Just one week into the new tax credits system and hundreds of eligible families are frustrated by what they see as a system-breakdown.

There are major problems with the Inland Revenue's handling of claims for the Working Tax and Child Tax Credits, according to our viewers, and many applicants are not getting their money.

Working Lunch has been swamped with letters from viewers about the problems they've been having.

Many, who were previously in receipt of the old form of tax credits, find that they're now in dire straits.

Broke

One viewer, Vanessa Davies has no money to buy her son a birthday present, because payments under the previous system have now been cut off.

She had the money two weeks ago, but didn't get any money last week. And there's nothing she can do about it.

"I've got nothing coming in. I've had to borrow from my mother-in-law who is an old aged pensioner. Family tax credit have told me there is nothing I can do about it, I just have to wait."

The Inland Revenue has reminded us that to receive payment on the start date, you had to have your application in before 31 January. And for those who applied for monthly payments, they're not due to start till the beginning of May.

But most of the people who are writing to us say that they applied long before the January deadline.

One viewer, Paul in Manchester, hasn't even had an award notice. He's registered blind.

Paul, "I'm sitting here with no piece of paper and nothing in the post. We're penniless and helpless waiting for them to sort it out."

Suzy Brandes has still not received any acknowlegement from her application of an award letter. She applied just after Christmas.

Mix ups

Others are telling us of bureacratic mix ups.

Terry Barnes income has fallen drastically but the Inland Revenue haven't taken that into account.

Miriam White from Dorset has had her National Insurance details mixed up with someone elses and has been told to sort it out!

Dean Morris applied online in November. He sent off his child's birth certificate in the post and now has received a new application form for the tax credit after his payments are due to have started.

And one of the biggest frustrations is that people with problems can't get through on the helpline number.

No crisis

But the Inland Revenue say that there's not a crisis.

"One out of every four families that opted for weekly payments could receive an emergency interim payment from their local tax office - but the vast majority have already been paid." The Inland Revenue press office.

The revenue go on to say that families that opted for monthly payments should be paid by 2 May, but families that applied after 31 January may not be paid on time.

Emergency payments

To get an emergency payment from your local tax office you need to have applied for tax credits to be paid on a weekly basis. You should take your award notice, if you have one. If you don't, you should be able to get a payment with a proof of identity.

But Working Lunch has heard about problems here too.

One viewer was asked for written confirmation from the Working Tax Credit office before his local tax office would consider an emergency payment. So there may be a little confusion at the local level.

Dawn Primarolo MP, the Paymaster General who has overall responsibility for the credits has so far declined to be interviewed by Working Lunch on this matter.