Policy Hub
The complex benefits and tax credit system needs to be radically simplified to prevent error, overpayment and fraud, according to a report published by Centre for Policy Studies (CPS) on 3 August 2009.
The report argues that a single agency could simplify over 50 different benefits currently handled by the Department for Work and Pensions, HM Revenue and Customs, local councils and other government bodies.
At present, claimants have to fill in multiple forms. Changes to one benefit often impact on another, which can lead to claimants losing specific entitlements. Other benefits confusingly overlap.
The report suggests that taxpayers are also losing out as the current complex system hampers government controls on benefits spending. The Treasury forecasts that benefits spending will reach £186bn next year, more than a quarter of all government spending and appreciably more than the combined sum received in income and corporation taxes.