UK Parliament / Open data

Welfare Reform Bill

Proceeding contribution from James Purnell (Labour) in the House of Commons on Tuesday, 27 January 2009. It occurred during Debate on bills on Welfare Reform Bill.
I am happy to do so. Indeed, in the next few days the Government will publish the refreshed child care strategy, which looks at that issue. My hon. Friend will also know that the Government have invested significant sums in respite care for parents caring for disabled children. However, she highlights an important issue—the extra costs for child care for children who are disabled. Child maintenance is important because it gets more money to children whose parents have divorced or separated. It has already taken 100,000 children out of poverty. If all non-resident parents paid what they owed, that number would double and another 100,000 children would be lifted out of poverty. That is why the Bill proposes some changes to strengthen the regime by which we collect money. The people who suffer most when parents separate are mothers. Mothers are three times more likely to be in poverty after separation than their husbands. Research out this week shows that whereas mothers' incomes fall, those of fathers often rise. That is why making sure that fathers—not always, but in particular—live up to their responsibilities is so important. We will do that in two ways through the Bill. First, in benefit calculations we will completely disregard child maintenance payments. We believe that that is the right thing. It means that instead of the money going to the taxman, it goes to the child. In addition, it will give a real incentive to parents to make sure that they know that the money is going to their children. We therefore think it will increase payments. There is a minority of non-resident parents who are determined to do everything they can to avoid their responsibilities. They hide their money, they become self-employed and they employ expensive accountants. One of the ways in which we believe we can hit those parents in a way that gives them an incentive to pay is by saying that we will remove their passports or driving licences if they fail to live up to their responsibilities. Of course, the point is not to take away people's passports or driving licences. It is to make sure that they comply with their responsibilities. Where this has been tried—for example, in Australia and in the US—it has resulted in a significant increase in child maintenance payments, in particular in the few days before people are due to lose their driving licence or passport. We therefore think it is an important measure to introduce.

About this proceeding contribution

Reference

487 c183-4 

Session

2008-09

Chamber / Committee

House of Commons chamber
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