CSA - Receive less?

kirstle99

Hi is it true that if you go through the CSA for maintenance they take a cut so the non resident parent pays more but the resident parent receives less than if they were paid privately at the going rate?

PreludeForTimeFeelers

kirstle99 wrote: »

Hi is it true that if you go through the CSA for maintenance they take a cut so the non resident parent pays more but the resident parent receives less than if they were paid privately at the going rate?

Not currently, no.

Later this year, collection charging will be introduced for cases on the new 2012 system. Parents will be able to avoid the charges by setting up a direct pay agreement or a family-based arrangement. For direct pay cases, CMS will assess the case and carry out yearly reviews/reassessments if things change etc, but won't be involved with collections, however if the direct pay arrangement falls down for whatever reason then either parent can ask CMS to collect the payments. This would be subject to charges of 4% to the receiving parent and 20% to the paying parent, ie if maintenance is calculated to be £100 per month, the receiving parent would get £96, the paying parent would pay £120 per month. The remaining £24 would go to the Government to help pay towards the costs of running the system.

If you've already got a case on either the 93 or 03 scheme then that will continue as is until next year at the very earliest.

kirstle99

Ah ok thanks for that. I've currently got a private arrangement with the nrp at the rate the online calculator said.

So if that did break down i'd go through the official route, but it doesn't look like i'd end up with much less but they would pay more?

PreludeForTimeFeelers

kirstle99 wrote: »

Ah ok thanks for that. I've currently got a private arrangement with the nrp at the rate the online calculator said.

So if that did break down i'd go through the official route, but it doesn't look like i'd end up with much less but they would pay more?

Yeah, the charge to the receiving parent is fairly negligible really, to encourage paying parents to co-operate.