Primarolo calls tax credits a 'huge success'
Paymaster general Dawn Primarolo has hailed the introduction of the new child and working tax credits system as a 'huge success', despite massive backlog problems and IT disasters.
When it was first launched in April 2003 it was nothing short of a catastrophe. The computer systems, run by EDS, were dogged by problems from the start as they quickly became overwhelmed by demand.
This led to over 220,000 claims not being processed nearly 10 months after they were submitted, and 400,000 payments being delayed.
But yesterday Primarolo said the tax credits were now reaching over 95% of those expected to benefit, with 264,000 families benefiting from childcare subsidies, compared with 180,000 under the old sytem.