Government holds back £13.3m over CSA computer problems

The government has held back £13.3m in payments to EDS over the last two years amid continuing problems with new computer systems at the Child Support Agency (CSA), it has been revealed.

In response to a report by the Work and Pensions Select Committee into the performance of the CSA, Secretary of State for Work and Pensions Alan Johnson said the agency’s performance has continued to improve.

But he admitted: "Despite recent progress, some significant problems remain with the new computer and telephony systems. These continue to slow progress on business recovery.

"The department continues to retain substantial payments from EDS. The payment each year is determined by the contract and is linked to service levels and to the degree of functionality delivered. Between 27 January 2003 and 16 January 2005, the agency retained £13.3 million of payments otherwise due to EDS."

Johnson said an agency business transformation programme is being developed, "which will contain short-term tactical initiatives and also places significant emphasis on ensuring medium to long-term sustained recovery".

But the Work and Pensions Committee said it was disappointed no date has been set by which the CSA’s computer system will be operating satisfactorily.

Chairman of the committee Sir Archy Kirkwood said: "Our concern was, and is, for the thousands of people who are suffering because of the inadequacy of the CSA and its computer system. The absence of a confirmed date for acceptable performance by the CSA, while understandable, is a major shortcoming in the government's response."

Tom Warsop, managing director of the Department for Work and Pensions (DWP) account at EDS said the new computer system is providing a day-to-day service to over 620,000 cases.

He said progress is still being made and EDS is working closely with the DWP to implement a forward development plan in line with its evolving requirements.

"EDS continues to dispute the withholding of funds by the DWP and we are working to resolve this and other issues. We re-iterate our commitment to helping the CSA resolve its business transformational issues. We will continue to make our full and best resources available to assist in the CSA's Business Transformation Programme," he said.