Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what plans the Child Maintenance Service has to change payment plans to reflect fluctuations to gross weekly income; and if she will make a statement.
The Service uses gross income information provided by HMRC in the first instance. This approach is consistent for all clients regardless of their employment type and ensures the calculation process is fair, simple and efficient.
The scheme is designed so that liabilities remain consistent over the year, with limited changes. The calculation is reviewed annually, and generally only changes during the year if a parent’s income increases or decreases by at least 25 per cent.
Where the paying parent has fluctuations in gross weekly income the Service will calculate a liability based on the weekly average of the amounts paid over a period preceding the effective date of the relevant calculation.