Proposed Children and Families (Wales) Measure

Consultation response

CF4 - Joseph Rowntree Foundation

April 2009

The Joseph Rowntree Foundation (JRF) is delighted to make the following submission to the National Assembly for Wales’ Legislation Committee No.2  We would be happy to supply any further information as required.

For more information regarding this response please contact:

Helen Barnard
Policy and Research Department
Joseph Rowntree Foundation
The Homestead
40 Water End
York
YO3 6LP
Email: helen.barnard@jrf.org.uk
Tel: 01904 6154 942

The Joseph Rowntree Foundation is one of the largest social policy research and development charities in the UK. For over a century we have been engaged with searching out the causes of social problems, investigating solutions and seeking to influence those who can make changes. JRF’s purpose is to search, demonstrate and influence, providing evidence, solutions and ideas that will help to overcome the causes of poverty, disadvantage and social evil.

Introduction

This response focuses on the parts of the proposed Measure that relate to eradicating child poverty. We have not commented on the proposals for Child minding and Daycare or Integrated Family Support Teams. The response draws on a range of research evidence and expertise.

This response has been prepared by Helen Barnard and Chris Goulden, Policy and Research Department, Joseph Rowntree Foundation (JRF) with input from Victoria Winckler, author of a forthcoming JRF Viewpoint 'What is needed to end child poverty in Wales?’ and Nancy Kelley, Assistant Director of Policy and Research, JRF.

1. Is there a need for a proposed Measure to deliver the objective of contributing to the eradication of child poverty?

2. How will the proposed Measure change what organisations do currently and what impact will any such changes have?

In order to meet the goal of eradicating child poverty, there is certainly a need for much greater action from the UK government, the Welsh Assembly Government, local authorities and other service providers, as well as business and employers.  

Whilst child poverty in Wales (as in the UK overall) fell between 1999 and 2005, this progress has now stalled, and levels may even have started to rise.  Currently, about 29 per children in Wales live in poverty (after housing costs).  For the UK as a whole, the most recent projections carried out by the Institute for Fiscal Studies suggest that the target of halving child poverty by 2010 will by missed by 600 000 without new policies.  The work also suggests that levels could rise to 3.1 million by 2020.

The extent to which this Measure will ensure that further progress is made in Wales depends to a great degree on the contents of the new child poverty strategy currently being prepared by the Welsh Assembly Government. In particular, it is vital that it achieves a step change in four areas: childcare, parents’ skills, the type of job opportunities available to them and the way in which families are supported by the benefits and tax credits system (in as far as it is possible for the Welsh Assembly Government to affect this). How far other authorities (such as local authorities, health and education providers) are convinced of the need to act to reduce child poverty and understand the type of interventions that will be effective will also be crucial.  In addition to this, the level of resources that are made available will be vital.

Our evidence suggests that current policies in Wales and across the UK are unlikely to meet the aim of ending child poverty. The new strategy should set out clearly what actions will be required from the Welsh Assembly Government, local authorities and other authorities and also the UK government in order for child poverty to be eradicated. This should be accompanied by a detailed assessment of the expected effects of the range of existing and proposed policies which can contribute to the eradication of child poverty. It should also set out the resources required in each area. A realistic discussion of what the Welsh Assembly Government expects to achieve in each area and a more open debate about the level of resources that should be devoted to the goal would seem to be a pre-requisite for a more effective strategy.

We welcome the proposals to ensure that a range of bodies develop and publish strategies to address child poverty, including Welsh Ministers, local authorities and other Welsh authorities.  Given the complexity of the causes and effects of child poverty, and the wide range of policies which affect it we support the inclusion of the broader group of Welsh Authorities discussed in option three of section 6.2 (Costs and Benefits) of the Explanatory Memorandum.  We suggest that consideration be given to including other 'authorities’ in addition to those listed, such as further education colleges, Sports Council for Wales, Arts Council of Wales, as these are at least as important to tackling child poverty as organisations such as the Countryside Council for Wales.  It should also be clear that the proposed measure applies to local authority bodies such as regional transport consortia.  

We would hope that this will encourage all these bodies to consider seriously how they can act to reduce child poverty. It should also help to facilitate a full and detailed debate on the likely effectiveness of their proposed actions. The provision for the Welsh Assembly Government to ensure, through regulations, that some key actions are taken should allow the Welsh Assembly Government to take a strong leadership role in driving progress on child poverty in Wales.

1. Are the sections of the proposed Measure appropriate in terms of achieving the stated objectives?

There are a number of elements in the proposed Measure that we believe are very important and welcome.  

First, the clear acknowledgment that improved access to childcare is essential is very positive.  In addition, the approach to childcare reflects an understanding of the need for this to both enable more parents to work and promote child development (meaning that affordability, accessibility and quality are all crucial).  We do, however, have some concerns about the focus and scope of current policy, discussed further below.

Second, the provisions in the Measure also reflect the Welsh Assembly Government’s continued commitment to providing support to parents to facilitate their development of positive relationships with their children. The continuation of the focus within the Flying Start and Cymorth programmes on ensuring that children have warm, secure and affectionate relationships with their parents and other caregivers is based on strong evidence and greatly to be welcomed.

Third, as discussed above, the proposals aim to ensure that a whole range of public bodies play an active part in reducing child poverty, beyond those which already see it as their 'core business’.  Research has shown the complexity of factors which contribute to child poverty and the range of policies which need to be put in place to address it.  Ensuring that there is strong motivation for all these organisations to consider child poverty as part of their work is therefore important.  

There are also three areas in which the current proposals do not seem to fully reflect the evidence on the nature of child poverty and what is needed to tackle it.

• The role of employment

• Childcare

• Benefits and tax credits

The role of employment

One of the broad aims for child poverty in the proposed Measure (2 c) is "to promote and facilitate paid employment for parents of children”.  Whilst having one or more parents in paid work reduces the risk of child poverty it is important to remember that forty per cent of children in poverty have at least one parent in work.  Almost all of the reduction in child poverty in Wales over the last decade has been among workless families. Across the UK as a whole, the risk of being in poverty in families where at least one adult is in work did not change between 1996 and 2006.    

There is a growing realisation among policy makers, supported by the latest research evidence, that simply moving parents into work will not necessarily lead to reductions in child poverty. Both the amount of work in a household and the type of work determine whether it provides a route out of poverty or simply a move from out of work to in work poverty.

The two characteristics crucial for work to lift families out of poverty are sustainability and quality.  The existence of the 'low pay no pay’ cycle is well documented.  Across the UK as a whole, almost half of the men, and a third of the women, making a new claim for Jobseeker’s Allowance were last claiming it less than six months ago.  Being unemployed increases the likelihood of moving into a low paid job. Being low paid increases the likelihood of becoming unemployed.  In addition, families where parents are moving in and out of work face particular hardship due to gaps in income where benefits and tax credits do not respond quickly to changes in circumstances.

The issue of quality refers both to the pay and conditions of work and to the extent to which it can be readily combined with family responsibilities.  

In a forthcoming JRF report on Child Poverty in Wales, Victoria Winckler highlights the importance of this issue and the lack of focus on it so far in Wales:   

"Most obviously, the hours and pay associated with work determine a household’s income, and hence the likelihood of its members living in poverty.  However, its significance is greater than that: Kenway (2008) suggests that job quality is a key element in family choices about how much work is done and by whom, especially whether both adults in a couple household choose to work.  This choice is a crucial one as a second job in a household can make the difference between poverty and an acceptable living standard.  It should not be forgotten that forty percent of children live in households where someone is in employment.

Employment quality has been virtually absent as an issue in the child poverty strategy in Wales, nor has it been prominent in strategies on the economy and skills. This is not to say that the need is not pressing:  research suggests that women and men in Wales are less likely to have access to flexible working arrangements than in England (Dex and Ward, 2007); low pay is just as prevalent in Wales as elsewhere in the UK, and is exacerbated by the gender pay gap; and there are suggestions that social mobility in Wales is no better, and possibly worse for younger age groups, than elsewhere (Paterson and Iannelli, 2007).”  

Winckler points out that the Welsh Assembly Government have supported various initiatives looking at work/life balance but that these have not been linked to the goal of reducing child poverty.  The proposed Measure and the strategies that support it provide an opportunity for this to be rectified.

This is also part of a broader need for much greater consideration of the demand side factors affecting parental employment. Much government policy thus far, in Wales as across the UK as a whole, has tended to place the emphasis on the supply side - focusing on job seekers’ skills, health, caring and so on. The report 'Can work eradicate child poverty?’ identified a lack of part-time work, particularly good quality part-time jobs, as a key barrier to reducing child poverty through greater parental employment. Subsequently, research carried out by the Institute for Public Policy Research argued that 'without a coherent strategy for improving the quality of jobs available in the UK labour market, current policy will have only a limited impact on reducing the extent of low pay and working poverty’. In particular, the report highlighted the need for action to increase employers’ demand for and use of, higher skills. This has not, thus far, been a strong focus of attempts to tackle child poverty, but it is beginning to emerge as a vital part of an effective strategy.

Finally, there are two groups of low income parents whose particular needs in relation to employment (and other issues such as childcare) do not seem to have received sufficient attention thus far. Wales has high levels of sickness and disability and forty per cent of children who live with a disabled parent are in poverty compared with twenty five percent of children with non-disabled parents. Second, Wales has a relatively high proportion of the population (13 per cent) who provide unpaid care to a family member, relative or neighbour. People providing more than 20 hours of care a week are much less likely to have a job than non-carers. It is important that the proposed Measure and policies flowing from it acknowledge the restrictions that disability and caring may place on parental employment, and the additional support that these parents and families may require.

Childcare

The proposed Measure includes a duty for local authorities to secure the availability of free childcare as may be set out by regulations for children under school age.  The Explanatory Memorandum states that it is intended that this will allow Welsh Ministers to require local authorities to provide free childcare for two and three year olds in specific areas.  It further says that this is not intended to place any new burdens on local authorities beyond those associated with the current Flying Start programme.   

Whilst the intention to provide free childcare for two and three year olds in disadvantaged areas is positive, the evidence suggests that this will not be sufficient to enable significantly greater reductions in child poverty.  In her forthcoming report for the JRF, Victoria Winckler points out that there is still a shortage of childcare in Wales, despite the Flying Start programme:

"In Wales there is one registered childcare place for every 7.3 children compared with one place for every 5.7 children in England (Care and Social Services Inspectorate Wales, 2008; Ofsted, 2008; National Statistics, 2008).  Further, the increase in the number of places in Wales has stalled after growth in the first years of the decade.  Much of the provision for under-5s is part time (for example current guidance on Flying Start provision is to provide 12.5 hours a week, 42 weeks a year) and area-based initiatives do not address the needs of poor children living outside disadvantaged areas.”

In addition, there is a need for better provision for school age children (both wrap around care and school holiday care) and for families where parents work atypical hours.

Winckler concludes that:

"Although the Welsh Assembly Government’s initiatives are very welcome, it seems that in Wales as in the rest of the UK childcare is an area in which there must be a step-change if the child poverty target is to be met.  A number of recommendations in Waldfogel and Garnham’s (2008) report can be adapted to be relevant to Wales, namely:

• Rolling out the childcare element of Flying Start to all areas of Wales;

• Increasing the provision of part time education for three and four year olds to 20 hours a week, rising to 30 hours a week;

• Integrating free, part time provision into a wider package of care for those who need wrap-around care for longer hours or for care in atypical hours;

• Reviewing the capacity of the childcare sector in the light of free provision;

• Reviewing out of school and holiday provision for 5 - 11 year olds and over 11s;

• Exploring ways of meeting the childcare needs of parents working atypical hours;

• Improving the quality of childcare by moving towards a graduate workforce;

• Ensuring provision is integrated with the requirements of Working Tax Credits.”

Benefits and tax credits

Control over most of the tax and benefit system does not, of course, lie with the Welsh Assembly Government.  However, there are a number of benefits that are administered by local authorities, such as:

• Housing and Council Tax Benefits

• Free School Meals and school breakfasts

• School Uniform grants

• Educational Maintenance Allowances

• Concessionary fares on public transport and charges for publicly run leisure and cultural activities.

A number of these grants and allowances are more generous and/or are available to a wider population than is the case in England. As the Welsh Assembly Government has acknowledged previously therefore, it is important that Welsh authorities do all that they can to encourage take up and ensure that all of these benefits, grants and allowances have as great an impact on child poverty as possible.   

More broadly the way in which benefits are administered and operated can affect both parental employment and take up. Discussions with stakeholders in Wales identified devolution of benefit and tax credit administration as an area worthy of further examination.

2. What are the financial implications of the proposed Measure for organisations, if any?

The financial implications of the proposed Measure depend on the content of national and local strategies and the demands that flow from these. One issue that does not so far seem to have been sufficiently addressed by the Welsh Assembly Government, UK government or other authorities is the likely need for much greater resources to make significant progress towards ending child poverty.  Whilst some of the necessary changes may not require higher levels of public spending, it seems unrealistic to assume that this is the case for all. In particular, this may be the case in providing sufficient childcare and a benefit system that supports families out of work or on low wages. A realistic assessment of this and its implications for public spending and the kind of economic development that will be needed is vital.  As discussed above, an effective child poverty strategy should be based on a clear understanding and statement of what is required in each policy area, what can be expected from current policies and what more is needed.

References

All of the following publications are available on the JRF website at www.jrf.org.uk  unless otherwise indicated.

Hirsch (2009) Ending Child Poverty in a Changing Economy, JRF

Hirsch (2006) What will it take to end child poverty? Firing on all cylinders, JRF

Hirsch (2008) What is needed to end child poverty in 2020? JRF

Kenway (forthcoming) Monitoring Poverty and Social Exclusion in Wales 2009, JRF

Winckler (forthcoming) What is needed to end child poverty in Wales? JRF

Smith, N. and Middleton, S. (2007) 'Poverty dynamics research in the UK’ (JRF Findings, Ref: 2041)

Kenway, P. (2008) Addressing In-work poverty, York: Joseph Rowntree Foundation

Dex, S. and Ward, K. (2007) Parental care and employment in early childhood Working Paper Series No.57, Manchester: Equal Opportunities Commission

Paterson, L. and Iannelli, C. (2007) Patterns of Absolute and Relative Social Mobility: a Comparative Study of England, Wales and Scotland, Sociological Research Online, Vol. 12 Issue 6.

Simmonds, D. and Bivand, P. (2008) Can work eradicate child poverty? York: Joseph Rowntree Foundation.

Lawton, K. (2009) Nice work if you can get it. London: IPPR.

Save the Children Fund / Bevan Foundation (2007) Children in Severe Poverty in Wales, Cardiff: Save the Children

National Statistics (2008) Mid Year Population Estimates, 2007. Available at: http://www.statistics.gov.uk/statbase/Product.asp?vlnk=15106

Ofsted (2008) Registered childcare providers and places in England, August. Available at: http://www.ofsted.gov.uk/Ofsted-home/Publications-and-research/Browse-all-by/Care/Childcare/Quality-of-childcare

Waldfogel, J. and Garnham, A. (2008) Childcare and child poverty. York: Joseph Rowntree Foundation.

Evans, M. and Williams L. (2008) Tackling child poverty when parents cannot work. York: Joseph Rowntree Foundation.