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Corrected the child maintenance planning page (`docs/book/programs/gov/cms/child-maintenance.md`): the Child Maintenance Service default rate for one child is £39 (SI 2012/2677 reg. 49), shared-care fractions are averaged across the children in each carer's care, the further £7 reduction for 175 or more nights is per child with a £7 floor, shared care of 52 or more nights reduces the flat rate to nil where it applies because of a prescribed benefit, and the model reproduces UC's treatment of child maintenance but not the paying parent's combined marginal rates described by the Centre for Social Justice.
26 changes: 18 additions & 8 deletions docs/book/programs/gov/cms/child-maintenance.md
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Expand Up @@ -41,10 +41,12 @@ For **child** maintenance that is the right answer for UC:
- **Paying parent:** maintenance paid is not deducted, so the paying parent is
means-tested on their full earnings.

This asymmetry is the work-incentive problem described by the Centre for Social
Justice in [*The Hidden Parent Poverty Trap: Child Maintenance and Universal
Credit*][csj]. The model reproduces it, because neither child maintenance
variable reaches UC.
The paying-parent side of this asymmetry is the work-incentive problem
described by the Centre for Social Justice in [*The Hidden Parent Poverty Trap:
Child Maintenance and Universal Credit*][csj]. The model reproduces UC's side
of it, because neither child maintenance variable reaches UC. It does not
reproduce the combined marginal rates, because `maintenance_expenses` is a
fixed input that does not rise with earnings.

## Scope

Expand All @@ -71,13 +73,21 @@ parent's gross weekly income
| £100.01 to £199.99 | Reduced | Formula |
| £200 to £3,000 | Basic | 12% / 16% / 19% of income up to £800 for 1 / 2 / 3+ children, then 9% / 12% / 15% of income from £800 to £3,000 |
| Above £3,000 | Basic, capped | Income above £3,000 is ignored; the receiving parent can apply to the courts |
| Not enough information | Default | £38 / £51 / £64 |
| Not enough information | Default | £39 / £51 / £64 ([SI 2012/2677 reg. 49](https://www.legislation.gov.uk/uksi/2012/2677/regulation/49); GOV.UK's guide shows £38 for one child) |

Then:

- **Shared care:** the amount falls by 1/7 for 52 to 103 nights a year, 2/7
for 104 to 155, 3/7 for 156 to 174, and by half plus £7 a week for 175 or
more.
- **Shared care:** for the basic and reduced rates, the amount payable to
each carer falls by 1/7 where a child spends 52 to 103 nights a year with
the paying parent, 2/7 for 104 to 155, 3/7 for 156 to 174 and 1/2 for 175
or more; where one carer looks after more than one qualifying child, the
fractions for those children are added and divided by the number of them
(para. 7(5)). It then falls
by a further £7 a week for each child with 175 or more nights, but not
below £7 a week in total (Sch. 1 para. 7). Where the flat rate applies
because the paying parent or their partner gets a prescribed benefit
(para. 4(1)(b) or (c) or 4(2)), 52 or more nights with a child makes the
amount payable to that child's carer nil (para. 8).
- **Other children:** an adjustment applies for other children living with
the paying parent.

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