Tax credit overpayments to be outsourced to debt collection agencies

As the details of the Autumn Statement continue to emerge, concerns are being expressed about a pilot scheme that will see the collection of tax credit overpayments become the responsibility of debt collection companies.

The contract will be outsourced on a payment by results basis, and campaigners have called for the Government to ensure high standards are maintained by debt collectors working in this field. 

They are concerned that. since tax credit over- and under-payments occur as claimants' circumstances change, overpayments should not be viewed as a debt.

 

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