Section 32: Power to accept part payment of arrears in full and final satisfaction
331.This section inserts new section 41D into the Child Support Act 1991 which enables the Commission to accept partial payments of maintenance arrears from a non-resident parent in final settlement of the whole arrears.
332.Subsection (2) provides regulation-making power to the Secretary of State with regard to the Commission exercising its power to accept part payment in satisfaction of the liability. Subsection (3) provides that the regulations must provide that the Commission cannot accept partial payment in full and final settlement without the consent stipulated in subsections (5) to (7), unless one of the conditions in subsection (4) is met.
333.The conditions set out in subsection (4) relate to arrears which may be retained by the Commission because a person with care was in receipt of prescribed benefits at the time the arrears accrued. Where the person with care is in receipt of prescribed benefits they are paid their full benefit entitlement, but the Commission may retain child maintenance payments to offset the benefit expenditure.
334.Subsection (4)(a) sets out that the Commission would not require consent where all of the arrears may be retained by the Commission if recovered.
335.Subsection (4)(b) relates to arrears, some of which are owed to the person with care and some of which may be retained by the Commission because the person with care was in receipt of prescribed benefits for part of the time when the arrears were accruing. In this situation the Commission would not require consent if the amount of arrears which would be due to the person with care is equal to or less than the payment it has agreed to accept as full and final settlement.
336.Subsection (5) stipulates that written consent from the person with care is required unless the application for a maintenance calculation is made by a child of 12 or over in Scotland.
337.Subsections (6) and (7) set out that where an application for a maintenance calculation is made by a child in Scotland, their written consent is required. The person with care’s consent is also required where:
the maintenance calculation takes account of any other qualifying children of the non-resident parent who are in the care of the same person with care as the child who made the application; or,
a maintenance calculation is made following an application by a child in Scotland and the person with care subsequently applies to the Commission for the child support maintenance to be collected and/or enforced.
