The government says it has not ruled out the 'nuclear option' of scrapping the troubled £456m computer system at the Child Support Agency (CSA).

Work and pensions secretary Alan Johnson told MPs last week that he had not made his mind up over the future of the EDS-supplied system, despite the resignation of CSA head Doug Smith.

The new computer went live in January 2003 - 11 months late and £29m over budget.

But Computing revealed earlier this month (Computing, 4 November) that one million cases are still being handled on the old CSA system.

Continuing problems with performance has prevented the CSA from transferring old cases into the new system, which uses a different calculation to work out payments.

The government is withholding nearly £1m per month in fees due to EDS while the problems are resolved.

But the CSA has also made more than 2,000 change requests from its original specification for the system.

Committee chairman Sir Archy Kirkwood said: 'This is not just about computers. It is a systemic, chronic failure of management right across the totality of the agency.'