A GUIDE TO THE CHILD SUPPORT REGIME

The Child Support Agency has been around for over 10 years. There continue to be problems with the Agency, both in calculations and in enforcement. The scheme provides a formula, and once ascertained, the Agency is supposed to collect the money and distribute to the household in which the child lives. Many people choose voluntarily or by agreed court order to pay at the CSA rate anyway. 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 (“NRP”) to the parent with care (“PWC”) is based on the NRP’s net income. For most people this will mean earnings after tax, i.e. NI and pension contributions are deducted. Dividends are included as income. If the NRP’s net income is £200 per week or more the rates will be:

15% of 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 NRP’s current family, including stepchildren, and will give reductions depending on the number of such children
of nights spent with the NRP (one night a week averaged over a year will be sufficient – ie 52 nights, to reduce the maintenance, 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.

Each case must be assessed individually depending on financial circumstances. A rough calculation can be made using the calculator on the CSA website. For a formal assessment contact CSA direct at www.csa.gov.uk