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Child Maintenance and Other Payments Bill


Child Maintenance and Other Payments Bill
Part 3 — Child Support etc.

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(a)   

make provision about the cases and circumstances in which the

power under subsection (1) is exercisable, including provision

restricting the exercise of that power by virtue of change of

circumstance;

(b)   

make provision with respect to the consideration by the

5

Commission, when acting under subsection (1), of any issue

which has not led to its so acting;

(c)   

make provision with respect to procedure in relation to the

exercise of the power under subsection (1).”

18      

Transfer of cases to new rules

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Schedule 5 (which makes provision for, and in connection with, enabling the

Commission to require existing cases to transfer to the new maintenance

calculation rules or to leave the statutory scheme, so far as future accrual of

liability is concerned) has effect.

Collection and enforcement

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19      

Use of deduction from earnings orders as basic method of payment

In section 29 of the Child Support Act 1991 (c. 48) (under which payments of

child support maintenance are to be made in accordance with regulations) at

the end insert—

“(4)   

If the regulations include provision for payment by means of deduction

20

in accordance with an order under section 31, they must make

provision—

(a)   

for that method of payment not to be used in any case where

there is good reason not to use it; and

(b)   

for the person against whom the order under section 31 would

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be made to have a right of appeal to a magistrates’ court (or, in

Scotland, to the sheriff) against a decision that the exclusion

required by paragraph (a) does not apply.

(5)   

On an appeal under regulations made under subsection (4)(b) the court

or (as the case may be) the sheriff shall not question the maintenance

30

calculation by reference to which the order under section 31 would be

made.

(6)   

Regulations under subsection (4)(b) may include—

(a)   

provision with respect to the period within which a right of

appeal under the regulations may be exercised;

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(b)   

provision with respect to the powers of a magistrates’ court (or,

in Scotland, of the sheriff) in relation to an appeal under the

regulations.

(7)   

If the regulations include provision for payment by means of deduction

in accordance with an order under section 31, they may make

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provision—

(a)   

prescribing matters which are, or are not, to be taken into

account in determining whether there is good reason not to use

that method of payment;

 
 

Child Maintenance and Other Payments Bill
Part 3 — Child Support etc.

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(b)   

prescribing circumstances in which good reason not to use that

method of payment is, or is not, to be regarded as existing.”

20      

Deduction from earnings orders: the liable person’s earnings

In section 31 of the Child Support Act 1991 (c. 48) (deduction from earnings

orders), for subsection (8) substitute—

5

“(8)   

In this section and section 32 “earnings” means (subject to such

exceptions as may be prescribed) any sums payable to a person which

fall within one or more of the following paragraphs—

(a)   

sums payable by way of wages or salary (including any fees,

bonus, commission, overtime pay or other emoluments payable

10

in addition to wages or salary or payable under a contract of

service);

(b)   

periodical payments by way of pension (including an annuity

payable for the purpose of providing a pension), whether or not

in respect of past services;

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(c)   

periodical payments by way of compensation for the loss,

abolition or relinquishment, or diminution in the emoluments,

of any office or employment;

(d)   

sums payable by way of statutory sick pay.

(9)   

For the purposes of this section and section 32 any person who (as a

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principal and not as a servant or agent) pays to the liable person any

earnings is to be treated as having the liable person in his employment;

and the following are to be read accordingly—

(a)   

in this section and section 32, references to the liable person’s

employer; and

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(b)   

in section 32(3), “employment”, “employed” and “re-

employed”.”

21      

Current account deduction orders

After section 32 of the Child Support Act 1991 insert—

“32A    

Current account deduction orders

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(1)   

If in relation to any person it appears to the Commission—

(a)   

that the person has failed to pay an amount of child support

maintenance;

(b)   

that the person holds a current account with a deposit-taker;

and

35

(c)   

that the account is not a joint account or an account operated

wholly or partly as a trade or business account;

   

it may make an order against that person to secure the payment of any

amount due under the maintenance calculation in question by means of

regular deductions from the account.

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(2)   

An order under this section may be made so as to secure the payment

of—

(a)   

arrears of child support maintenance payable under the

calculation;

 
 

Child Maintenance and Other Payments Bill
Part 3 — Child Support etc.

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(b)   

amounts of child support maintenance which will become

payable under the calculation; or

(c)   

both such arrears and such future amounts.

(3)   

An order under this section may be made in respect of amounts due

under a maintenance calculation which is the subject of an appeal only

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if it appears to the Commission—

(a)   

that liability for the amounts would not be affected were the

appeal to succeed; or

(b)   

where paragraph (a) does not apply, that the making of an order

under this section in respect of the amounts would nonetheless

10

be fair in all the circumstances.

(4)   

An order under this section—

(a)   

shall specify the current account in respect of which it is made;

(b)   

shall be expressed to be directed at the deposit-taker with which

the account is held; and

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(c)   

shall have effect from such date as may be specified in the order.

(5)   

An order under this section shall operate as an instruction to the

deposit-taker at which it is directed to—

(a)   

make deductions from the amount (if any) standing to the credit

of the account-holder in the account specified in the order; and

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(b)   

pay the amount deducted to the Commission.

(6)   

The Commission shall serve a copy of any order made under this

section on—

(a)   

the deposit-taker at which it is directed; and

(b)   

the person against whom it is made.

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(7)   

Where—

(a)   

an order under this section has been made; and

(b)   

a copy of the order has been served on the deposit-taker at

which it is directed,

   

it shall be the duty of that deposit-taker to comply with the order; but

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the deposit-taker shall not be under any liability for non-compliance

before the end of the period of 7 days beginning with the day on which

the copy was served on the deposit-taker.

(8)   

Where regulations have been made under section 29(3)(a), a person

liable to pay an amount of child support maintenance is to be taken for

35

the purposes of this section to have failed to pay an amount of child

support maintenance unless it is paid to or through the person specified

in, or by virtue of, the regulations for the case in question.

32B     

Regulations about orders under section 32A

(1)   

The Secretary of State may by regulations make provision with respect

40

to orders under section 32A.

(2)   

Regulations under subsection (1) may, in particular, make provision—

(a)   

requiring an order to specify the amount or amounts in respect

of which it is made;

(b)   

requiring an order to specify the amounts which are to be

45

deducted under it in order to meet liabilities under the

maintenance calculation in question;

 
 

Child Maintenance and Other Payments Bill
Part 3 — Child Support etc.

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(c)   

requiring an order to specify the dates on which deductions are

to be made under it;

(d)   

for the rate of deduction under an order not to exceed such rate

as may be specified in, or determined in accordance with, the

regulations;

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(e)   

as to circumstances in which amounts standing to a person’s

credit in a current account are to be disregarded for the

purposes of section 32A;

(f)   

as to the payment of sums deducted under an order to the

Commission;

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(g)   

allowing the deposit-taker which deducts and pays any amount

under an order also to deduct a prescribed amount towards its

administrative costs from the account specified in the order;

(h)   

with respect to notifications to be given to the person against

whom an order is made of amounts deducted, and amounts

15

paid, under the order;

(i)   

requiring the deposit-taker at which an order is directed to

notify the Commission in the prescribed manner and within a

prescribed period—

(i)   

if the account specified in the order does not exist at the

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time at which the order is served on the deposit-taker;

(ii)   

of any other accounts held with the deposit-taker at that

time by the person against whom the order is made;

(j)   

requiring the deposit-taker at which an order is directed to

notify the Commission in the prescribed manner and within a

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prescribed period if, after the time at which the order is served

on the deposit-taker—

(i)   

the account specified in the order is closed;

(ii)   

a new account of any description is opened with the

deposit-taker by the person against whom the order is

30

made;

(k)   

as to circumstances in which an application may be made to the

Commission for it to review an order and as to such a review;

(l)   

for the variation of orders;

(m)   

similar to that made by section 32A(7), in relation to any

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variation of an order;

(n)   

for an order to lapse in such circumstances as may be

prescribed;

(o)   

as to the revival of an order in such circumstances as may be

prescribed;

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(p)   

allowing or requiring an order to be discharged;

(q)   

as to the giving of notice by the Commission to the deposit-taker

that an order has lapsed or ceased to have effect.

(3)   

The Secretary of State may by regulations make provision with respect

to     priority as between an order under section 32A and—

45

(a)   

any other order under that section;

(b)   

any order under any other enactment relating to England and

Wales which provides for deductions from the same current

account;

(c)   

any diligence done in Scotland against the same current

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account.

 
 

Child Maintenance and Other Payments Bill
Part 3 — Child Support etc.

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(4)   

The Secretary of State may by regulations make provision for any

person affected to have a right to appeal to a magistrates’ court (or, in

Scotland, to the sheriff)—

(a)   

against the making of an order under section 32A;

(b)   

against any decision made by the Commission on an

5

application under regulations made under subsection (2)(k).

(5)   

On an appeal under regulations made under subsection (4)(a), the court

or (as the case may be) the sheriff shall not question the maintenance

calculation by reference to which the order was made.

(6)   

Regulations under subsection (4) may include—

10

(a)   

provision with respect to the period within which a right of

appeal under the regulations may be exercised;

(b)   

provision with respect to the powers of a magistrates’ court (or,

in Scotland, of the sheriff) in relation to an appeal under the

regulations.

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32C     

Orders under section 32A: offences

(1)   

A person who fails to comply with the requirements of—

(a)   

an order under section 32A, or

(b)   

any regulation under section 32B which is designated by the

regulations for the purposes of this paragraph,

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commits an offence.

(2)   

It shall be a defence for a person charged with an offence under

subsection (1) to prove that the person took all reasonable steps to

comply with the requirements in question.

(3)   

A person guilty of an offence under subsection (1) shall be liable on

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summary conviction to a fine not exceeding level two on the standard

scale.”

22      

Lump sum deduction orders

After section 32C of the Child Support Act 1991 (c. 48) (inserted by section 21

of this Act) insert—

30

“32D    

Lump sum deductions: interim orders

(1)   

The Commission may make an order under this section if it appears to

the Commission—

(a)   

that a person (referred to in this section and section 32E as “the

liable person”) has failed to pay an amount of child support

35

maintenance; and

(b)   

that an amount to which subsection (2) applies is due or

accruing to the liable person from another person (referred to in

this section and sections 32E to 32G as the “third party”).

(2)   

This subsection applies to any amount—

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(a)   

that stands to the credit of the liable person in an account (other

than a current account, a joint account or an account operated

wholly or partly as a trade and business account) with a

deposit-taker; or

(b)   

that is of a prescribed description.

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Child Maintenance and Other Payments Bill
Part 3 — Child Support etc.

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(3)   

An order under this section—

(a)   

shall be expressed to be directed at the third party in question;

(b)   

shall specify the amount of arrears of child support

maintenance in respect of which the Commission proposes to

make an order under section 32E; and

5

(c)   

while in force shall operate as an instruction to the third party

not to do anything that would reduce the amount to which

subsection (2) applies that is due or accruing to the liable person

from the third party below the amount specified in the order

(or, if already below that amount, that would further reduce it).

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(4)   

If there is due or accruing to the liable person from the third party in

question more than one amount to which subsection (2) applies,

subsection (3)(c) shall have effect as if the reference to the amount to

which subsection (2) applies were to the total of the amounts so due or

accruing to which that subsection applies.

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(5)   

Subsection (3)(c) has effect subject to such exceptions as may be

prescribed.

(6)   

An order under this section may specify an amount of arrears due

under a maintenance calculation which is the subject of an appeal only

if it appears to the Commission—

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(a)   

that liability for the amount would not be affected were the

appeal to succeed; or

(b)   

where paragraph (a) does not apply, that the making of an order

under section 32E in respect of the amount would nonetheless

be fair in all the circumstances.

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(7)   

The Commission shall serve a copy of any order made under this

section on—

(a)   

the third party at which it is directed; and

(b)   

the liable person.

(8)   

An order under this section shall come into force at the time at which it

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is served on the third party at which it is directed.

(9)   

An order under this section shall cease to be in force at the earliest of

the following—

(a)   

the time at which the prescribed period ends;

(b)   

the time at which the order under this section lapses or is

35

discharged; and

(c)   

the time at which an order under section 32E made in pursuance

of the proposal specified in the order under this section is

served on the third party at which that order is directed.

(10)   

Where regulations have been made under section 29(3)(a), a person

40

liable to pay an amount of child support maintenance is to be taken for

the purposes of this section to have failed to pay the amount unless it is

paid to or through the person specified in, or by virtue of, the

regulations for the case in question.

32E     

Lump sum deductions: final orders

45

(1)   

The Commission may make an order under this section in pursuance of

a proposal specified in an order under section 32D if—

 
 

Child Maintenance and Other Payments Bill
Part 3 — Child Support etc.

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(a)   

the order in which the proposal was specified (“the interim

order”) is in force;

(b)   

the period prescribed for the making of representations to the

Commission in respect of the proposal specified in the interim

order has expired; and

5

(c)   

the Commission has considered any representations made to it

during that period.

(2)   

An order under this section—

(a)   

shall be expressed to be directed at the third party at which the

interim order was directed; and

10

(b)   

shall specify the amount of arrears of child support

maintenance in respect of which it is made.

(3)   

The amount so specified shall not exceed the amount of arrears

specified in the interim order which remain unpaid at the time at which

the order under this section is made.

15

(4)   

An order under this section may specify an amount of arrears due

under a maintenance calculation which is the subject of an appeal only

if it appears to the Commission—

(a)   

that liability for the amount would not be affected were the

appeal to succeed; or

20

(b)   

where paragraph (a) does not apply, that the making of an order

under this section in respect of the amount would nonetheless

be fair in all the circumstances.

(5)   

The Commission shall serve a copy of any order made under this

section on—

25

(a)   

the third party at which it is directed; and

(b)   

the liable person.

(6)   

During the relevant period, an order under this section shall operate as

an instruction to the third party not to do anything that would reduce

the amount to which section 32D(2) applies that is due or accruing to

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the liable person from the third party below the amount specified in the

order (or, if already below that amount, that would further reduce it).

(7)   

If there is due or accruing to the liable person from the third party in

question more than one amount to which section 32D(2) applies,

subsection (6) shall have effect as if the reference to the amount to

35

which section 32D(2) applies were to the total of the amounts so due or

accruing to which that provision applies.

(8)   

Subsection (6) has effect subject to such exceptions as may be

prescribed.

(9)   

Once the relevant period has ended, an order under this section shall

40

operate as an instruction to the third party at which it is directed to pay

to the Commission the lesser of the following—

(a)   

an amount equal to the amount of arrears specified in the order

which remain unpaid at that time; and

(b)   

the amount to which section 32D(2) applies that is due or

45

accruing to the liable person or, if there is more than one such

amount, the total of those amounts.

 
 

 
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