Child Maintenance and Other Payments Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

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

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Schedule 5 — Maintenance calculations: transfer of cases to new rules
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(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
68

(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 20 (appeals to appeal tribunals), in subsection (1), after paragraph
20
(b) insert—
“(ba)
a decision of the Commission to make a liability order under
section 32I;”.
      (4)
In subsection (2) of that section, after paragraph (a) insert—
“(aa)
in relation to paragraph (ba), the person against whom the
25
order is made;”.
      (5)
After subsection (5) of that section insert—
“(5A)
An appeal lies by virtue of subsection (1)(ba) only on the following
grounds—
(a)
that the person has not failed to pay an amount of child
30
support maintenance;
(b)
that the amount in respect of which the liability order is made
exceeds the amount of child support maintenance which the
person has failed to pay.”
      (6)
After subsection (7) of that section insert—
35
“(7A)
In deciding an appeal against a decision of the Commission to make
a liability order, an appeal tribunal shall not question the
maintenance calculation by reference to which the liability order was
made.”
      (7)
In section 30 (collection and enforcement of other forms of maintenance), in
40
subsections (4) and (5) for “which he is authorised to collect under this