27 March 2006
Philip Dunne asks the Secretary of State for Work and Pensions whether money paid in lieu of maintenance can be taken into account or over-ridden by the CSA when assessing maintenance.

Mr. Dunne: To ask the Secretary of State for Work and Pensions whether consent orders by courts may be (a) taken into account and (b) over-ridden by the Child Support Agency in assessing non-resident parents for maintenance in a case where a non-resident parent has agreed to pay sums in lieu of maintenance. [59352]

Mr. Plaskitt: There are only limited circumstances in which sums paid to an ex-partner in lieu of ongoing maintenance can be taken into account.

Under the new child support scheme non-resident parents and parents with care may apply for a "variation" to the maintenance calculation. A non-resident parent can apply to have their maintenance reduced to reflect a transfer of property or capital to the parent with care.

This applies where the transfer was valued at £5,000 or more and was made as a result of a court order or written maintenance agreement made prior to 5 April 1993, and the transfer was made in lieu of ongoing child maintenance. These were often referred to as "clean break" settlements. In all other cases transfers of property or capital cannot be reflected in maintenance liabilities.

A variation is only allowed where it is "just and equitable" to do so. Broadly this means that the result of the variation must be fair, taking account of all the circumstances of the case, and, in particular, the welfare of any child likely to be affected. This includes the child for whom maintenance is paid as well as any other children living with either parent.

An order for periodical payments of maintenance made, by consent or otherwise, before 3 March 2003 will usually prevent an application for child support maintenance unless the parent with care has claimed a prescribed benefit. Such an order made after that date will prevent an application for a year, again unless the parent with care claims benefit. When a maintenance calculation is made in a case where an order exists, that part of the order which provides for periodical payment of maintenance ceases to have effect.

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