Case Study 1
THE
SITUATION:
The non-resident parent (NRP) earns £200
per week (net). The parent with care (PWC) earns £200 per
week (or more). The PWC receives £14.40 Child Benefit.
The PWC has their daughter for 4 nights per
week, while the NRP has her for the other 3 nights.
There is a significant cost in looking after
a child at all (fixed costs), and the cost per night after that
is less significant. Therefore, each parent is assumed to spend
£17 for the first night of care, and an extra £8 for
each subsequent night. So they spend a total of £74 per week
on their daughter.
THE
RESULT:
The PWC spends £9.60 of £200 income
on the child per week. The NRP spends £50 of £200 income
on the child. (This is £20 more than he would pay in Child
Support if he never saw the child) The reasons are:
— The PWC does not support the child
while she is the "absent parent" (Friday to Sunday).
— The PWC continues to receive the
Child Benefit even while she is the "absent parent"
(Friday to Sunday).
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