Example of how collection fees are calculated
Tom is the paying parent and Tracy is the receiving parent and they are using the Collect & Pay service.
1. Tom - the paying parent
Tom needs to pay statutory child maintenance of £50 per week. The collection fee is 20% = £10. That means he will need to pay £60 per week which equates to £3,120 in total paid out per year.
2. Tracy - the receiving parent
Tracy will receive statutory child maintenance of £50 per week less the 4% collection fee = £2, meaning she will actually receive £48 per week which equates to £2,496 in total received per year.