What is to be done about the tax credit system, and the fraud and error that is resulting in losses and overpayments running into billions of pounds (see News, page 4)?
Abuse of the childcare element of tax credits is causing nurseries and childminders major problems. We spoke to one nursery owner who has £20,000 of debts. It still seems all too easy for people to sign up to a childcare provider, get the registration number, claim the credits, spend the money and disappear, owing significant amounts of childcare fees.
Daycare providers have long asked for the money to go direct to them, but supply-side funding is still largely a political no-no.
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