Written evidence submitted by Gingerbread
1. EXECUTIVE SUMMARY
- Housing benefit is an extremely important benefit
for single parent families. In 2007, 42% of single parents were
in receipt of housing benefit, compared to just 6% of couple families.
- Gingerbread recognises the difficult economic
environment and the need for substantial public spending cuts.
We are also conscious of the fact that the housing benefit system
as a whole is long overdue for reform, and in this context we
welcome the approach set out in the 21st Century Welfare
paper, in particular the overall aim of tackling poverty and the
specific objectives to simplify the benefit system and to make
work pay.
- However, we are concerned that the cumulative
effect of the proposed changes to housing benefit (HB) disproportionately
impact on children and families, and thereby risk undermining
other government priorities, in particular the target to reduce
child poverty. We are concerned about the knock-on impact this
will have on children, in particular the potential for growth
in levels of overcrowding and increased disruption to children's
education.
- We believe that the proposal to uprate local
housing allowance (LHA) in line with the Consumer Price Index
(CPI) from 2013-2014 will force low income families who are dependent
on housing benefit into even greater poverty, as rates reduce
over time and become less and less related to actual rent levels.
Half of single parent families are already poor, and this measure
will only serve to compound their poverty as they have to use
more of their income to make up for LHA shortfalls.
- We are also strongly opposed to the proposal
to cut housing benefit by 10% for claimants who have been on jobseeker's
allowance (JSA) for over 12 months, regardless of their compliance
with jobseeking requirements. Given the absence of sufficient
jobs available during school-hours, we believe this measure is
unduly harsh and likely to impact disproportionately on single
parents.
- Where households are required to move because
of the reduction in LHA levels, this is likely to have a particularly
negative impact on single parent families, who rely heavily on
local networks for help and support, in particular for childcare.
- Gingerbread is calling for:
- A delayed introduction of caps to LHA rates to
October 2011, to align with the introduction of 30th percentile
rates and to ensure that households are not forced to move twice
in quick succession if they are affected by both measures
- A comprehensive package of transitional protection
for households with children affected by the LHA changes
- The removal of the proposal to uprate LHA in
line with CPI from 2013-14
- The removal of the proposal to cut housing benefit
by 10% for claimants who have been on jobseeker's allowance (JSA)
for over 12 months, and if not then an exemption for single parents
with children under 16
- The restoration of choice to tenants about whether
they receive their rent themselves or whether it is paid direct
to the landlord.
2. ABOUT GINGERBREAD
Gingerbread is the national charity working with
single parent families. Building on over 90 years of campaigning
and service-delivery expertise, we work with single parents to
understand the particular challenges they face and to ensure that
their needs are met. We provide expert information and advice,
along with membership and training opportunities, and campaign
against poverty, disadvantage and stigma to promote fair and equal
treatment and opportunity for single parent families.
3. THE IMPACT
ON SINGLE
PARENT FAMILIES
Housing benefit is an extremely important benefit
for single parent families. In 2008, 42% of single parents were
in receipt of housing benefit, compared to just six per cent of
couple families.[135]
The high proportion of single parents in receipt of housing benefit
reflects the fact that they are more likely to be poor (half of
all single parents are poor compared to a quarter of couples with
children)[136]
and hence more likely to be living in rented accommodation. In
the second quarter of 2009 in the UK, single parent households
with dependent children were more likely than any other type of
household to rent property rather than own it, with 66% of single
parent households with dependent children renting their homes
(43% from registered social landlords or local authorities and
23% from private landlords), compared to 25% of couple families
with dependent children.[137]
As the DWP's own equality impact assessment shows,
single parents make up almost a third (32%) of LHA claimants[138],
virtually all of whom will be affected by the changes to LHA announced
in the June 2010 Budget. This means that well over 300,000 single
parent families will be facing reductions in their LHA levels
as a result of these changes.
Single parent families rely heavily on local networks
for help and support, in particular for childcare — for
example, evidence suggests that almost half (47%) of single parents
depend on grandparents for childcare[139].
In this context, where single parent families are required to
move because of the reduction in LHA levels, this is likely to
have a particularly negative impact on their ability to work,
as well as their overall interaction with the local community.
4. THE IMPACT
ON CHILDREN
The Department for Work & Pension's equality
impact assessment shows that the groups who will be most affected
by the changes to local housing allowance (LHA) are single parents
and couples with children, and research from Shelter has demonstrated
that the full package of measures will have a negative impact
on households with children.
As outlined above, over 300,000 single parent families
living in the private rented sector (PRS) will be facing reductions
in their LHA levels as a result of these changes, many of whom
will have to move house. While moving house may be characterised
as an acceptable price to pay to reduce the welfare benefits bill[140],
for school-age children it can be deeply traumatic, particularly
if it means they have to move school and this happens mid-way
through the school year.
Alternatively, parents may choose to move into smaller
properties in the same catchment area in order to keep their children
in the same school, but if this leads to overcrowding - even if
this is a deliberate trade-off — evidence clearly shows
that it will also have a negative impact on their children and
on family life[141].
If these changes go ahead, Gingerbread believes it
is essential that a comprehensive package of transitional protection
is put in place for families with children, to smooth the transition
to a new home and to ensure that children are not unduly affected
by these changes. This package of protection measures should include:
- A delayed introduction of caps to LHA rates
to October 2011: This
would align with the introduction of 30th percentile
rates and ensure that households are not forced to move twice
in quick succession if they are affected by both measures. Single
parent families, as well as couples with children, are more likely
to be affected by the caps[142],
and it would be extremely unfair to expect families with children
to move twice, potentially within the space of six months, if
they are affected by both measures.
- Flexibility to allow households with children
to delay a move until the end of the school year:
this could be done in a number of different ways — for example
delaying the introduction of the lower rate until the end of the
school-year, or ring-fencing some proportion of discretionary
housing payment (DHP) for this group and purpose — but overall
would help to minimise disruption for children's schooling.
- Additional assistance for households with
children who have to move house: including
help with rent deposits, moving costs, and costs of furnishings
if necessary.
5. PROPOSAL TO
UPRATE LHA IN
LINE WITH
CPI FROM 2013-14
We believe that the proposal to uprate LHA in line
with CPI from 2013-14 will force low income families who are dependent
on housing benefit into even greater poverty, as rates reduce
over time and become less and less related to actual rent levels.
Half of single parent families are already poor, and this measure
will only serve to compound their poverty as they have to use
more of their income to make up for LHA shortfalls.
We therefore believe that the proposal to uprate
LHA in line with CPI from 2013-14 is an unacceptable step which
would increase levels of poverty amongst low income families,
including single parent families.
6. PROPOSAL TO
CUT HB BY
10% FOR THOSE
ON JSA OVER
12 MONTHS
We are particularly concerned by the proposal to
cut housing benefit by 10% for claimants who have been on jobseeker's
allowance (JSA) for over 12 months, regardless of their compliance
with jobseeking requirements.
Following a separate announcement in the June 2010
Budget, from 2011 single parents whose youngest child is five
or older will be required to seek work. This will follow on from
the change next month (October 2010) whereby single parents whose
youngest child is between seven and ten will be moved onto jobseeker's
allowance and required to seek work. It is worth noting that 56%
of single parents are already in work[143],
and many more would like to be. However, recent evidence from
Gingerbread demonstrates quite clearly that the right kind of
jobs for many single parents — for example those available
in school hours, on a job-share, or flexible in some other way
— are simply not available for the vast majority of single
parents who would like them[144].
In this context, we are faced with a situation whereby
significant numbers of single parents whose youngest child is
five or over will be required to seek work — around 120,000
from October 2010 and an estimated further 100,000 in 2011 —
but many of these will find it very difficult to find appropriate
work. However, if the current proposals go ahead, even if they
have done everything necessary to comply with jobseeking requirements,
if they haven't found a job after 12 months then their housing
benefit will be cut by 10%. For single parent families who are
already on desperately low income levels, we believe this is an
unduly harsh measure which has no clear rationale and which in
no way acts as a work incentive.
We would be keen to see this measure removed altogether,
but if it does go ahead we believe there is a powerful case for
an exemption for single parents whose youngest child is under
16, given the current employment context.
7. RESTORING CHOICE
OVER PAYMENT
We are strongly in favour of giving tenants the choice
of whether they want their housing benefit paid to them, or direct
to the landlord. Many families have welcomed the control that
the LHA has given them in having housing benefit paid to them;
others, perhaps with mental health problems, or struggling with
debt and the insecurity of other income, such as child maintenance
or tax credits (where the unexpected recovery of alleged overpayments
can throw a budget into havoc), have struggled without the security
that direct payments to the landlord can bring.
This situation will become even more acute when claimants'
LHA entitlement is reduced. We therefore urge the restoration
of the situation whereby tenants are able to make an informed
choice regarding payment of LHA to themselves or to the landlord.
Choice should rest with the tenant and what is best for them.
6 September 2010
135 DWP (2010), Family and Children Study 2008,
DWP Research Report No 656. Back
136
DWP (2010) Households Below Average Income 1994-95 to 2007-08. Back
137
Social Trends 40, December 2009, ONS. Back
138
DWP (2010), Equality Impact Assessment: Housing Benefit. Back
139
Bell, A et al (2005) A question of balance, lone parents, childcare
and work, DWP Research Report No 230 Back
140
http://www.mirror.co.uk/news/top-stories/2010/08/26/benefit-cut-then-you-ll-just-have-to-move-house-115875-22514396/
Back
141
Reynolds, L (2004), Crowded House, Shelter. Back
142
DWP (2010) op. cit. Back
143
Labour Force Survey April-June 2009, ONS. Back
144
Gingerbread (2010), Changing the workplace: The missing piece
of the jigsaw. Back
|
