The Department for Work and Pensions have started writing to parents who pay and receive child maintenance payments through the Child Support Agency (CSA), warning them that fees will be introduced later in the year for those continuing to use the Child Maintenance Service (CMS) , the agency replacing the CSA, to collect and pay maintenance.
Paying parents will pay an additional 20% on top of the maintenance amount, whilst receiving parents will have 4% deducted. For example, if the child maintenance amount is £100, the paying parent will pay £120, the receiving parent will receive £96.
To avoid paying these fees, the DWP have advised parents to set up voluntary arrangements between themselves and to not use the CMS for collection and payment of the child maintenance.
If you would like advice on setting up a child maintenance arrangement please contact our Family team on 0208 891 6141 to arrange an appointment.