8. Arrears

8.1. Why are arrears so commonplace? (2001-10-28)

Because the agency takes so long to complete an assessments. All that time the arrears are building up - - from when the Maintenance Enquiry Form was received or from 2, 4, 6 etc. years after then.

Also, because the agency sometimes reviews the case and decides that the assessment should have been different and the NRP (unknown to the NRP) has been paying too little for some time.

8.2. Does the agency demand all the arrears? (2001-10-31)

If the agency has caused a delay of more than 6 months then their policy is to demand only the last 6 months' worth of initial arrears providing the AP promises to pay both those and the regular payments.

They almost always forget to explain that this is their policy and accidentally demand the whole lot.

This policy was initiated by a White Paper entitled "Improving Child Support", January 1995, ISBN 0-10- 127452-1. We do not know what document that is now enshrined in or if the whole of the White Paper proposals were adopted.

Paraphrasing, paragraph 6.4 of the White Paper says "Some APs have been faced with very high bills for initial arrears. Where there has been significant delay by the agency, we will consider not enforcing more than 6 months' arrears, provided the AP agrees to pay the current assessment and those arrears. We will compensate the PWC for any actual financial loss due to un-enforced arrears after the AP has shown commitment by paying as agreed for more than a year. If the AP defaults, all the arrears will be sought."

At least some of this White Paper became working practice. On 22 July 1998 Baroness Hollis said to a Select Committee: "at the moment the Agency does have the practice that, where the arrears were largely due to the inability of the CSA to process with due speed and the money is owed to the Treasury rather than to the parent with care directly, we seek to collect six months' worth of the arrears and not more than that provided he then goes on to pay regularly."

And, from Hansard for 16 November 1998 (column 394):

"We can today announce that we are extending the temporary scheme introduced by the previous Government limiting the collection of arrears to six months as long as the Non Resident Parent is fully compliant for a period of 12 months.

Additionally, from Monday 30 November, we will also be extending the coverage of this scheme to include cases where arrears have arisen due to delays in reviews carried out on change of circumstance and in the reviews carried out every two years as required by Section 16 of the Child Support Act 1991.

The extension of this scheme is another indication of the continuing difficulties faced by the Child Support Agency. The complexity of the current formula, continues to limit the Agency's ability to provide the kind of service the public has the right to expect. Our proposals for a new, simple, straightforward and transparent service were set out in the Green Paper 'CHILDREN FIRST: a new approach to child support' published in July this year."

9. Payments

9.1. Who does the AP pay? (1999-07-28)

If the PWC is in receipt of a means-tested benefit (Income Support, Family Credit etc.) then the AP must pay via the CSA. Otherwise the AP can pay the PWC directly.

9.2. How does the AP pay? (1999-07-28)

The CSA decides which is appropriate [Child Support (Collection and Enforcement Regulations) 3 (1):
* Standing Order or equivalent
* Direct Debit or equivalent
* Cheque or postal order
* Cash

There is no penalty for refusing to open a bank account.

In practice the agency seems to always request payment by cash by Girobank transfer but does not argue if a different method is used. They're probably just pleased to get the money, regardless of how it arrives.

9.3. What about Direct Debits? (1999-07-28)

Best avoided. With a DD your bank account is at the mercy of the agency's incompetence.

DDs are guaranteed but you just try sorting it out when the Agency empties your account on a Friday afternoon.

If you have to use DD then be aware of the rules. A DD operator must give you 14 days notice (starting from the day after posting) of the time and amount of payments they will take.

If they do not do this then your own bank must, if you ask, make an immediate refund. They don't like to but they must.

Barclays customers should complain about the agency, quoting their Direct Debit Originators number (anyone know what this is?) to Electronic Banking, Octagon House, Gadbrook Park, Northwich CW9 7RB.

If your bank don't do what they should you can complain to APACS.

If the CSA got enough DDs wrong (no problem there!) and enough customers insisted on immediate refunds from their banks then the banks could get together and stop the CSA being a DD operator. Now wouldn't that be nice?

9.4. When does the NRP pay? (2001-10-31)

The CSA decides when payments should be made [Child Support (Collection and Enforcement Regulations) 4. They should take account of the NRP's circumstances, the NRP's preferences, the time taken for, say, cheques to clear and other relevant matters.

9.5. How can I check that the CSA has paid what it has received? (2001-10-28)

Unless the Non-Resident Parent and Parent with Care get together and compare notes there's no way. The CSA does not make accounts available.

They have been known not to pass on payments and thus retain quite large sums.

9.6. What does the PWC get? (2001-11-30)

The PWC should receive the maintenance in full, a couple of weeks after it has been paid.

If the PWC is getting Income Support or Job Seeker's Allowance their benefit will be reduced by the amount of maintenance. Where the maintenance exceeds the benefit the benefit will stop. The PWC will be no better off unless the maintenance is more than the means-tested benefit(s).

If the PWC is getting Working Families Tax Credit, this benefit will be paid unchanged. It is not affected at all by the amount of child support.

PWCs on benefits, who are no better off, will actually be disadvantaged because they now have no state guaranteed income. If the NRP or agency does not pay they will go short. They become reliant on the agency doing its fund transfer and enforcement jobs properly.

9.7. What does the government get? (2001-10-31)

The government gets nothing but does save up to the full amount of the PWC's means-tested benefits, see "What does the PWC get?".

9.8. What happens if maintenance is more than the PWC's benefits? (2001-10-31)

The PWC loses benefits and is in a worse position.

If the maintenance is a little more than benefits then the PWC will be worse off as they will lose free prescriptions, school meals, dental care etc.

The PWC and the child(ren) are at the mercy of the NRP's ability and willingness to pay as well as the CSA's ability to pass on payments received and enforce missing payments.

If the NRP is unable to pay then the PWC will not be eligible for benefits again until the "waiting period" has passed.

9.9. What happens if maintenance is less than the PWC's Income Support? (1999-07-28)

The PWC and the child(ren) are better off. They will receive up to the "disregard" amount of the maintenance without losing any IS. This may be about UKP 15.

9.10. What is the Child Maintenance Bonus? (1999-07-28)

See "What is the PWC's bonus scheme?"

10. Overpayments (2001-10-31)

The relevant legislation is The Child Support (Arrears, Interest and Adjustment of Maintenance Assessments) Regulations, 1992.

When a overpayment arises the CS Agency may:
* use it to reduce arrears
* reduce the current assessment

When the CS Agency is considering reducing the current assessment it must take account of:
* The circumstances of NRP and PWC
* The sizes of the overpayment and current assessment
* How long it would take to correct the overpayment

If it would take more than 2 years to correct the overpayment they should repay the overpayment. This limit seems to be set by working practice rather than legislation.