Reengineering the Child Support Scheme: An Australian Perspective on the British Government's Proposals

Abstract

After years of problems with the Child Support Scheme in Britain, the Government has decided to attempt reform again, less than four years after a previous major change was implemented in 2003. The author evaluates these reform proposals, drawing upon his experience in leading a recent major review of child support policy in Australia. While many of the reform measures offer a sensible way forward for child support policy, Britain risks going backwards in terms of community acceptance of the child support obligation. The Government needs to consider the likely impact of its policy settings on private agreements about child support. Ways are proposed both to protect the Treasury and to promote the wellbeing of children by adopting different policy settings that ensure the resident parent has an incentive to bargain for the level of child support required by the new formula. The new formula itself is evaluated in the light of the international research on the costs of children. Ways are also suggested for developing a co‐ordinated approach across government to the provision of support services for parents who do not live together.