Disabled Children: Tax Credit

Debate between Lord Young of Cookham and Baroness Butler-Sloss

Wednesday 30th November 2016 Lords Chamber

[Baroness Butler-Sloss]

My Lords, is the noble Lord, Lord Low, correct to say that a box was omitted from the form? If a box was omitted that should have been there, it seems to me that the department was at fault and therefore a question of law preventing compensation would not arise.

[Lord Young of Cookham]

The noble Baroness knows much more about the law than I do. It was indeed the case that, when a parent applied for DLA for a disabled child, they could tick a box indicating whether they were claiming tax credit. If they ticked the box, HMRC was automatically told and the benefit was automatically uprated. That is described as a back-up cover, and the law is quite clear that none the less, notwithstanding the box, it is still the responsibility of the claimant to notify HMRC of the change in circumstances. When you apply for tax credit, it says on the form that if your circumstances change you should advise HMRC. I have looked at this extensively this morning. I have given the reply that I have about the Government’s ability to make compensation for earlier years and the advice that they cannot under the legislation; and I have suggested in good faith a way through that might meet the injustice that many noble Lords feel has occurred.