Child Support, Pensions and Social Security Bill

Part of the debate – in the House of Lords at 7:00 pm on 8 May 2000.

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Photo of Lord Higgins Lord Higgins Conservative 7:00, 8 May 2000

As I said, I should like to consider that point. I am saying that, from my personal experience, it is certainly a relevant consideration. Of course, the argument the other way concerns the complications that the noble Baroness is constantly arguing against. I do not think that because of the second and third order effects, one should not take into account the first order effect. That is what this amendment is about.

I turn now to what is perhaps the most difficult point to put in politically correct terms. It concerns the point referred to by the noble Baroness who raised the question of the contribution made by the parent with care. I certainly think that one can take that into account. We are not saying that the contributions she makes--whether in kind or in money--should not be taken into account. On the contrary, we think that is so. Amendment No. 26 seeks to deal with that particular point. It states, in particular, that however great her income may be, the contribution of the absent parent should not fall below 50 per cent of what is the formula. We are seeking to adjust that. I gather that a similar system is operated in Australia.

My final point before I sit down--I have spoken far too long--concerns the issue of earned and unearned income. I take the Minister's point that we are not proposing at the moment to take into account the unearned income of either the parent with care or the absent parent. Of course, there has always been a long-running debate about whether one should call it "unearned" income. I prefer to use the expression "investment" income. I presume that in the context of this amendment we are talking about investment income.

The noble Baroness raised the possibility that perhaps what is not being taken into account is not investment income but income that is unearned and not announced by one of the partners to the agreement. However, there is a strong argument for either accepting the amendment and taking into account both kinds of investment income; or, even if one did not accept the amendment, taking into account the investment income of the absent parent. I do not understand why that is not happening at the moment.