The reports published today by the Joseph Rowntree Foundation on family breadwinners and poverty are a wake-up call to a government hell bent on turning back the clock on child poverty and family opportunity.
The NatCen and IPPR reports for the JRF show the true depth and extent of those on the breadline, with many working families struggling to make ends meet as David Cameron’s cost of living crisis bites. The reports show that the risk of poverty is greater for children in couple families with one traditional breadwinner, with single-earner families comprising 30 per cent of the families with children in poverty in 2011/12. The reports show that 55 per cent of families in poverty have someone in work, a shocking indictment of a government allegedly committed to making work pay.
Under David Cameron many families are finding one income alone is not enough to balance family budgets at the end of each month. He has hit families with a childcare triple whammy of falling places, rising nursery costs (up six times more than wages last year) and cuts to support of up to £1,500 for some families. The JRF rightly highlight affordable, quality childcare as a key driver for tackling low maternal employment and boosting family income. Labour’s new agenda does just this.
Labour in government made headway on these issues. The IFS has shown that during our time in office both absolute and relative poverty fell markedly. Increases in employment helped to raise family income alongside tax credits, the national minimum wage, support for childcare and investment in the early years.
David Cameron is taking us back to the future with prices rising faster than wages in 40 out of the 41 months he’s been in power. The Tory-led government is pushing families into poverty and many low paid women can only access poorly paid part-time jobs because of a lack of accessible and affordable childcare. Universal Credit will create further barriers to work for some second earner households and some women will actually pay to work if they increase their hours. Under Universal Credit, as soon as a second earner enters work, 65p of every £1 earned will be lost to withdrawn benefits. This could affect 900,000 potential second earners disincentivising work and perpetuating poverty and inequality.
Labour’s new agenda will make a difference for working families making work pay and helping parents balance work and family life. Giving parents a primary childcare guarantee to help them manage before and after school childcare will ease the logistical nightmare some face and give parents more flexibility to work. Labour will legislate so that parents can access childcare between the hours of 8am and 6pm through their local school. Extending the provision of free childcare for three and four year olds from 15 to 25 hours a week for working parents will help mums, and it is still mainly mums, to work part-time without having to worry about childcare costs. This is worth around £1,500 per child for hard pressed working families. Shared parental leave is important as well. It is crucial in giving women the choice and the chance to return to the same job and retain their earning potential, rather than taking time out of work after they have children which, for many, means they will never again have the same pay and status.
Affordable high-quality childcare, make work pay contracts for companies paying the living wage and better family-friendly policies are all part of the new agenda Labour is developing. Our new agenda is a sign of our intent for a better future for families and children.