Home Office travel records used in a pilot anti-fraud initiative led to the suspension of child benefits for thousands of families, but nearly half of those flagged were still residing in the UK, raising concerns about the accuracy of the data. The scheme reportedly saved HMRC £17 million, but 46% of families were wrongly categorized as having emigrated, exceeding the acceptable error margin of 1% to 5%.
In Northern Ireland, the data indicated that 78% of flagged cases incorrectly suggested families had not returned from abroad. During the pilot, 129 families were identified as having left the country, yet only 28 had actually done so. This issue has prompted Labour MP Kim Johnson to call for an investigation following reports from affected constituents whose benefits were stopped.
Experts have questioned the validity of using Home Office data for fraud detection, citing serious implications. The detailed context surrounding the initiative remains unclear, but experts have criticized the reliance on potentially flawed data. Recent reports highlighted instances of individuals losing benefits after travel plans were disrupted, such as a woman whose benefits were halted after a flight was missed due to a child’s medical emergency.
Parliamentary members from the Liberal Democrats and the Green Party have also expressed concerns, with questions raised about the absence of published business cases and data protection assessments. The Guardian and another investigative site initially reported on the impact of this initiative on families, revealing that approximately 23,500 letters cutting benefits had been sent nationwide.
In response to the backlash, HMRC stated it would no longer use travel data through Dublin airport to assess cases, as it is part of the common travel area. They affirmed that benefits would not be suspended without prior verification with PAYE records and the individuals involved. Feedback from affected parents has been mixed, with some reporting responsive support from HMRC while others struggle to receive assistance. HMRC has issued apologies and revised procedures to allow a month for response before suspending payments.
Source: https://www.theguardian.com/society/2025/nov/09/hmrc-trial-child-benefit-crackdown