As part of a major reform, all parents will use a new collect and pay service, which will charge 2% to both receiving and paying parents from 2027/28, if approved by ministers
A huge shake-up of child maintenance rules mean hundreds of thousands of parents will see the money they receive from ex-partners slashed.
The latest statistics show 440,000 parents use the fee-free child maintenance service (CMS) direct-pay option. This is where the paying parent makes payments directly to the receiving parent.
Meanwhile, 310,000 parents use the collect and pay service, which is where the CMS collects and passes on payments. This charges 20% to the parent sending the payment, and 4% to the receiving parent.
But as part of a major reform, all parents will use a new collect and pay service, which will charge 2% to both receiving and paying parents from 2027/28. This would have to be approved by ministers before it is implemented.
Child maintenance is an on-going payment that is paid by one parent when they don’t live with the child, to cover the everyday cost of bringing up that child.
It is normally set up when parents separate and they have a child under 16, or under 20 and still in full-time education. There are various ways of working out the exact amount of child maintenance due.
The two parents can decide between themselves, or through the CMS. There are several factors that will decide the outcome – such as how many children are involved, the income of the partner who lives away, and how often they see the child.
The CMS can take the decision to court if your partner refuses to co-operate. Child maintenance payments don’t affect any benefits that you may receive, and you don’t have to pay tax on them.
You can apply if live in the UK and you’re the parent of the child, or a grandparent or guardian with main caring responsibilities for the child.
Help with childcare costs
Working parents of nine-month olds will soon be able to access 30 hours a week free childcare from September 2025.
If your child is between the age of nine months and two years old, you must be earning the equivalent of the national minimum wage for 16 hours a week, on average, but less than £100,000 a year, to qualify for free childcare.
This applies to both parents if you’re in a couple. All parents of three and four-year-olds are entitled to 15 hours free childcare a week as standard, regardless of whether they are in work.
Working parents with children of these ages can claim the full 30 hours if they meet the earnings criteria. There is also the tax-free childcare scheme, which is an online account especially for paying for childcare.
For every £8 you pay in, the Government automatically adds in £2. If you’re eligible, you can get up to £500 every three months for each of your children.