CMS could see child support fees levied against separated parents

Published 18th July 2014

Separated parents who turn to the new Child Maintenance Service (CMS) to collect and pay child support settlements face significant fees, it has been confirmed.

If parents are unable to reach an amicable agreement over child support, they may now use the CMS – which was implemented at the end of last month – to handle the settlements. Non-resident parents will be required to pay 20 per cent in addition to the agreed support payments, while the other parent will lose 4 per cent of the settlement money received.

In addition, applications to use the new CMS will be charged at £20, while absent parents who must have support payments deducted from their earnings or be chased through the courts may also be charged fines of up to £300.

The new CMS has been introduced to replace the Child Support Agency, which is due to be phased out over the coming three years.

Steve Webb, Work and Pensions Minister, told the Yorkshire Post: “Reform of the old broken system was absolutely necessary. The old CSA was just not fit for purpose – it spent £503 million in one year to transfer £1.1 billion of maintenance and left more than 50 per cent of children living in separated families with no effective financial arrangement in place at all.

“The new system is helping more couples to work together to ensure the best outcomes for their children. We know that children do better when parents work together, even after separation, and I am very encouraged that the new child maintenance system is already making this a reality for thousands of families.”

It is hoped that the reforms will lead to parents feeling encouraged to work out a solution between themselves, in an amicable manner, meaning that the CMS is then free to concentrate on challenging cases.

Those that do reach their own agreements will be free to use a Direct Pay service to exchange child support payments. The Department for Work and Pensions confirmed that 39 per cent of parents are currently using this system.

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