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Proceeding contribution from Baroness Hollis of Heigham (Labour) in the House of Lords on Wednesday, 7 May 2008. It occurred during Debate on bill on Child Maintenance and Other Payments Bill.


Child Maintenance and Other Payments Bill

My Lords, I have a lot of sympathy with this amendment for three very obvious reasons. First, this is an even speedier way to help on the problem of child poverty, although, admittedly, that would be in families where the father, or the non-resident parent, is rather better off than on average. Secondly, the Treasury argument about work incentives is completely psychologically the wrong way around. The research from Alan Marsh has shown that reliable maintenance at whatever level acts as a form of privatised family credit. It is the reliability and security of that which allows the lone parent to take the risk of going into work with all the uncertainties that come with it. Therefore, the higher the level of child support payments, provided that they are regular, the more likely a lone parent is to go into work, not less likely. Not for the first time, and I am sure not for the last time, the Treasury has got it completely, perversely, back to front. I hope that my noble friend can help me on my third point. I am not sure how this will work exactly. As far as I can see, the whole of the maintenance is to be paid over, whether voluntary or statutory. Then there is an expectation that if it exceeds £40, the lone parent will voluntarily declare this in some way so that it is then recovered back from the benefit bill. Frankly, that beggars belief and I do not think that it will happen. Under a voluntary system, no way will the mother say and no way will the department know or be informed unless someone perhaps is malevolent about this—possibly the non-resident parent who is seeking to cap his payments. That will not happen. If it is under the statutory system, that is all very well, but it will put an additional responsibility on Jobcentre Plus staff. It is worth bearing in mind that at the moment NRPs who receive JSA are supposed to pay £5 a week or thereabouts to the parent with care from their benefit. It should be fairly straightforward: when the NRP gets his benefit, it should be docked and should go across. Does it happen? No, it does not; almost never. Why? Very simply, it is because, perfectly understandably, jobcentre staff do not, when they are interviewing someone coming in for JSA, ask a person whether he is obliged to pay child maintenance. Why? Again, perfectly understandably, their priority is to get him into work in the labour market and they do not deal with the secondary objectives of ticking boxes and asking whether he should be paying maintenance or whether £5 should be deducted? Jobcentre staff do not focus on that at all. One of the biggest reasons for the number of lower paid or poorer parents with care not receiving benefit is because their ex is also on benefit and the money is not coming across, because Jobcentre Plus staff do not, cannot and will not handle the issue. Why, if they do not handle it now, do we think that they will under the new and more complicated system? Again, that defies belief. I hope that my noble friend can explain precisely the administrative steps, because I think that this is pie in the sky.


Secondary information

Type
Proceeding contribution
Reference
701 c664-5 
Session
2007-08
Chamber / Committee
House of Lords chamber
Subjects
Council tax benefits Child support Children Contracts Costs Advisory services Arrears Housing benefit Fraud Earnings rules Maintenance Low incomes Parents Poverty Payments Lone parents Social security benefits Child Maintenance and Enforcement Commission
Legislation
Child Maintenance and Other Payments Bill 2006-07 to 2007-08
Link
View this Proceeding contribution on www.publications.parliament.uk