In a letter to John Hutton, Secretary of State for Work and Pensions, Christian charity CARE has told the government that it needs to think very carefully before implementing new proposals for the treatment of maintenance payments for benefit purposes.
Following a report by Sir David Henshaw on child support the Secretary of State for Work and Pensions, John Hutton, announced on 24 July 2006 that the government had accepted Sir David's recommendation that the Child Support Agency should be wound-up and replaced by a new body. A government White Paper is promised for the autumn.
Sir David Henshaw was asked by the Secretary of State to redesign the child support system with the aim of ensuring that parents take responsibility for their children when they live apart.
In the report published in July he proposed that the Child Support Agency (CSA) should be wound-up. Parents on benefit would no longer be forced to use the CSA. Parents would be encouraged to make voluntary arrangements whenever possible. Allied to this proposal was a proposal that in most cases benefits should not be reduced by the receipt of maintenance payments.
CARE accepts that the maintenance payments proposal would encourage parents who live-apart to support their children. The charity says, however, that this should not be the only consideration.
CARE notes that Henshaw recognises that theoretically his proposals could "lead to an increase in relationship breakdown" but that his report concludes that this is unlikely. CARE, however, believes that the risks of such breakdown are very real. It also believes that, if implemented, the Henshaw proposals would adversely effect family formation, leading to a greater number of couples "living together apart".
Dan Boucher, Director of Parliamentary Affairs, said, "CARE does not believe that the proposals are in the best interests of the majority of poor children. A balance has to be struck between the amount paid in benefits to parent families in receipt of maintenance and to those who do not including lone parent families, widow/widower families and two parent families who have to maintain their children out of their own income. There should be no bias in the system which would encourage couples to live apart."
Don Draper, a consultant on tax and family issues said, "The tax credit and benefit system is already heavily biased in favour of couples who live apart even after housing costs are taken into account. There is increasing anecdotal and statistical evidence that this is affecting family life. The Henshaw proposals would bias the system even more in favour of couples who live apart. Tax credits and benefits should depend on a family's financial needs and not on whether its income is earned by a parent with care or by a non-resident parent."
A copy of CARE's letter to the Secretary of State is available on the CARE website www.care.org.uk/Publisher/Article.aspx?id=57994
