MPs who attended the Public Accounts Committee have commented that the overpayment of tax credits that is clawed back from claimants is continuing at a 'dismaying' level of £1bn a year.
The tax credit scheme which was launched in 2003 has hit some of the 'most vulnerable in society'.
HR Revenue and Customs who pay out the claims, made overpayments of £7.3bn in the first four years of its set up and of that, they have managed to claim back £2.7bn.
Edward Leigh, the chairman of the committee put emphasis on how the HR Revenue and Customs must come up with a clearer way to advise claimants about the importance of letting them know when their circumstances are likely to change so that if 'incomes rise and fallthey are not constantly worried that they are going to incur an overpayment'.