Case Study 3
The situation
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The PWC has their son for 4 nights per week, while the NRP has him for the other 3 nights. Each parent is assumed to spend more for the first night of care than subsequent nights. They spend a total of £65 per week on their son. |
The NRP is out of work and claims Job Seeker's Allowance. The PWC earns £300 per week. The PWC receives £14.40 Child Benefit.The result
Although she earns a respectable amount and he is on benefits, the PWC only spends one-and-a-half times on their son as he does out of her earned income, because she receives help from the DSS in the form of Child Benefit.
The amount he retains is unsustainable. He is completely abandoned in his attempts to care for their son. Neither the State nor the other parent provide any assistance whatsoever. He would be £15 better off not caring for his son.
With the Fair Shares formula, she would pay about £19 for his 3 days. (3/7 of 15% of £300). Of this, £10 would be disregarded leaving him and his son better off, while the rest would reduce benefits spend. She would still be vastly better off than he would, of course.
This is an HTML transcription of an article written in September 1999, hence the benefits rates, the references to the White Paper, etc.