Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the proportion of paying parents who have (a) avoided and (b) reduced child maintenance payments through (i) advance benefit payments and (ii) other similar means.

The Child Maintenance Service (CMS) recognises the importance of ensuring that child maintenance payments are made fairly and consistently, and that children receive the financial support to which they are entitled.

In the Autumn Budget 2024, the Chancellor announced that from 30 April 2025, the Department for Work and Pensions (DWP) would reduce the Universal Credit (UC) overall deductions cap from 25% to 15% of the standard allowance, introducing the Fair Repayment Rate (FRR). Without changes, this would reduce the number of child maintenance (CM) deductions. To prevent this, DWP implemented a temporary regulatory and policy change for one year from 30 April 2025 meaning CM deductions moved to first place in UC’s deductions priority order and deductions can exceed the 15% cap ensuring CM payments continue. Evidence gathered during the year will inform whether to make the change permanent or adopt an alternative approach.

In relation to other similar means: The CMS monitors claims to ensure they are accurate and works closely with HMRC to verify income data and identify discrepancies. Where a receiving parent believes their assessment does not reflect the paying parent’s true financial position, CMS offers a variation process to challenge the assessment.

The CMS continues to refine its systems to detect and prevent avoidance, including through legislative reforms and improved data sharing.