Child Support Collection (Domestic Abuse) Bill

Luke Evans Excerpts

Friday 28th October 2022 Commons Chamber

[Sally-Ann Hart (Hastings and Rye) (Con)]

I beg to move, That the Bill be now read a Second time.

I am pleased that we have time today to debate this Bill, which is an important measure to help safeguard victims of domestic abuse who use the Child Maintenance Service. MPs from across the House will have experienced casework where constituents—predominantly women—who are struggling financially find it very difficult to make their former partner pay child maintenance and have to chase this through the CMS.

We have all seen the impact, mainly on women, and children, when abusers have made it difficult for their formers partners by using money as a means of controlling them. Although the majority of separated parents do all they can to make sure they financially support their children, we have all had casework on the non-payment of child maintenance. I praise in particular the work of Baroness Stedman-Scott, the Minister in the other place, for her focus and hard work on this issue, as well as the CMS staff. Chasing non-payers, even when victims sometimes just want to give up, lifts thousands of children out of poverty. Since 2019, more than £1 billion of child maintenance support has been collected and arranged each year through direct pay and collect and pay. Until fairly recently, financial abuse has been under-recognised as a form of domestic abuse, in which victims, predominantly female, are cut off from sources of money by their partner as a form of control. I therefore cannot discuss this Bill, which is concerned with a niche aspect of domestic abuse, without mentioning the work of consecutive Conservative Governments on this serious issue. The most recent piece of legislation against domestic abuse is the Domestic Abuse Act 2021, landmark legislation that significantly enhances protection for victims of domestic abuse.

Some 2.4 million people in England and Wales are estimated to have suffered some form of domestic abuse. In the UK, some reports estimate that one in eight adults—5.9 million people—experience economic abuse in their lifetime from a partner or family member. Some 4.2 million of them are women, and this financial abuse can leave women with no money for basic essentials such as food and clothing. Financial abuse also has an impact on children, who are real but all too often overlooked victims.

In my former role as a magistrate, I witnessed at first hand how perpetrators of domestic abuse can sit in a courtroom, lie, make sounds or move in a certain way that, to the victim, is terrifying. I have also witnessed those who try to use money or access to money as a means of control, leaving victims feeling worthless and powerless.

[Dr Luke Evans (Bosworth) (Con)]

My hon. Friend is making a powerful speech and I support her Bill wholeheartedly. She is right to point out how children are victims. In my former role as a GP, before coming to the House, I used to see the impact of domestic abuse on children, and not only when they were young but throughout their lifetime. The real key is to ensure that we clamp down on domestic abuse so that it does not have that long-term impact on the rest of someone’s life.

[Sally-Ann Hart]

I thank my hon. Friend for his incredibly good intervention. I absolutely agree.

Before I go into detail on the Bill’s aims, it may be helpful if I explain, for hon. Members who may not be aware of it, how the Child Maintenance Service operates. In an ideal world, the Child Maintenance Service would not be needed. It is certainly not a service that many people would want to use, but it is a safety net when parents who have separated cannot reach agreement on financial responsibilities, especially when one parent is deliberately trying to evade paying their share. It goes without saying that even when a relationship between parents breaks down, their financial responsibilities to their children continue at least until their children reach adulthood. It takes two to tango. Responsibility must be shared.

The purpose of the Child Maintenance Service is to facilitate the payment of child maintenance between separated parents who are unable to reach their own agreement following separation. It is a challenging job that is done in very difficult circumstances. Getting a maintenance arrangement in place for children improves their life and improves their chances in life. Ensuring that parents take responsibility for their children, including financial responsibility, means that they are giving them the best start in life.

Many hon. Members will have had some experience with the Child Maintenance Service. Some experiences will have been positive and some negative, but those who remember the Child Support Agency will know how much work has been done over the past few years to improve the system. I am sure all hon. Members will acknowledge that the Child Maintenance Service performs well—much better than previous child maintenance systems. Improvements include bolstering enforcement powers to tackle parents who refuse to pay what they owe, and moving more of the service online. Passports can be removed if a paying parent will not pay up, for example, and eight out of 10 new claims are now made online.

The Child Maintenance Service manages child maintenance cases through one of two service types: direct pay, and collect and pay. With direct pay, the Child Maintenance Service provides a calculation and a payment schedule, but payments are arranged privately between the two parents. With collect and pay, the Child Maintenance Service calculates how much maintenance should be paid, collects the money from the paying parent and pays it to the receiving parent. Under current legislation, direct pay is the default option unless the paying parent agrees to use collect and pay or demonstrates an unwillingness to pay their liability. The Bill aims to extend the collect and pay service to victims of domestic abuse, regardless of the payment history.

I know that the Child Maintenance Service already has safeguards in place for victims of domestic abuse. For example, it ensures that there is no unwanted contact between parents and provides information on how parents can set up a bank account with a centralised sort code so that they cannot be traced. I look forward to reading the independent review of domestic abuse support in the Child Maintenance Service, which was completed earlier this year and which I hope will be published as soon as possible. I am sure that we can all acknowledge that any situation where former partners have to co-operate is always going to be difficult for some people. That is particularly the case where there has been domestic abuse in the relationship.

These proposals are about giving victims of domestic abuse the choice to use collect and pay, so that they can decide what is best for their personal circumstances. Thus they can avoid entirely any need to transact with the other parent where that is appropriate, which will help them to feel as safe as possible using the Child Maintenance Service, particularly if the relationship with their former partner was abusive. That will protect them from ongoing coercion and abuse in their financial arrangements.

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[Selaine Saxby (North Devon) (Con)]

I congratulate my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) and thank her for bringing forward such an important piece of legislation. As she rightly said, some of the most harrowing casework we deal with is often in this area.

North Devon Against Domestic Abuse reports that one in five women and one in seven men have reported experiencing economic abuse as part of a relationship. That can lead to severe financial hardship, debt and emotional distress. The charity offers advice and support to victims of domestic abuse across North Devon as they rebuild their lives, and helps them to build financial resilience and learn money management skills.

Economic abuse is when perpetrators seek to reinforce or create economic dependency and instability, limiting victims’ choices and their ability to access safety. It does not require physical proximity, so it can continue after separation. Economic abuse was defined in the landmark Domestic Abuse Act 2021 and can include taking control of family finances and not keeping partners aware of bills or debts, refusing to contribute or taking victims’ contributions beyond a fair balance, and forbidding the claiming of universal credit or benefits, or insisting they are put into an account that victims do not have access to, to name but a few.

Those actions can all leave lasting marks on victims who are trying to rebuild their lives and their families’ lives. Pushing them into a situation where they are financially exposed to their abuser can impact their ability to build a healthy life. It is also a continuation of abuse, using children as a tool to cause distress. Testimony shows that the legacy of that abuse can lead to some victims’ not pursuing the legal entitlements of their children. One said, “I haven’t arranged any child maintenance because I don’t want to have any aggravation from him.”

[Dr Evans]

My hon. Friend is making a fantastic start to her speech. That is exactly why we need the Bill: it circumvents that and protects victims of confirmed domestic violence, so they do not have to go through that heartache and stress, and do not have to front up against difficult perpetrators of domestic violence. It makes sure that there is stability and safety for them and the family that they are now supporting.

[Selaine Saxby]

I agree with my hon. Friend; what we hear is really harrowing. The next testimony says, “The Child Maintenance Service is his last avenue of financial control, so he uses this wherever possible.”

I also sit on the Work and Pensions Committee, which is currently hearing evidence on this issue. One person said, “In my case, my ex-partner declared an income of less than £8,000 per annum, yet sent my children postcards from all his holidays—skiing in France and Italy, two three-week trips across the whole of the USA, spa weekends and city breaks. Then they had postcards of their father’s new cars: a McLaren and a Bentley. He moved into a three-bedroom house in a desirable area of Cheshire. How on earth is that possible for someone who earns less than £8,000 a year? Meanwhile, I was struggling to pay my utility bills, let alone their after-school clubs and school trips. I am left wondering why none of the evidence was taken into consideration by the CMS.” Some joined-up thinking and common sense is needed. Even when the other parent provides ample evidence that income is being under-reported, the paying parent is simply taken at their word.

We often hear about women experiencing that, but the Select Committee has heard equally harrowing evidence from gentlemen. One said:

“I have 3 children from my previous relationship. Despite the narrative often spun, I am not a dead beat dad, and not all mothers are saints deserving of children. I am a loving father who is paying the consequences of a malicious partner who is using a government tool as part of her domestic violence campaign. During this relationship I was subject to physical, psychological and financial damage… Since I fled, the physical aspect has ceased. Yet abuse at the hands of my ex-wife continues. I don’t report this flippantly. However, the vehicle for her abuse is the Child Maintenance Service, who she uses to continue to financially and psychologically control me from afar, while also denying me access to my children. I’m exhausted by the situation, and with the current cost of living crisis and constant squeeze on my finances, I can honestly say that if I commit suicide, it will be as a direct result of my ex-wife’s abuse in combination with the Child Maintenance Service.”

Although non-payment is not a new tool, it has been exacerbated during covid-19, as the non-resident parent has had increased opportunities to abuse the system, and there have been lower risks associated with that. My hon. Friend the Member for Hastings and Rye has done great work to bring the Bill before us today, and I am delighted to support it, because it is an important step to alleviate the burden on families who have already experienced trauma, and puts the onus on the perpetrator, rather than the victims.

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[Anna Firth]

Yes, this is another way in which the father, or the estranged parent, uses money as a form of control. Dealing with the arrears part of the system is vital.

The other week, my brilliant caseworker, Charles, brought to my attention one case that, frankly, appalled me, but these are common cases; we all receive such cases in our inboxes every week. The marriage of one of my constituents broke down in 2018, and she became the primary carer for the three sons. The Child Maintenance Service decided on an amount to be paid by the father, but the father had not disclosed a large personal income. My constituent appealed against this and it took two-and-a-half years before the Child Maintenance Service agreed with her that the father was underpaying. It then set a new repayment schedule and allowed the father to pay off that debt in small instalments each month, thus penalising my constituent and her children through absolutely no fault of their own. As I understand it, he did not start paying off the debt; it is still accruing and the Child Maintenance Service is doing very little to help.

My constituent has had to fight every step of the way to ensure that her children’s father actually pays what he needs to, and we have still not reached a conclusion. Quite frankly, this sort of behaviour is abuse. It is using money as a weapon. It is a form of domestic abuse and no one should have to go through it. The Child Maintenance Service must be informed to ensure that mothers are not left out of pocket by their ex-partners. This Bill is a vital way of advancing us on that journey.

The Bill, so ably spearheaded by my hon. Friend, will amend primary legislation to allow victims of domestic abuse to use the collect and pay service where there is evidence of domestic abuse against the requesting parent—this could be the paying or the receiving parent—or even children in their household by the other parent involved in the case.

As other hon. Friends have mentioned, there are collection charges for the use of the collect and pay service. I do not complain about the 20% on top of the maintenance liability for the paying parent, but the 4% charge that the receiving parent must pay is wrong and should be amended. I understand that, although the Minister is clear that charges are the right approach for current users of the service, he is willing to consider whether an exemption may be appropriate in these cases. I look forward to hearing him clarify that point in his summing up.

[Dr Luke Evans]

Clearly, the system has to be funded, but the right level of evidence needs to be put in for those who are convicted of domestic abuse. Does my hon. Friend have an idea about how the Government might be able to work that through? It could be that the victim of those who are fully convicted does not have to pay those charges. That might be a nice solution and would allow the removal of fees for those victims to go ahead.

[Anna Firth]

My hon. Friend makes an important point. Obviously, evidence has to underpin this service to make it fair, but in instances where there is clear evidence, which can be assessed, it seems only right that the parent can use the collect and pay service without being financially penalised in any way.

We would all agree that domestic abuse, including financial abuse, is horrific and that no one should have to endure it. As a country, we want to support victims of domestic abuse. None of our state systems should be allowed to make the survivors suffer more than they already have. The Bill will improve the Government’s offer to victims of domestic abuse in how they receive child maintenance payments. We must not forget that these payments often form a vital part of the recipient’s overall income and finances, especially those who have endured domestic abuse.

I am pleased to be here to support the Bill, and I am grateful to my hon. Friend the Member for Hastings and Rye for giving us an important opportunity and for spearheading this vital measure to stand up for women and children.

[Peter Gibson (Darlington) (Con)]

It is a privilege to be called to speak for the third time today and to be able to support my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), who is also my very good friend, on the Second Reading of her hugely important Bill. As I said earlier, I know only too well the privilege of doing well in the ballot for private Members’ Bills, but I also know the difficulties of guiding a piece of legislation through the House. As my Bill progressed through the House I was honoured to have the support of colleagues across the House, and I am delighted to support my hon. Friend and her Bill.

Violence against women and girls is rightly a key focus for the Government and for everyone in the House. That was detailed in the recently published “Tackling violence against women and girls” strategy, which builds on a long heritage of legislation introduced by Conservative Governments, including the Children Act 1989, the Protection from Harassment Act 1997, the Protection of Freedoms Act 2012, the Modern Slavery Act 2015 and the Domestic Abuse Act 2021, all of which contained steps and measures to protect people.

[Dr Luke Evans]

It is all very well having legislation in place, but it is really important that we have the financial backing to enforce it. Does my hon. Friend welcome the £230 million from the Conservative Government to do exactly that?

[Peter Gibson]

I am grateful to my hon. Friend for making that important point. He has made it clearly and it is on the record, and I welcome that investment.

As I have served on the Women and Equalities Committee and the Domestic Abuse Bill Committee, and I engage regularly with my local police, domestic abuse refuge and the night-time economy—including my shift last week at the newly established Number Forty night-time hub in Darlington—I am only too aware of the need for society to do more to protect people. I am therefore grateful to all hon. Members who are taking part in today’s debate.

Domestic abuse is a crime. It is perpetrated in the privacy of a place where everyone should feel safe by those who exploit and abuse their position. It is right that we do all that we can to restore a position of trust and safety for victims, and protect and support children who are witnesses to domestic abuse and punish and rehabilitate the perpetrators. Domestic violence as a crime has both an instant impact and a long tail of consequences, putting pressure on our charities, local authorities, schools and prisons. At the root of this crime is the perpetrator, wreaking havoc on a partner and often children too, creating huge costs to our society both in money and in impact.

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[Peter Gibson]

My hon. Friend makes an important point, and I am sure the Minister will, having heard him, address it in summing up.

To return to the use of the banking system as a means of perpetrating abuse, I have worked with a number of banks on this and know that many are working on ways to stamp it out. Abusers can also use non-payment and deliberate payment on irregular days to interfere with means-tested benefit entitlements. No victim or survivor of domestic abuse should ever be told or forced to contact their abuser; it is unquestionably a moral wrong.

I understand that these issues have been a source of controversy since the inception of the current CMS and the introduction of the direct pay service and charging, and the Bill will bring a long overdue and welcome change to the system. I am also glad that the Bill will extend not only to England but to Scotland and Wales, providing consistent protections to victims of domestic abuse across Britain. It is regrettable, however, that the current suspension of the Northern Ireland Assembly means it has not been possible to extend the protections to the entirety of the United Kingdom.

[Dr Luke Evans]

I want to stress the importance of cross-border unity across the United Kingdom on this issue, so perpetrators cannot hide in one jurisdiction from another.

[Peter Gibson]

I agree wholeheartedly with my hon. Friend.

My hon. Friend the Member for Hastings and Rye has introduced a highly commendable Bill, putting further steps in place to right a wrong that has existed in CMS payments since inception, and providing a further level of protection to some of the most vulnerable in our society by preventing abusers from further torturing those who have escaped from a cycle of abuse through the CMS.

This Bill clearly commands cross-party support and I offer my sincere thanks to my hon. Friend for bringing it forward. I wish her well as she continues to guide it through its legislative process and hope to see it pass all its parliamentary stages and make its way on to the statute book.

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[Dr Luke Evans]

Training is indeed very important. We talk a lot about the victims of domestic abuse, but the CMS might be a place where we can pick up on domestic violence and domestic abuse on the first presentation. Is there training to make sure we pick up those cases when they come forward?

[Tom Pursglove]

My hon. Friend asks a very good question, and I am keen to obtain an answer for him on that point. He will appreciate that I am only a few hours into the role and this is quite an involved question but, of course, he raises an important point. I will make sure he receives a full response following this debate.

The CMS also ensures that there is no unwanted contact between parents, and it provides information on how parents can set up a bank account with a centralised sort code so they cannot be traced. The application fee is also waived for victims of domestic abuse, and CMS caseworkers can provide information to our customers on a number of specialist domestic abuse organisations.

In recent years, the CMS has strengthened its domestic abuse training to ensure that caseworkers are well equipped to support parents in vulnerable situations. However, the domestic abuse landscape is always evolving and we are, of course, ready to listen to feedback from customers, customer representatives and stakeholders on this sensitive area. We already engage regularly at ministerial and official level with MPs, interested parties and the domestic abuse commissioner, and we will continue to do so.

In the autumn of 2021, the Department commissioned an independent review of the way in which the CMS supports survivors of domestic abuse. The review was conducted by Dr Samantha Callan, who is a leading expert on domestic abuse. The review has now completed and is with the Government for consideration. We welcome the opportunity to learn lessons and take whatever practical steps we can to help separated parents who have experienced abuse to set up safe maintenance arrangements.

My hon. Friends have spoken about the importance of this Bill, but I would like to explain why the Government support it and see the need for it to be enacted now. The CMS manages cases through one of two service types: direct pay or collect and pay. For direct pay, the CMS provides the calculation and a payment schedule. The payments are arranged privately between the two parents. Just to be clear, if necessary this can be done without the parents having any direct communication. For collect and pay, the CMS calculates how much maintenance should be paid, collects the money from the paying parent and pays it to the receiving parent. Under the current legislation, as my hon. Friend the Member for Hastings and Rye said, direct pay is the default option unless the paying parent agrees to use collect and pay or demonstrates an unwillingness to pay their liability. With collect and pay, paying parents pay an extra 20% on top of their liability, so cases are generally moved to collect and pay only when the paying parent is non-compliant.

There are some limited circumstances in which requiring a receiving parent to continue to manage relations directly with the other customer in their case seems inappropriate. I know that the CMS has experience of such circumstances and is keen to give customers the best service it can, but is bound by the current rules. The Bill will directly address the situation. It will allow a CMS case to be placed with the collect and pay service when either parent applies for it on the grounds of domestic abuse and when there is evidence that that is the right thing to do in their case.

Normally, it is only the receiving parent who can request a move of their case to collect and pay, on the basis that they are not receiving their payments. However, we recognise the importance of supporting any parent who is a victim of domestic abuse. Whatever their role in the case, either a receiving or a paying parent will therefore be able to request collect and pay.

To enable that, the Bill will provide the Secretary of State with the power to make secondary legislation setting out the details of circumstances in which the power can be used. That legislation will deal with the types of domestic abuse evidence that the CMS will accept in determining whether those circumstances apply in a particular case. The House will have the opportunity, which I think is welcome, to scrutinise that secondary legislation. The details need to be in secondary legislation because the evidence requirements may be complex and are likely to change over time as the Government do further work—not only in relation to child maintenance, but right across Government—to ensure we do all we can to minimise the incidence of domestic abuse. The affirmative procedure will be followed so that hon. Members have the opportunity to scrutinise the legislation in this place.

We will, of course, consult widely when formulating our proposals. We will aim to produce requirements that are sensitive to the needs of domestic abuse victims and that have been carefully evaluated and tested before being brought forward.

Given the importance of domestic abuse issues to hon. Members throughout the United Kingdom, I should say a few words about our work with colleagues in the devolved Administrations. I will not mention Northern Ireland, where child maintenance is a devolved issue, except to say that we will be working with Northern Ireland colleagues to ensure that domestic abuse victims are protected throughout the whole United Kingdom. However, I will say a few words about how we will implement the Bill in Scotland, as I know that colleagues who represent Scottish constituencies are keen to be reassured that the Government are considering child maintenance customers across Great Britain in the context of the Bill.

The Bill uses the definition of domestic abuse set out in the Domestic Abuse Act 2021. That Act does not extend to Scotland, where the definition generally used is set out in separate, devolved Scottish legislation. However, for ease of implementation in an area as complex as child maintenance, in which cases frequently fall within more than one jurisdiction in the United Kingdom, the Bill allows for the Act’s definition to apply throughout Great Britain for the purposes of the Bill.

The collection of child maintenance is governed by the same statutory provisions in England and Wales and in Scotland. We are keen to avoid the administrative complexity that could result from different definitions applying in each jurisdiction, but I acknowledge that the legislation will need to sit comfortably alongside devolved legislation dealing with similar issues. We will therefore work with legal colleagues and the Scottish Government to ensure that the policy aim is effectively delivered in Scotland.

Understandably, various colleagues—particularly my hon. Friends the Members for Southend West (Anna Firth), for Hastings and Rye, for Bosworth (Dr Evans) and for Heywood and Middleton (Chris Clarkson)—have raised the issue of charging. Collection charges are applied to all CMS collect and pay cases. The charges are 20% on top of the liability for the paying parent, and 4% of the maintenance received by the receiving parent. Running the collect and pay service incurs costs for the taxpayer. It is therefore reasonable for most parents to contribute towards running an expensive service. However, we recognise that many of the parents whom the Bill aims to support could be among the most vulnerable.