Over 250,000 families who are eligible for tax credits have yet to apply, according to new figures from the Inland Revenue.

The Conservatives believe that up to 6.5 million families should be receiving the credits and claim that one million families have so far failed to apply.

David Willetts, the shadow work and pensions secretary, said: "The figure of 250,000 families who have yet to claim is bad enough, but the Revenue's figures are wrong.

"We believe that the government is trying to fiddle down the figures of those eligible in order to increase the apparent take-up performance."