how much will I have to pay

Information about Child Maintenance Information

How Much Should I Pay?

The Government has introduced the Child Maintenance Service (CMS) to take over from the Child Support Agency. Most parents can make arrangements between themselves to ensure their children are supported financially. Often the question of how much should I pay comes up. The CMS can be used to calculate this figure (link below) and the parents can agree to make and receive payments to support their child/ren. There is a one off £20 fee for use of the calculator. If you both agree to the amount then Direct Pay can be used. Either parent can choose Direct Pay without needing the other’s consent.

The Suggested Minimum Amount

CMS gives a suggested minimum amount and many paying parents[1] pay more because they know, for example, the housing costs of the receiving parent[2]. Many paying parents also pay for one off school trips, school shoes coats and general uniform and of course for treats and gifts for birthdays and holidays.

When Problems Occur with Maintenance Payments

Problems occur when payments are not paid or circumstances change. Using the CMS’s collect and pay service reduces the available amount of money available to the receiving parent to use to support the child by 4% and the CMS add an additional 20% to the amount the paying parent pays.

The example below of £100 may be helpful.

The Receiving parent receives £100 per month reduced to £96
The paying parent pays £100 per month increased to £120
The CMS keeps £24 for managing the transfer

Maintenance From a Child’s Perspective

A child only has the parents to support it financially. If the CMS has to collect the money the child looses 24% of the available financial support. Whether it is a bit less for the receiver, making paying the bills tight, or, a fifth less for the payer who will not be able to afford any extras or holidays etc. for the child. It is vital that parents find a way of working out how to support their children financially between themselves. No one wants to pay the government 24% of the money they have for their children. Mediation can manage the discussions and help parents find a way of keeping more of what they have.

Maintenance as Children Get Older

Parents know their children and help to support them through the decisions they make in life. There have been changes in the provision of child benefit. As a result parents of young people in this age group who are in full time education[3] are eligible up to the child’s 20th birthday. Many parents with children of these older ages recognise their children’s maturity and allow them to handle more of their finances. For those parents who have to have their case managed by the CMS (or still by the CSA) the upper age limit for child maintenance is the child’s 20th birthday.

Useful Links

www.gov.uk/calculate-your-child-maintenance
www.gov.uk/arranging-child-maintenance-yourself

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[1] The paying parent doesn’t have day-to-day care of the child
[2] The receiving parent has main day-to-day care of the child
[3] More than 12 hours supervised study or course-related work experience