Victims of the tax blunder which will see 1.4 million people asked to pay cash back to the taxman may qualify for increased benefits to soften the blow.
Beleaguered government department HM Revenue & Customs (HMRC) is facing fresh anger as its helpline for tax credits renewals is jammed, with some benefit recipients unable to get through for two weeks.
The Government's plans to radically shake-up the welfare system could see benefits for the elderly, including winter fuel allowances, cut drastically as Britain claws back from the recession.
Britain's pensioners are missing out on an estimated £5.4 billion in unclaimed benefits each year, despite 1.8 million of them living in poverty, figures released today show.
Families who earn £25,000 a year could see a fall in the benefits they receive from April 2012, according to figures buried deep in yesterday's 112-page official Budget document.
Chancellor George Osborne defended the Budget as "tough but fair" today as he accused the previous Labour government of leaving the economy in a "massive mess".
23 June 2010
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