Proposed New Child Maintenance System

The Child Support Agency (CSA) is being wound up and replaced by the Child Maintenance Service (CMS).

The current proposals are:

  • To impose an application fee to the CMS of about £20.
  • An ongoing deduction which may be around 7%. This will be paid by the parent with day to day care of the children.

The application fee will be waived if the applying parent has suffered domestic abuse and reported it to the police or a relevant agency. It appears that the ongoing deduction will be paid by all parents receiving child  maintenance.

Rolling out at the end of 2012 and during 2013.

The Department of Work and Pensions intends to roll out the process of opening child maintenance cases under theCMSscheme later this year for applications made by a parent with 4 children who have the same father. Most other families will come under the new scheme in 2013.

Government policy  favours encouraging direct payment by one parent to another. At present theCSAcan provide an assessment, but parents can agree for payments to be made directly without the involvement of the CSA in collection. Under the new scheme it is being proposed that if a parent fails to make a direct payment, they will have to pay a collection  surcharge of perhaps around 20% of the child maintenance payment.

Newnham and Jordan Solicitors based in Wimborne can provide advice on family law related matters. We offer a free initial meeting at a place and time convenient to you. We also offer competitive fixed fees for Divorce and Dissolution of Civil Partnership and Financial Orders. Or call us on 0845 680 7871 (local rate)

 

This article is intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Fiona Pawsey
Article by Fiona Pawsey
Fiona has been practicing family law for over 12 years initially as a Legal Executive and then subsequently as a solicitor. Fiona is a trained collaborative solicitor, as well as a Resolution Panel Member. She is experienced in advising clients going through divorce or family breakdown, including financial settlements and disputes over children, in particular complex contact and residence issues. In addition to family law Fiona also deals with litigation, property transactions and residential Conveyancing

Leave a comment