Committee publication · Correspondence · 18 November 2025
Correspondence from HMRC to the Chair of Treasury Committee in response to use of flight data for Child Benefit surveillance, dated 14 November 2025
From: Treasury Committee
Inquiry: Work of HM Revenue and Customs
Summary
HMRC Chief Executive John-Paul Marks responds to Treasury Committee concerns about the department's use of flight data from the Home Office to identify Child Benefit customers no longer eligible due to overseas residency. HMRC defends the pilot (March–December 2024) as preventing £17m in incorrect payments, but acknowledges service failures during expansion (August–October 2025) when an employment check was removed. The department has reinstated safeguards, will suspend payments only after giving customers one month to provide evidence, and offers redress for those adversely affected.
Key findings
- Child Benefit pilot (March–December 2024) using Home Office travel data identified thousands of ineligible claimants and prevented approximately £17m in incorrect payments; compliance activity found non-compliance in nearly three-quarters of enquiries.
- Expansion began August 2025 with 180 additional counter-fraud staff; PAYE employment check was removed to streamline, leading to service failures affecting customers between August–October 2025.
- HMRC acknowledges negative impact on customers and apologises; by end of November 2025 will write to all customers not yet contacted, offering a further 4 weeks to respond.
- Child Benefit error and fraud estimated at £200m (1.6% of expenditure) in 2023-24 and £270m (2.0%) in 2024-25, prompting National Audit Office qualification of accounts.
- Process improvements implemented: employment check reinstated for all cases (29 October 2025); payments reinstated automatically where continued UK employment confirmed; new safeguard prevents automatic suspension before giving customers one month to evidence eligibility; redress available for adversely affected customers; projected savings remain approximately £350m over five years.
Government position
HMRC accepts the need for Child Benefit compliance activity to reduce substantial error and fraud (£200–270m annually) but acknowledges that implementation failures between August–October 2025 caused unintended customer harm. The department has taken corrective action: reinstatement of employment checks, automatic payment restoration where evidence of continued eligibility exists, extended response periods (two months total before claim closure), and redress mechanisms for affected customers. HMRC maintains that the use of Home Office travel data, combined with further HMRC checks, is proportionate and necessary; the exercise is not withdrawn but reformed with enhanced safeguards and governance. The government expects savings of approximately £350m over five years to remain broadly in line with projections.
Tone
ProceduralTopics
Key actors
John-Paul Marks, Dame Meg Hillier, HMRC, Home Office, National Audit Office, Treasury Committee
Notable line
“I acknowledge that the manner in which we expanded our compliance controls to protect taxpayers from error and fraud impacted some of our customers, and I am sorry for this.”
Key Quotes
“I acknowledge that the manner in which we expanded our compliance controls to protect taxpayers from error and fraud impacted some of our customers, and I am sorry for this.”
“Evaluation of the pilot showed that our enquiries resulted in the removal of thousands of claims from customers who had left the UK but carried on claiming Child Benefit, preventing around £17m payments being sent to ineligible customers.”
“It is important to highlight that no automated decisions are taken by HMRC to end entitlement to Child Benefit.”
“HMRC will no longer suspend payments at the outset on an enquiry using international travel data complemented by a PAYE check. We will give all customers at least one month to evidence their entitlement first.”
“– 18001 customers that have been adversely affected as a result of HMRC 's handling of this issue between August 2025 and October 2025, and Child Benefit was incorrectly suspended, they can ask HMRC to review any loss and ask for reimbursement.”
Source · parliament.uk record ↗