£545m worth of tax credits unclaimed by families in Scotland

SCOTTISH families have missed out on more than half a billion pounds of tax credits because they have failed to make claims they are eligible for.

New research indicates that huge numbers of Scots are not aware they can claim for working or child tax credits.

An analysis of the most up-to-date official figures indicates that £545million of tax credits are unclaimed every year. The figures, compiled by the Scottish Parliament Information Centre (SPICe), sparked calls for a renewed push to raise awareness of entitlement to tax credits.

Scottish Labour social security spokesman Mark Griffin said: ‘Scots are missing out on more than half a billion worth of tax credits. At a time of soaring child poverty and falling wages, both the Scottish and UK Governments should be doing more to make sure people get what they are entitled to.

‘Making sure, in law, that cash goes to the people who are entitled to it could make a huge difference. Thousands of families across Scotland are one big unexpected bill away from really struggling.’

The SPICe figures come from an analysis of the latest official data from the Department for a work and Pensions, for the 2015-16 tax year. Everyone responsible for children aged 16 or under, or up to 20 if in eligible education or training, can claim child tax credits. The basic child tax credit amount is £545 per year, rising to a maximum of £2,780 depending on the number of children, or up to an extra £3,175 for disabled children. New claimants are restricted to claiming for a maximum of two children.

Working tax credits are available to low income individuals and couples,

‘Government must do more’

whether or not they have children, with the basic amount set at up to £1,960 a year.

Social Security Minister Jeanne Freeman said: ‘There are still many people on low incomes who are not claiming the financial support they are entitled to. That is why we have a programme of benefit take-up activity and are working with partners to encourage people to claim for the benefits and support they are entitled to.

‘The vast majority of benefits are reserved to the UK Government so we would urge them to follow our lead.’