Child Maintenance Service

Stephen Timms Excerpts

Tuesday 27th February 2024 Westminster Hall

[Sir Stephen Timms (East Ham) (Lab)]

I beg to move,

That this House has considered the Child Maintenance Service.

I am delighted to serve under your chairmanship, Sir Charles.

I am grateful to the Backbench Business Committee for allocating this debate, prompted by the Select Committee on Work and Pensions inquiry on the Child Maintenance Service. We published our report last April, and the Government their response in July. The Child Maintenance Service, which I shall refer to as the CMS, was introduced in 2012 to replace the Child Support Agency.

Child maintenance is paid in three ways: non-statutory, family-based arrangements, in which the CMS plays no part; direct pay, where the CMS calculates the amount due and draws up a schedule, but the parents themselves arrange payment; and, thirdly, collect and pay, where the CMS calculates the maintenance owed, collects it from the paying parent and transfers it to the receiving parent. For direct pay, there was, until yesterday I think, a £20 application fee, waived for under-19s and in cases of domestic abuse. For collect and pay, the paying parent pays an extra 20% of the maintenance owed and the receiving parent receives just 96% of what they would have under direct pay.

The Department for Work and Pensions reported 2.5 million separated families in Great Britain in March 2022, with 4 million children in those families. The National Audit Office says that about half receive at least some child maintenance, and one in three has an arrangement that is satisfied in full. Of those with any arrangement, around 500,000 were on direct pay or collect and pay, but nearly 1 million had a family-based, non-statutory arrangement. The National Audit Office made the point that take up of the CMS has been lower than expected, for reasons that the Department does not know, and that setting up the CMS has not increased the number of effective child maintenance arrangements.

Our report made recommendations about the calculation of child maintenance. The maintenance assessed for some parents—I think this is now widely acknowledged—is unaffordable in some cases, causing serious hardship. The bands for calculating maintenance are in primary legislation, so it is hard to change them. Christine Davies, who is honorary senior lecturer in mathematics at Royal Holloway, University of London, told us that because inflation over the past quarter of a century has not been allowed for, someone earning £15,000 today should, according to the scheme’s original intentions, be paying £364 per year in maintenance, but is actually required to pay almost 10 times that or £3,500 per year.

The Callan review called for the formula to include both parents’ income, instead of only the paying parent’s. The Government rejected that, but said they would explore the possibility in their review of the calculation formula. The Government have committed—I welcome this—to a “fundamental review” of the child maintenance calculation. The Minister in the Lords told us in correspondence that the review would be wide ranging and take some time. When the Minister winds up, will he tell us whether we can expect changes before the election?

This is urgent. We have heard of paying parents taking their own lives, because the demands being made of them are simply impossible for them to meet. I was in touch yesterday with Mr Ian Briggs, whose son, Gavin Briggs, took his own life. Mr Ian Briggs told me that on 26 June 2020, the CMS sent his son a letter telling him he owed nearly £16,000. His son took his life a few days after that on 1 July, and on that day his account showed less than £4,000 in arrears. Mr Briggs asks:

“How can this be possible?”

He has had no answer to that question.

The CMS was established to deliver more effective maintenance arrangements, but there is little data on how many direct pay arrangements are effective. We do not know how much child maintenance is not being paid. We asked DWP to monitor the effectiveness of the arrangements proactively—for example, with yearly surveys of parents with direct pay arrangements—but the Government said no to that. My question to the Minister is: what are the Government’s plans for monitoring that for research on the subject? Does the Department think that it understands the effectiveness of direct pay? If so, what evidence is it using? We do not think that it does. How many direct pay arrangements switched to collect and pay or family-based arrangements in the first 12 months? Does the Department know why that is happening?

The Committee also raised concerns about collect and pay. About half of paying parents with those arrangements do not pay or pay less than they should. We heard that enforcement is slow and often ineffective, so we welcomed the Child Support (Enforcement) Act 2023. That was taken through the House by the hon. Member for Stroud (Siobhan Baillie), who I am delighted is in her place this morning and who makes a distinguished contribution to the work of the Committee. The Act aims to speed up enforcement by allowing CMS to make administrative liability orders when a paying parent has not paid and deduction of earnings is not appropriate. Previously, CMS needed to apply to a court for a liability order, taking up to 22 weeks. The secondary legislation on that will specify the notice that CMS must give to the paying parent before making an order—seven days for those living in the UK and 28 days for those overseas—and set out the process for paying parents who want to challenge a liability order. The Government published their response to the consultation on that two weeks ago, on 12 February. Can the Minister tell us when the secondary legislation will be introduced?

Another set of recommendations in our report was about domestic abuse. In October 2021, the Government asked Dr Samantha Callan, who I already mentioned briefly, to conduct an independent review of CMS processes and procedures for supporting parents subject to domestic abuse. Her report was published in January 2023, and the Government accepted eight of its 10 recommendations. On the first recommendation, the Child Support Collection (Domestic Abuse) Act 2023 received Royal Assent last July; I am pleased to see the hon. Member for Hastings and Rye (Sally-Ann Hart) in her place this morning as well. Where there is evidence of domestic abuse, a parent can set up collect and pay at the start instead of first trying direct pay, so the two parents need not be in contact. Last September, a written answer said that bringing the Act into force would require consultation and secondary legislation. Can the Minister tell us what the timetable is for those?

Our report asked for a timetable for all the work arising from the Callan review. One strand of that is a pilot of single, named caseworkers for complex domestic abuse cases. In the written answer that I referred to earlier, the Minister said that the Department had started a pilot and it would be evaluated. Can the Minister tell us when that will be and how the pilots went?

I am worried about that, because yesterday I spoke to Rachel Parkin, who gave evidence to the Committee’s inquiry. She is an abuse victim. The former CMS chief executive apologised to Rachel for how her case was handled, assured her that she would be on collect and pay permanently and that she would be in the pilot of a single caseworker. She had a single caseworker for a period of eight months. Her calls in that period were automatically routed to the right caseworker—it worked very well—and she made real headway in resolving long-standing difficulties, but now, without any explanation, she is being put back on direct pay. She has simply been told by the service that it is not bound by promises made to her by a former chief executive. She will be back to random caseworkers and the debilitating need to go through her story every time, which so many people talked to us about during our inquiry.

[Peter Grant (Glenrothes) (SNP)]

I am reluctant to interrupt the right hon. Member in full flow, but while he is talking about the failures to give adequate support to people who report that they have been living in an abusive relationship, may I ask whether he was as concerned as I was to realise how completely unaware CMS senior management seem to be that very often the abuse or controlling behaviour starts only after the relationship has ended, and that until about a year ago that was something that just did not seem to have occurred to anybody at the CMS?

[Sir Stephen Timms]

The hon. Member makes a very important point, and I think he is right. I very much welcome his work and that of his colleagues on the Public Accounts Committee in drawing attention to a number of these problems.

I ask the Minister whether the idea of a single caseworker has now been abandoned. Is a domestic abuse team still in place or has that whole initiative, which the CMS talked to the Public Accounts Committee about last year, I think, now been given up? Why is it that someone such as Rachel Parkin has gone back to the arrangements that she was promised she would not?

In our report, we also raised concerns about paying parents who fraudulently attempt to reduce their maintenance assessment and about the fact that the Department does not estimate levels of fraud and error. The Public Accounts Committee, in its 2022 report— two years ago—said that the Department had

“not taken responsibility for detecting child maintenance fraud”

and had shifted the burden to receiving parents, who were expected to challenge false assessments. The Committee pointed out that a paying parent who was notified of being investigated for understating their income would no doubt guess that their ex-partner had reported them, and as a result, the Committee warned, many receiving parents would not report. I think that the Committee was right to make that point. In response, the Department said that it used risk profiling and threat scanning to target fraud in the child maintenance system and that it already had proportionate and cost-effective controls. Can the Minister tell us what exactly risk profiling and threat scanning are in practice?

We recommended that there should be specialist caseworkers for cases in which the paying parent’s income is from self-employment. In correspondence, the Minister in the other place who has responsibility for this part of the Department’s work, Lord Younger, pushed back on that, on the grounds of “funding implications”. However, the Department has said that it will legislate to ensure that unearned income, such as savings, investments, dividends and property income, is taken into account automatically when maintenance is calculated, to make it more difficult for

“the small number of parents who avoid paying the correct amount.”

Can this Minister tell us when that legislation will be introduced?

The Government have just introduced, as I mentioned earlier, secondary legislation to remove the £20 fee for all parents who apply for a statutory maintenance arrangement. I would be grateful if the Minister could confirm that that took effect yesterday as planned. The same secondary legislation also introduced new powers for the Secretary of State to write off maintenance arrears under £7 in certain circumstances.

Finally, I want to make this point. There are, as all of us in the House well know, unending complaints about very poor customer service from the CMS. It is very difficult to get through; calls go unanswered. There are incorrect assessments, and people are having to tell their story again from scratch on every call. The service does have a very tough job, against a backdrop of pain and conflict; it is very difficult to provide a good service in that situation, but can the Minister offer us any prospect that the improvements needed will be made?

[Sir Charles Walker (in the Chair)]

Seven colleagues wish to speak. You have six minutes each. If you are on the list to speak and you intervene, that might reduce your time to four or five minutes if you are at the end of the list. I call Dr Thérèse Coffey—six minutes, please.

--- Later in debate ---

[Paul Maynard]

The hon. Member makes an interesting point that may risk becoming a digression. I note that the secondary legislation he refers to is regarding automatic uprating of particular indicators. This is a more fundamental change to how the entire structure of child maintenance is conducted, so is perhaps not suited to secondary legislation. We often hear criticism that too much goes through secondary legislation, unscrutinised by this place. As a Member rather than a Minister, I always think that I would rather such a fundamental change be scrutinised properly in the form of a Government Bill. That is an important point.

[Sir Stephen Timms]

Will the Minister give way?

[Paul Maynard]

I will. I am in danger of making things up now, which I should not do.

[Sir Stephen Timms]

I take the point entirely about the complexity of the review’s underlying formula, which the Minister has just been talking about. Can he give us any sense of how long he envisages that review will take to complete?

[Paul Maynard]

I have made a lot of comments today about the drumbeat of ongoing changes and how we implement some of the private Members’ Bills that have gone through, for example. I hear what the right hon. Gentleman says about the progress and the drumbeat, but I am not sufficiently close to the actual data and the information that he seeks. I will ensure that he is written to, along with other Members present today. I am sure that will be discussed when he meets Viscount Younger.

--- Later in debate ---

[Sir Stephen Timms]

I thank everybody who has contributed to this important debate. We all deal with people who struggle with the Child Maintenance Service, so I am grateful for all the contributions that have been made. I welcomed the very constructive contribution that my hon. Friend the Member for Wirral South (Alison McGovern) made from the Front Bench. She is absolutely right that if there were more regular updates to Members about what is going on, that would be really helpful, given the changes that are happening.

On a couple of areas that we have touched on in the debate, first is the concern about paying parents. I am grateful to the Minister for his commitment that that fundamental review is under way. It would certainly be helpful to know how long he anticipates that review is going to take.

I was struck by the example given by the right hon. Member for Romsey and Southampton North (Caroline Nokes) about somebody who was told over the phone that he did not have any arrears, and yet he received a demand and deduction of earnings order to pay arrears. The hon. Member for Amber Valley (Nigel Mills) made a point about people receiving several notices with contradictory figures. Such muddle and confusion is terribly damaging. The stakes are really high. People are losing their lives. We must be able to come up with a system that delivers basic competence.

On the single caseworker, I was very concerned— I am grateful to the Minister for his assurance about a letter about that—but the implication was that that would be spread out to the whole system. I really hope that it is.

Motion lapsed (Standing Order No. 10(6)).