18/01/2006

CSA reforms could see private firms chase absent parents

Private debt collectors could be set to take over the collection of money from parents who fail to pay child support.

Plans have emerged regarding efforts to reform the Child Support Agency (CSA), which has been under sustained attack for failing to meet a wide range of criteria.

The CSA is tasked with the responsibility for recovering maintenance from absent parents for the upkeep of their children. The agency has a variety of methods for retrieving the money, including court action and employing bailiffs.

A report published last year stated that the CSA was costing more to run than it recovered from parents, with only £8m reclaimed, in comparison to running costs of around £12m.

Recently Tony Blair admitted that the CSA, established in 1993, was “not suited to the job” and that it was extremely difficult to make the unit cost-effective, due to its combined roles of investigation, adjudication and enforcement.

The government has dismissed claims that the unit will be scrapped, but a review of the CSA is currently being carried out by its chief executive, Stephen Geraghty, with a report due early in 2006. It is thought that in addition to the employment of private debt collectors, that the Revenue and Customs agency could be about to take over the role of collecting maintenance payments, leaving a streamlined CSA with the task of assessing cases.

(CL/GB)

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