Asked by: Adam Thompson (Labour - Erewash)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps she is taking to ensure that there is clear understanding within (a) her Department and (b) employers of which payments and benefits from employers are treated as income for the purposes of child maintenance calculations.
Answered by Andrew Western - Parliamentary Under-Secretary (Department for Work and Pensions)
CMS staff have a clear understanding of what is classed as income from training and internal guidance.
With regards to employers, income included in the basic child maintenance calculation is the same as that used in HMRC calculations of taxable income. There is therefore no requirement for employers to make additional or separate reports of income for child maintenance purposes as the CMS take this information directly from HMRC, and therefore no requirement for employers to understand what constitutes income for child maintenance purposes. In cases where the CMS request ongoing child maintenance payments are deducted directly from salary, this is done by issuing a Deductions from Earnings Order (DEO). When a DEO is served, the CMS provides the employer with the precise figure to be deducted.
However, this does not cover all income that an employer may pay an individual. Where a paying parent is the director of their limited liability company, they are legally an employee of that company and are treated the same as any other employee for child maintenance purposes but may receive additional income as a result of their employment status, for example, dividends, which are not routinely included in the standard child maintenance calculation. In these circumstances, this income is only included within the calculation if the receiving parent in the case applies for a variation.
Caseworkers are fully supported in processing variation applications through training and internal guidance.
Asked by: Adam Thompson (Labour - Erewash)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment she has made of the adequacy of the financial support available through University Credit for students in full-time higher education with dependents.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
Whilst students are not normally entitled to Universal Credit (UC), if they are responsible for a child, either as a single person or as a couple there is an exception. Depending on their circumstances, they may also be eligible for additional Universal Credit elements, including for children.
Special Support Loans or Grants may be awarded to lone parent students who are in receipt of benefits, this is disregarded in calculations for UC. Where a student receives a grant only, some of the income may be disregarded over and above the £110 limit in each assessment period if the payment is for childcare costs.
Asked by: Adam Thompson (Labour - Erewash)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what discussions she has had with the Secretary of State for Education on financial support available for mature students with caring responsibilities.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
Successive Governments have held the principle that the benefit system does not normally support full-time students. Rather, they are supported by the educational maintenance system. Part-time students can receive Carer’s Allowance if they meet the entitlement conditions. Certain students when they have additional daily living costs that are not met by the student finance system may be eligible for Universal Credit (UC) and carer element of UC.
If a student with the consent of the educational establishment ceases the course temporarily to care for someone and they are not eligible for a student grant or loan, they may be eligible for UC for that period.
The Department works very closely with other departments and stakeholders, to help ensure young carers get the help and support they need and deserve. How we can best identify and support young carers to combine study with their caring responsibilities where they can, including taking account of changes in the education system, will form an important strand of our future work.