Magazine article Public Finance

Government 'Should Boost Take-Up of Tax Credits'

Magazine article Public Finance

Government 'Should Boost Take-Up of Tax Credits'

Article excerpt

More should be done to encourage take-up of tax credits, MPs were told as they began an inquiry into the impact of the Budget on low-income households.

Citizens Advice said it was concerned about the low take-up of Working Tax Credit for households without children.

Giving evidence to the Treasury select committee on May 21, Teresa Perchard, director of policy at CA, said there should be a greater push on the issue.

The Institute for Fiscal Studies estimates that the 900,000 people still losing out from the scrapping of the 10% tax band in the Budget, despite the tax allowance increase announced on May 13, are m. inly childless households.

Perchard said: 'There are lots of opportunities in the existing system to make that work for people.'

But she added: "We need to have a look at interaction between different parts of the tax credit and benefit systems. …

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