HMRC Demands Answers from UK Families Over Child Benefit Fraud Suspicion

Parliamentary committees and political parties have pressed HM Revenue & Customs (HMRC) to explain a severe data error that led to the wrongful suspension of child benefit payments for 23,500 UK families. Incorrect information suggested these families had emigrated, triggering fraud investigations and demands for detailed personal answers.

Meg Hillier, chair of the House of Commons Treasury Select Committee, has formally questioned HMRC’s permanent secretary, seeking clarity on the decision-making process, reasons behind the suspensions, and whether compensation will be provided to those affected.

Numerous families reported to The Guardian that despite not leaving the UK, they were accused of fraud based on travel records indicating flights departed but no return journeys were recorded. These households received letters requesting responses to 73 probing questions and the submission of extensive documentation.

Hillier raised urgent concerns: “Is anyone who did not board a flight, train, or ferry leaving the UK at risk of being wrongly classified as having emigrated?” She further questioned the implications of HMRC’s emigration assessments on immigration status and tax residency.

In response, the Home Office confirmed it mandates international transport operators to supply passenger data for journeys involving the UK, highlighting the source of the contested data.

An HMRC spokesperson apologized for the distress caused by incorrect payment suspensions, emphasizing that revised procedures now require verification with claimants before halting benefits. Families are given a month to respond before payments are paused.

HMRC underscored its commitment to safeguarding public funds while acknowledging recent errors. After reviewing 1.5 million of the 6.9 million child benefit claims, they reported that 589 wrongly suspended payments have been reinstated since these issues emerged.