The
Committee consisted of the following
Members:
Ainger,
Nick
(Carmarthen, West and South Pembrokeshire)
(Lab)
Clappison,
Mr. James
(Hertsmere)
(Con)
Duddridge,
James
(Rochford and Southend, East)
(Con)
Fraser,
Christopher
(South-West Norfolk)
(Con)
Jones,
Helen
(Warrington, North)
(Lab)
Keen,
Alan
(Feltham and Heston)
(Lab/Co-op)
Kidney,
Mr. David
(Stafford)
(Lab)
Marris,
Rob
(Wolverhampton, South-West)
(Lab)
Rowen,
Paul
(Rochdale) (LD)
Sharma,
Mr. Virendra
(Ealing, Southall)
(Lab)
Snelgrove,
Anne
(South Swindon)
(Lab)
Streeter,
Mr. Gary
(South-West Devon)
(Con)
Stuart,
Mr. Graham
(Beverley and Holderness)
(Con)
Turner,
Dr. Desmond
(Brighton, Kemptown)
(Lab)
Ussher,
Kitty
(Parliamentary Under-Secretary of State for Work and
Pensions)
Willott,
Jenny
(Cardiff, Central)
(LD)
Glenn McKee, Committee
Clerk
attended the
Committee
Sixth
Delegated Legislation
Committee
Thursday 30
October
2008
[Robert
Key in the
Chair]
Draft Social Security (Lone Parents and Miscellaneous Amendments) Regulations 2008
8.55
am
Helen
Jones (Warrington, North) (Lab): I beg to
move,
That
the Committee has considered the draft Social Security (Lone Parents
and Miscellaneous Amendments) Regulations
2008.
Mr.
Key, I am sure that as we move into our discussion, the Minister, who
has just arrived, will catch your eye and give a far better explanation
of the regulations than I
could.
8.56
am
The
Parliamentary Under-Secretary of State for Work and Pensions (Kitty
Ussher): It is an honour to serve under your chairmanship,
Mr. Key. I apologise for not being in my place to move the
motion. I was misadvised as to the start time.
It is a
requirement that I confirm to the Committee that the provisions are
compatible with the European convention on human rights, and I am happy
to do so.
The purpose
of the regulations is to implement new arrangements for lone parents
with older children, who can currently claim income support solely on
the grounds of being a lone parent. Instead of continuing to receive
income support until their youngest child turns 16, those who are able
to undertake paid work may claim jobseekers allowance when
their youngest child reaches seven. They will be required, with support
and assistance, to look for paid work appropriate to their
situation.
The
measures are consistent with the Governments approach that
people should make full use of the support available to them to lift
themselves and their families out of poverty. On that basis, the
Government are committed to the principle that once their children are
older, lone parents claiming benefits should be expected to look for
paid work if they are able to do
so.
The
regulations are intended to help lone parents to move into paid
employment. The Government believe that the measures are a balance
between providing financial and other assistance to support families
and fulfilling our wider responsibilities to lift individuals and
children out of poverty. The Government consulted widely on the
regulations and, after careful consideration of the views received as
well as those of the Social Security Advisory Committee, decided to lay
the proposed legislation before Parliament, with clear provisions and
safeguards to ensure that vulnerable lone parents are
protected.
To
ensure a smooth transition for both lone parents and Jobcentre Plus,
the changes will be phased in, starting first with lone parents with
older children.
Lone parents with a disability or health-related condition that limits
their capability to work may be able to claim employment and support
allowance instead. The Governments proposals will not apply to
lone parents who are entitled to income support on other grounds: for
example, lone parents in receipt of carers allowance, those who
foster and lone parents who have a child for whom the middle or highest
rate care component of disability living allowance is payable will all
remain eligible for income
support.
To
ensure that the welfare of children is not compromised by the change,
the regulations also make lone parents a vulnerable group, so the
jobseekers allowance hardship regime may apply in certain
circumstances. We are also aware that due to health issues, a number of
lone parents have a limited capacity to work and are better suited for
ESA than for JSA. To support lone parents in those circumstances, we
have included amendments to the ESA regulations to allow eligible
claimants to receive the work-related activity component from the start
of their
claim.
The
regulations also include transitional protection for lone parents who
receive income support and are students undertaking a full-time course
of training on the new deal for lone parents or an approved scheme that
meets the objectives of the new deal for lone parents. We propose that
lone parents in those circumstances will remain entitled to income
support until their youngest child reaches the relevant age in force at
the time that they commenced their
studies.
Currently,
lone parents claiming income support are required to attend a
work-focused interview at six-month intervals. To provide the necessary
opportunities to prepare and support lone parents for the change in
their last year of eligibility for income support, the regulations
introduce mandatory quarterly work-focused interviews.
The changes
form part of the Governments ongoing package of welfare reform
and our 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 a third of children living
in lone-parent households are living in poverty, as are 58
per cent. of children who live in workless lone-parent households.
Crucially, that 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 our 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
will not take up the assistance that is 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 the
household. The regulations are intended to open up the opportunities of
paid work to more lone parents and to support them and their families
to have a better standard of
living.
We
know that some of our customers face greater barriers to obtaining paid
work than others, especially parents who may have extra challenges
because of their childrens needs. In recognition of that, 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 to 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, I am proud to say that the new deal for lone
parents has helped more than half a million such people to find
work.
In-work
credit is now available nationally to help lone parents to make the
transition into employment, as well as help sustainability and
progression in work. That 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 that might otherwise prevent a lone parent from remaining in
paid work. Lone parents can also access in-work advisory support, which
is provided by Jobcentre Plus advisers, to help to resolve any
difficulties and to guide individuals towards any support needed, such
as skills and training.
Some
stakeholders have rightly raised concerns about the availability of
child care. We have substantially improved child care options for
working families: more than £3.5 million a day supports lower
and middle-income families with their child care costs through the tax
credit system, and we have more than doubled the availability of child
care provision in England since 1997, with the stock approaching 1.3
million places. As this is a devolved matter, the Scottish and Welsh
Governments have in place child care plans that aim to extend access to
high-quality, affordable and flexible child
care.
The
Childcare Act 2006 places a duty on local authorities in England and
Wales to secure, as far as is reasonably practicable, sufficient child
care to meet the requirements of parents in their area who require
child care in order to work or to undertake training or education to
prepare for work. A key element of that in England will be extended
schools, which will offer affordable, school-based child care on
weekdays between 8 am and 6 pm, all year round. I am advised that more
than 14,230 schools already offer the core extended
services.
We
recognise that lone parents who do not have the support of a full-time
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 in what are often challenging circumstances.
Importantly, Jobcentre Plus staff must consider whether it is
unreasonable for the person to stay in or take up a job because
appropriate, affordable child care is not
available.
Clearly,
the current global economic climate means that we are going to be
facing challenging times. It is important, in my view, that we do not
repeat the mistakes of previous slowdowns and allow people to slip into
long-term inactivity. That is bad for the individual and their
families, and it traps people into a lifestyle of dependence and,
often, poverty. The labour market is dynamic, with millions of moves
between employment and unemployment every year. Job opportunities will
continue to become availablethere are about 600,000 job
vacancies in the economy according to the latest published statistics.
Our active labour market policies,
such as these regulations, will ensure that lone parents do not become
further detached from the labour market and that they 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 that
they will lift more children out of poverty. They will ensure that the
right help and support are available for lone-parent customers who can
do paid work but who often face challenges to their efforts to do so.
At the same time, we will ensure that the customers for whom work is
not an option are supported in the way that best suits their
circumstances. The additional flexibilities in relation to
jobseekers allowance in the regulations, along with the
operational safeguards and Jobcentre Plus guidance and training, offer
the best protection for the most vulnerable. I therefore commend the
regulations to the
Committee.
9.5
am
Mr.
James Clappison (Hertsmere) (Con): Welcome to the Chair,
Mr. Key. It is a great pleasure to serve under your
chairmanship. I also welcome the Minister.
As the hon.
Lady said, the regulations are of some significance. We need to bear in
mind the fact that they will affect hundreds of thousands of lone
parents in receipt of income support. They have, among other matters,
been the subject of consultation and a detailed report by the Social
Security Advisory Committee. I shall raise a number of points that were
made in that committees important
report.
The
Conservatives have a number of questions about the regulations, but let
me make it clear at the outset that we share the objective of getting
lone parents into work. I shall say this gently: we have proposed our
own ideas in this area, and we are pleased when the Government follow
them. I pay particular tribute to the work of my right hon. Friend the
Member for Chingford and Woodford Green (Mr. Duncan Smith).
We, too, accept that it is desirable, from the point of view of both
the parent and the child or children, that the parent should get into
work if possible. We accept the case that has been made that there is a
lower incidence of poverty in lone-parent families where the parent is
in full-time or part-time work than in families where the parent is
workless.
The
rationale for the changes is set out in the explanatory memorandum for
the SSAC from the Department for Work and Pensions, although the
figures given there are somewhat different from those given by the
Minister. She said that 19 per cent. of children in lone-parent
households in which the lone parent works part time are living in
poverty, whereas the explanatory memorandum puts the figure at 17 per
cent. She said that 55 per cent. of children in workless lone-parent
households are living in poverty, whereas the explanatory memorandum
puts it at 56 per cent. However, the important point is that there are
far more children living in poverty in workless lone-parent households
than there are in lone-parent households in which the parent is in
full-time or part-time work, so we accept the rationale that has been
given.
At
the same time, we have questions to ask, because we want to ensure the
welfare of children of lone parents in all respects. We want to promote
good parenting, and it is important from the point of view of good
parenting that we go into detailed questioning about the
regulations.
We want the
regulations to be reasonable in their application to lone parents. We
note that the explanatory memorandum acknowledges that lone parents
face unique and varied circumstances. It
states:
To
accommodate the small number of customers who require additional
flexibility in specific circumstances, the proposed changes to
Regulations allow for Jobcentre Plus to agree to additional flexibility
for those parents who are treated under the existing JSA Regulations as
being responsible for caring for a child who is part of their household
or a close relative and who have genuine limitations around: reasonable
prospects of getting a job; taking up and actively seeking employment;
dealing with the impact of bereavement or domestic emergency; caring
for their children who may be excluded from school or who have an
outstanding parenting order or contract; and availability for
employment.
Those
are the criteria applied to parents in two-parent households under
existing regulations. We are told that the same considerations will be
borne in mind for lone parents, but what, if any, additional
flexibility will there be in the case of lone parents? How much further
will flexibility extend?
Lone parents,
by the very nature of their parenting, sometimes face challenges that
parents in two-parent households do not face. The list given is a
reasonable list of the challenges that those parents face and the
things that can happen in their lives. To take one example from it,
will there be additional flexibility for a lone parent in dealing with
bereavement or domestic emergency over and beyond the flexibility that
is shown to other JSA recipients in two-parent families? We know that
dealing with bereavement was one of the issues highlighted in the
responses to the Social Security Advisory Committee. It was felt that
it was particularly important that the needs of the child should be met
in such circumstances.
The responses
to the SSAC highlighted other circumstances that arise in the lives of
children and families that can be of particular importance in families
with lone parents. They include bullying, family breakdown, the
breakdown of informal supportone thinks particularly of
grandparents who offer informal support, as well as other friends and
relativesand sickness. Those circumstances and probably many
others affect lone parents particularly. When those effects are felt in
their lives, the needs of the child are important, and I would like the
Minister to say how much extra flexibility there will be in such cases
for lone
parents.
Availability
of child care is also important. We heard what the Minister had to say
about that and we note what the explanatory memorandum says. We are
told in paragraphs 4.37 and 4.38 that the onus is put on parents to
identify appropriate child care. We are told
that
where
a parent considers that he or she cannot take up a job to which they
are referred by a Jobcentre Plus Adviser because appropriate childcare
is not available, a Jobcentre Plus Decision Maker will consider, on a
case by case basis, whether the steps the parent has taken and the
reasons they do not want to use available services are
reasonable.
We
are told, in effect, that when a parent says the child care is not
appropriate, there will be a referral to a Jobcentre Plus decision
maker, who will sit in judgment on the parent and decide whether their
approach is reasonable.
We should
like to be given an idea today of the principles that will guide what
we are told is the case-by-case decision making that will happen. It is
all very well to be
told something will be dealt with case by case, but if that is to happen
there must be reference to an overall framework of principles. Will the
Minister tell us what principles will guide case-by-case decision
making on whether lone parents are being reasonable in their decisions
regarding available child
care?
We
are told in the Governments response to the Social Security
Advisory Committee that there will be additional training and guidance
for personal advisors and decision makers on this very subject, and
that they will have
specific
learning on how the additional JSA flexibilities and decision-making
relating to lone parents who do not consider they have access to
appropriate and affordable childcare should be
applied.
In
the same vein as before, I ask the Minister to set out those additional
jobseekers JSA flexibilities that will be applied in the case
of lone parents. Can she give an idea of the instructions that are to
be given to JSA advisers, who will deal with those parents on a regular
basis, and to the decision makers, who will make decisions on matters
referred to them by advisers? Child care is an important subject and
the welfare of lone parents and their children in that respect should
be ensured as far as
possible.
I
want to press the Minister on some other issues specifically identified
by the SSAC. First, home education is important to a number of people.
There is obviously a tension between the requirement that a lone parent
should work and the home education that a lone parent provides. Those
parents are of course in receipt of income support and would be moved
in the same way as other parents. How many lone parents fall into that
category? What principles will be applied throughout the system in
dealing with their cases? We are not told a great deal about that in
the explanatory memorandum or the Governments response to the
SSAC. I am sure that many lone parents who are home educating their
children will want to hear more on that subject from the Government.
Having taken the important decision to educate their children at home,
they will want to know what principles will be applied in their cases
and what requirements will be placed on them, and how such conditions
might affect the home education of their
children.
The
SSAC
said:
The
planned process for benefit alignment also raised
concerns.
In
their response to the SSAC, the Government appear to defend the use of
lone parent transition loans under the social fund provisions as a way
of aligning benefits when there is a gap between the benefit that has
been received on income support and the benefit that will be received
under jobseekers allowance. That strikes me as discordant. By
its nature, the social fund is an emergency fund, and it seems a little
strange for lone parents to be required to have access to a social fund
in some circumstances. Will the Minister tell us exactly how that
situation might arise for lone parentsthe Government seem to
envisage it themselves in their response to the SSACand will
she say whether the Government expect lone parents to take out such
loans?
To put it
simply, does the Minister think that it is a good idea for lone parents
to be put into debt as part and parcel of the system that the
Government envisage? We must remember that we are talking about people
who are in receipt of social security benefits and for
whom every pound and every penny is, no doubt, very valuable. Once they
are put into debt, they will find it hard to cope with that in the
future. Is it a good idea, particularly in todays circumstances
and in view of all we know about indebtedness, for lone parents, in
effect, to be expected to go into debt as part and parcel of the system
to which they are being made subject? I do not want to be unfair here,
and I await the hon. Ladys
explanation.
Will
the Minister say a little more about cases involving children for whom
disability living allowance is paid at the lower level? In her opening
remarks, she adverted to the case of children for whom disability
living allowance is paid at the higher and middle ratestheir
parents will be exempt from the system and will be able to remain on
income support without being subject to the JSA regime and its
additional requirements. However, that is not the case for parents of
children for whom disability living allowance is paid at the lower
level. Will she say more about the justification for that? Will she
also give us some idea of the number of children who will be involved
and whether there will be any additional flexibility in the system for
lone parents of children for whom disability living allowance is paid
at the lower
level?
Will
the Minister say a little about the anomaly noted by the SSAC in
relation to children who are fostered and then adopted. In her remarks
the hon. Lady adverted to the case of children who are being
fosteredin such cases there is an exemption and the parents of
those children will remain on income support. However, once a foster
child is adopted by a lone parent, the exemption ceases, and the lone
parent must either claim JSA or ESA. The SSAC notes that
the
familys circumstances would not have changed materially with
the change of status from fostering to
adoption.
Will
the Minister give us her reflections on what the SSAC, in its wisdom
and experience, felt to be an anomaly in the
regulations?
Finally,
there is the question of the application of the regulations outside
England. The SSAC notes that
for Wales, and
to a greater extent, Scotland, these proposals may interact with child
care arrangements that differ from the prevailing model for England,
and we have some concerns that the proposed new arrangements may not
operate consistently and equably across GB as a
consequence.
How
does the Minister respond to
that?
I
am sorry to bombard the Minister with a number of detailed questions. I
appreciate the fact that she is taking a careful note of them and I
look forward to her response. However, I say once again that the new
system will affect many hundreds of thousands of our fellow citizens
who are lone parents. The rationale for the policy change is good, but
inevitably with such regulations, a number of important questions must
be answered about their implementation. The Government must show
flexibility and consideration for those
families.
9.20
am
Jenny
Willott (Cardiff, Central) (LD): Like the Conservative
spokesman, the Liberal Democrats have a number of concerns about how
the proposals will be implemented, although we welcome the broad
approach. We have said for a long time that it would benefit
a
number of lone parents and their children if those parents were able to
find work. The income support regime has done little, if anything, to
help people on it to find sustainable employment. On the whole, we
believe that the measures are a good move.
However, as
both the Minister and the hon. Member for Hertsmere said, the Social
Security Advisory Committee issued a report on the measures, and the
Government have not taken up a number of its recommendations. Like the
hon. Gentleman, we have concerns about some of the issues highlighted
by the SSAC that we believe have not been taken fully into
account.
One
thing worth flagging up at the start is that the lone parent employment
rate in the UK is very low compared with a lot of similar countries. It
is about 20 per cent. lower here than in Denmark, 15 per
cent. lower than in France, and so on. There is clearly potential for
more people, with the right support, to find work. However, thousands
of families may suffer under the
proposals.
The
first problem relates to the economy and the labour market, which the
Minister mentioned in her opening remarks. Unemployment is rising
faster now than at any time since the early 1990s, and the claimant
count is expected to hit 1 million by the end of this year; at the same
time, vacancy rates are falling dramatically. So far, the conditions
have hit lone parents harder: the number of workless lone-parent
households has risen faster and the employment rate of lone parents has
dropped faster than almost any other group in the economy. It is clear
that lone parents are being affected more seriously than many
others.
In
their response to the SSAC report, the Government say that from
2013 onwards, they
expect
an
increase in the number of lone parents in work of between 75,000 to
100,000
about a third of those
who fall into the category that we are discussing. Will the Minister
clarify the time frame? From 2013 onwards is vague, to
put it politely. It is very open-ended. What estimates does the
Department have of the numbers involved over what period, and how many
lone parents does it expect to be employed as a result of the changes
in each of the next few years? That would give us a better idea of what
is
expected.
Given
the contracting labour market and the fact that lone parents are being
affected worse than other groups, far fewer jobs are likely to be
available to lone parents specifically than when the
Departments original estimates were made. Will the Minister
clarify whether the current economic circumstances have been taken into
account and whether some of the estimates have been revised to give a
clear picture of the Governments
expectations?
Many
lone parents will have been out of work for a long time and have low
skills levels, and lone parents have a much greater need for flexible
working, so they are in a difficult position in a contracting labour
market. What estimate has the Department made of the types of job that
lone parents will find? How many lone parents does the Minister expect
will find jobs with reasonable prospects and opportunities for
promotion and personal development, and what proportion are likely to
go into low-paid work with few prospects?
The Minister
mentioned in her opening remarks that lone parents who are already in
full-time training will be able to continue on income support until
they have finished it. However, I understand that that will not be the
case for new cases of people going on to the JSA regime who are not
already in full-time training. One problem for a lot of lone parents,
especially those who have been out of work for a long time, is that
they have quite low skills levels and greater need of training to bring
them up to date, so that they are able to compete in the job market.
What impact will the fact that people are not able to take advantage of
full-time training opportunities under the new regime have on their
ability to get the better-paid jobs rather than those at the bottom of
the labour market? What estimates has the Department made of the number
of people who are likely to be affected by that problem? Currently,
they would probably go into full-time education or training, but they
will not be allowed to do so under the new
regime.
The
worrying issue of sanctioning was raised by the hon. Member for
Hertsmere. A lot of research shows that sanctioning is far less
effective at helping lone parents to get into employment than early and
tailored support for individuals. The Departments own research
shows that the current sanctions regime has had a negligible effect on
helping lone parents, and SSAC research tells us that the sanctions
regime is confusing for both claimants and personal advisers. Clearly,
it is welcome that measures in the regulations allow Jobcentre Plus
advisers to give consideration to the specific needs of lone parents
when deciding whether to employ sanctions, so they can take into
account whether someone has good cause to refuse a job, fail to carry
out a jobseeker direction, or leave employment. However, if sanctions
are put in place, they could be disastrous for a family or for the
welfare of a child.
The
sanctions, as I understand it, could be of up to 40 per cent. of JSA,
which could have a significant impact in terms of hardship. Will the
Minister clarify what is being done to monitor the impact of the
proposals on child poverty and reassure us that if there is any
evidence of negative impact on children, however small a number, the
measure will be reconsidered? Clearly, it is in no ones
interest to increase levels of child poverty in this country. Although
the proposals overall are designed to tackle that problem, sanctioning
could end up worsening the situation for some
families.
Child
care is clearly crucial for lone parents affected by the regulations.
There is a lack of appropriate and, specifically, affordable child care
in large parts of the country. For a lot of parents, the child care
element of tax credit does not cover full costs of child care. The
Minister mentioned wraparound schools, but my understanding is that
that policy will not be fully in place until 2010, which means that
there will be a gap following the implementation of the regulations. I
also understand that it applies specifically in England. I have been
contacted by lone parents in Scotland who are concerned about the fact
that there is not the same wraparound school care in Scotland. I
appreciate that that is not the Ministers responsibility, but
there are clearly interrelations between the regulations and the child
care provision that is available throughout the
UK.
I would be
grateful if the Minister told us what is being done to ensure wide
availability of child care for older children, for whom care is
difficult to access, and especially for disabled children. In the
latter case, there is a great need, but care tends to be much more
expensive and harder to find. For parents of a disabled child,
availability of child care could be a real
problem.
I
would also be grateful if the Minister provided clarification on
in-work poverty. Given that the cost of child care is very high and
that, in a contracting labour market, there is increasing pressure on
wages, lone parents could have to make a pretty invidious decision.
They might have to take a job that does not pay for child care, and
there is a question about what Jobcentre Plus will accept as the
reasonable cost of child care. That could push lone parents from
out-of-work poverty to in-work
poverty.
The
Governments figures support that suggestion. The figures in the
explanatory memorandum show that the Government expect 75,000 to
100,000 lone parents to get into work, but only 70,000 children to be
lifted out of poverty. Clearly, there is a gap in those figures. Do the
Government believe that some parents will go into work, but will remain
in poverty or end up in poverty in work? Will the Minister confirm
those estimates and clarify what she thinks will happen to these
families? The suggestion that we are expecting them to move to in-work
poverty, is very
worrying.
For
many lone parents, a key requirement to being able to consider going to
work is flexible or potentially part-time working. Recent press
reportsI believe they appeared last weekare worrying,
because they suggest that the Government might review and decide not to
implement the proposal to extend flexible working to parents with
children under the age of 18 that was announced in the draft
legislative programme. Will the Minister reassure us that that will not
be the case and that those proposals will be brought forward in the
next parliamentary Session? Such measures are a crucial part of helping
lone parents get into work. To implement the punitive side but not the
enabling side of the proposals could be damaging for a number of
families.
I
would be grateful if the Minister answered some questions about the
capacity of Jobcentre Plus to implement the changes. The available
figures on the number of parents who will transfer from income support
to JSA are confusing. There seem to be a number of discrepancies in the
figures that the Government have provided in the past few weeks. The
impact assessment states that the initial impact from November onwards
will be 1,677 new and repeat claims every month from those moving onto
JSA, and 287 from those moving on to ESA. That is about 6,000 transfers
before March 2009. However, a recent presentation by Jobcentre Plus to
stakeholders indicated that, from November, between 2,000 and 3,000 new
and repeat claimants would move per month. There is a big difference in
the numbers being used and I would be grateful if the Minister made
clear which figure is correct. Exactly how many people do the
Government expect to move from income support to ESA and JSA each
month?
The
discrepancy in those figures suggests that the impact of the measures
on Jobcentre Plus and its advisers is not clear. I tabled some
parliamentary questions on the matter and the answers I received
suggested that 110,000 people would be affected in the first year and
would be transferred from income support to JSA. If we accept the
figures in the impact assessment, about 6,000 people would be
transferred by March, which would mean that more than 100,000 would
still need to be transferred in the next nine months. That is clearly a
heavy back-loading on the nine months after March. It suggests that
more than 11,000 people would be transferred every month, which is
clearly a massive work load for Jobcentre Plus to take on, particularly
if it is only coping with 2,000 or so a month in the first few months.
Will the Minister clarify that matter? There seems be a lot of
confusion between the different documents that the DWP has
presented.
Will
the Minister also confirm that the capacity to process the claims is
definitely in place in Jobcentre Plus? That is a point of concern given
that changes to the ESA are being brought in pretty much at the same
timethere is only about a months difference between the
introductions of the two measures. Clearly, a lot of welfare reform
changes are being implemented at the same time and that will have an
impact on Jobcentre Plus staff. I would be grateful if the Minister
confirmed that that has been taken into account and that the capacity
is definitely
there.
The
training provided to Jobcentre Plus staff to prepare for the
implementation of the measures was an issue raised by the Social
Security Advisory Committee. Many people are concerned about the level
of training and guidance available to personal
advisersparticularly given the flexibility and discretion
needed to enable personal advisers to work with lone parents. A
response to a question I tabled in October suggested that, by the time
these measures are introduced in November, less than half of Jobcentre
Plus customer-facing staff will have been trained. That is very
worrying: if many people will be moving on to the new regime, Jobcentre
Plus staff must be adequately trained and supported. Will the Minister
confirm whether one of the reasons why so many people are being
transferred later in the year is that there has not been adequate
training so far? Also, will she confirm when she expects all the
customer-facing staff in Jobcentre Plus who need training to be trained
in how to implement the
measures?
There
are several areas where training and guidance will be crucial in
allowing personal advisers to exercise discretion. Several of them were
picked up by the hon. Member for Hertsmere. On home education, I would
be grateful if the Minister clarified whether Jobcentre Plus personal
advisers will be able to take into account individual circumstances
when deciding whether sanctions are appropriate, what activity is being
undertaken by the parent and what job would be appropriate, given the
particular circumstances of a parent educating at
home.
Many
other countries that have similar systems have a calming-down period,
so that women who have suffered domestic violence are not automatically
moved to a job-seeking regime but are allowed a breathing space on
income support. Due to the particular circumstances of victims of
domestic violence, it takes time before they are prepared and able to
go into the work force. Will the Minister confirm that personal
advisers will have the discretion and the training to be able to work
with lone parents in that
position?
Finally,
I want to raise an issue that the hon. Member for Hertsmere raised,
which is the use of the social fund as a mechanism for benefit
alignment. I agree that that
is a worrying suggestion. What progress has been made on preparing a
streamlined administration for lone-parent transition loans under the
social fund? I agree with the SSAC that it is unfair to make parents
who are being switched from income support to JSA take on debt just
because of the way that the Government have set up the system. That can
have hugely damaging long-term implications, particularly for those who
are already struggling to make ends meet on a marginal income. Also, it
is not the purpose of crisis loans to bridge gaps caused by the way in
which the benefits system is set
up.
There
is evidence that the social fund is struggling at present with
increasing demand. Crisis loans have gone up by 50 per cent. over the
past two years, and clearance times are already rising. What is being
done to ensure that the system can cope with a potentially large influx
of lone parents coming on to the new regime. If the system does not
work properly, it could be a disaster for them and their children. We
are talking about particularly vulnerable families who need special
care.
Overall,
we support the proposed measure, but there are several questions about
its implementation by both the Government and Jobcentre Plus staff. I
would be grateful if the Minister provided clarification on those
matters.
9.38
am