Tax credit delays 'will affect millions'

The Conservatives say the delays are causing real hardship

There could be up to 800,000 families who have not received money from the government's new tax credit system, the Conservative Party says.

Shadow work and pensions secretary David Willetts said the problems stemmed from government efforts to integrate tax and benefits - both complex systems in themselves.

But Dawn Primarolo, the Paymaster General, said the majority of claimants were getting their money.

It is causing great hardship. I can't go food shopping. We are living on the real basics: bread, milk and eggs

Lesley Kamara, mother-of-three

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The new tax credit system will help nine out of 10 families in Britain.

More than three million families have already received benefits.

Bizarre obsession

But the Inland Revenue has been bombarded by complaints about unpaid benefits since the new tax system came in to force in April.

Mr Willets told BBC Radio Four's Today programme although it was difficult to get accurate figures, up to 800,000 families could be affected by delays in payments.

He said: "We all know the Inland Revenue is rather better at taking money off people then giving money to people.

"I am afraid it goes back to one man - Gordon Brown's bizarre obsession with taking two systems, the tax system and the benefits system, both of which are quite complicated enough and had enough problems on their own, and bringing them together."

Primarolo: Most people are getting their money

He said the situation was causing real hardship to some families and could be the difference between being able to take your children out for a trip during the Whitsun break or not.

But Ms Primarolo, also speaking on the Today programme, said in the vast number of cases money was getting through, although she admitted in some situations there have been "genuine difficulties".

She added: "I am really concerned about that and am doing my best to sort it out."

The minister said everybody who applied for the tax credits by the end of January, as the government had asked, was receiving their money.

Only those whose application forms had problems with them were experiencing delays.

Walkout

She said since the end of April the government has received another 200,000 applications.

Despite the paymaster general's comments, many people have complained about the new system.

Lesley Kamara, who lives near Southampton, has not yet received her money, despite sending her form back last October.

We all know the Inland Revenue is rather better at taking money off people then giving money to people

David Willetts, shadow work and pensions secretary

"It is causing great hardship. I can't go food shopping. We are living on the real basics: bread, milk and eggs," she told BBC News Online.

As well as complaints from claimants, staff processing the claims have also expressed anger at the new system.

Hundreds of Inland Revenue workers recently took part in a spontaneous walkout in protest at the introduction of the new scheme.

The civil service union said it was a "warning shot to the board", and it could not rule out balloting for strike action, if the problems were not resolved.