NEW CHILD SUPPORT SCHEME COMMENCEMENT DATE ANNOUNCED

27 Jan 2003 03:45 PM

The new Child Support scheme will be introduced from 3 March 2003, Work and Pensions Secretary Andrew Smith announced today.

The reforms being implemented on 3 March 2003 will place children at the heart of the scheme. They will ensure that money gets to more children more quickly - over one million children will benefit.

The new scheme will be more transparent and easier for parents to understand.

It will also mean that the Child Support Agency will be able to spend more time enforcing payment and ensuring that children get the support they deserve.

The new system is based on a simple percentage rate of maintenance payment - based on 15 per cent of net income for one child, 20 per cent for two children and 25 per cent for three children or more. For non-resident parents with net incomes of less than £100 a week or those receiving a wide range of benefits including Income Support and Jobseekers' Allowance, child maintenance will be set at a flat rate of £5 a week.

A new Child Maintenance Premium will mean that, for the first time, parents with care on income support or income-based Jobseekers' Allowance who are on the new scheme will be able to keep up to £10 a week of any maintenance paid for their children. This gives both parents an incentive to ensure that maintenance is paid.

The new scheme will initially be introduced for new cases only. Existing cases will only be transferred when Ministers are confident that it is seen to be working well.

Notes for Editors

The Child Support Agency handles over 1 million cases.

Public enquiries 020 7712 2171
Website www.dwp.gov.uk