Hello, fellow co-parents! If your child is heading off to university in the next few years, you’re probably wondering what happens to child maintenance when they start uni.
I’ve pulled together a guide that hopefully answers the most important questions – like when child maintenance stops, what arrangements can be made for the university years and what I worked out my with my own ex when our daughter started a four-year university course.
Do you pay maintenance when your child starts university?
Your child heading off to uni is a big milestone and it can feel very emotional. While you’re likely focused on what to buy for their new university room or flat, and how much you’re going to miss them, it’s important to understand – and plan – their finances.
Many parents assume that child maintenance payments stop when a child turns 16, but the truth is a little bit more complicated.
The Basics of child maintenance
In general, UK parents pay child maintenance via the CMS, or child maintenance service. This payment will automatically stop when a child finishes A-Levels or a qualification of the same level (such as BTech exams). You don’t need to do anything for this to happen – HMRC tells CMS that your child is no longer eligible for child benefit and as such, CMS payments will also stop.
That’s because while your child is still in full-time education at university, they’re no longer considered to be ‘qualifying children’ under CMS rules.
BUT:
That said, parents can agree privately to continue support while a child is in full-time higher education. If you are divorced and a single parent, and you had a good solicitor, this might well be written into your court order or consent order that was created at the time of your divorce.
Otherwise you can make a family agreement to continue support.
Child support options for university aged young people
There are a few different ways to approach the question of child maintenance once your young person is at university:
Informal agreement (voluntary support)
When maintenance stops, each parent decides whether/how to provide financial support.
The advantage of this set-up is that it’s easy and very flexible. Each parent chooses what – and when – to contribute.
The downside is that it isn’t necessarily very reliable – it might be hard for your young person to plan if they don’t have guaranteed, regular contributions. It also doesn’t take account of the fact that many students will still spend up to 22 weeks a year living at home during vacations – meaning higher food, housing and utilities costs for the resident parent.
Family agreement
A slightly more formal arrangement is where co-parents agree an amount and frequency of support that is provided regularly. This can be designed to suit your family – potentially a lump sum once a term, a monthly allowance, or paying directly for things like rent or food.
The CMS isn’t involved in this sort of arrangement, but it’s still worth getting it in writing to avoid misunderstandings.
Court ordered support
It may be that your divorce agreement specifies that children over 18 who are in full-time education will still receive child maintenance. This can be applied for under section 29 of the Children Act 1989. Many people have a clause written into the agreement that child support only stops once a child completes degree level education, or the age of 21, so long as the child is in full-time education.
It can usually be enforced if there is a clear need (such as the student is unable to support themselves) and one parent refuses to contribute towards expenses.
What co-parents need to consider about child maintenance
Talking finances with an ex can be an extremely challenging area for many people. But the earlier you can have conversations and understand your relative expectations, the better.
Try to approach the subject with an understanding and expectation that you both love your child, you both want to support your child, and you’re both planning to do so to the best of your ability.
Start by understanding your child’s income/expenses:
- How much money will your child receive in student loans and other income?
- Will your child likely have a job during summer, during term-time, or both?
- What is the expected cost of accommodation and food at their preferred university – and what’s the shortfall between this, and their income?
Now you can agree:
- Who will contribute, and how much?
- Will payments be made directly to the child, or the parent they live with outside term time?
- How will unexpected costs be handled, such as course equipment, travel or flat deposits?
How we worked out child maintenance for our university child
My daughter is now 20, and in her third year of a four year degree course. She is supported through a part-time job, student loans, a couple of academic bursaries and the Bank of Mum and Dad.
We started out by working out how much would be a realistic budget for our daughter, living in a large city. We calculated a weekly budget on top of rent that would cover her transport, books, food and entertainment. Multiplying this by 30 gave us an annual budget for her ‘allowance’ from Bank of Mum and Dad.
Our daughter’s loan and bursaries cover rent and some of these living expenses leaving around £8,000 a year to find. As parents, we split this amount 50/50, and we each pay our share into her student account on the 1st of the month, for 10 months of the year. What our daughter earns from her job covers her social life, clothes and holidays.
However, this allowance is only for our daughter. We also agreed that since our daughter would likely spend a good chunk of the year living at home with me, I would continue to receive 30% of the old child maintenance payment each month. This money is paid monthly and recognises that during those months, I pay for food, hot water, and general expenses.
Tips for taking the stress out of maintenance
- Discuss expenses well ahead of time, not in the midst of results day stress
- If you’re divorced, review your court order to understand what you’ve agreed
- Consider what happens during term time versus vacations
- If your young person is not great at managing money, consider paying essentials directly
- Confirm all agreements in writing and review them yearly, in case costs/loan entitlement changes
