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by Munro Research

Child Maintenance and Other Payments Act 2008


Official Summary

A Bill to establish the Child Maintenance and Enforcement Commission; to amend the law relating to child support; to make provision about lump sum payments to or in respect of persons with diffuse mesothelioma; and for connected purposes.

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Overview

The Child Maintenance and Enforcement Commission Act 2008 created the Child Maintenance and Enforcement Commission (CMEC) to manage child support payments in the UK. It reformed the child support system, introducing new calculation methods and enforcement powers, and also established a new system for lump sum payments to mesothelioma sufferers.

Description

The Act established the CMEC as a body corporate with the primary objective of maximizing the number of children living apart from one or both parents who receive effective maintenance. Key functions included promoting child maintenance, providing information and guidance to parents, collecting fees, and making agency arrangements. The Act transferred most child support functions from the Secretary of State to the CMEC, except for appeal functions and those relating to reduced benefits. Significant changes were made to child support maintenance calculations, switching from net to gross income. The Act introduced new methods of collecting payments including deduction from earnings, direct debit from accounts and lump sum deductions. Tougher enforcement mechanisms were introduced such as preventing the avoidance of payments, administrative liability orders, travel authorization disqualification, curfew orders, and commitment to prison. Furthermore, the act addressed debt management by allowing the CMEC to treat liability as satisfied, accept part payment of arrears, and write off arrears in certain circumstances. Additional provisions were made regarding registered maintenance agreements in Scotland, reporting changes of address, special cases, and recovery of arrears from deceased estates. The Act also created a new system for lump-sum payments for mesothelioma sufferers, covering conditions of entitlement, claim determination, and appeals processes.

Government Spending

The Act resulted in a transfer of responsibilities and resources from the Department for Work and Pensions to the CMEC. Specific financial figures for the overall impact on government spending are not available in the provided text.

Groups Affected

  • Parents: The Act significantly impacts parents, both those with care and non-resident parents, by altering child support calculations and introducing new enforcement measures.
  • Children: Children are the primary beneficiaries, as the Act aims to improve their financial support.
  • The Child Maintenance and Enforcement Commission (CMEC): The CMEC is the central body responsible for administering the new system, incurring significant operational costs and taking on substantial responsibilities.
  • Employers: Employers are affected by the deduction from earnings orders.
  • Banks and Financial Institutions: These are affected by the introduction of deduction orders for regular payments from accounts.
  • Mesothelioma Sufferers and Their Dependents: These groups benefit from the establishment of a new system for lump sum payments.
  • Courts: Courts play a role in enforcement proceedings.
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