Child Maintenance UK provides unofficial advice on child support for seperated parents, who are paying child maintenance, or receiving child maintenance through a child support arrangement, managed by the Child Maintenance Service.
2023/12/20
How to Report Child Benefit Fraud
How To Report Child Benefit Fraud: A Comprehensive Guide
Introduction
Child Benefit fraud is a serious issue in the UK, with some parents manipulating the system to also receive more money from the Child Maintenance Service (CMS). This guide explains how to report Child Benefit fraud, provides key legal information, and includes real-life case examples to illustrate the impact of fraud.
Understanding Child Benefit and CMS
The Child Maintenance Service (CMS) ensures that child support payments continue as long as the child is in education up to Level 3 (equivalent to A levels). The CMS heavily relies on Child Benefit records to determine whether a child is still in education.
To qualify, the education must be a recognized qualification—it cannot be work experience, a weekend course, or a paid apprenticeship.
However, some parents exploit this system by failing to cancel Child Benefit when their child leaves education early. This means they continue to receive both Child Benefit and child maintenance payments unfairly. Since the CMS does not verify educational status directly with colleges, incorrect Child Benefit records can lead to wrongful CMS charges.
This is not a victimless crime—it has a financial impact on the paying parent.
Key Dates for Child Benefit Termination
When a child leaves education, Child Benefit payments usually stop at the next terminal date:
End of February
End of May
End of August
End of November
For example:
If a child leaves college in December, Child Benefit continues until the end of February.
If a child finishes a two-year college course in June, Child Benefit stops on 31st August.
If a child is on a paid apprenticeship, they do not qualify for CMS or Child Benefit.
How to Report Child Benefit Fraud
If you suspect Child Benefit fraud, you can report it in the following ways:
Call the HMRC Fraud Hotline at 0800 788 887. This is a confidential service where you can report suspected fraud.
3. Report by Post
Send a written report to:
HM Revenue and Customs - Child Benefit Office
PO Box 1
Newcastle Upon Tyne
NE88 1AA
United Kingdom
Case Examples
Case 1: CMS Overpayment Due to Fraudulent Child Benefit Claim
John had been paying child maintenance for his 18-year-old son, whom he believed was still in college. However, through contacts at the school, he discovered that his son had dropped out six months earlier. The receiving parent failed to cancel Child Benefit, leading to continued CMS payments.
John reported the suspected fraud to HMRC and provided supporting evidence. HMRC investigated, found the claim fraudulent, and ordered repayment of wrongly claimed Child Benefit. CMS then closed his case and refunded overpaid maintenance.
Case 2: Child Left Education, but Child Benefit Continued
Sarah's daughter left education in December, but the receiving parent continued to claim Child Benefit until August. Sarah reported the fraud to HMRC, who confirmed the ineligibility of payments. The receiving parent was required to repay the overclaimed Child Benefit, and Sarah's CMS payments stopped sooner than initially expected.
Frequently Asked Questions (FAQ)
Q: Will the Child Maintenance Service tell me when my child leaves college?
A: No, CMS will only inform you that the case is closed when Child Benefit stops. CMS does not have direct access to college attendance records.
Q: My child finished school in June—why is my CMS still being deducted?
A: Child Benefit usually ends on August 31st. If your child left in June, the receiving parent is entitled to Child Benefit until August, which keeps CMS active until then.
Q: The CMS case has closed, but I still have payments on my schedule. Why?
A: This likely means you are paying in arrears. CMS calculates arrears separately and will continue to collect them even after the case is closed.
Child Benefit fraud is a serious issue that directly impacts paying parents by wrongfully extending CMS payments. Reporting fraudulent claims can prevent financial losses and hold the responsible party accountable. If you suspect fraud, report it immediately via phone, online form, or post.
Persistence and knowledge of the system can help stop fraudulent claims and ensure fair payments.
This video explains further:
Conclusion:
Reporting Child Benefit fraud is essential to ensure fairness and integrity in the system. By understanding how the CMS and Child Benefit records work, and knowing the correct channels to report fraud, you can help prevent unjust payments and support the proper use of public funds.
Once the case is closed, even after a refund, you may still owe some arrears.
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