Fathers United. Rights Respected. Every Dad Matters.
For many fathers, child maintenance is already a significant financial responsibility. When a case moves from Direct Pay to Collect and Pay, the cost can increase sharply.
The current rules are straightforward:
- 20% is added to the paying parent’s child maintenance liability.
- 4% is deducted from the amount paid to the receiving parent.
- Direct Pay currently carries no collection fee.
There are also proposed reforms. But they are not law today. The Government’s suggested 2% model, the proposed abolition of Direct Pay and the planned changes to enforcement require legislation. Implementation is targeted for 2027–28, subject to Parliament passing the necessary measures.
This article explains the position as at 19 September 2026, using official guidance and current policy information.
Important: This is general advocacy and educational information, not legal advice. It focuses on England and Wales. Scotland and Northern Ireland have different legal and administrative arrangements. Obtain advice relevant to your jurisdiction and circumstances.
The current CMS payment options
The Child Maintenance Service (CMS) currently provides two payment routes.
Direct Pay
Under Direct Pay:
- The CMS calculates the amount due.
- The paying parent pays the receiving parent directly.
- There is currently no CMS collection fee.
- Both parents should keep clear records of payments.
Direct Pay can work where payments are made reliably, communication is manageable and there are no safety concerns. It can avoid unnecessary charges and keep more money within the family budget.
However, Direct Pay is not suitable for every family. If payments are missed or underpaid, the receiving parent can report this to the CMS and ask for the case to move to Collect and Pay.
Collect and Pay
Under Collect and Pay:
- The CMS collects the payment.
- The CMS transfers money to the receiving parent.
- The paying parent pays an additional 20%.
- The receiving parent receives 4% less.
The current GOV.UK payment guidance confirms that, once a case is on Collect and Pay, the collection fees cannot be avoided by simply paying the other parent directly.
The numbers: what £400 per month really means
The clearest way to understand the system is to compare the same £400 monthly maintenance assessment.
| Payment route | Paying parent pays | Receiving parent receives | Collection fees |
|---|---|---|---|
| Direct Pay | £400 | £400 | £0 |
| Collect and Pay | £480 | £384 | £80 added to payer; £16 deducted from recipient |
Under Collect and Pay, the paying parent’s monthly liability becomes:
£400 + 20% (£80) = £480
The receiving parent receives:
£400 − 4% (£16) = £384
The combined difference between what the paying parent pays and what the receiving parent receives is therefore £96 per month.
Over a year, the comparison looks like this:
| Payment route | Paying parent pays annually | Receiving parent receives annually |
|---|---|---|
| Direct Pay | £4,800 | £4,800 |
| Collect and Pay | £5,760 | £4,608 |
For the paying parent, the current Collect and Pay charge adds £960 per year to a £400 monthly assessment.
That is not a minor administrative adjustment. It can affect rent, travel costs, household bills and the ability to maintain a stable relationship with children.
Why the 20% charge matters to fathers
The charge applies to the payment liability itself. It is not a one-off penalty.
For example:
- A £300 monthly assessment becomes £360 under Collect and Pay.
- A £500 monthly assessment becomes £600.
- A £700 monthly assessment becomes £840.
This means the practical affordability of a CMS arrangement can change significantly when a case moves between payment routes.
The policy question is not whether children should be financially supported. They should. The question is whether a charge of this size helps families receive consistent support, or whether it can make compliance harder for parents whose budgets are already under pressure.
A fair system must protect children while also making realistic, transparent and proportionate arrangements for parents.
When Direct Pay may be practical
Direct Pay may be a sensible option where it is safe and workable.
It may be appropriate where:
- The paying parent has a reliable payment history.
- Both parents can follow a written payment schedule.
- There is no intimidation, harassment or financial control.
- Bank payments can be made without unnecessary personal contact.
- Both parents are willing to keep accurate records.
- Changes in income or circumstances can be reported promptly.
Direct Pay does not mean informal or unrecorded payments. A father using Direct Pay should:
- Pay by bank transfer where possible.
- Use a clear reference, such as “CMS March 2026”.
- Keep bank statements and payment confirmations.
- Follow the CMS payment plan.
- Report changes in income or circumstances.
- Avoid cash payments unless there is a clear, reliable record.
The CMS states that missed or incomplete payments can be reported, and that the payment method may then change to Collect and Pay.
When Collect and Pay becomes necessary
Collect and Pay may become necessary when payments are not made in full and on time, or where direct arrangements are not safe or workable.
It can also provide an important separation between parents. The CMS explains that it can collect payments from earnings, bank accounts, benefits or pensions, meaning the parents do not need to exchange payment information or contact each other directly.
This matters where communication has broken down or where contact creates distress or risk.
The system should not be treated as a personal punishment. It is an administrative payment route. Fathers should focus on the evidence:
- What amount did the CMS assess?
- What date was payment due?
- What amount was actually paid?
- Was the payment made to the correct account?
- Has the CMS recorded the payment accurately?
- Has the father reported a change in income?
If an assessment is wrong, the correct response is to use the CMS process rather than stop paying without explanation.
What the 18 September 2026 enforcement update means
The DWP enforcement update of 18 September 2026 has renewed attention on stronger and faster action where child maintenance is unpaid.
One developing mechanism is the proposed Administrative Liability Order.
At a systems level, the purpose is simple: a liability order can formally recognise child maintenance arrears and allow enforcement to progress. The proposed administrative model would enable the CMS to establish liability without relying on the same court application route currently used for court-based liability orders.
That could reduce delay and make enforcement more efficient.
But this distinction is essential:
Administrative Liability Orders are a developing enforcement mechanism. They are not a reason to assume that new powers are already operating in every CMS case.
The current GOV.UK guidance on liability orders describes a liability order as a court order. The Administrative Liability Order framework depends on legislation, regulations and commencement arrangements.
In other words, a policy announcement or enforcement update does not automatically change the legal position in an individual case.
The proposed 2% model is not law
The Government has proposed a new approach intended to replace the current fee structure.
The proposal is generally described as:
- 2% added to the liability of a compliant paying parent.
- 2% deducted from the amount received by the receiving parent.
- 20% retained for a non-compliant paying parent.
- Direct Pay abolished, with payments managed through a single CMS service.
The intended implementation period is 2027–28.
However, the proposal requires legislation. As at 19 September 2026:
- Direct Pay still exists.
- Direct Pay still carries no collection fee.
- Collect and Pay still adds 20% to the paying parent’s liability.
- Collect and Pay still deducts 4% from the receiving parent’s payment.
- The proposed 2% model is not currently binding law.
- The abolition of Direct Pay has not yet taken legal effect.
This is vital. Fathers should not be told that the new fees already apply, or that Direct Pay has already disappeared.
What to do if you think the CMS has made a mistake
If the calculation, payment record or decision appears wrong:
- Read the CMS decision letter and payment plan carefully.
- Compare the assessed amount with bank records.
- Report missing or incorrect payments promptly.
- Ask for a mandatory reconsideration within 30 days of the decision.
- If necessary, appeal after the mandatory reconsideration outcome.
The GOV.UK complaints and appeals guidance explains that an appeal may be made to the Social Security and Child Support Tribunal after mandatory reconsideration.
Keep every letter, screenshot, bank statement and reference number. Clear records protect fathers from confusion and help identify whether the problem is a calculation issue, a payment allocation issue or an enforcement issue.
For wider preparation and documentation guidance, see our step-by-step guide to representing yourself in a UK family court.
The position in one minute
Today:
- Direct Pay: no collection fee.
- Collect and Pay: 20% added to the paying parent’s liability.
- Collect and Pay: 4% deducted from the receiving parent’s payment.
- Administrative Liability Orders: developing, not something to assume is already active.
- Proposed 2% and 20% reforms: not law.
- Proposed abolition of Direct Pay: targeted for 2027–28, subject to legislation.
The message for fathers is clear: stay informed, keep records and do not rely on headlines alone.
We believe child maintenance should be collected effectively, transferred accurately and administered fairly. Fathers must be able to meet their responsibilities without being trapped by unclear processes, disproportionate charges or avoidable administrative errors.
Join us in championing transparent systems. Join us in empowering fathers with accurate information. Stand firmly with us for equal respect and practical support.
Fathers United. Rights Respected.
Every Dad Matters.