Child Support

Except in limited circumstances, the court no longer has the power to make Orders regarding maintenance payments for children: this is a matter for the Child Support Agency. The Child Support Agency will only become involved in a case where either parent has made an application to it for an assessment. The information below is still relevant even though the Child Maintenance and Enforcement Commission (C-MEC) was formed last July to replace the CSA.

The Agency rules specify that the non-resident parent should make a payment equivalent to 15% of his net weekly income (up to a maximum income of £2,000 per week) for one child, 20% for two and 25% for three or more children. At present there is a minimum flat rate liability for £5 per week for persons whose income does not exceed £100 per week or for those in receipt of certain benefits.

The amount payable reduces where shared care arrangements exist so that, for example, if a child spends between 52 and 103 nights each year with the non-resident parent the maintenance payable is reduced by one-seventh. These reductions are phased up to 176 nights or more per year in which circumstances only half of the sum assessable has to be paid.

In many cases the calculations can be highly complex so this short summary is intended as a basic survey only and appropriate advice ought to be taken before agreeing the amount to be paid.

Where the court retains power to make Orders (for example in the case of children whose secondary education has been completed, or where School Fees Orders are sought) the Judge will inevitably consider the CSA formula and the overall circumstances of both parties, as well as Section 25 factors, before deciding what Order should be made.

In the case of unmarried couples there are also other statutes which empower the court to make Orders of an income or capital nature, depending upon the circumstances of each individual case.

On the 24th July 2008 the Child Maintenance and Enforcement Commission was established.

The Commission (via the Child Maintenance Options Service) has an obligation to provide information and guidance to parents. The idea is to help parents to decide whether they want to remain within the statutory scheme or enter into a voluntary arrangement for child maintenance payments.

When operative there will be a new formula for calculating child maintenance payments and this will be by reference to the non-resident parent’s gross income – which will be provided directly to C-MEC by the Inland Revenue.

In the case of any parent whose gross weekly income does not exceed £800 the payments are calculated as follows:-

One child 12%

Two children 16%

Three or more 19%

Insofar as that parent’s income excess £800 any payments will have to be increased for income in excess of that figure by the following percentages:-

One child 9%

Two children 12%

Three or more 15%

Thus in the case of a non-resident parent earning £1,000 per week gross the amount payable for one child would be £96 (12% of £800) and £18 (9% of £200) making a total of £105 per week.

Any income in excess of £3,000 gross per week is ignored in which circumstances it will, as before, be possible for an application to be made to the Court for a top-up of maintenance.

There is a different formula where gross weekly income is less than £200.

If the non-resident parent has any children living with her or her then a deduction in the amount of maintenance payable can be made as follows:-

One child 15%

Two children 16%

Three or more 19%

Furthermore any payments will also be discounted, as under the current regime, in the event of there being shared care.

The definition of income remains the same so that unearned income ie. dividends will have to be dealt with within the variations regulations.

The existing regulations will remain in force regarding applications to vary on the grounds of special expenses and additional cases where the non-resident parent has assets in excess of £65,000, or where his income is not taken into account or has been diverted and where his lifestyle is inconsistent with stated income. However the plan is to reduce applications to revise payments unless there has been a fundamental change in circumstances eg. change in employment or change in income of more than 25%.

In or around 2010/2011 existing cases will begin to be transferred to the new scheme and new applications will be accepted into the new scheme. The transfer of existing cases is expected to take about 3 years.

As before the 12 month rule will remain in force which means that in the event of a Court Order being made for child maintenance payments neither party can make application to C-MEC for at least 12 months after the date of the Order.

Child Support Agency Information Service - 0845 600 6610

For those with a hearing impediment a text phone is available on 0845 600 2109

Lines are open 8 am to 8 pm Monday to Friday and 9 am to 5 pm Saturday

Written enquiries:
Child Support Agency
2 Western Road
Crewe
CW98 1BD

Website address www.csa.gov.uk (Great Britain) http://www.dsdni.gov.uk (Northern Ireland)