Select Committee on Work and Pensions Fourth Report


Annex 1

  "Old Scheme"
5 April 1993 - 2 March 003 
"New Scheme"
3 March 2003 - current 
White Paper proposals 
Incomes used in formula  NRP and PWC  NRP only  NRP only 
Income figure used  Assessable income (net income less exempt income)  Net Income Gross Income  
Percentage rate of income for each child  Maintenance assessment included element based on income support rate for each child, but no direct correlation between number of children and amount of assessment  15/20/25 10/15/20 to reflect change in basis of assessment from net to gross income  
Percentage rate deducted for each child in NRP's new family  Formula made limited allowance for NRP's new children - e.g. at exempt income stage for new natural children and only at protected income stage for new step-children  15/20/25 (applied before 15/20/25 for "qualifying children" who are subject of the assessment)  10/15/20 (as above) 
Threshold for shared care to affect assessment  104 nights a year minimum  52 nights a year minimum  White Paper is silent, though deals with (much less common) cases of split care[323]  
Notice of change of income to affect assessment  Any time for change if £10 p w or more  Anytime for changes of more than 5%  1 year fixed awards more than 25%  
Flat rate for NRP on benefits or on low income  £5.80 p w (uprated annually)  £5.00 p w (not changed since 2003)  £7.00 p w  
Up to what age maintenance is paid for qualifying child?  16/17/18 year old - traditional child benefit definition used  16/17/18 year old - traditional child benefit definition used  18/19 year old - new child benefit definition (CBA 2005) to be used  
Number of pieces of information needed to make a calculation  Over 100 items Much less than old system but still need information to calculate net income  3 items

- gross income

- number of qualifying children

- number of children living with NRP  

Maintenance disregard for PWC on benefit  No maintenance kept by PWC in receipt of benefit  £10 Child Maintenance Premium  More maintenance to be kept but amount not yet set  
Inter-relationship with court consent orders in private cases  Consent order in private case excluded CSA indefinitely (unless PWC later claimed benefit)  Consent order in private case excluded CSA for 12 months only  Consent orders will exclude CSA for 12 months only (private and benefit cases)  

323   "Split care" is where one child lives with one parent and another child with the other parent. "Shared care" is where they both live with PWC but have regular contact with NRP (i.e. more than 104 or 52 nights a year, depending on whether covered by old or new scheme). Back


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