09 October 2007 – 50,000 more children lifted out of poverty 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 for 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: www.dwp.gov.uk/policy/child-maintenance/
