Children: Maintenance

(asked on 20th October 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, with reference to paying parents who receive income from rental property being required to pay more in child maintenance payments as a result of changes in the calculation of their gross income, if she will make a make an assessment of (a) the equity of that policy, (b) the effect of those changes on the amount affected individuals are required to pay and (b) the effect on paying parents affected by those circumstances.


Answered by
Mims Davies Portrait
Mims Davies
Minister of State (Department for Work and Pensions)
This question was answered on 23rd October 2020

We believe that both parents have a financial responsibility to contribute towards the cost of bringing up their child. The calculation represents an amount of money that is broadly similar to the amount that a paying parent would spend on the child if they were still living with them.

Variations of a Child Maintenance calculation can be requested on grounds of unearned income; such as rental income from property or land, where the paying parent receives unearned income of at least £2,500 a year. This amount is then included in the gross income figure used to calculate the amount of maintenance owed.

As landlords can claim tax relief for certain costs linked to their properties, the rental income used in the calculation is usually net of HMRC allowable expenses (i.e. mortgages, maintenance of the property, rent, ground rent and service charges).

The Service runs through broad rules set out in child support legislation. The statutory scheme aims to provide the best overall outcome and protect the welfare of all of its clients.

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