Thousands of people have been urged to keep an eye on their bank account for an unexpected bonus payment from HMRC.

Compensation is being sent to thousands of benefit recipients following a delay in Child Benefit payments earlier this month.

HMRC has begun issuing compensation payments worth up to £50 by those impacted by the error.

Andy Wood, a tax expert, said: “The up to £50 'bonus' payments serve as a gesture of goodwill from HMRC, recognising the processing error. Affected individuals must claim their entitlement promptly to receive timely payment.

“HMRC has confirmed that it is providing additional funds to individuals who experienced ‘distress’ or incurred additional charges due to the delayed payments.

“In early June, more than five hundred thousand Child Benefit payments were not delivered punctually.

"The delay in Child Benefit payments was attributed to a processing error within HMRC's systems. Such technical glitches are unfortunate but not uncommon in large-scale government operations, leading to temporary disruptions in service delivery."

Andy also spoke of the implication for pensioners, saying: “For pensioners relying on timely benefit disbursements, delays can disrupt financial planning and stability.

“The compensation initiative by HMRC is reassuring, aiming to rectify any financial strain caused and maintain support integrity for vulnerable groups.

"Pensioners affected by delayed payments should promptly get in touch with HMRC to secure compensation. Ensuring they receive rightful redress is crucial in upholding welfare commitments and safeguarding pensioners' financial well-being."

At the time of the error earlier this month, a HMRC spokesman said: "We are very sorry that some customers did not receive their scheduled child benefit payments as expected and we understand the concern and difficulty this may have caused.

"We have now fixed the problem and are putting measures in place to prevent this from happening again.

"Affected customers will now receive their payments on Wednesday morning (June 5).

"Anyone who has incurred a direct financial loss because of the delayed payment can apply for redress by completing our online complaints form."

What is Child Benefit?

Families with one child receive £1,331 per year, and they can also receive £881 per year for each additional child they have after that.

There is no limit to how many children families can claim Child Benefits for.

Parents will receive £102.40 every 4 weeks (£25.60 per week) for the first or only child and £67.80 every 4 weeks (£16.95 per week) for each additional child.

Families with ongoing claims do not need to contact HMRC, as the increased benefit payment will continue to be paid directly into their bank accounts.

Anyone who needs to update their personal details, such as a change of bank account or address, can do so using the HMRC app or online at GOV.UK.

HMRC is encouraging any new parents to make a claim as soon as possible, with their first payment capable of being made in as little as three days.

Parents of newborns can also backdate their Child Benefit claims by up to three months.

Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “The increase in Child Benefit rates for existing claimants is automatic and families do not need to contact us. New claimants should apply online or using HMRC’s app. Search ‘child benefit’ on GOV.UK for more information.”