSS experience.
33WSpecialist staff may inquire formally into applications identified as requiring further investigation. Child care providers confirm the level of charges they have agreed with parents and provide information as part of the application that can confirm that the service they provide is eligible for support through the Child Care Tax Credit component of the Working Families and Disabled Person's Tax Credits. WFTC and DPTC awards are based on the information supplied in the application and normally continue for the full 26 weeks of the award. As with other changes in circumstances, changes in child care arrangements will not normally alter awards.