Working with communities to develop enterprise

Challenges and strategies


The barriers encountered by lone parents are much the same as by other communities, but with the added challenge of childcare. Finding workable strategies to address these barriers requires the client and you to be creative and tenacious.


Income: moving from benefits to earned income
Many lone parents will be in receipt of benefits, including those who are in employment. These benefits will make a big difference to a lone parent families’ standard of living. Key benefits include Housing Benefit (HB), Council Tax Benefit (CTB), Working Tax Credits (WTC), Child Tax Credits (CTC) and Income Support (IS). Moving from benefits completely is a risky business for lone parents as the stakes are much higher. There is no sufficient or reliable way of getting back to benefit income if their business venture is not as successful as they had planned.

HB is particularly difficult to relinquish, as it can mean the difference between living on the breadline and living to a reasonable standard.

  • If your client is thinking about moving from HB, try to find out how long it would take to reapply for HB in the local area, as it varies from one area to the next. If there are likely to be significant delays, your clients will need to think through how they will manage until they get their payments. Gingerbread can advise on the amount that your client can expect in payment. The Gingerbread Advice Line is 0800 018 4318.
  • Your client’s local council will be able to advise about the HB situation and about claims in general.

For general information on HB, go to the following links:


CTC and WTC support families with children and working people on low incomes. Both of these benefits do not affect Child Benefit payments, which are paid separately.

  • CTC supports families with children and young people aged 16-19 years old. The benefit amount is based on household income. Clients do not have to be working to claim CTC.
  • WTC supports employed or self-employed working people on low incomes by topping up earnings. WTC is made up of several elements and is based on your client’s circumstances. The childcare element will pay up to 80 percent of the eligible costs of “registered” or “approved” childcare up to a maximum of £175 per week. Your client can claim WTC if she is responsible for a child or young person aged 16 and under and she works at least 16 hours per week.


Childcare Affordability Programme
A new source of financial help is now being provided through the Childcare Affordability Programme (CAP). This programme is intended for families on low and middle incomes and is set to end in 2008. The scheme will provide up to £30 a week per child additional funding to nurseries to provide up to half of their places at a lower cost. To be eligible for CAP, parents need to be receiving CTC of more £547.50 a year, or at least £45.63 per month.


Further help and advice about tax credits

  • The Tax Credits Helpline on 0845 300 3900 is open from 8am to 8pm, seven days per week.
  • HM Revenue and Customs leaflet “Help with the costs of childcare – information for parents and childcare providers” (reference WTC5).
  • www.hmrc.gov.uk and http://taxcredits.direct.gov.uk, for information, frequently asked questions and online claims.
  • Jobcentre Plus, who can provide practical support and financial advice about benefits, tax credits, childcare, training, work and looking for a job. More details from www.jobcentreplus.gov.uk.
  • New Deal for Lone Parents, which is part of Jobcentre Plus and offers specialist help for lone parents and Personal Advisers. The New Deal for Lone Parents helpline is 0800 868 868.
  • Benefits Advisers and Into Work Benefits Advisers, who can advise on tax credits as well as your client’s benefit situation. Please see the section on Benefits for more information.



Childcare – accessible, affordable, quality
Childcare is a great barrier to lone parents becoming gainfully self-employed. Being self-employed and developing a successful business requires a great deal of time and attention. For lone parents, time is a very precious commodity that can often only be created through childcare. The challenge for lone parents living on low incomes is finding good quality childcare within reasonable travelling distance. Your role is to help them find the best childcare options available to them.

Childcare options include childminders, day nurseries, out-of-school clubs and pre-school playgroups. To find out about childcare in your client’s area, contact the CIS, which is part of every local council and can be accessed through the council’s website. There are plans over the next few years to provide a local children’s centre for all children under 5 years and their families, providing childcare or links to local childcare. Details of these local children’s centres can be obtained from the CIS.

As well as finding childcare, there is the issue of paying for it. The average price for a full-time nursery place for a child under two is £152 per week in 2007. In London and the South East the price can be much higher, typically being £205 a week in inner London and £180 in the South East. According to the Daycare Trust, the average cost of full time childminding for a child under 2 years is £141 per week. Clearly, the price of childcare can be a major barrier to lone parents wishing to fulfil their business dreams. It can, in some cases, be enough to deter your client from pursuing self-employment.

Your role in working with lone parents is to factor in the costs of childcare to the total income they will need to budget for in their business plans. The cost may prove prohibitive so that they will have to shelve their business development, or it may be that the cost is not as high as they imagined.

Quick links
For details and further information on childcare, including paying for it, see the Childcare section of this resource.

Motivation: when the going gets tough….
Your clients will need to be determined, self-motivated and energetic on their journey to self-employment. They will need these qualities to achieve their dream of a business and to get through the tough times. Your lone parent clients will often be emotionally, mentally and physically drained, merely from the strain of living their lives and looking after their children. There may not be a lot left to forge ahead with their business.

See the Motivating your clients section.

Resources for lone parents