HM Revenue & Customs this week accepted £71.25m from Electronic Data Systems (EDS) to settle its claim for compensation for the problems caused by EDS's computerised Tax Credit administration system.
Paymaster general Dawn Primarolo announced the settlement in a written statement issued to Parliament on Tuesday, which added: "Details of the settlement are commercially sensitive and therefore bound by a legal confidentiality agreement as is normal in agreements of this nature."
When the new credits were introduced in 2003, thousands of claimants were left without payments because of
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