PARLIAMENTARY WRITTEN QUESTION
(18 March 2025)

To ask the Secretary of State for Work and Pensions, what steps her Department is taking to review the calculation of child maintenance payments, in the context of the use of gross salaries for assessments; and what assessment she has made of the potential merits of adjusting those calculations to reflect (a) the disposable income of paying parents after deductions and (b) any unusual expenses.

Asked by:
Richard Tice (Reform UK)

Information about the paying parent's gross income is taken directly from HM Revenue and Customs (HMRC) for the latest tax year available. This allows calculations to be made quickly and accurately. Any income subject to income tax, including bonuses and overtime received by an employed paying parent, is included within their gross weekly income when calculating a child maintenance liability.

Generally, the Child Maintenance Service (CMS) caseload is governed by broad administrative rules and does not provide bespoke solutions for individual cases. However, there is some scope to take account of specific situations. Variations allow the Child Maintenance Service to look at some circumstances which are not covered by the basic maintenance calculation. Either parent may apply for a variation at any time during the life of their case, provided enough information for an appropriate ground can be identified. If a variation application is successful, the maintenance calculation will be adjusted accordingly.

The department is reviewing the calculation to make sure it is fit for purpose. This has included updating the underlying research and considering how we ensure the calculation reflects current and future societal trends.

Answered by:
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