Financial Times FT.com

Treasury stalls recovery of tax credit payments

By Christopher Adams, Political Correspondent

Published: October 27 2005 03:00 | Last updated: October 27 2005 03:00

The Treasury has bowed to demands from MPs and pressure groups to halt demands for repayment of overpaid tax credits until disputes with claimants are resolved.

Dawn Primarolo, paymaster general, told the Commons Treasury select committee yesterday that recovery would be postponed in all disputed cases from the middle of next month. Her comments followed mounting pressure for Revenue & Customs to act amid allegations from MPs of continued problems with Gordon Brown's flagship tax credit system.

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