Select Committee on Delegated Powers and Regulatory Reform Fourth Report


APPENDIX 8: CHILD MAINTENANCE AND OTHER PAYMENTS BILL — GOVERNMENT RESPONSE


Letter to the Chairman from Lord Mackenzie of Luton, Parliamentary Under-Secretary of State, Department for Work and Pensions

1.  I am grateful for the detailed consideration the Committee has given to the Child Maintenance and Other Payments Bill in your Third Report for the 2007-2008 Parliamentary Session. I am pleased that the Committee is content with the overall approach we have taken in the Bill.

2.  With respect to the Committee's specific recommendations, the Departments position is as follows. I will deal with each of these recommendations in turn below.

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

3.  In paragraphs 4 and 5 of the report, the Committee draws attention to the fact that the objectives of the Commission are made by reference to children who live apart from one or both parents, and that there is a regulation making power which allows the Secretary of State to set out when a child is to be considered as living apart from a parent or not. The Committee raises a concern that this power could widen the objectives of the Commission. We do not consider this to be the case. The regulation making power can only be used to set out the circumstances that constitute "living apart" for the purposes of child maintenance. It does not change the meaning of child or parent. The power to define when a child is living apart from a parent is only there because the stand-alone provisions in the Bill are not covered by the provisions relating to shared care and special cases provisions which currently set out the rules about when a child is or is not living apart from a parent for the purposes of the Child Support Act 1991. We anticipate that this power will be used to ensure that the free-standing provisions in the Bill and the provisions under the 1991 Act interact sensibly. The power to make provision for special cases setting out where a child is or is not living with a parent for the purposes of the statutory scheme is contained in section 42 of the 1991 Act. For new scheme cases (and, by extension, the amended statutory scheme under the Bill), this power is subject to negative procedure. Given that it is likely that these powers will be exercised together in future, the department considers that negative procedure for the Bill provision is also appropriate.

4.  The Committee also raises a concern over the power to add to the Commission's functions as necessary for achieving the objectives, which it considered to be a wide power in the light of the view that the power to define living apart might widen the scope of the objectives. As set out above, we do not consider that this widens the scope. In addition, we would point out that it is not uncommon to include such a provision. Recent examples of legislation where functions may be added include:

  • The Gangmasters Licensing Act 2004 contains a provision enabling the Secretary of State to confer functions in regulations on the Gangmasters Licensing Authority (see section 1(2)(f)). This is a wider provision as it is not limited in any way (e.g. to objectives, etc) and is subject to negative procedure.
  • Section 116(2) of the Education and Inspections Act 2006 allows the Secretary of State to assign further functions to the Chief Inspector in connection with performance of functions. This power is not subject to any form of parliamentary scrutiny.

5.  None of these powers is subject to affirmative procedure. We therefore consider that negative procedure is appropriate here.

Fees - clause 6

6.  In paragraph 6 of its report, the Committee suggests that clause 6(2) of the Bill should be aligned with section 47(2) of the 1991 Child Support Act, to specify who may be liable to pay any fees charged by the Commission. The Committee also suggests that the Bill could contain an additional power, subject to affirmative resolution, allowing further categories of people to be added to the list of those liable to fees.

7.  We have considered the Committee's suggestion but would prefer not to make this amendment. Firstly, we do not consider such an amendment to be necessary. All regulations which set out details of a charging regime, including those under clause 6(2), are subject to affirmative resolution, so there is already a requirement for Parliament to approve any legislation which creates a category of persons liable to pay fees under clause 6 of the Bill. Secondly, it may lead to undue complication - for example, the terms "non-resident parent" and "person with care" are applicable where there is a current maintenance calculation. If the Commission were imposing a charge in a case where it was collecting a debt but there was no current assessment, then different terms such as "liable person" would need to be used.

8.  The new provision is drawn more broadly than Section 47 of the 1991 Act and is intentionally more flexible, as it needs to provide for a wider range of circumstances and achieve more objectives than the charging provision in the 1991 Act.

9.  We do not expect fees to be introduced in any form immediately, and believe that the Commission should be allowed to take a key role in setting the details of a charging regime, to help achieve its objectives. This includes specifying who is liable to pay any fees. The details will be subject to Ministerial agreement and Parliamentary approval. It is for this reason that this level of detail has not been included in the Bill.

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

10.  The Committee recommends, in paragraph 8 of its report, that the first exercise of the power in new section 39O(4) should be subject to the affirmative procedure. We accept this recommendation. I will be tabling an amendment to change the procedure from negative to affirmative in the first instance. I regret that I am unable to include a draft of this amendment with this letter.

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

11.  In paragraph 9 of its report, the Committee expresses concern that the person with care's consent to the sale of the debt is not on the face of the Bill, and recommends that a limitation by reference to such permission should appear on the face of the Bill unless further justification is provided. We are accepting this recommendation. I will table an amendment placing the requirement that the parent with care's concern is sought on the face of the Bill. I regret that I am unable to include a draft of this amendment with this letter. It is intended that the amendment will be tabled at Report Stage.

12.  In paragraph 10, the Committee expresses concern that the power in section 49A(4) (b) might be used to prevent a debt purchaser from recovering the debt.

13.  We believe that in certain circumstances, the Commission should be able to prevent the collection of debt by the purchaser. We believe that this could be necessary if in the Commission's view the safety of the person with care or the welfare of relevant child(ren) was put at risk by the actions of the purchaser. This might occur, for example, where the purchaser's efforts to recover the debt resulted in threats to the person with care or child.

14.  If a company were to purchase debt from the Commission it would do so in the knowledge that the Commission would be able to prevent that debt being recovered. We would expect any contract for sale to make provision for that possibility.

15.  The regulations made under this power will provide protection for the person with care and the child, by ensuring that the Commission retains some authority over transferred debts.

Pilot schemes - clause 38

16.  In paragraph 11 of its report, the Committee recommended that affirmative procedure is appropriate for the introduction of pilot schemes. We accept this recommendation. I will table an amendment to provide for any regulations which, by virtue of the new section 51A (to be inserted by clause 38), have effect for a limited period to be subject to the affirmative procedure. I regret that I am unable to include a draft of this amendment with this letter.

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

17.  In paragraph 12 of its report, the Committee recommends that the regulations prescribing the conditions for entitlement to a lump sum payment for mesothelioma in clause 44 be made subject to the affirmative procedure in the first instance. We accept this recommendation. I will table an amendment changing the regulation making procedure from negative to affirmative in the first instance. I regret that I am unable to include a draft of this amendment with this letter.

Conclusion

18.  I trust that this letter has clarified the intentions behind the provisions which the Committee has highlighted, and that the Committee is reassured by the greater detail which I can here provide.

19.  It may interest the Committee to know that we intend to table a number of other Government amendments at Committee stage. I enclose a brief summary of these amendments alongside this letter [Not printed]. I would also, of course, be happy to discuss the amendments with the Committee.

20.  I have provided copies of this letter to Lord Skelmersdale, Lord Kirkwood of Kirkhope, and other peers interested in the Bill, and am placing a copy in the Libraries of both Houses.

January 2008


 
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