LONDON FAMILIES TO REPAY £196m TO THE CHANCELLOR - TEATHER

3.08.41pm UTC (GMT +0000) Thu 2nd Jun 2005

Labour is letting down thousands of families in London says Sarah Teather

Figures on the overpayment of tax credits show that a third of London families in receipt of tax credits were overpaid and 160,000 families are having to repay an average of £1,225 each.

The total amount to be repaid differs by London borough with families in Croydon having the most to repay at £11.2m. The 6 boroughs with the most to repay are:

1. Croydon £11.2m

2. Lambeth £9.5m

3. Newham £9.3m

4. Ealing £8.6m

5. Brent £8.6m

6. Lewisham £8.3m

Sarah Teather MP, Liberal Democrat London spokesperson, said:

"These figures are unprecedented and reflect serious problems not only with the computer system, but within the tax credit system itself.

"Thousands of families in London are having their budgets thrown into chaos, causing serious problems and hardship, especially for those on low incomes. For families in Hackney, Southwark and Brent, some of London's poorest boroughs, to be faced with repayment bills averaging more than £1,300 is a real concern

"The policy of reassessing income at the end of the award is flawed. A return to a system of fixed awards would end this bureaucratic nightmare."