Welfare Reform Bill


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The Chairman: May I advise members of the Committee that the huge document that the Minister mentioned in an earlier contribution is now in the room? I have had copies put on the table. The subject is welfare reform and the use of regulation-making powers.

Clause 2

Work-related activity: income suport claimants and partners of claimants
Mr. Clappison: I beg to move amendment 39, in clause 2, page 4, line 21, at end insert—
‘(A1) This section does not apply in the case of a single parent with a child under five years of age.’.
The Chairman: With this it will be convenient to consider amendment 44, in clause 2, page 4, line 21, at end insert—
‘(A1) This section does not apply in the case of a single parent with a child under seven years of age.’.
Mr. Clappison: Clause 2 deals with the work-related activity which may be required of certain benefit claimants, including benefit claimants on income support, income-based jobseeker’s allowance or income-related employment and support allowance. Although it is not specifically mentioned in the Bill, the clause appears to affect lone parents of younger children who are currently in receipt of income support. This is the relevant point to ventilate some important considerations for lone parents of younger children.
Amendment 39 deals with the age that the youngest child must have reached before lone parents are required to take part in the work-related activity regime envisaged in these proposals. It would set that age at five. Amendment 44, which has been tabled by the Liberal Democrats, sets it at seven. The background to this is quite important. Until last year it was possible for a single parent to remain on income support until the youngest child reached the age of 16. However, in June 2007 the Government announced that they were moving lone parents from income support to jobseeker’s allowance in stages.
The process began last year, when the age limit for single parents to remain on income support was reduced to the youngest child reaching the age of 12. As we speak, the process of transferring lone parents from income support to jobseeker’s allowance is proceeding in jobcentres up and down the country. The age at which lone parents are transferred from income support to jobseeker’s allowance will fall to seven in October 2010. That leaves open the question of what is expected of lone parents with children under seven. Of course, they will not be expected to move from income support to jobseeker’s allowance, as is the case with lone parents of children over the age of seven, but under the Government’s plans they will be expected to fulfil the requirements set out in the clause, some of which we have already touched on when debating other amendments.
Our understanding of the Government’s proposals as a whole is that they see lone parents as part of a progression to work group from the time their youngest child is aged one. The Government have set out how they see that group in their discussion paper on the implementation of the Gregg review. According to their response to that review, lone parents with children aged between one and two years will be
“Required to attend Work Focused interviews and agree an action plan. They are not mandated to undertake any activities recorded on the action plan”.
However, the important point is that when the youngest child reaches the age of three, lone parents will be
“Required to follow the full progression to Work regime based around Work Focused interviews, action plans, work related activity and the backstop of adviser direction.”
That presumably means that lone parents with children aged three or over will be subject to the regime of sanctions for failing to comply with the requirements, as is set out in the Bill.
Amendment 39 would substitute the age of three with the age of five as the point at which the regime and all its requirements would begin. The age of five was specified in the Government’s July 2008 Green Paper as the appropriate age at which requirements could begin to be made on lone parents. The Green Paper envisaged piloting a requirement for lone parents whose youngest child is five or six to attend relevant skills training where that would address the skills gaps identified as a barrier to starting work. Subsequently, the Gregg review suggested that lone parents with a youngest child between the age of one and seven should be in the progression to work group, as I have indicated, as part of the Gregg vision of personalised conditionality, although I do not believe that Professor Gregg specified the age of three as the age at which that move to the regime would occur, as the Government are now setting out.
The progression to work group is intended to prepare people for full availability for work, and in this case we are talking about preparing single parents for entry to the jobseeker’s regime when their youngest child reaches the age of seven. Commencing the work-related activity for them at the age of five, as suggested in amendment 39, would give them two years in which to undertake work-related activity to prepare them for work, and something along those lines seems to have been present in the Government’s thinking in the July 2008 Green Paper.
The question I wish to put to the Minister is this: why is the two years of work-related activity in that regime from the time the youngest child reaches the age of five insufficient to prepare lone parents for work?
Mr. James Plaskitt (Warwick and Leamington) (Lab): In view of what the hon. Gentleman is saying, can he tell us what has happened to the recommendation of his own party’s social justice policy group, chaired by the former leader of his party, that:
“Whilst their youngest child is below the age of 5 they should spend between 5 and 10 hours a week preparing for work”?
Mr. Clappison: I am grateful to the hon. Gentleman for studying that document, because it has proved to be the inspiration behind much of what we are debating today. It created the momentum of the debate because we had 11 years in which there was no movement at all and the age remained 16. To answer the hon. Gentleman’s question directly, he will see that the age of five was specifically mentioned in that report as the age of the youngest child at which parents should be moved across, and of course that document did not have in mind the full regime that we are now talking about. The Under-Secretary of State looks perplexed about that, but when that document was written the social justice policy group did not have in mind and could not know the full regime proposed by the Government. We have no issue with the regime as a generality, but in the case of parents of younger children we think that there is an issue to discuss in cases where parents will be subject to the regime and to sanctions for failing to comply. I think that the hon. Gentleman will have to accept that there are issues to be debated and that it is right for us to debate the age at which that move takes place. He has not answered the question of why two years is insufficient time.
12 noon
The Parliamentary Under-Secretary of State for Work and Pensions (Kitty Ussher): The hon. Gentleman said that I looked perplexed. I was perplexed because I did not understand whether he shared the view of his own policy commission—and, indeed, our view—that there should be work-focused activity when the child is under, not at, the age of five. I would be grateful for his response.
Mr. Clappison: I think that I responded to that in my answer to the hon. Member for Warwick and Leamington. We are talking about the regime, not some general work-focused activity. We have no problem with interviews. However, this is a very specific regime in which action plans have to be agreed, directions are given and sanctions may follow for non-compliance from when the child is aged three, as the hon. Lady knows from her study of both the documents and the Government’s response to the Gregg report.
Mr. Plaskitt: I wish to continue to press the hon. Gentleman on that point. As I said before, his own social justice policy group says that a lone parent should spend between five and 10 hours a week preparing for work if their child is under five. What activity did the group envisage during those five to 10 hours?
Mr. Clappison: I think that I have answered the hon. Gentleman’s question. I am waiting for an answer from him as to why two years is not sufficient. I shall make a deal with him. I am interested to hear his answer—[Interruption.] I have given the hon. Gentleman our answer.
The Chairman: Order. I ask for a little calm.
Mr. Clappison: The hon. Gentleman has had his answer. The commission for social justice could not have known about this specific regime, under which lone parents will be subject to sanctions. I think that the hon. Gentleman will, on reflection, feel that it is reasonable to ventilate the issue. I return to my question: why is two years not sufficient? If he cannot answer, I look forward to the Minister’s response.
Mr. Plaskitt: I assume that the hon. Gentleman’s commission would argue that two years was not sufficient, otherwise why would it recommend that the job preparation activity should commence while the child was under five? I return to my earlier question about the five to 10 hours, which he has still not answered. Does his commission envisage lone parents undergoing a 10-hour interview?
Mr. Clappison: I think that we are going round in circles. The question is whether two years is sufficient time to prepare under a regime that is subject to sanctions. If the hon. Gentleman cannot answer, I look forward to an answer from the Minister.
Paul Rowen: We have started an important debate about conditionality within a new system of work-related activity. As has been said, we have already seen a change of Government policy, in that a lone parent will now have to engage in work-related activity when their child reaches the lower age of 12. That policy has been operating for only a short time and it is still bedding in, but we now have a Government proposal to lower the age to three. Taking on board the fact that the change is new, we believe that support for lone parents getting back into work is not fully in place, and that must be addressed. Indeed, we have heard of examples of people who have been given, in our view, quite inappropriate advice about what they can and cannot do in terms of getting back to work. There are still barriers to work for lone parents—child care, transport and facilities barriers. For example, there is only one child care place for every 200 children over 11, yet the Government are already moving the provision from the age of 12 to three, and the way in which to deal with a parent with older children has not been addressed. Serious issues must be addressed before the change can be made.
We suggest in amendment 44 that the child should be seven rather than five before conditionality beds in, and we would like a phased movement rather than the Government’s complete change because that would give the parent time to organise and prepare themselves for work as the child starts school. We need some answers about this aspect, which deals with young children and lone parents. In particular, I should like from the Minister a commitment—the Child Poverty Action Group has asked for it, too—that parents will be protected from any financial sanctions that worsen the severity of child poverty, and that any non-financial sanctions that might be imposed as a result of the regime will not create additional expenditure for the parent. If parents are required to attend a particular locality for a certain number of hours, will the costs of travel and child care be paid for?
We also want assurances that decisions on child care will rest fully and firmly with the parent and that under no circumstances will a direction be given to them that they have to take a particular form of child care. We want an assurance that lone parents and partners in education—I had a case relating to this a couple of weeks ago—will not be required to cease their education, which in turn will be recognised as a work-related activity. The case I had involved a single parent who was looking after two young children and had gone to university. He received a student loan, but that was classed as income and affected his entitlement to housing benefit, so he had to drop out of the course because he could not afford to pay his rent and university fees. Such real issues affect lone parents, and if we are going to apply stricter conditionality at a much lower age, we need to address the availability of child care, for example. It would be interesting to hear what steps the Minister is taking to ensure that child care for older children will be improved under the current regime. It appears that the Government are moving far too quickly, and that they do not have the support in place to enable this group to get back into work, which is, I am sure, what we all want.
Mr. McNulty: We have already touched on some of these topics, including during our discussion of the first set of amendments. It is important to start by saying that no one has a monopoly on concern for child poverty, as the hon. Member for Rochdale implies. Everyone can quote the Child Poverty Action Group. The surest way to help children out of poverty is to support more parents into paid work that enables parents to manage the careful balance between employment and family life—that must be absolutely right. The hon. Member for Hertsmere will know that Professor Gregg suggested conditionality from the age of one.
The hon. Gentleman again draws a picture of doom and gloom—Rochdale doom and gloom not Hertsmere’s; Hertsmere is happier—about the notion of conditionality as though it were oppressive, suppressive and driving down on lone parents for some malign intent, as yet not fully defined, but nothing could be further from the case. It is about trying to help and support people get back into work at the earliest opportunity. The hon. Gentleman—for Hertsmere this time, not Rochdale—is seriously suggesting that we need to leave people alone and not trouble them until their children are five, and then between five and seven we should have a magical process to get them back to work-readiness and back into work. That is, at one level, utterly neglectful. We need to start working with lone parents at the earliest opportunity—with them, I emphasise—with all that that entails on removing barriers, to get them ready for, and ultimately involved in, work-related activity, and then to get them back into the labour market. Again, quite deliberately, work-related activity is drawn at its widest. We cannot have a Bill that purports to offer as much personalised and flexible support as possible and then get lost in an anally retentive fixation on lists that define what that flexibility is—by definition that is an oxymoron.
Why the age of three? Notwithstanding the point made by my hon. Friend the Member for Warwick and Leamington, three is increasingly—it is not yet 100 per cent. there throughout England and Wales—the age at which the state provides full-time child care. The duty on local councils is newish, and the absence of such provision will be taken fully into account when discussing the details of an individual’s work-related activity at three.
Saying that the two years do not matter either way, and that five is a lot better, is at least a more measured approach from the hon. Member for Hertsmere. The Leader of the Opposition, as is his perennial wont, dismissed these plans as sick and shameful in his rush to jump on the nearest bandwagon—he is more fixated with bandwagons than the Liberal Democrats used to be, which is a shame. It would be interesting to be a fly on the wall when he welcomes his soon-to-be-ennobled Front Bencher in the Lords, David Freud, who thinks we are being timid. He would like us to go much further than even we are suggesting, although I do not know whether that was a Freudian slip. It is rather a shame that there is a notion that this is territory in which we should play rather futile politics. There can and should be as wide a consensus as possible.
12.15 pm
The age of seven is a nonsense, although I would entertain five a little more, notwithstanding the point about Scotland. Starting to talk to individual lone parents about their journey back into work by time the child is seven should, in the interests of those parents, happen at the earliest opportunity. The closer the child gets to seven and the lone parent to that stage of obligation, I would envisage a slightly stronger focus on the work element of the work-related activities rather than the broader skills and training element.
The amendments are, I hope, probing rather than otherwise—certainly that tabled by the hon. Member for Hertsmere. We take it as read that the hon. Member for Rochdale could not care less about the Bill or the policy framework that we are seeking to adopt. However, I fear if he continues for too much longer, the implication of his comments will be that he could not care less about the people about whom we are talking, and that would be a dangerous road to go down. I ask for the amendment to be withdrawn.
 
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