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Can anybody tell me if the new changes to the way child support is calculated due this october, will ultimately increase the current payments you are making now and will it force the PWC to come to a family based agreement rather than being on a money making scheme. 😡
My understanding is that you will only switch to the new scheme if you are a new applicant in October. Existing usets of the CSA, are being phased over, with an aimed completion of having everyone switched over by 2017.
However under the new scheme, they will be heavily pushing family based arrangements, but they will still do CSA if required by one of the parties. However this will then incur charges both for the PWC and the NRP. The NRP will also be able to pay the PWC directly into their bank regardless of whether the PWC wants this or not. However in the event that the NRP defaults, the PWC can chose to have payments made to the CSA, and then the NRP will only be able to go back to paying the PWC with their agreement.
NB. Even if paying directly to PWC under a CSA arrangement, arrears will still add up if you miss a payment.
Figures
Current scheme
£250 per week gross salary.
£218 per week net salary
1 child = 15% £32.70 this is taken from the NRP to the PWC.
New scheme
£250 per week gross salary
1 child = 12% = £30.00. This can be paid straight from the NRP to the PWC
However if the NRP defaults on the arrangement and the PWC chooses to have maintenance paid via the CSA. The charges will be
NRP 15 - 10%
PWC - 7 - 12%
Assuming minimum charges apply
NRP will pay £34.50 and the PWC will receive £27.90. The CSA will receive £6.60.
Therefore it will not be a money making scheme for the PWC. They will possibly receive less money than they already do (depending what deductions have been taken off to get the current net pay figure), however it could end up costing the NRP more - but only if you are non-compliant with the payments.
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