CSA supplier knew of IT flaws

The American firm responsible for the Child Support Agency's computer crisis admits its £450 million system was "badly designed, badly tested and badly implemented".

Electronic Data Services (EDS) made the shock confession in an internal memo. CSA chief executive Doug Smith was yesterday forced to quit after fresh evidence its information technology blunders had stranded 370,000 single mothers without maintenance.

Work and Pensions Secretary Alan Johnson is now weighing up whether to stick with EDS, which - the internal paper for a staff presentation makes clear - knew its system had fundamental network problems.

An EDS spokesman refused to comment.