Getting your head around child maintenance can feel overwhelming, especially when you’re dealing with a changing family situation. However, whether you’re a single parent paying support or receiving it from a former partner, understanding how it works – and what knock-on effects it can have on your wider financial situation – can help reduce stress and ensure your children’s financial needs are met.
In this guide, we explain exactly what child maintenance is and run through how it usually works. We’ll also explore how both paying and receiving child maintenance can impact your debt, with a focus on those using an Individual Voluntary Arrangement (IVA) or a Debt Management Plan (DMP) to help manage their finances.
What is child maintenance?
Child maintenance is essentially financial support that helps cover your child’s everyday living expenses. Think of it as a shared responsibility that continues even if you and your child’s other parent are no longer together. It’s about making sure your little ones have everything they need – from school clothes to meals, and everything in between.
In the UK, this isn’t just a moral obligation – it’s a legal requirement backed by the Child Maintenance Service (CMS). The law recognises that children have a right to financial support from both parents, regardless of the parents’ relationship status. This means whether you were married, in a civil partnership, or simply co-parents, the responsibility remains the same. The system is designed to be fair, focusing on the child’s welfare above all else. It applies to biological parents, and in some cases, can extend to step-parents who have played a significant role in a child’s life.
How does child maintenance work?
When parents separate, sorting out finances such as child maintenance can feel very stressful. Fortunately, the UK government’s child maintenance system has been designed to be as straightforward as possible. The process typically begins with an opportunity for parents to reach a private voluntary agreement. This means sitting down and trying to work out a fair financial arrangement that supports your child’s needs.
If a private agreement can’t be reached, the CMS will step in as a neutral third party. They’ll help calculate and, if necessary, enforce maintenance payments. To get this process started, one parent can apply to the CMS, which will then assess the situation and determine the appropriate level of financial support.
The CMS uses a standardised calculation method that considers several key factors:
- The paying parent’s income
- Number of children needing support
- How much time children spend with each parent
- Any additional circumstances that might affect financial obligations.
Once the calculation has been done, parents have three main options for managing their child maintenance obligations. They can:
- Communicate once again with their co-parent and make a private agreement between themselves
- Use the CMS to calculate payments
- Obtain a court order for more complex situations.
The goal is always to ensure financial stability and support for the child, making the transition easier for everyone involved.
How much child maintenance should I pay?
The CMS uses a precise formula that considers your income and family circumstances to calculate a fair contribution. The basic calculation starts with your annual income. Here’s how it breaks down:
- If you earn under £7,000, you’ll likely pay no maintenance
- If you earn between £7,000 and £100,000, a percentage of your income applies
- If you earn over £100,000, calculations become more nuanced and will be tailored by the CMS.
While the amount you’ll pay can vary greatly based on the above, to give you a rough idea of what you might pay, the standard percentage guidelines are:
- 1 child: 12% of your gross income
- 2 children: 16% of your gross income
- 3 or more children: 19% of your gross income
However, it’s not just about numbers. The CMS also considers factors such as how much time you spend caring for your children, your overall financial situation (including any debt you may have), and any additional needs your children might have.
The aim is always to strike a balance – ensuring your children are financially supported without placing undue hardship on either parent. If your circumstances are complex, the CMS can provide tailored guidance to help you find a fair solution.
To get a more accurate idea of how much you might be asked to pay in child support, check out the CMS’ calculator page.
Does child maintenance take debts into account?
Worrying about how your financial troubles might affect child maintenance is totally normal. However, it’s important to remember that the UK’s child maintenance system is pretty straightforward – your children’s needs come first, no matter what’s going on with your finances. With this in mind, child maintenance calculations do not typically take personal debts into account. As discussed above, the amount you are required to pay is based primarily on income, not on any financial obligations or debts you may have. Similarly, if you are the receiving parent, your own personal debt will not influence how much maintenance you will receive.
However, if you are experiencing significant financial hardship due to debt, you can request a review of your maintenance payments through the CMS. Depending on the situation, the CMS may adjust the payment if appropriate.
Does an IVA affect child maintenance?
An IVA does not typically alter child maintenance obligations. Maintenance payments are considered a priority debt and continue regardless of other financial arrangements.
Similarly, if you are the recipient of child maintenance payments and are in an IVA, those payments should still be considered income and may be taken into account when calculating your available funds for the IVA. However, the payments themselves are not affected by the IVA. If you’re concerned about how your IVA might impact child maintenance, it’s a good idea to seek advice from your IVA provider.
Does a DMP affect child maintenance?
A Debt Management Plan also doesn’t impact child maintenance payments. These financial support obligations remain separate from other debt management strategies. Just like with an IVA, child maintenance is considered a priority expense and must continue to be paid regardless of any debt repayment arrangement. If you are the recipient of child maintenance payments and are in a DMP, those payments will still be counted as income, but they should not be reduced or stopped due to your DMP.
For more information on how debt can impact child maintenance payments, or for more general debt management advice, browse the MoneyPlus Advice site or get in touch with our team today.
