Monday, May 06, 2019

Labour's 180 degree turn on the responsibility of fathers


On Friday the government announced it will cease applying Section 70 A penalties from April 2020.

Background

"Section 70A of the Social Security Act 1964 requires that the rate of a sole parent’s benefit be reduced for each dependent child for whom the person does not seek Child Support, subject to some exemptions. The benefit is reduced by $22 for each dependent child for whom the client refuses or fails to meet their Child Support obligations. After 13 weeks a further $6 a week reduction may apply. Close to one in five sole parents receiving Job Seeker and Sole Parent Support have these benefit reductions. Reasons include being unaware of the penalties and how to comply and grounds for exemption, and a strong desire to have no contact with the other parent."

From the 1990s the Green Party started to agitate against this penalty. they would argue about women's reproductive rights, the penalising of children etc.

Labour however dug in. Their view was that fathers should provide financially for their children. It should not fall to the taxpayer. The numbers of mothers (and occasionally custodial fathers) who failed to name the father of a child dependent on a their benefit continued to grow. In the early 2000s Labour introduced legislation to increase the penalty. From the parliamentary debates:

Heather Roy: When will he admit that this is just a rort so that fathers can dodge child support, and why should taxpayers always have to pick up the bill?
Hon STEVE MAHAREY: It is a rort, and I have said time and time again in this Parliament that fathers must front up to their obligations, and we will make sure they do, as much as we can.
                                                                    Hansard, August 25, 2004

And later:

“It is not unreasonable to expect that single parents bringing up children on their own identify who in law is the other parent, or to expect that they seek financial support for the child from the other parent. It is not unreasonable to penalise financially those who do not. It is not a new philosophy.” Steve Maharey, Hansard, October 5, 2004

NZ First, represented by Bill Gudgeon also spoke in favour. The penalty was increased.

But 13 years on a new Minister said:

“The most common reason for not naming the parent was often family-violence related and so, keeping that mind, it’s almost like you’re doubly punishing these women and their children. So, we’re not going to allow that to continue.”
                        Carmel Sepuloni, RNZ, November 14, 2017

That is a red herring as the Work and Income Manual states:

“Your benefit payments may be reduced if you don’t legally identify the other parent or apply for Child Support. In some situations you may not need to do this, for example if you or your child would be at risk of violence. Work and Income can tell you more about this.”
                                         
Advice to cabinet said:

“Repealing Section 70a could provide an incentive for clients not to apply for Child Support and establish private arrangements with the other parent. This is because clients would retain their full benefit rate and receive the child support paid privately.”
                  MSD report to Carmel Sepuloni, November 10, 2017

And that has always been the problem.

Nevertheless Labour has been persuaded, along with NZ First (also traditionally of the view  that a father should be financially responsible) by the Greens to drop the penalty at a cost of $113.4 million over 4 years. But that is only estimated on the current number of mothers who aren't naming the father.

In the future, as there is no longer an incentive to name him (or disincentive not to) many more fathers will never pay child support for their children. 


1 comment:

Jim Rose said...

Can't see how this government can claim any successes on its child poverty crusade it is not going to spend serious money on anything