Rises in the cost of living or inflation affect both the paying and receiving parent when it comes to child maintenance. Costs of things such as food, fuel, and clothing are increasingly putting both parents under enormous pressure. It is also a fact that wages are not keeping pace at the same rate, making it hard for the paying parent to pay more, leaving families feeling squeezed and increasing conflict.
Rises in the cost of living or inflation affect both the paying and receiving parent when it comes to child maintenance. Costs of things such as food, fuel, and clothing are increasingly putting both parents under enormous pressure. It is also a fact that wages are not keeping pace at the same rate, making it hard for the paying parent to pay more, leaving families feeling squeezed and increasing conflict.
If you have a family issue and you require legal advice to understand your options, contact specialist family law solicitor Rebecca Calden-Storr of Stowe Family Law. With over 20 years’ experience, she is regularly instructed on matters arising from relationship breakdown, including divorce, financial disputes, complex assets, and disputes relating to children.
Inflation/Cost of living and child maintenance payments: What is the position?
Many child maintenance orders often change during the annual review carried out by the Child Maintenance Service (CMS). But if you are a long way from your review, both the paying and receiving parent can contact the CMS to report new information that might affect how much child maintenance is paid. Either party can inform the CMS if there is an increase or decrease of 25% or more in the paying parent’s weekly income.
In this situation, you may be able to ask for a variation. This is when you can get your child maintenance calculation looked at again, if you:
- Have additional costs for the children you are responsible for
- Are aware that the paying parent has other income not accounted for during the initial child maintenance calculation
- Other financial commitments
What scenarios might change child support payments?
Child maintenance payments can be subject to change because of a variety of reasons. Here are several scenarios that might affect child maintenance:
- Changes in the Child’s Needs: If a child develops special needs or medical conditions requiring additional financial support, the amount of child maintenance may be adjusted to cover these additional expenses. For example, if a child is diagnosed with a chronic illness that necessitates regular treatments and medications, the paying parent might be required to contribute more to ensure these needs are met.
- Changes in Parental Responsibility: If there is a significant shift in the amount of time the child spends with each parent, this can impact the maintenance calculation. For instance, if the children begin to spend their time more equally between their parents, resulting in a 50/50 living arrangement, this might reduce the amount of child support the paying parent is required to pay.
- Parental Remarriage or New Relationships: While new relationships themselves do not directly impact child maintenance, the financial circumstances of the paying parent might change if they remarry or cohabit with a new partner. For example, if the new partner contributes significantly to household expenses, it might free up the paying parent’s income, potentially affecting their ability to pay more in child maintenance. On the other hand, their new partner may have children living with them, which may reduce child maintenance payments.
- Changes in Financial Circumstances: Beyond income changes, other financial circumstances like receiving a large inheritance or winning the lottery can influence child support. If the paying parent suddenly comes into a significant sum of money, the receiving parent might seek an increase in maintenance to reflect the improved financial situation.
- Educational Costs: If the child attends a private school or requires additional educational support, such as tutoring, these expenses can lead to adjustments in maintenance payments. For instance, if the child is accepted into a prestigious private school with high tuition fees, both parents might be expected to contribute more to cover these costs.
In what circumstances can I ask for a CMS variation?
A receiving parent can apply for a variation if the paying parent has the following:
- Unearned income: this could be from rental income, property, land, dividends or interest from savings and investments. Income of this nature must be at least £2,500 a year.
- Notional income from assets: this is income based on certain types of assets worth £31,250 or more (correct at the time of writing)
- Earned income: this includes all income earned from employment, but also gross income from a pension or self-employment. This must be at least of £100 per week (correct at the time of writing)
- Diversion of income: this is when the receiving parent believes the paying parent is controlling the amount of income they receive by diverting it to a third party or using it for another purpose. The result of this is that the income will be “diverted” and therefore not included in the figure used to calculate child maintenance.
A paying parent can apply for a special expenses variation of their child maintenance payments in the following circumstances:
- The cost of keeping up regular contact with the child. This may include the costs of fuel to travel between homes and must be at least £10 per week (correct at the time of writing)
- Costs connected with supporting a child with a disability or long-term illness
- If you are repaying debts from the relationship, such as a car loan for a car the receiving parent has retained (must be at least £10 per week)
- Boarding school fees for the child. However, this is only the everyday living or boarding part of the fees (must be at least £10 per week)
- Making payments on a mortgage, loan, or insurance policy for the home that the couple formerly shared. The receiving parent and the child must still live in the home, and the paying parent must not have any financial interest in it.
When can the court make an order for child maintenance?
The CMS and not the court have jurisdiction to make an assessment of child maintenance when all parties and the child live in the UK. Although there are limited circumstances where the court can still make an order for child maintenance. The most common situations are:
- If the child or one parent is not resident in the UK
- Where the parties agree child maintenance as part of the divorce financial settlement. That said, this is only effective for a limited period of 12 months after which either party can apply to the CMS.
- If there has been a maximum CMS assessment, the court can “top-up” the child maintenance.
- Where it is for educational expenses or costs associated with a disability. Here, the court retains jurisdiction to make school fees order and those associated with a child’s disability.
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