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Child Maintenance and Other Payments Bill

The amendments give us the opportunity to discuss the appeals route for deduction from earnings orders when used as a basic method of collecting child maintenance. Amendments Nos. 108 to 110 apply specifically to appeals against a decision by the commission that there is no good reason not to apply a deduction from earnings order as a basic method of collection. They would mean that the appeals would be heard by a tribunal and not by the magistrates’ court, or, in Scotland, by the sheriff, as currently proposed in the Bill. Where regulations are made allowing deduction from earnings orders as a basic method of collection, they will include provision for such an order not to be made where there would be good reason not to do so. In deciding the most appropriate method of collection, the commission will consider any representations from the non-resident parent. Matters to be taken into account when considering what constitutes a good reason will be set out in such regulations, but it is envisaged that they will be related primarily to concerns about privacy issues. An example might be where a non-resident parent is employed in a family business and wishes to keep any details of child maintenance private. The intention is for the commission to pilot the approach of using deduction from earnings orders as a basic method of collection. The criteria for what constitutes a good reason will be further developed from lessons learnt from the pilot if this policy is to be fully rolled out. Deduction from earnings orders, as they currently operate, are part of the Child Support Act 1991. There are appeal routes to a magistrates’ court, or, in Scotland, to the sheriff. There is no evidence that this system does not work effectively or is inappropriate. We have considered whether to make different arrangements for this type of appeal when deduction orders are used as a basic method of collection, but we are confident that magistrates, with their wide range of experience examining decisions and evidence, are well equipped to deal with appeals of this nature, and we see no good reason why these appeals should go elsewhere. We have therefore decided to adopt a consistent approach on appeal routes for deduction from earnings orders and to continue with the magistrates’ courts, and with the sheriff in Scotland. Amendments Nos. 165, 168, 169 and 173 deal with the route of appeal for deduction orders—in this case, lump sum deduction orders. We considered deduction orders further following debate in the other place, and as a result I plan to table government amendments that increase the scope of these orders. As part of this, we have reconsidered the appropriate routes of appeal. In consultation with the Ministry of Justice, we have concluded that in England and Wales, the county courts are best placed to deal with financial matters such as these. This allows us to benefit from the extensive experience of the county courts in making third-party debt orders. In addition, we recognise the potential complexity of joint account deduction orders, so we intend those appeals to be heard in the High Court. To allow for further consultation with the Scottish Executive to mirror these changes in Scotland, however, we will set out the specific route of appeals in regulations. I hope that that explanation was sufficient, and that the noble Lord will be able to withdraw the amendment.