Submission to the Joint Committee on Education and Social Protection Wednesday 18 February 2015 One-Parent Family Payment Founded in 1972 as Cherish, One Family is Ireland’s organisation for one-parent families, providing services to people parenting alone, sharing parenting and going through family transitions. Our policy work is rooted in our extensive family support work over the past four decades. One-Parent Family Headlines Today 1. Children in one-parent families are more than twice more likely to live in poverty than a two-parent family. 2. Family-friendly paid work helps to reduce family poverty. 3. Parents need to be supported (financially and developmentally) to access and remain in paid employment. 10 Facts about One-Parent Families in Ireland Today 1. More than one in four families with children in Ireland is headed by a lone parent (215,315 families, (Census 2011) Prof Philip Alston, addressing a conference on taxation justice, February 2015: “The reality, of course, is that there is money available if Ireland chooses to make it available. These social policies are clear choices. These are not choices made by a Government that has no option. They are not choices that are simply precluded because ‘we need to maintain our tax policy’. It is a clear decision not to address the rate of child poverty. It is a decision not to roll back some of the very harmful reductions that had to be taken over the last seven or eight years. These are conscious decisions, not matters that are beyond our control.” 2. Almost one in five children (18.3%) lives in a one-parent family in Ireland, far higher than the European average of 13%. (Census 2011?) 3. 56% of people parenting alone are aged between 25 and 39 years old; 31% between 40 and 66. (Census 2011) 4. 63% of one-parent family households in Ireland suffer deprivation (SILC Report 2013). 5. Enforced deprivation was experienced by 30% of the population in 2013, up from 26% in 2012. 6. The deprivation rate for those at risk of poverty increased from 46% to 53%, which proves that the income gap is widening (CSO 2015). 7. 53% of lone parents are in the labour market, compared to 60% in 2012. 8. Participation of lone parents in Community Employment is down to 9% from 33% in 2012,. 9. One-parent family households account for only 0.7% of total net wealth (CSO 2015). 10. In July 2013 there were 78,586 recipients of the One Parent Family payment which will be reducing to 45,000 or fewer in 2015. Policy Result: Creating In-Work Poverty in 2015/Government Policy has Created inwork Poverty? In July 2015, 39,000 recipients of the One Parent Family Payment (OFP) will lose the payment. This was as a result of the decision announced in Budget 2012 to restrict eligibility for the OFP to those parenting alone whose youngest child is aged seven or under. Most will be transitioned to the Job Seekers Allowance Transitional payment (JSTA). Previously Táiniste Joan Burton TD highlighted two reasons for the decision: The high rate of poverty among one-parent families in spite of considerable expenditure on social welfare. The desire to support one-parent families in getting employment, in order to tackle poverty. One-parent families have the highest rates of poverty and deprivation of any family type in Ireland with 29% at risk of poverty and almost 50% experiencing basic deprivation, with 63% of all oneparent household experiencing deprivation. The need to address poverty is clear. The Job-seekers Transition Allowance is a step forward in recognizing parents needs, however: • there has been inadequate planning for it implementation: • there are no supports in place, such as bridging programmes; there is no ‘package’ put together to ensure the smooth transition form one payment to another • there are no specific plans for individual engagement; • local Education and Training Boards are unaware of the increase demand for courses we know this through our conversations with the ETBs; • the approach to communications is poor with local front-line officers not being trained in departmental policies; 2 • parents in receipt of the OFP do not have equal access to all of the government activation measures, and as yet it is not clarified if those on JSTA will have immediate access to programmes such as MOMENTUM; • the retention of the income disregard of €90 is more positive than cutting to the planned €60 but it has been cut from €146 since 2012 which has lessened earnings in low-income families; • the new child care provision (ASCCS) only lasts for twelve months, is not available for existing workers and does not take into account existing childcare relationships; and • the Single Person Child Carer Credit discriminates against those sharing parenting because the tax credit is not allocated or shared by both parents. Long term, passive recipiency of a social welfare payment is in no-one’s best interests. However, penalising those one-parent families already in employment and making it more difficult for those who might be considering taking up employment, education or training makes no sense and will result in government policies not working and higher levels of child poverty. Policy Impacts 2015 1. This already has and will make it more difficult for people parenting alone to take up employment, education or training opportunities. This is because they will no longer have access to the features of the OFP which were designed with the additional needs of those parenting alone in mind. The reform of the OFP was introduced concurrently with the full removal of payment for Community Employment Schemes and the slashing of the income disregard and changes to education support. The cumulative impact of this has meant: Numbers participating in Community Employment have gone down from 33% to 9%. Parents being financially unable to sustain their third level education. Parents unable to take up training and up-skilling options. Parents have givenup part-time employment. In order for the Government’s activation policy to be successful, it is vital that the appropriate supports need to be put in place and this has not happened. 2. The loss of the OFP is and will be most keenly felt by lone parents who are already in employment. Lone parents make rational choices for the well being of their family. One Family knows lone parents who are earning €200 per week net income, combining part-time employment with the OFP and Family Income Supplement (FIS) and this reform has meant they have had a loss of income of around €70 per week. Given this One Family can only predict that more will follow. This is in spite of an increase in the Family Income Supplement payment, which, while vitally important, is not enough to 3 compensate fully for the loss of the OFP. It is likely that this loss of income will make it impossible for many lone parents to stay in employment. This cut comes on top of the other significant cuts to incomes and services that have particularly targeted one- parent families. 3. One-parent families who wish to take up education or training opportunities are struggling due to the loss of the OFP. Parents are dropping out from their final year of degree programmes because of a lack of joined-up planning and implementation, and more will do so come July 2015. The payment can be claimed by those parenting alone and undertaking education or training courses, along with a student maintenance grant. Those who lose the payment but who wish to take up education or training will now have to claim the Back to Education Allowance. This cannot be claimed at the same time as a student maintenance grant. This further disadvantages one-parent families on low incomes with limited resources and high levels of caring responsibilities. It will be too much for many who will now not take up education and training opportunities as a result. 4. The loss of the OFP when the youngest child turns seven years old will undermine Government’s stated objective of supporting those in jobless households and assisting families in low paid work. The development of a system of quality childcare and afterschool care that is affordable and accessible would have supported the Government’s objective of tackling poverty and joblessness. Such a system would have provided real support to all parents, particularly those with low earnings potential, to enter and remain in the labour market. 10 URGENT actions for Government and the Department of Social Protection (DSP) 1. The over-arching aim must be to ensure that work pays and is seen to pay. 2. Provide parents with timely, accurate, clear, objective and complete information about the transition arrangements, programmes, services and initiatives. Hold information sessions when children are at school and not in mid-term time. 3. Employ a variety of ways and means to communicate, and provide information in multiple formats to accommodate diverse needs regarding the transition arrangements and that those that are facilitating the information sessions have the appropriate facilitation skills 4. DSP needs to take responsibility for the impact their policies will have on families who are in need of service from other departments. For example out of school care; smooth transitions through education and training, bridging programmes; one to one engagement. 5. Ensure that social welfare local office front desk clerks become aware of changes and their detail and consequently can answer queries. Profound efforts need to be made to ensure that front-line staff are knowledgeable and competent in giving the correct information in a respectful, professional and customer focused manner. 6. Encourage public service managers and employees to communicate openly with parents about policies, programmes, services and initiatives for which they have responsibility thus ensuring comprehensive understanding of JSTA and ACCS across the whole of the DSP 7. Put in place a system of one to one engagements with lone parents and consider Obair as the local partner in delivering given their expertise and ability 8. As a point of urgency clarify and ensure that those lone parents in education will not be financially compromised by the transition forcing them to drop-out of their course as this would be entirely against Government policy. 4 9. Listen to and take account of parents’ interests and concerns when establishing priorities, developing responses , and planning programmes and services,working from a place of respect and acceptance of one parent families. 10. Actively consider enabling access to free part-time education options for those parenting alone: this is both cost effective and good activation policy and practice. Economy and the Labour Market The headline recovery in the jobs market disguises four key social and economic challenges for those parenting alone and anyone low income families which are that: 1. Earnings have fallen by 8.5% in real terms since 2009. 2. Living standards among low income families have stagnated. 3. Working poverty is increasing with a majority of poor one-parent families now in working households. 4. Job insecurity is up, with more parents in temporary or part-time work. It costs a lone parent more than a couple to bring up a child because there is only one adult to make offsetting savings from their own living expenses. Therefore, financing childcare becomes an excessive burden on family living costs. Childcare is an economic issue: good quality, affordable and accessible childcare is a pivotal part of Ireland’s economic development proposition. It also provides good employment opportunities. It is important to consider all approaches to financially supporting childcare particularly statesubsidised quality child and out of school care. Future and Long-term Consequence for Government and the Department of Social Protection 1. Understand why those parents in low pay do not progress, and what more can be done to improve job retention, pay and progression. 2. Ensure that employment and skills systems become more cohesive to support retention and progression: this is critical because improving progression will be central to delivering the Government’s ambitions on social mobility and welfare reform. 3. Ensuring they act now to address these challenges is of overriding importance if they are to help future growth to become more equally shared and to prevent more child poverty and costs into the future, and subsequently failure of policies. 4. Children in one-parent families are more than twice as likely to live in poverty. Parents in one-parent families are twice as likely to suffer from depression. Flexible paid work reduces child poverty and according to recent research, also reduces depression rates, and poor quality employment impacts on a child’s well-being. 5. Parents need to be supported to remain in paid employment. Parents are the most important people in their children’s lives. All parents need support at particular times, for example during family separation, unemployment or ill health might mean that they need extra help. Time constraints, poverty,someone’s social and economic background, cultural identity, discrimination, previous negative experiences, literacy difficulties, language, or different abilities, can also make it difficult for parents. DSP must recognise that they were 5 the creators of the passive welfare system and that they need to be a major part of the solution which can benefit all parents and families. And in that context it is important to remind ourselves why the Department of Social Protection exists : a. Social protection is a human right as well as a social and economic necessity. b. Social protection is a factor in alleviating poverty, in helping cope with risks, and in adapting to changing economic, political, demographic and societal circumstances. c. Social security has a pivotal role in delivering income equality. Social protection policy overall is universalistic, in practice tailoring needs to be used to make universalism effective; in which low-income families and in particularly one-parent families, involves the fine-tuning to enhance the effectiveness of universal social programmes and practices. Recommendations: SMART Plan for the Reform of the One Parent Family Payment submitted to the Advisory Council on Better Outcomes Brighter Futures 2015 Lead and Partners 4.4 Reform the OneParent Family Payment Scheme so that lone parents have access to a range of supports and services designed to provide them with pathways to work while acknowledging their caring DSP lead DCYA DES DJES Whole of Government and outcome- 2014 Continue implementation of reductions in the age threshold on a yearly basis and support move to the Jobseeker’s Allowance payment, including the transitional arrangement & other income supports as appropriate. Develop, communicate clearly written and explained information pack regarding the 2015 Continue the implementation of the reductions in the age threshold on a phased basis each year and support move to the Jobseeker’s Allowance payment, including the transitional arrangement and other income supports as appropriate. This involves transitioning approximately 41,158 customers from the OFP scheme to other income supports as appropriate. 2016 Complete the implementation reductions in th threshold and s move to the Job Allowance paym including the transitional arrangement an income support appropriate. 6 responsibilities. based budget solutions transition to the Job Seekers Transition Allowance including financial assistance and supports as well as employment and education servicesPrevious recipients of OneParent Family (OPF) payments who move to a normal Jobseeker’s Allowance payment will be selected for activation and receive access to all available educational/employment supports to move them back into the workforce. Previous OPF recipients on the Jobseeker’s Allowance transitional arrangements will receive a one-to-one meeting with a Case Officer who will guide them through the available education and employment supports to move them into the workforce. Train case officers to advise and deliver a ‘gateway’ service ensuring that the needs of one parent families are reflected in their guidance. Within the 121 meetings ‘making work pay’ calculations must be undertaken; Childcare and out of school care systems should be fully and clearly explained. An integrated service response agreement needs to be in place across the whole of government and its agencies. All activation programmes including MOMENTUM should be open immediately to JSTA recipients Effective discussions should be undertaken with DES, DCYA, Solas, ETBs on the provision of training and skill development opportunities for those parents making the transition off the OPFP DES should give consideration to enabling, where appropriate, JSTA recipients to access free part time education options at 3rd level thus helping to alleviate some of the challenges around the provision of childcare and out of school care Given the large numbers leaving the scheme in 2015, the process for activating previous OPF recipients now on a Jobseeker’s Allowance payment will need to be integrated into the wider activation processes and targets. These recipients will be activated and given access to the necessary employment/educational supports to move them into the workforce. DSP and DCYA- A national strategy and policy on the provision; quality; accessibility and affordability of out of school care. DSP and DESJ equality and eq one-parent fam across all job ac measures. Build and prom access program 3rd level which recognises the n one-parent fam ensure retentio programmes Monitor, evalua review activatio regimes for one families Develop and im and engagemen strategy for reci OPF DES and Solas- Specific access and conversion programme made available in STEM areas for oneparent families Have knowledgeable and specialist OPF officers in local offices who act as the ‘go to’ source for information. DSP & DESJ A part-time JobBridge option should be enabled for one-parent families and/or additional support for childcare associated with JobBridge Develop and promote a joint communications strategy and operation between DSP and the C&V sector to ensure clear information is given to OPFs. DSP- Specific Community Employment programme for One Parent Families which includes personal and interpersonal development and career planning. A joint management group is developed to advise and scrutinize the transition to JSTA including the C and V sector. Charge Obair to work with those OPF recipients who are transitioning to JSTA Bridging programmes and supports (personal and interpersonal development as Continue to act previous OPF re who move to a Jobseeker’s Allo payment and pr the necessary education/emp supports to mo into the workfo DSP Develop and promote a national media campaign to inform OPFs of the transitions. 7 well as career/educational/ training planning) should be made available to ensure an effective transition to the Jobseeker transition Allowance Solas and ETBs need to be made ready and have propositions in place to meet the demand from parents transitioning A programme of tailored supports; education; welfare to work initiatives need to be made available DSP DESJ- build and promote a coalition of family-friendly employment policies and practices which supports new ways of working ensuring that OPFs are neither discriminated nor penalized within the work-fore Build and develop public sector work opportunities for OPFs Develop and promote a OPF Charter across the whole of Government ensuring a fully integrated service plan. DSP should use The Activation and Family Support Fund to target the delivery of personal and interpersonal development as well as career planning for OPFs at community level for the next 3 years 8