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Significantly, the figures show that efforts to reduce overpayments of tax credits have resulted in a £700 million reduction in overpayments since 2005-06. The level of overpayments is now less than half the level in 2003-04.
There has also been a corresponding decline in the numbers of overpaid awards, from 1,879,000 in 2003-04 to 1,291,000 in 2006-07.
The Government remain committed to the current responsive system of tax credits, which in 2006-07 provided additional support to the 720,000 families experiencing an income fall. Whilst this progress is welcome, I recognise that there is more to do, building on the success of the measures put in place since 2005. That is why the Government are today publishing a number of proposals to continue improvements to the tax credits system, drawing on lessons learnt from the first five years of tax credits in the UK, and the experience of similar systems in Australia and New Zealand.
These proposals are set out in Tax Credits—Improving Delivery and Choice: ADiscussion Document published today. They focus on three key areas.
First, HMRC is introducing further operational improvements aimed at tailoring support more closely to individuals' needs and making it easier for customers to claim, receive and renew tax credits, to reduce the scope for error.
Secondly, the document sets out a number of proposals that retain the ability for tax credits to provide additional, timely support to customers whose income falls or whose circumstances change, while giving customers greater certainty and more control over how they manage their tax credits affairs.
Thirdly, it sets out a range of possible options to reform the delivery of financial support for childcare through tax credits, simplifying the system as far as possible for customers.
Some of these reforms are already being introduced and are delivering improvements for tax credit customers. Others will be brought forward in the next few years; while some of the proposed reforms, particularly to the system of childcare support, are much longer term. The Government are therefore keen to seek views, in order to inform longer-term policy development.
Tax Credits—Improving Delivery and Choice: ADiscussion Document is being deposited in the Libraries of both Houses.
Terrorism: Finance
Lord Davies of Oldham: My honourable friend the Economic Secretary to the Treasury (Kitty Ussher) has made the following Written Ministerial Statement.
In a Written Ministerial Statement of 10 October 2006, the previous Economic Secretary undertook to report to Parliament on a quarterly basis on the
20 May 2008 : Column WS87
In the quarter January to March 2008, the Treasury made two domestic designations under the Terrorism (United Nations Measures) Order 2006.
One of these was a person already designated under earlier orders.
The terrorism order and the al-Qaeda and Taliban order provide, where appropriate, for designations to be made confidentially and with restricted circulation of notice.
No persons were designated on this basis in this quarter.
The two persons were designated on the basis of closed source material provided by law enforcement and intelligence agencies.
There were no financial sanctions listings at the EU or the UN in relation to terrorism or Al-Qaeda and the Taliban of persons with links to the UK.
A total of 263 separate accounts containing over £650,0002 of suspected terrorist funds are currently frozen in the UK.
The Treasury keeps domestic asset-freezing cases under review. A number of formal reviews have been initiated in this quarter and the review of four cases was completed. In all cases a decision was taken to delist the designated person.
In accordance with UN Security Council Resolution 1452 (2002), the Treasury operates a licensing system
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In addition, the households of three listed persons were granted benefits licences in accordance with the policy set out in the previous Economic Secretary's Statement of 3 July 2006 to Parliament.
At the close of the reporting period there were eight active challenges against the UK's asset- freezing regime pending in the High Court.
On 24 April, the judgment in the High Court case of A, K, M, Q & G v HM Treasury was handed down, with the court ordering that the relevant legislation be quashed, but staying the effect of this to allow an appeal to be made. HM Treasury was granted leave to appeal. In the mean time, the asset-freezing regimes, and individual asset-freezes, remain in place.
- 1 The detail that can be provided to the House on a quarterly basis is subject to the need to avoid the identification, directly or indirectly, of personal or operationally sensitive information.
- 2 This figure represents the balance of the accounts at the time they were frozen and includes approximately $58,000 of suspected terrorist funds frozen in the UK. This has been converted using current exchange rates. Future fluctuations in the exchange rate may impact on the contribution this sum makes to future totals of suspected terrorist funds frozen.
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