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Hi, thank you for your question. Firstly, as they are unmarried it is her decision whether to register him on the birth certificate or not. However, even if he is not registered on the birth certificate, the child will have a right to a relationship with her father but your daughter can reasonably restrict this if there are any welfare or child protection concerns - such as the drug use you have mentioned. If they cannot reach and agreement in relation to the arrangements directly, he will be entitled to pursue a court application for a child arrangement order but the concerns will be assessed by the court prior to making any orders.
Furthermore, she will be entitled to seek child maintenance from him which will be based on his gross salary and how often (on average) the child stays overnight with him. This is your daughter's right to claim and an obligation on him to pay and is not in exchange for any contact arrangements.
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