§ Mr. BayleyTo ask the Secretary of State for Social Security what would be the cost in the 1996–97 financial year of providing a child support disregard of(a) £5 per week, (b) £10 per week and (c) £15 per week; and what are the assumptions upon which these three costings are based. [23331]
§ Mr. Andrew MitchellIt is estimated that the cost of introducing a £5 maintenance disregard in 1996–97 would be around £50 million; the cost of a £10 disregard would be around £90 million; and the cost of a £15 disregard would be around £120 million. The annual cost of a disregard is likely to double over time as the Child Support Agency caseload increases.
These estimates apply the disregard to child support maintenance and other forms of child maintenance, and assume that the disregard would apply to lone parents and parents with care who have entered into a new partnership. Other assumptions include the number of full child support assessments where the parent with care receives income support, and rates of compliance by absent parents.