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The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)
It is a pleasure to serve under your chairmanship, Ms Nokes—or should I call you ma’am? I congratulate the hon. Member for Ealing Central and Acton (Dr Huq) for securing this debate. I am grateful for the work that she does in chairing the all-party parliamentary group on single-parent families, and for the contributions from Members of the APPG that we have heard today. Like them, I recognise the heroic work that so many single parents do across the country, supporting businesses and organisations in the work they do—and supporting their children as well. We recognise that important contribution.
We want everyone to be able to find a job, progress in work and to thrive in the labour market—whoever they are and wherever they live. It is good to see the proportion of single parents in employment increasing. It has grown by 11.4% since 2010, and is now at 68.5%. However, we want to go further. Through the support that we are providing as the economy bounces back from the debilitating effects of the pandemic we will see employment rates continuing to improve. We are committed to continuing to see an increase in the number of single parents in the workforce, which is why we have a comprehensive package of support that helps lone parents to enter and, importantly, progress in employment.
First, I reiterate that universal credit provides incentives to work as part of its fundamental design. In the Budget, as has been recognised by the hon. Member for Ealing Central and Acton, we have gone further; we have taken decisive action to ensure that work pays by cutting the universal credit taper rate from 63% to 55% and increasing universal credit work allowances by £500 a year. This is essentially a tax cut for the lowest- paid in society, worth around £2.2 billion in 2022-23; it means that 1.9 million households will keep, on average, around £1,000 on an annual basis. This will be complemented by a generous increase to the national living wage. The Government are extending the national living wage, from April 2022, to £9.50 per hour to all those aged 23 and over. We want people to be able to work, and we are making work pay.
The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), cannot be here today as she is attending a Select Committee hearing. Crucially, she is pushing hard for our comprehensive £30-billion plan for jobs, which will enable more single parents to take advantage of the nearly 1.2 million vacancies we currently have in the labour market. As part of our plan for jobs, the rapid estates expansion programme has led to the opening of around 180 new job centre sites all around the country; I am sure Members will be experiencing that in their own constituencies.
Those job centres will help us to meet the growing demand for our employment services, and help to ensure that all claimants looking for work receive the right support. The new estates are helping us to house the 13,500 new work coaches whom the Department for Work and Pensions recruited in the last financial year. I recognise the important contribution that they make; I am sure that the hon. Member for Ealing Central and Acton does as well. They are real heroes in our local communities, and in my view they are too often unsung. Our plan for jobs programme will support more single parents to find the role that is right for them, no matter what their age or their experience.
Stella Creasy
We agree with the Minister about the importance of helping people get into work. Can he explain why he thinks that, during that process¸ the universal credit support we give to families, and particularly to single parents, should be assigned by age? What is it about a child of someone who is under the age of 25 that makes the Government think that they are cheaper, and do not need the same rate of universal credit—can he justify that anomaly? This is something that makes it harder for parents under the age of 25 to get into work because they do not have the money to pay those up- front child care costs. Why is it that the child of an under 25-year-old is cheaper?
David Rutley
The hon. Member makes an important point, and asks her question with characteristic commitment to the cause—I understand where she is coming from. We want to make sure that this safety net is available to everyone, and that we help people get into work—that is the most important thing. The lower rates for younger claimants who are under 25 reflects the fact that they are more likely to live in someone else’s household and have lower earning expectations. I will repeat: what we want to do is help more people get into work and then progress in that work so they have more money of their own in their pocket.
The other way that we can help young people, in particular, is through the kickstart scheme. I hope that hon. Members can see the effect that that is having in their constituencies, by helping 16 to 24-year-olds to secure fully-funded six-month job roles. The good news is that we have now seen over 100,000 young people supported into kickstart jobs. To complement this, our new DWP youth offer is providing extra wrap-around support to young people.
For older single parents who are looking to return to employment, the restart scheme offers a fresh start, helping more than 1 million people who have been unemployed for over 12 months. That is in addition to our job entry targeted support scheme—JETS—which supports people who have been unemployed for at least 13 weeks.
It is important to understand the success of the plan for jobs at a macro level, but it is also important to share the excellent work that our jobcentres are doing at a more local level for single parents in particular. Some of the case studies are very interesting. In Merseyside, for example, we have dedicated sector-based work academy programmes—SWAPs—that support lone parents to apply for and move into employment opportunities, with working hours that work for them and their childcare needs. In Birmingham, we support the YMCA to deliver a programme called parent journeys, which aims to provide tailored work and lifestyle-focused support for 42 lone parents over a 12-month period. There are many more examples of these tailored, local approaches, but time does not permit me to elaborate; I would be more than willing to share them with the hon. Member for Ealing Central and Acton. I would also like to recognise the contribution of my hon. Friend the Member for Stafford (Theo Clarke), who talked about the importance of community outreach. We see examples of that in our own constituencies, and those should be praised.
I turn now to in-work progression, which is also a very important priority for members of APPG. We are enhancing our programme of support for workers on universal credit. Starting in April 2022—just a few months’ time—more people who are in work and on universal credit, including single parents, will be able to access work coach support, focused on progression advice and removing barriers. That could include signposting to careers advice and job-related skills provision, and helping claimants overcome practical barriers to progression, for example childcare costs, which we have discussed. Jobcentre Plus specialists will also work with local employers and other organisations, including skills providers, to identify opportunities for people to progress in work.
Dr Huq
I am grateful to the Minister for describing those programmes. However, rather than a one-off programme in Merseyside that acknowledges single parents, surely we should have a strategy that acknowledges them at every stage. A one-size-fits-all approach means, for example, I think, that two people each earning £39,999 receive their full child benefit as a couple, but a single parent on £40,000 starts to have it wrenched away. Those anomalies need to be ironed out. Will the Minister commit to a strategy that acknowledges single parents all the way through?
David Rutley
The point of raising the case studies was to show that there are tailored, local approaches that are working and are based on local circumstances. The situation in Merseyside is different from that in rural Lincolnshire, so we need to find ways that work in those different communities. However, I am sure that this is a subject to which we can return.
In the few minutes that remain, I would like to highlight the fact that the Government are considering carefully the recommendations of Baroness McGregor-Smith’s in-work progression commission. We will respond formally to the commission’s report in the coming months. We are doing a lot more to help with skills and, particularly through the national skills fund, to make sure that we can provide opportunities for all generations of adults who have previously been left behind.
Many hon. Members discussed childcare. I will not spill the beans on the childhood experiences of the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), but he makes an important point. We must find ways to help lone-parent families. The childcare situation has improved dramatically since his day—and thank goodness for that. Childcare is available through universal credit, and free childcare is available through the Department for Education. The flexible support fund can also be used to provide for childcare up front—as we know, most childcare is paid for in arrears. There is support available.
We are also doing a lot of work to support the consultation by the Department for Business, Energy and Industrial Strategy on flexible working, which is another issue that hon. Members have raised. That consultation is important. The Scottish Government have their approach to flexible working, which we recognise, but we need to do more to look at part-time work, job sharing and other flexible working arrangements, which have become a norm for those who have been able to work from home during the pandemic—not everybody. We need to look at the responses to that consultation, and see what we can do to create more options for single parents, which is a really important priority.
I welcome today’s debate and thank the hon. Member for Ealing Central and Acton for her contributions. I hope that she can see that we are making significant strides in helping more people.
Caroline Nokes (in the Chair)
Order. The sitting is suspended until 2.30 pm.
Motion lapsed (Standing Order No. 10(6)).