The UK’s Child Maintenance System (CMS) has been a hot topic for debate, with mixed reactions from both paying and receiving parents. Designed to ensure that non-resident parents contribute financially to their children’s upbringing, the CMS is far from perfect. Here’s a frank exploration of how the system measures up from both sides of the fence.
The Paying Parent’s Perspective: A Rollercoaster of Frustrations
If you’re a paying parent, the CMS might feel like a never-ending source of frustration. Why? Well, the system’s use of gross income for calculating child maintenance payments is a major sticking point. Gross income is your total earnings before tax and National Insurance deductions, which means the amount you end up paying can be quite hefty. For those making over £3,000 a week, the strain can be even worse, with additional court-ordered payments piling on.
Adding to the frustration is the fact that the CMS doesn’t take into account your other financial commitments. Debts, travel costs for visits, or expenses for other children from different relationships aren’t considered. This can make it feel like the CMS is oblivious to your financial reality, pushing you into a tight spot.
Then there’s the enforcement. Miss a payment, and the CMS can swoop in with deductions from your earnings or benefits, sometimes even leading to passport or driving license suspensions. This can feel particularly harsh, especially if you’re already struggling financially.
The Receiving Parent’s Dilemma: The Struggle for Consistent Support
On the flip side, receiving parents are often left feeling let down by the CMS’s enforcement. Non-payment is a persistent issue. As of March 2023, 35% of parents using the “Collect and Pay” scheme, where the CMS handles payments directly, didn’t make any payments during the quarter. Even when payments were made, 24% of parents paid less than 90% of what was owed.
This doesn’t just highlight a problem with individual payers but also with the system itself. Receiving parents frequently see the CMS as ineffective, with enforcement measures like deduction orders and liability orders taking too long to implement. This delay can leave children without necessary financial support for extended periods, impacting their well-being.
Why Non-Payment Happens: More Than Meets the Eye
Non-payment is a complex issue with several contributing factors. Some paying parents genuinely can’t afford the payments due to other financial commitments or unstable incomes. A considerable number are on Universal Credit or other benefits, making it hard for them to meet their full maintenance obligations.
Administrative delays, errors, and disputes between parents also add to the problem. These issues can lead to missed or partial payments, leaving both parents in a frustrating and stressful situation.
Is the CMS Really Fit for Purpose?
The CMS has collected significant amounts of maintenance over the years—about £309 million was due in the quarter ending March 2023, with £237 million arranged through the Direct Pay service. However, a whopping £547.9 million in unpaid maintenance has accumulated since the CMS began in 2012, highlighting ongoing non-compliance issues.
The system does offer some flexibility, like the “Direct Pay” option where parents handle payments themselves. But the lack of monitoring in this arrangement can lead to missed payments going unnoticed until it’s too late to enforce them.
Gross Income Calculation: A Major Misstep?
One of the CMS’s biggest criticisms is its reliance on gross income for calculating payments. This approach doesn’t consider personal circumstances such as debts or new financial obligations. It can leave paying parents with less money for their own living expenses, fostering resentment and, in some cases, leading to deliberate under-reporting of income or avoidance of payments. Additionally, high pension contributions are not factored into these calculations, exacerbating the issue.
Conclusion: A System in Need of Reform
The UK’s child maintenance system, while helping many children receive the support they need, is far from flawless. Both paying and receiving parents have valid criticisms of how it operates. For receiving parents, the enforcement mechanisms are slow and often inadequate. For paying parents, the financial burden can seem unjust due to the use of gross income without accounting for personal financial obligations.
The Child Maintenance (Enforcement) Act 2023, which grants the CMS more power to enforce payments without court orders, is a step in the right direction. However, there’s still a pressing need for reform to address these ongoing issues. A more balanced and effective system would benefit everyone involved, ensuring that child maintenance serves its intended purpose without undue stress on either side.
How can www.payingparent.co.uk help dads manage this?
The Paying Parent platform has been created purely and simply to provide dads with all the necessary tools and knowledge they’ll need. They’ll be able to manage their child maintenance agreement with ease and confidence. Here’s some of the benefits of becoming a member:
Calculate exactly how much child maintenance you need to pay – taking into account any special expenses. We’ve built our PP Child Maintenance Calculator to match exactly how the CMS calculate your payments. Try it out!
Plan for your future by working out how much your payments will change if you:
- Get a pay rise/new job
- Have a baby with a new partner
- Have your children stay overnight more/less often
Follow our useful guidance on how to reduce your payments, whilst using our special expenses claim form
Get the support you need to appeal a decision made by the Child Maintenance Service
Use our templates to take the stress out of communicating with your ex-partner, legal representatives and the Child Maintenance Service – designed to save you time and money
Access our ‘Child Maintenance Dos and Don’ts’ – a detailed guide full of top tips to help you navigate your child maintenance arrangement
Network with other Dads experiencing the same issues, ask questions and share your experiences via our members-only platform
Learn about some of the most common (and some of the not so common) situations you’re likely to encounter as part of your child maintenance journey, and how to overcome them.
Head to www.payingparent.co.uk to find out more!
