THE Government has been criticised over its record on tax credits after cross party group of MPs released a damning report.

The report revealed that of the £47-billion paid out in tax credits in the first three years of the current system, £5.8-billion was overpaid to claimants. Continuing problems mean that £1.4-billion of overpayments will have to be written off for good.

And local MP David Laws said: "The report shows that the tax credit system continues to get worse, not better.

"Levels of fraud and error in tax credit payments remain unacceptably high, creating huge waste and often placing families in real distress and financial hardship when they have to pay them back.

"The tax credit system was meant to help the families on low incomes but now many people are nervous of claiming tax credits for fear of being plunged into debt when they have to pay for what are more often than not the Government's mistakes."

Mr Laws added: "The Government must return to fixed awards which deliver the stability families on low incomes need and avoid overpayments."