What Is Schedule 1 of the Children Act 1989?

Schedule 1 of the Children Act 1989 gives the courts in England and Wales the legal power to order a parent or parents to make financial provision (i.e. money and/or property to a child) to cover their current and future needs, typically following divorce or separation. An application to the courts under Schedule 1 of the Children Act 1989 can be made by the child’s parent (including unmarried parents), guardian or special guardian, or any person named on a Child Arrangements Order with whom the child lives. In addition, the child must live with the person making the application and be under 18. Such orders typically end once the child reaches the age of 18, however. In some circumstances, a child who is 18 years or over can apply for a Schedule 1 order if they are in education or training.  

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Pros and Cons of Schedule 1 of the Children Act 1989

Schedule 1 Financial Provision Orders under the Children Act 1989 are often more beneficial than relying on the Child Maintenance Service (CMS) or informal arrangements between the parents; specifically, they can be used to secure:  

• A top-up of child maintenance over and above the CMS maximum limit – this is particularly beneficial because the highest amount of a paying parent’s gross weekly income currently taken into consideration by the CMS is £3,000.  

• A greater interest in a property than would be possible under a Trust of Land and Appointment of Trustees Act 1996 (TOLATA) claim – TOLATA allows someone to claim their beneficial interest in a property or to seek an order for sale. Unlike TOLATA, Schedule 1 is not limited to strict property ownership rules; it is based on the child’s welfare and housing needs. 

• Payments to cover significant needs (e.g. making changes to the home, purchasing vehicles or other one-off items, education such as private school).

• Property orders for the child housing needs – the court has the power to put a property into trust for a child, transfer property into their name, or give the right to occupy a property for as long as is necessary. 

• Financial provision where the CMS has no jurisdiction – for example, if the non-resident parent (i.e. the parent who does not live with the child) lives in another country or they earn over £156,000 gross. 

There are some limitations of Schedule 1 of the Children Act 1989; unlike the CMS, Schedule 1 is not suitable for day-to-day residual living costs. Furthermore, it can be time-consuming to make a successful application, court fees apply, and one party may be ordered to pay the other party’s legal costs.  

It is important to be aware that financial support for children following divorce is usually dealt with under the Matrimonial Causes Act 1973, which enables the parent who is caring for the child to claim both child maintenance and financial provision for themselves. However, applications under Schedule 1 of the Children Act 1989 only cover the child’s needs, not the parent’s. This may mean that any housing provided will eventually return to the paying parent once the child finishes their education or reaches adulthood, leaving the other parent without a home or further support. This underpins the importance of seeking the advice of a family law solicitor if you plan to make a Schedule 1 of the Children Act 1989, to ensure that your own rights are protected, including your rights to your home. 

What court orders can be made under the Schedule 1 Children Act 1989?

The courts have the power to make different types of orders under Schedule 1 of the Children Act 1989, including: 

• Periodical Payments orders 

• Lump Sum order 

• Transfer or settlement of property orders 

Periodical payment orders

While the CMS has primary jurisdiction over child maintenance, the courts can order the non-resident parent to make regular payments to the child or to the other parent on behalf of the child to cover their needs under Schedule 1 of the Children Act 1989 

Periodical payment orders tend to be issued by the courts if the non-resident parent earns more than the CMS income threshold of £156,000. This may be necessary to cover educational and vocational training, or where the child has a disability and requires additional financial support.

Lump sum orders

The court can make one or more lump sum orders where necessary, for example, to cover the cost of a car, baby equipment, home furnishing, adaptations to the home if the child has care needs, and one-off medical fees.

Transfer or settlement of property

The courts have the power under Schedule 1 of the Children Act 1989 to order a parent to purchase or transfer a property for the benefit of the child. It is important to bear in mind that under this type of arrangement, the order is purely for the benefit of the child, not the other resident parent. This means that once the child has reached the age of 18, or the order ends, the property may revert back to the non-resident parent. 

How to apply for financial provision under Schedule 1 of the Children Act 1989

To apply for financial provision under Schedule 1 of the Children Act 1989, you will need to go through several steps, as follows:  

1. Attend a Mediation Information and Assessment Meeting (MIAM) – this is a mandatory step (except in cases of domestic abuse) which involves you and your ex-partner attending a session with a specially trained mediator. The mediator will assess whether mediation is a suitable way to resolve the dispute with your ex-partner and to reach an agreement. The courts will check that you have tried mediation before considering your application further.  

2. Complete the relevant application forms: 
   • Complete Form A or A1 – Form A is for the standard track, and Form A1 is for the fast track (a faster overall process). Please note, you can only apply under the fast track route for a periodical order (or to change an existing periodical order). 
   • Complete Form E (standard track) or E1 (fast track) – these forms are used to gather all of the financial information, including money, income, assets, debts, and property from each party. The judge will use this information when reaching a decision on the order to be issued.

3. The court will issue and serve the proceedings on the respondent  

4. The court will issue directions to both parties setting out when financial disclosure should be exchanged between the parties, any additional documents must be provided to the courts, and the date for the first appointment (standard track) or first hearing (fast track): 
   • Standard track 
     • i. Both parties file and exchange financial disclosures at least 35 days before the first appointment.  
     • ii. Completed questionnaire, statement of issues, and chronology must be received by the court and the other party no later than 14 days before the first appointment.  
   • Fast track 
     • i. Both parties file and exchange financial disclosures at least 21 days before the first appointment.
     • ii. Completed questionnaire, statement of issues, and chronology must be received by the court and the other party no later than 14 days before the first appointment.

5. First appointment / first hearing – At the first appointment (standard track), the judge will check that financial disclosure has been completed, make directions about valuations (e.g. of a property), decide if further evidence (like witness statements or bank disclosure) is needed, and set a timetable for the next stage. In the case of a fast-track first hearing, the judge will try to resolve disputes in a single hearing; however, more can be arranged if necessary. Fast-track hearings tend to be for more straightforward proceedings.  

6. First dispute resolution (FDR) – At which the judge will help both parties to come to an agreement on the matters at hand. If this can be achieved, a Consent Order will be drawn up and issued by the judge. 

7. Final hearing – If the matter requires a final hearing, the parties may be asked to make an ‘open settlement offer’. The judge will make a final decision and issue the order. 

What factors does the court consider under Schedule 1 of the Children Act 1989?

The court will consider all relevant circumstances in each case, including 

• The child’s financial needs – including housing, living costs, and day-to-day support. 

• Any physical or mental disability of the child, where additional care or resources may be required. 

• The child’s education or training – how they are being, or are expected to be, educated or trained, including school fees or university expenses. 

• Each parent’s income, earning capacity, property, and financial resources – what they have now and what they are likely to have in the future. 

• Each parent’s financial needs, obligations, and responsibilities – including commitments to other dependants. 

• The child’s own income, earning capacity, property, and financial resources – for example, savings, trust funds, or part-time work.