Thousands of hard-up families in Bradford have received the wrong tax credit payments for the third year in a row.
Figures published yesterday show 45 per cent of the 64,100 families in receipt of tax credits during 2005/6 were either over or underpaid.
The overpayments, affecting 18,700 claims across Bradford, added up to £16 million - equivalent to £856 per household.
HM Revenue and Customs will try to reclaim the vast majority of overpayments, threatening thousands of families with financial hardship.
Meanwhile 10,300 households were underpaid by a total of £6.3 million - £611 each on average. They will be compensated with extra payments.
Stephen Timms, Chief Secretary to the Treasury, said yesterday: "The Tax Credit system has already reduced child poverty, increased incentives to work and reduced the tax burden on low to middle income families."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article