Everything You Need to Know About Child Maintenance

Child maintenance is a regular payment made by one parent to another for the financial support of their child after separation or divorce.

Understanding how these payments are calculated can help parents plan their finances more effectively.

Various factors, such as income and the number of children, can influence the exact amount owed.

In this article, child maintenance is explained, and you can see a straightforward example to help clarify how child maintenance might be worked out in a typical situation.

What Is Child Maintenance?

Child maintenance is regular financial support intended to help cover the living costs of a child when their parents are separated. It ensures that the child's needs are met, even if one parent doesn’t live with them.

This support typically covers essentials such as food, clothing, housing, and other everyday expenses.

It’s not limited to basic needs and may also include contributions towards school costs or extracurricular activities.

There are two main types of child maintenance arrangements:

• Private Arrangements: Parents agree privately on the payment amount and schedule.
• Statutory Arrangements: The Child Maintenance Service (CMS) determines and manages payments if parents cannot agree.

Child maintenance is designed for children under 16, or under 20 if they’re still in approved education or training.

The payments are usually made by the parent who doesn’t have the main day-to-day care of the child.

The amount of child maintenance may depend on factors such as the income of the paying parent, the number of children involved, and specific circumstances like shared care.

A simple overview in table form:

What Is a Family-Based Child Maintenance Arrangement?

A family-based child maintenance arrangement is an agreement made directly between both parents regarding how to support their child's living costs.

This type of arrangement allows parents to decide on payment amounts and schedules without the involvement of government bodies or courts.

These agreements are often flexible. They can cover regular payments, contributions towards specific expenses, or both. Parents may choose to review and adjust the arrangement as circumstances change.

The advantages of family-based arrangements:

• Quick to set up
• No fees or legal costs
• Private and informal
• Can be adapted over time

A family-based arrangement doesn’t need to follow strict rules. Parents are free to decide what works best for them and their children.

Written agreements are common, but verbal agreements are also allowed.

If either parent finds the arrangement isn’t working, they can seek help from the Child Maintenance Service or legal advisors.

What Is the Child Maintenance Service?

The Child Maintenance Service (CMS) is a government agency in the UK that helps separated parents arrange financial support for their children.

It ensures that non-resident parents contribute to the costs of raising their child.

The key roles of the CMS are:

• Calculating how much child maintenance the paying parent should provide
• Facilitating payments between parents
• Taking action if payments aren’t made

The CMS uses information from HM Revenue and Customs to work out payments, known as CMS payments. CMS child maintenance payments are based on the paying parent’s gross annual income and the number of children involved.

Adjustments are made for things such as overnight stays and other children supported by the paying parent.

There are two main payment options through the CMS:

Child maintenance Collect and Pay is often used when parents can’t communicate or when there are issues with missed payments.

The CMS may intervene to recover unpaid amounts if required.

How Much Child Maintenance Will You Receive/Pay?

Child maintenance payments are calculated mainly based on the paying parent’s gross weekly income.

The Child Maintenance Service (CMS) uses this figure to decide how much should be paid. It doesn’t take the receiving parent’s income into account.

For the "Basic" rate, the usual percentage depends on the number of children:

• 12% of gross weekly income for one child
• 16% for two children
• 19% for three or more children

Special rules apply if the paying parent has other children living with them or other dependents. The CMS will make adjustments in these cases.

The online child maintenance calculator on GOV.UK or nidirect can give a personalised estimate.

Living arrangements, overnight stays, and other benefits may also impact the final amount.

It's important for both parents to provide accurate details to the CMS when asked, as incorrect information may affect the payment calculation.

Non-Payment and Parentage Disagreements

Non-payment of child maintenance is a common issue faced by many parents.

The Child Maintenance Service (CMS) has several powers to recover owed payments, including wage deductions and taking legal action.

When a parent doesn’t pay, CMS can:

• Deduct money directly from earnings
• Take funds from bank accounts
• Initiate legal proceedings for persistent non-payment

If there’s a disagreement about who the child's parent is, this is known as a parentage dispute.

A parent can dispute the obligation to pay if they believe they’re not the child’s biological or legal parent.

The CMS will continue to require payments during the dispute process until parentage is proven or disproven.

Evidence such as birth certificates, DNA tests, or court orders may be used to resolve these disagreements.

It’s important for both parents to respond promptly to any requests from CMS regarding payments or evidence.

Delayed communication may result in further enforcement or prolonged disputes.

Family-Based Arrangements Vs Child Maintenance Service

When deciding how to manage child maintenance, parents can choose between a family-based arrangement and using the Child Maintenance Service (CMS).

Each option has its own features, benefits, and potential drawbacks.

Family-based arrangements are informal agreements made directly between both parents. They’re flexible, allowing parents to adjust payments and schedules to suit their needs.

There’s no involvement from government agencies, and no set rules must be followed. This can make the process quicker and less stressful if both parents cooperate.

However, these private arrangements aren’t legally binding. If one parent stops paying, the other can’t easily enforce the agreement through legal channels.

Trust and ongoing communication are essential for this approach to work successfully.

The Child Maintenance Service is a government-run scheme that calculates, collects, and transfers payments between parents.

CMS follows strict guidelines to ensure the well-being of the child, and payments can be enforced if required. This option can be especially useful if communication has broken down.

Here’s a quick comparison:

Key Takeaways

Child maintenance is a financial support system to ensure children's needs are met when parents are separated or divorced. 

Payments are typically made by the parent not living with the child, and they cover essential costs such as food, housing, and clothing. 

Parents can choose between a family-based arrangement, which is informal and flexible, or using the Child Maintenance Service (CMS), which enforces payment and ensures the child's well-being. 

The CMS calculates payments based on the paying parent's income, and non-payment can lead to enforcement actions such as wage deductions or legal proceedings.