- 4 updates
Catherine McKinnell MP, Labour's shadow exchequer secretary to the Treasury, said Iain Duncan Smith's tax credits criticisms were a "cheap political attack".
The Government is hoping to save more than £300 million in the next three years by reducing fraud and error in the tax credit system, and also wants to recover more than £400 million in unpaid tax credit debts.
Work and Pensions Secretary Iain Duncan Smith said the current system, set up by the previous Labour government, was "not fit for purpose." Writing in today's Daily Telegraph he said:
Work and Pensions Secretary Iain Duncan Smith has hit out at the tax credit system put in place by the Labour government, saying it was too vulnerable to "fraud and error". In an article in the Daily Telegraph he said:
"In the years between 2003 and 2010, Labour spent a staggering £171 billion on tax credits, contributing to a 60% rise in the welfare bill."
"Far too much of that money was wasted, with fraud and error under Labour costing over £10 billion."
Mr Duncan Smith said HM Revenue and Customs conducts checks on far fewer tax credit claims than suspected benefit fraudsters, despite about one in 12 tax credit claims being incorrect or fraudulent, compared with fewer than one in 25 benefit claims.
Iain Duncan Smith claims more than £10 billion of public money has been lost in fraud and error under the tax credit system put in place by Labour.
In a scathing attack on the welfare model of the last government in today's Daily Telegraph the work and pensions secretary said tax credits were "not fit for purpose", and that the system was "wide open to abuse" and "haemorrhaging money."