7.6. How does the agency work out my (employed) income? (2001-10-31)

The legislation requires the agency to assess average income in the relevant week. That is, more or less, when they send you the forms. Typically they consider the preceding 5 week's or 2 month's payslips.

Where they believe that this does not give a representative figure (which they should if you tell them so with supporting reasons) they should take account of varying overtime, sick pay and so on to arrive at a more representative figure.

Where payslips show "earnings to date", the agency may use this figure to get a weekly average, especially if this would be more than the average of the last five weeks (or two months).

7.7. What if my working patterns are changing? (2001-10-31)

Maybe you are coming off shift work or maybe you have taken a new job. The agency should take account of such future income patterns if you tell them.

You might like to quote the Child Support (Maintenance and Special Cases) Regulations 1992, Schedule 1, 2(4):

"Where a calculation would, but for this subparagraph, produce an amount which, in the opinion of the child support officer, does not accurately reflect the normal amount of the earnings of the person in question, such earnings. or any part of them, shall be calculated by reference to such other period as may, in the particular case, enable the normal weekly earnings of that person to be determined more accurately and for this purpose the child support officer shall have regard to:
a) the earnings received, or due to be received, from any employment in which the person is engaged, has been engaged or is due to be engaged.
b) the duration and pattern, or the expected duration and pattern, of any employment of that person"

7.8. Are pensions taken as income? (2001-10-31)

Yes but the first UKP10 of any war disablement or war widow's pension is disregarded.

Perhaps the whole of a war disability pension should be disregarded. In May 98 someone was going to appeal on this (see NACSA News 1998, Issue 2, page 6).

7.9. Is Disability Living Allowance taken as income? (2001-10-31)

No. They do not include the following benefits when we work out income after deductions:
* Child Benefit;
* Attendance Allowance;
* Disability Living Allowance;
* Social Fund Payments;
* Housing Benefit; and
* Council Tax Benefit.

If a relevant child of the family is in receipt of DLA the exempt income should be increased to allow for the additional costs of a disabled child. This is called a disabled child premium and is about £30.

7.10. Is the NRP's partner's income taken into account? (2001-10-31)

Yes and no.

If the AP and partner have had or adopted children together then the exempt income is reduced if the partner has adequate income. The notional costs associated with the child(ren) is halved. The partner's income *is* taken into account when calculating the "Protected Income". So, unless you have had child(ren) with your new partner or the new family has an income level similar to Income Support rates then your new partner's income will have no effect on your assessment.

The partner's income may also be taken into account if the PWC has applied for certain "Departures". See the section on Departures.

7.11. Is the PWC's partner's income taken into account? (2001-10-31)

No, except in some Departures cases.

7.12. Can the CSA legitimately demand new partners details? (2001-10-31)

One user of the newsgroup informed the CSA that their new partner had warned them that any release of her personal details direct to the CSA on her behalf would be a "Tort" against her person (she said just that). He told the CSA that he would tell them what little he knew if they gave him immunity against any Court action she might take - or they could ask her directly. The CSA agreed to disregard her details. In short the CSA have NO right to obtain by duress your new partners details and you have no legal obligation to give them if by doing so you would breach the Law.

But if the new partner's income isn't given the CSA is likely to make a Category 'B' IMA - which means that the partner will be legally assumed to be able to half-maintain any (joint) child(ren) they have. The Protected Income calculation won't be done. That can mean a higher assessment if the new family income is around Income Support levels.

If a Departure application is being considered the new partner's details may be required. If they are not provided the agency may have to make assumptions. They have made assumptions about new partner's incomes which are intended as a punishment - that is unrealistically high. They are not entitled to make punitive assumptions like this.

7.13. Is house insurance allowed? (2001-11-01)

Allowable housing costs do not include any amount paid for property or contents insurance. Mortgage protection policies, to cover for sickness, unemployment and disability can be allowed, see 7.14 below.

7.14. Is mortgage protection insurance allowed? (2001-11-01)

Payments under a mortgage protection policy designed to help pay a mortgage or loan secured on the home, where the insured becomes unemployed or sick or disabled, should be included in the calculation of Exempt Income.

Decision Maker's Guide paragraph 5394 &
The Child Support (Maintenance Assessments and Special Cases) Regulations 1992 (Schedule 3 paragraph 3(4))

7.15. Are water charges allowed? (2001-10-31)

No - they're assumed to be covered in the adult Income Support allowance

7.16. Is Council Tax allowed? (2001-10-31)

Yes and no. In the "net income" calculation Council Tax is assumed to be covered in the adult Income Support allowance but in the "protected income" calculation it is allowed.

Unless your household income level is similar to Income Support levels then it will have no effect on your assessment.

7.17. Are there any restrictions on the size of mortgage? (2001-10-31)

This is from the information leaflet "Your child maintenance assessment and help in meeting exceptional circumstances" (CSA 2024, June 1999):

Owner-Occupiers

If they have a mortgage and it is:
* a repayment mortgage, we can include the repayment amount as housing costs;
* an endowment mortgage we can include an amount for mortgage interest as housing costs
* linked to a PEP (personal equity plan) or an endowment policy and it is for:
* less than £60,000, we can include the full amount they pay for the plan or policy as housing costs;
* more than £60,000, we can only include the amount which would be enough to pay off the original loan as housing costs;
or
* linked to a personal pension plan, we can only include 25% of the amount they pay for the plan as housing costs.

There is also a restriction on the total mortgage payments of £80 per week or half of net income, whichever is greater.

These restrictions cannot be applied if:
* there are children in the household
* the costs have existed for 52 weeks
* the costs have exceeded these limits because of an increase in rent or mortgage interest rates
* the costs have been incurred because capital is tied up in the former family home and the ex-partner lives still live in it.

7.18. Are voluntary extra mortgage payments allowed? (1999-07-28)

No. Housing costs "shall not include any payments in excess of those required ... under a mortgage".

If the mortgage period were reduced then the payments would be higher and should be allowed. We do not know if this has been tested yet.

This is the Child Support (Maintenance Assessmnents and Special Cases) Regulations 1992 Schedule 3, 6(a) as amended by the Child Support and Income Support (Amendment) Regulations 1995.

7.19. Court Maintenance Orders - do the CSA take them into account? (1999-07-28)

Any spousal maintenance order from AP to PWC should be treated as part of the PWC's income by the CSA. But if they are on benefits they will be deemed to have no income.

A court may reduce such an order because the "PWC as carer" part of the assessment is for the PWC.

If the AP is paying maintenance through the courts for the benefit of a child other than the one(s) the CSA is assessing maintenance for then that maintenance shall be deducted pound for pound from the AP's net income at the protected income stage.

7.20. Capital - does the CSA take it into account? (2001-10-31)

No. But they do take "interest, dividends or other income from capital" on as income.

The legislation does provide a skeleton for further legislation to allow capital to be treated as income (Child Support Act 1991, Schedule 1, Paragraph 9f). No such further legislation has been identified.

The departures regulations also allow wide discretion. No case has been reported in the newsgroup where the CSA has used departures legislation to take capital into account.

7.21. Working Family Tax Credit - does the CSA take it into account? (2001-10-31)

It can treated as part of the NRP's income but not of the PWC's. The rule is - if the NRP earns more than the NRP's partner, then the whole amount is treated as NRP's income; if they earn the same, then half of it is; while of the NRP's partner earns more, none of it is.

7.22. Redundancy payment - does the CSA take it into account? (2001-10-31)

If the redundancy money is tax exempt then it should not be included in earnings; the CSA should ignore it. This means that anything over UKP 30,000 will be taken into account. (Payment in Lieu of Notice - PILON - counts as income).

The legislative basis quoted is Child Support (MASC) regulations, Schedule 1 paragraph 1(2).

7.23. What if I reduce my income? (2001-10-31)

The legislation empowers the CSA to assume a higher income if you deprive yourself of income "with a view to reducing the amount of your assessable income".

In practice they seem never to have done this although it has been done by an ITS hearing.