CSA Variation? Please help

LizzieS_2

The interest rate is fixed in legislation AFAIK and it is not therefore the interest actually received. 8% sticks in my mind though not 100% on that one.

flateric81

what proof do you have of his savings?

Isherwood_2

Hi YG
I don't know anything about the interaction of CSA payments with benefits but I do know a lot about CSA asset variations, having been on the wrong end of one! The basis of assessment is set out in the Child Support (Variations) Regulations 2000. If you google this it will take you straight to the actual legislation which isn't that hard to follow. (I'd post a link but they won't let me as a new member!)

A variation can be granted if an NRP has "financial assets" of value in excess of £65000 - this includes money in bank accounts, stocks and shares etc AND property (excluding the principal residence). The assessment is based on all such assets, not just the excess over £65,000. The income that they actually earn on these assets is totally irrelevant. The CSA will ASSUME that they earn an income on the assets based on an arcane thing called the Statutory Judgement Debt Interest Rate which at present is set at 8%pa and hasn't been changed since 1993. So, if they really have £500k (and you can prove it) CSA will assume that the assets generate an annual income of £40k (after tax). Assuming that you are entitled to CSA payments based on 20% of income for two kids this would give you £8000 pa or nearly £160 per week! Worth a shot! Don't get your hopes up as CSA will probably exhibit their usual level of competence i.e. get it all wrong and take about a year to sort it (as in my case) but any payments will be backdated to the date you apply for the variation. The 8% is of course totally ludicrous in the current financial climate but CSA will stick to the letter of the law.