Child Support Agency (Hansard, 18 November 1996)

§ Mr. Andrew Mitchell

The administration of the Child Support Agency is a matter for the chief executive, Miss Ann Chant. She will write to the hon. Member.

458W

Letter from Ann Chant to Mr. Elliot Morley, dated 15 November 1996: I am replying to you Parliamentary Question to the Secretary of State for Social Security about Child Support Agency Departures. In April 1995, the Agency successfully implemented changes for cases where property or capital settlements were an issue. A broad based allowance in exempt income was introduced to recognise that a transfer had taken place, and to avoid the need for lengthy and detailed investigation of the cases involved. To date the Agency has processed over 12,000 applications and over 4,200 allowances have been awarded under this provision. This measure was introduced as a forerunner to the Departures system, which will allow either parent to request detailed consideration of the circumstances of their case. In April this year the Agency started a trial of the Departures system in the area covered by the Agency Centre in Hastings. So far, around 2,300 applications have been received and the Agency has made decisions in over 80% of the cases. Applications are still being received and the trial will continue up to 2 December 1996, when the full Departures scheme is scheduled to be introduced. The Agency has had 158 requests for a Departure specifically on the grounds of a property or capital transfer. The Agency has made decisions on 96 of these applications so far and 7 awards have resulted. Of the cases refused, around a quarter were ineligible for a Departure as the amount of the transfer was less than £5,000. The cases where a decision is yet to be made require detailed examination of court orders and related papers to resolve complex issues, such as determining whether property or capital was equally owned and which elements of the transfer were for spousal as opposed to child maintenance. Decisions made under the trial exercise have no effect on the maintenance payable at this stage. From 2 December 1996, clients who applied as part of the trial will be asked if they wish their applications to proceed under the full scheme. I hope this is helpful.