Labour Government slammed for failing most vulnerable in Bournemouth

1.16.00pm UTC (GMT +0000) Wed 21st Jun 2006

New figures have shown that thousands of local people are out of pocket as a result of the tax credit fiasco.

Bournemouth Lib Dem Councillor Richard Renaut is demanding a total overhaul of the Government's scheme, after it was revealed that:

• 2,600 low income working families in Bournemouth were underpaid £1.5m in tax credits last year, averaging £615-700 each.

• 600 were overpaid a total of £1m, and are being forced to pay back an average of £1666

'Last May, the Government claimed that the system was working well for the vast majority of families,' says Councillor Renaut.

'Figures recently released show that nationwide 44%, over 2.8 million people, received incorrect tax credit payments.'

The Lib Dems have set out plans to to cut 2p off the basic rate of Income Tax, and would take 2 million of the lowest paid workers out of tax altogether. This would be a fairer, simpler way of helping low paid, hard working families and individuals.