From today’s date the Child Maintenance Service will apply charges if it is asked to collect maintenance payments from the paying parent and pass them on to the receiving parent as opposed to the parents making and receiving the payments direct. 

Now if the collect and pay service is utilised the paying parent has to pay an additional 20% on top of the CMS calculation and the receiving parent’s payment is reduced by 4%.  This is in addition to the £20 application fee to use the service which was introduced earlier this year.   

Clearly the hope is that this will encourage more parents to enter into arrangements direct as it is now financially advantageous to both parents.

If you have any queries please get in touch with a member of the family department at George Green LLP.