| |
Budget 2004 must deliver on childcare
|
|
| |
15/03/04 Childcare must be the key priority for spending in Budget 2004, says national charity One Parent Families. Despite improvements in the supply of places there is still only one childcare place for every four children aged under eight and the costs remain a barrier for many single parents who want to work.
Without new investment in childcare the Government will fail to meet its targets of halving child poverty and enabling 70% of single parents to work by 2010. One Parent Families is pressing the Chancellor to take the opportunity in Budget 2004 to accelerate the roll-out of Children's Centre's beyond the 20% most deprived areas. And it will be looking for new measures to make childcare more affordable for lone parents.
The Chancellor should increase the proportion of costs met through the Child Tax Credit above the current 70% and introduce a run-on of support with childcare costs following the end of a period of employment so that lone parents can stay engaged with the labour market. He should increase the maximum costs met in areas of high childcare costs such as London and increase the ceiling in costs for the second and subsequent children. Without an increase in the provision of good quality, affordable childcare, further progress for lone parents will be impossible.
In its Budget 2004 briefing One Parent Families calls for a range of further reforms on tax credits, the New Deal for Lone Parents and the Social Fund.
Tax Credits
Further tax credit and benefit increases will also be essential to bring the poverty reduction targets within reach. The government should consider further increases in Child Tax Credit (CTC) above the £3.50 announced in the Pre Budget Report. In its Budget 2004 briefing One Parent Families makes the case for a total increase of £12 in the CTC plus a £1 per hour increase in the New Minimum Wage (NMW) (taking it to £5.50).
Budget 2004 should introduce new measures to ensure effective tax credits administration. For the scheme to be successful in tackling poverty, people need to be able to rely on receiving the right amounts at the right time. The Government must ensure the reconciliation and renewals process runs smoothly and extra Inland Revenue staff and training for staff in key agencies such as jobcentre plus are crucial if we are to avoid the problems claimants' encountered when the credits started. Swift access to hardship payments must be guaranteed.
New Deal for Lone Parents
Budget 2004 should invest in employment and skills programmes. The New Deal for Lone Parents (NDLP) has been successful in helping lone parents into work but this tends to be into jobs at and around the minimum wage: 55% of children living with a working lone parent still fall in the bottom two-fifths of the income distribution; 51% of lone parents on income support have no educational or technical qualifications. Policy must therefore focus more on skill-building and employment retention and advancement so that lone parents get the chance of work progression. NDLP should move towards providing more tailored support for single parents both before and after the transition to work with a particular focus on increasing the support for skills building through training provision. Budget 2004 should introduce the position of training officer in Jobcentre Plus and NDLP participants should have continued access to the NDLP Personal Advisers Discretionary Fund in their first year of work or training to help with additional unforeseen expenses during this period and with retention of employment or training. One Parent Families would also like to see a lowering of the number of hours needed to claim the Working Tax Credit (WTC).
The Social Fund
Budget 2004 should start the long overdue process of overhauling the Social Fund to bring it in line with Government targets on poverty, employment, decent housing, social and financial exclusion As it stands, the Fund is failing to help many of the families in greatest need. In a joint report, One Parent Families, the Family Welfare Association and the Child Poverty Action Group press for a series of changes. Lump sums: roles for the Social Fund in Ending Child Poverty proposes that the Fund is largely replaced by a set of 'inclusion funds' - mainly grants - focused on providing the poorest families with basic essentials for a decent home and healthy children.
ONE PARENT FAMILIES DIRECTOR KATE GREEN WILL BE AVAILABLE FOR COMMENT ON BUDGET DAY VIA PRESS OFFICER JANE AHRENDS ON 0207 428 5416 OR 0788 1951138.
|
...Back to previous page
|
|
| |
|
|
|
|
|
