Katona 'paid for coke with kids' cash'

Kerry Katona has been using child maintenance payments to fund her alleged cocaine habit, according to a report in The Mirror today.

The former I'm A Celebrity... winner is believed to receive £2,100 from her ex-husband Brian McFadden each month for the care of their two daughters Molly, 7, and Lilly-Sue, 6.

A source told the newspaper: "It's no secret Kerry has been really hard up recently. She's had to find the cash to pay off an £82,000 tax bill as well as being declared bankrupt.

"All her assets have been frozen. So that regular payment from Brian, which is protected from the bankruptcy order, was a temptation she just couldn't resist."

Katona is currently under fire after footage released by a Sunday newspaper appeared to show her snorting a white powder in the bathroom of her home.

The insider added: "Obviously, she hasn't been spending every penny of [the payments] on drugs but she's made no secret of the fact she's been skimming off the top for herself."

Meanwhile, sources close to McFadden said that he will be "furious" and "disgusted" when he reads the rumours.

The former Westlife singer is reportedly planning a new custody bid for the girls in the aftermath of the recent scandal.