MILLIONS of households will this week find out how much their Universal Credit or benefits will rise by next year.

Payments usually rise every April in order to keep up with the cost of things such as food, fuel or household bills.

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The process is called “uprating” and payments usually increase in line with the previous September’s inflation figure, which will be published on Wednesday.

Inflation is the measure of how much the prices of goods and services have changed over the past year.

Figures tracking the rate of inflation are published every month but September’s figure is the only one used to increase benefits payments.

Once the figures are released it is expected that the Department for Work and Pensions (DWP) will later confirm how much benefits will be increased – usually before the end of the year.

This year the majority of benefits increased by 6.7% although a few rose by as much as 8.5%.

Meanwhile, in 2023 inflation-linked benefits and tax credits were hiked by 10.1%.

But Universal Credit and other benefits are expected to rise by far less next year.

Inflation was at 2.2% in August and experts expect that this will remain the case for September.

At this rate a single person aged over 25 who is claiming Universal Credit would receive £402.11 a month from April.

This is £8.66 per month more than the £393.45 they currently get.

In comparison, last year monthly Universal Credit payments were hiked by £24.71.

Joint applicants who are aged over 25 may receive around £631.19 per month from April, £13.59 more than they currently get.

This would add up to a £163.08 difference over the course of a year.

But it is still substantially less than the £38.78 a month, or £465.36 a year, uptick they received this year.

Meanwhile, those who are single and aged under 25 could see their currently monthly benefit climb by £6.86.

Everything you need to know about Universal Credit

This would mean their payments rise from £311.68 per month to £318.54 next spring.

The uptick is equivalent to around a third of the boost this year, which was about £19.58 per month.

In comparison, couples who are under 25 could see their payments climb from £489.23 to £500 per month, a difference of just £10.77.

By contrast, this year they saw a £30.72 increase to their payments.

The exact amount more you will get will depend on how much you get now, which can vary depending on your circumstances.

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Sarah Coles, head of personal finance at Hargreaves Lansdown, said these increases are “tiny” compared to the amount benefits were boosted during times of higher inflation.

She said: “When you spend a larger proportion of your income on the essentials, and things like energy prices remain so high, making ends meet will still be an enormous struggle for an awful lot of people.”

The amount that benefits payments will go up by could still be slightly higher or lower depending on what inflation actually is.

The Office for National Statistics will release the data on Wednesday morning at 7am.

The following benefits are also legally required to increase each April in line with the previous September’s rate of inflation: 

• Personal independence payment (PIP)
• Disability living allowance
• Attendance allowance
• Incapacity benefit
• Severe disablement allowance
• Industrial injuries benefit
• Carer’s allowance
• Additional state pension
• Guardian’s allowance

This could mean those who currently receive the lower rate of Attendance Allowance could see their payments rise from £72.65 to £75.56 a week.

Meanwhile people on the higher rate could see their weekly payment boosted from £108.55 to £122.89 a week.

In comparison, people who get Carer’s Allowance could get £85.18 each week from April, £3.28 more than they currently do.

But it is important to bear in mind that the government could choose to increase benefit rates by a different amount.

Danni Hewson, head of financial analysis at AJ Bell, said budgets could be especially tight this year as some additional support is no longer available.

“People are still feeling the pinch, especially since additional cost of living payments ended last February,” he said.

“The hike will once again be considerably smaller than the increase for pensioners, who will see their payments increase by 4% thanks to the triple lock.”

How much will the state pension increase by?

State pension payments also increase every April.

Under an arrangement called the “triple lock” the state pension rises each year by either 2.5%, inflation or earnings growth, depending on which one is higher.

Earnings figures for the three months to July are used to calculate the yearly increase.

This year they indicated that total pay rose at a rate of 4% annually, which is much higher than the rate of inflation.

If this figure is used then the full state pension would rise by £460 next April.

This would mean a typical pensioner who receives the full new state pension would get £230.05 a week, up from £221.20 this year.

Over the space of a year this would give them an income of £11,962.50.

Although this is much higher than the amount benefits are set to rise, it is still well below the boost seen last year.

Pensioners were handed an extra £900 a year when the state pension rose by 8.5% last April.

How to get help now

If you’re struggling to make ends meet then there is help available to you.

For example, you could get hundreds of pounds from your local council through its Household Support Fund.

The scheme aims to provide cash to households struggling to pay for essentials such as water, energy and household items.

For example, families in Birmingham can get £200 to help with winter costs.

What you can get will depend where you live and what support is on offer.

Contact your local council for more information and to apply.

If you are struggling to pay your water, broadband or energy bills then contact your supplier.

They may be able to give you a discount on your bill or set up a payment plan to get you back on track.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Wage growth in the UK has slowed significantly, with pay excluding bonuses rising by just 4.9% between June and August compared to a year ago.

This marks the slowest rate of wage growth in over two years – only 3.8% when bonuses are factored in.

Adjusted for inflation, wages rose by 1.9% excluding bonuses and 0.9% including them.

These figures, released today (15 October) by the Office for National Statistics (ONS), have fuelled expectations that the Bank of England may cut interest rates in November.

Despite wages continuing to rise faster than inflation, analysts believe this is unlikely to delay a rate cut, potentially to 4.75% from the current 5%.

The figures also showed that the UK’s unemployment rate dropped to 4%, while the employment rate rose to 75%.

The number of people considered economically inactive fell to 21.8%.

However, the ONS has urged caution with its unemployment data due to issues with its survey, though alternative measures suggest the number of employees on payrolls has stabilised.

Meanwhile, employers are facing higher costs and are hesitant to make significant changes ahead of Chancellor Rachel Reeves’ Budget on 30 October.

Chancellor Reeves ‘wrapping herself in a straight jacket’ ahead of Budget

Commenting on the figures, Susannah Streeter, head of money and markets, Hargreaves Lansdown, said:

“Worrisome wage growth is in retreat, lifting expectations that borrowing costs will soon fall further. The rate of increase in average earnings (including bonuses) has fallen to 3.8%, a hugely significant drop given how pay growth had raced away in recent years.

“Although there had been forecasts for an even steeper fall, and wages are still beating inflation, this will still assuage concerns among policymakers about the risk that consumer price rises will pop back up into troublesome territory. “

Lindsay James, investment strategist at Quilter Investors, added: “With only a few weeks until the next Bank of England interest-rate announcement, today’s figures, along with last week’s GDP data and tomorrow’s inflation number, will play a vital role in the monetary policy committee’s decision-making.

“Labour’s first budget will also take place before the Bank’s MPC meeting, so the Bank will closely monitor market reactions and potential economic impacts.

“Though we could see another rate cut at the next meeting, it is seeming increasingly likely that the Bank of England will continue on its ‘slow and steady’ path with a 0.25% cut at most.”

THE Labour government will deliver its first budget on Wednesday, October 30.

Prime Minister, Keir Starmer has already warned that the Autumn Statement will be “painful”, leading to widespread speculation around what changes lie ahead.

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Experts say that pensions might be a key target for Rachel Reeves at the speech – which is being called a Budget, as it is the party’s first fiscal speech since the election – particularly since the Chancellor spoke about a £22billion black hole in the UK’s finances.

Already, pensions companies are seeing people withdraw money from pensions, amidst concerns that the government will change the goalposts.

However, financial commentators are warning people not to make rash decisions now, as it could significantly impact your financial future.

Michael Summersgill, chief executive at finance firm AJ Bell, said: “Constant rumour and speculation about the future of retirement tax incentives are hugely damaging.

“People are taking financial decisions in part based on pre-Budget speculation and it chips away at people’s confidence in pensions generally.

“Almost 100% of advisers we surveyed said they’ve dealt with tax and pension queries from clients concerned about the Budget, with a third saying they had seen an increase in clients wanting to take tax-free cash in anticipation of a pensions tax raid in the Budget.”

Shane Julian, managing director and financial planner at Brancaster House Financial Planning added: “Our advice to consumers ahead of the Autumn Budget is to not get caught up in speculation… It’s important to stay calm and avoid knee-jerk reactions to potential changes in pension policies.”

That said, people should be keeping a close eye on the budget, to understand what’s been announced and how it could impact your finances.

Some of the changes that are expected could change your retirement plans, so it’s important to reassess once we know what’s been announced.

To help you understand what to keep an eye out for, The Sun has spoken to several experts in the pensions industry and asked for their key predictions for what pensions changes might be on the chancellor’s hit list.

State pension increases

Not strictly a Budget announcement, but the government is expected to confirm how much the state pension will rise by from next April.

The Labour government has committed to the triple-lock, which says that state pensions will rise by the higher of earnings rises, inflation, or 2.5%.

Last month’s earnings figures showed average growth of 4%, so this is the increase that is most widely expected.

The final decision is typically made by the Work and Pension Secretary, usually around the time of the budget.

Some commentators have also said that the chancellor might reconfirm Labour’s commitment to the triple-lock in the Budget.

One important thing to look at out for is income tax band freezes. Currently, people who only receive the state pension do not pay any income tax because it falls under the 20% tax threshold.

However, thresholds are currently expected to stay frozen until 2028.

Even if the state pension only rises by the minimum possible of 2.5% under the triple-lock, this will push some of the poorest pensioners into paying income tax before the freeze lifts.

Changes to the state pension age

The current state pension age is 66, but there are already plans in place to increase this to 67 in the years 2026-28 and then 68 from 2044-46.

The second increase impacts anyone who was born after 1977.

There is another review of the state pension age planned for this parliament, which will make recommendations about whether the SPA should change, and if so when this will happen.

The response isn’t expected until next year, so we’re unlikely to hear anything about it in this Autumn Statement, although it could be mentioned.

Cuts to tax-free pensions cash

One of the most commonly predicted changes for this year’s budget is the rules around tax-free cash.

Under the current system, retirees can access 25% of their pensions saving tax-free, up to a limit of £268,275.

However, there are rumours that the government might reduce the percentage that can be taken tax-free or reduce the cap on the maximum amount.

Calum Cooper, head of pensions policy innovation at Hymans Robertson, cautions that any changes could directly affect people’s broader financial plans. For example, people planning on using the tax-free cash to pay off their mortgages might not be able to do so.

Generally, experts are concerned about the impact that changes to the rules would have on pension saving.

For instance, Brancaster House’s Mr Julian said: “Taking away these incentives could discourage saving and ultimately increase pressure on the State’s welfare system in the future.” 

He adds that the IMF has proposed a flat amount of £100,000 rather than a change to the overall percentage.

He said: “This could be an ‘easier’ option for Labour, but I would hope if such a change is implemented, this would be on an age basis.”

Broadstone’s head of policy, David Brooks, says that estimations show that changing the limit to £100,000 would impact one in five retirees and raise around £2bn a year in the long run. 

Clare Moffat, pensions expert at Royal London urges people not to panic, and says that typically these changes are introduced slowly. She adds that it’s important that people seek advice or guidance before removing any money from their pensions.

She said: “In the past, changes to rules have not been brought in overnight, giving people notice of the change and giving those who were entitled to a higher amount the opportunity to access that higher amount when they want to. 

“Taking money out of a tax efficient environment isn’t something to be done on a whim. And if you have a large amount in a pension, taking out all of your tax-free cash means that it could be sitting in your bank account.

” If the worst were to happen and you died, that could mean that inheritance tax would be payable. Currently if money is in your pension pot and you died then it wouldn’t normally be subject to inheritance tax.”

Mr Summersgill added: “Even the perception that government might renege on the terms of the deal risks people taking actions which may not be in their best interest.

“Rumours about the future of tax-free cash, one of the best understood and most valued benefits of pensions, are particularly problematic.

“Taking your tax-free cash is an irreversible decision and, assuming the chancellor doesn’t pursue a disastrous raid on tax-free cash, those people may find they’re in a worse financial position long-term.”

Reducing the annual allowance or reintroducing a lifetime allowance 

Independent financial adviser company Edale says we could see changes to the annual allowance.

This is the maximum amount of tax-relieved contributions that can be made to a pension each year and currently sits at £60,000.

It says that the government could reduce the annual allowance further, perhaps back to £40,000 or lower. 

Another target could be the carry-forward rule, which allows individuals to use any unused annual allowance from the previous three tax years, provided they were members of a pension scheme at the time.

Edale said: “The government could reduce the number of years from which unused allowances can be carried forward (e.g., reducing it from three years to one year). Alternatively, they could cap the total amount that can be carried forward.”

Labour could also look to reintroduce the Lifetime Allowance (LTA) which is the maximum amount you can accumulate in your pension pots without incurring extra tax charges. 

It had previously pledged to do this, then said it would create an exemption for some public sector workers.

This promise was then reversed, before Labour quietly removed the pledge to reintroduce the LTA from its election manifesto.

But experts have warned that this doesn’t mean it won’t be reintroduced at a later date.

Introducing flat-rate tax relief

One rumour that does the rounds every time the budget happens is changes to the way that pensions tax relief works.

Under the current system, the tax relief you get on your pension contributions is determined by your marginal rate of income tax. Basic rate taxpayers (and those who earn under the tax threshold) get 20%, higher rate tax payers get 40% and additional rate taxpayers get 45% .

But moving to a flat-rate pension tax relief system, often predicted to be around 30%, reduces the relief available to higher earners, lowering the overall cost to the government.

Mr Brooks said: “This is the main rumour doing the rounds and would have the biggest impact on people saving for a pension but is likely to be the hardest. 

“This would likely be bad news for some higher rate tax payers but better for basic rate tax payers who would see a greater benefit in pension savings.

“It would also have challenges around salary sacrifice and net pay arrangements and could be very tricky to implement in Defined Benefit schemes so would have potentially major ramifications for public sector workers.”

Rules around inheritance tax and pensions

Another hotly tipped change is around the way that pensions and inheritance tax interact.

Under the current rules, money held in a defined contribution pension does not form part of your estate and can be passed on inheritance tax free. If you die before age 75, the money might also be income tax free. 

However, this could all be about to change.

Tom McPhail, director of public affairs at the Lang Cat said: “Top of my list of expected changes is the introduction of some form of death tax on unused DC pots (probably with an interspousal exemption). 

“It would nudge savers back towards choosing more guaranteed incomes, so reversing some of the effects of the 2015 pension freedoms.

“It would also close off an anomaly whereby tax relief funded savings are allowed to grow tax free and then pass on to the next generation without paying any inheritance tax.”

Mr Brooks added: “Changing one or both of these rules would be a relatively easy move and potentially lucrative. This could risk devaluing the benefit of pensions as a savings method and from a technical point of view, there could be complications around trust laws.

Brancaster House Financial Planning’s Julian agrees that as pensions are usually held in Trusts, this would require significant legal changes. He said: “It’s not something that would happen overnight, but it’s an area worth watching as it could have big implications for pension savers.”

Changes to national insurance and pensions

Under the current rules employer contributions to pensions are exempt from National Insurance Contributions (NICs) and are tax-deductible. 

However, Edale says that one potential option is that the government could introduce NICs on employer contributions or limit the tax deductibility of these contributions.

Ultimately, this could reduce the cost of pension tax relief to the government. In fact, IFS calculations show that applying employer NI to employer contributions to a pension would raise huge amounts – £17bn a year – for the Treasury.

However, Fidelity warns this could also reduce the amounts being saved into pensions by at least the same amount if employers pass on the cost to their workers.

The Lang Cat’s Mr McPhail said: “I think it likely the Chancellor will reduce or withdraw the NI relief currently granted on employer pension contributions. 

“This has the superficial appeal of being low hanging fruit; it can generate lots of money for the Chancellor to spend and it won’t have any immediate effect on people’s household finances. 

“However, in the long term, like Gordon Brown’s ACT raid in 1997, it would undoubtedly reduce the amount of money going into people’s pensions and so would lead to poorer retirements for millions.”

The Financial Conduct Authority’s “polluter pays” proposals are forcing consolidators to carry out more due diligence when buying advice firms, Gunner & Co managing director Louise Jeffreys has suggested.

The FCA set out its “polluter pays” proposals in November last year. They require personal investment firms to set aside capital to cover compensation costs.

In a Dear CEO letter sent to advice and investment firm owners last week, the regulator said it has seen “significant liabilities” fall to the Financial Services Compensation Scheme (FSCS).

“Our aim is to ensure the firms that create the liabilities are better able to pay them,” it said. “Should a firm fail, we want to ensure there is more capital for FSCS recoveries.”

In the same letter, the regulator announced plans to review consolidation within the advice market.

It added that it expects buyers to undertake “adequate due diligence” of the selling firm or client bank when considering a purchase.

Jeffreys said there is a connection between the consolidation review and the polluter pays proposals.

“What [the FCA is] saying is that if someone has caused harm that requires potential redress and they’re selling the business, there needs to be a clear understanding of what will happen to that liability,” she told Money Marketing.

“This includes expectations around consolidation, conducting thorough due diligence, and considering supervisory review guidance. They also mention the use of deed polls in the context of polluter pays.

“From my understanding, a deed poll can transfer liability back to the buyer if the seller has already sold the business and it has been closed down, leaving no entity to hold the liability.

“Essentially, if the buyer hasn’t carried out proper due diligence during the consolidation process, they could be at risk of inheriting that liability.”

She suggested that this reflects a “shift in mindset”.

“In the past, a buyer might have examined a business, found issues such as 100 DBTs [days beyond terms], and felt uneasy about them,” she said.

“To mitigate this, they would buy the business’ assets or clients, leaving the seller with the regulated entity and its liabilities.

“The seller could then close the entity down, de-authorise it, and remove it from Companies House.

“This created a situation where there was no longer a company for dissatisfied clients to pursue for redress, as the entity that gave the advice no longer existed.”

However, Jeffreys pointed out that the FCA is now saying in such cases it could pursue the buyer.

“As a result, buyers are realising there is no benefit in buying assets and assuming they are protected from past advice,” she added.

“Instead, they are opting for a more thorough due diligence process and considering purchasing the entire business.

“This approach pushes buyers to conduct deeper due diligence, aligning with the third point about regulatory expectations and consolidation mentioned in the letter.”

IF you’ve split up from the mother or father of your child, one thing you need to consider is child maintenance.

This is money paid from one parent to another to cover the higher costs faced by the resident parent – theone who has the children living with them most of the time.

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The government says that you must have a child maintenance arrangement in place if your child (or children) is aged under 16, or under 20 if they’re still in approved education.

It’s important to note that while the amount of child maintenance paid is influenced by how often the non-resident parent looks after their children overnight, child arrangement orders should not be influenced by who will pay what.

Victoria Furlong, family partner at Keystone Law said: “The resident parent must not stop the non-resident parent from spending time with the child if child maintenance has not yet been agreed. 

“The child arrangements and child maintenance are entirely separate matters.

“To deny the child a relationship with a parent over child maintenance can be against a child’s best interests and would be criticised heavily in the court arena.”

How is child maintenance calculated?

Child maintenance is calculated by looking at the income of the non-resident parent. 

When making the calculation, the Child Maintenance Service (CMS) considers:

• the gross income of the non-resident parent
• the number of children they have
• the number of nights each child stays overnight with the non-resident parent,
• any pension payments the non-resident parent makes
• any other children the non-resident parent has to support in their household. 

It will then apply one of five rates.

Amanda Bell, co-founder of SeparateSpace, an affordable divorce platform, said: “The good news is you don’t need to work through the formula yourself because there’s an easy-to-use online calculator on the government website.

“The CMS formula only applies to income under £156,000 per year, so where one person earns over this threshold it’s common for more maintenance to be paid.”

You can find the calculator here.  

The figure generated by the CMS formula represents the minimum amount payable, and some parents agree to split additional expenses such as school trips or computer equipment.  

What happens if there is shared care, or 50/50 care?

If there is shared care, the CMS will consider the number of nights each child stays overnight with each parent. 

Me Bell said: “Guidance on the government website is confusing on this question. 

“On the first page it states, ‘you will not have to pay through the Child Maintenance Service if you are sharing care equally with the other parent’, but if you go on to complete the online questionnaire, indicating that your child stays overnight half the time with their other parent, it will indicate a sum to be paid.”

This, she explains, is because the government distinguishes between situations where there is absolutely equal shared care and where the child/children spend half their time (or over 175 days a year) with the non-resident parent.  

In the latter case, the CMS has jurisdiction, and the formula will operate to apply a 50% reduction plus a further £7 deduction to the amount payable. 

Ms Bell explained: “The test is whether there is an equal sharing of day-to-day care and is not referable to the number of nights on which care is provided overnight.

“As a rule of thumb, the CMS assumes the parent in receipt of child benefit is the person providing day to day care to a greater extent and will deem them the person who is to receive the maintenance.”

If the day-to-day care of a child is shared equally by the parents, the paying parent may not have to pay maintenance for that child.

What happens if my ex is self-employed?

The child maintenance calculation should include all the income received by the non-resident parent, even if they’re self-employed. However, sometimes there is friction because of the way that self-assessment tax returns are completed.

Ms Furlong said: “If your ex is self-employed, the CMS will assess their income based on their declared income for tax purposes. This can be more difficult to calculate, as self-employed income can vary.

The CMS has methods for assessing self-employed income and can request further evidence if required, especially if there are concerns that not all self-employed income has been declared.”

The CMS relies on the income details filed at HMRC for the latest tax year.  But, if your ex is required to file a self-assessment return, the information can be significantly out of date because there is a time-lag between the tax year and when the tax return has to be filed.

Day added: “If you know your ex has an income but it’s not reflected in their tax return (for example they have diverted income through a director’s loan account or are retaining undrawn profits in a private company) so hasn’t been included in the child maintenance calculation, then the assessment can be varied. “

If this is a concern, you should get in touch with the CMS and ask if you can make a variation to get this income included in the child maintenance calculation.  You can call the CMS on 0800 171 2345.

What happens if my ex has another child or moves in with someone who has another child?

The CMS will take account of another child your ex has to support in their household and this may reduce the amount of child maintenance they are required to pay.

Ms Furlong said: “This includes any children living with them and any arrangements that have been made directly for other children.”

And Ms Bell added: “The figure produced by the CMS formula is adjusted for other children living in the paying parents’ household. So, if your ex has another child who lives with them or moves in with someone who has another child, it’s likely to impact the amount of maintenance you’re entitled to.” 

When does child maintenance stop? What if my child goes to university?

Child maintenance payments through the CMS stop when a child reaches 16 or completes full time secondary education. It can continue till age 20 if the child stays in approved education.

Ms Day said: “For children doing A levels, child maintenance usually finishes on 31 August following the completion of their exams. 

Otherwise, a child might continue to qualify to age 20 provided they are in secondary education or returning to it or on certain types of government training.”

However, it is possible to agree to pay child maintenance for longer than this.  For example, some families agree that child maintenance will be paid until the child finishes full time tertiary education (e.g. until they graduate from university). 

In these circumstances, the paying parent tends to have a high income. 

Ms Day added that where this is agreed, the payment is usually split so that the non-paying parent/parent with care receives one third to half of the maintenance (which covers a contribution to the child’s costs when they’re back at home over university holidays) and the rest of the maintenance is paid directly to the child to contribute to their day-to-day living costs, such as accommodation, food and travel.

Me Furlong said: “Sometimes parents agree child maintenance arrangements in the context of a divorce and include in a Court Order provision for one parent to pay child maintenance if the child goes to university and/or the university fees or a proportion of them.”

What happens if my ex doesn’t pay? 

Private arrangements are not legally binding, but CMS arrangements are. So, if your ex is not keeping up with the terms you’ve agreed, you will need to make an application to the CMS to get an assessment.  

If you already have a CMS assessment, you will either have agreed ‘direct pay’ (when the CMS has made a calculation but isn’t involved in the payment of the child maintenance) or ‘collect and pay’ (where the CMS collects the child maintenance for you).

Keep a record of any payments that are missed altogether.  Then contact the CMS and let them know that the payments aren’t being made. 

If you’re in the ‘collect and pay’ scheme, they should already be aware but get in touch with them anyway. You should keep a record of every communication with the CMS.  

Ms Bell explained: “If you’re in the direct pay scheme, then the CMS may move you to the ‘collect and pay scheme’.  You can also ask to be switched into this scheme.  It does come with a fee so you’ll end up with slightly less money (your fee will be deducted from the child maintenance) – and your ex will end up paying more (their fee will be added to the amount they have to pay).”

If your ex still doesn’t pay, the CMS has powers to enforce outstanding maintenance payments.

Me Furlong said: “The CMS can invoke its enforcement methods, which may include action against your ex to take the arrears directly from their wages or bank account.”

How do private arrangements work

Private agreements are not legally binding, but they can be very useful and allow more flexibility. They can also be varied quickly if circumstances change.

If you have a consent order (i.e. a court order finalising the finances after a divorce) and your order provides for child maintenance that is different to what the CMS would calculate, then the general rule is you’re stuck with that agreement for 12 months.  

After that point, either of you can apply to the Child Maintenance Service for an assessment.  However, Day says there are some ways to draft the final financial agreement which means that any CMS assessment doesn’t change the amount payable.

What happens if CMS makes a mistake?

The Child Maintenance Service calculates child maintenance in accordance with a formula and set criteria. 

Most of the time, they get it right. However, there may be instances when the CMS may have made an error or missed evidence when making their decision on a child maintenance calculation.

Nusrat Siddique, associate solicitor at Family law firm, Rayden Solicitors says: “If you receive a decision from the CMS which you do not agree with, you can ask them to review their decision. This process is known as seeking a mandatory reconsideration.”

If you think an error has been made, you need to request a mandatory reconsideration within one month of the date you receive the original CMS decision letter. 

The steps you’ll immediately need to take are:

• Checking your original decision letter to see if the decision can be reconsidered, or whether you have to go straight to an appeal at the Social Security and Child Support Tribunal
• Checking your original decision letter to see if you are within the one-month deadline

Siddique said: “If you act on time, as part of your request for a mandatory reconsideration, you will need to set out very clearly why you consider the decision that has been reached to be wrong, with a supporting statement and documentary evidence, such as new medical evidence, bank statements, pay slips, and tax returns, proving your position.”

Once you have requested a mandatory reconsideration, the CMS will reconsider their decision and give you a letter called a “mandatory reconsideration notice”. This notice will set out whether they have changed their original decision, the reasons for their decision and the evidence they have based their decision on. 

If the CMS changes its decision, it’ll change the amount the non-resident parent must pay and backdate it to the date of its original decision. 

If you miss the one-month deadline, you can still apply for a mandatory reconsideration but you need to provide a “good reason” for why you failed to meet the deadline.

A good reason could include suffering from a serious illness or bereavement. It is up to the CMS to then decide whether it proceeds with your request or refuses it.

Siddique explained: “Even if the CMS refuses your application because you failed to meet the deadline, you can appeal to a tribunal so long as you apply within 13 months of the date on your original decision letter. Again, the reason for the delay will be important.”

If you still believe the outcome of your mandatory reconsideration request is wrong, you can appeal to the Social Security and Child Support Tribunal, which is an independent body.

Again, timing is key. You must submit your appeal within one month of the date of your mandatory reconsideration notice. If you miss that deadline, you might be able to ask for a “late appeal”, but you must give reasons for why your late appeal should be allowed.

After you submit your appeal, you can manage it online and provide evidence. You will be given a date to attend a tribunal hearing, where a judge will listen to both sides of the argument before deciding on the form of a “decision notice”.

Siddique said: “You must remember that while the CMS decision is being reconsidered or appealed, it will stay in force. You must continue to make payment for the child’s maintenance following the calculation on the original decision letter until the issue is resolved.”

If you don’t pay, the CMS may force the collection of what they think you owe.  If they do so they will automatically charge an additional 20% on top of what they think you owe, so it can be very costly.  

Siddique concluded: “The process for challenging a CMS calculation can be difficult, particularly with the time limits and putting together the evidence to support your case. If you are considering challenging the CMS’s decision, early legal advice should be obtained.”

THE deadline is looming for Americans to claim a chunk of a $115 million payout due to privacy concerns.

It comes after a class action lawsuit was filed against cloud applications provider Oracle America, Inc. in California in 2023.

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The complaint alleges that the company illegally collected personal information and sold it to third parties for advertising purposes.

“Oracle improperly captured, compiled, and sold individuals’ online
and offline data to third parties without obtaining their consent,” the class action notice claims.

Web activity, purchases made online, geolocation and other personal information were reportedly collected and sold by the company.

Oracle collaborates with the likes of Uber, AMC, and MGM Resorts.

While agreeing to a $115 million settlement, Oracle admits no wrongdoing.

COMPENSATION

Under the terms of the agreement, claimants will receive an equal share of the settlement fund.

It is not currently known how much money each claimant will receive as the net settlement fund will be impacted by how many eligible claims are received.

As well as monetary compensation Oracle is also changing some of its operations in the wake of the lawsuit.

The company will review its privacy systems and will no longer collect user information from forms and referrer websites on its own site.

Those who are eligible for payment will have had their personal information collected and/or sold since August 19, 2018.

Data that was sold may have been made available through ID Graph, Data Marketplace, or another advertising product used by Oracle since the above date.

However, those who believe they are eligible have just four days left to file a claim.

To do so, eligible members are urged to visit the settlement website where they will be directed to a claim form submission portal.

KEY DATES

The final date to submit a form is October 17 with those wishing to object or exclude themselves from the settlement also asked to appeal by this date.

Those who exclude themselves from the settlement will not receive any money but will retain their right to sue Oracle in the future regarding the same complaint.

Meanwhile, eligible claimants who do nothing will not receive any money and will forfeit their legal rights.

A final approval hearing is scheduled for November 14.

This is where a judge will review the settlement and its terms and decide how much money each claimant will receive after various deductions.

Meanwhile, thousands of Americans are eligible for part of a $29.5 million settlement involving Citibank.

Each claimant could get a payment of up to $850 if they were impacted by calls regarding credit card balances between August 15, 2014 and July 31, 2024.

However, the deadline is looming for Citibank customers to take action.