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Index linked child maintenance

Hi,

My ex-husband pays me £500 per month maintenance for our two sons. The amount was index linked by the court and was set to be increased on 1st June each year. Every year I have a battle with my ex to receive the extra money, it has increased each year and is now at £588.65 per month. I have to badger him for months to get him to get his accountant to work out what the increased figure is each year.

He is now insisting that this year it won't go up at all because "last years inflation was down by 1.7%" . Can anyone tell me if this is true? I haven't a clue how to work out if the childrens maintenance should go up or not. I was made redundant in January and have been searching for work since then, I just can't afford to pay a Solicitor or accountant to help me.

I would be so grateful for any comments or advice anyone is kind enough to offer.

Many thanks, Swannette
«1

Comments

  • Swannette wrote: »
    Hi,

    My ex-husband pays me £500 per month maintenance for our two sons. The amount was index linked by the court and was set to be increased on 1st June each year. Every year I have a battle with my ex to receive the extra money, it has increased each year and is now at £588.65 per month. I have to badger him for months to get him to get his accountant to work out what the increased figure is each year.

    He is now insisting that this year it won't go up at all because "last years inflation was down by 1.7%" . Can anyone tell me if this is true? I haven't a clue how to work out if the childrens maintenance should go up or not. I was made redundant in January and have been searching for work since then, I just can't afford to pay a Solicitor or accountant to help me.

    I would be so grateful for any comments or advice anyone is kind enough to offer.

    Many thanks, Swannette

    Retail price index fell between June this year and last by
    http://www.devon.gov.uk/index/democracycommunities/improving_our_services/facts_figures_and_statistics/facts_and_figures/economy/economyrpi.htm?nocache=9766

    100*(216.8-213.4)/216.8 = 1.476%

    so adjusting for RPI new amount = 588.65 *(213.4/216.8) = £579.42

    CPI (Consumer Price Index) was however up slightly 1.8%
    http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm
    (it also depends on date in May/June taken):
    which would make it a new amount = 588.65*1.018 = £599.25

    It depends what inflation measure you take and which is in your court order....
    Student loans currently have a negative interest rate because of the negative inflation:
    http://www.moneysavingexpert.com/loans/student-loans-repay
  • NAR
    NAR Posts: 4,863 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Swannette wrote: »
    Hi,

    My ex-husband pays me £500 per month maintenance for our two sons. The amount was index linked by the court and was set to be increased on 1st June each year.
    He is now insisting that this year it won't go up at all because "last years inflation was down by 1.7%" . Can anyone tell me if this is true? Many thanks, Swannette
    You need to check the court papers to see if it is based on the Consumer Prices Index (CPI) or the Retail Prices Index (RPI).
    Not sure what the June rates were, but July's was CPI +1.8%, but RPI
    was -1.4%.
    So if it is based on RPI he would be within his rights not to offer any increase, sorry.
  • Swannette wrote: »
    Hi,

    My ex-husband pays me £500 per month maintenance for our two sons. The amount was index linked by the court and was set to be increased on 1st June each year. Every year I have a battle with my ex to receive the extra money, it has increased each year and is now at £588.65 per month. I have to badger him for months to get him to get his accountant to work out what the increased figure is each year.

    He is now insisting that this year it won't go up at all because "last years inflation was down by 1.7%" . Can anyone tell me if this is true? I haven't a clue how to work out if the childrens maintenance should go up or not. I was made redundant in January and have been searching for work since then, I just can't afford to pay a Solicitor or accountant to help me.

    I would be so grateful for any comments or advice anyone is kind enough to offer.

    Many thanks, Swannette
    IF you give us an idea when the order started we can check if the battle for the extra previously was approximately right....
  • IF you give us an idea when the order started we can check if the battle for the extra previously was approximately right....

    Hi Barnaby-bear, Thank you so much for your kind help, I will unearth the court papers tomorrow and get back to you with the details. I can't tell you how much I appreciate your help.

    Swannette
  • IF you give us an idea when the order started we can check if the battle for the extra previously was approximately right....

    Good Morning Barnaby-bear, I have the court order and it was dated 21st November 2003. I have two sons (who are now 11 and 13) and paragraph 4 of the order says that my ex-husband must pay £250 per child per month payable on the first day of each month from the date of the order until they reach 18 years of age or finish further education.

    There then follows a section which reads 'The periodical payments payable under paragraph 4. above shall in the event that there shall be any increase in the Retail Prices Index over the twelve month period ending April in any year from and including 2004, be increased by the percentage of such increase with effect from the payments payable on the 1st day of June in each such year.'

    I would really appreciate any help you could give me as to whether the maintenance he is paying is correct.

    I am really angry with myself as the original maintenance was set at £325 per month per child, but my ex came to me and said that he felt that this was too much for a 4 and 6 year old. So like a fool I agreed to the lower figure of £250 each child because he promised me that he would never see our boys go without anything and all I had to do was ask him and he would give me more.

    We ran a very successful business at the time and I just couldn't see him ever turning nasty..... once I had signed the agreement and the court order was stamped, I then found out that the person he was having an affair with (thats why I was divorcing him) was a supplier to our business and between them they bullied me out of the company and now I am left high and dry with virtually nothing and 13 years hard work down the drain. I did find a part time job that fitted in around my boys but I was laid off in January due to lack of business.

    I just feel like I've been used and my children are suffering because of it. Any increase on their maintenance no matter how small would be a help.

    Sorry if I've gone into too much detail, but I thought that as you had been kind enough to offer your knowledge in this area and help with the calculations, that I would just let you know a bit of the background so you can see why I am in such desperate situation.

    Regards, Swannette
  • NAR
    NAR Posts: 4,863 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Based on what you have stated ie RPI to be used to calculate changes to the amount, then what I stated earlier is correct.
    NAR wrote: »
    but RPI was -1.4%.
    So if it is based on RPI he would be within his rights not to offer any increase, sorry.
    In fact he would be entitled to seek a reduction of 1.4%.

    Barnaby-bear will be along later I'm sure to confirm if the RPI increases on payments to date have been correctly applied, though as far as I remember they ranged from 4% to 5% approx.
  • NAR wrote: »
    Based on what you have stated ie RPI to be used to calculate changes to the amount, then what I stated earlier is correct.

    In fact he would be entitled to seek a reduction of 1.4%.

    Barnaby-bear will be along later I'm sure to confirm if the RPI increases on payments to date have been correctly applied, though as far as I remember they ranged from 4% to 5% approx.

    It doesn't say anything in there about applying a decrease in the case of a RPI decrease :confused:.
    :DYummy mummy, runner, baker and procrastinator :p
  • NAR
    NAR Posts: 4,863 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It doesn't say anything in there about applying a decrease in the case of a RPI decrease :confused:.
    :o Sorry you are quite correct, so I will repeat my earlier statement - "So if it is based on RPI he would be within his rights not to offer any increase,"
  • vaio
    vaio Posts: 12,287 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Of course there is nothing to stop the you (or indeed your ex) going back to court to reassess the order particularly as the kids are now 11 & 13 rather than 4 & 6.

    As you are jobless I presume you will get legal aid

    Also it might be worth looking at the possibility of getting the CSA involved
  • barnaby-bear
    barnaby-bear Posts: 4,142 Forumite
    edited 16 September 2009 at 7:01PM
    Swannette wrote: »
    Good Morning Barnaby-bear, I have the court order and it was dated 21st November 2003. I have two sons (who are now 11 and 13) and paragraph 4 of the order says that my ex-husband must pay £250 per child per month payable on the first day of each month from the date of the order until they reach 18 years of age or finish further education.

    There then follows a section which reads 'The periodical payments payable under paragraph 4. above shall in the event that there shall be any increase in the Retail Prices Index over the twelve month period ending April in any year from and including 2004, be increased by the percentage of such increase with effect from the payments payable on the 1st day of June in each such year.'

    I would really appreciate any help you could give me as to whether the maintenance he is paying is correct.

    I am really angry with myself as the original maintenance was set at £325 per month per child, but my ex came to me and said that he felt that this was too much for a 4 and 6 year old. So like a fool I agreed to the lower figure of £250 each child because he promised me that he would never see our boys go without anything and all I had to do was ask him and he would give me more.

    We ran a very successful business at the time and I just couldn't see him ever turning nasty..... once I had signed the agreement and the court order was stamped, I then found out that the person he was having an affair with (thats why I was divorcing him) was a supplier to our business and between them they bullied me out of the company and now I am left high and dry with virtually nothing and 13 years hard work down the drain. I did find a part time job that fitted in around my boys but I was laid off in January due to lack of business.

    I just feel like I've been used and my children are suffering because of it. Any increase on their maintenance no matter how small would be a help.

    Sorry if I've gone into too much detail, but I thought that as you had been kind enough to offer your knowledge in this area and help with the calculations, that I would just let you know a bit of the background so you can see why I am in such desperate situation.

    Regards, Swannette

    I'm no expert on child maintenance - I just understand RPI

    I took the RPI figures from here http://www3.hants.gov.uk/finance/retailpricesindexandconsumerpriceindex.htm
    There maybe another set on a particular date so we are talking approximate rather than penny for penny

    April RPI (new amount)
    2004 2.5 500*1.025 = 512.5
    2005 3.2 512.5*1.032 = 528.9
    2006 2.6 528.9*1.026 = 542.6514
    2007 4.5 542.6514*1.045 = 567.070713
    2008 4.2 567.070713*1.042 = 590.8876
    2009 -1.2

    (This is slightly different and the figures taken do match the RPI data here http://www.statistics.gov.uk/downloads/theme_economy/Rp04.pdf (which should be definitive )
    I've added in all my working so anyone can spot mistakes and so the OP can get an idea of what and how she should be
    getting. Each year she needs to multiple the existing amount by (100+(the RPI %)) all divided by 100 - so the first year (100+2.5)/100 = 1.025
    I think she should understand what she is entitled to.

    REassessing the court order maybe an option.
    I think whoever worded the agreement though did it well as they stipulated it should change if RPI went up only.
    If it had been worded as linked your ex could be cutting it now and the wording (to my uninformed reading) doesn't
    seem to allow that.

    These are really simple calculations - one multiplication based on one publically available figure so your ex
    shouldn't be procrastinating for months (I hope you got it back dated). The figures and amounts do seem to tally.
    As soon as april's RPI is released (if it's positive) send him a recorded delivery letter

    Whether the RPI is a good index to use or appropriate for child maintenance may be an issue (this suggest so http://www.ondivorce.co.uk/childsm.htm)
    but children get older.... there maybe grounds for reviewing the court order based on that but maybe the CSA boards or other specialist boards might have people who know, I'm afraid I don't.


    http://www.statistics.gov.uk/CCI/nugget.asp?ID=21

    NAR: thanks for the vote of reliability
    Have you considered posting your budget on DFW/benefits to check you are claiming all appropriate - maybe mortgage interest if made
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