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Social Security (Lone Parents and Miscellaneous Amendments) Regulations 2008

rose to move, That the Grand Committee do report to the House that it has considered the Social Security (Lone Parents and Miscellaneous Amendments) Regulations 2008. The noble Lord said: The purpose of the regulations is to implement new arrangements for lone parents with older children who can currently claim income support solely on grounds of being a lone parent. It is a requirement that I confirm to the Committee that the provisions of the regulations are compatible with the European Convention on Human Rights, and I am happy to do so. The new arrangements will mean that instead of continuing to receive income support until their youngest child turns 16, those who are able to undertake paid work may claim jobseeker’s allowance when their youngest child reaches the age of seven, and will be required, with support and assistance, to look for paid work that is appropriate to their individual situation. Lone parents who have a disability or health-related condition that limits their capability to work may be able to claim employment and support allowance. To support these lone parents we have included amendments to the Employment and Support Allowance Regulations so that eligible claimants receive the work-related activity component from the start of their claim. The decision to place the age threshold at seven was based on the principle that, by this age, these children would be settled in an established education routine and any disruption caused by the lone parent entering employment would be minimised. We propose to introduce the change initially for lone parents making a new or repeat claim who have a youngest child aged 12. The changes to existing claims will be phased in to ensure a smooth transition, starting with lone parents with a youngest child aged 14 from March 2009. The phasing will affect lone parents with a youngest child aged 10 from October 2009, and those with a youngest child aged seven from October 2010. This stepped approach will allow Jobcentre Plus to provide more support in helping lone parents make the transition between benefits and a move into employment. The measures are consistent with the Government’s approach that people should make full use of the support that is available to them and from which they can benefit to lift themselves and their families out of poverty. On this basis, the Government are committed to the principle that, once children are older, lone parents who are able to do so and are claiming benefits should be expected to look for paid work. These regulations are intended to help lone parents move into paid employment. The Government believe that these measures are a balance between providing financial and other assistance to support families and the wider responsibilities to lift individuals and children out of poverty. The Government have consulted widely on these regulations, and after careful consideration of the views put forward by individual respondents and lone parent voluntary organisations and the views of Social Security Advisory Committee, have decided to lay the proposed legislation before Parliament, with clear provisions and safeguards to ensure that vulnerable lone parents are protected. The Government’s proposals do not apply to those lone parents who are entitled to income support on other grounds. For example, lone parents who are in receipt of carers allowance, those who are fostering and lone parents who have a child for whom the middle or highest rate care component of disability living allowance is payable will remain eligible for income support. The proposals will, however, apply to lone parents claiming income support and educating their children at home. The Government recognise the right of a parent to choose to home educate their children but do not provide them with the funding to do so. Lone parents who are currently claiming income support receive their benefit solely based on their status as lone parents, not as home educators. To make sure that the welfare of children is not compromised by these changes, the regulations also make lone parents a vulnerable group, so the jobseeker’s allowance hardship regime may apply in certain circumstances. Although we want to apply sanctions only when absolutely necessary, sometimes it is necessary to use compulsion to encourage people to acknowledge their responsibilities and make sure that those who can work do not opt out. Provided that lone parents meet the conditions of eligibility for jobseeker’s allowance they will not be sanctioned. When a sanction is applied, no lone parent who is entitled to a hardship payment will be subject to a sanction of more than 40 per cent of their personal benefit allowance. The regulations will include transitional protection for lone parents who receive income support and who are full-time students, undertaking a full-time course of training on the new deal for lone parents, or on an approved scheme which meets the objectives of the new deal for lone parents. We propose that lone parents in these circumstances will remain entitled to income support until their youngest child reaches the relevant age in force at the time they commence their studies, or the end of the course, whichever is the sooner. Currently, lone parents claiming income support are required to attend a work-focused interview at six-monthly intervals. To provide opportunities to prepare and support lone parents for the change in their last year of eligibility for income support, the regulations include the introduction of mandatory work-focused interviews on a quarterly basis. The changes form part of the Government’s ongoing package of welfare reform and strategy to eradicate child poverty. In Budget 2008, the Government invested an extra £950 million in measures to continue to tackle child poverty. More than one-third of children in lone-parent households live in poverty. Fifty-eight per cent of children in workless lone-parent households live in poverty. This figure decreases to 19 per cent when the lone parent works part time, and to 7 per cent if the lone parent works full time. The Government believe that the regulations create the right balance between providing financial and other assistance to support families, and their wider responsibilities to lift individuals, families and children out of poverty. To delay implementation, as some have suggested, would mean that lone parents who can undertake paid work may not take up the assistance available to lift themselves and their families out of poverty. Of course, in addition to the financial return, paid work provides far-reaching social, health and personal benefits for both the lone parent and the children in their household. The regulations are intended to open the opportunities of paid work to more lone parents and support them to have a better standard of living for themselves and their families. We know that some of our customers face greater barriers in obtaining paid work than others, especially parents who may have extra challenges because of their children’s needs. To recognise this, the Government have provided extra support to lone parents to assist them to find and keep a job and to progress once they have settled into employment. Support to help lone parents find work includes the New Deal for Lone Parents, which offers access to a specialist Jobcentre Plus personal adviser and a range of additional services such as extra financial support and access to training. Since its introduction in 1998, the New Deal for Lone Parents has helped more than half a million lone parents to find work. In-work credit is now available nationally to help lone parents make the transition into employment, as well as help sustainability and progression in work. This is an additional payment of £40 a week—or £60 in London—for 52 weeks to lone parents who leave benefits for work of at least 16 hours a week. Lone parents are also able to access help when they are settling into their job. Jobcentre Plus can provide financial help to overcome any unexpected financial barriers which might otherwise prevent them remaining in paid work. Lone parents can also access in-work advisory support provided by Jobcentre Plus Advisers to help resolve any difficulties and guide individuals towards any support needed, such as skills and training. Some stakeholders have raised concerns about the availability of childcare. We have substantially improved childcare options for working families. More than £3.5 million a day supports lower and middle-income families with their childcare costs through the tax credit system. We have more than doubled the availability of childcare provision in England since 1997, with the stock approaching 1.3 million places. As a devolved issue, the Scottish and Welsh Governments have in place childcare strategies which aim to extend access to high-quality, affordable and flexible childcare. The Childcare Act 2006 places a duty on local authorities in England and Wales to secure, so far as reasonably practicable, sufficient childcare to meet the requirements of parents in their area who require childcare in order to work or to undertake training or education to prepare for work. A key element of this in England is extended schools, offering affordable, school-based childcare on weekdays between 8 am and 6 pm, all year round. More than 14,230 schools are already offering the core extended services. We recognise that lone parents who do not have the support of a partner may require extra help in balancing the needs of their families and looking for paid work. The regulations give Jobcentre Plus staff additional flexibility to help and support lone parents who are actively seeking work while often facing challenging circumstances. Importantly, Jobcentre Plus staff must consider whether it was unreasonable for the person to stay in a job or to take up a job because appropriate affordable childcare was not available. That may help lone parents facing particular circumstances, such as those who educate their children at home. It is clear that the current global economic climate means that we shall face challenging times. It is important that we do not repeat the mistakes of previous slowdowns and allow people to slip into long-term inactivity. This is bad for the individual and their families, trapping them into dependence and poverty. The labour market is dynamic, with millions of moves between employment and unemployment every year. Job opportunities will continue to become available; for example, there are around 600,000 job vacancies in the economy. Our active labour market policies will ensure that lone parents do not become further detached from the labour market and are well placed to benefit from current jobs and other opportunities as the economy picks up. I firmly believe that the regulations will result in more people obtaining a better life for themselves and their families and will lift more children out of poverty. The regulations will make sure that the right help and support will be available for lone parent customers who are able to undertake paid work but often face challenges to do so. At the same time, we will ensure that those customers for whom work is not an option are supported in a way that best suits their circumstances. The Government believe that the additional flexibilities to jobseeker’s allowance contained in the regulations, along with the operational safeguards and Jobcentre Plus guidance and training, offer protection for all lone parents, particularly the most vulnerable. I commend the regulations to the Committee. I beg to move. Moved, That the Grand Committee do report to the House that it has considered the Social Security (Lone Parents and Miscellaneous Amendments) Regulations 2008. 27th report from the Joint Committee on Statutory Instruments, 30th report from the Merits Committee.—(Lord McKenzie of Luton.)