HMRC admits 71% wrongly targeted in child benefit fraud crackdown

"Seven in 10 parents who had child benefit suspended in an HMRC fraud crackdown last year were in fact legitimate beneficiaries who had not emigrated, the tax authority has revealed. The chief executive of HMRC, John-Paul Marks, told the Treasury select committee that 71% of those targeted, higher than the 63% previously admitted, were in error. Marks said that just under 5% of the 23,700 parents who lost their child benefit were in fact fraudulent claimants."

"Parents said they were left frightened and stressed after they received letters telling them their benefit was being suspended with demands they answer 73 questions involving detailed medical records, school reports and bank statements to prove they were not fraudsters. The 71% error percentage is much higher than previously admitted when HRMC told the Conservative MP Andrew Snowden in a written answer before Christmas that 63% of the parents had been wrongly targeted because of flawed travel data."

HMRC suspended child benefit for 23,700 parents during a fraud crackdown and later acknowledged that 71% of those targeted were legitimate beneficiaries who had not emigrated. Just under 5% of the 23,700 parents were confirmed fraudulent claimants. A pilot used PAYE records and Home Office travel data, but PAYE checks were removed before rollout, leaving incomplete travel records to determine emigration. Parents received letters suspending benefits and demanding answers to 73 questions plus detailed medical, school and bank records, leaving many frightened and stressed. Committee chair Meg Hillier said HMRC caused unnecessary pain and had wrongly assumed parents using Dublin airport to return to Northern Ireland had emigrated.

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