• +48 575 562 036
  • 12 380 63 31
  • ul. Sikorki 31/10, 31-589 Kraków
  • 10am - 6pm Sunday Closed
  • 0582 856 310 Phone Call
  • trade@mail.com Instant Reply

Single Post

Private Child Maintenance Agreement Affect Benefits

Private Child Maintenance Agreements – How They Affect Benefits

When parents separate, they are expected to make provisions for the financial support of their children. This can be done through a private child maintenance agreement or through the Child Maintenance Service.

Private child maintenance agreements are arrangements made between parents without the involvement of the Child Maintenance Service. These agreements can be verbal or in writing, and can cover any amount of money or benefits that the non-resident parent agrees to pay to support their child.

However, it is important to note that private child maintenance agreements can affect the benefits that both parents receive. This is because child maintenance payments made through the Child Maintenance Service are disregarded when calculating certain benefits.

For example, if a parent is receiving income support or Jobseeker`s Allowance, any child maintenance payments they receive from the non-resident parent will reduce the amount of benefit they are entitled to. This is known as a `benefit reduction`.

If the child maintenance is being paid through a private agreement, it will still be taken into account when calculating benefits. This means that the parent receiving the benefits may see a reduction in their income support or Jobseeker`s Allowance, depending on the amount of child maintenance they are receiving.

Likewise, the non-resident parent may see a reduction in their benefits if they are receiving any. For example, if they are receiving Universal Credit, any child maintenance payments they make through a private agreement will reduce their Universal Credit entitlement.

It is also worth noting that private child maintenance agreements may not be as reliable as payments made through the Child Maintenance Service. This is because there is no enforcement mechanism in place to ensure that the non-resident parent continues to make the agreed payments. This can lead to financial instability for the parent receiving the payments and their children.

In summary, private child maintenance agreements can affect the benefits that both parents receive. If you are receiving benefits and have a private agreement in place, it is important to report the payments to the relevant authorities to ensure that your benefits are calculated correctly. If you are considering entering into a private agreement, it is important to seek legal advice and consider the potential impact on benefits.