Child Benefit payment delays: Are you due compensation from HMRC?

Over half a million families could be entitled to financial redress and compensation worth up to £100 after an IT error caused a delay in Child Benefit payments.

On 3rd June, around 30% of the scheduled child benefit payments were not processed correctly, causing a two-day delay to payments, impacting a total of 577,000 families. The delay meant that some families were charged for going into their overdrafts, many were unable to pay for food and others reported issues with direct debit payments being rejected.

Are you due compensation from HMRC?

If you are one of the families that was impacted by the delayed child benefit payment then you could be entitled to financial redress for any losses you have incurred. You may also be entitled to compensation if you experienced further distress.

HMRC has confirmed that the amount you will receive is based on the costs incurred and the impact on the customer. We explain the difference between financial redress and compensation below. It is worth noting that you could be entitled to both.

Financial redress

You may be entitled to up to £50 in financial redress from HMRC if you can prove that the delayed child benefit payment resulted in 'direct financial loss'.

Example: The delayed child benefit payment meant that you went into an unplanned overdraft, resulting in a charge of £25. In this instance you may be entitled to financial redress from HMRC, resulting in a payment of £25 to cover the charge.

Compensation

You may be entitled to additional compensation of up to £50 if you can prove that you experienced distress as a direct result of the delayed child benefit payment. The compensation amount will be assessed on a case-by-case basis.

Example: The delayed child benefit payment meant that you were unable to buy food for your family or top up your electricity meter.

How do I claim compensation from HMRC?

You would only have grounds for financial redress and/or compensation if you experienced financial loss or distress as a direct result of the delayed child benefit payment. You can call HMRC to complain on 0300 200 310 and lines are open from Monday to Friday, 8am to 6pm (Closed weekends and bank holidays).

Alternatively, you can complete a complaints form online, via the HMRC Website. If you have a Government Gateway account then HMRC has advised that complaints are likely to be handled much quicker via the online form.

When making your complaint, you'll need to provide details of any losses you have incurred. Make sure you provide as many details as possible, including evidence, such as copies of statements or screenshots if you have them.