MPs ask HMRC to explain child benefit error that froze payments to parents

"MPs are demanding answers from HMRC over a child benefit error in which payments were stopped to 23,500 families as part of an anti-fraud crackdown. Meg Hillier, a Labour MP and chair of the House of Commons Treasury select committee, has written to the permanent secretary of HMRC asking who made the decisions, why they were made and whether compensation would be offered to the victims."

"They received letters demanding they answer 73 questions and provide a mountain of documentation including bank statements, GP and school records on the back of information the Home Office provided. But the Home Office data was incomplete and did not record return journeys of parents, leading HMRC to believe the families had emigrated and were continuing to collect child benefit illegally."

HMRC stopped child benefit payments to 23,500 families after matching Home Office travel data that suggested parents had emigrated. Parents received letters demanding answers to 73 questions and extensive documentation, including bank statements, GP and school records. Home Office data did not record return journeys, causing HMRC to misinterpret check-ins as departures. Several families had checked in but not boarded flights due to emergencies or canceled plans, leading to wrongful suspicions of fraud. HMRC apologised twice and reinstated benefits for about 2,000 parents while urging recipients to call a dedicated helpline for swift resolution. MPs have asked for explanations and assurances that the error will not recur.

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