HMRC To Urgently Review Suspension of Child Benefit For Over 20,000 People Over Faulty Travel Data
HM Revenue & Customs (HMRC) is urgently reviewing its decision to cut off child benefit payments from about 23,500 families after it wrongly concluded they had moved abroad — in many cases, because of short holidays or inaccurate travel records.
The controversy stems from a government pilot scheme designed to tackle child benefit fraud, which used Home Office travel data to check whether people were still living in the UK. The system was supposed to save £350 million over five years but has instead triggered chaos and anger among parents who suddenly lost payments for their children.
Under current rules, child benefit ends if someone has been outside the UK for more than eight weeks, but hundreds of families say they were falsely flagged as having emigrated after short trips abroad.
A leaked internal analysis showed the pilot scheme was riddled with errors. According to reports, 46% of families flagged as having left the UK were actually still living here, and in Northern Ireland the error rate shot up to 78%. Out of 129 families accused of leaving, only 28 had genuinely moved abroad. Despite saving £17 million, the test programme’s inaccuracy rate was far higher than what experts say is scientifically acceptable.
The system was especially unreliable for Northern Irish families who travelled via Dublin. Because the Common Travel Area allows free movement between the UK and Ireland without routine passport checks, HMRC’s data didn’t show when they returned by road over the border.
After widespread complaints, HMRC admitted faults and said it would review all affected cases, reinstating payments where people can show they’re still in the UK. It promised to cross-check future data with PAYE employment records before stopping anyone’s benefit.
An HMRC spokesperson said: “We’re very sorry to those whose payments have been suspended incorrectly. We have taken immediate action to update the process, giving customers one month to respond before payments are suspended. We remain committed to protecting taxpayers’ money and are confident that the majority of suspensions are accurate.”
The issue has sparked outrage among MPs. Kim Johnson, Labour MP for Liverpool Riverside, called for an urgent investigation, while the Treasury Select Committee has demanded a full explanation from the tax authority.
Parents across the country — from London and Liverpool to Glasgow and Brighton — have shared stories of long phone waits and confusion. Some described being treated like fraudsters and forced to gather piles of documents to prove they were still UK residents.
Facing mounting political pressure, HMRC says it aims to finish its review by the end of next week. But for many families still waiting for their money, the apology may feel like it’s too late.
