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IMPACT OF CHILDCARE SUPPORT FOR LONE PARENT STUDENTS

1 EXECUTIVE SUMMARY

1.1 INTRODUCTION AND BACKGROUND

1.1.1 The Child Poverty Package was launched in July 2001. It is designed to help lone parents into further and higher education (FE and HE) through supporting childcare costs, and improving the supply of childcare. This study was commissioned to develop a monitoring framework and also to collect and analyse monitoring data on the first year of operation of two elements of the package. These were the provision of a new 1,000 annual grant towards the costs of formal childcare for lone parents in full time higher education, and the funding that has been made available to further education colleges to widen childcare provision.

1.1.2 The aims of the research were:

• to design a monitoring framework for two elements of the child poverty package initiatives (1,000 childcare grant to lone parents in full time higher education and widening of childcare support through further education providers);
• to identify and collate existing monitoring data and, where this data did not already exist, to design and undertake fieldwork to collect monitoring data relating to the first year of operation of the initiatives;
• to analyse and present the monitoring data, drawing out key findings emerging in relation to the first year of operation of the initiatives;
• to explore the way in which the initiatives have been implemented in practice, drawing out lessons in order to inform future years of operation of the initiatives;
• to make recommendations for modifications to the monitoring framework and for future collection of monitoring data on the basis of the first year monitoring exercise;
• to record and store the monitoring data in a format that can be retrieved and used for subsequent phases of the monitoring and evaluation process;
• to identify data availability and access issues in relation to monitoring these initiatives and suggest ways to tackle these issues.

1.1.3 The methodology included:

• Meetings with members of Scottish Executive Social Research, the Operational Policy Officer for the Student Awards Agency for Scotland, and the FE Student Support Officer at the Scottish Further Education Funding Council.
• Visits to five FE colleges, which were selected on the basis of the level of their involvement in and provision of childcare facilities, and geographical location.
• A quantitative study of 4,000 lone parent students currently studying on higher education programmes at institutions throughout Scotland. 1,120 questionnaires were completed and returned, giving an overall response rate of 28%.
• Five focus groups: one in Dundee; two in Glasgow; and two in Edinburgh. The research team also held more informal discussion groups with FE and HE lone parent students in Dumfries & Galloway College, Langside College, Lauder College and Motherwell College.

1.2 FURTHER EDUCATION SUPPORT

1.2.1 The availability of the FE Childcare Fund has increased provision in some colleges, but at least one college (and others based on anecdotal evidence collected during the survey) has refrained from expansion due to the time-limited nature of the funds made available through the initial announcement.

1.2.2 Some colleges are keen to maximise their student numbers and are effectively utilising the new monies to attract lone parents. They are also forming links with community groups to address childcare problems. Others have yet to identify this market.

1.2.3 Lone parent students pursuing FE courses often have access to fully funded childcare places in the college itself. Outwith the college, the experience varies geographically, with childcare provision being available and relatively convenient in urban areas, but much less accessible in rural areas.

1.2.4 There are differentials between provision for FE and HE students that can affect progression from FE to HE, even within the same institution (see 2.3.1 for details). FE students stay on benefits, and have access to free nursery places in the college. Most HE students lose their benefits once in receipt of the student loan (although students with children can retain Housing Benefit entitlement in some cases), and receive the Lone Parent Childcare Grant (LPCG) towards childcare. Additional discretionary support is also available through the Mature Students' Bursary Fund (MSBF) administered by colleges and universities. According to our calculations on the basis of survey responses, the cost of 'formal' childcare for an under five for one academic year is at least 1,900. Thus, if a lone parent FE student with such a child or children wishes to progress to an HE course, the potential reduction in childcare support can be a major disincentive, compounded by the loss of benefits suffered on enrolling for full time HE study.

1.2.5 Guidance given to colleges and universities encourages them to provide at least 1,000 from MSBF to lone parent students for childcare costs. Because MSBF awards are subject to a limit of 2,000, in practice the funds available to lone parent students from MSBF for hardship and rent are reduced (although they may still be able to get such help from the Hardship Funds).

1.2.6 Lone parent students attending Higher Education Institutions (HEIs) but who had previous experience of a Further Education (FE) college, informed the research team that they received far less support and guidance at the HEI than at the FE college.

1.2.7 In summary, FE support appears to be working well where there is an adequate supply of 'formal' childcare available to lone parent FE students, usually where an FE college has made provision in a college nursery available, or in urban areas. In rural areas, where a college does not make available sufficient provision in a college nursery, the supply failure in the market place can result in lone parents being unable to benefit from the support available for childcare. These findings are based on exploratory research with a selection of FE colleges.

1.3 HIGHER EDUCATION SUPPORT

1.3.1 Funding support for HE students is provided mostly through the Student Awards Agency for Scotland (SAAS). Lone parents are entitled to certain support in addition to that available to the generality of students - namely the Lone Parents' Grant (1,100) and the Lone Parents Childcare Grant (1,000). Like other students, they have access to students loans, the Mature Students' Bursary Fund (or Young Students' Bursary), the Dependants' Grant, School Meals Grant and Travelling Expenses, where eligible.

1.4 LONE PARENT HIGHER EDUCATION STUDENT PROFILE

1.4.1 A picture of a typical lone parent who receives the Lone Parents' Grant can be drawn from the survey respondent. She is female, aged between 25 and 44, most likely divorced or separated, and likely to be living in her own home or in social rented accommodation. If not, she will likely be single and living alone in social rented accommodation.

1.4.2 If previously in employment, this will have been in the administrative or service industries, and usually in a support position. A third will have been on Income Support or unemployed immediately prior to studying.

1.4.3 Her motivation for studying will very likely be to support the family. Her plans for future employment will tend to focus around teaching, business and the caring professions.

1.4.4 On average, lone parents have 1.3 dependent children per adult. The children will likely be under 10 years of age. The lone parent is as likely not to be claiming the LPCG as claiming.

1.4.5 Focus groups also showed that being a lone parent HE student is a high stress occupation with the combination of roles as student, lone parent and, in some cases, part-time employee.

1.5 CHILDCARE ISSUES FOR LONE PARENT HIGHER EDUCATION STUDENTS

1.5.1 Friends or relatives provide childcare for 44% of survey respondents. The main reasons for not using 'formal' childcare are cost, the lack of availability of registered minders (particularly in rural areas), and the need to book formal childcare places in advance of knowing the actual need.

1.5.2 Claimants of the LPCG (half the survey sample) are much more likely to be using 'formal' childcare than non-claimants. The use of informal childcare increases with the age of the child and with the age of the parent. Cost and availability issues can mean that another member of the lone parent's family gives up work to help with childcare.

1.6 FINANCIAL ISSUES

1.6.1 The vast majority (96%) of respondents who claimed the LPCG found it "helpful" or "very helpful".

1.6.2 The main reason given for not claiming the LPCG is the fact that the respondent is not using a formal childcare arrangement. Around a fifth of non-claimants, however, said that they did not know about the grant.

1.6.3 Childcare costs reduce as the age of the child increases. According to our calculations on the basis of survey responses, the cost of 'formal' childcare for an under five for one year is at least 1,900 per academic year. A lone parent in HE in 2001-2002 received one LPCG of 1,000. Lone parents informed us that this did cover the cost of around 1,000 for one child for an academic year at an After School Club. The LPCG is a fixed amount, regardless of the number or age of children.

1.6.4 Typical lone parents in the 25 - 44 age groups are most likely to be claiming from the Hardship Funds. The debt levels they are incurring are a cause of stress and concern to lone parent HE students. Worries about rent are one of the main sources of financial concern, and lone parents say they have less flexibility to take part-time jobs whilst studying than other students because of their parenting responsibilities.

1.7 COMMUNICATION OF SUPPORT

1.7.1 Personal interaction with an advisor appears to be effective in helping lone parent HE students secure funding.

1.7.2 Lone parents towards the younger end of the age spectrum were more likely not to have claimed the LPCG through not knowing about it.

1.7.3 The apparent lack of awareness of the grant reinforces the need for good financial advice and support networks for lone parents. Interviews found that lone parents in FE colleges felt better supported and advised than those in universities.

1.8 MONITORING FRAMEWORK

1.8.1 The frameworks for data collection set out below were recommended by the consultants.

HE Monitoring Data Collection Framework

FE Monitoring Data Collection Framework

1.8.2 Available data for 2001-02 has been collected by the authors of this report. In future years, additional data will become available from SAAS and SFEFC.

1.8.3 The consultants recommend that consideration be given to conducting another large scale, quantitative survey of lone parent students, similar to that carried out within this project, after the LPCG has been available for a period of years, e.g. in academic year 2003-04 or 2004-05.

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