According to the Child Maintenance and Enforcement Commission (CMEC), the cost of administering a typical Child Support Agency (CSA) case can reach around £25,000 over 18 years. More difficult cases can cost around £40,000, or more.
The case costings are based on two real CSA cases where sustained action was required to ensure compliance. The Government’s proposals for the reform of child maintenance are designed to eliminate from the system cases where parents have the potential to collaborate.
Case 1 was a ‘typical’ case, where the non-resident parent (NRP) paid just under £3,000 in maintenance over 19 months. More than 50 hours staff time was devoted to managing the case, including time spent on the telephone to both parents, tracing and speaking to the NRP’s employer, the calculation of four separate maintenance assessments reflecting changes in his financial circumstances and dealing with a complaint by the parent with care through their Member of Parliament.
Additional costs were incurred through the setting up of a Deduction from Earnings Order and instructing bailiffs when the case fell into arrears. The estimated cost to the CSA over this period was approximately £2,000. Over 18 years, a similar typical case would cost the taxpayer up to around £25,000.
Case 2 was a ‘difficult’ case involving multiple legal actions including liability Orders and County Court judgements, two Charging Orders on the NRPs main home and, ultimately, an order for its sale – at which point the NRP volunteered a lump sum payment. The latter action alone cost the CSA almost £10,000. Total staff time and enforcement costs over 18 years – excluding external solicitor’s fees – amounted to around £40,000.
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