We expressed our concern back in July when the Public and Commercial Services Union (PCS) spoke out against the replacement for the Child Support Agency (CSA) after it was revealed that parents would have to pay a £20 fee to access their help (and lose a percentage of any maintenance collected by the CMS, both on collection and payment out).

Now latest government statistics reveal that 3,700 fewer parents applied to the CMS in August compared to May this year under the former system– a drop of 38%. Worryingly, this is three times the 12% drop in applications predicted by the Department of Work and Pensions (DWP).

Single parent charity, Gingerbread, is now calling for the government to withdraw the charge as it fears that the three million children in single parent homes will plunge further into a spiral of poverty.

Gingerbread Chief Executive Fiona Weir said: “At the moment, only two-fifths of the UK’s two million single parent families receive child maintenance payments from their child’s other parent. We warned the government that the charge to access the new service could make this situation even worse. These early figures seem to confirm our fears.”

The question that needs to be asked is, are parents now making their own arrangements, or are they simply put off from paying the £20 fee?

It’s probably a bit of both. The DWP has not yet published the data it is collecting on how many parents call the CMS, but then do not apply for help.

With the withdrawal of legal aid for most family law cases, some parents will see the £20 fee as an additional charge they can ill-afford. It may not sound a great deal, but in the scheme of things it all adds up.

Did the £20 put you off from contacting the CMS? Is there a better solution to securing payments from your ex?

If you have any other questions about child maintenance that you would like answering, we’d like to hear from you so please call us on 0113 246 0055, leave us a comment below or drop us an e-mail.

The post Why parents are turning their backs on new Child Maintenance Service appeared first on Jones Myers.

The UK’s sixth largest union has hit out against the government’s Child Maintenance Service (CMS) condemning moves to charge parents a fee to access its help.

Jayne Craven, industrial officer for the Public and Commercial Services Union (PCS) has spoken out against the replacement for the Child Support Agency (CSA), claiming that children will lose out.

“The government believes parents should be able to make their own arrangements when it comes to the care of their children. But if they do need help from a government department, they are going to have to pay to use it – the money will go to the government coffers and not to the child,” she explained.

Under proposed new rules, parents unable to reach a mutual agreement on payment will both be charged a fee if they ask the CMS to intervene. The paying parent will have a 20% fee added to the maintenance payment, while the receiving parent will have to pay 4% to ensure they receive the money to which they are entitled.

Jones Myers is greatly concerned by the introduction of the CMS, particularly as figures recently released reveal that since August 2013, the total number of cases seeking the input of the CMS has risen by 63% from 4,500 to 59,700 by May 2014, confirming that parents need external help to settle the issue of child maintenance.

As a number of our clients are seeking the support of the CMS, we thought it would be a good idea to answer some of the key questions we are often asked.

How is child maintenance worked out?

The amount of money allocated is based upon gross income with deductions for pension contributions made by the paying parent, but not contributions made by his or her employer.

Further reductions may apply depending on the number of nights the child stays with the paying parent per week, and for the number of children in his or her household, which, for example, might be from another relationship or even be the children of a new cohabiting partner.

How much child maintenance will I be entitled to and what will I be expected to pay?

The CMS has a formula to calculate the amount of maintenance that needs to be paid. A basic rate applies if your gross weekly income is up to £800 and a basic plus rate if it is between £800 – £3,000.

How do I receive child maintenance or make child maintenance payments?

The best way to arrange payment is either by private agreement, or to include it in a court order so that the payment is directly paid to the receiving parent. Payment can also be made through the CMS, but they charge a fee for this. If a child maintenance court order is more than 12 months old, you can apply to the CMS for an assessment and this replaces the court order.

What happens if my ex won’t pay?

Payments under a court order can be enforced through the court system. If arrears build up after a CMS assessment, they will take action to enforce arrears that have built up. They will, however, charge for this service.

I’m self-employed and run my own business, but don’t have a set salary. How will the court decide how much I should pay?

Initially, the court will apply the CMS formula, probably using the last documents filed with HM Revenue and Customs, such as a tax return or business accounts. It can also take into account other factors and order more up-to-date financial information to assess the true income and benefits available to you from your business. The court has the power to assess and take into account both parties’ circumstances, which gives it more flexibility than the CMS.

How long do I have to pay child maintenance for?

You will normally be expected to provide maintenance, either through the court or CMS, until a child is 18 years old or ceases full time education or training. The court can extend an order for maintenance for older children who remain in full time education or training, or who have special needs.

Do you have any other questions about child maintenance that you would like answering? We’d like to hear from you so please call us on 0113 246 0055, leave us a comment below or drop us an e-mail.

The post Child Maintenance – all you need to know appeared first on Jones Myers.

The government’s latest plan for parents to agree amicably to their child maintenance agreements or face a fee fills me with despair.

Under proposed new rules parents unable to reach a mutual agreement on payment will both be charged a fee if they ask the new Child Maintenance Service to intervene. The paying parent will have a 20% fee added to the maintenance payment while the receiving parent will have to pay 4% to ensure they receive the money to which they are entitled.

I am deeply concerned by this change and think that once again government is failing vulnerable members of our society when they are facing a crisis and most need support.

First of all separating couples are no longer eligible to claim legal aid for most divorce and child contact issues – now they are once again being targeted as the government seems determined to keep civil matters out of the court system.

Single parents – 95 percent of whom are women – will undoubtedly feel under great stress as they struggle to chase maintenance and have to pay money, which they probably can ill-afford, in a bid to receive their just payments. And, if they need advice and support about the new system, this will cost them £20 to use a service that calculates how much they are owed.

My other worry is that some single parents will be deterred from making new child maintenance claims, or could even settle for an inappropriate arrangement, resulting in their children losing out on vital financial support.

While the former Child Support Agency was indeed inefficient, at least it allowed parents take action against ex-partners who were trying to avoid their responsibility. Pension Minister Steve Webb’s argument that the CSA was using an IT system riddled with defects and costing £74 million per annum to run reveals the true reason why changes have been made.

He may state that parents need to be responsible for agreeing financial support for their own children support, but the reality is these changes have been made to cut costs and remove people from the child support system, which is in my opinion, the only place where these disputes can be properly settled.

Instead of targeting those already most disadvantaged and needy, the government should consult parents, family lawyers and other relevant third parties to come up with a system that ensures vulnerable single parents receive the support they deserve – and are entitled to.

Do you think that the new child maintenance policy is penalising those single parents most in need?  We’d like to hear your views and if you have any questions about child maintenance payments please call us on 0113 246 0055, leave us a comment below or drop us an e-mail.

The post Will single parents and children be the losers under new child maintenance reforms? appeared first on Jones Myers.