Child Maintenance Services

Sarah Green Excerpts

Tuesday 17th January 2023 Westminster Hall

[Sarah Green (Chesham and Amersham) (LD)]

It is a pleasure to serve under your chairmanship, Mr Twigg. I thank my hon. Friend the Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for securing this important debate. In the past year, I have observed a marked increase in the number of constituents contacting me to share the difficulties they are having with the Child Maintenance Service. I would like to say at the outset that I echo the comments made about the individuals at the end of the hotline desperately wanting to help and to be supportive. It is the system itself that I have an issue with.

The first point I want to raise is about the need for improvements in customer service and case management. The CMS is, in the words of one constituent,

“absolutely too difficult to deal with.”

People are left waiting on the phone for hours to speak to caseworkers, only to be told that they are unable to help with the query. Electronic communications often leave much to be desired. One constituent told me they receive updates at 10 pm on a Friday, resulting in a weekend of stress, as they are unable to seek further information or take action until the following Monday. Many individuals relying on the CMS are already under immense emotional strain, and the service should not add to that burden.

When things go wrong, they are not always addressed quickly enough. One particularly concerning example came from a constituent who, despite taking over custody of his two children in March last year, is yet to receive any child maintenance payments for one of them. We are told that the failure is down to an IT error—the child’s middle name is used in one location and not in another. It is “computer says no” gone mad. We are told the CMS is working to resolve the issue, but my constituent first raised it in July, and it still is not resolved. Given the serious financial implications that the error could have, it should be resolved urgently, particularly given the rising cost of living. It is just not good enough that a parent has not received the child maintenance they have been owed for so long because of an IT error.

Several of my constituents do not feel that the service has sufficient power to ensure that paying parents contribute what is owed to the welfare of their child. In one case, a constituent’s ex-partner has not been required to make payments because, as far as the CMS is concerned, they are not working. However, they are simply not working in the United Kingdom, while receiving a sizeable income from assets in Australia.

In a similar case, another constituent’s ex-partner qualified for the nil rate of child maintenance due to a failure to take into account the rental income they earned from properties. There appears to be a real difficulty with CMS accounting for income that takes any form other than a regular salary or wage. That allows paying parents who are asset-rich to get away with not paying towards the care of their children. What steps are being taken to improve communication between HMRC and CMS?

Finally, I want to raise the issue of the collect and pay service. I have encountered several cases in which payments made using direct pay have been used to inflict continuing economic abuses and coercion on victims of domestic violence, so I welcome this morning’s news that the Government have accepted Dr Samantha Callan’s recommendation to amend legislation to ensure that direct pay cases can be moved to collect and pay when there is evidence of abuse. I wait with interest to hear more from the Government on how they will facilitate that and how they plan to define evidence of abuse.

I am, however, disappointed that the Government have no intention of removing the 4% deduction applied to the sum received by the receiving parent under the collect and pay service. I raised the issue on behalf of one constituent in a letter to the Secretary of State in November. The reply I received from the Minister for Pensions was concerning. It stated:

“there are no plans to abolish the 4 per cent collection charge for receiving parents. This charge only applies to the Collect and Pay service and is intended to provide a parent with an incentive to use the Direct Pay service which has no ongoing fees.”

I find the insinuation that receiving parents require an incentive to stay on direct pay troubling, when the move to collect and pay generally occurs due to the failure of the paying parent to meet their financial obligations. It appears that CMS is deliberately using the 4% penalty as a deterrent, which seems misplaced. This is particularly pertinent in cases of domestic abuse, as it leaves victims facing the choice of either dealing with their abuser directly or risking a decrease in the money they receive to care for their child. I am disappointed that the Government are not looking to change that policy, and I ask the Minister to reconsider.

Ultimately, we must remember that the purpose of the Child Maintenance Service is to ensure that the children of separated parents receive the financial support they deserve. The system should work with them, not against them.