Annex
New Child Support Scheme: Progress Report
The Secretary of State for Work and Pensions
(Alan Johnson)
The new arrangements for child support came into
operation for new cases and some linked old scheme cases from
3rd March 2003. Despite recent progress, some significant problems
remain with the new computer and telephony systems. These continue
to slow progress on business recovery. The Department continues
to retain substantial payments from EDS. The payment each year
is determined by the contract and is linked to service levels
and to the degree of functionality delivered. Between 27 January
2003 and 16 January 2005, the Agency retained £13.3 million
of payments otherwise due to EDS.
This report is intended to form part of the Department's
response to the Work and Pensions Select Committee report into
the performance of the Child Support Agency. It therefore includes
information up to the end of February 2005 (my last progress report
covered the quarter ending September 2004). During this period
the Agency's performance has continued to improve. More families
continue to benefit from the new scheme - a further 16,600 families
have received child maintenance premium. The quarter ending December
2004 produced the highest quarterly total since the new arrangements
were introduced and this upward trend is continuing. It brings
the total number of beneficiaries to almost 50,000. Similarly,
the number of first payments of maintenance received through the
Agency's collection service during the quarter ending December
was the highest achieved so far.
The number of cases cleared during the period from
October to February (both calculations and closures) was over
72,000, bringing the overall total of clearances to around 310,000.
The position fell back somewhat in the run up to Christmas, however
this was not unexpected and the underlying position is recovering
as we move through the next quarter. During both October and
November, the monthly volume of clearances grew faster than at
any other point in the year.
Based on regular monthly sampling the current level
of accuracy (to the nearest penny) is estimated at around 78%
against a target of 90%. This is lower than the preceding quarter.
The Agency is taking urgent action to correct this trend but it
is now clear that the end of year target is unlikely to be achieved.
Regular monthly sampling will continue to be used to monitor accuracy
levels and determine the end of year position.
As a result of improvements with the Agency's management
information systems, case compliance performance will now be reported
on a 'Rolling-Last-Quarter' basis. Previously published estimates
of case compliance in the new scheme have been measured on a monthly
basis. This is not consistent with either the definition used
to measure old scheme compliance, or the basis on which the new
scheme target was set. Both relied on a Rolling Last Quarter
measure. Reporting performance using a Rolling Last Quarter basis
provides a more accurate reflection of performance and gives a
direct comparison between old and new scheme performance.
This change in reporting has resulted in an uplift
in case compliance performance by around 8 percentage points.
At the end of February case compliance stood at 65% against a
target of 78%. Cash compliance at end of February stood at 58%
against a target of 75%. Focus on improving compliance continues,
with activities targeted on core operational service teams together
with the creation of the Agency's Enforcement Directorate. Early
indications show that for cases newly calculated in September
and October 2004, case compliance in February 2005 has stabilised
at around 75%.
Although the rate at which work-on-hand is increasing
has slowed down, clearances are still less than intake. An Agency
Business Transformation Programme is being developed, which will
contain short-term tactical initiatives and also places significant
emphasis on ensuring medium to long-term sustained recovery.
The Agency has made progress in investigating the
anomalies in its management information. Some over counting of
cases has been identified, which has reduced intake reported since
March 2003 by 34,000 cases. Indications are that there is potential
for further reductions in intake of around 12,000 cases and an
understatement of around 17,000 clearances. Overall this is likely
to equate to a downward revision in the work on hand of 63,000
cases. Some of these cases are still within the system and some
operational intervention will be required. Work is continuing
to identify and examine the full range of issues and apply necessary
remedies. The revised data in the tables below is the Agency's
best current estimate.
Summary of Agency Performance to February 2005
Table 1 - Average Weekly Payments
The method by which these figures are calculated
has been changed to include, in the calculation, those collections
of child maintenance made (on behalf of the Secretary of State)
in those cases in which the parent with care is on benefit.
| | |
|
| 1 Qualifying Child
| 2 Qualifying Children
| 3+ QualifyingChildren
|
| Average Weekly Payment1
| £28 | £41
| £44 |
| | |
|
Table 2 - Agency Quarterly Performance
| Quarter 1
Mar - Jun 2003
| Quarter 2
Jul - Sep 2003
| Quarter 3
Oct - Dec 2003
| Quarter 4
Jan - Mar 2004
| Quarter 1 Apr - Jun 2004
| Quarter 2
Jul - Sep 2004
| Quarter 3
Oct - Dec 2004
| Jan - Feb 2005 | Scheme to Feb 2005
|
| Applications received |
73,582 |
78,982
|
85,306 |
83,652
|
83,094 |
73,534
| 69,395 | 46,718
| 594,263 |
| Double counting of intake 2
| - 1,171 | - 5,313
| - 6,997 | - 6,027
| - 5,211 | - 3,316
| - 3,406 | - 2,395
| - 33,836 |
| Applications received (adjusted) 2
| 72,411 | 73,669
| 78,309 | 77,625
| 77,883 | 70,218
| 65,989 | 44,323
| 560,427 |
| Applications cleared 3
of which:
| 12,648 | 38,583
| 49,453 | 51,876
| 45,097 | 40,465 3
| 39,645 | 32,732
| 310,499 |
| Maintenance Calculations
| 6,671 | 23,857
| 29,672 | 31,229
| 25,657 | 23,526 3
| 23,816 | 18,866
| 183,294 |
| Closures 4 |
5,977 | 14,726
| 19,781 | 20,647
| 19,440 | 16,939 3
| 15,829 | 13,866
| 127,205 |
| First payments made through the Agency
| 461 | 5,164
| 11,473 | 14,017
| 14,974 | 15,098
| 18,119 | 9,992
| 89,298 |
| First Child Maintenance Premium payments made 6
| 77 | 3,314
| 6,173 | 7,484
| 8,070 | 8,055
| 10,300 | 6,326
| 49,799 |
Table 3 - Agency Monthly Performance
| October 2004
| November 2004
| December 2004
| Quarter 3
Oct - Dec 2004
| January 2005
| February 2005
| Jan - Feb 2005
|
| Applications received
| 24,653 | 24,868
| 19,874 | 69,395
| 22,536 | 24,182
| 46,718 |
| Double counting of intake 2
| 1,412 | 1,108
| 886 | 3,406
| 1,153 | 1,242
| 2,395 |
| Applications received (adjusted) 2
| 23,241 | 23,760
| 18,988 | 65,989
| 21,383 | 22,940
| 44,323 |
| Applications cleared 3
of which:
| 14,171 | 15,307
| 10,167 | 39,645
| 14,710 | 18,022
| 32,732 |
| Maintenance Calculations
| 8,317 | 8,648
| 6,851 | 23,816
| 8,783 | 10,083
| 18,866 |
| Closures 4
| 5,854 | 6,659
| 3,316 | 15,829
| 5,927 | 7,9395
| 13,866 |
| First payments made through the Agency
| 5,681 | 6,278
| 6,160 | 18,119
| 4,736 | 5,256
| 9,992 |
| First Child Maintenance Premium payments made 6
| 3,139 | 3,685
| 3,476 | 10,300
| 3,098 | 3,228
| 6,326 |
Table 4 - Agency Compliance Performance
| Apr 2004
| May 2004
| June 2004
| July 2004
| Aug 2004
| Sept 2004
| Oct 2004
| Nov 2004
| Dec 2004
| Jan 2004
| Feb 2004
|
| Cash Compliance [3 month rolling average] 7
| 41% | 44%
| 49% | 50%
| 51% | 52%
| 53% | 55%
| 55% | 58%
| 58% |
| Case Compliance [rolling last quarter basis]
| 55% | 57%
| 59% | 61%
| 61% | 62%
| 62% | 63%
| 64% | 65%
| 65% |
Notes:
1. Average weekly child support maintenance payments
to parents with care are shown in the table. The method by which
these figures are calculated has been changed to include, in the
calculation, those collections of child maintenance made (on behalf
of the Secretary of State) in those cases in which the parent
with care is on benefit. Figures are for February 2005 only and
are calculated as the total amount received and allocated divided
by the number of cases.
2. Based upon our best information on the extent
of the double-counting of applications that has taken place and
emerging findings from the Management Information Improvement
Project. These figures may be subject to change.
3. Figures from Quarter 4 2003/04 onwards and Scheme
to Date figures include clerical cases (new scheme cases unable
to be progressed on the new system). Quarter 2 2004/05 figures
also incorporate some adjustments to take account of a reconciliation
of clerical cases. The clerical case position is as follows:
|
| Scheme to date June 2004
| Scheme to date September 2004
| Scheme to date December 2004
| Scheme to date February 2005
|
| Applications cleared
| 1,345
| 2,130
| 2,340
| 3,063
|
| Maintenance Calculations
| 1,134
| 1,937
| 2,069
| 2,673
|
| Closures
| 211
| 193
| 271
| 390
|
4. Closures: Applications close for a variety of
reasons. The main reasons are that the parent with care withdraws
the application, perhaps due to reconciliation, or having agreed
private arrangements with the non-resident parent.
5. Closures for February include 1,000 un-progessable
cases that have been deleted from the IT system.
6. Figures for Child Maintenance Premium payments
include an estimate of the number of parents who receive the premium
by way of a disregard to their Income Support/income-based Jobseekers
Allowance.
7. Cash compliance is measured on a three-month rolling
average basis, as this best illustrates performance. Case compliance
is measured on a rolling-last quarter basis (in line with old
scheme reporting).
8. A proportion of cases that have a maintenance
calculation in place may already be receiving payment directly,
but will not be reflected in the figures shown above.
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