Lone parent employment Andrew Latto Deputy Director, Child Poverty

1. Lone parent employmentAndrew LattoDeputy Director, Child Poverty

2. Aims To reduce the number of children in workless households. To decrease the rate of child poverty. To help parents provide a role model for their children. To increase the confidence, well-being and self-sufficiency of parents. To increase the supply of skills available to employers. To reduce benefit expenditure.

3. Lone parent benefit rules Working under 16 hours and youngest child under 7: Income Support or ESA with Work-Focussed Interviews. If choose contributory JSA, then required to seek work within school hours. Working under 16 hours and youngest child 7-12: required to seek work within school hours, or to claim ESA via medical assessment. Income Support continues for parents of disabled children. Working 16 hours or more: Working Tax Credit (including childcare element) and, if eligible, In Work Credit. Childcare costs disregarded in Housing Benefit and Council Tax Benefit. Early 2012: age lowered to 5, subject to Welfare Reform Bill. Late 2013: Universal Credit, age 5 remains, 16-hour rule removed.

4. Childcare Free childcare offer for 3/4-year-olds and disadvantaged 2-year-olds. Jobcentre Plus pays childcare costs for training, work experience etc. £2 billion from current tax credit/benefit system retained in Universal Credit. Take-up will be higher, e.g. automatic link to housing support. Working Tax Credit currently 70% of up to £175 for one child or £300 for two or more. High % tends to be better for first jobs, high upper limit for those wishing to increase hours. High % tends to be better for school-age, high upper limit for under-3s. Current discussion in context of Welfare Reform Bill.

5. Flexible working Consultation currently underway on ways of extending flexible working (Vince Cable/Iain Duncan Smith). Ends 8th August. Key aspect not so much legislation (although removes stigma of asking) as culture change (parental leave) and hard business case (Employer Group). As now, lone parents in Universal Credit will be able to restrict their availability for work to school hours. Same obligations will apply to couple parents.

6. Employment support • New Deal for Lone Parents closed at the end of March 2011. The funding has been transferred into the Jobcentre Plus Offer. Mostly aimed at those with children under 8. • Lone parents in the Work Programme in 2011 will be: • those who have been claiming JSA for a year or more (mandatory); • those with children 5+ in the ESA work-related activity group (mandatory); • those in England claiming Income Support (voluntary). • Those with children under 13 can restrict activity to school hours.

7. Lone Parent Obligations: evaluation findings Dr. Jo Casebourne, Director of Research Centre for Economic and Social Inclusion

8. Presentation structure • Introduction • Overview of LPO • Evaluation • Methodology • Findings from lone parents with younger children before IS ends • Findings from lone parents with older children after IS • Implications for the future • Next steps

9. Overview of LPO • Changes to lone parent eligibility for IS • Multi phased roll-out for existing IS customers • New and repeat customers • Youngest child aged 12 or over from Nov 2008 • Youngest child aged 10 or over from Oct 2009 • Youngest child aged 7 or over from Oct 2010 • Youngest child aged 5 or over from early 2012 • Additional changes to support LPO • JSA Parent Flexibilities • National roll-out of In-Work Credit

10. Evaluation • Overarching evaluation aim • To explore the extent to which LPO incentivises and supports lone parents to look for and enter paid work • Multi methods evaluation including: • International literature review • Qualitative research with customers and staff • Quantitative survey with customers • Possible impact assessment • In-house analysis of DWP admin data and other data sources

11. Methodology Qualitative destinations study • 202 lone parents with youngest child aged 12-15 • Jan-Mar 2010 • 5 case studies • After IS eligibility ended • 55 staff

12. Methodology Quantitative survey • 2,779 lone parents with youngest child aged 7-8 • May-Aug 2010 • National • In final year of IS eligibility

13. Lone parents with younger children before IS ends

14. Summary of findings: LPs with younger children before IS ends • Barriers to work • This group shows greater levels of need than lone parents in the population • qualifications, mobility, finance • Needs are complex and wide-ranging

15. Summary of findings: LPs with younger children before IS ends Childcare preferences • Current emphasis is on informal childcare (as is the case for other parents) • But there is some use of school-based childcare, and interest in using breakfast/ after school clubs and holiday clubs in the future • Ex-partner also plays an important role

16. Summary of findings: LPs with younger children before IS ends • Moving into work • Most are either looking for work or would like to work in the next few years • Preference is for part-time work (16-29 hours per week) • Work that fits around family commitments and other constraints (e.g. health, transport) • But limited or no recent work experience, lack of skills; limited jobsearch activity • Lone parents feel there is a shortage of appropriate work • Challenge to move into preferred type of work

17. Lone parents with older children after IS

18. Summary of findings: LPs with older children after IS • Complex journeys • Multiple destinations were common since leaving IS • Most complex and difficult journeys involved ESA • Lone parents with health problems in all destinations (ESA, JSA, IB, IS)

19. Summary of findings: LPs with older children after IS Moving into work • Work is positive • Combining work and family could be stressful • Better off between 16-29 hours • Evidencing mini-jobs whilst on JSA complex

20. Summary of findings: LPs with older children after IS • Experiences of JSA • A good understanding of JSA regime • Self-help stage viewed more positively by new and repeat lone parents (than those previously on IS) • Claiming JSA could be uncomfortable/demanding • Involvement of specialist staff delivering to lone parents on JSA beneficial

21. Summary of findings: LPs with older children after IS Experiences of JSA • New and repeat lone parents were not always identified as lone parents • Understood principle of sanctions, less understanding of detail • Reluctance amongst staff to sanction lone parents

22. Summary of findings: LPs with older children after IS • Experiences of ESA • Much less understanding of ESA regime than JSA • Not aware of ESA groups or assessment • Payment gaps as didn’t understand regime requirements • Regime not experienced as coherent process • Lack of understanding of what to do when found fit for work – payment gaps • Face the same health issues once on JSA with less support – should not be treated as new and repeat

23. Summary of findings: LPs with older children after IS • Experiences of other destinations • Disconnected families not an issue • Range of circumstances eg re-partnering • Experiences of remaining on IS • Exemptions from IS • No suggestions people were having children or taking on caring to remain on IS

24. Summary of findings: LPs with older children after IS • Effect of LPO on attitudes to work • Greatest effect for those moved directly from IS to JSA • Dislike JSA regime – a push towards work • New and repeat customers often made redundant and already motivated • ESA customers main short-term focus was health not work • Did not impact on other groups

25. Summary of findings: LPs with older children after IS • Childcare • Preference for informal childcare • Gaps for older children • Special needs • Cost and availability

26. Implications for the future

27. Implications for the future • Personalised support • The diverse and complex needs and barriers of this group of lone parents confirm the need for personalised support • Role of training • Survey indicated a lack of skills and qualifications amongst many lone parents • Participation in training may also be a way of giving experience of formal childcare (where available free) • Childcare • Demand may go up as those with younger children move into work – depends on job

28. Implications for the future • Family-friendly employers • Mixed picture from survey • Suggests that DWP and Jobcentre Plus need to continue to work with local employers to promote family friendly workplaces • Potential role for Child Maintenance Options Service • Survey indicates the important role played by ex-partner in childcare provision • Options Service can provide advice on maintenance arrangements to enhance lone parents’ work options • Wider role includes advice on financial management and debt – also an important issue raised by the survey

29. Implications for Universal Credit • Most want to work 16-29 hours per week, often exactly 16 • This is likely to reflect current system • Will gradual tapering change lone parents’ preferences? • Many respondents were not sure they would be better off in work (40% said this was a big barrier to work) • Universal credit should address this • But this is only one of many barriers • At present, balance between work and family comes under pressure when working 16+ hours per week (i.e. number of hours not just a financial decision)

30. Implications for Universal Credit A barrier to staying in work was ‘finding it hard to adjust to having money coming in every month rather than every week’ • Budgeting support will be important

31. Next steps Further qualitative research • Currently interviewing 60 lone parents in 3 case study areas • Focus on sanctions and JSA regime • Youngest child aged 7 • Report in autumn 2011 Further quantitative research • Follow-up survey in 2012 • Youngest child aged 7-8

32. Any questions? Contact details Dr. Jo Casebourne  0207 840 8347  jo.casebourne@cesi.org.uk

33. Returning to work: what do single parents think? Caroline Davey Director of Policy, Advice & Communications

34. “I’d do anything if it fitted around my hours, because then I’d be happier and less stressed, so it’d be worth it for the employer” “I am too qualified for my current position but due to the lack of flexibility in my career and no access to childcare I am unable to work in a higher paid job and still give my son a stable home life” “When I went to the JobCentre she told me yet again about the cleaning services at the hospital. I’ve got a degree, why would I want to do that?” “It’s more important for me to be in a job, no matter what job it is. I just need to earn money”

35. Context • 1.9 million single parents in the UK • 57% are in work • 44% of single mothers in employment work over 30 hrs/week • Employment rates vary by age of youngest child • 71% work by the time youngest child is 12 • 38% work when youngest child is 2 • Work not necessarily a route out of poverty • 19% of children whose single parent works full-time live in poverty • 25% of children whose single parent works part-time

36. Priorities • Overriding priority: balance work and parenting • Key issues to address: • Childcare • Income – better off in work • Availability of appropriate jobs – flexibility in range of jobs and at range of levels • [For some single parents] Pre-employment support • Genuinely tailored approach

37. Childcare • Challenge of both supply and affordability: • “Most nurseries are shut after 6pm and don’t open before 8am. [This is] no good if you work shift patterns, which in today’s increasingly 24/7 society is fast becoming the norm in many professions” • “I would like a job with more hours but I can’t find one because there are no childcare arrangements for before or after school for my eldest two” • “Childcare’s really expensive…What I’m paying for nursery – even with working tax credits – is still a fortune” • Serious question over impact of (likely) reduced Universal Credit provision of childcare costs support

38. Income • Importance of income • “It’s more important for me to be in a job, no matter what job it is. I just need to earn money” • Combination of in-work costs (including childcare) and low incomes means gains from work can be very marginal • “I used to be paying out as much on childcare as I earned” • Importance of income now as well as prospects for income in the future • “If you pick wrong now that could be the rest of your life spoken for”

39. Jobs • Perception – and reality – that flexible/part-time jobs equate to lower level/lower income • “There is the perception that part time workers do not make the same level of contribution and add the same value as full time staff because we are not there all the time. I think there has been some progress with flexible working, but not enough” • “You should have the option not to dumb down just because you want shorter hours” • “I have now opted to work on a very low salary for the council just because they agreed to give me flexible hours and don’t make me feel like a burden every time I have to take time off for my children”

40. Pre-employment support • Gingerbread provides pre-employment training to single parents who are furthest from labour market • Importance of: • Self-esteem/building confidence • Familiarisation with workplace • Developing skills • Entry-level jobs which can also provide opportunities for ongoing training, development and progression • Not just about getting into a job, but retention and progression

41. Tailored approach • Difference between theory and practice – need for consistent approach within job support that takes account of LPO rules and flexibilities • Recent Gingerbread helpline calls: • Caller has just moved onto JSA from IS, has a child under 11. She is having difficulty with JCP as she wants to restrict to school hours but they say that she has to look for work between 9-5, five days a week. They have also told her that she has to be available to start work within 24 hours. • Caller is on IS and has 14 month old child. Her LP adviser at the JCP has told her that she has to look for work of 16 hours a week and if she does not get a job then he can stop her money. He says that new legislation is coming in that will force her to take any job that he feels she can do regardless of hours.

42. Conclusions • Single parents are different – need genuinely tailored approach to account for different needs, circumstances and aspirations • Overriding priority is to balance work and parenting responsibilities • Money is important! Net gains from work especially after childcare costs – and particular concerns over recent tax credit cut and UC proposals • Need for flexible support and – critically – access to a broader range of flexible jobs

43. “I couldn’t give up work because I’ve worked since I left school. I want to work. It’s about your self-worth”