Cash help ‘outstrips’ cost of children

January 30, 2004 in Adults

Up to one in four small families now receive more in
child-contingent support from the government than their children
actually cost, according to a new study.

Researchers from the Institute for Fiscal Studies say that
government support for children has grown by more than half in the
past four years.

The report found that since 1975 “child-contingent support” –
income that families receive because they have children – has more
than doubled in real terms from £10bn to £22bn a
year.

The fastest rise has been since 1999, almost all of it due to
policy changes.

Between 10 per cent and 25 per cent of families with one or two
children may now be receiving more financial support than the
minimum cost of supporting their children, says the study. Child
contingent support favours the oldest child so helps small
families.