UK — HMRC suspended child benefit payments for 23,000 families based on flight records from the Home Office that indicated the parents had emigrated. The agency later admitted that 71% of the targeted parents were eligible for child benefit.

The National Audit Office reported that HMRC's scheme failed to adequately consider its impact on claimants. HMRC suspended the initial introduction of the scheme at the end of the previous year after reports indicated that thousands of targeted parents had only traveled for holidays.

The National Audit Office stated the first rollout suspended payments for more eligible claimants than necessary and imposed onerous requirements for proving eligibility. HMRC also sent letters to parents demanding they answer 70 questions to prove they had not emigrated, despite holding records that showed individuals were working and paying tax in the UK.

HMRC has since reintroduced PAYE checks and removed travelers from Northern Ireland who returned via Dublin airport from the scheme. The initial rollout did not include PAYE checks because HMRC lacked experienced staff to perform them and relied on workers unqualified to check tax records. The National Audit Office also found that HMRC did not appoint a single senior responsible owner for the scheme, which resulted in key decisions lacking sufficient scrutiny.

An HMRC spokesperson said the agency welcomed the report, noting, "We welcome this report, which recognises how data can help tackle child benefit error and fraud." The spokesperson also stated that cases opened between August and October 2025 protected around £60 million in taxpayers' money. Figures showed that about £270 million was incorrectly claimed in 2024-25 by people living overseas. "We've acknowledged that some mistakes were made initially, but we took swift action to put things right and strengthened our approach with extra safeguards," the spokesperson said.

HMRC received 22,500 calls from customers between August 2025 and February 2026 regarding the scheme. HMRC told the National Audit Office that it relied on feedback received through phone calls, letters, and MP representations to identify problems for claimants.