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Child maintenance article

Child Maintenance: A better choice for parents?

On 27 October 2008, the law relating to child maintenance was amended by the Child Maintenance and Other Payments Act 2008.

Prior to this date, any parent with care of a child and claiming benefits had to comply with the CSA to make their child maintenance arrangements.  However all parents now have the option of making voluntary maintenance arrangements for child maintenance with each other.

If the CSA, now called the Child Maintenance and Enforcement Commission ('CMEC') continues to make the child maintenance arrangements for a family, payments will now be made directly to the parent with care rather than through Job Centre Plus.

The way in which child maintenance is calculated has changed.  The new scheme bases its maintenance calculation on gross weekly income rather than net weekly income.  Accordingly, a new two tier arrangement has been introduced as follows:-

  • For non-resident parents earning up to £800.00 per week gross income, 12% for one child, 16% for two and 19% for three or more children.
  • For higher rate tax payers with gross weekly income between £800.00 and £3,000.00, 9%, 12% and 15% respectively.
  • For relevant other children the reduction of gross income before calculation remains, across all incomes at 12%, 16% and 19%.

Further changes include an increase from £10 to £20 for the amount of maintenance a parent can retain before it impacts upon their benefit entitlement.  However, it is envisaged that from April 2010, maintenance will not affect the receiving party's benefits in any way.

There is much debate over whether the changes are going to produce a positive impact for families or not. Greater choice and freedom for parents to make and meet their own child maintenance arrangements should free up time and resources for the CSA to collect payments from those parents unwilling to meet their responsibilities to their children.

If you require further advice or assistance, please contact the Family Department at Higgs & Sons by calling 01384 342100.

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