Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps her Department is taking to help ensure that paying parents do not conceal (a) earnings and (b) investments to evade child maintenance payments.

Information about the paying parent's gross income is taken directly from HM Revenue and Customs (HMRC) for the most recent available full tax year. This allows calculations to be made quickly and accurately. Use of historic income ensures a stable calculation, which we know from customer feedback is valued as it enables parents to rely on maintenance for financial planning purposes.

In the event a receiving parent believes a paying parent’s earnings are not captured in the standard calculation using HMRC gross income data, they can apply for a variation, under which certain other categories of income can be considered.

Cases involving complex income can be investigated by the Financial Investigation Unit. This is a specialist team which can request information from financial institutions (such as banks, investment companies and mortgage companies) to check the accuracy of information that the Child Maintenance Service (CMS) is given. If any discrepancies are found, then they can implement a correct maintenance liability that is supported by CMS legislation.

The Department is currently reviewing the calculation to make sure it is fit for purpose. This has included updating the underlying research and considering how we ensure the calculation reflects current and future societal trends.