Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps the Department is taking to ensure that the Child Maintenance Service has effective mechanisms to prevent high earners from reducing their maintenance liabilities through the diversion of income into pension contributions.

The paying parent's (PP) gross income, after occupational or personal pension scheme contributions are deducted, is taken directly from HM Revenue and Customs (HMRC) for the latest tax year available. This is because either pension contributions themselves or the earnings from which they are paid qualify for income tax relief.

Either parent can ask the CMS to consider where they believe a paying parent is deliberately making excessive contributions into a private pension in order to reduce the calculation.

This is called a diversion of income variation. If the CMS considers that the deduction in the gross weekly income is unreasonable then the maintenance calculation can be adjusted.