Thousands of parents across the UK could soon receive back payments from HM Revenue and Customs (HMRC) after their Child Benefit was wrongly suspended.
The tax authority has confirmed it is reviewing its decision to stop payments for around 23,500 claimants, following a controversial anti-fraud scheme that relied on travel data to check if families had permanently moved abroad.
HMRC has now apologised to those affected, admitting that some families who were still living and working in the UK had their Child Benefit payments stopped in error. A spokesperson said: “We’re very sorry to those whose payments have been suspended incorrectly.”
The department has promised to make “immediate improvements” to prevent similar mistakes in the future, saying it remains committed to protecting taxpayers’ money while ensuring genuine claimants are not unfairly penalised.
Why Were Child Benefit Payments Stopped?
The issue stems from a pilot anti-fraud programme launched last year by HMRC. The initiative used international travel data to track whether claimants had left the UK permanently, as Child Benefit is not available for those living abroad long-term.
Over 12 months, the scheme reportedly recovered £17 million in incorrect payments, and was expected to save around £350 million over the next five years.
However, it quickly became clear that some legitimate claimants were caught in the crossfire. Many parents who had only taken short holidays, or who hadn’t even left the country, were mistakenly identified as having emigrated. As a result, their Child Benefit payments were suspended without proper verification.
HMRC has since confirmed that it is now cross-checking PAYE employment records to confirm which claimants are still working in the UK.
Once verified, those families will have their payments reinstated and receive backdated Child Benefit payments to cover any missed weeks.
The review is expected to be completed by the end of next week, with HMRC assuring families that refunds and back payments will be processed promptly for those wrongly affected.
What Is the Current Child Benefit Rate?
For those claiming, the Child Benefit currently pays:
- £26.05 per week (£1,354.60 per year) for the eldest or only child.
- £17.25 per week (£897 per year) for each additional child.
These payments are usually sent every four weeks, and parents or guardians can choose to have the money paid directly into their bank account.
Parliament Steps In
The controversy surrounding the suspension of payments has reached Parliament, with the Treasury Select Committee demanding answers from HMRC.
Committee chair Dame Meg Hillier has written to the tax authority, asking for details on how many families were affected, what went wrong, and what safeguards are now in place to prevent future errors.
She also raised concerns about the use of Home Office travel data, questioning whether families who booked but didn’t actually take flights were wrongly flagged as having moved abroad.
Reports suggest that the issue was particularly severe in Northern Ireland, where almost 78% of targeted families were wrongly identified as having left the country. In one instance, 129 families were flagged during the pilot scheme, but only 28 had truly emigrated.
HMRC’s Response and Next Steps
In response to public criticism, HMRC said it has already updated its processes, giving claimants a full month to respond to correspondence before payments are stopped.
An HMRC spokesperson said: “We remain committed to protecting taxpayers’ money and are confident that the majority of suspensions are accurate.”
However, they acknowledged the distress caused to those wrongly affected, adding that the department is taking immediate steps to improve communication and speed up the reinstatement of payments.
Families are encouraged to check their HMRC correspondence and make sure their contact details are up to date. Anyone who believes their payments have been unfairly stopped can contact HMRC’s Child Benefit helpline for assistance.
What does this mean for Families?
For many households, Child Benefit is a crucial source of financial support, especially during the ongoing cost-of-living crisis.
The recent suspension errors have left some parents struggling to cover everyday expenses, including childcare, school meals, and clothing.
With HMRC now moving to correct its mistake and issue backdated Child Benefit payments, affected families are hopeful that their finances will soon return to normal.
HMRC’s Child Benefit review highlights the importance of balancing fraud prevention with fair treatment for genuine claimants.
While the government’s effort to tackle fraudulent claims is understandable, thousands of UK families are now waiting anxiously for their payments to be restored.
If you’ve recently had your Child Benefit stopped, keep an eye on official communication from HMRC, as back payments may be due this month.
