Data breach claims hit HMRC after benefit suspensions

The UK government faces scrutiny after the HMRC suspended child benefit payments for thousands of families using inaccurate Home Office travel data.

The Guardian reports that the UK government faces scrutiny after the HMRC suspended child benefit payments for thousands of families using inaccurate Home Office travel data, a move that legal experts say may have breached data protection laws.

The Information Commissioner's Office has contacted HMRC to assess whether the data-sharing process complied with legal standards requiring accuracy, necessity, and proportionality.

HMRC has since reinstated payments to 1,979 families but maintains that most of the 23,500 suspensions were legitimate. Privacy barrister Eleonor Duhs said the flawed data demonstrates a likely breach of the UK GDPR, highlighting the severe impact on affected families.

Liberal Democrat MP Steve Darling called the situation "unacceptable" and urged transparency and accountability. The Home Office has acknowledged its travel data merely indicates "intent to travel," not proof of travel, intensifying criticism of the scheme.

HMRC has apologized, paused further suspensions, and pledged tighter cross-checks with tax data before future actions.

Written by

Sharon Florentine Editorial Director

Sharon Florentine is the editorial director for CyberRisk Alliance’s Channel Brands and acting editorial director for SC UK. She is responsible for setting strategy and editorial direction and developing content for news, features, analysis and other written content, moderates live webcasts, and oversees research projects. Sharon has previously held key editorial, content and leadership positions at DevOps.com, Security Boulevard, CIO.com, Ziff Davis Enterprise, and CRN, among others.