The head of Britain's tax authority has emphasized the importance of "kindness" in leadership while facing parliamentary scrutiny over a controversial anti-fraud operation that stopped Child Benefit payments for thousands of families without warning.
John-Paul Marks, first permanent secretary and chief executive at HM Revenue and Customs (HMRC), appeared before the Treasury Committee on Tuesday to address the organization's operations. His testimony comes as the department faces criticism for an anti-fraud drive that suspended almost 24,000 Child Benefit accounts between July and October, with many families later confirmed as legitimate claimants.
The controversial crackdown
HMRC relied on incomplete Home Office travel data to flag potential fraud cases, stopping payments when families had no record of returning from overseas trips. The approach was rolled out nationally despite a pilot scheme showing the travel data was wrong in 46% of cases.
By November 30, nearly 15,000 families were confirmed as legitimate claimants. Just 1,019 cases – only 4.3% – involved incorrect claims. Thousands of cases remain unresolved.
Internal documents revealed HMRC had deemed the risk of harm "tolerable" and the chance of serious harm "remote," even while aware of potential errors. During the national rollout, the department removed checks against PAYE records to "streamline" the process.
Leadership under pressure
Marks told the hearing that leading with kindness was crucial in challenging environments. «So, yes, leading with kindness is a thing that we thought about a lot in the Scottish Government. I think it's important, particularly in an environment that is contentious, it's challenging, it's moving at pace,» he said.
He emphasized HMRC's commitment to its charter. «I think we care deeply about our charter, because obviously we are required to operate according to our charter under the law, and quite right too. There's important standards in there around fairness, around keeping customer data secure. We want to live up to that standard,» Marks said.
Digital transformation and customer service
Marks reported progress on HMRC's digital transformation, with around 80% of customer interactions now digital, up from 75% last year. The organization aims for 90% by 2030.
The HMRC app has attracted 7.3 million unique users in 2025, up by 2.1 million compared with 2024. Marks stated the department has no plans to shut phonelines to force customers online: «We do not have any plans to shut any phonelines down to drive the channel shift.»
HMRC is working with around 11 voluntary sector partners across the UK to provide additional support for vulnerable customers.
Criticism and changed approach
Mariano delli Santi, legal and policy officer at Open Rights Group, told the Guardian the department's data protection impact assessment was poorly conducted: «It was obvious that the DPIA was conducted poorly … The purpose of a consultation within a DPIA is not to inform but to gather feedback and identify potential risks.»
Affected families reported severe stress and weeks spent gathering evidence. Cases included parents who had travelled for funerals, a woman collecting her deceased husband's remains, and a family whose holiday was abandoned due to a child's epileptic seizure at the airport.
The Home Office had advised that travel data should be interpreted as "an intention to travel and not as proof of travel," according to documents.
An HMRC spokesperson said the department has changed its approach: «We then conduct our own checks and open inquiries where necessary, giving customers at least one month to provide evidence, before making any decisions on eligibility.»
Last year, the Treasury Committee warned HMRC appeared to be "cavalier with people's finances."
Note: This article was created with Artificial Intelligence (AI).
