Valid from 08/10/2012

32Power to accept part payment of arrears in full and final satisfactionE+W+S

After section 41C of the Child Support Act 1991 (inserted by section 31 of this Act) insert—

“41DPower to accept part payment of arrears in full and final satisfaction

(1)The [F1Secretary of State] may, in relation to any arrears of child support maintenance, accept payment of part in satisfaction of liability for the whole.

(2)The Secretary of State must by regulations make provision with respect to the exercise of the power under subsection (1).

(3)The regulations must provide that unless one of the conditions in subsection (4) is satisfied the [F1Secretary of State] may not exercise the power under subsection (1) without the appropriate consent.

(4)The conditions are—

(a)that the [F2Secretary of State] would be entitled to retain the whole of the arrears under section 41(2) if [F3Secretary of State] recovered them;

(b)that the [F2Secretary of State] would be entitled to retain part of the arrears under section 41(2) if [F3Secretary of State] recovered them, and the part of the arrears that the [F2Secretary of State] would not be entitled to retain is equal to or less than the payment accepted under subsection (1).

(5)Unless the maintenance calculation was made under section 7, the appropriate consent is the written consent of the person with care with respect to whom the maintenance calculation was made.

(6)If the maintenance calculation was made under section 7, the appropriate consent is—

(a)the written consent of the child who made the application under section 7(1), and

(b)if subsection (7) applies, the written consent of the person with care of that child.

(7)This subsection applies if—

(a)the maintenance calculation was made under section 7(2), or

(b)the Secretary of State has made arrangements under section 7(3) on the application of the person with care.”

Valid from 08/10/2012

33Power to write off arrearsE+W+S

After section 41D of the Child Support Act 1991 (c. 48) (inserted by section 32 of this Act) insert—

“41EPower to write off arrears

(1)The [F4Secretary of State] may extinguish liability in respect of arrears of child support maintenance if it appears to [F5the Secretary of State]—

(a)that the circumstances of the case are of a description specified in regulations made by the Secretary of State, and

(b)that it would be unfair or otherwise inappropriate to enforce liability in respect of the arrears.

(2)The Secretary of State may by regulations make provision with respect to the exercise of the power under subsection (1).”

Prospective

34Transfer of arrearsE+W+S

After section 49 of the Child Support Act 1991 insert—

“49ATransfer of arrears

(1)The Secretary of State may by regulations make provision enabling the [F6Secretary of State] in prescribed circumstances to enter into arrangements (“transfer arrangements”) under which liability in respect of arrears of child support maintenance becomes debt due to the person with whom the arrangements are entered into (“the transferee”).

(2)Liability which is the subject of transfer arrangements—

(a)ceases to be liability in relation to which the [F7Secretary of State's] functions with respect to collection and enforcement are exercisable, and

(b)becomes debt in which only the transferee has an interest.

(3)Regulations under subsection (1) must provide that unless one of the conditions in subsection (4) is satisfied the [F8Secretary of State] may not enter into transfer arrangements in relation to arrears of child support maintenance without the appropriate consent.

(4)The conditions are—

(a)that the [F9Secretary of State] would be entitled to retain the whole of the arrears under section 41(2) if [F10the Secretary of State] recovered them;

(b)that the [F9Secretary of State] would be entitled to retain part of the arrears under section 41(2) if [F10the Secretary of State] recovered them, and the part of the arrears that the [F9Secretary of State] would not be entitled to retain is equal to or less than the transfer payment.

(5)In subsection (4)(b), “transfer payment” means—

(a)the payment that the [F11Secretary of State] would receive from the transferee on the arrangements taking effect, and

(b)such other payments under the transfer arrangements as may be prescribed.

(6)Unless the maintenance calculation was made under section 7, the appropriate consent is the written consent of the person with care with respect to whom the maintenance calculation was made.

(7)If the maintenance calculation was made under section 7, the appropriate consent is—

(a)the written consent of the child who made the application under section 7(1), and

(b)if subsection (8) applies, the written consent of the person with care of that child.

(8)This subsection applies if—

(a)the maintenance calculation was made under section 7(2), or

(b)the Secretary of State has made arrangements under section 7(3) on the application of the person with care.

(9)Regulations under subsection (1) may, in particular—

(a)specify when arrears of child support maintenance may be the subject of transfer arrangements;

(b)specify the descriptions of person with whom transfer arrangements may be entered into;

(c)specify terms and conditions which transfer arrangements must include;

(d)provide that a payment made to the [F11Secretary of State] under transfer arrangements may be treated for prescribed purposes as if it were a payment of child support maintenance.

(10)Regulations under subsection (1) may include—

(a)provision with respect to the recovery of debt to which a person is entitled by virtue of transfer arrangements;

(b)provision enabling the [F11Secretary of State] in prescribed circumstances to prevent a person entitled to debt by virtue of transfer arrangements from taking steps to recover it;

(c)provision enabling the [F11Secretary of State] to supply information of a prescribed description to a person entitled to debt by virtue of transfer arrangements for the purpose of enabling the debt to be recovered.”