Government Plans Crackdown on Overseas Child Benefit Claims to Save £350m

What's Happening?

The government is initiating a crackdown on child benefit claims from individuals who have left the UK, aiming to save £350 million over the next five years. A new specialist team will utilize travel data to identify claimants who are abroad and potentially ineligible for benefits. This follows a successful pilot that prevented £17 million in incorrect payments to 2,600 people. The initiative is part of broader efforts to address benefit fraud, which saw an estimated £6.5 billion in overpayments due to fraud in 2024/25. The government plans to expand this approach to other benefits claimed overseas.

Why It's Important?

This crackdown is significant as it addresses the issue of benefit fraud, which has been a growing concern, especially since the pandemic. By preventing fraudulent claims, the government aims to save taxpayer money and ensure that benefits are distributed to eligible recipients. The initiative also highlights the use of data sharing under the Digital Economy Act 2017 to enhance public sector efficiency. The move could lead to stricter regulations and increased scrutiny on benefit claims, impacting millions of families who rely on these payments.

What's Next?

Starting next month, the team of investigators will expand from 15 to over 200 members, increasing the capacity to monitor and investigate claims. The government will continue to review cases individually, with HMRC contacting families directly during investigations. There is potential for further expansion of this approach to other benefits, as the government seeks to claw back more money from fraudulent claims.