HM Revenue and Customs (HMRC) has acknowledged that a recent crackdown on Child Benefit payments, which led to the suspension of thousands of accounts, was based on a risk it deemed "tolerable". Internal assessments suggested the chance of causing significant harm was only "remote".
Scale of the Suspensions and Subsequent Reinstatements
Official figures reveal the scale of the action: almost 24,000 child benefit accounts were suspended between July and October. However, by the end of November, the situation for many families had been resolved, with nearly 15,000 of those accounts reinstated after the claimants were confirmed as legitimate.
The crackdown utilised international travel data as an indicator that a claimant or their child might have left the UK, potentially affecting their eligibility for the benefit. HMRC stated that this data was used to trigger further checks, not as definitive proof.
Internal Risk Assessment and External Criticism
According to documents reported by The Guardian, HMRC officials internally judged that the "severity of the harm" that could result from incorrectly suspending payments was "minimal". This formed part of the justification for the strategy's "tolerable" risk level.
The approach has drawn criticism from privacy and rights groups. Mariano delli Santi, legal and policy officer at the Open Rights Group, analysed the documents and concluded the Data Protection Impact Assessment (DPIA) was conducted poorly. "The purpose of a consultation within a DPIA is not to inform but to gather feedback and identify potential risks," he stated.
Some affected families received communications stating that "any travel history provided should be interpreted as an intention to travel and not as proof of travel", advising them to contact the travel carrier directly for official proof if needed.
How Child Benefit Works and Who is Affected
Child Benefit is a vital support for families across the UK, claimed by over seven million households. The current rates are £26.05 per week for the first child and £17.25 for each subsequent child. Eligibility generally requires the child to be under 16, or under 20 if in approved education or training, and living with the claimant.
For higher-earning families, a tax charge known as the High Income Child Benefit Charge applies. If either parent or partner earns over £60,000, they must repay 1% of the benefit for every £200 earned above that threshold.
In its defence, HMRC explained the rationale behind its data-led approach: "International travel data gives an indication that a customer may no longer be eligible for child benefit. We then conduct our own checks and open inquiries where necessary, giving customers at least one month to provide evidence, before making any decisions on eligibility."
The department added that this method "enables us to tackle error and fraud without asking all child benefit customers to regularly confirm their continued eligibility".
