Rationale, priorities and recommendations for Budget 2013 A Budget for Achievement New Futures Graduation 2012 Ensuring work pays & social assistance works 1 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 As in recent years, One Family’s pre-budget submission and recommendations addresses income security and the need for a tailored income support system that ensures that everyone, regardless of circumstance, can live with dignity in Irish society. One Family believes in an Ireland where every family is cherished equally, and enjoys the social, financial and legal equality to create their own positive future. One Family is working to ensure a positive and sustainable future for all members of one-parent families in Ireland – focusing on attitudes, services, policies and lives. Together with one-parent families and those working with them, we are committed to achieving equality and respect for all families. In addition to striving for fundamental structural change, we support individual oneparent families as they parent through times of family, work and life change. We know that every Our Motivation: family is unique, and so we work in a family Addressing slow centred way to bring about better lives for growth and parents and children. continued The ongoing fragility of Ireland’s economic uncertainty requires recovery demands a strong commitment to assertive and proactive social policy interventions that reduce constructive action poverty levels, tackle the growing inequality in our society and address social exclusion. Everyone, regardless of circumstance has a right to live with dignity and have the opportunity to participate in the life of the country. Ireland’s social assistance system should be based on sound social welfare policy that is focused on long-term stability and equality. Unfortunately the Government has shown that it does not recognise the long-term social and economic costs that its decisions are incurring as it focuses solely on short-term fiscal concerns. The Government must keep in mind that while the social welfare policy it is creating may need to be aligned to Ireland’s economic and labour market policies and present conditions, it should not be driven by or boxed in by them. Poverty reduction and equality for all must be the stated goal of government, especially in these difficult economic times. Ensuring work pays & social assistance works 2 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 1 in 4 families with children in Ireland is a one-parent familyi Over half a million people are part of a one parent familyii The most economically deprived families in Ireland are one-parent familiesiii Lone parent families were one of the worst hit groups financially by Budget 2012iv Access to out of school childcare services are limited or not affordablev It was estimated a lone parent lost 5% of their income as a result of Budget 2011 whereas a high earning married couple lost only 1.3%vi Ensuring work pays & social assistance works 3 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 Challenges 1. Those parenting alone are disproportionately at risk of poverty as they struggle to run a household on only one income 2. The gender pay gap is a significant issue for lone parents as the majority of those parenting alone are women. Latest figures for the gap between men and women stands at 17.1%vii 3. Ireland has one of the highest costs of childcare in the European Union, placing those raising children alone in an almost impossible position to gain financial independence 4. Care-giving and child-rearing roles are not recognised and accommodated in the workplace, which places those with children at a distinct disadvantage to others 5. Participation agreements for education, training and employment are not flexible enough to accommodate those who have caring responsibilities for others Recognising and responding to the complexity of the lives of those who need social assistance enables interventions to be effective and achieve sustainable long-term outcomes and impacts. i ii iii iv v vi vii Ensuring work pays & social assistance works 4 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 A Call for an Equity Approach to Social and Employment Supports and Services ‘From each according to their ability, to each according to their need’ Equity means that people with different needs are supported in different ways to achieve equal outcomes.viii While those in receipt of social assistance are all in need of support, their needs, experiences and circumstances are different. If Ireland’s welfare system is to help people back onto their feet, it must recognise these differences and respond to them. The Government must also be mindful of the larger, structural barriers that continue to impede people’s efforts to move off welfare and that result in unequal access to the labour market. The needs of parents in their roles as caregivers continue to go unrecognised and inadequately supported in Irish society. This has resulted in a situation of “double disadvantage” wherein parents, particularly those parenting alone, are disadvantaged in the economy and society and become further isolated by the conservative response from the Irish social assistance system. We have to seize on this budget as an opportunity to build a system that addresses and responds to these barriers.ix The current social assistance system tends not to meet the needs of families in transition who rely on it and the economy that depends on it. It fails to provide for the long-term well-being of families in transition and their children and can exacerbate poverty and social exclusion. It stigmatises recipients and the persistent culture of suspicion alienates and frustrates the very people it is meant to serve. The philosophy, codes, and rhetoric of the system encourage negative stereotyping of recipients. While it is recognised that the system is faced with an extraordinary demand for its supports, failure to move to a more engaged and enabling service will lose the opportunity to help people avoid falling into long-term dependency. The cumulative effects of the cuts of Budget 2012 on the social protection system only worsened the lives of those already struggling to survive the unprecedented economic crisis. A top priority for Budget 2013 must be to maintain income support programmes and avoid repeating the mistakes of Budget 2012.x Rushing to reduce the deficit by making severe cuts to social spending is short sighted, both economically and socially. It will cause severe hardship for vulnerable people, unnecessarily prolonging the recovery and create social and political deficits that will take decades to eliminate. To continue to take from those most in need will serve only to worsen their prospects for the future and those of the country. The best way forward is to set the foundation for a sustained recovery through strategic investments in our social safety net. One Family proposes that the Government adopt an equity approach to Budget 2013. Such an approach would begin by seeking to better understand the population of people that are using or may need to use the social welfare system. This will require a better Ensuring work pays & social assistance works 5 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 collection of data and a greater consideration of such evidence in the formulation of policies. Adopting an equity approach is to use this understanding to design the system– and the supports and services it offers – in ways that not only provide better quality employment-related supports, but also respond to the specific barriers faced by families in transition and in particular those parenting alone. Ireland’s social assistance programmes must incorporate an explicit objective to move people out of poverty, by offering meaningful support opportunities for those who can work and ensuring that those who cannot are able to live with dignity. Ensuring work pays & social assistance works 6 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 Summary of One Family’s Priorities & Recommendations for Budget 2013 A. WORK-LIFE BALANCE Recommendation 1: Initiate flexibilities in the social assistance and support system to reflect and respond to family circumstances. Recommendation 2: Commit to support to the further development and provision of accessible, affordable and quality childcare, recognising its role in achieving economic and social prosperity for all. B. FURTHER EDUCATION AND TRAINING Recommendation 3: Provide mechanisms for accessible specialised bridging/skill development programmes for families in transition, particularly those parenting alone and that reflects and responds to complex needs of families. Recommendation 4: Build and deliver a responsive Labour Market Agreement Plan that creates a bridging link between training and future employment for those parenting alone. C. ASSURED HOUSING Recommendation 5: Commit to a gradual repurposing of the €500 million lost to private landlords annually for the establishment of a sustainable social housing stock, beginning with an initial assessment of the suitability of NAMA assets. D. INCOME SECURITY Recommendation 6: Promote and deliver in-work (tax) credits, in-work assistance and tackle the backlog of FIS to ensure that ‘work pays and assistance works’. Recommendation 7: Acknowledge that consistent and persistent child poverty is a serious concern for Ireland’s future and prioritise poverty-proofing of forthcoming budget adjustments that will protect those most vulnerable Ensuring work pays & social assistance works 7 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 One Family’s Recommendations for Budget 2013 A. WORK-LIFE BALANCE Flexibilities For those parenting alone, whose primary responsibility and duty of care is to their children, labour activation policies need to facilitate and encourage those parents in their employment efforts, by acknowledging and responding to the needs and supports around childcare and personal and career development.xi Recommendation 1: Initiate flexibilities in the social assistance and support system to reflect and respond to family circumstances If Government is to provide meaningful engagement and tailored support for those moving back into the labour market, they must recognise the needs of and demands upon those parenting alone. The caring responsibilities of lone parents necessitate flexible conditionalities; safeguards that ensure parenting responsibilities are not compromised by welfare-to-work obligations which are designed specifically for people without a duty of care to others.xii It is vital that employers are encouraged to support flexibilities to enable parents to participate successfully in the workplace. Engagement with employers is pivotal for the delivery of sustainable flexible work opportunities for lone parents who need help balancing their professional and parenting responsibilities. A Childcare Framework Government are charged to commit to protecting childcare spaces in both the short and long term, for families in transition and particularly for those parenting alone. The lack of access to quality and affordable childcare is a fundamental challenge to participation in the labour market and one that needs to be addressed.xiii Recommendation 2: Commit to support to the further development and provision of accessible, affordable and quality childcare, recognising its role in achieving economic and social prosperity for all Wrap around childcare includes before school starts and after school care. Childcare needs to be local, so that parents can access it. One value for money solution to providing the necessary funding for childcare, is to realign the Community Employment Scheme, so that CE workers help to deliver such a service. The attendant service and skill development would support best practice and provide an in work accredited career pathway for participants, which will assist in the provision of locally accessible child and afterschool care. Engagement of the Department of Education & Skills is critical for successful delivery.xiv Ensuring work pays & social assistance works 8 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 B. FURTHER EDUCATION AND TRAINING Personal & Professional Development Jurisdictions such as Norway, Sweden, Denmark and the Netherlands have recognised the long-term benefits of a model of social assistance that invests in skills development and adequate supports to take people out of poverty.xv This human capital development approach links investments to longer-term benefits for individuals and the community as a whole. To join the growing ranks of jurisdictions undertaking this positive change, Ireland’s culture of intrusive monitoring and punitive rules needs to be replaced with a focus on personalised assessment, collaborative planning and flexible supports. Government must engage with the mandate to initiate outcome-based budgeting to improve the access of families in transition and in particular lone parents to sustainable careers and education opportunities. This approach is an effective interdepartmental investment that will allow lone parents to improve their educational and career competences, which will result in one-parent families lifting themselves out of poverty. Recommendation 3: Provide mechanisms for accessible specialised bridging/skill development programmes for families in transition, particularly those parenting alone that reflect and respond to complex needs of families The labour market continues to undergo developments with higher educational achievement becoming a prerequisite for work.xvi Budget 2013 is the opportune vehicle to help reconnect recipients with effective education/training and employment supports in order to respond to this trend. This could be accomplished through: Personalised assessment and high quality vocational and career counselling with flexible support options. Strength-based case management: realistic goal setting with manageable steps and supports. Individual holistic solutions that define success as improving employability even if there is no immediate job outcome. Adequate collateral supports for training and employment (childcare, transportation, etc.) Industry-specific and sectoral strategies that provide strong connections to employers and improved career advancement prospects for those parenting alone, particularly in STEM focused jobs and careers. Ensuring work pays & social assistance works 9 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 Recommendation 4: Build and deliver a responsive Labour Market Agreement Plan that creates a bridging link between training and future employment for those parenting alone Establish a Labour Market Agreement Action Plan There is a gap between training, skill development and securing employment. The action plan tactic will particularly bridge the gap between labourmarket entry and further career enhancement. It must be designed to specifically address and target recipients of the One Parent Family payment and families in transition who are at a higher risk of deprivation than other families. This approach requires effective inter-ministerial cooperation to reach these target groups providing an opportunity to create meaningful skills training, education and employment supports. Joint funding through the mechanics of outcomebased budgeting combined with an integrated product of income support will create a wrap-around employment / skills development programme. In turn, this addresses social exclusion and stigma concerns and creates the potential for building a strong planning and support system for people on welfare particularly those families in transition.xvii C. ASSURED HOUSING Sustainable Housing Tactics Recent housing figures show that Ireland has a surplus of housing stock and a vacancy rate of 14.5%.xviii Recommendation 5: Commit to a gradual repurposing of the €500 million lost to private landlords annually for the establishment of a sustainable social housing stock, beginning with an initial assessment of the viability of NAMA assets Housing is fundamental in shaping a child's life. Lone parent families all share the same constraint - that there is only one potential “breadwinner” and one carer to share the load of family responsibilities. Those parenting alone and their children often experience overcrowded accommodation and/or have been forced, due to rent support systems, into more insecure, expensive and poor quality privately rented housing. For those parenting alone the interaction between housing and other social assistances can limit how much better off lone parents are as they move into work. Ensuring work pays & social assistance works 10 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 There is a growing recognition that a comprehensive approach to lone parent families, which includes addressing their housing needs as a key component, could have significant economic and social benefits.xix The provision of good quality assured housing addresses a number of key messages for housing policy makers and influencers - both local and national, which can be summarised as: Lone parents have the same housing aspirations as all families with children – a good quality, affordable family home, with a garden and near to local amenities including safe children's play areas. Since the end of 2007, the Government has spent €1,970 million on rent supplement which has gone directly to the private sectorxx. There is a clear potential to gradually redirect that figure into a long-term investment in social housing which would not only hold the possibility for a long-term cost neutral solution, but would provide secure housing for low to middle income families. There is a potential first step in assessing the viability of NAMA assets and repurposing those suitable for social housing. This entails Ireland developing a comprehensive housing strategy based on a voluntary housing and assured tenancies model that over time,xxi can achieve affordable quality housing across the State. The range of clients would expand beyond the current groups to include: General needs housing for affordable rent Housing for people in extreme housing needs Shared equity housing for sale Mid-rent housing Our proposal for Mid-Market Rent (MMR)xxii housing is designed to assist households that are unlikely to be successfully housed by the local authority due to the pressures on housing supply. It can support households who have incomes generally in excess of that normal for social housing but less than that applicable for market/private rent housing or for securing a mortgage. In general, we propose that applicants could be considered subject to meeting a combination of the following criteria: They are current tenants in the private sector. Applicants have independent means enabling them to pay rent without immediate recourse to supports. Applicants are normally economically active. Applicants with net disposable incomes restricted as a consequence of unavoidable deductions - where these can be defined. In the allocation of Mid-Market Rent properties, preference could be given to: Those living in private rented housing. Those living with family, friends or relatives. Those lacking security of tenure in their current home. Owners of properties where a change of circumstances (e.g. health or relationship breakdown) is forcing or requiring a move. Ensuring work pays & social assistance works 11 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 Those either currently occupying or holding positions on waiting lists in respect of a local authority property. In this way, such an initiative will help to resolve some of the long-standing issues around low-income and those caught by the current rent assistance poverty trap, to secure quality assured housing for those in need and in particular those parenting alone. D. FAMILY INCOME SECURITY In-Work Benefits Lone parents transitioning from social assistance to waged work should not be penalised and should gain financial benefit from this move. The “work incentives” currently in place as well as the continuing erosion of income disregards do not support parents entering the labour market.xxiii Government must initiate and commit to supports for low-income families to ensure they receive (tax) credits and assistance aimed at improving incomes, for example the Family Income Supplement. The current backlog, reported by the Minister of Social Protection as being over four months, has a detrimental effect on the sustainability of the employment, but also on the well-being of the households involved.xxiv Inwork assistance initiatives and supports improve Recommendation 6: the incomes of low-income families (and in Promote and deliver inparticular those parenting alone). They are vital work (tax) credits, intools in engineering financial independence and work assistance and mitigating the impact of the increasing costs of tackle the backlog of taking up employment. Government must Family Income ensure that it pays to work and to make this the cornerstone of the Government’s welfare to work Supplement to ensure strategy. that ‘work pays and assistance works’ Budget 2013 must review and take affirmative action on the operation of the income disregard by considering its conversion to a tax credit and the effective and efficient use of the tax system to make work pay. Work must pay in order for activation to work successfully.xxv If income support is provided through an integrated tax system we can ensure that low-income families and in particular lone parents are given the support they require to effectively benefit from their implementation. Budget 2013 should actively promote income security, widely publicising the various supports and assistance available to low-income families, families in transition and in particular those parenting alone. Ensuring work pays & social assistance works 12 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 Supporting Children Government must ensure that changes to child benefit are equitable.xxvi Steps must be taken in Budget 2013 towards achieving an equitable provision of support for all families with children, particularly those parenting alone. Recognising that the financial resources of families are different, we recommend a two-tier approach to child benefit: i. The first tier would be an unconditional income payable for each child as a right. ii. The second tier would exist to address the income differences present between households. It would be seen as a taxable income. Consideration must be given to exempting child support payments from lone parent income assessments in full or in part. The objective of child Recommendation 7: support payments is to ensure that a child’s standard Acknowledge that of living is not negatively impacted by partnership consistent and breakdown. The Department of Social Protection persistent child poverty tends to continue to deduct child support euro-foreuro from the benefits of the parent who receives is a serious concern for them, particularly if in receipt of secondary welfare Ireland’s future and payments (e.g. rent supplement). This practice runs prioritise povertydirectly counter to the Government’s poverty proofing of forthcoming reduction agenda, guaranteeing that children will budget adjustments that continue to live in poverty by capping a lone parent’s will protect those most income. Reducing or eliminating child benefit deductions allows families in transition and in vulnerable particular those parenting alone to better provide for their children and thus increase their quality of life both now and into the future. This policy change would also increase the incentive for the non-custodial parent to pay child support, as well as that of the custodial parent to pursue child support. Ensuring work pays & social assistance works 13 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 Reflections for policy-makers on Budget 2013 Our current social assistance policy does not match the commitment to poverty reduction. Choices that have to be made must promote a significant investment in childcare and early learning, showing that even in difficult economic times Ireland is committed to protecting its most vulnerable. Unfortunately to date, there continues to be dissonance between poverty reduction, current social assistance policy and activation tactics. Linking social assistance with the vision of poverty reduction will mean finding ways to move away from a punitive programme that blames individuals for their poverty, to one that recognises that poverty is a societal problem that can only be addressed through public policy. Social assistance needs to be re-imagined as a system or set of systems that lift people out of poverty. Poverty reduction and building personal capacity for fuller participation in the community and the labour market should be explicit objectives of the system. Social assistance should be seen as an opportunity to identify and support people who are at risk of persistent poverty. A long-term programme for families in transition and in particular those parenting alone, who are unable to achieve financial independence through work and who are often marginalised in other ways because of their family circumstances. Our Advocacy One Family advocates a number of concrete steps that government can take to ease the burden of the recession and continued slow growth, and to help Ireland’s families in transition to prepare for a return to better times. Not only is an investment in in-work and or education/training benefits socially responsible, it is also the economically prudent thing to do. Putting money into the hands of low-income families and in particular lone parents puts it back into local economies and communities who most need it. Increases to incomes will go directly to the purchase of food, clothing and other household necessities, benefiting not only lowincome families but also our national economy. Toward an integrated social assistance system that reduces poverty Social assistance has the potential to create the kind of economy that will better support families in transition grappling with change. But this long-term thinking must be accompanied by short-term action – the kind that can assist with both short-term and long-term income support needs. The current fragile state of economic recovery demands that we take steps to improve social assistance programmes in the interim. Our recommendations for Budget 2013 are therefore aimed at ensuring that better supports are provided for families in transition on social assistance. These changes will Ensuring work pays & social assistance works 14 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 have the associated benefit of responding to continuing challenges in Ireland’s economy, helping families, particularly those parenting alone who are struggling to make ends meet. Helping people to better participate in and benefit from inclusion in the economy and community will both encourage economic activity over the short term and provide a strong foundation for longer-term economic growth. One Family looks forward to working with the government and other stakeholders in this transformation of Ireland’s antiquated social assistance system. As the transformation begins, it is crucial that existing programmes and allowances be kept in place. New supports and programmes must be fully implemented before cuts or reductions in current benefits are made. Incomes for people on social assistance are so marginal that every Euro counts. Ensuring work pays & social assistance works 15 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 Endnotes i CSO. (2012). This is Ireland: Highlights from Census 2011, Part 1. Dublin: Stationary Office. ii Ibid. iii CSO. (2012). Survey on Income and Living Conditions. Dublin: Stationary Office. TASC. (2011). Roadmap to Greater Inequality: TASC’s Response to Budget 2012. Retrieved from Tascnet.ie: http://www.tascnet.ie/upload/file/Roadmap%20to%20Greater%20Inequality_final.pdf iv vBarry, U., and Sherlock, L., (2008), Provision of Childcare Services in Ireland UCD School of Social Justice Working Papers Series Number 8(1):1-31 TASC. (2011). Winners and Losers?... Equality Lessons for Budget 2012. Retrieved from Tascnet.ie: http://www.tascnet.ie/upload/file/Winners%20and%20Losers%20141111%20final.pdf vi EU Commission (2011) Tackling the Gender Pay Gap in the European Union. Luxembourg: Publications Office vii Professor Sir Michael Marmot (2007)Achieving health equity: from root causes to fair outcomes (2007) on behalf of the Commission on Social Determinants of Health, in The Lancet, Volume 370, Issue 9593 viii Murphy, M., (2010), ‘What future lies ahead for the Irish welfare state?’, Irish Journal of Public Policy, A peer-reviewed journal providing an electronic open-access forum for politics, political science, government, public policy and public administration ix TASC. (2011). Roadmap to Greater Inequality: TASC’s Response to Budget 2012. Retrieved from Tascnet.ie: http://www.tascnet.ie/upload/file/Roadmap%20to%20Greater%20Inequality_final.pdf x Gingerbread UK (May, 2012), It’s off to work we go? Moving from income support to jobseeker’s allowance for single parents xi Lister, M.R.A.,(2002), ''The dilemmas of pendulum politics: balancing paid work, care and citizenship'', Economy and Society, 31(4), 2002, 520-532, ISSN 0308 5417. xii EuroChild, (2012), Overall assessment of the SPC advisory report to the EC on “Tackling and preventing child poverty, promoting child well-being” & suggestions for future actions xiii xiv One Family, (2012), A Platform For Progression xv EuroChild/OneFamily, (2010), Family & Parenting Support Study Tour to Sweden and Denmark National Skills Bulletin, July 2012, EGFSN xvi xvii The Economist, (2006), Denmark's labour market Flexicurity: A model that works xviii CSO. (2012). This is Ireland – Highlights from Census 2011, Part 1. Dublin: Stationary Office Bradshaw, P., and Wasoff, F., (2008) ‘growing up in Scotland, Sweep 2 Overview Report’, Scottish Government xix Dept. of Social Protection. (2012). Statistical Information on Social Welfare Services 2011. Retrieved from welfare.ie http://www.welfare.ie/EN/Policy/ResearchSurveysAndStatistics/Documents/2011stats.pdf xx Ensuring work pays & social assistance works 16 Stuart Duffin One Family Rationale, priorities and recommendations for Budget 2013 xxi http://www.scotland.gov.uk/Topics/Built-Environment/Housing/supply-demand/nht xxii JRF-Housing Market Taskforce,( 2010), Increasing supply within the social rented sector xxiii ESRI,(2012), Budget Perspectives, Tax, Welfare and Work Incentives Minister of Social Protection’s response to question on Family Income Supplement on 22 nd March 2012. Retrieved from oireachtas.ie http://debates.oireachtas.ie/dail/2012/03/22/00102.asp xxiv Office of Family Assistance, (2012), TANF Research and Evaluation, US Department of Health and Human Services xxv Callan, T., (2009), Tax on Child Benefit Fairest for Low-Income Families, ESRI Series Newspaper/Magazine Articles 200902, Irish Times, 27th October 2009 xxvi Ensuring work pays & social assistance works 17 Stuart Duffin One Family