January 6, 2013
Child Maintenance and Enforcement Commission
From 2012 The Child Maintenance and Enforcement Commission (CMEC) will introduce a new statutory maintenance system…
The Child Maintenance and Enforcement Commission (CMEC) is a Non-Departmental Public Body which holds the responsibility for the child maintenance system in Great Britain. They were established in July 2008 after a report written by Sir David Henshaw recommended that a radical change to the existing system was required. The CMEC is accountable to the Secretary of State for Work and Pensions.
The CMEC has three core functions:
- Promote the financial responsibility that parents have for their children.
- Provide information and support on the different child maintenance options available.
- Provide an efficient statutory maintenance service, with effective enforcement.
From 2012 the CMEC will introduce a new statutory maintenance system, this will be a ‘gross income’ system based on latest available tax year information from the HMRC. It is hoped that using information from a single source will significantly reduce the time it take to calculate child maintenance. The Maintenance award will be fixed for a year unless income varies by more than 25%.
Clients on the existing CSA schemes will be encouraged to either, make there own arrangements for child maintenance, or will be migrated slowly to the new ‘gross income’ system. During this transitional period employers must be able to handle both the existing and new systems within their salary calculations.
It is predicted that by 2015 a single system of child maintenance will be in place.
Gross Income Calculation
These rates will be applied against Gross Income:
– 12% for one child
– 16% for two children
– 19% for three or more children
Where the GROSS weekly wage is higher that £800 the above rates will be applied to the first £800pw plus the following rate will be applied to gross income over and above £800pw
– 9% for one child
– 12% for two children
– 19% for three of more children
The maximum wage to be included within the calculation has been raised from £2000pw to £3000pw.