Further reform
222. The Committee's study visit to Australia demonstrated
clearly that a CSA type of system can work successfully. The single
most impressive feature which differentiates it from the British
model is the high priority given by Australian CSA staff to establishing
an early relationship with both parents and staying in contact
with them through the frequently problematic early months of each
new case until it settles into a regular pattern of payment.
That approach produces impressive results.
223. Crucially, the Australian Agency does not recoup
money for Central Government. The "pass-through rate"
is 100%. Money from non-resident parents (NRPs) goes wholly and
directly into the pockets of the families with care of the children.
NRPs know that and are encouraged to comply. We have discussed
in this report the possibility of abandoning a fixed Child Support
Premium and passing all child support payments through to the
parent with care.
224. Another distinctive feature is that the Australian
Agency has strong administrative powers via the Australian Tax
Office (the equivalent of the UK's Inland Revenue), which are
hard for NRPs to frustrate, and which enable it to recover most
outstanding child maintenance.
225. However in five years time the likelihood is
that even successful collection models will move towards earlier
family intervention and support, and away from ever more heavy
handed enforcement regimes. The Australians are moving in that
direction with their proposal to create Family Relationship Centres
whilst encouraging voluntary systems of payment. Such a system
would be beneficial in the UK. The proposed network of children's
centres, the mediation services already attached to family courts
and the innovative work on course to reorganise the tribunal system
may offer a foundation for this model, with the tax system as
the principal tool of recovery. It is an approach that may be
more effective in the long run in the UK. Building on the innovative
work already being done to reorganise the tribunal system, to
introduce a pilot mediation service and the proposed network of
Children's Centres backed by an administrative process of recovery
through the tax system provides a model that arguably would be
more child centred and effective for the future.
Urgent action
226. This report poses a series of detailed and searching
questions that Parliament needs to address before the proposed
date for the Easter recess (that is, 24th March 2005).
If the responses do not provide the level and quality of information
necessary to make a judgement as to whether the CSA as currently
constituted can be rescued within a reasonable time then the
Committee recommends that consideration must be given to the option
of winding up the Child Support Agency and plans made for an alternative
set of policies that work, in order to provide financial support
for children in future. We also recommend that our successor Committee
considers alternative policies in the event of the CSA being wound
up.
