Understanding Schedule 1 of the Children Act 1989: Financial Support for Children

Schedule 1 of the Children Act 1989 is designed to cater to situations where parents are not living together, emphasising the importance of securing a child’s financial needs. It grants the court the authority to make orders for financial support, considering the child’s best interests.

The key components of Schedule 1 of the Children Act 1989 are as follows:

Maintenance

In the majority of cases child maintenance is assessed by the Child Maintenance Service, however, where the non-resident parent’s income exceeds the maximum rate (currently £3,000 per week gross income) then the Schedule allows the court to order one parent to make regular ‘top-up’ maintenance payments to the other for the benefit of the child. This ensures a consistent and reliable source of financial support to cover the child’s day-to-day expenses. This can include an order that the non-resident parent pays a child’s school fees and other appropriate educational expenses. Find out more in our article ‘Calculating top-up child maintenance’.

Lump sum payments

In addition to regular maintenance, Schedule 1 empowers the court to order lump sum payments. This might be applicable for specific needs such as educational expenses, medical costs, or any other significant financial requirements for the benefit of the child.

Property settlements

The most common order made by the court is for a property to be held on trust that allows a child to live in that property until they reach a certain age, usually 18, or until they complete tertiary education, when the property would revert to the parent who funded it. This provides the child with a stable home during their formative years, but does not permanently transfer ownership away from the non-resident parent. In some limited cases the court may order that a property is transferred outright to the child and held in trust for them during their minority, with the difference being that it would not then revert to the transferring parent when the child attained the age of 18.

The underlying principle of Schedule 1 is to prioritise the best interests of the child. The court must consider several factors to determine what arrangement will best serve the child, which include the following:

One notable feature of Schedule 1 is its flexibility. The court has the discretion to tailor orders based on the unique circumstances in each case. This adaptability ensures that the financial provisions align with the specific needs of the child and the financial capabilities of the parents.

Orders made under Schedule 1 are legally binding, and non-compliance can result in legal consequences. This reinforces the commitment of the court to securing the financial well-being of the child and underscores the importance of adhering to court orders.

Schedule 1 of the Children Act 1989 stands as a crucial tool in ensuring that children receive the financial support they need in situations where the parents are not together. By providing the court with the authority to make tailored orders based on the child’s best interests, this schedule plays a vital role in safeguarding the financial welfare of the younger generation.

However, this is a complex area of law and it is essential to seek legal advice to understand the potential outcomes and to structure any property order in a way that aligns with the child’s needs and the parent’s circumstances. It is also essential to keep in mind the long-term implications of property orders for the parent with care of the child in terms of their own housing arrangements once the child reaches adulthood.

Our expert London divorce lawyers are experienced in all aspects of income claims for married or unmarried couples and civil partners and it is always vital to get early advice to know what you may be entitled or liable for.

To speak to one of our solicitors, fill out the enquiry form below, or call +44 207 228 0017 to speak to one of our lawyers today.