Child Maintenance Service — House of Commons, 2017-11-16
Topic: Macroeconomics
Angela Crawley (Scottish National Party, Centre-left): I wholeheartedly agree with my hon. Friend that such errors, so glaring and so obvious, should be addressed by the Government The service levels offered to my constituents are often inconsistent, and CMS rules are often not followed by departmental staff. For example, requests to use the collect and pay service are often discouraged by advisers. I have previously raised the case of a constituent whose ex-partner was falling behind on payments and had requested to be put on the collect and pay scheme. She was told by a CMS adviser that this was not possible because the shortfall in payments was less than 10%. My constituent had not heard of this rule and, on asking where this was written in the legislation, was told to look it up herself I could not find it written down anywhere either, and on questioning the Department, I was informed that it was not policy. Will the Minister tell me if there are targets for staff to keep people off collect and pay? I sincerely hope that there are not. If not, why are excuses being made not to use the scheme? In calculating the amount owed by the paying parent, income details are taken from HMRC, but they are not always taken from the most recent tax year. In fact, HMRC can use historic income data from any year in the past six for which it considers it has complete details While this might work for most people, as was outlined in correspondence with the Department, it fails those who are self-employed or who tend to work on a contractual basis. For those people, income figures can vary dramatically year on year, so the calculation often does not reflect real incomes. The CMS system of annual reviews does not work for contractors, particularly when the annual review takes place before the end of the tax year. That simply causes more issues, with CMS payments being calculated on the basis of inaccurate income figures. There is currently no facility for a mid-year adjustment, and I ask for that aspect of the policy to be reviewed An additional failure in the system of calculation is that, should a contractor submit payslips to try to prove current income, the amount shown on them is extrapolated to produce an estimated annual income. The contracts are often, by nature, short-term, and a few months of high income may be followed by months of no work. This is what happened to my constituent George Gillan, from Carluke. As the Minister knows, I have written to one of his colleagues about it George worked offshore on a contractual basis, with a high income during the months when he was working, which were followed by periods when he could live on those earnings when out of work. At present, the CMS is calculating his payments on the basis of income from the tax year ending April 2015. George tried to submit evidence of a change in his circumstances by sending 12 weeks of payslips, but that was extrapolated across the whole year. The total estimated income did not breach the 25% threshold for a new calculation, so it could not be changed That left my constituent owing payments that he simply could not afford to make. His annual review takes place in February, and because a mid-year adjustment could not be offered, he cannot afford to take short-term contracts, as he will be expected to make payments based on his higher income from 2015. He has not worked since December 2016, because he is fearful that he will be penalised on that contractual basis. If mid-year adjustments were possible—I hope the Minister will consider them—things would be much easier for those who are self-employed or work on a contractual basis. I hope the Minister will agree that that would be an easy accommodation to make. There is a fundamental flaw in the current procedure for identifying accurate income details, especially those of contractual workers I am sure that I have given the Minister more than enough material to respond to, but Members and the public will know there are many issues I have not been able to cover today. Let me recap. I am asking the Minister to make the system fairer for survivors of domestic abuse by scrapping the 4% tax for those who use the collect and pay service. I am asking him to address the administrative problems that plague the CMS. I am asking him to ensure that its service is managed to a high standard and that policies are clear and correctly interpreted by staff. I am asking him to ensure that the CMS works for contractual workers by allowing accurate income details to be taken and allowing for mid-year adjustments. I realise that it is difficult for policy changes to be made, but I hope that the Minister will give serious consideration to some of the injustices that my constituents and people across the country have experienced in their dealings with the CMS I am grateful for the opportunity to speak. It took me rather a long time to secure the debate. I urge the Minister to take my pleas on board and to seek to improve the system to protect and support families, which is what the Child Maintenance Service should be doing.