In a startling admission, the government has revealed that 60 per cent of parents targeted in a recent HM Revenue and Customs (HMRC) fraud crackdown were wrongly accused of claiming Child Benefit while living abroad.
Scale of the Mistake Exposed
The jaw-dropping scale of the error, reported by The Guardian and confirmed by the Labour government, is four times higher than previously acknowledged. The crackdown, which used Home Office travel data to identify potential fraudsters, saw payments stopped for 23,500 families.
However, Conservative MP for Fylde, Andrew Snowden, secured figures showing that 15,000 of those 23,500 parents were in fact legitimate UK residents entitled to the support. This means only around 4.3% of those investigated were found to be claiming incorrectly.
MP Condemns 'Deeply Troubling' Impact on Families
Andrew Snowden, who tabled the parliamentary question that uncovered the data, spoke out forcefully against the blunder. "These figures are deeply troubling," he said. "HMRC has confirmed that nearly two-thirds of the families caught up in this exercise were fully eligible for child benefit."
He added a personal note, stating: "I grew up in a family that for a period of time, through no fault of our own, relied on the benefits system. So I know first-hand how distressing it will have been for those who rely on that money to put food on the table."
How the Flawed System Worked
The pilot scheme used international travel data as a risk indicator to decide if someone had left the UK permanently. The system was intended to efficiently target compliance checks, but it incorrectly flagged thousands of people who had simply taken trips abroad.
An HMRC spokesperson defended the approach, stating: "The pilot showed that we can use international travel data effectively to tackle error and fraud, and it remains our best assessment for this compliance activity." They argued it allowed them to contact "less than 2% of child benefit customers" rather than asking all recipients to regularly reconfirm eligibility.
Child Benefit is a vital payment for over seven million families across the UK. It is currently worth £26.05 per week for the first child and £17.25 for each additional child. Eligibility generally requires the child to live with the claimant, and payments can continue for young people in approved education or training up to age 20.
Myrtle Lloyd, HMRC’s Director General for Customer Services, reiterated the benefit's importance, saying: "Child Benefit is an important boost to families." The revelation, however, raises serious questions about the methods used to protect public funds and the real-world impact of such errors on household budgets.
