1 how can parents escape from recurrent poverty? the low-pay no-pay cycle and disadvantaged mothers...
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How can parents escape from recurrent poverty?
The low-pay no-pay cycle and disadvantaged mothers
Professor Ronald McQuaid, with Vanesa Fuertes and Alec Richard
Scottish Policy Innovation Forum at the Royal Society of Edinburgh 14 June 2010
Employment Research Institute
Edinburgh Napier University, Edinburgh www.napier.ac.uk/eri
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Policy Context
Series of government policies dealing with
poverty and child poverty in particular
Government aim of ending child poverty by 2020; Scottish Parliament report
Mainly by getting more parents into employment – accept poverty & well-being more than just employment
Child poverty statistics Proportion of children in poverty higher for workless
households Many children in poverty live in households where one
or two parents work
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Research Context
Few qualitative studies on low-income parents
Poverty as a dynamic process – poverty as: Persistent Recurrent Transient
Lack of research on recurrent poverty This study was funded by the Joseph Rowntree
Foundation as part of their Recurrent Poverty Programme One of the five in the Recurrent Poverty Programme
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Aims of the research
Reasons for recurrent poverty among
disadvantaged parents and ways to escape it. Special focus on childbearing and childrearing
Cycles of poverty caused by cycles of
worklessness. Movements into and out of paid employment Barriers and enablers behind those movements
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Methods
Quantitative analysis of Working for Families Fund
(WFF) data (12,248 parents, from 25,508 on WFF) Informed the qualitative data collection
Interviews with Parents (33) 31 WFF clients; 32 women; 14 areas in Scotland
Focus groups with professionals (WFF key workers) 3 focus groups with 27 professionals
Interviews with three professionals in managerial
positions Contrast and complement & solutions to problems
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Quantitative Findings
Over one third of mothers had entered employment
by the end of WFF
Characteristics associated with less likelihood of
entering paid employment: No qualifications Long term unemployment Having more children Having children aged 3 to 4 or children aged 12 or over Being under 19 or over 45 Children with disability / chronic health problem / RoN Reported as disabled
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Qualitative Findings
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Data collection Questionnaire
Nature of the data collected Participants’ recollection of past events Specific income details only recorded at time of
interview
Analysis of the data – dynamic patterns of
people’s lives Time-line data displays
Example
Interviews with Parents
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Going into poverty or worse poverty
Inter-related and cumulative factors: External factors including the labour market situation Household circumstances Individuals’ experiences & characteristics
Specific life event/s or ‘critical’ moments where a
household moves into poverty or worse poverty: The birth of a child The breakdown of the relationship Domestic violence, health, etc.
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Trying to escape poverty
The majority of our participants felt poor
The majority had held one or more jobs since falling into poverty A few participants suffered persistent non-working poverty (3)
The majority of parents wanted to work to: Improve household finances; Improve their emotional well-being; Be a role model.
Most parents were looking for part-time work Childcare and work-life balance considerations
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Paid employment – route out of poverty?
What effect did securing a job actually have?
Source: Joseph Rowntree Foundation (Cycles of poverty, unemployment and low pay)
Figure 1: Relationship between cycles of income and worklessness
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The low-pay no-pay cyclereasons and barriers
Low paid jobs – cost of working
Low qualifications and obstacles to education
The cost and lack of childcare
Types and conditions of jobs available
Debt
Low confidence
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The low-pay no-pay cyclereasons and barriers
The operation & levels of benefits and tax credits: The four-week gap
• Between benefits’ stoppage when starting work and first pay cheque
Working Tax Credit (WTC) • Top-up payment based on previous year’s income (practitioners)
• The lack of an estimate of entitlement
Childcare element of the WTC• Four-week gap – inability to cover upfront fees/deposit
• Payment averaged over the year while demand fluctuates
Others: transport; health issues; ‘target or box ticking
culture’
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Breaking the cycle
A few participants (4) have escaped the cycle for
a length of time, the majority by obtaining: Full-time jobs that paid above the minimum wage Jobs that solved or limited childcare barriers Effective support to overcome obstacle
Same number had recently escaped but are at
risk due to: Childcare arrangements Debt repayment Struggling with paid employment
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Conclusions
Make work pay
Increase access to affordable childcare
Encourage employers’ flexibility To reconcile work and family life
Reduce unintended consequences resulting from
the benefits and tax credit systems Make them more sensitive and responsive to people on
low-incomes to aid movements into and increase sustainability of employment
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Conclusions
Deal with debt issues by: Reducing debt incidence Adequate support and repayment schemes to minimise
its adverse effects
Reduce barriers to education To aid movements into better jobs
Have in place adequate support Holistic support targeted at a range of individuals’
needs Non-employment aspects of well-being, and
capabilities, are also crucial
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Thank you for listening
Copies of the JRF report are available at: www.jrf.org.uk/publications/how-parents-escape-recurrent-
poverty www.napier.ac.uk/randkt/rktcentres/eri/projects/Pages/ParentsE
csapeRecurrentPoverty.aspx
Copies of the Working for Families reports are available at: www.scotland.gov.uk/Publications/2009/04/20092521/0
www.napier.ac.uk/randkt/rktcentres/eri/projects/Pages/WorkingforFamilies.aspx
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Reasons out
Health
Support received
Finances
Reasons in
Accepted for training at hospital but moved away with husband job
Didn’t settle - moved back to home region
Overcame a developing problem
Feeling
Practical & emotional support from X organisation– confidence building / job seeking, offering courses, etc.
Husband retired on grounds of ill health – became breadwinner
Financially, emotionally & confidence building; felt ready to work; youngest ok working in school hrs; support
Friends very helpful emotionally; Parents emotionally + financially
Threatened miscarriage
Stopped work when husband died – grieving process
Had trust issues re. family problem
Preferred to work full-time but it did not pay off due to tax issues <> ?
Devastated by husband’s death – rejected help from those close to her
Rejected or unable to accept outside help: offered counselling, went once but not ready for it
Grief reaction; mood swings; rejection of other’s help;
Going from a 2 to none Income was horrendous <>; Parents provide financial helpWidow’s benefit + husband’s pension – not other benefit at all: very hard on this <>
Friends support; needed to get out of grieving process
HouseholdMoved region with husband
Husband ill Husband died
Family problem
EMPLOYMENT
UNEMPLOYMENT
EDUCATION
2000
x Workx work x Work
x Work
200x
200x
x Work
200x 2nd Child
200x3rd Child +Husband illness
200x Husband died
Moved away
Moved back to home region
Married200x
200x
200x
Reasons in
Supportreceived
Feeling
Back
200x
200x
IT course
200x 1st Child
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Financial hardship – Falling into poverty
“You’ve always got to count up. When I am
putting things in my basket I am always counting
everything in my head so to have enough and it is
horrible having to do that.” (Janet, lone parent with 1 child, unemployed)
Back
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Employment – emotional well being
“I think I was happier when I was working
because I was getting out and meeting new folk
and seeing different faces every day.
And when I am not working I am just stuck doing
the same thing day out day in.” (Amy, lone parent with 2 children, unemployed)
Back
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Employment - role model
“ … I think it’s really important that both my children
learn what is the right way to do things, that you work.
My children think that everybody goes to college when
they leave school because they’ve seen me studying on
constantly.
I want them to have those values that you work for a
living and you earn money and you reach your potential,
so I think it’s important as a role model to them for them
to see that.” (Rachel – lone parent with 2 children, unemployed)
Back
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Barriers – low paid jobs
“I felt really stressed out because … that is where
my wages were going, on my rent and my council
tax and then I didn’t have anything left even for
travel [to work and back].
So I was better off out of work than when I was
working.” (Emily, lone parent with 2 children, unemployed)
Back
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Barriers - childcare
“It is not being able to say to the employer when
I can start, what hours I can do, until you have
childcare in place … but you can’t get childcare
until you are working.” (Jane, lone parent with 4 children, unemployed)
Back
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Barriers - education
“Ever since I started college everything has been
up and down, like a rollercoaster money-wise.
I was better off when I wasn’t at college because
everything stayed the same.”(Mary, lone parent with 3 children, education part-time)
Back
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Barriers - debt
“Everything just hits you when you start working.
They come chasing you, that is the most horrible
thing about it, because it puts you off, just makes
you want to go back on Benefits and just pay £2 a
week.
I am going to be honest that is how it feels like,
but I am trying to deal with it.”
(Lucy, lone parent with 2 children, working full-time)
Back
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“Because I’d been out of work for such a long time …. when you are at home with young children, especially on your own, you really quickly lose confidence, you’re not getting any intellectual stimulation.
You’re feeling quite insecure about being a new parent and not really convinced that you’re doing it right all the time, it’s completely normal.
It doesn’t matter how much of a high flyer you were before, if you find yourself outside that loop, it really quickly goes away.”
(Rachel, lone parent with 2 children, unemployed)
Barriers - confidence
Back