HC Deb 31 July 1998 vol 317 cc752-5W
Miss Geraldine Smith

To ask the Secretary of State for Social Security what action the Government are taking to ensure that self-employed persons are fairly assessed under the CSA and that their ex-partners receive full payments owing to them; and if he will make a statement. [54060]

Mr. Denham

The Government are consulting on their proposals for reforming the Child Support scheme set out in the Green Paper "Children First: a new approach to child support" (Cm 3992). We are considering assessing the income of self-employed parents on the basis of the most recent year's taxable profit in line with the approach used by the Inland Revenue. We will also be looking into the possibility of using information supplied for tax purposes so as to reduce the delay in collecting maintenance.

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 Miss Geraldine Smith, dated 31 July 1998: I am replying to your Parliamentary Question to the Secretary of State for Social Security about how the Child Support Agency deals with the self employed. The Agency acknowledges 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 comply. However, once all the required evidence has been collected, the income of a self employed person is assessed in line with the regulations to ensure that the maintenance assessment accurately reflects that income. The key to securing early compliance is by personal contact with our customers. By contacting customers by phone 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 Business Unit to deal exclusively with self employed customers. Additionally, to assist us to trace the whereabouts of self employed non-resident parents, we are exploring the possibility of sharing information with other Agencies and Government Departments. We have also revised staff training and raised staff awareness of the Agency's self employed powers, working practices and related issues. If all voluntary methods to secure maintenance from a self employed non-resident parent fail, a liability order is applied for. It is hoped that the threat of such action will be enough to ensure compliance. The majority do agree to make an arrangement and only in a very small minority of cases is legal action actually taken. We will use any and all enforcement methods legally available but we experience the same difficulties as other litigants in enforcing a civil debt. During 1997/98 we have been successful in registering debt by County Court Judgment in 522 cases. Where all other action has failed, the Agency has pursued cases for prosecution; between October 1997 and March 1998 a total of 15 suspended custodial sentences were imposed. A self employed non-resident parent was recently committed to prison, as a result of non payment of maintenance. I hope this is helpful.

Mr. Woolas

To ask the Secretary of State for Social Security what was the total wastage rate of staff in the Child Support Agency for the period 1 January to 30 June; and if he intends to take measures to reduce this rate. [54035]

Mr. Denham

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 Mr. Phil Woolas, dated 31 July 1998 I am replying to your Parliamentary Question to the Secretary of State for Social Security about the total wastage rate of staff in the Child Support Agency. When calculating a wastage rate we take into account all leavers from the Agency, including retirements (including voluntary early retirements), and staff transferring to other parts of DSS or to other Government Departments as well as those leaving the Civil Service. The calculation also includes a proportion of short term appointed staff whose contracts have expired, some of whom have rejoined as permanent staff. The total wastage rate of staff in the Agency from 1 January 1998 to 30 June 1998 was 15.5 per cent. This includes permanent, fixed term appointed and casual staff. We are examining the trends and recurring reasons for resignations, we are also looking at geographical influences and how job rotation may be introduced to develop and retain staff. We are currently undertaking a review of our recruitment policy which will look at all areas from human resources planning to retention strategies. I hope this is helpful.

Mr. Healey

To ask the Secretary of State for Social Security (1) how many compensation payments from the Child Support Agency have been awarded in each of the last four years of(a) under £250, (b) £251 to £500, (c) £501 to £1,000, (d) £1,001 to £2,000, (e) £2,001 to £3,000 and (f) £3,001 to £5,000; [51140]

(2) what was the number of compensation payments from the Child Support Agency for each of the last four years; and what were the total amounts paid. [51139]

Mr. Denham

All children have a right to the emotional and financial support of both their parents wherever they live. We have set out proposals for radical reform in our Green Paper "Children First: a new approach to child support" (Cm 3992).

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 Mrs. Faith Boardman to Mr. John Healey, dated 30 July 1998: I am replying to your Parliamentary Questions to the Secretary of State for Social Security about the Child Support Agency compensation payments. Compensation payments are normally referred to as special payments. A special payment is considered where a clear and unambiguous error by the Agency has resulted in distress or in actual financial loss to the customer which is not recoverable through other means. A detailed breakdown of payments made for each of the last four years is shown in the attached table. The numbers of payments have risen as a result of our actions over the past year to increase the number of cleared backlog maintenance applications (which had accumulated in the Agency during its first 2–3 years). Where the Agency has taken-on cases, the length of time taken to complete a maintenance assessment is measured, and cases which exceed 52 weeks are considered to be a backlog; this backlog currently stands at approximately 110,000 down from 225,000 at 31 March 1997. In 1997/98 the Agency cleared 595,000 maintenance applications compared with 357,000 in 1996/97. Additionally, we have increased our customers' awareness of special payments by advising them, where appropriate, how to apply. This will also have an impact on the number of special payments made. I am conscious that there are still far too many complaints about the standards of basic customer contact and the service we provide, and we recognise that doing things right first time is the key to preventing complaints. We are aware that as we further tackle our backlog of cases from the Agency's first 2–3 years, there is potential for the volume of complaints to rise in the short term. During 1997/98 we developed a series of measures to improve our customer service over the next four years. Our plans are to improve performance standards; improve significantly, computer generated letters; deal with more of our business by telephone forms review; focus on courtesy and helpfulness; cut down delays and improve the way we handle complaints. We expect customers to see some real improvements by the end of 1998/99. I hope this is helpful.

The number of special payments made and the total amounts paid out by the Child Support Agency since April 1995
Year Number of payments Amount paid (£)
1995–96 186 114,979
1996–97 983 655,821
1997–98 2,136 1,101,313
1998–991 858 888,670
Total 4,163 2,760,783
1 Up to 30 June 1998

Breakdown in bands of the number of special payments made
1995–96 1996–97 1997–98 1 1998–99
Under £250 63 455 1,341 425
£250–£499.99 42 136 311 122
£500–£999.99 37 180 205 99
£l,000–£ 1,999.99 32 144 151 74
£2,000–£2,999.99 7 38 56 51
£3,000–£4,999.99 2 21 59 51
£5,000+ 3 9 13 36
Total 186 983 2,136 858
1 Up to 30 June 1998