Changes to child maintenance

The new system of child maintenance is all about ensuring that parents who live apart understand their responsibilities and take appropriate action to provide financially for their children. Child Maintenance Options has been established to provide information and support to help parents choose the child maintenance arrangement which best suits their particular circumstances.

The Child Maintenance and Other Payments Act removed the compulsion for benefit claimants to use the Child Support Agency. Since October 2008, all parents have been able to choose either a private or statutory maintenance arrangement, according to their particular circumstances.

Also since October 2008, the benefit disregard level has been increased. Parents with the main day-to-day care who are claiming benefits are now able to keep up to £20 per week of any child maintenance payments before it affects their benefits. This enables more money to flow to low income families.

From April 2010, child maintenance will be fully disregarded when calculating all out-of-work benefits. This will allow parents with the main day-to-day care to keep every penny of their child maintenance payments, where maintenance is paid.

The Child Maintenance and Other Payments Act also establishes new and enhanced collection powers, which will supplement the Child Support Agency's existing powers. The new powers will come into effect from 2009/10 and will be deployed by the Commission to ensure that parents meet their financial responsibilities.

From 2011, the Commission will introduce a new statutory maintenance scheme (the future 'gross income' scheme), based on latest available tax year information from Her Majesty's Revenue and Customs. Using information from a single source is expected to reduce significantly the time taken to calculate child maintenance. The maintenance award will be fixed for a year unless income varies by more than 25%.