CSA 'raising false hopes' of back payments

Errors by the child support agency are cruelly raising false hopes among lone parents of windfalls of thousands of pounds in child maintenance back payments, the agency's watchdog will today report.

Although the CSA has been found to be improving some aspects of its performance, the independent case examiner will say there continues to be far too much evidence of "disturbingly poor service".

The examiner, Anne Parker, is particularly concerned about errors and ambiguities that lead parents with care of children to believe they will receive substantial payments of maintenance arrears - only for their hopes to be dashed.

She is calling on the agency to consider paying a higher rate of compensation in such cases. At present, "consolatory" payments average £140 and are limited to £250.

In one case outlined in the report, a man with care of his children was told repeatedly he was due more than £7,500 in maintenance arrears. Much later, following intervention by the examiner's office, the figure was amended to a correct £3,000.

In a second case, a woman took out a bank loan on the strength of an agency assurance that she was due £4,600. Later, she was told she was due nothing. Because the woman suffered financial loss, she was compensated.

The examiner received more than 1,500 complaints last year and completed 235 investigations, of which 96% resulted in full or partial upholding of the grievance. The agency's eastern unit, based in Belfast but servicing cases in Yorkshire and the Midlands, prompted most complaints. Delays, errors and poor communication accounted for most complaints.

Mrs Parker is also concerned about the handling of cases involving a paternity dispute arising at a late stage, where discretion is being applied inconsistently and where problems continue even after the examiner has intervened.

The examiner is also demanding that the CSA is properly contrite when it gets things wrong. "This means a straightforward and honest apology, not a letter that spends a lot of time defending the agency's actions," she said.

Making proper apologies is one of nine targets set by the examiner for the agency to achieve this year. Alistair Darling, the social security secretary, said he expected the agency to achieve them. "Although the CSA has made steady improvements to its service, it still has a long way to go."

The government has announced plans to reform the child support system, including introduction of a simpler maintenance formula. But changes will not begin until late 2001 at the earliest.