Select Committee on Delegated Powers and Regulatory Reform Third Report


Third Report


Child Maintenance and Other Payments Bill

Introduction

1.  Parts 1 to 3 of this bill are concerned with child support maintenance: the bill establishes a Child Maintenance and Enforcement Commission to take over from the Child Support Agency the functions of calculating and enforcing the payment of child support maintenance under the Child Support Act 1991 ("the 1991 Act") (Part 1); it also transfers those functions to the Commission (Part 2), and confers additional powers of enforcement on the Commission and amends the rules governing the calculation of child support (Part 3). Part 4 is unrelated: it provides for lump sum payments to those who suffer, or the dependants of those who before their death had suffered, from diffuse mesothelioma; and it provides for the recovery of amounts representing such payments, and other payments made to sufferers of asbestos-related diseases or their dependants, from certain compensation payments they receive in respect of such diseases.

2.  The Department for Work and Pensions (DWP) has prepared a memorandum for the Committee explaining the delegated powers conferred, or amplified, by the bill, printed at Appendix 1.

3.  We wish to comment on the following provisions.

Objectives and functions of the Commission — clauses 3(2) and 11(2)

4.  The main objective of the new Commission is described in clause 2 by reference to 'children who live apart from one or both of their parents', and two of the Commission's principal duties (imposed by clauses 4 and 5) are expressed in relation to such children. Moreover, the Secretary of State has power, by negative regulations under clause 3(2), to confer functions on the Commission in addition to those imposed or transferred by the bill, where he thinks it necessary or expedient to do so in relation to any of the Commission's objectives. This is a wide power whose scope is defined only by the Commission's objectives; and its 'main objective' is itself susceptible to being supplemented by regulations under clause 11. If the bill cannot itself limit the range of additional functions which might be conferred by secondary legislation, we consider that the power under clause 3(2) should be subject to affirmative resolution.

DEFINITION OF "CHILD LIVING APART FROM A PARENT" — CLAUSE 11(2)

5.  Clause 11(2) enables the Secretary of State, again by negative regulations, to make provision about when a child is, or is not, to be regarded for any purpose of Part 1 as living apart from a parent. The categories of child to which the Commission's main objective applies can therefore be adjusted by regulations. In paragraphs 34 and 35 of its memorandum, the department explains that it expects the power to be used for 'complex cases' (such as children at boarding school, or with multiple residences) and that the regulations will tend to contain technical details. But it is not clear how the notion of 'a child living apart…' is intended to interact with the notion of a 'qualifying child' for whom child support arrangements may be made under the 1991 Act, where that and the related expressions 'non-resident parent' and 'person with care' are all defined in section 3 of the Act itself, with the power to make regulations confined to the margins of those definitions. While it will undoubtedly be expedient to provide in regulations for less common circumstances and for cases of some complexity, we consider that this power feeds through to the core of the Commission's main statutory purpose and so ought to attract the affirmative procedure.

Fees — clause 6

6.  Clause 6 enables the Secretary of State to make regulations about the charging of fees by the Commission. Subsection (2) particularises the matters about which the regulations may make provision, including who is liable to pay. Section 47(2) of the 1991 Act itself limits the power to require payment of such fees to payment by the non-resident parent, the person with care or (in Scotland) the child concerned and we consider that this bill should similarly specify who may be made liable to pay any fee charged, although an affirmative power to add to categories specified in the bill would not be inappropriate.

Monitoring of curfew orders — clause 26 (new section 39O(4))

7.  Clause 26 inserts new sections in the 1991 Act to enable the Commission to apply to a court for a 'curfew order', requiring a person to remain at a specified place for specified periods. Extensive provision about curfew orders is made in the primary legislation itself (new sections 39J to 39Q) , and the powers in new sections 39R and 39S to make supplementary provision in regulations are subject to affirmative procedure on first exercise. New section 39O (page 26 of the bill) provides for the monitoring of compliance with a curfew order, and it is envisaged that the person responsible for monitoring compliance should be able to exercise some discretion in permitting departure from its strict terms. Subsection (4) enables provision to be made in negative procedure regulations about the nature and duration of absences which may be allowed, notwithstanding the curfew order, and the conditions which may be imposed for the purpose.

8.  In paragraph 132 of its memorandum, the department justifies the negative procedure on the ground that the regulations will contain matters of detail. But, in our opinion, a curfew order is a restraint on personal liberty of the same kind as may be imposed under section 37 of the Powers of Criminal Courts (Sentencing) Act 2000, which contains no provision equivalent to that of subsection (4) of new section 39O; so there is no existing provision under the criminal justice regime on which regulations under subsection (4) might be modelled. We consider that, although the balance of provision for curfew orders between the bill and regulations is appropriate, the first exercise of the power in new section 39O(4) should be subject to the affirmative procedure.

Transfer of arrears — clause 32 (new section 49A)

9.  Clause 32 inserts a new section 49A into the 1991 Act to enable the Commission to transfer outstanding child maintenance debt to a third party. New section 49A(3)(a) makes provision for regulations specifying the circumstances in which debt can be transferred. At paragraph 150 of their memorandum, the department says that "it is intended that the permission of the parent with care to whom the debt is ultimately owed will be sought before any debt is sold". We consider that a limitation by reference to such permission should appear on the face of the bill unless the Government can satisfy the House that the power is justified in its present unrestricted terms.

10.  New section 49A(4)(b) further enables the Secretary of State, by regulations subject to the negative procedure, to allow the Commission to prevent the collection of debt by the purchaser in circumstances specified in the regulations. Paragraph 151 of the memorandum explains that the regulations "will provide for a company to cease enforcement action if the safety or welfare of the parent with care or relevant child was at risk." We draw this power to the attention of the House because it could potentially be exercised in a way which might allow the Commission to prevent a third party who had bought outstanding child maintenance debt from collecting that debt.

Pilot schemes — clause 38

11.  Clause 38 introduces a new section 51A into the 1991 Act to enable provision made in any regulations made under that Act to be 'piloted' in particular areas or for particular categories of persons, including those selected on a sampling basis. The provision made here is almost identical to that made by section 28 of the Child Support, Pensions and Social Security Act 2000, save that the power there was narrower, being confined only to the 'piloting' of changes made to the 1991 Act by the 2000 Act. The power in section 28 is exercisable subject to affirmative procedure, and in its memorandum to the Committee in 2000, the department (then DSS) observed that the affirmative procedure was appropriate given the novel nature of the provision which might be made in exercise of the power. The power in section 28 (which is to be repealed by the bill) is not yet in force and so its exercise remains 'novel'. The memorandum on this occasion does not refer to the power conferred by new section 51A, so there is no explanation for the department's apparent change of view. We consider that the affirmative procedure remains appropriate for the introduction of pilot schemes.

Mesothelioma: lump sum payments: conditions of entitlement — clause 44

12.  Clause 43 provides for lump sum payments to be made to a person suffering from diffuse mesothelioma, or to the dependant of such a person who has died. Unlike the provision for lump sum payments in similar cases of asbestosis-related illness or death under the Pneumoconiosis (Workers' Compensation) Act 1979 ("the 1979 Act"), there is no requirement for the sufferer to have established entitlement to industrial injuries disablement benefit in relation to the disease (on the footing that it is work-related). The amounts of the payments under clause 43 are to be prescribed in regulations subject (as under the 1979 Act) to the affirmative procedure. However, while the conditions of entitlement to a payment are provided for in clause 44, it is apparent that, of the three entitlement conditions which apply to sufferers (subsection (1)) and their dependants (subsection (2)), the second and third are in each case entirely dependent on regulations, and the first can be supplemented by regulations under subsections (3)(e) and (4)(d).

13.  Although it is the case (as stated in paragraph 173 of the memorandum) that most regulations to be made under the 1979 Act are subject to negative procedure, the 1979 Act itself sets out the conditions of entitlement as respects both sufferers and dependants, whereas clause 44 leaves much to regulations. In view of the change of balance here between the bill and regulations, we consider that the first exercise of the powers in clause 44 to make regulations should be subject to affirmative resolution.

Consequential provision — clause 54

14.  Clause 54(2)(a) confers a Henry VIII power to amend or repeal primary legislation by negative regulations in consequence of provision in the bill. In paragraph 194 of its memorandum, the department suggests that the negative procedure is appropriate in this instance 'because it reflects the general practice for such clauses', and it cites section 319(2) of the Pensions Act 2004 as a precedent. In fact, the exercise of that power is (by virtue of section 316(2)(q) of that Act) subject to affirmative procedure. Nevertheless, the power here is confined to making consequential amendments - it does not extend to incidental or supplemental amendments in Acts, where the House would usually expect to have the opportunity to approve the provision in question. There is however a precedent for the negative procedure for a similar power in section 27 of the Welfare Reform Act 2007, which we found acceptable (5th Report, Session 2006-07, paragraph 37) and we are satisfied that the negative procedure is not inappropriate in the present case.


Employment Bill [HL]

15.  A memorandum from the Department for Business, Enterprise and Regulatory Reform, printed at Appendix 2, explains the delegated powers in this bill: at clauses 3(2) (new section 207A(6)), 9(1) (new section 19A(6)) and 20. Clause 4 imposes a limit on an existing power. There is nothing in any of the delegations which we wish to draw to the attention of the House.


 
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