Protected earnings question

winston123

I have received a letter from the CSA stating they will be taking 40% of my wage from this month and my protected earnings are just £720, with rent at £650 and ctax at £136 how am I supposed to manage.

I have 2 children living at home 9 and 5, my question is does my protected earnings not increase due having children living with me.

On a side note the last time I had an assessment it came back as £NIL, and I was asked to pay just £30pm towards the arrears as they knew I could afford no more, and I have no change in circs.

Any help/advice appreciated

Thanks

HoneyNutLoop

The answer differs depending on if you are on CS1 or CS2 - do you know which scheme you are on?

winston123

Hi HNL,

I was on the old system but received a letter around 12 months ago to say the case was now closed and no further payments needed to be made but to continue to make payments to the arrears as I always have.

This appears now to be a new case using the new 15% rule for one child for regular payments and then a further payment taking 25% more of my wage.

HoneyNutLoop

Ok, that accounts for the differences. Under CS1 it is quite possible to have a nil assessment when working, especially if your housing costs represented a large percentage of your income. On CS2 housing costs don't come into it, and you will only receive a nil calculation if you have income of less than £5 a week or are claiming income based JSA or income support and qualify for a shared care allowance.

Under CS2 your protected earnings amount for a DEO is a straight 60% of your earnings from the employment/pension on which the order is served. The presence or absence of children in your household does not affect the figure at all.

If you are struggling financially, you can try to renegotiate the arrears rate with the CSA. However, the higher the debt, the less chance there is that the CSA will agree to lower payments.

The normal question at this stage is if you agree the arrears figure is correct, or have you had a breakdown to verify it? Would your PWC be happy to accept less towards the arrears, as this can hold sway with the CSA?

winston123

Thanks for your response HNL, not what I was hoping to hear but at least I now know where I stand.