If a parent owes child maintenance, deductions to recover that debt can currently only be made from a bank or building society account held solely by them.
Unfortunately, a small minority of parents are cheating their way out of supporting their children by putting their money into a joint account with a partner.
New laws will be brought in to allow deductions to be made from joint accounts to recover child maintenance arrears.
It is believed that by closing this loophole this could stop many parents getting away with not paying their child maintenance each year – leading to more than £390,000 additional child maintenance being collected.
The recent government’s response to a public consultation on joint account deductions has been published. This sets out how deduction orders against joint accounts will work and the safeguards that will be in place to protect the other holder of the joint account.
- a deduction order only being imposed on a joint account when the paying parent does not have their own account, or there is not enough money in their own account
- only funds belonging to the paying parent being targeted, as before a deduction order is made on a joint account, data on that bank account will be collected and bank statements examined to establish which money in the account belongs to the paying parent
- existing safeguards already in place for deduction orders for child maintenance will apply to this new power, including the maximum deduction rate on regular orders being set at 40% of the paying parent’s weekly income
- both account holders will be given the right to make their case before a deduction order is made
The new power will come into effect early next year.
- Are you ready for 1 January 2021? - November 25, 2020
- Furlough claims from 1 November 2020 - November 24, 2020
- Are you eligible for further self-employed grants? - November 19, 2020
- Current businesses subject to lock-down - November 17, 2020
- Are you eligible for Universal Credit? - November 12, 2020
- Government financial support extended - November 9, 2020
- Get ready for end of EU transition period - November 5, 2020
- Are you making the most of your accounts data? - November 4, 2020