Parliament's Public Accounts Committee estimates that in 2004/05, HMRevenue & Customs overpaid families by 2.2bn, the same as for2003/04.
Conservative MP Edward Leigh, the committee's chairman, said: "This is adeplorable situation for the vulnerable families who have to find themoney for repayments."
HM Revenue & Customs hopes reforms introduced in the Chancellor's 2005Pre-Budget Report will eventually reduce overpayments by a third. Underthe new arrangements that came into force this April, families canincrease their income by 25,000 without having their tax creditcut.
Previously the limit was 2,500.
The Child Poverty Action Group would like to see further reformsimplemented including "a statutory right of appeal against overpaymentdecisions and the option of face-to-face advice for claimants who needit," said the group's chief executive Kate Green.
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