Official statistics released today by HM Revenue and Customs (HMRC) estimate that tax credits error and fraud has dropped from £2.27 billion in 2010-11 to £1.26 billion in 2013-14.
Practical measures such as simplifying the tax credits system, better monitoring of changes in income through the real time information system, and improved detection of fraud have all contributed to this success.
The Financial Secretary to the Treasury, David Gauke said:
Tax credits play an important role in supporting working people – most of those who receive them are honest and rightly want to know that others cannot get away with incorrectly claiming them. Today’s figures are another step in the right direction.