Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will consider removing the charges for the Child Maintenance Service's collect pay service.

Cases on the Collect and Pay service are typically those where the paying parent has demonstrated an unwillingness to pay, or has not been compliant in a Direct Pay arrangement. For this service, a fee of 20% is added to what the paying parent needs to pay, while 4% is deducted from the amount paid out to receiving parents.

Following a public consultation on wider reforms to consolidate the Child Maintenance Service into a single service type where the CMS collects and transfers payments, the Government published its response setting out plans to reform the CMS. This includes plans to reduce fees to 2% for both receiving parents and paying parents, maintaining the 20% rate for non-compliant paying parents on top of their calculated maintenance amount.

We believe fees are an important part of the service, offsetting the cost of the service and investment needed to make the reforms, reducing the burden on the taxpayer. The proposed fee structure is also intended to incentivise compliance by the paying parent.