HM Revenue & Customs (HMRC) is reviewing striped child benefit claim from about 23,500 claimants after it used travel data to conclude they had left the country permanently.
Normally the benefit runs out after eight weeks living outside the UK, but many people affected complained that (HMRC) had stopped their money after they went on holiday for just a short period of time.
HMRC has apologised for any errors and says anyone who thinks their benefits have been stopped incorrectly should contact them.
A government spokesperson said: “We’re very sorry to those whose payments have been suspended incorrectly.
“We have taken immediate action to update the process, giving customers one month to respond before payments are suspended. We remain committed to protecting taxpayers’ money and are confident that the majority of suspensions are accurate.”
In September, the government began a crackdown on child benefit fraud which it believes could save £350m over five years.
The new system allows HMRC records to be compared with Home Office international travel data, and the tax authority had used this data to stop payments to thousands of families.
But it is now reviewing all of the cases following a growing number of complaints from people affected who said they had been on holiday, and had returned to the UK after a short time.
HMRC said it would be reviewing all past cases “using PAYE data and where continued UK employment is found, will be reinstating payments and making any back payments necessary”.