More lone parents in work, says ONS

6 Sep 07
A rise in lone parent employment might have put the government on course to meet a crucial Public Service Agreement target, but 10% of the UK's population still lives in workless households.

07 September 2007

A rise in lone parent employment might have put the government on course to meet a crucial Public Service Agreement target, but 10% of the UK's population still lives in workless households.

Figures published by the Office for National Statistics last week revealed a mixed picture for the government as it strives to improve productivity and tackle poverty by getting people off benefits and into jobs.

The ONS Labour Force Survey shows that the employment rate for lone parents increased from 56.3% to 57.1% between April and June 2007. That equates to new jobs for around 15,000 of the UK's 1.9 million lone-parent families.

Work and Pensions Secretary Peter Hain said: 'There are more than a million lone parents with a job, an increase of over 300,000 under this government.'

But he urged Whitehall to 'do more'. The Department for Work and Pensions has a long-term target to get 70% of single parents into work. But it also has joint responsibility, with the Treasury, for a PSA for a 'significant increase' – defined as a two percentage point rise – in lone parent employment over the 2005/08 Spending Review period.

While the long-term trend for lone-parent employment is positive, the employment rate had stabilised at around 56%. Hain therefore published plans to encourage lone parents into work by stopping Child Benefit for their youngest child once he or she reaches seven.

But the ONS figures show that improvements have preceded Hain's proposals. Gabrielle Preston, a welfare expert at the Child Poverty Action Group, told Public Finance that cast doubt on the need for Hain's cuts.

'While there is a lot to do to achieve the 70% employment target for lone parents, the “big figure” improvements will now come with the introduction of improved childcare provision and extended school hours allowing parents to seek adequate work. We're doubtful that further benefit sanctions are the way to achieve continued improvements,' she said.

Hain also faces significant challenges to reduce the number of workless households. The ONS calculates that 3 million UK homes – including 6 million adults and children, or 10% of the population – have no breadwinner.

However, ministers have received a timely £2bn boost, announced on September 4, from the European Union's Social Fund to help tackle unemployment. Much of the funding will be matched by Whitehall, taking the total closer to £4bn.

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