Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will amend the Child Support Maintenance Calculation Regulations 2012 to ensure that Article 69a will only apply as a last resort when the non-resident parent is not making maintenance payments through PAYE and other unearned income (such as rental income) and it can be shown that the resident parent cannot meet the needs for the child.

The purpose of the asset variation, covered by regulation 69A of The Child Support Maintenance Calculation Regulations 2012, is to ensure that where paying parents are receiving income from assets, that this is taken into account in the child maintenance calculation.

Either parent may apply for a variation at any time during the life of their case. If a variation is implemented, the maintenance calculation will be adjusted accordingly to accurately reflect their circumstances. CMS would take income received from assets into account even if the paying parent is paying maintenance according to their PAYE income.

Child maintenance liabilities are calculated based on the taxable income and assets of the paying parent and represent an amount of money that is broadly commensurate with the amount a paying parent would spend on the child if they were still living with them. The income of the receiving parent is not used in the calculation, and the paying parent has a responsibility to support their child regardless of the receiving parent’s financial circumstances.

There are no plans to change the circumstances in which the asset variation could be used.