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The government is cutting benefit payments to some of Britain’s poorest families or threatening them with debt collectors in a raid that is “plunging people into poverty”. 

More than a million people have had their universal credit payments cut over the past year because they were overpaid tax credits in the past by HMRC.

Some of these debts are decades-old and in many cases the claimant was not at fault for the overpayment or aware that the debt existed.

Campaigners and MPs called on the government to immediately pause the deductions, an approach that they warned was causing widespread destitution at a time when people are already struggling with the cost-of-living crisis.

Millions docked because of historical overpayments

Official figures obtained by Sky News show that last year 1.3 million universal credit claimants had payments docked because of historical tax credit overpayments.

It’s a figure that’s been on the rise.

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In total, the Department for Work and Pensions (DWP) deducted £372.576m from claimants on HMRC’s behalf.

Tax credits were introduced in 1999 by the then Labour government to encourage people into work by offering support payments to parents and those on low incomes.

The system is being phased out and people on tax credits will all have moved to Universal Credit by the end of next year.

In 2014 the Treasury agreed with the DWP that, as previous tax credit claimants moved onto Universal Credit, their old tax credit debts would be transferred and collected under the new system.

Blaming claimants for HMRC errors

While HMRC maintains that many of these erroneous payments are down to fraud or errors made by the claimant, a significant number are attributable to errors made by officials.

Charities warned that in some cases HMRC was blaming claimants for errors of its own making.

Michelle Welch from Bromley, south London, is one such case. She was facing deductions of £20 a month to recover an eight-year-old debt of £2,379.26.

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Michelle Welch

The mother of three, who now works part-time at a British Heart Foundation charity shop, was hospitalised in October 2015 after suffering a mental health crisis.

Although a support officer telephoned HMRC to explain that she was no longer caring for her three children, HMRC did not stop the payments and the money continued being paid into a bank account that her partner was accessing to support her children.

After multiple attempts to notify the agency, the payments eventually stopped on 28 January 2016.

Years later, in August 2021, HMRC wrote to Ms Welch demanding that she repay the money the agency overpaid in the interim. They claimed she failed to notify them of her change in circumstances in time and her universal credit was docked as a result.

Ms Welch’s multiple appeals were rejected.

“I’m just living day by day. I can’t save. I can’t go out… I could put that extra money on gas and electric,” she said.

“I just feel like I’m not getting anywhere. I’m not getting anywhere fast.”

After Sky News intervened, HMRC agreed that Ms Welch was not at fault and has now cancelled the debt.

“We apologise to Ms Welch for the inconvenience and upset caused by our mistake,” HMRC said. “We’ve acted to correct her payments and a redress payment will be made.”

Ms Welch said her dealings with HMRC and DWP had left her feeling dejected, ignored and stuck in what was a difficult time in her life.

“It’s hard for a mother to give up one child let alone three because they’re mentally unwell. It wasn’t an easy thing to do. [It takes me back to] a place I would never want to be in again. It makes me feel ashamed and terrible.

“I busy myself so that I don’t have to think back to what I went through and what my children went through. It’s something I should talk to a psychiatrist about, not people I don’t know [at HMRC and DWP].”

Not an isolated case

Sky News spoke to dozens of claimants who said they were paying back debts they do not believe, or did not realise, they owed.

Many struggled to get a clear breakdown or explanation from HMRC when they challenged the demands for payment.

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Vicky Timlin

Vicky Timlin, from Cheltenham, ended a tax credit claim in September 2021 after moving in with a partner.

She was then told to repay back £909.29 that had been overpaid to her. When she sought an explanation, an HMRC representative told her that the overpayment could only be explained by a “computer glitch” but she would have to repay it regardless.

Ms Timlin is not claiming Universal Credit so her payments have not been docked.

However, HMRC has warned her that the debt will be recouped through any future universal credit claim. Her debt has now been passed onto a private debt collection agency and she is on a payment plan for the next seven years.

Sky News understands that 29,000 cases are now being handled by private debt collection agencies.

“I felt completely helpless. I got off the phone and I was in absolute floods of tears because I just felt like this is so unfair.

“Why have I got to pay this money because of a computer glitch and there was literally nothing that I can do about it and they didn’t seem to care at all,” she said.

“They shouldn’t be doing it to people. They need to be able to explain to people properly why they owe this money and not give them different excuses every time.”

HMRC accepted that Vicky did nothing wrong and apologised for its failure to clearly explain the debt to Ms Timlin.

It maintained that she had been overpaid because previous re-calculations of her entitlement had triggered the system to generate duplicate payments.

It said this was a feature of the system and that these overpayments would have balanced out across the remainder of the financial year had she continued with the claim.

“To ensure customers receive regular payments of a similar amount, tax credits awards are calculated across the 12-month financial year,” HMRC said.

“Customers are required to tell us of any change in circumstances and when they do, awards are recalculated and balanced across the remainder of the period. This means when a claim ceases during the financial year, in some instances an overpayment may be due.”

Official errors disguised

Official reports published by HMRC suggest that errors on the part of officials make up a very small proportion of overpayments, compared to fraud and errors on the part of claimants.

However, charities pointed out that in many cases officials were contributing to errors by providing poor advice on the phone. In the case of Ms Welch, official error was disguised as a claimant error.

Campaigners say the system is causing widespread distress at a time when the cost-of-living crisis is already driving families into poverty.

Food bank visitors in debt to the government

The Trussell Trust, which oversees a network of more than 1,300 food banks across the UK, has said the vast majority of its visitors were in debt to the government.

MPs from across the political spectrum have urged the government to pause collections while the cost-of-living crisis is still raging.

Stephen Timms, MP for East Ham
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Stephen Timms, MP for East Ham

Stephen Timms, MP for East Ham and chair of the work and pensions select committee, said: “People are completely unaware of these debts when suddenly money starts getting taken out of their Universal Credit monthly payments and, in a cost-of-living crisis with inflation running at current levels, that’s causing real hardship for people.

“So my select a committee, which is an all-party committee with a Conservative majority, recommended that the government should pause these deductions while inflation is running at its current level.

“Unfortunately, the government rejected that recommendation, but I think that would be very helpful just to support people through this really, really difficult time.”

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Hundreds of barbers, car washes and American sweet shops raided in money laundering crackdown

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Hundreds of barbers, car washes and American sweet shops raided in money laundering crackdown

Hundreds of barber shops and other cash-heavy businesses have been targeted in a three-week money laundering blitz.

Police went to 265 premises, including vape shops, nail bars, American-themed sweet shops and car washes across England in a crackdown on high street crime.

The National Crime Agency (NCA) said 35 arrests were made, 97 people suspected to be victims of modern slavery were placed under police protection, and bank accounts containing more than £1m were frozen.

More than £40,000 in cash, some 200,000 cigarettes, 7,000 packs of tobacco, and more than 8,000 illegal vapes were also seized during Operation Machinize, which involved 19 different police forces and regional organised crime units.

Officers also found two cannabis farms containing a total of 150 plants, while 10 shops have been shut down.

The NCA estimates that £12bn of criminal cash is generated in the UK each year with businesses such as barber shops, vape shops, nail bars, American-themed sweet shops and car washes often used by criminals.

Goods seized during their visit to a vape shop in Rochdale.
Pic: GMP/PA
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Goods seized during a visit to a vape shop in Rochdale. Pic: GMP/PA

Police officers at a shop in Tameside. 
Pic: GMP/PA
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Police officers at a shop in Tameside. Pic: GMP/PA

Rachael Herbert, deputy director of the National Economic Crime Centre at the NCA, said: “Operation Machinize targeted barber shops and other high street businesses being used as cover for a whole range of criminality, all across the country.

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“We have seen links to drug trafficking and distribution, organised immigration crime, modern slavery and human trafficking, firearms, and the sale of illicit tobacco and vapes.

“We know cash-intensive businesses are used as fronts for money laundering, facilitating some of the highest harm and highest impact offending in the UK.”

Pic: NCA
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Money laundering crackdown. Pic: NCA

Security minister Dan Jarvis said the operation “highlights the scale and complexity of the criminality our towns and cities face”.

“High street crime undermines our security, our borders, and the confidence of our communities, and I am determined to take the decisive action necessary to bring those responsible to justice,” he said.

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Kara Alexander: Dagenham mother who murdered her two young sons in the bath jailed

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Kara Alexander: Dagenham mother who murdered her two young sons in the bath jailed

A skunk-smoking mother who murdered her two young sons in the bath while in a psychotic state has been jailed for life with a minimum term of more than 21 years.

Kara Alexander was found guilty of drowning Elijah Thomas, two, and Marley Thomas, five, at the home they shared in Dagenham, east London, in December 2022.

Alexander, 47, who had denied two counts of murder, was convicted at Kingston Crown Court in February.

Post-mortems on the boys found they had either been drowned or suffocated – but Alexander accepted at trial that she had placed them in the bath before they “accidentally” drowned.

Returning to Kingston Crown Court on Friday, Mr Justice Bennathan sentenced Alexander to life imprisonment with a minimum term of 21 years and 252 days.

The judge referred to the children’s father finding his deceased sons next to one another as “the stuff of nightmares”.

Mr Justice Bennathan said: “On the evening of 15 December 2022, you’d been smoking skunk.

“You’d been doing so every night for weeks, probably much longer. At some stage, both the boys were in their pyjamas ready for bed, with Elijah also wearing his nappy.

“You drowned them both by your deliberate acts.”

The judge said Alexander “unspeakably” held the boys under water for “up to a minute or two”.

“The bath was probably still run from their normal evening routine and I do not think for a moment that your dreadful acts were pre-meditated,” he said.

The judge said Alexander dried the boys, put them in clean pyjamas and laid them together, tucked in under duvets, on the same bunk bed.

“The next morning, their father, worried by your unusual silence, came and found them. The stuff of nightmares,” he said.

The jury heard how the boys’ father was due to have them that weekend and became increasingly concerned when he had not heard back from Alexander.

When he arrived at their home, she told him the children were upstairs sleeping.

When the father returned downstairs to call for help, Alexander had run away. It took the police around an hour to find her.

The Metropolitan Police said forensic analysis of Alexander’s phone, which had been found in a filled sink, showed it had been in regular use in the run-up to the murders, but on the day the children were found, no calls were made or messages sent.

This led detectives to believe that she had intentionally been avoiding people following their deaths.

Prosecutors said they built their case on showing the boys could not have accidentally drowned and that the only reasonable explanation for their deaths was that Alexander caused them to drown.

Read more from Sky News:
Family die in sightseeing helicopter crash
Man who murdered taxi driver after being refused cigarette is jailed

The judge said there was every sign Alexander was a “caring and affectionate” mother to both children before the events of 15 December 2022.

He pointed out that their father said Alexander “never shouted or raised her voice at the boys” and “never showed violence to the boys”.

The judge said: “From all that I have read and seen of you, I have no doubt that every day when you awake you will remember and grieve for the little boys whose lives you snatched away.”

Mr Justice Bennathan said Alexander was in a psychotic state when she killed her sons and that it was cannabis induced.

He said Alexander had a previous psychotic episode in 2016 in which cannabis also probably played a part, but acknowledged he could not be sure she was aware that the drug could trigger another psychotic state.

In his sentencing remarks, Mr Justice Bennathan warned of the dangers of drugs.

He said: “The heavy use of skunk or other hyper-strong strains of cannabis can plunge people into a mental health crisis in which they may harm themselves or others.

“If any drug user does not know that, it’s about time they did.

“At your trial, Kara Alexander, the three psychiatrists who gave evidence disagreed about a number of things, but on that they were unanimous.

“It will comfort nobody connected to this case, but if these events bring home that message to even a few people, some slight good may come from what is otherwise an unmitigated tragedy.”

Detective Chief Inspector Paul Waller, who led the investigation, said: “This is an incredibly tragic case, which has left a father without his two beloved boys and a family without two young brothers.

“Kara Alexander will spend the next two decades behind bars, where the memory of what she has done will haunt her forever.

“To the family and friends of Elijah and Marley, while no amount of time will erase the pain of such a loss, I hope this sentence serves to bring some semblance of justice.

“I hope you can now move on with your life, remembering the boys as you knew them, and treasuring the happy times you spent with them.”

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‘I don’t look at myself as a dying person anymore’: New drug that slows incurable breast cancer now available on the NHS

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'I don't look at myself as a dying person anymore': New drug that slows incurable breast cancer now available on the NHS

A groundbreaking new cancer treatment, hailed by patients as “game-changing”, will be available via the NHS from today.

The drug capivasertib has been shown in trials to slow the spread of the most common form of incurable breast cancer.

Taken in conjunction with an already-available hormonal therapy, it has been shown in trials to double how long treatment will keep the cancer cells from progressing.

“I don’t look at myself anymore as a dying person,” says Elen Hughes, who has been using the drug since February this year.

“I look at myself as a thriving person, who will carry on thriving for as long as I possibly can.”

Ellen Hughes has been using the drug capivasertib
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Elen Hughes says capivasertib has extended her life and improved its quality

Mrs Hughes, from North Wales, was first diagnosed with primary breast cancer in 2008.

Eight years later, then aged 46 and with three young children, she was told the cancer had returned and spread.

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She says that capivasertib, which she has been able to access via private healthcare, has not only extended her life but improved its quality with fewer side effects than previous medications.

It also delays the need for more aggressive blanket treatments like chemotherapy.

New breast cancer drug capivasertib
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Capivasertib is now available from the NHS

“What people don’t understand is that they might look at the statistics and see that [the therapy] is effective for eight months versus two months, or whatever,” says Mrs Hughes.

“But in cancer, and the land that we live in, really we can do a lot in six months.”

Mrs Hughes says her cancer therapy has allowed her “to see my daughter get married” and believes it is “absolutely brilliant” that the new drug will be available to more patients via the NHS.

The National Institute for Health and Care Excellence approved capivasertib for NHS-use after two decades of research by UK teams.

Professor Nicholas Turner, from the Institute of Cancer Research which led the study, told Sky News it was a “great success story for British science”.

Professor Nicholas Turner, from the Institute of Cancer Research which led the study
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Professor Nicholas Turner wants urgent genetic testing of patients with advanced breast cancers to see if they could benefit

The new drug is suitable for patients’ tumours with mutations or alterations in the PIK3CA, AKT1 or PTEN genes, which are found in approximately half of patients with advanced breast cancer.

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How AI could transform breast screening results
Breast cancer cases and deaths set to surge – study

Prof Turner says hundreds of patients could see the benefit in the immediate future, with thousands more people identified over time.

“We need new drugs that will help our existing therapies work for longer, and that’s where this new drug, capivasertib comes in,” says Prof Turner.

“It doubles how long hormone therapy treatment works for, giving patients precious extra time with their families.”

He called for urgent genetic testing of patients with advanced breast cancers to see if they could benefit.

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