UK (Parliament Politics Magazine) – Legal experts say HMRC likely violated privacy laws after suspending child benefit using incomplete Home Office travel data.
As reported by The Guardian, ministers may have breached privacy laws by halting child benefits based on inaccurate Home Office data, according to legal experts.
The Information Commissioner’s Office has contacted HMRC to investigate concerns over child benefit payments.
What did Steve Darling say about HMRC’s child benefit errors?
The government faces growing pressure to explain HMRC’s use of incomplete Home Office data, with Liberal Democrat Steve Darling calling it “unacceptable.”
He said,
“After the carers allowance repayments scandal, this news raises fresh concerns that things are seriously wrong within our welfare system, with people paying the price through no fault of their own.”
Mr Darling added,
“Ministers must come clean on how exactly this error was allowed to happen in the first place, support affected families, and ensure that action will be taken to stop such mistakes from ever happening again.”
What did Eleonor Duhs say about the accuracy of personal data?
Eleonor Duhs, a barrister and privacy law expert, said,
“One of the main data protection principles is that personal data should be accurate. If you don’t know whether the data is accurate, and that seems to be proven by the experiences that have been set out in the stories, then that really shows that there is a breach if data protection law.”
She stated that data protection law requires programs using travel data to prove both “necessity” and “proportionality,” aiming to save £350m.
Ms Duhs said,
“There is a human rights test to balance here. Under the data protection laws, the use of personal data has to be necessary, there has to be a legitimate aim, and it has to be proportionate to that aim.”
She added,
“We’ve got so many mistakes here it begs the question as to whether this process was done in a way that was proportionate to people’s human rights given the detriment to people’s lives and the distress caused.”
What did the Information Commissioner say about data-sharing?
A spokesperson from the ICO said,
“We are in contact with HMRC regarding the issues raised. Any data-sharing between public bodies must be necessary, proportionate and carried out in line with data protection law. This includes ensuring that data is accurate and fit for purpose, especially when it is being used to make decisions linked to benefit payments.”
They added,
“We expect organisations to demonstrate how their use of personal data meets legal requirements, particularly where decisions may have significant impacts on individuals.”
What did the Home Office and HMRC say about data use in benefits?
The child benefit suspension followed the Home Office’s providing incomplete travel data to HMRC, which carried out the government’s anti-fraud operation.
The tax authority insisted it acted fully within data protection regulations.
A HMRC spokesperson stated,
“We’ve not breached any data protection laws regarding our child benefit compliance activity. We adhere to the UK GDPR and other data protection legislation when processing Personal Data.”
It confirmed it has maintained ongoing contact with the ICO, which oversees the exercise under the Digital Economy Act Governance Board.
Officials at the Home Office highlighted key caveats in guidance shared with citizens.
It was stated in a letter sent to passengers requesting their Home Office records,
“Any travel history provided should be interpreted as an intention to travel, not as proof of travel. The carrier should be contacted directly if the information is required for an official process.”
After apologising twice for the distress caused, HMRC paused the suspension of child benefits pending confirmation from recipients.
HMRC said it will verify travel information against its PAYE tax records.
It added,
“This strikes the right balance between protecting taxpayers’ money and ensuring payments are only suspended when appropriate.”
The tax authority confirmed that an agreement with the Home Office allows it to use travel data to guide compliance and tackle errors.
What did HMRC say about suspending payments to families?
HMRC confirmed that 1,979 families had their child benefit payments reinstated by 31 October and urged anyone wrongly affected to contact the helpline.
Officials in Northern Ireland revealed that HMRC stopped payments to some taxpayers returning home through Dublin Airport.
It was revealed that child benefit payments had been suspended for families across Britain, including those who returned via the same airport, with trips from years ago flagged incorrectly.
The HMRC crackdown also affected passengers who never flew, including a woman denied boarding after her child fell ill.
A recent case showed that a teacher on a school trip could not provide proof of her return to the UK.
What is a child benefit payment?
Child Benefit in the UK is a regular payment to help with the cost of raising a child. The main purpose is to provide financial support to parents and guardians for the costs of raising children.
It also helps protect the parents’ State Pension by providing National Insurance credits if their child is under 12 and they are not working.
The modern Child Benefit program was introduced in 1975 by the Labour government, with the first payments starting in 1977.
The British government is also facing calls to scrap the child benefit policy known as the “two-child” rule. Experts said that scrapping it would be the most cost-effective way to lift hundreds of thousands out of poverty and prevent many from falling into poverty by the end of the decade.
