CSA may have reprieve until 2006

24 Nov 05
Work and Pensions Secretary John Hutton has warned MPs that the government's response to a root-and-branch assessment of the Child Support Agency could be delayed until 2006.

25 November 2005

Work and Pensions Secretary John Hutton has warned MPs that the government's response to a root-and-branch assessment of the Child Support Agency could be delayed until 2006.

Hutton told the Commons work and pensions select committee that he would attempt to publish his response to CSA chief executive Stephen Geraghty's assessment of the agency by the end of this year.

But he made it clear that he was prepared to delay government action to give ministers more time to consider how best to deal with the failing organisation.

Ministers at the Department for Work and Pensions – including Hutton's predecessor, David Blunkett – had promised to publish either Geraghty's report, or the government's response to it, this summer. But a combination of the complex problems at the CSA and the disruption caused by ministerial changes has caused delay.

Hutton replaced Blunkett three weeks ago – the third DWP secretary of state this year. The department has also had several new ministerial appointments and a change of permanent secretary.

'David Blunkett said he would try to get the report out by the end of the year and I'm going to try and stick to that. But I'd be criticised… if I published too early,' Hutton told MPs on November 23. 'These are massive issues and I'm not going to pretend otherwise.'

John Williams, Hutton's special adviser on policy, later confirmed to Public Finance that the report could be published early next year. 'Ministers need to be absolutely certain that their proposed solutions to the CSA's problems will work and get value for money,' he added.

But Hutton was clear about the need for CSA reform. The agency, which manages child maintenance payments from absent parents, has a backlog of around 350,000 claims.

It has been troubled by a problematic £465m IT system since a new payment structure was introduced in 2003. Almost £1bn of 'bad debt' – mostly unpaid claims – has been written off in recent years and overpayments to others are commonplace.

Hutton said the key to improvement was better enforcement. 'There are a lot of fathers who don't want to pay maintenance for their kids. We shouldn't pussyfoot around – that's the challenge.'

PFnov2005

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