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Child support and the new scheme

Date: (15 April 2013)    |    

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The changes to child support under the new scheme which has come into force on September 10, 2012 and the formula for maintenance is based on gross income data as supplied by HM Revenue and Customs.
The new formula works as under:
Gross weekly income up to £800
• One child: 12 per cent
• Two children: 16 per cent
• Three or more children: 19 per cent
Gross weekly income between £800 and £3,000
• One child: Nine per cent
• Two children: 12 per cent
• Three or more children: 15 per cent
Before calculating under the formula pension contributions may be deducted from the gross income figure. Different rules will apply where the gross income falls below £200 per week.
In the new scheme, the percentage reduction for second family children is:
• One relevant child: 11 per cent
• Two relevant children: 14 per centl
• Three or more relevant children: 16 per cent
“Relevant child” means that the absent parent or their new partner must have received child benefit for the children before this discount could be applied.
In case of care being shared exactly the parent who receives the child benefit is the one who is entitled to child benefit.
Under the new rules, this is to change and where there is exact shared care to the same extent, there will be no child support liability.
The deductions to be applied where the absent parent has contact remain the same, i.e. 1/7th for 52 nights a year, 2/7ths for 104 nights a year, 3/7ths for 156 nights a year.
The age limit has been extended until a child is 20 years, provided they remain eligible for child benefit. It has to be taken into note that the new scheme only applies to new applicants who have four or more children with the same absent parent.
Gradually, the scheme will be relaxed so that all new cases will automatically come under the new scheme but this is unlikely to be until the end of the current year at the earliest.
Existing cases with the CSA will only transfer in to the new scheme when they are given notice of closure of their case. This is likely to take several years before it is fully implemented.