APPENDIX 2
Supplementary memorandum submitted by
the Department of Social Security (PL 28A)
INTRODUCTION
1. The Department's memorandum of 7 June
explained that the Income Support rules would enable a person
on parental leave to claim Income Support if they fell into one
of the categories of people entitled to Income Support—primarily
people who are lone parents, or who are sick or disabled parents.
This supplementary memorandum describes the proposed extension
of the categories of people entitled to Income Support to cover
certain couples who take statutory unpaid parental leave. These
benefit changes are intended to support the wider aim of helping
families reconcile work and family life and to ensure equity of
treatment for two parent families.
EXTENSION OF
ACCESS TO
INCOME SUPPORT
TO COUPLES
ON PARENTAL
LEAVE
2. As explained in the memorandum of 7 June,
current rules would permit some parents (such as lone parents
or couples where one parent was incapacitated) to claim Income
Support while on periods of parental leave provided that they
met the normal qualifying conditions. However, in other cases
couples could only qualify for benefit of one parent claimed Jobseeker's
Allowance, and fulfilled the jobseeking conditions.
3. The Government now proposes a change
in the rules to avoid this inequity. Income Support is available
to lone parents who have a child living with them, and the Government
intends to ensure that employees in two parent families who are
on a low income should also have access to Income Support if they
exercise their right to statutory unpaid parental leave to care
for a child who is living with them. This will enable parents
to use their new right to care for their child without the need
to comply with any additional conditionality. It is estimated
that about 1,000 people a year will take advantage of this new
provision at an estimated cost of £1.5m a year.
4. Access to Income Support for couples
on statutory unpaid parental leave will be linked to receipt of
Working Families Tax Credit, Disabled Persons Tax Credit, Housing
Benefit or Council Tax Benefit on the day before the parental
leave is taken. This is to ensure that this additional support
is directed towards employees on low incomes, and not to higher
earners who may simply be without an income during a period of
parental leave. It is reasonable to expect people on higher earnings
to save up to support themselves during a period of unpaid leave.
5. People claiming Income Support are expected
to provide evidence of their entitlement where available, and
this will include confirmation of parental leave. DSS will work
with employers to ensure that we are able to introduce the most
effective arrangements possible to achieve a reasonable balance
between the risks of misuse of the access to Income Support and
the needs of claimants and employers.
CONCLUSION
6.The proposed extension of access to Income
Support to two parent families on a low income while exercising
their right to statutory unpaid parental leave will ensure equity
of treatment with lone parents who are able to qualify under current
rules. Couples in receipt of Working Families Tax Credit, Disabled
Persons Tax Credit, Housing Benefit or Council Tax Benefit will
be allowed access to Income Support subject to meeting the normal
benefit rules.
October 1999
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