Child maintenance 2012 scheme: Early Progress
20 Jun 2014 01:12 PM
Full report: Child maintenance
2012 scheme: Early Progress
The Department for Work and
Pensions has successfully introduced the first phase of the Child Maintenance
2012 scheme, according to the National Audit Office. The Department tackled
early weaknesses and made decisions about timing and phasing to reduce risk.
However, the spending watchdog has warned that the scheme’s overall
objectives might be at risk if the number of people intending to use
family-based arrangements does not improve over current
levels.
The 2012 scheme replaces the
existing 1993 and 2003 child support statutory schemes, which struggled with IT
problems leading to poor customer service and incomplete information about
outstanding debt. The two-phase 2012 scheme has been designed by the DWP to
encourage parents to make their own arrangements for child maintenance. Phase 1
brought in a new IT system and simplified rules for applicants. Phase 2,
expected to start in June 2014, will introduce charging to encourage parents to
make family-based arrangements. The Options Service provides guidance to
parents on different ways to arrange child maintenance. It is now mandatory to
go to the Options Service if parents want to make an application for child
maintenance.
The Department has simplified
the way it administers child maintenance by reducing the number of its
procedures and automating checks on parents’ income. It is also
introducing online portals to allow employers and parents to manage payments
online.
The DWP has significantly
improved the control of its programme, which has led to better integration of
suppliers, increased accountability and improved contractor
performance.
It expects to save £220
million a year by encouraging parents to come to their own arrangements,
thereby reducing the number of applicants to the scheme, and also by
introducing charges.
The NAO today finds that,
although the costs of the programme have increased and the Department does not
yet have full information about cases, the 2012 scheme is approaching expected
levels of performance. It is assessing 95 per cent of new cases
accurately.
Phase 2 continues to be the most
uncertain phase of the 2012 scheme and, in early 2014, the Department decided
to postpone the start of it by three months, to June 2014, to reduce
risks. The Department has identified charging and case
closure as the main risks to the 2012 scheme. It has done some modelling of the
impact of charging but accurately predicting parents’ reactions is
difficult. If its assumptions are wrong, the scheme’s overall benefits
may be at risk. The number of clients intending to choose family-based
arrangements has reduced since August from 5,540 to 3,590. This may change as
the Department introduces charging.
Amongst the NAO’s
recommendations, the Department should complete testing of the new systems or
fully assess the risks of proceeding without full testing.
“The
Department for Work and Pensions has significantly simplified the way it
administers child maintenance and is approaching expected levels of
performance. However, there are indications that fewer
parents are intending to choose family-based arrangements, and this is
concerning. I am pleased to see that the Department is proceeding cautiously
and aiming to learn from experience. Significant tasks still lie ahead for the
Department. However, delivering value for money from the 2012 scheme will
depend on winding up the remaining legacy cases from previous schemes and
successfully implementing technology
improvements.”
Amyas Morse, head of the
National Audit Office, 20 June 2014
Notes for
Editors
£950m
Expected cost of introducing the
2012 scheme
£220m
Expected annual saving from
introducing charging and closing cases
800,000
Legacy cases that the Department
will close or move to the 2012 scheme by 2018
£503
million
Cost of administering the child
maintenance statutory service in 2012-13
£370
million
Expected cost of closing cases
from the previous schemes ('legacy' cases)
£352
million
Expected cost of IT for the 2012
scheme
55,600
People making applications to
the 2012 scheme between December 2012 and March 2014
95 per
cent
Accuracy to within £1 or 2
per cent of the correct calculation in 2013-14
90 per
cent
Proportion of new cases where HM
Revenue & Customs or job centre systems have provided details of
parents' income
1. Press notices and reports are
available from the date of publication on the NAO website, which is at
www.nao.org.uk. Hard copies can be obtained by using the relevant links on our
website.
2. The National Audit Office
scrutinises public spending for Parliament and is independent of government.
The Comptroller and Auditor General (C&AG), Amyas Morse, is an Officer of
the House of Commons and leads the NAO, which employs some 820 staff. The
C&AG certifies the accounts of all government departments and many other
public sector bodies. He has statutory authority to examine and report to
Parliament on whether departments and the bodies they fund have used their
resources efficiently, effectively, and with economy. Our studies evaluate the
value for money of public spending, nationally and locally. Our recommendations
and reports on good practice help government improve public services, and our
work led to audited savings of £1.1 billion in 2013.