Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps his Department is taking to improve the enforcement of child maintenance obligations in cases where non-resident parents repeatedly change employment or sources of income in order to evade their child maintenance liabilities.

Where a paying parent changes jobs, The Child Maintenance Service (CMS) uses real-time information from HMRC where available, to quickly identify new employment and adjust maintenance calculations accordingly.

People who are self-employed are required to keep accurate records of their business income and expenses for tax purposes. HMRC can charge penalties for inaccurate reporting where it results in tax being unpaid.

Where the information available from HMRC does not give rise to a liability which accurately reflects what a customer believes a paying parent should be paying, the parent can seek a Variation. Variations allow the CMS to look at some circumstances which are not covered by the basic maintenance calculation. A variation can be requested on grounds of diversion of income. This is when the paying parent may be able to control the amount of income they receive. This includes diverting income to another person or for another purpose (including excessive pension contributions).

Cases involving complex income can be investigated by the Financial Investigation Unit (FIU). This is a specialist team which can request information from financial institutions to check the accuracy of information the Child Maintenance Service is given.

If paying parents fail to meet their financial obligation to their children, the CMS has a range of strong enforcement powers including deduction from earnings orders and bank accounts, removing a parent’s passport or driving license and commitment to prison. These require time to be deployed effectively; this is obviously frustrating for parents, but is necessary to ensure that, as far as possible, the right person pays the right amount without imposing an excessive burden on employers, the banks, or the court system.

The government is working to introduce administrative liability orders which will replace the current requirement for the CMS to apply to the court for a liability order. Introducing a simpler administrative process will enable the CMS to take faster action against those paying parents who actively avoid their responsibilities and will get money to children more quickly.

Once the system is in place, wee expect the new liability order process in the majority of cases to take around 6 weeks. Changes will mean the CMS can use its strong enforcement powers more quickly to go after those who wilfully avoid their financial obligations to their children.