A GUIDE TO THE CHILD SUPPORT REGIME
A GUIDE TO THE CHILD SUPPORT REGIME
Child maintenance is changing. As from 27th October 2008 for parents who are on benefit the way child maintenance is handled is now:.
- A new Government agency, the Child Maintenance and Enforcement Commission (CMEC) has been set up which will eventually completely replace the Child Support Agency (CSA).
- Under CMEC provisions parents who previously had to use the CSA because they were receiving benefits no longer have to do that. They now have a choice and can stay with the CSA/CMEC if they wish or leave the CSA/CMEC and make their own private arrangements for child maintenance with the other parent.
- There is a new impartial service called Child Maintenance Options to assist all parents to think about arranging maintenance for their children and to help them make choices.
- If parents wish to stay with the CSA scheme they do not need to do anything and for the time being matters will continue as before.
- The changes do not affect the way the non-resident parent pays child maintenance under the CSA’s existing statutory schemes.
- The main advantage to a parent in receipt of benefits is that under the new scheme they will be entitled to keep up to £20 a week of any child maintenance paid before it affects the amount of benefits they receive.
- Parents should not opt out of the CSA unless they have an alternative private arrangement in place in order for them to continue to receive child maintenance from the non-resident parent.
- The regulations now in force will eventually introduce a new formula for assessing maintenance based on the non-resident’s gross income in the previous tax year but that new formula will not come into force until 2010 at the earliest.
Meanwhile assessment will proceed along the current CSA formula as below. For all applications made after 2nd March 2003 the following applies.
The way maintenance is calculated
Broadly, the amount of maintenance paid by a non-resident parent to the parent with whom the child(ren) live(s) is based on the non-resident parent’s net income. For most people this will mean earnings after tax, NI and pension contributions are deducted. Dividends/interest from savings are included as income. If the non-resident parent’s net income is £200 per week or more the rates will be:
- 15% of the net income for one child
- 20% of net income for two children
- 25% of net income for three or more children
There are special rules for low income families
The calculation will take account:
- Of all children in the non-resident’s current family, including stepchildren, and will give reductions depending on the number of such children
- Of nights spent with the other parent (one night a week averaged over a year will be sufficient – i.e. 52 nights, to reduce the maintenance by 1/7th , and so on, pro rata)
But the calculation will not take account of:
- The income of the parent with care
- The income of either parent’s current partner
- Housing costs
- Travel – to – work costs
Enforcement provisions
CMEC is expected to be given improved enforcement provisions which are expected to come into effect sooner rather than later and these will include:
- Deduction from earnings orders as the standard collection mechanism
- Lump sum deductions from non-resident’s bank accounts where there are arrears
- The ability for CEME to apply to the Court for a freezing Order to stop a non-resident parent from disposing of assets to frustrate a Child Support assessment
- For persistent defaulters and as an alternative to imprisonment or making a driving disqualification Order, a Court may also disqualify a child support defaulter from holding or obtaining a passport, and in some circumstances make a curfew Order.
Each case of child support must be assessed individually depending on financial circumstances. A rough calculation can be made using the calculator on the CSA website. For a formula assessment or for more information on the changes, contact CSA direct at www.csa.gov.uk.
