That this House has considered potential improvements to child maintenance services.
It is a pleasure to serve under your chairmanship, Mr Twigg. I am very grateful for being granted the time to shed light on the Child Maintenance Service, which I will refer to as the CMS, not least because I, along with the help of colleagues, set up a new all-party parliamentary group on this issue in October last year, and because the Government have published an important review this morning, which I will come to shortly. I want to put on the record my thanks to organisations such as Gingerbread, One Parent Families Scotland, Refuge, Women’s Aid and Surviving Economic Abuse, which have taken the time to educate the APPG on this issue. I also thank the brave constituents from all over the UK who have shared their experiences with us.
To put it plainly, I am afraid that the CMS is not working. It is failing receiving parents, paying parents and survivors of domestic abuse, but, most of all, it is failing children. Roughly 120,000 children in the UK receive no maintenance, and a high number receive a meagre portion of what they are entitled to. Since launching the APPG, we have received floods of correspondence from people who do not know which way to turn. I put it to you, Mr Twigg, that the CMS is broken, and we MPs cannot make it work on an individual case-by-case basis. I believe it is time for a complete overhaul of the service.
I congratulate my hon. Friend on securing this important debate. He started by rightly pointing out the many cases that cross constituency MPs’ desks, and our caseworkers have to deal with very sensitive and difficult cases, the vast majority of which involve mothers. I have had a terrible case of a mother tirelessly pursuing her ex-husband to pay up for nine years, and he has found every which way to game the system. I have also heard from a father who has erroneously paid £18,000 of arrears, despite having evidence from His Majesty’s Revenue and Customs that he was not earning money during the period for which he has been charged. Does that not show the complete incompetence of the CMS? It needs to be able to work with HMRC and communicate clearly with parents, but it also needs to have the teeth to take enforcement action where parents are not paying up.
My hon. Friend makes some very valid points indeed. Perhaps I should also pay tribute to the staff in my own office, and in the offices of all other MPs, who do fantastic, challenging and difficult work. It is very stressful for the staff members involved, so I pay tribute to them.
I want to focus on the ways in which the CMS can better support survivors of domestic abuse and safeguard receiving parents and their children from falling into poverty. It is quite clear that the CMS is not specialised or tailored to support survivors of domestic and economic abuse, so we in the APPG are glad to hear that the Government plan to use Dr Samantha Callan’s recommendations to introduce new domestic abuse training for CMS caseworkers, which will be delivered by a third-party external agency rather than in-house, as set out in the review published this morning, for which I thank His Majesty’s Government. However, our concern is that this does not go far enough. The training should be delivered by a specialist organisation, such as any of the organisations I have already thanked.
I am also glad to hear that the Government plan to protect survivors from having direct contact with abusive ex-partners when trying to obtain child maintenance payments, by giving them the choice to be moved on to collect and pay, the system by which the CMS collects a payment from the paying parent and pays it to the receiving parent without either party having to make direct contact, allowing claims to be made safely. That is an important point.
I understand that the system is more costly for the Government, but we strongly urge that these charges to the paying and receiving parents—20% and 4% respectively —are dropped for survivors of domestic abuse. The charges exacerbate already abusive relationships; they make them worse. Abolishing them would also be a simple way to safeguard against further refusal to make payments.
This work on child maintenance is incredibly important. The Work and Pensions Committee has also been looking at these issues and I have found the Ministers and the teams at DWP to be very receptive. Does the hon. Gentleman agree that when we are considering how to get money to parents through an enforcement process, the speed of the implementation of enforcement is just as important as the actual tool, and that involving courts can sometimes seriously delay the enforcement? Also, would he be willing to look at my private Member’s Bill about child maintenance enforcement options, which has Government backing?
I thank the hon. Member for her intervention. I think I can safely speak for all members of the APPG in saying that we would endorse what has just been said and we would gladly look at her Bill. One of the most encouraging aspects of the work—early as it is—of this new APPG is the cross-party support that there is for it. Regardless of political colour, there is a recognition that there is something very wrong and I am sure that we can improve that.
I will re-emphasise my opening point that currently the CMS is not working for anybody. In my own office, the bulk of cases come from constituents who are paying parents and who are being unfairly treated by the CMS. We have found that it is often the case for parents who have shared care that one parent has the child for more days than the other and is entitled to various child benefits but then asks for maintenance on top of that, despite the other parent caring for the child for two to three days a week without receiving any support from the Government. So there are different ways of looking at this issue.
In my office, we have also seen cases where parents have been making their payments properly and on time, but they have had those payments treated as being “voluntary”, and so they are not counted towards assessed payments.
It is clear that we need a fundamental overhaul of the way that the CMS works, so that it better protects receiving parents from economic abuse and the threat of poverty, and so that paying parents are not being unnecessarily chased by the CMS for payments they do not owe. This would require a proper and thorough understanding of domestic and economic abuse, a fundamental link between the DWP and HMRC, and an urgent review of the internal administrative efficiency of the CMS.
In closing, I will simply say that I make these remarks in this place in all sincerity and I hope that we can move forward on a cross-party basis, with help from His Majesty’s Government, to tackle this issue, which cuts deeply into many people’s lives and for the worse.
It is a pleasure to serve under your chairmanship, Mr Twigg, just as it is a pleasure to serve alongside you as a neighbouring MP. I thank the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for leading the debate. His speech was eloquent and powerful, and contained some useful pointers for the Minister. As my good friend and colleague stated in his opening remarks, this is a cross-party issue. We have constituency offices and teams that are inundated by the consequences of a system that is not fit for purpose. I welcome this opportunity to speak about the ways in which we can improve the Child Maintenance Service. Other MPs will highlight specific cases to inform the debate, and undoubtedly the Minister will have a number of takeaways.
The parents of hundreds of thousands of children are in receipt of child maintenance at any one time. When issues occur, they can blight family relationships. Many have already broken down, and some are quite toxic, in terms of domestic violence and so forth. Ultimately, the real harm and hardship are focused on the children. They are who the system is about: the system is there to protect children and help with their life chances. It is vital that it functions well.
We all agree that the CMS has many problems—not least the fact that so much maintenance goes unpaid. Only one third of families with maintenance arrangements have working agreements that see the money paid in full. That is not good enough. Almost half of children in single parent families live in poverty, and in-work poverty has hit record levels. It is no surprise that, as the evidence clearly shows, receiving child maintenance on time and in full lifts children and their families out of poverty.
I want to raise a particular case that my staff and I have been dealing with. We have been dealing with many cases, but this one highlights a number of the problems that constituents face. My constituent is called Danielle. She was forced to contact the Child Maintenance Service after a former partner refused to pay the amount calculated by the CMS to support their two children. A deduction of earnings order was implemented. When, in November, Danielle did not receive the payment, she was told that, although the employer had taken the money from the father that month, it had not forwarded that payment to the CMS.
It is a pleasure to serve under your chairmanship, Mr Twigg. I express my sincere thanks to the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for securing today’s debate and for setting up the child maintenance services APPG. Two of my constituents, Laura and Nicola, attended a meeting of the APPG this morning to share their experiences of the Child Maintenance Service, and that has done a great deal to make them feel that finally their voices are being heard.
Back in May, the hon. Member for Motherwell and Wishaw (Marion Fellows) led a debate here in Westminster Hall on this very topic, and in that debate I spoke about some of the long-running difficulties that my constituents had been having in getting the payments that they were owed by the paying parent in their cases. “Disappointing” is not a strong enough word for how it feels to be here seven months on, knowing that those constituents have yet to see any meaningful changes in their cases.
It is hard for me and my team when we see a new CMS case cross our desk. We know that constituents expect us to be able to do something to sort the problem out for them. We have the same expectations of ourselves. But we also know that there will be months of back and forth and most likely very little to show for it at the end. That is not because we—both Members and our staff—are not trying hard enough, and I am sure that it is not because the staff at the CMS do not have sympathy or want to help. It is because the system is not fit for purpose. Reforming it for the benefit of the service users must be an urgent priority for Ministers.
I know that some headway is being made. I welcome Dr Samantha Callan’s report today on the CMS response to domestic abuse, for example. I also welcome the response to that report from the new Minister on this matter, which reflects support for changes that many CMS users and their elected representatives have been calling for.
I am very glad that the hon. Member has made a point of drawing a line between the best efforts of the CMS staff, and the system. I want to place it on the record that my own office has no problem with the people on the other end of the email or the telephone. I do not want that to be misunderstood.
I thank the hon. Member for making that point; it is exactly what I was meaning. It is not incumbent on the CMS staff to sort out every single problem, but they need to be given the tools to be able to help us as parliamentarians and to help, ultimately, our constituents.
The report today by Dr Samantha Callan is a long report, and I admit that I have not yet had an opportunity to review it in full, but I am pleased that long-running issues are finally being reviewed and addressed. Dr Callan’s report rightly highlights the fact that the space in which the CMS operates is unusual and tricky and that, as she puts it,
“The CMS is a state agency that is tasked with intervening in an area of social life—parental separation—that is often highly emotionally charged, where people are not always able to act rationally, and where contact with both parties is required in order to get money flowing for the benefit of children.”
She also highlights the fact that the CMS’s remit is to administer the scheme, but it does not have a statutory safeguarding responsibility or duty of care.
One of the key recommendations that Dr Callan’s report has made, and Ministers have accepted, alongside others, is to allow receiving parents who are survivors of domestic abuse to access the collect and pay service without the consent of the paying parent. The reasons behind that are clear and it is welcome that they are being recognised through changes to the system.
I have heard deeply upsetting stories of paying parents using the direct pay system—where they pay maintenance into the receiving parent’s bank account—to continue to control and abuse their ex-partner. There are stories of payments being split into small chunks, with abusive messages left in the payment reference box as a means to continue the abuse. It is correct that that has changed, but I think that the change could and should be applied more broadly. Where paying parents refuse to keep up with payments via direct pay, receiving parents should be able to request use of the collect and pay method and to feel reassurance that their request will be granted.
It is a pleasure to serve under your chairmanship, Mr Twigg. I thank my hon. Friend the Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for securing this important debate. In the past year, I have observed a marked increase in the number of constituents contacting me to share the difficulties they are having with the Child Maintenance Service. I would like to say at the outset that I echo the comments made about the individuals at the end of the hotline desperately wanting to help and to be supportive. It is the system itself that I have an issue with.
The first point I want to raise is about the need for improvements in customer service and case management. The CMS is, in the words of one constituent,
“absolutely too difficult to deal with.”
People are left waiting on the phone for hours to speak to caseworkers, only to be told that they are unable to help with the query. Electronic communications often leave much to be desired. One constituent told me they receive updates at 10 pm on a Friday, resulting in a weekend of stress, as they are unable to seek further information or take action until the following Monday. Many individuals relying on the CMS are already under immense emotional strain, and the service should not add to that burden.
When things go wrong, they are not always addressed quickly enough. One particularly concerning example came from a constituent who, despite taking over custody of his two children in March last year, is yet to receive any child maintenance payments for one of them. We are told that the failure is down to an IT error—the child’s middle name is used in one location and not in another. It is “computer says no” gone mad. We are told the CMS is working to resolve the issue, but my constituent first raised it in July, and it still is not resolved. Given the serious financial implications that the error could have, it should be resolved urgently, particularly given the rising cost of living. It is just not good enough that a parent has not received the child maintenance they have been owed for so long because of an IT error.
It is a pleasure to serve under your chairmanship, Mr Twigg. I congratulate the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) on securing the debate, and I thank him for chairing the APPG on child maintenance services this morning. As the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) alluded to, I have done this before. In fact, I have lost track of the number of times I have taken part in or led debates on the Child Maintenance Service. It is quite difficult to stand here and recall that nothing appears to have changed in the seven and a half years I have been pursuing this important topic. I will try to remain calm and measured and not get upset, as I sometimes do when thinking of the cases that have gone through my constituency office.
I want to make it clear that I am not here raging against paying parents alone. I am not here raging against receiving parents alone. I am here, as I have always been in these debates, to help the children involved. It is important that we all remember that, at the end of these esoteric debates, with everything we talk about, there are children who—through no fault of their own—are being pushed into poverty and who are part of the emotional abuse that sometimes takes place when parents separate.
I will do the formal bit—the bit with figures. DWP figures show that since 2012, when the CMS began, £512.6 million in unpaid maintenance has accumulated. That does not take into account the maintenance arrears that the CSA accrued over time. The CMS was supposed to be an improvement on the CSA system, but I cannot see—nor have I ever been able to see—that that is the case. The SNP—in the whole—and I have repeatedly called for effective enforcement action to be taken in the collection of maintenance arrears. Gingerbread ran a huge campaign on the issue as well. Some children go right through the system without getting what they should and then pass out of the system. They have been brought up in poverty as a result of parents not paying what they should.
The hon. Lady is speaking with extraordinary power on this issue. Does she agree that even if a child is fortunate enough to get through this, it can still leave a mark on them for the rest of their lives?
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When it comes to safeguarding receiving parents from falling below the poverty line, I support the call for the CMS to make mandatory minimum payments to survivor receiving parents and to chase the paying parents themselves. This would take the burden of feeling forced to make direct contact away from the survivor and protect them from potential financial ruin. Given the historic failure of the CMS to enforce payments from perpetrators of economic abuse and the current cost of living crisis, we believe that the Government should seriously consider this recommendation.
Many of the problems come down to a fundamental breakdown of communication between the Department for Work and Pensions, and His Majesty’s Revenue and Customs. Perpetrators of economic abuse are able to get away with declaring no income if they are self-employed or a business-owner, therefore escaping the obligation to pay maintenance; this will be a situation familiar to Members of this House from all parties. The perpetrators are also able to avoid payments as the CMS has no legal enforcement capability, despite child maintenance being a legal obligation.
The Public Accounts Committee found that unpaid maintenance owed to parents on collect and pay to distribute payments is set to rise to £1 billion by March 2031. Can you believe that? The review by the National Audit Office in March 2022 stated that the work of the CMS has
“not, so far, increased the number of effective child maintenance arrangements across society.”
My constituent works full time, but without that money, she was forced to go into her overdraft to pay for the basics in life. The cost of living challenges at the moment are well documented. Although Danielle has now received that money, the next payment did not arrive either. She was advised by the CMS that the employer stated that it would not transfer anything further until February. She was also told that she was not the only parent waiting for maintenance payments to be sent from that employer. It is clear that that employer is causing a multitude of problems not only for Danielle but for a number of constituents in my patch and in other constituencies in the area. The CMS may be forced to take the company to court to obtain the money, but the decision will be balanced against the cost to taxpayers of taking such action. That may result in my constituent waiting even longer for the money that she and, very importantly, the two children desperately need.
In the meantime, Danielle has been forced to incur additional costs by using an extended overdraft and borrowing hundreds of pounds from her pensioner parents, who do not have much money themselves. That could go on for a considerable time. She is talking about actually finishing work, coming out of the labour market and looking at other options, such as benefits. Surely the system is shooting not only Danielle in the foot, but her children and the taxpayer itself. The enforcement system is simply not working to protect children. There has been mention of the report that has finally been published today. I need time to digest that, as I am sure other hon. Members do. I hope that it addresses some of these issues and some of the issues already highlighted in the Chamber today.
Finally, and more specifically in relation to the case that I have raised here, will the Minister comment on how we can improve the deduction from earnings system, so that employers do not force families into debt or overdrafts or even on to benefits, and we ensure that children have the best start in life with a system that works effectively?
In fact, that was the request my constituent Nicola made to the CMS, which refused. She is no longer in contact with the paying parent, but she has been told on various occasions that she would need to go away and gather information on his earnings or her daughter’s entitlement. She is not the only one of my constituents to be told that. She says she is made to feel like a neurotic, money-grabbing woman every time she complains about the system.
Another constituent, Laura, has explained that her mental wellbeing and self-esteem have taken a real knock from the ongoing back and forth with the service. Imagine someone being made to feel in the wrong for fighting for the money they are entitled to in order to meet the basic costs of raising a child. As it stands, it is far too easy for paying parents to avoid payments, under-declare their income and hide income streams. That is a key aspect of almost every case involving CMS that comes to my team.
Constituents report that they are even advised by the CMS to subsidise their income—essentially to claim benefits—if the paying parent does not keep up with their financial obligations. That entirely defeats the original intention behind the reform of the Child Support Agency into the Child Maintenance Service that we have today, which was to remove the state’s financial burden and its involvement in child support arrangements as far as possible.
If Government Departments and agencies addressed the issues head on and communicated with each other, a lot of the pressure caused by this avoidance by paying parents could be quickly eased. We know—this point is crucial—that communication between the child welfare scheme, DWP and HMRC is frankly not good enough. We also know that there are reasons for that, such as the regulations around information sharing and how intelligence is acted on. But what I do not understand is why the Government have not brought forward measures to fix things much sooner.
Women and children are victimised again and again by this outdated, underperforming system. I understand that both men and women can be, and are, victims of domestic violence and economic abuse., and we heard about that this morning at the APPG. That said, the gender aspect of this problem cannot be ignored, and it stems from historic and deeply held misogyny in society’s subconscious.
We have children literally ageing out of the system, without seeing a fraction of the money they are entitled to to enable them to have a normal, comfortable childhood. It is clear that the current system does not work, if it ever has. My constituents and their children need more. They need a commitment from Ministers that the Government will really get into the detail of the failings of the CMS. They need a commitment from Ministers that they will be offered the right support and that the communication between Departments will be addressed and improved. They need a commitment that this will be done urgently. I hope the Minister is in a position to provide those commitments.
Several of my constituents do not feel that the service has sufficient power to ensure that paying parents contribute what is owed to the welfare of their child. In one case, a constituent’s ex-partner has not been required to make payments because, as far as the CMS is concerned, they are not working. However, they are simply not working in the United Kingdom, while receiving a sizeable income from assets in Australia.
In a similar case, another constituent’s ex-partner qualified for the nil rate of child maintenance due to a failure to take into account the rental income they earned from properties. There appears to be a real difficulty with CMS accounting for income that takes any form other than a regular salary or wage. That allows paying parents who are asset-rich to get away with not paying towards the care of their children. What steps are being taken to improve communication between HMRC and CMS?
Finally, I want to raise the issue of the collect and pay service. I have encountered several cases in which payments made using direct pay have been used to inflict continuing economic abuses and coercion on victims of domestic violence, so I welcome this morning’s news that the Government have accepted Dr Samantha Callan’s recommendation to amend legislation to ensure that direct pay cases can be moved to collect and pay when there is evidence of abuse. I wait with interest to hear more from the Government on how they will facilitate that and how they plan to define evidence of abuse.
I am, however, disappointed that the Government have no intention of removing the 4% deduction applied to the sum received by the receiving parent under the collect and pay service. I raised the issue on behalf of one constituent in a letter to the Secretary of State in November. The reply I received from the Minister for Pensions was concerning. It stated:
“there are no plans to abolish the 4 per cent collection charge for receiving parents. This charge only applies to the Collect and Pay service and is intended to provide a parent with an incentive to use the Direct Pay service which has no ongoing fees.”
I find the insinuation that receiving parents require an incentive to stay on direct pay troubling, when the move to collect and pay generally occurs due to the failure of the paying parent to meet their financial obligations. It appears that CMS is deliberately using the 4% penalty as a deterrent, which seems misplaced. This is particularly pertinent in cases of domestic abuse, as it leaves victims facing the choice of either dealing with their abuser directly or risking a decrease in the money they receive to care for their child. I am disappointed that the Government are not looking to change that policy, and I ask the Minister to reconsider.
Ultimately, we must remember that the purpose of the Child Maintenance Service is to ensure that the children of separated parents receive the financial support they deserve. The system should work with them, not against them.
There need to be much stronger systems and more resource dedicated to tackling parents who attempt to avoid or minimise child support payments and who do not pay what has been agreed. The withholding or restricting of child maintenance payments can be used as a tool for economic abuse. According to DWP data, in the quarter ending September 2022, 53% of new applicants on CMS were recognised as survivors of domestic abuse. It is not just physical abuse we are talking about here, but economic abuse. The hon. Member for Rutherglen and Hamilton West talked about the nasty remarks made on bank statements as part of the reference for money paid by paying parents. I want to thank the person who came to speak to the APPG this morning about the economic abuse side of this issue. You will forgive me, Mr Twigg—I have covered this table in papers and I cannot find the name I am looking for—but we heard from a member of Surviving Economic Abuse, which has been working on this issue for a number of years.
Some paying parents continue the economic abuse of their previous partners to the detriment of their children. It is utterly shameful. Little is done when a paying parent pays a token amount; it seems to halt processes at CMS, meaning that those children do not get what they are entitled to and—especially nowadays, in a cost of living crisis—what they absolutely need to keep themselves out of poverty. Children in poverty do not thrive and, at the end of the day, are not able to contribute to society in the way that they might otherwise have done.