By Richard Dunstan, Working Families Blog Editor
Last week, the Liberal Democrats issued their pre-manifesto for the May 2015 General Election. While the some 300 policy pledges in the pre-manifesto will be debated and voted on by party members at their conference in Glasgow early next month, the 80-page document provides a first opportunity to assess the likely policy pledges of one of the three main parties against our own ‘Families & Work’ manifesto, issued back in May this year.
In this context, the two most eye-catching proposals are 15 hours a week of free childcare for parents of all two-year-olds, and an increase in new fathers’ entitlement to statutory paid paternity leave, from two weeks to six weeks.
On childcare, the pre-manifesto states that the “aim [is] to make 20 hours of free childcare a week available for all parents with children aged from two to four, and all working parents from the end of paid maternity leave (nine months) to two years, by 2020” and to “start by providing 15 hours a week of free childcare to the parents of all two-year-olds” with the £800m cost to be met “by cancelling the ineffective Conservative plan to introduce a marriage allowance into the tax system, [and] then prioritise 15 hours free childcare to all working parents with children aged between nine months and two years”.
The document also pledges the Liberal Democrats to completing “the introduction of tax-free childcare, which will provide support to parents of up to £2,000 for each child and include childcare support in Universal Credit, refunding 85% of childcare costs to make sure work pays for low earners”.
This unquestionably amounts to a bold move in the childcare political bidding war, which has been hotting up in recent months. However, it still falls a long way short of the “national strategy on childcare, aimed at delivering universal access to good quality, affordable childcare within ten years” that we call for in our ‘Families & Work’ manifesto. And the pledge to continue with the tax-free childcare scheme is disappointing. In the words of Working Families helpline adviser Will Hadwen:
The tax-free childcare scheme and Universal Credit are inequitable in the way that they treat periods of work. Tax-free childcare is not means-tested, but Universal Credit is. The barriers to parents deciding which of the two to go for remain high, and it is not at all clear how or where they will get support to make that decision.
Neither the Coalition, nor now the Liberal Democrats themselves, seem to acknowledge that the conditions for each scheme may be met at different times by the same families. That is, one month Universal Credit may be the best bet for a family and then, a few months later, they would be better off with tax-free childcare. A commitment to one system of help for childcare, outside Universal Credit, would reduce complexity and increase incentives to work.
It is also deeply disappointing that the pre-manifesto contains no reference to – let alone a specific policy pledge to address – the especially harsh childcare crunch faced by parents of disabled children, the subject of a recent parliamentary inquiry.
The promise of six weeks of paid paternity leave is certainly very welcome, although it is not clear whether this ‘use-it-or-lose it’ entitlement would have to be used in the first two months after the birth. And it is disappointing that this increased leave entitlement would still be paid at the current, ludicrously low statutory rate.
All the evidence from other countries is that fathers take full advantage of paternity leave only when it is well-paid. And far too many men are not even taking their current entitlement of two weeks. Just a few months ago, the Deputy Prime Minister, Nick Clegg, noted that “a quarter of new fathers take only a week or less of paternity leave”. Those fathers won’t suddenly take more paternity leave just because more is available, if it’s paid at the same low rate as now.
In our ‘Families & Work’ manifesto, we call for paid paternity leave to be increased from two weeks to six, but “with four of the six weeks available to be taken at any point during the child’s first year”. We also call for this to be a Day One right, and for all six weeks of this leave to be paid at 90 per cent of earnings.
Elsewhere, the pre-manifesto contains welcome – if somewhat vague and strangely half-hearted – pledges to “look at ways of raising the National Minimum Wage … and improve enforcement action”, to ensure that the Living Wage is “paid by all central government departments and executive agencies from April 2016 onwards”, and to “clamp down on any [sic] abusive practices in relation to zero hours contracts”.
However, there is little other than mandatory pay audits to tackle pay inequality and sex, pregnancy and maternity discrimination in the workplace, and no mention of reforming the Coalition’s controversial employment tribunal fees. With the number of new cases down by 70%, it is now clear the fees amount to a charter for dinosaur and rogue employers, and the case for reform is overwhelming. In our ‘Families & Work’ manifesto, we suggest that the fees “must be scrapped”.
Perhaps in Glasgow next month, the party’s rank-and-file members will propel at least some of these issues into the final manifesto for May 2015.
[In forthcoming posts, we will be looking at how the likely manifesto pledges of the Conservative, Labour and other parties measure up to our ‘Families & Work’ manifesto.]