Child maintenance payments stop affecting benefit from April 2010

Child support payments will no longer be taken into account when calculating benefit entitlement from this April.

Under the current system, parents on benefit are allowed to keep the first £20 of child maintenance per week before their benefits are reduced.

The new scheme will mean that all the money paid to the parent with care will actually go to the child.

Previous Government schemes have seen the money paid in excess of the £20 go directly to the Government and not the family.

The changes are an attempt at lifting 100,000 more children out of poverty.

Secretary of State Yvette Cooper said: “We want to do more to help families to get by during the recession. This will mean that money meant for children actually goes to the children. And it will help families sort out their own extra payments too whenever they can, without getting tied up in benefit changes.

“This is one more step in our fight against child poverty as we move towards enshrining our commitment to eradicating child poverty by 2020 in legislation.”

Chief Executive of single parent charity Gingerbread Fiona Weir said: “Child maintenance makes a real difference to children’s lives, helping to pay for basics such as shoes and nutritious food, and for important extras such as school trips.”