Jonathan Stearn, director of End Child Poverty, said that although the move indicated the Government was starting to recognise that the clawback was causing hardship to families, the charity wanted to see recovery of over-payments suspended completely.
Dawn Primarolo, the paymaster general, made the announcement in Parliament last week.
She also said she had asked HM Customs and Excise to review the operation of the code of practice on over-payments and to develop approaches with the voluntary sector to target advice to families.
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