Child Maintenance
On the 28th July 2000 the Child Support, Pensions & Social Security Act was introduced. As from the 3rd March 2003 the Act is now Law. The Act changes the way the Child Support Agency (CSA) assess financial contributions that have to be paid by any non-resident parent. The non resident parent is the parent who has responsibility for the child for less number of nights than the parent with care. All non resident parents are obligated by law to pay child maintenance until the child is 17 or ceases full time education.
Before the CSA would use a complicated formula which would vary from case to case. Now a straightforward approach is taken based upon how much the non-resident parent earns, the number of applicable children, the number of nights staying contact the non resident parent receives, and the number of other relevant children. Generally income is considered after deductions for tax, National Insurance and pension contributions Providing the remaining income equates to £200 per week or more the following amounts are payable:-
- 15% of net income after deductions for one child.
- 20% of net income after deductions for two children.
- 25% of net income after deductions for three or more children.
If after deductions net income does not equate to £200 per week reduce rates will be applicable however these will be on a case by case basis. There is also an upper limit of £2000 per week net income. The above equation is applicable regardless of much the parent with care earns as their income is no longer considered. Housing costs, travel to and from work costs and the income of either parties partners are also not considered in the equation.
The new calculation will take account of any children in the non resident parent’s family including stepchildren which results in a reduction of the basics net income figure to be considered. There will be a further reduction of 15% for one child in the family, 20% for two children of the family and 25% for three or more children of the family. Once a child attains the age of 17 or ceases full time education they will no longer be considered in the equation.
The amount of child maintenance payable may be reduced further depending on the number of nights staying contact received with the non resident parent. There will be no reduction if the child/ children stay less than 52 nights per year. A reduction of one seventh will be made for 52-103 nights, two sevenths for 104-155 nights, three sevenths for 156-174 and 50% if 175 nights or more.
All parents on income support must involve the CSA in child maintenance. Parents who have agreed maintenance and had the agreement incorporated in a Consent Order can apply to the CSA for an assessment provided the Consent Order has been in force for 14 months. Now the new Act is in force you may wish to reconsider your position.