Select Committee on Social Security Minutes of Evidence


Case Study 3

THE SITUATION:

  The NRP is out of work and claims Job Seeker's Allowance. The PWC earns £300 per week. The PWC receives £14.40 Child Benefit.

  The PWC has their son for 4 nights per week, while the NRP has him for the other 3 nights.

  Each parent is assumed to spend more for the first night of care than subsequent nights. They spend a total of £65 per week on their son.

THE RESULT:

  Although she earns a respectable amount and he is on benefits, the PWC only spends one-and-a-half times on their son as much as him out of her earned income, because she receives help from the DSS in the form of Child Benefit.

  The amount he retains is unsustainable. He is completely abandoned in his attempts to care for their son. Neither the State nor the other parent provide any assistance whatsoever. He would be £15 better off not caring for his son.With a fair formula, she would pay about £19 for his 3 days. (3/7 of 15 per cent of £300). Of this, £10 would be disregarded leaving him and his son better off, while the rest would reduce benefits spend.


 
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Prepared 19 October 1999