In essence, the child support formula is simple: the NRP pays 15% of their net income for one child, 20% for two children and 25% for three or more children. This is known as the basic rate. ‘Net income’ essentially means gross income less income tax, national insurance and pension contributions (75% of pension contributions if the pension is set up to pay off a mortgage). Note that the NRP pays less if their net weekly income is less than £200. If their income is more than £100 per week but less than £200 per week, they will pay the reduced rate of £5 plus 25% of their weekly income over £100 for one child, £5 plus 35% of their weekly income over £100 for two children and £5 plus 45% of their weekly income over £100 for three or more children. If the NRP’s net weekly income is between £5 and £100 per week (or they or their partner receive income support or certain other state benefits) they pay the flat rate of £5, and if their income is less than £5 a week they pay nothing – the nil rate.
Example 1: Three children, NRP’s net weekly income = £300, NRP pays 25% of £300 = £75
Example 2: One child, NRP’s net weekly income = £160, NRP pays £5 plus 25% of £60 (£15) = £20
Where the child stays overnight with the NRP one night a week on average, maintenance will be reduced by one seventh, two sevenths for two nights per week and three sevenths for three nights per week. If care is shared equally, then it is reduced by half plus £7, although I would suggest that a fairer arrangement would be to take into account the net income of each parent. If each has a similar income, then neither should pay anything; if one has a higher income, then they should make a contribution to the other parent, which can hopefully be agreed.
Example 3:Two children, stay with NRP 104 nights per year. NRP’s net weekly income = £350. NRP pays 20% of £350 = £70, reduced by 2/7 = £50
If the NRP has other children living with them and the basic rate applies, their net weekly income for the purpose of calculating child maintenance will be reduced by 15% for one child, 20% for two children and 25% for three or more children. If the NRP pays the reduced rate, then the percentages referred to above are reduced, in accordance with Table 3.1.
Example 4: Two children, NRP has one child living with them, NRP’s net weekly income = £300. NRP’s income reduced by 15% to £255. NRP pays 20% of £255 = £51
If the NRP has to pay child maintenance to more than one PWC (for example, a father who has children by two different mothers), then the total child maintenance is calculated as above and then divided equally between each of the children.
| Number of children needing child maintenance | Number of children living with the non- resident parent | Standard amount | Percentage of net weekly income over £100 a week, but less than £200, that a non-resident parent pays |
| 1 | 1 | £5 | 20.5% |
| | 2 | £5 | 19% |
| | 3 or more | £5 | 17.5% |
| 2 | 1 | £5 | 29% |
| | 2 | £5 | 27% |
| | 3 or more | £5 | 25% |
| 3 or more | 1 | £5 | 37.5% |
| | 2 | £5 | 35% |
| | 3 or more | £5 | 32.5% |
Table 3.1 Reduced rates for NRPs with other children
A child maintenance calculator can be found on the CSA’s website:
https:/secureonline.dwp.gov.uk/csa/v2/en/calculatemaintenance.asp.
Note that the CSA is being replaced by the Child Maintenance and Enforcement Commission (see Appendix 2) and the Commission will use a new formula, based upon gross rather than net income. At the time of writing, it is expected that the new formula will come into operation during 2011.