Financial Times FT.com

Tax credit system ‘out of control’

By Alex Barker, Political Correspondent

Published: February 5 2008 00:59 | Last updated: February 5 2008 00:59

Gordon Brown’s cherished system of tax credits remains largely out of control, with officials still incorrectly paying out more than £1bn ($1.9bn) a year because of errors and fraud, according to a parliamentary committee.

In its fifth report on tax credits, the public accounts committee laments the lack of progress in improving a system that overpays 1.9m families a year and then asks for the money back.

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