14 February 2017

Minister announces DWP to recover outsanding tax credits debt

The Government has announced that from April 2018, it will use DWP powers to recover tax credits debt.

In a written statement, the Secretary of State for Work and Pensions Damian Green outlined the intention for DWP to recover outstanding tax credit debt, where the tax credit claim has ended.

'... from April 2018 the Department for Work and Pensions (DWP) will recover a segment of HM Revenue and Customs (HMRC) tax credits debt associated with people whose tax credits claim has ended. This is debt that has been subject to recovery by HMRC but where repayment has not been secured.

The claimants who have these historic debts will have previously been contacted numerous times by HMRC and invited to start a voluntary repayment plan. They will also have had the opportunity to appeal and challenge the debt.

From April 2018 DWP will begin to try to recover this debt using a wider range of methods. Where people have not voluntarily made arrangements to repay, this may, as a last resort include recovery directly from earnings. DWP has greater powers than HMRC in this regard.'

You can read the Minister's full statement here

You can find out more about tax credit debt recovery, including DWP powers to recover debt in our tax credits debt section.