EAST Lancashire MP Greg Pope has written to Treasury Minister Dawn Primarolo demanding action to sort out working family tax credits.

The Hyndburn MP described the system as a shambles which was denying many families money they desperately need.

Mr Pope highlighted one case in which a single parent from his constituency was encouraged into work and off benefits by the New Deal.

She was promised extra cash from the new system but has been left without money to pay for rent and childcare because of what the government describes as "teething problems'' with the new drive.

Mr Pope is demanding action to sort out the problems.

He said: "The WFTC is a really good initiative aimed at rewarding families who work.

"In the past some parents have stayed on benefits because they felt they were better off than working.

"The current situation is a shambles as the system is not coping with number of applications.

"This situation is really distressing and I really sympathise with all my constituents who are having difficulties getting their tax credits.

"Here we have a really good initiative which I was proud to vote for but which for some people is just not panning out in practice.

"Some people are relying on the tax credit to make ends meet and then finding it isn't there as soon as they need it.

"I shall be writing to the Paymaster General Dawn Primarolo at the Treasury as a matter of urgency to see if we can this sorted out as quickly as possible."

The Inland Revenue, which manages the new system, aimed at replacing conventional benefit, has admitted to "teething problems."

Thousands of families have complained that the new system will not deliver the money they need at the end of this month -- including several in Mr Pope's constituency and across East Lancashire. In the last two budgets Chancellor Gordon Brown has masterminded a shift from paying out benefit to fathers to paying them direct to mothers as credit on the tax system.

The Inland Revenue denies that the system has broken down but does admit that payments can only be guaranteed on time to the 2.6 million who applied before January 3.

Tory spokesman David Willets said: "This is just a shambles.

"The Inland Revenue has been changed from a taxation department to a benefits department and it clearly cannot cope.''