Collect and Pay — CMS collection fees (20% and 4%) explained

REVIEWED BY: Sean McNamara on 2026-08-30

If the Child Maintenance Service (CMS) collects and passes on child maintenance payments for you — the "Collect and Pay" service — fees apply. This guide explains who pays what, why, and how people lawfully reduce or avoid the fees. It is general information, not legal or financial advice.

The two fees

| Who | Fee | How it works | |---|---|---| | Paying parent | 20% | Added on top of each maintenance payment | | Receiving parent | 4% | Deducted from each payment received |

These figures come from the official gov.uk guidance on CMS payments and are confirmed in House of Commons Library research on CMS fees.

A worked example (DWP's own figures)

If the maintenance liability is calculated at £100 per month under Collect and Pay:

The paying parent is charged £120 per month (£100 maintenance + £20 collection fee)
The receiving parent receives £96 of the £100 (£4 collection fee deducted)
The CMS keeps £20 + £4 = £24 per month in fees on a £100 liability

Why the fees exist

The government's stated aim is to incentivise parents to arrange maintenance directly between themselves — the "Direct Pay" option carries no fees at all. The fee structure deliberately makes Collect and Pay more expensive so that paying parents who can pay directly have a reason to do so.

Important protections

You cannot avoid the fees by paying the other parent directly once Collect and Pay is in force. The CMS treats direct payment as non-compliance and can enforce
If the paying parent does not pay in full and on time, the CMS can move the case to Collect and Pay even if neither parent asked for it
If either parent reports domestic abuse and safety concerns about direct payment, the CMS can and should use Collect and Pay so that contact details stay private — do not let fear of fees push you into an unsafe Direct Pay arrangement

Changing (and upcoming) fees

The Child Support Collection (Domestic Abuse) Act 2023 received Royal Assent but has not been fully commenced; the government has announced plans (June 2025) to reduce collection fees to 2% for compliant users from 2027–28, while keeping the 20% charge for non-compliant paying parents. Check the current position on gov.uk before relying on any future figure — fees change, and this page may not reflect the latest announcement.

Avoiding fees lawfully

1. Direct Pay — if both parents agree and it is safe, arrange payments between yourselves; no fees apply. Keep a simple written record of payments 2. A family-based arrangement — a private agreement with no CMS involvement at all; free, flexible, but not enforceable through the CMS 3. Paying on time under Collect and Pay does not remove fees, but avoids additional enforcement charges (such as deduction from earnings orders or liability orders) which carry their own costs

Official links

YourFamilyCase.co.uk is an independent information directory — we are not affiliated with, endorsed by, or connected to the DWP, the Child Maintenance Service, or gov.uk. This page is general information and is not legal advice.

Content verified against the official HMCTS court directory, gov.uk forms and fees pages, and the professional body registers (SRA, FMC, Bar Council). Last reviewed September 2026.