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The Department has repeatedly failed to achieve savings targets for the child maintenance scheme over...

Recommendation
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 administering child maintenance by £172 million from £494 million in 2011–12, to £322 million in 2020–21, in line with its smaller caseload and new income from charging. However, the Department has failed to deliver on its promised efficiency savings. The amount of money it needs to administer child maintenance remains £88 million higher than the £234 million promised by the Department in its 2013 Business Case. In addition, the cost to administer the return of £1 of maintenance payments has increased from 35p in 2011–12 to 36p in 10 Child Maintenance 2020–21. The Department has high hopes for its £30 million digital transformation programme and aims to further reduce annual costs by £128 million (40%) to £194 million for 2024–25 whilst improving both compliance and customer service. However, given the Department’s track record, we are not optimistic about the prospects for this latest programme. Recommendation: As part of its Treasury Minute response, the Department should set out new cost-effectiveness and wider value for money targets against which it can be held to account. Child Maintenance 11 1 The child maintenance landscape
Government Response

A response document is linked to this report, dated 14 October 2022. Response attribution to this recommendation has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.2 yrs
Report published 22 Jun 2022