We, like most Bureaux throughout the country, have had complaints about the Tax Credit system. The problems arise from the inflexibility of the system

The worst cases

One client received 8 different award letters all giving different advice. She received a letter saying she had been overpaid by £1184 and in the same letter she was told that she had been awarded £1692. Subsequently her tax credits were stopped even though the Inland Revenue admits that this is an error on their part. The Revenue have no way of correcting the software fault that has caused her payments to cease. The only help that the Revenue could offer was to give the client hardship payments.
Another client also found that her tax credits had ceased, again as an error by the Inland Revenue. As a result the client incurred rent arrears and was threatened with repossession. She also had other debts where interest was accruing because she could not make her repayments. Emergency payments were made but the Inland Revenue were not able to remedy the fault that has caused the incorrect cessation of Tax Credits.

The issues here are that the people who claim Tax Credits are the people who are on low incomes and therefore are the least able to cope with sudden changes in income. They require a flexible system that can accommodate their changes in circumstances. The Inland Revenue deals with yearly accounts and they it has not yet adapted to monthly or even weekly accounting of the benefits culture.

We see a lot of clients who have mental health problems. Many suffer from severe depression which makes them unable to cope with the everyday stresses of life. Often they hide from these difficulties by pretending that they dont exist, thus a reminder for a small debt is ignored so that the small debt increases to a large debt and the consequences of failure to pay likewise increase. The advisers are sometimes able to help these clients who come to us, usually at the last minute - just before the bailiffs are due - and with a lot of time, patience, negotiation and encouragement, the advisers plan budgets and arrange repayment schedules. They tell clients which are the priority debts, and point out why it is most important to pay the rent and keep a roof over their heads.
We also have the benefit of floating advice workers who are attached to the Quaker Housing Trust . Their aim is to help vulnerable Housing Association tenants stay in their own homes by offering counselling and practical help.
Our clients have other problems with, Housing Benefit, rent arrears and threats of repossession. The local Housing Benefit department has had difficulties