Include Child Maintenance as Income in Universal Credit and Means-Tested Benefit

Summary

Child maintenance payment is not counted as income for Universal Credit, allowing some to receive maintenance payments and benefits. At the same time, paying parents must meet their obligations even where those payments reduce their overall household income below the Universal Credit threshold. We believe this creates an imbalance between households. Receiving parents may access both maintenance and benefits, while paying parents, including those with for example new children, high childcare costs, or a partner on maternity leave, can be left with little to live on and no entitlement to Universal Credit. We ask the Government to review this policy and ensure fair and consistent treatment, either by counting child maintenance as income for means-tested benefits or by allowing paying parents whose income falls below thresholds after maintenance is paid to access support.

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