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CHAPTER FIVE: DEMAND-SIDE FACTORS

Table 5.1: Summary of Key Points

Introduction

5.1 In this section we highlight the range of demand-side factors that have a bearing on the pilots by exploring the factors that may influence lone parents' decisions about whether or not to enter work and/or take up the childcare developed via the pilot.

5.2 The research shows that there are a wide range of demand-side issues that influence lone parents' views about work and childcare. Factors emerging during consultations with lone parents and other stakeholders have been grouped under the following categories:

• economic factors
• childcare factors
• parent factors
• child factors
• logistical/process factors.

Economic Factors

5.3 The research identified four key economic factors that influence lone parents' decisions to (re)enter the labour market:

• employment levels/opportunities
• employer flexibility
• making work pay
• perceptions of tax credits.

Employment Levels/Opportunities

5.4 The first factor relates to employment levels and the labour market opportunities available.

5.5 Several of the lone parents interviewed felt that there was a lack of suitable job vacancies in their local area. The research suggests that, in both areas, much of the work available is unskilled and /or shift work:

"There is a lot of retail and call centre work in the area." Jobcentre Plus Advisors

"A lot of the jobs these people are going for are not highly paid jobs, many of them are retail, many of them are unskilled, entry level jobs. They don't come with high wages." Jobcentre Plus Advisors

5.6 The research evidence suggests that lone parents can be reluctant to undertake shift work because the hours required do not easily enable them to balance work and family commitments. Preferences to work part-time and during school hours were common amongst the lone parents interviewed. In addition, some parents were disinclined to be away from their children if that meant taking up low skilled jobs:

"I would want day work and wouldn't be prepared to work evenings or weekends." Lone Parent

"I wouldn't want to work full-time." Lone Parent

"I'd need a job with hours that suit the family." Lone Parent

"I worked in a sewing factory previously. I hated it, just stuck in a factory all day y'know."

"I need work that fits in with the childcare available. There's retail work but it's anti-social hours so that restricts me from getting work."

5.7 Parental preferences for employment during school hours were corroborated by feedback from Jobcentre Plus Advisors:

"Lone parents want to work between the hours of 10 and 3. These jobs don't come up very often and when they do they go quickly." Jobcentre Plus Advisor

5.8 Thus, the emerging evidence suggests that although the pilot areas endeavoured to develop out of hours childcare to match the labour market opportunities available, many lone parents are not willing to work unconventional hours or hours which do not 'fit' with the typical school day.

5.9 Moreover, there is also evidence to suggest that where lone parents have considered weekend work, they still perceive that there is no childcare available to enable them to take up the opportunity:

"I was recently offered a job that involved working every Saturday. The local childminder does not want to work every Saturday and I had no other childcare options available. So I couldn't take the job and had to look for another one. It is difficult for me as I am looking for hairdressing work and you often have to work on a Saturday."

5.10 This could indicate an information deficit ( i.e. that lone parents are not being given sufficient information about the childcare available) or it could be that lone parents are not proactively seeking out information. It could be that lone parents cite lack of childcare as the barrier to work because this is considered more 'socially acceptable' when, in fact, other factors are also influencing their decision (such as a preference to be at home with their child). This issue is explored further in Chapter Six.

Employer Flexibility

5.11 The extent of employer flexibility was also a factor affecting lone parents' ability to enter work.

5.12 Feedback from Jobcentre Plus advisors indicated that a lack of employer flexibility regarding shift patterns caused difficulties for lone parents. This hindered them in balancing the challenges of unconventional shift patterns with the challenges of finding similarly flexible childcare arrangements. In addition, it was also highlighted that employers, particularly those offering seasonal work, often do not inform workers of shift patterns sufficiently in advance for them to be able to arrange childcare to meet the differing hours allocated on a week by week basis.

"Give us more flexitime so we can choose the hours so we can work for an employer without feeling like a burden." Lone Parent

"I want to work 9-3. Some employers will not give you the school holidays off and obviously you don't get paid for that. You need someone [employer] who can be flexible around your childcare." Lone Parent

Making Work Pay

5.13 A key concern for lone parents, as indicated in the interviews with them and with the Jobcentre Plus advisors, was the extent to which 'work pays' and is therefore considered a financially viable option ( i.e. to make work financially more attractive than receiving benefits).

5.14 Several stakeholders commented that 'better-off' calculations can reveal little difference in terms of income levels compared to benefit payments. This can reduce the incentive for lone parents to work and limit their willingness to tackle the range of other obstacles experienced in re-entering the labour market (such as ensuring their child is happy in childcare, starting a new job):

"I would need a job of at least 16 hours a week - preferably 20-24 hours a week. If the hours are less, it wouldn't be financially worthwhile to put the children into childcare." Lone Parent

"The work available is seasonal work. I'm not sure how this would affect all my benefits when it's only for a short period." Lone Parent

"I'd lose my housing benefit if I took up work." Lone Parent

"If I work then I have to pay full rent and council tax, lose the free school meals and the bus fares. I'll be about £30 a week worse off when I work." Lone Parent

"Working 16 hours a week means I am no better off. You then have to add in costs to get to work because there are no jobs locally." Lone Parent

5.15 Jobcentre Plus advisors also highlighted that the removal of other entitlements available to benefit recipients, further reduces the extent to which work pays. For example, when lone parents enter work and stop claiming benefits, free school meals stop too, which means parents have to find a job that covers the costs of school meals on top of other outgoings ¹¹.

Perceptions of Tax Credits

5.16 A further factor influencing lone parents' decisions to enter work was concern over the tax credit system. Some lone parents were sceptical of the system because of media, or word of mouth, reports that they may be given money they were not entitled to and that they would have to repay at a later date:

"I don't trust the credit system. My mum and brother were overpaid and then had to pay some back. I don't want to get into that situation." Lone Parent

Childcare Factors

5.17 The research indicates that there are a range of factors that influence lone parents' decisions around childcare and which, in turn, influence their decisions to enter the labour market. These include:

• preferences for informal childcare - Many of the lone parents interviewed indicated a preference for informal childcare networks (relative or friend) because of the perception that this was better for their child. This highlights the need to raise awareness amongst parents of the benefits of good quality formal provision. Some lone parents preferring informal childcare had concerns about the extent to which this could be relied upon when used regularly to enable them to take up work. In particular, concerns were raised about the stability of informal childcare arrangements because they could not afford to pay or reimburse the 'provider' (usually a relative or friend):

"I've never thought of using any other form of childcare [other than a relative/friend], it's nicer with the family. But obviously, I can't use them all the time and during the holidays." Lone Parent

"I think it's much better to leave the children with family members but if you use them all the time you would have to pay them." Lone Parent

"What would really make a difference is if there was money available to pay relatives (like grandparents) rather than just registered childminders." Lone Parent

• trust of formal childcare provision - limited trust of formal childcare providers, and of childminders and Sitter Services, was evidenced amongst some lone parents. Stakeholders highlighted that parents need time to develop their trust of childcare. This is because concerns over childcare can exacerbate parents' reservations when starting a new job. This can adversely affect the extent to which they sustain work, particularly in the early days, since they may well have multiple fears to conquer:

"I wouldn't use a Sitter Service. I don't like the idea of leaving my child with a stranger." Lone Parent

"There are two childminders in this area. One, I simply would not use because I don't trust them, and the other is fully booked. All other childcare is in the town which is not practical for me." Lone Parent

"I wouldn't feel comfortable leaving my child in a nursery. You hear all these horror stories. I am not keen on leaving them with strangers." Lone Parent

"I only trust family. I wouldn't leave him with anyone else." Lone Parent

"Parents have to find childcare, then worry about how their child will get to that childcare. They then have to be confident that their child is happy and well cared for in that childcare facility. You need to alleviate their fears because a lot of it is about trust. And they are worrying about all of these things when they start a job as well as how they will cope/adjust to work." Jobcentre Plus Advisor Manager

• preference to be main care giver - for many of the lone parents interviewed, a preference to be the main care giver was an important factor in shaping parental attitudes towards work and childcare. Such parents considered it their duty and privilege to provide childcare themselves:

"I want to look after my child myself." Lone Parent

"I want to spend time with my child. He's only four." Lone Parent

"I would prefer to work at home and then I can be with my kids." Lone Parent

"T'be honest, I didn't have kids for someone else to bring them up." Lone Parent

"I want to be with my kids. When you are a lone parent you are on your own. You are the only one who is there for them." Lone Parent

"I believe that I should be there for them." Lone Parent

• hours spent in childcare - the previous section highlighted concerns raised that children could potentially be in childcare for long hours if their parents were employed in shift work. Concerns regarding the effects on their child of working unconventional hours were also raised by lone parents:

"I would like to go back to working in a nursing home but the shifts aren't good. I'd have to get my child to the carer by 7.30 am which when you add on travel time would mean getting him up early every day. That worries me." Lone Parent

• availability and cost of childcare during school holidays - a number of lone parents highlighted the difficulty of sourcing childcare during school holidays. This was also linked to issues of cost, with lone parents expressing concerns about the additional costs incurred for childcare during the school holidays and the interrelationship of this and making work pay;
• ability to source childcare that matches parental needs and preferences - for several parents interviewed, the issue was about sourcing childcare that matched their preferences and needs. For example, one lone parent needed childcare for all three of her children aged between 3 and 15 years of age. Her preference was for a childminder but she had been unable to source one who could accommodate all her children across the part-time hours required. In the case of another lone parent, her preference was for an After School Club, but competition for places was high. There were no vacancies in the After School Club attached to the child's school, and the child had been placed on a waiting list at a neighbouring club;
• parental preferences towards different forms of childcare depending on the age range of their child - parents of older age children highlighted the need to ensure that 'childcare' was appropriate to the child's age. However, views concerning what could be deemed 'appropriate' were mixed. Some lone parents felt that their children would be reluctant to attend After School Clubs. Alternatively, another lone parent felt that activity-based After School Clubs were appealing to young people and more appropriate than a childminder. This lone parent stated that her child had been refused from an After School Club, because at age 12 he was considered 'too old'. While some lone parents' views in this area were often perceptual rather than experiential, they are important to acknowledge as barriers to uptake. In addition, some lone parents highlighted that they had found it hard to source childcare for the pre-5 age-range.

"I know that my daughter (aged 15) would never go to anything like that (childcare established for over 12s). There is no point in me looking into anything like that because if I signed her up for it, she just wouldn't go." Lone Parent

"I'd be happy for my daughter (aged 13) to go to an After School Club but I don't think she would. She'd think she was being babysat and she's far too old for that." Lone Parent

"My child was not accepted onto the After School Club because he was over 12." Lone Parent

"The kids wouldn't like it." Lone Parent

Parent Factors

5.18 The research highlights that lone parents' views towards paid employment are also affected by personal factors such as:

• low self-esteem/confidence - there was a sense that a lack of self-esteem or low confidence negatively affected lone parents' decisions to enter work:

"I've very little confidence after 14 years in the house." Lone Parent

• Jobcentre Plus advisors also highlighted that lone parents, particularly those who have been out of the labour market for some time, have a fear of going out to work. Advisors highlighted the importance of time in building a trusting relationship with parents in order to 'expose' these barriers. However, in many cases, it must be acknowledged that such fears would not be disclosed by parents;
• anticipated constraints - some lone parents expected problems to occur that would affect their confidence/willingness to enter the labour market. This included transport problems and concerns that they might have to leave work early if their child was ill:

"I haven't got a driving licence, so I can't get to work." Lone Parent

"I'm frightened I'd get the sack because the kids are always getting ill and I might have to stay at home off work." Lone Parent

• health issues - a small number of lone parents indicated that they could not (re)enter work due to long standing health problems (physical or mental):

"I have a disability so it's finding a job which I can actually do." Lone Parent

"I have had a neck injury for four years which prevents me from working." Lone Parent

• low level skills and qualifications - some lone parents indicated their employment options were limited by a lack of skills or qualifications:

"It's hard for single mothers to get back into work, especially with youngsters who have better qualifications. The only thing available seems to be skivvy work." Lone Parent

Child Factors

5.19 Two key child-related factors emerged to influence lone parents' considerations around work.

5.20 The first relates to the child's age or life stage with several lone parents highlighting that they would not wish to return to work until their child has started primary or secondary school.

5.21 The second factor relates to the presence of additional support needs with some children of lone parents requiring specialist forms of childcare. Several of the lone parents and Jobcentre Plus staff interviewed highlighted that a number of children had Attention Deficit Hyperactivity Disorder ( ADHD) or other additional support needs such as Autism. There were concerns:

• that the presence of additional support needs made it difficult for lone parents to enter work because of concerns that they may be called to the school to collect the child at short notice
• that there was little specialised childcare available that could cater for the needs of children with additional support needs.

"One of the big issues is special needs childcare as well which is very expensive to run so it's hard to get special needs childcare." Jobcentre Plus Advisor Manager

"A lot of people are coming in and their child's got this ADHD - that's going through the roof. I know because I have checked it on the system and the number of records that have come back and said that they can't take up work and it is a childcare issue because the school phones them everyday to go and collect the child because they've been misbehaving." Jobcentre Plus Advisor Manager

"My son has autism and there is no childcare available which will take him on. At times he can be very challenging. I get 6 hours a week respite care from the Autistic Society. You can't just run out and get a childminder. You need someone who knows what they're doing. I've got to be able to trust the carer." Lone Parent

Logistical Factors

5.22 A number of logistical factors also affected the demand for childcare amongst lone parents and their attitudes towards work. These included:

• transport issues - this included transport difficulties in terms of the practicalities of transporting children to differing childcare locations and in terms of lone parents travelling to work themselves:

"I intend to start a college course next year and my mum will look after my son. I have concerns about using other forms of childcare because then I would have to drop one of my children off at one place and then the other at a another location, all before I set off for my course in the morning." Lone Parent

"The After School Club [attached to child's school] is full and so I have been put on a waiting list at another school. The problem is getting my child from school to the other club." Lone Parent

"Transport to work is the main problem. I don't drive and the place I work at part-time has been relocated." Lone Parent

"There are no jobs or childcare available locally. My main problem is getting to work in other areas because there is no transport." Lone Parent

• lack of awareness of the childcare available - during the course of consultations, many lone parents cited childcare barriers that the pilot had specifically sought to overcome. For example, several parents mentioned a lack of childcare during anti-social hours or on a weekend as a barrier to employment. In both the pilot areas, childcare provision has been set up to try and address this issue. Thus in some cases, lone parents' views of the childcare available were based on perception rather than fact
• availability of ad hoc childcare to attend interviews - one lone parent highlighted that it could be difficult to source short-term childcare at short notice to enable her to attend job interviews
• level of trust and extent of contact between the lone parent and Jobcentre Plus advisor - the fact that Jobcentre Plus advisors see lone parents at different intervals, depending on the type of benefits they claim, affects the extent to which advisors can build up a relationship of trust with the lone parent. As noted above, this affects the extent to which advisors can work with lone parents to break down the barriers they face and thereby encourage take-up of the pilot:

"You tackle whatever that customer comes in with and the issues they refer to. You may not hit on an issue until you've cleared one, so you clear the obstacles as you go along. If childcare is one issue, it's all the other issues that lead into that, so you're working through things all the time. That is why it takes so long to get lone parents into work. And that has to be recognised because the lone parent advisors may be working with these people over a long period of time. Childcare might be one barrier but there might be others as well." Jobcentre Plus Advisor

• voluntary nature of the New Deal for Lone Parent ( NDLP) programme - the government's welfare to work programme for lone parents is voluntary ¹². This means even where levels of trust are established, lone parents still have a choice to decide whether or not they wish to enter work. This inevitably means that some single parents will make an informed choice not to enter work.

Managing the Transition into Work

5.23 Given the range of factors affecting decisions to work described above, the period of transition into work for lone parents can be difficult and stressful. This is because parents are often overcoming diverse and multiple obstacles simultaneously - finding childcare at the same time as finding work, overcoming fears about leaving their child in childcare at the same time as conquering fears about entering the labour market. As Jobcentre Plus stakeholders highlighted, all this takes time and requires that ongoing support is given to lone parents to build up their trust and confidence.

5.24 This might help to explain, in part, the low take-up of childcare provision newly created through the pilot, particularly as:

• lone parent interviews range in frequency - which could affect the pace at which advisors are able to build up a relationship with the lone parent to breakdown/dissect the barriers to work and inform them once new childcare provision becomes established
• awareness of the range of childcare provision available was low amongst the lone parents consulted.

Summary

5.25 The evidence presented in this section suggests that there are a number of complex and diverse challenges affecting lone parents' decisions about whether to work and thereby whether or not to use childcare. Often such challenges are interlinked, suggesting that childcare is not a barrier that can be addressed in isolation. Multiple strategies for resolution are required.

5.26 The inter-relationship between childcare and other barriers facing lone parents is explored in further detail in the following section in order to identify and establish whether there are different barriers for different 'types' of lone parents.

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