Child maintenance bank account loophole to be closed

The Government has closed a loophole on child maintenance payments
Getty Images
Martin Coulter1 November 2017

A legal loophole which allows parents to avoid paying child maintenance will be closed, under new laws to be brought in within months.

The Government says a "small minority" of parents are avoiding their payments by having a joint account with a partner.

Under the current system, if a parent owes maintenance, payment can only be taken from a bank account held solely by them.

The new rules mean money can be taken from joint accounts, meaning an extra £390,000 could be collected per year.

The department for work and pensions says safeguards will be put in place, such as making sure the parent in question does not have an alternative personal account.

Bank statements will also be reviewed to establish which funds belong to the paying parent and which to the other account holder.

Earlier this year, figures from the BBC's Victoria Derbyshire programme showed a backlog of more than £3.8 billion in uncollected child maintenance payments.

About 1.2 million people were owed child maintenance payments, according to the research.

Caroline Dineage, the minister for child maintenance, said: "Our priority is for children to get the support they need.

"Only a small minority of parents try to cheat their way out of paying towards their children...and this new power will be another tool to tackle those who do."

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Sign up you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy notice .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in

MORE ABOUT