CSA spared massive job cuts while crisis looms

Huge job cuts at the crisis- hit Child Support Agency have been shelved by the Government after MPs warned the agency was on the brink of collapse.

Work and Pensions Secretary Alan Johnson said that he would postpone plans to axe 2,000 frontline posts until the CSA's computer chaos was sorted out.

But Mr Johnson also hinted that he could scrap the agency altogether if it failed to get its act together and deliver cash payments owed by fathers to millions of children.

The minister's remarks came today after the work and pensions select committee said that the agency should be wound up unless it could turn around its performance by Easter.

In a damning report, the MPs said it could be five years before the CSA was "fit for purpose".

They urged ministers to start drawing up plans for an alternative way to get maintenance cash to children.

Mr Johnson said "We will protect frontline resources by ensuring no major reduction in frontline CSA staff numbers until the new computer system is working effectively."