Tax credit error costs families with disabled children £4,400 a year

Benefit tales

(I hope someone takes the DWP to court over this – Argotina)

‘Gap in data feed’ led to thousands of families missing up to £20,000 – but payments will only be backdated to April

Thousands of families with disabled children have lost out on up to £4,400 a year in tax credits after an administrative blunder by the authorities.

The error in processing their claims meant an estimated 28,000 families whose children qualified for disability living allowance (DLA) during 2011-14 missed out on an additional tax credit premium of between £60 and £84 a week.

The government revealed in the autumn statement this week that it had set aside £360m over six years to ensure these families receive child disability tax credits in future. However, the payments will be backdated only to April, meaning individual families may have lost out on entitlements totalling up to £20,000 over the past five…

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