England and Wales Court of Appeal (Civil Division) Decisions
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Secretary Of State For Social Security & Anor v Harmon & Anor [1998] EWCA Civ 920 (5 June 1998)
URL: http://www.bailii.org/ew/cases/EWCA/Civ/1998/920.html
Cite as:
[1999] 1 WLR 163,
[1998] EWCA Civ 920,
[1999] WLR 163
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[1999] 1 WLR 163]
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IN
THE SUPREME COURT OF JUDICATURE
SSTRI
97/0688/1
IN
THE COURT OF APPEAL (CIVIL DIVISION)
ON
APPEAL FROM THE SOCIAL SECURITY COMMISSIONERS
Royal
Courts of Justice
Strand
London
WC2
Friday,
5 June 1998
B
e f o r e:
LORD
JUSTICE BELDAM
LORD
JUSTICE MILLETT
LORD
JUSTICE MUMMERY
-
- - - - -
SECRETARY
OF STATE FOR SOCIAL SECURITY & ANR
APPELLANT
-
v -
HARMON
& ANR
DEFENDANT/RESPONDENT
-
- - - - -
(Computer
Aided Transcript of the Palantype Notes of
Smith
Bernal Reporting Limited, 180 Fleet Street,
London
EC4A 2HD
Tel:
0171 421 4040
Official
Shorthand Writers to the Court)
-
- - - - -
MR
M SHAW [MISS K GALLAFENT - judgment
]
(Instructed by Mr PKJ Thompson, Solicitor to the Department of Social Security,
London WC2A 2LS) appeared on behalf of the Appellant
MR
N MOSTYN QC
(Instructed by Messrs Cripps Harries Hall, Kent TN1 1EN) appeared on behalf of
the Respondent
-
- - - - -
J
U D G M E N T
(As
approved by the Court
)
-
- - - - -
©Crown
Copyright
IN
THE SUPREME COURT OF JUDICATURE
SSTRI
97/0689/1
IN
THE COURT OF APPEAL (CIVIL DIVISION)
ON
APPEAL FROM THE SOCIAL SECURITY COMMISSIONERS
Royal
Courts of Justice
Strand
London
WC2
Friday,
5 June 1998
B
e f o r e:
LORD
JUSTICE BELDAM
LORD
JUSTICE MILLETT
LORD
JUSTICE MUMMERY
-
- - - - -
SECRETARY
OF STATE FOR SOCIAL SECURITY & ANR
APPELLANT
-
v -
CARTER
& ANR
DEFENDANT/RESPONDENT
-
- - - - -
(Computer
Aided Transcript of the Palantype Notes of
Smith
Bernal Reporting Limited, 180 Fleet Street,
London
EC4A 2HD
Tel:
0171 421 4040
Official
Shorthand Writers to the Court)
-
- - - - -
MR
M SHAW [MS K GALLAFENT - judgment
]
(Instructed by Mr PKJ Thompson, Solicitor to the Department of Social Security,
London WC2A 2LS) appeared on behalf of the Appellant
The
Respondent did not attend and was not represented
-
- - - - -
IN
THE SUPREME COURT OF JUDICATURE
SSTRI
97/0690/1
IN
THE COURT OF APPEAL (CIVIL DIVISION)
ON
APPEAL FROM THE SOCIAL SECURITY COMMISSIONERS
Royal
Courts of Justice
Strand
London
WC2
Friday,
5 June 1998
B
e f o r e:
LORD
JUSTICE BELDAM
LORD
JUSTICE MILLETT
LORD
JUSTICE MUMMERY
-
- - - - -
SECRETARY
OF STATE FOR SOCIAL SECURITY & ANR
APPELLANT
-
v -
COCKS
& ANR
DEFENDANT/RESPONDENT
-
- - - - -
(Computer
Aided Transcript of the Palantype Notes of
Smith
Bernal Reporting Limited, 180 Fleet Street,
London
EC4A 2HD
Tel:
0171 421 4040
Official
Shorthand Writers to the Court)
-
- - - - -
MR
M SHAW [MS K GALLAFENT - judgment
]
(Instructed by Mr PKJ Thompson, Solicitor to the Department of Social Security,
London WC2A 2LS) appeared on behalf of the Appellant
The
Respondent did not attend and was not represented
-
- - - - -
Friday,
5 June 1998
J
U D G M E N T
LORD
JUSTICE MILLETT: These three conjoined appeals are brought by the Secretary of
State for Social Security with the leave of Simon Brown LJ from three decisions
of the Child Support Commissioner (Mr Commissioner Rice in the cases of Cocks
and Carter; Mr Commissioner Angus in the Case of Harmon). All the decisions
were in favour of the absent parent. Mr Commissioner Rice followed an earlier
decision of his own in
Baverstock,
and Mr Commissioner Angus followed the decisions of Mr Commissioner Rice. The
absent parents were all unrepresented below. In order to ensure that the
appeals should be fully argued before us, the Secretary of State has agreed to
pay the costs of the absent parents in this Court on an indemnity basis in any
event. Only Mr Harmon has taken advantage of this offer, and we are indebted
to Mr Mostyn QC for the careful and thorough argument which he has presented,
technically on Mr Harmon's behalf, but in reality for all three respondents.
The
three appeals all raise the same short but important question, which is
concerned with the relationship between the Child Maintenance Support system
and the Social Security benefit system. In order that the question may be
understood, it is sufficient in the first instance to refer to the terms of two
sections of the
Child Support Act 1991 ("the Act") as amended.
"A
person who is, in relation to any qualifying child or any qualifying children,
either the person with care or the absent parent may apply to the Secretary of
State for a maintenance assessment to be made under
this Act with respect to
that child, or any of those children."
"No
application may be made at any time under this section with respect to a
qualifying child or any qualifying children if -
...
(b) benefit
is being paid to, or in respect of, a parent with care of that child or those
children."
Benefit
is defined by subsection (11).
"Where
income support, ... family credit or any other benefit of a prescribed kind is
claimed by or in respect of, or paid to or in respect of, the parent of a
qualifying child she shall, if -
(a) she
is a person with care of the child; and
(b) she
is required to do so by the Secretary of State,
authorise
the Secretary of State to take action under
this Act to recover child support
maintenance from the absent parent.
...
(5)
That authorisation shall be given, without reasonable delay, by completing and
returning to the Secretary of State an application -
(a) for
the making of a maintenance assessment with respect to the qualifying child or
qualifying children; and
(b) for
the Secretary of State to take action under
this Act to recover, on her behalf,
the amount of child support maintenance so assessed.
(6)
Such an application shall be made on a form ('a maintenance application form')
provided by the Secretary of State."
For
convenience I shall in this judgment adopt the statutory language and refer to
the parent with care as if she were always the mother, and the absent parent as
if he were always the father. Of course that is not necessarily the case. The
parent with care can equally well be the father, and the absent parent can
equally well be the mother.
It
will be seen that a parent with care who is not in receipt of benefit may make
her own application for child support maintenance under
section 4. If she does
so, she remains in charge of the procedure at every stage. Where she is in
receipt of benefit, however, she may not make an application under
section 4
but may be required by the Secretary of State to authorise him to recover child
support maintenance on her behalf in respect of a qualifying child from the
absent parent. If such a requirement is made, the person with care is obliged
to give the requisite authority to the Secretary of State. If she does not do
so, the child support officer may in due course make a reduced benefit
direction under section 46. The purpose of this statutory machinery is to
prevent a parent who is in receipt of benefit from leaving financial
responsibility for the child with the state instead of claiming child
maintenance support from the absent parent. The application is still made by
the parent with care, but it is made at the instance of the Secretary of State,
who takes responsibility for the entire procedure. If the application is
successful and the Secretary of State recovers child support maintenance from
the absent parent, the benefit of the payment enures to the Secretary of State
(that is to say, the taxpayer); for although the social security benefit is not
in practice reduced by the amount of child maintenance support, any maintenance
payments made by an absent parent collected by the Secretary of State may be
retained by him: see section 74A of the
Social Security Administration Act
1992, inserted by
section 25 of the
Child Support Act 1995.
Section
6(1) attaches two conditions precedent to the ability of the parent with care
to give the requisite authority to the Secretary of State. The two conditions
which must be satisfied before the Secretary of State can be authorised to take
action to recover child maintenance support from the absent parent are, first,
that the person giving the requisite authority is the parent with care of a
qualifying child; and secondly, that income support or other benefit of a
prescribed kind is either being claimed by or in respect of the parent with
care, or is being paid to or in respect of her. The principal question in
these appeals is whether there is implicit in
section 6(1) a further condition
that the benefit in question is benefit to which the parent with care is
entitled.
Once
an effective application for child support maintenance has been made, the
procedure is for the Secretary of State to give notice of the application to
the absent parent and send him a maintenance inquiry form. The absent parent
is required to complete the form and return it to the Secretary of State. If
he does so within four weeks, the effective date (which is the date from which
his liability if any to pay child support maintenance runs) is eight weeks
after the receipt of the maintenance inquiry form. If he fails to complete and
return the form within the four weeks, then the effective date is the date on
which he received the form. Thus he has an incentive to complete and return
the form within the time limited, since this delays the date from which he can
be required to pay child support maintenance.
Once
the form is returned and has been considered by the Secretary of State, the
application is referred by him to a child support officer, and it is his duty
to deal with the application in accordance with
the Act and the regulations
made thereunder (see
section 11). The child support officer is a judicial or
quasi-judicial officer who acts independently of the Secretary of State.
Thereafter the Secretary of State has no further part to play in the assessment
procedure, although he comes back into the picture when it comes to collection.
The
assessment is made by the child support officer in accordance with schedule 1
to
the Act. For this purpose it is necessary for him to determine, amongst
other things, the assessable income of each parent. Where, however, either
parent is in receipt of prescribed benefit, he or she is taken to have no
assessable income: see paragraph 5(4) of the first schedule to
the Act which
provides:
"Where
income support or any other benefit of a prescribed kind is paid to or in
respect of a parent who is an absent parent or a person with care that parent
shall, for the purposes of this Schedule, be taken to have no assessable income."
It
will be seen that the language of paragraph 5(4) of the first schedule is
closely similar to that of
section 6(1) of
the Act itself, with two
differences: first, paragraph 5(4) applies to the absent parent as well as to
the parent with care; and secondly, paragraph 5(4) omits any reference to
"claim".
Section 17 contain provisions which enable the absent parent to apply
for the amount of the assessment to be reviewed when there is change of
circumstances or otherwise.
Section 18 provides review in other circumstances,
and
sections 20 and
24 provide for appeals, first from the child support
officer to the child support appeal tribunal, and thence (on a question of law
only) to the child support commissioner.
Once
the maintenance assessment has been made by the child support officer, the
absent parent is liable to pay maintenance as from the effective date. In the
normal way, the effective date will have preceded the making of the assessment,
so there will inevitably be some arrears of child support maintenance for the
absent parent to pay. It is important to appreciate that, once the maintenance
assessment is made, the Secretary of State is able to enforce the collection of
the arrears and periodic payments, and there is no provision in
the Act or the
regulations made under
the Act for any stay of enforcement during any review or
appellate process.
In
each of the cases with which these appeals are concerned the parent with care
was the mother and the respondent father was the absent parent. The mother was
in receipt of income support. She was required by the Secretary of State under
section 6(1) to authorise him to take steps to recover child support
maintenance from the respondent, and she did so. The statutory machinery was
duly put in motion. In due course each of the respondents contended that the
mother was not entitled to income support, and challenged the validity of the
section 6 procedure.
Mr
Cocks applied under section 25 of the
Social Security Administration Act 1992
as amended to the social security authorities for the decision to pay income
support to the mother to be reviewed, but his application was unsuccessful.
Child maintenance support assessments were made by the child support officer in
all three cases. Each of the respondents appealed to the child support appeal
tribunal. Mr Cocks and Mr Carter relied on the terms of section 6(1) and
argued that no assessment at all should have been made because the parent with
care was not entitled to income support, with the result that the whole process
was invalid.
In
each case the tribunal held in effect that it was sufficient that the parent
with care was in receipt of income support, whether she was entitled to it or
not. Mr Harmon took a slightly different line; he relied on paragraph 5(4) of
the first schedule to
the Act and contended that the assessment was incorrect
because the parent with care was in receipt of income support to which she was
not entitled, and accordingly her income should have been assessed and not
simply taken as nil. The tribunal rejected this contention also. All three
respondents appealed to the child support commissioner, who allowed the
appeals.
Mr
Harmon succeeded in having an adjustment made to his housing costs, from which
the Secretary of State does not appeal, but before the commissioner Mr Harmon
abandoned his claim that paragraph 5(4) of the first schedule had no
application. Mr Commissioner Angus nevertheless dealt with the point. On the
relevant questions, therefore, all three commissioners ruled in favour of the
absent parent.
In
each case the commissioner held as follows:
1.
The authority of the Secretary of State to take action under section 6(1) to
recover child maintenance support from the absent parent depends on whether the
parent with care is claiming or being paid income support or other prescribed
benefit to which he or she is lawfully entitled.
2.
The social security adjudication officer has exclusive jurisdiction to
determine whether income support or other benefit is properly payable, and the
child support authorities are bound by his decision.
3.
Where the absent parent has substantial grounds for contending that income
support or other benefit should not be being paid to the parent with care, the
child support officer or the child support appellate authorities on appeal from
the child support officer have a discretion to defer the assessment in the one
case, or to adjourn consideration of the assessment in the other, until the
issue has been resolved by the social security authorities.
4.
The failure by the tribunal even to consider whether to adjourn the appeals in
Mr Cocks and Mr Carter's case to allow application to be made to the social
security authorities to review the payment of income support to the parent with
care was a breach of natural justice and an error of law which the commissioner
should correct.
5.
The cases should be remitted to the tribunal to consider whether to grant an
adjournment for the stated purpose.
6.
If the social security authorities in due course found that income support was
not properly payable to the parent with care, then the child support appeal
tribunal could, on a resumed hearing of the adjourned appeal, remit the case to
the child support officer with a direction to cancel the assessment.
The
Secretary of State has appealed all three cases to this court. It is a
curiosity that the only case in which the respondent is represented before us
(that is to say Mr Harmon's case) the point was expressly abandoned by him
before the commissioner. But Mr Commissioner Angus dealt with the point in his
decision and followed the earlier decisions, though in view of Mr Harmon's
attitude he made no order in relation to the matter.
We
have been invited to consider the appeals as a matter of principle without
regard to the technicality to which I have referred, and we have agreed to do so.
I
should now refer briefly to the reasoning of Mr Commissioner Rice in
Baverstock
to explain the route by which he arrived at his decision. He said:
"But
the crucial issue in this case was whether or not income support was at the
relevant time being paid to the parent with care within section 6(1). If it
was, then reliance could be placed on section 6(1), and there was jurisdiction
to make an assessment order. But if income support was not being paid, there
was no such jurisdiction.
Ms
Thomas [for the Secretary of State] initially contended that there was no great
problem. It was an undoubted fact that income support
was
being paid to the parent with care, and that was the end of the matter.
However, in my judgment, that was too simplistic an approach. It was not
enough, in my view, for it to be shown that the payment was actually made; it
had also to be shown that the payment was properly made."
The
learned commissioner then referred to other regulations under other statutes
preceding the enactment of the 1991 Act, and showed that in some contexts
"payment" means "lawful payment". He also referred to section 13(2) of the
Social Security Administration Act 1992 which expressly deals with the
situation where the benefit has been paid to the wrong person.
The
commissioner continued:
"Ms
Thomas countered by saying that, even if this was so, income support was in
this instance being paid lawfully. The adjudication officer had investigated
the claim for this particular benefit, and had considered, rightly or wrongly,
on the evidence before him, that the claimant was entitled. This was a matter
which fell for determination in accordance with the social security
legislation. It was not something which the child support adjudicating
authorities could challenge. Accordingly, the propriety of the action on the
part of the adjudication officer could not be questioned in the child support
jurisdiction, and it followed that the payment to the parent with care had, for
child support purposes, to be deemed lawful. I see the force of that
submission."
Later
the commissioner said:
"Manifestly,
the child support tribunal could not decide this particular matter [entitlement
to income support]. They had no jurisdiction. The evidence which I understand
the absent parent brought to the hearing could only have been evaluated by the
social security adjudication officer. In those circumstances, I think that the
proper course was for the tribunal to have adjourned the hearing to enable the
matter to be gone into again by the adjudication officer, in the light of the
fresh evidence, and then to have reconvened to consider the appeal after the
adjudication officer had made his decision... In failing to adopt this course,
I think that the tribunal erred in point of law. There was a breach of natural
justice."
In
a later case, the commissioner diluted his earlier ruling by making it clear
that the tribunal had a discretion in the matter. They were not bound to grant
an adjournment. They had to consider whether the evidence tendered by the
absent parent was sufficiently compelling to justify such a course, but they
were bound to consider whether to grant an adjournment or not.
In
the case of Cocks, Mr Commissioner Rice expanded on his reasoning for holding
that the word "paid" meant "lawfully paid", by saying that he was not persuaded
that it was necessary to read the word "lawfully" into the section when it was
not there. He said:
"Parliament
does not normally incorporate words which are otiose, and in my view, in the
context of the relevant provision, 'paid' can only mean 'lawfully paid'."
The
parties' respective skeleton arguments identify three issues for determination
on this appeal. The first is described as the "jurisdiction issue"; the second
as the "adjournment issue", and the third as the "payment issue". For reasons
which will appear shortly, the appeals effectively turn on the third of those
issues.
The
jurisdiction issue raises the question whether the child support officer, the
tribunal or the commissioner had jurisdiction to question the validity of the
Secretary of State's decision under section 6(1) of
the Act to require a parent
with care to authorise him to take action under
the Act to recover child
support maintenance from an absent parent. The Secretary of State has stressed
that
the Act draws a clear division of functions between the Secretary of State
on the one hand and the child support officer on the other. In section 6
cases, the division is made clear by a distinct two-stage process. There is,
first, the imposition on a parent with care of a requirement to authorise the
Secretary of State to make an application for child support maintenance, the
acceptance of such an application, and its reference to the child support
officer. All that is done by the Secretary of State under section 6 and
section 11(1). The second stage is the calculation of the amount of
maintenance payable, and that is done, not by the Secretary of State, but by an
independent child support officer, under sections 11 and 12 and schedule 1 to
the Act.
The
Secretary of State submits that the importance of a division of those functions
for present purposes is that the decisions of the Secretary of State at the
first stage are not appealable, but the decisions of the child support officer
can be appealed to the tribunal and the commissioner. The statutory machinery
however does not provide power for the tribunal and the commissioner to do
anything beyond reviewing the assessment made by the child support officer.
They cannot go outside the scope of the functions which are entrusted by the
Act to the child support officer. Since the jurisdiction of the appellate
authorities is confined to that of the child support officer and it is clear
that he has no power to question or review the decision of the Secretary of
State which led to the referral of the application to him, then it follows that
none of the appellate bodies have any power to decide the validity of the
procedure which is being invoked.
These
submissions have not been challenged by Mr Mostyn QC. In his careful skeleton
argument he accepts that the decision-making process under section 6(1) of the
Act is vested solely in the Secretary of State, and that neither the child
support officer nor the child support appeal tribunal or the child support
commissioner has any jurisdiction to question such a decision. Mr Mostyn
accepts that to the extent that any of the commissioners suggested otherwise,
their reasoning cannot be supported. As I read their decisions, however, none
of them suggested otherwise.
But
this brings one immediately to the adjournment issue, because Mr Mostyn submits
that it is necessary to consider what is really meant by the term "question a
decision". He says that it means that neither the child support officer nor
the tribunal nor the commissioner can conclusively decide that the claim for
income support is fraudulently made or that the parent with care is not
entitled to the benefit claimed by her or paid to her. But this does not mean
that the tribunal or the commissioner could not adjourn an appeal in order to
enable the appropriate authorities to investigate the issue and decide whether
the parent with care is entitled to the benefit in question. The Secretary of
State's response is to point out that the effect of the commissioners'
decisions is that, whenever an absent parent alleges that the parent with care
is not entitled to benefit and produces material not previously considered by
the social security adjudication officer, the tribunal must consider whether to
exercise its discretion to adjourn the appeal. The tribunal will therefore
have to consider whether there is a sufficiently strong case for thinking that
the entitlement to benefit might be successfully challenged, and this necessary
involves some, albeit preliminary, assessment of the strength of the claim that
the parent with care is not entitled to the relevant benefit.
If
the tribunal has no power to reach a concluded view about the entitled of a
parent with care to benefit, the Secretary of State submits, then the tribunal
does not have power to reach a preliminary view either. In fact, the Secretary
of State has told us that he is not particularly troubled by the effect of the
commissioners' decisions on the proceedings before the tribunal since, even if
the tribunal adjourns consideration of the appeal, this does not stay
enforcement of the payment of child support maintenance in the meantime. But
he is extremely concerned by the prospective effect of the decisions on the
position before the child support officer, since what applies to the appellate
authorities must equally apply to the child support officer, and the Secretary
of State would be concerned if the child support officer were to consider it
necessary to adjourn or defer making the assessment in order to allow further
time for the entitlement of the parent with care to benefit to be considered by
the social security authorities. This is because, while the effective date
would not be affected, any delay in the enforcement and collection of periodic
payments would increase the amount of arrears and make it more likely that
irrecoverable arrears would arise.
Seeing
the force of this concern, Mr Mostyn has submitted that the considerations
which a child support officer would have to bear in mind would be different
from those which the tribunal would have to bear in mind or an application for
deferment or adjournment. The child support officer would have to consider
whether he would be justified in deferring making the assessment and thus
delaying enforcement, whereas no such consideration would be relevant to the
decision of the tribunal. Accordingly, Mr Mostyn accepts that a child support
officer should only defer the assessment in exceptional circumstances, whereas
the tribunal should be more ready to adjourn where cogent and compelling
evidence is tendered by the absent parent which merits consideration by the
social security authorities. There was considerable debate before us as to the
appropriate threshold which should be adopted in the different circumstances.
However,
it is the third or payment issue in my view which is decisive of the present
case. The issue is whether, for the purposes of section 6(1) and paragraph
5(4) of the first schedule to
the Act, the benefit in question must be benefit
to which the parent with care is entitled, or whether it is sufficient that the
benefit is actually being claimed or paid.
The
child support officer has power to defer making the assessment, and the
tribunal has jurisdiction to adjourn consideration of an assessment already
made, in order to allow the social security authorities to review the decision
to pay benefit to the parent with care if, but only if, entitlement of the
parent with care to income support is a matter which is relevant to the
discharge of their respective functions. This is so if, but only if, as the
commissioners have held, "paid" or "claim", means "lawfully or properly paid or
claimed", as otherwise the question whether the benefit is benefit to which the
parent with care is entitled is not relevant to the discharge of his functions
by the child support officer or to the questions which fall to be considered by
the appellate bodies on appeal from his assessment.
As
appears from the extracts of his decisions which I have read, Mr Commissioner
Rice was of opinion (i) that the primary meaning of the word "paid" is
"lawfully paid", and (ii) that in the context of
the Act the word "paid" could
have no other meaning. I respectfully disagree with both these conclusions.
In my judgment, the primary meaning of the word "paid" is "actually paid". But
I acknowledge that this primary meaning will readily yield to the context. In
my view however, the statutory context demonstrates that the word "paid" in
section 6(1) and in paragraph 5(4) of the first schedule to
the Act means
"actually paid". My reasons are as follows.
1.
It is clear that so far as payment is concerned the same test is adopted in
section 6(1) and 4(1)(b). Where benefit is claimed or paid, whatever this may
mean, then (i) the parent with care may not make her own application but (ii)
the Secretary of State may require her to authorise him to do so. The two
procedures are obviously both mutually exclusive and exhaustive. Every case
must fall into one or the other. Either benefit is claimed or paid or it is
not. Accordingly if "paid" means "lawfully paid" in section 6, it must do so
in section 4(10)(b). But this, in my view, produces a nonsensical result. The
parent with care cannot claim or be paid income support on the basis that she
is entitled to it, and at the same time decline to authorise the Secretary of
State to recover child maintenance support under section 6 on the basis that
she is not. By making a claim to benefit and
a
fortiori
by receiving it, she automatically takes herself out of section 4 and into
section 6. It is in my view not insignificant that in section 6 the relevant
condition precedent is not attached to the power of the Secretary of State to
require the parent with care to confer the necessary authority upon him, it is
a condition precedent to the power of the parent with care to authorise the
Secretary of State to act. She is the person who must consider whether to
apply under section 4 or ask the Secretary of State to apply under section 6.
She knows whether she has made a claim or is in receipt of benefit. But
(unless she has made a fraudulent claim) she cannot know whether she is
entitled to benefit, though if she has acted honestly she will consider that
she is.
2.
Section 6(1) refers to benefit being claimed by or in respect of the parent of
a qualifying child as well as benefit being paid to or in respect of her. This
shows that Parliament intended the section 6 procedure to be set in motion
before the claimant's entitlement to benefit has been determined. This, to my
mind, demonstrates conclusively that the invocation of the section 6 procedure
cannot depend upon the validity of the claim. It is true that, as Mr Mostyn
pointed out, where the child support officer is required to make the assessment
before the claim to benefit has been determined, he cannot rely upon paragraph
5(4) of the first schedule, to disregard the claimant's income, for paragraph
5(4) refers to payment and not to claims. But that to my mind takes the matter
no further. The position before the child support officer is no different from
that which would obtain if the parent with care had not claimed benefit and was
proceeding under section 4.
3.
If the respondents' argument is correct, then every step taken under section
6(1) falls if the parent with care is not entitled to the benefit which she has
claimed or is being paid. It is not, as the commissioners seem to have
thought, merely a case of incorrect assessment having been made under paragraph
5(4). The Secretary of State's authority to take action to recover child
support maintenance, which is derived from the parent with care, together with
the service of the maintenance inquiry form and his reference to the child
support officer, must all be set aside since they are all ultimately subject to
the same condition precedent. The result is, if the respondents' argument is
correct, that there is no effective date and no liability on the part of the
absent parent to pay child support maintenance at all. The parent with care on
the other hand will be entitled to make her own application under section 4 and
will always have been entitled to do so, but there is no means (at this stage)
by which the parent with care can have the section 6 application treated as if
it had been made by her under section 4. There is machinery for doing this at
a much earlier stage, but that will have been long since past. Accordingly, if
the respondents' arguments are correct and on the adjourned hearing the
tribunal discovers that payment of income support has been cancelled, then
there is no means by which the absent parent can be required to pay child
support maintenance until the parent with care makes her own application under
section 4 and a new effective date is obtained. Thus the consequence of
holding the section 6 application to be invalid is to deprive the qualifying
children of maintenance by the absent parent, and to confer upon him an
unjustified relief from all liability, which is a result which Parliament
cannot to my mind conceivably have intended.
4.
Whether the benefit is paid within the meaning of section 6(1) and paragraph
5(4) to the parent with care, is relevant to the amount of maintenance payable
by the absent parent, but it is mainly relevant to the question whether the
maintenance is to be collected by the Secretary of State in order to recoup the
cost of paying benefit to the parent with care. The cost to public funds and
the corresponding need for recoupment by the Secretary of State on behalf of
the taxpayer is the same whether or not the parent with care is entitled to the
benefit which is being paid to her. Thus the statutory purpose behind section
6(1), far from requiring the word "paid" to be construed as being "lawfully or
properly paid", in my judgment requires it to be construed as meaning "actually
paid".
6.
The absence of any statutory machinery to enable the child support authorities
themselves to determine the eligibility of a parent with care to benefit,
itself suggests that this is not a matter which affects either the procedure or
the assessment of child support maintenance.
Not
all these considerations are of the same weight, but they all point in the same
direction, and I have been unable to discover any consideration which points in
the other direction. Section 13(2) of the
Social Security Administration Act
1992 is concerned with a different problem, that of preventing a situation from
arising in which benefit is simultaneously payable to two claimants. This
explains the language of the subsection. It provides no assistance in
ascertaining the necessity of the statutory provisions under consideration in
the present case.
Accordingly
I am satisfied that section 4(10)(b) and 6(1) must be read in their primary
signification. Whether the application may be made by the parent with care
under section 4 or by the Secretary of State with the authority of the parent
with care under section 6(1) depends on whether or not benefit is claimed by or
in respect of the parent with care or is being paid to or in respect of her.
It does not depend on whether the benefit in question is benefit to which she
is entitled. This is a simple and straightforward test which can be applied
with ease by the child support officer, and which need not delay the assessment
or the collection of child support maintenance to which the absent parent is
already liable.
Mr
Mostyn I think recognised the force of these considerations and submitted that,
even if this be so, the position under paragraph 5(4) is different. I cannot
accept this submission. The power of the Secretary of State to refer the
assessment of maintenance to the child support officer depends upon the fact
that income support is claimed by, or paid to, the parent with care, not on
whether she is entitled to it. The hypothesis upon which the child support
officer makes the assessment is that the benefit is being claimed or paid. If
it is being claimed but not yet being paid he is directed by the first schedule
to assess the claimant's income. If it is being paid, he is directed to treat
the claimant as having no assessable income. In other words, in assessing the
claimant's assessable income, the child support officer proceeds on the same
assumption, that benefit is being claimed or paid.
Accordingly,
in my judgment, the appeal should be allowed; the decisions of the
commissioners should be set aside; and the decisions of the tribunals should be
reinstated, save that in the case of Mr Harmon the reference in the decision of
the tribunal to housing costs of £67.11 per week should be amended to
refer to housing costs of £67.11 per week from 20 October 1993 and
£69.69 per week from 28 March 1994. There will be an order that the
Secretary of State pay the costs of Mr Harmon of the appeal to this court on an
indemnity basis, to be taxed if not agreed.
LORD
JUSTICE MUMMERY: I agree.
LORD
JUSTICE BELDAM: I also agree that the appeal should be allowed, and with the
terms of the order which my Lord has proposed.
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