Child Support Agency (the "CSA")
The CSA calculates child maintenance, collects payment and enforces payment where appropriate. It does this by assessing the parent, who does not have day to day care of the child (referred to at the 'non-resident parent'), as to their financial obligation for that child. The CSA only deal with child maintenance and do not deal with other Orders that might be available to the child under Schedule 1 of the Children Act 1989 or within ancillary relief (financial) proceedings in divorce.
If there is a Court Order which pre-dates 3 March 2003 (when the CSA took over Child Maintenance from the Court) which provides for regular payments of child maintenance by the non-resident parent then no application to the CSA can be made. Any changes to the amount of maintenance or arrears should be agreed between the parties or referred back to the Court.
If a Court Order exists that was made on or after 3 March 2003 then the Court retain the power to enforce the child maintenance element of that Order for a year from the date the Order was approved by the Court. After that the Court will cease to have power and it will revert back to the CSA. Parents can jointly elect for the Court to have power over a child maintenance dispute if they do not want to apply to the CSA.
How Maintenance is calculated
The CSA calculate Child Maintenance as a % of the non-resident parent's net weekly income. Net weekly income is weekly income (usually earnings) after tax, NI and pension contributions have been deducted. Tax credits, occupational pensions, personal pensions and retirement annuities can also count towards weekly income.
The basic rate is applied to any non-resident parent earning £200 or more each week and is a percentage of the net weekly income:
- 15% if there is one qualifying child;
- 20% for two qualifying children; and
- 25% for three or more qualifying children.
This figure will be varied downwards if the non-resident parent has children living with them in their current family or regularly has the child to stay overnight with them.
A flat rate exists for non-resident parents who have a net income of more than £100 a week but less than £200 a week. The flat rate is £5 a week on the first £100 of net income plus a % of the net weekly income over £100. There is a nil rate which is also applicable where a non-resident parent will have nil responsibility.
Legislation places a limit on the amount of next weekly income that can be taken into account being £2,000. If the non-resident parent's net weekly income is more than £2,000, persons with care can apply to the Court for a 'top-up' to maintenance under Schedule 1 of the Children Act 1989. If granted, the CSA can collect this top-up maintenance.
If these matters effect you please complete a contact form or call us directly on 01483 302 000 or email samantha.jago@www.rhw.co.uk
