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Child Support (Enforcement) Bill Debate
Full Debate: Read Full DebateBaroness Bottomley of Nettlestone
Main Page: Baroness Bottomley of Nettlestone (Conservative - Life peer)Department Debates - View all Baroness Bottomley of Nettlestone's debates with the Department for Work and Pensions
(1 year, 7 months ago)
Lords ChamberMy Lords, what a formidable speech. I felt some sympathy for the Minister, having the previous Minister literally breathing down his neck. I think we know what this bodes for the future. I start with very warm congratulations to my noble friend Lady Redfern on the sensitive and thoughtful way in which she introduced the Bill. We should also thank Siobhan Baillie, the MP for Stroud, who has done a lot of work on it in another place.
We have heard a wonderful, magnificent example of a Minister who has become obsessed with her subject, which I completely understand. We know that, with my formidable noble friend Lady Stedman-Scott, she will not let this subject go; she will be making sure that this goes through. She was a Minister who, like many, did not govern by press notice but by heavy lifting, getting into the detail and seeing what really works. It is easy in government to think that a press notice is an implementation plan. That is not the case. Making something happen and making something change takes far more detail.
This is the most gripping, intractable and difficult subject. I go back as far as the Finer report, commissioned by Barbara Castle in the 1970s—a Labour report, but Barbara Castle did not feel that she could quite swallow the recommendations. I feel that I must share with the House the comments of Margaret Thatcher—another force, like my noble friend—on the Child Support Agency in 1990. I would like the House to discuss where we differ from these objectives:
“We will set up a new child support agency … The whole process will be easier, more consistent and fairer. Our aim is to give the lone parent back her morale and her confidence. Then she will be able the better to use and develop her own abilities for the benefit of her children and herself”.
Those words are slightly quaintly expressed, but we have been struggling over the decades—both Governments—as to how we can make this work better.
I have long been committed to issues that affect children and families. I started work for the noble Lord, Lord Field, at the Child Poverty Action Group, earning £12 a week. That work was particularly about the budgeting behaviour of families at or below the poverty line, on social security benefits. Many of them earned in their poverty; there were lots of different mechanisms. The key lesson that I learned from that is that poverty is debilitating and difficult in many ways, but that unpredictable income is almost worse. You can manage on a low income if you can be confident of the amount that will come through. It is much easier to plan, even on a meagre budget, if the income is consistent. Being unable to rely on a regular source of income creates acute tension, unhappiness and resentment. That is why it is critical that we try to make the maintenance payments reliable, regular and not a source of endless anxiety and unhappiness. It is a reason why I have long been a supporter of child benefit; it is the one benefit that women can rely on—and it usually is the women.
I also oversaw the implementation of the iconic Children Act 1989, steered through this House by the former Lord Chancellor Lord Mackay of Clashfern. Much of the legal work was done by the noble and learned Baroness, Lady Hale. The purpose was to safeguard and promote the interests of children; their interests should be paramount. Lord Mackay used to say that a “natural adjunct” to the Children Act was the Child Support Act. The tension has been to try to make the two Acts, the financial mechanisms and care mechanisms, work in parallel. As all are agreed, we have not reached the destination, but it is still the right place to aim for.
We saw how the Child Support Agency made way for the Child Maintenance Service. It is estimated that there are 2.3 million separated families in Great Britain, with 3.6 million children in those families, and that 60% of separated families have child maintenance payments. Parents in separated families receive approximately £2.4 billion a year in child maintenance payments; we are aware that these are essential to those families’ well-being and financial security.
Children are expensive; children are demanding. They want what their peers have. Parents want to give their children the best they can. How well I remember when I worked for the Child Poverty Action Group how many mothers got themselves into terrible debt at Christmas shopping from catalogues. They would not let their children wear National Health Service spectacles. I from a more confident position was happy to buy nearly everything my children had from a jumble sale—second-hand bikes and toys—but the pride and determination that one’s child will have the best one can give them is deeply entrenched and it is why these financial payments are so important.
Many in this House have experience of working with disadvantaged families. I know that the noble Baroness—whom I like to call my noble friend—Lady Sherlock, who is going to wind up for the other side, has long-standing engagement and commitment, as does my noble friend.
Preparing for this debate, I wondered whether I was getting out of date, so I talked to the best constituency caseworker I know. She expressed in strong terms her deep concerns about the ongoing functioning of the Child Maintenance Service. Dedicated caseworkers inevitably become close to those they help and identify with their anxiety and pain in grievous situations. We all understand that the break-up of a relationship is not only about poverty; it is about the end of a dream and it is almost like an amputation for some. It is fuelled with suspicion, hurt and resentment. There are many psychological and emotional factors, but the fact is that poverty, not being able to rely on an income, compounds all those difficulties.
My caseworker noted a number of parents, usually fathers, doing everything they could to avoid paying maintenance, as my noble friend said: setting up companies to conceal income, refusing to pay, being devious and, in some cases, being absolutely dishonest. The children frequently then have the indignity and pain of seeing the absent parent driving around in a smart car, going on expensive holidays and treating subsequent children with relative luxury. All this reinforces why this Bill, while not being the total answer, has an important part to play.
Mention has been made of Gingerbread. The CAB is similar; it has endless evidence about these examples. In seeking redress or justice, the lone parent has to invest time, frustration and deep resentment, which can of course be cumulative and result in stress and even ill health. As I said, most mothers or fathers do everything they can to give their child the best possible upbringing.
The National Audit Office has said that it can take years before payments are made to receiving parents if the paying parent simply refuses to comply. Running on for years, it is a relatively Bleak House experience of fuelling emotions that nobody wants to have when trying to be a calm, civilised parent and creating a relationship, and one of respect, with the absent parent.
The House will be aware of the 2022 National Audit Office report on child maintenance. Encouragingly, parents now rely less on the state to help them to make maintenance payments—an objective of the 2012 reforms. It is estimated that one in three separated parents have a child maintenance arrangement for which the agreed maintenance is paid in full, but in 2022 the CMS reported that more than a third of parents paid no maintenance at all; of those who do pay maintenance, fewer than 45% pay more than 90% of the amount due. Cumulative arrears amounted to £493 million; the figure is estimated to reach £1 billion by 2031. It is evident that there has to be action and that there are ongoing problems with child maintenance collection and enforcement activities.
Research shows that 60% of single families living in poverty and not receiving child maintenance would be able to escape poverty if they were simply paid the money they are owed. How difficult it is to be a balanced, affectionate parent, having a good relationship with the other parent, while going through all this impossible difficulty and complexity. We have to make it easier.
The Child Maintenance Service has experienced falling compliance figures since 2021, following what had been a period of improving compliance. I appreciate my noble friend’s comments about the Child Maintenance Service: the people in the organisation are dedicated and they care. They are at the receiving end of extremely emotional, often quite angry and maybe irrational people who feel that they have lost out, so they need the patience of a saint. I want to acknowledge the good work that the CMS is doing—but we have to do more.
Under current legislation, direct payment is the default option unless both parents request collect and pay. If the paying parent refuses to comply, as I have said, it can take years before payments are made to the receiving parent.
This Bill is not going to solve all the problems. We have discussed the different measures by which the CMS can ramp up enforcement and collection more quickly. Time is reduced pain; speed will reduce the agony faced by so many. Other measures in the Bill are not enormous but are important and will result in swifter, more effective action.
The Bill constitutes an important step to improve compliance and enable the CMS to do its work better. I doubt that it will be the last word on the subject but it is thoughtful, carefully prepared and practical. I certainly believe that it will improve the lives of affected children and families, up and down our country. I commend all those who have been involved.