Tax credit overpayment mistake led to heart attack

An elderly Rochdale resident suffered a heart attack after he and his wife were mistakenly pursued for tax credit overpayments of almost £5,000.

The couple, known only as Mr and Mrs F, were in fulltime care of their grandchild when they were targeted for tax credit overpayments of £4823 for two years due to a mistake made by the tax credit office.

Mrs F said that her husband had suffered a heart attack because of the stress caused by the credit office's error.

Rochdale MP Paul Rowen highlighted the case in Parliament this week as he questioned the Government's tax credit policy. He called the Government to account over what he termed 'extremely harsh tactics' in clawing back tax credit overpayments from taxpayers, that since April 2003, have amounted to £14 billion.

In 2007 the Parliamentary Ombusdman produced a report requiring the Tax Credit office to tailor their approach to individuals to take account of their circumstances but the Rochdale residents were clearly let down by the system.

Paul Rowen said: "Tax Credits are supposed to help the most vulnerable in society not cause them unnecessary stress and anxiety.

"The Government have ignored the Ombudsman's warnings and continue to pursue innocent taxpayers for money that has been overpaid through official errors."

The childcare component of working tax credit is capped at £175 a week for one child and £300 for two with a maximum contribution from employers of £55, while last year 1.8 million families were overpaid tax credits at a cost of £1.2 billion to the taxpayer.

The Parliamentary Ombudsman's latest report concludes that: "It is clear from the complaints received that attempts by HMRC to recover overpayments made under the tax credit system continue to cause distress and hardship for a significant number of people. As one complainant put it 'Tax credits are supposed to help families, not cause them money worries'."