Source · Select Committees · Work and Pensions Committee

Recommendation 5

5 Rejected Paragraph: 44

We recommend the Government amend the regulations on the use of the Flexible Support Fund...

Recommendation
We recommend the Government amend the regulations on the use of the Flexible Support Fund so that receipts for payments made from the Fund can be submitted as if the parent had paid the childcare costs themselves. This would have the effect of removing, or largely offsetting the upfront cost, rather than simply pushing it in to Universal Credit and childcare costs 47 the next month. We note that there has been a substantial underspend in the FSF in every year of its operation to date which would contribute to the cost of this measure.
Government Response Summary
The government will not amend regulations on the use of the Flexible Support Fund, stating that it would not want to risk introducing a reporting system to such a granular level of detail that may drive undesirable behaviour across Jobcentres.
Paragraph Reference: 44
Government Response Rejected
HM Government Rejected
As you know, the FSF provides Work Coaches with the flexibility and discretion to make awards that enhance the employment prospects of claimants. Service leaders commit and reforecast expenditure throughout the financial year to meet local demand, re-adjusting the FSF forecast across different locations to react to local needs. Universal Credit and childcare costs: Government Response 7 In a previous response to the Work and Pensions Select Committee report in 2019, the Department committed to providing the Committee with FSF expenditure information, which includes data on upfront childcare costs, this annual statement sent to the Committee is the only routine FSF publication. The Department would not want to risk introducing a reporting system to such a granular level of detail that may drive undesirable behaviour across Jobcentres, for example to meet an expenditure target rather than meeting individual claimant need.