Government response

HMRC boosts checks on tax credit claims 10 times over

HMRC has made a statement in response to the Public Accounts Committee report on Tax Credit fraud and error

In the last four years we have boosted our targeted checks on tax credit claims 10 times over, more than doubling the money protected, saving £390 million in three key risk areas alone.

Work with the private sector has improved the data we use to make sure claimants’ information is accurate and fraudulent claims identified. We are also getting tougher with claimants about the proof they need to support their claims; for example on childcare costs and on school leavers.

From 2014 the new Real Time Information system will provide accurate and up-to-date information for tax credit claims, significantly reducing fraud and error.

We will continue to improve the service and quality of information we provide, while clamping down on the minority who seek to abuse the rules.

Published 22 May 2013