MPs are demanding answers from HM Revenue and Customs (HMRC) after a child benefit error led to payments being stopped for 23,500 families as part of an anti-fraud crackdown. Meg Hillier, Labour MP and chair of the Treasury select committee, has written to HMRC's permanent secretary seeking explanations over who made the decisions, why they were made, and whether compensation will be offered.
The error stemmed from HMRC using incomplete Home Office travel data that recorded departures from the UK but not return journeys. This led to families being wrongly suspected of emigrating and fraudulently claiming child benefit. Affected parents received letters demanding they answer 73 questions and provide extensive documentation, including bank statements and school records.
One mother, Sally, had her child benefit stopped after data showed she travelled to Italy in July 2023 and never returned, but she and her children had not boarded the flight due to a child's epileptic seizure. Another woman was accused of emigrating after booking a trip to Oslo for a wedding that was later cancelled.
HMRC has apologised twice and reinstated payments to about 2,000 parents, promising swift resolution via a dedicated customer service team. However, Hillier has raised 14 questions, including whether anyone who missed a flight this year is at risk of being considered an emigrant, and how HMRC verified recipients' identities without national insurance numbers from travel operators.
Affected individuals have described feeling treated like criminals, with one stroke survivor calling the letter distressing. HMRC stated it has reviewed its processes and now checks claims with customers before suspending payments, giving them one month to respond.
