Single Parents, Universal Credit and the Struggle to Make Work Pay

Gingerbread has published a major academic report that looks at the impact on single parent families of the government’s flagship welfare programme, universal credit. Far from achieving the reform’s stated goal of “making work pay”, many single parents could actually lose out in cash terms under the new system. The research suggests that for many single parents, work still won’t pay under universal credit. In particular it finds that:

·      As a group, single parents face a real-terms cash loss under universal credit

·      Universal credit does achieve one of its aims: single parents who aren’t working will be better off if they move into work than is currently the case

·      But of all household types, working single parents are the worst affected when it comes to benefitting from working more hours, meaning many families will be trapped in low hours, low paid jobs.

Download a copy of the report from the Gingerbread website.

Single Parents Bear Brunt of Benefits Changes, Charities Warn

Single parents with already stretched finances are bearing the brunt of government changes to benefits, charities have warned, when many are already struggling with huge increases to household bills. Latest figures from the Office for National Statistics show that single-parent households make up a quarter of the total number of households in England and Wales. Calculations from the charity Gingerbread show that on average, single parents working on the minimum wage will lose just over £200 a year under Universal Credit compared with the current system. Read more on the Observer website.

Charities Call For Under 25s to Keep Housing Benefit

A letter from 13 charities calling on the government not to cut housing benefit for the under 25s has been published by The Times.  It said the cut would penalise young working adults with low earnings. It stated: ‘It will take away a vital safety net for young adults who lose their job, experience domestic violence, become ill or disabled, or who are themselves bringing up children. We urge the prime minister and the coalition government not to cut housing benefit entitlement for under-25s.’  The letter is signed by heads of charities including homelessness charity Shelter, umbrella group Homeless Link, charity the Children’s Society and the charity for single parents Gingerbread.  Read more on the Shelter website.

Single Parents in PRS Face Poverty

The introduction of universal credit could leave many single-parent families facing a life in poverty because of rising private sector housing costs.  A study from the Centre for Research in Social Policy at Loughborough University found that the caps on how much benefit can be claimed under the new system will leave many worse-off even if they take part-time work.  According to the research – published by the charity for single people Gingerbread – a single parent with an average private rent earning the minimum wage would stay below the poverty line even if they work up to 16 hours a week.  In contrast, someone paying a social rent, covered fully by universal credit, would be able to escape poverty by working only a few hours a week.  The report further found that the universal credit will provide a disincentive to work longer hours for many people.  Download a copy of the report - Struggling to make ends meet - from the Gingerbread website.

Anger as Lone Parents Face Benefit Cuts

Charities have spoken of their fury over changes to the welfare system which will force unemployed single parents with children about to start school to find a job or risk losing part or all of their benefits.  These 124,000 single parents with children aged five and six were given only eight weeks notice of the fact that they would have to move from income support to jobseeker's allowance (JSA). Previously, lone parents of older children have been given up to 12 months notice, giving them a greater chance of planning ahead and improving their skills and qualifications.  According to research published by the charity Gingerbread, single parents moving to JSA now also face a much harsher time finding "a family-friendly job in a hostile labour market characterised by low economic growth and high unemployment".  While the definition of their availability for work must take their childcare responsibilities into account, a lone parent could risk losing part of his or her benefits for up to three years if they are judged to be seeking work with insufficient vigour. The Department for Work and Pensions estimates that only 20% of the 124,000 are expected to find employment.  Read more on the Observer website.