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Child Support Policy UK
Christine Skinner
ESRC Seminar ‘First Principles: Comparative Legal Frameworks and Public Attitudes’
27 March 2014,The Nuffield Foundation, London
Introduction
 Policy Origin 1991
 2008 Act Radical Reform
 2012 Act Conservative Coalition
 Relationship support services
 Remaining Challenges
 How we compare internationally
The Department of Social Policy and Social Work
Policy Drivers
1990’s Lone parents a concern
 Numbers rising fast BUT state expenditure
rising even faster
 £1.4b (1981) - £4.3b (1990)
 Employment rate fell < 40% was 51% 1978
 Only 23% rec benefits got child support 1989
(50% 1979)
 Social problem & social threat
The Department of Social Policy and Social Work
Policy Drivers
 Demographic Change
 Poor Operations (Courts and liable relatives)
 Mrs Thatcher & Cross Party Support
CSA implemented 1993:
 Effect ALL ‘non-resident parents’
 Retrospective – overturn all previous
agreements
The Department of Social Policy and Social Work
Original Policy Aims 1993
 More men pay & pay more
 Efficient, consistent, Administrative solution CSA
 Formula
 Strong enforcement
 Fiscal goals –
 £530m benefit savings target
 More lone parents to work
 Change ‘culture’ of non-compliance
 No explicit child well-being aim
The Department of Social Policy and Social Work
1993-2008
 CSA near collapse – admin chaos
 Low rates compliance
 Many new Acts
 2008 Act return obligation to parents
 CSA Toxic brand – CMEC
 New CMO service
The Department of Social Policy and Social Work
The Department of Social Policy and Social Work
 4 new principles:
Reduce Child poverty
Promote Private agreements
Cost effective & professional
Simple & transparent
 CMEC took over CSA 2008
 Aim single system by 2013-14
 2010 all CM paid kept by all parents with care
 Decoupling of CM from public social security
2008 Act
 BUT… argue no improvement since 2008
 50% children no arrangement1
 Only 1 in 5 parents private arrangement 2
 38% lone parents got CM (8% rise since 1991)
 CSA increases parental conflict
 CSA default option
 Costly to run 1,2,3.
Conservative Coalition elected
2010
The
 Green Paper 2011 – change of tone
 Parents’ have range of issues
 Separation complex and difficult time
 Framed within a broader CWB perspective
 Some New Legislation:
 More holistic: new ‘relationship support’
services.
 New ‘model’ of child support service
Conservative Coalition
The Department of Social Policy and Social Work
New Operations Model 2012
The Department of Social Policy and Social Work
Primary aim 3rd & voluntary sector work with parents ‘collaborative culture’
Nudges - family based agreements
If need CMS fees proposed in 2014:
 Application Fee: £20 (originally £100)
 Collection Charge:
 Receiver 4% deducted from CM (originally 7%).
 Payer charged additional 20% on top of CM
 Enforcement Charges:
 £50-£300 depending on action needed
Implement fees late 2014 only IF:
 New scheme proven to be working well
The Department of Social Policy and Social Work
Relationship Support Services
 Web App
 Telephone networks
 Training agencies collaborative
parenting
The Department of Social Policy and Social Work
 ‘Help and Support for Separated Families’ programme
 2012 - £20m (£14m Innovation Fund)
 Innovation Fund: test new projects help parents collaborate.
How Compare Internationally?
 Decoupling of CM from Social Security
System
 All private CM income ignored in social
assistance
 Comparison of 5 countries (Skinner et al 2013 –
EJSS special issue)
 Policy Aims
 Advice and support services
 Outcomes using vignettes
The Department of Social Policy and Social Work
Policy aims 5 countries
 Identify aims of CM policy not easy:
 Often implicit
 Overlap with family law provisions and care
 Overlap with social security systems …
Difficult know where CM policy begins and
ends for example child poverty reduction an
aim for both systems.
 Common encourage private financial
responsibility
The Department of Social Policy and Social Work
Advice and Support Services
 Finland and Iceland – municipalities offer
counselling/mediation
 US-Wisconsin county courts offer mediation
 UK- Statutory CM Options information
 NL - Court based
 Limited evidence: no info aims, access and
take-up, effectiveness, charging or
experiences of using them.
The Department of Social Policy and Social Work
How much do CM schemes set?
 Compare official amounts set (not same as amount
paid).
 Purchasing power parties US dollars
 Main purpose understand how works
 Vignette one: Ms Mary and Mr Paul, low income,
one child 3 months born into lone parent.
 3 scenarios of employment.
 Vignette two: Mr and Mrs Forest, middle income,
two children aged 6 and 9, divorced.
 3 scenarios: employment, new child, shared care
The Department of Social Policy and Social Work
Ms Mary, Lone Parent – 3
scenarios
The Department of Social Policy and Social Work
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
Both Unemployed Mr Paul Employed FT Ms Mary Employed PT
$PPP
Weekly Child Maintenance in $ Purchasing Power Parities
Vignette One Ms Mary and Mr Paul
Unmarried couple one child aged 3 months
UK
US
Iceland *
Finland *
Netherlands
Challenges: UK policy
Policy future perhaps less focus on
operations:
 Effectiveness relationship support services
 Supporting ‘collaborative parenting’
 How help parents negotiate agreements.
 Fees and effectiveness in encouraging PA
 See my paper tomorrow…
The Department of Social Policy and Social Work
Challenges comparative research
 Results 5 country analysis shows need know how
amounts set.
 But more important understand:
 Who pays and how paid - payer can shift in
guaranteed schemes at different income levels
 How much paid and received - bound up in complex
interaction with social security schemes
 Hope you take up this challenge 2015 seminars 4 and 5
Poverty and CM: Interaction with Social Assistance
Schemes and Problems of Measurement
The Department of Social Policy and Social Work
References
1. DWP Cm 8130 (2011) Government’s response to the consultation on Strengthening
families, promoting parental responsibility: the future of child maintenance’, London:
The Stationary Office.
2. DWP (July 2012) Supporting Separated Families: Securing Children’s Future.
3. CMEC (2011) Website ‘Remit’ http://www.childmaintenance.org/en/about/remit.html:
accessed 8.8.2011.
4. Skinner, C., Hakovirta, M. and Davidson J. 'A Comparative Analysis of Child
Maintenance Schemes in Five Countries' in 'Special Issue: Child Maintenance
Schemes In Five Countries', European Journal of Social Security, Vol. 14, No. 4,
2012, 330-348.
The Department of Social Policy and Social Work
Institutional Operations
 July 2012 CMEC abolished taken over by DWP
 CSA1 & CSA2 still going (no single system by 2013-14)
 New ‘Statutory Child Maintenance Service’ (CMS):
 ‘new-new’ service (plus CSA1 and CSA2 cases)
 Open all new cases Dec 2013
 Aim fully operational 2014
 All CSA close 2014-17
 All parents through the gateway
The Department of Social Policy and Social Work

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Child Maintenance in the UK

  • 1. Child Support Policy UK Christine Skinner ESRC Seminar ‘First Principles: Comparative Legal Frameworks and Public Attitudes’ 27 March 2014,The Nuffield Foundation, London
  • 2. Introduction  Policy Origin 1991  2008 Act Radical Reform  2012 Act Conservative Coalition  Relationship support services  Remaining Challenges  How we compare internationally The Department of Social Policy and Social Work
  • 3. Policy Drivers 1990’s Lone parents a concern  Numbers rising fast BUT state expenditure rising even faster  £1.4b (1981) - £4.3b (1990)  Employment rate fell < 40% was 51% 1978  Only 23% rec benefits got child support 1989 (50% 1979)  Social problem & social threat The Department of Social Policy and Social Work
  • 4. Policy Drivers  Demographic Change  Poor Operations (Courts and liable relatives)  Mrs Thatcher & Cross Party Support CSA implemented 1993:  Effect ALL ‘non-resident parents’  Retrospective – overturn all previous agreements The Department of Social Policy and Social Work
  • 5. Original Policy Aims 1993  More men pay & pay more  Efficient, consistent, Administrative solution CSA  Formula  Strong enforcement  Fiscal goals –  £530m benefit savings target  More lone parents to work  Change ‘culture’ of non-compliance  No explicit child well-being aim The Department of Social Policy and Social Work
  • 6. 1993-2008  CSA near collapse – admin chaos  Low rates compliance  Many new Acts  2008 Act return obligation to parents  CSA Toxic brand – CMEC  New CMO service The Department of Social Policy and Social Work
  • 7. The Department of Social Policy and Social Work  4 new principles: Reduce Child poverty Promote Private agreements Cost effective & professional Simple & transparent  CMEC took over CSA 2008  Aim single system by 2013-14  2010 all CM paid kept by all parents with care  Decoupling of CM from public social security 2008 Act
  • 8.  BUT… argue no improvement since 2008  50% children no arrangement1  Only 1 in 5 parents private arrangement 2  38% lone parents got CM (8% rise since 1991)  CSA increases parental conflict  CSA default option  Costly to run 1,2,3. Conservative Coalition elected 2010 The
  • 9.  Green Paper 2011 – change of tone  Parents’ have range of issues  Separation complex and difficult time  Framed within a broader CWB perspective  Some New Legislation:  More holistic: new ‘relationship support’ services.  New ‘model’ of child support service Conservative Coalition The Department of Social Policy and Social Work
  • 10. New Operations Model 2012 The Department of Social Policy and Social Work Primary aim 3rd & voluntary sector work with parents ‘collaborative culture’
  • 11. Nudges - family based agreements If need CMS fees proposed in 2014:  Application Fee: £20 (originally £100)  Collection Charge:  Receiver 4% deducted from CM (originally 7%).  Payer charged additional 20% on top of CM  Enforcement Charges:  £50-£300 depending on action needed Implement fees late 2014 only IF:  New scheme proven to be working well The Department of Social Policy and Social Work
  • 12. Relationship Support Services  Web App  Telephone networks  Training agencies collaborative parenting The Department of Social Policy and Social Work  ‘Help and Support for Separated Families’ programme  2012 - £20m (£14m Innovation Fund)  Innovation Fund: test new projects help parents collaborate.
  • 13. How Compare Internationally?  Decoupling of CM from Social Security System  All private CM income ignored in social assistance  Comparison of 5 countries (Skinner et al 2013 – EJSS special issue)  Policy Aims  Advice and support services  Outcomes using vignettes The Department of Social Policy and Social Work
  • 14. Policy aims 5 countries  Identify aims of CM policy not easy:  Often implicit  Overlap with family law provisions and care  Overlap with social security systems … Difficult know where CM policy begins and ends for example child poverty reduction an aim for both systems.  Common encourage private financial responsibility The Department of Social Policy and Social Work
  • 15. Advice and Support Services  Finland and Iceland – municipalities offer counselling/mediation  US-Wisconsin county courts offer mediation  UK- Statutory CM Options information  NL - Court based  Limited evidence: no info aims, access and take-up, effectiveness, charging or experiences of using them. The Department of Social Policy and Social Work
  • 16. How much do CM schemes set?  Compare official amounts set (not same as amount paid).  Purchasing power parties US dollars  Main purpose understand how works  Vignette one: Ms Mary and Mr Paul, low income, one child 3 months born into lone parent.  3 scenarios of employment.  Vignette two: Mr and Mrs Forest, middle income, two children aged 6 and 9, divorced.  3 scenarios: employment, new child, shared care The Department of Social Policy and Social Work
  • 17. Ms Mary, Lone Parent – 3 scenarios The Department of Social Policy and Social Work 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 Both Unemployed Mr Paul Employed FT Ms Mary Employed PT $PPP Weekly Child Maintenance in $ Purchasing Power Parities Vignette One Ms Mary and Mr Paul Unmarried couple one child aged 3 months UK US Iceland * Finland * Netherlands
  • 18.
  • 19. Challenges: UK policy Policy future perhaps less focus on operations:  Effectiveness relationship support services  Supporting ‘collaborative parenting’  How help parents negotiate agreements.  Fees and effectiveness in encouraging PA  See my paper tomorrow… The Department of Social Policy and Social Work
  • 20. Challenges comparative research  Results 5 country analysis shows need know how amounts set.  But more important understand:  Who pays and how paid - payer can shift in guaranteed schemes at different income levels  How much paid and received - bound up in complex interaction with social security schemes  Hope you take up this challenge 2015 seminars 4 and 5 Poverty and CM: Interaction with Social Assistance Schemes and Problems of Measurement The Department of Social Policy and Social Work
  • 21. References 1. DWP Cm 8130 (2011) Government’s response to the consultation on Strengthening families, promoting parental responsibility: the future of child maintenance’, London: The Stationary Office. 2. DWP (July 2012) Supporting Separated Families: Securing Children’s Future. 3. CMEC (2011) Website ‘Remit’ http://www.childmaintenance.org/en/about/remit.html: accessed 8.8.2011. 4. Skinner, C., Hakovirta, M. and Davidson J. 'A Comparative Analysis of Child Maintenance Schemes in Five Countries' in 'Special Issue: Child Maintenance Schemes In Five Countries', European Journal of Social Security, Vol. 14, No. 4, 2012, 330-348. The Department of Social Policy and Social Work
  • 22. Institutional Operations  July 2012 CMEC abolished taken over by DWP  CSA1 & CSA2 still going (no single system by 2013-14)  New ‘Statutory Child Maintenance Service’ (CMS):  ‘new-new’ service (plus CSA1 and CSA2 cases)  Open all new cases Dec 2013  Aim fully operational 2014  All CSA close 2014-17  All parents through the gateway The Department of Social Policy and Social Work

Editor's Notes

  1. Social problem &amp; social threatConservative Ideology- ‘orgy LP bashing’
  2. RADICAL REFORM Under the child Support Pensions and Social Security act 2000.New simple percentage of net income formula (15% = 1 child ;20% = 2child and 25% 3+ child).Two lower income thresholds – if less than £200 per week pay less.If less than £100 per week – pay flat rate £5.Operationally – this meant a phased approach fro new cases only to come under the new % based formula.New aim child poverty - Child Maintenance Premium (new cases only to begin with) – lone parents could keep first £10 per week of CS IF it was paid.– full disregard if receiving in-work benefits (working tax credit)Automatic application made to CSA if parent with care of children in receipt of Social assistance.If Private case (i.e parent with care was not on social assistance benefits) they need to wait a year after a Court Order in place before can make request to CSA.(Note they would have to have a formal Court Order in place first).Tougher Enforcement – remove driving licence, imprisonment. See skinner and Sumner (2009:47-48) Persistent problems, Finding Solutions, Wolf Legal Publishers, Nijmegen.(New Acts post 1993 produce two distinct case loads CSA1 and CSA 2)
  3. 2010
  4. 1 DWP Cm 8130 (2011) Government’s response to the consultation onStrengthening families, promoting parental responsibility: the future of child maintenance’, London: The Stationary Office.2. DWP (July 2012) Supporting Separated Families: Securing Children’s Future.3. CMEC (2011) Website ‘Remit’http://www.childmaintenance.org/en/about/remit.html: accessed 8.8.2011.
  5. ‘If we can help to ensure that both parents play a role in the upbringing of their children, taking joint responsibility, then we can alleviate the often debilitating after-effects of coping with parental relationship breakdown, including anxiety and depression, increased aggression, hostility and anti-social behaviour.11’ (DWP 2012:10)
  6. The government&apos;s primary aim for child maintenance is to ‘enable the voluntary and community sectors to work with parents to establish a more collaborative culture’.. ‘to work in the early stages’ .. ‘help them with a range of issues not just CM ‘ 11. DWP (July 2012: foreword point 5) Supporting Separated Families: Securing Children’s Future –DWP (July 2012: foreword point 5) Supporting Separated Families: Securing Children’s Future – consultation exercise on case closure, fees, violence and 3 yearly reviews.All parents encouraged and supported to make private agreements in the first instance.To achieve that all parents who seek a ‘statutory CM arrangement’ must now go through a ‘Gateway’ to have a conversation to inform them about private arrangements. This is provided by the Child Maintenance Options Service and they will inform parents about their choices, and the support services available to achieve a private agreement. CMO will signpost parents – (and all enquirers) to community and voluntary sector provision. The state does not provide ‘relationship support services’ but does fund it through a £30m ‘Innovation Fund’ to support provision by the 3rd sector. Government response to the consultation Supporting separated families; securing children’s futures, Nov 2013https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/265174/childrens-futures-consultation-response.pdfForeword :That is why we are seeking to rebalance the system away from the current adversarial model, where child maintenance is, by default, arbitrated by a government agency, to one where separated parents are supported to collaborate in the interests of their children.Collaboration could take the form of parents making their own maintenance arrangements outside the statutory system, or it could simply mean parents using the statutory scheme to calculate the maintenance amount and then arranging payment between them.
  7. Application Fee: £20 (originally £100) as disincentive to use statutory service).If ‘receiving parent’ wants collection 4% deducted from CM (originally 7% as disincentive) (on average CM assessment = £2.34/wk).Cases of self reported concerns over domestic violence-abuse, waiver for application fee but not for collection fee.Collection Charge: If ‘receiving parent’ wants collection then 4% deducted from the maintenance paid (originally 7% as disincentive) (on average CM assessment = £2.34/wk).‘Paying parent’ will pay 20% on top of their CM assessment (on average CM assessment = £6.68/wk).https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/265174/childrens-futures-consultation-response.pdf
  8. 15 August 2013: ‘Help and support for separated families’ (HSSF) mark is designed to help parents navigate the range of support available to them and choose, with confidence, a high-quality outlet to help. The mark is awarded following an independent assessment of organisations to show they meet a strict set of standards for promoting parents working together after relationship breakdown. Organisations need to show that they actively work to help parents collaborate constructively to arrange things for their children.A YouGov poll commissioned by the DWP reveals that more than half of parents (52%) find it hard to access the help and support they need when they separate. In response, the government has launched an easy-to-use web app called &quot;Sorting out Separation&quot;.This programme includes the following elements (DWP Nov 2013 –gov response to consultation):a. Sorting out Separation, a web application launched in November 2012, that provides diagnosis, information and signposting to relevant support services.b. The Help and Support for Separated Families Mark, launched in March 2013. This is being awarded to organisations who can demonstrate that they promote collaboration and reduce conflict in the best interests of children. The Mark will help parents understand which organisations they can trust to help them make their own arrangements. c. Training for agents of existing telephone help lines working with separated families, so different providers can deliver a consistent message about the benefits of working together. The first round of this fund, announced in April 2013 made awards to seven organisations to give around 280,000 separated families creative and targeted help to collaborate in their children’s interests. The second round of bidding opened in July 2013, with awards expected to be announced later in the year. This second round includes a separate procurement lot for projects aimed specifically at working with long-term separated parents. The Government has decided not to go ahead with a new network of regional co-ordinators as, following further consideration, it was decided this resource would be better focused in other areas of Help and Support for Separated Families. However, we are exploring the most efficient and cost-effective way of achieving consistent co-ordination at local level working through existing government infrastructure??? Who might that be?
  9. Finland and Iceland – municipalities offer counselling/mediation help parents PAUS-Wisconsin county courts offer mediation help with CM and custody.UK- Statutory CM Options an information service (not give advice, nor mediation).Limited evidence: no info on aims, access and take-up, effectiveness, charging or experiences of using them.
  10. Compare official amounts set (not same as amount paid). Purchasing power parties US dollarsMain purpose understand how works, not amounts per se. Vignette one: Ms Mary and Mr Paul – low income, one child 3 months, born into lone parent. 3 scenarios of employment.Vignette two: Mr and Mrs Forest, middle income, two children aged 6 and 9, divorced. 3 scenarios: employment, new child, shared care
  11. Want mimic effect employment changes over time. Star in chart highlights countries with Guaranteed CM scheme. DEFINTION?: Paid by state in advance of any payment made by NRP.So begin with both unemployed and in receipt of whatever benefits they are entitled to as a lone parent family and as a single man. Scenario two MR Paul finds full time employment –but earning below poverty threshold at 60% national median income.Scenarion 3: Mr Paul still employed fulltime, Ms Mary works part-time, typical median income for woman.S1: Netherlands – both parents income below social assistance threshold and assessed at no capacity to pay – CM set at 0.Finland and Iceland : this is the amount set under guaranteed CM as assumed Mr Paul no capacity to pay – they set the highest amounts, but similar to US.NB in Finland Mr Paul not pay this- in Iceland he would be expected to pay minimum amount, but the state would advance this to Ms Mary and claim back from Mr Paul. In US he does pay this. UK sets lowest amount paid by Mr Paul.S2: Iceland no change. Finland – amount not changed but now MR Paul is expected to pay this amount. US highest amount – UK now second highest amount.S3: Ms Marys part time earnings no effect – except in Finland – reduces amount expected by half approx.
  12. Want explore situation where parents’ employment STATUS is equal (but earnings may not be due to gender effects of pay gap). Both assumed to earn typical median earnigns for full-time workers male and female. Want understand where NRP new child and shared care. Netherlands judicial decision making – no typical amount set for parents – so excluded from analysis.S1: US and UK highest amounts set. Parents equal employment status still produces a positive maintenance assessment all countries! Iceland: MR Forest expected pay minimum amount his income regarded as low. Finland: both parents income too high for guaranteed scheme – encouraged come PA using the guidelines – and that is what the amount is here. Can register this PA. S2: new child only effects amount in UK – slight reduction. Complex interaction with income thresholds and at this level no effect – but in principle it would at different income levels costs of new child taken into account. S3: Equal shared care has biggest effect – UK obligation eliminated. US significant reduction. Iceland no change as there is no change in ‘residency status of children’ .Finland some effect but no universal rules apply and no legal basis of eliminating CM obligation in equal shared care.
  13. Future challenges focused less on operationsRelationship support Mixed type of provider, range, mode of delivery (online &amp; face-to-face), adequacy, accessibility, sustainability, quality issues, and creating cultural change in help seeking behaviours. Supporting individual parents to ‘negotiate effectively’ over making a private CM arrangement:How, who, when, how often, at what cost? Supporting ‘collaborative parenting’:How join up with family court services and resolution of contact disputes
  14. October 2011 bring CMEC back to Dept. of Work &amp; Pensions (DWP). (Part of wider move as Coalition Government want greater ministerial accountability for public bodies).