Child Tax Credit: Overseas Residence

Jim Cousins
To ask the Chancellor of the Exchequer (1) in respect of how many children ordinarily resident outside the UK payments of child tax credit are being made; and what checks on the residence of children are made before payment of such tax credits;

(2) what his policy is on obtaining evidence of a child's country of residence in relation to payment of child benefit; and what information he has on the number of children receiving child benefit who are not ordinarily resident in the UK.

Mr. Timms
[holding answer 15 October 2009]: Information about the payment of child tax credit to families with children resident outside the UK is only available at disproportionate cost. Data is available on child benefit awards to EEA nationals in respect of children resident in another member state and I refer the hon. Member to the answer given to my hon. Friend the Member for Bassetlaw (John Mann) on 13 October 2009, Official Report, column 787W.

Child benefit and child tax credit is intended to help families in the UK. Generally, therefore, it is not payable in respect of children resident outside the UK. However, under EC coordinating regulations on social security for migrant workers and their families, which the UK has administered since it joined the European Economic Community in 1973, a European Economic Area (EEA) national working in one member state can claim family benefits (child tax credit together with child benefit) in that member state in respect of members of their family resident in other member states.

All claims for family benefits are subject to a wide range of checks throughout the life of each claim. Where claims for family benefits are made under the EC Regulations on behalf of children living in another member state, HMRC carry out further checks to verify the information provided by the customer to prevent erroneous or fraudulent claims. These checks include requiring the relevant authorities in the member state where the worker's family resides to confirm the composition of the family and to find out whether there are any family benefits in payment in that other member state.