Major changes are planned to benefits for low income families - amid concerns they could hit the working poor.
Changes to Employed Person’s Allowance will mean lone parents with children over 13 will have to work almost twice as long - rising from the current 16 hours to 30 - before they are eligible to apply.
And lone parents with their youngest child aged over six will no longer be able to claim income support.
Up to 90 lone parents and 35 couples could be impacted by the changes to EPA and about a third of the 300 lone parents on income support could lose benefits.
Former children’s champion, Garff MHK Daphne Caine, said: ’This seems to be all stick and no carrots from Treasury trying to force people with children to work longer.
’Aside from the social impact of that, it doesn’t take into account issues of job availability, the cost of transport and childcare. It will hit people in the north particularly hard as there are very few job vacancies there.
’Speaking to backbench colleagues, I am aware there is a lot of concern over the proposed changes to benefits and the message it sends out about this government being a caring administration, looking after the most vulnerable in our society.’
It’s understood questions will be tabled by other MHKs ahead of the motion going before Tynwald.
Mrs Caine said the timing of the proposals was also curious, given that committees are currently investigating poverty in the island and zero hours contracts.
She said: ’If the key driver is because Treasury believes people working is better than them being on benefits and it is to help lift them out of poverty, what about introducing incentives alongside the changes perhaps including access to training, free public transport to the workplace and additional childcare payments, especially during school holidays?
’Another aspect is how this will impact on people with disabilities and also for parents with a disabled child?
Former Transport and General Workers’ Union leader Bernard Moffatt said: ’The attack on benefits flies completely in the face of what the Chief Minister said in his New Year’s message.
’Evidence from the UK shows cutting benefits leads to the poorest in society being further impacted.
’It would seem that we are entering 2019 with the same double act as the previous year The Chief Minister is "Mr Nice" and the Treasury Minister is "Mr Nasty".
’Of course targeting benefits resonates with a section of society. But let’s be clear most of these benefits are designed to assist groups often of workers whose take home income is not adequate.’
Neal Mellon of Isle of Man Foodbank questioned whether some employers would be in a position to increase hours.
He added: ’My main concern is that nobody should be left on a cliff edge. Sometimes when benefits are reviewed there can be a hiatus in payments and people are left without income. I hope that the changeover is done in a sympathetic and supportive manner.’
The minimum working requirement for EPA for lone parents with children under 13 will stay at 16 hours.
Other amendments to EPA regulations, due to go before this month’s Tynwald, will see couples being able to add together the hours they work to meet the minimum requirement to qualify for EPA.
That limit for couples irrespective of the age of their youngest child, is currently 30 hours which must be worked by either or both partners.
But under the proposals, couples will have to work a total of 35 hours between them if their youngest child is under six, 48 hours if aged between six and 13 and 60 hours if 13 or over.
Couples where one partner is severely disabled or those with disabled children will see the minimum requirement increase from 30 to 35 hours.
There will no change to the current 16 hour minimum for carers or disabled workers.
If approved, the changes will come into operation in April 2020.
But other planned changes to benefits for lone parents will come in this October and will mean they will no longer be able to claim income support if their youngest child is over six. They can currently claim if they have children under 12.
Treasury believes that lone parents whose youngest child are now in school should be taking steps to get a job.
Treasury Minister Alfred Cannan insisted: ’I’m confident we have made appropriate exemptions for carers and disabled workers and where family members are disabled.
’We are taking steps to make sure that the benefits system is appropriate for those who receive benefits and those who are paying for them.’
There are between 1,150 and 1,200 EPA claimants, two thirds of whom are lone parents and one third couples. The EPA bill is about £10m.
Examiner comment, see page 18.

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