Child Maintenance Service

Debate between Alison McGovern and Paul Maynard

Tuesday 27th February 2024 Westminster Hall

[Paul Maynard]

I have made a lot of comments today about the drumbeat of ongoing changes and how we implement some of the private Members’ Bills that have gone through, for example. I hear what the right hon. Gentleman says about the progress and the drumbeat, but I am not sufficiently close to the actual data and the information that he seeks. I will ensure that he is written to, along with other Members present today. I am sure that will be discussed when he meets Viscount Younger.

[Alison McGovern]

While I am pleased to have cheered the Minister up, I can assure him that I will certainly be giving the Government down the banks yet again. But that exact point is why I thought it would be helpful if we could have some sort of regular update out of this debate. Can the Minister feed that back to the Secretary of State, if necessary? I am sure it can be discussed whether that is a statement that the Government place in the Library or a regular update to the Select Committee, but for those reasons, Members need to know what is happening with the different streams of improvement to the service.

[Paul Maynard]

I have already heard that point, and in my preparation for the debate, I noted the complexity and the number of workstreams going on in this area. I will certainly take that point back to the Department. Another theme that we have heard today is the importance of not just having an enforcement process but having an efficient and effective one. That is done partly by deciding what actions are appropriate on a case-by-case basis and using the existing powers that have the greatest chance of ensuring that parents meet their obligations to pay for their children.

The CMS has made a number of improvements to processes, for example by making better use of deduction from earnings orders so that they can be set up faster. The CMS has also brought forward the point at which deductions from bank accounts are made, which not only has increased the volume of deductions from bank accounts but means getting money to children faster. Working alongside His Majesty’s Courts and Tribunals Service, the Child Maintenance Service has improved court processing times by introducing virtual court presenting and the electronic exchange of documentation.

Following the Child Support (Enforcement) Act 2023, the Government propose to bring into force a legislative change to accelerate the enforcement process. The change will introduce a simpler administrative process to obtain a liability order against those paying parents who actively avoid their responsibilities. That will enable the CMS to take faster enforcement action, affecting at least 10,000 cases a year. They will also publish a consultation shortly on how the Child Maintenance Service collects and transfers payments to support survivors of domestic abuse, following the Child Support Collection (Domestic Abuse) Act 2023 receiving Royal Assent.

In addition, operating a scheme where parents are not paying their maintenance liability and where the Government guarantee child maintenance payments is not the intent of the Child Maintenance Service’s policy, which is the philosophical issue that we are stressing. The role of the CMS is to encourage parents to take financial responsibility for their children. The scheme is designed to encourage parents to agree their own family-based arrangements wherever possible, and that tends to be in the best interests of children. The CMS must always work in the best interests of children. The statutory scheme exists as a fall-back if parents are unable to reach those voluntary arrangements. The Government do not believe that the state covering the shortfall of unpaid maintenance is the right way to target additional funding appropriately, given that there is no means test for receiving parents.

We are also bringing the Child Maintenance Service into the modern age, having made a number of improvements to ensure that it delivers to the highest standard with a more digital customer focus. In order to get help arranging child maintenance on the digital service, which is available 24 hours a day, seven days a week, we are making it more accessible for parents to decide what type of arrangement is most suitable for them and to make an application online. Those improvements have already seen new applications rise by 13% in the year to September 2023, and I look forward to seeing further progress in the future. That is a welcome increase that we expect to continue with the removal of the £20 application fee. The upgraded online service allows customers to access and maintain their CMS cases themselves. Twenty-six different changes of circumstances can now be reported online. The advantage of digital systems means the service is, as I have said, available 24 hours a day. Many customer requests are now fully automated, so it is much quicker for parents to manage their own arrangements.

We have also, as I have said, improved the speeding up of enforcement processes. In the quarter ending September 2023, around £23.5 million—more than half—of the child maintenance collected through collect and pay was from parents who had a deduction from earnings order in place at the end of the quarter. Those improvements deliver a modern and efficient service for customers while enabling caseworkers to focus on parents who have more complex issues.

I will try to deal with specific issues that were raised. I might not succeed in three minutes, but I will at least try. I can confirm that the £20 fee has been removed as of yesterday, along with the eradication of debts of £7 and under, which we achieved through delegated legislation—the draft Child Support (Management of Payments and Arrears and Fees) (Amendment) Regulations 2023.

I was equally as concerned as the right hon. Member for East Ham to hear of the case of Rachel Parkin regarding the continuity of the support that she received from that single nominated caseworker. The Department will write to the Chair of the Select Committee to make sure that we properly understand that case and what can be done about it. There will be more to come on that point.

I was asked for updates on the progress of various Acts. It might be unhelpful to confirm that consultations are ongoing, because we want the measures to be proportionate, robust and targeted appropriately. It is never easy to rush consultations through. We are often criticised should we rush a consultation. Equally, I understand, not least from when I was a Back Bencher, that when final reports have been issued by the Government, people like to see action, so that point has been heard. I do not wish to pre-empt any Government decisions on curfews—those are not mine to take—nor would I wish to pre-empt the meeting of the former Secretary of State, my right hon. Friend the Member for Suffolk Coastal (Dr Coffey), with Viscount Younger when that will be fully discussed, I have no doubt. I, like her, await the outcome with great interest on what is discussed.

I have been told I now have one minute left, not three minutes. I would love to talk about fraud, but one point I have observed from my own casework is that very often people know that something is not right. They have suspicions that fraud might be occurring, but when they engage with the CMS it is not always taken forward. One thing that we hope to be able to do by the end of this month, in order to avoid vexatious frauds, is to provide to those making claims an illustrative list of evidence that the financial investigations unit will require to take an investigation forward. That then avoids the disappointment when someone thinks that something is going on, but they cannot prove it. I think that will help the individual stuck in that situation and perhaps also our caseworkers who try to guide people who ring our offices on how to go about it.

Anything that I have not covered I will cover in a letter to Members. On that note, I will sit down.

Social Security

Debate between Alison McGovern and Paul Maynard

Wednesday 31st January 2024 Commons Chamber

[Paul Maynard]

I thank everyone who has participated in this debate. I am very disappointed in the hon. Member for Glasgow East (David Linden), who seems to think that I do not write my own material. He should know that my private office staff are sitting in trepidation, as I write across every speech they give me in blue and red ink. They never know what will emerge from my mouth. I can assure him that it is all my own work, and he can criticise it all the more for that reason.

I am also disappointed that people think this order is just a technical necessity. I do not call £19 billion of Government spending a technical necessity. It is one of the largest amounts of extra spending in which the Government engage in any particular year, and it will make a considerable difference to the lives of people across the country.

[Alison McGovern]

Do you want a round of applause?

[Paul Maynard]

No, I certainly do not, but I would want to think that those of us in this Chamber did not dismiss the order as a technical measure.

My hon. Friend the Member for Amber Valley (Nigel Mills) repeated a point that I think he made this time last year—I also made this point when I was sitting in the far corner of the Chamber as a Back Bencher—on the timely application of these measures and whether we ought to make them more promptly after inflation is measured. As a member of the Work and Pensions Committee, he will know that this issue is often discussed, with the discussion often revolving around the robustness of universal credit’s IT system compared with the IT systems for legacy benefits. I am told the hopefully promising news that state pension benefits, in particular, will be moving to a more modern IT platform by 2025, followed by disability benefits, contributory benefits and carer’s allowance, so there is a pathway towards getting all our benefits on to modern IT systems that are more agile in responding to economic situations. I hear his point, and work is under way.

The hon. Members for Glasgow East and for Oldham East and Saddleworth (Debbie Abrahams) both talked about the Joseph Rowntree Foundation, and I am a great admirer of its work. As a Back Bencher, I sat on many Zoom meetings and Teams meetings to listen to its briefings. The hon. Member for North East Fife (Wendy Chamberlain) and I have discussed the essentials guarantee many times, so I take a personal interest in what the Joseph Rowntree Foundation says. Since the period covered by its report, the Government have provided over £104 billion of extra support to help households with the high cost of living. Although I understand that the Joseph Rowntree Foundation will stick to the broad themes of its argument, we need to recognise that Government support has moved on.

I do not want to pre-empt the meeting of the hon. Member for North East Fife with the Chief Secretary to the Treasury, which I hope will bring better news than I am able to deliver from the Dispatch Box. I have heard about her letter. My favourite episode of “Fawlty Towers” is “Communication Problems”, which is a comic classic, and the tale she tells is such an example. I am sure my officials have made a note, and we will hopefully follow up with a clarifying letter.

Finally, I turn to the right hon. Member for Islington North (Jeremy Corbyn). Not being the Minister in charge of local housing allowance, I am a little cautious about giving him a more definitive answer at this stage—[Interruption.] Nothing annoys me more than when other Ministers intrude on my brief without telling me, so it is a courtesy to them, nothing more.

The draft Social Security Benefits Up-rating Order will increase the state pension by 8.5%, in line with the rise in average earnings, and it will increase most other benefit rates by 6.7%, in line with the rise in consumer prices. These changes commit the Government to increased expenditure of £19 billion in 2024-25. They maintain the triple lock, protect pensioners on the lowest incomes and support those in the labour market, while maintaining work incentives and protecting the value of benefits for those who cannot work and who have additional disability needs.

I commend this statutory instrument to the House.

Question put and agreed to.

Resolved,

That the draft Social Security Benefits Up-rating Order 2024, which was laid before this House on 15 January, be approved.

Draft Child Support (Management of Payments and arrears and fees) (Amendment) Regulations 2023

Debate between Alison McGovern and Paul Maynard

Tuesday 16th January 2024 General Committees

[Paul Maynard]

I thank both the Front-Bench spokesmen for their support, and for their helpful summary of the questions, which gave me that bit longer to make sure that all my notes for answering them were in the right order. First, the hon. Member for Wirral South mentioned application numbers. The main thing that the Government have been doing is trying to use a more digital service called “get help arranging child maintenance”, which has been operational since 2022 and has seen the number of applications increase. That shows that we can we can create a pathway, so that people going through a breakdown in a relationship can seek out the right support.

The hon. Lady mentioned research. It helpfully says in my notes that research has shown that those on the lowest incomes are least likely to have an effective arrangement. It does not give me much more than that, I am afraid, so I will commit to writing to her on that point. I will try not to have to write to her on any other point, but I am giving the best answers I can.

The hon. Lady rightly raised the issue of domestic abuse. After we have removed the fee, we will continue to capture information about parents who need additional support, including as a consequence of domestic abuse, and ensure that they are able to safely use the service, because there are many safety issues around how money is transferred. We will move away from collecting the figures and towards using externally reported quarterly stats, but we will look at how best to capture the information in a usable format in the future.

The hon. Lady may be aware that CMS has a domestic abuse plan, which outlines key steps for caseworkers to follow to ensure that victims of domestic abuse are supported. That includes advice on contacting the police, for example, if the parent is in immediate danger. CMS can also act as an intermediary in direct pay cases, and provide advice on how to set up bank accounts with a centralised sort code to limit the risk of a parent’s location being traced. We also reviewed our domestic abuse training, and commenced using a single named caseworker to ensure that victims of DA are appropriately supported, so I think we are doing an awful lot on abuse in the home.

[Alison McGovern]

Will the Minister give way?

[Paul Maynard]

I will, and I hope that I can answer the question this time!

--- Later in debate ---

[Alison McGovern]

Could I ask the Minister to be clear on the statistics that will be published about victims of domestic abuse? I understand his point about training and the pathway that will be there, but from the point of view of public transparency, it is important that we can see how many users of the service are victims of domestic abuse, and that the data is publicly reported. I say that simply because, as he will understand, abuse has so often been completely hidden. Many people would be quite shocked to find out how many people are victims of financial abuse, so it is important that that is reported publicly, not just understood within the system. Could the Minister confirm that the Government will still report publicly how many users of CMS are victims of domestic abuse?

[Paul Maynard]

I take the hon. Lady’s point. It says in my brief that CMS will look at how it captures that information. I will ensure that that point is passed on to Viscount Younger in the other place when he is looking at whether the proposals are adequate. No decision has yet been made. Nothing has been ruled out; nothing has been ruled in. I accept her point, and like her, I am a champion of transparency wherever possible, so I will ensure that Viscount Younger writes to the hon. Lady.

On the points that were made about collect and pay and the calculation more generally, we are consulting on how we can improve both those things. I believe that the consultation on collect and pay is yet to start, but we announced in October that we would be consulting on how to collect and transfer maintenance payments. I understand that the consultation on the calculation side of things will also be launched shortly.

Finally, there is a very valid point, which I often hear in my own constituency, about cases involving vast sums that parents are unable to access for one reason or another. Where parents have certain categories of taxable income that are not captured by a standard child maintenance calculation, they can make a request to CMS to have the calculation varied. We have consulted on proposals to include more types of taxable income held by His Majesty’s Revenue and Customs in the standard maintenance calculation. The proposals were accepted, and legislation will be brought forward when parliamentary time allows. Cases involving complex income can be investigated by the financial investigation unit, which is a specialist team. Where there is evidence of fraud, the FIU will seek to prosecute, or forward the case to HMRC for action.

In summary, as everyone has agreed, the regulations mark the beginning of a more comprehensive legislative journey towards improving the Child Maintenance Service and represent a clear road map to action. I am committed to working with Viscount Younger to drive these plans forward in order to deliver a fairer, faster service for more families, especially the poorest. I thank everyone for attending the Committee.

Question put and agreed to.