Labour accused of failing CSA
The government has come under fire for failing take the necessary action to reform the Child Support Agency (CSA), despite pledging to do so seven years ago.
Liberal Democrat leader Charles Kennedy questioned Tony Blair’s commitment to reforming the agency, which is charged with collecting maintenance payments from estranged parents.
During prime minister’s questions, he cited the prime minister’s description in 1998 of the agency as “a mess and in need of urgent support”, and asked why nothing had been done.
When Mr Blair tried to say that the government was “looking urgently at what could be done”, Mr Kennedy insisted: “He was looking urgently at the situation seven years ago.”
Figures obtained by the Lib Dems reveal the CSA has made more than 35,000 payments for maladministration since December 2001, some of them for between £10,000 and £50,000.
Earlier this year, the Commons work and pensions committee said the agency was a “failing” organisation, with 250,000 outstanding cases and about £1.5 billion in uncollected child support.
And in September, former social security minister Frank Field warned that, according to his own research, the CSA was now in a worse state than it was when Labour came to power.
Today Mr Blair admitted that he could not defend many of the problems suffered by the agency, but said: “The CSA is in an extremely difficult position.
“It is the investigating agency, the adjudicating agency and the enforcing agency. It is extremely difficult and staff work in extremely difficult circumstances.”
Under the Conservatives – who set up the CSA in 1993 – the administration costs outweighed the money that was brought in. This was no longer the case, although Mr Blair admitted that it was still far from the efficient organisation that it could be.
“We legislated on this before to simplify the system, and that has reduced the costs,” he told MPs, and referring to today’s figures from the Lib Dems, said that the “vast majority” of compensation payments – 33,000 of the 35,000 – were for less than £1,000.
Mr Blair admitted that the agency was unsuited to its purposes, and the Lib Dems seized on this as an indication that he shared their belief that the CSA’s responsibilities should be transferred to HM Revenue and Customs.
“The government’s line is chaotic and confused,” said work and pensions spokesman David Laws.
“Earlier today Lord Hunt said that the CSA could be reformed through a gradual process. Now the prime minister’s comments imply that he realises there is no other way forward than to scrap the CSA.”
He added: “Parents who view the CSA with nothing but contempt or despair need to know that its days are now numbered and that its functions will be transferred to the Revenue so that it better serves those who are trying to pay their maintenance and properly pursues those who aren’t.”
