Calculation and Systems
A new method of child maintenance calculation came into effect on March 3,2003. The previous method used a "complex formula of up to 108 pieces of information", by first calculating the total child maintenance required based on the children's ages, then calculating the non-resident parents income after various allowances were subtracted, and finally working out what portion of the calculated maintenance was to be paid by the non-resident parent, based on their income.
Under the new method the basis for calculating maintenance has been simplified, with a fixed percentage of the non-resident parents net income being taken, from 15% for one child, 20% for two, and 25% for three or more. Where maintenance is calculated using the basic rate, the amount of maintenance is also reduced if the non-resident parent has children in their current family. Where this is relevant, the CSA will not take into account: 15% of their net weekly income if there is one child living with them, 20% if they are two children living with them, and 25% for three or more.
Read more about this topic: Child Support Agency
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