HMRC has paused its crackdown on child benefit overpayments after discovering a major data error. Around 23,500 families were wrongly flagged as owing money due to incorrect income data. The error stemmed from mismatched information between HMRC and the Department for Work and Pensions systems. HMRC has halted recovery actions and apologised to affected families. A review is underway to correct the data and ensure accurate calculations.
