Children: Maintenance
The question
To ask the Secretary of State for Work and Pensions, what assessment he has made of the level of the 25 per cent threshold applied to changes in income for recalculating child maintenance liability.
Answered by Andrew Western
Currently, where a paying parent's income is at least 25% different than the figure obtained from HM Revenue and Customs or no figure is available, the Child Maintenance Service will consider whether the liability should be based on the parent's current income. A change will not be considered unless it breaches the 25% tolerance.
However, the Department has conducted a review of the child maintenance calculation. This review focussed on ensuring the calculation strikes the right balance between both parents to encourage willing and able compliance, with the aim of securing more money for children.
Following the review, we plan to take forward a set of changes to reflect a renewed commitment to ensuring that the child maintenance system delivers for the families who rely on it most. We plan to reduce the income tolerance from 25% to 15%. Each customer’s calculation is reviewed annually, and currently it can be amended outside of that annual review when a paying parent’s income changes by at least 25%. The proposed changes will mean that changes in income are captured quicker and assessments remain fair for both parents.
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