COMPLIANCE
Using the online service for managing child maintenance deductions
Andy Phillips, employer payment team senior leader, Child Maintenance Service, Department for Work and Pensions (DWP) , gives an update on the online service
T he DWP understands that time spent on administration and making child maintenance deductions from their employee’s pay can be considerable for many employers. More information can be found here: http://ow.ly/Mm2G50MU0PP. Research with employers and payroll companies has been taking place to help shape service delivery, and better understand how we can hopefully successfully align. What’s currently happening? DWP has an online service to help employers and payroll partners to manage deductions, while keeping them informed, and development continues to ensure this service meets the needs of employers and payroll teams. In August 2021, DWP contacted some employers as part of a pilot, to improve the efficiency of payment. Payments, linked to employers and payroll, which were identified as bulk payments but sent without the use of the National Insurance number (NINO) for employee deductions, were identified as an initiative to ensure payment from employer to family was quicker. This would also mean reduced contact from DWP to establish the payment identity of the employee. DWP recognised that some employers and payroll departments were required to make changes to their software or internal process. However, it’s been proven that
less contact is required between DWP and payroll following the new process and speed of payment to families is improved, on average, by five days. “Payments made this way will ensure the correct employee’s deduction will join the £12 million received from deductions each month and reach the right family as quickly and accurately as possible” There’s significantly less of a burden on employers in simply ensuring the NINO is recorded for each employee when making a payment in Bacs field ten. The success to date and positive feedback from payroll will see a change to letters and forms in due course for new and existing deductions. The DWP Employer Payment Team are contacting payroll departments in advance, to start a conversation about
changing the way payments are made. Payments made this way will ensure the correct employee’s deduction will join the £12 million received from deductions each month and reach the right family as quickly and accurately as possible. How can you get involved? DWP is also developing its online service and is continually looking to talk to payroll departments who use the current online service and those who are choosing not to. The purpose is to engage about how the digital capability can be built to best serve payroll requirements. If you’re interested in sharing your experience of administrating child maintenance deductions, please contact andy.phillips@dwp.gov.uk. We’ll arrange a suitably convenient time to get feedback on your experience of operating child maintenance deductions and what you’d like to see changed in support of administration. Employers and payroll partners can easily register for the online service on GOV.UK, here: http://ow.ly/ iuX150MU0Uj.
Your support in enabling regular deductions from pay to family makes a difference to children’s lives, thank you. n
| Professional in Payroll, Pensions and Reward | March 2023 | Issue 88 20
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