HM Revenue & Customs (HMRC) is reviewing its decision to halt child benefit payments for around 23,500 claimants after using travel data to conclude they had permanently left the UK.
The tax body’s automated checks, which compared benefit records with Home Office travel data, appear to have mistakenly targeted families who had only taken short holidays abroad.
Under existing rules, child benefit normally stops after eight weeks spent outside the UK. However, many affected parents said their payments were suspended even after brief trips.
The move has drawn scrutiny from MPs on the Treasury Select Committee, who demanded an explanation from HMRC.
The agency has since apologised and urged anyone who believes their payments were wrongly stopped to get in touch.
A spokesperson said HMRC is “reviewing all past cases using PAYE data” and will reinstate benefits and back payments where continued UK employment is confirmed.
The error came to light after several families in Northern Ireland were affected.
Although some had travelled from Belfast but returned to the UK via Dublin, meaning their re-entry was not logged due to the absence of passport checks under the Common Travel Area arrangement between the UK and Ireland.
The payments have since been restored and backdated and HMRC said it expects to complete its review and reimburse affected families by the end of next week.
