(8 months, 1 week ago)
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It is a pleasure to serve under your chairmanship, Sir Charles. I thank the right hon. Member for East Ham (Sir Stephen Timms) for securing a debate on this topic, on which I have campaigned consistently during my time as an MP. I campaign on this issue because I feel strongly that there is a pure moral obligation and benefit to hard-working taxpayers of cracking down on delinquent parents.
I have said before and I will say again that having children, then not contributing to the cost of raising them is morally reprehensible. I certainly think it is worse than shoplifting, fraud, dropping litter, selling counterfeit goods and a whole range of other things for which individuals can and do regularly face much tougher sanctions. This is not about some idealised view of families or saying that families should be one size fits all; it is about saying that whatever the relationship between parents, both maintain a moral obligation to provide for their children. Recently, children have seen a win with the successful passage of the Child Support (Enforcement) Act 2023. I pay tribute to my hon. Friend the Member for Stroud (Siobhan Baillie) for introducing the Act, and I fully support its aims. We have had the necessary consultations ahead of enactment and, like others, I would welcome an update from the Minister on when we can expect to see the powers being used, because they are very much needed.
According to Gingerbread, total arrears sit at £547.9 million. Imagine the positive impact we could have had on children had that money been paid. The non-payment of maintenance is a key driver of child poverty. If all maintenance due was paid, 60% of children of single parents who are not benefiting from payments would be lifted out of poverty. Let us be clear that in many respects taxpayers pick up the bill indirectly. Although I praise these advances, I worry that they will not be enough, and represent a partial acceptance of an unacceptable status quo, in particular for those parents who do not earn, or earn very little, when they could reasonably have expected to earn more.
This is where we need one of two fundamental rethinks. When it comes to out-of-work benefit payments, we expect recipients to make an effort to find work and earn more, because they have a moral obligation to the rest of us who pay for their benefits. Surely, the obligation to earn to care for one’s children is even greater. We should subject parents to the same reasonable expectations to find work and earn more as we do for those who claim benefits.
To enforce that and other expectations, I continue to ask the Government to make use of the home curfew powers available. The use of already established but unused powers to impose a home curfew, I believe, would have a positive impact on those who shy away from their parental financial duties. Indeed, spending six months with no social life would certainly provide time to reassess responsibilities and allow people to be made an example of.
That brings me to the second fundamental rethink. The current system ignores the moral aspect of this debt. This is not a commercial debt; people should be punished for not providing when they reasonably could. At the moment, the system simply asks them to start paying money again and, if they do that, everything falls away. There is no punishment for their moral failure to make an effort to pay, when they could, or for deliberately seeking to avoid paying. We need to create moral hazard for individuals to behave in that way.
A home curfew has the added benefit of providing time for a parent to go out to work, so arguments about punishments hampering earnings, particularly custody, fall away. Of course, these powers should not be the first port of call. Cases must have a clear evidence base that a parent has actively made attempts to deny sharing money, or made no effort over a long period of time to find work and increase earnings. I am also clear, for those who are concerned about this and write to me when I raise it, that custody and benefit arrangements are separate.
I recognise that there are parents who want to pay, do pay, and do not get access to their children. That is wrong and I encourage all of them to use the courts to secure the access to which they are legally entitled. That does not mean that someone should not pay in the meantime. If there is a genuine dispute about maintenance payments, I can understand why these cases arise, but I question the priorities of a parent who only wants to pay maintenance for their child when they have custody. Surely, payment of maintenance should come first, and custody rights should be pursued separately.
I will finish by asking the Minister to explain why we have again moved away from using home curfews, and ask him to reconsider that, or at least commit to doing so, if these newly enacted powers fail to bring down the maintenance backlog, which, unfortunately, I am confident they will not. Children deserve nothing less, and wider society should rely on us to uphold these basic moral standards.
Thank you very much, Sir Charles, for calling me to speak; I am grateful for the chance to begin summing up in this debate.
First, I commend the right hon. Member for East Ham (Sir Stephen Timms), the Chair of the Select Committee, for securing this debate. I thank him and other Members of that Committee for giving me the chance to attend, as a guest, some of the hearings when they have had the Child Maintenance Service before them. Also, I want to give the right hon. Gentleman more than the usual token 20 or 30 seconds at the end of the debate to sum up, so I will try to keep within the 10 minutes I have; those who know me will know what a struggle that will be, but I will do my best.
I think this is the third time I have participated in a Westminster Hall debate on the Child Maintenance Service and I am again struck today by the fact that there has been very little disagreement in the Chamber; everybody accepts that the CMS is not working, that the time for talking about changing it is long past and that we need to start seriously changing it.
It was very noticeable in this debate today that the overwhelming majority of contributions have come from the Minister’s own party, with two of them from people who have been there with ministerial responsibility: the right hon. Members for Romsey and Southampton North (Caroline Nokes) and for Suffolk Coastal (Dr Coffey).
Incidentally, while the right hon. Member for Romsey and Southampton North was speaking, I made a quick check and found that, since she moved from the Department for Work and Pensions in 2017, we are now on our fifth Minister with responsibility for child maintenance. Maybe that partly explains why it has taken so long to get anywhere. There are obviously reasons why there have been so many Cabinet changes in that time, but I think the Child Maintenance Service is far too important to be one of the things that gets added to the portfolio of someone who stays in post for six months before they get moved on, because it is complex and, if a Minister is in post for only a year, they will not get the time to get on top of the service and drive forward significant changes.
As I have said, this is a system that is simply not fit for purpose. I do not think that we can beat around the bush and look for minor changes; we need a complete overhaul and review, starting from a blank sheet of paper and redesigning the whole thing.
To illustrate that point, I will ask a question. If somebody came in who did not know what the Child Maintenance Service was for and just looked at what it did, would they ever be able to work out what its purpose is? If they did, I will guarantee that they would not conclude that its main purpose was to make sure that no child had to live in poverty simply because of the family circumstances that their parents have found themselves in. If we accept that aim as a valid purpose for the Child Maintenance Service, we begin to understand just how far away from hitting that target we are just now.
Depending on what figures people believe, the United Kingdom is probably the fifth or sixth wealthiest economy in the world, yet 4.2 million children in the UK live in poverty, according to the Child Poverty Action Group. Again, we can argue about the exact number of children in poverty, but we cannot argue that the number of children living in poverty in an economy with so much money spilling around in some places is simply not acceptable. By fixing the Child Maintenance Service, we can certainly reduce the number of children living in poverty, and in such a way that the people who pay for it are the people who should have been paying for it all along. The parents have had the children, but for one reason or another are simply not meeting their responsibilities to pay financial support for their upbringing.
One of the previous speakers—the hon. Member for Amber Valley (Nigel Mills), I think—talked about the fact that debt owed to the Child Maintenance Service is not seen as important or as such a high priority for collection as debt owed to the Government. Again, that is simply wrong. Why do we not have a system in which the DWP pays all the child maintenance due, and then the DWP chases the people who are fiddling the figures or trying to hide and not pay the money? I can guarantee that if the DWP were chasing an absent parent for the money, they would not be living on a fancy yacht in the Bahamas or in the Mediterranean, as mentioned by the hon. Member for Strangford (Jim Shannon). If they were doing that, but the money was owed to the Government, they certainly would not be posting on Facebook to boast about how much money they had or how much they were able to hide.
I do not know whether the hon. Gentleman was able to listen to my points about moral hazard, but does he agree that his proposal for the taxpayer to pick up directly the payments of absent parents who are not paying would double the impact of saying, “You don’t have responsibility. The taxpayer will step in directly and pay it for you.”?
If the hon. Gentleman had listened to what I was saying, he would realise that that is exactly what I am not saying. I am saying that the full force of collection and enforcement that is in the hands of His Majesty’s Revenue and Customs or DWP should be brought to bear not only on those who refuse to pay what they are assessed as being due to pay, but on those who are lying, committing fraud and stealing from their own children. Ultimately, they would still be stealing from their own children, but HMRC has powers to enforce in a way that a single parent does not have. That is what I am saying. It is not a simple solution, but I think it would make a significant difference. As has been mentioned, the DWP’s own figures reckon that since the Child Maintenance Service was set up, £590 million of debt has not been collected. That does not include the undetected fraud or the under-declaration of income, assets and so on.
Something else that I always find concerning about the CMS is that it does not seem to have any curiosity about a parent who fights and fights to get a settlement but then just disappears off the system and gives up. In Child Maintenance Service cases I have dealt with, I have found that probably the single biggest outcome is that the parent with responsibility for bringing up the children simply gives up in frustration, deciding that it is better for them just to get on with their life and to struggle through—very often in or near poverty—because they can no longer cope with the stress of dealing with the Child Maintenance Service. That is a shocking indictment of any Government service, in particular one whose only point, whose only reason to exist, is to make lives better for vulnerable young children.
I have often noticed that, when speaking to parents, the paying partner always talks about how much they are having to pay to their ex-partner. They often do not see it as paying for the upkeep of their children. Something about the language we use here, we need to look at. Something raised by one of my constituents at a roundtable held by Fife Gingerbread, which I hope the Department has picked up and started to act on, is that CMS letters get addressed to the parent—the parent’s name is on it—and it does not say “To the parent of” with the name of the child, which would be a simple way of making it clear that this is about the children.
There will often be bad will between two partners who have split up. Whether they split up amicably or acrimoniously, once they start disagreeing about money, it is likely to become quite a bit more acrimonious. The children, however, should never be made to suffer as a result.
I mentioned Fife Gingerbread. I again need to commend the outstanding work that it has done, and not just within the boundaries of Fife. It is one of the organisations that has influenced the way in which the Child Maintenance Service now operates. On the scrapping of the £20 fee for being able to claim child maintenance, for example, I am convinced that Fife Gingerbread is one of the organisations that can claim part of the credit for having achieved that, as well as a number of other changes that we are seeing.
We have had reference to the fact that IT systems are not fit for purpose. This is the 21st century—we are almost a quarter of the way into the century—and we are using systems that are 40 or 50 years out of date. The Chair of the Select Committee, the right hon. Member for East Ham, and other members of the Work and Pensions Committee and of the Public Accounts Committee will remember only too well what happened to the payment of state pensions when the Department carried on using systems that were no longer fit for purpose. We could be heading for an equally massive injustice in the assessment, payment and collection of child maintenance if we do not get those systems sorted out. As the hon. Member for Amber Valley said, it should not take three or four months for somebody to be told why the assessment is the number that it is. In some of the queries to HMRC, when people are assessed on self-assessment, they could go online, and sitting in front of them would be exactly why HMRC had assessed them for that amount.
The final thing is that one way to reduce the need for child maintenance is for Governments to take other action on children in poverty. This Government could undertake actions that have already been shown to be successful by the Scottish Government. There is the child payment, which has lifted about 50,000 children in Scotland out of poverty; if we do that down here, we are talking about half a million children being lifted out of poverty. Actions taken by the Scottish Government are estimated to reduce the cost of bringing up a child by somewhere in the region of £25,000 to £26,000 during their childhood. Policies similar to those would reduce the demands on child maintenance, reducing the need either for children to live in poverty or for their parents to almost literally come to blows arguing over who should care for their child.
I entirely agree that nobody should feel that they can just leave their children to be the responsibility of someone else. I find it interesting that financial neglect, which is what we are talking about here, is treated differently from any other forms of neglect. If a parent neglects their child in any other way, we do not just stand back and leave the parents to sort it out. If a parent is deliberately neglecting their children financially, they cannot be allowed to get away with it. I do not have confidence that the existing Child Maintenance Service will ever be able to address that, which is why we need to design an entirely new service fit for the 21st century that recognises the wide variety of circumstances that people live in today.
It is a pleasure to serve under your chairship, Sir Charles. I thank all colleagues who have contributed, in particular the Chair of the Select Committee, my right hon. Friend the Member for East Ham (Sir Stephen Timms), for bringing forward the debate. As we heard from all the serious questions asked, it is important.
The Minister has quite a number of important questions to answer, so I will try to be swift. It is clear from this debate that on both sides of the House we all want parents to meet their responsibilities and pay what their child needs—no ifs, no buts; just get it done. We know from Gingerbread, which was mentioned by many hon. Members, that 60% of children of single parents not benefiting from child maintenance could be lifted out of poverty if that support were paid in full. That is why we want to get it sorted. The current situation is just not acceptable, which is why it was good—if a little tardy—that recently we the Government finally removed the fee for the service, after many people had warned for a number of years that it would remove its effectiveness.
Listening to colleagues, it strikes me that it would be helpful if the Government could provide a timeline or working update to help colleagues to know which improvements to CMS they are making and the status of those improvements. There are areas where the Government could do that and help us: on issues relating to domestic abuse, to customer service—I think particularly of the contribution made by the hon. Member for Amber Valley (Nigel Mills) about the complexity of calculations; it cannot be beyond us to have clarity and be able to inform citizens of the information that the Government have on their behalf—and to enforcement. Members have made it absolutely clear how long we have been trying to get enforcement improved, and having a working update from the Government on where we are with that would really help colleagues. I want the Minister to consider that.
When the Minister and I last met across Dispatch Boxes, I had some questions about research undertaken by the Government. The Minister was kind enough to write to me on 21 February to say that Ipsos is commissioned currently to research direct pay customers. That is really helpful, because we really need to understand what is going on for parents. Can he say more about when that will be published? That would be really useful.
In the letter to me, the Minister also mentioned a particular tool that the DWP has developed, which I think gives us some hope in this area. Members have rightly expressed frustration and distress from listening to cases involving people who have had to deal with having a calculation that they knew was wrong. I am thinking of the person that the Chair of the Select Committee mentioned at the beginning of his speech—the dad who had lost a son. These are really heartbreaking cases.
However, I think that there is some hope in the letter that the Minister sent to me where he mentioned the “Get help arranging child maintenance” tool that had been developed for unbiased advice and support and designed to be convenient for parents and to support people into the most suitable arrangements for their circumstances. I would like to ask the Minister what lessons the DWP has drawn from the development of that tool. From listening to the contributions of colleagues, it strikes me that if we could have a focus also on early advice, help and support so that people knew, at the very distressing time of relationship breakdown, what the best steps were for them, that would be hopeful and point to a better direction, so I would be grateful if the Minister could say what lessons the DWP is drawing from the development of the tool.
Sir Charles, I said that I was going to be swift and I will be. I will sum up by making three brief points that I think we can all agree with.
There could be a change of Government by the end of the year. I welcome the warm words, and the hon. Member may go on to describe specific policy pledges, but I would like to hear specific policy goals that her party has in mind. For example, do you support the introduction of home curfews? Rather than just speaking warm words, what will you actually do differently should you end up in government?
Order. Can we not use the word “you” in the Chamber when referring to another Member?
Thank you, Sir Charles, and I thank the hon. Gentleman for his intervention. I will just say to him that not a single vote in an election has been cast yet.
(1 year, 6 months ago)
Commons ChamberI am always very happy to meet colleagues from across the House to discuss such issues, and this circumstance is no different.
Enforcement action is used as a last resort when a parent is failing to pay their maintenance payments and other action has failed. Home detention is a powerful deterrent and, as such, we would expect usage to be low—perhaps less than 10 cases a year on average. I know that my hon. Friend focuses on this matter. The Child Maintenance Service continues to explore how existing powers can be used to encourage compliant behaviours and facilitate constructive relationships between parents to ensure that, importantly, financial support reaches the children for whom they are responsible.
(1 year, 7 months ago)
Commons ChamberI congratulate my hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) on securing this Bill’s passage through the House.
I wish to highlight the importance of this issue to the whole country in the long term. The UK, like most of the rest of the world, has an ageing population. In the next 25 years, the number of people older than 85 will double to 2.6 million—it is often described as the demographic time bomb. Pension saving is one way to tackle the strain that that will place on the public finances. As we know already, when people’s pensions savings are not sufficient, the Government have to step in and provide that minimum floor and safety net.
Therefore, the more that we can encourage individuals privately to save to support themselves in retirement the less the state will have to do through taxation. That is why businesses can and have embraced these changes. Although they are making a contribution in the short term to pension savings, they will see a lower tax burden placed on them as employers in the long term as we seek to meet any gap that might exist later on in people’s lives when they retire. The policy has already been a fantastic success, as my hon. Friend outlined. This change is an important step forward, which I support.
(2 years, 5 months ago)
Commons ChamberI am grateful to have this opportunity to talk about this incredibly important issue. While the topic is very broad, my speech is very focused.
I am seeking to encourage the Government to move forward rapidly and robustly with proposals for home detention for people who do not pay child maintenance—something I have concentrated on campaigning for in my short time in the House. When discussing this issue, we are talking about the most important building block in our society: the need for parents take responsibility for their own children. The overwhelming majority of parents do exactly that. Whether together or separated, they take care of their financial responsibilities. My parents are divorced, and that had no bearing whatsoever on both of them continuing to look after me and my siblings. But sadly, not every parent does.
As a Conservative, I am of course wary of the state’s unnecessary involvement in family life. It is disheartening that the Government have to be involved in this issue at all, and whatever failings I might go on to talk about, the people who most deserve our frustration, unlike campaigners who put all their effort and energy into blaming the Government for everything, are the people not living up to their responsibilities. Unsurprisingly, that sort of campaign does not get brand endorsements and social media favour.
One thing we all agree on in this place is that part of the role of the state is to penalise the worst kinds of behaviour when that behaviour is beyond the pale. We do that most commonly in criminal law, but we also have civil law. In both, we right wrongs and punish people who behave in a way that the rest of society has decided we will not accept. Let me be clear: people who do not contribute to the upkeep of their own children when they could are the lowest of the low, but there is absolutely no system of punishment for that. Do we really think that, as unacceptable as it is, graffitiing a wall or vandalising a park bench is a graver offence than having children and refusing to contribute to their upkeep? I think the latter is one of the most deplorable things someone can do, but absolutely nothing is done to punish people for it—nothing. We fine people who do not send their children to school. We punish that, but not failing to support them.
In a completely perverse contrast, if someone has the much more onerous responsibility of having primary custody of their children and they neglect them, they are punished. What kind of contrast is that? What kind of message does that send?
For all the tough talk about sanctions, which I expect the Minister will cover, all they are aimed at is recovering moneys owed to children. How is that narrow approach working? Certainly there has been some improvement, as described by a recent National Audit Office report. The Department collected a record £54 million in the quarter ending September 2021. The percentage of paying parents contributing more than 90% of ongoing maintenance due in a quarter increased from under one third in March 2016 to around half in September 2021.
I thank the hon. Gentleman for bringing this debate forward. Child maintenance arrears are a massive issue in my constituency, as they are in his. Does he not agree that with the cost of living crisis, single-parent families are under more pressure? There are 20,000 children in Northern Ireland alone whose cases are with the Child Maintenance Service’s advisers, and they deserve an up-to-date, functional service to ensure that payments are adequate, correct and timely.
I thank the hon. Gentleman for raising that issue. My focus today is on the need to change regulations, but I accept the wider concern about the functioning and efficiency of the agency. I will go on to talk about his point about the cost of living crisis. Figures suggest that 16% of children who are not in receipt of maintenance payments would be lifted out of poverty if they were, and that shows the level of concern we are trying to address.
We have seen some improvements. The NAO found that the internal processes for moving towards enforcing compliance were better, but the bigger picture is not positive. Of separated families who have a Government-mediated arrangement in place, the NAO found that only one in three see it paid in full, so two in three are not getting the payments in full to which they are entitled. Sometimes, the sums people are expected to pay are incredibly small. At the end of September 2021, total cumulative arrears under the current child maintenance scheme were £436 million. That amount is increasing at roughly £1 million a week, and the total will hit £1 billion by 2031. That is a huge amount of money that is not being paid by non-residential parents, and we have a responsibility to hold to account and punish individuals who behave in this deplorable manner.
Does the hon. Gentleman agree that it is the children who suffer most? The way that the Child Maintenance Service is writing off arrears means that these children will be permanently disadvantaged, with no more holidays and no more of the things that most children would take for granted.
The hon. Member pre-empts the exact point I was going to go on to make, which is that between December 2018 and March 2021, the predecessor agency wrote off about £2.6 billion of owed maintenance. That is the Government stepping in and legally excusing a parent of their responsibilities to their child. Whether or not it is realistic to recover it, morally I am not sure the Government should be doing that in a child and parent relationship. That is not a success in my book.
As of September 2021, 38,000 paying parents with an ongoing arrangement had not paid any maintenance for more than three months, and 22,000 had not paid for more than six months. That is tens of thousands of individuals happy to let other people pick up their most fundamental responsibility of providing for their child. All too often, it is strangers picking up the pieces through the tax system. In theory, the Department has some tough powers, including imprisonment, but the figures I have quoted clearly show that they are not working. Imprisoning someone, although perhaps morally warranted, stops them being able to earn and is not a practical solution to use at the scale needed to tackle the tens of thousands of non-payers. Those delinquent individuals have learned that if they just start paying a bit again, the whole system resets.
The Department’s civil enforcements are restricted to the collection of arrears at the time when a liability order is granted and cannot be used to enforce ongoing maintenance, which is another reason why an element of punishment would serve a wider purpose. It is not surprising that the evidence shows that overall, maintenance arrears continue to build up, even when the Department begins enforcement action. The NAO found that on average, parents had arrears of £2,200 before the enforcement action began and £2,600 afterwards. As if it were not bad enough that taxpayers have to top up the income of less well-off families when one parent is not contributing, we have to put time, money and effort into chasing up payments with no consequences for those who are not paying.
Taking stronger steps is broadly supported. According to a survey by Mumsnet and Gingerbread, 93% of parents believe that those who regularly avoid paying child maintenance should face more serious penalties. Not only would punishment be morally warranted, but I expect that it would have a powerful effect on compliance and put people off not paying in the first place. As I said, tougher restrictions to ensure that people are paying their child maintenance could lift 60% of children not in receipt of payments out of poverty. With the cost of living crisis, there is no better time to tackle the issue.
A change needs to be made to the system to ensure that the continuous rise in non-payments is tackled, and that is where home curfew can play a role. When the Government originally introduced enforcement measures, they crafted the legal framework to introduce home curfew measures but the powers were never enacted. I am not clear why, but I have campaigned for some time for those powers to be put to use, so I was delighted that, earlier this year, the Secretary of State announced plans to do exactly that. I hope that today’s debate helps to encourage the Government to make progress towards that commitment.
I would welcome the opportunity for my constituents to contribute to a consultation; perhaps the Minister could meet me and some of them as plans are developed. It will be no surprise to him that I think it is important that we use this power not just as a mechanism to encourage payments but to punish. If we could meet ahead of the consultation so that we can ensure that that is part of the proposals, it would be appreciated.
Home curfew could remain in place for the designated period regardless of whether a parent started to pay—for example, for three months. I imagine that spending three months at home every night, pondering their responsibilities, would be a powerful reality check. People need to understand that we as a society do not find non-payment acceptable and that they will be punished for not paying for the upkeep of their children.
On a related note, not earning any money should be accepted as an excuse for not paying maintenance only when there has been a genuine attempt to find work, which should be determined in the same way that the Department assesses that as part of the wider work of the welfare state. If someone has responsibility for children, they should be out there doing everything they can to find a job. If they are not doing that, they should not be out socialising of an evening.
Importantly, unlike imprisonment, home curfew can be used in a way that does not prevent a person from looking for a job and earning, as it can be tailored to their circumstances. It would typically be an evening and overnight curfew to allow people to find and take work during the day, but it could be switched around for people who find night work.
I sound a note of caution. As constituency MPs, we have all had cases of people for whom the administration of maintenance by CMS has gone wrong. Of course, if we are seeking powers to restrict someone’s liberty, we need to ensure that the cases are watertight, but we know that tens of thousands of people are not paying and would be fair targets of this policy.
I understand that home detention equipment is available, so we can make the change work. I would welcome people who are not paying having to explain why they have an ankle tag and cannot go to the pub in the evening. I have no doubt that many would say that they are guilty of a minor crime before admitting that they do not pay for their own kids, which tells us all we need to know about how badly we have got it wrong.
I acknowledge that there are many loving parents who would and do contribute to the care of their children but who are prevented from seeing them by the parent who has primary custody. When I first raised the issue of home detention for non-payers, many such parents contacted me and were clearly distressed. I make it clear that I am in no way minimising that and I fully support every parent in exercising their clear legal right to secure access to their children. Of course, it is abhorrent for any parent not to act in good faith when it comes to access, but two wrongs do not make a right and, as with every MP, I have to choose what I campaign on.
I am clear that every child deserves parents who step up and look after them and that no taxpayer should be left filling the void when they do not. On behalf of a society that I believe wants to see tougher action, the Government need to proceed at speed to secure it.
I will reveal the product of a conversation I had earlier with the hon. Lady. I take note of her point, and if she gives me details of specific examples, particularly if there are regiments where this is a problem, I and the Department will be most interested to know about them. Of course, it would be best if we could respond to them before her important Westminster Hall debate on Thursday.
Where earnings cannot be accessed directly and there is a solely-held bank account—an absent father or mother has a bank account in their name—deductions can be taken directly from that account, and administrative methods can then be used to take control of goods, passports and other things on an ongoing basis.
My hon. Friend the Member for Crewe and Nantwich talked about sanctions. We clearly use them only as a last resort, but a paying parent found guilty in court of wilful refusal to pay, or of culpable neglect in relation to payment of arrears, may be prevented from holding or obtaining a driving licence for up to two years, or alternatively may be committed to prison. As I indicated, we have also got the power to disqualify non-compliant parents from having a passport. Those are pretty serious penalties, but I take the point that that is not a direct penalty for the offending behaviour.
The important point is that those powers tend to be at the end of an extensive, long-winded process, but people get very good at dropping in and out of it and, as a result, are no worse off. They can play the game all the way to the end and then say, “Okay, fine. I’ve got some money that I’ll give you.” They give money for a couple of months and then drop back out. They are no worse off as a result—they have not paid an extra penny in maintenance or served any punishment. It is about tackling that wider behaviour. That is not to say that the powers are not used effectively on occasion—as the Minister said, the deduction orders work well for some people—but a contingent of people are playing the system and not getting punished for it.
My hon. Friend makes a totally fair point. As always, a way forward is to take up specific examples with the CMS and Ministers directly, and I urge him to go to the Minister next week with those specific examples so that she and the director of the Child Maintenance Service can be challenged on why a particular individual is not being pursued in a particular way. Although there is the public policy thing, I keep coming back to how, ultimately, one is trying to encourage payments to be made. That is the difficult bit that one must address.
I want to touch briefly on sanctions, because these are pretty major powers. Between January 2020 and December 2021, the CMS initiated almost 6,000 sanctions against paying parents, so there are not one or two examples but thousands. While the majority of those do not involve the courts as compliance is achieved, between 2020 and 2021, £3.5 million of child maintenance was collected from paying parents undergoing sanctions actions. The trigger of a sanction producing payment does work, albeit I accept that in individual examples there are not sufficient amounts. I mentioned prison sentences, and in that period there were 249 prison sentences and a multitude of driving licence suspensions.
I come finally to curfews. My hon. Friend raised a number of points in respect of the curfew policy, and it is very much the case that we are proceeding with that. He was right to raise it with the Secretary of State, and she agrees with it. We are required by law to consult on it, and I want to give him the specific dates and how he, his constituents and fellow colleagues in the House can get involved. First, he—and his constituents through him—can feed into the consultation process prior to it happening. A public consultation on the power is intended to run from 13 June to 22 July, with the aim of its being published on 12 October. The order will then be commenced, subject to the approval of Parliament—it must pass through this place. He therefore has two windows: the first to influence the consultation before 13 June; and, secondly, he, his constituents and other colleagues can feed into the consultation in the normal way. [Interruption.] I need to face the front of the House. I apologise, Madam Deputy Speaker. I meant no discourtesy to you—I was attempting not to be discourteous to my hon. Friend—and I accept the implied criticism.
It is very important that representations are made in that way, and that there is the opportunity for my hon. Friend’s constituents to ensure that the extra power is a strong enforcement power and that there are more options, so that they can use the right lever to obtain compliance. The existing sanctions clearly disrupt a paying person’s earnings and that is the key conflict with the desire to get money to the children. The benefit of the power is that it is likely to disrupt a paying person’s lifestyle, rather than their earning capacity. Given that curfew orders will not affect employment or the ability to earn, we feel that that is the right way forward.
I thank my hon. Friend for raising this important matter. I hope that I have addressed some of the points he considers important. I want to finish on one key outside point. We are in very difficult times with the pandemic having ended, but more particularly with international breakdown and the war in Ukraine. The Government’s priorities are: growing the economy to address the cost of living; making streets safer; funding the NHS; and providing the leadership we need in challenging times. One of those bits of leadership, unquestionably, is ensuring that the Child Maintenance Service, particularly in challenging times, is genuinely performing to the best of its possible ability, getting the best outcomes for individual children and the constituents who we all serve. This reform and the work we are taking forward, I hope, will get that outcome.
Question put and agreed to.
(2 years, 7 months ago)
Commons ChamberThere is a cross-Government effort to tackle the cost of living; that has been ongoing for some time, and was most recently revealed by the Chancellor’s announcement on council tax rebates, but also—[Interruption.] Council tax rebate is not a loan; the hon. Member for Wirral South (Alison McGovern) is misinformed. There is also a phasing of energy bills. [Interruption.] I am afraid the hon. Lady is yet again wrong in her assertion about the council tax rebate. However, moving on, the Chancellor really listened when he moved to make sure that the taper rate was reduced to 55% in the autumn Budget; that is ongoing, and it recognises the principle of universal credit that people will be better off working than not working. It is already delivering that, and I welcome the fact that the Chancellor did that.
One thing that would help single-parent families with the cost of living is receiving child maintenance. In fact, research by York University has found that securing child maintenance payments would lift 60% of children living in single-parent households that currently are not receiving them out of poverty. We have made good progress, but I think we can do more, for example by using home curfew to penalise non-payers. What plans does the Department have to move forward with home curfew?
I agree with my hon. Friend that we should be doing and want to do more on child maintenance. There are a number of reasons why sometimes parents are not so keen on that process. However, that specific power was created in primary legislation, and it is my intention later this year to bring the curfew order into effect. I will be working carefully across Government to make sure that we get the appropriate consultation and clearance for regulations.
(3 years, 9 months ago)
Commons ChamberI, too, begin by recognising the enormous challenges that have faced all parts of the DWP and, indeed, Government over the past 12 months. If ultimately more people in need got more help through redeployment, I can understand the difficulties that had to be faced. Like other MPs, I have been contacted by constituents who have experienced difficulties with reductions in payments. I welcome the commitment that calculations will be backdated. We must get back to normal service as soon as possible. I would like to make sure that the challenges and difficulties created by the pandemic do not mean that we forget the longer-term challenges, so, if I may, I will make some broader points.
We know that there are £350 million of arrears with the CMS, that £2.5 billion of Child Support Agency legacy debt is owed to children and that as much as £1.9 billion is due to be written off. Those figures alone tell us that we can and must do more. I do not know every single non-paying parent’s circumstances, but I am not willing to hold back on my criticism of parents who could pay but do not, for fear of upsetting those who cannot. Let me be clear that in my view not financially supporting your children when you could is completely and utterly reprehensible. If you do this, you are the lowest of the low, in my book.
I understand that various measures including imprisonment are available. We confiscate passports and deduct money from people’s wages, but the outstanding money shows that we need to go further. I want to pay tribute to the charity Gingerbread, which has worked and campaigned so hard on this issue. It says that in 2019 over 100,000 children went without payments while the Child Maintenance Service confiscated fewer than five passports and zero driving licences. I have heard from parents in my constituency who are not receiving the money their child is entitled to, and they have my full support. They want to see tougher action taken sooner, and so do I.
When it comes to arrears, I am afraid that we are much too quick to write off the debt. I seriously question the approach of writing debt off at all. That money is owed to a child, so what right does the state or even a parent have to say that they will forgive that debt? What kind of message does it send when we say, “You can be let off your obligations to a child”? In my view, we should never do that.
I want to finish by raising another area of consideration that I appreciate is full of potential unintended consequences and complexity. Why is it only up to one parent whether the other parent is pursued for the obligation in the first place? The state intruding uninvited into family arrangements should never be done lightly, but the financial circumstances of families with a parent wilfully failing to pay affects the finances of all families. It is not just a private matter. In effect, welfare and child benefit and the concept of parental responsibility and child maintenance operate entirely separately, but when it comes to poverty, hard-working families pay their taxes, making up the shortfall of the money not being provided by non-paying parents.
In the discussion on poverty and welfare, we hear again and again the scenario of the single parent struggling. Why are we told this about someone who is struggling? The implication is that they are struggling financially because they are a single parent raising their children on a single income. Quite rightly, taxpayers provide a safety net of support for children if that single income is not enough, but we should not forget that the first responsibility rests with the parent who is not contributing. As others have mentioned, research has found that in the UK, for the children of single parents who are in poverty and not receiving maintenance, maintenance payments being received would lift nearly 60% of them out of poverty. I wish the same amount of attention and publicity was given to the obligations of non-paying parents as is given to the obligations of taxpayers and the Government to step into their place.
I would like the Minister to give us his thoughts on how, when taxpayers are sharing the responsibility, our welfare system could reflect the implications of one parent choosing not to seek financial support from the other. I appreciate that we need to be mindful of domestic violence and other complexities in those scenarios, but we should not absolve an abusive parent of their obligations because they are an abusive parent. That would create a terrible perversion of the system. As far as I am concerned, not paying child support when you can is child neglect. If a parent who is looking after and caring for their child simply stops doing what we expect of them, we do not accept that. The state steps in, uninvited if necessary. That double standard is not right. I know that the Minister and the Department will rightly focus on the immediate challenges—
Order. The hon. Gentleman has exceeded his time and he really must conclude.
(3 years, 11 months ago)
Commons ChamberWe are encouraging employers to create a range of opportunities through the kickstart scheme for all young people aged 16 to 24 who are at risk of long-term unemployment, including those who have disabilities. Our work coaches will help to identify those young people in need of any extra support available through the kickstart scheme and any other suitable provision to support them. Meanwhile, my hon. Friend will be interested to know that the wide-ranging opportunities in his constituency go to the approval board this week for consideration.
(4 years, 2 months ago)
Commons ChamberI think the hon. Gentleman was in a roundtable with my hon. Friend the Minister for Employment that focused on that issue. Part of our approach is about having a national framework but a lot of local deliverability, with very local connections, so it is part of the local recovery. I am sure that he and several other Mayors who have been in those roundtables are very up for that. Of course, trying to level up across the country is a key priority for the Government, and we will be straining every sinew to help people like the hon. Gentleman, with his local community, to try to generate those jobs.
By giving them opportunities to get their foot in the door, this scheme demonstrates that this Government are really going to help young people get on in life. I have already started discussions with my local chamber of commerce, because I am keen to work with businesses in Crewe and Nantwich that are really keen to get involved. Will the Secretary of State confirm how small businesses are able to take part in the scheme, to push away some of the negativity we hear, which is not based in reality?
My hon. Friend is absolutely right. I assure him that the British Chambers of Commerce has been heavily involved in this. Of course the full details came out yesterday. I know that individual chambers of commerce may well be set up as intermediaries. They need to do what is right for them. I have made it clear that that cannot be only for their members; the organisations that they reach have to be broader than that. I am confident that we will get those intermediary bodies that are not already established up and running very quickly, and I encourage him to make sure that his local chamber is one of them.