Lone Parents (Hansard, 21 May 1990)

§ 3. Ms. Short
To ask the Secretary of State for Social Security how much a lone parent with two children would have to earn to be better off in work than on benefits, making an appropriate assumption about the costs of child care.

§ 8. Mrs. Mahon
To ask the Secretary of State for Social Security how much a lone parent with two children would have to earn to be better off in work than on benefits, making an appropriate assumption about the costs of child care.

§ The Secretary of State for Social Security (Mr. Tony Newton)
It is not possible to generalise in the way that the questions seek as individual circumstances vary so widely and lone parents' income in work will also depend on whether maintenance is paid. The benefit system does, however, recognise that lone parents who work may face additional costs of various kinds, and the earnings disregard for such lone parents on housing benefit is to be increased from £15 to £25 a week in October.

§ Ms. Short
First, will the Secretary of State apologise, on behalf of the chair of the Conservative party, to lone parents throughout the country who are deeply hurt by the suggestion that their children are likely to become criminals and are taking part in a wrecking of society? Secondly, do the Government understand that many lone parents would love to work but cannot do so because of 4 the costs of child care? Will he reconsider the Government's decision to prevent lone parents offsetting the costs of child care against benefit because the Government are thus trapping large numbers of them into poverty and into living on benefits when they would like to be independent and give a better life to their children?

§ Mr Newton
With regard to the first part of the hon. Lady's question, I do not accept—nor do I think that my right hon. Friend would accept—the interpretation that the hon. Lady has placed on his remarks. We all share a common concern to improve the position of lone parents. My right hon. Friend was doing no more than talk about some of the difficulties that they and their families may face, which we are all concerned to tackle.
With regard to the second part of the hon. Lady's question, I have already referred to one significant improvement that we are making in the in-work earnings disregard. She will be aware that a significant number of lone parent families are helped by family credit, which is very much directed at them—about a third of those on family credit are lone parents. We shall continue to try to improve the benefits system, not least to try to improve the collection of maintenance, which provides portable income for those who receive benefit and then gain work. That will make a significant contribution to the problem.

§ Mrs. Mahon
The Minister will be aware that many lone parents will be disappointed with that answer. Will he reconsider taking the cost of child care into account? I add my support to the remarks of my hon. Friend the Member for Birmingham, Ladywood (Ms. Short) about the right hon. Member for Mole Valley (Mr. Baker). Will the Minister also send a message to the Prime Minister, and point out to her that the majority of lone parents have not had the access to wealth that she had when bringing up children?

§ Mr Newton
Undoubtedly, many lone parents are in difficult circumstances. That is why we have made a number of improvements in the benefit system which are designed to help them. Some have already come into effect. Another, to which I have referred, will come into effect in October. Perhaps the biggest single weakness in our system at present is the lack of effective collection of maintenance to which we are directing close attention.

§ Mr. Favell
Labour Members talk as though the money to provide child care for lone parents will drop out of the sky. It has to be paid for by other taxpayers—[HON. MEMBERS: "What about directors' pay rises?"] Is it reasonable that a tax-paying couple should provide Rolls-Royce child care treatment for lone parents when it is perfectly open to those parents to do what other working women have to do—look to their mothers, aunts or neighbours to help out, rather than expect the help to come from taxes?

§ Mr. Newton
It is certainly the case that any improvement, as some would see it, or change in the benefit system in this sector, as in others, would cost money, and a decision would have to be taken about where that should come from and whether it might be better spent elsewhere. The last survey done on this subject—admittedly, it is rather old as it was done nearly 10 years ago by the social policy research unit—showed that about four out of five lone parents did not have any child care costs, even when they were in part-time work.

§ Mr. Rooker
Is the Secretary of State aware that last week the accounting officer of his Department, when asked why there had been a massive disincentive for lone parents to work during the past eight years, as identified by the Comptroller and Auditor General, twice told the Public Accounts Committee that it was due to ministerial policy decisions?

§ Mr. Newton
I am aware, having talked with my Permanent Secretary about the matter this morning, that he had some interesting exchanges with the hon. Gentleman last week. But I have not yet been able to read the transcript——

§ Mr. Kirkwood
Slacking!

§ Mr. Newton
Because it is not available.

§ Mr. Rooker
Yes, it is.

§ Mr. Newton
The hon. Member for Birmingham, Perry Barr (Mr. Rooker) will forgive me if I do not get drawn further down that path, especially as I believe that he has been promised a further note on some of the matters involved.
I must also tell the hon. Gentleman for the third time, but without apology, that the aspect of the system that has most obviously changed for the worse in the past 10 years has been the growing deficiency in collecting maintenance, which we are now vigorously trying to correct—I am glad to see the hon. Gentleman nodding in agreement.