Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether he plans to review the definition of income used in the Child Maintenance Service 2012 Scheme to ensure that it includes income derived from (a) investments, (b) dividends, (c) rental income, (d) director’s loans and (e) other company-based income arrangements.

A review of the child maintenance calculation is currently underway. As part of this work, my Department has already announced plans to include gross unearned income automatically within the calculation, removing the need for either parent to request a variation in order to have this income included within their calculation.

Gross unearned income, as envisaged, will include taxable income from investments, dividends and rental property recorded by HMRC for the individual. Income taken through other company-based arrangements, such as a director’s loans, will continue to be considered under existing diversion of income powers where appropriate. Implementation of the changes to unearned income will be taken forward once the consultation has concluded.