Lone parents and the welfare state: the UK in international perspective Jonathan Bradshaw, Antonia Keung and Yekaterina Chzhen Lone Parents in the UK Today Gingerbread, London 7 December 2016

The living standards of families with children are determined by Number of earners Wage rates Hours supplied Cash benefits What is taken in direct taxes What they have to pay for housing, health, education and childcare

Lone parents face constraints Difficult to work and Difficult to work full-time Type of work may be constrained Mainly female so lower earnings More reliant on formal childcare So what help do they get from welfare states? To what effect? Answered in a remorselessly comparative perspective

Questions How do countries support lone parents? Which countries provide extra financial support to lone parent families? How has the financial support for lone parent families changed since the global recession? How does the risk of poverty compare in lone parent and couple headed families with children? What part do cash transfers play in mitigating the risk of poverty and closing poverty gaps?

Sources OECD tax benefit model families. EU Statistics on Income and Living Conditions (EU-SILC)

Proportion of children under 18 in lone parent families (%) Proportion of children under 18 in lone parent families (%). Source: EU-SILC (cross-sectional micro data 2013). Child weights used. Countries ranked by percentage difference.

Components of net income lone parent plus two children on half average earnings 2014, OECD Tax/Ben

Components of net income lone parent plus two children on average earnings 2014, OECD Tax/Ben

Difference in net disposable income of a lone parent and couple with two children earning the same earnings. Countries ranked by % more or less at average earnings OECD Tax/Ben 2014

Net income of lone parent plus two at 50% average earnings as a proportion of average earnings 2014 OECD Tax/Ben

Net income (from OECD Tax/Ben) of a lone parent with two children on social assistance as a % of the EU-SILC equivalised poverty threshold

Child poverty rates for lone parents and couples (%) Child poverty rates for lone parents and couples (%). Source: EU-SILC (cross-sectional; version 2013). Base: children under 18 years old. Child weights used. Ranked by percentage difference. After transfers

Child poverty rates of lone parents before and after social transfers Child poverty rates of lone parents before and after social transfers. Source: EU-SILC (cross-sectional; version 2013). Base: children under 18 years old. Child weights used. Ranked by percentage reduction.

Child poverty gaps of lone parents before and after social transfers Child poverty gaps of lone parents before and after social transfers. EU-SILC (cross-sectional; version 2013). Base: children under 18 years old. Child weights used. Ranked by percentage reduction.

Reduction in poverty rates by reduction in poverty gaps EU-SILC 2013.

Conclusions - UK High lone parent prevalence – mainly single benefit unit Transfers very important component of income in UK Very targeted UK not more generous to lone parents than couples Has not changed much over recession – to 2014 as % average earnings Lone parent poverty higher than couple poverty – but smaller difference in UK UK transfers best of all at reducing poverty rates and gaps from very high pre transfer levels

We need to watch this space. But Lone parents’ benefit income will be cut under Universal Credit and other austerity measures. We need to watch this space. Email: jonathan.bradshaw@york.ac.uk Twitter: @profjbradshaw