On the 30th June 2014, the Child Support Agency (CSA) was replaced by the Child Maintenance Service (CMS) and new child maintenance regulations came into force. The Child Maintenance Service has introduced fees and charges for using the service. We want to explain what the charges are and how they will affect you.
The new introduction of new child maintenance regulations will mean that most parents making a new application to the CMS will have to pay a £20 application fee. If however, no agreement can be reached about paying, the CMS will collect the money on your behalf but there will be further charges. The payer (i.e. the non-resident parent) will have to pay an extra 20% and the recipient (carer for the children) will have their payment reduced by 4%. By way of example, on an assessment of £100; the payer pays £120 and the payee will receive £96. Paying parents will also have to pay enforcement charges if they miss child maintenance payments.
Existing cases handled by the CSA will be transferred to the CMS over the next few years. The Government is giving people registered on the new CMS system just over a month to adapt to the new system and clear any outstanding payments. Letters are also being sent out to CSA clients about ending their current child maintenance arrangements. When the CSA arrangements come to an end, parents have the option to make a family based arrangement, or an application can be made to the CMS, however, the new charges will apply.
How to avoid fees
It is possible to avoid all potential fees and charges by making a family-based arrangement; an arrangement where parents agree child maintenance without the involvement of outside parties.
If a family-based arrangement is not possible, you may be able to avoid collection fees by setting up ‘Direct Pay’ arrangements. This is where the CMS calculates a child maintenance amount, but you agree with you former partner or spouse how and when the money is to be paid thus avoiding the charge of an administration fee from the CMS.
How we can help
We want to help you make the most suitable child maintenance arrangement for your separated family. This is a highly emotional area of family law for the entire family. Amongst other services, we are able to draw up an agreement reflecting what has been agreed in a family-based arrangement. Consulting our specialist lawyers in our Altrincham offices is a great first step, and we can talk you through your options and help you to decide what is the best way to proceed. Please contact us on 0845 548 1007 for a free 20 minute consultation.