Changes to child maintenance
Changes to child maintenance
The new system of child maintenance is all about ensuring that parents who live apart understand their responsibilities and take appropriate action to provide financially for their children. Child Maintenance Options has been established to provide information and support to help parents choose the child maintenance arrangement which best suits their particular circumstances.
The Child Maintenance and Other Payments Act removed the compulsion for benefit claimants to use the Child Support Agency. Since October 2008, all parents have been able to choose either a private or statutory maintenance arrangement, according to their particular circumstances.
Since April 2010, child maintenance has been fully disregarded when calculating all out-of-work benefits. This will allow parents with the main day-to-day care to keep every penny of their child maintenance payments, without it affecting their entitlement to benefit.
The Child Maintenance and Other Payments Act also established new and enhanced collection powers, which will supplement the Child Support Agency's existing powers. The new powers are coming into effect during 2009/10 and are deployed by the Commission to ensure that parents meet their financial responsibilities.
From 2011, the Commission will introduce a new statutory maintenance scheme (the future 'gross income' scheme), based on latest available tax year information from Her Majesty's Revenue and Customs. Using information from a single source is expected to reduce significantly the time taken to calculate child maintenance. The maintenance award will be fixed for a year unless income varies by more than 25%.
