Special features
The CMS refers to non-resident parents as ‘paying parents’ and the parent with care as ‘receiving parents’. The CMS calculates child support payments based on a percentage of the paying parent’s gross weekly income. The percentage depends on the number of children the paying parent is paying for. This includes each qualifying child plus any other child that the parent has a family-based arrangement for. The gross income figure used is reduced to account for any ‘relevant other children’ – ie, a child for whom the paying parent or their partner gets child benefit.
The CMS charges the paying parent a 20 per cent fee in addition to each assessed amount of child support payment and the receiving parent pays 4 per cent of the assessed amount. There are no collection fees if the parties agree arrangements for the paying parent to make payments directly to the receiving parent (Direct Pay). To encourage Direct Pay, the CMS can advise about setting up a non-geographical bank account which has a central sort code and so does not give any information about the area in which the parent lives.
There are no set rules on how quickly child support arrears should be paid, although the CMS aims to clear arrears within a maximum of two years, at a rate of up to 40 per cent of the paying parent’s income. However, enforcement officers have the discretion to extend this period in appropriate cases. All decisions relating to the collection and enforcement of child support are discretionary and the welfare of any child affected must be taken into account. This includes if the paying parent has a child in a new relationship. A client experiencing hardship should contact the CMS with full details of their circumstances, including how the collection rate impacts their ability to keep contact with their children. There is no right of appeal against a discretionary decision. However, a complaint can be made if the parent feels that they have been treated unfairly or there have been unacceptable delays or other maladministration. It can be helpful to get the client’s MP involved. Complaints can be escalated to the Independent Case Examiner or the Parliamentary and Health Service Ombudsman.
If child support is being paid through the CMS’s collection service, it can consider taking enforcement action as soon as a payment is missed. If child support is being paid directly to the receiving parent by the paying parent, the receiving parent should notify the CMS if a payment is missed. Otherwise, the CMS will not be aware of this. If the CMS decides to take enforcement action, it will also start managing ongoing payments through its collection service (and charge collection fees).
To avoid enforcement action, the paying parent should contact the CMS as soon as a payment is missed to explain why and make arrangements to pay.
Before escalating to tougher enforcement action, the CMS has other options including collecting earnings direct from parents’ employers or different bank accounts. The first step in enforcement is usually to make a deduction from earnings order (see
here).
1s31 CSA 1991The CMS has the power to accept lump sum payments in full and final settlement of the arrears.
2s32 CMOPA 2008 If an offer in full and final settlement is accepted, the paying parent has no further legal obligation to pay the rest of the arrears. The receiving parent has to agree. However, the CMS will investigate the offer before putting it to the receiving parent. If it thinks the paying parent can pay and there is a reasonable chance of getting back all the arrears, the CMS will insist on them paying the full amount.
When fully in force, the Child Support (Enforcement) Act 2023 will see families paid faster as it gives the CMS the power to issue its own a liability orders to reclaim unpaid child maintenance.
3s2 Child Support (Enforcement) Act 2023