REGULATORY · UK
HMRC resumes anti-fraud scheme that suspended child benefits
Change
HMRC has resumed an anti-fraud scheme that previously suspended child benefit payments for thousands of parents.
Why it matters
HMRC will restart an anti-fraud enforcement process that uses Home Office travel data to identify parents who appear to have travelled abroad and to suspend their child benefit payments. Late last year 23,800 families had child benefit payments stopped under the process and 13,800 households were later found to have had benefits suspended incorrectly. The Home Office failed to record return journeys in some cases and recorded exits for people who did not board booked flights. Cited examples include travellers who missed departures due to illness and people who changed plans after booking without cancelling outward journeys.
Implications
- · Child benefit payments can again be suspended when matches appear in Home Office travel records, triggering immediate payment interruptions.
- · Incorrect or incomplete travel records can produce erroneous suspensions, creating additional appeals and administrative workload for benefits teams.
- · Families whose payments are suspended will face interruptions to benefit receipt while cases are reviewed or corrected.
Who is affected
- · Parents receiving child benefit
- · HMRC enforcement and compliance teams
- · Benefit administrators
- · Home Office travel-data teams
Source
Topics
World & Politics Policy & Regulation Law & Public Safety Regulatory Actions Compliance