Changes to lone parent benefit
requirements
344. In a speech on 30 January, the Secretary of
State for Work and Pensions, John Hutton MP, announced that the
DWP would be reviewing "the way we help lone parents get
ready for a return to the labour market." He said: "A
significant proportion of our progress so far in tackling child
poverty is due to helping lone parents move into work." He
added that there was "absolutely no case for cutting lone
parent benefits."[392]
345. As this measure has been announced at the end
of our inquiry, we have been unable to consider in detail the
proposals put forward by the DWP. Evidence to the inquiry has,
however, addressed the issue of increased conditionality for lone
parents. We recommend that
any changes to the system of benefits for lone parents take account
of the fact that paid work may not be the best option for a lone
parent, even if they have children of secondary school age. There
may be a range of reasons why a lone parent does not wish to work.
We recommend that the DWP concentrate its efforts on providing
better support for the majority of lone parents who do want to
work, as discussed in the chapter on lone parents above.
346. We recommend
that the Government continue to improve the provision of suitable,
affordable childcare in all areas, which will be essential in
order to improve the ability of lone parents to enter and keep
paid work.
Benefit Simplification
347. During this inquiry, we have heard evidence
which has touched on the problems caused by the complexity of
the present benefits system and its interaction with work and
training. For example, we heard that non-dependent deductions,
which mean that the entry of one member of a workless household
into a job can substantially reduce the benefits payable to other
family members, can act as a perverse disincentive to work. On
the Committee's visit to New Zealand, we were told that New Zealand
is planning to introduce a simplified benefits system.
We conclude that the effects of complex benefits are potentially
significant, and we intend to inquire into benefit simplification
in the near future.
388 "Hutton launches wide-ranging welfare review",
Department for Work and Pensions press release, 18 December 2006 Back
389
Speech by Secretary of State for Work and Pensions, 30 January
2007, www.dwp.gov.uk Back
390
Speech by Secretary of State for Work and Pensions, 18 December
2006, www.dwp.gov.uk Back
391
"Hutton launches wide-ranging welfare review", Department
for Work and Pensions press release, 18 December 2006 Back
392
Speech by Secretary of State for Work and Pensions, 30 January
2007, www.dwp.gov.uk Back