We therefore asked the Department about the affordability of payments. The Department explained that its calculations were based on historical income, so “affordability is part of the calculation in that respect”. But it recognised that “the problem then comes when someone’s circumstances change and they no longer have the level of income that was assessed”.61 It explained that, while the amount due going forward may then have been reduced to take into account of the lower income, arrears may...

We therefore asked the Department about the affordability of payments. The Department explained that its calculations were based on historical income, so “affordability is part of the calculation in that respect”. But it recognised that “the problem then comes when someone’s circumstances change and they no longer have the level of income that was assessed”.61 It explained that, while the amount due going forward may then have been reduced to take into account of the lower income, arrears may have built up that they cannot pay. The Department told us that, in response, “we just have to take a monitoring approach and keep under review the exte Type: conclusion | Number: 28 | Response status: not_addressed Government response: 7. PAC conclusion: The Department’s ability to collect child maintenance is limited by the affordability of payments and the system risks creating a poverty trap for some Paying Parents. 7. PAC recommendation: As part of its Treasury Minute response, the Departme