Media Release
Liable Parents Foot 7 Percent Of DPB Bill
Monday, October 12, 2009

In 2008 the Inland Revenue Department transferred $136 million from collected child support payments to the consolidated fund. This money offsets what is paid to custodial parents on benefits.

Welfare commentator Lindsay Mitchell says this is a small percentage of what custodial parents are costing the state. "In 2008, the basic DPB bill was $ 1.479 billion. However, when other top-ups like the accommodation allowance are added, the all-up bill exceeds $2 billion. The transfer from IRD represents 6.8 percent of the total."

"Forty five percent of liable parents (58,423) have annual incomes below $20,000 and pay only the minimum rate of $2.19 per day per child. During April this year 35,675 liable parents, usually fathers, paid child support from their own benefit income."

"DPB claimants are required by law to file a child support application or face a penalty for not doing so. At June 2009 no application had been filed for 19,400 children included in a sole parent benefit."

Mitchell said the traditional political response is to demand fathers face up to their financial responsibilities. "However, the child support problem is only a spin-off from the DPB system. If there was no DPB, which acts as an incentive to single parenthood, there would be nowhere near the current number of liable parents - 130,762. The state has effectively replaced many fathers who are nevertheless expected to pay the bills for children they often have no role in raising. "

"As a general rule fathers should take responsibility for their children but the state has to stop skewing the morality of this by putting up cash rewards to prospective single mothers."

"Before the DPB it was difficult for mothers to chase maintenance through the court system and fathers ran the risk of conviction and imprisonment for reneging on a court order. But that was forty years ago. Today, avoiding becoming pregnant and giving birth is much simpler. And in respect of relationship breakdowns, women, who now make up half of the workforce, are much better equipped to handle being a breadwinner and men are much better equipped for sharing parenting."

"Until the DPB is reformed to suit the times, the taxpayer will continue to foot the lion's share of its cost."

ENDS

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