Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps she is taking through the Child Maintenance Service to ensure that receiving parents and their children are adequately financially supported when paying parents (a) decide not to return to work after maternity leave to save on childcare costs and (b) take other decisions that forgo income due to their personal circumstances.
The maintenance calculation is designed to be affordable and sustainable for paying parents, while ensuring they contribute a reasonable amount to support their children.
Calculations are based on a percentage of the Paying Parent’s gross weekly income received directly from HM Revenue & Customs. This includes taxable income from employment and can take account of certain unearned income, including from dividends, property income and savings.
Where a paying parent’s income reduces due to not returning to work after maternity leave or due to a change in their personal circumstances, and this change means their income decreases by at least 25%, the calculation will then be reassessed.
Whilst the 1991 Child Support Act puts a legal obligation on all parents to support their children regardless of their financial situation. Under the 2012 Child Maintenance Scheme, an individual with income of less than £7 will generally have a “nil” liability.