MP Hits out at Tax Credit 'Shambles'

1.59.00pm BST (GMT +0100) Tue 6th May 2003

Vincent Cable, MP, has hit out at treasury ministers and the Inland Revenue after being approached by local women who have been left without any money because of failure to pay the new child tax.

Last week the paymaster general, Dawn Primarolo, apologised to parliament for the fact that 800,000 (out of 4 million) eligible families had not been paid but said payments should be completed by the end of last week (ending 3 May).

Vincent Cable said that he had had several approaches from constituents who hadn't had their money and found it impossible to get through on the help line: "by Friday evening the money still hadn't arrived for several of them and the position is desperate in some cases. If others are still waiting they should let me know. "

"The matter doesn't rest here. A lot of women with young children facing financial difficulty have had to borrow and merit compensation. If the government penalises tax payers for "

"putting in the their tax forms late, it should be penalised itself when it makes a terrible mess of the administration of tax credits, and pay compensation".