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Lib Dems propose tax credits reform
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30 January 2008
The party said 1.4 million families were overpaid and 340,000 were underpaid between 2003 and 2006, one in five of those eligible.
Welfare spokesman Danny Alexander said the system is over-complicated and can make things worse for families who are in the most financial need.
"What we want is for the award to be fixed for a six month period, then it is recalculated," he told GMTV.
"What it would mean is that people would have stability.
"They would know the money they were getting for a six month period wouldn't be clawed back."
Mr Alexander admitted that Her Majesty's Revenue and Customs (HMRC) was improving the system but said people could still be asked to pay back money if they had not noticed a mistake on the information HMRC had sent them.
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