Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps his Department is taking to improve transparency in Child Maintenance Service (a) calculations and (b) deductions (i) in general and (ii) where deductions from earnings orders are applied.

The Child Maintenance calculation is based on the paying parent’s gross income, verified through HMRC data. To improve transparency, the CMS has enhanced data sharing with HMRC to ensure accurate income assessments, including unearned income such as dividends and rental income. Whenever a calculation is made both parents are notified of the amount, the reason for the calculation and how the calculation has been made enabling parents to challenge assessments they believe do not reflect the paying parent’s true financial position. The online portal, My Child Maintenance Case, allows parents to view all prior calculations.

The CMS applies general deductions through either voluntary arrangements or enforcement mechanisms. To improve transparency, the CMS has published guidance on Gov.uk detailing how these processes are applied.

Deductions from earnings orders (DEO) are a key enforcement tool used when a paying parent fails to meet their obligations. To improve transparency in this area, the CMS has issued clear employer guidance on how DEOs operate, including legal obligations, calculation methods, and reporting requirements. This includes ensuring employers receive formal written instructions from the CMS before any changes to deductions are made, preventing unauthorised or unclear adjustments. The protected earnings rate ensures that short term variations in earnings do not allow deductions to reduce a paying parent’s net income below a minimum level required for essential living costs.

Additionally, the CMS provide paying parents with notice of enforcement action and the opportunity to appeal or request a reconsideration of their maintenance calculation before a DEO is applied.

The Department continues to review and refine CMS processes to ensure they are transparent, fair, and effective in delivering financial support to children in separated families.