Source · Select Committees · Work and Pensions Committee

Recommendation 23

23 Accepted

CMS correspondence on arrears accrual lacks clarity, undermining paying parents' confidence.

Conclusion
We have received evidence critical of the correspondence provided by the Child Maintenance Service. For example, paying parents reported asking for details on how substantial arrears had accrued and receiving no effective information in response. This risks exacerbating hostility by preventing paying parents from having confidence in the debts being pursued. (Paragraph 92) Matters of interest to both receiving and paying parents
Government Response Summary
The government acknowledges issues with historic CSA arrears and states it previously addressed these by closing old cases and conducting a 'case cleanse' process to stabilize debt balances. Both parents were given outstanding debt information and an opportunity to dispute it before collections began.
Government Response Accepted
HM Government Accepted
The Department understands that this issue relates primarily to cases moved from the old Child Support Agency (CSA) caseload into the Child Maintenance Service, and the level of arrears from the CSA case that transferred to CMS. The problems with the old Child Support Agency schemes have been well documented, and the Department acknowledges that it failed to support families and children – this is why the more efficient and effective Child Maintenance Service was introduced. The Department closed all CSA cases with ongoing liabilities by the end of December 2018, transferring cases with historical and often substantial debt to CMS. Customers were given the choice whether they still wished to use the statutory scheme to arrange their maintenance. To ensure that debt balances on closing CSA cases were stable all cases went through a case cleanse process. Both parents were provided with the outstanding debt balance, allowing the opportunity to provide any details that would impact the arrears balance prior to collections commencing. Where a new case was raised on CMS attempts were made to secure voluntary compliance, if this was not successful then CMS use their powers to attempt to secure payment of arrears. Children in poverty: Child Maintenance Service: Government Response 15