A MALVERN family is facing a financial crisis after the Inland Revenue demanded the return of money it mistakenly overpaid.

Caroline Teague, of Bawdsey Avenue, received four identical letters saying she owed the nearly £2,000 as she had been paid too much working family and children's tax credit.

When she phoned to complain she was told it was a computer error and to ignore the letters. But last week her payments were stopped completely, leaving her £138 a week out of pocket.

Mrs Teague, who is on incapacity benefit and has children aged four and six, said she and husband Duncan were now unable to pay the rent.

"We've got no money in the bank. They didn't let us know they were going to stop it," she said. "We're going to be in real trouble and end up owing loads and loads of money.

On Wednesday, Mrs Teague received two more identical letters saying she now owed the Inland Revenue £3,291.05

She appealed to them in September after receiving the first four letters but is yet to hear anything back.

In June, after Mrs Teague first applied for the credits, she received two contradictory letters on the same day.

A spokesman for the Inland Revenue said it was looking into the matter urgently.