J – United Kingdom

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Part 1: Description of the Child Support Model

A. Introduction

Over the past 30 years the United Kingdom (UK) Child Support Model has undergone a number of changes both to their legislation that sets out how child maintenance412 is to be determined and the administrative body mandated to calculate and enforce child maintenance413 (child support) agreements.

Following the enactment of its child support legislation in 1991 entitled the Child Support Act, 1991,414 the UK created the Child Support Agency (CSA) in 1993. The purpose of the CSA was to ensure that parents living apart from their children contribute towards their expenditures by paying child maintenance. This was achieved by ensuring that child support amounts were calculated by using a standardized process and that the relevant payments were made in a timely manner through an enforcement mechanism.415

The 1991 Act provides that each parent of a qualifying child is responsible for maintaining the child. For the purposes of this Act, an absent parent shall be taken to have met their responsibility to maintain any qualifying child by making periodic payments of maintenance with respect to the child of such an amount, and at such intervals, as may be determined in accordance with the provisions of this Act.416 As well, where a maintenance assessment made under this Act requires the making of periodical payments, it shall be the duty of the absent parent with respect to whom the assessment was made, to make those payments. Finally as a general principle, the Act states that “Where, in any case which falls to be dealt with under this Act, the Secretary of State or any child support officer is considering the exercise of any discretionary power conferred by this Act, he shall have regard to the welfare of any child likely to be affected by his decision.”417

Since 1993, several changes have been made to both the legislation to determine child support but also to the administrative mechanism mandated to calculate and enforce a maintenance payment.418 Most recently in 2012, a new child support system was introduced. Changes were made to the formula to calculate child maintenance, to make it simpler and fairer and the Child Maintenance Service (CMS) was introduced, now the responsibility of the Department of Works and Pensions.419 The CMS replaced the Child Support Agency, which was beset with well-documented problems.

It is worth noting that, in Northern Ireland the administration of child support is a devolved matter. While they run a broadly similar scheme as the rest of Great Britain, the legislation, and responsibility for delivering the Child Maintenance Service in Northern Ireland is the responsibility of the Northern Ireland executive.

Although an overview of the major changes to the UK Model are outlined in more detail in Part 3 of this Summary, it is important to note that the 1991 Act sets out primary law which provides for the current UK Child Support Model. It has been amended over time, and new regulations introduced which set out how the scheme operates.

The UK Child Support Model is called a “fixed percentage model” as it requires the application of pre-determined percentages that take into account the number of children and the gross income of the paying parent420. It does not require the income of the receiving parent421 with whom the children reside. Depending on the case circumstances, the formula incorporates additional calculations that take into account other children the paying parent is responsible for, as well as the amount of time (over a certain threshold) that is spent with any child for whom maintenance is sought.

The 2012 statutory formula for the determination of child maintenance requires information on:

• The gross weekly income of the parent who must pay maintenance;
• The number of children for whom maintenance is being sought (referred to as qualifying children);
• Whether the parent who pays maintenance has other children for which the paying parent or their partner receives a Child Benefit (referred to as relevant other children); and
• Whether the parent who pays maintenance shares the care of the children.

There are five “rates” of maintenance that correspond to the social and/or financial circumstances of the paying parent. Each “rate” corresponds to the paying parent’s gross weekly income, and where there is sufficient income, the percentages of income are based on the number of children.

B. How can Parents Obtain a Child Support Award?

Today in the UK, parents have three options to arrange child support (maintenance). They can opt for:

1. Family-based child maintenance arrangements. Provided that both parties agree to this option, it is regarded as the quickest and easiest way to arrange child maintenance and is encouraged by the CMS.422 Parties have the option to use the guidelines and formula as a reference point – or not. However, these agreements are not legally binding and therefore cannot be enforced in a court of law. Parties, however, still have the option to obtain a court order from the courts. These are formal agreements made by the parents and approved by the court. In these cases, after a 12-month period, either parent can apply to have their case transferred to the CMS.423
2. Use of the 2012 government scheme. The Child Maintenance Service (CMS) is open to all new applicants who are unable to make a family-based arrangement. All cases under legislation prior to 2012 (notably under the 1993 and 2003 Schemes) continue under the former Scheme rules and are administered by the older Child Support Agency. To have their case administered under the 2012 Scheme, parents must close their former case and reapply to the CMS. By 2020, it is expected that the Child Support Agency will be closed.424 Although parents can apply to use the services of the CMS, a fee structure has been put in place to encourage parents to agree to child maintenance amounts between themselves.425 Furthermore, parents are required to participate in a Maintenance Options program prior to applying to the CMS.
3. Seek a Court order for maintenance. In the United Kingdom, the government discourages parents from using the court system to obtain a child support order as shown in 1) and 2) above. However, in rare cases in which parents have obtained a divorce order through the court system they may also have a child support determination included in the order. As well, the court system is also used in cases where parents do not qualify for entry into the CMS. This is usually because:
   • One of the parties resides outside of the UK;
   • Family violence may be an issue;
   • There are extra expenses that the CMS will not be able to take into account when making a maintenance calculation such as expenses to cover education or the extra costs of a child's disability; and
   • The paying parent has a very high income and the custodial parent is seeking more maintenance than would be awarded under the CMS calculation.426

In addition, receipt of child maintenance does not affect the eligibility or the level of social benefits that a receiving parent is entitled to. This applies to all child maintenance payments regardless of how they are determined, such as family-based arrangements, statutory child maintenance arrangements and court orders.427

C. How the Formula Works

The CMS provides information on their website to help parents understand the guidelines and to assist them in determining a child maintenance amount based on their family circumstances. As well, they have developed an online Child Maintenance Calculator.428 Various tables of percentages, based on the income level of the paying parent and the number of qualifying and relevant children, must be consulted to complete the necessary calculations.

The current UK formula is essentially a six-step calculation.429 Below is a high-level summary of the steps. However further details on the components of the calculations and the necessary tables to be consulted are contained in Part 2 of this Summary.

Step 1 - Determine the annual taxable gross income of the paying parent

Once this amount is ascertained the amount is converted to a weekly gross income amount.

Step 2 - Determine the factors that may reduce the payer’s income

From the annual taxable gross income of the paying parent, two adjustments may be made to reduce the gross weekly income available for support, when applicable. These are: amounts for any pension contributions and the number of other relevant children the paying parent supports in their household.

Step 3 - Determine which of the five-child maintenance rates is to be used based on the income level of the paying parent

In this step, based on the income of the paying parent, one of five tables is consulted.

Step 4 - Determine the number of qualified children for whom the paying parent must pay maintenance

Step 5 - Calculate the weekly child maintenance amount

This requires the application of the rate determined in Step 3, to the gross income of the paying parent, based on the number of qualifying children.

Step 6 - Adjust the weekly child maintenance amount depending on the average number of “shared care” nights a week

Please see Part 5 for an example of a case scenario that describes the above noted steps using simulated case information.

This process is repeated annually on an ‘annual review date’ to ensure that the maintenance calculation is up to date and reflects the parents’ circumstances. Certain other changes can be made at any point in the life of a case.

Part 2: Elements of the Child Support Model

A. Data Sources Used to Determine Expenditures on the Children

How are expenditures for the child determined?

The calculation represents an amount of money that is broadly similar with the amount that a paying parent would spend on the child if they were still living with them.

There is information concerning the rationale for setting the percentages of income that are used to calculate a liability within each of the bands (see below); they are based on a model for the average cost of raising a child. The White Paper “A New Contract for Welfare: Children’s Rights and Parental Responsibilities” (published July 1999) states:430

We believe children should come first. Parents who live together expect to meet their children’s needs first – and this applies equally where parents have separated. This means that non-resident parents should plan their lives on the basis of the income that they have after meeting their responsibilities to their children.

It uses the example of 15% for one child on the Basic rate. That 15% is explained as “roughly half the average that an intact two-parent family spends on a child”. The main citation is the study “Small Fortunes: spending on children, childhood poverty and parental sacrifice” (Middleton et al, 1997).

How are the expenditures reflected in the formula calculations?

The expenditures for the child are reflected as a percentage of a parent’s gross income and represent their “share” of those expenditures.

B. Approach Used to Apportion the Amount that the Two Parents will Share

As indicated earlier, the model in the UK is based on a fixed percentage model, with only the income of the paying parent being used to calculate the amount of child maintenance to be paid.

There are five “rates” that are based on the paying parent’s financial circumstances.431 This ‘banded’ approach was first adopted in 2003 and was subject to public consultation in 1998 / 1999. The stated policy rationale for adopting the system was to reduce the considerable complexity of the previous system, make the calculation more stable overall and easier for clients to understand. This method was maintained in the new scheme introduced in 2012. The following describes each of the five rates:

1. The nil rate – the paying parent is not required to pay maintenance in cases where they are:
   • A prisoner;
   • A child under 16 (20 if in school);
   • A 16-to-19-year-old who has left school but is registered for certain types of government-approved training courses;
   • Aged 16 or 17 and you or your partner is getting Income Support or some form of financial allowances/assistance from the UK;
   • Residing in a medical or assisted living facility; and
   • Gross income is less than £7432 a week.
2. The flat rate – the paying parent is required to pay a flat maintenance amount of £7 a week, regardless of the number of children for whom maintenance is being sought as well as the number of children in either household, in cases where they do not qualify to pay the nil rate and:
   • Their gross weekly income is less than £100 a week; and
   • They or their current partner receives social or unemployment assistance, or pension benefits from the UK.

As well, in these cases, if the paying parent’s current partner also has to pay maintenance at the flat rate for their maintenance obligations and either the paying parent or the partner receives one or more of the various income supports from the UK government, then both parties are only required to pay half of the flat rate – £3.50/week.

3. The reduced rate – The paying parent pays a reduced rate if their weekly gross income is more than £100 but less than £200. The rates vary depending on the number of qualifying children the paying parent must pay maintenance for.
4. In situations where the paying parent has no other relevant children to support, the reduced rate is calculated as follows:
   • £7 for the first £100 of weekly income; and
   • Then a fixed percentage or “rate” is applied to the remaining income between £100 and £200.

5. Basic rate433 and “basic rate plus”434–The paying parent must pay these rates if they do not qualify to pay the nil, flat, default or reduced rate. They also must have a gross weekly income of more than £200 but less than £3,000 per week. The rate to be paid varies on the number of qualifying children.435

6. Default rate – This rate is used when the CMS does not have sufficient income information to make a calculation. In these cases, the default rate is £39 per week for one child, £51 per week for two children and £64 per week for three or more children.

C. Accompanying Policy/Legislation (Rules)

i) Determination of income

The starting point for the calculations under the UK model is the annual taxable gross income of the paying parent. Income is defined as earnings from employment, self-employment declared to HMRC, occupational or personal pensions and other benefits.436 Gross income means income before any tax or national insurance or pension contributions are deducted.

The income information is requested from HMRC automatically, where the CMS is provided the gross annual income figure for the paying parent’s most recent complete tax year in the last six years - this is referred to as ‘Historic Income’.

Where a paying parent’s actual income at the time of the calculation is different from the figure received from HMRC, the parent can request to be moved to a ‘Current Income’ calculation, provided the figure is at least 25% different than the figure received from HMRC (or the CMS was unable to request a figure). Once evidence of the income has been provided the calculation will be based on that figure until the annual review date.

If a paying parent’s income decreases before the annual review date, a parent can request a change to ‘Current Income’ at any point during the year, provided the change is at least 25%.

Deductions from income

• Contributions or payments made to a personal or occupational pension scheme are deducted when calculating the available gross income.
• The CMS also has the discretion to either adjust the weekly amount of gross income to be used in the calculation if there is evidence of additional income, or reduce it if there are work related costs or expenses that a paying parent must incur. Either party can apply to have these adjustments considered by the CMS via an application.437
• A paying parent may request that the CMS take certain special variation expenses438 into account. These are called a variation from the maintenance calculation and can reduce the paying parent’s gross income. Depending on the type of expense and its periodicity, the paying parent’s income may be adjusted accordingly. An application for a special variation expense may be made for:
  • The cost of keeping up regular contact with a child a parent is paying child maintenance for – for example, the cost of fuel to travel to the child’s home (must be at least £10a week),
  • Costs connected with supporting a child with a disability or a long-term illness who lives with the paying parent or their partner,
  • Repaying debts from a former relationship, e.g. repaying a car loan for a car the receiving parent has kept (must be at least £10 a week),
  • Boarding school fees for a child or children that qualify for child maintenance but only the everyday living costs or ‘boarding’ part of the fees (must be at least £10 a week) and,
  • Making payments on a mortgage, loan or insurance policy for the home that the paying parent and receiving parent used to share – the receiving parent and the child or children must still live in the home and the paying parent must have no legal or ‘equitable’ interest in it (must be at least £10 a week).

A paying parent is not entitled to request a variation from the maintenance calculation if their gross income is less than £7 a week or if they are in receipt of social benefits.

Dependent Children

As mentioned above, the calculation of child maintenance allows a deduction from a paying parent’s gross income when they have relevant other children.439 However, the reduction only occurs if the paying parent’s weekly income falls into one of two “rates”:

1. if their income falls between £100 and £200 per week, the reduced rate, then the following table of percentages applies:

2. if their income falls between £200 and £3,000 per week, the basic rate, then the following percentages apply:
   • 11% where the non-resident parent has one relevant other child;
   • 14% where the non-resident parent has two relevant other children; and
   • 16% where the non-resident parent has three or more relevant other children.440

ii) Income attribution

If the paying parent does not provide sufficient income information and if the information cannot be obtained from the paying parent’s tax records, then a Default maintenance decision will be made. The following amounts will then apply:

• £39 a week for one child;
• £51 a week for two children; and
• £64 a week for three or more children.

It is important to note that these amounts are weekly totals and not an amount ‘per child’.

iii) Impact of custody and parenting time

A key component of the calculation is an adjustment to the maintenance amount if the qualifying child resides overnight with the paying parent at least one night per week, on average per year. This is referred to as shared care. There are four “shared care bands” that determine the amount of the reduction to the child maintenance amount:441

• 52-103 nights: results in 1/7th reduction;
• 104-155 nights: results in 2/7th reduction;
• 156-174 nights: results in 3/7th reduction; and
• More than 175 nights: results in a 50% reduction.

There is no reduction in maintenance amounts if the child resides with the paying parent for 51 nights or less per year. As well, if evidence is provided that the day-to-day care is shared equally between the two parents, then the paying parent does not pay maintenance for the child.442

iv) Additional expenses, special expenses for medical, school, etc.

Adjustments for special expenses are detailed above in the section pertaining to the determination of income.

v) Concept of undue hardship

Adjustments for the concept of “undue hardship” (e.g. additional expenses, debts, etc.) are considered as “special variation expenses” and if approved, are deducted from the paying parent’s income.

vi) Other circumstances that could be considered that may result in a variation to the formula amount

Mandatory reconsideration is permissible under the current 2012 scheme if either parent is of the view that the child support decision made by the CMS is wrong. Should either parent not agree with the decision emanating from this reconsideration, an application would be required and the case would then be referred to the courts.

vii) Annual Review443

An annual review of each child maintenance case is completed by the CMS and occurs every 12 months based on the anniversary date that the paying parent was advised that there was a child maintenance application. The purpose of the review is to ensure that the maintenance amount reflects the most recent income information available for the paying parent.

Thirty days prior to the annual review date, CMS obtains the latest available gross income information given to HMRC by the paying parent, their employer or a third party (such as their accountant). CMS will also verify if the paying parent is in receipt of social benefits.

Both the paying parent and the receiving parent are informed in writing twenty days prior to the annual review date to advise them of the recalculation and the decision that has been taken by CMS. Both parties have 20 days to provide additional information that will then be used by CMS to reconsider their recalculation.

The annual review date decision lasts until the next annual review (that will take place 12 months later) unless there are significant changes that are brought to the attention of the CMS prior to that date.

viii) Other considerations

Age of the child: Maintenance terminates when the child reaches 16 (or 20 if they're in full-time education).

Minimum support: See information on “rates” above in Part 2.

Maximum support: There is no maximum amount of support to be paid. However there is an upper limit (£3,000) on the amount of weekly gross income that CMS can consider in their calculation of child maintenance. If the paying parent’s gross weekly income is more than £3,000, the receiving parent may apply to the courts for extra child maintenance.

Part 3: Summary of Key Changes to the Child Support Guideline Legislation

A. Overview of the Changes

1991 and 1993

In the 1990 White Paper, Children Come First,444 the establishment of a formula-based system for the assessment of child maintenance was proposed. This represented a significant break with the past, for prior to this, matters of child support had been a matter of family law, and hence fallen under the jurisdiction of the courts. Their administration had thus been discretionary and characteristically variable. Under the 1990 proposals the calculation of child maintenance would in future be standardized and consistent, while the administration of the system - in other words, the assessment, collection and enforcement of child support would be the responsibility of a bureaucratic arm of the Department for Social Security: the Child Support Agency (CSA).445

In 1991, the Child Support Act 1991446 was introduced following previous years of several major pieces of legislation that started to codify the requirement for financial assistance from fathers, regardless of their marital status or relationship447. The purpose of this Act was to enforce the requirement that all parents who were liable to pay support to their partners were required to do so.

In 1993, to assist in the enforcement of the Act, the CSA was created.448 The CSA had fairly wide sweeping powers that ranged from applying a complex formula to determine the appropriate child support award, to enforce the maintenance of child support payments through various means including an “attachment of earnings” that could result in a deduction of the child maintenance award at the source of income.449 The formula underlying the guideline and contained in The Child Support Act 1991 was very complex and could only be determined through the use of technology and a sophisticated computer system.450

2003

The government introduced reforms in 2003 that were designed to simplify the formula used to determine child support/maintenance amounts, to create new enforcement powers and to improve the services provided by the CSA.451

These reforms were introduced as a result of significant public backlash including:

• Concerns about the complexity of the formula;
• No apparent increase in the proportion of lone mothers receiving child support payments; and
• Criticism that the bureaucracy of the CSA was unwieldy resulting in a significant backlog in the processing of applications for child maintenance.

The 2003 formula was a “fixed percentage model” and child maintenance was established as a percentage of the non-resident parent’s net income. As with all fixed percentage models, it varied with the number of children and it did not take into account the income of the receiving parent. It was introduced to replace a more complex and sophisticated formula in the hope that by simplifying the process, more parents would receive child support. The fixed percentages introduced were: 15 per cent for one child, 20 per cent for two children, and 25 per cent for three or more children. The application of the percentages was based on the net income of the paying parent.452

Following further public outcry as a result of an ever increasing backlog of child support claims, errors in calculations, high administrative costs, as well as concerns that the policy underpinning the guidelines did not keep up with the changing family structures, new reforms came into force in 2008.453

2008454

The Child Maintenance and Other Payments Act 2008 (c. 6) came into effect and included the following changes:

• The creation of The Child Maintenance and Enforcement Commission (the Commission) to undertake administration and enacting of regulations under the Child Support Act 1991.
• The calculation of maintenance by:
  • Changing to the use of gross income as opposed to net income as the starting point in the formula calculations using HM Revenue and Customs (HMRC) gross income data. Tax credits are no longer included as income, however pension contributions are still deductible.
  • Changing the basic (percentage) rates that are applied to the gross income of the paying parent to:
    • 12% where the non-resident parent has one qualifying child; 16% where the non-resident parent has two qualifying children; and 19% where the non-resident parent has three or more qualifying children.
    • If the gross weekly income of the non-resident parent exceeds £800, the basic rate is the addition of the amount found by applying the percentages above to the first £800 of that income and the following percentages to the remainder — 9% where the non-resident parent has one qualifying child; 12% where the non-resident parent has two qualifying children; and, 15% where the non-resident parent has three or more qualifying children.
    • Consideration in the formula calculations for other non-qualifying children: if the non-resident parent also has one or more relevant other children, gross weekly income is reduced by the following percentage: 12% where the non-resident parent has one relevant other child; 16% where the non-resident parent has two relevant other children; and, 19% where the non-resident parent has three or more relevant other children.
    • Increases to the flat rate and minimum amounts of liability. The basic amount increased from £5 to £7— (minimum amount of liability in the case of reduced rate).
    • Weekly income: amount increased of the upper limit for Basic Rate Plus from £2,000 to £3,000.

2012455

Though the changes in 2012 did not address the child support formula itself, a new Child Maintenance Service (CMS) was introduced, along with a new child maintenance scheme. The CMS is delivered through the Department for Work and Pensions in Great Britain and separately, the Department for Communities in Northern Ireland.

There are several key features that were introduced in 2012 that are worthy of note:

• A new Agency, called the Child Maintenance Service (CMS), was created and replaced the CSA as the administrative body responsible for implementing the 2012 reforms.
• Greater emphasis was placed on the benefits of parents arranging their own maintenance payments, promoting the option of Family-based Arrangements.456 This was partly accomplished by charging a fee to use the services of the CMS.
• Allowances were introduced for children living with the paying parent, children for whom maintenance is payable, and shared care arrangements made between the parents.
• The formula does not allow for consideration of any other factors in its calculations such as add-ons for other expenses for the children. These expenses include childcare, medical and school costs as well as extracurricular activities. These expenses are NOT included in the assessment completed by the CMS. However, should parents opt to arrange their own private agreement or seek a court order, these expenses may be considered.
• To assist parents in conducting their own “formula assessment” to determine a child support amount, an online calculator tool was made available as well as several workbooks and online aids.457
• In cases where a government scheme is being used, all child maintenance orders get reviewed and updated by the CSA 12 months after the commencement date of the order.458
• To ensure a more efficient and streamlined assessment, the CMS obtains all income information from HRMC. Her Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wages.459 This was a key feature of the 2012 changes and allows the CMS to quickly obtain up to date and accurate income information as well as conduct the annual assessments.

There are three statutory child support schemes that operated under the Child Support Act 1991. Two of the schemes reflect child support legislation that came into effect in 1993 and 2003. These legacy schemes were closed to new applicants and the CMS began receiving a small number of new cases in December 2012 and took on all new applications from November 2013. The process of closing existing CSA cases was completed in December 2018. Cases are not directly transferred between schemes: the CSA case is closed and a new application, if necessary, is made to the CMS regime.460

B. Overview of leading case law on the child support model

There is no case law that has had a major impact on the UK child support model.

Part 4: Summary of the Literature that Assesses the Model

A long history of concerns about the manner in which child support has been administered in the UK exists in the literature. The literature written prior to the changes introduced in 2012 can be briefly summarized into three categories:

1. The administrative mechanism (CSA) did not function well.461
   • Inexperienced staff, lack of a service culture.
   • Assessments were not accurate and there was a significant backlog in caseload (well over 11 million cases in the system) resulting in clients amassing arrears before an award was made.
   • Lack of proper IT systems to manage the increasing caseload and failures in the management of the procurement of new IT systems.462
2. Underlying policy flaws.463
   • Paternity issues weren’t addressed, resulting in loopholes (no requirement for DNA testing).
   • The inability to enforce orders, resulting in millions of dollars of maintenance awards that were not being paid or collected. As a result the number of parents coming out of poverty as a result of receiving maintenance, did not increase.
   • There was no incentive to pay maintenance, as the child benefit/social assistance amounts if the paying parent was in default, were often higher than the maintenance amount.
   • There was a view that the formula created winners and losers as only the income of the paying parent was taken into account.
   • The model did not recognize other children that the paying parent may have been supporting. As well, it didn’t reflect the changes in parenting arrangements and family structure – shared parenting, second families etc.
3. Complexity of the formula itself464
   • Formula calculations were impossible to comprehend without the use of online systems.
   • Use of net income as the starting point resulted in confusion about what deductions were admissible causing complexities in the calculations.

At the same time as the 2012 reforms to the UK’s Child Support Model, the Nuffield Foundation surveyed the British public about “how much should the state calculate that a paying parent should pay?”465 Some of the findings were:

• On average, the amounts that the public thinks the law should require non-resident parents to pay are higher than those set by the current statutory child maintenance formula;
• Like the statutory formula, the public would require non-resident parents who earn more to pay more in child maintenance. But, unlike the statutory formula which uses a fixed percentage to calculate maintenance obligations, the public adopts a more redistributive approach, with higher-earning parents paying a higher percentage of their income in child maintenance; and
• Overall, the public would require child maintenance amounts that go further than the current statutory formula in reducing living standard differences between the households of separated parents.

Part 5: Case Scenario Using the UK Guideline

The UK online calculator does not provide an illustration of the step-by-step calculations. Consequently, the following section illustrates how the formula would be applied using a specific case example.

The six steps – an example

Stephen is a paying parent with two children who qualify for child maintenance. Each child has a different parent who is eligible to receive child support from Stephen. The two parents are named Nicola and Sue. Stephen also supports one other relevant child. As well, his gross income is different from the tax records. In addition, he pays into private pension scheme.

Stephen has shared care of the child who lives with Nicola for 115 nights a year. The second child resides with Sue and Stephen does not have shared care of this child.

Step 1 - Gross annual income

Information obtained from HM Revenue & Customs indicates that Stephen’s gross annual income for the tax year 2011/12 is £70,000.

However, Stephen provides proof that his current gross annual income is actually £30,000. Because there is at least a 25 percent difference between the two amounts, the lower figure is used by CMS in the formula calculation to determine his child maintenance amount.

Step 2 - Deductions from income

Reduction for private pension payments

Stephen provides proof that his yearly payments into a private pension are £3,000. His gross annual income figure is therefore reduced by this amount to £27,000.

There are no other factors that reduce Stephen’s income calculation. The next step is to convert Stephen’s gross annual income figure of £27,000 to a weekly amount. (Divide £27,000 by 365, and then multiply the result by 7).

Stephen’s gross weekly income is therefore £517.81.

Reduction for other children the paying parent supports

Because Stephen has one child for whom he receives a Child Benefit, his gross weekly income of £517.81 is reduced by 11 per cent.

This works out to be a reduction of £56.96.

This means the new amount of gross weekly income used to calculate Stephen’s maintenance after the reduction is £460.85.

Step 3 - Child maintenance rates

The amount of Stephen’s gross weekly income after Step 2 is £460.85. This means the Basic rate is used to work out his payments.

Step 4 - Number of Qualifying Children

Stephen has two children who he must pay child maintenance for.

Step 5 - Weekly amount of child maintenance

Because Stephen has two children who he must pay child maintenance for, he pays 16 per cent of his gross weekly income after Step 2 as child maintenance. 16 percent of £460.85 results in a weekly amount of £73.74. This is the weekly amount of child maintenance that Stephen must pay before shared care arrangements are taken into consideration.

Step 6 - Shared care

One of the children Stephen pays child maintenance for lives with Nicola. The other one lives with Sue. Stephen has shared care of the child who lives with Nicola for 115 nights a year. To determine the shared care reduction, Stephen’s weekly amount of maintenance (£73.74) is split between the two children he pays child maintenance for. This results in a weekly amount of £36.87 for each child.

To take shared care into account, the amount of child maintenance Stephen pays for the child who regularly stays overnight with him, is reduced.

Stephen has shared care of one child for between 104 and 155 nights a year. Because of this, the reduction for shared care of that child is 2/7ths of £36.87. This results in a deduction of £10.53.

As a result, Stephen’s total weekly child maintenance payment after all six steps is £63.21. (Subtracting £10.53 from £73.74 - which was Stephen’s weekly amount of child maintenance derived in Step 5).

From this total, Nicola would receive £26.34 each week after the reduction for shared care. Sue would receive £36.87 each week.

Appendix A: References

Armes, Angela. “Child Support Act.” Law & Parents. July 25, 2017. http://www.lawandparents.co.uk/child-support-act.html

Bryson, C., Ellman, I. M., McKay, S. and Miles, J. Child Maintenance: How Would the British Public Calculate What the State Should require Parents to Pay? London: Nuffield Foundation, 2015. https://www.nuffieldfoundation.org/sites/default/files/files/Attitudes_maintenance_v_FINAL%282%29.pdf

Centre for Public Impact. “The UK’s Child Support Act.” https://www.centreforpublicimpact.org/case-study/child-support-act-uk/

Child Maintenance and Enforcement Commission. The Child Support Maintenance Calculation Regulations 2012: A Technical Consultation on the Draft Regulations. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/220379/cmec-maintenance-calculation-regulations-2012-technical-consultation.pdf

“Child Support Agency: What is the Child Support Agency?” Politics.co.uk. https://www.politics.co.uk/reference/child-support-agency

Child Support Solutions. https://www.childsupportsolutions.co.uk/

NACSA. “When CMS Get It Wrong…NACSA Put It Right!! https://nacsa.co.uk/history-of-the-csa

Nutt, Thomas. The Child Support Agency and the Old Poor Law, 2006. http://www.historyandpolicy.org/policy-papers/papers/the-child-support-agency-and-the-old-poor-law

Rights of Women Helping Women Through the Law. “Children and the Law: Child Maintenance.” https://rightsofwomen.org.uk/get-information/family-law/children-law-child-maintenance/

Skinner, Christine, Bradshaw, Jonathan and Davidson, Jacqueline. Child Support Policy: An International Perspective, Department for Work and Pensions Research Report No 405, 2007. https://www.york.ac.uk/inst/spru/pubs/pdf/rrep405.pdf

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Contact Person
Oliver Gojke
Policy Manager (Child Maintenance Policy)
Policy Group
Department for Work & Pensions

Participants and Contributors
Tom McCormack, Director
Child Maintenance Service
Paul Martin, Performance and Planning
Child Maintenance Group
James Kerr
Child Maintenance Analyst
DWP Policy Group

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