MPs are demanding answers from HMRC after a child benefit error saw payments to 23,500 families stopped 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 incomplete Home Office data on flight bookings, which failed to record return journeys. This led HMRC to wrongly suspect families of emigrating and fraudulently claiming child benefit. In one case, a mother named Sally had her payments stopped after data showed she travelled to Italy in July 2023 and never returned, but in reality she and her children did not board the flight after one child had an epileptic seizure.
Another woman was accused of emigrating after booking a flight to Oslo for a wedding that was later cancelled. HMRC has apologised twice and reinstated payments to about 2,000 parents, but many affected families say they feel treated like criminals. One woman, Rachel, who previously suffered a stroke, described the distress caused by the letter demanding extensive documentation.
Hillier has posed 14 questions to HMRC, including how long it used travel booking data to determine emigration status, why it used booking rather than boarding data, and what safeguards are in place to prevent recurrence. She also asked whether the error could affect individuals' immigration or tax status. HMRC said it has reviewed its processes and now checks claims with customers before suspending payments.
