The Work and Pensions Committee Report states that the CMS can play a crucial role in lifting children out of poverty, but reforms are necessary given that the poverty rate of young people in the UK’s 2.3 million separated families is higher than that of children in couple-parent families.

The CMS should intervene more quickly when direct remittances between parents fail. 

These cases should be transferred from Direct Pay to Collect and Pay, where the service collects and transfers child support to the receiving parent. There should be a means test for collecting and paying fees to assist low-income carers. At present, the CMS charges the paying parent 20% of the maintenance collected, while the receiving parent foregoes 4% of the maintenance collected. 

The report recommends a six-month deadline for the government to conclude its affordability analysis and propose updating maintenance levels and thresholds for parents who pay maintenance. The Committee cites evidence indicating that the current system forces some paying parents into destitution, leaving them with insufficient funds to survive.

Chair’s comment

Chairman of the Work and Pensions Committee, Rt. Hon. Sir Stephen Timms, MP, stated: “The accounts of frustration and distress from both sides of the Child Maintenance Service (CMS) should serve as a wake-up call to the service. The CMS can play a crucial role in enhancing the lives of numerous young people suffering from separated homes. Without change, children will continue to be destitute without the support they deserve.

Improving enforcement is essential. The CMS should also ensure that parents experiencing domestic violence, who would benefit most from Collect and Pay, are not penalised by its fees. “The exorbitant payments demanded from some parents cause severe distress and encourage non-compliance. The thresholds should be updated to make payments more affordable.”

This is the third and final report investigating the most effective means of reducing child poverty. Before this, the Committee published reports on measurements, targets, and minors without recourse to public funds.

Principal Findings and Suggestions

The viewpoint of adoptive parents

Many parents rely on child support to avoid or mitigate the effects of hardship, but enforcement is presently slow and frequently ineffective. DWP should develop measures to increase the efficiency and velocity of enforcement.

Where there is little chance of success with a Direct Pay arrangement, DWP should expedite the transition to Collect and Pay. DWP should consider transitioning to Collect and Pay when child supports arrears reach 50 per cent of the average arrears.

Concerns were expressed regarding the fraudulent efforts of some parents to reduce child support calculations. The report reiterates the recommendation of the Public Accounts Committee that the Department evaluate the risk of fraud and error in child support and publish an estimate and target rate.

The DWP still needs to implement partial deductions for child support. 

Child support ranks 12th on the list of deduction priorities for Universal Credit. Child support deductions should take precedence over deductions for the payment of debt owed to the government. The Committee applauds the government’s support for a bill allowing domestic violence cases to bypass Direct Pay and proceed directly to Collect and Pay.

Since the 2012 reforms, the number of families with private arrangements has increased, but so has the number of families with no arrangements. This means that some children are being denied maintenance unnecessarily. The government are expected to explain how it intends to reach and assist such families and investigate why some parents who desire child support do not have one.

Topics of concern to both paying and receiving parents

The efficacy of collecting and paying fees was harshly criticised in testimony presented to the Committee. DWP should waive these fees for clients who have experienced domestic violence or whose children have been abused.

Regarding customer service, the Committee endorses providing customers with a designated caseworker. DWP should also experiment with varying helpline operating hours.