Child Maintenance: Fees, enforcement and arrears

This Library briefing describes what steps the Child Maintenance Service (CMS) may take when a Non-Resident Parent (also known as a “Paying Parent”) fails to pay child maintenance on time or in full. It also provides information on the application, collection and enforcement fees charged by the CMS, and briefly summarises analysis on the effectiveness of the CMS’s enforcement and collection system.

The briefing focuses on the use of enforcement measures in CMS cases (the “2012 scheme”), though they may also be applied to arrears arising from arrangements organised under the 1993 and 2003 schemes with the Child Support Agency (CSA).

Section 6 describes Northern Ireland’s system.

Fees

Individuals must pay a £20 fee for applying to the CMS to calculate child maintenance. The fee is not charged if a person is aged 18 years or under, or is a victim of domestic abuse or violence and has reported this to “an appropriate person”.

For those under “Direct Pay”, where the CMS calculates the rate and payments are made between parents, there are no additional collection fees.

For those using “Collect and Pay”, where the CMS collects and passes on payments, the Non-Resident Parent must pay an extra 20% of the maintenance due and the Parent with Care receives 96% of the child maintenance allowance paid by the Non-Resident Parent.

Build-up of arrears

If arrears have been accumulated under the Collect and Pay system, the Paying Parent is usually sent an arrears notice, and caseworkers may negotiate and put in place a repayment plan. The CMS has said that it aims to recover arrears within 2 years and expects the Paying Parent to pay up to 40% of their net income to clear them. The CMS may also seek, or accept a proposal of, part-payment in satisfaction of liability for the whole arrears. The written consent of the Person with Care (or child applicant in Scotland) must be obtained before this is accepted.

The CMS does not monitor payments made under Direct Pay. However, the DWP states that where parents do not pay their liability in full and on time, the Person with Care should inform the CMS who will “take swift action to move the case to Collect and Pay to enforce payment and recover any arrears”.

Maintenance arrears can be written off entirely in some circumstances. More information can be found in section 3.5.

Collection and enforcement powers

Without a court order, the CMS may collect arrears through:

• A Deduction from Earnings Order: An employer deducts payment for arrears direct from the Paying Parent’s salary.
• A Deduction from Earnings Request: As above, but for the Armed Forces.
• A Deduction Order: Either a lump sum or regular deductions are made from bank accounts.
• Collection of Assets from a deceased paying-parent’s estate.

With a Court-obtained liability order, the CMS may take the a range of enforcement action.

In England and Wales these powers include using bailiffs to take control of goods and applying to the court for an order of sale of an asset once it is registered by a court. In Scotland, powers include requesting a sheriff to make a charge of payment to require payment after 14 days, or freezing assets to prevent them being sold or transferred.

Fees may be charged when the CMS takes enforcement action against a non-paying parent— current fees can be seen at Gov.UK, Enforcement charges. 

In Great Britain, on successful application to the courts, an individual may also be disqualified for driving or from holding a passport.

Persons with Care on Direct Pay must first transfer their case to Collect and Pay for the CMS to bring enforcement action against the Paying Parent.

Child maintenance and Covid-19

During the quarter ending December 2020, the CMS has said it has “resumed virtually all areas of service delivery” exept some enforcement activities that require participation from partners such as the courts or bailiffs. However, as of September 2021, “partnership work has advanced significantly over recent months”.