Proposals for a new child maintenance scheme have been published. This scheme is proposed to replace the current basis of assessment by the Child Support Agency and will be implemented by way of the “Child Support Maintenance Calculation Regulations 2012” which are to complement existing CSA legislation.
These proposed regulations follow the Governments Green Paper published in January 2011 entitled “Strengthening Families, Promoting Parental Responsibility: The Future of Child Maintenance”. Supporting families to prevent relationship breakdown is central to the Coalition Government’s vision for strengthening families but where relationships do break down, the Government wants to enable parents to take responsibility in making their own choices to reach enduring agreements post separation which place the welfare of their children at heart.
The new Government scheme will be offered as a fall back for those parents who separate and cannot come to an agreement about payment of child maintenance. The Government claims that the new scheme will be fairer, faster and less costly to the taxpayer. The current scheme costs the tax payer 40p for every £1 a parent has to pay.
The regulations proposed include plans to increase the amount of maintenance paid by parents who are in receipt of state benefits, and also for those declaring receipt of a low income.
The Work and Pensions Minister, Maria Miller, said:
“The current system is failing too many children, so I am pleased that we are taking one step further today towards the introduction of a new scheme next year”.
The proposed regulations include:
- On line self service to enable users to see a history and schedule of their payments, to make payments and to view the progress of their application
- Annual review of maintenance assessments, but only if either parent can show that an assessment would be 25% different than a historic figure
- Payments to be based on the non resident parent’s latest tax year gross income, sourced directly from HM Revenue & Customs
- New rules in relation to “second families” to reduce the gap between financial support for children living apart from non-resident parents, and for children of “second families” living with non-resident parents
- Increases in the “flat rate” of child maintenance deductions from state benefits
- For those who share the care of their children exactly equally, parents will no longer be required to pay child maintenance through the scheme
- Lower percentage rates to reflect the move to use gross income, rather than net income. The rates proposed are 12% for one child, 16% for two children and 19% for three of more children (currently 15%, 20% and 25%)
The regulations are currently within a consultation period; the closing date for submission of consultations is February 2012.