Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 November 2025 to Question 89705 on Child Benefit, what steps HMRC will take to ensure that customers affected by the suspension of Child Benefit payments are formally notified of the apology issued and compensated for any financial hardship caused.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC’s Chief Executive wrote to the Treasury Select Committee on 14 November 2025 about this matter including the corrective action that HMRC is taking. This letter was subsequently published by the Committee on 18 November 2025. There are no plans to publish a report.
In the response to the Treasury Select Committee, HMRC provided figures for those customers subsequently confirmed as eligible through a PAYE check or customer contact up to and including 31 October 2025. This time period reflects that figures are only validated after the month end.
Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November 2025, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks in which to make contact.
HMRC holds information by postal address although HMRC would be unable to release to such a granular level due to the risk of breaching taxpayer confidentiality.
HMRC’s pilot last year using international travel data prevented around £17m in incorrect payments. This led to a wider rollout and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, which is expected to save around £350 million over the next five years.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 November 2025 to Question 89703 on Child Benefit, if she can advise what is the most localised level for which data is available.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC’s Chief Executive wrote to the Treasury Select Committee on 14 November 2025 about this matter including the corrective action that HMRC is taking. This letter was subsequently published by the Committee on 18 November 2025. There are no plans to publish a report.
In the response to the Treasury Select Committee, HMRC provided figures for those customers subsequently confirmed as eligible through a PAYE check or customer contact up to and including 31 October 2025. This time period reflects that figures are only validated after the month end.
Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November 2025, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks in which to make contact.
HMRC holds information by postal address although HMRC would be unable to release to such a granular level due to the risk of breaching taxpayer confidentiality.
HMRC’s pilot last year using international travel data prevented around £17m in incorrect payments. This led to a wider rollout and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, which is expected to save around £350 million over the next five years.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 November 2025 to Question 89705 on Child Benefit, how many of the 23,500 enquiries excluded from the PAYE check were found to be eligible for reinstatement after the checks were completed on 14 November 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC’s Chief Executive wrote to the Treasury Select Committee on 14 November 2025 about this matter including the corrective action that HMRC is taking. This letter was subsequently published by the Committee on 18 November 2025. There are no plans to publish a report.
In the response to the Treasury Select Committee, HMRC provided figures for those customers subsequently confirmed as eligible through a PAYE check or customer contact up to and including 31 October 2025. This time period reflects that figures are only validated after the month end.
Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated. By the end of November 2025, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks in which to make contact.
HMRC holds information by postal address although HMRC would be unable to release to such a granular level due to the risk of breaching taxpayer confidentiality.
HMRC’s pilot last year using international travel data prevented around £17m in incorrect payments. This led to a wider rollout and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, which is expected to save around £350 million over the next five years.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ensure that contractors have the same right to (a) settlement and (b) negotiated concession of their tax bills that are provided to large companies.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC applies the law fairly and consistently in accordance with its published Litigation and Settlement Strategy (LSS). This ensures every taxpayer, no matter who they are, pays the tax due under the law.
Central to the LSS is that HMRC will not settle a dispute by agreement for an amount which is less than it would reasonably expect to obtain from litigation.
HMRC’s LSS can be found on gov.uk: www.gov.uk/government/publications/litigation-and-settlement-strategy-lss
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential risks cryptocurrency market volatility poses to financial stability.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Bank of England’s Financial Policy Committee (FPC) is responsible for identifying and monitoring risks to UK financial stability. The FPC’s latest Record (October 2025) sets out its views on the financial stability outlook, including its assessment of market related risks.
The government intends to bring forward legislation this year to create a comprehensive financial services regulatory regime for cryptoassets in the UK.
The UK also continues to play an active role internationally on work to respond to the global challenges and opportunities posed by digital asset innovation, including potential risks to financial stability, through fora such as the Financial Stability Board.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the her Department will review the tax treatment of capital gains on cryptocurrency transactions to ensure clarity and compliance.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The government recognises the significant potential for cryptoassets and blockchain technologies to drive economic growth in the UK and increase efficiencies across financial markets. We are committed to making the UK a world leading destination for cryptoassets.
Noting the novel and evolving nature of cryptoassets, it is right that the government keeps their tax treatment under review.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of data-sharing protocols between Departments following the suspension of child benefit payments by HMRC.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
HMRC uses Home Office international travel data as a starting point for identifying potential unreported absences from the UK. Undetected changes to an individual’s residency status are a leading cause of Child Benefit error and fraud.
The legal basis for disclosing information between HMRC and Home Office for the purpose of tackling fraud is Chapter 4 of the Digital Economy Act (“DEA”) 2017. The exchange of data between HMRC and the Home Office continues to work as expected and agreed.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC plans to publish the findings of its review into suspended child benefit payments.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.
In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this.
Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims.
HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated.
By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.
HMRC will also be responding to the Treasury Select Committee to outline the steps it has taken in relation to this issue.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when she expects HMRC to complete its review of suspended child benefit claims.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
As part of its ongoing efforts to reduce error and fraud in the Child Benefit system, HMRC undertook a pilot last year using international travel data. This pilot saw thousands of people who had left the UK but carried on claiming Child Benefit removed from the system, preventing around £17m in incorrect payments. This led to the expansion of the measure and investment in an additional 180 counter-fraud staff, announced at the Autumn Budget 2024, and is expected to save around £350 million over the next five years.
In expanding the process over the past few months, a check of HMRC PAYE systems to look for continuing UK employment was excluded on around 23,500 enquiries in order to streamline the process, with a view to employment status being tested as part of any subsequent customer enquiry. We have apologised for this.
Following concerns being raised, swift action was taken to improve the processes. A decision was made on 29 October to reinstate the employment check for all cases with immediate effect, meaning that HMRC’s risking has a higher success rate for identifying ineligible claims.
HMRC reviewed all compliance cases already opened and conducted a PAYE check. These checks were completed for all customers on 14 November. Where there was evidence that customers had continued UK employment, HMRC reinstated payments automatically without any need for customer contact and those payments have been backdated.
By the end of November, HMRC will have written to all customers who have not yet contacted them to provide a further 4 weeks to make contact.
HMRC will also be responding to the Treasury Select Committee to outline the steps it has taken in relation to this issue.
Asked by: Andrew Snowden (Conservative - Fylde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many child benefit claims have been suspended from claimants as a result of data-sharing between HMRC and the Home Office in Fylde constituency since September 2025.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
It is not possible to provide the information requested for the Fylde constituency since September 2025. This is because HMRC do not hold the information at a constituency level.