By Darren White

Under plans announced this week by the Government it is anticipated from March 2015 that parents who fail to provide child maintenance payments may find their credit rating damaged preventing them from applying for loans, mortgages or credit cards.

How these new powers work will be that the Government will give additional powers to the Child Maintenance Service to enable them to share with credit reference agencies any details of any payments records which could mean that those parents who fail to make those payments are prevented from getting credit.

Similarly however, for those who make regular Child Maintenance payments, it could in fact improve their chances in obtaining further credit. The proposals the Government want to bring into force have the sole purpose of ensuring that parents do meet their Child Maintenance payments.

Of course many people will now be aware the Child Maintenance Service now charge a flat fee of £20.00 for collecting these monies. The parent with care then has to pay 4% of the monies received to the Child Maintenance Service and the non resident parent then has to pay the Child Maintenance Service an additional 20% on top.

It is hoped by introducing this it would lead to more parents coming to voluntary arrangements. These new powers proposed aim to advocate the minority of cases where agreement still cannot be reached.