Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential impact of the income change threshold on child maintenance allowance on both the (a) paying and (b) receiving parents.

Where a paying parent's income is at least 25 per cent different than the figure obtained from HM Revenue and Customs (HMRC) for the last available full tax year, or no figure is available, the Child Maintenance Service will consider whether the liability should be based on the parent's current income. A change will not be considered unless it breaches the 25 per cent tolerance.

The 25 per cent threshold ensures that both parents can continue to budget with certainty and therefore provide ongoing stability for the child. Most people's income does not change to this degree over the course of one year. This approach ensures that minor changes to income do not interfere with the efficiency of the system, increasing costs for the taxpayer.

The Department has been conducting a review of the child maintenance calculation to make sure it is fit for purpose and reflects today’s social trends. The review will also consider income change thresholds including their potential impact on both the paying and receiving parents.