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Child support puts parents off work

1 min read Early Years Social Care
Government plans to raise the amount of child support that is disregarded when calculating income support will result in lone parents' income increasing dramatically.

But the move, announced by Chancellor Alistair Darling in last year's Pre-Budget Report, is also set to reduce single parents' incentives to find work.

A Department for Work and Pensions' study of the policy, released last week, investigated the possible impact of increasing the child support "disregard" in income support calculations from £10 a week to £50.

Sir David Henshaw proposed such an increase in his review of child support arrangements. Darling then announced the introduction of a £20 disregard in income support by the end of 2008, increasing to a £40 disregard from April 2010.

The Child Support and Work Incentives report found that by increasing the disregard from £20 to £50, the average amount of child support paid by non-resident parents would rise from £18.30 to £19.50. But the impact on income support payments would raise the parents' income from £9.70 to £17.10 a week.

"This substantial increase gives rise to an adverse effect on lone parents' incentives to work," the report said.

- www.cypnow.co.uk/doc.


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