Summary
HM Revenue & Customs (HMRC) in the UK paused child benefit payments for many people without proper checks, which upset a group of MPs. Some families' payments stopped because of incorrect assumptions they had moved away when they only traveled temporarily. HMRC has apologized and changed its processes to fix the issue.
Key Facts
- HMRC stopped child benefit payments for thousands, thinking they left the UK for good.
- The suspension happened because HMRC stopped checking travel data against tax records.
- About 3,600 claimants out of over 23,000 had their benefits reinstated after proving eligibility.
- The suspension was part of a fraud crackdown believed to save £350 million in five years.
- Affected people included those who were abroad temporarily, like for holidays.
- The scheme relied on Home Office data but dropped checks against payroll and tax data.
- MPs criticized HMRC, with the committee chair calling the action a "costly error."
- HMRC apologized and now gives claimants time to prove their eligibility before stopping payments.
