Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, how many and what proportion of child maintenance cases meet the two-year arrears recovery target.

The Child Maintenance Service take proactive actions to influence Paying Parents who are not paying their child maintenance back into compliant behaviours as soon as a missed payment is identified. The service will initially negotiate repayment of arrears that is feasible for the parent to pay, taking into account the individual circumstances of each case.

The Debt Steer provides a policy-based framework for arrears negotiation. Its purpose is to ensure arrears are collected as promptly and reliably as possible, taking into account all relevant circumstances i.e. full arrears payment by one lump sum, partial lump sum payment and a schedule of on-going payments to recover any remaining arrears within a maximum of two years, and a schedule of on-going payments to recover the full arrears within two years.

Discretion can be applied to extend the timeframe of recovery. The Service first seeks to address the cause for non or partial payment and attempts to find a sustainable solution for the Paying payment which can then provide stability for a Receiving parent and enable the repayment of any arrears in the shortest possible period of time.

If this is unsuccessful the service will consider all available enforcement options including deduction from earnings orders or deductions direct from bank accounts.

If this is unsuccessful, the CMS will use further measures, including order for sale, where it can apply to the courts for the sale of the paying parent’s assets or property, removal of driving licences, disqualification of passports, and committal to prison.

Further we aim to provide fast, accurate and transparent assessments, based on the paying parent’s income, primarily their gross annual income provided by HM Revenue and Customs. If there are no significant changes in circumstances occurring, the maintenance calculation remains in place for a year at which point the Service calculates a new liability as part of the annual review service. However, the Service do continue to deal with unexpected events and major changes in year, in circumstances such as a move into or out of employment, or only where income changes by at least 25% from the latest annual income information provided by HM Revenue and Customs.

This helps to keep calculations up to date and reduces the need for changes in income to be reported during the year. Having a scheme with limited income changes during the year means more certainty for both parents. The paying parent knows for the year ahead how much they are expected to pay, and the receiving parent can budget with much more certainty.

The full information requested in relation to how many and what proportion of child maintenance cases meet two-year arrears recovery is not readily available and to provide it would incur disproportionate cost.