About 450,000 separated parents in Great Britain use the Child Maintenance Service’s Direct Pay option. The CMS works out how much is owed, and then parents pay each other directly, with no fees at all.
The government wants to change that. Under plans going ahead at DWP, Direct Pay would be scrapped, possibly from 2027, and all payments would go through the CMS, with a 2% charge. Ministers say it will make maintenance more reliable. Critics say it penalises parents who already pay on time. Here’s what’s proposed and what it could mean for you.
How it works now
If you use the Child Maintenance Service, there are two options today:
| Direct Pay | Collect and Pay | |
|---|---|---|
| How it works | CMS calculates; parents pay each other | CMS collects from the paying parent and passes it on |
| Fees | None | Paying parent pays an extra 20%; receiving parent loses 4% |
| How many use it | about 450,000 arrangements (55%) | about 350,000 arrangements (43%) |
What’s being proposed
- Direct Pay would be scrapped, possibly by 2027.
- All maintenance would go through the CMS in a single collection service.
- A 2% charge would apply. DWP says that for a paying parent who pays on time, this would be “a cut from a 20 per cent charge to 2 per cent.”
- For parents now on Direct Pay, though, it means going from no fee to a fee.
Minister Lilian Greenwood said a single service “would provide greater transparency, improve compliance and better support children.”
Why the government wants to change it
Figures reported alongside the plans suggest Direct Pay doesn’t always work. Only 60% of receiving parents on Direct Pay said they got all the maintenance owed, and just 40% said it always arrived on time.
There’s also a safety concern. 71% of receiving parents and 51% of paying parents using Direct Pay reported domestic abuse from the other parent. A single service run by the CMS would mean parents don’t need to share bank details or deal with each other about payments.
Not everyone agrees
- Gingerbread, the single-parent charity, backed the plans as a “major shake-up” that could help families who are let down by unreliable payments.
- Both Parents Matter called the proposals “deeply flawed,” arguing that parents who already pay reliably shouldn’t be charged.
- A House of Lords committee report last year also questioned the case for removing Direct Pay.
When would it happen?
There’s no firm start date yet. DWP has said it expects to press ahead, with 2027 mentioned as a possible date for ending Direct Pay. Until then, existing rules stay in place. If you’re on Direct Pay now, nothing changes yet.
What parents can do now
- Keep paying as normal under your current arrangement.
- Keep records of every payment made or received. If payments are missed under Direct Pay, you can already ask the CMS to switch you to Collect and Pay.
- If you’re affected by domestic abuse, you don’t have to share contact or bank details with the other parent. Tell the CMS, and it can arrange payments without that.
- Watch for official updates on GOV.UK. Any change to fees would need new regulations.
Sources: Brit Brief (October 23, 2026), House of Commons Library, Child maintenance fees and GOV.UK, Child Maintenance Service.
Maria is a dedicated news writer covering the latest UK updates on DWP, PIP, State Pension Triple Lock, Child Benefit, Universal Credit, and driving licence regulations. She focuses on explaining government announcements, benefit eligibility, payment changes, pension increases, and new regulations in a clear and easy-to-understand way.