Child Maintenance Service

Motion made, and Question proposed, That this House do now adjourn.—(Kate Dearden.)

20:09:00

This evening I want to address a system that is failing thousands of families across our country: the Child Maintenance Service. In doing so, I hope that this House will send a clear message to every parent struggling with that system and every affected young person that their MPs are listening and that we are determined to act. I am pleased to see that the Under-Secretary of State for Work and Pensions, the hon. Member for Stretford and Urmston (Andrew Western), is responding for the Government, and I look forward to working with him to achieve the meaningful transformation that families desperately need. Before my election last July, I confess that the Child Maintenance Service had not been on my radar as such an important issue. That changed almost immediately upon my taking office, as constituents came to me with accounts of their experiences with the CMS, and appeals for help. These were not isolated incidents or minor inconveniences; they revealed systemic failures, enforcement mechanisms that seem to exist in name only, loopholes exploited by those seeking to evade their responsibilities, inadequate protections for survivors of domestic abuse, and an impersonal bureaucracy that overwhelms those it should be there to help. Failures to correct even basic errors grind down those unfortunate enough to be let down by the system. I want to share one constituent’s story that exemplifies those failings. For nearly two decades, dating back to the days of the old Child Support Agency, she has fought for what her child should have been entitled to. In all that time, her ex-partner has made consistent payments for just six months. After courageously leaving an abusive relationship, she had turned to the CMS for support. Instead, she encountered a system powerless to act when her ex-partner began gaming the system. He claimed to be unemployed while there was evidence that he was working. Missed payments would coincide with birthdays and Christmas, depriving her of the means to make those occasions special for her child. He refused to engage unless she contacted him directly, knowing full well how traumatic that would be given the history of abuse. Her mental health, understandably, deteriorated. Yet in all her desperate calls to the CMS, rarely did she speak to the same person twice—someone familiar with her case and invested in its resolution. In her words, support consisted of someone “who read from a screen, then said they will transfer me to someone who can help but really just put me back in the queue.” She has spent years feeling that she is going around in circles, without receiving all the payment that she should have received for the care of her child. Madam Deputy Speaker, I hope that the Minister agrees that this falls well short of what vulnerable families deserve.

I thank the hon. Gentleman for giving way. Does he agree that we need more enforcement, more accurate assessment of non-resident parent income, and better joined-up working between His Majesty’s Revenue and Customs and the Department for Work and Pensions? Furthermore, if we saw that, it would help not just his constituents, to whom he has referred so passionately, but parents such as my constituent whose ex-partner is avoiding paying any ongoing child maintenance despite owning multiple properties.

I absolutely agree; that is exactly the sort of reform we need to see in the system, and I will come to those points later.

I commend the hon. Gentleman for bringing forward this matter. I spoke to him before the debate. I would love to say that things are better in Northern Ireland, but they are not better one bit. Hon. Members can see that I have no hair, and one reasons for that is that I find this matter incredibly stressful, and he has referred to things that I and my staff deal with regularly. The statistics for Northern Ireland show that in March last year only 54% of parents were paying more than 90% of what they owe. That means that 46% of those who should be paying are not. It is quite clear to me that the system falls down. Single-parent families are struggling. Does he agree that we need a UK-wide overhaul to address such worrying statistics—not just in Northern Ireland, but everywhere in this great United Kingdom of Great Britain and Northern Ireland?

I will come to the national statistics later in my speech, but those mentioned by the hon. Gentleman absolutely speak to the need for reform. The constituent I mentioned is far from alone, and it is not all one way, with paying parents often finding themselves let down by the CMS too. Another constituent has spent months battling the service after experiencing a genuine drop in income. Despite providing every piece of documentation that he has been asked for, he has been left waiting and waiting for an adjustment to his payment schedule. He said: “I received a letter that said my request was not valid. No explanation was given. The letter said I would be referred to an unnamed team that could help me. Almost two months later, I have received no contact.” That is just another story that embodies the failures at the CMS. I recently attended the parliamentary event hosted by Gingerbread, the charity for single-parent families, and the all-party parliamentary group on single-parent families. The testimony shared that day echoed many of the fundamental problems: enforcement failures, dehumanising customer service, the resulting financial hardship and, in too many cases, continued abuse.

I thank the hon. Member for securing this important debate. I note that I am an officer of the APPG on single-parent families. The recent excellent report from Gingerbread on fixing the CMS noted that where child maintenance is paid, child poverty is 25% lower in those families. Does he agree that Gingerbread’s work is absolutely vital, but that it is also vital, as an important step towards solving the problem of child poverty, that we fix the Child Maintenance Service?

Gingerbread’s report on fixing the CMS is excellent. It has a lot of pointers and a lot of excellent statistics about how single-parent families are being let down. I will come on to some of those now. The Government’s own child maintenance statistics paint a damning picture: 31% of all paying parents made no maintenance payments whatsoever, and a further 12% paid less than 60% of what they owed. Those are not just statistics; they represent thousands upon thousands of children going without. I therefore ask the Minister directly: how do the Government intend to strengthen the CMS’s enforcement powers to prevent systemic abuse? Further, following the recent consultation on improving payment collection and transfer, when can we expect to see the Government’s response? More than a million children nationwide depend on CMS arrangements. Many of those children and their single-parent families lack the financial security they deserve and need. That brings me to the wider issue of child poverty. That is an area that this Government claim to prioritise, yet it is hard not to question the depth of that commitment when they have so far refused to abolish the two-child benefit cap and when reform of the CMS seems barely to have featured in policy discussions. The evidence is stark. According to Save the Children, almost half of all children in single-parent families live in poverty, compared with one in four children in two-parent households. Gingerbread’s “Fix the CMS” report revealed that over 50% of parents not receiving their entitled maintenance struggle to pay essential bills. Nearly half cannot afford basic necessities for their children, such as clothes, shoes and school uniforms. It should be self-evident that any serious strategy to tackle child poverty must include fundamental reform of the CMS. What progress has been made on the Government’s child poverty strategy, and have they given appropriate consideration to reform of the CMS? The challenges for the CMS are numerous and complex, and they beg further questions. Will the Government consider reviewing the CMS funding formula to ensure that it truly reflects the cost of raising a child? Will they commit to amending service charges, including the 4% fee for receiving parents who use collect and pay, and the initial £20 enrolment charge? How can the Government improve staff recruitment, retention and training, to ensure that the workforce can properly support those who depend on this vital service? Those are just some of the questions that the Government must consider if they want to reform the CMS. The answers will not be easy, so I thank the Minister in advance for his response, and Mr Speaker for granting this important debate. Finally, I acknowledge the contributions and presence of all Members who have stayed for this debate. They understand the gravity of the issue. I hope the Minister is about to show us that the Government do too.

20:21:00

Let me begin by congratulating the hon. Member for St Neots and Mid Cambridgeshire (Ian Sollom) on securing this debate, which is incredibly important to him and his constituents. I hope that I will assure him in my contribution that it is important to the Government too. Far too many children are growing up in poverty. A key priority for this Labour Government is to reduce that number as soon as possible. That is why child maintenance is incredibly important. It is estimated that child maintenance payments keep around 160,000 children out of poverty each year. That has involved the CMS arranging around £1.4 billion in child maintenance payments in the 12 months to September 2024. Tackling child poverty is an urgent priority for the Government, which is why we have already announced our commitment to triple investment in breakfast clubs to over £30 million, to roll out free breakfast clubs at all primary schools, to create 3,000 additional nurseries and to increase the national living wage to £12.21 an hour from April to boost the pay of 3 million workers, many of them parents. The ministerial child poverty taskforce, to which the hon. Gentleman referred, is working to publish a child poverty strategy later this year, which will deliver lasting change. In developing the strategy, the taskforce is exploring all available levers for reducing child poverty across four key themes: increasing incomes, reducing essential costs, increasing financial resilience and better local support, especially in the early years.

The Minister mentioned that the taskforce would look at all options. Would that include scrapping the two-child benefit cap?

The hon. Member will have heard me say that we are looking at all available levers across those four areas. We rule nothing in and nothing out, but I understand his point. We are aware of the challenges that the CMS faces and recognise that there is scope for improvement. The ministerial team as a whole is committed to making those improvements. On what we are doing about those issues, I will turn to the recent direct pay consultation, which the hon. Member for St Neots and Mid Cambridgeshire referred to, and offer some background to the proposed reforms. My party has long called for reforms to the direct pay service, stating that it does not work for all parents. For that reason, this Government extended the direct pay consultation launched by the previous Government, with the express purpose of gathering as much feedback from stakeholders as possible. We are looking closely at the feedback received and will publish the Government response in due course. I appreciate that the hon. Member for St Neots and Mid Cambridgeshire would ask for a more specific timeline, but I hope he will appreciate that in what is an incredibly delicate area—dealing with vulnerable children, vulnerable families and strained relationships—we want to take our time and ensure that we get the changes right.

My hon. Friend will know that getting it right for the most vulnerable children is important, but we are increasingly seeing post-separation abuse and post-separation financial abuse coming to light. Indeed, the report from Gingerbread that I cited earlier said that 45% of people who report post-separation financial abuse say that it gets worse when the CMS is involved. I hope that any report into the work of the CMS and supporting vulnerable families will look at that question and help us get some answers on that issue.

I thank my hon. Friend for his intervention. He has a long history of working not just on CMS issues but on child poverty more broadly, and his expertise is of great value to the House. I will say a little more about domestic abuse and financial abuse later in my contribution, but I reassure him that the focus we had in the consultation on the proposed abolition of direct pay was intended as a specific response to that issue. I have seen appalling examples in cases that have crossed my desk as a Minister of people who can message their former partner in the form of a comment on a bank transaction. They will transfer a penny—they have a direct payment in place—along with an abusive term or some form of triggering harassment of a former victim of theirs. That shows that while a parent may have moved away from that unsafe and dangerous environment, they are never fully away when direct pay is engaged.

I can see the hon. Member for Strangford (Jim Shannon) trying to come in. I will beat him to it and give way.

I thank the Minister. I expect that we will have a positive response from him to the hon. Member for St Neots and Mid Cambridgeshire (Ian Sollom) and all the queries, because that is what we get from the Minister we have in front of us. One of the things that really frustrates me—it frustrates us all—is whenever one of my constituents comes to me and says, “I get a different person every time I phone up. I have to tell them the same story over and over again, and then you go back two weeks later and the person you were speaking to is away as well.” There must be some way in the Department for Work and Pensions that we can have a specific case officer who looks after something, and they need to respond to that person. I know that the Minister understands these things, but, honestly, it is so simple to sort out—at least, it seems to me to be simple. We really need something on behalf of all our constituents.

I absolutely understand the point that the hon. Gentleman is making. With specific reference to named caseworkers, initially for victims of domestic abuse, I will have something further to say that I think he and all hon. Members will welcome, but I take his more general point. If I may make some progress, turning to direct pay and domestic violence, financial abuse and so on, the proposals also sought views on collection fees and explored how victims and survivors of domestic abuse can be better supported. That is so important given the issues raised by the hon. Member for St Neots and Mid Cambridgeshire and the case he cited of his constituent. Overall, work is ongoing to establish the steps needed to really improve the service, taking account of the views of parents. Those will be set out in the response to the consultation. I appreciate that he would like that to be as soon as possible; I will take that away. To drill down on the issue of domestic abuse, the scale of violence against women and girls in our country is intolerable, and the Government will treat it as the national emergency that it is. Our manifesto included the mission to halve violence against women and girls in a decade—we were right to do so—and I and all Ministers are focused on making that a reality. If I may, I will therefore say a little about the support that should be available. If the hon. Member wants to share specific details of the case that he referenced with me, I will take that away. The support that should be available is extensive and runs contrary to what clearly happened in the case that he outlined. We have overseen progress in providing support, with the continued roll-out of an operational team to deliver targeted support to parents subjected to the most challenging and complex domestic abuse. The team provide a tailored and discrete service to customers, which is incredibly important, giving regular progress updates. They can and do assign a named caseworker to prevent customers having to re-tell their story at each interaction. As the hon. Member for Strangford (Jim Shannon) was saying, that can be incredibly stressful for parents using the service. Caseworkers are trained to identify and refer appropriate cases within the collect and pay service to that team. More generally, the CMS consulted on a diverse range of stakeholders to review its domestic abuse training for all frontline CMS staff to ensure that caseworkers understand, recognise and respond appropriately to customers who are experiencing domestic abuse or who are survivors of domestic abuse.

I am very grateful to the Minister for giving way and I congratulate the hon. Member for St Neots and Mid Cambridgeshire (Ian Sollom) on securing the debate. Like him, I have had a number of people come to me with stories of being ignored, let down or left behind by this agency. The sooner the failures of the agency are dealt with, the better for people not just in my constituency but up and down the United Kingdom. With that in mind, will the Minister find time to meet me to talk about the specific examples faced by my constituents? He touched on the point that this is an equality and safety issue. That is very much the situation in my patch for the people who come to my surgery. I would therefore be grateful, in the spirit he has approached the debate so far, if he could find time to meet me to discuss those points.

I should have known that my hon. Friend would be in his place. He is keen on an Adjournment debate—we all know that. This is where I out myself as an imposter, because I am not the Minister with direct responsibility for the CMS, but I am very happy to put him in touch with the Department’s Minister in the House of Lords, who I am sure would be happy to have a conversation with him. Turning back to the hon. Member for St Neots and Mid Cambridgeshire and the points he made about calculation reforms, a broad review of the child maintenance calculation is being conducted. It is examining the scope for change and improvements, while maintaining the simplicity of the calculation. It can be very frustrating for paying parents who are waiting to have income reassessed, and for receiving parents when they are aware that a paying parent has received a substantial income increase. The calculation at present generally looks at income from the previous tax year and it is only when somebody’s income has changed with a divergence of more than 25% in either direction that it triggers an in-year evaluation. We are looking at ways we can change that, while recognising that we need to encourage payment compliance and more sustainable arrangements in all that we do. The hon. Gentleman will be pleased to hear that the £20 application fee he referred to was removed in 2024, getting rid of a financial barrier to parents wishing to access the CMS. Proposals to include more types of taxable income held by HMRC within the standard maintenance calculation are being considered, alongside the review of the child maintenance calculation. Turning to enforcement—my hon. Friend the Member for Congleton (Mrs Russell) also raised this issue—I can understand that for some receiving parents there are frustrations with how quickly the CMS secures payment from non-compliant paying parents. We have seen significant improvements to speed up action when payments first break down and to target enforcement action more effectively. We are changing the process at present to make direct deductions something we can do more swiftly where issues emerge. We have a range of strong enforcement powers that can be used against those who consistently refuse to meet their obligations to provide financial support to their children, and in the past year to September 2024 the CMS has collected £16.8 million from paying parents with civil enforcement actions in process. Collections through civil enforcement have followed a general upwards trajectory in recent years. For comparison, the equivalent figure in 2021 was £10.3 million. I would like to finish by talking about the improvements to customer experience and digital services that the Department has been introducing. Since 2020, as part of the DWP service modernisation programme, the Department has transformed the ways in which customers can interact with the CMS, providing customers with the choice to make contact with digital routes and reducing the time taken to action change of circumstances. We continue to develop our digital offer, evaluating through user research and customer feedback, but we are committed to retaining a non-digital telephony service to ensure that no customer is excluded. As I said earlier, I recognise that the hon. Gentleman is rightly impatient, as are other Members, to see change and to see the details of our reform package following the conclusion of the recent consultation, but getting the right solution will take a little time. It is right that the changes that we make are properly considered and robust so that the CMS can continue to play not just an important role but an ever-more effective and increasingly important role in supporting children and tackling child poverty. Question put and agreed to.

20:35:00