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MPs Rebuke HMRC Over Faulty Data That Halted Child Benefit for Thousands

New figures trigger a Commons rebuke, intensifying pressure for an independent review.

Overview

  • Treasury committee chair Meg Hillier criticised HMRC as "cavalier" for dropping PAYE cross-checks and relying on Home Office travel records.
  • HMRC told MPs that by 31 October eligibility had been confirmed in 3,673 of 23,795 cases flagged as potential emigrants, with reviews still under way.
  • The suspensions were driven by travel data that recorded flights out but not returns, with many Northern Ireland parents returning via Dublin caught up in errors.
  • HMRC has apologised and introduced safeguards, including checking employment data before suspensions and giving claimants a month to respond, with letters now offering a further four weeks to provide evidence.
  • Conservative MP Andrew Snowden called for a full independent review, while privacy groups warned of 'function creep' from using passenger name records for routine benefits enforcement.