The government is to introduce new rules on child maintenance which would mean non-resident parents who do not keep up their child maintenance payments will potentially harm their credit rating.
The impact of not paying child support could mean being refused credit –including credit cards and mortgages – in the same way other debts harm credit rating scores. A poorer credit rating can mean an individual is given a lower credit limit or may have to pay more interest on outstanding debts.
Parents with a good credit rating could also ask for the information to be shared with credit agencies to improve their credit score further.
The changes are due to be introduced from March 2015 and will enable the Child Support Agency and Child Maintenance Service to share data about an absent parent’s payment record and child maintenance arrears with credit agencies.
The information would become available if a liability order were issued against a parent who has defaulted on child maintenance. Parents are advised before court action is taken to recover child maintenance arrears, however.
The changes are still to be approved by Parliament, but Child Maintenance Minister Steve Webb said the government was determined to take action against irresponsible parents who fail to pay child maintenance.
“For too long, a minority of absent parents have got away with failing to pay maintenance, leaving families without that financial support.”
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