Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government whether they have any plans to review the four per cent fees charged to receiving parents in the Child Maintenance Service.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
There are no plans to abolish the four per cent collection charge for receiving parents. This charge only applies to the collect and pay service and is intended to provide a parent with an incentive to use the direct pay service which has no ongoing fees.
The collection charge for the receiving parent is deducted only when maintenance is paid, with no money owed to the Child Maintenance Service if maintenance is not paid. These charges contribute to the cost of running an expensive service, which remains subsidised by the taxpayer.