Child Maintenance and Other Payments Bill

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

Child Maintenance and Other Payments Bill

Child Maintenance and Other Payments Bill
Part 3 — Child support etc.
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restricting the exercise of that power by virtue of change of
circumstance;
(b)
make provision with respect to the consideration by the
Commission, when acting under subsection (1), of any issue
which has not led to its so acting;
5
(c)
make provision with respect to procedure in relation to the
exercise of the power under subsection (1).”
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Transfer of cases to new rules
Schedule 5 (which makes provision for, and in connection with, enabling the
Commission to require existing cases to transfer to the new maintenance
10
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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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
15
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
in accordance with an order under section 31, they must make
provision—
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(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
be made to have a right of appeal to a magistrates’ court (or, in
Scotland, to the sheriff) against a decision that the exclusion
25
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
calculation by reference to which the order under section 31 would be
made.
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(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;
(b)
provision with respect to the powers of a magistrates’ court (or,
in Scotland, of the sheriff) in relation to an appeal under the
35
regulations.
(7)
If the regulations include provision for payment by means of deduction
in accordance with an order under section 31, they may make
provision—
(a)
prescribing matters which are, or are not, to be taken into
40
account in determining whether there is good reason not to use
that method of payment;
(b)
prescribing circumstances in which good reason not to use that
method of payment is, or is not, to be regarded as existing.”

Child Maintenance and Other Payments Bill
Part 3 — Child support etc.
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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—
“(8)
In this section and section 32 “earnings” means (subject to such
exceptions as may be prescribed) any sums payable to a person which
5
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
in addition to wages or salary or payable under a contract of
service);
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(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;
(c)
periodical payments by way of compensation for the loss,
abolition or relinquishment, or diminution in the emoluments,
15
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
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;
20
and the following are to be read accordingly—
(a)
in this section and section 32, references to the liable person’s
employer; and
(b)
in section 32(3), “employment”, “employed” and “re-
employed”.”
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21
Current account deduction orders
After section 32 of the Child Support Act 1991 insert—
“32A
Current account deduction orders
(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
30
maintenance;
(b)
that the person holds a current account with a deposit-taker;
and
(c)
that the account is not a joint account or an account operated
wholly or partly as a trade or business account;
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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.
(2)
An order under this section may be made so as to secure the payment
of—
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(a)
arrears of child support maintenance payable under the
calculation;
(b)
amounts of child support maintenance which will become
payable under the calculation; or
(c)
both such arrears and such future amounts.
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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 may be made in respect of amounts due
under a maintenance calculation which is the subject of an appeal only
if it appears to the Commission—
(a)
that liability for the amounts would not be affected were the
appeal to succeed; or
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(b)
where paragraph (a) does not apply, that the making of an order
under this section in respect of the amounts would nonetheless
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;
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(b)
shall be expressed to be directed at the deposit-taker with which
the account is held; and
(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—
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(a)
make deductions from the amount (if any) standing to the credit
of the account-holder in the account specified in the order; and
(b)
pay the amount deducted to the Commission.
(6)
The Commission shall serve a copy of any order made under this
section on—
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(a)
the deposit-taker at which it is directed; and
(b)
the person against whom it is made.
(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
25
which it is directed,

it shall be the duty of that deposit-taker to comply with the order; but
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.
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(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
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.
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32B
Regulations about orders under section 32A
(1)
The Secretary of State may by regulations make provision with respect
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
40
of which it is made;
(b)
requiring an order to specify the amounts which are to be
deducted under it in order to meet liabilities under the
maintenance calculation in question;
(c)
requiring an order to specify the dates on which deductions are
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to be made under it;

Child Maintenance and Other Payments Bill
Part 3 — Child support etc.
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(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;
(e)
as to circumstances in which amounts standing to a person’s
credit in a current account are to be disregarded for the
5
purposes of section 32A;
(f)
as to the payment of sums deducted under an order to the
Commission;
(g)
allowing the deposit-taker which deducts and pays any amount
under an order also to deduct a prescribed amount towards its
10
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
paid, under the order;
(i)
requiring the deposit-taker at which an order is directed to
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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
time at which the order is served on the deposit-taker;
(ii)
of any other accounts held with the deposit-taker at that
20
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
prescribed period if, after the time at which the order is served
on the deposit-taker—
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(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
made;
(k)
as to circumstances in which an application may be made to the
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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
variation of an order;
(n)
for an order to lapse in such circumstances as may be
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prescribed;
(o)
as to the revival of an order in such circumstances as may be
prescribed;
(p)
allowing or requiring an order to be discharged;
(q)
as to the giving of notice by the Commission to the deposit-taker
40
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—
(a)
any other order under that section;
(b)
any order under any other enactment relating to England and
45
Wales which provides for deductions from the same current
account;
(c)
any diligence done in Scotland against the same current
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.”
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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
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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
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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
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(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
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(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.
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(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
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(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—
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(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
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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
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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
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accruing to the liable person or, if there is more than one such
amount, the total of those amounts.