Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, for what reason contributions are calculated using a paying parent’s gross income as opposed to a net income, and whether there are plans to change this.
The Child Maintenance Service uses gross income because this provides a clear and consistent basis for calculating maintenance. Information about the paying parent’s gross income is taken directly from HM Revenue and Customs for the latest tax year available, allowing calculations to be made quickly and accurately. We judge gross income figures are less vulnerable to manipulation by the minority of parents who attempt to evade paying child maintenance.
The current calculation scheme was designed using gross income and was introduced in 2012 to simplify the assessment process and reduce administrative burden. The Government currently has no plans to change the basis of the calculation from gross income to net income.