Child Maintenance and Other Payments Bill

House of Lords

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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of this Act) insert—
“32E
Lump sum deductions: interim orders
(1)
The Commission may make an order under this section if it appears to
the Commission that a person (referred to in this section and sections
32F to 32J as “the liable person”) has failed to pay an amount of child
5
support maintenance and—
(a)
an amount stands to the credit of an account held by the liable
person with a deposit-taker; or
(b)
an amount not within paragraph (a) that is of a prescribed
description is due or accruing to the liable person from another
10
person (referred to in this section and sections 32F to 32J as the
“third party”).
(2)
An order under this section—
(a)
may not be made by virtue of subsection (1)(a) in respect of an
account of a prescribed description; and
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(b)
may be made by virtue of subsection (1)(a) in respect of a joint
account which is held by the liable person and one or more
other persons, and which is not of a description prescribed
under paragraph (a) of this subsection, if (but only if)
regulations made by the Secretary of State so provide.
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(3)
The Secretary of State may by regulations make provision as to
conditions that are to be disregarded in determining whether an
amount is due or accruing to the liable person for the purposes of
subsection (1)(b).
(4)
An order under this section—
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(a)
shall be expressed to be directed at the deposit-taker or third
party in question;
(b)
if made by virtue of subsection (1)(a), shall specify the account
in respect of which it is made; and
(c)
shall specify the amount of arrears of child support
30
maintenance in respect of which the Commission proposes to
make an order under section 32F.
(5)
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—
35
(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 32F in respect of the amount would nonetheless
be fair in all the circumstances.
40
(6)
The Commission shall serve a copy of any order made under this
section on—
(a)
the deposit-taker or third party at which it is directed;
(b)
the liable person; and
(c)
if the order is made in respect of a joint account, the other
45
account-holders.
(7)
An order under this section shall come into force at the time at which it
is served on the deposit-taker or third party at which it is directed.

Child Maintenance and Other Payments Bill
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(8)
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
discharged; and
5
(c)
the time at which an order under section 32F made in pursuance
of the proposal specified in the order under this section is
served on the deposit-taker or third party at which that order is
directed.
(9)
Where regulations have been made under section 29(3)(a), a person
10
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.
32F
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 32E if—
(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
20
Commission in respect of the proposal specified in the interim
order has expired; and
(c)
the Commission has considered any representations made to it
during that period.
(2)
An order under this section—
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(a)
shall be expressed to be directed at the deposit-taker or third
party at which the interim order was directed;
(b)
if the interim order was made by virtue of section 32E(1)(a),
shall specify the account specified in the interim order; and
(c)
shall specify the amount of arrears of child support
30
maintenance in respect of which it is made.
(3)
The amount so specified—
(a)
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; and
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(b)
if the order is made in respect of a joint account, shall not exceed
the amount that appears to the Commission to be fair in all the
circumstances.
(4)
In determining the amount to be specified in an order made in respect
of a joint account the Commission shall have particular regard—
40
(a)
to the amount contributed to the account by each of the account-
holders; and
(b)
to such other matters as may be prescribed.
(5)
An order under this section may specify an amount of arrears 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 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.
(6)
The Commission shall serve a copy of any order made under this
section on—
5
(a)
the deposit-taker or third party at which it is directed;
(b)
the liable person; and
(c)
if the order is made in respect of a joint account, the other
account-holders.
32G
Orders under sections 32E and 32F: freezing of accounts etc.
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(1)
During the relevant period, an order under section 32E or 32F which
specifies an account held with a deposit-taker shall operate as an
instruction to the deposit-taker not to do anything that would reduce
the amount standing to the credit of the account below the amount
specified in the order (or, if already below that amount, that would
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further reduce it).
(2)
During the relevant period, any other order under section 32E or 32F
shall operate as an instruction to the third party at which it is directed
not to do anything that would reduce the amount due to the liable
person below the amount specified in the order (or, if already below
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that amount, that would further reduce it).
(3)
Subsections (1) and (2) have effect subject to regulations made under
section 32I(1).
(4)
In this section “the relevant period”, in relation to an order under
section 32E, means the period during which the order is in force.
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(5)
In this section and section 32H “the relevant period”, in relation to an
order under section 32F, means the period which—
(a)
begins with the service of the order on the deposit-taker or third
party at which it is directed; and
(b)
(subject to subsection (6)) ends with the end of the period
30
during which an appeal can be brought against the order by
virtue of regulations under section 32J(5).
(6)
If an appeal is brought by virtue of the regulations, the relevant period
ends at the time at which—
(a)
proceedings on the appeal (including any proceedings on a
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further appeal) have been concluded; and
(b)
any period during which a further appeal may ordinarily be
brought has ended.
(7)
References in this section and sections 32H and 32J to the amount due
to the liable person are to be read as references to the total of any
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amounts within section 32E(1)(b) that are due or accruing to the liable
person from the third party in question.
32H
Orders under section 32F: deductions and payments
(1)
Once the relevant period has ended, an order under section 32F which
specifies an account held with a deposit-taker shall operate as an
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instruction to the deposit-taker—

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(a)
if the amount standing to the credit of the account is less than
the remaining amount, to pay to the Commission the amount
standing to the credit of the account; and
(b)
otherwise, to deduct from the account and pay to the
Commission the remaining amount.
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(2)
If an amount of arrears specified in the order remains unpaid after any
payment required by subsection (1) has been made, the order shall
operate until the relevant time as an instruction to the deposit-taker—
(a)
to pay to the Commission any amount (not exceeding the
remaining amount) standing to the credit of the account
10
specified in the order; and
(b)
not to do anything else that would reduce the amount standing
to the credit of the account.
(3)
Once the relevant period has ended, any other order under section 32F
shall operate as an instruction to the third party at which it is directed—
15
(a)
if the amount due to the liable person is less than the remaining
amount, to pay to the Commission the amount due to the liable
person; and
(b)
otherwise, to deduct from the amount due to the liable person
and pay to the Commission the remaining amount.
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(4)
If an amount of arrears specified in the order remains unpaid after any
payment required by subsection (3) has been made, the order shall
operate until the relevant time as an instruction to the third party—
(a)
to pay to the Commission any amount (not exceeding the
remaining amount) due to the liable person; and
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(b)
not to do anything else that would reduce any amount due to
the liable person.
(5)
This section has effect subject to regulations made under sections 32I(1)
and 32J(2)(c).
(6)
In this section—
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“the relevant time” means the earliest of the following—
(a)
the time at which the remaining amount is paid;
(b)
the time at which the order lapses or is discharged; and
(c)
the time at which a prescribed event occurs or
prescribed circumstances arise;
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“the remaining amount”, in relation to any time, means the
amount of arrears specified in the order under section 32F
which remains unpaid at that time.
32I
Power to disapply sections 32G(1) and (2) and 32H(2)(b) and (4)(b)
(1)
The Secretary of State may by regulations make provision as to
40
circumstances in which things that would otherwise be in breach of
sections 32G(1) and (2) and 32H(2)(b) and (4)(b) may be done.
(2)
Regulations under subsection (1) may require the Commission’s
consent to be obtained in prescribed circumstances.
(3)
Regulations under subsection (1) which require the Commission’s
45
consent to be obtained may provide for an application for that consent
to be made—

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(a)
by the deposit-taker or third party at which the order under
section 32E or 32F is directed;
(b)
by the liable person; and
(c)
if the order is made in respect of a joint account, by any of the
other account-holders.
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(4)
If regulations under subsection (1) require the Commission’s consent to
be obtained, the Secretary of State shall by regulations provide for a
person of a prescribed description to have a right of appeal to a court
against the withholding of that consent.
(5)
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 the court to which the
appeal under the regulations lies.
32J
Regulations about orders under section 32E or 32F
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(1)
The Secretary of State may by regulations make provision with respect
to orders under section 32E or 32F.
(2)
The regulations may, in particular, make provision—
(a)
as to circumstances in which amounts standing to the credit of
an account are to be disregarded for the purposes of sections
20
32E, 32G and 32H;
(b)
as to the payment to the Commission of sums deducted under
an order under section 32F;
(c)
allowing a deposit-taker or third party at which an order under
section 32F is directed to deduct from the amount standing to
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the credit of the account specified in the order, or due to the
liable person, a prescribed amount towards its administrative
costs before making any payment to the Commission required
by section 32H;
(d)
with respect to notifications to be given to the liable person
30
(and, in the case of an order made in respect of a joint account,
to the other account-holders) as to amounts deducted, and
amounts paid, under an order under section 32F;
(e)
requiring a deposit-taker or third party at which an order under
section 32E or 32F is directed to supply information of a
35
prescribed description to the Commission, or to notify the
Commission if a prescribed event occurs or prescribed
circumstances arise;
(f)
for the variation of an order under section 32E or 32F;
(g)
for an order under section 32E or 32F to lapse in such
40
circumstances as may be prescribed;
(h)
as to the revival of an order under section 32E or 32F in such
circumstances as may be prescribed;
(i)
allowing or requiring an order under section 32E or 32F to be
discharged.
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(3)
Where regulations under subsection (1) make provision for the
variation of an order under section 32E or 32F, the power to vary the
order shall not be exercised so as to increase the amount of arrears of
child support maintenance specified in the order.

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(4)
The Secretary of State may by regulations make provision with respect
to priority as between an order under section 32F and—
(a)
any other order under that section;
(b)
any order under any other enactment relating to England and
Wales which provides for payments to be made from amounts
5
to which the order under section 32F relates;
(c)
any diligence done in Scotland against amounts to which the
order under section 32F relates.
(5)
The Secretary of State shall by regulations make provision for any
person affected by an order under section 32F to have a right to appeal
10
to a court against the making of the order.
(6)
On an appeal under regulations under subsection (5), the court shall
not question the maintenance calculation by reference to which the
order under section 32F was made.
(7)
Regulations under subsection (5) may include—
15
(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 the court to which the
appeal under the regulations lies.
32K
Lump sum deduction orders: offences
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(1)
A person who fails to comply with the requirements of—
(a)
an order under section 32E or 32F; or
(b)
any regulation under section 32J which is designated by the
regulations for the purposes of this paragraph,

commits an offence.
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(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
summary conviction to a fine not exceeding level two on the standard
30
scale.”
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Orders preventing avoidance
After section 32K of the Child Support Act 1991 (inserted by section 23 of this
Act) insert—
“32L
Orders preventing avoidance
35
(1)
The Commission may apply to the court, on the grounds that a
person—
(a)
has failed to pay an amount of child support maintenance, and
(b)
with the intention of avoiding payment of child support
maintenance, is about to make a disposition or to transfer out of
40
the jurisdiction or otherwise deal with any property,

for an order restraining or, in Scotland, interdicting the person from
doing so.

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(2)
The Commission may apply to the court, on the grounds that a
person—
(a)
has failed to pay an amount of child support maintenance, and
(b)
with the intention of avoiding payment of child support
maintenance, has at any time made a reviewable disposition,
5

for an order setting aside or, in Scotland, reducing the disposition.
(3)
If the court is satisfied of the grounds mentioned in subsection (1) or (2)
it may make an order under that subsection.
(4)
Where the court makes an order under subsection (1) or (2) it may make
such consequential provision by order or directions as it thinks fit for
10
giving effect to the order (including provision requiring the making of
any payments or the disposal of any property).
(5)
Any disposition is a reviewable disposition for the purposes of
subsection (2), unless it was made for valuable or, in Scotland, adequate
consideration (other than marriage) to a person who, at the time of the
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disposition, acted in relation to it in good faith and without notice of an
intention to avoid payment of child support maintenance.
(6)
Subsection (7) applies where an application is made under this section
with respect to—
(a)
a disposition or other dealing with property which is about to
20
take place, or
(b)
a disposition which took place after the making of the
application on which the maintenance calculation concerned
was made.
(7)
If the court is satisfied—
25
(a)
in a case falling within subsection (1), that the disposition or
other dealing would (apart from this section) have the
consequence of making ineffective a step that has been or may
be taken to recover the amount outstanding, or
(b)
in a case falling within subsection (2), that the disposition has
30
had that consequence,

it is to be presumed, unless the contrary is shown, that the person who
disposed of or is about to dispose of or deal with the property did so or,
as the case may be, is about to do so, with the intention of avoiding
payment of child support maintenance.
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(8)
In this section “disposition” does not include any provision contained
in a will or codicil but, with that exception, includes any conveyance,
assurance or gift of property of any description, whether made by an
instrument or otherwise.
(9)
This section does not apply to a disposition made before the coming
40
into force of section 24 of the Child Maintenance and Other Payments
Act 2008.
(10)
In this section “the court” means—
(a)
in relation to England and Wales, the High Court;
(b)
in relation to Scotland, the Court of Session or the sheriff.
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(11)
An order under this section interdicting a person—