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I have received this email today regarding the new system. Don't know if it will help anyone:
Thank you for your email to theChild Support Agency. At the present moment we have the followinginformation:-
The Maintenance assessment processwill be simplified to enable a quicker, more accurate and easy to understandprocess. Toensure that the move to gross income generates similar child maintenanceliabilities to those under the child support scheme introduced in 2003 theGovernment has proposed a further change to the basic percentage rates. This process isestimated to be introduced from 2011 for product testing and a new system to beintroduced. However, there has not been a definitive timescale released as towhen new cases/existing cases will be available for application to the Grosscalculation system, but we have been advised this may take up to 2014,therefore, unfortunately, we do not have a specific date for when the newcalculation is to commence. It is proposed that the Commission will use the latest taxyear information from Her Majestys Revenue & Customs (HMRC) as thebasis for working out how much child maintenance should be paid. Assessmentswill be fixed for one year unless the non-resident parents incomechanges by more than 25%.
This new process will reduce thetime it takes to make a calculation and also the number of changes ofcircumstance the Commission will need to implement during the year.
Using previous tax year returnsprovided by HMRC (rather than net income payslips provided by the non-residentparent) as a basis for working out how much child maintenance should be paidwill reduce the opportunities for parents to delay or mislead during themaintenance calculation process. This will further simplify and speed up thetime it takes to get money flowing to children who need it.
Also proposed is an increase from £5per week to £7 per week in the flat rate of maintenance paid by nonresident parents on benefits.
To ensure that the move to grossincome generates similar child maintenance liabilities to those under the childsupport scheme introduced in 2003 the Government has proposed a further changeto the basic percentage rates.
fornon resident parents with incomes of between £200 and £800 a week, the ratewill be 12% for 1 child, 16% for 2 children and 19% for 3 and more, across thewhole income;
fornon-resident parents with incomes above £800 a week, the corresponding rateswill be 9%, 12% and 15% (but only for that slice of income; for the slice ofincome up to £800 a week, the rates above will apply).
Thus, a non-resident parent earning£1,000 a week and with 1 child to support would pay 12% of the first £800 and9% on the remaining £200 of income, a total liability of £114 a week.
From 13 January 2011 a GreenPaper has been published that sets out the Coalition Governmentsproposals for reforming the child maintenance system to align it with theGovernments goals for supporting and strengthening families.
What has been announced is a paper for consultation from the13 January 2011 to 7 April 2011 and there is no impact on your current Child Support Agencycase. If there are any changes to your case at any time we will let you know.
The measures outlined in the Green Paper set out a visionfor rebalancing the system so that it provides encouragement, incentives andsupport to parents to make their own family-based arrangement, while maximisingvalue for the taxpayer.
The Green Paper proposes the following:
The Future Scheme would launch in 2012
A new gateway process to ensure only those who need the Future Scheme use it
A calculation-only service to provide parents who want a family-based arrangement with an authoritative figure to base it on
Non-resident parents would be allowed to choose Maintenance Direct as their method of payment (in order to avoid charging associated with the collection service)
Charging would be introduced for the use of statutory child maintenance services
Lowering charges would be put in place for those applicants on benefits and there would be an exemption for those who have suffered from domestic violence
The joining up of support service for separated families.
The Green Paper sets out that theCoalition Government would continue to invest in the new and charging wouldonly be introduced after the Future Scheme has been live for at least sixmonths and when existing Child Support Agency cases begin to be closed.
You can find out more informationand view a copy of the Green Paper by visiting the DWP website. http://www.dwp.gov.uk/policy/child-maintenance/
If you have any feed back on theGovernments proposals in the Green Paper you can respond in writing toChild Maintenance Sponsorship and Strategic Policy Division Department for Workand Pensions, 1st Floor Caxton, House Tothill Street London SWAH9HA or by email to Strengtheningfamilies.firstname.lastname@example.org
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