Child Support Agency (Hansard, 7 March 1995)

§ Mr. Dewar
To ask the Secretary of State for Social Security what is the latest figure for reported benefit savings accrued by the Child Support Agency, giving in each case(a) the amount represented by pre-existing maintenance arrangements carried over by the Child Support Agency, (b) the amount represented by cases in which benefit ceased following action by the agency, (c) the amount represented by cases in which maintenance exceeds the amount of benefit payable and (d) the amount represented by consequential savings in council tax benefit and housing benefit.
164W

§ Mr. Burt
The administration of the Child Support Agency is a matter for Miss Ann Chant, the chief executive. She will write to the hon. Member.
Letter from Ann Chant to Mr. Donald Dewar, dated 6 March 1995:
I am replying to your recent Question to the Secretary of State for Social Security about the benefit savings scored by the Child Support Agency.

Benefit savings by category

£ million

1994–95

Existing maintenance agreements before CSA assessments

Paid direct by absent parent to parent with care—existing 101.65

Paid through pre-Agency collection service—existing 6.96

Sub total 108.61

New maintenance as a result of CSA assessments

Paid direct by absent parent to parent with care—new 10.48

Paid through Agency collection service to Secretary of State—new 32.45

Absent parent—Income Support deductions 1.55

Sub total 44.48

Benefit ceases following action by the Agency

Non-maintenance cessations 165.95

Maintenance cessations 20.43

Sub total 186.38

Total 339.48

Savings arising from maintenance paid in Family Credit/DWA cases. and the consequential savings arising in Council Tax Benefit and Housing Benefit from cases where benefit has ceased are scored retrospectively after the end of the financial year, and figures are not currently available.

§ Mr. Dewar
To ask the Secretary of State for Social Security how many parents with care at each Child Support Agency reporting centre have ceased to receive income support after receiving payments of child maintenance; and how many have ceased to receive income support and are receiving family credit after receiving child maintenance.

§ Mr. Burt
The administration of the Child Support Agency is a matter for Miss Ann Chant, the chief executive. She will write to the hon. Member.
Letter front Ann Chant to Mr. Donald Dewar, dated 7 March 1995:
I am replying to your recent Question to the Secretary of State for Social Security about the number of parents with care (PWCs) who have ceased to claim income support (IS); or who have ceased to claim IS, but are receiving family credit (FC) after receiving child maintenance.

Agency centre ^{1 2}PWCs no longer receiving is

Belfast 1,688

Birkenhead 490

Dudley 1,176

Falkirk 1,186

Hastings 1,182

Plymouth 1,317

¹ Year to date from April 1994 to January 1995.

² Child maintenance may not have been the only income received. Information is not available on the number of clients who have ceased to claim IS, but are receiving FC.

165W

§ Mr. Dewar
To ask the Secretary of State for Social Security how many people are currently employed by the Child Support Agency; and what was the figure in April 1993.

§ Mr. Burt
The administration of the Child Support Agency is a matter for Miss Ann Chant, the chief executive. She will write to the hon. Member.
Letter from Ann Chant to Mr. Donald Dewar, dated 7 March 1995:
I am replying to your recent Parliamentary Question to the Secretary of State for Social Security about the number of staff employed by the Child Support Agency.In April 1993, there were 2,937 established staff in the Agency. In addition there were 160 Northern Ireland civil servants based at the Child Support Agency Centre in Belfast who were engaged in work relating to parents with care who live in Great Britain.In January 1995 there were 5,799 established staff in the Agency, and 645 Northern Ireland civil servants engaged in work relating to parents with care who live in Great Britain.This increase in staffing reflects both the anticipated build up in staff, and the additional staff deployed as part of the recovery plan.

§ Mr. Dewar
To ask the Secretary of State for Social Security what is the basis for his estimate of the cost of taking account of travel-to-work costs in the child support formula.

§ Mr. Burt
The costs of the proposed allowance were estimated using data from the 1991 census about the distribution of distances travelled to work.

§ Mr. Dewar
To ask the Secretary of State for Social Security what will he the cost of each of the proposed changes to the Child Support Agency referred to in his oral statement of 23 January 1995,Official Report, columns 19–21.

§ Mr. Burt
The cost, in terms of reduction in anticipated savings in benefit expenditure, of each of the proposed changes is estimated as follows:

1995–96 £ million 1996–97 £ million 1997–98 £ million

Formula changes

Property/capital settlements 5 10 10

Travel to work costs 10 15 20

Provision for full housing costs 5 10 10

Deferral of liability by eight weeks 10 10 10

30 per cent. cap on payments 10 10 10

Changes requiring primary legislation

Departure orders — 10 10

Maintenance credit — — 15

Totals 40 65 85

Note:
All figures in £ million, rounded to nearest £5 million.

§ Mr. Dewar
To ask the Secretary of State for Social Security when he expects the Child Support Agency to deal with all cases involving child maintenance; and if he will set out the Government's revised programme for the phased take-on of cases.

§ Mr. Burt
It was never the intention that the Child Support Agency would deal with all cases of child maintenance. Where there is a maintenance order in force with which both parents are content, and no benefit is166W being paid to the parent with care, the agency will not become involved.
Where such an order is currently in force, but one party is dissatisfied, the courts will continue to exercise jurisdiction until such time as the Child Support Agency takes over jurisdiction. This was intended to be in 1996, but the Government have announced plans to defer this date until the agency is in a position to take on the cases efficiently and to a high standard.
The agency expects to resume the take-on of those cases deferred as a result of the measures announced on 20 December 1994 by the end of 1995.

Benefit savings by category
£ million
	1994–95
Existing maintenance agreements before CSA assessments
Paid direct by absent parent to parent with care—existing	101.65
Paid through pre-Agency collection service—existing	6.96
Sub total	108.61
New maintenance as a result of CSA assessments
Paid direct by absent parent to parent with care—new	10.48
Paid through Agency collection service to Secretary of State—new	32.45
Absent parent—Income Support deductions	1.55
Sub total	44.48
Benefit ceases following action by the Agency
Non-maintenance cessations	165.95
Maintenance cessations	20.43
Sub total	186.38
Total	339.48

Agency centre	^{1 2}PWCs no longer receiving is
Belfast	1,688
Birkenhead	490
Dudley	1,176
Falkirk	1,186
Hastings	1,182
Plymouth	1,317
¹ Year to date from April 1994 to January 1995.
² Child maintenance may not have been the only income received. Information is not available on the number of clients who have ceased to claim IS, but are receiving FC.

	1995–96 £ million	1996–97 £ million	1997–98 £ million
Formula changes
Property/capital settlements	5	10	10
Travel to work costs	10	15	20
Provision for full housing costs	5	10	10
Deferral of liability by eight weeks	10	10	10
30 per cent. cap on payments	10	10	10
Changes requiring primary legislation
Departure orders	—	10	10
Maintenance credit	—	—	15
Totals	40	65	85