Improving the Collection and Transfer of Child Maintenance Payments: Public Consultation

Wednesday 8th May 2024 Written Statements

[The Secretary of State for Work and Pensions (Mel Stride)]

Today, the Government will publish a child maintenance consultation: improving the collection and transfer of maintenance payments.

Families play a fundamental role in the success of our society, so it is crucial that all types of families have their financial needs met. For some families that are separated, paying and receiving child maintenance payments can be the difference between a child living in poverty and having the opportunity of a hopeful future.

It is estimated receiving parents in separated families received £2.8 billion annually in child maintenance payments through both private and Child Maintenance Service arrangements between 2021 and 2023. These payments keep around 160,000 children out of poverty each year.

The Government want to go even further to ensure the Child Maintenance Service continues to support all parents for years to come. While it works well for many parents, there is evidence that suggests the direct pay service may not be working as intended, and from experience of delivering the service over the last decade we have identified three fundamental issues with direct pay that, should they be addressed, would improve the service and ensure more money is paid to parents.

First, direct pay was introduced to encourage collaboration and to act as a stepping stone towards a family-based arrangement. The Child Maintenance Service recognises this is not possible for all parents, but when it is appropriate and safe, a family-based arrangement has the potential to be better for children, families and the taxpayer. However, there is little evidence to suggest that the direct pay service is achieving this objective.

There is also an issue of hidden non-compliant cases on direct pay, despite the efforts of the Child Maintenance Service to encourage parents to report a breakdown in their arrangement as soon as possible. Delaying reporting missed payments can cause further delays in cases being moved to collect and pay which also results in arrears building up.

Lastly, direct pay is falling short in its support for victims and survivors of domestic abuse. This was particularly made apparent by discussion around the Child Support Collection (Domestic Abuse) Act, which received Royal Assent in June 2023. The Act, which began work towards Dr Samantha Callan’s independent review recommendation to prevent the use of direct pay as a form of coercion and control by perpetrators, brought forward legislation to allow cases to move from direct pay to collect and pay when there is evidence of domestic abuse.

In response to these issues, and as part of achieving the objectives of the Child Support Collection (Domestic Abuse) Act, we want to explore wide-ranging reforms to child maintenance service types, including removing the direct pay service and managing all Child Maintenance Service cases in one streamlined service. This will allow the Child Maintenance Service to tackle non-compliance faster and, when necessary, take enforcement action much more quickly.

In addition, it will allow the Child Maintenance Service to identify cases that may be suitable for a family-based arrangement and provide improved support to help ease the process of setting up private family-based arrangements.

Furthermore, the Child Maintenance Service will provide more appropriate support for victims and survivors of domestic abuse. This will build on the work towards full implementation of Dr Callan’s main independent review recommendation and will go further than the measures set out in the Child Support Collection (Domestic Abuse) Act by providing the same level of protection for all parents without requiring them to provide evidence of abuse.

This consultation is a positive step towards creating a better Child Maintenance Service that supports, further protects, and improves the lives of separated families and children across the United Kingdom.

I will place a copy of the consultation document in the House Library.

[HCWS442]