October 2020 – No Tax Credit Compensation

02/10/2020

The Secretary of State for Work and Pensions has confirmed that there will be no compensation for tax credit claimants who were advised to claim Universal Credit (UC) during the coronavirus pandemic and who lost out as a result.

The government had previously said that they were looking at what could be done for tax credit claimants who lost out financially as a result of applying for UC to which they were not entitled, or entitled to a lesser amount. The Director-General of Work and Health Services insisted that the jobcentre does not offer advice about moving to UC because a move is not voluntary but triggered by a life event.

The Secretary of State also confirmed that in their view, it was not the responsibility of the Department of Works & Pensions (DWP) to have a statutory safeguarding duty towards vulnerable claimants.

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