Written questions by Kohler.

What steps, with reference to the Cabinet Office's press release her Department is taking to rectify data on people erroneously identified as having been outside of the UK for more than eight weeks for Child Benefit purposes.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC ran a pilot last year using data on international travel and UK employment for a random sample of 200,000 Child Benefit records. This was to identify and remove people from the system who had left the UK for more than twelve weeks but continued to claim Child Benefit despite no longer being eligible. The pilot used Home Office data on international travel as the best starting point for indicating potential unreported absences in the UK. From this data, HMRC undertook checks of PAYE systems to look for continuous UK employment before sending compliance enquiries. No Child Benefit awards were ended without attempting contact with claimants first, to clarify their residency status. HMRC’s evaluation of the pilot showed that, of the 3,656 customers that were sent enquiry letters, 933 were confirmed to be eligible, with nearly three-quarters found to be non-compliant. In all, the pilot had prevented around £17m in wrongful payments. This led to a wider rollout announced at the Autumn Budget 2024, which is expected to save £350 million over the next five years. Using PAYE and international travel data in this way is considerably more proportionate than requesting all claimants reconfirm their eligibility to HMRC frequently. It is in line with HMRC’s risk-based approach to compliance. In expanding the process last month, the PAYE check that had been present in the pilot was inadvertently omitted on around 23,500 enquiries. Based on the insight from the pilot, HMRC expect that most of these cases will have been correctly suspended. HMRC has taken immediate corrective action to resolve this issue. The employment check has been reinstated for all future cases, meaning fewer people will be sent letters in the first instance. HMRC will also perform further checks, including against PAYE records for enquiries already opened, before formally terminating awards. In addition, HMRC will no longer suspend payments at the outset and will give customers one month to evidence their continued entitlement first. Together, these changes ensure a proportionate approach for customers while balancing the need to protect against losses to the taxpayer. HMRC has set up a dedicated team to quickly unsuspend payments, where it is able to confirm with the customer that they remain entitled to Child Benefit. This includes where HMRC had failed to first check for UK employment, which led to enquiries being issued in error. Customers affected by the issue who believe they are still eligible should call the number on the letter they received, so that this dedicated team can handle their cases swiftly. Where eligibility is confirmed, payments will resume and HMRC will make backdated payments, so no one is left out of pocket. HMRC has reinstated payments for 589 claimants, as at 28 October. This includes 134 cases for customers in Northern Ireland where employment checks were retroactively applied. HMRC has also reinstated payments for a further 46 Northern Ireland customers while their residency status is confirmed.

With reference to the Cabinet Office's press release entitled Child Benefit action to save £350 million from claimants abroad, published on 22 August 2025, for what reason her Department chose international travel data to monitor whether a claimant was outside of the UK for more than eight weeks; and for what reason (a) PAYE and (b) other data were not selected for this purpose.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC ran a pilot last year using data on international travel and UK employment for a random sample of 200,000 Child Benefit records. This was to identify and remove people from the system who had left the UK for more than twelve weeks but continued to claim Child Benefit despite no longer being eligible. The pilot used Home Office data on international travel as the best starting point for indicating potential unreported absences in the UK. From this data, HMRC undertook checks of PAYE systems to look for continuous UK employment before sending compliance enquiries. No Child Benefit awards were ended without attempting contact with claimants first, to clarify their residency status. HMRC’s evaluation of the pilot showed that, of the 3,656 customers that were sent enquiry letters, 933 were confirmed to be eligible, with nearly three-quarters found to be non-compliant. In all, the pilot had prevented around £17m in wrongful payments. This led to a wider rollout announced at the Autumn Budget 2024, which is expected to save £350 million over the next five years. Using PAYE and international travel data in this way is considerably more proportionate than requesting all claimants reconfirm their eligibility to HMRC frequently. It is in line with HMRC’s risk-based approach to compliance. In expanding the process last month, the PAYE check that had been present in the pilot was inadvertently omitted on around 23,500 enquiries. Based on the insight from the pilot, HMRC expect that most of these cases will have been correctly suspended. HMRC has taken immediate corrective action to resolve this issue. The employment check has been reinstated for all future cases, meaning fewer people will be sent letters in the first instance. HMRC will also perform further checks, including against PAYE records for enquiries already opened, before formally terminating awards. In addition, HMRC will no longer suspend payments at the outset and will give customers one month to evidence their continued entitlement first. Together, these changes ensure a proportionate approach for customers while balancing the need to protect against losses to the taxpayer. HMRC has set up a dedicated team to quickly unsuspend payments, where it is able to confirm with the customer that they remain entitled to Child Benefit. This includes where HMRC had failed to first check for UK employment, which led to enquiries being issued in error. Customers affected by the issue who believe they are still eligible should call the number on the letter they received, so that this dedicated team can handle their cases swiftly. Where eligibility is confirmed, payments will resume and HMRC will make backdated payments, so no one is left out of pocket. HMRC has reinstated payments for 589 claimants, as at 28 October. This includes 134 cases for customers in Northern Ireland where employment checks were retroactively applied. HMRC has also reinstated payments for a further 46 Northern Ireland customers while their residency status is confirmed.

With reference to the Cabinet Office's press release entitled Child Benefit action to save £350 million from claimants abroad, published on 22 August 2025, what steps her Department is taking to identify people who were erroneously identified as fraudulently claiming Child Benefit on the grounds that they had been outside of the UK for more than eight weeks.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC ran a pilot last year using data on international travel and UK employment for a random sample of 200,000 Child Benefit records. This was to identify and remove people from the system who had left the UK for more than twelve weeks but continued to claim Child Benefit despite no longer being eligible. The pilot used Home Office data on international travel as the best starting point for indicating potential unreported absences in the UK. From this data, HMRC undertook checks of PAYE systems to look for continuous UK employment before sending compliance enquiries. No Child Benefit awards were ended without attempting contact with claimants first, to clarify their residency status. HMRC’s evaluation of the pilot showed that, of the 3,656 customers that were sent enquiry letters, 933 were confirmed to be eligible, with nearly three-quarters found to be non-compliant. In all, the pilot had prevented around £17m in wrongful payments. This led to a wider rollout announced at the Autumn Budget 2024, which is expected to save £350 million over the next five years. Using PAYE and international travel data in this way is considerably more proportionate than requesting all claimants reconfirm their eligibility to HMRC frequently. It is in line with HMRC’s risk-based approach to compliance. In expanding the process last month, the PAYE check that had been present in the pilot was inadvertently omitted on around 23,500 enquiries. Based on the insight from the pilot, HMRC expect that most of these cases will have been correctly suspended. HMRC has taken immediate corrective action to resolve this issue. The employment check has been reinstated for all future cases, meaning fewer people will be sent letters in the first instance. HMRC will also perform further checks, including against PAYE records for enquiries already opened, before formally terminating awards. In addition, HMRC will no longer suspend payments at the outset and will give customers one month to evidence their continued entitlement first. Together, these changes ensure a proportionate approach for customers while balancing the need to protect against losses to the taxpayer. HMRC has set up a dedicated team to quickly unsuspend payments, where it is able to confirm with the customer that they remain entitled to Child Benefit. This includes where HMRC had failed to first check for UK employment, which led to enquiries being issued in error. Customers affected by the issue who believe they are still eligible should call the number on the letter they received, so that this dedicated team can handle their cases swiftly. Where eligibility is confirmed, payments will resume and HMRC will make backdated payments, so no one is left out of pocket. HMRC has reinstated payments for 589 claimants, as at 28 October. This includes 134 cases for customers in Northern Ireland where employment checks were retroactively applied. HMRC has also reinstated payments for a further 46 Northern Ireland customers while their residency status is confirmed.

With reference to the Cabinet Office's press release entitled Child Benefit action to save £350 million from claimants abroad, published on 22 August 2025, how many Child Benefit claimants were erroneously identified as having been outside of the UK for more than eight weeks (a) during the pilot period and (b) since 22 August 2025.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC ran a pilot last year using data on international travel and UK employment for a random sample of 200,000 Child Benefit records. This was to identify and remove people from the system who had left the UK for more than twelve weeks but continued to claim Child Benefit despite no longer being eligible. The pilot used Home Office data on international travel as the best starting point for indicating potential unreported absences in the UK. From this data, HMRC undertook checks of PAYE systems to look for continuous UK employment before sending compliance enquiries. No Child Benefit awards were ended without attempting contact with claimants first, to clarify their residency status. HMRC’s evaluation of the pilot showed that, of the 3,656 customers that were sent enquiry letters, 933 were confirmed to be eligible, with nearly three-quarters found to be non-compliant. In all, the pilot had prevented around £17m in wrongful payments. This led to a wider rollout announced at the Autumn Budget 2024, which is expected to save £350 million over the next five years. Using PAYE and international travel data in this way is considerably more proportionate than requesting all claimants reconfirm their eligibility to HMRC frequently. It is in line with HMRC’s risk-based approach to compliance. In expanding the process last month, the PAYE check that had been present in the pilot was inadvertently omitted on around 23,500 enquiries. Based on the insight from the pilot, HMRC expect that most of these cases will have been correctly suspended. HMRC has taken immediate corrective action to resolve this issue. The employment check has been reinstated for all future cases, meaning fewer people will be sent letters in the first instance. HMRC will also perform further checks, including against PAYE records for enquiries already opened, before formally terminating awards. In addition, HMRC will no longer suspend payments at the outset and will give customers one month to evidence their continued entitlement first. Together, these changes ensure a proportionate approach for customers while balancing the need to protect against losses to the taxpayer. HMRC has set up a dedicated team to quickly unsuspend payments, where it is able to confirm with the customer that they remain entitled to Child Benefit. This includes where HMRC had failed to first check for UK employment, which led to enquiries being issued in error. Customers affected by the issue who believe they are still eligible should call the number on the letter they received, so that this dedicated team can handle their cases swiftly. Where eligibility is confirmed, payments will resume and HMRC will make backdated payments, so no one is left out of pocket. HMRC has reinstated payments for 589 claimants, as at 28 October. This includes 134 cases for customers in Northern Ireland where employment checks were retroactively applied. HMRC has also reinstated payments for a further 46 Northern Ireland customers while their residency status is confirmed.

Whether with reference to the Cabinet Office's press release her Department has carried out an assessment of the pilot scheme to stop Child Benefit payments where a claimant had been outside the UK for more than eight weeks.

As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC ran a pilot last year using data on international travel and UK employment for a random sample of 200,000 Child Benefit records. This was to identify and remove people from the system who had left the UK for more than twelve weeks but continued to claim Child Benefit despite no longer being eligible. The pilot used Home Office data on international travel as the best starting point for indicating potential unreported absences in the UK. From this data, HMRC undertook checks of PAYE systems to look for continuous UK employment before sending compliance enquiries. No Child Benefit awards were ended without attempting contact with claimants first, to clarify their residency status. HMRC’s evaluation of the pilot showed that, of the 3,656 customers that were sent enquiry letters, 933 were confirmed to be eligible, with nearly three-quarters found to be non-compliant. In all, the pilot had prevented around £17m in wrongful payments. This led to a wider rollout announced at the Autumn Budget 2024, which is expected to save £350 million over the next five years. Using PAYE and international travel data in this way is considerably more proportionate than requesting all claimants reconfirm their eligibility to HMRC frequently. It is in line with HMRC’s risk-based approach to compliance. In expanding the process last month, the PAYE check that had been present in the pilot was inadvertently omitted on around 23,500 enquiries. Based on the insight from the pilot, HMRC expect that most of these cases will have been correctly suspended. HMRC has taken immediate corrective action to resolve this issue. The employment check has been reinstated for all future cases, meaning fewer people will be sent letters in the first instance. HMRC will also perform further checks, including against PAYE records for enquiries already opened, before formally terminating awards. In addition, HMRC will no longer suspend payments at the outset and will give customers one month to evidence their continued entitlement first. Together, these changes ensure a proportionate approach for customers while balancing the need to protect against losses to the taxpayer. HMRC has set up a dedicated team to quickly unsuspend payments, where it is able to confirm with the customer that they remain entitled to Child Benefit. This includes where HMRC had failed to first check for UK employment, which led to enquiries being issued in error. Customers affected by the issue who believe they are still eligible should call the number on the letter they received, so that this dedicated team can handle their cases swiftly. Where eligibility is confirmed, payments will resume and HMRC will make backdated payments, so no one is left out of pocket. HMRC has reinstated payments for 589 claimants, as at 28 October. This includes 134 cases for customers in Northern Ireland where employment checks were retroactively applied. HMRC has also reinstated payments for a further 46 Northern Ireland customers while their residency status is confirmed.

What assessment she has made of the potential revenue from introducing a fuel tax on domestic aviation to encourage rail travel.

Air Passenger Duty (APD) applies to airlines and is the principal tax on the aviation sector, since tickets are VAT free and aviation fuel incurs no duty. APD varies by distance and class of travel and is expected to raise £4.7 billion in 2025-26. The domestic band applies to all flights between airports in England, Scotland, Wales, and Northern Ireland and is currently set at £7 for economy passengers until 31 March 2026. The Government provides significant financial support for rail travel to enable its operation and make it an attractive option for passengers, including supporting infrastructure upgrades. Recent examples include investment in the rollout of Pay As You Go fare structures in the West Midlands and Greater Manchester, and the delivery of the Northumberland Line in the North East. This sits alongside the biggest overhaul of the railways in a generation through the set-up of Great British Railways, which will strip out duplication and ensure taxpayers get better value for money.

Pursuant to the Answer of 24 March 2025 to Question 39774, what assessment she has made of the medium-long term impact of the closure of (a) grassroots and (b) cultural nightlife businesses on tax revenue.

The Government is creating a fairer business rates system that protects the high street. That is why we have announced our intention to introduce permanently lower rates for high street RHL properties, with rateable values below £500,000, from 2026-27, which we intend to fund through a higher rate for high-value properties (those with a rateable value of £500,000 and above). Ahead of these changes being made, the Government recognises that businesses will need support in 2025-26. As such, we have prevented the current RHL relief from ending in April 2025, extending it for one year to ensure that over 250,000 RHL properties see a full 40 per cent reduction on their liability, and we have frozen the small business multiplier. Taken together with small business rates relief, freezing the small business multiplier has protected over one million properties from inflationary bill increases. To recognise the economic and cultural importance of British pubs, the government also announced a duty cut on approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint.

Whether her Department plans to make an assessment of the potential merits of implementing a targeted VAT relief to 15% for (a) food, (b) alcohol and (c) tickets for (i) grassroots and (ii) cultural nightlife businesses.

The Government recognises the significant contribution made by hospitality businesses to economic growth and social life in the UK.VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. Tax breaks reduce the revenue available for vital public services and must represent value for money for the taxpayer.At Autumn Budget the Chancellor announced a duty cut on approximately 60% of the alcoholic drinks sold in pubs. This represents an overall reduction in duty bills of over £85m a year and is equivalent to a 1p duty reduction on a typical pint.

If she will make a comparative estimate of the potential impact of maintaining levels of fuel duty at the Autumn Budget 2024 on the cost of transporting goods by (a) rail freight and (b) road haulage.

At Autumn Budget 2024, the Government announced continued support for people and businesses by extending the temporary 5p fuel duty cut and cancelling the planned increase in line with inflation for 2025/26. This maintains fuel duty rates, including those for red diesel, at the levels set in March 2022 for an additional 12 months and represents an average saving of nearly £1,100 for heavy goods vehicles in 2025/26. In 2020, the previous Government announced that the red diesel entitlement would be withdrawn from most sectors from April 2022. In the rail sector, the previous Government concluded that the removal of the red diesel entitlement for passenger or freight journeys risked creating perverse environmental outcomes, namely transferring rail freight or passengers to more polluting lorries, coaches and cars if costs rose. Whereas full duty diesel is taxed at 52.95p per litre, red diesel is taxed at 10.18p per litre.

What assessment her Department has made of the potential impact of the reduction in business rate relief for grassroots music venues on (a) the number of jobs in the music industry and (b) early-career musicians.

At the Autumn Budget, the Government announced that retail, hospitality and leisure (RHL) properties will receive 40% relief (up to a cash cap of £110,000 per business) for 2025-26.The Culture, Media and Sport (CMS) Committee’s report on grassroots music venues recommended that RHL relief should not be wholly withdrawn in April 2025. The Committee’s report also highlighted the sector's desire for certainty and long-term stability. That is why the Government intends to introduce permanently lower tax rates for RHL properties with rateable values below £500,000 from 2026-27.The Government’s full response to the CMS Committee’s report was published on 14 November 2024 and is available online: https://committees.parliament.uk/work/8227/grassroots-music-venues/publications/.

What assessment her Department has made of the potential impact of changes in business rate relief for grassroots music venues on the (a) number of live music venues and (b) music industry.

At the Autumn Budget, the Government announced that retail, hospitality and leisure (RHL) properties will receive 40% relief (up to a cash cap of £110,000 per business) for 2025-26.The Culture, Media and Sport (CMS) Committee’s report on grassroots music venues recommended that RHL relief should not be wholly withdrawn in April 2025. The Committee’s report also highlighted the sector's desire for certainty and long-term stability. That is why the Government intends to introduce permanently lower tax rates for RHL properties with rateable values below £500,000 from 2026-27.The Government’s full response to the CMS Committee’s report was published on 14 November 2024 and is available online: https://committees.parliament.uk/work/8227/grassroots-music-venues/publications/.