Parents refusing to pay child support risk damaging credit rating
The Government has announced a new measure that could affect the credit rating of non-maintenance paying parents from early next year. A new rule introduced by the Department for Work and Pensions (DWP), aimed at penalizing separated parents who build up arrears in child maintenance payments, is due to be introduced from March 2015.
Sharing records with credit agencies
Provided parliamentary approval is granted, the Child Maintenance Service and Child Support Agency (CSA) will be given the green light to share the payment records of clients with credit reference agencies. Separated parents failing to pay child maintenance will then see their credit score damaged. A poor credit rating affects people’s ability to apply for financial credit, loans, credit cards and mobile phone contracts.
The DWP expects the new measure to act as a deterrent to parents who may otherwise attempt to avoid financial responsibility for the upbringing of their child. Once all other avenues of encouragement have been exhausted, the measure is in place to be used as a last resort. With the numbers of non-resident parents contributing towards the maintenance they owe, reaching 86.2% in June this year, the measure is in place to target the minority who have yet to pay.
if you and your family are experiencing financial problems or unresolved family money problems then speak to one of our friendly team at Milner Elledge.