HMRC accepted ‘tolerable’ risk of harm in child benefit fraud crackdown

The Guardian - World NewsCenter-LeftEN 4 min read 100% complete by Luke Butterly and Lisa O’CarrollJanuary 12, 2026 at 11:31 AM

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long article 4 min

HMRC is under scrutiny for suspending nearly 24,000 child benefit accounts between July and October as part of an anti-fraud drive using Home Office data. Internal documents reveal HMRC acknowledged a "tolerable" risk of wrongly flagging families as emigrants, despite a pilot scheme showing high error rates in travel data. At least 63% of those affected were later confirmed as legitimate UK residents, with only 4.3% found to have incorrect claims. The Treasury select committee will question HMRC officials about the episode, particularly the decision to remove PAYE checks to streamline the process, which led to widespread errors and left families without benefits. Thousands of cases remain unresolved, and the number of legitimate claimants is expected to rise.

Key Entities & Roles

Key Player Opposition Context

Devon 30% Bristol 30% Dublin ×230% France 40% Treasury Select Committee 60% UK ×270% Home Office ×580% HM Revenue and Customs ×590%

Keywords

child benefit 100% fraud crackdown 90% hmrc 80% home office data 70% legitimate claimants 60% incorrect claims 60% data errors 50% risk assessment 50% benefit suspension 40%