More than 24,400 parents were overcharged by the Child Maintenance Service (CMS) over a 10-year period, according to a review by the National Audit Office (NAO). The total amount wrongly taken from families stands at £4.3 million, with some of those affected reportedly left financially ruined and even driven to suicide.
The CMS, a branch of the Department for Work and Pensions (DWP), is designed to ensure children are properly supported when parents separate and children live mainly with one parent. Paying parents are normally required to hand over between 12% and 19% of their income, depending on the number of children they have. The amount is calculated using HM Revenue and Customs (HMRC) records and must be paid until the child turns 20 or completes A-levels. An online calculator on the CMS website lets parents estimate their liability based on income and other factors.
Investigation points to computer glitches and 'fictitious' charges
An investigation by the Daily Mail found that the overcharging errors are believed to stem partly from computer glitches within the Government-run agency. Parents have described receiving 'fictitious' child maintenance demands, with some facing automatic deductions from bank accounts or directly from their salaries when they refused to pay what they claimed were inflated and inaccurate bills.
The NAO review of the CMS's finances revealed that by 2022 there were 24,466 cases of overcharging, amounting to £4.3 million. That means thousands of families were wrongly out of pocket, in many cases for years, while trying to comply with a system that is meant to support children after parental separation.
Devastating impact on families
The consequences have been severe. Parents have described being 'financially crippled' by the demands, with some losing their homes as a result of the incorrect charges. The Daily Mail investigation reported that some individuals were even driven to suicide by the stress and financial hardship caused by the CMS's demands.
The issue has raised serious questions about the fairness and accuracy of the CMS. While the agency has the power to seize money automatically if payments are not made, those who have been overcharged face a lengthy battle to get their money back. The NAO figures suggest that over a decade, the system has failed a significant number of families who rely on it to provide financial security for their children.
DWP denies systemic IT problems
In response to the allegations, a DWP spokesperson firmly denied any systemic issues. They said: "There are no systemic IT glitches within the CMS, and these claims are misleading and untrue." The spokesperson acknowledged that in 2018 the system experienced some slow response times due to a series of upgrades, but insisted these never affected the actual calculations. They added that the problems were rectified in late 2018 following significant IT improvements.
The DWP also stressed that payment arrangements are based on the paying parent's income, with assessment accuracy rates "consistently close to 100%". The spokesperson said: "If parents dispute a decision, it can be appealed, and an independent tribunal will decide if it should be changed."
Despite the DWP's assurances, the NAO's findings underline the scale of overcharging that has occurred. The £4.3 million total represents only the cases identified by 2022, and the true figure may be higher when accounting for incidents that were not reported or resolved. The CMS says it has dedicated processes for reviewing cases and issuing refunds, but campaigners argue that the system must be more transparent and proactive in identifying errors before they cause such harm.
For affected parents, the news offers a glimpse of a long-running problem that has, in some cases, had tragic outcomes. The DWP maintains that the current system is fair, but the evidence from the NAO and the personal testimonies of parents paints a more worrying picture. The challenge now is to ensure that those who have been overcharged are properly compensated and that such errors do not happen again.
