HMRC to review 23,500 child benefit stoppages
HMRC will re‑examine around 23,500 child benefit stoppages after a data‑matching programme treated some short holidays as permanent moves abroad. The step follows questions from MPs on the Treasury Select Committee and a rise in complaints reported by the BBC’s Money Box.
Under current rules, child benefit ends after eight weeks outside the UK. Families say payments were halted even when they had been away only briefly, with HMRC later concluding they had left the country. The department has apologised for mistakes and urged anyone affected to get in touch.
The checks compare HMRC records with Home Office international travel data to identify potential long‑term absences. That method struggles when return journeys leave no official trace, particularly within the Common Travel Area between the UK and Ireland where there are no routine passport checks at the land border.
The problem first showed up in Northern Ireland. Some families flew out from Belfast, returned via Dublin, then drove home. Because re‑entry at the border generated no immigration record, the system assumed they had not come back. UK and Irish citizens can move freely under the Common Travel Area, which complicates automated checks.
One parent, Eve Craven, told BBC Money Box she took a five‑day trip to New York with her son. About 18 months later a letter arrived stating there was no record of her return and that her child benefit had been stopped unless she could quickly prove otherwise. After challenging the decision, her payments were reinstated and backdated.
HMRC says it is reviewing all past cases and will use PAYE information to confirm continued UK employment. Where that evidence exists, payments will be restored and any arrears paid. The department aims to complete the recheck within a week, though it has not said how many errors were made or how they occurred.
For households, the effect is immediate cash‑flow stress. Child benefit is modest but predictable; even a short interruption can disrupt rent, food and childcare budgets. Backdating helps, but families can still face overdraft and borrowing costs while payments are paused.
If you are affected, gather proof of ongoing life in the UK-recent payslips, a P60, school attendance notes, GP appointments and any travel documents. For returns via Ireland, everyday records such as card transactions or utility usage can help establish your timeline. Contact HMRC, reference the review using PAYE checks, and request backdating where due.
The policy aim is to cut fraud-ministers estimate savings of about £350m over five years since a September crackdown expanded data‑matching. But accuracy matters: false positives shift the administrative burden onto families and erode trust. The Common Travel Area remains a blind spot that data alone cannot fully resolve.
What to watch now is the share of the 23,500 cases that are overturned, the scale of back payments, and whether the eight‑week rule or the matching process is refined. The Treasury Committee’s scrutiny should surface those details, and HMRC’s response will set the tone for future fraud checks.