Source · Select Committees · Public Accounts Committee
Recommendation 27
27
Low-income paying parents are more likely to build up child maintenance arrears than those who...
Conclusion
Low-income paying parents are more likely to build up child maintenance arrears than those who are higher paid: 46% of paying parents using the CMS did not earn enough to pay income tax (£12,570 in 2021–22), but these parents represented 62% of those with arrears as at March 2021 .Alongside making enforcement more challenging, we received written evidence from a number of non-resident parents who told us about distress and hardship they had experienced being asked for amounts they considered to be 50 C&AG’s Report, paras 21–22, 2.20 51 Q66; C&AG’s Report, para 2.20 52 Qq 70, 73–74 53 Qq 69–70; C&AG’s Report, para 2.22 54 Q 67 55 Q 32; C&AG’s Report, para 2.15 56 Q76; National Tables Child Maintenance Service Statistics data to September 2021, Table 7_2 57 Q 67 58 Qq 67 and 68; 20 Child Maintenance unreasonable, unfair or inaccurate, as well as unaffordable.59 More than two-thirds (68%) of those parents who are using Collect & Pay, and over a quarter (26%) of parents using Direct Pay, say that it is unaffordable.60
Government Response
Not Addressed
HM Government
Not Addressed
7. PAC conclusion: The Department’s ability to collect child maintenance is limited by the affordability of payments and the system risks creating a poverty trap for some Paying Parents. 7. PAC recommendation: As part of its Treasury Minute response, the Department should set out its plans to review the affordability of Child Maintenance Payments and the appropriateness of the current award calculations, including the earning thresholds. 7.1 The government disagrees with the Committee’s recommendation. 7.2 As referenced in paragraph 6.5 of HMT guidance, Parliamentary scrutiny of public spending, the department cannot set out its plans to review the affordability of liabilities in its response to the Committee as this relies upon a policy decision. 7.3 However, the department is considering its plans to review the affordability of Child Maintenance Payments and will update the Work and Pensions Committee in due course.