Women’s State Pension Age

Martyn Day Excerpts
Monday 25th March 2024

(8 months ago)

Commons Chamber
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Mel Stride Portrait Mel Stride
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The hon. Gentleman has been in the Chamber, I think, since the beginning of the statement—I am sure he has; he heard the statement, hence he is asking a question—and he will know that the question he asked has been asked now probably a couple of dozen times. The answer is the same. [Interruption.] He chunters from a sedentary position, but the answer is just the same, which is that the responsible thing to do is to look at this highly complex matter. The report was published on Thursday. It is now Monday, early evening. It is not unreasonable to expect the Government—and indeed Parliament, because of the way the report has been laid before Parliament—to look at the detail of the report. As a Department, we gave around 1,000 pages of evidence that informed the report. There are some very important findings within it and to do it justice, we need to look at it carefully.

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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Some 6,900 WASPI women in my constituency, some of whom have lost out by as much as £60,000 and many of them in dire need of compensation, will have found little encouragement in the Minister’s statement. Is it this Government’s policy to dither, delay and deny justice until the 1950s-born women have died off?

Mel Stride Portrait Mel Stride
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I can give a very short answer to that: absolutely not.

Oral Answers to Questions

Martyn Day Excerpts
Monday 23rd January 2023

(1 year, 10 months ago)

Commons Chamber
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Mel Stride Portrait Mel Stride
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I stand by, and make no apology for, our record on encouraging disabled people back into work. We were set a target for dramatically increasing the employment level for disabled people by 2027. We met that target of 1 million new disabled people in work a full five years early. I think that record speaks for itself.

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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2. What recent assessment he has made of the adequacy of social security payments in the context of increases in the cost of living.

Brendan O'Hara Portrait Brendan O’Hara (Argyll and Bute) (SNP)
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9. What recent assessment he has made of the adequacy of social security payments in the context of increases in the cost of living.

--- Later in debate ---
Mims Davies Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)
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The Department has completed the statutory annual review led by the Secretary of State on the levels of state pension and benefits. The outcome of the review was confirmed in a written ministerial statement tabled on 17 November last year. Benefits and pensions will increase by 10.1% in April, subject to parliamentary approval. We understand the pressures that people are facing, which is why this Government have provided cost of living support worth more than £37 billion in 2022-23. In addition, more than £1 billion will be provided in 2023-24 through further cost of living payments.

Martyn Day Portrait Martyn Day
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While the Scottish Government are using their devolved powers to support families through anti-poverty measures such as the Scottish child payment, the Tory Government’s changes to the universal credit administrative earnings threshold will mean that 600,000 more people will risk having their vital payments sanctioned. Instead of preventing vulnerable families from receiving the vital social security to which they are entitled when they need it most, will the UK Government follow Scotland’s lead and match the child payment UK-wide?

Mims Davies Portrait Mims Davies
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The hon. Gentleman talks about the Scottish child payment. The DWP is actively working with the Scottish Government to support its delivery, including by providing data through the Scotland Act 2016. I know that the hon. Gentleman has been holding cost of living events in his constituency. To his credit, he has been working with local jobcentres and the DWP to help people at this difficult time, which I applaud. The anecdotal evidence that I have of the AET changes, from visiting jobcentres, has been incredibly positive. People understand that they can earn more, take on more hours and fill vacancies, and that work is the best route out of poverty.

Oral Answers to Questions

Martyn Day Excerpts
Monday 11th July 2022

(2 years, 4 months ago)

Commons Chamber
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Chloe Smith Portrait Chloe Smith
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I think the hon. Member is wrong to say that the disability employment gap is static at 28%. It is moving in the right direction, which is important to acknowledge. While we have made progress, we need to be able to make more. It is important to recognise what has gone on, in that we have more disabled people in work and the disability employment gap is reducing. We need Access to Work to be a strong part of the solution. There is a great deal of work going on to transform Access to Work to make it even more effective in helping disabled people to start, stay and succeed in work. Those will all be continued priorities of this Government and this Department.

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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3. What steps her Department is taking to support pensioners in the context of the increase in the cost of living.

Guy Opperman Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
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Mr Speaker, I hope to be a better Pensions Minister than the one from whom I have just inherited the job.

The United Kingdom Government have provided £37 billion-worth of support for those most in need, including pensioners. Some pensioners will receive in excess of £1,500 over and above the state pension, which is up this year.

Martyn Day Portrait Martyn Day
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I thank the Minister for that answer, but pension credit figures show that an estimated £1.7 billion goes unclaimed. Not only are 850,000 families missing out on this essential support, but they are also ineligible for the £650 cost of living payment. Will the Minister consider extending the cut-off date for entitlement to that payment to next March? Will the Department finally look at a proper benefits take-up strategy such as the one we have in Scotland?

Oral Answers to Questions

Martyn Day Excerpts
Monday 13th September 2021

(3 years, 2 months ago)

Commons Chamber
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Richard Thomson Portrait Richard Thomson (Gordon) (SNP)
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17. What recent assessment she has made of the adequacy of the level of universal credit received by claimants.

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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23. What recent assessment she has made of the adequacy of the level of universal credit received by claimants.

Will Quince Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
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The Secretary of State is legally required to conduct an annual review of benefits and pension rates to determine whether they have retained their value in relation to the general level of prices and earnings. The uprating process for working-age benefits has traditionally relied on the September consumer prices index figure and, in April 2021, universal credit was increased by CPI of 0.5%.

--- Later in debate ---
Will Quince Portrait Will Quince
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There is no objective way of deciding what an adequate level of benefit should be, as everyone has different requirements. Income-related benefit rates are not made up of separate amounts of specific items of expenditure, such as food or fuel charges. The Government have always been clear that this uplift was a temporary measure, and I gently remind the hon. Gentleman that we spend over £110 billion on benefits for working-age people.

Martyn Day Portrait Martyn Day
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I wonder whether the Ministers can tell us whether any of them actually listened to the evidence of the Work and Pensions Committee last week about hard-pressed families and the effect that universal credit was having on them. If they did, what would they say to their faces about taking £1,040 away from them?

Will Quince Portrait Will Quince
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What I would say is that I am proud that this Government stepped forward at the beginning of the pandemic to put in place the largest cash increase in our welfare safety net to support people through an unprecedented period of economic shock and financial disruption, but as our economy opens up, we have record numbers of vacancies in our labour market—we know that work is the best route out of poverty—and it is absolutely right that we tack our approach to support and empower people into work and to progress in work.

Oral Answers to Questions

Martyn Day Excerpts
Monday 14th September 2020

(4 years, 2 months ago)

Commons Chamber
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The Secretary of State was asked—
Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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What steps she is taking with the Secretary of State for Business, Energy and Industrial Strategy to ensure that vulnerable people have access to welfare benefits through Post Office services.

Guy Opperman Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman) [V]
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Ministers in the Department for Work and Pensions and the Department for Business, Energy and Industrial Strategy worked closely with the Post Office to ensure that vulnerable customers were able to access benefit payments during lockdown. It remains the case that at least 99% of customers with a bank, building society, credit union or Post Office card account can already access their benefit or pension payments at post office branches or post office ATMs.

Martyn Day Portrait Martyn Day [V]
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Some 1.23 million people do not have a bank account. Given the DWP’s decision that new benefits or state pensions will no longer be collected using the Post Office card account, with the scheme officially closing in November next year, how will the Minister ensure that an estimated 300,000 vulnerable people can still access their benefits?

Guy Opperman Portrait Guy Opperman
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Any customer with a building society or credit union account will be able to continue to access their benefit or pension payments at a post office, even after the closure of the Post Office card account, including all bank accounts. There is also the ability to open a basic bank account, for which assistance can be given.

Oral Answers to Questions

Martyn Day Excerpts
Monday 27th January 2020

(4 years, 10 months ago)

Commons Chamber
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Thérèse Coffey Portrait Dr Coffey
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My hon. Friend is right to praise the work that is being done in the west midlands through Andy Street, and I commend her support for it. I shall meet my right hon. Friend the Secretary of State for Housing, Communities and Local Government later this week, and our officials are already working together on a programme to tackle homelessness.

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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The Scottish Government are spending £50 million to ensure that no one has to pay the bedroom tax, which is helping more than 70,000 households to sustain their tenancies. Will the Secretary of State make it her policy to abolish the bedroom tax so that we no longer have to mitigate this unfair policy in Scotland?

Thérèse Coffey Portrait Dr Coffey
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I actually think that the spare room subsidy was an important part of a change to deal with the challenges of homelessness, which we have just been discussing. I absolutely believe that we will continue that policy, but, as ever, when there are problems, part of the role of the discretionary housing payments is to deal with them. The hon. Gentleman will be aware—I think I am right in saying this—that the Scottish Government have not introduced that policy quite yet, but intend to do so later in the year.

Oral Answers to Questions

Martyn Day Excerpts
Monday 7th October 2019

(5 years, 1 month ago)

Commons Chamber
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Patrick Grady Portrait Patrick Grady (Glasgow North) (SNP)
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4. What assessment she has made of the effect of transferring to universal credit on households’ levels of financial resilience.

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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14. What assessment she has made of the effect of transferring to universal credit on households’ levels of financial resilience.

Guy Opperman Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
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Universal credit ensures that support goes to those who need it, allowing 700,000 more people to receive benefits than did previously—this is worth approximately an extra £2.4 billion. Those who move to UC from legacy benefits and whose circumstances remain the same will be eligible for protection of their entitlement at the point of transition.

Guy Opperman Portrait Guy Opperman
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The situation is that this is an assessment period and no one has to wait to receive a UC payment; an advance of up to 100% is available to those in need, and significant funding has gone to Citizens Advice Scotland.

Martyn Day Portrait Martyn Day
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Some 700,000 households yet to move to UC have insufficient savings to cover that five-week wait, which clearly proves that UC is not working. Will the Minister consider making that advance payment to claimants a non-refundable first UC payment?

Guy Opperman Portrait Guy Opperman
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As the hon. Gentleman is aware, there is a managed migration pilot in Harrogate, where we are learning lessons, and I take on board the points he makes. That completes at the end of 2020 and, obviously, everyone not in the pilot stays on the legacy system as it currently runs.

Child Maintenance Service: Payment Recovery from Absent Parents

Martyn Day Excerpts
Wednesday 2nd October 2019

(5 years, 1 month ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
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I beg to move,

That this House has considered the performance of the Child Maintenance Service in recovering payments from absent parents.

I would hope that everyone agrees that parents should continue to take financial responsibility for their children after the break-up of a relationship. We must understand that relationship break-up can often be a disturbing and distressing time for everybody, often leaving behind a great deal of bad feeling. It is not easy in such circumstances to come to an arrangement that is fair on both partners and, most of all, fair on the children. The criticisms that I will be directing today at the Child Maintenance Service, and its predecessor the Child Support Agency, should not be taken as an indication that I do not appreciate the difficult circumstances in which it has to operate.

Many absent parents do their best to care for their children, and I do not want to give the impression that everybody whose relationship has broken up is trying to avoid their responsibilities. Sadly, however, some people see the break-up of a relationship as an opportunity to abandon all responsibilities for their children. The Child Maintenance Service owes it to those children and to the resident parent to ensure that the absent parent complies with their legal and moral responsibilities. We are not talking about forcing somebody to pay to give their children a life of luxury. Indeed, we are often talking about forcing somebody to pay money that they can well afford in order to keep their own children out of poverty. The Child Maintenance Service is sometimes not good enough at getting money from people who can afford it, and we sometimes see it pursuing people for payments that they quite clearly cannot afford.

I am grateful to several organisations that have provided me with background information not only for this debate, but to support my caseworkers in dealing with a significant number of requests for help from constituents. Fife Gingerbread does an enormous amount of good work in my constituency and elsewhere in Fife. My caseworkers also find the Child Poverty Action Group’s child support handbook indispensable, and that will be the same in every constituency across these islands.

Several individuals have also shared their experiences with me. I do not have time to go into any of them in great detail, and some of cannot be aired in public for reasons of confidentiality. In addition, some of the issues that have been raised—serious though they are—do not really fall within the remit of this debate because they relate, for example, to the regulations around exactly how somebody’s income is determined, which causes a great deal of anger, sometimes among the paying parents and sometimes for the receiving parents. I make that point because it will not be possible to go into most of these cases in any kind of detail in the time available. I have also been approached by several colleagues who want to speak in the debate or to intervene, so I want to give time for that as well.

I see too many cases in which it is obvious that a parent is determined to avoid their responsibilities and that they can get away with it—sometimes for years at a time—which is just not good enough. It is far too easy, for example, to hide income from the Child Maintenance Service, which too often leaves it to the resident parent to produce the evidence that their ex-partner is effectively committing fraud. That is bad enough at the best of times, but if the resident parent has been the victim of domestic abuse or financially coercive and controlling behaviour, it is wholly unacceptable to make them responsible for ensuring that the other parent of their children complies with their legal responsibilities.

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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My hon. Friend is making a powerful speech on an issue that I have raised in the past. Several constituents who are the resident parent have not received any money for years, and a common theme or trend seems to be that the paying parent claims to have given up paid work or become self-employed in order to hide their income. That totally thwarts the whole purpose of the Child Maintenance Service. Does my hon. Friend agree that the CMS must pull out all the stops to find a way to prevent that from happening, maintain its charter commitment and ensure that the child is at the heart of everything?

Peter Grant Portrait Peter Grant
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Absolutely. I do not think we will ever have a set of regulations that everyone agrees with. If a relationship between two people has completely broken down, the one who is paying will think they are paying too much, and the one who is receiving payment will think they are not getting enough. Surely, if the rules are based on someone’s income, however, it should be no easier for them to hide their income from their children than it is to hide it from the Inland Revenue.

I have assisted constituents affected by HMRC loan charge, as well as a constituent who was pursued to a ridiculous degree for a relatively small debt that they turned out not to owe to HMRC. Many resident parents in my constituency would like a fraction of that diligence to be used by the CMS when it chases down money that is owed not to the Government but to children who often desperately need it.

Child Maintenance Service

Martyn Day Excerpts
Tuesday 23rd July 2019

(5 years, 4 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

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This information is provided by Parallel Parliament and does not comprise part of the offical record

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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I beg to move,

That this House has considered the effectiveness of the Child Maintenance Service.

It is a pleasure to serve under your chairmanship, Sir Edward. I thank everyone for attending, and the House of Commons Library and the digital engagement team for their contributions to the debate.

Members are likely all aware that the Child Maintenance Service, which administers the 2012 child maintenance scheme, is frequently raised by various means in this place. This year alone, up until the end of last week, 28 cross-party MPs, including me, have asked a total of 109 parliamentary questions directly related to child maintenance. On the Floor of the House, three MPs have suggested holding a debate. All those instances correlate to the processes and the performance of the Child Maintenance Service, which is failing many constituents across the British Isles—both paying and receiving parents.

Edward Leigh Portrait Sir Edward Leigh (in the Chair)
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Order. Could you speak a bit louder, please? The acoustics are not very good in here.

Martyn Day Portrait Martyn Day
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No problem—I appreciate that.

The last request for a debate on improving the Child Maintenance Service was made by my hon. Friend the Member for Lanark and Hamilton East (Angela Crawley), who secured an Adjournment debate on the Child Maintenance Service some 20 months ago, to highlight concerns about the inadequacies of the service that she had become aware of through her constituency work. Those concerns include the struggles and inconsistencies faced by constituents dealing with the Child Maintenance Service, as well as sensitive safety issues faced by domestic abuse survivors.

I commend my hon. Friend’s efforts to remove the 4% charge that parents with care who have survived domestic abuse have to pay when they are left with no option but to use the collect and pay service. Besides effectively meaning that 4% of children’s maintenance entitlement goes to the Treasury, it is also a means for an abusive paying parent to perpetuate their control over the receiving parent, thereby continuing the cycle of abuse. As my hon. Friend highlighted in November 2017, it is commonly known that one of the biggest impediments to domestic abuse survivors achieving independence from the abusive relationship relates to financial control.

All those months ago, the Minister responding to my hon. Friend’s debate, the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), advised that the Government aimed

“to take immediate action to re-establish compliance wherever a parent fails to pay what they owe”

and that one of their priorities was ensuring that action was taken

“to maintain compliance in the statutory scheme, so that…children can benefit from maintenance payments.”—[Official Report, 16 November 2017; Vol. 631, c. 701-704.]

It will shortly become evident that that prioritisation is not happening, certainly in the cases that I will raise.

Another way the Child Maintenance Service has been raised is through a private Member’s Bill sponsored by my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows). The Child Maintenance Bill aims to remove certain fees charged by the Child Maintenance Service, and to make provisions for child maintenance payment calculations. The Bill was read the First time on 6 November last year, but still awaits its Second Reading. Perhaps the time has come for it to make some progress.

Furthermore, just last month the Child Support (Miscellaneous Amendments) Regulations 2019, which amend child maintenance legislation to enable the delivery of the child maintenance compliance and arrears strategy, were approved in the House. The then Minister, who is also present today, announced that the Child Maintenance Service was working well, and pointed to the

“tough new sanctions for those who evade their responsibilities”.—[Official Report, 11 June 2019; Vol. 661, c. 583.]

However, I called for today’s debate because, as its regular appearances in parliamentary matters, which I have just highlighted, clearly show, the Child Maintenance Service might be working well for some but is certainly not working well for all. The debate requests that relate in particular to the processes and performance of the Child Maintenance Service show that many constituents across the British Isles, both paying and receiving parents, are being let down by the current system.

I warmly welcome the introduction of tough new sanctions for those who evade their parental responsibilities, but if the enforcement actions are not applied they are a blunt tool that does nothing to encourage paying parents to meet their obligations. We must not see a repeat of the National Audit Office report of March 2017, which noted that, compared with 2012-13, in 2015-16 there had been, with regard to the use of some types of collection and enforcement action in respect of arrears due for the 1993 and 2003 schemes, a 69% decrease in the use of deductions from earnings orders; a 73% decrease in bailiff referrals; a 77% decrease in liability orders, which allow enforcement powers to be used; and a 98% decrease in prosecutions.

Today’s debate will consider the difficulties faced by so many of our constituents and the reasons why the Child Maintenance Service is failing them. In doing so, our discussions will hopefully also consider what can be done to remedy those failings, so that all children can benefit from receiving maintenance payments that are consistent and compatible with the paying parent’s income level.

In my constituency alone, I have been contacted by 55 people who have essentially reached crisis point due to the treatment that they have received because of the Child Maintenance Service procedures. Those 55 cases represent the tip of the iceberg in my opinion. It has an impact across extended families as well. A father of one parent with care felt compelled to speak to me independently to describe the financial and emotional devastation that his daughter and grandchildren were experiencing because the paying parent was doing everything in his power to dodge his responsibilities.

I will momentarily discuss that case in more detail, and others in my constituency, but there must be a fundamental deficit in any system that allows that to happen. We must do all that we can to address that deficiency. The numbers that I am seeing suggest hundreds of detrimentally affected family members in my constituency alone, and tens of thousands across the UK. Clearly, the ineffectiveness of the Child Maintenance Service has a negative impact on a significant number of people.

That is certainly supported by the nearly 1,000 people who responded to the House of Commons Facebook post and the Mumsnet thread that invited comments ahead of the debate. I thank each and every person who made the effort to share their experiences on those forums —many of them were quite traumatic tales. Unfortunately, time limitations restrict me from disseminating individual accounts, although I will highlight the stories of my constituents, which mirror many of the issues raised on those forums. However, I can state that almost none of the paying and receiving parents who responded had had a positive experience in dealing with the Child Maintenance Service. Recurring themes included problems arising from payments being calculated on gross income and on incorrect and out-of-date information, and how calculations result in poverty and debt, which lead to mental health impairment and even suicidal tendencies. Additionally, users experience inconsistent information and standards of service.

My constituent Susie first approached me nearly four years ago, in September 2015, after the father of her children moved to self-employed status and dramatically decreased the maintenance he paid for his children’s upkeep. Indeed, during the non-resident parent’s change of employment status he paid nothing towards his children’s upkeep for almost a year. Susie suspected that he was not being truthful about his declared earnings, as they did not equate with the lifestyle he enjoyed. She approached the Child Maintenance Service to investigate but was duly advised to contact Her Majesty’s Revenue and Customs, which in turn told her to contact a private investigator—an unlikely financial priority when someone is struggling to provide for their children. HMRC procedures are arguably another matter for debate in this place, but that will have to wait for another day.

Before the 2012 child maintenance scheme was introduced, the resident parent could apply for a variation if a non-resident parent had either a lifestyle inconsistent with their income or assets of more than £65,000. In May 2017, the Work and Pensions Committee called for those provisions for parents to challenge child maintenance awards on the grounds of assets and lifestyle inconsistent with income to be reinstated—a call that I reiterate and support—and two private Members’ Bills have been introduced since April 2017 that have, thus far unsuccessfully, sought to implement such a change. However, although the Government’s position is that they have

“no plans to reintroduce this provision”,

they have, since December 2018, introduced a new notional income criterion that they say would

“be useful in a range of scenarios including where we believe paying parents have made an effort to use complex financial arrangements to evade their responsibility.”

At least one step has therefore been made in tackling that type of liability dodging, but it needs decisive action to back it up, not the decrease in action that I have witnessed.

Gavin Newlands Portrait Gavin Newlands (Paisley and Renfrewshire North) (SNP)
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I am grateful to my hon. Friend for setting out the issues so clearly. I have a constituency case at the moment in which the absent father’s business is clearly doing very well—we just have to look at his Facebook page to see how much business is coming his way—yet his employer and the director of his business, who happens to be his mum, claims that the business has no income at all. That is not an uncommon situation. Does my hon. Friend agree that more has to be done to punish those who would try to get round the current system to get out of paying for their own children?

Martyn Day Portrait Martyn Day
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I agree with everything my hon. Friend says. That type of scenario is one of the recurring themes that I have seen repeatedly in the 55 cases that my office is dealing with.

After five months and numerous interventions, it was eventually accepted by the Department for Work and Pensions’ financial investigations unit that the paying parent did have additional unreported income, yet my constituent’s hardships continued when she was asked to complete a variation form that would start an investigation, as there had been no record of contact before 12 February 2016. My office forwarded a complaint that was finally responded to 10 months later, in December 2016.

Six months after that, Susie found herself in a similar situation and had to make another formal complaint to the Child Maintenance Service because of its inefficiency, which resulted in a second conciliatory payment being made to her. Then, in October 2017, she won an appeal that the paying parent had raised, and wrote to the Child Maintenance Service with some queries about the award. However, despite numerous calls and letters, she received no response until January 2018, after seeking my intervention again.

I could continue to relay the consistent and ceaseless catalogue of errors that constitutes Susie’s case; suffice it to say that, currently, the paying parent has raised yet another appeal, while Susie is still waiting to receive the award from the first tribunal and has had to make another formal complaint, due to the Child Maintenance Service again ignoring her correspondence and thereby not complying with its own guidelines. Four years down the line, and around 90 recorded interventions on my constituent’s case later, there is no conclusive resolution to her difficulties.

Despite the availability of a spectrum of collection actions and enforcement powers to collect arrears, they are seldom used. Indeed, the single parent charity Gingerbread has contended that there can be

“a lot of prevarication and foot dragging”

before the CMS uses its powers to collect arrears; the Work and Pensions Committee said in May 2017 that the data published by the Child Maintenance Service

“reinforced the impression provided by stakeholders that the CMS is reluctant to use its enforcement powers.”

Sadly, Susie’s is not an isolated case. Another constituent, Anne-Marie, contacted me last August after enduring three years with no financial support from her child’s father. In this case, the paying parent had been so unco-operative with the Child Maintenance Service that he had been put on to a deductions from earnings order, where his employer was obliged to make maintenance payments directly from his wages to the Child Maintenance Service. However, to avoid the 20% charge that that method of payment incurred, the paying parent requested to go on to the direct pay system, cutting out both his employer and the Child Maintenance Service, and leaving the receiving parent dependent on his sense of fairness. Without my constituent’s permission, his request was granted.

Anne-Marie eventually received an apology from the Child Maintenance Service for doing that, but the admission of regret did not prevent her difficulties from escalating. The Child Maintenance Service did not tell the paying parent’s employer that it had changed the payment method, resulting in another payment being sent to it that it refused to pass on to the receiving parent. By August, when Anne-Marie contacted me, she had not received any child maintenance for nearly six months and that continued, despite the deductions from earnings order being reinstated, for another four months. By the time she finally received a payment, nearly 10 months had passed.

The reinstated payments were short-lived and they lapsed again after a payment on 25 January 2019. Instead of the service complying with the evidence given by the DWP to the Work and Pensions Committee in 2016 and 2017 that

“all cases move across to enforcement immediately after the first missed payment was missed”,

Anne-Marie had to contact the service herself on 4 March. She discovered that, once again, no action had been taken. On 11 March, she wrote to me again, explaining the reality of her frustrations. I quote from her correspondence:

“I am finding it difficult to get in constant contact with them as I am on hold for at least 20 minutes before I even get through to someone then I need to explain the whole case to a stranger which then takes at least 30/45 mins. I cannot always do this during my work time and after work they are reduced to skeleton staff at CMS and are unable to help. I am at my wits’ end and do not know how I can progress with this.”

This was a common sentiment in many of the cases.

One of my staff members contacted the Child Maintenance Service on 26 April to try to understand the failings in this case. When she asked why immediate action was not being taken when the deductions from earnings order was not being complied with, she was told that although the CMS is alerted as soon as a payment is missed, it does not have the resources—the staff—to deal with it immediately, as the staff work chronologically. When she further enquired why no enforcement action had been taken against the employer, despite it not complying three times, she was told that any court action raised is stopped if there is subsequently compliance, which means the whole cycle has to start again if the employer makes another payment and then it stops again. It is a constant stop/start process. My staff member was ultimately advised that the procedures for enforcing the payment of arrears in child maintenance were not being adhered to because the operational powers laid out in legislation fall short in practice.

Speaking to Anne-Marie again on 10 July revealed that, after all this time and despite my involvement, things have still not improved for her. That is hardly surprising. During the Adjournment debate secured by my hon. Friend the Member for Lanark and Hamilton East, the Minister said:

“We are continuing to increase the operational resources allocated to enforcement, with 290 full-time enforcement case managers in place as of September 2017.”—[Official Report, 16 November 2017; Vol. 631, c. 701.]

In answer to a written parliamentary question, I was advised last week that the overall head count of part-time and full-time enforcement case managers on 30 June 2019 equated to an overall full-time equivalent resource of 220.91, with 104 being employed full time. Clearly, operational resources have not been increased; they have actually decreased. It is therefore also unsurprising that Department for Work and Pensions figures show that arrears owed in respect of child maintenance rose by more than £7 million in just three months, between December 2018 and March 2019.

It is not only the receiving parents who are being failed by the Child Maintenance Service. One of my constituents, Craig, had a shortfall of direct payments due to work circumstances. The shortfall amounted to about £90, which he paid after the Child Maintenance Service contacted him. He contacted me in February, because even though he provided proof of payment to the CMS several times, it continued to arrest his wages without any warning. Three weeks later, the Child Maintenance Service found the evidence that Craig had in fact paid the outstanding amount that he had been contacted about. However, he was not refunded the 20% charge that had been incurred, or even offered an apology.

It has been well documented that the 2012 child maintenance scheme was designed to encourage parents to work together following separation and, where possible, make private, family-based arrangements for the child. That premise was reiterated in the Commons Chamber when the statutory instrument to the child support regulations was commended to the House last month. Yet, although both Craig and the receiving parent in this case agreed that direct pay would work best for them, that option was not facilitated by the Child Maintenance Service.

On 6 March, a payment breakdown was requested to clarify what payments were to be paid and when they were to be expected and, up until yesterday, that had still not been received. Craig’s experience has been that he was not listened to and was, in fact, harassed; it made him feel that the system was biased against the paying parent. That feeling has been echoed in correspondence that I have received over the last four days from people in other constituencies all over the British Isles—one of whom actually said that the Child Maintenance Service

“encourages parental alienation and assists financial abuse and coercive control.”

I find it deeply regrettable that the situations I have highlighted here today, and those I have very recently become aware of but have been unable to highlight due to time constraints, indicate that the Child Maintenance Service is not fulfilling its charter commitments to keep the interests of children at the heart of everything it does, by being responsive, reliable and respectful of the best ways to manage individual cases.

In each of the three constituency cases that I have highlighted, and in others beyond, the lack of communication between the Child Maintenance Service and the paying and receiving parents has been a significant factor. That could be so easily remedied, yet would be an important amelioration for the service users. I hope the Minister will take that on board.

--- Later in debate ---
Martyn Day Portrait Martyn Day
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I am grateful to all the hon. Members who have come along and taken part today. There were many common themes, and, although I have no doubt that the system works for many, there remains a significant minority for whom it does not. We heard repeated themes of a lack of communication and of problems requiring faster action, greater use of enforcement powers and more action against those who are self-employed and are hiding their income. I am grateful for some of the points the Minister made, but the fact that the Financial Investigations Unit has existed since 2014 suggests that clearly there are still problems. I hope that, with the additional staffing it has gained, we will see further action in the future.

Question put and agreed to.

Resolved,

That this House has considered the effectiveness of the Child Maintenance Service.

Work and Pensions

Martyn Day Excerpts
Tuesday 9th July 2019

(5 years, 4 months ago)

Ministerial Corrections
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
The following is an extract from Work and Pensions questions on 1 July 2019.
Martyn Day Portrait Martyn Day
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Does the Minister think it right that the UK has the lowest state pension in the developed world?

Guy Opperman Portrait Guy Opperman
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The reality of the state pension in this country is that it has risen by £1,600 in real terms through the triple lock. It also needs to be looked at in the context of the significant high private pensions that, thanks to automatic enrolment and other reforms, show that this is comparable to many other European countries.

[Official Report, 1 July 2019, Vol. 662, c. 913.]

Letter of correction from the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman).

An error has been identified in the response I gave to the hon. Member for Linlithgow and East Falkirk (Martyn Day).

The correct response should have been:

Martyn Day Portrait Martyn Day
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Does the Minister think it right that the UK has the lowest state pension in the developed world?

Guy Opperman Portrait Guy Opperman
- Hansard - - - Excerpts

The reality of the state pension in this country is that it has risen by £1,600 in cash terms through the triple lock. It also needs to be looked at in the context of the significant high private pensions that, thanks to automatic enrolment and other reforms, show that this is comparable to many other European countries.