Ninth Report - Child Maintenance
Select Committee
Public Accounts Committee
HC 255
22 June 2022
No response data available yet.
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Ninth report from Session 2022-23 · published 14 Oct 2022
Recommendations & Conclusions
36 results
2
Recommendation
The Department has displayed insufficient curiosity around the needs of some of the most vulnerable...
Recommendation
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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3
Recommendation
The Department’s system of child maintenance is not designed to protect those subject to domestic...
Recommendation
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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4
Recommendation
The Department has not taken responsibility for detecting child maintenance fraud, instead shifting this responsibility...
Recommendation
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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5
Recommendation
The Department is too willing to blame low levels of customer satisfaction on CMS customers...
Recommendation
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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6
Recommendation
The Department is too slow to take effective enforcement action, leaving children without maintenance for...
Recommendation
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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7
Recommendation
The Department’s ability to collect child maintenance is limited by the affordability of payments and...
Recommendation
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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8
Recommendation
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 …
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1
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
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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9
Conclusion
The Department also told us that some issues identified with the integration of child maintenance...
Conclusion
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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10
Recommendation
Take-up of the Department’s CMS scheme is substantially lower than it expected.
Recommendation
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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11
Recommendation
The Department told us that it “absolutely” wanted parents who were not receiving maintenance because...
Recommendation
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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12
Recommendation
The Department does not know whether all groups of parents find CMS equally accessible or...
Recommendation
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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13
Recommendation
The NAO found that parents from some minority groups, such as Black, African, Caribbean or...
Recommendation
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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14
Recommendation
Customer satisfaction with the CMS is no better than under the old CSA schemes.
Recommendation
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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15
Recommendation
The Department’s Customer Charter (the Charter) covers four customer service areas: ‘ease of access’; ‘getting...
Recommendation
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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16
Recommendation
The Department received 6,521 complaints about child maintenance (around six for every 1,000 customers) in...
Recommendation
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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17
Recommendation
Despite child maintenance having the highest rate of complaints within the Department, the Department upholds...
Recommendation
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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18
Recommendation
The Department designed the current child maintenance system to emphasise collaboration between parents, with the...
Recommendation
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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19
Recommendation
Parents can use the child maintenance system to continue to abuse their former partners, for...
Recommendation
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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20
Recommendation
We asked the Department how it ensured that its approach to monitoring child maintenance cases...
Recommendation
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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21
Recommendation
The Department told us that it provided specific training for staff to identify domestic abuse...
Recommendation
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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22
Conclusion
The Department’s legislation for child maintenance is designed to encourage parents to use Direct Pay...
Conclusion
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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23
Conclusion
We asked the Department why it was taking so long to identify missed payments and...
Conclusion
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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24
Recommendation
The Department has improved its enforcement of maintenance on Collect & Pay arrangements, but many...
Recommendation
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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25
Recommendation
There are several reasons why enforcing payments can take a long time.
Recommendation
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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26
Recommendation
We asked the Department what use it was making of its enforcement powers.54 Parliament granted...
Recommendation
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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27
Recommendation
Low-income paying parents are more likely to build up child maintenance arrears than those who...
Recommendation
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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28
Recommendation
We therefore asked the Department about the affordability of payments.
Recommendation
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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29
Recommendation
The amount Paying Parents pay is based on a means tested calculation set out in...
Recommendation
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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30
Recommendation
In 2011, the Department announced that it would close the old Child Support Agency (CSA)...
Recommendation
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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31
Recommendation
The Department has no long-term strategy for tackling the growing unpaid maintenance balance under the...
Recommendation
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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32
Conclusion
The Department has improved the accuracy of its maintenance calculations.
Conclusion
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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33
Recommendation
The Department refers cases of suspected fraud to its Financial Investigations Unit (FIU) to assess...
Recommendation
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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34
Recommendation
The Department cannot currently demonstrate that its approach to fraud and error within child maintenance...
Recommendation
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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35
Conclusion
The Department has reduced the gross cost of administering child maintenance by £132 million (27%)...
Conclusion
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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36
Conclusion
The Department told us that its Transformation programme should reduce costs and improve payment compliance...
Conclusion
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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