Welfare Reform and Work Bill

Baroness Drake Excerpts

Wednesday 9th December 2015 Lords Chamber

[Baroness Lister of Burtersett (Lab)]

My Lords, I will briefly support what my noble friend and the right reverend Prelate said, because there is research that bears out what my noble friend has just said. It was carried out at the University of Bath by Professor Jane Millar and Tess Ridge. They talked to both the children and the parents— lone mothers who had gone back to work. We are talking about slightly older children, of course. They said that for many families, the lone parent moving back into paid work did make life better. They got more money, the children felt better and so forth. But the findings also showed that,

“lone mothers’ aspirations for financial security were not always congruent with the reality of employment in low-paid, sometimes insecure work … For some children the challenges and costs of their mothers being in work were thrown into sharp relief by the accompanying low pay, uncertainty and insecurity of work. For these children work had held out the promise of something better and that promise had not been kept, so they experienced disappointment, and for some, an apparent loss of confidence in the value of work”.

I am sure that that is not what the Government are trying to achieve.

The report went on to say:

“Mothers’ experiences of establishing themselves as working families were marked in many cases by continuing low income and financial insecurity … Enhanced in-work support; increased reward from work coupled with adequate support when employment fails; flexible employment conditions and improved childcare options based on children’s own identified needs and preferences, are important prerequisites for successful lone mother employment and work-life balance. Otherwise increasing compulsion to work may result in greater uncertainty, stress and instability for children and their families”.

[Baroness Drake (Lab)]

My Lords, I will be very brief. I am concerned, having heard noble Lords articulating their concerns, that a particular omission is not missed. My noble friend Lady Sherlock and the noble Lord, Lord Kirkwood, and all other noble Lords, have articulated very clearly the concerns about balancing the needs of the child and the need for employment, and the importance of appropriate childcare. I just want to return once again to kinship carers.

Although the Welfare Reform Act 2012 exempts kinship carers from work conditionality requirements for a year after they take on the care of a child, ongoing, the young children that these kinship carers take on may still have very severe needs and insecure attachments such that suitable and appropriate childcare is really quite difficult to find. I just want to make sure that, in the Minister’s considerations, the need for kinship carers not to be sanctioned in those circumstances is not omitted.

[Baroness Evans of Bowes Park (Con)]

My Lords, I thank all noble Lords for their contributions to this debate. The House understands the importance of the conditionality framework, underpinned by reasonable requirements, in encouraging parents to return to work. Achieving full employment is a key ambition of this Government, one I believe that we all support. Great progress was made in the last Parliament to increase parental employment, particularly with lone parents. However, more can be done. A fifth of all workless households are lone-parent households and a quarter of workless households contain dependent children.

We know that children with working parents are less likely to be in poverty and benefit from increased life chances. Work is the best route out of poverty and will ensure that children grow up in a stable environment where they are more likely to succeed. The Government believe that more can be done to support all parents with young children as they prepare for and look for work. This is why we are introducing this clause and increasing both work coach and childcare support. From April 2017, parents, including lone parents, claiming universal credit, as discussed, will be expected to look for work when their youngest child turns three, and to prepare for work when their youngest child turns two. I remind noble Lords that Clause 15 changes conditionality for all responsible carers of children aged three to four in universal credit. As the noble Baroness said, this applies to both lone parents and the lead carer in a couple.

Before I turn to the detail of the amendments, perhaps I may briefly set out some of the context within which this clause is being introduced. In terms of the wider welfare reforms, as we have heard, the Government are investing in an enhanced childcare offer that will see spending reach more than £6 billion by 2019-20, including the investment of more than £1 billion more a year by 2019-20 in free childcare places for two, three and four year-olds.

A number of noble Lords have expressed concerns about the capacity of the sector. We have already seen its capacity to grow in its ability to offer the additional places for two year-olds and fulfil the previous free childcare offer, so we are confident that it will be able to rise to the challenge and produce the quality childcare places that are needed. We have a number of consultations ongoing, including a review of early years funding, which is obviously a key issue for the sector. As I say, the consultations are ongoing so we do not have the results yet, but I can certainly look into giving noble Lords an update on where the deliberations have got to, because the Bill is currently in the other place.

Again, the additional 15 hours of free childcare is just one element of a more comprehensive menu of support, including the universal childcare element, which will cover up to 85% of eligible childcare costs from April 2016. This will be available for parents working any number of hours, unlike under tax credits where it is restricted to those working more than 16 hours. Under tax-free childcare, up to 2 million families could benefit. The Government are also committed to introducing the national living wage, with the rate forecast to rise to more than £9 an hour by 2020, which will mean a direct wage boost for 2.7 million low-paid workers. Of course, there is also the transformation that universal credit brings. It transforms the structural benefits system, ensuring that work pays by incentivising and smoothing the transition into work. It will support people in and out of work so that they can take up work, for no matter how few hours, safe in the knowledge that they will retain their financial safety net.

Universal credit also overhauls the conditionality framework. It removes the prescriptive requirements which mean that people claiming a certain benefit must take certain actions or lose their entitlement to financial support. Instead, people are allocated to a conditionality group according to their personal and household circumstances and earnings, and their capability. Where individuals have many different characteristics and circumstances, they will always be allocated to the lowest intensity conditionality. For example, the parent of a disabled child who requires full-time care will be in the “no work-related requirements” group. Similarly, the parent of a three year-old who has been found to have limited capacity for work will be subject only to work preparation requirements. Furthermore, irrespective of the conditionality group, individuals will have requirements and the employment support they receive tailored to their own circumstances and capabilities. Work coaches can, for instance, switch off requirements entirely for a temporary period where a parent or their children are experiencing difficult circumstances. Now when parents are asked to look for or prepare for work, their requirements will be fully tailored to their circumstances, in contrast to the current rigid system.

Currently, parents claiming jobseeker’s allowance are required to be available for work and undertaking work-related activity for a minimum of 16 hours a week, or they risk losing their entitlement to benefit. In universal credit, there is no minimum requirement and work coaches have complete flexibility to set what is reasonable for each individual. For the first time, we will be supporting parents who are in low-paid work to earn more through in-work progression, where previously they may have been trapped in a cycle of low-paid jobs without any support. We know that developing a skilled workforce is key to realising the flexibilities that we have built into the legislative framework. We want to empower our work coaches to use this broad discretion to make sound decisions that are right for the individual in front of them. That is why we are investing heavily in learning and development for our front-line staff.

To achieve our ambition of providing the best and most efficient customer service, we are introducing a work coach delivery model to ensure that our people and organisation are structured to meet those needs now and in the future. This improves the quality of our work services support by placing the work coach role at the centre of future delivery, providing quality interventions. This approach also better deals with claimants as individuals or family units rather than by benefit. The model offers continuity to the claimant, allowing them to build a relationship with their work coach where they feel able to share their personal circumstances, resulting in appropriately tailored requirements which are achievable. It supports a personalised journey into work or helps to prepare them for work in the future.

To further support the introduction of universal credit and build the capability and professionalism of our work force, we are also implementing a work coach accreditation learning journey, which is in an initial proof-of-concept stage. It has 300 participants made up of work coaches and their line managers. The accreditation of staff will build up consistency across the workforce by having a clear standard of achievement within a framework that enables structured learning, timely intervention and public recognition of standards attained.

Accreditation also supports quality control, with work coaches receiving regular feedback at the time of the accreditation review from objective, informed and skilled line managers and external accreditors. In addition to the accreditation strategy, all work coaches will receive full training as part of the rollout of universal credit, and new guidance and learning products will be developed specifically for the implementation of this policy. I hope noble Lords can see that a lot of work has been done to ensure that the advice claimants get is of the highest quality, and tailored to their needs.

I know many noble Lords are concerned about the potential impacts of sanctions on parents as a direct result of this policy. I hope I have conveyed that our intention is not to penalise parents but to support them to find employment. Increasing conditionality and the employment support offered should not increase sanctions. Parents will be set reasonable and achievable requirements, which their work coaches will support them to meet. We have clear and transparent safeguards in place to protect people against sanctions where their requirements are unreasonable or they have a good reason not to meet them. However, that is not to say that sanctions should not play a role. Strong international evidence shows that benefits regimes tied to conditionality get people into work, and sanctions underpin this.

In response to an issue raised by the noble Baroness, Lady Manzoor, about sanctions starting at 13 weeks, that is not the case. Low-level sanctions are open-ended and are not set at 13 weeks. This means that a claimant can re-engage and end the sanction more quickly. Our principle is simple. Parents should be encouraged to undertake reasonable requirements around their childcare responsibilities, taking into account the childcare options available, however limited these may be. This will ensure that they do not lose touch with the labour market.

In relation to the specific amendments, Amendment 53A, moved by the noble Baroness, Lady Manzoor, specifies that,

“in preparing a claimant commitment … the Secretary of State shall have regard (as far as practicable)”,

to the impact of the content in the claimant commitment on the well-being of any child who may be affected by it.

As I have already described, through conversations with the individual work coaches, already set and agreed work-related activities are tailored for a broad range of circumstances, including for matters relating to the well-being of children. This is achievable through existing legislation and it would be unduly burdensome to set out this level of detail in primary legislation.

In relation to the findings of the Citizens Advice report that the noble Baronesses, Lady Manzoor and Lady Grey-Thompson, mentioned, we accept that it is early days in the delivery of universal credit, and it is a big cultural change for our staff. There have been mistakes and variation in performance. The important thing is that we continually test, learn and spot problems promptly. As I have set out, a lot of work is going on to ensure that the accreditation and quality in training for work coaches is of a high quality.

It would also not be fair to prescribe only that claimant commitments must contain information relating to the well-being of children. We do not take our responsibilities for the well-being of children lightly. That is why the regulations also make clear the circumstances in which requirements should be limited, or even lifted entirely, for a temporary period. For example, Regulations 98 and 99 provide provisions for suspension of requirements where children may be in distress. These reasonable requirements, including any limiting or lifting and the reasons, are recorded within the claimant commitment.

Amendment 53B, tabled by the noble Lord, Lord Kirkwood, seeks to exempt responsible carers of a child aged three and four from having requirements imposed where suitable and affordable childcare cannot be secured. We believe that is unnecessary in light of the flexibilities that I have talked about which universal credit provides. However, I can certainly assure the noble Lord, Lord Kirkwood, that the department is looking at childcare fitting in with individual requirements. It has been key to the passage of the Childcare Bill and the work that is going on. Parents will be able to use the new offer outside term time. The whole aim is to ensure that this offer is flexible so that parents can access childcare when they need it. As I said, the free childcare offer is not the only support available. Where childcare cannot be found, parents will not be required to do anything that they cannot fit around caring responsibilities.