Welfare Reform Bill


[back to previous text]

Q 63John Howell: And that view would apply whether we were in recession or not?
Tim Nichols: That view of the effective way of working with that group would, yes.
Fiona Weir: May I add to that by looking pragmatically at what is going on? A lot of experience shows that while the job entry rate for lone parents is very good, 29 per cent. of them are back on IS within a year. There is an issue about how to keep people in work. Similarly, while there has been a huge success with Government programmes such as the new deal for lone parents, there are barriers when you pursue a “work first” approach too strongly. You risk getting people into low-paid jobs rather than sustainable longer-term work opportunities. It takes the emphasis off skills building. You get into a risk of cycling where people go into a low-paid job, fall back out again, get into debt and suffer the consequent problems. There is a need to look pragmatically at how to support people along a path of working with their aspirations, building their skills and getting the work path right for their personal circumstances. We want something to work long term to get that family out of poverty, rather than lots of churning through a system that does not achieve that goal.
Q 64John Howell: Having heard that, I am not sure you are nearer consensus, and you may actually be further apart. Do you want to come back on that?
Martin Narey: There is not a consensus on conditionality. We disagree. We agree on most things to do with child poverty but there is a difference of view on this issue.
Q 65John Mason (Glasgow, East) (SNP): This question follows on from that last point on conditionality. I noticed as well, Mr. Narey, that you had said you were more in favour of conditionality. I wonder whether that is in favour of conditionality whatever the level of benefits. Or are you saying that the present benefits are excessive and therefore families could afford to lose a bit? Or would you be in favour if benefits were higher and the extra bit of benefits could be conditional?
Martin Narey: I certainly do not think there is an extra bit of benefits. I think our benefits are very low and families living on benefits, as well as some families with one or more parents in full-time work, are frequently in dire poverty, by any measure. There is a wider issue for the Government to do something about that. That presents formidable problems in protecting children if you are applying sanctions to benefit levels that are already very low. I have been critical of the Government many times in recent years, not least on issues of child poverty, but both in conditionality of benefits and the allied and important subject of conditionality for getting 16 and 17-year-olds back into work or training, the Government are grasping some difficult nettles that need grasping. We cannot allow young people to be damaged by decisions made very early in their lives or decisions made by their parents.
Q 66John Mason: May I press you on that? I understand that some Nordic countries have conditionality but starting from a higher base. What happens to a family that is on the minimum when you take that away? Do they steal or do the grandparents have to pay?
Martin Narey: That is a very real problem and I do not have a ready answer. I am saying that in principle, despite those problems, the Government are right to look at conditionality because the ultimate prize is getting a family out of long-term poverty. We know the probability that a child brought up in poverty in a workless family will bring their own children up in poverty. The potential break in that cycle is worth exploring. Of course, you have to ensure that children are reasonably protected. Some people refuse to work. We cannot dodge that. Although I accept entirely that most people who are unemployed want to work, there are some people who simply do not want to and resist any attempt to get them to work. That is very damaging for them and it is appalling for their children.
Q 67John Mason: May I ask the other groups how they would look at that? Would you accept conditionality if there were an extra element above the minimum that could be taken away?
Kate Bell: It is instructive, again, to make the comparison with employment and support allowance. The Government have said that there is a level below which adult benefits should not fall, but that they will pay an additional premium to those who take steps to get back to work. We reiterate that we are disappointed that that is not the approach that has been taken for single parents.
Responding to your question about what happens to people when they get sanctioned, the research shows that people have to borrow from family and friends. They often suffer from financial hardship and increased stress, neither of which are good conditions for moving back to work. Your point about the adequacy of benefit levels is very important.
Eddy Graham: The sanctions regime in the British welfare state has been directed at jobseeker’s allowance claimants—people who are required to be available for work, who do not have health conditions and who are actively seeking work. It has now been extended to whole groups of people who have health problems and child care responsibilities, and lone parents. The impact of substantial cuts in benefit on those groups is bound to be greater than on those on jobseeker’s allowance, 80 or 90 per cent. of whom leave the benefit within six months anyway because they find other work for themselves or move into education or training. The impact on families, children and sick and disabled people is one of our major concerns.
You are right to say that a fair amount of cherry-picking takes place when new schemes are devised. The Nordic countries that have fairly comprehensive social insurance schemes that protect people from poverty ally that with a high level of conditionality. In this country, claimants are being asked to do more and more in worsening economic conditions for nothing else—for benefits that still leave them below the poverty line.
Q 68John Mason: Mr. Nichols, I think you said that if people are going to move into work, it must be well-paid work. Can you clarify or expand on that? Am I right to say that the minimum wage of £5.73 is not well- paid work?
Tim Nichols: That is not enough to lift an awful lot of families out of poverty. We believe that the current level of the national minimum wage is too low. We do not want to see a situation whereby, because of sanctions and conditionality in the welfare system, parents are pushed from of out-of-work poverty into in-work poverty in which they do not see any benefit to their income or to their family. All they get is a net loss of time, and as a consequence their set of attitudes to work changes in quite a negative way.
Q 69Mr. Mark Harper (Forest of Dean) (Con): I should like to draw the attention of the witnesses to two other parts of the Bill. First, some proposals have been put forward on part 3 on the amendments on child maintenance. Specifically, the powers that the Child Maintenance and Enforcement Commission has to confiscate driving licences and travel authorisations have to be taken through the court process. Ministers contend that that is not effective and want to move to an administrative process. I am interested to hear each of your comments on that and whether you think that that would effectively achieve the end result, which is getting more absent parents to pay maintenance. If you broadly support that approach, do you think that any changes need to be made to the Bill as a result?
Fiona Weir: The first thing to say is that after all these years of trying to enforce better child maintenance systems, we still have a situation in which only one in three parents are receiving maintenance for their children, which is little short of scandalous and leads to a number of children remaining in poverty. The estimates show that if all the non-resident parents who were currently assessed as required to pay actually paid up, it would lift another 100,000 children out of poverty. It is important to understand the vital importance of stepping up enforcement.
Having said that, and while we are strongly supportive of giving CMEC a lot more enforcement powers, it will be extremely important for the Committee to examine very carefully how the administrative changes would work. It will require very scrupulous measures to examine the issue of wilful and culpable neglect by the non-resident parent and it will be necessary to be really sure about the transparency of the appeals process so that the non-resident parent affected has proper warning and opportunity to appeal against the decision should they wish to do so. The reason that is so important is not just because of the obvious issues of fairness and so on; if there is a backlash, a sense of unfairness, it will be counter-productive as we step up the enforcement powers. It is important that we do not create a sense of there being martyrs when the problem that we are trying to tackle is that of people who are not contributing to their child’s upbringing. Being sensitive to the need to get that right is important for the Committee as it looks at the fine detail.
It is also important to consider some other things. The evidence shows that where it is safe, it is in the interests of children for both parents to engage. If a non-resident parent needs their car to see their child, it is important that you do not take away their driving licence. Getting that kind of detail right is important. We also urge the Committee to look at extending the review period of 24 months that applies to the driving licences to the provisions for passports. The motivation behind the Bill is well driven and there is much that we are supportive of, but getting the details right is crucial.
Q 70Mr. Harper: Before I ask the others to comment—perhaps they can comment on this piece as well—do you see any evidence from the work that you do with families and both, if you like, the remnants of the Child Support Agency and the new cases dealt with by CMEC that the accuracy of the assessments is such that the enforcement powers would be used accurately and that the right people would be targeted? Do you have any sense of that having improved?
Kate Bell: These processes are being used as an absolute last resort. A long process of enforcement will have taken place where the non-resident parent will have had multiple opportunities to say, “I think my assessment is wrong.” We are seeing these as a last resort, but once the process has been followed, we think that we probably need some kind of backstop there to say, “You have an obligation and you need to pay maintenance.”
Tim Nichols: The Child Poverty Action Group has less knowledge and expertise in this area than Gingerbread, so I will be brief. We do not really know enough about the accuracy of assessments to comment. We believe that improving enforcement is important because of the potential that that has to lift more children out of poverty. We recognise that that might require new and stronger powers for CMEC. We urge caution in consideration of the specific proposals on driving licences, on the grounds that it may have an impact on child contact with a non-resident parent and on the livelihood of a non-resident parent.
Martin Narey: I am afraid that I am going to break the consensus a little again. I have spent a lot of my time visiting our 400 projects around the UK. I was in a Sure Start centre on Friday and saw there what I always see: mums by themselves bringing up two or three children in the complete absence of the father. There is a complete absence of any contribution from the father—economic or emotional. I would be very hard-line on bringing those fathers to account, both to make them fulfil their responsibilities to the children and to discourage future fathers from behaving fecklessly and irresponsibly and leaving young mums in the lurch.
Q 71Mr. Harper: The second area that I wanted to touch on was part 4 of the Bill on birth registration. I want to get a quick sense of whether you think the provisions in the Bill will be effective in practice in encouraging fathers—that is whom it is largely aimed at—to take more responsibility, both in acknowledging their role as the father and in contributing.
Kate Bell: We are concerned about part 4 of the Bill. We are obviously extremely keen to see fathers involved in their children’s lives as much as possible, but although the problem of sole registration is small and declining, we do not think that the best way to achieve greater father involvement is through legislation. Some research by the DWP indicated that the decision was often being taken long before that point and was very much dependent on the kind of relationship that was going on at that point. Although we would very much like to see programmes and projects to promote early involvement during pregnancy, for example, we have some concerns about the effectiveness and feasibility of doing that through legislation.
One particularly concern we have is that single parents who feel that it would be unsafe to put their former partner’s name, or that of the father of their child, on the birth certificate be protected. A proposed clause in the legislation states that such parents will be able to exclude themselves from the joint birth registration proposals, but we need a bit more detail on how exactly that will work and the kind of evidence they will have to provide in such a situation.
Q 72Mr. Harper: I wanted to focus on responses in terms of the Bill’s effectiveness. My reading of the Bill—I am sure others will correct me if I am wrong—is that it is actually weak in terms of the compulsory element, because simply not knowing the father’s whereabouts is a sufficient reason for the mother not to put his name down. To be honest, I am not entirely sure that will make a terribly big impact on registration, but let us assume that it will. I just wanted to focus on its effectiveness, so your response was very helpful.
Tim Nichols: Again, this is not really an area of our expertise. If the focus is going to be on effectiveness, I think one of the key things that can be done is simply to better resource the enforcement.
Martin Narey: I do not have anything to add.
 
Previous Contents Continue
House of Commons 
home page Parliament home page House of 
Lords home page search page enquiries ordering index

©Parliamentary copyright 2009
Prepared 11 February 2009