If Government Wants to Stop Fraud, Why Is Child Maintenance Still Based on Trust?

Deanna Newell
2 days ago
3 min read

By Deanna Newell

Founder - DN Family Law

When politicians speak about protecting taxpayers’ money, they rightly call for stronger action against fraud and abuse.

We hear billions of pounds are lost through fraud each year. We hear promises of tougher enforcement, better investigations and greater accountability.

But there is one area that receives far less attention.

The Child Maintenance Service.

Every day, thousands of children’s financial futures depend on a system that often relies heavily on information reported through HMRC records, even where a parent’s financial affairs may be more complex.

For many employed parents, this works perfectly well.

For others, particularly some company directors, shareholders and self-employed individuals, the picture can be far more complicated.

The £12,570 Question

How can a parent declare an income close to the personal tax allowance while continuing to own businesses, companies, investment properties or other assets?

There may be perfectly legitimate explanations in many cases.

However, where there is evidence that declared income does not reflect a parent’s wider financial resources, shouldn’t the system have the tools to assess those circumstances properly?

Children deserve confidence that maintenance assessments reflect a parent’s genuine financial capacity, not simply one reported income figure.

A Different Lifestyle?

Social media often presents images of expensive holidays, luxury cars and high-value lifestyles.

These images alone prove nothing. However, when a lifestyle appears significantly different from declared income, shouldn’t that prompt appropriate enquiries where relevant to a child maintenance assessment?

A fair system should be capable of distinguishing between genuine financial hardship and cases where further investigation is justified.

The Cost of Getting It Wrong

When child maintenance is set too low because complex finances are not fully understood, it is children who lose out.

The receiving parent often carries the financial burden alone.

Taxpayers may also shoulder increased costs through additional benefits and public support where children do not receive the financial support they should.

Fair assessments benefit everyone.

We Need a Three-Tier Family Justice Triage System

This is why I am campaigning for a Mandatory Three-Tier Family Justice Triage System.

Not every family needs the same level of assessment.

Tier 1 – Standard Assessment

Straightforward cases with clear financial information should continue to be processed quickly.

Tier 2 – Enhanced Financial and Family Assessment

Where there are indicators of complexity, such as self-employment, company ownership, dividends, retained profits or significant differences between declared income and wider financial circumstances, there should be proportionate additional assessment.

Tier 3 – Specialist Court and Multi-Agency Review

The most complex cases involving safeguarding concerns, significant financial disputes or ongoing court proceedings should receive coordinated oversight from the relevant agencies.

This is not about assuming wrongdoing.

It is about ensuring the right cases receive the right level of scrutiny.

Following the Money Trail

Government rightly expects transparency when public money is involved.

Children deserve that same commitment to transparency.

A modern Child Maintenance Service should have the ability to consider the wider financial picture where appropriate and where supported by evidence.

It should ask;

“What is this parent’s genuine financial capacity to support their child?”

And not simply;

“What salary has been declared?”

Time for Evidence-Based Reform

The Government has embraced pilot programmes in other areas of public policy before introducing national change. Family justice deserves the same approach.

Pilot a Mandatory Three-Tier Family Justice Triage System.

Test whether earlier identification of complex financial cases improves fairness.

Evaluate the evidence.

Reduce unnecessary disputes.

Protect taxpayers’ money.

Most importantly, ensure children receive the financial support they deserve.

Children cannot wait while outdated systems struggle to keep pace with modern financial arrangements.

It is time for reform.

It is time for financial transparency.

It is time to put children first.

Deanna Newell | Founder - DN Family Law

www.dnfamilylaw.co.uk