How is child maintenance paid?

How child maintenance from a private arrangement is paid

If you and your child’s other parent have agreed on a private arrangement for child maintenance  you can decide between you how it should be paid.  

It can be paid into your bank account. A bank account would give you both proof of how much and how often child maintenance is paid. 

Cash payments are possible if you have a private arrangement and both parents agree to this, but it’s important to keep written evidence of every payment  

If the arrangement breaks down (for example, if payments are missed) then parents can access the Child Maintenance Service (CMS) for support. However, it is important to note that the CMS has no legal powers to recover any privately arranged payments that are missed.

How child maintenance calculated by the Child Maintenance Service is paid

Direct pay

With a direct pay arrangement it is up to you and your child’s other parent how and when child maintenance is paid. This could be into your bank account. If child maintenance is paid into your bank account you will have a record of payments.

If payments are not paid in full or on time, the receiving parent can report this and request to move the arrangement to a Collect & Pay setup. 

Cash payments are possible if you have a Direct Pay setup and both parents agree to this, but it’s important to keep written evidence of every payment. It is important to remember that non-payment is very hard to evidence if payments are made in cash.

Collect and pay

You can request to use the collect and pay service if you want the Child Maintenance Service to collect maintenance from your child’s other parent and pay it into your bank account. You can request to use this service if you do not want any contact with your child’s other parent or if they have been abusive. 

Both you and your child’s other parent will have to pay collection fees. The parent paying will have to pay a collection fee equal to 20% of the calculated child maintenance. The receiving parent will have 4% of their child maintenance deducted before they receive it. 

If the parent paying child maintenance does not make regular payments, the Child Maintenance Service can take action to recover them. CMS may apply enforcement charges if payments are not made through collect and pay and need to be escalated to other types of deductions.