The UK’s tax authority, HM Revenue and Customs (HMRC), is conducting a review after suspending child benefit payments for nearly 23,500 families. The action came following the use of international travel data that suggested some claimants had left the UK permanently.
However, many affected parents have stated that their child benefit was stopped unfairly—after taking only short holidays abroad.
Short Trips Mistaken for Permanent Moves
Under UK law, child benefit payments typically end after eight weeks of living outside the country. But numerous families have reported that HMRC stopped their benefits after short trips overseas, assuming they had moved abroad.
The issue gained attention after MPs from the Treasury Select Committee demanded explanations from the tax authority.
HMRC has since apologized for any errors, urging anyone who believes their child benefit was stopped incorrectly to get in touch immediately.
Crackdown on Child Benefit Fraud
This situation stems from a broader government crackdown on child benefit fraud launched in September. The initiative aims to save an estimated £350 million over five years.
The new fraud prevention system allows HMRC records to be cross-checked with Home Office international travel data, helping to identify claimants who may no longer live in the UK. However, the same system appears to have wrongly flagged thousands of legitimate families.
Families Speak Out
Among those affected is Eve Craven, who took a five-day trip to New York with her son. Nearly 18 months later, she received a letter stating that her child benefit payments had been stopped because HMRC had no record of her return to the UK.
“They gave me a month to prove I’d come back,” Eve told the BBC’s Money Box programme. “It was frustrating because it was their error, not mine.”
After providing the required documents, her child benefit was reinstated, and all missed payments were backdated.
The Northern Ireland Connection
The problem was first noticed in Northern Ireland, where families often fly out of Belfast but return via Dublin, which is part of the EU. Because of the Common Travel Area between the UK and Ireland, there are no routine passport checks at the border.
This means HMRC’s travel data cannot always confirm when someone has returned to Northern Ireland, leading to mistaken suspensions.
Ongoing Review and Resolution
HMRC has confirmed that it is reviewing all affected cases. The agency will use PAYE data to verify whether individuals are still working in the UK. If continued employment is found, child benefits will be reinstated, and back payments will be made.
The review is expected to be completed by the end of next week, according to HMRC. Meanwhile, MPs on the Treasury Select Committee are also investigating the issue to ensure accountability and transparency.
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