How Much Will I Have To Pay?

In terms of maintenance child support cases are divided into two broad categories; those which fall under the old rules and those under the new rules. If a person makes an application for child support on or after 3rd March 2003 the amount of maintenance will be calculated by the new rules. Before that, cases generally fall under the old rules (with some exceptions) and use a complex formula to calculate the amount of money that will be payable.

New rule cases are somewhat simpler and the government has plans for changes to simplify the calculations further, which should be introduced in 2010. For the purposes of this article, we will focus on the way the CSA currently calculates how much someone is required to pay.

Income

The CSA takes information from a variety of sources before making the calculation, and may consult both parents, HMRC, and the non-resident parent’s employer to establish ‘net weekly income’. Income can come from a variety of sources; wages or salary, pension, tax credits and benefits. If a non-resident parent is self-employed, the CSA will take their latest tax return and work out their weekly income that way.

It should be noted that there are variables on these basic figures, such as if parents share the care of the child, e.g. the child spends regular nights with the non-resident parent, then this will normally be deducted from the amount the non-resident parent has to pay. However, overnight visits must be frequent enough to count (at least one night a week.) Levels of income are divided into four categories as shown below.

Nil Rate

If the non-resident parent earns less than £5 per week, for example if they are a full time student, are under 16 years old, or in prison the nil rate will apply. This means that they will not be required to pay anything.

Flat Rate

If the non-resident parent earns between £5 and £100 per week, they will pay a flat rate of £5 per week. This includes people who are on state benefits, Job Seeker’s Allowance, Incapacity Benefit, state pensions amongst other benefits. This rate will be the same regardless of how many children they have. In the case of state benefits, the child maintenance is usually deducted at source.

Reduced Rate

If the non-resident parent earns between £100 and £200 per week, they will pay a flat rate plus a percentage of their weekly income. This will vary depending on how many children they have that require maintenance. The flat rate is £5 per week, plus 25% of their income for one child, 35% of their income for two children, and 45% of their income for three or more children.

Basic Rate

If a non-resident parent earns £200 or more per week, the CSA calculates the amount of maintenance they should pay as a percentage of their income. For one child, this is 15%, for two children this is 20% and for 3 or more children it is 25% of their income.

More Than One Child

If a parent with care has children with several different parents, the CSA will make these calculations separately. For example, if a woman has two children by one father and one by another man, the men will only pay for their own children respectively. Similarly, if a non-resident parent is paying money to several children in different households, the CSA will generally divide the money equally between the children.

Other Factors

The CSA can also consider other elements before making a determination on maintenance payments. These can include fees for boarding school, special expenses that the non-resident parent pays for disabled children who live with them, mortgage payments for a property in which the parent with care and the child/children live (as long as the non-resident no longer has a legal interest in it) or loan payments for a loan taken out for the family’s benefit while the non-resident parent was still living with the parent with care and the child/children.

Challenging the Decision

It is possible to ask the CSA to review a decision on maintenance payments. There is a set process for this and an appeals procedure. For further information on the process contact the Child Support Agency.