The government is under pressure after it emerged that thousands of families had their child benefit payments wrongly suspended because of flawed travel data shared by the Home Office. Legal and privacy experts say the move could amount to a breach of data protection laws.
The Information Commissioner’s Office (ICO) confirmed it has contacted HM Revenue and Customs (HMRC) over the issue, which has left many families struggling after being wrongly accused of leaving the UK permanently.
HMRC said it had reinstated payments for nearly 2,000 families, but admitted that tens of thousands were affected. The department insisted that the “majority” of suspensions were correct and urged anyone affected to contact its helpline.
Families wrongly flagged as having left the country
The controversy began when politicians in Northern Ireland discovered that child benefit payments had been stopped for families who had travelled through Dublin Airport — even if they had returned to the UK days later.
It later emerged that people across the country were being targeted, including families who had taken holidays years ago, or those who had never actually left the UK. In one case, a woman who missed her flight after her child fell ill was still marked as having left the country.
One teacher said her payments were suspended after going on a school trip abroad, even though the travel had been booked by her employer and she had returned as planned.
Legal experts warn of possible data law breach
Privacy experts have warned that the suspension programme may have breached data protection rules by using inaccurate travel information to make benefit decisions.
“If you’re making life-changing decisions using data that isn’t accurate or complete, that’s a clear breach of data protection principles,” said Eleonor Duhs, a barrister specialising in privacy law.
The ICO said it was reviewing the matter and reminded public bodies that any sharing of personal information must be “necessary, proportionate, and based on accurate data”.
Government departments under fire
The Home Office shared travel records with HMRC as part of a government crackdown on benefit fraud. However, it later admitted the data did not confirm whether a person had actually travelled, only that they intended to.
Despite that warning, HMRC used the information to identify thousands of families it believed were living abroad. The tax authority has now paused the use of travel data in these checks and apologised for the distress caused.
It has promised to review its process and will now cross-check travel information with PAYE tax data to verify if people are still living and working in the UK before suspending payments.
Political and public backlash
Opposition politicians have condemned the government’s handling of the situation.
Steve Darling, the Liberal Democrat spokesperson for work and pensions, said:
“This is completely unacceptable. Once again, families are paying the price for government incompetence. Ministers must explain how this happened and ensure that it never happens again.”
Campaigners say the incident exposes deeper problems with how welfare data is handled.
“These children and families have done nothing wrong,” said Esme Madill from the Migrant and Refugee Children’s Legal Unit. “Behind each case is a family that’s been plunged into unnecessary stress and hardship because of government mistakes.”
HMRC denies wrongdoing
HMRC insists it has not broken any data laws. A spokesperson said:
“We adhere to UK GDPR and other data protection legislation when processing personal data. We’ve not breached any laws in relation to our child benefit checks.”
The department added that it works closely with the ICO and follows strict data-sharing rules under the Digital Economy Act.
However, critics say that reassurance is not enough. “The government must show that its systems are fair, proportionate and humane,” said privacy lawyer Eleonor Duhs. “This episode shows how quickly mistakes can harm people’s lives.”
What happens next
The ICO is continuing its discussions with HMRC and could open a formal investigation if it finds evidence of wrongdoing.
For now, HMRC says families who believe their payments were wrongly suspended should contact its helpline to have their child benefit reinstated immediately.
