CSA - a lesson in how not to run an organisation!
Discussion
I was listening to the radio at lunchtime today and a chap quoted an horrific statistic. Apparently, the CSA collects £1.85 for every £1 spent on administration. He went on to point out that the obvious way to collect the money is via the Inland Revenue. I think I'm inclined to agree! What a complete and utter farce the CSA is. If you ran an organisation as badly as that in the private sector you'd be a laughing stock by all your competitors!!
Apparently the system is far more efficient in Australia
"..He said it collected £1.85 for every pound spent on administration, compared to £8 collected under Australia's "far more efficient" system. "
BBC Article
CSA not suited to job, says Blair
Officials say most compensation payments were for small sums
Tony Blair says the Child Support Agency is "not properly suited" to its job and is being urgently looked at.
It was "extremely difficult" to make the CSA, an investigating, adjudicating and enforcement agency all in one, cost effective, he told the Commons.
Mr Blair was answering Lib Dem leader Charles Kennedy's criticism of the CSA's "appalling track record".
Mr Kennedy said for every £1 it spent on bureaucratic costs, only £1.85 got through to children.
CSA compensation
The Lib Dems also obtained figures which showed the controversial agency had paid more than 35,000 people compensation for maladministration.
CSA figures show that over the past four years more than 40 claimants have received between £10,000 and £50,000.
The Liberal Democrats have renewed calls for the CSA to be taken over by the Revenue and Customs.
Mr Kennedy said the government's failure to tackle the issue was "disgraceful".
In response, Mr Blair said the CSA had been established by the previous government to make sure parents met obligations to their children.
"The truth is the agency is not properly suited to carry out that task," he said.
However, ministers have also said the CSA payments represent only "a tiny percentage" of the cases the agency has to handle.
Government officials insist the vast majority of payouts were for relatively small sums of only around £25.
The Inland Revenue is far better placed to track down those parents determined not to pay their obligations
However, the Liberal Democrats' David Laws said he believed they represented only the "tip of the iceberg" and showed that the CSA was mired in failure.
Mr Laws told BBC Radio Four's Today programme the CSA had "been in chaos for many years and remains in chaos".
He said it collected £1.85 for every pound spent on administration, compared to £8 collected under Australia's "far more efficient" system.
"The Inland Revenue is far better placed to track down those parents determined not to pay their obligations," he said.
Action at source
"It already has information about people in self employment. It already has information about people's incomes.
"It's in arguably a better place to do what they do in other countries, which is have much higher deduction of earnings at source."
But on Today, Work and Pensions Minister Lord Hunt rejected the Liberal Democrats' call.
It's much better that we proceed with our new chief executive, undertake a review and turn it round
Lord Hunt
Work and pensions minister
"I'm sure the Inland Revenue can help with information and we've been talking to them about that.
"But, at the end of the day, we have to deal with the cases that are currently there and going to come on in.
"It's much better that we proceed with our new chief executive, undertake a review and turn it round.
"It is still managing to produce money for children, which of course is what it's all about."
A spokesman for the Department for Work and Pensions added it was addressing the issues the agency faced, and last year the CSA collected "more than £600m" for children.
Since it started in 1993, the CSA has been dogged by controversy. In particular it has suffered computer failures causing severe payment delays.
Last month, it came under fire for failing to answer one-third of telephone calls about its new child maintenance system.
"..He said it collected £1.85 for every pound spent on administration, compared to £8 collected under Australia's "far more efficient" system. "
BBC Article
CSA not suited to job, says Blair
Officials say most compensation payments were for small sums
Tony Blair says the Child Support Agency is "not properly suited" to its job and is being urgently looked at.
It was "extremely difficult" to make the CSA, an investigating, adjudicating and enforcement agency all in one, cost effective, he told the Commons.
Mr Blair was answering Lib Dem leader Charles Kennedy's criticism of the CSA's "appalling track record".
Mr Kennedy said for every £1 it spent on bureaucratic costs, only £1.85 got through to children.
CSA compensation
The Lib Dems also obtained figures which showed the controversial agency had paid more than 35,000 people compensation for maladministration.
CSA figures show that over the past four years more than 40 claimants have received between £10,000 and £50,000.
The Liberal Democrats have renewed calls for the CSA to be taken over by the Revenue and Customs.
Mr Kennedy said the government's failure to tackle the issue was "disgraceful".
In response, Mr Blair said the CSA had been established by the previous government to make sure parents met obligations to their children.
"The truth is the agency is not properly suited to carry out that task," he said.
However, ministers have also said the CSA payments represent only "a tiny percentage" of the cases the agency has to handle.
Government officials insist the vast majority of payouts were for relatively small sums of only around £25.
The Inland Revenue is far better placed to track down those parents determined not to pay their obligations
However, the Liberal Democrats' David Laws said he believed they represented only the "tip of the iceberg" and showed that the CSA was mired in failure.
Mr Laws told BBC Radio Four's Today programme the CSA had "been in chaos for many years and remains in chaos".
He said it collected £1.85 for every pound spent on administration, compared to £8 collected under Australia's "far more efficient" system.
"The Inland Revenue is far better placed to track down those parents determined not to pay their obligations," he said.
Action at source
"It already has information about people in self employment. It already has information about people's incomes.
"It's in arguably a better place to do what they do in other countries, which is have much higher deduction of earnings at source."
But on Today, Work and Pensions Minister Lord Hunt rejected the Liberal Democrats' call.
It's much better that we proceed with our new chief executive, undertake a review and turn it round
Lord Hunt
Work and pensions minister
"I'm sure the Inland Revenue can help with information and we've been talking to them about that.
"But, at the end of the day, we have to deal with the cases that are currently there and going to come on in.
"It's much better that we proceed with our new chief executive, undertake a review and turn it round.
"It is still managing to produce money for children, which of course is what it's all about."
A spokesman for the Department for Work and Pensions added it was addressing the issues the agency faced, and last year the CSA collected "more than £600m" for children.
Since it started in 1993, the CSA has been dogged by controversy. In particular it has suffered computer failures causing severe payment delays.
Last month, it came under fire for failing to answer one-third of telephone calls about its new child maintenance system.
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