According to Child Maintenance Service (CMS) statistics, almost 40% of non-resident parents, who are required to make monetary contributions towards the upkeep of their children via the Government-run child maintenance system, are failing to do so and this is creating a “poverty trap” for families who are owed money.
Child maintenance arrangements
Child maintenance is paid by the parent who does not live with their child the majority of the time. In most cases, child maintenance payments are arranged by separated parents independently of the CMS. This is known as a family-based arrangement and is the most cost-effective way for parents to agree upon child maintenance payments.
If parents use the CMS, it will work out how much the non-resident parent is required to pay. These payments will be based on the parent’s circumstances. Payment arrangements can then be made between the two parents.
If arrangements cannot be agreed upon, parents can use the CMS Collect and Pay scheme. This system calculates the maintenance which is due from the non-resident parent and then takes in the funds. The CMS takes the payment directly from the paying parents:
- Wages;
- Bank account; and/or
- Benefits or pension.
No contact needs to take place between the two parents. The Collect and Pay scheme is said to often be used by low-income parents who struggle to make payments.
Recent statistics
The statistics released by the CMS show that during the first three months of 2022, of the 164,500 child maintenance paying parents using the Collect and Pay service:
- “60,700 (37%) paid no maintenance
- 103,700 (63%) paid some maintenance, of which:
- 33,000 (20%) paid up to 90% of the maintenance due for the quarter (further breakdowns of this group are available on Stat-Xplore)
- 70,700 (43%) paid over 90% of the maintenance due for the quarter.”
The percentage of parents who made no payments in the first quarter of 2022 is at its highest since 2018 and is a substantial increase on the amount (26%) who failed to make maintenance payments in the quarter to June 2021.
Chief Executive of the single-parents charity Gingerbread, Victoria Benson, commented on the statistics:
“Research shows that 60% of single-parent families living in poverty and not receiving child maintenance would be able to escape the poverty trap if they were paid the money they’re owed. Parents have a legal and moral duty to contribute to their child’s upbringing whether they live with them or not, and where this money isn’t paid willingly the CMS needs to step in.
“Child maintenance simply cannot be seen as optional. The CMS needs to use its powers to stamp out persistent non-payment and ensure that no child experiences hardship or poverty because their non-resident parent won’t support them financially.
“It’s about time this government and the Department for Work and Pensions (DWP) took the issue of unpaid maintenance seriously. It’s shameful that so many children are forced to live in poverty as a result of a lax Child Maintenance Service and a disinterested government department.”
The CMS has faced further criticism from the public accounts committee of MPs which recently slammed the Department for Work and Pensions (DWP), which governs the CMS, for “achieving no more for children of separated families than under the previous, discredited Child Support Agency”.
Why has the number of non-resident parents making child maintenance payments via the CMS Collect and Pay scheme fallen?
The performance of the scheme had improved in the four years before the pandemic but Covid-19 had a detrimental impact. The drop in universal credit claims has lowered the number of child maintenance payments that can be automatically deducted from benefit payments and the withdrawal of the £20 weekly universal credit uplift has also had an impact. A DWP commentary on the statistics outlines the following:
“[Withdrawing the uplift] led to an increase in the number of UC claimants, who were due to pay via Deduction from Benefit, not having enough benefit remaining within the UC deduction cap to allow a child maintenance deduction to be taken.”
Under the current rules of universal credit, up to 25% of a claimant’s standard benefit payment can be deducted, but other debts take precedence over child maintenance payments. Deductions from universal credit payments have been attributed to pushing claimants further into poverty.
A spokesperson for the DWP commented:
“Child maintenance is an essential source of income for many lone-parent families, helping to lift 140,000 children out of poverty on average each year. Through continuous enhancements to its processes and powers, the Child Maintenance Service got a record £1bn to children of separated parents last year.
“Child maintenance is calculated so it is reasonable and affordable, according to a paying parent’s income, with the very lowest earners protected by a flat rate of £7 per week.
“Giving children the best start in life is the service’s priority, so parents who can afford to pay more must pay at a rate that reflects what they earn.”
Comment
It is extremely concerning that thousands of children from separated families, in fact, almost 40%, are not getting the maintenance they are entitled to and need from non-resident parents.
In our experience, however, there are generally two sides to every story. For all those clients who tell us that their ex is not paying any or enough child maintenance but living an extravagant lifestyle, there are those who feel that they are being deliberately excluded from the lives of their children to ensure the maximum child maintenance liability.
How can Nelsons help
At Nelsons, our team of specialist family law solicitors in Derby, Leicester, and Nottingham is one of the largest in the East Midlands. Our experience ensures that we will give you expert advice about your circumstances, as well as support you throughout the divorce process.
If you need advice on any divorce or family law-related matter, please contact us and we will be happy to discuss your circumstances in more detail and give you more information about the services that our family law solicitors can provide along with details of our hourly rates and fixed fee services.
Please contact a member of our team on 0800 024 1976 or via our online form.
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