Child Maintenance Service: Payment Recovery from Absent Parents

Stephen Timms Excerpts

Wednesday 2nd October 2019 Westminster Hall

[Peter Grant]

The hon. Lady makes a valid point. Those of us who are old enough to remember it would do well to recall that the original version of the Child Support Agency was set up not to help the children, but as a way of getting somebody else to pay the children’s maintenance costs to save the DWP or its predecessor a wee bit of money. That legacy can be seen sometimes in the fact that the CMS, through the DWP, is simply not as enthusiastic about pursuing money that is owed to other people as it would be if it were pursuing money owed to itself.

[Stephen Timms (East Ham) (Lab)]

Will the hon. Gentleman give way?

[Peter Grant]

I think I can give way once more, and then I will have to move on.

[Stephen Timms]

I was looking through my records this afternoon, and I saw that I wrote to the Child Support Agency on behalf of one of my constituents on 30 September 1999. She finally received a first, partial payment on 1 August 2018. It took 19 years. Is the hon. Gentleman as unsurprised as I am that people, as he says, just give up?

[Peter Grant]

I just wish that I could wait 19 years before paying the bills that come into my constituency office with more regularity. I would love to think that the example the right hon. Gentleman raises was unique, but I do not think it is. What is the point of a child maintenance system that does not pay anything to the child until they are 18 or 19 and have left school, and possibly left home and gone to university? The children need the money when they are two, three and four years old, not when they are in their 20s. In a case I mentioned earlier, the children were literally grown up and had left home. Some were married, some were at university. As a point of principle, the parent was determined to carry on fighting, but he knows perfectly well that the money will not make any difference to his children. They have had the experience of being brought up when money was desperately tight.

A completely incomprehensible aspect to the write-off scheme is that the process the Child Maintenance Service has to go through before it can write off historical arrears depends, reasonably enough, on the level and value of the arrears, but that, by its own admission,

“significant policy, operational and IT issues beset the 1993 and 2003 schemes which contributed to the build-up of considerable arrears of unpaid maintenance”.

In another document, it admitted that it cannot always be sure how much the arrears are. How can it be fair for the CMS to say that it can write off an amount of arrears because it is small enough within the scheme that it does not need the receiving parent’s permission, and at the same time to say, “We don’t really know how much the arrears are, because our record-keeping system was so appalling in the past”?

A great deal more could be said, but I know that colleagues want to speak as well, so I will bring my comments to a close. First, however, I want to add something that was not in my original speech. I decided to do that when I realised that, while we are having this debate, our colleagues in the main Chamber will, hopefully, be agreeing to the Second Reading of the Domestic Abuse Bill.

I cannot go into much detail about some of the cases I have had, because people are still under threat from ex-partners, but I hope the Minister can explain how someone whose partner has been convicted repeatedly of assault can hide their income from the Child Maintenance Service for more than three years after the CMS has been alerted to where the money was, where it was going and how it was being hidden. It was hidden in such a way that, if I had the same authorisation to visit premises and to make inquiries as the CMS and HMRC, I could have found it, as any of us could, within 20 minutes. It was not an elaborate offshore scheme; it was a very simple accounting practice that HMRC and the Child Maintenance Service know about.

How can it be that someone who has been and still is a victim of coercive financial control is told that it is entirely up to her to find evidence that her ex-partner is committing fraud against her and probably against HMRC as well? How can that be acceptable? Why is the Child Maintenance Service not working more closely with HMRC, so that when they get information that points clearly to a large-scale criminal evasion of tax by somebody whose address and place of work is a matter of public record, they can take action? How can it take three years for them even to begin an investigation? When the Minister sums up, I hope he can answer that question, as well as responding to the other comments I have made.

--- Later in debate ---

[Stephen Timms (East Ham) (Lab)]

I congratulate the hon. Member for Glenrothes (Peter Grant) on securing the debate. I would like to say a little more about the case I referred to in an earlier intervention.

By the time of the letter I wrote on behalf of my constituent, Mrs A, on 30 September 1999, the father, Mr A, had been assessed as being due to pay just over £100 per week towards child maintenance. He never paid. He claimed to be on a very low income. He claimed that he had absurdly high housing costs. At one stage, confronted with incontrovertible evidence that he was working, he claimed to be doing so free of charge. He is actually a prosperous and busy builder, who owns his own large home.

I was more or less continuously in touch with the Child Support Agency, its successors and Ministers for 19 years on my constituent’s behalf. There was a short period when she was distracted because of the ill health and later the death of her mother. However, she showed extraordinary ingenuity and determination in compiling evidence of Mr A’s true circumstances. Without that evidence, I do not think that he would ever have been forced to pay at all. He was absolutely determined not to pay. He spent a fortune in legal costs. If only that money had gone to his child, things would have been very different. He made three small contributions in 2003, amounting to just over £1,000, and that was after he had lost three tribunals in succession and appealed against the decision each time. But other than those three small payments, he refused to pay any money.

By December 2013 it had been established that Mr A owed £54,000: £15,000 was due to Mrs A; and £39,000 was due to the Government, to reimburse benefits that should not have been paid. It then took another five years for that demand to be enforced. My constituent finally received the £15,000 on 1 August 2018, 19 years after she had first approached me. The system completely failed to deliver the support that she and her son were entitled to throughout his entire childhood. As a result, he grew up in much more straitened circumstances than he should have.

The point that I put to the Minister is that surely the Government must act to ensure that an absent parent can no longer use legal chicanery to avoid their responsibilities for 20 years.