Child Benefit claimants could claim compensation from HMRC after payment delay

Those affected by the IT error can claim compensation payments from HMRC

More than half a million people could be entitled to claim compensation after a major HMRC IT error caused Child Benefit payments to be delayed.

Earlier this month, 577,000 people were not paid their Child Benefit on Monday, June 3. After hours of confusion, the tax office - which is in charge of running Child Benefit - confirmed that an IT error had caused a delay in around 30% of payments. The issue was resolved and families affected received their scheduled payment two days later on Wednesday, June 5.

However, some families complained the issue had caused further financial distress. Those affected took to X - formerly Twitter - to share that direct debit payments had bounced due to the money not being in their accounts, others were unable to top up their energy prepayment meters, and some fell into their overdrafts which meant they faced further charges.

HMRC set up a redress scheme for anyone who has incurred a "direct financial loss" because of the delayed payment. You will need to make a note of any costs incurred and then complain using the online complaints form on the Government's website. Examples of charges could include a payment for a bill bouncing due to no Child Benefit being in your account. When making a complaint you should include as much evidence as possible to support your case including screenshots.

However, on top of this, HMRC will also provide compensation payments of up to £50. Like with the redress scheme, HMRC will assess each complaint on a case-by-case basis. If you were found to have experienced distress due to the delay, you will be sent a payment of £50 - on top of the redress payments.

For example, if the delay made you fall into your overdraft and you incurred a charge, the redress scheme would cover the charge and if this meant you experienced distress - such as not being able to buy food - you could be awarded the £50 compensation.

Around 6.9million households claim Child Benefit, which are usually paid every four weeks on a Monday or Tuesday. You can be paid weekly if you are a single parent and claim Universal Credit. Currently, Child Benefit is worth £25.60 a week for an eldest or only child and £16.95 a week for any other children.

An HMRC spokesperson told the Mirror: “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.” The Mirror has approached HMRC for comment.