Select Committee on Work and Pensions Minutes of Evidence


Memorandum to the Work and Pensions Select Committee from One Parent Families

1.  INTRODUCTION

  1.1  Jobcentre Plus is the key delivery agency for the Government's target to have 70% of lone parents in work by 2010. There has been substantial progress towards this target, with 56.6% of lone parents now in work, compared to 46.6% in 1998, when the New Deal for Lone Parents (NDLP) was introduced. However, for the target to be met, in the next five years, the lone parent employment rate needs to rise three times as fast as it did in the previous five.

1.2  We are currently seriously concerned about the ability of Jobcentre Plus to deliver this sustained increase, given the impact of the reduced financial settlement for the Department for Work and Pensions in the 2004 Spending Review, and the targets for job reduction within the agency. Giving evidence to this committee in February, the then Secretary of State Alan Johnson outlined these as follows: "By the end of this financial year we plan to have 122,444 staff, by the end of the next financial year 2005-06 to be down to 111,296 staff, by 2006-07 106,592 and by 2007-08 to 100,000 . . . "[4]

  1.3  We are already starting to see the impact of these reduced resources; this submission outlines particular areas of concern, including resources for training, the role of personal advisers, the future of the Building on New Deal programme, and planned IT work within the agency.

2.  RESOURCES FOR TRAINING AND CHILDCARE

2.1  The New Deal for Lone Parents offers lone parents on Income Support the option to train towards a level 2 qualification as part of the process of preparing for work, and will support their childcare costs will they do so. As 51% of lone parents on Income Support have no qualifications,[5] this is an important part of the return to work service.

2.2  However, at present we are hearing many reports on our helpline that, due to reduced training budgets, Jobcentre Plus will not refer any lone parents to training—and where lone parents find training themselves, will not fund childcare. This has come at the same time as the LSC has cut its budget for adult learning, meaning that many Further Education colleges have also cut their childcare support funds.[6] This means that in certain areas, the option for lone parents on NDLP to train has effectively been abolished.

2.3  One Parent Families has long believed in the importance of high quality work focused training as a route for lone parents into better quality, more sustainable work. We are therefore extremely concerned that this is currently being denied to many lone parents—despite no stated change in policy.

3.  ADVISER TRAINING AND ADVISER MORALE3.1  One Parent Families has been concerned for some time that, since the decentralisation of Jobcentre Plus, Personal Advisers working on the New Deal for Lone Parents have been receiving insufficient training. One Parent Families has the contract to deliver lone parent awareness training to many Personal Advisers and have seen a decline in their motivation; many of those who attend our training now have been working for some time before. We are also seeing a general decline in adviser morale. Lone parent advisers who attended One Parent Families' annual conference on the 13 October told us that they feel increasingly pressurised, and unable to devote sufficient time to their clients. They are also frustrated that the current lack of resources within Jobcentre Plus means that they cannot deliver what they see as the full service necessary for lone parents.

  3.2  We believe that specialist advisers have been key to the success of the New Deal programmes. Advisers working on the New Deal for Lone Parents increasingly tell us that they are being asked to deal with "mandatory" and other client groups, in addition to their lone parent caseload, and are worried that their specialism will be lost.

  3.3  We know that within the Building on New Deal areas, discussed further below, the Department intended to pilot the use of generalist advisers. We would be very interested to hear whether these plans are going ahead.

4.  THE FUTURE OF BUILDING ON NEW DEAL

  4.1  In June 2004, the Department for Work and Pensions published Building on New Deal: Local solutions meeting individual needs (usually referred to as BOND). This set out the Government's intention to pilot a new more flexible approach to employment programmes, which would enable a more tailored service and a greater focus on those further from the labour market.

4.2  One Parent Families welcomed the intention to pilot BOND, and to provide more support for more disadvantaged clients. We think that, as more lone parents move into work, those needing help from Jobcentre Plus will increasingly be a group with more barriers to work. We also know that this is a group that NDLP has to date served least well.[7]

4.3  However, the future of BOND is at present extremely unclear. A year has now passed and we are unsure whether BOND will be implemented in the prototype districts, if at all.

5.  IT PROGRAMMES WITHIN JOBCENTRE PLUS

5.1  The introduction of a call centre model into Jobcentre Plus has not been smooth—with well-reported problems with the Customer Management System in its second roll out.[8] We know that Jobcentre Plus is planning further IT rollouts in the future, including a further upgrade to the Contact Management System in 2006, and the replacement of the Income Support computer.

5.2  Our experience both with the roll out of IT within Jobcentre Plus, and with tax credits, makes us extremely nervous about large scale IT programmes of this kind. It is essential that Jobcentre Plus both make contingency arrangements for problems with these systems, and ensure that an adequate face-to-face service is maintained. While some customers may prefer to make claims for benefit by phone or via the Internet, there will always be vulnerable customers who need to be helped in person.

6.  CONCLUSION

6.1  Jobcentre Plus faces a considerable challenge to achieve the Government's target of a 70% lone parent employment rate by 2010, and the wider aspiration of an 80% employment rate. At present, there are considerable resource pressures, which are impacting on their ability to deliver existing programmes, let alone any further reforms that may be announced in the expected Green Paper on Welfare Reform.

6.2  Moreover, key elements of current policies remain in flux. Increased flexibility within the New Deal programmes has been announced but not implemented, and we are worried that IT reforms, with a high potential for error, may increase rather than reduce the pressures on Jobcentre Plus.






4   HC 298-i Uncorrected transcript of oral evidence to the Work and Pensions Select Coommittee: Departmental Efficiencies 2 February 2005. Back

5   Lessof C et al (2001) New Deal for Lone Parents Evaluation: A Quantitative Survey of Lone Parents on Income Support Employment Service: Sheffield. Back

6   See, for example, the article in Education Guardian of this week, "I want to work, to take care of my family" available here: http://education.guardian.co.uk/egweekly/story/0,5500,1605425,00.html Back

7   Evans M et al (2003) New Deal for Lone Parents: Second Synthesis of the National Evaluation DWP Research Report No 163, DWP. Back

8   See, for example, "Benefits staff revert to paper" Computing UK 29 September 2005 http://www.computing.co.uk/computing/news/2142945/benefits-staff-revert-paper. Back


 
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