Sandra Gidley, MP for Romsey, today slammed the Government over the administration of the tax credit system, following astonishing figures published on the number of overpayments made by HM Revenue and Customs.

In the Romsey constituency alone, of the 7,000 tax credit claims, 2,000 were overpayments, (35 per cent) with the average family paying back £900 each.

Commenting on the figures, Sandra said: "These figures are unprecedented and reflect the serious problems not only with the computer system, but inherent within the new tax credit system.

The MP said she had been inundated with letters from constituents on this issue. In many cases the tax credit office has attempted to claw back money had been overpaid as a result of an administrative error rather than customer misinformation. "Too many families are having their budgets thrown into chaos by the tax credit office causing serious problems and hardship especially for those on low incomes," said Sandra It is often the poorest families who are hit the hardest.

"What we do not yet know, however, is how many of these overpayments were a result of official error and how many the Revenue will write off.

"Last week Treasury Ministers signalled changes to the way overpayments are clawed back. The statement was an implicit admission that the Revenue have not been acting responsibly in the past. But new guidance alone will not solve this problem.

"The policy of reassessing income at the end of the award is flawed and a return to a system of fixed awards would end this bureaucratic nightmare for many families."