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Where Taxpayers and Advisers Meet
Children lose out as Child Maintenance Service introduces fees
25/02/2014, by Low Incomes Tax Reform Group, Tax Articles - General
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The Low Incomes Tax Reform Group (LITRG) fears that the Department for Work and Pensions’ proposal to introduce charges for its Child Maintenance Service will increase childhood poverty.

Introduction

The Department for Work and Pensions (DWP) has announced plans to start charging all couples for its Child Maintenance Service through ‘stronger enforcement’. Up until now its services have been free and have enabled parents – mainly mothers – to claim for children they care for and be paid maintenance from the other parent.
 

The proposal

The proposal is to charge £20 for each new application to the service and also to levy significant collection charges. For example, using a maintenance figure of £100, the parent due to pay that sum would actually have to pay £120, while the receiving parent would receive only £96. This means that the DWP is charging £24 to deliver £96 to the other parent – a charge of 25%. 
 
While the DWP has announced this as a measure to encourage families to work more closely together, LITRG fears the department has overlooked the fact that relationship breakdown normally comes with much associated hurt and grievances that can make it very difficult for the two halves of a couple to negotiate with each other, particularly in the early stages of a breakdown.
 

LITRG comments    

Family breakdowns are personal tragedies, but unfortunately they are a part of our everyday society. In most cases, children have no say in the relationship between their parents, but it is these very children who will be penalised by the proposed fees.
 
At a time of great stress and worry, parents are being asked to either come to a prompt amicable agreement or face paying a government agency for advice – this is hugely worrying. For the poorest families the consequence can only be further hardship. Childhood poverty is already high in the UK, with more than one in six children affected. This measure threatens to make that situation worse, especially for fragile single parent families. LITRG strongly urges the DWP to think again on this proposal.
 

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About The Author

The Low Incomes Tax Reform Group (LITRG) is an initiative of the Chartered Institute of Taxation to give a voice to those who cannot afford to pay for tax advice. LITRG comprises tax specialists from professional practice and the voluntary sector, from publishing and from HM Revenue & Customs, together with people from a welfare benefits and social policy background. Visit www.litrg.org.uk for further information.
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