The Department of Work and Pensions (DWP) has started a consultation to make it easier for the authorities to prevent parents from dodging their agreed payments.
Part of the proposals include the end of the ‘direct pay’ service, which relies on both parents agreeing to how the money will be paid and when. Instead, the Child Maintenance Service (CMS) will handle the payments and therefore be able to find out quicker if payments are not made.
The consultation to “shake up” the CMS runs from today (8 May) until 31 July. As well as halting missed payments, more support to victims of domestic or financial abuse will be launched, based on Dr Samantha Callan’s independent review of the CMS in 2023, the Government noted.
Meanwhile, it follows previous changes to the system introduced in February, where an arbitrary £20 application fee was scrapped for parents who had to apply for CMS. Further powers included the potential to file an administrative liability order against parents not paying their maintenance fees.
Tougher measures are already in place
Once the order is applied, bailiff action or a driving ban can be enforced, which hopes to put a stop to the 10,000 parents who do not pay to support their child (or children).
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Before that action is taken, the CMS can collect earnings directly from parents’ employers or various bank accounts they hold. This is a result of a previous consultation last October.
The aim of the laws introduced in February and the ongoing consultation is to stop 160,000 potential children from falling into poverty. In just 12 months leading to December 2023, the CMS arranged over £1.3bn in payments and managed payments for 960,000 children.
Clampdown on parents who ‘shirk financial responsibilities’
Mel Stride, work and pensions secretary, acknowledged that most parents “strive to give their children the best start in life, but sadly this isn’t always the case.”
Stride added: “This is why we are clamping down on those who try to shirk their financial responsibilities. This and tough new laws will help ensure every child gets the financial support they deserve.”
DWP Minister Viscount Younger of Leckie said: “In the case of the minority of parents who fail to meet their responsibilities, avoiding paying what they owe, these plans along with new enforcement powers will enable us to act faster.”