DEPARTMENT FOR WORK
AND PENSIONS News Release (HSE - 41) issued by The Government News
Network on 9 October 2007
350,000 children
to benefit from extra money
Around 50,000 children will be lifted out of poverty thanks to a
move to give some of the poorest parents receiving child
maintenance up to £20 extra each week, doubling to £40 from April
2010. In total this will benefit some 350,000 children.
The measures equate to more than £2,000 extra a year for some of
the poorest families, and were announced today by the Government
within the Pre-Budget Report. It involves extending and increasing
the 'disregard' for all parents on benefits who receive
child maintenance. This means that they can keep more of the
maintenance paid before it affects their benefits. All maintenance
payments will also be entirely ignored when calculating Housing
Benefit and Council Tax Benefit.
This, combined with changes to Child Tax Credit also announced
today, will lift a total of 100,000 children out of poverty by 2010.
Secretary of State for Work and Pensions Peter Hain
said:
"This will directly lift up to 50,000 children out
of poverty, and make a real difference to the lives of hundreds of
thousands of children. Parents must take responsibility for their
children, but some parents refuse to pay maintenance because the
cash doesn't go directly to their kids. Today's move
will mean that many more of these parents will be willing to pay
maintenance as more of the cash will go straight to their kids
rather than the state.
"This goes beyond commitments made in our White Paper,
quadrupling the amount families can keep to a substantial £40
every single week, making a palpable difference to their quality
of life. More money will flow directly into the pockets of the
families that need it most.
"We have not only arrested but reversed the long-term trend
in rising child poverty, and have made the biggest improvement of
any EU country since 1997. We have lifted 600,000 children out of
poverty in less than eight years, but are not complacent and
recognise that we must do much more to achieve our goal of
eradicating child poverty by 2020. Today's announcement is
another major step towards achieving this."
Parents have a legal and moral duty to take responsibility for
their children. Today's measures reinforce the
Government's commitment to helping parents recognise this
responsibility by allowing more money to flow directly to their
children and so providing a stronger incentive for the parent with
care to seek, and the non-resident parent to pay, child maintenance.
This announcement follows a commitment made in December 2006 in
the Child Maintenance White Paper, which stated that from 2010-11
the Government will 'significantly increase' the amount
of maintenance that parents with care on benefit can keep before
it affects the level of benefit they receive.
Notes to editors
* The current system allows parents-with-care on benefits on the
2003 child maintenance scheme to keep the first £10 a week of any
maintenance paid. After this, their benefit is reduced
pound-for-pound. By the end of 2008, this 'disregard'
will be doubled to £20 a week and extended to include
parents-with-care on benefits on the original child maintenance
system (pre-2003), who are currently not eligible for this. This
is expected to be in place from the same time as when parents with
care will no longer be obliged to apply for child maintenance when
claiming benefits. The disregard will further increase to £40 a
week from April 2010.
* From next year the Government will also ignore all maintenance
payments when calculating Housing Benefit and Council Tax Benefit
(the current disregard is £15 a week).
* The Child Maintenance Bill, published 6 June 2007, contains
measures to reform the policy and delivery of child maintenance,
establishing a non-departmental public body to replace the Child
Support Agency, simplifying the way maintenance is calculated, and
providing tougher enforcement powers to collect maintenance
arrears. Further details about the proposed legislation can be
viewed here: http://www.dwp.gov.uk/childmaintenance/
Website http://www.dwp.gov.uk
NEWS RELEASE