A major change to child maintenance regulations could see hundreds of thousands of parents see a change in the funds they receive from former partners.

Current figures show that 440,000 parents use the no-fee direct-pay option offered by the Child Maintenance Service (CMS), which allows payments to be made directly from the paying parent to the receiving parent.

In addition, 310,000 parents choose the collect and pay service, where the CMS collects and transfers payments. This service imposes a 20% fee on the paying parent and a 4% charge on the receiving parent.

However, as part of a potential new reform, all parents will be required to use a new collect and pay service from 2027/28, which will impose a 2% fee on both the paying and receiving parents. This change is subject to ministerial approval before it can be introduced.

Child maintenance refers to an ongoing payment made by one parent, who does not live with the child, to cover the daily costs associated with raising that child, reports the Mirror.

Such arrangements are typically established when parents separate and have a child under 16, or under 20 if the child is still in full-time education. The exact amount of child maintenance due can be determined in various ways.

The amount of child maintenance can be agreed on by the two parents themselves or through the CMS. The final decision is influenced by several factors, including the number of children involved, the income of the non-residential parent, and the frequency of their visits to the child.

If your partner refuses to pay, the Child Maintenance Service (CMS) has the power to take the matter to court. Furthermore, child maintenance payments do not affect any benefits you may be entitled to, nor are they subject to tax.

Eligibility to apply extends to those living in the UK who are either parents of the child or grandparents or guardians primarily responsible for the child’s care.

Help with childcare costs

From September 2025, working parents of young children will qualify for 30 hours of free childcare per week.

To be eligible for this benefit, your child must be between nine months and two years old, and you should be earning an average equivalent to the national minimum wage for 16 hours a week, but less than £100,000 annually.

This applies to both parents if you’re part of a couple. All parents of three and four year olds are automatically entitled to 15 hours of free childcare per week, regardless of their employment status.

Working parents with children within these age brackets can claim the full 30 hours if they meet the earnings threshold. Additionally, there is the tax-free childcare scheme, an online account specifically designed for childcare payments.

For every £8 you contribute, the Government automatically adds £2. If you meet the eligibility criteria, you could receive up to £500 every three months for each of your children.