Showing posts with label How CMS works. Show all posts
Showing posts with label How CMS works. Show all posts

2026/02/14

What Happens When Your Child Leaves Education:

When Does Child Maintenance Stop? What Happens When Your Child Leaves Education

Understanding Child Benefit, Education Status, and Child Maintenance Rules in the UK

Every summer, thousands of UK families face an important transition when a child finishes school, college, or training. Alongside lifestyle changes, there are major financial questions — particularly surrounding child maintenance payments and Child Benefit eligibility.

If you're wondering when child maintenance stops, how education affects payments, or what happens after GCSEs or A-levels, this guide explains everything clearly.


How Child Benefit and Child Maintenance Are Connected

In most UK cases, child maintenance ends when Child Benefit stops. The Child Maintenance Service (CMS) uses Child Benefit eligibility rules to decide whether a child is still considered financially dependent.

If Child Benefit continues, child maintenance usually continues. When Child Benefit ends, maintenance payments normally stop as well.

Watch: How Child Maintenance and Child Benefit Are Linked

Eligibility typically depends on whether the young person remains in full-time approved education or training.


When Does Child Benefit Automatically Stop?

Child Benefit claims automatically include a preset end date when a child turns 16. Payments normally continue until:

👉 31 August following the child’s 16th birthday

If Child Benefit is not extended before this date, payments stop automatically. Child maintenance payments usually end at the same time.

Importantly:

  • Payments continue until 31 August even if the child stops attending school.

  • Children under 16 are still classed as financially dependent regardless of attendance.

Related Video: When Child Maintenance Stops After Education Ends



If a young person continues in further education, Child Benefit can be extended. The new end date moves to the next official quarterly terminal date after their course finishes.

UK Child Benefit Terminal Dates

  • 28/29 February

  • 31 May

  • 31 August

  • 30 November

For example, if education finishes in June, Child Benefit usually continues until 31 August unless the young person starts full-time work earlier.

Young people are still classed as being in education until their final exams finish. For GCSEs and A-levels, this usually means mid-to-late June.






When Must Parents Inform HMRC About Education Changes?

Many parents believe they must always report when education ends. This is not always required.

Parents only need to notify HMRC if the young person:

  • Leaves education early

  • Starts working more than 24 hours per week before the next terminal date

  • Begins claiming benefits independently

If none of these apply, Child Benefit usually continues automatically until the next scheduled end date.

Failing to report early changes may result in overpayments or potential fraud investigations.


The 20-Week Extension Rule for 16-17 Year Olds

Child Benefit may continue for up to 20 additional weeks for young people aged 16 or 17 who:

  • Register with a careers service

  • Are waiting to start military service

  • Are between education or training placements

During this extension period, child maintenance usually continues.


Myth: Working Over 24 Hours Stops Child Maintenance

A common misconception is that working over 24 hours per week automatically stops Child Benefit or child maintenance.

This is incorrect.

There is no limit on working hours while the young person remains in full-time approved education. The 24-hour threshold only applies once education has ended.


What Happens After Child Benefit Stops?

Government systems regularly check Child Benefit status for young people aged over 16.

If Child Benefit stops:

  • CMS automatically reviews child maintenance eligibility.

  • Parents paying maintenance can also report changes themselves.

  • If Child Benefit is still active, CMS usually rejects early change requests.



Different Rules Depending on the Child’s Age

When the Young Person Is Over 18

If Child Benefit ends after age 18, the young person is normally removed automatically from child maintenance calculations unless:

  • Other case changes are pending

  • Income reassessments are still being processed

Delays are common if multiple case updates are underway.


When the Young Person Is Under 18

For children under 18, CMS normally:

  1. Contacts the parent receiving Child Benefit

  2. Allows 7 days to confirm education status

  3. Runs a final Child Benefit check before closing the case

If Child Benefit restarts, child maintenance normally continues.


What Happens When a Child Is Removed From a CMS Case?

When a child is removed:

  • Maintenance payments for that child stop

  • Payments may be recalculated if other children remain eligible

  • Arrears still need to be paid if outstanding

If no other children remain and no arrears exist, the case will eventually close. Full closure can take several weeks as it is often processed manually.


Timing Matters When Reporting Changes

Many parents try to report education ending too early. This often leads to rejected change requests and delays.

If Child Benefit remains valid until a scheduled terminal date, CMS will normally reject any early case closure requests.

Waiting until Child Benefit officially ends helps avoid processing delays.


Why CMS May Reject Requests to Stop Child Maintenance

Requests may be rejected if:

  • Child Benefit remains active

  • A 20-week extension has been granted

  • Education ended but HMRC was not notified

  • Course extensions remain on record

  • System updates have not yet been processed

Government systems may take several weeks to update across departments.


Final Thoughts: Understanding Child Maintenance Rules When Education Ends

Understanding how Child Benefit and education status affect child maintenance can help parents avoid confusion, disputes, and delays.

Key points to remember:

✔ Child maintenance usually follows Child Benefit rules
✔ Education status determines payment eligibility
✔ Terminal dates control when payments stop
✔ Timing is crucial when reporting changes

Staying informed helps ensure smoother case transitions for both paying and receiving parents.


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Learn when child maintenance stops in the UK and how Child Benefit, education status, and terminal dates affect payments. Complete guide with expert explanations and video support.

2024/10/10

How Child Maintenance Works

 


Comprehensive Guide: How the Child Maintenance Service (CMS) Works

The Child Maintenance Service (CMS) is a government agency in the UK responsible for ensuring that non-resident parents contribute financially to their child's upbringing. CMS operates with policies designed to calculate, manage, and enforce child maintenance payments between parents.  Parents do not have to use the Child Maintenance Service.  Over 1 million children are supported through Child Maintenance Service payments.    

Understanding how the CMS functions, from the calculation of payments to handling arrears, can help both paying and receiving parents.  In this guide, we'll explore all aspects of the CMS, including its history, how child maintenance is calculated, the payment process, dealing with arrears, and what to do if things go wrong.

1. What is the Child Maintenance Service?

The CMS replaced the now-defunct Child Support Agency (CSA) in 2012, taking over its role with a more streamlined process for managing child maintenance. The CMS role is to ensure that the non-resident parent (the parent who does not live with the child) makes regular financial contributions towards the child's welfare. 

Before we dive into the details of how CMS works, let's establish the two primary parties involved:


a.    Receiving Parent (RP): The parent who has the child living with them most of the time.

b.    
Paying Parent (PP): The non-resident parent or NRP who is responsible for making child maintenance payments.

2. How CMS Calculates Payments

One of the key functions of the CMS is to calculate the amount of child maintenance the paying parent must pay. The amount is based on the paying parent's gross income and the number of children they are responsible for.  It is not based on their partners income, their home value, or the receiving parents income, assets or partners.


Factors Considered in CMS Calculations:

a. Gross Weekly Income: CMS uses the paying parent’s gross income to calculate payments. Gross income includes salary, bonuses, overtime, and any other taxable income. It does not include deductions such as taxes and National Insurance contributions.  An annual bonus paid via salary is therefore included.  

b. Number of Children: The amount owed increases with the number of children the paying parent is responsible for.

c. Shared Care Arrangements: If the paying parent shares overnight care of the child, the amount they pay in maintenance can be reduced.

d. Special Circumstances: CMS may also take into account any other children the paying parent supports or other complex family arrangements.

Basic Payment Rates:

For gross weekly income under £100:  A flat rate of £7 per week is applied.

For gross weekly income between £100 - £200:  Payments range from 12% to 19% of gross income.

For gross weekly income above £200:  The rates range between 12% and 19%, but there are more detailed calculations based on income bands.

Example Calculation:

If a paying parent earns £400 gross per week, they will pay:
- 12% for one child: £48 per week.
- 16% for two children: £64 per week.
- 19% for three or more children: £76 per week.

If someone is not working and they are being supported by relatives or savings, a nil rate will be applied.




3. CMS Payment Process

Once the CMS calculates the payment amount, the paying parent is expected to make regular payments. There are two main methods for handling these payments:

3.1. Direct Pay

- **What is Direct Pay?**: In this method, the CMS calculates the maintenance amount but leaves the actual payments between the parents to handle directly. It is the most straightforward method and avoids additional fees.
- **Advantages:** No extra costs, and both parties have direct control over payment dates.
- **Disadvantages:** There is a risk of disputes or missed payments without CMS oversight.

3.2. Collect and Pay

- **What is Collect and Pay?**: If the paying parent misses payments or if there is a history of non-compliance, CMS will step in to collect payments from the paying parent and forward them to the receiving parent.
- **Fees Involved:** Both the paying and receiving parent incur fees. The paying parent is charged an extra 20% on top of their payments, and the receiving parent loses 4% of the payment in fees.
- **Enforcement:** If the paying parent defaults, CMS can escalate enforcement measures, such as wage deductions, freezing bank accounts, or even legal action.

4. Dealing with Arrears

Arrears, or missed child maintenance payments, can quickly build up, causing confusion and stress for both parents. Here’s a breakdown of how arrears accumulate, how CMS handles them, and why you shouldn't panic if you find yourself in this situation.

4.1. What are Arrears?

Arrears refer to child maintenance payments that have not been made according to the CMS's repayment schedule. However, the concept of arrears can sometimes be misleading due to recalculations and backdating, causing anxiety for the paying parent.

For example, CMS payments are often calculated on a daily basis, but the first payment may only be due after 14 days, which can lead to initial arrears being recorded at the start of a case. If backdating is involved, the arrears will grow without the paying parent even missing a payment.

4.2. How Arrears Accumulate:

- Missed Payments:  Any missed payments are added to the arrears figure. Even a single missed monthly payment can trigger arrears.
- Recalculation: CMS recalculates child maintenance payments annually, and if you missed any payments during the previous 12 months, they’ll be added to your new payment plan.
- Backdated Adjustments: If a change in circumstances (such as a change in income or care arrangements) results in a recalculation, CMS may backdate the payments, leading to additional arrears.

4.3. How to Manage Arrears:

CMS payments are made in arrears.  Exceptionally, NRPs may be ahead of the plan where a calculation change in their favour is backdated and it is discovered they have overpaid.  Maintenance will still be payable, but the rate will be reduced to a lower amount, so they pay less in lieu of a refund.  

Key points about arrears.

Stick to the Payment Plan:  Continue making the regular payments as specified in the CMS repayment schedule. The arrears will be spread out over future payments, so you won’t need to pay a lump sum.

Do Not Pay Arrears Separately: Avoid paying arrears in a lump sum, as CMS usually incorporates them into the future payment plan.

Debt Steer Policy: CMS offers a “Debt Steer” policy that allows paying parents to spread their arrears over a period of two years, easing the financial burden. You can even request to pay as little as £5 per week if you have significant debt arrears.

Communication: If the arrears and regular payments create financial strain, contact CMS to discuss alternative payment arrangements.




5. The Role of Child Benefit in CMS Payments

Child benefit is a significant factor in CMS cases. It determines which parent receives the maintenance payments and can impact payment arrangements.




5.1. Child Benefit and Primary Care:

When the child lives with a parent for most of the time, that parent can claim child benefit. If the child moves in with the paying parent for a significant amount of time (or permanently), the paying parent must file for child benefit themselves to transfer the child maintenance responsibilities.

5.2. Important Tip:

If your child comes to live with you, make sure to claim child benefit immediately. Failing to do so could mean CMS continues to assume the child lives with the other parent, leaving you responsible for maintenance payments even when you're the primary caregiver.

If you have two children, this means the child who comes to live with you, should be removed from the CMS case.  Both parents will have to confirm that with the CMS.  This would reduce payments from 12 to 16 percent of salary.  The new parent will then need to submit a counter claim in order to receive 12% from the former resident parent, who is now a non resident parent for that child.

6. CMS and Court Orders

CMS typically handles child maintenance matters independently of the court, but in certain cases, parents may have pre-existing court orders that dictate child support payments. CMS can supersede these court orders, at 12 months.  The CMS cannot open a new case if there is a court ordered maintenance plan, until 12 months has passed.  

7. When to Contact CMS

You should contact the CMS if:
- You experience a change in income that affects your ability to make payments.
- Your child’s living arrangements change, or they move in with you.
- You have missed a payment and need advice on managing arrears.
- There is a dispute over arrears or you require clarification about your payment schedule.

It should be noted that if a receiving parent reports a missed payment, that payment will be added to arrears, and the case may be changed to Collect and Pay payments, where the CMS charge both parents.

We strongly suggest that you contact the CMS via the portal.  Heres a guide on how to do that.




8. Key CMS Terms and Concepts

Effective Date: The date from which child maintenance payments are calculated. Payments will be due 14 days after the CMS calculation is issued.

Annual Review: CMS reviews the paying parent’s income every 12 months to recalculate child support payments.

Collect and Pay: A method where CMS collects payments from the paying parent and transfers them to the receiving parent.

Direct Pay: A method where parents manage payments directly without CMS intervention.

Shared Care: A system where child maintenance payments are reduced if the paying parent shares overnight care of the child.

9. CMS Enforcement Methods

If a paying parent fails to meet their payment obligations, CMS has several enforcement options, including:

Deductions from Wages: CMS can arrange to have child maintenance deducted directly from the paying parent's wages.  These are called Deduction from Earnings Orders and can be done without a court approving as CMS have their own powers.

Freezing Bank Accounts: CMS can freeze the paying parent’s bank accounts to recover unpaid child maintenance.  Again, they do not need a court order to do this.  

Legal Action: In extreme cases, CMS may pursue legal action to recover arrears.




10. Final Thoughts

The Child Maintenance Service is there to ensure children receive financial support.  They are not there to resolve disagreements.  As calculations are based on a formula, its not possible for parties to ask to pay more or less. 

While the process can be confusing, especially with issues like arrears and recalculations, understanding the system will help you manage your payments effectively.

Remember, you are not required to pay arrears as a lump sum, if you are a paying parent.  There are options available to spread repayments and ease financial strain. If you're facing difficulties, communication with CMS is key to resolving disputes and ensuring smooth management of your child maintenance obligations.

Hopefully this guide has been useful.  Why not chill out now and watch cat videos





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