MPs are demanding answers from HMRC after an error in its anti-fraud crackdown led to child benefit payments being frozen for 23,500 families. Labour MP Meg Hillier, chair of the Treasury select committee, has written to HMRC’s permanent secretary seeking explanations on who authorised the initiative and whether compensation will be offered to victims.
The controversy emerged after reports by the Guardian and the Detail revealed that HMRC used incomplete travel data from the Home Office to flag families as having emigrated. The data recorded outbound flights but not return journeys, leading HMRC to wrongly suspect them of fraudulently claiming child benefit. Affected families received letters demanding 73 detailed questions and extensive documentation, including bank statements and medical records.
One mother, Sally, had her payments stopped after data showed she had flown to Italy in July 2023 without returning. In reality, she and her three children had checked in but did not board after one child suffered an epileptic seizure at the gate. Another woman was accused of emigrating despite never checking in for a flight to a cancelled wedding.
HMRC has apologised twice and reinstated payments to about 2,000 parents so far, promising swift resolution through a dedicated customer service team. However, it maintains that most suspensions were correct. Hillier has raised 14 questions, including how HMRC verified payments using travel booking rather than boarding data, and whether the mistakes will affect individuals’ immigration or tax status.
The committee has also asked what seniority signed off on the initiative and what safeguards were in place to prevent innocent victims being caught. Several parents told the Guardian they felt treated like criminals and that HMRC could have simply checked tax records to verify residency. Another mother, Rachel, a stroke survivor, described the letter as extremely distressing.
An HMRC spokesperson said: “We’re very sorry to those whose payments have been suspended incorrectly. We have reviewed our processes and are now checking claims with customers first before suspending any payments.” The committee will publish HMRC’s responses.
