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Working LunchMonday, 28 April, 2003, 16:16 GMT 17:16 UK
300,000 still waiting for tax credit cash
father and child
Thousands of families are still without tax credit money
The government has confirmed that up to three hundred thousand people are still waiting for money under the new tax credit schemes - despite having filled in their forms before the January deadline.

The Inland Revenue, the department dealing with the tax credits, has admitted getting most of the applications sorted - around two point four million - but not all.

Four million of us have registered for the credits which started at the beginning of April but there's still a million claims to be processed. Most of these are applications received since the beginning of March.

System 'not working 100%'

The system clearly seems to be creeking under the strain. And the Paymaster General, Dawn Primarolo has admitted as much.

"I can't put my hand on my heart and say the system worked 100% right from the word go." the minister told Radio 4's Moneybox programme.

Working Lunch has been inundated with calls and emails from viewers saying that they still haven't got hold of their money.

Soo Denton is one of many having problems. Whilst she is not one of the 300,000 that has not received anything, the amount she is receiving is not correct. In fact it's �200 short of what it should be.

Sue has two children and works part-time. She should be receiving �321 in tax credits.

"It's been very hard," says Soo, "�200 is a lot of money. I've had to use my overdraft."

Other problems

Many others who've been in touch have not yet received their award notice, but have started to receive payments so they've no way of checking if the amount is correct.

We've also heard of viewers who have failed to get even the emergency payments from their local tax office because of problems with the system.

Redress but no compensation

It's up to the Inland Revenue to sort out this situation and they've assured us that people will get redress. That means they will get their money, eventually, but are unlikely to be compensated for the inconvenience.

Working Lunch is hoping to talk to the Paymaster General, Dawn Primarolo, this week.

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