"Thousands to Get Child Benefit Back as HMRC Launches Urgent Review"

HMRC to Review Thousands of Suspended Child Benefit Payments In a significant move, the UK's tax authority, HMRC, has announced an immediate review of approximately 23,500 child benefit payments that were suspended using travel data, following complaints from claimants who had been unfairly penalized for short-term trips abroad. This decision comes after MPs demanded answers from HMRC regarding the new system, which was introduced to combat child benefit fraud and is estimated to save £350m over five years. According to HMRC, the review aims to rectify any errors and provide a one-month window for affected individuals to respond before payments are suspended. The tax authority has apologized for any errors and says anyone who thinks their benefits have been stopped in error should contact them. HMRC has also stated that it will restore benefits to those who were incorrectly stopped, highlighting the need for a more nuanced approach to detecting benefit fraud. The decision to review the suspended payments follows a crackdown on child benefit fraud, which aimed to save £350m over five years. However, the new system has now led to a backlog of complaints from affected families. Many people, including Eve Craven, had their child benefit halted after they went on a short trip abroad. Craven had her benefit stopped after she went on a five-day trip to New York with her son, according to BBC Money Box reporter Eimear Devlin. The review is a response to concerns raised by MPs on the Treasury Select Committee, who demanded answers from HMRC regarding the new system. The committee had expressed concerns that the tax authority may have unfairly stopped benefits for families who were on short-term holidays abroad, rather than permanently leaving the UK. HMRC's decision to review the suspended payments is a significant development, which aims to rectify any errors and provide a more nuanced approach to detecting benefit fraud. In a statement, HMRC said, "We apologize for any errors and are reviewing our decisions to strip child benefit from about 23,500 claimants. Anyone who thinks their benefits have been stopped in error should contact us." The review is expected to take several weeks, and HMRC has promised to restore benefits to those who were incorrectly stopped. The decision to review the suspended payments is a significant step towards rectifying the errors made by HMRC. It highlights the need for a more nuanced approach to detecting benefit fraud and the importance of ensuring that families who are eligible for child benefit receive their payments. As the review continues, HMRC will work to restore benefits to those who were incorrectly stopped and provide a more accurate system for detecting benefit fraud. In the meantime, families who have had their child benefit suspended are advised to contact HMRC to discuss their case. The tax authority has promised to provide a one-month window for affected individuals to respond before payments are suspended. As the review continues, HMRC will work to rectify any errors and provide a more accurate system for detecting benefit fraud. Background information and context: The new system, which was introduced to combat child benefit fraud, uses travel data to determine whether claimants are living outside the UK permanently. However, the system has now led to a backlog of complaints from affected families. The review is a response to concerns raised by MPs on the Treasury Select Committee, who demanded answers from HMRC regarding the new system. Expert opinions: According to Eimear Devlin, BBC Money Box reporter, "The decision to review the suspended payments is a significant development, which aims to rectify any errors and provide a more nuanced approach to detecting benefit fraud." Devlin added, "Many people, including Eve Craven, had their child benefit halted after they went on a short trip abroad. This decision is a step towards rectifying the errors made by HMRC." Current status and next steps: The review is expected to take several weeks, and HMRC has promised to restore benefits to those who were incorrectly stopped. Families who have had their child benefit suspended are advised to contact HMRC to discuss their case. The tax authority has promised to provide a one-month window for affected individuals to respond before payments are suspended. As the review continues, HMRC will work to rectify any errors and provide a more accurate system for detecting benefit fraud.