The Government has been gradually phasing out the old Child Support Agency (CSA) and phasing in the new Child Maintenance Service (CMS), with all child maintenance arrangements made through the CSA due to cease by the end of 2017. All new claims are handled by the CMS. Any parents still dealing with the CSA will be informed in a letter of the date on which their particular child maintenance arrangements will end.
Application fees and enforcement charges were introduced by the CMS on 30th June 2014. As of 11th August 2014, any parents using CMS’s Collect and Pay service as a way of transferring child maintenance payments between each other also have to pay a fee in the form of a 4% deduction to the amount of payment, in addition to a 20% charge levied on the parent making the payment. These charges can be avoided if private arrangements are made to transfer payments, avoiding Collect and Pay. But if a parent fails to make direct payments, Collect and Pay (including its charges) will kick in.
Single parent families could lose £70 each year
According to single parent family charity Gingerbread, the 4% deduction would equate to a loss of £70.70 per year for each family receiving the average level of maintenance payment. Commenting on the new fee, Gingerbread chief executive Fiona Weir warned that “The government’s new charges will take money from children. Child maintenance makes a real difference to children’s lives and it is simply wrong for the government to take this money because their other parent has failed to pay when they should.” But she went on to say that “It’s really important that parents don’t let the charges put them off getting a child maintenance arrangement in place. Lots of parents can and do sort out maintenance between them, but it’s not always possible, and single parents shouldn’t be put off asking for help when they need it.”
Understand your legal position
Whether you are trying to understand your obligations or rights with regards to child maintenance payments, it’s important that you are aware of how the latest legal rules and regulations affect your specific situation. The friendly team of expert family lawyers at Crisp & Co can provide you with tailored advice, guiding you through the complexities of this area of law. Whether you’re in the early stages of a divorce or further down the line, get in touch to find out how we can help you.