Premature conversion to the new CSA scheme - A loophole that may thwart government policy
by Barry Pearson
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Case study 3: High housing cost

These examples are based on a non-resident parent earning £1000 net per week, with £500 per week housing costs. The cases are for 2 and 3 children respectively.

The background to cases involving high housing costs is described further in Appendix B. Briefly, while housing costs reduce the assessment under the current scheme, they don't change the calculation under the new scheme. These situations are often used as one of the justifications for the phasing-in principle.

The problem with these cases is that housing costs can be hard to adjust, especially with just a few months notice. In the case of 3 children, the difference between the intended conversion and the premature conversion averages between £35 and £40 per week.

(Once again, these amounts are the extra amounts arising from premature conversion - the actual child support liabilities are much higher).

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Page last updated: 12 December, 2003 © Copyright Barry Pearson 2003