Child maintenance in the UK is changing. Here’s what you should know.
The Government has announced all child maintenance arrangements made through the Child Support Agency (CSA) are to be closed over the next three years.
The much maligned CSA is being replaced with the new and improved Child Maintenance Service (CMS).
In order to complete the transition the CSA’s existing 800,000-strong caseload will need to be shut down and parents informed how to make fresh child maintenance arrangements using the new scheme.
The Government predicts the process to clear the CSA caseload and replace it with the CMS will take until 2017/18, but could benefit as many as 50,000 children who may become newly eligible for maintenance payments under the improved system.
Winding down the CSA
The Department for Work and Pensions (DWP) will start winding down the CSA by writing to 150,000 parents.
The letters will detail when their existing case with the CSA is expected to close and provide advice about the next steps they should take to make new child maintenance arrangements.
It's starting with cases that are ‘nil-assessed’ – those in which the absent parent hasn’t had to pay maintenance because of their circumstances. Therefore parents that fall into this category may feel there’s no point in taking any action when they receive their letter.
However, the DWP is urging parents to consider their options as it may be that maintenance becomes payable through the new system or because of a change in the absent parent's circumstances.
Child Maintenance Minister Steve Webb said: “I would urge anyone who receives a letter from the CSA about their case closing to look carefully at the options, as they may be surprised at the support available to them.”
Child maintenance arrangements will continue as usual until the date CSA states in the letter – you'll usually be given six months' notice.
You must continue your payments if you’re a paying parent. Also you’ll still have to pay any arrears you owe, even after your child maintenance arrangement ends.
The new system for child maintenance
The new child maintenance scheme was launched in December 2012 and is operating alongside the CSA scheme until 2017/18.
It offers families two routes for securing child maintenance payments.
In the first instance it encourages newly separating or separated parents to come to an agreement on maintenance arrangements on their own.
This approach can be supported by using the free Child Maintenance Options service, which offers advice online at cmoptions.org.uk, over the phone (0800 988 0988) or in person.
But those unable to reach an agreement will be able to turn to the new Child Maintenance Service.
Using HM Revenue & Customs data it will bring speedier processing of applications, simpler and fairer calculations and faster more effective enforcement action for those that choose not to pay.
But this element of the new service comes with fees.
There will be a one-off £20 application fee (victims of domestic violence are exempt from this charge) to use the new Child Maintenance Service.
For the charge the CMS will calculate what an absent parent has to pay. From here parents can arrange to make these payments directly.
Or there is an option to pay further fees with the Government's Collect & Pay service. This involves the CMS calculating, collecting and paying maintenance on behalf of the absent parent. The paying parent will pay a 20% surcharge of the maintenance assessed and the receiving parent will pay 4% of the amounts received.
In either scenario the CMS will step in to enforce missed payments. Enforcement charges will range from £50 to £300 for the absent parent who has to be pursued.
For more information see www.gov.uk/csachanges.
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