2024/12/09

Child maintenance arrears - What you need to know!

How Child Maintenance Arrears Work in the UK (With Examples)

Child Maintenance Service (CMS) arrears in the UK can seem complicated, but understanding the basics can help you navigate the system. Here's a breakdown of how arrears can arise, how they’re managed, and what to expect:

1. Arrears Due to Paying in Arrears

CMS payments are calculated daily but collected monthly. This means payments are effectively in arrears because the amount for the month has already accrued by the time it’s paid.
Example: If your monthly payment is £300, the balance on your account will show £300 due on the day it’s calculated, even before you’ve had a chance to pay.

2. Daily Calculation and Monthly Addition

CMS calculates what you owe daily and adds it to your account monthly. This can make it seem like arrears are increasing on the day of calculation.
Example: Suppose your daily rate is £10. After 30 days, £300 is added to your account.

3. Impact of Payments on Arrears

When you make a payment, the arrears balance decreases. However, if a payment is late or incomplete, arrears remain on your account.
Example: If your due amount is £500 and you pay £499, the system assumes you’ve missed the full payment and reflects the entire £500 as unpaid. To fix this:
- (a) Prove you paid £499 (e.g., via bank statements).
- (b) Contact CMS to credit your account.

4. Changes Are Backdated

Adjustments to shared care or other factors are backdated to the date of the reported change, not when they’re processed.
Example: If a paying parent gains more shared care in January but CMS processes the change in June, a credit or debit will apply from January. If there is a credit, payments will be lowered going forward. You wont receive money back.

5. Impact of Pension Contributions

Proving pension contributions can reduce your CMS liability, and this reduction is backdated to the start of the payment year.
Example: If your CMS payment is £400 per month and pension contributions reduce it to £350, you’ll receive a credit for the £50 difference for each month of the year.

6. The Arrears Balance Isn't Always Paid

Arrears are factored into your payment plan, so you don’t pay them as a lump sum. The plan ensures ongoing payments include a portion to address arrears.
Example: If your regular payment is £400 and you have arrears of £1,200, your plan might set payments at £450 to cover both.

7. Annual Adjustments Can Create Arrears

Payment plans sometimes set amounts slightly below the weekly rate, causing minor arrears. These are resolved during the annual review.
Example: A stable-income payer might see their annual review adjust payments up or down slightly, clearing small arrears or overpayments.

8. System-Generated vs. Enforced Arrears

Some arrears result from system delays or errors, such as processing a change late. These arrears are usually not enforced.
Example: A delay in processing a shared-care adjustment might temporarily show arrears that CMS later removes.
However, arrears due to missed payments may be enforced, often through a Deduction from Earnings Order (DEO).

How to Deal With Arrears.

Very simple. Just stick to the payment plan.

Common Questions

Question: I am on direct pay, and I keep paying the arrears but the figure does not go down. Why?

Answer: On direct pay, the CMS assume you are paying the schedule, so they wont be aware of the seperate arrears payments. So stop paying them. Your arrears balance wont go down, as no one knows you are paying.

Question 2: Can I spread the arrears over a longer time period?

Answer: Yes you can. I know of cases where the arrears are being paid at as little as £5 per week, and other cases where the payments are being made over 8 years.

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2024/11/25

Illness or Disability Claims for a Relevant Other Child

Understanding Illness or Disability Claims for a Relevant Other Child (ROC): A Comprehensive Guide

When it comes to child maintenance calculations, the care of a Relevant Other Child (ROC) with an illness or disability can lead to adjustments known as ROC variations. These variations consider the additional expenses associated with long-term illness or disability. Here’s a detailed guide to help parents navigate this process, ensuring they claim the support they’re entitled to.

What Is a Relevant Other Child (ROC) Variation?

A ROC variation allows parents to factor in specific costs related to the care of a child with an illness or disability. These claims can only be made if the illness or disability is considered long-term, which we’ll define next.

Key Definitions: Illness and Disability

Long-Term Illness

A child’s illness qualifies as long-term if:

It is expected to last at least 12 months, or
It is likely to persist for the rest of the child’s life (if shorter than 12 months).

Disability

A child is considered disabled if any of the following apply:

They receive the daily living component of Personal Independence Payment (PIP), Disability Living Allowance (DLA), Armed Forces Independence Payments (AFIP), or similar benefits.
They are eligible for such benefits but payments are paused due to hospitalization.
They are registered blind, or recently recovered from blindness (within the last 28 days).

Important note: The mobility component of PIP or DLA does not count for variation purposes.

Permitted Expenses

Certain costs incurred due to the child’s condition are classified as permitted expenses. These include:

Personal care and communication needs.
Mobility aids and domestic help.
Specialized medical equipment not provided by the NHS.
Home adaptations.
Heating, clothing, or laundry expenses related to the child’s care.
Special diets recommended by a medical professional.
Daycare, rehabilitation, and respite care.

Note: If a service or equipment can be provided by the NHS, the claim may not be approved unless delays in provision risk harming the child’s health.

Financial Assistance: What You Need to Know

If the Non-Resident Parent (NRP) or their household receives financial assistance for the child’s condition, this may reduce the amount of the claim. Sources of financial assistance include:

Grants or charitable funding.
Benefits such as DLA, PIP, or AFIP.

However, there are important caveats:

Only assistance related to the specific claim expense (e.g., personal care) will be deducted.
Payments received by someone outside the NRP’s household will not affect the claim.

Confidentiality and Exclusions

When processing a claim, certain information will remain confidential:

Medical evidence that could harm a party’s health if disclosed.
Personal information, such as addresses, that could reveal the location of a child or party.
Details of the child’s illness or disability, if confidentiality has been requested and it does not impact the claim's outcome.

Financial Thresholds

The good news is that there are no financial thresholds for ROC variations related to illness or disability. This means each case is assessed on its own merits, focusing on the expenses and needs of the child.

Final Thoughts

Navigating the process of claiming for a Relevant Other Child with an illness or disability can be complex, but understanding the rules and criteria can make it much easier. Ensure you keep detailed records of expenses and seek advice if needed to maximize your claim.

If you found this guide helpful, feel free to share it with others who might benefit.

Keywords:

Child maintenance
ROC variation
Disability claims
Long-term illness
Relevant Other Child expenses

Hashtags:

#ChildMaintenance #DisabilitySupport #ParentingGuide #ROCVariation #FamilyFinance

Suggested Search Terms:

How to claim child maintenance for a disabled child
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Disability benefits for Relevant Other Child
Financial support for long-term child illness

2024/11/08

Child Maintenance Top Tips.

Here is a list of top tips that will help to avoid problems with CMS.

1. The CMS priority is to get money from the paying parent to the receiving parent irrespective of any ongoing appeals or challenges. Their role is not to mediate.

2. A case worker is trained to follow the legislation, not common sense.

3. The person who answers the phone when you ring in, is not normally a qualified caseworker. They are triage staff, whos job it is, is to signpost and filter calls. They may be giving unqualified advice. Until you have a document that says dont pay, you pay.
This assumes they answer the phone.

4. The only time you pay or not pay, is as per the latest schedule. If the schedule says no payments due until x, you do not pay until x date. Only pay on the dates they tell you to. Dont start second guessing.

5. Two figures on a CMS letter are indicative for legal reasons, and not what you pay. These are the weekly amount figure which is a legal requirement, and also the arrears figure. The only figure to pay is the scheduled figure.

6. Arrears are never paid seperately. You only pay the schedule.

7. Never pay early (it may be considered a gift or confused as a late payment). Never pay late, as you will be put on a DEO. Never pay less, as CMS regard a payment to be fully missed even if you under pay by a £1, and never pay over, as thats a gift and it could also be confused as a gift for the full amount.

8. If you question paternity, do the CMS DNA test as quickly as possible. CMS wont refund you for years of payments, only from when you requested a test.

9. Putting in changes, adjustments, DNA requests etc dont change things. You still have to pay in most cases as per the schedule, until the charges are accepted or DNA is negative.

10. If parties have a court order that is extant. If however both parties say different than CMS will change shared care. So if receiving parent says I have the children more, and paying parent says, the paying parent wont let me see the kids, then that will evidence that the court order has changed.

11. There are arrears for non payment, but also CMS is paid in arrears. Some arrears can be settled by a payment plan. Every paying parent needs to be 4-8 weeks in arrears to stop them over paying when a case is closed, but the CMS take time to tell.

12. If you have overpaid, and the case is closed, you will face a battle to get the money back from the CMS, but they do have procedures. Their first step is to tell you to claim from the other parent, but they can also collect for you even on direct pay cases.

13. No one is interested in the back story. Abuse / withholding contact etc. CMS is based on evidence.

14. The actual determind position is normally determined by HMRC or DWP records. For example, a child is in education as long as child benefit is being paid. A paying parent is on benefits if Universal Credit is in payment (exclude top ups). So its neccessary to report fraud to government departments such as DWP or CMS, so their records are updated. This in turn updates CMS. CMS do not know if your child is actually in education, where and what course they are doing. They rely solely on child benefit records.

15. If you commit fraud, you may be prosecuted. Fraud includes paying parents faking DNA test. People claiming not to have been paid.

16. CMS uses certain types of income not all. Inheritance and Capital gains such as selling a house, do not have CMS charged on them. Pay, Bonus, Overtime, Dividends, Directors Loans can all be taxed, and are therefore subject to CMS. 17. Collect and Pay does not guarentee payments. Do not expect CMS to pop money into your bank account on the day they said.