Child Maintenance Service
The question
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the adequacy of the Child Maintenance Service calculation formula for the (a) use of pre-tax earnings from the previous financial year for determining payments and (b) exemption from maintenance payments for non-resident parents on benefits; and whether she plans to review that formula.
Answered by Andrew Western
Information about the paying parent's gross income is taken directly from HM Revenue and Customs (HMRC) for the most recent available full tax year. This allows calculations to be made quickly and accurately. Use of historic income ensures a stable calculation, which we know from customer feedback is valued as it enables parents to rely on maintenance for financial planning purposes.
Parents in receipt of benefits (including Jobseeker's Allowance and Universal Credit without earnings) or who have gross weekly income between £7 and £100, are required to pay the flat rate of £7 a week. This rate makes sure that parents contribute financially to their children's upbringing. It also protects the welfare of the paying parent and any children in their household.
The Department is currently reviewing the calculation to make sure it is fit for purpose. This has included updating the underlying research and considering how we ensure the calculation reflects current and future societal trends.
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