Nursery World - Cash clawback hits poor families worst

Children are being withdrawn from nurseries, and some nursery staff are facing acute hardship themselves, because the Inland Revenue is clawing back overpayments of tax credits running into thousands of pounds. In a report entitled Money with Your Name on It?, the Citizen's Advice Bureau (CAB) said some families are being threatened with repossession or eviction from their homes because recovery of overpaid tax credits had left them with incomes as low as 55 a week plus child benefit.

In a report entitled Money with Your Name on It?, the Citizen's Advice Bureau (CAB) said some families are being threatened with repossession or eviction from their homes because recovery of overpaid tax credits had left them with incomes as low as 55 a week plus child benefit.

The CAB, which examined 150,000 tax credit problems handled by its offices, said it had to organise emergency food parcels for some destitute families.

'Tax credits offer substantial extra cash to low-income families, but poor administration and system failure have plunged many below the breadline and into mounting debt,' the CAB report stated.

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