Context
A constituent's case where a successful tribunal appeal led to arrears being awarded but no maintenance payment due to significant redundancy and asset holdings highlights the issue.
Question
My constituent successfully appealed at tribunal, with both the judge and Child Maintenance Service agreeing that declared income did not reflect true earnings. Despite receiving substantial redundancy payments and holding significant assets including property and pensions, no maintenance is being paid. This exposes a gap in how redundancy payments are treated by CMS. Will the Minister urgently review this?
Answer from Andrew Western
Part of the challenge is that legislation requires using earnings information provided by HMRC, and since redundancy payments up to £80,000 are tax-exempt, they do not show up. I will share concerns raised with Baroness Sherlock.
Not addressed: Urgent review requested but only stated as sharing concerns without committing to a timeline or action
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