Contribution
I am not surprised that the noble Baroness, Lady Coffey, managed to persuade those in a position to be persuaded that this amendment should have the opportunity to be discussed this evening. There is something refreshing about the idea of the noble Baronesses, Lady Coffey and Lady Stedman-Scott, rightly pursuing people who owe money for their children and who have that responsibility. I have no doubt that my noble friend Lady Sherlock and the current Secretary of State will be equally relentless in making sure that families are paying for the children for whom they have responsibility, and that is quite right.
I know from what the noble Baroness said that the intention of this amendment is to probe and push on the progress being made with each of the pieces of legislation that she talked about. I hope to provide some reassurance on that.
First, the powers within Section 34 of the Child Maintenance and Other Payments Act enable debt owed to parents or the Secretary of State to be transferred to other parties, including debt collection agencies. This power was introduced as an option to deal with the £3.8 billion debt burden that had accrued under the former Child Support Agency. A proportion of that debt was owed directly to the Secretary of State, and I am assured that the issue of Child Support Agency debt has now been resolved. The Child Maintenance Service has strong and effective enforcement powers, including imposing prison sentences for non-payment.
On the specific point about debt collection agencies, there is no evidence that using debt collection agencies would actually secure more child maintenance than current enforcement powers. In fact, a previous trial absolutely demonstrated that, so there is no evidence that commencing this power would have a positive impact on children’s well-being.
Secondly, the Child Support (Enforcement) Act 2023 introduced powers that, once commenced, would enable an administrative liability order to be made against a parent with outstanding child maintenance arrears. As the noble Baroness says, this introduces savings in court costs and time. I am pleased to confirm that progress is being made to implement the necessary legislation to bring this power into force as soon as possible. The Government are working with His Majesty’s Courts & Tribunal Service and the Scottish Government to establish a process for implementing ALOs, and plan to introduce regulations to Parliament by the end of this year.
The Child Support Collection (Domestic Abuse) Act 2023 recognised that direct pay may not always be appropriate for victims and survivors of domestic abuse. The Act intended to provide them greater protection when using the Child Maintenance Service, by allowing them to move to the collect and pay service but only where there is evidence of domestic abuse. The Government recognise that removing opportunities to use the Child Maintenance Service to inflict economic abuse will benefit the well-being of children. However, many victims and survivors would be unable to provide that necessary evidence as required by the Act. For those who could, there are risks that providing evidence of their experience of abuse and reliving events could lead to further trauma.
That is why the Government today published our response to the consultation, Child Maintenance: Improving the Collection and Transfer of Payments. It sets out plans for reforms to introduce a service that protects all parents from financial abuse and, importantly, includes no requirement for victims and survivors to provide evidence of their circumstances. These reforms, therefore, go further than the provisions contained in the 2023 Act to protect victims and survivors of domestic abuse. They will have a positive impact on children and their well-being, as more child maintenance liabilities will be enforced, leading to more money going to children, which I know is the objective of the noble Baroness, Lady Coffey, in moving this amendment.
I hope that I have provided sufficient reassurance for the noble Baroness to withdraw this amendment, although she has already identified that she has other ways to put pressure on the Government to ensure progress, and I have no doubt that she will continue to do so.