Memorandum submitted by the Child Maintenance
and Enforcement Commission
INTRODUCTION
1. The Child Maintenance and Enforcement
Commission (the Commission) is grateful for the opportunity to
submit a memorandum to the Work and Pensions Select Committee
in advance of its hearing on 2 December on the work of the Commission.
This memorandum is intended to provide an overview of the Commission's
functions and its plans for the future.
ABOUT THE
COMMISSION
2. The Commission was established as a Crown
non-departmental public body by the Child Maintenance and Other
Payments Act and came into being on 24 July 2008. It took over
responsibility for the child maintenance system in Great Britain,
including the Child Support Agency (CSA), from the Department
for Work and Pensions on 1 November 2008. A Framework Document
sets out and defines the working relationship between the Commission
and its sponsor department, the Department for Work and Pensions
(DWP). This can be found on The Commission's website at http://www.childmaintenance.org
3. The Commission has a much wider remit
than the CSA ever had. Its primary objective is to maximise the
number of effective child maintenance arrangements in place, whether
made privately between parents, by court order or through the
statutory scheme. It seeks to do this across all estimated 2.6
million separated families, not just the 1.3 million families
who are clients of the CSA.
4. The Commission aims to fulfil its objectives
through three core functions:
— promoting the financial responsibility
that parents have for their children;
— providing information and support on
the different child maintenance options available; and
— providing an efficient statutory child
maintenance service, with effective enforcement.
Each of these is covered in more detail below.
5. The Commission currently has two delivery
bodies; the Child Support Agency (CSA), which continues to administer
the current statutory schemes; and Child Maintenance Options,
which provides the information and support service.
6. The Commission currently has 8,700 full
time equivalent employees. Although most of these are caseworkers
in the CSA, who continue to perform the same jobs as they did
prior to the establishment of the Commission, the majority of
the leaders of the organisation have been brought in from outside,
from a variety of sectors. The Commission, including the CSA,
operates from 32 sites and, in addition, has approximately 250
peripatetic workers.
THE HISTORY
OF THE
COMMISSION
7. Although the Commission is a new organisation,
it is perhaps helpful to remind the Committee of the history of
child support policy, and developments since its last report on
this subject in March 2007.
8. From its establishment in 1993, the history
of the CSA was one of well intentioned policy designs that proved
to be incapable of being administered effectively. The system
never recovered from its poor start, and reforms introduced in
2003, including a new child maintenance scheme, were compounded
by failures in the computer system. As a result, in February 2006
the Secretary of State for Work and Pensions announced both an
Operational Improvement Plan to improve the CSA's performance
in the short to medium term, and a root and branch redesign of
the child maintenance system—led by Sir David Henshaw.
9. On 24 July 2006, Sir David Henshaw's
report was published, along with the Government's response, which
gave some radical recommendations on the direction the entire
child maintenance system should take, as well as fundamentally
changing the basis of the statutory maintenance scheme for the
future.
10. The Henshaw report highlighted that
the current system worked against parents' wishes: 70% of new
applicants were forced to use the CSA, preventing them from making
voluntary maintenance arrangements between themselves, or in many
cases overturning arrangements already agreed. This created a
large group of clients who did not wish to use the service. Further
research, published in June 2007,[5]
revealed that almost two-fifths (36%) of CSA clients on benefit
on the post-2003 scheme would prefer to make their own arrangements.
11. In addition, reducing benefit entitlement
pound for pound against maintenance collected meant that neither
parent had an incentive to co-operate. Parents with care were
seeing little or no increase in their income and non-resident
parents were seeing money paid to the state, not to their children.
12. The original scheme assessment process
(1993) was too complex, resulting in a large proportion of non-resident
parents assessed as not being liable to pay child maintenance
and proved too difficult to administer efficiently. The reforms
introduced in 2003 simplified the formula, but it is now accepted
that they did not go far enough. A particular problem was that
they did not make better use of information already collected
by HM Revenue and Customs (HMRC).
13. In his report Sir David concluded that
"there is a need for fundamental change in the way child
support is organised in this country". The Government agreed
with him that there was a need for a "clean break" from
the past to create a fresh start for child maintenance arrangements.
14. The Government accepted that too many
non-resident parents did not pay. In addition the enforcement
and compliance measures were not as effective as they could have
been and the process did not facilitate swift enforcement, leading
to a culture of non-compliance.
15. Following the publication of Sir David's
report, the Government published its Child Maintenance White Paper
on 13 December 2006, which set out proposals for the reform of
the child maintenance system. The subsequent Child Maintenance
and Other Payments Act 2008 included the provision to set up a
new Crown non-departmental public body, the Child Maintenance
and Enforcement Commission, to take forward the new system. The
2008 Act laid down the Commission's three functions and its overall
objective in statute "to maximise the number of those children
who live apart from one or both of their parents for whom effective
maintenance arrangements are in place". It also provided
for a range of new enforcement powers, more detail of which is
set out below.
16. The 2008 Act also repealed section 6
of the Child Support Act 1991, removing the compulsion on parents
on benefit to make an application to the CSA for maintenance.
This change came into effect for new lone parents in July 2008
and for all other lone parents in October 2008.
THE OPERATIONAL
IMPROVEMENT PLAN
17. Alongside the Henshaw review, the Secretary
of State announced an Operational Improvement Plan to improve
the Child Support Agency's service to clients, increase the amount
of money collected, achieve greater compliance from non-resident
parents and provide a better platform from which to implement
the major policy changes that would subsequently include the establishment
of the Commission. The plan focused on the simple aim of getting
more money to more children by making significant improvements
in four key areas:
Getting it right: gathering information and assessing
applications;
Keeping it right: active case management;
Putting it right: enforcing responsibilities;
and
Getting the best from the organisation.
18. The Secretary of State targets for the
entire period covered by the Operational Improvement Plan included:
Numbers of children benefiting;
Amount of money collected and arranged;
Maintenance outcomes; and
Numbers of uncleared cases.
19. There was an additional target around
the time taken to clear new applications in the year 2006-07.
20. Annex A sets out additional information
on how performance improved over the period of the plan, highlighting
the record number of children who were receiving unparalleled
amounts of maintenance by the time of the completion of the plan
in March 2009.
21. The budget for the Operational Improvement
Plan was £320.8 million (£120 million of new investment
and £200.8 million of recycled savings through efficiency
improvements) and the actual final cost was £320.4 million.
THE COMMISSION'S
VISION
22. With improvements taking shape and still
more work to be done, the Commission wants to create a future
where parents who live apart from their children should expect,
want and be able to make effective maintenance arrangements, where
payment becomes the norm and non-payment is no longer socially
acceptable. The Commission's Vision—developed with involvement
from groups representing parents and separated families—is
to support separated families in understanding the range of child
maintenance options available and to help them navigate the issues
they face to reach the arrangement that best suits there circumstances:
"supporting separated families; securing children's futures".
PROMOTING FINANCIAL
RESPONSIBILITY
23. The first of the Commission's functions
flows from the Government's belief that all parents must take
financial responsibility for their children. The Commission was,
therefore, given the duty, under the Child Maintenance and Other
Payments Act 2008, to "take such steps as it thinks appropriate
for the purpose of raising awareness among parents of the importance
of a) taking responsibility for the maintenance of their children,
and b) making appropriate arrangements for the maintenance of
children who live apart from them." Its remit, in short,
is to change behaviour in society so that it becomes the social
norm for parents to take responsibility for their children.
24. Current research sheds light on the
scale of the challenge: although most people accept the principle
that separated parents should financially maintain their children,
this does not follow through into practice. Research by DWP has
found that while over 90% of parents agree that they should support
their children, fewer than 50% of non-resident parents actually
do.[6]
25. The Commission is undertaking research
to understand the drivers of behaviour and barriers to behavioural
change, interviewing both parents with care and non-resident parents,
as well as people who influence them such as families, friends
and children. The next stage of the research will test what interventions
can be made to help and encourage parents to work together to
implement effective arrangements.
26. Currently, the Commission is providing
information about financial responsibility to newly separated
and new lone parents, post-separation, via a number of channels
including:
— Piloting the distribution of leaflets
in 6,000 GP surgeries;
— Working with Wikivorce.com, the fastest
growing site for advice to divorcing parents, to provide tailored
content for its 34,000 members; and
— Providing leaflets to all UK Citizens
Advice Bureaux for their advisers to use and distribute.
27. The Commission will also maintain its
work building partnerships with organisations that operate in
the areas of financial planning, budget management and legal support.
WORKING WITH
OTHER GOVERNMENT
DEPARTMENTS
28. The Commission is working closely with
a number of government departments, to promote financial responsibility
through the public services they provide.
29. Working jointly with the Department
for Children, Schools and Families (DCSF) the Commission is looking
at ways of driving behavioural change through targeting secondary-age
school children at the formative age of learning. Looking specifically
at societal values and building awareness of financial responsibility,
the Commission has sought to secure a change in the curriculum
so that messages around parental responsibility are included in
Personal, Health and Social Education.
30. Looking more broadly at influencing
children and parents, the Commission is working with partners
who run children's centres to incorporate messages around financial
responsibility into the topics covered at the centres. The Commission
is also working to place financial responsibility onto the agenda
of the extended school network.
31. The DCSF has launched an initiative
to co-ordinate services provided to separated and separating parents.
This is being piloted in ten local areas. The Commission has been
working with the DCSF and will engage with the local pilots to
ensure that information on child maintenance is included among
other services.
32. The Commission is working with the Department
of Health to explore ways in which it can engage with health service
professionals, in particular midwives and health visitors, who
are well placed to discuss child maintenance issues with new parents.
33. The Commission is also examining ways
in which it can engage with the Department for Communities and
Local Government and local authorities, as providers of local
services.
34. The Commission has also undertaken work
with the Financial Services Authority (FSA), to ensure that its
financial education products stress the importance of financial
responsibility and set out the Commission's services.
35. We are working with the Local Strategic
Partnership in Nottingham to test a number of the initiatives
we hope to eventually seek to roll out on a national scale.
BASELINING AND
MEASURING PROGRESS
36. Over the next year, the Commission will
undertake a survey to baseline the number of effective arrangements
that are in place at present. This survey will then continue on
an annual basis to enable the Commission to measure progress.
PROVIDING INFORMATION
AND SUPPORT—CHILD
MAINTENANCE OPTIONS
37. The Commission's second function, set
out under the Child Maintenance and Other Payments Act 2008 is
to provide "such information and guidance as it thinks appropriate
for the purpose of helping to secure the existence of effective
maintenance arrangements for children who live apart from one
or both of their parents". This is often referred to as the
Commission's "information and support" function. To
meet this requirement, a new free service was created, called
Child Maintenance Options, which was made available to the general
public in October 2008.
38. The Options service aims to help parents
understand the range of options available for putting a child
maintenance arrangement in place. It provides authoritative, impartial
information and support to parents so that they are able to make
informed choices about the child maintenance arrangement most
suited to their circumstances. This includes information on other
issues that parents might face in making arrangements, such as
housing or money worries, and the service will put people in touch
with organisations that can provide more expert help.
39. The service is delivered by phone, through
a national helpline; online via a website providing accessible
and practical support in setting up and maintaining arrangements;
and via a face-to-face service for those in most need of more
personalised help and support.
40. The service was developed with input
from stakeholders, including groups representing parents and separated
families. It is available to all parents, whether or not they
live with their children and regardless of their circumstances,
as well as relatives, friends and advisers. The service can be
used anonymously.
41. Initially run in prototype during early
2008, the Options service was made available from July 2008 to
those parents with care who were new claiming benefits and no
longer compelled to use the CSA. From October 2008 it became available
for all.
42. The Commission has focused on promoting
the availability of the Options service to separating and new
lone parents, particularly those claiming benefits, and those
that influence their behaviour, to foster collaboration and encourage
the establishment of arrangements at the earliest opportunity.
43. The Commission recently carried out
a test promotional campaign in the ITV central region over a 12-week
period from the beginning of July, using TV, radio, press, inserts
in magazine, doordrops, and on-line. The central region was chosen
for the test as it is the most representative of the general UK
population and media usage.
44. The regional campaign test objectives
were to a) build awareness of the Child Maintenance Options service
amongst new separating/new lone parents and their friends and
family, and b) drive usage of the service from those audiences
through phone calls to the national helpline and visits to the
website.
45. Prior to the campaign starting, awareness
of the Child Maintenance Options service amongst newly separated/new
lone parents was 13% and amongst influencers (friends and family)
15%. At the end of the campaign awareness had increased threefold
to 53% amongst newly separated/newly lone parents, and 46% amongst
influencers.[7]
46. Prior to the campaign starting, the
Options service was receiving an average of 1,500 inbound calls
per week. This rose to just under 2,500 during the campaign period,
and resulted in over 10,500 phone calls in total generated by
the campaign against an original forecast of 9,000. Also prior
to the campaign starting, the average number of web visitors was
running at 7,500 per week. During the campaign period this doubled
to an average of 15,000 visitors per week, resulting in 90,000
new visitors in total generated by the campaign.
47. Of those people responding to the campaign
and calling the Child Maintenance Options service it was identified
that 65% were parents with care, 22% non-resident parents and
13% friends and family.
48. Jobcentre Plus in England, Wales and
Scotland gives all new clients with a child maintenance interest
a leaflet introducing the Child Maintenance Options service and
asks them if they wish to be referred. Those who agree then have
their contact details passed on to Child Maintenance Options,
which subsequently contacts them by phone. HMRC also refers new
separating parents to the Child Maintenance Options service when
those parents register their change in circumstances for tax credit
entitlements.
49. Recruitment for people working in the
Options service has been extremely rigorous, focusing on candidates'
emotional strength, ability to listen/interpret and a non-judgemental
attitude, with 50% of applicants being successful. The Options
service has recruited 164 people and developed bespoke training.
All Options service employees receive six weeks training plus
four to six weeks academy (intensive supervised call-handling)
compared to the industry average of two to three weeks training
and two to three weeks academy. A consortium of third sector organisations
supported the development and delivery of the training and also
provided input to the development of the knowledge base used to
handle enquiries and signposting on issues such as housing or
debt.
50. The Commission is using research and
evaluation programmes among current and potential customers to
enhance further the information and guidance available, and to
develop the processes of referrals from other government organisations
that interact with the majority of separating parents.
51. In order to develop the "guidance"
service, the Commission is introducing a number of enhancements:
the introduction of seven key questions for use by call agents
to determine the nature of the parents' relationship and therefore
the most appropriate arrangement; case studies to highlight different
separated parent relationship characteristics and the types of
arrangement that have worked for them; and an on-line maintenance
evaluation tool that allows customers to self-diagnose the most
appropriate arrangement for them based upon their answers to a
series of questions.
52. The Commission is also continuing to
improve other aspects of the service, gaining feedback on users'
experience and developing the face-to-face element of the service.
PROVIDING AN
EFFECTIVE STATUTORY
MAINTENANCE SCHEME
53. The final function of the Commission
is to provide an efficient statutory child maintenance service,
with effective enforcement for those parents who are unable or
unwilling to make their own private arrangements.
54. At present this service is provided
by the CSA, which delivers both the original 1993 scheme ("the
old scheme"') and the 2003 scheme ("the current scheme").
55. We currently plan to introduce a new child
maintenance service in 2011 to administer a new statutory scheme
("the future scheme"), with new calculations and rules.
The future scheme is designed to be more simple and transparent
than its predecessors, more cost-effective and professional and
backed by a tougher enforcement regime.
56. The ability of the Commission to launch
the future scheme and to manage transition for current CSA clients,
allowing and supporting them in a choice of their own effective
maintenance arrangements in accordance with stated government
policy is, of course, dependent on the availability of sufficient
public funding over the next two-three years.
57. Over approximately three years following
2011, there will be a transition period as cases on the old and
current schemes are closed and clients are advised of their choices
which will include making an application to the future scheme.
This process of closure of CSA cases and an application to the
future scheme for those who wish to do so provides the "clean
break" recommended by the Henshaw Report. At the end of this
transition period, all statutory service clients will be on the
future scheme provided by the new child maintenance service and
the CSA will close.
58. During the transition phase and subsequently,
the Commission will continue to do all it can to collect and reduce
arrears owed on the existing CSA schemes. There can be no question
of allowing non-resident parents who are able to pay to escape
their responsibilities. While it is believed that there may be
some very limited circumstances where arrears can be written off
at the appropriate time, the focus will be to ensure that arrears
are managed as effectively as possible, collecting what is due.
MAINTENANCE CALCULATIONS
59. The Child Maintenance and Other Payments
Act 2008 set out the formula under which maintenance will be calculated
in the future. This built on both Henshaw's recommendations and
research undertaken by the DWP.[8]
60. The key concept here is that non-resident
parents' liabilities in the future scheme will primarily be based
on their gross (taxable) income sourced directly from HMRC for
the latest available tax year. The current scheme is based on
net income ie after tax and national insurance deductions, which
has to be obtained from the non-resident parent or employer. This
change should significantly speed up the process of gathering
income information as part of the calculation process. The maintenance
calculation will be updated each year in the light of updated
taxable income information from HMRC.
61. The scheme will recognise that non-resident
parents' income can also sometimes change significantly and so
where either parent can demonstrate that the non-resident parent's
income has changed by at least 25% from the historic figure supplied
by HMRC, the Commission will recalculate the amount of ongoing
maintenance payable.
62. The parameters of the scheme as set
out in the 2008 Act, such as its percentages for the number of
qualifying children, are intended to produce broadly the same
calculations as the current scheme. The move towards basing calculations
on gross taxable income as recorded by HMRC was designed to improve
administration rather than change the pattern of liabilities.
Similarly, many of the other current scheme rules will be carried
forward—there will continue to be four rates of liability,
with amounts due based on the non-resident parents' relevant income,
benefit or other status. There will continue to be reductions
for children living with non-resident parents and for shared care.
There will also be an improved variations scheme to deal with
circumstances that do not fit within the standard formula.
DEFINING THE
CUSTOMER JOURNEY
63. The Commission has been working to define
what it calls the "customer journey", which is designed
to ensure that the look and feel of the new service is as effective
and client-centred as possible. This project is focusing, among
other issues, on the type of communications that clients receive
from the new service, the processes that they will need to follow
and the tone that caseworkers use with clients.
64. As part of this work the Commission
has used a varied approach that has included research on client
attitudes and views of the current CSA service, workshops with
clients and engagement with external stakeholder groups.
65. Some of the key features of the customer
journey for the future scheme include:
— Treating non-resident parents with respect,
especially during the crucial first contact with them.
— Emphasis on collecting information by
phone rather than through paper forms
— An online facility, so clients can update
their own details and carry out other transactions via the web.
— Clearer and simpler communications, in
particular account breakdowns.
EMPLOYER ENGAGEMENT
66. One of the key tools used for securing
payments from a non-resident parent is to serve a Deduction from
Earnings Order on his/her employer to allow maintenance payments
to be deducted from his/her salary. The Commission has taken a
number of steps to ensure that employers are supportive of its
approach, the future scheme, and the Deduction from Earnings Order
process. This has included engagement with large employers, employer
representative groups and the creation of an "employer journey"
that complements the "customer journey" work. There
is general support among employers for Deduction from Earnings
Orders.
IT
67. The part played by IT systems in the
difficulties experienced by the CSA is well documented and has
been the subject of several Parliamentary inquiries.
68. The requirement to provide a much more
professional service than in the past necessitates more a greater
degree of automation as well as the improved client-facing processes
outlined above. This in turn necessitates a more effective IT
system. Although the Operational Improvement Plan resulted in
some improvements in IT, it is neither cost effective nor in the
interests of improved services to our customers to continue on
the current system. The Commission has therefore taken the decision
to procure a new system.
69. The Commission went out to tender in
August 2008. A thorough tender evaluation took place at the beginning
of 2009. This included consultation with both the DWP and the
Office of Government Commerce.
70. Following a rigorous selection process,
Tata Consultancy Services (TCS) was appointed and the contract
was signed on 30 March 2009. The contract was awarded following
full government procurement rules.
71. The new system will utilise commercial
"off-the-shelf"' software packages already widely used
in the financial services industry, which will ensure better customer
service and greater value for the taxpayer. The bespoke nature
of the current CS2 system contributed to many historic and current
problems and made the system expensive to operate and improve.
72. The Commission has introduced more robust
governance procedures and has recruited more information technology
and commercial professionals to assure both the success of the
IT system itself and better contract management.
73. The new system will not go live until
it is fully tested and technically assured, both by our suppliers
and our in-house team.
74. The current IT systems will continue
to be used to process the existing 1.3 million cases and will
continue to be in place until the existing schemes close.
ENFORCEMENT
75. The Commission has gained a suite of
new enforcement powers to enable it better to pursue arrears from
non-compliant, non-resident parents. It is seeking to supplement
these with further powers in the months ahead. These powers are
applicable to both the current CSA schemes and the future scheme,
once launched.
76. In October 2008, it became an offence
for the non-resident parent to withhold information pertaining
to a change of address.
77. In August 2009, the Commission assumed
the power to deduct payments from non-resident parents' bank accounts,
without recourse to the courts.
78. The Child Maintenance and Other Payments
Act 2008 provided the power for the Commission to ask the court
to impose a curfew order on a non-resident parent. However, no
date has been fixed for this power to come into effect.
79. The 2008 Act also gave the Commission
a power to disclose details on maintenance compliance to credit
reference agencies, which could affect credit ratings. This power
is expected to come into effect through regulations in the months
ahead.
80. It is planned that further regulations
under the 2008 Act should come into force in January 2010, introducing
the power for the Commission to recover arrears from deceased
estates, and offset liabilities between parents, should the care
arrangement alter.
81. The Welfare Reform Act, which gained
Royal Assent in November 2009, has enabled the Child Maintenance
and Enforcement Commission to pilot the removal of passports and
driving licences of parents who have wilfully or culpably failed
to meet their child maintenance obligations. The Commission will
not have to apply to a court first, though the Act provides an
immediate right of appeal to a Magistrates' Court in England and
Wales or Sheriff Court in Scotland. These powers are based on
positive experiences in other countries such as Australia, Canada,
US and Norway.
82. The time limitation on prosecutions
for providing false information is also being extended by the
Welfare Reform Act. The Commission will have 12 months from the
date of the alleged offence to investigate and bring a prosecution,
as opposed to the current six months.
83. The Commission believes that the increased
simplicity and transparency of the calculations for the future
scheme, together with an effective enforcement regime, will mean
that arrears are less likely to accumulate than in the past.
PROCUREMENT
84. Over the course of 2009, the Commission
has been developing its strategy on how services will be delivered
in the future. To this end, a notice in the Official Journal of
the European Union (OJEU) was released on 15 June 2009, seeking
parties who may be interested in providing services for the Commission
over the transition period. These services could include, but
are not limited to: collection and assessment of maintenance,
case working and client management and arrears recovery.
85. The purpose of the OJEU notice was to
put together a framework agreement of suitable suppliers, to give
the potential for contracting out services in the future. The
framework agreement is expected to last around four years. The
Commission however is not at this stage awarding any contracts,
nor committing to awarding any contracts. The Commission has not
yet made any decision on public, private or third sector delivery
and its ability to take any of these decisions will depend on
the availability of sufficient funding.
COMMISSION PERFORMANCE
86. Although there is a significant focus
at present on the development of the future scheme, the Committee
might find it helpful to have some details on current levels of
performance of both of the Commission's services, the CSA and
Child Maintenance Options.
CSA
87. The Operational Improvement Plan saw
a root and branch restructuring of the Agency, a focus on improving
IT as far as was possible, as well as systems and processes, an
emphasis on using the powers available to the CSA to the full,
and a drive to improve the training and competencies of its people.
88. One area of particular focus was around
the "debt steer", under which the Agency sought (and
continues to seek) to negotiate with non-resident parents in arrears,
a payment plan which will see their debt paid off within two years.
The starting point when negotiating debt is to require full repayment
immediately. Where this is not possible, and taking into account
individual circumstances, the maximum amount non resident parents
may have to pay is 40% of their net income.
89. The changes brought in under the Operational
Improvement Plan achieved the planned degree of improvements needed
to provide a platform for the introduction of the future scheme
and some improvements continue. The number of children benefiting
from maintenance payments has increased from 561,100 in March
2005 to 797,300 in September 2009, a 42% increase. The amount
of maintenance collected has increased from £798 million
in the year to March 2005, to £1,131 million in the year
to September 2009, a 42% increase.[9]
90. The growth of arrears has been stemmed.
Where, in 2004 and 2005, arrears grew by around £23 million
per month, in the 12 months to September 2009, they actually reduced
by £3.2 million per month. In September 2009, the headline
total of arrears stood at £3.796 billion, the first time
it had fallen below £3.8 billion since February 2008. Figures
after March 2008 have not yet been audited and finalised.
91. Upon transfer of responsibility for
the Child Support Agency functions to the Commission, a review
was undertaken to assess the level to which outstanding maintenance
arrears were collectable. The conclusion was that the assumptions
used previously had been over-optimistic and should be revised
downwards to more realistic levels. Current estimates are that
£1,065 million is estimated to be collectable. This does
not necessarily mean that the full £1,065 million will be
collected in practice as funding is limited, and collection of
ongoing regular maintenance continues to be prioritised above
collection of arrears. However, the full balance of arrears remains
due and the Commission is committed to maximising the value of
the arrears it collects, within available funding.
92. The quality of the service has also
improved. Where the average time which callers had to wait before
their calls were answered was one minute and 40 seconds in 2005,
the average waiting time is now eight seconds. The CSA is clearing
84% of new applications within 12 weeks, compared with 30% in
2005. Further details on performance are set out in Annex A.
93. Although the Operational Improvement
Plan was completed in March 2009, the CSA's programme of reform
continues, with a focus on people development and organisational
efficiency, reacting to a changing caseload where all applicants
to the CSA are voluntary and to reducing funding. The CSA is also
working hard to stem the flow of cases which become clerical (ie
have to be handled manually because the IT system cannot process
them).
94. The Commission takes the view that,
as a result of the Operational Improvement Plan, the CSA is performing
as well as it possibly can, given the current IT systems and policies.
It is unlikely that there can be further significant improvements
in performance until the future scheme is launched.
CHILD MAINTENANCE
OPTIONS
95. The performance of the Options service
is also monitored. Current internal estimates suggest that 60,000
children are benefiting from private child maintenance arrangements,
established following one or other parent's contact with the service.[10]
We are in the process of updating our mechanisms for measuring
the number of arrangements made as a result of the service, to
ensure that they are as robust as practically possible.
TRANSFER OF
EMPLOYEES TO
JOBCENTRE PLUS
96. We understand that the Committee has
an interest in the way in which people have been transferred from
the CSA to Jobcentre Plus. Due to the economic downturn and subsequent
rise in unemployment, Jobcentre Plus experienced a significant
increase in the number of customers claiming Jobseeker's Allowance.
Earlier this year, it was required to increase its resource levels
by 15,000 to meet the demand on its services. Government departments
and non-departmental public bodies were asked to help Jobcentre
Plus meet the increase in resources needed.
97. The CSA was well placed to provide support
to Jobcentre Plus; it has a similar business model with trained
call centre and client facing processing staff requiring minimum
re-training, in locations close to existing Jobcentre Plus sites.
The transfer of staff also helped the CSA to reduce its own staffing
levels to meet budgetary constraints.
98. Therefore between January and June this
year, the CSA responded by transferring 636 people to Jobcentre
Plus. There was no impact on CSA client service as calls were
automatically rerouted to the teams taking responsibility for
their cases.
ALLEVIATING CHILD
POVERTY
99. The 2006 White Paper stated that one
of the principles underpinning the child maintenance system of
the future going forward would be the need to tackle child poverty.
100. The receipt of child maintenance payments
currently helps to lift around 100,000 children out of poverty
than otherwise would have been the case.
101. In April 2010, the Government will
introduce a full child maintenance disregard for those on income-related
benefits; that is, those people entitled to benefits and child
maintenance will be entitled for the first time to receive all
of their maintenance and benefit payments. At present, they are
only entitled to receive the first £20 of maintenance paid.
102. It is estimated that this full disregard,
plus other reforms to child maintenance introduced in October
2008 and beyond, will lift a further 100,000 children out of poverty.
103. We expect that our drive to change
behaviour and embed financial responsibility as the norm in the
next few years, if successful, will lift more children out of
poverty.
CONCLUSION
104. Since the Commission took responsibility
for child maintenance in November 2008, significant progress has
been made. However, this is just the beginning. The introduction
of the future scheme, the Options service and the drive to increase
financial responsibility, although a huge challenge, will pave
the way for a new era of child support and a change in the social
landscape, where it is considered morally unacceptable for non-resident
parents not to support their children. The Commission is committed
to creating a future where children's welfare is at the heart
of all we do by supporting separating families and thereby securing
children's futures.
105. We look forward to discussing this
further at the oral evidence session on 2 December.
December 2009
5 Child Maintenance Redesign Survey: Indications of
future behaviour and choice; Nick Coleman, Ken Seeds and Oliver
Norden. Back
6
Department for Work and Pensions: Research Report No 503 Relationship
separation and child support study Nick Wikeley, Eleanor Ireland,
Caroline Bryson and Ruth Smith, 2008. Back
7
Source: BMG Research, undertaken June and September 2009. Back
8
Future policy options for child support: The views of parents
Adele Atkinson, Stephen McKay and Nicola Dominy, 2006. Back
9
All figures in this section are from the CSA's Quarterly Summary
of Statistics. Back
10
In-House Mini Surveys. Back
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