How child maintenance arrears may affect your future credit rating
Parents who fall behind with child maintenance payments could be refused credit under new Government proposals.
What are the new Government proposals?
The Government plans to introduce new powers which will enable The Child Maintenance Service and the Child Support Agency to share information on individuals with credit reference agencies.
How will credit agencies get access to the arrears information?
Information about non-payment of child maintenance would potentially be shared with credit agencies at the point when a liability order is made against a parent. A liability order can be made by a court for the total sum outstanding after all other efforts to obtain payment have failed.
How many parents could be affected by these proposals?
Just under 1.5 million child maintenance cases are being overseen by the Child Maintenance Service and Child Support Agency. The majority of parents who have left the family home do contribute to their child's upbringing, however in the year April 2013 and March 2014 more than 12,400 liability orders were granted by the courts. The Child Maintenance Service was introduced in 2012 and will replace the Child Support Agency over the next three years.
When are these changes going to be introduced?
The new powers are subject to parliamentary approval but could be implemented as early as March 2015. The Government hope that these changes will encourage errant parents to bring their child maintenance payments up to date rather then face a blot on their credit record.