Committee publication · Correspondence · 17 March 2026

Correspondence from HMRC on update on Child Benefit compliance exercise, dated 13 March 2026

Summary

HMRC Chief Executive John-Paul Marks updates the Treasury Committee on the Child Benefit compliance exercise using international travel data. After additional quality assurance, assured figures show 9,600 of 23,800 cases (40% non-compliance rate) involved incorrect Child Benefit receipt. HMRC has corrected previously reported data, revised customer processes to include upfront employment checks and extended evidence submission periods, and will scale activity cautiously pending an independent NAO review.

Key findings

Of 23,800 cases opened August–October 2025, 13,700 customers confirmed eligible; 9,600 found ineligible (40% non-compliance rate); ~500 enquiries remain open pending customer evidence
HMRC discovered data recording errors in initial reporting: cases subject to upfront risk assessment but not opened were incorrectly included; corrected figure for Northern Ireland customers is ~800 (previously 346)
Assured figures show exercise was more effective at identifying error and fraud than interim reports suggested; non-compliance rate expected to remain broadly in line with Office for Budget Responsibility estimate
Process revisions implemented: PAYE employment check reinstated upfront; benefit suspension delayed until after one month evidence request period; customers given further month after suspension to provide evidence
Case opening volumes kept low until May 2026 to ensure revised process functioning correctly before scaling; independent NAO review underway with results expected summer 2026

Tone

Factual

Topics

public-financetax-compliancesocial-securitychild-benefit

Key actors

John-Paul Marks (HMRC Chief Executive and First Permanent Secretary), Dame Meg Hillier (Chair of the Treasury Committee), HM Revenue & Customs (HMRC), National Audit Office (NAO), Office for Budget Responsibility (OBR)

Notable line

“The assured data indicates that the exercise has been more effective in removing error and fraud than the interim figures previously suggested.”

Key Quotes

“I can confirm that this additional scrutiny has now concluded, having been undertaken by HMRC's dedicated analytical function which has responsibility for HMRC's official and national statistics .”
— John-Paul Marks · on completion of data quality assurance

“There have been revisions, which show better outcomes than originally reported, to some figures after further quality assurance.”
— John-Paul Marks · explaining data corrections

“This suggests a non-compliance rate of around 40%, pending mandatory reconsiderations.”
— John-Paul Marks · on overall findings from 23,800 cases

“Through our assurance work, we discovered that we had under-estimated the effectiveness of our compliance activity in our previously reported figures.”
— John-Paul Marks · explaining the data corrections mechanism

“I can reassure the Committee that this revision to the reported data has not impacted customers in any way.”
— John-Paul Marks · on impact of data corrections

“We intend to keep case opening volumes low until May to reassure ourselves that the process is working well before increasing volumes.”
— John-Paul Marks · on future rollout plans

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Source · parliament.uk record ↗