Spring Budget is more about ‘leaving behind’ than ‘levelling up’

Conditionality and sanctions

The Chancellor announced an increase to the Administrative Earnings Threshold from an equivalent of 15 to 18 hours at the National Living Wage, meaning anyone working below this will be subject to stricter work-search conditions to access benefits, with the risk of sanctions if they are not seen to comply.

• Where in the past single parents (and all lead carers of children) would have limited or no work search requirements below this threshold, they will now be subject to intensive work search requirements under the threat of sanctions.
• The sanctions regime will be strengthened, including automation of parts of the process.

One Parent Families Scotland Head of Policy, Strategy and Communications Marion Davis said:

“Over the years, the work search requirements placed on single parents to access social security have increased astronomically.

“Until 2008, single parents were not required to look for work until their youngest child turned 16, in recognition of their sole childcare responsibilities. This quickly changed to age 12 in 2008, to 10 in 2009, to seven in 2010, to five in 2012, and to just three years old in 2017.

“The increase alongside this in the number of hours they are expected to work puts enormous pressure on single parents who are already working incredibly hard to balance paid work with caring for their children alone.

“At the same time, single parents are at a greater risk of sanctions, while the sanctions imposed are also more likely to be overturned – meaning they have been incorrectly and often unfairly applied. All the evidence points to the ineffectiveness of sanctions and to the immense strain they place on the mental health of claimants.

“Around half of all children in the UK in single parent families are living in poverty – sanctioning their parent with a benefit penalty intensifies that poverty. Is it any wonder that single parents are contacting us every day telling us that they are at breaking point?

“If the UK Government has a genuine interest in supporting women and children, it will reconsider these ill-thought-out changes.”

Universal Credit and childcare  

• Several commitments regarding childcare were made in the budget, some of which relate to powers devolved to the Scottish Parliament and will result in around £320 million being allocated to Scottish Government through Barnett consequentials, which the Scottish Government can choose how to spend.
• One big change for parents in Scotland is that those on Universal Credit will now be able to claim childcare costs upfront when they move into work or increase their hours.
• The maximum parents can claim through Universal Credit to cover childcare costs will increase to £951 for one child and £1630 for two children, which is an increase of nearly 50%. However, there is no change to the percentage of costs covered which still sits at 85% – we would like to see this increased to 100%.
• Access to support with childcare costs for those on Universal Credit is still conditional on being in paid work – we would like to see the support with costs widened to include training, education, and work preparation programmes.

Marion Davis said:

“The Chancellor has acknowledged the barrier which a lack of affordable childcare poses to parents’ employment, the major implications this has for women’s equal participation in the workforce, and the benefits which addressing this creates for the economy.

“For low-income single parents, most of whom are women, the changes to the Universal Credit childcare element are a step in the right direction. However, a key issue will be how this increased support is matched by an adequate supply and how flexibility in the system is resourced.

“Moreover, the UK social security system still traps many single parents in poverty. We need a social security system that supports families, rather than one which undermines family wellbeing by penalising parents, such as subjecting them to a stricter regime of conditionality and forcing them to work more hours than are manageable.”

Energy costs 

• It was confirmed that the Energy Price Guarantee will remain at £2500 for next three months. 

• Energy charges for pre-paid meters will be brought in line with comparable direct debits.  

Marion Davis said:  

“The government’s decision to continue the Energy Price Guarantee while costs remain high, is helpful but not nearly enough. Single parents supported by our services have faced incredible challenges over the last year to cover their rising living costs, with many having to choose between heating their homes or eating to ensure that their children’s needs are met.  

“The commitment to reducing the costs of those on pre-paid meters – usually those on low-incomes – is an important short-term step. Over the past few months, we have heard from parents with pre-paid meters who have had their energy cut off because they simply could not afford to pay, while others have had to reach out to us for emergency support with energy top-up vouchers.

“There is much more that needs to be done to ensure that fuel poverty – and indeed the energy debt which has understandably accrued in recent months for many families – is eliminated.”
  

Disability benefits  

• Alongside the budget, the government has published a white paper on disability benefits reform.
   
• The government will introduce legislation in the next parliament (following the next election) to abolish Work Capability Assessments (WCA) and separate health-related benefit entitlement from a persons’ ability to work. This is intended to encourage those who can work to do so
• Included in the white paper is a proposal to abolish the existing Work Capability Assessment for Universal Credit . It is proposed that the existing assessment for Personal Independence  and Adult Disability Payment (Scotland) will be used instead.

Marion Davis said:  

“Given the stress-inducing experience that so many disabled people, including disabled single parents, have with Work Capability Assessments, we welcome the move to scrap them. We agree that nobody should fear losing out on essential support related to their disability when they move into work.

“As analysis by the Women’s Budget Group has identified, disabled single parents were the group who lost out most because of austerity measures between 2010 and 2021. 

“However, we are deeply concerned by the implications which this, accompanied by the changes to the conditionality regime, might have in practice for disabled people. Note that the white paper states that its new approach will mean ‘both voluntary and mandatory work-related requirements may be set for health and disability claimants.’ 

“The last thing that disabled parents need is to face harsher conditionality, a greater risk of sanctions and yet more anxiety caused by a system which is supposed to be there to support them.”

What was missing?

There was no commitment from the Chancellor to address a raft of issues which are currently pushing low-income households into poverty and keeping them there – with disproportionate impacts for single parent families.  

• The level of benefits, which do not cover the real cost of living.  
• The Benefit Cap.  
• The two-child limit in Universal Credit.  
• The lower rate of Universal Credit for under 25s. 
• Support for housing costs. The Local Housing Allowance (LHA) has been frozen in cash terms since April 2020, at rental price levels from September 2019. This means many people renting need to use benefit which should be for essentials to cover their housing costs. 
• Action to support families in debt, including a pause on debt recovery for money owed to public bodies and, in the longer-term, a cap on debt deductions from Universal Credit.  
• The introduction of more progressive tax measures, including a wealth tax, to tackle inequality. 

Marion Davis said:  

“The Chancellor spoke in his budget about ‘levelling up,’ but the glaring omissions from the government’s spending plans said much more about ‘leaving behind.’  

“The government is leaving behind those families who have been all but swallowed up in debt through no fault of their own as costs have skyrocketed well beyond the reach of their wages and benefits.

“It is leaving behind larger families and young people who have been unjustly penalised by welfare reforms of recent years which left them with less support than ever.

“It is leaving behind single parents and their children who continue to face unacceptable levels of poverty, above that of their peers, and who have faced cut after cut in support over the last 13 years. 

“The Joseph Rowntree Foundation have highlighted that from April 23, the basic rate of Universal Credit for a single person is £35 a week short of what is needed to afford core essentials, like food, utilities, and vital household items. The basic rate of Universal Credit should at least cover the essentials of a decent life – food, utilities and vital household items and should not fall below it.

“The Chancellor also spoke about the importance of growth. The focus was all about economic growth, and there are undoubtedly many short- and long-term costs to the economy of poverty.  

“But for the next budget the UK government should recognise the growth in wellbeing, equity, and opportunity for all the UK’s children and young people which would come from taking action to scrap some if its most damaging policies such as the Benefit Cap, two-child limit, and young parent penalty. 

“The Chancellor has sadly missed the opportunity to offer hope to the thousands of low-income single parent families who are unable to pay for even some basic essentials, whose benefit doesn’t cover their rent and who are unable to take up employment.”