What’s child maintenance and how can it support children whose parents have separated? Zanariah Webster explains
The Question
I have left my long-term partner of 10 years. We have two boys aged five and eight. My ex-partner is refusing to pay child maintenance. Can you explain to me what child benefit is to be used for, and what are my next steps?
Zanariah’s Answer
Whilst the dust settles following a break-up, the realities of managing finances with children are at the forefront of most separating couples’ minds.
In the case of young children, the lack of financial support from a former partner/spouse places an enormous burden on the parent caring for the children.
Even though the parents’ relationship may have come to an end, their relationship and responsibility for their children continues, not only emotionally but financially.
The Child Maintenance Service (CMS), formerly the Child Support Agency, is an organisation that manages payments on behalf of parents who care for their children.
Financial arrangements can be arranged directly between parents or with the help of the CMS. Child maintenance is payable in respect of all children under the age of 16 or under 20 if they are in full-time education, including A-Levels or the equivalent.
To be eligible to apply for child maintenance, you need to be the parent, the grandparent who has the main daily care of the child, the child’s guardian or a child over 12 if they reside in Scotland.
To ascertain how much you will receive from the non-resident parent, the CMS has a useful calculator which enables you to insert the non-resident parent’s gross annual income (i.e. before tax and National Insurance).
This income includes the non-resident parent’s salary and any pension income. You will be invited to confirm how many nights the children spend with the non-resident parent, as this will impact the assessment. This can also be used if you need to know how much you are expected to pay for each child. The CMS has various rates to calculate the correct amount payable, which are the basic rate, reduced rate, the flat rate and the nil rate.
The basic rate applies where a parent’s gross weekly income is between £200 and £3,000. Calculations depend on the number of children living with the non-resident parent (such as children with a new partner) and is assessed in two stages. For example, if there is only one child, the gross income is reduced by 11%. With two children, the gross income is reduced by 14% and with three or more children it is reduced by 16%.
The second stage calculates maintenance as a percentage of the remaining amount and is dependent on the number of qualifying children. For every night that a child spends with the non-resident parent, payments will reduce by one seventh of a week.
The reduced rate applies when the non-resident parent earns between £100 and £200 per week. In this circumstance, the non-resident parent will be required to pay £7 per week plus a percentage of their income over £100, depending on the number of qualifying children and the number of children residing with the non-resident parent.
If the paying parent earns less than £100 a week, received Universal Credit as they have no income and / or claims certain benefits such as Jobseeker’s allowance, then there is a weekly flat rate of £7. In instances where the paying parent earns less than £7 a week, is under 16 or 19 (if in full-time secondary education), is 16 or 17 and on means tested benefits, on work-based training allowance, a prisoner, or in a residential care home or nursing home then a nil rate band applies.
If a parent earns £3,000 gross per week or £156,000 gross annually then an application can be made to the Court for a top-up maintenance order.
Receiving CMS payments does not affect Universal Credit or child benefit and it is not taxed. Contrary to what many believe, child maintenance is not limited to paying for toys or activities but is to cover any payments connected a relevant child; for example in respect of clothing, food and housing.
If a parent fails to pay child maintenance, then an application will need to be made to the CMS (subject to any top-up order being in place). Administrative fees will be deducted from the amount received through the CMS and the amount the non-resident pays.
Zanariah Webster qualified as a Solicitor in 2008 and specialises in Family Law, including Separation & Divorce, Cohabitation, Financial & Children Matters, Grandparents Rights, Domestic Abuse and Nuptial Agreements.
In addition to her excellent legal knowledge, Zanariah is known for her strong relationship-building skills, her personable communication style, and her ability to support her clients through every stage of the legal process, putting their interests at the heart of everything she does.
If you would like to ask Zanariah or one of her colleagues a legal question connected to your home or related finances email kate.saines@emap.com
