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Child Maintenance and Other Payments Bill

moved Amendment No. 48A: 48A: Clause 40, leave out Clause 40 The noble Baroness said: My Lords, this is a probing amendment to discover from the Minister more details about the disclosure of parents’ information to credit agencies. The commission is given powers to supply qualifying information to a credit reference agency. Will the Minister say exactly what qualifying information this could be? Will he also give me an idea of a credit reference agency that may need such qualifying information? This clause makes me anxious that a parent’s failure to pay their child maintenance payments will entail damage to their credit rating. Of course we must pursue those who do not stand up to their responsibilities in maintaining their child or children, but must we disable those who are struggling to pay on low, or perhaps absent, income? A poor credit rating creates a series of financial disadvantages. Those with a poor credit rating can find themselves able to get only high-interest loans. Their ability to get contracts for direct debit is hugely decreased and they are unable to get credit cards. It can be difficult to reverse such a credit judgment. Is this really the right way for CMEC to gather a financial handle on those who default on their payments? The proportion of non-resident parents who, once assessed to pay, do so has barely risen in the past year, despite this being a special focus of attention by the CSA during 2007-08. In March 2007, child maintenance was being paid in 65 per cent of cases. This had risen to 67 per cent by March 2008. That means that a third of non-resident parents with maintenance liability are still failing to pay anything at all. This is clearly unacceptable. Does the Minister not agree that, given such figures, to financially hound and wound the defaulting non-resident parent making future payments would not be a beneficial strategy? Will he assure me that the financial information of the parent is private and its only status as qualifying information is within the remit of child maintenance? I beg to move.