Poverty and welfare to work
Kate Bell
Gingerbread
Employment central to Labour and Coalition
narrative around poverty:
•
“The Government firmly
believes that work is the most
sustainable route out of poverty.
The challenge for the future is to
ensure that all parents are
supported and encouraged to
cross the bridge back into work
and, wherever possible, stay
there.” (Ending child poverty: everybody’s
business - 2008)
•
“Work remains the best route
out of poverty.” (Ending child poverty:
Mapping the route to 2020 - 2010)
• “At the heart of this fight
against poverty must be
work. I will work to deliver
radical reforms to the welfare
system.”
• “A higher proportion of
children in the U.K. grow up
in workless households than
in almost any other
European country.”
(Iain Duncan Smith, foreword to State of the
Nation 2010)
“I’m not being funny, the Government
are trying to make progress but they
only know what they know, and they’re
living on the other side of the world in a
sense, with money and with capabilities
of doing the things that they want to do.
With us, we’re not. We’re not able to do
the things we want to do, because
money is an issue …”
Clear evidence that (maternal) employment one
part of explaining child poverty rates
internationally:
• “Countries with good child poverty outcomes… [have].. a
combination of three factors: high labour market participation of
parents, low in work poverty and effective income support.” (Child
poverty and child well-being in the European Union Report for the European Commission DG Employment,
Social Affairs and Equal Opportunities Unit E.2)
• 21.5 % of children in UK in jobless households compared to EU
25 average of 10.2%. (Eurostat data 2009)
• “The United Kingdom (UK) is clearly in the top league of
countries to place increased pressure on benefit claimants….
the UK is also among the lowest spenders on ALMPs as a
percentage of the Gross Domestic Product (GDP).” (Anne Daguerre with
David Etherington 2009)
“I have actually thought about the reason why
I’ve been as low as I have. And the root of all
my problems is because I don’t have enough
money coming in the house ... I mean, food at
the moment is a luxury. And the money that
I’m on now doesn’t last, and I can’t go on like
this any longer. And I know that that is the
root, that is my underlying problem.”
Welfare to work for lone parents - initiatives
1997 onwards:
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1998 New Deal for Lone Parents.
2001 - Work Focused Interviews (gradual extension)
2003 - Employment Zone access for single parents
2004 In Work Credit piloted (roll out 2008)
2008 - JSA for parents w. youngest children 12+
2009 JSA for parents w. youngest children 10+
2010 JSA for parents w. youngest children 7+
2011 JSA for parents w. youngest children 5+
Plus NDLP+ pilots, ERA, extended schools childcare,
work search premium…
I mean, I do think that if there was genuine single-parentcentred help to help single parents think about what they
wanted to do with their lives, and there was a bit of trust
as well, that possibly we could make the best choices for
ourselves that then also would be the right solution. If
there was real help that didn’t have an agenda about
what was good for the State, I think it would probably
ultimately help the State and single parents, in the most
rounded way where everyone was benefiting ... And I’m
sure the people in power were given support and help to
get into their positions, and you know, it’s almost like we
deserve a bit of the same respect I feel, to kind of sort
our lives out in a way that’s meaningful to us rather than,
useful for the Government. That’s all I’d say but I know
it’s asking a lot.
Did it work?
100
80
60
40
20
0
Married/cohabiti
ng mothers
Married/cohabiti
ng fathers
Lone parents
19
97
19
99
20
01
20
03
20
05
20
07
20
09
%
Employment rates of working age people
by parental status
Date
No dependent
children
Total
Did it work?
• NDLP - between 10 and 24 percentage point
increase in parents who enter employmnet compared
to non participation - 7 per cent participate.
• WFI - reduction in receipt of Income Support of
around 2 percentage points.
• In Work Credit - 1.4 percentage points more in work
after 24 months (DWP, various).
• JSA? 0.4 per cent increase in employment rate of
lone parents 2008-2009. Role of JSA?
There are no jobs. There’s no jobs. My 18
year old nephew can’t get a job. You know,
and I think back to when I was 18 and it was
easy. I know many of my friends’ husbands,
you know, they’re losing their jobs. I know two
friends, they have lost their jobs.
What else is going on?
• Tax Credits: Increased lone parent
employment rate between 3-5 percentage
points - around 1/3-1/2 of total increase in
employment.
• Economy: 2008-09 2.1 ppt fall in proportion of
partnered fathers, 0.9 ppt fall in proportion of
partnered mothers, 0.4 ppt increase in
proportion of lone parents.
• Childcare? Flexible working?
US evidence:
“Most US studies show that the employment focused
welfare reforms introduced in 1996, and the ‘waiver’
reforms that preceded this, had significant impacts on
caseload numbers, household poverty and the
employment rates of welfare leavers and single
mother households…There has been much analysis
of how work based requirements, tax credits and the
economy contributed to these impacts, with estimates
that tax credits were responsible for about one third
of the change, and the economy and welfare reform
each responsible for another 25 per cent.”
(Finn and Gloster 2009)
What works in welfare to work? - Tailored
services
• Relationship with adviser key to success of
NDLP.
• Confidence building central to working with
single parents. (Hasluck and Green, 2007)
• Evidence from Gingerbread (Peacey, 2009) and EZ
evaluations (Griffiths Durkin and Mitchell 2005) that single parents
prefer some kind of specialist service.
(Evans et al 2003, DWP)
I don’t know, just more intensive sort of help. [The person who
gave CV advice] wasn’t particularly helpful and he didn’t seem
to understand the fact havingnot worked for ten years or
whatever, means you are very out of touch and you’ve got no
confidence and all that business that’s goes with having brought
up children and not being in the workplace, sort of thing. He
wasn’t really sympathetic at all. So, I don’t know, just some help
specifically targeted to single parents really ... They could
probably integrate it more with the NDLP. Cos I feel I have been
put on to JSA and abandoned from the NDLP thing. That’s not
mentioned to me at all any more by the Jobseeker’s people. I
think, somehow if you signed on with the NDLP people instead
with the Jobseeker’s people, then they could give you more
advice. I feel a bit like the lone parent problem bit has been
forgotten because you’re just lumped in with everybody else
who’ve got other profiles.
Work first or training?
• US evidence - mixed programmes most
effective (Portland programme…).
• DWP research 2010 - statistically significant
impact of receiving training on returning to
work for lone mothers. (Cheung and McKay 2010)
• Long term outcomes framework (FND/Work
programme) to avoid dilemma?
“Definitely more help with training. [On IS] we’ve not
sat down and discussed it, like what I’m discussing
with you, what I want to do. It’s just basically, find a
job. And any job, it doesn’t matter as long as you get
a job. But maybe individualise it a bit more, what the
person wants to do, and then try and help them get
the training for that job. Rather than just say, go and
find a course and if you find one give me a ring, or go
and get a job and if you find one, give me a ring.
That’s basically all I’m getting right now.”
Sanctions?
• “One under researched factor is the degree to which
the existence of sanctions stimulates engagement
with services or movements off benefits among the
non sanctioned population.” (Gloster and Finn 2010)
• Review of use of sanctions in UK for lone parents
found that ‘the sanction regime has had negligible
effects on labour market behaviour’. (Goodwin, 2008)
• In US and in UK those sanctioned tend to be those
most disadvantaged in the labour market.
Yeah, what’s going to happen? I dread it.... The thing
is with me, I panic. Because if you don’t turn up or
anything like that they’ll stop your money. Now my
signing on day is on the Tuesday and I sign on at ten
past four in the afternoon ... Last Tuesday I turned up
at half past three, cos I was that scared that
something would happen with the buses. I mean the
buses are every ten minutes, but I’m scared that I’m
gonna be late. I’m panicking, you know, I get
palpitations every time I have to go, am I gonna get
there on time?
Public or private?
• Best evidence from Australia - privatisation - better
job outcomes for half the cost - though mixed views
of service quality. (Gloster and Finn 2010)
• UK evidence? “Over time, there is a marked
convergence between the performance of EZs and
mandatory New Deals. For all their flexibilities,
additional funding and focus on sustainable job
outcomes, EZs results may simply reflect a funding
regime which incentivises short term interventions
and job outcomes.” (Griffiths and Durkin 2007)
• Comparative performance data from FND/Work
Programme?
What’s not working? Helping the furthest from
the labour market
• Evaluations of NDLP/WFI/Ezs all show limited
ability to engage with parents ‘furthest from
the labour market’.
• E.g. "lone parents with literacy and numeracy
difficulties, additional care responsibilities or
long-term illness or disability have been found
to be much less likely than average to start
work following an LPWFI." (Thomas 2007)
What’s not working?
Helping people into long term jobs
• Data from ERA showed 2/5 of single parents entering
work from benefit returning within 2 years (Ray 2010) one NAO study of JSA found 40% return w/I 6
months.
• ERA programme - increased full time work, increased
speed with which moved into full time work, but “little
evidence so far that ERA helped lone parents
advance to better jobs.” (Riccio et al 2008)
•Programmes? Or jobs? “Temporary posts were a
key factor in leaving employment.” (Ray 2010)
•Within the low income group work retention is longer
for those with higher hourly earnings, those in part
time or full time work rather than in mini jobs, the self
employed and those working in larger firms. (Browne
and Paull 2010)
And you think to yourself, well who’s going to
succeed in the long run – it’s not going to be
the single parent, it’s actually going to be the
Government, cos it’s them who’s going to get
the praise, not the single parent. It’s not for
us. They say they’re helping us but they’re
helping themselves, that’s what I believe. I
don’t think they’re supporting us, they’re just
pressuring us.
The wider context:
• In work poverty…
• 58% of local areas say that families have
reported a lack of childcare.
• Gingerbread survey: single parents had seen
no or few jobs they could apply for advertised
at part time hours (62%); within school hours
(97%); as a job share (95%); or flexible in
some other way (97%).
(Daycare Trust)
Conclusions
• Welfare to work matters - but not the sole or
even main influence on parental employment
rates.
• Personal tailored services work for most
parents - but not the most disadvantaged or
to help parents into long term jobs.
• May be scope for further progress looking at
other factors inhibiting parents from getting
and keeping jobs - childcare, flexible working,
job security.
References
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Browne J and Paull G (2010) Parents’ work entry, progression and retention and child poverty DWP Research Report
No 626
Cebulla, A., Flore, G., and Greenberg, D. (2008), The New Deal for Lone Parents, loneparent Work Focused
Interviews and Working Families Tax Credits :a review of impacts, London: Research Report No. 484, Department for
Work and Pensions.
Cheung S and McKay S (2010) Training and progression in the labour market DWP Research Report No 680.
Anne Daguerre with David Etherington (2009) Active labour market policies in international context: what works best?
Lessons for the UK DWP Working Paper No. 59
Evans, M., Eyre, J., Sarre, S., Millar, J., 2003. New Deal for Lone Parents: second synthesis report of the national
evaluation. Research Report. Department for Work and Pensions.
Dan Finn and Rosie Gloster (2010) Lone parent obligations; a review of recent evidence on the work related
requirements within the benefit systems of different countries DWP Research Report No. 632
Goodwin, V. (2008), The effects of benefit sanctions on lone parents’ employment decisions and moves into
employment, Research Report No. 511, London: Department for Work and Pensions.
Griffiths, R. and Durkin, S., (2007), Synthesising the evidence on Employment Zones, Research Report No. 449,
London: Department for Work and Pensions.
Griffiths, R., Durkin, S., and Mitchell, A. (2005), Evaluation of the Single Provider Employment Zone Extension,
Research Report No. 312, London: Department for Work and Pensions.
HM Government (2008) Ending Child Poverty: Everybody’s Business
HM Government (2010) Ending Child Poverty: Mapping the route to 2020
HM Government (2010) State of the nation report: poverty, worklessness and welfare dependency in the U.K.
Ray, K., Hoggart, L., Vegeris, S. and Taylor, R. (2010) Better off Working? Work , poverty and benefit cycling, York:
JRF
James A. Riccio, Helen Bewley, Verity Campbell-Barr, Richard Dorsett, Gayle Hamilton, Lesley Hoggart, Alan Marsh,
Cynthia Miller, Kathryn Ray and Sandra Vegeris (2008) Implementation and second-year impacts for lone parents in
the UK Employment Retention and Advancement (ERA) demonstration DWP Research Report No. 489
TÁRKI Social Research Institute (Budapest, Hungary)Applica (Brussels, Belgium) (2010) Child poverty and child
well-being in the European Union Report for the European Commission DG Employment, Social Affairs and Equal
Opportunities Unit E.2.
Thomas A (2007) Lone Parent Work Focused Interviews: Synthesis of findings DWP Research Report No. 443