Legal experts allege that ministers may have violated privacy laws when they suspended child benefit payments for numerous families based on incomplete data from the Home Office. The UK’s Information Commissioner’s Office (ICO) has reached out to the national tax authority, HMRC, regarding the potential issues that have arisen.
As public scrutiny increases, the Liberal Democrat spokesperson for work and pensions, Steve Darling, has characterized the situation as unacceptable, particularly in light of past controversies, such as the carers allowance repayments scandal. He demands transparency on how this error occurred and emphasizes the need for support to the affected families, alongside measures to prevent similar occurrences in the future.
As of October 31, HMRC reported that it had reinstated payments to nearly 2,000 families, affirming confidence in the correctness of most of the 23,500 suspended payments. However, the agency encouraged individuals who faced erroneous sanctions to contact a designated helpline. Problems with the benefit fraud crackdown became evident when it was revealed that payments were halted for families returning to the UK through Dublin airport and for those with travel flagged as one-way tickets, even from situations occurring years earlier.
Some cases involved individuals who were incorrectly penalized, including a woman whose child fell ill before boarding. A teacher was also affected because she could not provide evidence of a return flight from a school-organized trip.
Eleonor Duhs, a barrister specializing in privacy law, pointed out the necessity for personal data accuracy to comply with data protection principles, while the ICO stated that any data-sharing must adhere to legal requirements. HMRC maintains it has not breached data protection laws and asserts ongoing collaboration with the ICO concerning this matter.
The Home Office’s communication regarding travel data contained caveats indicating that the information could reflect intentions rather than actual travel. Following urgent reviews, HMRC has suspended the practice of stopping child benefits until further checks are conducted. The agency claims its use of travel data was intended to address error and fraud, aiming to save significant taxpayer funds while ensuring compliance with data protection regulations.
Source: https://www.theguardian.com/politics/2025/nov/01/hmrc-likely-to-have-breached-privacy-laws-in-stopping-child-benefit-experts