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Child Maintenance and Other Payments Bill


Child Maintenance and Other Payments Bill
Schedule 4 — Changes to the calculation of maintenance

63

 

Schedule 4

Section 16

 

Changes to the calculation of maintenance

Introductory

1          

Part 1 of Schedule 1 to the Child Support Act 1991 (c. 48) (calculation of

weekly amount of child support maintenance) is amended as follows.

5

Calculation by reference to gross weekly income

2          

In Part 1 (under which the weekly amount of child support maintenance

payable is calculated by reference to the non-resident parent’s net weekly

income), for “net”, in each place where it occurs, substitute “gross”.

Change to basic rate

10

3          

For paragraph 2 (basic rate) substitute—

“2    (1)  

Subject to sub-paragraph (2), the basic rate is the following

percentage of the non-resident parent’s gross weekly income—

12% where the non-resident parent has one qualifying child;

16% where the non-resident parent has two qualifying

15

children;

19% where the non-resident parent has three or more

qualifying children.

      (2)  

If the gross weekly income of the non-resident parent exceeds

£800, the basic rate is the aggregate of the amount found by

20

applying sub-paragraph (1) in relation to the first £800 of that

income and the following percentage of the remainder—

9% where the non-resident parent has one qualifying child;

12% where the non-resident parent has two qualifying

children;

25

15% where the non-resident parent has three or more

qualifying children.

      (3)  

If the non-resident parent also has one or more relevant other

children, gross weekly income shall be treated for the purposes of

sub-paragraphs (1) and (2) as reduced by the following

30

percentage—

12% where the non-resident parent has one relevant other

child;

16% where the non-resident parent has two relevant other

children;

35

19% where the non-resident parent has three or more

relevant other children.”

Increase in flat rate and minimum amounts of liability

4          

In the following provisions, for “£5” substitute “£7”—

(a)   

paragraph 3(3) (minimum amount of liability in the case of reduced

40

rate);

(b)   

paragraph 4(1) (amount of flat rate of liability);

 

 

Child Maintenance and Other Payments Bill
Schedule 4 — Changes to the calculation of maintenance

64

 

(c)   

paragraph 7(7) (minimum amount of liability in the case of basic and

reduced rates where reduction because of shared care applies).

Applicable rate where non-resident parent party to other maintenance arrangement

5     (1)  

In paragraph 1(1) (under which the weekly rate of child support

maintenance is the basic rate unless a reduced rate, a flat rate or a nil rate

5

applies), at the beginning insert “Subject to paragraph 5A,”.

      (2)  

After paragraph 5 insert—

“Non-resident parent party to other maintenance arrangement

5A    (1)  

This paragraph applies where—

(a)   

the non-resident parent is a party to a qualifying

10

maintenance arrangement with respect to a child of his

who is not a qualifying child, and

(b)   

the weekly rate of child support maintenance apart from

this paragraph would be the basic rate or a reduced rate or

calculated following agreement to a variation where the

15

rate would otherwise be a flat rate or the nil rate.

      (2)  

The weekly rate of child support maintenance is the greater of £7

and the amount found as follows.

      (3)  

First, calculate the amount which would be payable if the non-

resident parent’s qualifying children also included every child

20

with respect to whom the non-resident parent is a party to a

qualifying maintenance arrangement.

      (4)  

Second, divide the amount so calculated by the number of

children taken into account for the purposes of the calculation.

      (5)  

Third, multiply the amount so found by the number of children

25

who, for purposes other than the calculation under sub-paragraph

(3), are qualifying children of the non-resident parent.

      (6)  

For the purposes of this paragraph, the non-resident parent is a

party to a qualifying maintenance arrangement with respect to a

child if the non-resident parent is—

30

(a)   

liable to pay maintenance for the child under a

maintenance order, or

(b)   

a party to an agreement of a prescribed description which

provides for the non-resident parent to make payments for

the benefit of the child,

35

           

and the child is habitually resident in the United Kingdom.”

Shared care

6          

In paragraph 7(2) (circumstances in which decrease for shared care applies

in cases where child support maintenance is payable at the basic rate or a

reduced rate), for “If the care of a qualifying child is shared” substitute “If

40

the care of a qualifying child is, or is to be, shared”.

7          

In paragraph 8(2) (circumstances in which decrease for shared care applies

in cases where child support maintenance payable at a flat rate), for “If the

 

 

Child Maintenance and Other Payments Bill
Schedule 5 — Maintenance calculations: transfer of cases to new rules

65

 

care of a qualifying child is shared” substitute “If the care of a qualifying

child is, or is to be, shared”.

8     (1)  

In paragraph 9 (regulations about shared care), the existing provision

becomes sub-paragraph (1).

      (2)  

In that sub-paragraph, before paragraph (a) insert—

5

“(za)   

for how it is to be determined whether the care of a

qualifying child is to be shared as mentioned in paragraph

7(2);”.

      (3)  

In that sub-paragraph, after paragraph (b) insert—

“(ba)   

for how it is to be determined how many nights count for

10

those purposes;”.

      (4)  

After that sub-paragraph insert—

    “(2)  

Regulations under sub-paragraph (1)(ba) may include provision

enabling the Commission to proceed for a prescribed period on

the basis of a prescribed assumption.”

15

Weekly income

9          

In paragraph 10 (which confers power to make regulations about the

manner in which weekly income is to be determined), for sub-paragraph (2)

substitute—

    “(2)  

The regulations may, in particular—

20

(a)   

provide for determination in prescribed circumstances by

reference to income of a prescribed description in a

prescribed past period;

(b)   

provide for the Commission to estimate any income or

make an assumption as to any fact where, in its view, the

25

information at its disposal is unreliable or insufficient, or

relates to an atypical period in the life of the non-resident

parent.”

10         

In paragraph 10(3) (under which weekly income over £2,000 is to be ignored

for the purposes of Schedule 1), for “£2,000” substitute “£3,000”.

30

Schedule 5

Section 18

 

Maintenance calculations: transfer of cases to new rules

Power to require a decision about whether to stay in the statutory scheme

1     (1)  

The Commission may require the interested parties in relation to an existing

case to choose whether or not to stay in the statutory scheme, so far as future

35

accrual of liability is concerned.

      (2)  

The reference in sub-paragraph (1) to an existing case is to any of the

following—

(a)   

a maintenance assessment,

(b)   

an application for a maintenance assessment,

40

(c)   

a maintenance calculation made under existing rules, and

 

 

Child Maintenance and Other Payments Bill
Schedule 5 — Maintenance calculations: transfer of cases to new rules

66

 

(d)   

an application for a maintenance calculation which will fall to be

made under existing rules.

      (3)  

For the purposes of this paragraph, a maintenance calculation is made (or

will fall to be made) under existing rules if the amount of the periodical

payments required to be paid in accordance with it is (or will be) determined

5

otherwise than in accordance with Part 1 of Schedule 1 to the Child Support

Act 1991 (c. 48) as amended by this Act.

2     (1)  

The Secretary of State may by regulations make provision about the exercise

of the power under paragraph 1(1).

      (2)  

Regulations under sub-paragraph (1) may, in particular—

10

(a)   

make provision about timing in relation to exercise of the power;

(b)   

make provision for exercise of the power in stages;

(c)   

specify principles for determining the order in which particular cases

are to be dealt with under the power;

(d)   

make provision about procedure in relation to exercise of the power;

15

(e)   

make provision for exercise of the power in accordance with a

scheme prepared by the Commission and approved by the Secretary

of State.

3     (1)  

The Secretary of State shall by regulations make such provision as he thinks

fit about exercise of the right to make a choice required under paragraph

20

1(1).

      (2)  

Regulations under sub-paragraph (1) shall, in particular—

(a)   

make provision about the time within which the choice must be

made;

(b)   

make provision for a choice to stay in the statutory scheme to be

25

made by means of an application to the Commission for a

maintenance calculation;

(c)   

make provision about the form and content of any application

required by provision under paragraph (b).

4          

If, in a particular case, any of the interested parties chooses not to stay in the

30

statutory scheme, that person’s choice shall be disregarded if any of the

other interested parties chooses to stay in the statutory scheme.

Effect on accrual of liability of exercise of power under paragraph 1

5     (1)  

Where the power under paragraph 1(1) is exercised in relation to a

35

maintenance assessment or maintenance calculation, liability under the

assessment or calculation shall cease to accrue with effect from such date as

may be determined in accordance with regulations made by the Secretary of

State.

      (2)  

Where the power under paragraph 1(1) is exercised in relation to an

40

application for a maintenance assessment or maintenance calculation,

liability under any assessment or calculation made in response to the

application shall accrue only in respect of the period ending with such date

as may be determined in accordance with regulations made by the Secretary

of State.

45

 

 

Child Maintenance and Other Payments Bill
Schedule 6 — Use of information

67

 

Additional powers

6     (1)  

The Secretary of State may by regulations make such provision as appears to

the Secretary of State to be necessary or expedient for the purposes of, or in

connection with, giving effect to a decision not to leave the statutory scheme.

      (2)  

Regulations under sub-paragraph (1) may, in particular—

5

(a)   

make provision about procedure in relation to determination of an

application made in pursuance of regulations under paragraph 3;

(b)   

make provision about the application of the Child Support Act 1991

(c. 48) in relation to a maintenance calculation made in response to

such an application;

10

(c)   

prescribe circumstances in which liability under such a maintenance

calculation is to be subject to a prescribed adjustment.

      (3)  

The Secretary of State may by regulations make provision enabling the

Commission to treat an application of the kind mentioned in paragraph

1(2)(b) or (d) as withdrawn if none of the interested parties chooses to stay

15

in the statutory scheme.

Interpretation

7          

In this Schedule—

“interested parties” has such meaning as may be prescribed;

“maintenance assessment” means an assessment of maintenance made

20

under the Child Support Act 1991;

“maintenance calculation” means a calculation of maintenance made

under that Act;

“prescribed” means prescribed by regulations made by the Secretary of

State;

25

“statutory scheme” means the scheme for child support maintenance

under that Act.

Schedule 6

Section 39

 

Use of information

Powers in relation to use of information

30

1          

Information which is held for the purposes of any functions relating to child

support—

(a)   

by the Commission, or

(b)   

by a person providing services to the Commission, in connection

with the provision of those services,

35

           

may be used, or supplied to any person providing services to the

Commission, for the purposes of, or for any purposes connected with, the

exercise of any such functions.

2     (1)  

This paragraph applies to information which is held for the purposes of

functions relating to income tax, tax credits, child benefit or guardian’s

40

allowance—

(a)   

by the Commissioners for Her Majesty’s Revenue and Customs, or

 

 

Child Maintenance and Other Payments Bill
Schedule 6 — Use of information

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(b)   

by a person providing services to them, in connection with the

provision of those services.

      (2)  

Information to which this paragraph applies may be supplied—

(a)   

to the Commission, or

(b)   

to a person providing services to the Commission,

5

           

for use for the purposes of functions relating to child support.

3     (1)  

This paragraph applies to information which is held for the purposes of

functions relating to social security or employment or training—

(a)   

by the Secretary of State, or

(b)   

by a person providing services to the Secretary of State, in connection

10

with the provision of those services.

      (2)  

Information to which this paragraph applies may be supplied—

(a)   

to the Commission, or

(b)   

to a person providing services to the Commission,

           

for use for the purposes of functions relating to child support.

15

4     (1)  

This paragraph applies to information which is held for the purposes of

functions relating to social security, child support or employment or

training—

(a)   

by the Northern Ireland Department, or

(b)   

by a person providing services to that Department, in connection

20

with the provision of those services.

      (2)  

Information to which this paragraph applies may be supplied—

(a)   

to the Commission, or

(b)   

to a person providing services to the Commission,

           

for use for the purposes of functions relating to child support.

25

5     (1)  

This paragraph applies to information which is held for the purposes of

functions relating to child support—

(a)   

by the Commission, or

(b)   

by a person providing services to the Commission, in connection

with the provision of those services.

30

      (2)  

Information to which this paragraph applies may be supplied—

(a)   

to the Secretary of State, or

(b)   

to a person providing services to the Secretary of State,

           

for use for the purposes of functions relating to social security, war pensions,

employment or training, private pensions policy or retirement planning.

35

      (3)  

Information to which this paragraph applies may be supplied—

(a)   

to the Commissioners for Her Majesty’s Revenue and Customs, or

(b)   

to a person providing services to them,

           

for use for the purposes of any of their functions.

      (4)  

Information to which this paragraph applies may be supplied—

40

(a)   

to the Northern Ireland Department, or

(b)   

to a person providing services to that Department,

           

for use for the purposes of functions relating to social security, child support,

employment or training, private pensions policy or retirement planning.

 

 

Child Maintenance and Other Payments Bill
Schedule 7 — Minor and consequential amendments

69

 

      (5)  

In this paragraph—

“private pensions policy” means policy relating to occupational

pension schemes or personal pension schemes (within the meaning

given by section 1 of the Pension Schemes Act 1993 (c. 48));

“retirement planning” means promoting financial planning for

5

retirement;

“war pension” has the meaning given by section 25(4) of the Social

Security Act 1989 (c. 24).

Interpretation

6          

In this Schedule, “Northern Ireland Department” means the Department for

10

Social Development in Northern Ireland or the Department for Employment

and Learning in Northern Ireland.

Schedule 7

Section 52

 

Minor and consequential amendments

Child Support Act 1991 (c. 48)

15

1     (1)  

The Child Support Act 1991 is amended as follows.

      (2)  

In section 8 (role of the courts with respect to maintenance for children), in

subsection (6)(b) (which refers to the non-resident parent’s net weekly

income), for “net” substitute “gross”.

      (3)  

In section 30 (collection and enforcement of other forms of maintenance), in

20

subsections (4) and (5) for “which he is authorised to collect under this

section” substitute “for the collection of which he is authorised under this

section to make arrangements”.

      (4)  

In section 32(2)(i) (regulations about deduction from earnings orders), for

“the liable person is in the employment” substitute “any earnings are paid to

25

the liable person by or on behalf”.

      (5)  

In section 36(1) (enforcement in county courts), for “garnishee proceedings”

substitute “a third party debt order”.

      (6)  

For section 39 substitute—

“39     

Enforcement in Great Britain of Northern Ireland liability orders

30

The Secretary of State may by regulations make provision for the

enforcement in England and Wales and Scotland of any order made

in Northern Ireland under provision corresponding to section 32I or

the repealed section 33.”

      (7)  

In section 40 (commitment to prison), in subsection (4)(a)(i) of that section,

35

for “mentioned in section 35(1)” substitute “sought to be recovered as

mentioned in subsection (2A)(a)”.

      (8)  

In section 40A (commitment to prison: Scotland), for subsection (2)(a)(i)

 

 

 
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