REFORM of the Child Support Agency is finally to go ahead after the Government announced yesterday that it was confident that problems with a new computer system had been overcome.

From early March all new cases for child maintenance will be based on a standard formula using a proportion of the absent parent’s net income, rather than calculated case by case as before.

The 1.1 million child support cases whose payments were worked out under current arrangements will transfer to the new formula later when ministers are satisfied that the computer system can cope.

The streamlined formula, under which most absent parents will pay 15 per cent of net income for their first child, 20 per cent for their second and 25 per cent for three or more children, was announced in 1999. Problems with the computer system meant that its introduction was delayed twice, most recently in March last year.

Andrew Smith, the Work and Pensions Secretary, told the Commons yesterday that his department had negotiated a settlement with EDS, the information technology company, to share the higher costs arising from the delays. The Government’s share would rise by £29 million to £456 million over the lifetime of the contract, Mr Smith said.

David Willetts, the Shadow Work and Pensions Secretary, welcomed the announcement but blamed the delays and higher costs on interference by ministers.

Kate Green, Director of the National Council for One Parent Families, said: “Thousands of lone parents who for years have scraped by without child maintenance will be very relieved to learn that the long period of waiting for reforms is over.” It has been criticised, however, by pressure groups, such as Families Need Fathers, who argue that it penalises fathers who share the care of their children and no longer takes account of housing costs or the mother’s income.

The first to pay under the new system will be parents whose liability for maintenance begins on or after March 3. Ministers expect 30,000 cases a month to be calculated using the formula thereafter. Some absent fathers may be required to pay more but the change is designed to make their liabilities easier to calculate in advance.

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