Two Schemes
There are two separate schemes of child support. There are basically two different mathematical  calculations which are used to calculate the amount of payments that are to be made by a non-resident  parent to a parent with care.

WHAT IS CHILD SUPPORT?
The Child Support Act 1991 (CSA 1991) and The Child Support, Pensions and Social Security Act 2000 (CSPSSA 2000) are the main sources of child support law in England & Wales. The Courts now have very  limited powers to make orders for child maintenance.

The basic principle is that parents have a duty to maintain their children even if they do not live with  them. This means that the non-resident parent must make maintenance payments which are calculated  and collected by the Child Support Agency (CSA) and then passed on to the parent with whom the  children live. Those receiving certain benefits will have no option but to apply to the CSA for an  assessment of maintenance from the non-resident parent.


THE OLD SCHEME
Those parents who already have a child support assessment calculated prior to 3 March 2003 must continue to follow the previous regulations and calculations set by the CSA1991.

The ‘old scheme’ started life as a relatively simple maintenance formula – but took account of the income of both parents. The scheme was almost universally unpopular and the Government gave into Pressure Groups and Ad Groups and Adverse Media comments and attempted to amend the formula. The formula developed to take into account a whole variety of individual circumstances including: -

A minimum ‘target figure’ for the support of the number of children in question. This was known as ‘the maintenance requirement’ and;
The income of both parties
The minimum cost of support of the parents in question
Their housing costs
The effect of any earlier capital settlement – e.g. on a divorce
Any disabilities
Their responsibility for earlier children
Shared care arrangements
Costs of travel to work

The initial formula was subsequently amended to take into account: -

Travel costs to exercise contact/access
Pre-separation debts
Costs of supporting other children
Capital settlements – e.g. on divorce
None income producing assets
Life style inconsistent with income
Unreasonably high housing costs
The income of a partner/ failure to contribute to housing costs
Unreasonably high travel costs

THE NEW SCHEME
The Government decided to amend the scheme to make it simpler. At the same time the Government decided to introduce a new computer system which was intended to make the process more efficient.

The new scheme was not designed to take account of the income of the parent with care: -

Comparison of ‘maintenance’ under the old scheme and the new scheme
Average maintenance assessment in the ‘old scheme’
Number of
Qualifying children
Average per week
in pounds
1 18.46
2 24.57
3 23.40
Compare this with the new average maintenance costs under the new scheme for claims made after the 3 March 2003 – or in respect of cases transferred to the new scheme.
Number of
Qualifying children
Average per week
in pounds
1 14.88
2 21.80
3 24.86

TERMINOLOGY
Parent – a biological or adoptive parent

Parent with Care (PWC) – the parent who has caring responsibility for the greatest number of nights

Non-resident Parent (NRP) – the parent who has caring responsibility for the smallest number of nights


HOW WILL MAINTENANCE UNDER THE “NEW SCHEME” BE CALCULATED?
Under the new scheme maintenance will be calculated on the basis of the NRP’s net income. Net income is calculated by deducting income tax.
National Insurance and pension contributions from the NRP’s gross income. Tax credits and occupational pensions can count towards weekly income.

Basic rate: For NRP’s whose income is £200 per week or more the rates payable are as follows:

15% of net income for  1 child
20% of net income for 2 children
25% of net income for 3 or more children

Reduced rate: NRP’s with a net income of less than £200 per week but more than £100 per week will pay reduced rates of maintenance. This rate is £5 a week on the first £100 of net income plus a percentage of the net weekly income over £100. The percentage used is different to those mentioned above.

Flat rate: NRP’s with a net income of £100 per week or less and those on certain benefits (including contribution – based or income-based Jobseekers Allowance, Income Support, Incapacity benefit, state retirement pension) will pay a flat rate of £5 per week.

Nil rate: NRP’s with a net income of less than £5 per week or who fall into certain specific categories such as some students, prisoners or some people living in residential care or nursing homes will pay no child support.

Variations: The calculation takes into account the NRP’s children from any new relationship or living with them in their current family. The NRP’s net income will be reduced as follows:

15% for 1 child in the current family
20% for 2 children in the current family
25% for 3 or more children in the current family


Sometimes it is possible to take in to account exceptional circumstances, and a parent (either a PWC or a NRP) could seek a variation of a maintenance payment either upward or downward. The calculation will not take in to account

  • The income of the PWC
  • The income of either parent’s current partner
  • Housing costs
  • Travel to work costs

Reductions for shared care: the amount of child maintenance will be reduced depending on the number of nights the child stays with the NRP

  • 52 to 103 nights - 1/7th reduction
  • 104 to155 nights – 2/7th reductions
  • 156 to174 nights – 3/7th reductions
  • 175 or more nights – 1/2 reduction

Maintenance will also be reduced by an additional £7 for each child the NRP looks after for 175 nights or more a year. Maintenance will not be reduced if the child stays with the NRP for less than 52 nights a year


FAILURE TO CO-OPERATE
It is a criminal offence to fail to provide information when the CSA needs it or knowingly to provide false information. Anyone who fails to co-operate in these circumstances risks being prosecuted and could be liable to a £1000 fine. If a NRP does not provide enough information to the CSA it can make them pay a rate of child maintenance based on the average amount for the number of qualifying children. A PWC who is on benefits and who does not cooperate with an assessment may have their benefits reduced.

AVOIDING THE NEW CSA
In some circumstances both parents can agree not to make an Application to the CSA – and to agree how maintenance is to be worked out between them. This is obviously satisfactory if both parents agree – but where a relationship breaks down, or if a parent with care is in receipt of most means tested State Benefits then an Application to the CSA will become unavoidable – since Courts have no jurisdiction in most cases to make any maintenance award.


Saturday 6 September 2008

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© Fyefield 2004