Trials on a new computer system for the Child Support Agency have finally started but will not yet support the long-awaited reforms it was originally designed to introduce, it has been reported.

The new set-up was needed to help speed up the calculation of payments as well as collection times and was due to go into operation in April.

It's a classic example of how not to run an IT project

David Willetts

But Computing, a leading IT industry weekly newspaper, has seen a letter from the Department of Work and Pensions telling MPs the new kit will only deal with some clients using current rules.

The hold-up in its implementation has meant some families are suffering because payments are taking too long to work out and collect.

Management queries

David Willetts, shadow work and pensions secretary, said: "There's no point using the new system for old methods.

"We are in the situation where the government is running the CSA under the old rules when reforms were due to be introduced a year ago.

"It raises questions about the management of the project when we are finally getting the new hardware, one year late, but there's still no sign of them implementing the software to calculate the new formula.

The agency costs �290m a year to run

"It's a classic example of how not to run an IT project - where you end up buying an expensive new computer to run your old processes."

The leaked letter told MPs: "At this stage we will only be using the new computers to deal with some clients using the current rules."

Fair play

Work and Pensions Secretary Andrew Smith said: "David Willetts is clearly wrong and reveals how little he has learned from the failures his government suffered when they went ahead with big computer projects without thorough testing.

"It is plain common sense as well as best IT practice to test new systems before bringing them in."

He said he was "totally committed" to bringing in reforms to the child support system, "which will ensure that the money getsmore quickly to the children who need it".

But he added: "We have to be satisfied the new IT will work properly before going live with new cases on the new system."

Project 'over budget'

Richard Allan, the Lib Dems IT spokesman, said: "The public don't care what computer is running, they care that the system is fair, so it's no reassurance to have old systems running on a new box.

"We the politicians have agreed to change to a fairer system, hundreds of thousands of people are waiting for it, and apparently we can't implement our wishes.

"Who sets the date for reforms of government financial procedures that affect millions of people - is it government or IT suppliers?"

Earlier this year insiders told the BBC the project is at least �50m over budget - a quarter of the �200m total.

'Mistakes'

The contract to provide the new technology was awarded to the Texas-based company EDS, under a Private Finance Initiative (PFI).

Critics say it could end up being the taxpayer, thereby undermining one of the main points of PFI, that the risk of things going wrong is transferred to the private sector.

The CSA, which costs about �290m a year to run, has been dogged by controversy during its nine-year history.

Mistakes have led to millions of pounds in compensation payments to disgruntled parents, wrongly asked to pay either too much or at all.

Complicated formula

Established to settle maintenance for children of separated parents, it aims to ensure that absent parents are held financially responsible for their children.

It replaced the court system which was finding problems dealing with the increasing amount of cases it was facing.

But the complicated formula needed to work out payments has led to mistakes and delay, causing much misery and anger.

In some cases, absent parents have been overcharged, but in others - such as that of self-employed people - as many as 80% have avoided paying all the money they should because of loopholes in the system.