The Child Poverty Action Group (CPAG) said it was concerned about the number of families forced to hand back money when overpayments are made.
It said that more reform was necessary to restore the public's confidence in tax credits, on top of planned changes to the system announced in Chancellor Gordon Brown's Pre-Budget report (News, 15 December 2005).
Parental income can now increase by up to 25,000 before claimants need to inform HM Revenue & Customs (HMRC) of any change to their circumstances, a measure intended to reduce the number of people receiving overpayments.
The Government said that where the overpayment was its own mistake, people would not be forced to pay money back.
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