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Active Labour Market Policy for Lone Parents: the UK Context

Active Labour Market Policy for Lone Parents: the UK Context. Jonathan Portes Chief Economist UK Department for Work and Pensions. Our overall labour market strategy. Macroeconomic stability Labour market flexibility Anti discrimination law and policy Making work pay

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Active Labour Market Policy for Lone Parents: the UK Context

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  1. Active Labour Market Policy for Lone Parents: the UK Context Jonathan Portes Chief Economist UK Department for Work and Pensions

  2. Our overall labour market strategy.. • Macroeconomic stability • Labour market flexibility • Anti discrimination law and policy • Making work pay • Active labour market policy

  3. 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 Loss Gain of less than £45 Gain of less than £50 Gain of less than £55 Gain of less than £60 Gain of less than £65 Gain of less than £70 Gain of less than £80 Gain of less than £85 Gain of less than £90 Gain of less than £95 Gain of less than £40 Gain of less than £10 Gain of less than £15 Gain of less than £20 Gain of less than £25 Gain of less than £30 Gain of less than £35 Gain of more than £75 Gain of less than £125 Gain of less than £130 Gain of less than £135 Gain of less than £140 Gain of less than £115 Gain of less than £120 Gain of less than £100 Gain of less than £105 Gain of less than £110 No change or gain of less than £5 Making work pay: tax credits and the minimum wage Gains to work for lone parents (30 hours, minimum wage)

  4. But system is complex and MDRs high

  5. 70% Note: between 1992 lone mothers (pre-1992), lone parents (post-1992) and 1996 the data has 65% not been regrossed to take into account the results of the 2001 census. 60% 55% 50% 45% 40% 35% 30% 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 Considerable success..

  6. 75% Lone parent employment rate 70% 65% 60% 55% 50% 45% 40% Spring 04 Spring 05 Spring 06 Spring 07 Spring 08 spring 09 spring10 Business Case Current Performance Trajectory required for 70% by 2010 But much more will be required

  7. New Deal for Lone Parents Programme structure: • Mandatory work focused interviews to “sell” the programme • But programme participation purely voluntary • Open to all lone parents on benefit • Help with access to childcare, jobsearch, training; but still workfirst approach • Piloting further elements: in work credit, worksearch premium, more childcare support

  8. Implications for evaluation • Voluntary nature raises selection issues • But correlation between take-up and outcomes suggests it’s not the usual problem • And is NDLP really a “programme” – or is it about information/signposting? • Suggests that how and by whom at least as important as what • If key role of NDLP is catalytic, how do we isolate effects?

  9. Key future issues • Explaining heterogeneous outcomes: geography, health status, ethnicity, etc • New Deal for Lone Parents Plus: evaluating a package of interventions • Quasi-mandatory work-related activity

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