Research and analysis

Deductions of child maintenance from state benefits: planning estimates of the numbers of paying parents in scope to be affected by the extension of child maintenance deductions from benefit

Published 6 March 2019

Management information ad hoc analyses

This publication is classified as management information ad hoc analysis. These documents are published in the interests of transparency and are not part of our regular Official and National Statistics publications.

Policy background

The government’s 2018 response to the child maintenance compliance and arrears strategy consultation sets out proposals to ensure consistency amongst child maintenance deductions from benefits.

It proposes aligning child maintenance deductions from benefits at a maximum amount per week (£8.40), regardless of whether the deductions are towards ongoing maintenance or arrears. There will be further consistency by deducting arrears from all the benefits that ongoing maintenance can currently be deducted from.

It is also proposes to deduct child maintenance arrears and ongoing maintenance payments from Universal Credit for those with earnings who are liable to pay flat rate maintenance. This is an important change in line with a key principal of the child maintenance scheme that parents should help support their children regardless of their own financial circumstances.

New regulations are proposed which allow these deductions to also be made at the rate of £8.40 a week, aligning our treatment of these clients with others in a similar situation.

These changes also contribute towards meeting our commitment in the child maintenance compliance and arrears strategy to collect historic arrears where parents to whom these are owed want them and it is cost effective to do so. Only those parents whose historic arrears meet agreed thresholds will be in scope for deductions.

What you need to know

Protections are in place to ensure benefit deductions are proportionate.

If a customer is receiving hardship payments, a deduction from that person’s benefit towards 2012 Child Maintenance Service (CMS) flat rate maintenance cannot be taken.

Additionally, the 2018 Autumn Budget announced that the maximum amount that can be deducted from Universal Credit will reduce from 40% to 30% of a claimant’s standard allowance.

If a claimant has a sanction applied to their Universal Credit award which is equal to, or more than, 40% of their standard allowance, certain deductions (including child maintenance) will cease.

Guidance in place ensures there is a priority in which deductions can be made from benefits. For the extension of this policy to Universal Credit the following are proposed to apply:

• there is a deduction priority order which governs the deductions that can be made from Universal Credit
• deductions for flat rate child maintenance sits at 14th in the hierarchy
• arrears deductions will sit alongside these
• ongoing maintenance has priority over arrears – deductions for arrears and ongoing maintenance will not therefore be taken at the same time

Purpose of the release

This analysis is published for the sake of transparency and accountability.

It estimates how many paying parents claiming benefits could be affected by the deduction from benefit proposals, rounded and broken down by benefit and by region.

This will allow assessment of the current scope of the deductions from benefits powers and of how this aspect of the compliance and arrears strategy is progressing.

However, all parents owing historic debts are included in current numbers with no attempt made to exclude those whose arrears we have agreed to write off without representation. Furthermore, only a minority of those parents to whom these debts are owed and offered representation are expected to request follow up of these monies.

The Social Security Advisory Committee (SSAC) may use these numbers we provide in their publications, so our data is clarified and publicly available for transparency. The Secretary of State may subsequently publish SSAC’s advice and respond to their recommendations.

Statement of compliance with the Code of Practice for Statistics

The Code of Practice for Statistics (the Code) is built around 3 main concepts, or pillars:

• trustworthiness
• quality
• value

The following explains how we have applied the pillars of the Code in a proportionate way.

Trustworthiness – is about having confidence in the people and organisations that publish statistics

The figures are based on Department for Work and Pensions (DWP) management information. DWP analysts have provided challenge to ensure the figures are an accurate representation of the current status of child maintenance policies and appropriately identify both old Child Support Agency (CSA) and new CMS systems.

Quality – is about using data and methods that produce assured statistics

Data presented are derived from DWP benefits (legacy and Universal Credit) receipt identified for parents with child maintenance arrears only on the CSA system, or with ongoing child maintenance liabilities and arrears on the CMS. Cases transferred from CSA to CMS are also identified.

Analysts have checked the data to ensure volumes reflect what is known about state benefit receipt among paying parents – both those on current systems or with arrears on old systems.

Value – is about publishing statistics that support society’s needs for information

Data provides an overview of paying parents with ongoing child maintenance liabilities or arrears. Making this information accessible provides appropriate support for a specific upcoming SSAC session and also for the wider stakeholder community.

SSAC will offer impartial advice on regulations designed to improve the coherence and fairness of our powers to deduct child maintenance from benefits due to paying parents. The Secretary of State publishes SSAC’s advice and responds to their recommendations.

Data are also presented for each of the constituent countries of Great Britain to enable use at country level for policies which apply equally across Great Britain.

Contact information

For queries about the content of this document, email cm.analysis.research@dwp.gov.uk.

For press enquiries, contact DWP Press Office on: 0203 267 5144.