Child Maintenance Service

Sally-Ann Hart Excerpts

Tuesday 27th February 2024 Westminster Hall

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

It is a pleasure to speak under your chairmanship, Sir Charles. I congratulate the right hon. Member for East Ham (Sir Stephen Timms) on securing the debate on this important issue. The Child Maintenance Service can play a vital role in lifting children out of poverty, but despite significant improvements since 2012, further reforms are needed.

Last summer, I was delighted that my private Member’s Bill, which ensures that victims of domestic abuse can receive child maintenance without contact from their abuser, received Royal Assent. The Child Support Collection (Domestic Abuse) Act 2023 will allow the CMS to intervene in cases where abuse is evident, using its powers to collect and make payments. That set-up, “collect and pay”, is already used by about 37% of parents using the CMS. It provides extra protections for parents who have experienced domestic abuse by managing payments and avoiding the need for contact, preventing perpetrators from inflicting financial abuse and control. It builds on the CMS’s existing procedures to protect both the paying and receiving parents who are vulnerable to domestic abuse, ensuring that more children in separated families are supported.

The commencement of the 2023 Act, as already highlighted, is reliant on secondary legislation to be developed and approved. When I contacted the Minister in January, the consultation details were being finalised—perhaps this Minister can update me on that. That Act and the Child Support (Enforcement) Act 2023, brought in by my hon. Friend the Member for Stroud (Siobhan Baillie), provide the basis for the CMS to act swiftly, progressing enforcement action faster with the aim of getting money to children more quickly, establishing compliance, preventing further arrears and bolstering domestic abuse protections for parents. I look forward to the secondary legislation coming into force to give effect to those two Acts as soon as possible.

However, I have a point to make about the collect and pay service: the CMS charges the paying parent 20% of the maintenance collected, and the receiving parent forgoes 4% of the collected money. It is not right that a victim of domestic abuse must effectively pay for the privilege of being abused. They should not be penalised by the fees, which should be scrapped. In addition, as per the recommendation of the Work and Pensions Committee, to help parents on low incomes there should be means testing for collect and pay fees. The fees should not apply to the lowest-income households. The children’s needs must come first, and it is important that available family moneys are for the maintenance of children to help lift them out of poverty.

Improving the effectiveness and speed of enforcement is also key. We are all aware of the fraudulent efforts of some parents who seek to avoid paying for their children, and the complication that arises when children live with both parents. For example, I have a current case with four children. Three of them live with parent A, who is not working and claims benefits, and should pay child support to parent B for one child, while one lives with parent B, who is working and pays child support to parent A for three children. Parent A has not been paying child support to parent B. Parent B cannot deduct the payment from the child support she is paying to parent A, because they are considered to be two different cases and there is no linking up. Parent B is struggling and the CMS cannot seem to get its head around it. There seems to be a need for better co-ordination within the CMS, as well as with other departments such as the family courts, to access financial information when non-resident parents are actively seeking to avoid paying maintenance. Information sharing is key, and better IT is also needed to enable joined-up enforcement activity. All public services need to remember that they are dealing with people who are often struggling.

I attended a departmental briefing in November last year with the Minister, who outlined the work in train to increase enforcement action. I welcome the further steps to improve the CMS, including the liability orders consultation to speed up enforcement action, the removal of the £20 application fee and longer-term changes. The scrapping of the £20 fee to the CMS signifies a shift towards inclusivity and accessibility. The fee can deter parents, especially those in vulnerable situations.

All parents need to take financial responsibility for their children. It is not fair on the children if they do not receive the support that they are due for essential food, clothing, education and healthcare. Financial support is also vital to reinforce a child’s overall quality of life, and their sense of security, wellbeing and stability. Knowing that both parents care about them and for them fosters emotional wellbeing. The CMS process must not add delay or hardship. Streamlining processes, improving enforcement and going after parents who will do anything to get out of paying for their child will help create a fairer system and provide financial security for children and parents.