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Child support and work incentives: Prospective effects of a larger disregard in the Income Support system

by Yulia Kossykh, Ian Walker and Yu Zhu

The primary objective of this research has been to estimate the effect of the £10 a week child maintenance disregard, which was introduced into the Income Support (IS) system in 2003, on the labour market participation rate of parents with care (PWCs).

The secondary objective of this research is to investigate the likely effects of making the £10 disregard larger. The Government announced in the Pre Budget Report 2007, a £20 disregard in IS by the end of 2008, increasing to £40 a week from April 2010. There will also be a full disregard in Housing Benefit and Council Tax Benefit by the end of 2008. This is a key feature in the redesign of the child maintenance system.

June 2008 33 pages 297x210mm

ISBN 978 1 84712 372 5