HMRC to redress up to £50 for Child Benefit for distress caused by "processing error"

Thousands of Child Benefit recipients have been troubled by delayed payments due to a "processing error" at HM Revenue and Customs (HMRC), impacting roughly 577,000 individuals who've found themselves short on funds.

Thankfully, there's still an opportunity to recoup the missing amount, but it may necessitate filing a grievance with HMRC initially. MoneySavingExpert has highlighted that HMRC is committed to compensating those hit by this inconvenience with up to £50 if they experienced distress due to the delay.

HMRC will judge each situation based on the claimant's vulnerability, the extent of distress caused by the error, and the duration for which the issue was unresolved. Additionally, HMRC has voiced its readiness to reimburse any fees incurred as a consequence of the fault, including charges from unauthorised overdrafts or bounced direct debits.

Presently, no cut-off date for complaints exists, but HMRC is encouraging impacted parties to make contact sooner rather than later.

This debacle was thrown into the spotlight after personal finance expert Martin Lewis conducted a survey via social media, wherein respondents indicated that HMRC had reached out regarding indemnification, requesting proof to process the compensation, reports the Manchester Evening News.

Around three-quarters of the 8,000 people who participated in a survey on X have indicated they didn't receive their child benefit, though it's unclear to what extent. A spokesperson from HMRC stated: "We’re very sorry that some customers did not receive their scheduled Child Benefit payments as expected and understand the concern and difficulty caused.

"We fixed the problem and anyone who incurred a direct financial loss because of the delayed payment can apply for redress by completing our online complaints form.”

How to make a complaint to HMRC over missing Child Benefit

Online

Filing a complaint with HMRC is straightforward using their online form at gov.uk remember to have your Government Gateway ID login ready.

1. Press 'make a new complaint'.

2. Explain what your complaint is about

3. Press 'yes' when asked if you know what HMRC can do to compensate you

4. Press 'yes' where it asks if you need extra help

5. Give your contact details

6. Read over everything you've done then confirm it is correct by pressing 'save and continue'

Follow the steps specified and typically, you should receive a response within 15 working days.

Mobile phone

To get in touch with HMRC directly, call them on 0300 200 3100 between 8am and 5pm, Monday to Friday. Keep in mind that resolving issues over the phone might take longer.

Post

For postal complaints, clearly mark 'complaint' on the top of the envelope and send it to:

HM Revenue and Customs — Child Benefit Office

PO Box 1
Newcastle upon Tyne
NE88 1AA
United Kingdom

Your letter must also include the following:

• your National Insurance number

• your full name, address and telephone number

• details of what happened and when

• any reference numbers you’ve been given

• how you’d like your complaint settled

• the word ‘complaint’ at the top of your letter