In a report examining the administration of the tax credits system, MPson the Treasury Select Committee said claimants find the childcareelement burdensome.
They also warned that the complexity and generosity of these childcarepayments meant "the potential for large overpayments issignificant".
The MPs said the Treasury should look at either simplifying thechildcare element or explore other ways of delivering the support itoffers. The committee also said the Government should look at removingthe family element from the child tax credit and adding it to childbenefit in order to reduce the administrative burden of tax credits.
- www.publications.parliament.uk/pa/cm200506/cmselect/cmtreasy/811/81102.htm.
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