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I agree tax credits demonstrates the mindset of NuLab and in particular Gordon Brown. GB has never had a 'real' job in industry. University; political correspondent of Scottish TV; and then into Parliament.
The Civil Service can invent the most horrendously complicated schemes that will keep armies of civil servants busy maladministating the schemes: result the Child Support Agency closely followed by Tax Credits.
I suspect the cost of government administration in Britain is completely out of line with the rest of the EU. I know the French are probably the most bureaucratic nation in the EU, I suspect the UK comes a close second.
They are perverse. Take money from people and then spend more money giving some of it back to them.
They also create disincentives to work, my Aunt gets them, but if she or her boyfriend do 'too much' work, they lose the credits and end up worse off. The result? They avoid doing work after they've done a certain amount.