Child Support (Enforcement) Bill
Friday 9th December 2022
(1 year, 4 months ago)
Commons ChamberRead Full debate Child Support (Enforcement) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Siobhan Baillie (Stroud) (Con)
I beg to move, That the Bill be now read a Second time.
It should not be controversial across the House that parents should be responsible for their children unless they really cannot do that and need help. That parental responsibility is in all of us and the state welfare benefits and state systems in many other ways will step in to support families when it is absolutely necessary to do so. However, parents are too often let down by ex-partners for a range of reasons and they do not receive the support that they are due financially or otherwise.
In the case of child maintenance issues, parents who are receiving that money and, in many cases, relying on it to live on should be able to trust the child maintenance system to move as swiftly as possible to help them to recover maintenance arrears when it becomes necessary to do so. I am interested in that area through my experience as a family law solicitor, for my constituents who regularly bring incredibly complex child maintenance matters to me, and because this is an area of Government business—in a fantastic Department that works incredibly hard to help people who come to it with their issues—that can actually lift children out of poverty. I want to give the Child Maintenance Service, my constituents and everyone involved as much support as possible to do their job, which is where the Bill comes in.
This is an important measure to improve the recovery of arrears from parents who fail to meet their financial obligations to pay child maintenance. Before going into more detail about what this Bill aims to achieve, it may be helpful if I explain the purpose of the Child Maintenance Service for anybody who is not aware. The CMS is to facilitate the payment of child maintenance between separated parents who are unable to reach their own agreement following separation. That is an incredibly challenging job done in very difficult circumstances. Many Members will have experience of the CMS through their constituents. Some of that will be positive and some will be negative, but those Members who remember the Child Support Agency will I am sure acknowledge that the CMS, which was launched in 2012 to replace the Child Support Agency, is performing relatively well and is much better than previous systems. My parents are separated. My dad has some war stories about the Child Support Agency. We must not forget that that thing was on the front of newspapers, and that is not something that we see with this system, even though I am here in the Chamber saying that we can make improvements.
To emphasise the importance of the service, I should say that, in the past 12 months, more than £1 billion of payments were arranged or collected through the Child Maintenance Service. Under the Child Maintenance Service Act 2012, payments are calculated so that they are fair and affordable for both parents. That is key for these things to be successful.
The CMS uses gross income for calculation, whereas the old system was based on net income. To keep the impact of the calculation broadly the same, the 2012 scheme introduced modifications to the percentages with the banding system. In family law, it should be known that we would do the calculations for child maintenance for the parent client before us in our office before we turned to the other parent for other maintenance payments, so these calculations and the formula are important and it does work in many cases.
The statutory scheme is designed to limit the number of changes throughout the year. That is why the threshold for in-year changes to income is set at 25%, so that the liability remains consistent and parents can factor this into their own financial planning. Children are expensive. We need to be able to plan.
The CMS manages cases through one of two services. The first is direct pay and the second is collect and pay. Direct pay does what it says on the tin. The CMS provides a calculation and a payment schedule, but, effectively, the parents arrange the payments between them. For collect and pay, the CMS calculates how much maintenance should be paid, collects the money from the paying parent and pays it to the receiving parent, so it is a much more interventionist activity. Cases in collect and pay tend to include parents where a collaborative arrangement has either failed or has not been possible to achieve. Paying parents on collect and pay are therefore considered to be less likely to meet their payment responsibilities.
The difference that child maintenance payments make to children’s lives is critical, and the CMS takes action to tackle payment breakdowns at the earliest opportunity, to re-establish compliance and to collect unpaid amounts that have accrued. I give credit to groups such as Gingerbread, which often raise with MPs and Select Committees the impact on single parents; often, we are trying to help single parents through the CMS support schemes.
Where compliance is not achieved and the parent is employed, the CMS will attempt to deduct their maintenance, including any arrears where appropriate, directly from their earnings. Employers are obliged by law to co-operate with that action. Enforcement powers also allow for deductions to be taken directly from bank accounts, including joint accounts and business accounts, either as a lump sum or regular amounts—so far, so good. That is the run of the mill enforcement stuff. Members needed to understand that to understand the more severe enforcement measures used to collect child maintenance, which is what the main part of the Bill deals with.
The CMS is committed to modernising and improving and, as part of that commitment, it is reviewing the enforcement powers to make them as effective as possible in recovering arrears from parents who are failing to meet their financial obligations to their children. Under current legislation, the CMS must apply to the magistrates or the sheriff courts to obtain a liability order before the use of enforcement powers such as instructing enforcement agents or sheriff offices, or the use of more stringent court-based enforcement actions. So there is an extra step to go to court to get that stage of enforcement. Enforcements can include disqualification from driving or from holding a UK passport, or committing a non-compliant parent to prison. So it is serious stuff.
Obtaining a liability order through the courts is time-consuming. At the moment, the Government website tells parents that it can take anything from a few weeks to a few months. We know that there are now also an awful lot of delays in the courts—there was a pause during the pandemic, when the courts were closed—so I imagine it has been even more difficult recently to obtain these things.
That delay in receiving child maintenance has a consequence for the receiving parent and the children. Delay is bad for children, and we know that that principle underpins much family law. Furthermore, this additional step in enforcing debt is no longer required by other Departments, such as His Majesty’s Revenue and Customs. Other Departments are doing what my Bill is trying to achieve, so give me those powers so that the CMS can do the same.
We are also trying to introduce a lot of speed. The Bill will repeal the sections of the Child Support Act 1991 requiring the CMS to apply to the courts to obtain the liability order. It will stop applications to the courts by making amendments to uncommenced powers in the Child Maintenance and Other Payments Act 2008. Those powers, once enacted, will allow enforcement measures to be used more quickly against parents who have failed to meet their obligation.
Jerome Mayhew (Broadland) (Con)
My hon. Friend makes the good point that the procedural step in the current system of requiring the CMS to apply to the courts for a liability order creates delay. Can she give the House an indication, based on her experience, of the sort of delay we are talking about?
Siobhan Baillie
I have been looking through my casework, and the delay has been months in some cases. What is worse is that, even though the system we have is well-meaning, few parents have trust that anything will ever happen. Even where there have been successful liability orders—they are in the hundreds, and I have figures here—any delay becomes the chat in the communities and there is no trust. Any delay or confusion about what can and cannot be achieved is damaging to these families. I thank my hon. Friend for his important intervention.
To preserve the safeguards for paying parents, the Bill makes provisions for secondary legislation to allow the paying parent a right of appeal to a court against an administrative liability order—so there will be appeal rights. The first regulations relating to appeals against liability orders will be subject to the affirmative procedure.
The Bill will operate across England, Wales and Scotland, as they are all part of the same child maintenance regime. The court system governing the enforced collection of child maintenance is governed by broadly the same statutory provisions in England and Wales. In Scotland, however, the judicial system is devolved, so provisions in the Bill allow for a later commencement date, by which time changes to the appropriate court processes can be made. For that reason, the Child Maintenance Service will work with legal colleagues in the Scottish Government to ensure that the policy is effectively delivered in Scotland. I would also say, to those colleagues who always are interested in devolution issues, that Northern Ireland has its own arrangements.
To conclude, this is quite a techie thing—it is nerdy, which is why I like it. However, it introduces a genuine change for families on the ground by avoiding delay, which is harmful for children.
Dr Luke Evans (Bosworth) (Con)
My hon. Friend is making a fantastic speech and bringing forward a great piece of legislation. I was in the House only a few weeks ago supporting my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), who was making changes to the CMS for those suffering domestic abuse who are trying to get payments. Has my hon. Friend the Member for Stroud had a conversation with her about how this Bill can dovetail with her Bill? Perhaps the Government can take both Bills forward to provide extra protections for those who are struggling to get payments for their children.
Siobhan Baillie
I thank my hon. Friend for his intervention. I actually read all of that debate in Hansard, including his many interventions on my hon. Friend the Member for Hastings and Rye, so I think he just wanted to show you that he really knows his stuff, Mr Deputy Speaker. He is absolutely right that my hon. Friend the Member for Hastings and Rye is taking a Bill through the House that will protect people who have experienced domestic abuse, because so often, where there has been domestic abuse and a breakdown of a relationship, there is then no payment between the parents. It is probably very unusual for the Department to have to deal with two Bills, but we have very enthusiastic Members of Parliament who want to help families caught up in this system. I have real confidence in the Government teams and the Ministers to use the corporate knowledge for both these Bills and get this done.
This Bill will introduce a quicker and cheaper process to pursue enforcement, not just for the taxpayer but for the people who are waiting for their money, and it will ensure that more money is collected for more children. These are often children of single parents and children who desperately need £5, £10, £15, £20 or £100 a month—whatever the amount is, it will make a difference. I thank all Members in the Chamber for being here to debate the Bill and the Department for helping me with the drafting, and I very much hope it will receive support today.
James Sunderland (Bracknell) (Con)
We have heard much about the Bill already, so I do not want to go into the detail of it, but I do want to commend my hon. Friend the Member for Stroud (Siobhan Baillie), who is an outstanding MP and a fantastic champion for her constituency. What she has done in this place in the short time since 2019 for families and family law is amazing, so I congratulate and thank her.
This Bill is a no-brainer—it is an easy one to support, and I know that the Government are supporting it, so I will not talk for long, but I am delighted to support it. The bit that really interests me is that, where the Department for Work and Pensions agrees that a person has failed to pay an amount of child support maintenance and a deduction from earnings has not been possible or is not appropriate, the Bill will enable the DWP to make a liability order in respect of that amount against the person. There is an element of coercion that we have not seen before, and it is absolutely justified.
The bit of the Bill that really matters relates to direct pay. Where a parent does not pay their liability in full and on time, the so-called person with care should inform the Child Maintenance Service, which will take swift action to move the case to collect and pay to enforce payment. Without a court order, the Child Maintenance Service may collect arrears through a deduction from earnings order, a deduction from earnings request or a deduction order. The bit I really like is that, with a court-obtained liability order, the Child Maintenance Service may instruct bailiffs to take control of goods and apply to the court for an order of sale of an asset once it is registered with the court.
This is really important, because we have seen over the years so many cases of absent parents, errant parents and non-resident parents who have an obligation to provide for their children but do not. Constituents in Bracknell come to see me all the time for help in chasing these absent, errant or non-resident parents, and I feel their angst. I can now at least reassure them that the law is being tightened, that non-resident parents can now be held to account much more forcefully and that means now exist whereby they will be forced to make good. This is a step in the right direction. I commend my hon. Friend for all the work she is doing, and I fully support the Bill.
Laura Farris (Newbury) (Con)
I will speak very briefly on the Bill. The non-payment of child maintenance is an issue that disproportionately affects women, who make up more than 90% of single parents, but more importantly, it is a principal driver of child poverty. Victoria Benson, chief executive of the single parent charity Gingerbread, said:
“Research shows that 60% of single-parent families living in poverty and not receiving child maintenance would be able to escape the poverty trap if they were paid the money they’re owed. Parents have a legal and moral duty to contribute to their child’s upbringing whether they live with them or not, and where this money isn’t paid willingly the CMS needs to step in.”
I know that the CMS does its very best, but if we look at the statistics for the collect and pay service for the quarter ending June 2022, we see that it remains the case that more than a third—36%—paid no maintenance at all, and only 44% of all the people using the collect and pay service paid 90% or more of the child maintenance owed. That creates a huge poverty hole through which some of the most vulnerable families in this country are falling again and again.
My hon. Friend the Member for Stroud (Siobhan Baillie) has set out beautifully all the mechanisms that exist, but there is a persistent problem with the amount of time it takes for them to be activated. This year’s National Audit Office report says that
“it can take years before payments are made to receiving parents if the paying parent refuses to comply”.
That was certainly echoed in what I heard when I visited the family centre at Hungerford Nursery School in my constituency, which deals with vulnerable families. In every single case, it was a woman that I met and, without exception, they were not receiving the child maintenance payments to which they were entitled. I heard really grim anecdotes about one woman who tried to enforce but had hit a wall because her former partner was still paying off a car loan, which apparently took priority over what was owed to his children. I do not know whether that was the case, but it was certainly the perception and there was also a sense that there was no point in pursuing it any further.
Even if that was only perception, it is to some extent mirrored by the conclusions of a recent Mumsnet survey, which illustrates the despondency with which some parents view the current system. Eighty-three per cent. of respondents told Mumsnet that they never expect to receive what they are owed in arrears, and nine out of 10 respondents said that they thought it was too easy for their former partners to evade paying child maintenance.
I welcome any Bill that will give the CMS more teeth—this Bill does so through liability orders—and, in particular, that reduces the wait that families face to get the money to which they are properly entitled.
Jerome Mayhew (Broadland) (Con)
I, too, rise to support this Bill and the great efforts of my hon. Friend the Member for Stroud (Siobhan Baillie) in support of families.
Relationships are a wonderful thing. From my personal experience, they are the aspect of life that gives me greatest fulfilment. What lies at the core of our relationships provides the value of life, much more so than careers, even careers in this place. We have to recognise, however, that they do sometimes go wrong and that the negative experiences can be as intense as the positive ones.
Although relationships can change, responsibilities for our actions remain. That is particularly the case when children are involved. A person’s livelihood and support for their children are factors when it comes to a broken-down relationship. It is very important to say that when relationships that involve children break down, in the vast majority of cases the absent parent continues to provide financial support on a voluntary basis. Negotiations take place, often without solicitors or lawyers, and an informal arrangement is reached that is satisfactory to both parties. What we are dealing with here, however, is the small minority of cases where negotiations have failed or where an agreement that has been reached is subsequently breached. That is why the CMS is such an important agency to provide support for those families who are most in need.
Existing child support legislation is intended to provide a mechanism for the collection of support funds when voluntary agreements have failed. My hon. Friend set out in her opening speech the various mechanisms that are currently available. It is true that under the current scheme, the CMS can apply to the court in certain circumstances in order to get a liability order to seize, through the bailiffs or the sheriff courts, assets to satisfy a debt. The reason I intervened earlier was to highlight the hugely significant role that delay plays in frustrating the needs of families and, in particular, the children. That is particularly the case in the covid aftermath, when delays in the civil justice system are very substantial. I am sorry to say that even before covid, there was significant strain in the civil court process, leading to lots of delay. That delay matters, because we are dealing with the financial support necessary to feed, clothe, heat and support children.
Right hon. and hon. Members will be intimately familiar with the problem, because of the casework that they receive. To my mind, the Bill is very timely, because just last month a constituent came to me who was owed by the absent—non-resident—parent the sum of £136,833 in arrears of child maintenance. We have to stop for a moment and consider the profound impact of that non-payment on the children. It is simply not good enough to say, “You can go back to the CMS, which in time can make an application to the courts for a liability order. Once that has been processed, we can apply to the bailiff court, and in due course we will get an order to seize goods,”
I welcome the Bill’s intention, which is to cut out the delay of having to apply to the court, and to give powers to the DWP to make a liability order in certain circumstances that allows assets to be targeted via the bailiff or sheriff courts, without the additional factor of delay. Essentially, the Bill aims to fill a lacuna in the armoury of the recovery of funds to support children, and maintain financial responsibility for children from a non-resident parent. It will help my constituents, and for that reason alone I support it.
Peter Gibson (Darlington) (Con)
It is a pleasure to follow my hon. Friend the Member for Broadland (Jerome Mayhew), and to speak for the second time today, this time in support of the Second Reading of the important Bill introduced by my hon. Friend the Member for Stroud (Siobhan Baillie). It is important to highlight that the Bill closely complements another private Member’s Bill, as has already been alluded to, currently progressing its legislative journey: the Child Support Collection (Domestic Abuse) Bill, introduced by my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart). Both Bills will significantly improve the child support system. I was delighted to support the Child Support Collection (Domestic Abuse) Bill, and I am equally delighted to be here to see today’s Bill pass its Second Reading, as I am sure it will.
It is absolutely right that all parents have a legal responsibility to support their children financially, quite apart from any moral responsibility that they have too. Child maintenance is key to reducing the number of children in low-incomes households through family- based arrangements and Child Maintenance Service arrangements. Parents in separated families receive approximately £2.4 billion a year in child maintenance payments, which are essential to those families’ wellbeing and financial security. There are an estimated 2.3 million separated families in Great Britain, with 3.6 million children in those families, and 60% of separated families have child maintenance arrangements.
The Child Maintenance Service manages cases either through direct pay or, as we have heard, collect and pay. In both cases, the Child Maintenance Service calculates how much maintenance should be paid. For a direct payer, the money passes directly from one parent to the other. For collect and pay, the CMS collects the money from the paying parent and pays it to the receiving parent, but there are collection charges for the use of collect and pay—20% on top of the liability for the paying parent, and 4% of the maintenance received by the receiving parent.
Under current legislation, direct pay is the default option unless both parents request collect and pay, or the receiving parent requests collect and pay and the paying parent is deemed unlikely to pay by demonstrating an unwillingness to pay their liability. That is so that paying parents have the option not to incur additional charges should they pay in full and on time. Some 846,300 children are covered by CMS arrangements, of whom 526,500 are covered through direct pay and 298,400 children are covered by collect and pay. Given the growing number of children covered by CMS arrangements, the Bill is welcome.
The Bill deals largely with the way in which child support payments are recovered in cases in which arrears have accumulated. Currently, if arrears have accumulated under the collect and pay system, the non-resident parent is usually sent an arrears notice. Caseworkers may negotiate and put in place a repayment plan. The Child Maintenance Service aims to recover arrears within two years and expects the non-resident parent to pay up to 40% of their net income to clear it.
In March 2022, the National Audit Office published a report on child maintenance that said that parents now rely less on the state to help them to make maintenance arrangements—an aim of the Government’s 2012 reforms. Although the number of people who make a family-based arrangement has increased as intended, there has also been an increase in the number of people with no maintenance arrangement. The report said that, as a result, there has been no clear change in the number of families with effective child maintenance arrangements since the Government reformed the system in 2012.
It is estimated that only one in three separated families in Great Britain has a child maintenance arrangement for which the agreed maintenance is paid in full. Indeed, at the end of June 2022, cumulative arrears stood at £493.5 million and the National Audit Office projection is that at current rates the amount will reach £1 billion by March 2031. That figure is far too high. It is absolutely right that we have in place a system that ensures that we can and do enforce payments effectively. The House will be aware of the National Audit Office report that highlights ongoing issues with Child Maintenance Service collection and enforcement activities. I doubt that any Member has no constituency cases on the issue; indeed, I have had more than two dozen in my case load.
If the paying parent refuses to comply, it can take years before payments are made to the receiving parent. Enforcement in respect of arrears does not always ensure future compliance. It can take years before payments are made to receiving parents if the paying parent refuses to comply. In addition, enforcement has not been properly built into the universal credit system. Currently, the Child Maintenance Service can deduct only a flat rate of £8.40 of maintenance from a person’s universal credit award and cannot deduct partial deductions. Before 2019, the maximum that the Child Maintenance Service could deduct from benefits towards arrears was a mere £1.20 a week.
There are currently four ways for the CMS to collect arrears without a court order: a deduction from earnings order; a deduction from earnings request for those in the armed forces; a deduction order from bank accounts; and the collection of assets from a deceased non-resident parent’s estate. A court order gives much stronger powers of collection, with the use of bailiffs in England and Wales and of sheriffs in Scotland.
Following the removal of a parent’s right to enforce themselves in 2005, the state now has sole responsibility for enforcing obligations and has discretion over whether to pursue enforcement. It is clear that the state must do more to ensure the enforcement of child maintenance collection. The Bill introduced by my hon. Friend the Member for Stroud would do just that. Her Bill would alter the current regulations to ensure that if the DWP agrees that a person has failed to pay an amount of child support maintenance and a deduction from earnings has not been possible or is not appropriate, the DWP would be able to make a liability order in respect of that amount against the person. This will replace the existing system whereby the DWP must apply to the courts for a liability order, thereby streamlining the system and removing the unnecessary delay to the recovery of child maintenance arears that the process of applying for liability through the courts can create. The Bill would give the CMS the ability to ramp up the enforcement of collection much quicker than it has previously been able to.
I see how this Bill complements the Child Support Collection (Domestic Abuse) Bill introduced by my hon. Friend the Member for Hastings and Rye. It would allow child maintenance cases to be placed on the collect and pay service if there is evidence of domestic abuse, providing another layer of protection to some of the most vulnerable in society by preventing survivors of abuse from having to engage directly with their abuser through the CMS. However, on the collect and pay system an abuser may seek to continue to torture their victim by not paying the child support they owe. The Bill from my hon. Friend the Member for Stroud will ensure that swift action can be taken in such cases, so that an abuser cannot evade paying child maintenance.
I am delighted to be able to support this Bill, which will streamline the child maintenance system and enable us to ensure that more people can pay child maintenance on time and in full. I am sure it will command cross-party support, and I offer my sincere thanks to my hon. Friend for bringing it forward today. I wish her all the best as she continues to guide it through the legislative process, and I hope to see it pass all its stages very soon. I have got into the habit of offering Members my services on their Bill Committees, having offered once already this morning, so I offer the same to her.
Danny Kruger (Devizes) (Con)
We are talking about the saddest thing possible, the breakdown of the relationship of a couple with children—and not just the pain of the breakdown, but an ongoing feud that often lasts for years, re-traumatising the children and embittering the parents. We must always remember that the effect of divorce or separation is usually impoverishment, both for the adults involved and for their children—and indeed for elderly parents; they should not be forgotten in this, nor the capital that is lost to them and their future care. The effect on whole families of divorce and separation and the loss of half a child’s adult world when his or her parents separate acrimoniously can often cause a lifetime of emotional damage.
I start by stating plainly that there is nothing more important we can do as a society or in this place than to help people to form stable, lasting and loving relationships, particularly in the context of bringing up children. I am conscious that we spend a lot of time in this place debating means of mitigating the effects of family breakdown, but not a lot of time debating how to prevent the breakdown in the first place. We discuss how to provide ambulances at the foot of the cliff to pick up people who are falling off, but spend very little time discussing how to put fences at the top of the cliff to prevent the damage in the first place.
Nevertheless, when the worst happens, it is right that we do what we can to ensure that the obligations of parents to support their children are upheld. That is why we have the Child Maintenance Service. I want to reflect on the work that the service does. Its work is increasing; as we have been hearing, the CMS manages over 600,000 arrangements for child maintenance, up 9% just in the six months to last December. We have also seen an increase in the collect and pay arrangements—a bad sign in itself—with 37% of the total number of CMS arrangements now managed through collect and pay, up from 30% just a few years before. Compliance is running at around two thirds, which is understandable, but sad and essentially unsatisfactory.
My hon. Friend the Member for Stroud (Siobhan Baillie) mentioned the 2012 reforms, which were partly designed to encourage voluntary and family arrangements, and have been successful in that regard. I agree with her about the success of those reforms and that those arrangements have increased, but we must recognise that the number of separated couples without an arrangement has also increased. According to the National Audit Office, it appears that there is no clear change in the number of families with an effective arrangement in place.
The fact is that only one in three separated families have arrangements that are working and in which payments are made in full. For all the progress that has been made—and I recognise my hon. Friend’s point that the CMS is dealing with very many difficult cases—we still have too many non-payments or payments not made in full. At any one moment, we are all dealing with many cases of constituents reporting their frustrations with the CMS. It is very frustrating for our offices to deal with them, too. I want to quickly pay tribute to my senior caseworker, Camilla Jequier, who is dealing with so many of these cases any one moment—I am sure that we all have a Camilla in our offices battling with the CMS on behalf of our constituents. She does tremendous work, patiently and sympathetically supporting constituents.
I will give a couple of examples on both sides of the parental dispute. A caring parent reports that the non-resident parent has another job and has increased their earnings, with that apparent to HMRC, but the CMS will not increase the payments that the non-resident parent—the father—is making. Another non-resident parent has continued his old business using cash. He is claiming universal credit fraudulently—a CMS financial investigation has confirmed that—but, because the UC claim is in place, it cannot collect the child maintenance that is due. I spoke yesterday in support of keeping cash in our economy, and I very much support that, but I recognise opportunities that that gives for such fraudulent behaviour.
On the other side, there is the case of a paying parent who has been out of work for six months. The collect and pay arrangement has continued, and the father’s home is now under threat because the CMS has not recognised the loss of earnings. There is another case where the CMS is using gross earnings from before the pandemic, not recognising the substantial loss of earnings that that parent has endured in recent years. It is not able to use up-to-date HMRC data.
I reference those as examples of the frustrations that constituents have, while also acknowledging the very good work that the CMS is doing. We do not get reports of good work from Government agencies; we just report the bad ones. However, I am afraid that there are still too many of those.
I support the Bill and pay tribute to my hon. Friend the Member for Stroud, who has been a tremendous campaigner on the issue. It is a good Bill, and I am pleased to see that the Government—and, I am sure, the Opposition—supporting it. It is an important step to ensure that we can improve compliance. I also thank the DWP for its support for this important Bill and for enabling the CMS to do its work better. I hope that we will see the same from HMRC in due course.
Dr Luke Evans (Bosworth) (Con)
Who would have thought when I went to conference four or five years ago and was joined by my hon. Friend the Member for Stroud (Siobhan Baillie), who is sat next to me, that we would both be here in the Chamber having this debate, almost three years to the day since our election? Actually, it was patently obvious at that point that she was going to become an MP, because she is diligent and driven. Her introducing the Bill is testament to that.
On reading my hon. Friend’s comments from her Westminster Hall debate last month, it was so sad to note that about 280,000 children see their parents separate. That is a hugely concerning statistic, and a figure that we need to closely reflect on, as my hon. Friend the Member for Devizes (Danny Kruger) pointed out. I am lucky and eternally grateful to have benefited from a being in a loving and stable family for nearly 40 years, but I appreciate that that experience is not universal.
We all have CMS cases in this House, and we have often seen the anguish and the upset that the process generates. More broadly, before I came to the House, I saw in hospitals and GP surgeries the anguish that a given mental or physical issue would bring. A medical professional’s starting point is: how can I make things better? While I often could not solve the problem, I could help inform and equip people and ensure that the process ran smoothly. This Bill gives people a real chance to try and make these things better.
I fully support this important legislation, because I believe that it sits well with the Government’s wider reforms to ensure that the work of the Child Maintenance Service is effective in preventing parents from evading their financial obligations to their children. While couples may fight and frustrate, we must keep in mind the best outcome for the children’s sake. When I was researching for the debate, I was surprised to see that more than 30 years have passed since the Thatcher’s Government critical “Children Come First” White Paper. Society has made changes since then, and methods to collect payments have certainly changed over those years. Much scrutiny and change has taken place, substantial amounts of water have passed under the bridge, and we have seen major systems redesigned.
I note the important work of the Labour and coalition Governments to encourage and support family- based arrangements, and the fact that that work, and wider policy, have progressed with, seemingly, some decent success. Changes to the Child Maintenance Service have built on earlier reforms to ensure a fairer assessment of parents’ earnings, helping to prevent them from evading their financial obligations. These powers make a real difference in compliance by closing loopholes and strengthening enforcement.
We must be thankful for this progress. We must never give up on the ideals, but we must balance them with the reality. According to a report from the National Audit Office published in March 2022, while the number of people making a family-based arrangement has increased as was intended, there has also been an increase in the number of people with no maintenance arrangement, as was pointed out by my hon. Friend the Member for Darlington (Peter Gibson). I sense that the CMS is facing a considerable workload. At the end of December 2021, it was managing more than 600,000 arrangements for 560,0900 paying parents, a 9% increase in the number of arrangements since the end of June 2021.
We must also consider those who fail to pay any amount of child support maintenance, especially when deductions from earnings are not possible. I think that enabling the DWP to make administrative liability orders is a step forward, and I also think it right that those who are subject to such orders are able to appeal. I believe I am correct in saying that they can appeal but cannot challenge the amount that has been decided by the CMS, and I think that is the right approach.
I hope the Bill is successful, and I also hope it can be seen in the wider context of the Government’s work to ensure that the child maintenance system has the legislation and the resources to enable it to manage modern Britain. No two cases in the UK are the same, and there are nuances that play out in all our constituency surgeries. We know that these have real, far-reaching consequences, but I sense that the Bill can be a key part of a wider commitment among my ministerial colleagues to ensure that, over time, everyone pays, everyone receives the right amount, and, most importantly, the child—
Danny Kruger
It is important for my hon. Friend to experience what it is like to be on the receiving end of an intervention.
My hon. Friend said earlier that many couples did not have an arrangement at all. What does he think we can do about not just the couples whose arrangements have broken down, but those who did not put one together in the first place?
Dr Evans
That is a very good question—and I am so grateful to my hon. Friend for his sword-like intervention, cutting me off with one word to go before the end of my speech!
It is important to engage with couples and ensure that they know where the resources are to enable them to have the necessary discussions, and I think that that is starting to happen as a result of signposting to, for instance, health visitors, GPs and schools, so that parents have an opportunity to speak to someone establish what their options are. Enabling them to have that dialogue is part of the work that the DWP and the Government as a whole should be doing. People need to understand fully what is available to them, and going through the court system may not be the right way for that to happen.
I am hugely grateful to my hon. Friend the Member for Stroud, and I welcome the Government’s support for the Bill. I hope that it makes much haste.
Matt Rodda (Reading East) (Lab)
We wholeheartedly support the principle that non-resident parents should pay child maintenance, and that there should be enforcement when absent parents fail to pay. I thank the hon. Member for Stroud (Siobhan Baillie) for her work on the Bill and, indeed, for her wider work on this complicated and important matter.
Too many absent parents fail to pay child maintenance, often leaving children and families in desperate need and emotional distress, which, as we heard earlier, can have very serious consequences for them. I pay tribute to those families who are suffering as a result of terrible backlogs and delays, and the whole House is deeply concerned about them. Many Members have tried to help constituents facing these dreadful problems, and will have responded through their casework. I also want to put on record my support for the work of charities such as Gingerbread that support parents, and to thank the Child Maintenance Service for its efforts in this important area. It continues to chase non-payment despite a series of difficult challenges, to which I shall refer later in my speech.
Turning to the substance of the Bill, as I said at the outset, we completely support the principle that non-resident parents should meet their responsibilities for child maintenance, and where they fail to do so the state must step in to enforce payment. The CMS manages over 500,000 arrangements for child support, affecting 750,000 children. Maintenance payments are very important in reducing child poverty, as the hon. Member for Newbury (Laura Farris) mentioned, and it has been estimated that as many as one in five single-parent families on benefits are lifted out of poverty by receiving child maintenance payments; that is an important point for us to consider. Not only do we support the principle, therefore, but we recognise that the enforcement of child maintenance obligations needs to be improved.
Enforcement action was affected by the pandemic. CMS staff were redeployed to manage the surge in universal credit claims, and the courts were closed. The number of liability orders in process fell from 6,900 in March 2020 to 2,400 in September 2020. That was a considerable drop, but since 2020 there has been only a partial recovery, and the most recent figures, for June 2022, are not only far lower than before the pandemic at 4,200, but are lower than in June 2021 by over 1,000 cases. The CMS therefore clearly faces some serious issues. The number of enforcement agency referrals now in process is less than half the number before the pandemic. The system for ensuring that child maintenance is paid needs to be efficient and fair, and we must address these points and discuss them thoroughly in this House.
Although I understand the principles behind the Bill, I therefore have some questions. As I understand it, the purpose of the Bill is to make changes to powers introduced in the Child Maintenance and Other Payments Act 2008, but it seems that some of the powers—those that allow the Secretary of State or Department to make an order without having to go to the courts—have not been used by the Government. I realise this is a detailed point, but I ask the Minister to address it in her reply and to reassure me on it.
The Bill makes provision for the Secretary of State to issue regulations governing appeals, and the powers granted are wide-ranging. For example, the Secretary of State will be able to make
“provision with respect to the period within which a right of appeal under the regulations may be exercised”
and
“provision with respect to the powers of the court to which the appeal under the regulations lies.”
This wording seems to give the Secretary of State a great deal of power to limit the grounds on which appeals can be made and the opportunity to appeal. Why are these powers being sought?
Time is limited today, so I will conclude. We whole-heartedly support the principle that non-resident parents should pay child maintenance and that there should be enforcement for absent parents who fail to pay. I again take this opportunity to thank the hon. Member for Stroud for her excellent work on this; she has a great deal of expertise and the House and country is benefiting from it. I also pay tribute to parents and families affected by this terrible problem, as well as charities and campaigners, and to CMS staff working on those parents’ behalf. I hope the Minister will address my questions; they are somewhat technical, however, and I would be happy for her to write to me with further detail on them.
The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)
It is an honour to speak in this debate, and I thank my hon. Friend the Member for Stroud (Siobhan Baillie) for introducing the Bill and raising this important issue. I am pleased to confirm that the Government intend to support the Bill.
I was going to start by providing a brief background on the purpose of the CMS, but many Members have done a brilliant job on that so I will instead turn to the context of the Bill, making a couple of points and answering some questions, of course. I also want to pay tribute to all the DWP teams that work tirelessly in this space delivering the CMS service so diligently. As a constituency MP and a friend to many single parents, I have seen cases where help from former partners is needed to support children; making sure positive arrangements are in place is crucial to youngsters in every constituency.
I must declare an interest as a single mum. I know personally how important it is for children to know, where possible, that they have the support of both parents, both financially and emotionally. I thank the Gingerbread charity for its advocacy work. I concur with many of the points made today. Our Minister in the other place, Baroness Stedman-Scott, who has day-to-day responsibility for the policy, is strident in her support for reducing parent conflict and making sure that children get the backing that they need and deserve from both parents. We are determined to ensure that the CMS process improves.
I thank all hon. Members who have contributed, including my hon. Friend the Member for Bosworth (Dr Evans), who raised the CMS process and the other private Member’s Bill, the Child Support Collection (Domestic Abuse) Bill, which will be in Committee very shortly. I am delighted to have his support. There were thoughtful contributions from my hon. Friends the Members for Newbury (Laura Farris), for Darlington (Peter Gibson) and for Bracknell (James Sunderland). My hon. Friend the Member for Devizes (Danny Kruger) rightly paid great tribute to MPs’ caseworkers, who deal with the challenges and manage both sides of this issue day in, day out. We are grateful to them. On the point made by my hon. Friend the Member for Broadland (Jerome Mayhew) about the delays in court and liability orders, it takes three to six months from the case being referred to court for a liability order to be granted. We expect that to reduce significantly.
On the wider point about the Child Support Collection (Domestic Abuse) Bill introduced by my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), I am glad to endorse what many Members have said. The Bill will allow for cases to be moved from direct pay to the collect and pay service when one parent is a victim of domestic abuse. That is an important measure, and I am grateful to hear further support for it in the Chamber today. Its Committee stage is forthcoming.
On the point made by my hon. Friend the Member for Newbury about why compliance figures have been decreasing, the Child Maintenance Service has been experiencing falling compliance figures since March 2021 after a period of improving compliance. A key driver of falling compliance is the difficulty of deducting child maintenance from universal credit payments. Universal credit prioritises other third-party deductions ahead of child maintenance deductions. Let me reassure the House that work is ongoing with universal credit policy colleagues to identify how deductions for child maintenance can be rightly reprioritised, and to recognise that collect and pay deals often with the most difficult cases. Parents can co-operate and make their own arrangements—that is one scenario—but we are talking about the difficult scenarios.
I thank the hon. Member for Reading East (Matt Rodda) for raising concerns about backlogs. The CMS is committed to delivering service of the highest standards and has been recognised with customer service accreditation, an independent validation of achievement. It responds quickly to parents using the service. In the quarter ending June 2022, 84% of changes in circumstances had been actioned in 28 days. I say to parents that, as we heard from my hon. Friend the Member for Devizes, if something has changed, they should let the CMS know. Call handling has been improved, with calls directed to the most appropriate person.
I would like to pick up on what my hon. Friend said about why maintenance calculations changes are factored in. Parents are able to report changes of income at any time. I reiterate that to him and any of our caseworkers. Where that change is greater than 25% of the income we hold on our system, we will alter their liability. Parents can ask for a calculation decision by the CMS to be reviewed through the mandatory reconsideration process within 30 days. If they are still not satisfied, they can appeal to the tribunal service.
Danny Kruger
I very much appreciate that point and that is indeed the case. I just wonder why 25% is the cut-off. It is quite a large amount. If a change comes in just underneath that, why should not that be considered as well?
Mims Davies
I thank my hon. Friend for raising that. I do not personally know the answer, but I am happy to look at that point and write to him.
James Sunderland
The Minister is talking eloquently about the need for courts to uphold and the need for parents to be chased for the money that they owe through the CMS. By the same token, although it is not within the scope of the Bill today, could she comment on the ongoing plight of those who do not have access to their children—those who are prevented from seeing them? We can all recall the plight of Fathers 4 Justice—Spiderman hanging from the gantries on the M25. It is important that we discuss, or at least raise today, the issue that it works both ways and that we also have to give deference in law to those seeking access to their children.
Mims Davies
I thank my hon. Friend for raising that. He is right to say that. We have seen this in our constituency surgeries: there are always two sides to every story. It is right that we have processes that are able to respond to that and that parents are able to see and engage with their children. I reiterate that my hon. Friend in the other place, who has day-to-day policy responsibility for this matter, is very much focused on reducing parental conflict. Above all, this is about supporting children, getting them the best start and ongoing support to thrive in life.
Let me make some progress on the importance of today’s Bill. Child maintenance payments provide vital support to separated parents. Approximately 140,000 fewer children are growing up in poverty as a result of child maintenance payments. This includes payments through the family-based process and through the service. As my hon. Friend the Member for Stroud has already stated, in the past 12 months, more than £1 billion-worth of support was arranged and collected through the Child Maintenance Service. That exemplifies the intent of the service, which is to promote collaboration between separated parents and encourage parents to meet their responsibilities in providing for their children, meaning that youngsters get the financial support that they need for that good start in life.
Research shows that children tend to have better emotional wellbeing and higher academic attainment growing up with parents who, together or indeed separated, have that good-quality relationship and are able to manage conflict well. Child maintenance cases are managed by two processes, as we discussed earlier. The collect and pay caseloads are more challenging. That is where a collaborative arrangement has either failed or not been possible. Therefore, these parents are considered less likely to meet their payment responsibilities.
We know the difference that child maintenance can make in people’s day-to-day lives, so unpaid child maintenance should be paid immediately. We know that the vast majority of parents want to do the right thing to support their children financially. Where a parent fails to pay on time or in full, our strategy is to tackle payment breakdowns at the earliest opportunity and to take action to re-establish compliance and collect any unpaid amounts where they have been accrued.
The Child Maintenance Service is able to deduct £8.40 a week towards ongoing maintenance or arrears from certain prescribed benefits, as I have discussed. Where measures prove ineffective or inappropriate in collecting arrears, the CMS will apply to the court service or the sheriff court for the liability order.
The liability order enables the use of more stringent powers, as we have heard, and we are able to take more serious action. Since June 2022, the Child Maintenance Service has collected £2.7 million from paying parents with the court-based enforcement action in process. We regularly review processes and policies in line with best practice to deliver the best outcomes for parents and children, and I note the point made by my hon. Friend the Member for Devizes.
Mims Davies
I just wanted to turn to the hon. Gentleman’s point. I would like to write to him on that as I am not the Minister responsible for that day to day. I hope that he will understand.
The details of these powers will be set out in secondary legislation, with the right for a liable parent to appeal against an administrative liability order. Regulation powers and other provisions will be included. That means that proper scrutiny can be undertaken by the Government and the relevant Committee. We can then make sure that the regulations include the right to appeal. Those regulations will also be subject to the affirmative procedure.
The Bill is of great importance for the Child Maintenance Service. It will make sure that we make the necessary improvements we have heard about today to the enforcement process and, above all, that we get the money to children more quickly. I am pleased that the Bill has been introduced, and I commend my hon. Friend the Member for Stroud for bringing it to the House.
Siobhan Baillie
With the leave of the House, I would like to thank all the hon. Members who have contributed to the debate, and particularly my hon. Friends the Members for Bracknell (James Sunderland), for Newbury (Laura Farris), for Broadland (Jerome Mayhew), for Darlington (Peter Gibson), for Devizes (Danny Kruger) and for Bosworth (Dr Evans). I have notes of all their key points, and I think it was my hon. Friend the Member for Bracknell who said that the Bill is a no-brainer.
The thing we have to be clear about is that family breakdown is absolutely devastating and often incredibly fraught. If the basics are wrong—if money is not flowing between the parents and payments are not being made—the fracture is compounded, and that is very damaging for children. The CMS plays a role not just as a calculator or a money box for people to get cash out of; it is actually fundamental. That is why I have been quite narrow in my scope today, although, unfortunately for the Minister and the Department, I am interested in many other areas of the Child Maintenance Service and universal credit and in the issues that the National Audit Office has raised.
The Bill will achieve administrative efficiencies for the Child Maintenance Service. That is better for the taxpayer, and it will get money into the pockets of the parents looking after the children, which is where it should be. I really hope the Bill makes progress in the House, and I thank everyone.
Question put and agreed to.
Bill accordingly read a Second time; to stand committed to a Public Bill Committee (Standing Order No. 63).
Child Support (Enforcement) Bill
Wednesday 1st March 2023
(1 year, 2 months ago)
Public Bill CommitteesRead Full debate Child Support (Enforcement) Act 2023 Read Hansard Text Read Debate Ministerial Extracts
The Chair
Before we begin, I remind colleagues to switch electronic devices to silent, please. My selection and grouping for today’s sitting is available online and in the room. No amendments have been tabled, and we will have a single debate on all the clauses in the Bill.
Clause 1
Interpretation
Question proposed, That the clause stand part of the Bill.
Siobhan Baillie (Stroud) (Con)
It is an honour to serve under your chairmanship, Ms Bardell. I am grateful to you and to all the Committee members for joining me to look at the Bill in more detail.
This Bill is dry and technical, but it is important to say that child maintenance has a massive impact on the families who are reliant on it. All of us as constituency MPs will have cases coming across our desks and, as a family law solicitor, I know that the issues go far beyond ensuring that child maintenance gets to children and helping in situations of poverty. They can also sometimes affect whether children see their parents, because issues with child maintenance can have an impact on prolonging the conflict between parents and on other difficulties.
I am thankful to the Department, which is working so hard on child maintenance and on the Child Maintenance Service, and to my hon. Friend the Member for East Surrey (Claire Coutinho) who sponsored the Bill before she was made up to be a Minister. It is incumbent on all of us in this place to fix any problems that we see.
The Bill will enable a more efficient process to enforce unpaid child maintenance. It has only six clauses, but I am sure all hon. Members will recognise the Bill’s importance, as it will help to get much-needed money to children more quickly. Before going into more detail, however, I will recap briefly how the CMS works, just in case any hon. Members present whom I have pulled in to help in Committee are unaware.
The purpose of the CMS is to facilitate the payment of child maintenance between separated parents who are unable to reach their own agreement following a separation. That is an incredibly challenging job, done in difficult circumstances. Once parents are in the CMS system, it manages child maintenance cases through one of two service types: direct pay or collect and pay.
For direct pay, the CMS provides a calculation and a payment schedule, but payments are arranged privately between the two parents. That is by far the most favourable way to proceed. Where necessary, for collect and pay, the CMS calculates how much child maintenance should be paid, collects the money from the paying parent, and pays it to the receiving parent. Cases in collect and pay tend to involve parents where a more collaborative arrangement has either failed or not been possible to achieve, or there are high levels of conflict. Paying parents on collect and pay are therefore considered to be less likely to meet their payment responsibilities.
The difference child maintenance payments make to children’s lives is critical. I defer to charities such as Gingerbread, which does so much for single parents, mothers in particular. The Child Maintenance Service takes action to tackle payment breakdowns at the earliest opportunity, to re-establish compliance and to collect unpaid amounts that have accrued. Where compliance is not achieved and the parent is employed, the CMS will attempt to deduct the maintenance, including any arrears where appropriate, directly from their earnings. Employers are obliged by law to co-operate with such action.
Enforcement powers also allow for deductions to be taken directly from bank accounts, including joint and business accounts, either as a lump sum or a regular amount. That is a useful power where the parent is self-employed and deducting from their earnings is not possible. All the time, we still meet parents who do not know that the system is available or do not know its reach—that when their ex is self-employed, they can still have help.
Where such powers prove to be inappropriate or ineffective, under current legislation the Child Maintenance Service must apply to the magistrates or sheriff courts to obtain a liability order before the use of other enforcement powers, such as instructing enforcement agents or sheriff officers, or even more stringent court-based enforcement actions such as forcing the sale of a property, disqualification from driving or holding a UK passport, or commitment to prison. The Bill will amend uncommenced primary legislation to enable the DWP to take further enforcement action without the need to apply to the magistrates or sheriff courts, instead allowing the Secretary of State to make an administrative liability order.
This power, once enacted, will allow enforcement measures to be used more quickly against parents who have failed to meet their obligation. At the moment, to even get a liability order is taking about 20 weeks, and we all know that the courts are under increasing pressure, particularly post covid, so we will try to remove that step.
Let me turn to the specifics of the Bill. Clause 1 gives an interpretation of the primary legislation being amended by the Bill and defines the Child Support Act 1991 as “the 1991 Act” and the Child Maintenance and Other Payments Act 2008 as “the 2008 Act”. Clause 2 makes provision for the Secretary of State to make a liability order where the paying parent has failed to pay an amount of child maintenance and a deduction from earnings order is either inappropriate or has been ineffective. The clause provides an assurance that administrative enforcement measures will be appropriately considered before more stringent measures are taken.
Clause 3 expands the power to make administrative liability orders by setting out in regulations provision for the variation of a liability order—for example, where the amount of arrears upon which the liability order is based is subsequently amended as more information about the paying parent’s income is obtained. That works both ways. Sometimes the responding and paying parent needs to say, “I’m not earning as much as you think I am. I need to make a change.” Equally, the other parent may say, “Actually, he or she has more cash than they’re claiming”, so the clause is important.
Clause 4 gives the Secretary of State the power to set out in regulations provisions that relate to a parent’s right of appeal against a liability order. Those provisions will include the paying parent’s right of appeal to a court, the period within which the right of appeal may be exercised, the powers of the court in respect of those appeals, and for a liability order not to come into force in specified circumstances.
As with liability orders issued under current legislative provisions, in the event that a paying parent does appeal, the court will not be able to question the child maintenance calculation itself. Appeals about the maintenance calculation are dealt with via the appeals tribunal. A paying parent can ask the CMS to reconsider any calculation within 30 days of the calculation decision being made, through the mandatory reconsideration process. They can also report a change of circumstances that could lead to their calculation being amended at any time. It is therefore right for the role of the court when considering a liability order to be, as now, to satisfy itself that the debt is properly owed, and owed by the individual named in the order.
The provisions in clause 4 will prevent court time from being used to consider day-to-day CMS business that can be completed operationally—again, speeding things up—and it aims to strike a balance between giving a paying parent a reasonable window to appeal and the CMS moving swiftly to enforcement measures. The provisions will therefore not place any additional or unreasonable constraints on a parent’s ability to seek an appeal. I have acted for a number of fathers who came to me in a complete pickle, particularly in the old Child Support Agency days, because the calculations were wrong or allegations were made about their income. It is very important that a paying parent has the right to appeal. My dad had quite a lot to say about his own child maintenance payments when we were growing up—don’t get him started on that!
Clause 5 sets out minor and consequential amendments. Finally, clause 6 sets out standard but crucial information covering the extent, commencement and short title of the Bill, which will bring it into force.
I want to say a few words about the devolved Administrations, as it is important that we think through these issues. Primary child maintenance legislation is a reserved matter in Great Britain, but it is devolved in Northern Ireland. Northern Ireland has traditionally maintained parity with Great Britain by mirroring our child maintenance legislation. In respect of administrative liability orders, Northern Ireland has similar uncommenced provisions to those in Great Britain that it plans to commence, thereby enabling it to use and enforce administrative liability orders, so we are expecting Northern Ireland to get there. However, with the Northern Ireland Assembly suspended, it is not possible for Northern Ireland to match the changes that we are making through the Bill today, but it intends to do so as soon as it is able.
In Scotland, child maintenance is reserved but the judicial system is devolved. As such, the Scottish Government are engaged on the impact of the Bill in Scotland and exactly how its provisions will work in the Scottish court system.
The Bill is of great importance to ensuring that the Child Maintenance Service can make the necessary improvements to enforcement processes and get money to children more quickly. We are fortunate to have cross-party support, and I am grateful to the Government for backing the Bill and seeing the value in making these changes. We must ensure that when someone asks for help through CMS, they get help quickly and in a way that makes them feel supported. We must also ensure that parents who are messing about know that there will be sanctions and action against them, thereby providing a deterrent to other parents. I am grateful to the Minister and will be happy to hear from her today.
Tulip Siddiq (Hampstead and Kilburn) (Lab)
It is a pleasure to serve under your chairmanship, Ms Bardell. Let me start by congratulating the hon. Member for Stroud on securing cross-party support for this important Bill. Members may want to know that this is not the first time that she has campaigned on this topic; she campaigned on related issues even when she was a local councillor in my patch. I did not vote for her, but I recognise that she was a very good councillor and she has a long history of campaigning on issues relating to support for children.
Last year’s report by the Public Accounts Committee concluded that in the 10 years since the Child Support Agency was replaced by the Child Maintenance Service, there had been no improvement in the system for parents, children and families. The Committee’s shocking report found that around half of children in separated families—1.8 million children—receive no support at all from their non-resident parent, and that enforcement is just too slow to be effective, as the hon. Member outlined. That is a serious failing in the child support system, and we all know that it is often mothers who pay the price.
A mother in my constituency of Hampstead and Kilburn wrote to me to explain that her child’s father had not paid child support for three years. She had contacted the Child Maintenance Service on numerous occasions, but for three years there was simply no progression in her case at all. Eventually, she came to see me. Members across the Committee will know that our constituents come to see us in our surgeries as the last resort, having gone through everything else. I applied significant pressure as her MP and, in the end, the Child Maintenance Service launched an investigation. But it should not have come to that; it should not have been so difficult for my constituent in the first place.
Sadly, as I am sure Members across the Committee will know, that experience is far from uncommon. It has probably happened to everyone’s constituents at some point. Mothers and children across the country are missing out on the payments that they so desperately need to get by.
The implications for child poverty are particularly concerning. The Nuffield Foundation—a social mobility charity—estimates that as many as one in five single parents on benefits are lifted out of poverty by receiving child maintenance payments. That is to say nothing about the severe impact that non-payment of child maintenance can have on the mental health of children and families. That is why the Bill is so important to me and people across this country. It is completely right that absent parents honour their full child maintenance payments. When they fail to do so, there must be adequate enforcement to force them to pay, so that people’s lives are made easier.
Before I conclude, I have one question for the Minister. Enforcement action was significantly affected by the national lockdowns. Child Maintenance Service staff were redeployed to manage the surge in universal credit claims, and the courts were closed. But the number of enforcement agency referrals now in process is still less than half the figure before the pandemic. Can the Minister give me some information about what the Government are doing to address the backlog?
I fully support the Bill. I hope that it is successful and that it forms part of a wider strategy to ensure that the child maintenance system is fit for the 21st century.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
I sincerely thank the hon. Member for Stroud for bringing forward the Bill. As she has explained, the territorial extent and application applies to England, Wales and Scotland, as it is a reserved issue.
I would like to briefly express my wholehearted support for the Bill. Most of us will have seen, through our casework, just how frustrating CMS cases can be, particularly when the paying parent does not uphold their financial responsibilities. I am dealing with a number of such cases at the moment.
I put on record my thanks to the hon. Member for Caithness, Sutherland and Easter Ross for setting up the child maintenance services all-party parliamentary group, of which I am a Member. We will continue to have meetings of that APPG, and hopefully push our casework forwards.
The changes that this Bill will make to enable the CMS to take stronger action in serious cases are very necessary. Many parents, survivors of domestic or economic abuse, have been telling us for far too long that the system is weaponised by their ex-partners to continue to perpetrate abuse. It is not acceptable that it is so easy for abusers to deliberately delay or frustrate payments.
Ultimately, the most important thing is that any changes benefit the children at the heart of what can often be very difficult and emotionally charged situations. I put on record again that I believe that this Bill has the potential to do that, so I congratulate the hon. Member for Stroud.
The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)
That was very swift; I thank the hon. Member for Rutherglen and Hamilton West. It is a great pleasure to serve under your chairmanship, Ms Bardell. I thank hon. Members for joining us this morning, and thank my hon. Friend the Member for Stroud, who has made a brilliant contribution and covered the importance of this Bill in great detail.
As highlighted by my hon. Friend and the hon. Member for Hampstead and Kilburn, the Bill is vital for securing money for children more quickly from those parents who fail or simply refuse to give support to their own youngsters. Child maintenance payments, as we have heard, can play an effective role in helping to lift children out of poverty, and can help to enhance the life outcomes of children in separated families.
I take this opportunity to say a few words about what the CMS is doing more widely to improve its service—as we have heard from the hon. Member for Hampstead and Kilburn—and ensure that it is supporting our youngsters and protecting the most vulnerable citizens. I would like to reiterate the work that we are doing, and hopefully give some comfort in that regard, because I know and understand that this is a matter of concern for many of us who, as constituency MPs, receive complaints and concerns from constituents who perhaps feel that they have not received the level of support or service they believe they should from the CMS.
As Members will know, until recently the day-to-day policy of the Child Maintenance Service sat with my noble Friend in the other place, Baroness Stedman-Scott. The Baroness was truly strident in her desire for the CMS to be at its best and worked to that end, and I know that that view is shared greatly by my noble Friend Viscount Younger of Leckie, who has taken over overall ministerial responsibility for policy on CMS, and I am working strongly with him.
Peter Dowd (Bootle) (Lab)
I congratulate the hon. Member for Stroud on bringing this important Bill before us. I think the Minister will know that, since the agency was set up 11 years ago, almost £500 million has not been paid. That is 80% of the total accruals in deficit, in effect. Will she bring forward in due course facts, statistics and information to show how this Bill may be reducing that figure as time goes by? It is important that we monitor that this Bill, brought by the hon. Lady, is giving us information and showing that action has been taken and that young children, and mainly women, will benefit from it.
Mims Davies
I thank the hon. Gentleman for that challenge and for making that important point. I was about to say that I am working strongly on the policy and its focus on supporting lone parents. I am happy to write to Members and share what we believe the outcomes will be. We will be looking strongly at this. The hon. Gentleman will be aware that other Bills are in progress, and we are certainly seeking to increase and strengthen the impact of the CMS. We know how much it lifts youngsters out of poverty and, as we have heard this morning, it matters greatly to families. That is an important challenge, which I am happy to take up.
Siobhan Baillie
I thank the Minister for her remarks and support, and I thank all Members present, particularly those I grabbed in various different places in the Palace to ask to serve on the Committee. I also thank the DWP officials and parliamentary officials for their guidance and support, and I thank you, Ms Bardell, for your excellent chairmanship.
The hon. Members for Hampstead and Kilburn and for Bootle were right to express concerns about the record and arrears, as highlighted in the National Audit Office report and by the Public Accounts Committee. I serve on the Work and Pensions Committee and we are investigating child maintenance. The Department and the Minister know that I am incredibly concerned about that because of the impact on families and children but, having met the officials, I know that a lot of work is going on. The DWP is given a hard time, but it is one Department—one arm of the state—that has such a direct impact on children and families.
I thank the hon. Member for Rutherglen and Hamilton West and the hon. Member for Caithness, Sutherland and Easter Ross, who does an incredible job with the APPG.
Yesterday, I was talking to an academic—an incredibly eloquent young woman—about family breakdown and the impact on women, and the impact of family breakdown as a feminist issue, which we do not often hear about. She said there has never been such a good time in history to be a deadbeat dad. I winced at that, because I know hundreds of fantastic dads and that there are millions of fantastic dads all over the country. But unfortunately, we discover in this work that the paying parents and the non-paying parents are invariably fathers, and if we scratch off a lot of that, a lot of absentee parents are fathers. We should not be shy about having these conversations and recognising what the Child Maintenance Service can do and the effect of improvements such as those in the Bill on family stability and children, and on their own relationships when they grow up, and on and on. We should not be shy about accepting that there is a wider benefit to change of this type.
I thank everybody who has been involved and all Committee members for coming in and sitting through our proceedings; I know how busy they are.
Question put and agreed to.
Clause 1 accordingly ordered to stand part of the Bill.
Clauses 2 to 6 ordered to stand part of the Bill.
Bill to be reported, without amendment.
Child Support (Enforcement) Bill
Friday 17th March 2023
(1 year, 1 month ago)
Commons ChamberRead Full debate Child Support (Enforcement) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Katherine Fletcher (South Ribble) (Con)
I beg to move, That the Bill be now read the Third time.
This Bill is an important measure designed to improve the recovery of arrears from parents who have failed to meet their financial obligation to pay child maintenance. It will help to ensure that the Child Maintenance Service continues to deliver a modern, efficient and reliable service that parents can have confidence in. The Bill plays an important part in that by getting money to more children faster to enhance their life outcomes.
I think that it is important that I offer my sincere gratitude to my hon. Friend the Member for Stroud (Siobhan Baillie), who, owing to her rock-solid commitment to her constituents, cannot be here today. It is an honour to pick up on her hard work introducing the Bill, leading Second Reading and shepherding the Committee. I am proud to be able to bring the Bill before the House again, and I am delighted that it has such received such excellent support from the Government thus far.
My thanks must go to the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), for her work on Second Reading and in Committee. I am also most grateful to the Minister for Disabled People, Health and Work, my hon. Friend the Member for Corby (Tom Pursglove), whom I thank profusely for his support. The cross-party support throughout the Bill’s passage has also been extremely welcome, and I hope that it will continue.
For the benefit of those who were not present for the Bill’s previous stages, I will give a brief recap of its policy background and purpose. The purpose of the Child Maintenance Service is to facilitate the payment of child maintenance between separated parents who are unable to reach their own family-based agreement following separation. Once parents are in the system, the CMS manages child maintenance cases through one of two service types: direct pay or collect and pay. For direct pay, the CMS provides a calculation and a payment schedule, but the payments are arranged privately between the two parents. For collect and pay, the CMS calculates how much maintenance should be paid, collects the money from the paying parent and pays it to the receiving parent.
Collect and pay cases tend to involve parents for whom a more collaborative arrangement has failed or has not been possible to achieve, so paying parents in collect and pay arrangements are considered less likely to meet their payment responsibilities. We all know the difference that child maintenance payments can make to children’s lives—they can be critical—so it is absolutely vital that the Child Maintenance Service take action to tackle payment breakdowns at the earliest opportunity to re-establish compliance and collect unpaid amounts as quickly as possible. Where compliance is not achieved and the parent is employed, the CMS will attempt to deduct maintenance, including any arrears, directly from their earnings. Employers are obliged by law to co-operate with that action.
I know how much these matters can affect families, including children such as Caleb and Isa.
Dean Russell (Watford) (Con)
I support the Bill and the work that has been done to make it happen. Does my hon. Friend agree that it will make a massive difference for many families across the country? Many people, including my constituents in Watford who come to my surgeries to ask about this topic, will welcome the Bill, and I hope that other colleagues will support it in its passage through the House.
Katherine Fletcher
My hon. Friend is correct, as usual. Many hon. Members see people in surgeries and through casework with difficulties in accessing the vital childcare payments that help to support a child. Many people are dealing with delays, like Louise from Buckshaw in my constituency. This is an important piece of legislation.
Let me explain how the Bill will speed things up. CMS enforcement powers also allow for deductions to be taken directly from bank accounts, including joint and business accounts should somebody be self-employed, either in a lump sum or as a regular amount. That is a useful power when the parent is self-employed and taking deductions from PAYE earnings is not possible. When such powers prove inappropriate or ineffective under current legislation, the CMS must apply to magistrates or sheriffs courts to obtain a liability order before the use of further enforcement powers such as instructing enforcement agents or sheriff officers or even more stringent, court-based enforcement actions, such as forcing the sale of property, disqualification from driving, holding a UK passport, or even potentially commitment to prison for not paying child maintenance.
The Bill would amend uncommenced primary legislation —laws that have been previously passed—to enable the Department for Work and Pensions to take further enforcement action without the need to apply to a magistrates or sheriffs court. Instead, it would allow the Secretary of State to make an administrative liability order. This power, once enacted, would allow enforcement measures to be used more quickly against parents who have failed to meet their obligation, reducing administrative steps and therefore speeding up the process. While getting child maintenance to our children more quickly has to be of primary importance in introducing this power, it is also important that the Bill does not simply allow the CMS to forge ahead with its most invasive and stringent enforcement measures without some protections for paying parents who would potentially be subject to the liability orders.
With that in mind, the Bill and any regulations developed in support of it, would ensure that those important protections are in place. They will provide an assurance that these new administrative enforcement measures are appropriately considered before an administrative liability order is imposed. Using a process similar to this has worked well in respect of administratively authorised deductions from bank accounts over a number of years. This provision further clarifies the picture. Those protections will also ensure the paying parent has a right of appeal to a court by setting out in secondary legislation: the period within which the right of appeal may be exercised; the powers of the court in respect of those appeals; and for a liability order not to come into force in specified circumstances.
It is important to reiterate that the provisions being introduced in the Bill and the supporting regulations will not place any additional or unreasonable constraints on a parent’s ability to seek an appeal, while allowing the CMS to move swiftly and appropriately to enforcement measures, reducing what is at the moment primarily an administrative step.
As I hope I have made clear, the Bill is important to ensure that the Child Maintenance Service can make essential improvements to processes of enforcement and get money to children more quickly. I hope that we can all agree that this is an uncontentious measure that is worthy of support today, and I look forward to its making progress in the other place.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
I congratulate the hon. Member for Stroud (Siobhan Baillie) on her hard work in seeing the Bill through to its final stages. I was honoured to be on the Bill Committee a couple of weeks ago, and she already knows that it has my full support. The hon. Member for South Ribble (Katherine Fletcher) has been a very able proxy for her today.
In my office we are no stranger to cases related to the Child Maintenance Service. They are some of the most frustrating cases, because they often come down to exactly the same problem, which drags on for years and is nigh-on impossible to resolve: non-custodial parents who are not keeping up with their financial responsibilities to their child and are intentionally avoiding making payment to the receiving parent.
The CMS technically already has the power to take further action where non-compliance has become a persistent issue. However, I know from my casework that it is not that straightforward. It will often require a court order. Waiting for the case to make its way through the already overburdened legal system can feel endless—and that is when the CMS actually investigates the more serious cases. I have seen far too many that have not reached the enforcement stage that they should have reached months or even years before.
I have a case open in which a non-compliant parent was investigated and a court date was set, but they never showed up. The sheriff issued a warrant for their apprehension in September last year, but the letter I received from the CMS just last week mentions that only in passing; it does not seem to have been followed up since then. For someone like my constituent, the Bill could really make a difference. I have seen CMS statements showing the child support that my constituents are owed. Sometimes the arrears have crept up into the thousands: one constituent was owed £10,000, but no enforcement action had been taken despite her pleas.
Another serious issue that is allowed to continue while payments are not enforced is the re-victimisation of survivors of coercive control, domestic violence and economic abuse. Too many women have reported how their ex-partner has been allowed to continue to exert their control and abuse them by exploiting the system. That cannot be allowed to happen: there must be consequences for it.
I do not want to derail the debate by going into all the systemic issues with the CMS and the real need for its reform, but it is so important that we all remember who loses out when support is not paid. Too many people look just at the often fraught relationship between two ex-partners, but it is the children who are losing out. It is the children who are living in financial difficulties when they might not need to—innocent children who have absolutely nothing to do with their parents’ quarrels.
That is particularly true in the current economic climate, with all the difficulties that the cost of living crisis and rising inflation are presenting to households across the United Kingdom. The number of children living in poverty in this country is already unacceptably high, yet research shows that if maintenance were being paid in full just in cases in which the custodial parent is currently receiving no financial support from the non-resident parent, it would lift 60% of those children out of poverty.
The Bill will not fix all the problems at the CMS. It is the job of the Government to understand the root cause of the problems and legislate to fix them, but the Bill will make a real, tangible change for a lot of single-parent families. I am delighted to be here today to watch the Bill tabled by the hon. Member for Stroud get ever closer to making that difference.
Nickie Aiken (Cities of London and Westminster) (Con)
I congratulate my hon. Friend the Member for Stroud (Siobhan Baillie) on introducing such an excellent Bill, and my hon. Friend the Member for South Ribble (Katherine Fletcher) on supporting its final stages in this House. It is a brilliant example of MPs working together to make brilliant legislation.
My hon. Friend the Member for Stroud has been an extremely doughty campaigner in this field of policy. The scene has been set for the Bill for more than the past decade. It is important that we recognise the work that the Government have been doing to improve the child maintenance system, from introducing the 24/7 digital service to supporting those who are trying to decide what arrangements are most suitable for their situation, and increasing the number of referrals to enforcement agents. The Bill adds to that work.
The CMS is a vital service that makes a huge difference to families who have separated. That said, the improvements in the Bill are welcome. We saw an excellent example of improvements recently in the Child Support Collection (Domestic Abuse) Bill of my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), which I was glad to support just a couple of Fridays ago.
I am sure that I am not alone in the Chamber in regularly reading in my postbag about parents who use the CMS. I am always taken aback when I get the emails or correspondence from a constituent who is having problems getting a former partner to pay for child maintenance. They have an agreement; they have been through the courts, have separated legally and have maintenance support in place, but the partner not living with the child is not paying. It has always struck me when, no matter what arguments or problems adults may have in the former relationship, the parent who is supposed to pay for the child refuses to do so. It is the child who loses out and is probably not having a the relationship with the partner not living in the household, which adds to the further pain of a broken relationship between parent and child. I hope that the Bill may go some way to improving the situation between a child and a parent who does not live with them, no matter what the relationship with their former partner.
Some 3 million children across the country live in separated families, and 60% of those families have a child maintenance arrangement. That adds up to £2.4 billion a year in child maintenance payments. For the most part, the transactions are regular and reliable. However, in some cases—as we have heard, it is always the acute cases that Members of Parliament are aware of—regular child support maintenance payments are not forthcoming. For that reason I am pleased that the Bill improves enforcement measures against parents who have failed to meet their obligations. It is a sad state of affairs that we have to legislate to enforce parents paying for their children’s maintenance, but for the minority of cases, needs must. That is why I commend my hon. Friends the Members for Stroud and for South Ribble for introducing the Bill.
Sadly, the pandemic added to enforcement delays for failed payments. It has had so many knock-on effects for us as individuals and as a society. Most of that was down to existing technical or capacity issues, be that complications with liability orders or streamlining who can facilitate enforcement. The Bill could come at no better time. Improving enforcement measures and strengthening the CMS will have a huge impact on ensuring that payments are collected in a timely manner. Clause 2 is so important because it grants the Secretary of State greater powers to intervene without the need to apply to the magistrates or sheriff court, and to ensure that CMS disputes are resolved in a timely manner. We cannot expect a child and the parent who they are living with to have to wait for the money to come through. In a cost of living crisis, that money can make a huge difference to a child’s wellbeing.
Replacing the existing requirement under section 33 of the Child Support Act 1991, the Secretary of State will be able to apply to the courts for a liability order. That will go a long way to reducing the backlog of cases and is very welcome. Likewise, there are clauses that speak to a parent’s right of appeal and steps to ensure that a lack of payment does not become an increased driver of child poverty. Much of the Bill deals with the way in which child support payments are recovered in cases in which arrears have accumulated.
I have no doubt that the Bill will be welcomed by hundreds of thousands of families up and down the country who have to go through the CMS. Therefore, it is essential that we press forward with the sensible, thoughtful and practical reform that it provides. I look forward to seeing the legislation on the statute book shortly.
Simon Baynes (Clwyd South) (Con)
It gives me great pleasure to speak in this morning’s debate, and I am very grateful to my hon. Friends the Members for South Ribble (Katherine Fletcher) and for Stroud (Siobhan Baillie) for bringing this Bill before the House. I will first look for a moment at the Government’s record on improving child maintenance services, which I will comment on briefly before coming back to the Bill, because that will perhaps set it in more context.
Some 64% of paying parents using the collect and pay service paid some of their scheduled child maintenance in the quarter ending September 2022, an increase from 60% in the quarter ending March 2018, so there has been an improvement. Over the past 12 months, the Child Maintenance Service has arranged over £1 billion in child maintenance payments. The majority of applications are now made digitally, making it even easier for parents to access support for their children. The upgraded online account, “My Child Maintenance Case”, allows customers to access and maintain data for themselves. An increasing number of changes of circumstance can also be reported, and the 24/7 digital service “Get help arranging child maintenance” makes the CMS more accessible for customers deciding what type of arrangement is most suitable for them.
I am pleased that the CMS has brought forward the point at which deductions from bank accounts can be made. It is now making better use of deductions from earnings orders so that they can be set up much more quickly, reducing the time required to process those payments. In 2021-22, the Government made more referrals to enforcement agents than in any other year, and the number of liability orders applied for each year is now back to pre-pandemic levels. My final point in this section is that the CMS works with other Government Departments to improve the use of enforcement powers and explore the possibility of introducing new powers for cases in which people are wanton. That is the context in which I would now like to comment on my support for the Bill that is before the House.
The key points of the Bill are that where the DWP agrees that a person has failed to pay an amount of child support maintenance, and a deduction from earnings has not been possible or is not appropriate, the Bill will enable the DWP to make a liability order in respect of that amount against the person, rather than going first to the courts. The person against whom the liability order is made has the right to appeal to a court against the making of that order, but the amount of child support maintenance cited in the order cannot be challenged. Currently, the Child Maintenance Service aims to recover arrears from the non-resident parent—alternatively, the paying parent—within two years, and expects them to pay up to 40% of their income to clear their arrears.
As my hon. Friends, and indeed the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier), have commented this morning, the delays that currently exist cause huge problems for families. I have seen that very much from the emails and pleas for help that I have received from my constituents in Clwyd South, many of whom are involved in the receipt of child maintenance services. Therefore, it gives me great pleasure to support this Bill, which will be of considerable help to not only my constituents but many other people across the UK. Like many of the Bills that we discuss on sitting Fridays, it seems to me that this one will make a really important change to legislation that will be of huge benefit to many people across the country.
Chris Clarkson (Heywood and Middleton) (Con)
Happy St Patrick’s Day, Madam Deputy Speaker. It is a pleasure to follow my hon. Friend the Member for Clwyd South (Simon Baynes), and I put on record my thanks to my hon. Friend the Member for Stroud (Siobhan Baillie) for initially tabling the Bill, and to my hon. Friend the Member for South Ribble (Katherine Fletcher) for being Manchester’s top hon. Member for Stroud tribute act. As everybody knows, she has a clear and consistent record on this subject, and it is very good of her to step in on behalf of our colleague, who—as she says—is committed to something else in her constituency, but dearly wanted to be here.
I also put on record my thanks to the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), and the Minister for Disabled People, Health and Work, my hon. Friend the Member for Corby (Tom Pursglove), for the work that they have done on this Bill. We often consider important Bills on sitting Fridays, but we do not see all the work behind the scenes to make them into functioning legislation after the Government decide to back them. It is a tribute to the Ministers that they got this Bill into good order.
It is a privilege to speak on this Bill because it addresses some of the key gaps in the current child maintenance collection system. I was recently asked whether I had a special interest in this area, and it will come as a shock to no one in the Chamber that I do not have children—my biological clock is ticking—but I am a child of divorced parents. I am very lucky, as my parents are happily divorced. They like each other much more now they are not married. There was never any acrimony in that relationship, but the truth is that around half of marriages now end in divorce, and some of them do not end in the best circumstances.
Although we rely on the best human behaviour for parents to come to an amicable arrangement, and many can do that, there will be instances in which it simply is not possible. With the best will in the world, interfacing with the courts, especially post-covid, makes it an almost insurmountable task for some parents to get the money they need to bring up their child.
I will try to be brief and to the point, because this is an excellent Bill that I actively support. The welfare of children will be drastically improved by this Bill. Delays in obtaining a court order for the payment of child maintenance have a significant impact on the health and wellbeing of children all over the country. My hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) made the eloquent point that this is about the welfare of children. It baffles me that there are parents who genuinely have a casual disregard for the wellbeing of their own offspring in the bizarre game they play with their former partners.
One of the Bill’s central tenets, enabling the DWP to make a liability order in certain circumstances without first going to the courts, addresses a key problem in the current system and is particularly pertinent given the rising cost of living. I welcome clause 2 and the administrative liability orders, which are an elegant solution to the problem of attrition whereby some parents can afford to wait out their former partners—I think that is extremely cruel.
I agree with the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) that it is incredibly frustrating to read about some of these cases. Some individuals exercise coercive control over a partner who then takes the very difficult and sometimes painful step to separate themselves from this person who has dominated their life so much, only for that person to exercise further coercive control by withholding the funds needed to bring up their child. I have dozens of examples from my own casework, but I will highlight just two.
Chris Clarkson
Absolutely. We will be here all afternoon.
In one case, a lady spent 12 years trying to get payments from her former partner. Her son is now 25 years old and is a qualified accountant dealing with child maintenance cases. That is the absurdity of the system.
In another case, a woman had fought for more than 10 years and had six court dates before she was finally paid the £16,000 she was owed in unpaid maintenance. She was working multiple jobs just to put food on the table, even though her former partner had the ability to provide the funds her child needed.
I was pleased to support the Child Support Collection (Domestic Abuse) Bill, introduced by my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), as it takes into account the role abuse can play in this process. The two Bills are obviously different, but they have an underlying connection.
The two cases I have highlighted magnify some important points. First, they establish that delays in child maintenance harm children. Secondly, the Bill will help to re-establish trust in the system, as single parents will not have to battle for decades to collect child support. It is important people have faith that the system will be there for them when they need it.
I am proud to support this Bill, which will give financial certainty to thousands of families up and down the country. My hon. Friends the Members for Stroud and for South Ribble, and everyone at the DWP who has worked on this, can be extremely proud that they are doing something that, while seemingly simple, will make a massive difference to a large number of people.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
May I first acknowledge that my hon. Friend the Member for Stroud (Siobhan Baillie), who is not here today, has done some excellent work on this Bill, as has my hon. Friend the Member for South Ribble (Katherine Fletcher) in moving its Third Reading today? I was lucky enough to be called on Second Reading in December. Previous speakers have acknowledged, as would everyone in the House, that many parents are struggling because of recent price rises. I welcome the fact that supporting parents, both single parents and those who are together, was a key theme in this week’s Budget. Childcare provision has been expanded to 30 hours per week for children aged nine months to four years to help drive down household costs, as well as to give parents breathing space to pursue both personal and professional opportunities. However, I am aware of cases, both in my constituency and across the country, of parents struggling further because of a lack of financial support from co-parents with whom they no longer reside.
Parents have a duty to support their children, and that duty remains even if they are not the main day-to-day carer and/or residing parent. I understand that relationships and marriages can break down, for an array of reasons, and parents can often wish for limited communication with their former partner. But in the cases where parents look at ways of minimising child maintenance payments to their former partners, that ultimately means less money available to their children day to day: less money for school uniforms, for food and for extra-curricular activities, which are a vital part of developing skills for children at a young age.
My constituency is home to a lot of young families. One of these constituents, Nicola, came to visit me at my surgery in Croxley Green in April 2022. She is a single mother of two daughters and she came to discuss the difficulties she had experienced in getting paid fairly by the children’s father. What struck me most—this goes back to my point about how these cases can often punish the children most—is that there had been multiple instances of her daughters crying in school because of the nature of their parents’ relationship. Nicola told me about her frustration with the enforcement by the CMS; by September 2022, her former partner was in arrears by more than £13,000. Although the DWP have identified that there are issues with the amount the children’s father has to pay, it has highlighted difficulties in enforcement and delays in carrying out further financial investigations. It has now been a year since Nicola first came to see me, which highlights the difficulties I know many parents have in receiving the child maintenance payments they deserve. It is also a perfect example of how the DWP and CMS are somewhat limited in their powers in investigating and enforcing in these cases.
That is not to say that the CMS and the Government have not done a good job in ensuring that correct payments are made. In the past 12 months, the CMS has arranged more than £1 billion in child maintenance payments. In 2021-22, the Government made more referrals to enforcement agencies than in any other previous year, and the number of liability orders applied for each year is now back to pre-pandemic levels. The CMS works with other Government departments to improve the use of enforcement powers and to explore the possibility of introducing new powers for cases in which people are being wanton.
I welcome the fact that this Bill has been introduced and that it addresses the gaps in the DWP’s enforcement powers. The Bill will amend not-yet-commenced primary legislation to enable the DWP to take further enforcement action without the need to apply to the magistrates or sheriffs courts, instead allowing the Secretary of State to make an administrative liability order. That power, once enacted, will allow enforcement measures to be used more quickly against parents who have failed to meet their obligations. It is crucial that the system is built to ensure fairness for hard-working parents and, most importantly, that it supports the children, who in these cases are the most important. To support people such as Nicola up and down the country, I will be supporting this Bill.
Gareth Bacon (Orpington) (Con)
In common with everyone today, I rise to support the Bill. First, I wish to pay tribute to my hon. Friend the Member for Stroud (Siobhan Baillie) for the work she has done on this matter. As we have heard, she could not attend today, so I also wish to pay tribute to my hon. Friend the Member for South Ribble (Katherine Fletcher), who did an able job in representing her. Some valuable contributions have been made in this debate, but I particularly wish to mention those from the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) and my hon. Friends the Members for Heywood and Middleton (Chris Clarkson) and for South West Hertfordshire (Mr Mohindra), because they have illustrated very well the necessity of this Bill. [Interruption.] My hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) also deserves fulsome tribute—[Laughter.] And perhaps a Locket or a Tune to help her clear her throat!
The Bill is largely technical, but that does not alter its significance, because it will greatly improve the process of enforcing unpaid child maintenance. It is an example of how a Bill can bring the House together to help some of our most vulnerable families. I believe, as do the majority of people, that it is parents’ legal and—more importantly— moral duty to contribute financially to their child’s upbringing. It is completely right that absent parents honour their child maintenance payments and that, when they fail to do so, there is robust enforcement.
In our country, people should never see paying for their children as an optional extra, but according to the last set of published statistics, 872,000 children are covered by Child Maintenance Service arrangements. The service saw an increase in 25,700 children between June and September 2022. In that quarter, it was reported that 61,500 parents—36%—who should have paid via the collect and pay service paid no maintenance. As a father, I find that a scandalous state of affairs and I am sure that all hon. Members agree it should change.
There are only six clauses in the Bill, but I am sure that all right hon. and hon. Members will recognise its implications, as it will help to get much-needed money to children more quickly. The substance of the Bill is largely contained in clauses 2 to 4, with provision to make regulations that will ensure that the powers are used appropriately and provide parents with the opportunity to challenge the decision if they think it is wrong.
Clause 2 amends existing powers that, once commenced, allow the Secretary of State to make an administrative liability order where the paying parent has failed to pay an amount of child maintenance. They will be able to do so, however, only where a deduction from earnings is inappropriate or ineffective. It is hoped that that new power will prevent unnecessary overuse in cases where there are more suitable alternatives. Clause 3 broadens the capability created in clause 2 by allowing the liability order to be varied if, for example, the amount of arrears on which the liability order is based is subsequently found to have been incorrect or where investigations reveal further details about the paying parent’s finances. Clause 4 provides for appeals against liability orders to the first tier tribunal, and amends the route of appeal to allow a right of appeal to a court, and provides for consequential amendments. Clauses 5 and 6 relate to minor consequential amendments and the extent, commencement and short title of the Bill.
To conclude, it takes two to make a baby, so unless a parent is deceased, it is perfectly reasonable to expect two to pay for a baby. The Bill will help to ensure that that happens, so I am happy to support it.
Aaron Bell (Newcastle-under-Lyme) (Con)
It is a pleasure to follow my hon. Friend the Member for Orpington (Gareth Bacon) and to listen to my hon. Friend the Member for South Ribble (Katherine Fletcher) expertly introduce the Bill on behalf of my hon. Friend the Member for Stroud (Siobhan Baillie), who cannot be here today. I know how passionate she is about families because of her time in legal practice as a family law solicitor; how expert she is on such matters; and why she was a great choice to bring the Bill to the House.
Before I turn to the Bill, I want to put on record, because I did not have the chance to speak in the debate, my happiness and delight that the Hunting Trophies (Import Prohibition) Bill passed its Third Reading an hour or so ago.
I commend my hon. Friend for her work on childcare, which she has consistently championed in this place, to some considerable effect as we saw in Wednesday’s Budget. I know that the changes that my right hon. Friend the Chancellor of the Exchequer made will make a real difference to my constituents, to the constituents of all hon. Members, to new families across the country and, particularly, to mothers who want the choice of being able to go back to work and to be supported by the state as they do so.
This is a short Bill, but no less effective for that—in the best tradition of private Members’ Bills on Fridays. From reading my inbox and hearing about some of the cases that my staff work hard on, I know how important the good functioning of the Child Maintenance Service is to many families. When things go wrong, the consequences for the receiving parent and, perhaps more crucially, the children can be profound.
It is frustrating to see people refuse to honour their responsibilities. As my hon. Friend the Member for Orpington said, it takes two to make a baby, it takes two to raise a child and it takes two to pay for a child as well. While I understand that some parents struggle to afford to pay in difficult situations and when there is a change of circumstance—and I will always support constituents, whichever side of the argument they are on, in trying to make that case to the CMS—it is obvious that in some cases parents are deliberately and willingly choosing not to pay what they owe, not financially supporting their children and leaving the other parent, usually the mother, high and dry.
The difference that those payments make to children’s lives is critical. The Nuffield Foundation, a social mobility charity, estimates that as many as one in five single parents on benefits is lifted out of poverty by receiving those child maintenance payments, which means a better future for their children. Parents who receive that money, and in many cases rely on it, should be able to trust the system to move as swiftly as possible to help them recover maintenance arrears when that becomes necessary.
I pay tribute to the CMS’s work and the action it takes to tackle payment breakdowns at the earliest opportunity, to re-establish compliance and to collect unpaid amounts that have accrued. When that is not achieved and the parent is employed, the CMS attempts to deduct the maintenance, including arrears where appropriate, directly from their earnings. As we all know, employers are obliged by law to co-operate with such action, but unfortunately that does not mean it always happens.
Turning to the wording in clause 2, sometimes there are cases where that does not work, either because
“(i) it is inappropriate to make a deduction from earnings order against the person (because, for example, the person is not employed), or
(ii) although a deduction from earnings order has been made against the person, it has proved ineffective as a means of securing that payments are made in accordance with the maintenance calculation in question”.
That happens worryingly often, and that is what my hon. Friend the Member for Stroud is trying to address through this Bill. Under the current legislation, the CMS must apply to the magistrates or the sheriff court to obtain a liability order before the use of other enforcement powers, such as instructing enforcement agents or sheriff officers, or even more stringent court-based enforcement actions such as forcing the sale of a property, disqualification from driving or holding a UK passport, or even, in extreme cases, commitment to prison.
This Bill will amend the uncommenced primary legislation to enable the DWP to take further enforcement action without the need to apply to magistrates or sheriff courts. Instead, it allows the Secretary of State to make an administrative liability order. That will allow enforcement measures to be used more quickly against those parents who have failed to meet their obligations and will reduce the pressure on our courts, since I understand that liability orders at the moment take approximately 20 weeks. The simplification of the system will make it more efficient and get that money more quickly back into the pockets of the people who need it.
This Bill is of great importance in ensuring that the CMS can make the necessary improvements to enforcement processes and get the money to the parent and thus to the children more quickly. We must ensure that parents who are messing about, choosing to avoid their responsibility to their children, know that there will be sanctions against them and that the action taken against them will be swift—thereby not only putting that case right, but providing a deterrent to others who might be tempted to do likewise.
In conclusion, the most important thing is that any changes we make in this area should always have the children at their heart and should benefit the children in what can often be difficult and emotionally charged situations. It is important we have them at the forefront of our minds whenever we do anything in this area. This Bill will enable us to get the legal and the money issues out of the way so that we can focus on the welfare of the children.
Anna Firth (Southend West) (Con)
It is a pleasure to be called in this debate and to follow my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell). He always speaks incredibly well on a Friday, and today is no exception. It is also a pleasure to support my hon. Friend the Member for Stroud (Siobhan Baillie), who has done such a lot of work in this sphere and done a wonderful job in highlighting this issue and piloting the Bill through Parliament. I give credit to my hon. Friend the Member for South Ribble (Katherine Fletcher), who has also done a wonderful job standing in for my hon. Friend the Member for Stroud. I would certainly not know the difference—particularly without my glasses on.
Child support is such an important issue. I was delighted to be in this place to support another Bill on the same topic towards the end of last year, the Child Support Collection (Domestic Abuse) Bill, brilliantly championed in this place by my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart). The fact that there are two Bills on child support before Parliament underlines what an important issue it is and shows that reform of the system is needed so that, in the very unfortunate event of a family breakdown, parents—we must be honest, it is usually fathers—are not allowed to financially abandon their children.
Having children, looking after them and supporting them financially is a huge responsibility, and no one should be able to decide that they simply do not want to pay for a child that they have had. I am therefore very pleased that the Bill means a parent will no longer be able to get out of paying the amount of child maintenance cited in a child maintenance order by playing games, and in particular playing games with our court and administrative system. The Bill will be hugely beneficial to mothers who are doing the incredibly difficult but vital job of providing the day-to-day care that these children need: they will not have the continual, nagging worry about whether a father will pay his dues.
Failure to pay child maintenance has a massive impact on the families who rely on it, as is amply demonstrated by the number of cases and queries that appear in all our postbags and inboxes. I want to raise a particular case with which I have been involved. Quite soon after I entered the House, a lady came to my constituency surgery. Her relationship with her partner broke down, very sadly, while she was pregnant. She discovered at that stage that her partner had been cheating on her, and she has described him as an abusive liar. I cannot imagine the trauma that a woman must experience when she finds out that her partner is cheating on her while she is still carrying his unborn child.
My constituent’s ex-partner has never made his child maintenance payments consistently, apart from a few sparse payments here and there. He works full time, but as soon as the Child Maintenance Service sees that he is working on a PAYE basis for longer than a few months, he either changes jobs or claims that he is not working, and works “cash in hand” to try to get out of paying. He has also been convicted of breaking two non-molestation orders. He has been taken to court before and made to pay some money, but unfortunately as soon as the court has seen him make a few payments, the case is transferred back to the Child Maintenance Service and he very soon stops paying. Obviously arrears then accrue, and he now owes more than £10,000 in unpaid maintenance. He is living the life of a rich man, yet he supposedly cannot afford to pay for his child.
No one should have to go through what my constituent has been experiencing, and I am delighted that the Bill will go some way towards ensuring that parents do not have to go through it any more. Sadly, as we all know, since the CMS was set up 11 years ago, nearly £500 million of maintenance has not been paid. I am pleased that the Government have taken steps towards resolving that, and I believe that the Bill will continue to improve the position.
We have already heard some explanations of the two child maintenance payment systems, direct pay and collect and pay. It is quite complicated, but I think that it bears repetition. For direct pay, the CMS provides a calculation and a payment schedule, but payments are arranged privately between the two parents. That is, of course, far the most favourable way to proceed. Where necessary, for collect and pay, the CMS calculates how much child maintenance should be paid, collects the money from the paying parent, and pays it to the receiving parent. Collect and pay tends to involve cases in which a more collaborative arrangement between parents has failed or not been possible to achieve, or there are high levels of conflict. Paying parents on collect and pay are therefore considered to be less likely to meet their payment responsibilities and, indeed, evidence shows that to be the case.
Clause 2 in particular will assist in the collection of payments from unwilling paying parents. It provides for the Secretary of State to make a liability order when the paying parent has failed to pay an amount of child maintenance, and a deduction from earnings order is inappropriate or has been ineffective. The clause provides an assurance that administrative enforcement measures will be appropriately considered before more stringent measures are taken. As I understand it, in practice, that will mean that enforcement measures will be able to be taken much more quickly against parents who have failed to meet their obligations. I would be grateful if the Minister could confirm that in his summing up.
Clause 3 expands the power to make administrative liability orders by setting out in regulations provision for the variation of a liability order, for example, where the amount of arrears upon which the liability order is based is subsequently amended as more information about the paying parent’s income is obtained. This is important to constituents such as mine where the father has consistently lied about his earnings. Clause 4 gives the Secretary of State the power to set out in regulations provisions that relate to a parent’s right of appeal against a liability order. Those provisions will include the paying parent’s right of appeal to a court, the period within which the right of appeal may be exercised, the powers of the court in respect of those appeals, and provision for a liability order not to come into force in specified circumstances. The provisions in clause 4 will prevent court time from being used to consider day-to-day CMS business that can be completed operationally, again speeding things up. Importantly, the provisions will, therefore, not place any additional or unreasonable constraints on a parent’s ability to seek an appeal.
The Bill is important in ensuring that the CMS can make the necessary improvements to enforcement processes and get money to children more quickly. We must ensure that, when someone asks for help through the CMS, they get help quickly and in a way that makes them feel supported. We must also ensure that parents who are messing about with court procedures know that there will be sanctions and action against them.
This is an incredibly important Bill. It will allow parents in situations like those of my constituent to receive the money they are owed much more quickly and efficiently, and it will help to protect vulnerable children; I am delighted to see that it has support today from across the House. I thank my hon. Friend the Member for Stroud, who is not here today, for giving us the opportunity to debate this issue and for her sterling efforts to ensure that children receive the money that they deserve.
Madam Deputy Speaker (Dame Rosie Winterton)
I call shadow Minister Karen Buck.
Ms Karen Buck (Westminster North) (Lab)
We all know that being a single parent increases the risk of falling into poverty, and that is even more the case when an absent parent does not fulfil their maintenance obligations. We all wish it were not so, but it is, as we know; we have heard examples in contributions this morning and I am sure all of us know from our casework that there are occasions when the absent parent, usually, but not always, the father, will act abominably in seeking to avoid their obligations. I have certainly had such instances in my constituency—and not always, it has to be said, involving those on the lowest incomes.
Labour completely supports the principle that non-resident parents should meet their responsibilities for child maintenance and that where they fail to do so the state needs to step in to enforce payment. As has been reinforced this morning, timely meeting of responsibilities is crucial, because when payments fall behind and the parent with care has to take action and wait for payments, that can cause financial distress and massive psychological distress. So I, too, congratulate the hon. Member for Stroud (Siobhan Baillie) on introducing the Bill and the hon. Member for South Ribble (Katherine Fletcher) on stepping up this morning and taking it through the final stages.
As my hon. Friend the Member for Reading East (Matt Rodda), the shadow Pensions Minister, said on Second Reading, not only do we support the principle, but we recognise that enforcement of child maintenance obligations needs to be improved. This Bill will improve enforcement. It is a largely technical set of measures, but we hope it will make a significant contribution to speeding up the process by which the absent parent can be made to pay. However, we do not think it will resolve all problems with the CMS. Nor, it is fair to say, is it intended to, as I am sure Conservative Members would agree. I think everyone recognises that we are a very long way from having a Child Maintenance Service that ensures that all absent parents meet their responsibilities and that all families receive the financial support to which they are entitled.
As my hon. Friend the shadow Treasury Minister pointed out in the Committee that considered the Bill, last year’s report by the Public Accounts Committee concluded that, in the 10 years since the Child Support Agency was replaced by the Child Maintenance Service, there has been effectively no improvement in the system for parents, children and families. Around half of children in separated families—1.8 million children—receive no support at all from their non-resident parent.
Mark Tami (Alyn and Deeside) (Lab)
We have heard a lot of stories today, and they are always about the very difficult cases, where people work cash in hand, or try to avoid things, and it is important that we pursue those people. We also have people coming to us who say, “I play by rules, but I am pursued all the time, because I am an easy person to get hold of, whereas some of the others are not.”
Ms Buck
I agree with my right hon. Friend. It is really distressing when we see these cases. After separation, often, families will find themselves in financial stress. Even so, many parents will do absolutely everything that they can to put their children first and to meet their obligations. They are of course very angry about the behaviour of those parents who simply do not play by the rules and who, as we have heard, do everything that they can to avoid those commitments—they drop in and out of work, create shadow companies, and conceal their incomes in every way that they can. They do so because, sadly, money is so tied up with emotions after a relationship breakdown that it is often used as a tool to continue to cause emotional damage to those families.
It is concerning that Child Maintenance Service performance seems to have declined over recent years. Of course, enforcement action was negatively affected by the pandemic, as staff had to be redeployed to manage universal credit claims, and the courts were closed. However, performance was already showing a worrying trend before the pandemic, with the number of liability orders in process falling from 6,900 in the first quarter of 2019 to 3,700 in the last quarter of 2019. Things have improved on the most recent data, for the third quarter of 2020, but, at 5,300, numbers remain far below the earlier level. Meanwhile, the number of enforcement agency referrals in process is less than half what it was in 2019. It would therefore be helpful if, in replying, the Minister could update the House on how the Government intend to address these apparent shortfalls in Child Maintenance Service performance since 2018, and reassure the House that this legislation will not lead to any relaxation of efforts to improve performance in the round.
Having said that, I again congratulate the hon. Member for Stroud. I have no doubt that this is important and useful legislation and we on the Labour Benches give it our wholehearted support.
The Minister for Disabled People, Health and Work (Tom Pursglove)
I am grateful to my hon. Friend the Member for South Ribble (Katherine Fletcher) for promoting the Bill here today. We have rightly heard many tributes to her during the debate. She has been a dextrous stunt double for our hon. Friend the Member for Stroud (Siobhan Baillie). I can think of no better steward or co-sponsor of this Bill to deliver on these Third Reading proceedings today, and she should be incredibly proud of the contribution that she is making to the Bill’s passage. I am also most grateful to my hon. Friend the Member for Stroud and I congratulate her on navigating the Bill successfully through its previous stages in the House.
I welcome the broad cross-party support that we have heard from both sides of the House during the debate. That has been reflected in the various contributions, many of which have been impactful and drawn on constituency cases brought to colleagues’ attention. In that spirit, I thank the Opposition for their support for the Bill and extend my gratitude to all hon. Members who spoke during previous stages of the Bill to highlight important points. I am appreciative of their insight. I pay tribute to the Minister responsible for social mobility, youth and progression—the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies)—who has so excellently supported the Bill through to this stage, and to my noble Friend Viscount Younger of Leckie, who has recently taken over ministerial responsibility for the CMS. He has undoubtedly hit the ground running and has been strenuous in his efforts to further improve the service that it provides. I know that he is wholeheartedly committed to continuing in the other place the support for the Bill’s important measures that it is my privilege to provide in its final stages in this place.
As my hon. Friend the Member for South Ribble highlighted so eloquently, the Bill is so important for securing money for children more quickly from parents who fail or who simply refuse to support them. We all understand how child maintenance payments can play an effective role in helping to lift children out of poverty and enhance the life outcomes of children in separated families. The Government are absolutely committed to improving the efficacy of the CMS. The Bill is another significant step forward to ensure that the right action is taken at the right time.
I know and understand why the performance of the CMS is a matter of concern for many colleagues who regularly deal, as I do, with inquiries from constituents who may feel that they are not receiving the level of service that they and their children deserve. However, the CMS has made and continues to make substantial improvements to the service that it provides to many of our most vulnerable constituents. It is committed to delivering service and support to the highest standard and is working hard to transform itself into a more customer-focused, digital organisation, which I am sure is something we all welcome. Although there is still much more we can do, the CMS should no longer carry the stigma with which its predecessors were associated.
That is where I would argue the Bill has an important part to play. It will speed up the enforcement process, which in practical terms will mean getting money to children more quickly, as many hon. Members highlighted in their contributions this morning. It will remove an administrative step while retaining an important appeal right. I understand that the appeal mechanism is tried and tested and works well elsewhere.
It is unsurprising that the Bill has received such a wide welcome. Ultimately, there is no disadvantage to anyone in speeding up the processes and removing the burden on them. The Bill will achieve that by ending the current situation, which requires us to get a liability order through the court. Let me put that into context: applications to the court for a liability order typically take up to 20 weeks to process, which means five months in which no tangible activity can take place to get money to children who are waiting for it. That cannot be right, and it is certainly not preferable. We also want to focus on reducing the burdens on courts as a result of the processes they have to work through, which we want to see streamlined wherever possible.
After the Bill comes into force, we will make regulations under the affirmative procedure, which will allow further scrutiny before their commencement. As my hon. Friend the Member for South Ribble explained, hon. Members and their constituents can be assured that the powers will be used proportionately. The regulations will be developed to help provide that assurance. The secondary legislation setting out the appeal provisions in more detail will follow the affirmative procedure, as I say, so hon. Members will be able to vote on our proposals.
More broadly, we are looking at our enforcement processes and carefully considering how we can make the system work more efficiently overall. Hon. Members may be aware of the excellent work that the Department and my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) are doing to ensure that parents using the service who have suffered any form of domestic abuse will benefit from the additional protections in the Child Support Collection (Domestic Abuse) Bill, which went through its Report stage and received a Third Reading in this House on 3 March. I look forward to following that Bill’s successful progression in the other place.
In conclusion, it is to the huge credit of my hon. Friend the Member for Stroud that she has successfully brought the Bill forward on a cross-party basis and navigated its passage through its earlier stages, most ably supported by my hon. Friend the Member for South Ribble today. Let me also place on record my thanks and those of my ministerial colleagues to officials for all their efforts in helping to get the Bill to this stage and for the work that I know that they will do to help us take it forward.
With that, I am delighted to restate that the Government support the Bill and will continue to support it as it moves through Parliament. I wish it every success. As my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) said, ultimately, this reform is about getting money to children quicker. It is very much a reform with children at its heart.
Katherine Fletcher
With the leave of the House, I take the opportunity to thank the Minister and Members on both sides of the House for their support. I extend my appreciation and that of my hon. Friend the Member for Stroud (Siobhan Baillie) to the Public Bill Office and officials in the Department for Work and Pensions for their guidance.
I am very grateful for the cross-party support that the Bill has received. We have heard from Members from all the nations of the United Kingdom. I particularly give my thanks to the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) and my hon. Friends the Members for Cities of London and Westminster (Nickie Aiken), for Clwyd South (Simon Baynes), for Heywood and Middleton (Chris Clarkson), for South West Hertfordshire (Mr Mohindra), for Orpington (Gareth Bacon), for Newcastle-under-Lyme (Aaron Bell) and for Southend West (Anna Firth).
I would point out that my hon. Friend the Member for Stroud who, as we have all acknowledged, has done so much work on the Bill, has legal training, so I will leave it Members to decide whether potential libel has been committed today by their suggesting that I could possibly be her stunt double. I know that she believes very passionately in this Bill, as do I, and it is an honour to pick it up. On behalf of people in South Ribble and across the country, I am proud to support it. It will make essential improvements to child maintenance processes and, importantly, it will get money to children more quickly. I wish it success as it moves to the other place.
Question put and agreed to.
Bill accordingly read the Third time and passed.
Child Support (Enforcement) Bill
Monday 20th March 2023
(1 year, 1 month ago)
Lords ChamberRead Full debate Child Support (Enforcement) Act 2023 Read Hansard Text
Child Support (Enforcement) Bill
Friday 19th May 2023
(11 months, 2 weeks ago)
Lords ChamberRead Full debate Child Support (Enforcement) Act 2023 Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Baroness Redfern (Con)
My Lords, I am pleased to introduce the Child Support (Enforcement) Bill to this place. After gathering significant cross-party support in the other place—it was passed without Division—I am hoping that noble Lords will continue this and support these important measures. I am sure that, like me, everyone here recognises the important role this Government play in making sure that our children get the very best possible start in life. The Government’s impartial support through the Child Maintenance Service—CMS—is especially crucial when there is a breakdown in the relationship between separated parents which then impacts on their children.
While it is not about taking one parent’s side over another’s, in those situations where parents no longer live together, ensuring that parents without the primary care of their children make regular financial contributions towards the support of those children is so important in keeping children out of poverty. That is why the Bill is such an important measure: it will not only improve the recovery of arrears from parents who have failed to meet their financial obligations to pay child maintenance, it will help to ensure that the CMS continues to deliver a modern, efficient and reliable service in which parents can have confidence. Perhaps most importantly, it will help in getting money to more children faster, because children should not have to suffer.
Before I move on to talk about the Bill in more detail, allow me to provide your Lordships with some further background to the CMS and the introduction of the Bill. The aim of the CMS is to encourage co-operation and collaborative parenting, in the form of family-based arrangements for separated parents in bringing up their children, but where necessary ensuring that they have the option of statutory maintenance arrangements through the CMS. Once parents are in the system, the CMS manages child maintenance cases through one of two service types: direct pay and collect and pay. For direct pay, the CMS provides a calculation and a payment schedule, but payments are arranged privately between the two parents. For collect and pay, the CMS calculates how much maintenance should be paid, collects the money from the paying parent and pays it to the receiving parent. Cases in collect and pay tend to involve parents where a more collaborative arrangement has either failed or not been possible to achieve. Paying parents on collect and pay are therefore considered to be less likely to meet their payment responsibilities.
The difference child maintenance payments make to children’s lives is critical, so it is vital the Child Maintenance Service takes action to tackle payment breakdowns at the very earliest opportunity, to re-establish compliance and to collect unpaid amounts as quickly as possible. Where compliance is not achieved and the parent is employed, the CMS will attempt to deduct maintenance, including any arrears, directly from their earnings. Employers are obliged by law to co-operate with this action. CMS enforcement powers also allow for deductions to be taken directly from bank accounts, including joint and business accounts, either as a lump sum or a regular amount. This is a useful power where the parent is self-employed and taking deductions from their earnings is not possible.
Where such powers prove to be inappropriate or ineffective under current legislation, the CMS must apply to the magistrates’ or sheriff courts to obtain a liability order before the use of other enforcement powers, such as instructing enforcement agents or sheriff officers, or even more stringent court-based enforcement actions, such as forcing the sale of property, disqualification from driving or holding a UK passport, or even commitment to prison.
This Bill will amend uncommenced primary legislation to enable the DWP to take further enforcement action without the need to apply to the magistrates’ or sheriff courts, as obtaining a liability order through the courts is time consuming, instead allowing the Secretary of State to make an administrative liability order. This power, once enacted, will allow enforcement measures to be used more quickly against parents who have failed to meet their obligations.
While getting child maintenance to our children more quickly has to be of primary importance in introducing this power, it is also important that this Bill does not simply allow the CMS to forge ahead with its most invasive and stringent enforcement measures without there being some protections for paying parents. With that in mind, this Bill and any regulations developed in support of it will ensure that important protections are in place for parents. My noble friend the Minister will say more about that shortly, but it is important to reiterate that the provisions being introduced in this Bill and the supporting regulations will allow the CMS to move swiftly and appropriately to enforcement measures, without placing any additional or unreasonable constraints on a parent’s ability to seek an appeal.
Finally, I should like to add that this Bill extends to England, Wales and Scotland. Northern Ireland has traditionally maintained parity with Great Britain by mirroring child maintenance legislation. In respect of administrative liability orders, Northern Ireland has similar uncommenced provisions to those in Great Britain, which it plans to commence, thereby enabling it to use and enforce administrative liability orders. However, due to the suspension of the Northern Ireland Assembly, it will not be possible at this time for it to amend its legislation to match the changes being made through this Bill.
In conclusion, as I hope I have been able to make clear, this Bill is of great importance to the future of children in separated families, and I am therefore privileged to be able to present it to the House. I hope that noble Lords agree with me that the essential improvements to enforcement processes within the CMS that it makes, which will get money more quickly to children, are measures we need to give effect to quickly. I therefore look forward to working with the Minister as we aim to secure the Bill’s swift passage through the House. I beg to move.
Baroness Stedman-Scott (Con)
My Lords, I thank my noble friend Lady Redfern for sponsoring this important Bill in this House. The Bill is important, as it will help to ensure that action is taken to get money to children who desperately need it sooner rather than later.
When I first arrived in the DWP as a Minister, I found that one of my responsibilities was the Child Maintenance Service. I quickly found out that it was not the portfolio area that many Ministers were clamouring to take responsibility for. I suppose you could say that in some cases it might have been the hospital pass. Having said that, once I understood how important it was and how much children and families needed this money, I tried to get to grips with it—and, as some would say, I became quite obsessed with child maintenance. My first ministerial visit was to Gingerbread, and what a baptism of fire that was. I learned more in the couple of hours I spent there than I probably would have just by reading books and papers.
It became very clear to me that some paying parents would do anything they could to avoid accepting responsibility for their children. Noble Lords would not believe the lengths that people would go to in order to avoid doing it. I toyed with the idea of giving some examples. I was not going to, but let me give your Lordships one: getting your brother to do a DNA test to prove that you are not the father so you do not have to pay. That is outrageous. Of course, some hide income in other accounts as well. There are some people who genuinely cannot pay, and there are some who can but who mess about a bit, delay it and cause havoc in the home. But there are some people who shamelessly do everything they can to avoid paying their maintenance. I was not going to have that, and I know that my noble friend the Minister is not going to have that either.
The Child Maintenance Service has a range of tools at its disposal to ensure that it gets the rightful payments that are due. Equally, I should say that there are many parents who do pay—let others follow their example. Exactly how will the Bill improve the experience of child maintenance customers and speed up the process? How much time will the introduction of this administrative liability order save?
I make another plea to my noble friend. For those paying parents who are in dispute with the Child Maintenance Service—there are a fair few of them—I ask that the new liability enforcement orders will not be applied until their appeals have been resolved. As I have said, the Child Maintenance Service has a number of enforcement powers at its disposal. Can my noble friend tell the House what is being done to ensure that existing powers are being used effectively and, if possible, can he share with the House how many orders the Child Maintenance Service currently obtains? Securing payments from paying parents has an impact on the reduction of child poverty. Can my noble friend tell us the effect that child maintenance has on children growing up in poverty?
The Child Maintenance Service is not perfect, but I ask your Lordships to understand and appreciate the effort and commitment of the child maintenance team in using all its powers to secure funding. Please, do not underestimate the effort that is put in. As Minister Tom Pursglove said in the other place, the Child Maintenance Service
“is committed to delivering service and support to the highest standard and is working hard to transform itself into a more customer-focused, digital organisation, which I am sure is something we all welcome. Although there is still much more we can do, the CMS should no longer carry the stigma with which its predecessors were associated”.—[Official Report, Commons, 17/3/23; col. 1119.]
I pay tribute to the child maintenance team, its leadership and its delivery, and especially to the financial investigation unit. If noble Lords spent some time with it, they would see how amazing it is at finding things that other people have not been able to find. At this point, I pay tribute to Arlene Sugden, who led the organisation and has now retired, Chris Smith, and Stuart Richards. If I owed money, I would not want him on my back—I can tell your Lordships that.
Finally, if your Lordships have not gathered already, I am fully supportive of the Bill. I hope that the whole House will stand four-square behind it. I know that there are many other changes that can be made to the Child Maintenance Service and lots of other things we wanted to introduce that have not got here yet. I hope my noble friend the Minister will get them here as quickly as possible, and then we will speed up the process to get more money to children who really need it.
Baroness Bottomley of Nettlestone (Con)
My Lords, what a formidable speech. I felt some sympathy for the Minister, having the previous Minister literally breathing down his neck. I think we know what this bodes for the future. I start with very warm congratulations to my noble friend Lady Redfern on the sensitive and thoughtful way in which she introduced the Bill. We should also thank Siobhan Baillie, the MP for Stroud, who has done a lot of work on it in another place.
We have heard a wonderful, magnificent example of a Minister who has become obsessed with her subject, which I completely understand. We know that, with my formidable noble friend Lady Stedman-Scott, she will not let this subject go; she will be making sure that this goes through. She was a Minister who, like many, did not govern by press notice but by heavy lifting, getting into the detail and seeing what really works. It is easy in government to think that a press notice is an implementation plan. That is not the case. Making something happen and making something change takes far more detail.
This is the most gripping, intractable and difficult subject. I go back as far as the Finer report, commissioned by Barbara Castle in the 1970s—a Labour report, but Barbara Castle did not feel that she could quite swallow the recommendations. I feel that I must share with the House the comments of Margaret Thatcher—another force, like my noble friend—on the Child Support Agency in 1990. I would like the House to discuss where we differ from these objectives:
“We will set up a new child support agency … The whole process will be easier, more consistent and fairer. Our aim is to give the lone parent back her morale and her confidence. Then she will be able the better to use and develop her own abilities for the benefit of her children and herself”.
Those words are slightly quaintly expressed, but we have been struggling over the decades—both Governments—as to how we can make this work better.
I have long been committed to issues that affect children and families. I started work for the noble Lord, Lord Field, at the Child Poverty Action Group, earning £12 a week. That work was particularly about the budgeting behaviour of families at or below the poverty line, on social security benefits. Many of them earned in their poverty; there were lots of different mechanisms. The key lesson that I learned from that is that poverty is debilitating and difficult in many ways, but that unpredictable income is almost worse. You can manage on a low income if you can be confident of the amount that will come through. It is much easier to plan, even on a meagre budget, if the income is consistent. Being unable to rely on a regular source of income creates acute tension, unhappiness and resentment. That is why it is critical that we try to make the maintenance payments reliable, regular and not a source of endless anxiety and unhappiness. It is a reason why I have long been a supporter of child benefit; it is the one benefit that women can rely on—and it usually is the women.
I also oversaw the implementation of the iconic Children Act 1989, steered through this House by the former Lord Chancellor Lord Mackay of Clashfern. Much of the legal work was done by the noble and learned Baroness, Lady Hale. The purpose was to safeguard and promote the interests of children; their interests should be paramount. Lord Mackay used to say that a “natural adjunct” to the Children Act was the Child Support Act. The tension has been to try to make the two Acts, the financial mechanisms and care mechanisms, work in parallel. As all are agreed, we have not reached the destination, but it is still the right place to aim for.
We saw how the Child Support Agency made way for the Child Maintenance Service. It is estimated that there are 2.3 million separated families in Great Britain, with 3.6 million children in those families, and that 60% of separated families have child maintenance payments. Parents in separated families receive approximately £2.4 billion a year in child maintenance payments; we are aware that these are essential to those families’ well-being and financial security.
Children are expensive; children are demanding. They want what their peers have. Parents want to give their children the best they can. How well I remember when I worked for the Child Poverty Action Group how many mothers got themselves into terrible debt at Christmas shopping from catalogues. They would not let their children wear National Health Service spectacles. I from a more confident position was happy to buy nearly everything my children had from a jumble sale—second-hand bikes and toys—but the pride and determination that one’s child will have the best one can give them is deeply entrenched and it is why these financial payments are so important.
Many in this House have experience of working with disadvantaged families. I know that the noble Baroness—whom I like to call my noble friend—Lady Sherlock, who is going to wind up for the other side, has long-standing engagement and commitment, as does my noble friend.
Preparing for this debate, I wondered whether I was getting out of date, so I talked to the best constituency caseworker I know. She expressed in strong terms her deep concerns about the ongoing functioning of the Child Maintenance Service. Dedicated caseworkers inevitably become close to those they help and identify with their anxiety and pain in grievous situations. We all understand that the break-up of a relationship is not only about poverty; it is about the end of a dream and it is almost like an amputation for some. It is fuelled with suspicion, hurt and resentment. There are many psychological and emotional factors, but the fact is that poverty, not being able to rely on an income, compounds all those difficulties.
My caseworker noted a number of parents, usually fathers, doing everything they could to avoid paying maintenance, as my noble friend said: setting up companies to conceal income, refusing to pay, being devious and, in some cases, being absolutely dishonest. The children frequently then have the indignity and pain of seeing the absent parent driving around in a smart car, going on expensive holidays and treating subsequent children with relative luxury. All this reinforces why this Bill, while not being the total answer, has an important part to play.
Mention has been made of Gingerbread. The CAB is similar; it has endless evidence about these examples. In seeking redress or justice, the lone parent has to invest time, frustration and deep resentment, which can of course be cumulative and result in stress and even ill health. As I said, most mothers or fathers do everything they can to give their child the best possible upbringing.
The National Audit Office has said that it can take years before payments are made to receiving parents if the paying parent simply refuses to comply. Running on for years, it is a relatively Bleak House experience of fuelling emotions that nobody wants to have when trying to be a calm, civilised parent and creating a relationship, and one of respect, with the absent parent.
The House will be aware of the 2022 National Audit Office report on child maintenance. Encouragingly, parents now rely less on the state to help them to make maintenance payments—an objective of the 2012 reforms. It is estimated that one in three separated parents have a child maintenance arrangement for which the agreed maintenance is paid in full, but in 2022 the CMS reported that more than a third of parents paid no maintenance at all; of those who do pay maintenance, fewer than 45% pay more than 90% of the amount due. Cumulative arrears amounted to £493 million; the figure is estimated to reach £1 billion by 2031. It is evident that there has to be action and that there are ongoing problems with child maintenance collection and enforcement activities.
Research shows that 60% of single families living in poverty and not receiving child maintenance would be able to escape poverty if they were simply paid the money they are owed. How difficult it is to be a balanced, affectionate parent, having a good relationship with the other parent, while going through all this impossible difficulty and complexity. We have to make it easier.
The Child Maintenance Service has experienced falling compliance figures since 2021, following what had been a period of improving compliance. I appreciate my noble friend’s comments about the Child Maintenance Service: the people in the organisation are dedicated and they care. They are at the receiving end of extremely emotional, often quite angry and maybe irrational people who feel that they have lost out, so they need the patience of a saint. I want to acknowledge the good work that the CMS is doing—but we have to do more.
Under current legislation, direct payment is the default option unless both parents request collect and pay. If the paying parent refuses to comply, as I have said, it can take years before payments are made to the receiving parent.
This Bill is not going to solve all the problems. We have discussed the different measures by which the CMS can ramp up enforcement and collection more quickly. Time is reduced pain; speed will reduce the agony faced by so many. Other measures in the Bill are not enormous but are important and will result in swifter, more effective action.
The Bill constitutes an important step to improve compliance and enable the CMS to do its work better. I doubt that it will be the last word on the subject but it is thoughtful, carefully prepared and practical. I certainly believe that it will improve the lives of affected children and families, up and down our country. I commend all those who have been involved.
Lord Palmer of Childs Hill (LD)
My Lords, I support the Bill and congratulate those who moved it in the other place and the noble Baroness, Lady Redfern, on moving it in your Lordships’ House. This important issue should not have been left to a Private Member’s Bill; I would have hoped that the Government would find government time to introduce it. But we are where we are, and I believe the Government support the Bill.
The debate in the Commons in December 2022 showed the need for the Bill. Members gave many examples from their constituency casework of the trauma in those cases. In your Lordships’ House, we get only the occasional casework, as the complainant rightly consults their local MP, but I think that what we have heard is the tip of the iceberg. There are other cases that we, and even MPs, do not know about.
The Bill is an important measure to aid recovery of arrears from parents who fail to meet obligations to pay maintenance. The Child Maintenance Service has a difficult job. It was launched in 2012 to replace the Child Support Agency and I welcome the anecdotal accounts of how it is performing.
I understand that the Bill is trying to speed things up and I welcome descriptions of how it will streamline matters. However, can the Minister say whether there is recognition of when an absent parent literally cannot pay maintenance? That raises the question of how often these claims are reassessed.
It was a pleasure once again to follow the noble Baroness, Lady Bottomley—we seem to have made a habit of it today—and her trips through history. We had Baroness Nancy Seear earlier and Baroness Barbara Castle in this debate, and others too. It was a pleasure, and I certainly agree with the noble Baroness’s words.
The noble Baroness, Lady Stedman-Scott, gave a virtuoso performance; she has been seriously missed from the Front Bench. She commented on how dreadful she had found child maintenance when she was a Minister. The thing is that most of us are not Ministers. We see some of this, but Ministers or even local MPs probably see a lot more than we ever realise. There were certainly many stories, all of which I believe, but they are all based on the breakdown of a marriage. When a marriage breaks down, there is often a lot of ill will. Who is guilty? Maybe both are, but there certainly is a problem. Who suffers? The children do, and the Bill is trying to rectify that. The noble Baroness, Lady Stedman-Scott, told us how it will work and gave us all the statistics, which means I can shorten my speech somewhat.
We on these Benches heartily support the Bill. There has to be care that when the absent parent cannot pay, there is recognition of that, not driving them into mental illness or bankruptcy when they are not hiding assets. There must be care in introducing the Bill with regard to how the Child Maintenance Service will work, but we on these Benches support the Bill.
Baroness Sherlock (Lab)
My Lords, I thank the noble Baroness, Lady Redfern, for introducing the Bill and all noble Lords who have spoken. As we are in the business of confessing past connections, I should probably remind the House of a very distant time when I served as the senior independent director of the Child Maintenance and Enforcement Commission, and my time as the director of the National Council for One Parent Families, now joined with Gingerbread.
The noble Lord, Lord Palmer, mentioned that this is a Private Member’s Bill but that it would have been nice for it to have found government time. It is not the only one. You wait a long time for a child support Bill, and at least two come along within the month. We currently have two child support Private Members’ Bills going—one more and they could easily have found time for one government Bill, I should have thought. None the less, I am glad it is here and we have a chance to debate it, and I pay tribute to the noble Baroness, Lady Redfern, for bearing the responsibility so firmly.
It was a delight to hear the speeches today. It is good to hear the noble Baroness, Lady Stedman-Scott, back in this territory, released from the confines of government. When they say, “Let Bartlet be Bartlet”, I say, “Let Stedman-Scott be Stedman-Scott”, and let us have more of this passion from the Back Benches. It was also good to hear from the noble Baroness, Lady Bottomley, who I very much regard as my noble friend. I pay tribute to her: for so many years she has had a passion for standing up for children and families who are living in poverty and an understanding of how it is often women at the front line who just hold things together. When the budget is too tight, it is the women who go without food themselves, track down the cheapest things and do all it takes. I commend the noble Baroness for all her work and understanding over the years.
Child support systems operate in sensitive territory. It is in the space between parents who are no longer together and, as the noble Lord, Lord Palmer, said, are sometimes no longer talking to each other, and it is difficult. The reality is that some parents simply do not pay what they owe for their children, as the noble Baroness, Lady Stedman-Scott, illustrated clearly. I know it is difficult having a break-up, but no matter whose fault it was, you may walk away from your marriage or your relationship but you do not get to walk away from your children. You retain responsibility for your children, and they have a right to expect the support of both parents. The state also has an interest, because, as the noble Baroness, Lady Bottomley, and others explained clearly, child maintenance has an important role in reducing child poverty. I will not rehearse that, but there is a public interest for all of us in having a well-functioning child maintenance system. We on these Benches fully support any measures that will help to get non-resident parents, the paying parents, paying what they owe to support their children.
Concerns have been expressed about the performance of the Child Maintenance Service both here and when the Bill was debated in the Commons, but I think there is general agreement that enforcement needs to be stepped up and, in particular, speeded up. Given that, we welcome the provisions of the Bill, which should give extra tools and speed up the use of tools that are already there.
The noble Baroness, Lady Redfern, explained very clearly what happens if a parent fails to make payments as directed: the CMS can use deduction from earnings orders, or DEOs, to try to get the money back in. If they fail, they have to go to a magistrates’ or sheriff court to get a liability order before going to the next level of enforcement agents, stopping people having passports, or whatever.
This Bill changes that situation by amending the uncommenced provisions in Section 25 of the Child Maintenance and Other Payments Act 2008. When those amended provisions are commenced, the Secretary of State will be able to make administrative liability orders which will certify the debt that is owed by the paying parent and allow the CMS to take those further enforcement actions without going to court.
I have some questions of clarification. I say at the outset that I am not asking these questions to make difficulties or because I do not support the Bill. Some of them are questions I might in other circumstances have asked in Committee, but Committee stage may prove to be an unnecessary delay to the passage of the Bill, so I hope the House will indulge me in asking some of those questions now.
First, the 2008 Act allowed for some of its provisions to be commenced by SIs at different stages, but can the Minister explain why these provisions were never commenced? Is there a reason why the Government did not do so, for example, when child support was reorganised wholesale a decade ago? Secondly, I am interested to understand the reasons for the change in approach from that set out in the uncommenced provisions of the 2008 Act.
I am sure other noble Lords will have found it quite hard to get to the bottom of what the Bill is doing. The Bill amends the provisions of the 2008 Act; those in turn amend the 1991 Act. However, the provisions that the Bill amends were never commenced. One of the results of that, I presume, is that, if you go on to legislation.gov.uk and look up the 1991 Act to try to trace through what this will do, you will find that the clauses being amended are not there; they do not exist. I can only assume that the reason for that is that they were never commenced. Perhaps the Minister could tell me that.
I had to get the help of a clerk. In the absence of that or a Keeling schedule, the only way to work out what the Bill will do is to take the 2008 Act, lay it on top of the 1991 Act, lay the Bill on top of the 2008 Act and then trace through what the end result will look like. I did that because I am sad.
Baroness Sherlock (Lab)
A little less mirth at this point, if you do not mind; I am not that sad!
I suggest that if this happens again, although it is an unusual set of circumstances, offering a Keeling schedule to all the sad people around would be a good idea at the outset. It might save us all a lot of time.
There is an added complication, in that, at Second Reading in the Commons, my honourable friend Matt Rodda MP asked why it was necessary for the regulation-making powers in the Bill to be so broad. The Minister, Mims Davies, responded in Committee:
“I know that Baroness Stedman-Scott wrote to him on this point”.—[Official Report, Commons, Child Support (Enforcement) Bill Committee, 1/3/23; col. 10.]
I could not track down the letter in the Library or anywhere else, but a letter was issued on Wednesday this week under the signature of the noble Viscount, the current Minister. I understand that it is to be placed in the Library; I would be grateful if he could confirm that for the record. I am grateful to him for sorting that out. It is a very helpful letter, now that I see it. I am simply saying this on the record so that anybody coming after me who wants to trace the proceedings through will know where to find the relevant papers if anyone else out there is as sad as me and wants to do this in due course.
The effect of all this is that I struggle to be completely clear about what the Bill is doing, so I will ask a few questions. They might be stupid questions because I might have misunderstood it, but I would be grateful to get clarity on the record for now.
As well as moving to administrative liability orders, the big change seems to relate to the process of appealing a liability order. Section 25 of the 2008 Act allows appeal against an order to the First-tier Tribunal. I think that the Bill changes that to a right of appeal to a court. Can the Minister set out the reasons for that change?
I am also not completely clear about the position in relation to a court being able to query the amount of a child support liability. In that letter to Matt Rodda dated 17 May, the noble Viscount said:
“It is also currently the case with court issued liability orders—the magistrate or sheriff cannot question the underlying maintenance calculation”.
Indeed, Section 33(4) of the 1991 Act says:
“On an application under subsection (2), the court or (as the case may be) the sheriff shall not question the maintenance assessment under which the payments of child support maintenance fell to be made”.
I am sorry; I did say that I am sad.
I think the reason for this is that, at the moment, the matter would need to be dealt with on appeal at the First-tier Tribunal. The letter also says:
“The quantum of the debt is dealt with via the Appeals Tribunal—a paying parent can ask the Child Maintenance Service to reconsider any calculation, within 30 days of the calculation decision being made, through the mandatory reconsideration process”.
I am not sure whether that refers to the current situation or to that which will obtain after the Bill takes effect. So I ask the Minister: at the moment—that is, under the previous Act—is it the case that, if the Secretary of State goes to court to get an order, the court cannot question the amount of the liability but the parent can go to the First-tier Tribunal to appeal either the amount or the imposition of a liability order?
I also need help working out what happens after the Bill takes effect. New subsection (4), to be inserted by Clause 4(2), says:
“On an appeal under regulations under subsection (3), the court must not question the maintenance calculation by reference to which the order was made”.
Can the Minister clarify whether, once the Bill takes effect, the parent can appeal the imposition of the liability order to a court but not the amount of the liability? If so, how will a parent be able to appeal the amount of a liability order in future? Will it be only through mandatory reconsideration, or will there be an appeal route thereafter? I am not objecting to these provisions, just seeking clarity on them.
Finally, Section 33(5) of the 1991 Act says:
“If the Secretary of State designates a liability order for the purposes of this subsection it shall be treated as a judgment entered in a county court for the purposes of section 98 of the Courts Act 2003”.
Can the Minister say whether that will still apply to administrative liability orders issued by the Secretary of State?
Having said all of that technical stuff, we certainly do not want to oppose the Bill. Labour wholeheartedly supports the principle that both parents should support their children, that non-resident parents should pay child maintenance and that there should be enforcement for those who fail to pay, especially those who go to the steps that the noble Baroness, Lady Stedman-Scott, reminded us of. I am sorry to say that a considerable number of other examples are out there.
It is clear that enforcement of child maintenance obligations needs to be improved. The Bill should make a contribution to that end by speeding up the process by which non-resident parents can be made to pay what they owe. I hope, with the noble Baroness, Lady Bottomley, that we will in future see a further reduction in those who are not paying all that they owe, and that more children will eventually get the support of both of their parents, as they have every right to expect. For now, I simply thank all noble Lords who spoke today for some excellent speeches. I thank the noble Baroness, Lady Redfern, for her work in this House and Siobhan Baillie MP in the other. I look forward to the reply.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, I congratulate my noble friend Lady Redfern on her excellent introduction to the Bill and for initiating this important debate on Child Maintenance Service processes. As has been said, it has the full backing of His Majesty’s Government, and it gives me great pleasure to speak in support of it today. I will say something about my role, just to reassure the House: far from being a hospital pass, it is generally a great privilege to take on. There is a lot to do in this respect on the Child Maintenance Service, and I want to take forward many of the initiatives and changes that my noble friend Lady Stedman-Scott commenced.
There were a number of questions from the noble Baroness, Lady Sherlock, and I am very grateful for some advance notice of them. I may not be able to answer all of them, but I will do my best. I will answer most of them towards the end of my remarks.
As has been said, this is ultimately about helping children who have faced a particularly traumatic experience. Parental separation can be devastating for children. The work of the CMS cannot entirely put that right, but it can help to give those children a much better start in life that they otherwise would not have had. That is why the Child Maintenance Service exists. I am particularly grateful to my noble friend Lady Bottomley for giving us some history and context, going back to two redoubtable ladies, Barbara Castle and Margaret Thatcher.
Let me start by giving the Bill some of my own context. The purpose of the CMS is to facilitate the payment of child maintenance between separated parents who cannot reach their own agreement. In the financial year ending 2022, it is estimated that there were 2.5 million separated families in Great Britain. In the three-year period covering the financial years from 2020 to 2022, it is estimated that parents with care in separated families received a total of £2.6 billion annually in child maintenance payments, through both private and CMS arrangements. These payments helped to keep around 160,000 children out of poverty each year, a subject raised by my noble friend Lady Bottomley. I hope this has helped to answer one or two points she raised.
I understand how complex and traumatic separation can be for families, and we know that the vast majority of parents want to do the right thing and provide financial support for children they no longer live with. This is a challenging job undertaken in very difficult circumstances; these points have already been made by some other Peers in this short debate. CMS staff work incredibly hard to collect maintenance so that separated families receive the financial support they are due.
My noble friend Lady Redfern so eloquently explained how the CMS manages cases through one of two service types, and how it will take action to re-establish compliance and collect any unpaid amounts that have accrued. For parents who choose not to comply with their obligations, the CMS will attempt to deduct their maintenance and any arrears directly from their earnings. This is done via a deduction from earnings order or request, and employers are obliged by law to take this action. Where parents are self-employed, deductions can be made directly from solely held, joint and business bank accounts.
The aim of enforcement is to recover money needed to support children, as mentioned earlier, not to punish paying parents. However, where parents refuse to pay and all other avenues have been exhausted, the CMS can apply to the magistrates’ court, or sheriff courts in Scotland, to obtain a liability order. This enables the use of more stringent enforcement powers, such as instructing enforcement agents and other court-based enforcement actions.
However, the liability order process is now outdated, and making an application to court in each case is administratively burdensome. Currently, applications to court for liability orders typically take about 20 weeks to process, meaning five months where no tangible activity can take place to get that money where it is needed. Moreover, the debt will accumulate, putting the parent further into debt and making it harder to exit that spiralling situation.
This Bill, through my noble friend, amends existing powers which, once commenced, will allow the Secretary of State to make an administrative liability order where the paying parent has failed to pay an amount of child maintenance, without the need to make an application to court. This means that the CMS can react quickly and start those crucial first steps on the enforcement journey much sooner, which will substantially speed up the enforcement process, as was raised by my noble friend Lady Stedman-Scott in her eloquent speech. I applaud her, adding to the complimentary comments made by my noble friend Lady Bottomley. She has made vital important improvements to the CMS. She was a staunch advocate for its work securing money for children, as she said.
Most paying parents want to do the right thing and support their children, but we recognise that some of those parents might be struggling. I was struck by the important comments made by the noble Lord, Lord Palmer, who highlighted that some of them genuinely struggle and that there is a sensitivity involved in ensuring that we remember that. The noble Lord asked how often assessments are revalued if paying parents are struggling. Parents can report changes of income at any time. Where the change is greater than 25% of the income recorded in our system, we will alter the liability. He will know that the calculations are reviewed annually. In these tragic cases where parents cannot afford to pay their arrears because of other debt, which does happen, in most circumstances the CMS will aim to agree an affordable and sustainable payment arrangement which settles the outstanding arrears within two years. The CMS can also signpost paying parents to relevant organisations if there is a declaration of hardship. I say again that these are very sensitive issues. I add my comments to those of noble Lords concerning those on the front line for the Child Maintenance Service, who do their best in these difficult circumstances.
However, rest assured, as I know that the noble Baroness would wish me to say, we will not hesitate to use our enforcement powers wherever necessary for those relatively few parents who will find every which way not to pay. We are targeting our use of enforcement agents and liability orders more effectively, and the processes are more efficient. To answer a question raised by my noble friend Lady Stedman-Scott, in the year to December 2022, the CMS was granted 9,600 liability orders in England and Wales. The CMS has worked to target the use of liability orders more effectively. Processes are now more efficient and on average the CMS is collecting more money per liability order in process. To ensure that these powers are used proportionately, the Bill will stipulate that they will only be used where a deduction from earnings order is inappropriate or has been ineffective. The Bill will also allow the liability order to be varied if, for example, the amount of arrears upon which the liability order is based is subsequently found to be incorrect because investigations have revealed further details about a paying parent’s finances which were divulged to the CMS previously.
Further protections will be made available through secondary legislation, which will give parents the right of appeal while setting out some parameters around the appeal process—including the period within which the right of appeal may be exercised, the powers of the court in respect of those appeals, and for a reliability order not to come into force in specified circumstances. I will say more about secondary legislation in response to the questions raised by the noble Baroness, Lady Sherlock.
The appeal provisions through secondary legislation will be reflective of powers already in use and working well for other child maintenance enforcement measures, such as those which allow for deductions directly from a parent’s bank account. Where a valid appeal has been made, the CMS will not act on a liability order until the appeal has been resolved by a court. I hope this answers the question raised by my noble friend Lady Stedman-Scott. They will also reflect current provisions for liability orders by preventing the court questioning the maintenance calculation as part of the enforcement process. Where a parent disagrees with the calculation, there are already alternative routes they can take. They can ask the CMS to reconsider it through the mandatory reconsideration process and subsequently appeal to the Tribunals Service if they are dissatisfied, or they can report a new change of circumstances, which could lead to a new calculation.
To develop the secondary legislation on the Bill, my department will consult and engage with stakeholder groups, as well as other government departments, such as the Ministry of Justice, and the devolved Administrations, where appropriate, to ensure that parents are suitably supported. The secondary legislation will follow the affirmative procedure, so this House will be able to debate the proposals put forward.
My noble friend Lady Bottomley touched on enforcement improvements, and I shall go a little further and reassure her. The House will know that the CMS has made improvements to enforcement processes to increase the effective use of powers. This includes simplifying deductions from earnings and increasing efficiency by reducing the manual intervention required, and the CMS is also making better use of deductions from bank accounts. This has increased the volume of deductions and means that money is being collected more quickly for children even before the Bill. Working in partnership, the CMS has improved court processing times by introducing virtual court presenting and electronic exchange of documentation. Only 8% of the total maintenance due to be paid since the start of the CMS remains to be collected through collect and pay. Just to put this in context, this was as high as 17% in March 2015.
My noble friend Lady Bottomley also touched on paying parents—there was a theme anyway about paying parents and some of them avoiding their obligation to pay. I say again that we are aware of a small number of parents whose maintenance liability is inconsistent with their financial resources. Cases involving complex income or suspected fraudulent behaviour can be looked into by the FIU, the financial investigation unit. This is a specialist team that can request information from a wide range of sources to check the accuracy of information that the CMS is given.
The noble Baroness, Lady Sherlock, asked about Section 33(5) of the 1991 Act. I can give her some assurance—it may be that I have to follow up with more detail—that this power is not used because, since 2015, regulations have allowed the CMS to share information directly with credit reference agencies. The Bill does not affect those data-sharing provisions and the CMS will retain the means of disclosing information to credit reference agencies when required.
The noble Baroness also asked why the provisions that the Bill amends are not shown in the 1991 Act on GOV.UK. I may have to follow up with a letter on this, but they are not on GOV.UK in the 1991 Act because they are uncommenced. I think that is what the noble Baroness said, but I will look at my reply and see if I can enhance what I have just said.
I have a very short reply to the noble Baroness’s very important point about the missing letter to Matt Rodda: yes, we have written and, yes, it is now deposited in the Library, so I hope that is helpful for the House in general.
The noble Baroness, Lady Sherlock, asked a broader question about what the Bill actually does. I think she knows what the Bill does, but she focused on the commencing of administrative liability orders and the appeal routes, and I will say a little more about that. One of the questions was why the provisions were not commenced in 2012. We considered commencing these powers in the past, but the powers as originally drafted included a right of appeal to the First-tier Tribunal. This would be an expensive option for the Child Maintenance Service and would create unnecessary demand for the Tribunals Service. Linked to that is the question of why there is a change to the appeal route; I think this is central to the questions she raised. Our intention is now to commence these powers with certain changes we are making through the Bill, including replacing the requirement to create a right of appeal to the First-tier Tribunal with a more appropriate court-based appeal. Provisions relating to appeal rights will be set out in regulations, so there is more discussion to be had on this and I hope that provides some help.
I am aware of the time. I hope the House recognises the importance of this Bill; it has the full support of His Majesty’s Government and I very much welcome it.
Baroness Redfern (Con)
My Lords, I thank all noble Lords who have contributed to this important debate and the Member for Stroud, Siobhan Baillie, in the other place. Importantly, I also thank the Public Bill Office and officials in the Department for Work and Pensions for their guidance. This Bill will achieve administrative efficiencies for the Child Maintenance Service, not just for the taxpayer. It will introduce a quicker and cheaper process to pursue enforcement for people who are waiting for money. That money will be collected for more children, providing them with the financial support they need to get a good start in life, although we must do much more. I acknowledge that the CMS does an incredibly challenging job in very difficult circumstances.
I thank my noble friend the Minister for his contribution and direct responses to the queries posed today. I also thank all noble Lords who have spoken. I hope that, with continued cross-party support, this Child Support (Enforcement) Bill will continue through the House. I beg to move.
Child Support (Enforcement) Bill
Monday 19th June 2023
(10 months, 2 weeks ago)
Lords ChamberRead Full debate Child Support (Enforcement) Act 2023 Read Hansard Text
Baroness Redfern (Con)
My Lords, I understand that no amendments have been set down to this Bill and that no noble Lord has indicated a wish to move a manuscript amendment or to speak in Committee. Therefore, unless any noble Lord objects, I beg to move that the order of commitment be discharged.
Child Support (Enforcement) Bill
Friday 14th July 2023
(9 months, 3 weeks ago)
Lords ChamberRead Full debate Child Support (Enforcement) Act 2023 Read Hansard Text Read Debate Ministerial Extracts
Baroness Pidding (Con)
My Lords, on behalf of my noble friend Lady Redfern, I have a few brief comments to make. I express my sincere gratitude to my noble friend for her stewardship of the Bill in this House. She has been struck down by that ghastly virus and cannot be with us today, but I am glad to say that she is making a good recovery.
It is an honour to pick up on the hard work of the noble Baroness, Lady Redfern, in introducing the Bill and leading both its Second Reading and Committee stage. I am pleased that the Bill has now reached its final stage in this House today. I thank the Minister and his officials for their support, as well as those noble Lords who supported the Bill on Second Reading. I am of course grateful to my honourable friend Siobhan Baillie MP for introducing the Bill in the other place, and to Katherine Fletcher MP, who stood in for Ms Baillie during Third Reading.
The Bill will make essential improvements to child maintenance processes. Crucially, it will get money to children more quickly. Finally, I say on behalf of the noble Baroness, Lady Redfern, what a privilege it has been to take the Bill through its stages in this House, and for me to follow up today. I hope that it can now move to Royal Assent and implementation as quickly as possible. I beg to move.
Baroness Sherlock (Lab)
My Lords, I thank the noble Baroness, Lady Redfern, for piloting the Bill through this House and, along with the rest of the House, wish her a speedy recovery. I also thank the noble Baroness, Lady Pidding, for standing in for her today so crisply and effectively. Thanks are due too to the Minister and his team, both for their work on this Bill and for their briefing of Peers to help us understand the context in which it sits. I am grateful also to Gingerbread and the charities that work so hard in this area.
We on these Benches wholeheartedly support the principle that non-resident parents should pay child maintenance and that there should be enforcement for those who fail to pay. The Bill should make a small but welcome contribution to that end by speeding up the process by which the non-resident parent who is in arrears can be made to pay what they owe. I hope that in future, we will see a further reduction in the amount of child maintenance that goes unpaid. There is still work to be done to increase compliance with the child support regime and to ensure that it becomes the norm that both parents continue to support their children, whatever happens to their relationship with one another.
For now, I simply thank again the noble Baroness, Lady Redfern, and Siobhan Baillie MP, and wish the Bill well.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, I congratulate my noble friend Lady Pidding, speaking on behalf of the main sponsor of the Bill, my noble friend Lady Redfern, on ensuring that the Bill has reached its final stages. I wish my noble friend Lady Redfern a speedy recovery.
As mentioned at Second Reading, the Bill has the full backing of His Majesty’s Government, and it gives me great pleasure to speak in support of it today once again. I also thank the noble Baroness, Lady Sherlock, for the thoughtful questions she raised at Second Reading. I hope the letter I sent in response has provided her with some clarity on the issues raised. I very much take note of her comments today.
This Government are committed to improving the support the Child Maintenance Service offers to separated families, so the Bill makes important improvements to CMS enforcement processes by amending existing powers. Once commenced, this will allow the Secretary of State to make an administrative liability order where the paying parent has failed to pay an amount of child maintenance, without the need to make an application to court.
On the point raised at Second Reading by the noble Lord, Lord Palmer, who is not in his place, I would like to reassure the House that the central protections for paying parents will be provided through secondary legislation. This will give parents the right of appeal, while setting out some parameters around the appeal process. First, this will include the period within which the right of appeal may be exercised, and, secondly, the powers of the court in respect of such appeals. Secondary legislation will follow the affirmative procedure, so your Lordships will be able to debate the proposals eventually when they are put forward.
To conclude, I am very pleased that there is cross-party support for my noble friend’s Bill, and that this House will agree to its final passage today.
Royal Assent
Thursday 20th July 2023
(9 months, 2 weeks ago)
Lords ChamberRead Full debate Read Hansard Text Amendment Paper: Public Bill Committee Amendments as at 7 December 2022 - (7 Dec 2022)