The Department for Work and Pensions (DWP) is planning to reform the Child Maintenance Service (CMS), introducing new charges for parents using the fee-free Direct Pay system to help fund enforcement powers.
DWP minister Lilian Greenwood has issued a new parliamentary update on the changes the government is making to the CMS.
Direct Pay charges and fee changes
Under the proposals, parents currently using the fee-free Direct Pay system would pay a new 2% charge. For those on the existing Collect and Pay system, paying parents' fees would drop from 20% to 2% if they pay on time, while receiving parents' fees would fall from 4% to 2%.
The DWP says Direct Pay leaves payments late or unpaid, with receiving parents often forced to chase former partners. Only 60% of receiving parents in Direct Pay reported getting all the maintenance they are owed, while just 40% said they always received it on time.
Economic abuse concerns
Greenwood said in the parliamentary update: "The current arrangement can also create opportunities for economic abuse, including situations where maintenance is withheld, paid late or manipulated as a means of exerting control over a former partner."
The House of Lords Public Services Committee said it was not convinced the reforms would work, warning it was "not persuaded that the Government have adequately evidenced that this approach will lead to higher compliance in child maintenance payments."
