Earlier this week the government announced big changes to the Child Maintenance Service (CMS). Many single parents have been asking us what this will mean for them.

Firstly, nothing is changing straight away. The changes proposed this week cannot be made without a new law. So we don’t expect to see any changes for at least two years.  

Until then, there are lots of opportunities to further influence the changes. Gingerbread have started by preparing an open letter to the Minister.

What does our open letter ask for?

The open letter outlines 5 important principles:

We want to put reducing child poverty at the heart of the government’s plans – this means better income assessment, enforcement, closing loopholes and abolishing fees entirely.

Any changes can cause confusion and uncertainty. So communications from the CMS need to be clear, accessible and timely, so that parents fully understand the changes and their options.

We’re calling for better follow-up support for families who leave the CMS. This is vital, both to make sure that people aren’t simply pushed into inadequate private arrangements, and also to safeguard victim-survivors of domestic abuse. 

We believe that implementing these changes needs resources. The CMS must have enough well-trained staff with the tools they need to do their jobs. We’re continuing to call for named case workers and an improved online portal. 

Lastly, we’re calling for accountability. This means that the DWP should have clear processes to evaluate how well these changes work, so that any problems can be identified and addressed. 

Do you agree with Gingerbread’s message to government?

Will these changes just affect new CMS users or existing users too?

All current CMS users, whether on Direct Pay or Collect and Pay, will be moved over to the new service. There will be a transition period before you are moved over. The government is saying that this will be 3 months. 

As part of the transition process, the parent who opened the case will have the changes explained and be advised of their options: either to remain in the CMS on the single, monitored service or, where it is safe and appropriate, to move to a private, family-based arrangement. At any point, you will be able to move back to the CMS if the private arrangement isn’t working. 

What about the fees?

The government has said the new service will mean 2% being added to the paying parent’s payment and 2% deducted from what the parent with care receives. However, a system will also be in place so that paying parents who are not paying what they are expected to pay will be charged 20% as now. We are trying to find out exactly how this would work in practice. 

If you’re on Collect and Pay currently, this will be good news as it means a reduction in fees.  However, for those currently on Direct Pay, this means an introduction of fees. Gingerbread opposes these fees and will continue to push for them to be abolished. This call for an abolition of fees is included under point 1 of our letter to the CMS Minister.  The alternative for those on Direct Pay who don’t want to pay a fee if this does go ahead as planned will be to set up an arrangement outside the CMS. Work is also needed so as much support is put in place for those wanting to set up a private arrangement. If you do set up a private arrangement, there is nothing to stop you from going back to the CMS in the future at any point. 

What about non-resident parents who use loopholes to avoid payment? 

We’re concerned that the proposed changes will not be enough to ensure that children get the financial support they are entitled to. That’s why we are writing to the CMS Minister to set out that a transformation in enforcement is needed, if the change is to be effective. This means proper monitoring of payments and follow up where payments are missed. It also means action to better assess income and to close loopholes that allow non-resident parents to avoid payments.

The government will also be consulting later this year on how the calculations for CMS are made. We will be pushing for unearned income and issues with self-employment to be part of this. 

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