Welfare Reform Bill


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Kitty Ussher: I am happy to explain why this subsection is there, and I do not think it is unjust. The key to it is this: it is something that the courts may do. They may award costs to the non-resident parent on appeal. It is not something they necessarily have to do.
The hon. Gentleman is quite right. If the non-resident parent has followed all the rules and it transpires on appeal that they should not be disqualified from using their passport or driving licence for one of the reasons that is set out clearly in legislation—for example, their children’s welfare would be affected, they need it for their livelihood or they have not wilfully refused or culpably neglected to pay maintenance—then it is at the discretion of the court not to award costs to them.
Let me turn this around. You can construct an argument where even if one of those criteria is met—the non-resident parent could be one of the people that the hon. Gentleman characterised in a previous amendment, who perhaps is routinely ignoring any correspondence or attempt to communicate and find out the facts from the Child Support Agency. The parent may well need their driving licence in order to earn a living, but has never bothered to communicate that despite numerous attempts to ascertain the situation. It is only when presented with the last possibility to ensure this does not happen that they actually engage. At this point, I think it would be wrong that the taxpayer should pay the costs. In such cases, it should be at the court’s discretion—it should have the option of imposing costs. The fact that a non-resident parent may have to pay costs—which is obviously something that would be communicated to them at an earlier stage—would also help prevent manipulation of the appeals process. It would raise the stakes slightly, so perhaps fewer cases would come unnecessarily to court. That would also be a good use of taxpayers’ resources.
It is not always the case that the non-resident parent would have to pay costs, but I can envisage circumstances where a court acting with the discretionary powers we are giving it may consider it fair to award costs to the non-resident parent. That is why the subsection is in the legislation.
Mr. Harper: That was not a terribly good explanation. It sounded remarkably as though the Minister is talking about using the appeal costs as some sort of punishment. If she wants to have a form of punishment in the legislation, it should be explicit; the costs of the appeal should not be used as a back-door method of punishment. I am concerned about non-resident parents who have done nothing wrong but end up having a disqualification order sought against them, who successfully appeal against the order because the commission has taken the incorrect steps, and then find that they have an award of costs against them.
In addition, there is nothing in the Bill to suggest that the commission’s appeal costs are in any way reasonable. Will the Minister go away and consider whether the commission’s appeal costs ought to be reasonable, and come back to us, perhaps on Report? We do not want the commission, using taxpayers’ money, to spend a lot of money on these processes, at the end of which non-resident parents who have done nothing wrong and have successfully won their appeal are hit with a significant bill. That is the danger with this type of legislation: if we are not to create a lot of martyrs, it is sensible to ensure that these powers are used proportionately.
The Minister is correct that the subsection just gives the court the ability to award costs—obviously we are depending on the court’s looking at all the facts of the case and being reasonable. Given that that safeguard is in there, and given the Minister’s explanation about where she thinks this power is likely to be used, I am quite happy to seek leave of the Committee to withdraw my amendment. But I would like to ask her to go away and have a look to see whether any check is needed—whether in the legislation or the regulations—on what the commission is allowed to spend on appeals, to make sure that it is reasonable.
Kitty Ussher: So that we can satisfy ourselves that unreasonable costs will not be put on non-resident parents appealing, even when there is no fault on the commission’s side, I would be happy to have a look at the issue and perhaps write to the hon. Gentleman.
Mr. Harper: That is very generous of the Minister. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Paul Rowen: Before we go on to agree on the clause, there are a couple of comments that I would like to make and a few questions I would like to ask the Minister, to which I hope she can respond.
First, it is clear from the Child Maintenance and Other Payments Bill that the Department already has the ability to disqualify and take away licences and passports. In the House of Lords on 13 May 2008 the Lord McKenzie of Luton made the following statement:
“I therefore acknowledge your Lordships’ concerns relating to that provision and accept that the prevailing view at present is that the decision should be made by the courts.”—[Official Report, House of Lords, 13 May 2008; Vol. 701, c. 963.]
I would like to ask the Minister what new evidence has come to light that, since that statement, it has proved necessary to remove the reference to the courts. Give that the Child Maintenance and Enforcement Commission has only been operational since October last year, perhaps she would tell us how many applications have been made to the court and whether there is evidence that that process has proved slow and unsuccessful.
The second question that I would like to ask the Minister concerns the implementation of the orders. Who will actually be implementing the order and at what level in the structure? There is concern that very junior civil servants might issue these orders. What internal checks will exist to ensure that it is the last resort and that proper checks have been made before an order is issued?
In addition, there is a wider concern—I admit that it applies more to CMEC’s predecessors—about the number of orders that the Child Support Agency already gets wrong. One of the issues in the clause is that, although the court can discuss whether disqualification is appropriate, it is not allowed to discuss whether the sum that is being talked about is correct. A concern about the CSA—rather than CMEC, because the CSA has been in operation longer—is the fact that it often gets it wrong. I am sure members of the Committee have examples from their own constituency casework of the CSA getting a maintenance order figure wrong and, following a challenge, having to revise it.
My final question was also raised by Fathers for Justice. When a driving licence has been withdrawn, what action will the Department take if that parent loses his job or is unable to do his job? There have been examples of the withdrawal of licences having disastrous effects, not only in respect of people’s livelihood but in respect of their ability to see their children.
I shall be grateful if the Minister will answer those points.
Kitty Ussher: I am grateful for the opportunity to answer the points raised by the hon. Gentleman. On his final point, I am interested that he quotes evidence from Fathers for Justice; I do not see it particularly as a credible organisation, but obviously the hon. Gentleman does. I do not know whether he or Fathers for Justice have read the legislation, because the Bill makes it quite clear that, if the document concerned is required for the non-resident parent to earn his livelihood, it should never be removed; and if its removal would have an effect on the welfare of a child, whether it is the child in question or other children of whom he is the parent or with whom he is associated, then it will not be removed.
Moreover, the onus of proof will be on the commission to demonstrate that the parent is wilfully and culpably refusing to pay child maintenance. That is quite a high level of proof, and is one of the safeguards in the legislation showing that this provision will not be used willy-nilly by junior clerks in the organisation. There will be quite rigorous internal mechanisms, and the outstanding debt would have already been checked when the liability order was made—which must be done before tougher forms of enforcement can be considered.
The commission will obviously complete any outstanding maintenance assessment action on each individual case where it is relevant to the level of arrears. The caseworkers will be trained in the new legislation to guide them in the decision-making process. The non-resident parent will have been given notice of the fact that a liability order is being considered, and they will have the opportunity at that stage to make representations. So if an error has been made, or if they fall into one of the categories on the face of the Bill, they will have an opportunity to pick that up at an early stage. I am therefore certain that this is not something that will be used lightly or inappropriately, and I wish Fathers for Justice had the same view.
The hon. Gentleman’s first point related to the history of last year’s child maintenance legislation. We did say that we would continue to consider which decisions needed to be made by the courts, and which needed to be made administratively. In the intervening period of time, more international evidence has come to light that makes it clear that it is an extremely effective policy. Between July 2006 and August 2008, for example—this is extra data that we did not have during the passage of the previous legislation—an additional 11 million Australian dollars was collected in child maintenance payments brought about by the use of around 1,800 prohibition orders relating to Australian travel documents. A review of a sample of 124 cases where such an order had been made indicated that 88 per cent. of customers had continued to pay the right amount of child support 12 months after the order had been lifted, whereas they had previously simply disengaged with the process.
We think that makes the case for legislating even clearer than before. But I also have to say—I am repeating the point made by my right hon. Friend the Secretary of State—that, in a sense, we had no option but to withdraw our proposals on administrative disqualification of a travel document, because the main Opposition party had made it quite clear that it would not support the rest of the Bill unless that was removed. There was a touch of realpolitik in it that was extremely regrettable. I am very glad that the main Opposition party now appears to have done an elegant U-turn, hopefully enabling this clause to go through. I hope that that is sufficient to allow the Committee to agree to clause 40.
Question put and agreed to.
Clause 40 accordingly ordered to stand part of the Bill.
Schedule 5 agreed to.
Clauses 41 and 42 ordered to stand part of the Bill.

Clause 43

Child support maintenance: offences relating to information
11 am
Mr. Harper: I beg to move amendment 83, in clause 43, page 49, leave out line 8.
The clause requires a person liable to make payments of child support maintenance to notify a change of address, or any other change of circumstances. The amendment leaves out the line that says
“any other change of circumstances”.
This is a probing amendment to ask the Minister to give the Committee more detail about the type of information that the Government envisage being used.
On the face of it, the clause is drafted incredibly widely: someone would be guilty of an offence for not notifying any other change of circumstances with no information as to what that might mean. Ministers clearly envisage some of that detail being contained in regulations, but I should like to set out for the Committee some of the areas of concern in order to inform the nature of the regulations and how tightly they are drafted.
Some of the information and some of the concerns have been raised by Families Need Fathers, which is keen to campaign in this area. It has spelt out the concerns about the lack of due specificity on the face of the Bill. It has also raised concerns, which I know the Government share as they set out in their document how they thought the regulations might be used, that, should those regulations not be defined tightly enough, it will generate a significant number of flows of information into the Child Maintenance Enforcement Commission. That would have the opposite effect to what the commission is seeking. The commission is trying to streamline its future case load by reducing the number of cases in which it carries out reviews of change of circumstances; for example, it is reducing the number of times it will look at a child maintenance award where the income varies by less than 25 per cent. It would seem that, unless this provision is narrowly drawn, it would generate the inflow of a huge amount of information to CMEC, which would offset the work it is doing to reduce its work load in order to focus more effectively on the cases that require the most attention.
I have not seen any evidence—perhaps the Minister could supply the Committee with some—about the kinds of information that should be supplied to CMEC under the clause, and how that would make the payment of child maintenance more effective and more likely to reach the family in which the child is resident, which is the purpose of the test.
I have looked at the document that the Ministers have published detailing how they plan to use regulation-making powers. They have said that the definition of “other change of circumstances” would be left to secondary legislation, which would allow the commission flexibility and time to consult stakeholders as part of its process for developing policy. That sounds sensible, but there is nothing in the Bill that constrains any of that—no guidance is provided.
On a positive note, to be fair to Ministers, paragraph 376 of that document does say that Ministers are
“mindful of not creating unnecessary offences”
and that they want regulations to be
“tightly and precisely termed to ensure there is a clear understanding of any requirement placed on parents.”
In fact, Ministers have acknowledged the concern that I and Families Need Fathers have outlined about the burden of information coming into the commission. They have said:
“Indeed, the changes of circumstances to be notified to the Commission must be narrow enough to enable the system to process the information without becoming over burdened.”
So I think Ministers recognise that the clause is widely drawn and that the regulations will need to be narrow and tightly focused so as to be fair to parents and so as not to burden the commission. It will help the Committee—as it has not seen the regulations— if the Minister will give some idea of the kinds of information that the Government and the commission have in mind. The Committee can then be reassured that Ministers will be committed to the objective of having tightly defined terms when they bring the regulations before the House.
 
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