A report that discusses the problems experienced in the child maintenance system since the establishment of the Child Support Agency in 1993. It covers the changes in legislation; the introduction of a 'twin-track' approach with the three year Operational Improvement Plan and the establishment of the Child Maintenance and Enforcement Commission.

Plans by the Child Maintenance and Enforcement Commission to reduce its spending are high risk. There is already a £44 million shortfall in the £161 million reduction originally expected by 2014-15. The Commission is reliant on raising £71 million in fee income from parents as part of its planned savings. These estimates are very uncertain, increasing the risk that additional cuts might be needed late on in the Spending Review that could have an adverse effect on services. The existing child maintenance schemes were problematic from the start and large backlogs of work built up. Efficiency has improved since 2006 and the cost of administering child maintenance has reduced. There are, however, strong indications that costs remain high and questions remain about the relative efficiency of the Commission. The Commission does not monitor staff productivity adequately and operated with duplicate management, finance and HR functions in 2010-11 because it retained the former Child Support Agency as a separate division. The Commission has 70 offices, a quite different arrangement from the head office and six processing centres originally planned by the Child Support Agency. The planned cost reductions rely heavily on the introduction of a new child maintenance scheme and associated IT system. Yet IT costs have increased and the Commission risks repeating some of the mistakes made on the earlier child maintenance schemes. The estimates for fee income include assumptions that the NAO cannot substantiate. There is no contingency plan if forecast income for the last year of the Spending Review in 2014-15 proves optimistic

The Child Maintenance and Enforcement Commission was abolished on 31 July 2012 and its responsibilities returned to the Department for Work and Pensions

Around half of all children in the UK from separated families are being brought up in poverty. In 2010-11 the Child Maintenance and Enforcement Commission collected and transferred £1.1 billion to parents caring for more than 880,000 children. Nevertheless significant, all too familiar and recurring challenges remain: parents are frustrated with the standard of support received from the Commission. Maintenance payments totalling some £3.7 billion are outstanding, but the Commission estimates that only £1 billion of this is collectable; and costs remain high. The Commission also faces further significant challenges in introducing its new child maintenance scheme. In particular, it will need to respond to substantial cost reductions and successfully implement a new system of charging fees to parents who choose to use the Commission's services. The Commission needs to deliver acceptable standards of service at a reasonable cost. The new child maintenance scheme should improve efficiency, but further changes are needed to streamline existing processes. The Commission has to deliver cost reductions of £117 million by 2014-15 and its plans are currently £16 million short of this target. Its cost reduction plans depend in part on a new IT system which is already late. To meet the current timetable critical testing will have to be undertaken in parallel with development work, mirroring poor practices that have contributed to the failure of a number of government IT projects. Each month of delay will increase the Commission's costs by at least £3 million and may delay planned income from fees.

Dated May 2012. On cover and title page: Administered by the CSA division of the Commission

Dated December 2012. The Commission was abolished on 31 July 2012, but these accounts will continue to be published by the Department for Work and Pension until the two existing schemes are replaced