§ Mr. PicklesTo ask the Secretary of State for Social Security how many children living with parents with care will under the new formula in the Child Support, Pensions and Social Security Bill be entitled to reduced support; and what the average loss for each child will be. [106571]
§ Angela EagleOverall, more than 1 million children will be better off as our reforms take effect. If all existing cases moved to the new scheme today, we estimate that, where the non-resident parent is in work, around 350,000 parents with care, with around 500,000 children, would have a lower assessment. The average reduction for parents with care would be around £17 a week in total, which equates to around £11 per child.
However, because of the introduction of a maintenance premium in Income Support and the 100 per cent. disregard of maintenance in Working Families Tax Credit, around 85 per cent. of children will be better off at the point they first come to the CSA than they would have been under the old arrangements. In the remaining cases, although assessments may be lower under the new scheme, we will get more of what is due actually paid—compliance is expected to increase to 80 per cent. or more, compared with 66 per cent. now—so the difference in cash terms will not be so marked. Also, changes in liability for existing cases will be phased in.
Notes:
1. New scheme maintenance modelled on August 1998 5 per cent. scan of Child Support Computer System.
2. Caseloads calibrated to forecast 'A' day levels, and rounded to the nearest 10,000. The average change in maintenance entitlement is rounded to the nearest 50 pence.