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Welfare Reform Update from Education Otherwise December 6th 2008

Scope
What will happen to lone parents on benefit?
New claimants
Existing Claimants
Briefing Paper from One Parent Families
90, 000 lone parents find job by end of 2009
Lifting children out of poverty
Nuts and bolts of claiming Jobseeker's Allowance
Appropriate affordable childcare
Home educating lone parents
References
Contact details

The Scope of the Proposed Measures

Social Security (Lone Parents and Miscellaneous Amendments) Regulations were made on November 23rd 2008 and came into force on Monday November 24th 2008.

This is the link - http://www.opsi.gov.uk/si/si2008/uksi_20083051_en_1 - for the new regulations, which were brought in under Statutory Instrument 3051 of 2008.

New and repeat claimants for Income Support with a child over age 12 will be immediately affected from this date and will no longer be eligible to Income Support solely on the grounds of being a lone parent. Instead they will have to claim another benefit which is most likely to be a specially modified form of Jobseeker's Allowance for lone parents. The main requirement of JSA is to "seek work for no less than 16 hours a week."

What will happen to lone parents claiming Income Support?

Existing Income Support claimants will receive a letter in the early New Year 2009 notifying them that their entitlement to Income Support will end in around 8 weeks and inviting them to a voluntary interview to discuss options and implications and to process the necessary paperwork for a claim to an alternative benefit.

Education Otherwise has been heavily involved in discussions with the Lone Parent Stakeholder Group at the Department of Work and Pensions and has also met with the new Minister Kitty Ussher. Home educating lone parents are not exempted from the new regulations but JSA claimants have "good cause" to turn down a job offer if appropriate affordable childcare is not available.

The changes will be phased in over 2 years. The only parents permitted to remain on Income Support will be be those who receive Carer's Allowance. Entitlement to CA is only triggered by being the official carer for someone entitled to Disability Living Allowance (DLA) at medium or high rate.

New Claimants no longer entitled to Income Support

DateAge of youngest childHow many lone parents?
24.11.0812100,000
26.10.091068,000
25.10.107121,000

There are slightly different timescales for existing lone parent claimants with a child aged between 12 and 16.

Special commencement provisions for certain existing claimants

http://www.opsi.gov.uk/si/si2008/uksi_20083051_en_1

2.3.09 14 -16
6.7.09 12
October 2010 end Income Support for existing claimants with child over 9
January 2011 end Income Support for existing claimants with child over 7

Briefing Paper from One Parent Families/Child Poverty Action Group

OPF sets out a clear critique of the Government's new measures which you can read here.

During the recession how will 90,000 lone parents find employment in first year of Jobseeker's Allowance?

The latest measures were introduced before the economic recession and recent credit crunch. Originally Government said that the jobs were there and people just needed to be pushed into taking them. Now Government has the same policy in a radically different economic climate, so the new Minister says that the worst of economic times is by an extraordinary coincidence the very best time to put 100,000 lone parents onto a jobseeking programme so that "lone parents do not become further detached from the labour market". You can read more from the Minister at the 6th Delegated Legislation Committee debate here.

Earlier in October 2008 the Department of Work and Pensions told the Social Security Advisory Committee that 60% of claimants move off Jobseeker's Allowance within 13 weeks; 80% of claimants find work or move off benefit by 26 weeks and 90% find work or move off benefit by the end of the first year. You can read our notes from the DWP here.

Lifting children out of poverty?

The Government also says that these measures will lift children out of poverty yet lone parents who cannot comply with the Jobseeker's Allowance regime will have their family income slashed by £24 a week. The leaders of the main political parties have all said that they support Government objectives to raise children out of poverty but many individual MPs are now questioning the wisdom of these particular regulations as a way to achieve this goal.

The nuts and bolts of claiming Jobseeker's Allowance

The Department of Work and Pensions has produced an information pack with details about the recent changes to the benefit system. The links are here:

http://www.dwp.gov.uk/advisers/lone-parent-changes.asp
http://tinyurl.com/5nv3be

You can find out more about the different components of Jobseeker's Allowance here.

Income Support is paid weekly and JSA 2-weekly. At the start of the JSA claim, lone parents will be expected to take out a repayable loan until they receive their first JSA payment. This is attracting considerable criticism from child poverty and lone parent stakeholders.

Normally, JSA claimants are expected to sign on 2-weekly and have an Action Plan for seeking employment of at least 16 hours. This is called the "fortnightly job review" or FJR. Education Otherwise is making the case to the Department of Work and Pensions that home educating lone parents should be able to sign on by post in a comparable way with parents of excluded children and parents in the school holidays who can't get short term childcare. EO already made this point in our submission to the Social Security Advisory Committee in June.

The longer lone parents are on JSA, the more the employment services will step up attempts to get claimants to consider different jobs outside their preferred or specialist field and to investigate other childcare options etc. The first year will be in-house at the JobCentre but the second year will be with privatised employment services. More details available here.

Appropriate Affordable Childcare

Lone parents will only be required to take employment if "appropriate affordable" childcare is available. A huge amount of discretion will be in the hands of Lone Parent Advisors in JobCentres who have not received the relevant training. Education Otherwise had a last minute opportunity to review the guidance which the Department of Work and Pensions will be sending out to all JobCentres. The issue of appropriate affordable childcare is at the heart of the Government's proposals and was one of the major areas of concern highlighted by the Work and Pensions Committee, the Social Security Advisory Committee, the Merits Committee, the Members of Parliament comprising the 6th Delegated Legislation Committee and by all lone parent stakeholder groups and individual lone parents who have responded to Government consultations on these proposals. For the Education Otherwise view on appropriate affordable childcare please read our submission to SSAC from June 2008.

What about home educating lone parents?

Education Otherwise has lobbied the Department of Work and Pensions, the Social Security Advisory Committee and Members of Parliament and Ministers continuously on this issue. We remain adamantly opposed to the introduction of these measures. As we stated in our submission to the Social Security Advisory Committee in June, we believe the proposals to be totally unworkable.

"Whether one accepts the principles behind the change or not, the proposed new regulations are contradictory and confused and require a great deal more planning and consultation. Under the present hastily drawn-up proposals, the entire system will shortly grind to a halt, vulnerable families will be plunged into poverty and the JobCentres will be flooded with expensive and time-consuming appeals. It is not too late to demand that the Government think again. Why wait till it all goes pear-shaped as it certainly will? Why not work to get it right in the first place?"

In addition, we are currently talking to the Department of Work and Pensions and to other stakeholder groups about how we can possibly limit the damage of these measures on home educating lone parents and their families. The DWP has agreed that this is a policy issue and that home educating lone parents should be treated sensitively. More about this can be found in our notes.

Education Otherwise had last a minute opportunity to review the JobCentre training material to see how home educating lone parents could be "treated as available for work" in order to meet the criteria for JSA and not lose benefits.

Fiona Nicholson from Education Otherwise attended a Lone Parent Stakeholder meeting at the Department of Work and Pensions with Minister Kitty Ussher on November 13th 2008. Read the report of the meeting here.

We are preparing a separate briefing paper with FAQ raised by home educating lone parents.

References

Social Security (Lone Parents and Miscellaneous Amendments) Regulations 2008
Briefing Paper from One Parent Families
Information on statutory instruments procedure and more here
Work and Pensions Committee Report 2008
Department Work and Pensions web page on privatised employment service contracts
Department Work and Pensions consultation on scrapping Income Support
Education Otherwise submission to the Social Security Advisory Committees
Social Security Advisory Committee Report 2008
Merits Committee Report October 2008
Transcript 6th Delegated Legislation Committee October 2008
Education Otherwise Briefing Paper on Flexible New Deal Consultation ( SSAC 2008)

Contact Details

For further information or feedback please contact Education Otherwise Government Policy Group or Education Otherwise Disability Group.


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