Gordon Brown faces another backbench revolt as MPs demand amnesty on tax payback

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Gordon Brown is facing a showdown with Labour MPs over the move to force families to hand back billions of pounds in tax credits.

Former deputy leadership contender Jon Cruddas is leading a campaign for £6bn overpaid by Revenue and Customs to be written off.

Around two million families have been asked to pay back benefits, with nearly £1 in every £10 paid out in tax credits an overpayment.

'Tax credits were a good idea but poor administration is giving them a bad name,' Mr Cruddas said. 'It's time to wipe the slate clean on these so-called debts. Let's write them off.'

Pressure group Tax Credit Casualties - formed to help the families hit by the repayment demands - is planning a High Court judicial review to show that ministers are acting illegally.

Spokesman Paula Dean said: 'In the last two weeks we have dealt with at least two people who have admitted contemplating suicide. It's horrendous.'

Sarah McCall, 37, from Rotherham, who was overpaid by £4,000 and has been threatened with court action, said: 'My argument is that it is their error and I should not have to pay the money back.'