2026/09/03

The Staggering Cost to the Taxpayer



 

Child Maintenance Service Fees Raised £235 Million — Yet Taxpayers Still Paid at Least £367 Million

The Child Maintenance Service charges substantial fees when parents use its Collect and Pay service.

Paying parents are charged an additional 20% on top of their child maintenance liability, while receiving parents lose 4% of the maintenance collected for their children.

These charges are supposed to contribute towards the cost of running the service. But how much do they actually cover—and how much does the taxpayer still pay?

Official Department for Work and Pensions figures reveal that, between 2019/20 and 2023/24:

  • Core CMS operations cost approximately £602 million.

  • Collect and Pay fees generated approximately £235.4 million.

  • After deducting those fees, the estimated cost to taxpayers was still approximately £366.6 million.

In other words, Collect and Pay fees covered only around 39% of the CMS’s core operating expenditure during these five years. Taxpayers effectively covered the remaining 61%.

CMS costs and fees by year

All figures are in millions.

Financial yearCore CMS operating costPaying-parent feesReceiving-parent feesTotal Collect and Pay feesEstimated taxpayer cost after fees
2019/20£146.2m£34.8m£6.8m£41.6m£104.6m
2020/21£115.1m£34.2m£6.7m£40.9m£74.2m
2021/22£120.7m£38.5m£7.5m£46.0m£74.7m
2022/23£104.1m£41.3m£8.0m£49.3m£54.8m
2023/24£115.9m£48.2m£9.4m£57.6m£58.3m
Total£602.0m£197.0m£38.4m£235.4m£366.6m

The underlying figures were supplied by DWP in a parliamentary answer published on 9 June 2025.

The estimated taxpayer cost has been calculated by subtracting the reported Collect and Pay fee income from the reported core operating expenditure.

Parents paid almost £200 million in 20% charges

The largest source of fee income was the additional 20% charged to paying parents.

Across the five years, paying parents contributed approximately:

£197 million

Receiving parents lost a further:

£38.4 million

This produced combined Collect and Pay fee income of:

£235.4 million

This money was collected in addition to the child maintenance intended to support children.

For every £100 of maintenance collected through Collect and Pay:

  • The paying parent can be required to pay £120.

  • The receiving parent receives only £96.

  • The government can therefore collect up to £24 in combined fees.

The fee is charged only when money is successfully collected.

Are CMS fees covering more of its costs?

The proportion of core operating costs covered by fees has increased considerably.

Financial yearPercentage of core costs covered by fees
2019/2028.5%
2020/2135.5%
2021/2238.1%
2022/2347.4%
2023/2449.7%

By 2023/24, fees were equivalent to almost half of the narrowly defined core operating costs.

However, that does not mean parents funded half of the CMS’s total economic cost.

The true taxpayer cost is probably higher

The DWP figures exclude several important categories of expenditure, including:

  • Digital services and technology

  • Buildings and estates

  • Other central DWP overheads

  • Some modernisation and transformation expenditure

The estimated £366.6 million taxpayer contribution is therefore a conservative figure.

It represents the remaining cost after fees have been deducted from core CMS operational spending. It does not represent every public cost associated with maintaining, developing and supporting the service.

The National Audit Office previously reported that the net cost of running the wider Child Maintenance Group was £322 million in 2020/21. That broader figure included activity and costs falling outside the narrower operational definition used in the parliamentary answer.

The National Audit Office’s 2022 Child Maintenance report also found that DWP had not achieved the reduction in administrative costs originally anticipated.

What happened in 2024/25?

The CMS Client Funds Account records £70.8 million in non-child-maintenance receipts during 2024/25, compared with £60.6 million in the preceding year.

However, this figure is broader than the Collect and Pay fees shown in the main table. It principally includes collection and enforcement charges but can also contain other non-maintenance receipts.

DWP has not published a directly comparable core operating-cost figure for 2024/25 alongside it. It would therefore be misleading to add the £70.8 million to the five-year total without further information.

The figure is available in the 2012 Child Maintenance Scheme Client Funds Account for 2024/25.

Why can’t we go further back?

The Child Maintenance Service began in December 2012, replacing the Child Support Agency. Collect and Pay fees were introduced in 2014.

In theory, this means a financial comparison should be possible from 2014/15 onwards.

The problem is that DWP did not maintain a clean separation between the operating costs of the new CMS and those of the remaining CSA schemes during the transition.

The National Audit Office reported that DWP was unable to separate the costs of the Child Support Agency schemes from those of the Child Maintenance Service.

Historical figures describing the cost of the statutory child-maintenance system therefore include a mixture of:

  • CMS cases

  • Remaining CSA cases

  • Closing the old schemes

  • Managing historic CSA arrears

  • Transition and reform expenditure

Using those figures as though they related solely to CMS would create a misleading comparison.

A Freedom of Information request is now needed for equivalent CMS-only figures covering 2014/15 to 2018/19, together with the complete figures for 2024/25.

Did Collect and Pay fees achieve their purpose?

The government introduced the charges for three principal reasons:

  1. To contribute towards the cost of the service.

  2. To encourage parents to make private family-based arrangements.

  3. To encourage paying parents to pay voluntarily through Direct Pay.

The figures show that the fees have made a substantial financial contribution. They generated more than £235 million over five years and covered a growing share of narrowly defined operating expenditure.

But this raises an important policy question.

Many families use Collect and Pay because payments have already failed or because direct financial contact between the parents may be unsafe or inappropriate. Receiving parents can therefore lose 4% of money intended for their children because the other parent has not paid reliably.

At the same time, the additional 20% charge can make an already difficult debt substantially harder for the paying parent to clear.

Despite imposing these charges on both parents, the service still required an estimated taxpayer subsidy of at least £366.6 million over five years—and that calculation excludes major central, digital and property costs.

The bottom line

Between 2019/20 and 2023/24, parents paid approximately £235.4 million in Collect and Pay fees.

Nevertheless, after those fees were taken into account, taxpayers still contributed an estimated £366.6 million towards core CMS operations.

The full public cost was almost certainly higher because the published operational figures exclude digital, estates and central DWP expenditure.

The essential figures are:

  • Core CMS operating expenditure: £602 million

  • Collect and Pay fees: £235.4 million

  • Estimated taxpayer cost after fees: £366.6 million

  • Core costs recovered through fees: 39%

  • Core costs left to taxpayers: 61%

The government is entitled to argue that the fees offset some of the cost of providing Collect and Pay. But it should publish a complete annual account showing exactly what the CMS costs, how much parents contribute through every type of fee and how much taxpayers ultimately pay.

Without that transparency, neither Parliament nor parents can properly judge whether the Child Maintenance Service is delivering value for money.

2026/04/12

How CMS Calculates Child Maintenance

 How CMS Calculates Child Maintenance:

The CMS uses a straightforward formula to determine payments. Here's a breakdown: Gross Weekly Income: The paying parent's gross weekly income is divided into bands. Income Bands: Up to £100 or if on benefits: Flat rate of £7 per week. £100.01 to £199.99: Reduced rate. £200 to £800: Basic rate. £800.01 to £3,000: Basic plus rate. Percentage Based on Number of Children: One child: 12% of gross weekly income. Two children: 16% of gross weekly income. Three or more children: 19% of gross weekly income. Shared Care Reduction: The amount is reduced if children spend a certain number of nights per year with the paying parent: *Shared Care Bands* Band A 52 to 103 nights: 1/7th reduction. Band B 104 to 155 nights: 2/7th reduction. Band C 156 to 174 nights: 3/7th reduction. Band Equal 175 or more nights: 50% reduction plus an additional £7 reduction. Example Calculation: Gross Weekly Income: £600 Number of Children: 2 Shared Care: 104 nights per year Calculation: Basic rate for two children: 16% of £600 = £96 Reduction for shared care: £96 - (£96 * 2/7) = £68.57 Final weekly payment: Approximately £68.57 Additional Factors Considered by CMS: Additional Income: Bonuses or overtime pay can affect payment calculations. Other Children: If the paying parent has other children, their taxable income used for calculations is adjusted. One other child: Income reduced by 11%. Two other children: Income reduced by 14%. Three or more other children: Income reduced by 16%. Unemployment and Benefits: If the paying parent is out of work and claiming Universal Credit, they typically pay £1 per day, amounting to £7 weekly. *Pension Contributions:* Pension contributions can also reduce the income considered for child maintenance calculations. Using the CMS ensures that child maintenance payments are calculated fairly and enforced legally. Understanding how these calculations work can help both paying and receiving parents manage expectations and plan accordingly.

2026/04/03

CMS Mileage Claims Explained (2026): Child Maintenance, Fuel Rates and Contact Costs




CMS Mileage Claims Explained (2026)

How contact costs, fuel rates and Child Maintenance Service rules affect paying parents in England, Wales and Scotland

If you are a paying parent and you regularly travel to see your child, the Child Maintenance Service (CMS) may be able to take some of those travel costs into account.

The key point is this: CMS does not pay you mileage back in cash, and it does not use the standard 45p per mile business mileage rate that many people know from work expenses. Instead, travel for contact can be treated as a special expense, which may reduce the income figure CMS uses when calculating child maintenance.

This guide explains how CMS mileage claims work, who can claim, the current advisory fuel rates, and what evidence can help if you apply.

Who can claim mileage through CMS?

Only the paying parent can claim mileage as a contact cost through CMS.

This is one of the most common points of confusion. The receiving parent cannot use this special-expenses route to claim mileage.

Older guidance and articles often refer to the “resident parent” and “non-resident parent”. More recent language usually uses receiving parent and paying parent, but the practical point stays the same: the mileage rule only applies to the paying parent who is incurring contact costs.

What counts as a contact cost?

Mileage is only one part of contact costs.

Where the facts support it, CMS may also look at things such as:

  • public transport fares
  • taxi fares in limited situations, for example where disability or long-term illness makes other travel impracticable
  • car hire where it is cheaper overall
  • overnight accommodation where a same-day return is impracticable or contact takes place over consecutive days
  • some tolls, bridge charges and road charges
  • in some cases, the cost of a necessary third party travelling with the paying parent or child

That said, not every motoring cost counts. The guidance is about fuel for contact journeys, not wider running costs such as insurance, servicing, tyres or depreciation.

CMS does not use 45p per mile

Many parents assume CMS uses the standard 45p per mile HMRC business mileage rate. It does not.

Instead, CMS uses HMRC advisory fuel rates when looking at fuel costs for contact journeys. These rates change during the year and vary depending on vehicle type, engine size, and in the case of electric vehicles, the charging method.

This means the amount allowed for mileage can be much lower than many people expect.

Current HMRC advisory fuel rates used in CMS mileage cases

Below are the current advisory fuel rates used for this article.

HMRC advisory fuel rates from 1 March 2026

Fuel typeVehicle / charging categoryRate per mileMiles needed to reach £10 a week
Petrol1400cc or less12pAbout 84 miles
Petrol1401cc to 2000cc14pAbout 72 miles
PetrolOver 2000cc22pAbout 46 miles
Diesel1600cc or less12pAbout 84 miles
Diesel1601cc to 2000cc13pAbout 77 miles
DieselOver 2000cc18pAbout 56 miles
LPG1400cc or less10pAbout 100 miles
LPG1401cc to 2000cc12pAbout 84 miles
LPGOver 2000cc19pAbout 53 miles
ElectricHome charging7pAbout 143 miles
ElectricPublic charging15pAbout 67 miles

Hybrid vehicles are generally treated as either petrol or diesel for advisory fuel rate purposes.

Why the £10 weekly threshold matters

The £10 weekly threshold is important.

If your contact costs do not reach at least £10 a week, the variation is unlikely to help. This is why some parents technically qualify for mileage in principle, but still see no practical benefit.

For example:

  • a home-charged electric car at 7p per mile would need around 143 miles a week to reach £10
  • a petrol car over 2000cc at 22p per mile would need around 46 miles a week to reach £10

Before you apply, it is worth working out your usual weekly contact mileage so you can see whether you are realistically over the threshold.

How a mileage claim affects child maintenance

A successful mileage claim does not mean CMS sends you money for fuel.

Instead, if CMS accepts the contact cost as a special expense, the approved weekly amount is usually deducted from the paying parent’s gross weekly income before child maintenance is recalculated.

So if CMS allows £20 a week in contact costs, it does not refund £20. It reduces the income figure used in the formula, and the maintenance calculation is then worked out again.

In practice, the actual saving depends on things such as:

  • the paying parent’s gross weekly income
  • the number of qualifying children
  • whether there are any relevant other children in the paying parent’s household
  • shared care arrangements
  • whether any other adjustments apply

This is why a mileage claim can sound significant on paper but still lead to only a modest reduction in the weekly maintenance amount.

What evidence helps with a CMS mileage claim?

Good evidence matters.

If you are applying for a contact costs variation, keep your records clear and consistent. Helpful evidence can include:

  • a mileage log
  • dates of contact
  • start and end postcodes
  • the vehicle’s fuel type and engine size
  • receipts or other records supporting the journeys
  • toll, parking or accommodation records where relevant

A simple weekly log is often much more effective than loose receipts with no explanation.

It is also sensible to make sure the journey being claimed is clearly linked to contact with your child. Keeping your records organised from the start can make the application easier to follow and strengthen your case.

Practical tips if you are planning to apply

If you are a paying parent thinking about a claim, these points can help:

1. Work out the numbers first

Before applying, calculate your average weekly contact mileage using the correct advisory fuel rate for your vehicle.

2. Keep a regular record

If your contact pattern is weekly, fortnightly or during school holidays, log it carefully so the pattern is easy to understand.

3. Record the right journey

The strongest claims clearly show that the travel is for contact with the child.

4. Keep supporting documents

Receipts, booking confirmations and toll records can all help where they support the journey pattern.

5. Be realistic about the result

Even if your claim is accepted, the reduction in maintenance may be smaller than expected.

How to apply for a CMS variation

You can ask CMS to consider a variation when you first apply for child maintenance or after a calculation is already in place.

If you are relying on contact costs, gather your evidence before or while making the request so you can explain:

  • the contact pattern
  • the journeys involved
  • how often they happen
  • the weekly cost
  • why the costs are necessary

CMS can take time to review a variation, so it helps to keep ongoing records rather than trying to rebuild the history later.

What if CMS says no?

If CMS refuses the variation, or allows less than you think is correct, you can ask for a mandatory reconsideration.

This means CMS looks at the decision again.

If the outcome still seems wrong after mandatory reconsideration, you may be able to appeal to the tribunal. Deadlines usually apply, so it is important to act promptly and keep copies of your paperwork.

Frequently asked questions about CMS mileage claims

Can the receiving parent claim mileage from CMS?

No. Only the paying parent can claim mileage as a contact cost through this special-expenses route.

Does CMS use 45p per mile?

No. CMS uses HMRC advisory fuel rates, not the 45p per mile business mileage rate.

Can electric car drivers claim contact costs?

Yes. Electric vehicle drivers can still claim contact costs, but the advisory rate is much lower than many parents expect. The charging method can also affect the rate used.

Do I need regular contact to claim?

Regular contact makes this type of application much stronger. One-off or occasional trips are much less likely to fit the contact-cost rules in a useful way.

Can tolls or overnight stays count?

Sometimes, yes. Depending on the circumstances, certain tolls, road charges, bridge charges and overnight accommodation may be relevant.

Final word

For most parents, the two biggest misunderstandings are these:

  • CMS does not use 45p per mile
  • only the paying parent can claim mileage as a contact cost

That matters because many parents overestimate what they can claim, or assume both parents can use the same route.

In reality, CMS contact-cost claims are based on special expenses for the paying parent, and the fuel element is assessed using HMRC advisory fuel rates rather than the standard business mileage allowance.

If you are a paying parent with regular contact and meaningful weekly travel costs, a well-prepared variation request may help reduce your child maintenance calculation. The reduction may not be large, but where the figures genuinely stack up, it can still be worth pursuing.