The new maintenance calculation
A new scheme for calculating child maintenance is expected to be introduced in
All new claimants will have their claims calculated under these new rules.
At a later date, a process of closing all existing CSA cases will begin, and any
parents who wish to apply to the new scheme will have to do so in the same way
as new applicants.
The new calculation will be based on information from HM Revenue and
Customs on the non-resident parent’s gross income for the latest available tax
year. The amount will be fixed for one year unless his income varies by 25 per
As the new calculation will be based on gross income rather than net income,
as currently used, the percentage amount that the non-resident parent will be
expected to pay will change.
For a non-resident parent whose weekly income is £800 or less, the rates will
Ï 12 per cent for one child;
Ï 16 per cent for two children;
Ï 19 per cent for three or more children.
If the non-resident parent’s income is over £800 a week, the following rates will
apply to the excess over £800:
Ï 9 per cent for one child;
Ï 12 per cent for two children;
Ï 15 per cent for three or more children.
The gross weekly income taken into account will be reduced if the non-resident
parent has other relevant children.
I found the following information on the Gingerbread website regarding the proposed charges for using the CSA. It indicates that there will still be an ongoing charge for using the CSA but the initial charge for applying through them will be £20 rather than the £100 initially proposed.
"An on-going charge of between 7% and 12% on any maintenance paid to parents who rely on the future CSA to collect their child maintenance, as well as an extra 15-20% charge added to the non-resident parent’s payment."
Again, another system that will cause greater upset when it commences. If both parents need to use this system for whatever reason why does the NRP get charged 15-20% but the PWC will only get deducted a maximum of 12%?
The difference between the charges is because the calculation will be based on the NRPs gross income where as the PWC will be paying from their net income.
Parents will be able to avoid using the CSA altogether if they have a written private agreement which may be enforced through the courts. The family solicitors organisation, Resolution, has produced a sample form here;