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 information sharing between (a) the Child Maintenance Service, (b) HM Revenue and Customs and (c) his Department to help enable accurate income assessments.

The CMS maintains the accuracy of child maintenance calculations by using verified income information from HM Revenue and Customs (HMRC) and benefit systems.

The department legally relies on data from HMRC and its own benefits data to assess 90% of people’s earned income and benefit status, which are key parts of the maintenance calculation.

Information about the paying parent's gross income is taken directly from HMRC for the latest tax year available. This allows calculations to be made quickly and accurately. Any income subject to income tax including bonuses and overtime received by an employed paying parent, is included within their gross weekly income when calculating a child maintenance liability.

The Government is conducting a review of the child maintenance calculation to make sure it is fit for purpose. This includes updating the underlying research and considering how to ensure the calculation reflects current and future societal trends. The review will also consider the treatment of unearned income and assets within the automatic calculation.

Options for proposed reforms are currently being considered. Any changes made to the child maintenance calculation will be subject to extensive public consultation, which we plan to publish late this year, and if made, will require amendments to legislation so would be subject to Parliamentary scrutiny.

Unearned income and assets can still be captured through the current variation process up until any changes are introduced.