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Children: Maintenance

Volume 478: debated on Tuesday 8 July 2008

To ask the Secretary of State for Work and Pensions what measures are in place to prevent absent parents from investing their income with a pension fund as a means of avoiding Child Support Agency payments. (216795)

Very little evidence exists to suggest that non-resident parents are exploiting the current rules on pension contributions in a way which unreasonably reduces their child support liability.

When such cases arise, the Child Support Agency can adjust liabilities in specified exceptional circumstances where the usual rules may not operate fairly. For example, in either child support scheme, it is possible to adjust the child support liability where the net income of the non-resident parent used in the calculation is inconsistent with their lifestyle or unreasonably diverted. In such cases, this action will be considered by the Agency following an application by the parent with care.