Tackling in-work poverty by supporting dual-earning families
By Reports & Resources, ,

This research reviews trends in employment among couple families with children and considers policies and the wider context in four areas likely to affect their employment rate: family leave, childcare, the labour market, and the tax and benefit system. It finds:

  •     The risk of poverty is much higher for children in couple families where only one parent works;
  •     sole earner families account for a significant minority of poor families with children.
  •     Many fathers have to work long hours, making it harder for them to get involved in family life and more difficult for mothers to work.
  • To enable more low-income families to have both partners in work.

The report recommends allowing second earners to keep more of their wages before means-tested benefits are withdrawn; more publically-funded affordable childcare; and phasing in more generous family leave, including longer paternity leave.

This research reviewed employment trends among couples with children, and examined four areas affecting their employment rate: family leave, childcare, the labour market and the tax and benefit system.

Key points

  •     The risk of poverty is greater for children in couple families with only one earner; sole-earner families comprised 30 per cent of families with children in poverty in 2011/12.
  •     Although the share of sole-earner families has fallen considerably, around a quarter of couple families with children had only one earner in 2012.
  •     Most non-working partners are mothers, with lower employment levels among mothers with pre-school children compared to those with school-age children.
  •     Enabling more mothers to work would boost household incomes and help tackle in-work poverty.
  •     Paid family leave allows parents to spend time with young children while protecting incomes, helps keep mothers in the labour market and increases fathers’ involvement in family life. However, family leave is badly paid in the UK and too short for fathers.
  •     Childcare enables parents with young children to work, particularly mothers, but remains expensive for many low-income families.
  •     Despite some improvements in the conditions of low-paid work, many mothers can only access poorly paid part-time jobs because of their childcare responsibilities.
  •     Many fathers work long hours, making it harder for them to get involved in family life and more difficult for mothers in low-income families to work.
  •     Universal Credit will raise incomes among many low-income couple families, but weaken work incentives for many second earners.
  •     To enable both partners in more low-income families to work, the study recommends: allowing second earners to keep more income before withdrawing means-tested benefits; expanding publicly funded affordable childcare; and more generous family leave, including longer paternity leave.

Background

Having both partners in work offers strong protection against poverty for couple families, even when wages are low. Although employment is expected to rise considerably over the next decade, sustained reductions in poverty among families with children will be muted unless more is done to support dual-earner families. This study considers the progress made over the last two decades in helping families to have both parents in work; it also looks at remaining barriers, and sets out the lessons for policy and wider change.