HC Deb 12 April 1994 vol 241 cc162-3W
Mr. Rooker

To ask the Secretary of State for Social Security what account the Child Support Agency takes of the earnings of a second wife in respect of a father's maintenance payments for children of his first marriage where the second wife has young children of her own first marriage for whom she does not receive maintenance from their father.

Mr. Hague

The calculation of the amount of maintenance an absent parent is required to pay is based on his own income and essential expenditure. The assessment takes account only of a new partner's income to the extent that she is able to contribute to the costs associated with bringing up children of the new relationship, which are otherwise taken into account in full against the absent parent's allowable expenses.

The only other way the income of a new partner affects the assessment is in the calculation of protected income. This calculation looks at all of the income and outgoings of the new family to ensure that the payment of maintenance does not reduce their resources below a prescribed level.

Mr. Madden

To ask the Secretary of State for Social Security what plans he has to require the Child Support Agency to take account of child-minding fees when assessing maintenance; and if he will make a statement.

Mr. Hague

Under the formula which the agency uses to calculate maintenance, the basic maintenance level for children already includes an amount to recognise their need to be cared for by an adult. This amount depends on the age of the youngest child to be maintained and reduces as that child grows older.

There is no specific allowances for child-minding fees against the income of an absent parent who is bringing up children, but the formula is designed to ensure that all absent parents keep a substantial proportion of their net income after paying maintenance so that they can meet essential expenditure.

Country Expenditure on Social protection (millions) in national currency Expenditure per thousand population (millions) Expenditure on Social Protection (millions) converted to pounds sterling at March 1994 exchange rates Expenditure per thousand population (millions) converted to pounds sterling at March 1994 exchange rates
Canada 127,481 4.8 62,216 2.3
USA 832,000 3.3 559,140 2.2
Japan 50,944,000 412.3 331,106 2.7
Australia 49,187 2.9 23,367 1.4
Austria 450,327 58.3 25,791 3.3
Denmark 240,898 46.8 24,581 4.8
Finland 39,166 7.9 4,765 1.0
France 1,822,000 32.3 214,353 3.8
Germany 654,750 10.6 263,258 4.3
Italy 314,896,000 5,453.0 129,480 2.2
Netherlands 165,206 11.0 59,135 3.9
Norway 191,559 45.0 17,688 4.2
Portugal 1,446,275 146.7 5,623 0.6
Spain 10,525,000 270.2 51,135 1.3
Sweden 462,359 54.0 39,383 4.6
United Kingdom 126,757 2.2 126,757 2.2

Sources: Quarterly National Accounts No. 4, 1993, OECD.

Social Protection Expenditure and Receipts 1980–1991, Eurostat.

Note: Figures are only available for OECD countries compiling national accounts on a quarterly basis and are based on countries' own national accounts data without adjustment for national definitions to System of National Accounts standards. No direct comparisons should therefore be made between the countries as the data provides only an approximate indication of magnitude.