To Agree not to Agree

Changes have been made to the child maintenance scheme. Newly single parents now will be able to choose whether to enter into a private arrangement or make an application to the Child Support Agency ("CSA") for child maintenance. They can effectively opt out of using to the CSA which is now part of the newly established Child Maintenance and Enforcement Commission.

By recognising private arrangements, parents will be encouraged to reach an agreement amicably. They can agree payment of any amount without the CSA becoming involved. This approach goes some way to unify the approach in the family courts where, particularly with child contact arrangements, mediation and negotiation have always been encouraged. It can only be in the best interests of any child for their parents to be able to communiate with each other and reach an agreement rather than revert to court decisions or the CSA where decisions are taken out of their hands.

Unfortunately, any private arrangement will not be binding and where it breaks down the fall back will still be to the CSA for calculation of what should be paid and enforcement of the payment. Calculation by the CSA may well differ from any private arrangement and the CSA's track record for enforcement is historically one of long delays with a backlog of cases still to be dealt with and ineffectiveness.

One way of putting in place an enforceable arrangement will be to apply to the court for the agreement to be put into a Consent Order. This is common practice within divorce proceedings, where child maintenance arrangements toare usually included in any order setting out how the finances of a marriage should be divided. Unfortunately, it remains that after 12 months, either parent may revert to the CSA for recalcualtion of the maintenance to be paid or for enforcement. In this way any order made at court is only truly secure for 12 months.

Parents on benefits

For the most part the rules for calculating the amount payable by the parent without day to day care remain the same.

The changes make the greatest impact on single parents reliant on income support or job seekers allowance. Previously single parents on these benefits were only given a maximum of £10 a week of the maintenance paid. This was known as a "child maintenance premium".

The new changes mean that all child maintenance received through the CSA will be paid directly to the parent with care of the children. The parent will be permitted to retain £20 a week before it affect their benefits, an increase from the £10 maximum prior to 27 October. Crucially it will be for the parent to declare to Jobcentre Plus the amount received in child benefit so that the benefit may be adjusted. Any failure to do so may make the parent liable for benefit fraud. It will be for the recipient parent to be vigilant in declaring the money received to Jobcentre Plus.

Fortunately, future changes mean that by 2010 parents on job seekers allowance and income support will be entitled to keep all child benefit monies received without it affecting their benefits.

Getting the money

The main bug bear for all parents dealing with the CSA has always been delay and their ineffectiveness in enforceing payment. The changes in effect since October 2008 do not address these issues so that it remains to be seen whether the new scheme will truly help the majority of single parents with the day to day care of their children.

New enforcement powers will be introduced in 2009/2010 to increase the effectiveness and speed of enforceing payment of child maintenance. This will include a power for the CSA to take money payable directly from bank accounts. It is also hoped that there will be less recourse to the court for enforcement of payment which in turn should reduce delays.

What is less clear is how the Child Maintenance and Enforcement Commission and the new changes will assist those parents caught in the current back log of cases yet to be dealt with.

Further information

A new impartial advice service has been set up to inform parents of their options, www.cmoptions.org

Details of all the changes may be found at www.childmaintenance.org and www.csa.gov.uk