(3 days, 2 hours ago)
Grand Committee
Baroness Pidgeon (LD)
My Lords, I wish to speak about the Public Services Committee’s report, Reforming the Child Maintenance Service. This was the first Select Committee of which I have been a part since I joined the House. I have to say, in the end, I came away frustrated: frustrated for the children who are living in poverty because this support system is simply failing them; frustrated for both groups of parents, whose genuine concerns on both sides we heard; frustrated at the limited response from the department; and frustrated that, although we have shone a light on this area and made some constructive recommendations, it will clearly remain in the “too hard to fix” pile and little will change at the pace that is needed. However, I thank the noble Baroness, Lady Morris of Yardley, for her excellent chairmanship and leadership throughout this investigation. I also thank noble Lords for their excellent contributions today; we have heard detailed analysis of many of the issues that we explored and grappled with in this complex area.
Child maintenance is not an abstract administrative matter. It is about whether children receive the financial support to which they are entitled. The system must reflect modern-day living and the complexity of today’s family arrangements; it must be up to date. As the noble Baroness, Lady Deech, pointed out, child maintenance is not optional but a moral and legal responsibility.
The committee’s central message is clear: the current system is not working well enough for too many families. Too many parents do not engage with the service at all. Too many arrangements break down. Too many cases enter the system only after problems have already become entrenched and, at times, the experience of using the service is confusing, slow and a hindrance rather than a help.
The committee’s recommendations focus on making the system fairer and more workable by, for example, reviewing how a child’s costs are split between both parents; calling for real-time data-sharing with HMRC so that calculations are based on current income and assets, rather than on something from the distant past; considering the receiving parent’s income and assets; examining whether the current formula may discourage work; and reconsidering changes to direct pay. We made 41 straightforward recommendations that could make a real difference with accurate, timely and simple communications throughout. My noble friend Lord Shipley’s analysis of the telephone service’s poor performance highlights a simple, basic problem with the service that could easily be improved.
Too often, policy in this area is presented as though there was a simple choice between supporting the receiving parent and protecting the paying parent. However, having taken part in round tables with both sets of parents, it is clear to me that, in reality, the system must do both. Children need support, but parents also need arrangements that are realistic, enforceable and trusted. A system that ignores affordability is never going to secure compliance. I found both the round tables that were hosted by some of our staff really emotional. We heard real-life examples of where people had even considered taking their own life because of the financial pressures they were under as they tried to put food on the table and provide for their children. It was heartbreaking. No service is in a good position when you see that as a reality.
A key recommendation is our call for better support for families. As we have heard today, we called for an increase in access to mediation for separating parents—only where appropriate and with the right safeguards, of course—which could increase the effectiveness of child maintenance arrangements. We also recommended improving access to early interventions relating to child maintenance, including information and support; and that these should be part of, or delivered through, services such as family hubs, to which the noble Lord, Lord Farmer, referred.
As the noble Baroness, Lady Coffey, highlighted, the Government’s response is a missed opportunity. It appears to accept that some reform is necessary, but little is going to change quickly. In my opinion, that does not fit with this Government’s absolutely right aspiration to keep children out of poverty. Families are living with the consequences of this system every day. As I say, this issue is not abstract. It is about rent. It is about food. It is about school uniforms. It is about basic home life.
As we stated in our report, over 100,000 children are missing out on maintenance payments every quarter. Just under half of children in families in the collect and pay arrangements, where the Government can take enforcement action, receive no maintenance. Something has to change. This cannot stay in the too-difficult pile any longer or be kicked down the road further, to build on the words of the noble Lord, Lord Farmer. I hope the Minister will take on board the strength of concern in our report, and from Members across the House today, and grasp this issue. I know she cares about it, because she was very passionate when she came before the committee. Children and families cannot be left in this situation any longer. I look forward to the Minister’s response.