Working Families' Tax Credit

HL Deb 26 March 2002 vol 633 cc38-9WA

Lord Burlison

asked the Chancellor of the Exchequer:

What the compliance statistics for working families' tax credit were in the nine months to 31 December 2001; and what the comparable statistics were in the previous year. [HL3508]

Lord McIntosh of Haringey

Compliance statistics for the nine months to 31 December 2001 show an increased effectiveness in the Inland Revenue's compliance programme. Of the 16,016 inquiries completed in this period, 5,427 cases (34 per cent) were found to contain discrepancies and these produced a compliance yield of £10.4 million.

I very much regret having to report that the Inland Revenue has advised me that some previous statistics relating to tax credit compliance have proved to be incorrect or incomplete. The correct equivalent figures for the year ended 31 March 2001 ate that, of the 31,211 inquiries completed in that year, 5,573 cases (18 per cent) were found to contain discrepancies producing a compliance yield of £7.7 million.

These errors in the Inland Revenue's tax credit statistics have also resulted in incorrect information being given in responses to some Written Parliamentary Questions, in letters to honourable Members and during debates. I am writing to the Members concerned correcting errors and I will place a copy of the letters in the Libraries of both Houses.