As we blogged last week, growing numbers of separated parents are choosing to make a Direct Pay arrangement with the Child Maintenance Service, according to an official report. But how does Direct Pay work in practice? Here’s the story of David and Tracey, who overcame their differences to make a Direct Pay arrangement.
They tried to make a family-based arrangement first
David and Tracey have two children aged 4 and 6. When they separated, they tried to make a family-based arrangement. However, they ran into difficulties as they couldn’t agree on an amount of child maintenance. This was causing them to argue and made it difficult for them to continue to work together to care for their children, which is what they both wanted even though they were no longer a couple.
Child Maintenance Options helped them choose Direct Pay
After speaking to Child Maintenance Options, Tracey made an application to the Child Maintenance Service. She asked to use the Direct Pay Service as, during her conversation with Child Maintenance Options, she learned that she could avoid collection fees by using Direct Pay.
A standing order was set up so regular payments were made
The Child Maintenance Service calculated the amount of child maintenance that David needed to pay. Tracey gave her bank details to the Child Maintenance Service who passed them securely to David, who then set up a standing order to that bank account.
David set up the standing order to pay child maintenance straight after his monthly payday. That meant he knew the money went straight to the children and he knew how much money he had left and was able to budget.
Tracey was reassured because if David stops paying in future, the case can be moved to a Collect & Pay arrangement and the Child Maintenance Service can take action to recover the missing money.
Inspired by David and Tracey?
For more information Direct Pay, see our guide to comparing your options. Or, you can chat online or call us on 0800 988 0988 to speak to us in confidence.
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