The Child Poverty Action Group (CAPG) has welcomed HM Revenue and Customs plans to increase parents' awareness of tax credits available to them. 

As part of the Tax Credits Transformation Programme, UK families are set to receive more tailored support and guidance on what financial benefits they are eligible for.

In response to the recently published Public Accounts Committee Report, chief executive of the CAPG, Kate Green said: "The Committee highlights the many families with children who do not receive tax credits to which they are entitled. 

"CPAG strongly supports the recommendation that HM Revenue and Customs should have take up targets for tax credits and action plans to increase take up."

Improvements to the tax credits system are particularly crucial at this time, as the recession begins to hit household finances nationwide.

Figures show that in the first four years of the scheme, HM Revenue and Customs underpaid by over £2 billion.