Child Maintenance
Public Accounts Committee
Closed
Inquiry
The Child Maintenance Service (CMS) - set up in 2012 to replace the previous Child Support Agency - is for separated families who have not been able to reach a private arrangement about how their children’s living costs will be paid. The Department for Work and Pensions estimates that £934 …
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29
Recommendations
7
Conclusions
1
Report
1
Oral session
1
Event
Activity timeline 4 events
14 Oct
2022
2022
22 Jun
2022
2022
Report published
16 Mar
2022
2022
Oral evidence
16 Mar
2022
2022
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
Oral evidence sessions 1 session
16 Mar 2022
View on parliament.uk
Child Maintenance
Arlene Sugden · Department for Work and Pensions
Hilda Massey · Department for Work and Pensions
Peter Schofield · Department for Work and Pensions
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Ninth Report - Child Maintenance | HC 255 | 22 Jun 2022 | 36 | Responded |
Recommendations & Conclusions
36 results
2
Recommendation
Rejected
Ninth Report - Child Maintenance
The Department has displayed insufficient curiosity around the needs of some of the most vulnerable...
The Department has displayed insufficient curiosity around the needs of some of the most vulnerable separated families and their children. Take-up of the Department’s CMS scheme is substantially lower than it expected. An estimated 18% of separated families used the …
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Government Response
The government disagrees with the recommendation, says it has improved diversity information collection, undertakes surveys in multiple languages, and sees no need for new research given the increase in demand for CMS.
HM Treasury
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3
Recommendation
Accepted
Ninth Report - Child Maintenance
The Department’s system of child maintenance is not designed to protect those subject to domestic...
The Department’s system of child maintenance is not designed to protect those subject to domestic abuse or coercive control. The Department designed the current child maintenance system to emphasise collaboration between parents, with the CMS available as a voluntary safety …
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Government Response
The department has robust processes and training in place for identifying victims of domestic abuse. They will also assess the forthcoming Domestic Abuse Statutory Guidance and adapt their Transformation Programme to incorporate further support and communications with domestic abuse survivors, with considerations for more comprehensive conversations when cases close.
HM Treasury
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4
Recommendation
Rejected
Ninth Report - Child Maintenance
The Department has not taken responsibility for detecting child maintenance fraud, instead shifting this responsibility...
The Department has not taken responsibility for detecting child maintenance fraud, instead shifting this responsibility onto its customers. The Department asserts that it does not treat tackling child maintenance fraud, where children often suffer as the end user, with any …
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Government Response
The government disagrees with the recommendation to take responsibility for detecting child maintenance fraud, stating it already has proportionate and cost-effective controls and a fraud strategy in place.
HM Treasury
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5
Recommendation
Rejected
Ninth Report - Child Maintenance
The Department is too willing to blame low levels of customer satisfaction on CMS customers...
The Department is too willing to blame low levels of customer satisfaction on CMS customers being difficult to please, despite its own systemic customer service failings. It is disheartening that customer satisfaction is no better now than it was under …
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Government Response
The government disagrees, stating that the Customer Experience Directorate actively invests in reviewing cases upheld by the Independent Case Examiner (ICE) to identify and implement service improvements, and will continue to utilize existing ICE publications to inform lessons learned.
HM Treasury
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6
Recommendation
Accepted
Ninth Report - Child Maintenance
The Department is too slow to take effective enforcement action, leaving children without maintenance for...
The Department is too slow to take effective enforcement action, leaving children without maintenance for too long and allowing child maintenance arrears to grow. The Department designed its CMS scheme to encourage parents to use Direct Pay first, and the …
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Government Response
The government agrees with the recommendation to conduct research to understand how customers progress through the collection and enforcement process and is already completing insight and analysis and utilising existing user research. It is reviewing its internal processes and current organisational design structure to ensure cases can be transitioned through the customer journey more efficiently.
HM Treasury
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7
Recommendation
Deferred
Ninth Report - Child Maintenance
The Department’s ability to collect child maintenance is limited by the affordability of payments and...
The Department’s ability to collect child maintenance is limited by the affordability of payments and the system risks creating a poverty trap for some Paying Parents. More than two-thirds of Paying Parents on Collect & Pay and over a quarter …
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Government Response
The department cannot set out its plans to review affordability of liabilities as this relies upon a policy decision, but the department is considering its plans and will update the Work and Pensions Committee in due course.
HM Treasury
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8
Recommendation
Rejected
Ninth Report - Child Maintenance
The Department has repeatedly failed to achieve savings targets for the child maintenance scheme over...
The Department has repeatedly failed to achieve savings targets for the child maintenance scheme over the past decade and again risks overpromising on the benefits of its current transformation programme. The Department has reduced the cost to the taxpayer of …
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Government Response
The government disagrees, stating their Transformation Programme introduces changes to improve efficiency and automation. They report performance in Annual Reports and Accounts, and regularly review services and programmes to ensure value for money.
HM Treasury
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1
Conclusion
Rejected
Ninth Report - Child Maintenance
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Work & Pensions (the Department) about child maintenance in Great Britain.1 We also received and considered written evidence from individuals and …
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Government Response
The government disagrees with the Committee’s recommendation, stating that the Department for Work and Pensions (the department) has a clear interest in how child maintenance is integrated into wider government policy, and it intends to continue to discharge this working with other government departments.
HM Treasury
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9
Conclusion
Ninth Report - Child Maintenance
The Department also told us that some issues identified with the integration of child maintenance...
The Department also told us that some issues identified with the integration of child maintenance were the result of legislation. For example, the rates for calculating child maintenance are outlined in legislation and mean that some paying parents on Universal …
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HM Treasury
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10
Recommendation
Accepted in Part
Ninth Report - Child Maintenance
Take-up of the Department’s CMS scheme is substantially lower than it expected.
Take-up of the Department’s CMS scheme is substantially lower than it expected. The Department estimated that 18% of separated families used the CMS scheme in 2019– 20, compared to its expectation of 33% by 2019.14 In 2021, the Department found …
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Government Response
The government introduced a new digital service that has increased applications and will regularly assess the impact on the caseload rather than develop a specific action plan. They are also developing referral processes within the Universal Credit programme and a communication programme to promote its benefits.
HM Treasury
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11
Recommendation
Accepted in Part
Ninth Report - Child Maintenance
The Department told us that it “absolutely” wanted parents who were not receiving maintenance because...
The Department told us that it “absolutely” wanted parents who were not receiving maintenance because the other parent was not willing to pay to feel that they can come to the Child Maintenance Service and that it will support them. …
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Government Response
The government introduced a new digital service that has increased applications and will regularly assess the impact on the caseload rather than develop a specific action plan. They are also developing referral processes within the Universal Credit programme and a communication programme to promote its benefits.
HM Treasury
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12
Recommendation
Rejected
Ninth Report - Child Maintenance
The Department does not know whether all groups of parents find CMS equally accessible or...
The Department does not know whether all groups of parents find CMS equally accessible or whether CMS produces different outcomes for different groups. The Department’s research found that low-income families, those with disabilities, and those with higher levels of parental …
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Government Response
The government disagrees with undertaking more inclusive research to understand customers and users of its service because improvements have already been made to collect diversity information, and given the increase in demand for the CMS, they do not see the need for new research at this time.
HM Treasury
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13
Recommendation
Rejected
Ninth Report - Child Maintenance
The NAO found that parents from some minority groups, such as Black, African, Caribbean or...
The NAO found that parents from some minority groups, such as Black, African, Caribbean or Black British parents, are less likely to use the CMS scheme. However, the Department has not conducted research into why this might be or whether …
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Government Response
The government disagrees with the recommendation, citing improvements to diversity information collection and an increase in demand for CMS, making new research unnecessary at this time. They will undertake further internal analysis if demand stabilises or subsides.
HM Treasury
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14
Recommendation
Accepted
Ninth Report - Child Maintenance
Customer satisfaction with the CMS is no better than under the old CSA schemes.
Customer satisfaction with the CMS is no better than under the old CSA schemes. The Department’s internal survey results show that in the quarter ending December 2019 (before the pandemic), the Department’s customer satisfaction rating was 60%. This is lower …
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Government Response
The government agrees to develop performance indicators to understand low customer satisfaction and target improvements. They will build on the customer service strategy, analyze complaints, conduct user research, and introduce a "Voice of the Customer" program.
HM Treasury
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15
Recommendation
Accepted
Ninth Report - Child Maintenance
The Department’s Customer Charter (the Charter) covers four customer service areas: ‘ease of access’; ‘getting...
The Department’s Customer Charter (the Charter) covers four customer service areas: ‘ease of access’; ‘getting it right’; ‘keeping you informed’; and ‘right treatment’. The NAO found that it is difficult to assess the Department objectively against these areas because the …
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Government Response
The department will use its digital transformation to develop performance indicators and target improvement where data suggests service issues. They will also develop user research focused on customer perception and introduce a program allowing real-time gathering of customer feedback.
HM Treasury
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16
Recommendation
Accepted
Ninth Report - Child Maintenance
The Department received 6,521 complaints about child maintenance (around six for every 1,000 customers) in...
The Department received 6,521 complaints about child maintenance (around six for every 1,000 customers) in the year to 30 September 2021. This was considerably down from pre-pandemic levels in line with a general fall in complaints to the Department during …
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Government Response
The government agrees to develop performance indicators to understand low customer satisfaction and target improvements. They will build on the customer service strategy, analyze complaints, conduct user research, and introduce a "Voice of the Customer" program.
HM Treasury
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17
Recommendation
Rejected
Ninth Report - Child Maintenance
Despite child maintenance having the highest rate of complaints within the Department, the Department upholds...
Despite child maintenance having the highest rate of complaints within the Department, the Department upholds a lower proportion of complaints relating to child 21 Qq 124–125; C&AG’s Report, paras 5, 1.14, 3.10 22 C&AG’s Report, para 3.11 and 3.12 23 …
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Government Response
The government disagrees with the recommendation to review Child Maintenance cases where the Independent Case Examiner has upheld a complaint and report to the committee its analysis of the key themes and lessons to be learned, stating that it actively invests in reviewing such cases and will continue to utilise existing ICE publications to inform lessons learned.
HM Treasury
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18
Recommendation
Accepted
Ninth Report - Child Maintenance
The Department designed the current child maintenance system to emphasise collaboration between parents, with the...
The Department designed the current child maintenance system to emphasise collaboration between parents, with the CMS available as a voluntary safety net for those separated parents to choose to use if they decide to.31 Written evidence from the Domestic Abuse …
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Government Response
The government agrees with the recommendation to outline how it will identify cases which potentially involve domestic abuse or coercive control and adapt its services and communications in response, and describes existing and planned measures.
HM Treasury
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19
Recommendation
Accepted
Ninth Report - Child Maintenance
Parents can use the child maintenance system to continue to abuse their former partners, for...
Parents can use the child maintenance system to continue to abuse their former partners, for example by withholding payments or access to children. Written evidence from Gingerbread and the Domestic Abuse Commissioner set out that, for survivors of domestic abuse, …
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Government Response
The government agrees to identify cases involving domestic abuse or coercive control and adapt services/communications. They cite existing processes like call scripts and mandatory training, and are adapting the Transformation Programme to incorporate further support for domestic abuse survivors throughout the customer journey.
HM Treasury
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20
Recommendation
Accepted
Ninth Report - Child Maintenance
We asked the Department how it ensured that its approach to monitoring child maintenance cases...
We asked the Department how it ensured that its approach to monitoring child maintenance cases was properly identifying and addressing cases of domestic abuse and coercive control, rather than waiting to be alerted through non-payment or through the receiving parent …
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Government Response
The government agrees to identify cases involving domestic abuse or coercive control and adapt services/communications. They cite existing processes like call scripts and mandatory training, and are adapting the Transformation Programme to incorporate further support for domestic abuse survivors throughout the customer journey.
HM Treasury
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21
Recommendation
Accepted
Ninth Report - Child Maintenance
The Department told us that it provided specific training for staff to identify domestic abuse...
The Department told us that it provided specific training for staff to identify domestic abuse and coercive control, and that it could put in place controls to avoid contact with the paying parent (such as non-geographic bank accounts). It explained …
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Government Response
The department will adapt its transformation programme to incorporate further support and communications with domestic abuse survivors into CMS organisational design and throughout the customer journey, and consider more comprehensive conversations to ensure customers are closing cases for the right reasons.
HM Treasury
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22
Conclusion
Ninth Report - Child Maintenance
The Department’s legislation for child maintenance is designed to encourage parents to use Direct Pay...
The Department’s legislation for child maintenance is designed to encourage parents to use Direct Pay first, but around half of Direct Pay arrangements are either not sustained or not effective. The Department told us that it preferred parents using its …
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HM Treasury
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23
Conclusion
Ninth Report - Child Maintenance
We asked the Department why it was taking so long to identify missed payments and...
We asked the Department why it was taking so long to identify missed payments and transfer customers onto Collect & Pay.47 The Department informs parents that they should get in touch if their Direct Pay arrangement fails but some do …
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HM Treasury
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24
Recommendation
Accepted
Ninth Report - Child Maintenance
The Department has improved its enforcement of maintenance on Collect & Pay arrangements, but many...
The Department has improved its enforcement of maintenance on Collect & Pay arrangements, but many parents receive less than they are entitled to. Compliance rates on Collect & Pay have risen from under one-third (31%) of paying parents contributing more …
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Government Response
The government agrees to conduct operational and user research to understand the collection and enforcement process and develop a strategy to tackle unpaid maintenance debt, including reviewing legal processes and dependencies on third parties. They are also drafting regulations to extinguish low level debt and expand the list of organisations required to comply with requests from CMS.
HM Treasury
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25
Recommendation
Accepted
Ninth Report - Child Maintenance
There are several reasons why enforcing payments can take a long time.
There are several reasons why enforcing payments can take a long time. For example, the Department can be slow to start civil enforcement activity where other attempts at collection have failed. As at September 2021, only around one-third (34%) of …
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Government Response
The department will continue to complete extensive operational insight and analysis to better understand how customers progress and inform a more efficient design. It is also reviewing legal processes and dependencies on third parties, with an implementation approach by Summer 2023, and drafting regulations to extinguish low-level debt.
HM Treasury
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26
Recommendation
Accepted
Ninth Report - Child Maintenance
We asked the Department what use it was making of its enforcement powers.54 Parliament granted...
We asked the Department what use it was making of its enforcement powers.54 Parliament granted the Department additional enforcement powers in December 2018 and July 2019. The Department accepted that it has “a set of enforcement powers that are probably …
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Government Response
The government agrees to conduct operational and user research to understand the collection and enforcement process and develop a strategy to tackle unpaid maintenance debt, including reviewing legal processes and dependencies on third parties. They are also drafting regulations to extinguish low level debt and expand the list of organisations required to comply with requests from CMS.
HM Treasury
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27
Recommendation
Rejected
Ninth Report - Child Maintenance
Low-income paying parents are more likely to build up child maintenance arrears than those who...
Low-income paying parents are more likely to build up child maintenance arrears than those who are higher paid: 46% of paying parents using the CMS did not earn enough to pay income tax (£12,570 in 2021–22), but these parents represented …
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Government Response
The government disagrees with the recommendation to review the affordability of Child Maintenance Payments, stating that setting out plans relies upon a policy decision, but it is considering such plans and will update the Work and Pensions Committee in due course.
HM Treasury
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28
Recommendation
Deferred
Ninth Report - Child Maintenance
We therefore asked the Department about the affordability of payments.
We therefore asked the Department about the affordability of payments. The Department explained that its calculations were based on historical income, so “affordability is part of the calculation in that respect”. But it recognised that “the problem then comes when …
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Government Response
The government disagrees with the recommendation because they cannot set out plans to review affordability in the response, as it relies on a policy decision, but they are considering plans and will update the Work and Pensions Committee in due course.
HM Treasury
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29
Recommendation
Rejected
Ninth Report - Child Maintenance
The amount Paying Parents pay is based on a means tested calculation set out in...
The amount Paying Parents pay is based on a means tested calculation set out in primary legislation. This applies different rates above certain earnings thresholds that is higher for those on higher incomes and a flat rate of £7 a …
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Government Response
The government disagrees with the recommendation to review the affordability of Child Maintenance Payments, stating that setting out plans relies upon a policy decision, but it is considering such plans and will update the Work and Pensions Committee in due course.
HM Treasury
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30
Recommendation
Accepted
Ninth Report - Child Maintenance
In 2011, the Department announced that it would close the old Child Support Agency (CSA)...
In 2011, the Department announced that it would close the old Child Support Agency (CSA) schemes and introduce the CMS. It decided, based on its analysis, that it would not be value for money to attempt to collect all the …
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Government Response
The department will continue to complete extensive operational insight and analysis to better understand how customers progress and inform a more efficient design. It is also reviewing legal processes and dependencies on third parties, with an implementation approach by Summer 2023, and drafting regulations to extinguish low-level debt.
HM Treasury
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31
Recommendation
Accepted
Ninth Report - Child Maintenance
The Department has no long-term strategy for tackling the growing unpaid maintenance balance under the...
The Department has no long-term strategy for tackling the growing unpaid maintenance balance under the current CMS scheme. Unpaid maintenance owed to parents on Collect & Pay has increased by more than £1 million per week to a total of …
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Government Response
The department will continue to complete extensive operational insight and analysis to better understand how customers progress and inform a more efficient design. It is also reviewing legal processes and dependencies on third parties, with an implementation approach by Summer 2023, and drafting regulations to extinguish low-level debt.
HM Treasury
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32
Conclusion
Ninth Report - Child Maintenance
The Department has improved the accuracy of its maintenance calculations.
The Department has improved the accuracy of its maintenance calculations. The National Audit Office’s estimate of the financial impact of the Department’s errors fell from 2.17% of the monetary value of maintenance in 2015–16 to a record low of 0.65% …
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HM Treasury
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33
Recommendation
Rejected
Ninth Report - Child Maintenance
The Department refers cases of suspected fraud to its Financial Investigations Unit (FIU) to assess...
The Department refers cases of suspected fraud to its Financial Investigations Unit (FIU) to assess the accuracy of the award. Its FIU detected 1,400 cases involving fraud in 2020–21 and increased the child maintenance owed by £10.9 million.74 The Department …
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Government Response
The government disagrees with the recommendation to take responsibility for detecting child maintenance fraud, stating they already have proportionate controls in place and that intrusive investigation can harm maintenance payments. They are consulting on legislative changes to include unearned income in calculations and will use risk profiling and threat scanning.
HM Treasury
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34
Recommendation
Rejected
Ninth Report - Child Maintenance
The Department cannot currently demonstrate that its approach to fraud and error within child maintenance...
The Department cannot currently demonstrate that its approach to fraud and error within child maintenance is proportionate as it has not assessed the risk or level of actual fraud and customer error within child maintenance as would be required if …
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Government Response
The government disagrees with the recommendation, stating that they already have proportionate and cost-effective controls and are enhancing them. They believe intrusive investigations could break down maintenance payments, impacting the child's welfare.
HM Treasury
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35
Conclusion
Ninth Report - Child Maintenance
The Department has reduced the gross cost of administering child maintenance by £132 million (27%)...
The Department has reduced the gross cost of administering child maintenance by £132 million (27%) from £497 million in 2011–12 to £365 million in 2020–21. In real terms, this is equivalent to a £242 million (40%) reduction at 2020–21 prices. …
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HM Treasury
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36
Conclusion
Ninth Report - Child Maintenance
The Department told us that its Transformation programme should reduce costs and improve payment compliance...
The Department told us that its Transformation programme should reduce costs and improve payment compliance by digitalising processes and allowing its staff to move from case maintenance into enforcement activities.83 It expected CMS transformation to be complete by financial year …
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HM Treasury
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