New maintenance charges ‘are tax on children’

LAWYERS and campaigners have criticised UK ministers over new child maintenance charges which they warn will 
financially penalise children.
UK ministers' child maintenance plans have been criticised by campaigners. Picture: Jon SavageUK ministers' child maintenance plans have been criticised by campaigners. Picture: Jon Savage
UK ministers' child maintenance plans have been criticised by campaigners. Picture: Jon Savage

New Department for Work and Pensions guidelines are aimed at reducing the bill met by taxpayers for pursuing 
fathers.

At present, parents disputing the amount paid once separated can appeal to the soon-to-be-defunct Child Support Agency free of charge.

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The new Child Maintenance Service, which will replace the CSA, will now charge a mother 4 per cent of her payment to investigate a payment failure.

Fathers who no longer reside with the family will be charged a further 20 per cent, on top of their payment, as a penalty.

The changes will be brought in next year, the DWP said.

It is under pressure to cut a £500 million annual bill to administer the system and said it wants to encourage parents to agree payments between themselves.

However, the Law Society of Scotland fears that concerns it has raised over the fairness of charges, and distinct legal issues north of the Border, have been largely ignored.

Gingerbread, a campaign group which represents single parents, also said it was wrong that cash intended for children be used to plug a hole in the government’s finances.

The new system will mean that, for example, a mother due £100 per week from her former husband would instead receive £96 if she asked the CMS to step in. The agency would pursue the father for the £100, plus a further 20 per cent, in this case £20.

John Fotheringham, an Edinburgh specialist in child and family law, outlined concerns to DWP officials earlier this year on behalf of the Law Society of Scotland. However, Whitehall officials yesterday released final plans which he said had failed to take on board any of the concerns raised.

“The DWP might not think that 4 per cent is a great deal, but the average weekly maintenance figure in Scotland last year was just £23,” Mr Fotheringham said.

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“These charges are completely unjust. We also want the government to provide a decent level of advice and support in the form of legal aid. Having its own agency represent both sides is completely inappropriate.”

He added that the DWP had failed to take account of variations between Scottish and English law. “This is not tailored well to Scotland and in fact not tailored well to anyone really.”

Fiona Weir, chief executive of Gingerbread, added: “We believe it is wrong that single parents and their children will still be financially penalised for the other parent’s failure to pay.”

Steve Webb MP, work and pensions minister, said: “Having a charge for using the CMS will provide a nudge to parents to try to sort things out for themselves if they can.”