“If his Department will review the adequacy of the treatment of redundancy payments by the Child Maintenance Service.”
Asked by
Zöe Franklin
Answering Minister
the Secretary of State for Work and Pensions
Answer from Hansard
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
Redundancy payments are not taken into account in the standard maintenance calculation, which is based on gross taxable income from earnings, although the capital may be considered through an asset variation if the paying parent holds the income in a bank or savings account and the amount is at least £31,250. The Child Maintenance Service may also take the redundancy payment into account when considering any maintenance arrears.