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In most developed countries, children in lone parent families face a high risk of poverty. A partial solution commonly sought in English-speaking nations is to increase the amounts of private child maintenance paid by the other parent. However, where lone parent families are in receipt of social assistance benefits, some countries hold back a portion of the child maintenance to reduce public expenditures. This partial ‘pass-through’ treats child maintenance as a substitute for cash benefits which conceivably neutralises its poverty reduction potential. Such neutralising effects are not well understood and can be obscured further when more subtle interactions between child maintenance systems and social security systems operate. This research makes a unique contribution to knowledge by exposing the hidden interaction effects operating in similar child maintenance systems across four countries: the United Kingdom, United States (Wisconsin), Australia and New Zealand. We found that when child maintenance is counted as income in calculating benefit entitlements, it can reduce the value of cash benefits. Using model lone parent families with ten different employment and income scenarios, we show how the poverty reduction potential of child maintenance is affected by whether it is treated as a substitute for, or a complement to, cash benefits. [ABSTRACT FROM AUTHOR]

The article argues that children's allowance could be instituted in the United States that would decrease poverty and welfare participation while not costing the government any additional expenses. A children's allowance is a universal grant provided to all families, regardless of income, on the basis of the number of children they have. Basically the programs operate the same worldwide. Children's allowance's are usually in the range of 5% to 10% of a country's average gross production wage. Benefits are awarded through monthly checks, weekly checks, or annual tax credits. Eligibility is usually tended to all children through compulsory school age, although in some countries, such as Great Britain, benefits begin with the second child. The policy changes proposed in this article must be carefully delineated because children's allowances with different features would have widely different effects. The proposal is to completely eliminate the income tax deduction for children, and replace it with a universal children's allowance for each unmarried child who is currently eligible to receive the tax deduction.

The increased frequency of divorce, separation, and nonmarital childbearing over the past several decades has contributed to the rise of parents not living with their children in the same household. These nonresident parents are typically fathers, many of whom are obligated to share the economic responsibility for their children across households by paying child support. This study uses Luxemburg Income Study (LIS) datasets from the year 2013 to study the characteristics of fathers paying support and the relationship between child support and poverty among fathers (and mothers) in Finland, the UK, and the U.S. Results show that characteristics of fathers paying support were generally similar across countries. The amounts paid were lowest in Finland and highest in the U.S., as expected. For the poverty effects, few child support payers fall into poverty because of the amount of child support they pay in any country, but the increase in poverty rates due to paying support is clearly higher in the U.S. than Finland or the UK. More single mothers are drawn out of poverty by the receipt of child support in Finland than in the other countries, partly because the government guarantees child support. Finally, child support is an anti-poverty policy in all countries: the decrease in poverty among single-mother families from receiving support is larger than the increase in poverty among fathers paying support. • In the U.S., the amount of child support paid is higher than in Finland or the UK. • In all countries unpartnered fathers are the largest group of child support payers. • Paying support increases poverty more in the U.S. than in the other countries. • Child support lowers poverty more among mothers than it raises it among fathers. [ABSTRACT FROM AUTHOR]