The DWP (Department of Work and Pensions) are a Government Department that replaced the Child Maintenance and Enforcement Commission (CMEC) in July 2012. CMEC took over the management of the Child Support Agency (CSA) in October 2008.
Parents do not have to approach the DWP/CSA to arrange maintenance payments, but can make arrangements privately between themselves. This is likely to be encouraged by future changes which will include charges for collection of payments and administration costs should parents seek the assistance of the DWP.
An agency exists to assist parents who wish to come to a private arrangement (the agency is part of the DWP), or who wish to switch from an existing maintenance arrangement (administered by the DWP) to a private arrangement. This agency is "Child Maintenance Options" who can be contacted via www.cmoptions.org.
When we enter the world of child maintenance, we have a new set of terms which are used for parents. The parent with whom the child(ren) live for the majority of time are known as the "Parent with Care" (sometimes abbreviated to PWC). The other parent is referred to as the contact parent (even if they have a shared residence order or are also named in a child arrangements order as a person with whom the children live). Just to confuse matters further, the CSA/CMEC will say the parents share care if the child(ren) stay with the other parent for one night a week or more regardless of whether a shared residence order has been made or whether they are named in a child arrangements order as a person with whom the children live.
For the purpose of this factsheet, we use the term "parent with care" and contact parent.
The main change in recent years came about on 12th April 2010. This change stopped child maintenance payments from affecting (or being offset against) benefits that the parent with care might have been receiving. The parent with care now keeps their benefits AND gets the child maintenance payments as an additional sum.
The current change is a move to the gross income method of calculating child support payments (CSA3... see Different Calculations) which happened in October 2012.
If using the DWP/CSA to collect payments, there are currently two calculation methods which may be used.
CSA1 was the original method of calculation of child maintenance. This used a complex formula of up to 108 pieces of information , taking into account the children´s ages, the contact parent´s income after various allowances, and finally deducting a portion of income to support the children.
A new payment calculation, CSA2, was introduced in March 2003. Payments were easier to calculate, and based on a percentage of net salary where income was £200 a week or more. A contact parent will pay 15% of their net salary for one child, 20% for two children, and 25% for three or more children. Deductions are made for the number of nights a year that the children stay overnight with the contact parent. If the children stay for 52 nights or more, 1/7th is deducted, 104 nights or more, 2/7ths etc. Deductions may also be made if you are supporting children in a new relationship.
For parents who earn between £100 and £200 a week, the calculations are as follows. They will pay a flat rate of £5, plus 25% of their net income for one child, 35% for two children; and 45% for three or more children.
Where income is between £5 and £100 a week, the contact parent pays a flat rate of £5.
Where income is below this, or where the contact payment is in full-time education, no payment is made.
CSA3 is to be the new method of calculation from October 2012, and will be based on gross rather than net salary.
Again, there will be the ability to reduce payments by 1/7th for each 52 nights the children stay with the contact parent, and child maintenance payments will not affect benefits (a change brought in, in April 2010). Deductions will still be able to be made for children in the contact parent’s new family (including step children).
The standard calculation will see contact parents pay 12% of their gross income for one child; 16% for two children; and 19% for three or more children.
If your pay is more than £800 a week, on the additional amount, you will pay 9% for one child; 12% for two children; and 15% for three or more children.
The maximum wage to be included in CSA calculations is to be raised from £2000 to £3000 a week.
The flat rate is to increase to £7 a week.
It is anticipated that parents who currently make payments under the old CSA1 and CSA2 calculations will be migrated to CSA3 over a three year period.
If you are making child support payments and have other children living with you (e.g. children from a new relationship or step-children), you are entitled to deductions in your CSA payments.
If one child lives with you, 15% of your net earnings will be removed from the CSA2 calculation. For two children, the deduction is 20%, and for three or more children, 25%.
Child maintenace payments currently last until the child leave full time (non-advanced e.g. university) education or until his or her 19th birthday. Legislation is set to increase this until the child is 20 years old, providing they remain in full time further education.
If your address changes, you must notify the DWP/CSA of the change of address within 7 days of moving.
If you have a deduction of earnings order made against you, you must also inform the DWP/CSA if you change employer, how much you expect to earn and your new payroll number (if you have one).
You must also inform them if your income changes, if you become unemployed, or start work after having been unemployed.
Failure to notify the DWP/CSA or providing them with false information can lead to a fine of £1,000.
Since 27th October 2008, parents with care who are on benefits (as well as those who aren´t) have had the choice to come to a private arrangement with the other parent for the payment of child maintenance. Before this date, a parent with care had no option but to use the Child Support Agency.
Separated parents have the option of making a "Family Based Arrangement" for child maintenance payments.
The DWP/CSA have a range of powers which can be used to collect payments.
They can take money directly from your earnings or benefits, take money from bank or building society accounts, and take action through the courts. If there are arrears, the maximum amount that can be deducted from earnings is 40% of your net salary.
Court action might result in the use of, or making of:
The DWP/CSA has additional powers which can include deductions of maintenance payments from bank accounts without the need to apply to court, and the recovery of arrears from the deceased’s estates.
New powers being introduced include:
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Michael Robinson © 2014
Family law information for parents whose children are resident in England and Wales
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