(7 years, 7 months ago)
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The right hon. Gentleman makes an absolutely valid point. That is exactly what I am trying to argue. We should chase arrears; not to do so seems to fly in the face of common sense and natural justice.
Members of the public, and indeed Members of this House, may not be aware that during the switch from CSA to CMS case history is not transferred, leading to a loss in accumulated knowledge that wastes resources and could allow a non-resident parent another chance to renege on their payments. Despite waiting years for an effective service that will proactively seek to collect owed maintenance, these parents with care and their children are being forgotten, with no option for recourse. If debts are uncollectable or unlikely to be collected, parents must be made aware of that. Additionally, if the UK Government are unwilling or unable to take the steps to secure children their rights, they must compensate receiving parents for their failings.
Although the CMS is taking the approach of focusing on current maintenance, it is also failing in that regard. Most arrears were accumulated under the CSA. However, since the launch of the CMS in 2012, nearly half of paying parents have been allowed to accrue arrears. As I have said, those in direct pay are assumed to have paid the full maintenance. Given that 70% of CMS cases come under direct pay, compared with just 33% of CSA cases, the magnitude of the problem under CMS is likely to be far larger than the numbers show.
Just because parents agree to pay, it does not mean they will fulfil their obligations. Under the CSA, between January and March 2016, one quarter of paying parents did not pay the full amount due. Of that number, two thirds paid less than half or nothing at all, which demonstrates that the priority of focusing on the payment of current maintenance is not being met. This Government’s strategy is failing.
Stringent criteria must be fulfilled before CSA debts will even be considered for collection under the Child Maintenance Service: a parent must open a CMS case, and CSA arrears payments must have been received in the last quarter before moving to the Child Maintenance Service, or the parent must explicitly ask for those arrears to be collected.
The Child Maintenance Service process is extremely difficult to understand and is often not communicated properly to parents. For example, DWP figures show that 17% of those using direct pay whose payments stopped or never even started were not aware that the CMS could even pursue payments for them. Similarly, 15% did not even know about the collect and pay service. Shockingly, a recent report from PayPlan found that more than half of single parents did not even know their child was eligible for support from their absent parent. Communication with parents about services available to them and their rights is lacking; they need to be informed.
The CMS needs not only to take action to collect historical arrears, but to make parents aware of their rights and of what the CMS can do to assist them. A variation claim—the main tool for receiving parents to ensure that their ex-partners’ proper income is taken into account—is kept secret. The cynic in me believes that that information is intentionally withheld to reduce the likelihood of any sort of action being taken.
Taking simple measures such as providing written breakdowns of arrears, how they were accrued and what options are available to people would go a long way towards improving parents’ interaction with the service and awareness of their rights.
I congratulate the hon. Lady on securing this very important debate. Is she aware that in Northern Ireland, 40 members of staff in the Department for Communities who deal with child maintenance are apparently to be laid off? The Department will find itself without experienced staff when it should be ensuring that money goes from absent parents to the children who urgently require it.
I present a petition on behalf of the residents of South Down relating to the implementation of the 1995 and 2011 Pensions Acts. The petition that I am presenting is identical to the one presented by the hon. Member for West Dunbartonshire (Martin Docherty-Hughes). He has already referred to the content of that petition, so I will not read it all out.
The petition states:
The Petitioners therefore request that the House of Commons urges the Government to make fair transitional arrangements for all women born on or after 6 April 1951 who have unfairly borne the burden of the increase to the State Pension Age.
The Petition of residents of South Down.
[P001946]
I present a petition on behalf of residents of the Motherwell and Wishaw constituency and others who kindly signed the petition while it was there in my constituency. I am grateful for the chance to present this petition calling for fair transitional arrangements for 1950s-born women affected by changes to the state pension age. The text of the petition has already been read by my hon. Friend the Member for West Dunbartonshire (Martin Docherty-Hughes).
I should declare an interest. I am very fortunate to have been born a year before the date that applies for the change to pension arrangements, and I feel a deep obligation to those women, some of whom came to my constituency office suffering real hardship. As a result of what has happened to them, some of them have had to apply for help from the Royal Society for the Relief of Indigent Gentlewomen of Scotland to raise their incomes.
The Petition of residents of Wishaw and Motherwell.
[P001945]