HC Deb 15 February 1999 vol 325 cc534-5W
Ms Rosie Winterton

To ask the Secretary of State for Social Security how many absent parents in each of the last three years filed returns with the Child Support Agency stating that they were self-employed. [70430]

Angela Eagle

The administration of the Child Support Agency is a matter for the Chief Executive, Mrs. Faith Boardman. She will write to my hon. Friend.

Letter from Faith Boardman to Ms Rosie Winterton, dated 11 February 1999:

I am replying to your Parliamentary Question to the Secretary of State for Social Security about the self employed non-resident parents dealt with by Child Support Agency.

I am not able to provide all of the information in the precise format that you have requested, but have provided as much as is available.

Information relating to the number of self employed non-resident parents who have had a maintenance assessment is produced by the Analytical Services Division of the Department of Social Security.

The Department of Social Security Analytical Services Division publish quarterly a summary of statistics relating to child support; the latest report was published today and shows that at November 1998 36,500 maintenance assessment cases referred to self employed non-resident parents. The full report is available in the House of Commons library. Information for previous years and comparisons with the total live and assessed caseload are shown in the table attached.

We acknowledge that cases where the non-resident parent is self employed can be more difficult to progress, especially where the non-resident parent does not wish to co-operate. The key to assure early co-operation is by personal contact with our clients. By approaching clients at the initial stages of their assessment we aim to build a better relationship with them, address their concerns promptly and provide an improved level of service.

We have recently completed a pilot study in the South Western Business Unit, looking at how best to process self employed cases. Trials using dedicated staff dealing exclusively with the self employed have shown a marked reduction in processing time and an increase in the collection of maintenance. We intend to have specific sections, supported by accountants where necessary, in each of the other 5 front line Business Unit by March 1999 to deal exclusively with self employed customers.

The Welfare Reform and Pensions Bill published on 10 February 1999 contains a provision which allows the Inland Revenue to pass information about the earnings of a self employed non-resident parent where the Agency enquiries have failed to establish the facts. This will allow assessments to be made in a number of the most difficult cases.

Additionally, we have increased resources for our Client Helplines and the National Enquiry Line, extended our hours of opening to cover 8.00am to 8.00pm Monday to Friday and 9.00am to 5.00pm on Saturdays and carried out trials to greatly improve and increase clients' opportunities to secure a face to face service.

I hope this is helpful.

Maintenance assessments for self employed non-resident parents
November 1996 November 1997 November 1998
Live and assessed caseload 545,900 694,500 864,400
Self Employed cases 21,100 28,900 36,500

The impact of the introduction of the national minimum wage (nmw) on the distribution of gross weekly earnings of the main earner
Gross Earnings £ per week Above NMW level—no change in Family Credit (FC) Below NMW level but on maximum FC. Earnings rise—no change in FC Below NMW level. Earnings rise. FC falls (but by less than the increase in earnings) Below NMW. Earnings rise—float families above the levels at which FC is payable Total
Under £40 25,500 3,500 5,000 1,500 37,500
£40—£79.99 118,000 61,000 70,500 5,500 256,000
£80—£119.99 113,000 60,000 8,500 182,000
£120—£159.99 94,000 35,000 5,000 134,000
£160—£199.99 93,500 12,000 2,500 108,000
£200—£249.00 70,000 2,500 2,500 75,000
£250—£299.99 16,500 500 16,500
£300+ 2,000 2,000
Total 532,500 65,000 185,000 26,000 811,000

Notes:

1. Estimates based on a 5 percent. Sample of FC recipients and the1995–6 Family Resources Survey up rated to 1999–2000 prices, Estimates calibrated to 1999–2000 FC forecast assuming FC continues throughout the year.

2. Eetimates assume no restoration of earnings differentials above the minimum wage and no employment effects.

3. Analysis shows that partners earnings may laso increase on introduction of the minimum wage.

4. Estimates rounded to nearest 500. Totals may not sum owing to rounding.(—) indicated a figure of less than 250.

Back to