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Tax credits: Many families not claiming credits

Around a fifth of families eligible for child tax credits are not claiming them, according to the latest HM Revenue & Customs figures.

The figures relating to 2003/04 - the first year of the new tax creditssystem that aims to better take into account changing circumstancesthroughout the year - showed that 21 per cent of eligible families arenot claiming child tax credits.

However, take up is higher among those most in need, with only seven percent of families earning less than 10,000 a year and nine percent of working lone parents not claiming.

- www.hmrc.gov.uk.

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