All 55 Parliamentary debates on 28th Jun 2023

Wed 28th Jun 2023
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Holocaust Memorial Bill: Committal
Commons Chamber

Committal (to a Select Committee)Committal to a Select Committee
Wed 28th Jun 2023
Holocaust Memorial Bill: Carry-over
Commons Chamber

Carry-over motionCarry-over Motion
Wed 28th Jun 2023
Wed 28th Jun 2023
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Wed 28th Jun 2023

House of Commons

Wednesday 28th June 2023

(1 year, 7 months ago)

Commons Chamber
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Wednesday 28 June 2023
The House met at half-past Eleven o’clock

Prayers

Wednesday 28th June 2023

(1 year, 7 months ago)

Commons Chamber
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Prayers mark the daily opening of Parliament. The occassion is used by MPs to reserve seats in the Commons Chamber with 'prayer cards'. Prayers are not televised on the official feed.

This information is provided by Parallel Parliament and does not comprise part of the offical record

[Mr Speaker in the Chair]

Oral Answers to Questions

Wednesday 28th June 2023

(1 year, 7 months ago)

Commons Chamber
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The Secretary of State was asked—
John Stevenson Portrait John Stevenson (Carlisle) (Con)
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1. What recent assessment he has made of the strength of the labour market in Scotland.

Alister Jack Portrait The Secretary of State for Scotland (Mr Alister Jack)
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I pay tribute to two great Scots who have sadly died in recent days. Winnie Ewing blazed a trail for women in politics. She was admired by colleagues from all Scotland’s parties as one of the most important politicians of her generation. Our thoughts are with her friends and family, particularly her children Fergus and Annabelle. And with Craig Brown’s passing on Monday, Scottish football lost a true legend who was held in high regard by players and fans across the country. Again, our thoughts are with his loved ones.

I am encouraged by the resilience that the Scottish labour market has shown, despite global issues still causing significant economic challenges. The latest official figures show that Scottish unemployment is close to a record low at 3.1%. I welcome that fact.

John Stevenson Portrait John Stevenson
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If we are to grow the Scottish economy as well as the national one, it is vital that we have a skilled workforce and the right level of investment. It is also important for areas such as the Borders, between Scotland and England, to have the least friction in trade and labour market conditions. Does the Secretary of State agree that politicians of all persuasions have a responsibility to ensure maximum opportunities on whichever side of the border, to ensure the least amount of friction, particularly for those looking for employment?

Alister Jack Portrait Mr Jack
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I agree. That is exactly why this Government introduced the United Kingdom Internal Market Act (2020): to protect frictionless trade across the UK. On maximising opportunities on whichever side of the border, it is a matter of some regret that Scotland is the highest taxed part of the United Kingdom.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Scottish Affairs Committee.

Pete Wishart Portrait Pete Wishart (Perth and North Perthshire) (SNP)
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The Secretary of State and I represent large, rural constituencies with large hospitality and tourism sectors. Will he therefore name one benefit that ending freedom of movement has brought to the labour market in either sector?

Alister Jack Portrait Mr Jack
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The Scottish National party likes to blame everything on Brexit, but for the past two years we have had record immigration into the United Kingdom. That is a simple fact—record numbers since immigration figures began.

David Mundell Portrait David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
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I had the pleasure and privilege of being elected to the Scottish Parliament in 1999 alongside Winnie Ewing. She was undoubtedly an iconic figure of modern Scottish politics, from the Hamilton by-election to Madame Écosse and the opening of the Scottish Parliament. I always found her to be kind and sympathetic to new Members, and she always had the best stories. May she rest in peace.

Does my right hon. Friend agree that the one thing that will reduce confidence in the Scottish labour market is the prospect of another independence referendum—real or de facto?

Alister Jack Portrait Mr Jack
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My right hon. Friend is absolutely right. Business does not like uncertainty, and the constant harping on about independence is causing uncertainty among business. The devolved Administration in Scotland should focus on the things that they were set up to do: education standards, the health service, drug deaths and getting some ferries rather than trying to create the island clearances.

Baroness Elliott of Whitburn Bay Portrait Julie Elliott (Sunderland Central) (Lab)
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2. What recent discussions he has had with Cabinet colleagues on the cost of living in Scotland.

Steven Bonnar Portrait Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
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4. What recent discussions he has had with Cabinet colleagues on the impact of cost of living increases on households in Scotland.

Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
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5. What recent discussions he has had with Cabinet colleagues on the impact of cost of living increases on households in Scotland.

Chris Stephens Portrait Chris Stephens (Glasgow South West) (SNP)
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7. What recent discussions he has had with Cabinet colleagues on the impact of cost of living increases on households in Scotland.

Vicky Foxcroft Portrait Vicky Foxcroft (Lewisham, Deptford) (Lab)
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8. What recent discussions he has had with Cabinet colleagues on the cost of living in Scotland.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
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11. What recent discussions he has had with Cabinet colleagues on the impact of cost of living increases on households in Scotland.

John Lamont Portrait The Parliamentary Under-Secretary of State for Scotland (John Lamont)
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These questions show the originality of thought among the Opposition parties. The United Kingdom Government recognise the challenges facing households due to elevated costs of living and so have taken action to protect struggling families with the largest support package in Europe. UK-wide, support to households to help with higher bills is worth £94 billion, or £3,300 per household on average.

Baroness Elliott of Whitburn Bay Portrait Julie Elliott
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Over the winter, too many have had to make the decision whether to heat or eat—in fact, too many could not afford to do either. With food inflation well in excess of 15%, and much higher on specific staple items, people simply cannot afford to eat. What advice does the Minister have for households in Scotland, and those in Sunderland who I represent, who are worried about being able to provide food for their families?

John Lamont Portrait John Lamont
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Inflation is a problem affecting many western economies, particularly those in Europe, and it is right that this Government continue to provide cost of living support while sticking to our plan to avoid adding unnecessary inflationary pressures. The average household in Scotland receives £1,850 from the UK Government, with the poorest households receiving £2,445. About £5.2 billion was spent in 2022-23, which is more than the Scottish Government’s entire annual welfare budget.

Steven Bonnar Portrait Steven Bonnar
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After 13 consecutive hikes in interest rates, the Institute for Fiscal Studies has warned that 1.4 million more householders could face a 20% fall in disposable income. This mortgage crisis started with a disastrous Tory mini-Budget last September and is adding to the cost of living crisis. Will the Minister please explain what the hell his party is doing to clean up the mess it created?

John Lamont Portrait John Lamont
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We do not accept that analysis. We recognise that this is a worrying time for homeowners and mortgage holders, but we cannot ignore the fact that interest rates have risen across western economies as a result of the pandemic and the impact of the war in Ukraine. The Government remain committed to responsible economic management to bring inflation back under control, which is the only way to achieve sustainably lower interest rates and mortgage rates.

Peter Grant Portrait Peter Grant
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It is not just homeowners who are affected by spiralling interest rates; they also contribute to an average rent increase of over 8%. The Scottish Government are doing their bit, using the limited powers they have. They have extended the rent cap and extended the evictions freeze into March, so that nobody in Scotland will be thrown out of their house because they are poor; and of course in Scotland, thanks to the Scottish National party, we are not selling off council houses but building more of them. What exactly are his Government doing to protect tenants in Scotland and to prevent an increase in homelessness?

John Lamont Portrait John Lamont
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I thank the hon. Gentleman for his question. I know he recently announced that he will be standing down at the next election, and while he and I clearly do not agree politically, his eight years of service to the people of Glenrothes is worthy of recognition.

As I said previously, tackling inflation is this Government’s priority. It is the best way to support mortgage holders and the people who rent accommodation.

Chris Stephens Portrait Chris Stephens
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Is the Minister aware of the recent YouGov survey commissioned by Feeding Britain, which shows that, in May, almost one in six adults in Scotland reported that they or someone in their household had accessed food aid in the previous three months? Does he agree that it is now time for the Government to launch a food poverty strategy? Will he support the principles outlined in my private Member’s Bill to end food bank use by 2030?

John Lamont Portrait John Lamont
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This United Kingdom Government remain absolutely committed to supporting the most vulnerable in society during these difficult times. That is evidenced by our providing support to people who need it the most: for example, over £137.5 billion to pensioners on benefits, £67.9 billion on benefits to support disabled people and people living with health conditions, and a further £114.3 billion on welfare benefits for working-age adults and children. In addition, since April, benefits and state pensions have been uprated by 10.1%. This Government are taking the action that is most required to support the people in most need, and we reject the hon. Gentleman’s analysis that we are doing nothing.

Vicky Foxcroft Portrait Vicky Foxcroft
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Under the last Labour Government, absolute child poverty levels in Scotland fell from 40% in 1997 to 20% in 2007, but that has been all but reversed. The SNP Government are not on track to meet their own goal of lowering child poverty to less than 10% by 2030—[Interruption.] SNP Members shout, but there is a reason why they do so. What steps are the UK Government taking to ensure that child poverty returns to the low levels last seen under the last Labour Government?

John Lamont Portrait John Lamont
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The hon. Lady is right to highlight the failures of the Scottish Government, and SNP Members’ reaction shows that they do not like being challenged. They shout, heckle and try to shut down any contrary argument.

As I said, this Government are absolutely committed to supporting the most vulnerable in society. We will continue to support all parts of our society—children, householders and anyone else who needs support during these cost of living pressures.

Alan Brown Portrait Alan Brown
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Last year, £4.2 billion in balancing costs was added to our energy bills. That means paying wind farm operators to turn off their turbines and at the same time paying gas operators to fire theirs up owing to grid constraints and a lack of storage. However, pumped-storage hydro schemes in Scotland could create 15,000 jobs and lower bills, so why are this Government not fighting tooth and nail to put in place contractual arrangements that would get these schemes up and running?

John Lamont Portrait John Lamont
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In relation to the cost of living—the theme of these questions—the energy price guarantee will save households £160 for the period until July, bringing the total Government support for energy bills to £1,500 for a typical household since October 2022. We are also ending the premium paid by more than 4 million UK households for prepayment meters, bringing their charges into line with those paid by comparable customers using direct debit. This Government are absolutely committed to supporting people who face cost of living pressures.

Robbie Moore Portrait Robbie Moore (Keighley) (Con)
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I know that the Prime Minister and the Government are entirely focused on helping people to deal with those pressures. However, the focus of the SNP Government seems to be elsewhere, as we saw last weekend when the First Minister announced that the next election would be entirely focused on yet another independence referendum. Does the Minister agree that that is the wrong priority for Scotland, and that Scotland’s two Governments should be working together to improve the delivery of public services and help people with the cost of living?

John Lamont Portrait John Lamont
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My hon. Friend is absolutely right. Both of Scotland’s Governments—the UK Government and the Scottish Government—should be focused on delivering better public services and supporting people with the cost of living, but instead we hear the SNP cheering about another independence referendum. This Government remain focused on delivering for the people of Scotland; I am just sad that the SNP Government in Edinburgh fail to do so.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Secretary of State.

Ian Murray Portrait Ian Murray (Edinburgh South) (Lab)
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Let me join the Secretary of State in his earlier tributes to Winnie Ewing and Craig Brown, both of whom passed away last week, and both of whom will be sadly missed. I hold Craig Brown personally responsible for moments of completely unbridled joy and total heartbreak.

Let me also wish the Secretary of State a happy birthday—a significant birthday—for next week. [Interruption.] Whoever shouted “80” from the Back Benchers is not far away from his age, so happy birthday to him.

Nearly five months ago, the Secretary of State promised to arrange a meeting for David Williamson, a Scottish terminal cancer patient, but neither his Department nor the Secretary of State for Health and Social Care has been able to do so. I wonder whether that could be sorted out as soon as possible.

Millions of people across the country are facing spiralling mortgage rates and rents. Statistics released by Citizens Advice Scotland this week show that the number of Scottish mortgage holders searching for advice on repossession is up by 341%. Does the Minister agree with the insightful advice from the Prime Minister that worried mortgage payers hit by a Tory mortgage premium should just “hold their nerve”?

John Lamont Portrait John Lamont
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I can confirm that the Scotland Office did write to the Department for Health and Social Care about the case of David Williamson, and I will undertake to ensure that we pursue that.

As for mortgage rates, the Government recognise that this is a very concerning time for homeowners and mortgage holders, but we cannot ignore the fact that interest rates have risen across western economies as a result of the pandemic and the impact of the war in Ukraine. Of course, the Bank of England sets the base rate, which has an effect on mortgage pricing—as the hon. Member will recall, it was the Labour Government who made the Bank independent of Government. As he will also know, last week the Chancellor agreed with mortgage lenders a brand-new mortgage charter, which will hopefully provide some protection and reassurance for mortgage holders.

Ian Murray Portrait Ian Murray
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The Scotland Office is saying that Scottish mortgage holders should just “hold their nerve”. What the Minister did not include in his list of excuses was the fact that the Tories actually crashed the economy, which has resulted in some of these mortgage interest rates. Is it not incredible that during the worst cost of living crisis in living memory the Prime Minister’s entire approach is to tell people to hold their nerve, while the approach of the First Minister in Scotland is to launch proposals for a de facto referendum and a written constitution—something that he himself admits Scottish voters do not want? Scotland has two Governments so out of touch with the priorities of the Scottish people that polling shows that 70% think they are doing little to help with the cost of living. Does the Minister agree that what Scots need and deserve is a UK Labour Government focused solely on delivering the priorities of Scottish voters?

John Lamont Portrait John Lamont
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This UK Government are very clear that now is not the time for another independence referendum, but the Labour party so often ends up backing SNP policy after SNP policy in Scotland. As we are approaching the summer holidays, perhaps the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) should take his flip-flops and see whether there is space in the SNP’s camper van.

Lindsay Hoyle Portrait Mr Speaker
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We now come to the SNP spokesperson.

Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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I thank the Secretary of State for his kind words about Winnie Ewing and Craig Brown. Let me pay my own personal tribute to Winnie Ewing, who was such an icon for our party and, almost uniquely, served in three Parliaments—our own Madame Écosse.

At over 19%, food inflation in the UK is 50% higher than among our EU neighbours, yet both the Government and the Labour party seem to be in complete denial about Brexit’s contribution to this cost of eating crisis. With 28% of the UK’s food coming from Europe, how will the UK Government prevent a new surge in food prices next winter, when extra post-Brexit checks are introduced at the border?

John Lamont Portrait John Lamont
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As the Chancellor has said, food price inflation has been a problem in many parts of Europe. In Germany, Sweden, Portugal and Poland, food price inflation is around 20%, so this is not a UK-only problem. The Government are doing everything they can to deal with Putin’s invasion of Ukraine and the aftermath of the pandemic. We have one central focus, which is bringing inflation down. We are ensuring that is this Government’s one priority.

Philippa Whitford Portrait Dr Whitford
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The London School of Economics has shown that a third of food inflation in the UK is due to Brexit. With the loss of freedom of movement and European workers, Brexit has also caused £60 million of Scottish fruit and veg to rot in the fields, threatening farms and further increasing the cost even of domestic produce. As a Brexiteer, should the Secretary of State not apologise to the Scottish public, including his own constituents, for driving up food prices, and maybe explain why he still supports the proven liar who was one of its main architects?

John Lamont Portrait John Lamont
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We do not accept the SNP’s analysis. As I have already explained, food inflation is an issue in many parts of Europe. It is a bit rich for an SNP Member to bring up food price inflation and rising costs, especially when leaked papers this morning revealed that SNP Ministers in Edinburgh are discussing raising council tax by up to 22.5%, meaning that some people will end up paying £751 more per year. Under the SNP in Scotland, local government funding has been gutted, forcing councils to slash local services and impose large tax hikes. I will take no lessons from the hon. Member about bringing prices down for households in Scotland.

Christian Wakeford Portrait Christian Wakeford (Bury South) (Lab)
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3. What assessment he has made of the potential implications for his Department’s policies on strengthening the Union of allegations of standards of impropriety in public life.

Alister Jack Portrait The Secretary of State for Scotland (Mr Alister Jack)
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The United Kingdom is the most successful political and economic union in the world—the foundation on which all our businesses and citizens are able to thrive. When we work collaboratively as one United Kingdom, we are safer, stronger and more prosperous; we are better able to draw on the institutions that unite us, such as the health service, the armed forces and our world-class education system; and we are better able to respond to challenges, such as supporting families with the cost of living and leading the international response to Russia’s illegal war in Ukraine.

Christian Wakeford Portrait Christian Wakeford
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Does the Secretary of State think that the former Prime Minister, who was fined by the police and subsequently found to have knowingly lied to the late Queen, this House and therefore the public, strengthened or weakened the Union?

Alister Jack Portrait Mr Jack
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The Union has never been stronger, and this Prime Minister has said that those in public life should aspire to the highest standards of propriety.

David Duguid Portrait David Duguid (Banff and Buchan) (Con)
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I think we can all agree about the importance of politicians telling the truth. In that context, has my right hon. Friend seen the video released by the Scottish Government in which Cabinet Secretary Angus Robertson makes a range of spurious claims about devolution being under attack by the UK Government? If so, what does he think of it?

Alister Jack Portrait Mr Jack
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I did see Angus Robertson’s video clip, and I think I counted 16 false claims in the space of one minute and 40 seconds. That is a false claim every six seconds—pretty impressive, even by his standards. As usual, the nationalists are desperate to invent a grievance, but the reality is that the UK Government respect devolution, support it and strengthen it. The only people who want to destroy devolution are the ones who want to rip us out of the United Kingdom.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Chris Elmore Portrait Chris Elmore (Ogmore) (Lab)
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The Privileges Committee’s conclusions are crystal clear that the former Prime Minister knowingly misled this House and subsequently tried to intimidate the very Committee carrying out the inquiry he set up. Why did the Secretary of State not set an example and vote for the Privileges Committee’s report?

Alister Jack Portrait Mr Jack
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As I said to the media when this question was raised in an interview last week, it was simply because I felt the report was too excessive in its conclusions.

Alexander Stafford Portrait Alexander Stafford (Rother Valley) (Con)
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6. What recent discussions he has had with Cabinet colleagues on support for the energy industry in Scotland.

Alister Jack Portrait The Secretary of State for Scotland (Mr Alister Jack)
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Scotland’s energy industry is vital to supporting the UK’s energy security. This Government have listened to Scotland’s energy industry, and we understand the need to encourage industry investment. That is why we recently announced the energy security investment mechanism, which will remove the energy profits levy if oil and gas prices fall to normal levels for a sustained period prior to March 2028.

Alexander Stafford Portrait Alexander Stafford
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It is great to hear a cheer for the Secretary of State as he stood up. I am sure he agrees that hydrogen production will be vital to meeting both the UK’s energy needs and our net zero targets. Will he set out what the UK Government are doing to promote the development and production of hydrogen in Scotland?

Alister Jack Portrait Mr Jack
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Low-carbon hydrogen is critical to delivering energy security. It presents a significant growth opportunity and will help the UK to reach net zero. We have doubled our ambition to 10 GW of low-carbon hydrogen production capacity by 2030, and at least half of it will come from electrolytic hydrogen, drawing on the scale up of UK offshore wind, other renewables and, of course, new nuclear.

Lord McCabe Portrait Steve McCabe (Birmingham, Selly Oak) (Lab)
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Will the discussions with the Scottish Government also include the problems with national grid transmission, which means National Grid is paying to turn off wind turbines because it cannot afford to get the electricity they generate to the south of the country?

Alister Jack Portrait Mr Jack
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By law, transmission network charging is a matter for Ofgem, which is an independent regulator. It has recently produced a report on charging reforms, and the Government are looking at that report.

Selaine Saxby Portrait Selaine Saxby (North Devon) (Con)
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9. Whether his Department has had recent discussions with the Scottish Government on supporting productive forestry planting in Scotland.

Alister Jack Portrait The Secretary of State for Scotland (Mr Alister Jack)
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Although forestry is a devolved policy, we continue to work with the devolved Administrations to deliver a UK-wide step change in tree planting and establishment.

Selaine Saxby Portrait Selaine Saxby
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Last year, 50% of forestry planting was much-needed productive forestry for our construction and manufacturing industries. Does my right hon. Friend agree that there should now be a new UK-wide target that aims for 60% of new planting to be productive, allowing Scotland to lead the way for the rest of the UK?

Alister Jack Portrait Mr Jack
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My hon. Friend is a champion for this industry, and it is the UK Government’s ambition to increase planting across the United Kingdom. I know she is keen for productive forestry to be used to support the construction and manufacturing industries, which is also the Government’s ambition.

Dave Doogan Portrait Dave Doogan (Angus) (SNP)
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Scotland, as in so much else, leads the way on forestry and tree planting, at 10,000 hectares, fully three quarters of all tree planting across these islands. Can the Secretary of State instruct the House on how, around the Cabinet table, he has championed Scotland’s progress in this area, or is he too cowering?

Alister Jack Portrait Mr Jack
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Not only do I champion it, I plant trees myself.

Wendy Chamberlain Portrait Wendy Chamberlain (North East Fife) (LD)
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10. What discussions he has had with Cabinet colleagues on trends in the level of child poverty in Scotland.

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
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14. What discussions he has had with Cabinet colleagues on trends in the level of child poverty in Scotland.

John Lamont Portrait The Parliamentary Under-Secretary of State for Scotland (John Lamont)
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This Government are committed to tackling child poverty and protecting the most vulnerable in society. In the recent Budget, the Chancellor announced additional support measures for households and families across Scotland and, indeed, across all parts of the United Kingdom. A further example of support for families was announced earlier today, with the UK Government making childcare more affordable.

Wendy Chamberlain Portrait Wendy Chamberlain
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Almost 90,000 food parcels were given to children in Scotland last year, and the Trussell Trust’s “Hunger in Scotland” report shows that single parents make up only 2% of the population but 17% of those who have gone hungry. This is about insufficiency of income. The adult rate of benefits should be restored to single parents under the age of 25 on universal credit, which would be a practical way for the UK Government to support them. Does the Minister agree?

John Lamont Portrait John Lamont
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I recognise the work that the hon. Lady undertakes with the all-party group on food banks. The Government are protecting the most vulnerable, with a £94 billion support package for households, and we have helped nearly 2 million people out of absolute poverty, after housing costs, since 2010.

Christine Jardine Portrait Christine Jardine
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My constituency is not among the poorest in Scotland, but we already have one in 10 children there—in some areas, one in three—living in poverty, with two thirds of them in working families. With the soaring food prices, sky-high mortgage rates and Edinburgh having the highest increase in annual rents in the UK, families are struggling. We know that our Scottish Government are only interested in independence, so will the Minister tell me what the UK Government are going to do for those families?

John Lamont Portrait John Lamont
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The Government recognise the anxiety that people feel about rising mortgages, which is why the Prime Minister’s priority is to halve inflation this year. That is the single best way we can keep costs and interest rates down for people, and we have a clear plan to deliver that. The Chancellor also met mortgage lenders last week and has agreed a mortgage charter, covering 75% of the market. We hope that that will provide reassurance to mortgage holders and others affected by this.

Speaker’s Statement

Wednesday 28th June 2023

(1 year, 7 months ago)

Commons Chamber
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12:00
Lindsay Hoyle Portrait Mr Speaker
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Before we come to Prime Minister’s questions, I am sure the whole House will wish to join me in paying tribute to John Angeli OBE, Director of Parliamentary Broadcasting, who is leaving the House service at the end of this week. During his 12 years as director, John not only oversaw the expansion of live video coverage to all public proceedings, but delivered the hybrid capability which enabled Parliament to function during lockdown and, of course, made history with President Zelensky being beamed into this Chamber. He has more recently brought live subtitling and British Sign Language to our proceedings. I am sure I speak on behalf of the whole House in thanking John and wishing him all the best for the future. [Hon. Members: “Hear, hear!”]

Water Industry: Financial Resilience

Wednesday 28th June 2023

(1 year, 7 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

12:34
Jim McMahon Portrait Jim McMahon (Oldham West and Royton) (Lab/Co-op)
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(Urgent Question): To ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the financial resilience of the water industry.

Rebecca Pow Portrait The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Rebecca Pow)
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Water is what makes life possible on our planet, and it is essential for our health and wellbeing, as well as for our economy, including the production of food and clean energy. The Government are taking significant steps to ensure that the water industry is delivering the outcomes that bill payers expect and deserve. Water companies have invested £190 billion since privatisation in 1989. In April, the Government published the plan for water, bringing together more investment, stronger regulation and tougher enforcement capacity for regulators in relation to those who pollute.

Ofwat and the Government take the financial resilience of the water sector very seriously. Ofwat is the independent economic regulator for the water sector and has responsibility for its financial resilience. The sector as a whole is financially resilient. Ofwat continues to monitor the financial position of all the key water and waste water companies. Ofwat reports annually on the sector’s financial resilience, and Ofwat’s latest annual monitoring financial resilience report shows that the water sector is financially resilient.

Market confidence in the sector is demonstrated by new acquisitions, such as Pennon’s purchase of Bristol Water, and by shareholders being willing to inject new capital. Ofwat has taken steps in recent years to strengthen the sector’s position. That includes action to update the ringfencing provisions in water company licences to better safeguard the interests of customers, and barring water companies from making payouts to shareholders and removing money or assets from the business if they lose their investment grade credit rating. Ofwat has outlined that water companies must be transparent about how executive pay and dividends align to the delivery of services to customers, including environmental performance. Since privatisation, total capital investment has outstripped dividends by 250%.

On 20 March 2023, Ofwat announced new powers that will enable it to take enforcement action against water companies that do not link dividend payments to performance for both customers and the environment. In December 2022, Ofwat strengthened its powers on executive pay awards by setting out that shareholders, and not customers, will fund pay awards where companies do not demonstrate that their decisions or pay awards reflect overall performance. We support Ofwat’s work, and we urge all water companies to take this opportunity to review their policies.

The scale of Government commitment to the water industry is highlighted by the integrated plan for water, and by our commitment to the financial resilience of the sector in delivering for customers and the environment.

Jim McMahon Portrait Jim McMahon
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Thank you, Mr Speaker, for granting the urgent question, but it is a concern that the Secretary of State did not proactively make a statement to the House on an issue of such importance. Indeed, where is the Secretary of State? One of the largest water companies in Britain is potentially going to go to the wall, and the Secretary of State is missing in action.

It was clear to anyone looking on that a culture that allowed vital investment in ending the sewage scandal and tackling water leaks to be sacrificed in favour of a goldrush for shareholders was never sustainable. Just last year, as raw human sewage was being pumped out across the country, £1.4 billion was paid out to shareholders. Now, all that was warned about is coming to pass: leaks are leading to water shortages; sewage dumping pollutes our rivers, lakes and seas; and the only thing on the up is debt, at £60 billion. The Conservative party’s cycle of privatising profit, usually for multibillion-pound foreign sovereign wealth funds, and nationalising risk is not sustainable, and neither is it a fair deal for working people.

The news we are seeing is the result of the Conservative party’s failed “profit above public interest” experiment, in which it handed over the water industry at a knock-down price to private enterprise, together with the entire infrastructure serving the nation. That was almost unique to water. For instance, when rail was privatised, the tracks were not sold off. With water, however, the lot was handed over, with few safeguards for our national interest, our national security or bill payers.

When was the Minister’s Department first made aware of the financial situation at Thames Water? Has her Department had any reason to believe that those responsible at Thames Water would not be able to meet their licence conditions or legal obligations? If this means a taxpayer-funded bail-out, how much will that cost and how will it be paid for? What assessment has she made of the liability of UK pension funds that are invested in Thames Water, and in other water companies considered to be at risk? Given where we are, will she confirm her confidence in the financial regulator? Finally, given what we see with Thames Water today, does she have concerns about any other water companies, or does she consider this to be an isolated case?

Rebecca Pow Portrait Rebecca Pow
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In the Department for Environment, Food and Rural Affairs, we have our individual portfolios, and I am the water Minister. The Secretary of State has full confidence in her Ministers when sending them to the Dispatch Box.

The shadow Minister raised the issue of debt. For information, debt to equity fell last year by 4% in the water industry, actually making it more resilient. Since privatisation, capital investment in the water industry has been 84% higher than it was pre-privatisation—we need to get that out there and on the table.

In terms of Thames Water, it is not for me to comment on the individual financial position of a water company. We have an independent regulator that is doing that; indeed, that is what the regulator, Ofwat, is for. Water companies are commercial entities, and it is for the company and its investors to resolve any issues. The Government, of course, are confident that Ofwat, as the economic regulator of the water industry, is working closely with any company that is facing financial stress.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Select Committee.

Robert Goodwill Portrait Sir Robert Goodwill (Scarborough and Whitby) (Con)
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Sewage treatment plants are all too often overwhelmed at times of heavy rain. As well as installing stormwater tanks, such as the new 4 million litre stormwater tank in Scarborough, does the Minister agree that we should do more to encourage homeowners to harvest grey water, which can buffer the effects of heavy rain, and use that for such things as flushing the toilet?

Rebecca Pow Portrait Rebecca Pow
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I thank my right hon. Friend for broadening the scope of the debate. We are in discussions with the Department for Levelling Up, Housing and Communities—many of these issues involve working with other Departments—on grey water harvesting and better using the rain that does fall. A farmer in Devon whom I visited was collecting all the water from his farm buildings roofs to supply his animals.

Stephen Timms Portrait Sir Stephen Timms (East Ham) (Lab)
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In assessing, as the Minister has explained, the resilience of the water industry, what assessment is she making of the impact on UK pension funds if a major company such as Thames Water fails, as is being widely suggested in the press?

Rebecca Pow Portrait Rebecca Pow
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There is a structure and a process for working through this matter. It is up to the individual water companies and the regulator working with them to ensure that they are resilient. That is why Ofwat reports annually on how resilient each water company is. If that flags any issues, Ofwat works closely with them, because we need our water companies to be fully functioning. We need to attract investment—a huge sum of money has been invested since privatisation, as I mentioned earlier—in infrastructure to give our customers the kind of service they deserve. We should also be mindful that it is not all piled on to customers; we have to share the load.

Robbie Moore Portrait Robbie Moore (Keighley) (Con)
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It is worth making the House realise that it was the Opposition who voted against the Environment Act 2021, which gave Ofwat more powers. Can my hon. Friend assure me that the water regulator Ofwat will be able to clamp down on excessive cash payouts and ensure that water companies put their customers first?

Rebecca Pow Portrait Rebecca Pow
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I thank my hon. Friend for pointing that out. He is absolutely right: whatever the Opposition say today, one of the measures they did not vote for in the Environment Act 2021 was to enable Ofwat to hold water companies to account where they do not demonstrate a link between dividends and performance. They must have sound performance and be performing for their customers, otherwise they cannot pay out their dividends.

Karen Buck Portrait Ms Karen Buck (Westminster North) (Lab)
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The staggering complacency we are hearing from the Minister will come as no comfort to my constituents who were flooded out three years ago in the west London floods, which were the second 100-year event in less than a decade. If Ofwat has been doing such a good job in holding the water companies to account, as she is now apparently telling us, why are we in this situation? What exactly has Ofwat been doing?

Rebecca Pow Portrait Rebecca Pow
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It has to be remembered that privatisation occurred in 1989. We have had a succession of different Governments during that time, and it has been this Government who have accelerated clamping down on water companies and opening up transparency. The hon. Lady asks what Ofwat has done, and I will name just a few things. Since 2020, Ofwat has updated the licences so that if a water company loses its investment credit rating, it is barred from making payouts to shareholders. In July 2022, it set out additional proposals to increase financial resilience, including companies having a stronger credit rating. In March, it announced that it would take enforcement actions against water companies that do not link dividend payments to performance. We have done more than any Government before to ensure that we have a fully functioning, strong regulator.

Philip Dunne Portrait Philip Dunne (Ludlow) (Con)
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On financial resilience, has the Minister taken the opportunity to consider the hotchpotch of policies coming from Opposition Front Benchers on the subject? Under their prescription, they would seek to take all the profit of water companies to invest in capital expenditure. That would undermine the financial resilience of those companies that rely on private capital for investment in tackling this problem. In the one part of the country where Labour does have responsibility—Wales—has she noticed that the sewerage overflows are almost double the rate per overflow pipe as in England?

Rebecca Pow Portrait Rebecca Pow
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I thank my right hon. Friend for pointing that out; I cannot support more strongly what he said. We have a private system, and Ofwat says that it is financially resilient. We need investment in these companies to make them function properly. Obviously, we need to hold the companies to account, but we need to see enormous investment. Everything in the Government’s plan for water, including the storm overflow discharge reduction plan, is fully costed. We are not pulling the wool over people's eyes; we are telling them clearly what this will mean and how it will deliver the water services that we need.

Lord Cryer Portrait John Cryer (Leyton and Wanstead) (Lab)
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Thames Water, which is on the verge of going under, provides a quarter of the population with their water supply. When was the Minister told about its financial plight? What is the plan if the worst comes to the worst and it does go under?

Rebecca Pow Portrait Rebecca Pow
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The hon. Member is right that Thames Water supplies an enormous part of our population. Ofwat has been working closely with Thames Water, as it does all water companies, and the Government work with Ofwat, giving it our strategic policy statement on what its priorities will be. Overall, the water companies are considered resilient, and much work is going on behind the scenes with Thames Water to ensure that customers will not be affected. If necessary, there is a process in place to move us to the next stage.

Robert Buckland Portrait Sir Robert Buckland (South Swindon) (Con)
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Swindon residents will be concerned about the future of Thames Water, so I ask my hon. Friend please to keep me and colleagues updated on any issues relating to that. Underlying this issue, Labour’s model will clearly never work—we must understand that only the private sector will be able to invest. [Interruption.] Labour Members bleat now, but they did nothing about it when they were in government. Is the point not that where we have in effect a private monopoly, the regulator must be as effective as possible? Will my hon. Friend do everything possible to ensure that Ofwat is working in the full interests of customers? Aspects of its operation do not seem to pass that test.

Rebecca Pow Portrait Rebecca Pow
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I thank my right hon. and learned Friend. Thames Water is a big water company that delivers on a wide scale. Ofwat is working very closely with the company on its plans, which will be looked over and submitted, and accounts will be submitted in due course, so that we have a resilient pathway. Customers, including his constituents, should rest assured that both their water and wastewater supplies will be protected.

Clive Efford Portrait Clive Efford (Eltham) (Lab)
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This privatised industry knows that, at the end of the day, the banker of last resort is the British taxpayer. That is exactly where we are with Thames Water, which has been taking profits for the last 35 years and not investing for the future. Regardless of what went on before, we must have investment in what is in front of the industry, but Thames Water has failed to plan ahead. It has taken money but not done the job expected of it while being in charge of such an essential public service. What will the Government do to protect consumers and ensure that we plan ahead for the industry?

Rebecca Pow Portrait Rebecca Pow
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Ofwat is the independent regulator and, as the hon. Member will know, the Government direct it through the strategic policy statement. It is Ofwat’s job to ensure that in the price review, when the water companies submit their plans—they are going over the draft plans now—they demonstrate that they will deliver on the Government’s targets on storm overflows, leakage and demand reduction. It is for Ofwat to ensure that companies will be resilient in delivering that infrastructure. There is a firm structure in place. Ofwat also constantly monitors companies’ gearing—debt-to-equity—levels, and the Government are confident that the regulator is taking reasonable measures to challenge companies to reduce those gearing levels where appropriate.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
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About a quarter of the country’s economic output is in sectors under regulators, including the water industry. With Ofwat and in other sectors with Ofgem and the Financial Conduct Authority, we have seen regulators not performing to the standards that the public, or indeed industry, would expect. If we are honest, we in this House and in Parliament do not have the toolkit to assess regulators’ performance on a systemic basis year in, year out. Will my hon. Friend work with ministerial colleagues to see whether we can improve the regular oversight of regulators such as Ofwat so that we can take a more rounded view on such issues, rather than have them come through urgent questions as brought by the Opposition?

Rebecca Pow Portrait Rebecca Pow
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I thank my hon. Friend for that. It is essential that we have fully functioning regulators. Since the Government came to power, Ofwat has done an enormous amount to streamline what it does, improve transparency, change licences and make changes so that dividends are not paid if any environmental damage is being caused. The Government have directed that through the strategic policy statement. Indeed, our targets will ensure that the regulator enables the water companies to put the right measures in place. He is right, however, that one should never be complacent, and if things need to be improved through the regulators, they should happen. But I assure him that a big effort is being made.

Seema Malhotra Portrait Seema Malhotra (Feltham and Heston) (Lab/Co-op)
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Many of my constituents are hugely worried about reports of Thames Water being on the brink and what that could mean for their bills. Thames Water has been managed appallingly: leaks have not been dealt with, sewage has been continually dumped and the former chief executive officer Sarah Bentley needed to be asked to forgo her bonus. All the while, the Government have been missing in action. Why are the Government yet again running to catch up—nothing in the Minister’s statement gives confidence that they have a grip—with our constituents paying the price?

Rebecca Pow Portrait Rebecca Pow
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Where water companies underperform and do not meet their targets, a process is in place whereby basically they have to credit the money back to their customers. Last year, £143 million was credited back in that respect. So the regulator does have the tools to do that. It has tightened up so many of its measures, all of which will affect all the water companies.

Robert Courts Portrait Robert Courts (Witney) (Con)
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The Minister will not be able to comment on Thames Water’s finances in detail, but can she assure my constituents, who will be really worried, that, whatever happens, their day-to-day services will be protected and the much-needed upgrades will still be delivered?

Rebecca Pow Portrait Rebecca Pow
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I thank my hon. Friend for that. He is right that customers come first, and Thames Water customers will be assured their water supplies and wastewater services. I am happy to meet him to discuss that.

Munira Wilson Portrait Munira Wilson (Twickenham) (LD)
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Residents in Twickenham, Teddington and the Hamptons will be extremely worried to hear that Thames Water is on the brink of collapse, but they are also fed up to the back teeth with this company. Not only does it pump sewage into our precious River Thames, but recently we have seen sewage flooding our streets at times of flooding from rainfall, and there are now plans to pump treated sewage into the Thames at times of drought. That is indicative of the company’s underinvestment in fixing leaks and being stripped to the bare bones while lining executives’ pockets. All the while, the Government have been missing in action and the regulator has failed. Will the Minister back the Liberal Democrats’ proposals to reform water companies into public good companies, transforming their boards and priorities in the interests of the environment and consumers?

Rebecca Pow Portrait Rebecca Pow
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I will highlight the Thames super-sewer—it will be ready to open in the not-too-distant future—which is a tremendous project for the people of London, including many of her constituents. We have a privatised system, whose financial resilience, as I have reported, has increased rather than decreased in the last year. These companies attract money from investors so that we can get what we need. The Government have costed plans. The Liberal Democrats have no costed plans for what they suggest they might do with the water companies, nor plans for where the money will come from.

Duncan Baker Portrait Duncan Baker (North Norfolk) (Con)
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It is worth pointing out to Opposition parties that 93% of all UK coastal bathing waters meet good or excellent conditions. In North Norfolk we have lost three blue flag beaches, which went from excellent to good. But guess what? There is not a single reason why they lost that flag. Under the Environment Agency’s marking, it looks like it is down to not combined sewage overflows but entirely natural phenomena. Could the Minister help me get my blue flags back and hold the Environment Agency to task, to ensure that it has a proper testing regime that transparently shows that we have excellent bathing water quality all over North Norfolk?

Rebecca Pow Portrait Rebecca Pow
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I thank my hon. Friend for raising the issue of bathing water quality. Since privatisation we have virtually the best quality water coming out of our taps of almost anywhere in the world. We also have phenomenal results for our bathing water areas—93% are classed as good or excellent. He has concerns about his area, but I hope those beaches will soon be back up to blue flag status. The Environment Agency works closely on individual cases where concerns have been highlighted. I am happy to put him in touch with the Environment Agency or work with him to find out what those individual cases were, so that we can get those beaches back up to the fantastic standard that they deserve.

Andy Slaughter Portrait Andy Slaughter (Hammersmith) (Lab)
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Today, not for the first time, most of my constituents have little or no water supply. Two years ago, not for the first time, hundreds of my constituents had their homes flooded with raw sewage. Year after year, Thames Water has failed its customers while obscenely rewarding its management and shareholders. No one will miss the asset strippers at Thames Water if it goes under. All we want is working infrastructure and good customer service at a reasonable cost. Is that too much to ask?

Rebecca Pow Portrait Rebecca Pow
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That is what we want for all our customers. That is why we have launched our plan for water to pull everything together to ensure that we deal with any pollution incidents, water supply issues and the future of the water industry. It is why we have set our targets and produced our storm sewage overflow plan, and why the water companies will have to spend £56 billion on capital investment by 2050 to address that. Every water company, including Thames Water, has to make an action plan for each of its storm sewage overflows. Thames Water will do that.

Angela Eagle Portrait Dame Angela Eagle (Wallasey) (Lab)
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When they were privatised, water companies had all the debt written off, so they started with zero. Since then, they have borrowed £53 billion, much of which has been used to help pay £72 billion in dividends. The investment has been made by borrowing and putting it on to customers’ bills. Now, the ratings agency S&P has negative outlooks for two thirds of the UK water companies it rates, because they are over-leveraged and took out too much debt in an era of low interest, which they now have to pay back. This is not a triumph but a huge problem for the resilience of our water industry. What will the Minister do when water companies start falling over?

Rebecca Pow Portrait Rebecca Pow
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For information, Thames Water itself has not paid any dividends for the last six years. Ofwat will rightly hold companies to account when they do not clearly demonstrate the link between dividends and performance. We made that possible through the landmark Environment Act.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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I want to bring the Minister back to the figures we have just heard. Water companies had no debt when they were privatised. Since then, they have borrowed £53 billion, and much of that has been used to help pay £72 billion in dividends. Meanwhile, we have an appalling sewage scandal, particularly in the south-east of England. The failing company Southern Water, which my constituents have no choice but to rely on, is considering raising bills by £279 per year by 2030, largely to pay for the investment that it should have been making in previous years. Does that not show that the privatisation of water was a serious mistake that needs to be permanently rectified?

Rebecca Pow Portrait Rebecca Pow
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Privatisation has enabled clean and plentiful water to come out of our taps. It has unlocked £190 billion of funding to invest in the industry. That is the equivalent of £5 billion annually, and is double what we had pre-privatisation. I am not saying that there is not still a lot of scope for improvement. I have stood at this Dispatch Box many times, as has the Secretary of State, to say that some actions of water companies are completely unacceptable. That is why we have introduced the storm overflow plan and our plan for water.

Khalid Mahmood Portrait Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)
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As two Members have said, funding and loans to the water companies are a huge issue, as that is where they have paid their dividends from. On shareholders, we have foreign investors taking huge amounts of money away from this country, and we need better fund managers who are able to assess where they put their money. They should be held accountable, too.

Ofwat has not been doing what it is supposed to do. I believe that the chief executive of Ofwat applied for a job at Thames Water. That shows what the companies are doing and how Ofwat works with them—rather than scrutinising them, people are looking for the next job. We have to stop that and stop my constituents paying more for water. They need decent water in their homes and in the environment around them. That is what we want the Government to ensure. This Tory policy has failed for years.

Rebecca Pow Portrait Rebecca Pow
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I am not sure what the question was. We want the same things: value for customers, and clean and plentiful water. We want to hold the water companies to account. We want them to invest the money needed to deliver the right services. That is why we have a plan for water, our targets and the measures in the Environment Act. It is why the regulator Ofwat has taken all the actions I mentioned to increase the transparency of water companies and to ensure that money is not being paid out if there is any environmental impact or performance negativity.

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
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In the last year, a number of my constituents on the Westfield estate have had their homes and gardens flooded with raw sewage. Yorkshire Water accepts that it is its sewage, but does not accept responsibility to help with the clean-up. Will the Minister look at the legal position to ensure that water companies are held accountable? In the meantime, we should put pressure on Yorkshire Water and others to pay for the clean-up that my constituents are having to fund themselves.

Rebecca Pow Portrait Rebecca Pow
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The hon. Gentleman will know that we have put huge pressure on the water companies, which now have to invest £56 billion in infrastructure to deal with sewage issues. If he wants to meet me to talk about that issue, I will be happy to.

Dan Jarvis Portrait Dan Jarvis (Barnsley Central) (Lab)
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Back in January I asked the water Minister whether she thought that the current system of regulation was fit for purpose, and she said yes. I ask her again: does she still think that it is?

Rebecca Long Bailey Portrait Rebecca Long Bailey (Salford and Eccles) (Lab)
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Water companies were sold with no debt when they were privatised in 1989. In fact, they were given a £1.5 billion green dowry by the Government. Since then, they have taken on borrowing of £60.6 billion, diverting income from customer bills to paying dividends and interest payments. As a result, water bills have increased by upwards of 40% in real terms. Does the Minister honestly think that consumers hail privatisation as a success?

Rebecca Pow Portrait Rebecca Pow
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Ultimately, the customers pay for investment in the industry, but over a very long period, as the hon. Lady will know. If a company did not pay out dividends it would struggle to get access to finance to fund future investment. That would limit the level of investment and have an impact on future customers. Companies have to pay up front for a lot of that investment, because they need to secure a large amount of funding to pay for it. To avoid customer bills increasing drastically to pay for that, companies have to secure the money by raising debt or equity. She knows how it works. The regulator has to ensure that that system is fully functioning, the water companies are resilient and we have all the resilient water supply that we require.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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It has been reported that the companies are drawing up their business plans for 2025 to 2030 and that, on average, they are looking at a 25% increase in bills. Given what we have heard today, would billpayers in my constituency not think that rather than paying extra to water companies, they may as well just flush their money down the drain for all the good it will do to improve water quality, services and investment in infrastructure?

Rebecca Pow Portrait Rebecca Pow
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All those plans are being assessed right now. The draft plans go to Ofwat, where they are analysed with a fine-toothed comb. All the things I have mentioned today will be scrutinised, so that we can deliver the infrastructure that is needed and have the clean and plentiful water supplies we require as well as a clean and healthy environment, with no undue impact on customer bills. All those things have to be taken into account to deliver the water supplies that the people we meet and the people we serve deserve.

Mick Whitley Portrait Mick Whitley (Birkenhead) (Lab)
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The British public should not be asked to cover the cost of failures by the water monopolies and their shareholders. They have borrowed extensively to pay dividends while failing to make necessary investments in infrastructure and resilience. Does the Minister agree that if the Government are compelled to take Thames Water into public ownership, it should stay in public hands?

Rebecca Pow Portrait Rebecca Pow
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I am not aware of the situation the hon. Gentleman is referring to. Ofwat is working very closely with Thames Water to ensure that the business is viable, that customers are not impacted, and that water supply and waste water services are delivered. As I mentioned, Ofwat has strengthened many measures so that we have a much more resilient industry in the future. Indeed, those changes and the fall in the debt to equity ratio demonstrate that we do have a more resilient industry.

Richard Foord Portrait Richard Foord (Tiverton and Honiton) (LD)
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We have seen bonuses and dividends put ahead of investment in infrastructure or maintaining sufficient reserves. Our area of Devon and Somerset is covered by South West Water; the company has paid out £112 million in dividends this year, despite having just £144 million in reserves, which is £2.5 billion less than it had two years ago. This week, a water firm chief executive officer has resigned, but no Conservative Minister has ever taken responsibility. When will a Conservative Minister finally take responsibility and get a grip, or step aside?

Rebecca Pow Portrait Rebecca Pow
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As the hon. Gentleman knows, Ofwat has announced new measures to enable it to take action against water companies that do not link dividend payments to performance. That is just not happening. I think he needs to look again at some of the stats he has just quoted, because I think they might relate to the wider Pennon Group. I have just visited South West Water to have a really forensic look at its systems and how it delivers water. That is what we do with our water companies. It is Ofwat’s job to hold water companies to account, and it has just got measures through the Treasury so that it has another £11.3 million to tackle enforcement.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I thank the Minister for her answers. We are ever mindful that house building is important, and development opportunities are critical to the future as well, so with developers being charged more and more to connect to the network but facing delays in those connections being installed, what plans does the Minister have to make the connection system for new developments more affordable?

Rebecca Pow Portrait Rebecca Pow
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The hon. Gentleman raises an important issue. We always have be mindful of costs, not just to customers through their bills but to developers building houses. We are working closely with the Department for Levelling Up, Housing and Communities on a range of measures and on its planning guidance, so that we can tackle a range of issues connected to water, working with developers on things like rainwater harvesting and sustainable urban drainage systems, which will really help the whole of our water infrastructure.

Lord Cryer Portrait John Cryer
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On a point of order, Mr Speaker. I think the Minister may have inadvertently misled the House. She said clearly that Thames Water has not been paying out dividends. The reality is that Thames Water has not been paying out dividends in the usual way, but it did pay dividends last year to the parent company, so it has been paying out dividends.

Lindsay Hoyle Portrait Mr Speaker
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Does the Minister wish to respond?

Rebecca Pow Portrait Rebecca Pow
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Yes, Mr Speaker. I will check the wording, because I would hate to mislead the House. If I have inadvertently said something incorrect, I will happily put it straight on the record.

Mental Health In-patient Services: Improving Safety

Wednesday 28th June 2023

(1 year, 7 months ago)

Commons Chamber
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13:14
Steve Barclay Portrait The Secretary of State for Health and Social Care (Steve Barclay)
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With permission, Mr Speaker, I would like to make a statement on improving safety in mental health in-patient services across England. Before doing so, I want to thank all the right hon. and hon. Members from across the country who have campaigned tirelessly on behalf of their constituents to improve mental health care. Too many people have experienced care in mental health in-patient settings that has been well below the high standard that we all deserve when we are at our most vulnerable. I would also like to put on record my sincere condolences to the families and friends of those who have lost their lives.

First, I will update the House on the independent inquiry into mental health in-patient care across NHS trusts in Essex between 2000 and 2020. I thank my right hon. Friend the Member for Chelmsford (Vicky Ford) for tabling a Westminster Hall debate on the Essex mental health inquiry earlier this year. She and colleagues, including our hon. Friend the Member for Rochford and Southend East (Sir James Duddridge) and our right hon. Friends the Members for Witham (Priti Patel) and for Maldon (Sir John Whittingdale), all spoke passionately about the need to get justice for patients and their families. I know that my hon. Friend the Member for South Suffolk (James Cartlidge) also tabled an Adjournment debate on mental health in-patient care in Essex before the independent inquiry was launched in 2021.

I also pay tribute to my right hon. Friend the Member for Saffron Walden (Kemi Badenoch) and my hon. Friends the Members for Clacton (Giles Watling), for Brentwood and Ongar (Alex Burghart), for Castle Point (Rebecca Harris), and for Southend West (Anna Firth) for their determined campaigning on behalf of their constituents. Of course, we should all remember the important contribution of the former Member for Southend West, and a great friend to many across this house, the late Sir David Amess. He tabled a Westminster Hall debate on mental health services in Essex back in 2014, and he was a passionate campaigner for improving mental health care. I know he is very much in our thoughts.

In 2021 we launched the independent inquiry to investigate the deaths of mental health in-patients across NHS trusts in Essex between 2000 and 2020. The Government appointed Dr Geraldine Strathdee, a former national clinical director for mental health for NHS England, to chair the inquiry. I want to place on the record my thanks to Dr Strathdee and her team, because a lot of good work has been done. I applaud the bravery of all the victims and their families who have come forward to tell their stories.

I also recognise the work that the Essex Partnership University NHS Foundation Trust—EPUT—has done to assist with the inquiry. The trust has been in the spotlight, and progress has already been made to learn lessons and improve in-patient mental health care. EPUT’s chief executive, Paul Scott, joined in 2020, and since then the trust has invested £20 million in its mental health in-patient wards and a further £20 million in community services. Compared with 2019, patients absconding from care has decreased by more than 60%, and the use of inappropriate restraint has fallen by 88%.

However, in January Dr Strathdee raised concerns with me about a lack of engagement with the inquiry by current and former EPUT staff. I know that many right hon. and hon. Members share her concerns. Since then, the inquiry and the trust have worked together in a concerted effort to increase staff engagement. None the less, I have listened to Dr Strathdee’s concerns that the inquiry still needs further staff engagement to get victims’ families the answers they deserve. In a letter to me in March, she said that

“30 percent of named staff, those essential witnesses involved in deaths we are investigating, have agreed to attend evidence sessions. In my assessment, I cannot properly investigate matters with this level of engagement.”

She has also raised with me concerns about ongoing safety issues at the trust. To quote from her letter once again, she said:

“I am very concerned that there are serious, ongoing risks to patient safety. Due to the nature of these issues, I am confident that these cannot be properly investigated by the Inquiry without statutory powers.”

The Government take both concerns extremely seriously, and I agree with Dr Strathdee that we have now reached the point where the only appropriate course of action is to give the inquiry statutory powers.

Statutory inquiries do take longer, but this does not mean that work will start from scratch. Dr Strathdee’s existing findings will inform the next phase of the inquiry. She has informed me that, owing to personal reasons, she will not be continuing as the inquiry’s chair, so I want to thank her once again for all her commitment and hard work. I am sure the House will agree that she is a true public servant. Our work to find her successor is proceeding at pace, and I will update the House on the progress of setting up the inquiry in due course.

I recognise that Members’ concerns about mental health in-patient facilities are not confined to Essex. The Government are committed to improving mental health care across England, which is why we are boosting mental health funding by at least £2.3 billion this year compared with four years ago, why we are making urgent mental health support available through 111, and why we are delivering three new mental health hospitals to provide specialist care and cut waiting lists.

In January, we commissioned a rapid review of how data is used in in-patient mental health settings in England. More effective use of data has the potential to reduce duplication, ensuring that healthcare professionals can spend more of their valuable time with patients. The review team—well led again by Dr Strathdee—heard from more than 300 people representing every part of the in-patient mental health sector, including former patients and frontline staff. Dr Strathdee has made recommendations for how data and evidence can be used to identify risks to patient safety and failures in care more quickly and effectively. The findings and recommendations of the rapid review will be published today, and I will deposit a copy in the Libraries of both Houses. The Government will consider its findings carefully and respond in due course.

We recognise, however, that patients and families want to know how their concerns will be taken forward as soon as possible, and I also recognise that a wide-ranging statutory inquiry relating to other settings, or covering multiple patient safety issues, would not deliver those answers quickly. My Department has therefore agreed to work alongside the Healthcare Safety Investigation Branch to prepare for the launch of a national investigation of mental health in-patient services, which will commence in October, when the HSIB receives new powers under the Health and Care Act 2022.

The new Health Services Safety Investigations Body will investigate the following themes: how providers learn from deaths in their care and use that learning to improve services, including post-discharge services; how young people are cared for in mental health in-patient services and how that care can be improved; how out-of-area placements are handled; and how to develop a safe staffing model for all mental health in-patient services. Across all those areas, it will explore the way in which providers use data. I want to reassure the House that the new body will have teeth and will work at speed, that it will have the power to fine those who refuse to give evidence when they are required to do so, and that its predecessor’s investigations were typically concluded within a year.

I hope that today’s announcements will be of some comfort to the bereaved families who have done so much to raise awareness of the failings of mental health care in Essex and elsewhere. I want them to know that the Government are committed to obtaining for them the answers that they deserve, and to improving mental health across the country. I commend this statement to the House.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

13:23
Rosena Allin-Khan Portrait Dr Rosena Allin-Khan (Tooting) (Lab)
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I thank the Secretary of State for advance sight of the statement. However, it beggars belief that it has taken the Government so long to address the House on this matter. It seems that every month there are new scandals regarding needless loss of life and dehumanising behaviour in in-patient mental health settings. That must be stamped out now—these are people’s lives.

That brings me to the subject of Essex Partnership University NHS Foundation Trust. I welcome the announcement today that the inquiry will be given vital statutory powers, because for several years families who have lost loved ones at the trust have been calling for the inquiry to be given those powers. The grieving families I have spoken to have told me about the pain and anguish they have felt during their fight for answers, and that has only been compounded by an inquiry that lacked the necessary powers to seek the truth.

I must pay tribute to those families for their tireless campaigning and effort. In particular, I thank Melanie Leahy, who has fought for too long to achieve the announcement that has finally come today. I hope that Melanie, and every other family, will now start learning the truth.

Dr Strathdee has been a powerful advocate for the Essex inquiry, and we want to express our thanks to her for the work that she has already put in. The next inquiry chair must continue her work, and hold the confidence of the families who have been impacted in Essex.

I have repeatedly called on the Secretary of State to give the Essex inquiry statutory powers, and I am pleased to see that he has finally listened to our calls, but why were families left in the lurch for so long? Following months of scandals in in-patient mental health hospitals, public confidence is falling. More than one in three people say that they do not have faith that a loved one would be safe if they needed hospital mental health care, but every patient must be treated with dignity. I have repeatedly asked Ministers whether they have visited failing trusts. The Minister refused to answer, so will the Secretary of State commit himself to greater transparency? The Secretary of State has announced that urgent mental health support will be made available through 111, but 1.6 million people have been left languishing on waiting lists for mental health treatment, their condition deteriorating and reaching crisis point.

It is welcome that we will finally see the publication of the rapid review today—better late than never—but Labour has been calling for in-patient mental health settings to be reviewed in the light of these serious failings, and any rapid review should have had patient voices at its centre rather than being simply the data exercise that the Government commissioned. When we look at the planned national investigation into in-patient services that they will conduct alongside the Health Services Safety Investigations Body, we see that, yet again, there is no mention of working with patients and their families. Where is the learning? Where is the focus on what staff need in these settings? Are the Government looking at additional training needs, given that mental health care relies on staff and not simply on shiny equipment?

Let me turn briefly to the planned consultants’ strike, about which the Health Secretary has said absolutely nothing. Yet again he has been missing in action. For my consultant colleagues to have voted to strike is extraordinary, and the risk to patients of seven days of strike action is intolerable. Next week marks the 75th anniversary of the NHS, and it has never been in a worse state. The country is clear about who is to blame. It is not nurses, it is not junior doctors, it is not consultants, and it is not paramedics; it is this Conservative Government. They have lost control of the NHS, they have lost the confidence of NHS staff, and they have lost the support of the British people. The only ballot that we need now is a general election.

Steve Barclay Portrait Steve Barclay
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It is a shame that the hon. Lady chose to conclude her remarks in such a way. Let me address that head-on. It is bizarre to accuse a Minister who is literally at the Dispatch Box of being missing, particularly when the shadow Health Secretary, having managed to turn up for Prime Minister’s Question Time, has failed to turn up for this statement. It is even more bizarre that, although we are constantly told that the Labour party sees parity between mental health and physical health as a key priority, when it actually comes to debating the issue, the contrary is clearly on show.

This debate is not about the issues normally raised during Prime Minister’s questions about the politics of the day; it is about the families who have tragically lost loved ones, about how we can learn the lessons from that, and about how we can ensure that we get the data right, get the support for staff right, and get the procedures right so that other families do not suffer loss. We have responded to the excellent points made by Dr Strathdee through her rapid review about data. There are two elements to that: there is data that is collected that does not add value, is often duplicative and takes staff away from giving care—that is somewhere that we can free up staff—but there is other data that is needed to better identify issues early, and we need to look at how we improve that data. Specific issues arose in respect of engagement by staff, and we have actively listened and responded to the concerns raised by families and by many Members of the House, particularly about the Essex inquiry. I will come on to those as I go through the wider issues.

The shadow Minister mentioned speed. Of course, there is a balance to be struck between the completeness of a statutory inquiry and the greater speed that is often offered by other independent inquiries. Indeed, the Paterson inquiry was a non-statutory inquiry commissioned through the Department, and that is another vehicle that is often successfully used. There are also inquiries commissioned through NHS England, such as the Donna Ockenden review. There is often a balance to be struck between those inquiries, given the speed at which they can proceed, and a statutory inquiry, which has wider powers but often takes longer.

It was because of our desire to move at pace to get answers to families that we initially commissioned a non-statutory inquiry, in common with Bill Kirkup’s inquiry into Morecambe Bay and inquiries into many other instances in the NHS. However, we have listened to families and to right hon. and hon. Members who have raised concerns about the process and, in particular, the engagement by staff, and decided to make it a statutory inquiry.

The shadow Minister asked about our commitment to transparency. The very reason that we set up the rapid review in January was to bring greater transparency to the data. That is why I will be placing in the Libraries of both Houses the outcome of the rapid review. That speaks to the importance of transparency as we learn the lessons of what went wrong in Essex and in other mental health in-patient facilities.

The shadow Minister made a fair point about waiting times. We are committed to cutting waiting times, including in mental health. That is why we are spending £2.3 billion more on mental health this year than four years ago, we have commissioned 100 mental health ambulances, we have 160 different schemes looking at things such as crisis cafés to support people in A&E, and we have schemes such as the review through 111 and the funding the Chancellor announced in the Budget for mental health digital apps to give people early support. Of course, that sits alongside other mental health interventions, such as our programme to train more people to give mental health support in schools.

The shadow Minister made an important point about working with families. I agree with her about that. HSIB will be meeting families—indeed, Ministers have been doing likewise—and we are keen that that should feed into the terms of reference, both for the statutory inquiry and for the HSIB review.

We have touched on consultants, but let me make a final point on that. As far as I am aware, the Opposition do not support a 35% pay rise, whether for junior doctors or for consultants, but if that is their position, perhaps they will tell us whether this is yet another area that the stretchable non-dom contribution will reach to. Exactly how will it be funded?

This is a serious issue. The measures that we are taking address the concerns of families who have suffered the most tragic loss. It is important that we learn the lessons, both in Essex and more widely. We have actively listened to the points raised by Dr Strathdee, who has done a fantastic job. It is right that the work moves on to a statutory footing, but it is also right that we look more widely at the lessons from other mental health in-patient facilities. That is exactly what we intend to do.

Priti Patel Portrait Priti Patel (Witham) (Con)
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First, let me put on the record my personal thanks to the Secretary of State and Ministers for their honest and frank engagement with colleagues and with bereaved families, whose concerns they have listened to. It was my constituent Melanie Leahy, who was at one stage a constituent of my right hon. Friend the Member for Maldon (Sir John Whittingdale), who brought the issue to our attention and to the attention of the Secretary of State. She deserves a lot of support for the way she has conducted herself. None of us would want to go through the sheer anguish and personal trauma that she has experienced. We owe a lot to her and to others who have come forward.

There are still 80-plus families who did not engage with the inquiry led by Dr Strathdee, to whom I pay tribute. The statutory inquiry will give them the confidence and courage to come forward, speak up and share what will be—we should be frank about this—deeply harrowing evidence. Will the Secretary of State expand on how evidence received by Dr Strathdee’s inquiry will be treated? I know that he said he will come back to the House on the processes. We are interested, in particular, in the inquiry’s terms of reference. Importantly for bereaved families, what measures will be in place to support people to come forward and give evidence? There have been too many barriers in that regard for families and, if I may say so, those who have been employed by EPUT. What involvement will the families have in drawing up the terms of reference? They are the ones that need confidence in the process. Again, I thank Dr Strathdee, and I thank the Secretary of State and Ministers for their engagement.

Steve Barclay Portrait Steve Barclay
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In my discussions with my right hon. Friend and colleagues, I found the compassion that they showed and the way they championed the family voice compelling. I absolutely agree that it is important that families take confidence from the decision to move the inquiry on to a statutory footing and come forward with their evidence. I know that she plays an active part in that. Of course, we want families to be part of the discussion on the terms of reference. I know that, with her significant experience, my right hon. Friend is keen to be part of that too, and we are keen to engage with her on it.

My right hon. Friend is right to highlight the evidence that has already been gathered through the excellent work of Dr Strathdee. I had a meeting with her yesterday to ensure that we capture that as part of the work that is moving forward. I hope—I reinforce my right hon. Friend’s point—that families will take confidence from today’s announcement and that those families who have not come forward to date will be able to do so. I know that in my right hon. Friend they will have a resolute champion supporting them to do so.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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I, too, welcome the Secretary of State’s statement, but I am disappointed that he did not say more about the serious risks that we have raised in the House—not least about timely access to services and the significant risk that many of my constituents have faced out in the community—in respect of Tees, Esk and Wear Valleys NHS Foundation Trust, which serves York. I wonder whether he can expand on that, and on his proposals for taking things forward at the trust. I am meeting one of his Ministers next month, but I would like to hear his position on addressing the serious concerns that have been raised.

Steve Barclay Portrait Steve Barclay
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The hon. Lady raises a very valid point. There are real concerns about Tees. We considered that when considering the scope of the statutory inquiry. Given that significant work had been done in Essex, we decided to strike the balance by putting that on a statutory footing but enabling work to proceed at pace through HSIB on Tees and some other areas. The hon. Lady will know that the Care Quality Commission prosecuted the trust in May for a regulation 12 breach, and that significant work has already gone in; the report of the system-wide independent investigation was published last March. They are very serious issues on which I think there is concern across the House, and we stand ready to work with her and other elected representatives from that area as part of the wider work.

Vicky Ford Portrait Vicky Ford (Chelmsford) (Con)
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It is a deep, deep tragedy that, over the 20-year period, around 2,000 people lost their life under the care of mental health services in Essex. Families and survivors are right to want transparency and accountability. Given the slow progress of the independent inquiry, it is right that it now moves to a statutory basis.

When I spoke in Westminster Hall, I shared the testimony of a constituent who had been an in-patient in the early 2000s. She described being raped by another patient and being laughed at by staff when she asked for support. She described being able to make many suicide attempts, absconding from the ward and overdosing. She described how staff refused to treat her self-harm injuries and how she was repeatedly restrained and forcibly injected. I put on record my incredible respect for the people who are coming forward to relive their horrors and share their testimony. They are doing this because families and survivors want to know that change is embedded so that lives are safeguarded now and in the future. Will my right hon. Friend give assurance to my Essex constituents that mental health services in Essex will now be given the support they need to keep vulnerable people safe?

Steve Barclay Portrait Steve Barclay
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Having discussed that harrowing evidence with my right hon. Friend, I do not think any Minister could either forget it or not be moved. I found it an extremely moving experience to hear her talk about the experiences of a number of her constituents. She is right to praise those who come forward, and to recognise that it is often a difficult ask to relive the most awful circumstances, but it is important that families come forward so that we learn lessons and ensure this is not repeated.

My right hon. Friend is also right to highlight the two broad elements of learning the lessons of what happened in the past and maintaining services for the future. I am therefore happy to give her an assurance that we will work closely with her on support for Essex as lessons are learned through the statutory inquiry and as services continue to be delivered. We are working closely on that with the chief executive.

Daisy Cooper Portrait Daisy Cooper (St Albans) (LD)
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My thoughts are, first and foremost, with the bereaved families and all those involved, because this process must be utter agony for them. It is right that the inquiry is put on a statutory footing.

In his statement, the Secretary of State quoted from a letter he received from Dr Strathdee, in which she said:

“I am very concerned that there are serious, ongoing risks to patient safety.”

The Secretary of State did not expand on that, and I do not know whether he is able to do so. If I may extrapolate, we know that, more broadly, there are risks to patient safety when there is not enough workforce and when there are not enough beds. Hertfordshire is the most under-bedded area of the country. When we see the workforce plan, potentially this week, will it include estimates of the number of qualified mental health staff we need in in-patient settings, NHS community settings and schools? Will he meet me and my local mental health trust to discuss the number of beds we have in the county and our plan to expand them?

Steve Barclay Portrait Steve Barclay
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Dr Strathdee did not particularly focus on staffing numbers, as far as I recall; she focused on some of the issues with care from staff. That was the nature of the concerns. On the ongoing risk, part of the reason why we commissioned the rapid review was to look, in particular, at the quality of data. There was a quantity of data that was not effective, and that often distracted staff from spending time with patients. There were also gaps in the quality of data that needed to be filled, and the document that will be placed in the Libraries of both Houses speaks to that point. That is why we are so keen to move at pace on learning lessons.

Ben Spencer Portrait Dr Ben Spencer (Runnymede and Weybridge) (Con)
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I welcome that sentence and the seriousness and speed with which this is being taken forward.

As a now non-practising consultant psychiatrist, I have a variety of declarations in this area, which are best summarised in the pre-legislative scrutiny report on the draft Mental Health Bill. My constituents are waiting for the rebuild of the Abraham Cowley unit in my constituency, but the framework under which patients are looked after is very important. People in in-patient settings are, by definition, some of the most vulnerable people looked after by the NHS, and a fair proportion are a detained population. Could the Secretary of State update the House on how soon we will see the Government’s response to the pre-legislative scrutiny Committee report on the draft Mental Health Bill and when we expect the proper Bill to be brought forward?

Steve Barclay Portrait Steve Barclay
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My hon. Friend is right to highlight the importance of pre-legislative scrutiny, into which he had a personal input. I am hugely grateful for his work and the work of Baroness Buscombe and others. I met Baroness Buscombe some months ago to discuss the outcome of that pre-legislative scrutiny. I do not have a date to share today, but I am happy to write to my hon. Friend with a further update.

Florence Eshalomi Portrait Florence Eshalomi (Vauxhall) (Lab/Co-op)
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Many of my constituents depend on mental health services provided by the South London and Maudsley NHS Foundation Trust, which provides a range of services for very vulnerable people across a large part of south London. The in-patient service includes cleaning and catering facilities, and it is vital that those services are run well so that well-trained professional staff are able to treat mental health patients. Some of the trust’s staff are contracted to a company called ISS, and they have been on strike. Does the Secretary of State agree that ISS should come to the table and discuss the issues of the pay dispute so that staff can provide the cleaning services for mental health professionals to continue with their vital jobs?

Steve Barclay Portrait Steve Barclay
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We are investing more in mental health services as a whole, and that includes the important area of cleaning and catering services. Obviously, it would be inappropriate for me to comment on that specific contractual dispute, but industrial action, in its wider sense, is clearly disruptive and I am very keen for it to be resolved as quickly as possible, whether in the context of consultants or cleaning and catering services.

Stephen Metcalfe Portrait Stephen Metcalfe (South Basildon and East Thurrock) (Con)
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I welcome my right hon. Friend’s statement and the move to put the EPUT inquiry on a statutory footing. He mentioned that putting it on a statutory footing means it will take longer. On behalf of constituents and those who are keen to get closure on these important issues, can he give any kind of indication of when the findings might be available?

Steve Barclay Portrait Steve Barclay
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The chair is to be appointed, and given that statutory basis and the independence of the chair, it would be wrong for me to pre-empt the terms of reference. People can look to other statutory inquiries and come to a conclusion. The inquiry is not starting from scratch, and part of the reason we originally went with a non-statutory inquiry was because of the desire for speed. Of course, Dr Strathdee has done a huge amount of work and it will be available to the new chair of the statutory inquiry. One can look to other inquiries and draw conclusions, but I would expect it to move more quickly in this instance because a significant amount of work has already been done.

Luke Pollard Portrait Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
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I welcome the statutory inquiry, which is a step in the right direction. I also welcome the Secretary of State’s focus on families. Ensuring family involvement in the care of mental health in-patients not only improves patient outcomes but enables proper scrutiny and questioning of care. In regions such as the south-west, many patients facing the most serious mental health crises receive care outside the region, which is often a long way for families to travel. Is he considering the increased commissioning of local provision so that families can know their loved ones are being well cared for? Many families will be concerned about the statement and the experiences of patients in Essex. The right care and the best care for many patients is closer to home.

Steve Barclay Portrait Steve Barclay
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The hon. Gentleman raises an extremely important point, and he is right that a particular downside of out-of-area placements is often the distance from families. Indeed, one can see in the data that there is often a corresponding uptick in issues of harm. The crux of his point is very valid. That is why we are committed to building new facilities, with three new hospitals for mental health announced in the statement I gave on the new hospitals programme; that included three new mental health ambulances. This is also about preventing people from needing in-patient care through our crisis cafés, our earlier intervention in community services and the interplay with 111. More fundamentally, it is about giving greater power to commissioners on a place-based basis. The reforms through integrating health and social care, having fewer targets from the centre and allowing more devolved decision making mean that those areas that want to put more money into in-patient mental health, for example, have greater flexibility to do so. The point the hon. Gentleman raises is extremely important and it is exactly what we are facilitating.

Jackie Doyle-Price Portrait Jackie Doyle-Price (Thurrock) (Con)
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As my right hon. Friend observed, a non-statutory inquiry is generally more fleet of foot than a statutory one. It is so disappointing that the failure of staff to engage in that process has brought us to where we are now. That would indicate a very poor culture and sets the tone for how this inquiry will be taken forward. Let me remind him that one reason we are so anxious to get the Mental Health Act reformed is that kind of behaviour towards patients. Too many in-patient settings see patients as an inconvenience to be managed, rather than having their real welfare at heart. Will he therefore redouble his efforts to make progress on this, because many people who have been through the other side want to see that progress?

Steve Barclay Portrait Steve Barclay
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First, I do not want to wait for legislation before we make changes. Indeed, under the leadership of Paul Scott, who joined EPUT in 2020, investment has been made, with an extra £20 million being put into the in-patient wards and a further £20 million into community services. We are keen to make further progress on that. On the wider issue of legislation, I know that my hon. Friend, as a former Government Whip, is particularly acquainted with how the legislative process works, but the Government take her comments, and those of the House, on engaging staff in this process seriously, and we are working very actively on that.

Charlotte Nichols Portrait Charlotte Nichols (Warrington North) (Lab)
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It is vital that the Government work with sector experts and those with lived experience of in-patient mental health services in getting this vital area of policy right. As someone who spent almost a month as a psychiatric in-patient back in 2021, I know at first hand how difficult, disorientating and dehumanising these settings are, at a time when you are at your most vulnerable, and how easily things that are well-intentioned can and do go wrong. Will the Secretary of State therefore commit to working with Mind and other organisations giving patients and their families a voice to shape these improvements, to ensure that any changes happen with patients and their families, and not to them?

Steve Barclay Portrait Steve Barclay
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I very much agree on that. The hon. Lady speaks powerfully of the importance of engaging with those with experience—the charity sector, the families and those directly impacted by the decisions taken in in-patient mental health facilities. She makes an extremely pertinent point and it is very much part of the approach we are taking.

Mark Francois Portrait Mr Mark Francois (Rayleigh and Wickford) (Con)
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I thank the Secretary of State for mentioning our great friend Sir David Amess. I am sure that, if he were still with us today, he would welcome this statement, as do I, as does his successor and, as is clear, as do all other Essex MPs. The Secretary of State has done the right thing and should be commended. EPUT has been a troubled organisation for some time, although I believe that its chief executive, Mr Paul Scott, is genuinely trying to turn it around. As we look back to find out what went wrong—some things clearly went very badly wrong—will the Secretary of State work with the chief executive, providing support and resources, not just to make sure this does not happen again, but to try to help EPUT improve in the future as well as examine the past?

Steve Barclay Portrait Steve Barclay
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I know that my right hon. Friend was particularly close to Sir David and is uniquely qualified to speak of his interest and involvement in these issues. I am happy to give him the reassurance that he seeks on working closely with the chief executive and the leadership team there. I know from my engagement with colleagues across the House that they will be closely involved in this in the weeks and months ahead.

Neil Coyle Portrait Neil Coyle (Bermondsey and Old Southwark) (Lab)
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South London and Maudsley is the mental health trust that covers my constituency. This year, as a direct result of the Secretary of State’s wider policies, SLaM is cutting £45 million from services. He has said today that he wants to improve mental health care and that he takes safety concerns seriously, but when will those words be meaningful for mental health care for patients and their families in Southwark?

Steve Barclay Portrait Steve Barclay
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The meaningfulness of those comments can be seen in the fact that we are putting this inquiry on a statutory basis; the £2.3 billion additional investment compared with what we had four years ago; the crisis cafés and the other schemes we have, as part of the 160 schemes we are bringing forward; and our willingness to innovate in mental health through the use of mental health digital apps. There is a whole range of initiatives because that is the right approach. Across the House, it has been recognised that in the past mental health did not get as much focus as physical health, which is why we are investing more. Again, the House recognises that covid has brought more focus to these issues, which is why this is a priority for the Government. Today’s statement is a further continuum in that effort.

James Duddridge Portrait Sir James Duddridge (Rochford and Southend East) (Con)
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I thank the Secretary of State for his attitude to this issue and the time he has put in. I fully support the points he has made about non-statutory and statutory inquiries. It was right to start off non-statutory and to change when the situation changed and we were not getting what we wanted.

I reflect on the comments of my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) about, “Where did this go wrong?” Since I first visited Rochford Hospital, part of what is now EPUT, in my constituency, I believe we have had three Secretaries of State visit, as well as at least five Ministers responsible for these areas. What was the South Essex Mental Health Partnership grew to take in more of Essex, and it then reached across the border into Hertfordshire and, if I recall correctly, went further. It perhaps just got too big. Early on, the constituents I spoke to were concerned about getting in; they wanted their children to get in, but there were delays and this was about overall capacity. Now the issue is about the quality of what goes on. The hon. Member for St Albans (Daisy Cooper) mentioned beds and I can tell her that this is not a problem of beds, certainly in Rochford Hospital, where there are plenty of beds; it is about having the clinical psychiatrists specialised in children’s services and the supporting nurses to deliver. We should also pay attention to the fact that things are much better where people have simple mental health problems, but very few people have those. When these problems are combined with drug use or autism, particular challenges are presented while people are in these places and during discharge. I urge the Secretary of State to encourage the inquiry to look into all those issues.

Steve Barclay Portrait Steve Barclay
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My hon. Friend makes extremely important points, and I absolutely agree with him. Indeed, I will draw the inquiry’s attention to the points he raises. He is right about the trade-off between non-statutory inquiries giving speed and statutory inquiries having a wider range of powers. We have followed the evidence on that, which Dr Strathdee has shared. There is also a balance between the size of a facility and the quality of the care. Data is a key component within that and the rapid review was focused particularly on it. All of us are focused on, “How do we get the best patient outcomes? Where those have fallen short, how do we ensure the lessons of that?” That is what the statutory inquiry is absolutely focused on and it is important that families then engage with it.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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The Care Quality Commission report at the end of last year said that workforce issues and staffing shortages are the greatest challenge facing the mental health sector. I am sure that that would not have come as a surprise to the Health Secretary. The Glenside campus, part of the University of the West of England, is in my constituency, and it runs mental health training courses for nurses. What conversations is he having with the sector about how we can ensure we get enough mental health nurses trained, so that we get the right people coming through and they are encouraged to stay the course?

Steve Barclay Portrait Steve Barclay
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The hon. Lady’s point is important, given that in the wake of the pandemic we have seen significant increases in demand, particularly for children’s and young people’s services. For example, in a year, the demand increased by 41%, so there is significant demand, which places pressure on the workforce. That is why the Prime Minister and the Chancellor have committed to the long-term workforce plan, which we will be bringing forward very shortly. We have been engaging with the sector, including the mental health sector, as part of that plan. NHS England has been doing significant work on that in recent months.

Dean Russell Portrait Dean Russell (Watford) (Con)
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The background stories to today’s announcement are truly heartbreaking, and I welcome the statutory inquiry. The Secretary of State referred to recent announcements about funding and the 111 helpline. Will he expand on what support can be accessed by people, especially young people, if they are going through a crisis right now?

Steve Barclay Portrait Steve Barclay
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It is extremely important that we get support to young people, because many mental health cases start at a young age. Indeed, data suggests that as many as 50% of mental health cases crystalise by the age of 15, so it is important that intervention is made early. Our programme in schools, for example, is focused on that. It is also important for us to have better community support, which is why we are looking at what mental health support can be offered when people phone 111 and at how we can better scale up the use of digital apps that offer support, given that people often access information through their phones or digital channels in a way that they did not five or 10 years ago.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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On behalf of my party, I express my sympathy to all the families who have been bereaved and hurt by what has taken place. I thank the Secretary of State for his announcement about the statutory inquiry and the new powers. It is clear to those of us in the House who listened to his statement that he is committed to making patients’ lives better; we thank him and I put it on the record that he deserves credit for that. I know that the Secretary of State is always keen to share progressive strategies and policies with the regional Administrations; he is on record as having said that. It is clear that many lessons can and will be learned, so does he intend to share them with the regional Administrations?

Steve Barclay Portrait Steve Barclay
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I am extremely keen to share our experience, so that we can learn from each other. As the hon. Gentleman knows, this is a shared challenge across our United Kingdom. The pandemic shone a spotlight on the mental health pressures that many people face, and I am extremely keen to work on a UK-wide basis with colleagues to ensure that we learn from each other as we take these measures forward.

Julian Sturdy Portrait Julian Sturdy (York Outer) (Con)
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Given that a recent report into mental health services in York established that communication is a clear concern that is affecting mental health outcomes and safety locally, what specific steps would my right hon. Friend take to ensure better communication between primary and secondary care services? As we all know, that is vital in delivering faster and better outcomes for patients not only in York but across the country.

Steve Barclay Portrait Steve Barclay
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That is an extremely good point. In fact, a key element of the primary care recovery plan looks at the handover points between secondary and primary care, which are often the cause of significant additional work within primary care. We are keen to see where we can ease those pressures, which in turn frees up our experienced GPs to do those tasks that require more time, so that is part of the primary care recovery plan. Through the rapid review and the focus on data, we are better able to identify where there are gaps or areas of duplication that take clinicians away from spending time with patients. That matters both in secondary and primary care, and it is something that the rapid review has been addressing.

Peter Gibson Portrait Peter Gibson (Darlington) (Con)
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I welcome my right hon. Friend’s statement and the publication of the rapid review. While Essex is rightly getting its statutory inquiry, it appears that the situation in Tees, Esk and Wear Valleys NHS Foundation Trust will merely be covered by the new powers of the Healthcare Safety Investigation Branch. Will my right hon. Friend confirm that TEWV will be covered by the HSIB review? When can families expect to hear anything from that review? Will he keep the need for a statutory inquiry into TEWV under review?

Steve Barclay Portrait Steve Barclay
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It will be covered by the HSIB review. On how long that will take, investigations under the predecessor body typically took around a year, which is one of the advantages of the speed at which these things can be done. I hope my hon. Friend can see from the statement today that we will follow the evidence, given the decision we have taken to put the Essex inquiry on a statutory footing, but the HSIB approach has the benefit of speed. I hope that will benefit his constituents, as we learn the lessons.

It is worth clarifying that the new body will have much greater teeth, as a result of the reforms that were passed by the House in 2022. While it is not on a statutory footing, it actually has more power than was the case in the past. That is why we think it is the right approach for learning the lessons in his constituency and more widely.

Andrew Percy Portrait Andrew Percy (Brigg and Goole) (Con)
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The Secretary of State has rightly pointed to the £2.3 billion in extra funding and has reiterated from the Dispatch Box his belief that early support for children’s mental health is vital. Does he agree that this is sadly still patchy across the country? Early access to children’s mental health services needs to be a priority for all new care systems. I commend to him the approach being taken in north Lincolnshire, where that is absolutely the case and where it has been championed by the wellbeing boards and in all our health partnerships. That should be replicated across the country.

Steve Barclay Portrait Steve Barclay
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I commend my hon. Friend for the service he gives as a community first responder. Through that, I know he takes a huge interest in these matters. As with the point about data, I am extremely keen that where there is good practice, we are socialising that across the country as a whole, rather than having it in pockets. I would be extremely keen to work with him on the lessons coming out of north Lincolnshire and on how we scale that across the country, so that good practice can be adopted more widely. Indeed, the statement today is about how we will ensure that the lessons from Essex can be applied more widely, so that best practice is socialised across the country.

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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I thank the Secretary of State for his statement, which will be welcomed by everyone across Essex.

Childcare Reform Package

Wednesday 28th June 2023

(1 year, 7 months ago)

Commons Chamber
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14:06
Claire Coutinho Portrait The Parliamentary Under-Secretary of State for Education (Claire Coutinho)
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With permission, Madam Deputy Speaker, I would like to make a statement about the progress we have made towards delivering the genuinely radical childcare reforms announced in the Chancellor’s spring statement.

The Chancellor announced that from September 2025, working parents will be able to access 30 hours a week of childcare, for 38 weeks a year, from the term after their child turns nine months to when they start school. I am pleased to announce that from today, the Department for Work and Pensions has raised the amount working parents on universal credit can claim for their childcare to £951 a month for one child and £1,630 for two or more children. That is an increase of roughly 50% from the previous limits, which were £646 for one child or £1,108 for two or more children.

The Government are also helping eligible parents to cover the costs for the first month of childcare when they enter work or increase their working hours. Those parents will now receive up to 85% of the first month’s childcare costs back before next month’s bills are due, meaning that from then on they should have the money to pay for childcare one month in advance.

When I have spoken to families on universal credit, many have told me that they have struggled with up-front childcare bills, making it harder for them to get back into work. These childcare reforms support one of the Prime Minister’s five key priorities—to grow the economy—by giving families on universal credit up to £522 extra each month to cover childcare costs. This is a transformational package that is designed to remove as many barriers to work as possible.

The evidence is clear: the earliest years, before a child goes to school, are the most critical stage of a young child’s development. That is when they are learning most rapidly, and when the foundations are being laid for future success.

We are also committed to improving the availability of wraparound childcare. Reliable wraparound childcare, before and after school, helps parents to work and can offer children great activities around the school day. The education and care provided in childcare settings up and down the country is pivotal for children. Visiting and talking to nurseries, childminders and other providers is one of the best parts of my job. I wish to put on record my thanks for the hard work and dedication of the talented people who work in the sector.

I have travelled across the country visiting providers: from Chestnuts Childcare in Shirebrook to Kids Inc in Crowthorne; from Little Stars in Peterborough to Imagination Childcare in Moredon; from Curious Caterpillars in Stroud to Playsteps Day Nursery in Swindon; and from Bright Horizons in Didcot to Acorn Day Nursery in Emberton. I thank my hon. Friends the Members for Peterborough (Paul Bristow), for Bolsover (Mark Fletcher), for Bracknell (James Sunderland), for North Swindon (Justin Tomlinson), for Stroud (Siobhan Baillie), for Milton Keynes North (Ben Everitt), for Cities of London and Westminster (Nickie Aiken) and others for hosting me on those visits. They all share my determination to get this right for parents and providers.

When I am out on those visits, I often hear how much of a lifeline the settings are for parents, allowing them to work and develop their own careers, while providing the high-quality early education that gives our youngest children the best start in life.

I support the ambitious expansion of childcare support for working parents that the Chancellor announced in his spring statement. It represents the single biggest investment in childcare this country has ever seen. It will make sure that parents are able to access the high-quality, affordable childcare that they need.

Today’s changes are just one part of our generally radical plans. By 2028, we expect to be spending more than £8 billion per year on early years education, which is double what we spend now. This will build on the 30 hours of funded childcare for three to four-year-olds that this Government introduced in 2017, extending the entitlement to eligible working parents of children aged from nine-months-old to when they start primary school. It will remove one of the largest hurdles that working parents face, and it will save parents £6,500 per year on average.

We have heard it loud and clear from the sector that getting the funding right is crucial. From this September, we will provide £204 million of extra funding for local authorities to increase the hourly rates that they pay providers, and we will make sure that rates continue to go up each year. That means that, from September, the average hourly rate for two-year-olds will go from £6 per hour to around £8 per hour, and the average rate for three to four-year-olds will be over £5.50 per hour. From 2024-25, the average rate for under-twos will be around £11 per hour. We will confirm the September rates for each local authority before the summer break. We will also ask the sector for its views on how we should distribute the funding for the new entitlements from April 2024, including the rules that local authorities will have to follow when distributing the funding to providers.

Of course, money is not everything. We also want to boost the early years workforce, who are so crucial to the success of nurseries across the country. There are multiple ways that we are doing that. I have heard from many people who manage nurseries that the way that we regulate staffing in settings is stopping providers from making the most effective use of their staff and giving their best people responsibilities that match their abilities.

Likewise, childminders and nurseries have been telling us about barriers to delivering the education and care that they want for children. That is why we have launched a consultation on proposed changes to the early years foundation stage requirements. Every single one of our proposals has come from conversations with people working in the sector. They will give settings more flexibility and help address some of those barriers, while maintaining high-quality provision and keeping our youngest children safe. Indeed, 96% of childcare providers in England were judged good or outstanding at their most recent inspection, which should give parents huge confidence in the standards of provision.

Some of the new measures will help free up staff to pursue professional development opportunities. We are investing up to £180 million in the early years education recovery programme, which offers a package of training, qualifications, expert guidance and targeted support for everyone working in the sector.

To train people up, we need to get more people in, so we are also going full steam ahead with a new national campaign early next year to promote the sector and support the recruitment and retention of talented staff. We will also consider how to introduce new accelerated apprenticeship and degree apprenticeship routes, so that new entrants can build careers at all levels of the sector.

I wish to reassure Members that we will work closely with the sector to deliver these historic reforms, just as we did on previous successful roll-outs of the 30 hours entitlement for three to four-year-olds, the 15 hours entitlement for two-year-olds from disadvantaged backgrounds, and the holiday activities and food programme. We cannot do this without early years providers, childminders and local authorities. We have a strong track record of working together to deliver childcare for parents, and I will be listening closely to them when considering our next steps.

Madam Deputy Speaker, I commend this statement to the House.

14:14
Stephen Morgan Portrait Stephen Morgan (Portsmouth South) (Lab)
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I thank the Minister for advanced sight of her statement.

The Government’s realisation of the importance of childcare remains striking, despite what the Minister says, for how long it has taken. Childcare is important for so many reasons—for giving every child the best start in life, for helping every parent to take on and succeed at the jobs they love, and for the foundation that it provides for success at school and throughout education. Above all, as my hon. Friend the shadow Secretary of State for Education has rightly said, childcare is important for supporting families to achieve and thrive together. Yet it is only now that the Government have arrived at the party. It is typical of this Government that they are not only late but focused on tweaks that they trumpet proudly but that do not deliver the scale of reform that is urgently needed.

The reforms reflect some of the changes to universal credit that the shadow Secretary of State for Work and Pensions has repeatedly called for. But, as he has also warned Ministers, they do not go far enough in giving people the chances and choices to go back to work at the scale necessary to tackle the challenges.

On childcare, the Government’s fixation on their broken hours model leaves them blind to the wider challenges around supply and demand of childcare and the extraordinary structure of the market for extra hours. The failure of that market is felt by every family. A decade of sticking-plaster politics from the Conservative party has caused them pain. But the announcement does nothing to ensure that childcare places are available in the cities, towns, and villages of our country. In some places, nursery and childcare spaces are outnumbered 10 to one by the children who need them.

I am delighted that the Minister has visited the seats of so many of her newest and presumably most nervous colleagues, but, as well as talking to parents who have found childcare, she would have done better had she spoken to parents who have not. The announcement does little to deliver the extra staff who will be needed to deliver the extra entitlements for parents that the Minister so enthusiastically announces. It does nothing to deliver the childcare places in which our children will be cared for and in which, we hope, they will learn in those extra hours and months of their lives. It is great to hear that the Minister will be listening to providers and local authorities, but listening is no substitute for action. It does little to retain or upskill the existing staff in the sector who are leaving in their droves for work that is more clearly valued. It does little to enrich childcare, to drive up quality, to make it a part of our education system, and to deliver a foundation for achievement and success right through school and life. It does little to deliver the flexibility that parents need not merely at work, but to get into work—to get the training and skills that they need and that our companies, communities and country need. In short, the announcement today is little more than a post-dated cheque. It is a promise of jam tomorrow—a promise that brings more questions than answers.

Madam Deputy Speaker, let me briefly set out a few questions in the hope that the Minister can address them in the debate today. When the 30-hours childcare entitlement is spread over a year, it is the equivalent of 22 hours a week. What steps is she taking, right now, to address the cliff-edge in costs between the Government-funded hours and the hours for which parents have to pay? Will she repeal the restrictions that councils face in making more childcare provision available? Is she genuinely confident that a new advertising campaign will be enough to attract workers to the sector? Is she aware that, for an increase in entitlements to childcare places to work, there must be more staff, and more settings, otherwise more parents will simply find that they cannot get the childcare that they need and to which they have entitlement? Finally, how does the Minister intend to ensure better uptake of childcare entitlements among eligible families given the complexity and bureaucracy of the existing system?

Claire Coutinho Portrait Claire Coutinho
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I thank the hon. Gentleman for his reply. Let me address some of the points that he raised in turn.

The hon. Gentleman talked about the ability of parents to look for childcare in the holidays. We have the £200 million holiday activities and food programme, which is particularly targeted at disadvantaged children. Last summer, more than 600,000 children accessed that. When we did our initial survey of that programme, about 70% of those children said that they had never been to anything like that before, which is a great sign of the opportunity that it is spreading. He talks about the work that we are doing with local authorities. To understand sufficiency and any challenges, we are contacting every single local authority as part of the roll-out.

The hon. Gentleman talked about getting more staff, and we have set out some flexibilities; I talked in my statement about the recruitment campaign we are doing next year. He talks about better uptake, but I would say that the uptake of the offer for three to four-year-olds is in the 90% range; for two-year-olds it is in the 72% range and tax-free childcare in recent years has gone from 172,000 up to 500,000. Yes, there is more to do, but we have very good uptake and any parent thinking about more childcare should look at our Childcare Choices website to see what they might be entitled to.

Overall, however, I get the sense from the hon. Gentleman’s comments that he did not listen to my statement. I talked about the £4 billion extra that is going into the sector, about plans for staff and for childminders and about routes for apprenticeships. I remind him that it was a Conservative Government that expanded the offer for three to four-year-olds and introduced the offer for two-year-olds, and now it is the Conservative Government making the single largest-ever investment into childcare.

What do we know about the Labour party policy? We know the Opposition wanted to do universal childcare, but they denied that last week. That was last week’s flip-flop—or I should say one of last week’s flip-flops. They have talked about means-testing childcare, which would mean taking away childcare from middle-class parents at a moment when we know that families are struggling with their finances. On the Government side we recognise that childcare is important for families and important for growth. Our childcare plans, as announced at the Budget, were called by the International Monetary Fund a serious point of growth in this country. We recognise that that is important.

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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I call the Chair of the Education Committee.

Robin Walker Portrait Mr Robin Walker (Worcester) (Con)
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I congratulate my hon. Friend on this important statement. I agree with her and, more importantly, I agree with the Treasury that childcare is worth investing in. I welcome the changes to universal credit, which I think will make a significant difference, but I particularly welcome the £204 million of extra funding for local authorities to distribute to providers; from what the Select Committee has heard from providers, that is urgently needed. We need to make sure we have capacity in the system to meet the challenge of providing all that additional childcare for families. I urge her to make sure that as much of that funding as possible is distributed, and to talk to local authorities about ensuring they do not top-slice it too aggressively. When the Government announced the £8 and £11 rates for the younger years, we heard from childminders in particular that they simply did not believe that they would receive that. We want a system in which the providers on the frontline of providing childcare get the funding that the Government announce.

Claire Coutinho Portrait Claire Coutinho
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We have a rule at the moment that local authorities have to pass on 95% of the funds that they receive, and our returns show that they pass on 967%. However, as the years go on, with the amount of extra money that we have put into the system, we can definitely look at those figures and at what can be done. Some of that will be set out in our consultation before the summer.

Ashley Dalton Portrait Ashley Dalton (West Lancashire) (Lab)
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The Minister told us about several childcare providers that she has spoken to, but she has clearly not spoken to Munchkins Village Nursery in Burscough in my constituency. The nursery got in touch with me to say that, while the help for parents is very welcome, the Government have by their own admission underfunded the sector to the tune of about one third of the funding promised—about £2 billion—and the nursery staff believe that the sector is in financial risk. Does the Minister appreciate that, regardless of any funding for parents, they simply cannot find the childcare that they need?

Claire Coutinho Portrait Claire Coutinho
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I recognise that it has been a challenging few years for the sector. In this piece of work we have surveyed about 10,000 providers, we have a providers’ finance report and we have surveyed about 6,000 parents, so we used a very data-driven estimate to come up with the figure. We will be consulting on the funding before the summer and, as I said, there will be funding coming in September before any expansion of the entitlements, which start in April next year. There will be additional money next year and by 2027-28 we will be spending an additional £4 billion that will be distributed via local authorities to those settings.

Andrea Leadsom Portrait Dame Andrea Leadsom (South Northamptonshire) (Con)
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I congratulate my hon. Friend on such an excellent statement today—I think the shadow Minister needs to read it, because he clearly did not listen to it.

My hon. Friend has clearly thought about the need for top-quality childcare, which for many young children is vital when their home life is perhaps not all it could be. One thing she has not talked much about is the provision of new workforce. Can she comment a bit more on her consultation on changing the requirement for high-level qualifications to a requirement for qualifications that are more appropriate to providing empathetic and supportive care?

Claire Coutinho Portrait Claire Coutinho
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I know my right hon. Friend is incredibly passionate about this area, and I share her passion. In the consultation we have set out some flexibilities after talking to the sector; an example of that would be relaxing some of the requirements around having level 2 maths for level 3 qualifications, which we know has been a barrier for some people. We are looking at all kinds of flexibilities that mean we will get the right staff at every stage to make sure that our children get the right education.

Tim Farron Portrait Tim Farron (Westmorland and Lonsdale) (LD)
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The Minister would have been very welcome in the north of England, particularly in Westmorland. This announcement is welcome in many ways and will help many parents in my constituency who cannot afford to work at the moment. It is a good step forward. However, many childcare providers—probably the majority in my constituency—are linked to the primary school in that community, and primary schools have never faced such awful financial circumstances as they do now. I have visited many schools in Westmorland the last few weeks, from Appleby to Windermere, from Kendal to Brough, from Shap to Witherslack and many others. They all tell me that the deserved pay rises for teachers and other staff are unfunded by Government and that energy costs, which they have seen go through the roof, are also largely unfunded, leaving many schools in deficit and having to shed staff. All that undermines their ability to provide childcare and other forms of education. What has the Minister to say to our local schools in Westmorland, which are desperate for her support so that they can carry on providing education and childcare?

Claire Coutinho Portrait Claire Coutinho
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We are taking schools funding to a historic real-terms high. We are also making the single largest ever investment in childcare. I recognise that it has been a difficult time for public sector services, and the most important thing we can do is to grip inflation and make the pound go further, but overall we are putting record funding into both areas.

John Redwood Portrait John Redwood (Wokingham) (Con)
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We do need more childcare, and I wish the Minister every success with these policies, but we are going to need a lot more people, businesses and other institutions to come forward to provide that care. Will the whole Government do more? Can we get rid of IR35, a tax on the self-employed? Can we raise the value added tax threshold for small business? We must look at making childcare more worthwhile, because we need the teachers and the childcarers.

Claire Coutinho Portrait Claire Coutinho
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I thank my right hon. Friend—I have just had a bit of a flashback to my days as a Treasury Parliamentary Private Secretary. He is absolutely right that the supply of childcare will be a really important part of growth, as has been reiterated by the IMF and others.

Claire Hanna Portrait Claire Hanna (Belfast South) (SDLP)
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Progress in this area is very welcome and necessary, but parts of the statement will be dispiriting for families in Northern Ireland, as we fall even further behind. Can the Minister confirm that Northern Ireland will receive commensurate funding through the Barnett formula, and have she and her officials given any thought to how the new regulations and resources might be applied in Northern Ireland? Furthermore, given the extremely austere budget settlement in Northern Ireland, does she acknowledge that even where there are improvements in childcare, many children will be going on to increasingly degraded and under-resourced primary schools?

Claire Coutinho Portrait Claire Coutinho
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The money will be passed on in the normal way across the education budget. We regularly meet Education Ministers from the devolved Administrations, and the Secretary of State held such a meeting, I think from memory, in early June.

Steve Brine Portrait Steve Brine (Winchester) (Con)
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An excellent statement—on behalf of nurseries in Winchester and Chandler’s Ford, I thank the Minister. The recruitment drive in particular is much needed. However, it would be easier to do that, and to retain staff, if we could give staff a pay rise. The sector tells my all-party parliamentary group on childcare and early education—I thank the Minister for coming to address us—that if it were not paying business rates, that would be a lot easier. School-based settings do not pay them, but the rest of the private, voluntary and independent sector does. I realise that that is a matter for Treasury, but will she please take that away and look at it again? That would make a her a true hero in the sector when she continues her very welcome visits.

Claire Coutinho Portrait Claire Coutinho
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I will of course look at everything we can do to support all settings. As part of the work we did to assess costs, we looked at other costs, including things such as business rates, to assess the level of funding we should give for the hourly rates, but of course I will always look at anything I can do to support nurseries.

Munira Wilson Portrait Munira Wilson (Twickenham) (LD)
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Looking at the existing childcare entitlements for two, three and four year olds, the Early Years Alliance and the Women’s Budget Group estimate that the current offer falls short by about £1.8 billion—and that is even before we expand the offer, as was announced in the spring Budget. The Government are providing only an extra £204 million this year and £288 million next year, before we expand the hours. That clearly falls well short. There is no point expanding the hours if the providers are not there, so could the Minister explain what she is doing to ensure that early years providers actually remain financially viable?

Claire Coutinho Portrait Claire Coutinho
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As I said, it has been a challenging time for providers, but the work we have done to come up with the hourly rate has been based on a lot of evidence. I do not recognise that figures that the hon. Lady talks about. As I said, we surveyed 10,000 providers and 6,000 parents, and looked at providers’ finance reports, to look deeply at the costs and come up with the hourly rate. I continue to talk to all providers as we continue the expansion.

Justin Tomlinson Portrait Justin Tomlinson (North Swindon) (Con)
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It is a tribute to the Minister that she secured the single largest ever increase in funding in this important area and that the Labour Opposition could not even be bothered to turn up today. She will know at first hand from visiting Imagination nursery, which is now an outstanding provider, that it has the sort of provision that we want to expand. For it to have the confidence to do so, it needs certainty on funding to recruit and retain staff and secure additional premises. Will she keep pushing for as much advance clarity and certainty as possible so that all children can benefit from this wonderful announcement?

Claire Coutinho Portrait Claire Coutinho
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I absolutely will. It was a joy and a delight to visit Imagination nursery, which does outstanding work, and I congratulate it on its recent grade. I will take my hon. Friend’s point on board.

Siobhan Baillie Portrait Siobhan Baillie (Stroud) (Con)
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This is the first time in history that a Prime Minister and Chancellor of the Exchequer have put the early years at the centre of the country’s growth strategy. I note that an International Monetary Fund analyst singled it out in saying that

“supply-side measures, notably the increase in childcare support…should have a positive effect on medium-term growth”,

so that is absolutely welcome.

I cannot thank the Minister enough for visiting BarBar Nursery, Allsorts, and Curious Caterpillars Day Nursery. In our work with Onward, we have called for a national campaign on recruitment. If there is any possibility of that happening this year rather than next, I would like a commitment from the Department that it will get a wriggle on, because that is important.

Will the Minister work with the Local Government Association to have a good look at what different councils are doing, not only with the money flowing down from Government but on how often childminders are paid? I know of childminders who are paid only about three times a year. Not many of us could cope with that type of cashflow.

Claire Coutinho Portrait Claire Coutinho
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As always, my hon. Friend makes excellent points on this matter. I will absolutely consider her point about childminders and will ensure that I continue to talk to her. She has been incredibly helpful throughout this process and in securing the funding.

David Johnston Portrait David Johnston (Wantage) (Con)
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I warmly welcome my hon. Friend’s statement, which will help some of those on the lowest incomes either to take up work or to take on more work. She will recall that when I had the pleasure of taking her to a nursey in Didcot, it raised the varying rates that nurseries are paid by local authorities across the country for the same work. Does she agree that, although the Government’s largest single investment in childcare ever is welcome, it is important that local authorities pay a broadly comparable amount of money to providers?

Claire Coutinho Portrait Claire Coutinho
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I am grateful to my hon. Friend for taking to me to Bright Horizons in Didcot, which was a useful visit. Local authorities have different rates. We will set out funding rates before the summer, and will consult on them. We take different costs across the country into account, but he makes an interesting point.

Sara Britcliffe Portrait Sara Britcliffe (Hyndburn) (Con)
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I warmly welcome the Minister’s announcement and thank her for all the work that she has done for childcare providers. I was going to raise the point made by my hon. Friend the Member for Winchester (Steve Brine) about business rates. Will the Minister explain what help she is giving to local authorities to help providers deliver the expanded childcare offer to parents?

Claire Coutinho Portrait Claire Coutinho
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At the moment, the way the policy works is that providers have to pass on at least 95%, and can keep 5%, of the funding rates that they are given. Most pass on more—from our returns, most pass on 97%—but they can use the additional money for the administration of payments and such.

Simon Fell Portrait Simon Fell (Barrow and Furness) (Con)
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May I congratulate my hon. Friend on her statement and on the hard work she has put in to get us here? I held a roundtable of early years providers in Barrow a few weeks ago. The issue that came up time and again was that they are losing good staff—staff the kids like and the parents get on with—because of the qualifications requirements for English and maths. Can the Minister confirm whether part of the consultation will look at that? May I invite her to come and visit Cheeky Monkeys Childcare and some of the other providers in Barrow at some point in the future?

Claire Coutinho Portrait Claire Coutinho
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My hon. Friend is absolutely right. That was one of the things that I heard from the sector as well, particularly on the qualification barriers. I can confirm that we are consulting on that—particularly on the maths point—in the flexibilities consultation that we set out at the beginning of the summer. I would be delighted to visit him.

Points of Order

Wednesday 28th June 2023

(1 year, 7 months ago)

Commons Chamber
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14:35
Peter Bottomley Portrait Sir Peter Bottomley (Worthing West) (Con)
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On a point of order, Madam Deputy Speaker. In but 10 minutes time, we will move on to consideration of the Holocaust Memorial Bill. It is very important in my view that the Minister and the House should have available on the Table the “National Memorial and Learning Centre: Search for a Central London site” document issued by the UK Holocaust Memorial Foundation in September 2015. May I ask you to convey that to those on the Treasury Bench so that that document is available to Ministers and the House?

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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I am grateful to the Father of the House for his point of order and for giving me notice of it. I have paid careful attention to the point that he made. I can assure him that the Vote Office has printed from the internet and prepared copies of the document that he mentions. I entirely agree with him that it is important that the House be well educated on the facts of the matter that we are about to discuss, so I have myself obtained some copies. I will give one forthwith to the Whip to give to the Minister, and one to the Labour Whip to give to the shadow Minister. I hope that the Father of the House will thus be satisfied that the document that he considers very important is fully available. I do not have copies here for everyone, but they are available in the Vote Office.

Luke Pollard Portrait Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
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On a point of order, Madam Deputy Speaker. On 12 August 2021, seven people were shot in Keyham and Ford, and we lost five of them. The subsequent inquest identified a catalogue of serious failings in our police, and made recommendations to the Home Office. On 21 February, the Minister for Crime, Policing and Fire, the right hon. Member for Croydon South (Chris Philp), confirmed to the House that he had asked the coroner for a delay in responding to the inquest’s findings until 30 June, and said that

“no doubt there will be a statement to the House”—[Official Report, 21 February 2023; Vol. 728, c. 158]

at that point. That is tomorrow. The families of the victims are desperate to know how such tragedies can be prevented in future. Can you advise me on whether you have heard from the Home Office that an oral statement will be made to the House, and what more can be done to ensure that any measures announced as a result of the inquest receive proper parliamentary scrutiny so that no tragedy like the one we saw in Plymouth can ever happen again?

Baroness Laing of Elderslie Portrait Madam Deputy Speaker
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I thank the hon. Gentleman for his point of order. I can well understand his consternation. The matter to which he refers was truly a tragedy, and there are families who must be suffering dreadfully because of it. The only answer that I can give him from the Chair is that I have no notice of the intention of any Minister to make such a statement, but I am sure that those on the Treasury Bench will have heard what he has said, and I sincerely hope that his concerns will be conveyed to the appropriate Minister. Of course, I hardly need remind him that there are various mechanisms that he can use to raise this matter substantively on the Floor of the House, and I am sure that he will go to the Table Office to see what he can do.

Global Climate and Development Finance

A Ten Minute Rule Bill is a First Reading of a Private Members Bill, but with the sponsor permitted to make a ten minute speech outlining the reasons for the proposed legislation.

There is little chance of the Bill proceeding further unless there is unanimous consent for the Bill or the Government elects to support the Bill directly.

For more information see: Ten Minute Bills

This information is provided by Parallel Parliament and does not comprise part of the offical record

Motion for leave to bring in a Bill (Standing Order No. 23)2.38 pm
Liam Byrne Portrait Liam Byrne (Birmingham, Hodge Hill) (Lab)
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I beg to move,

That leave be given to bring in a Bill to require the Secretary of State to publish proposals for increasing the on-lending of UK Special Drawing Rights via the IMF, for transferring the capital returned to the UK by the European Investment Bank to the World Bank, and for increasing the UK’s support for the African Development Bank, for the purpose of reducing debt burdens and the cost of capital and contributing to the implementation of the Paris Agreement on climate change.

I start by declaring an interest as chair of the international Parliamentary Network on the World Bank and International Monetary Fund, which brings together 2,000 parliamentarians from 140 countries to argue for the changes that I will put before the Government today.

If anything, this Bill is overdue. Eight years ago, the world came together to agree an ambitious plan to spread freedom, security and justice to every corner of the planet. The sustainable development goals agreed in New York in September 2015 offered hope, progress and a better life to billions of people. Months later, we came together again, not in New York but in Paris, to agree the climate change agreement that would help us guarantee that there would be a planet left on which to make those goals a reality.

However, the truth is that such ambitions are in deep trouble. There are just 10,000 days to go before the Paris climate agreement deadline. A perfect storm is now threatening the world’s potential to deliver on the goals that we agreed just eight years ago. In fact, seven giants now stand in the way of progress: want, hunger, disease, lost learning, conflict, debt and climate change. They are a cascading, connected set of challenges with lethal force.

Extreme poverty has risen for the first time this century, with 600 million people now forecast to be living on less than $2.15 a day by 2030. Globally, 200 million people now wake up without enough to eat, and 300 million children will need humanitarian assistance this year. On current trends, we will not meet our goal of ending hunger by 2030. That scarcity is fuelling violence. About half of the world’s extreme poor are expected to live in conflict-affected areas by 2030. In turn, those conditions are threatening our ability to make good children’s lost learning during covid, which could cost $21 trillion over the course of their lives. Poorer nations have now exhausted their reserves. In fact, debt in developing countries is now the highest it has been for 50 years, and levels are rising.

Looming deadly over all of that are the changes in our climate and the chaos of extreme weather. Across half the world and most of Africa, the seasons are simply no longer predictable. The sun which once brought life now brings death because it burns so ferociously. The rains, when they fall, fall with such force that life-giving water floods and destroys the land it once nourished. Against that murderous maelstrom, low and middle-income countries need to mobilise some $6 trillion between now and 2030 to hit their Paris climate targets.

Poor countries did not cause climate change, but the world’s poorest are somehow expected to pick up the pieces. We cannot go on like this and, as President Macron said in Paris last week, we must not go on like this. If the world fails to act—if we fail to act—all of us may fall prey to those who preach that the rules-based order is not fit for purpose. New institutions outside the World Bank, the IMF, and perhaps even the United Nations, will come forward beyond our influence, so we must change.

That is why my Bridgetown Bill calls on the Government to lead, to take the initiative and to help champion the agenda set out with such passion, force and eloquence by Prime Minister Mia Mottley. The whole House should salute her work. She has helped to galvanise the biggest shake-up of global development finance since the World Bank and IMF were created in 1944. Her Bridgetown initiative is a pragmatic collection of ideas with radical implications for the World Bank’s mission and model, the resources deployed by the IMF, and the goal that richer countries must step up to and meet.

Reforms are under way and the agenda is moving. I am grateful for the Government’s support, such as it is, but our best estimates are that the Bretton Woods institutions must at least triple the finance that they supply. That is why the UK should lead and help to champion this debate internationally. The Bill is needed because it is a matter of regret that the once-proud record of our country—once lauded as a leader in global development—is now much reduced. It is a matter of regret that the Prime Minister found time to enjoy the company of Mr Murdoch in London last week and declined to join President Macron in Paris, with 50 other leaders from around the world. It is a matter of regret that the UK is not leading the debate on green development finance, but lagging behind.

Important steps forward were taken last week in Paris. The World Bank, under its brilliant new president, Ajay Banga, committed to an expanded crisis toolkit, replete with new types of insurance to backstop development projects, and crucially, to a pause in debt repayments so that countries can focus on what matters when crisis strikes without worrying about the bill. Kristalina Georgieva, the head of the IMF, gave us some reassuring news about how we may now be on track to meet the target of sharing $100 billion in special drawing rights. However, there is still a gap in what needs to be accomplished, which is why the UK needs to rediscover the lost art of leading, and that is what this Bill proposes.

First, we should be increasing the on-lending of special drawing rights and following Japan’s lead. We have £19 billion-worth of new special drawing rights, and they are sitting there gathering dust in the exchange equalisation account. We have said that we will share 20%, but Japan said it will share 40%. If we match that target, we could supply nearly £4 billion of extra resource to the poorest countries. I have been asking Foreign Secretaries and Treasury Secretaries for two years why we are not matching the ambition of countries such as Japan and, frankly, I am yet to receive a good and coherent answer.

Secondly, we should be using some of those special drawing rights to support the work of the African Development Bank. If we lent £500 million-worth of special drawing rights, the ADB could quadruple it in new concessional lending to countries across Africa.

Thirdly, we should be helping to build a bigger World Bank. The World Bank remains the most efficient and effective way of mobilising development finance. A $20 billion increase in its capital base would unlock $200 billion in concessional lending over the course of the decade. If the UK contributed to that kind of increase, our share might be about $1 billion—$200 million a year over five years—but we could step up to that challenge. We will get £3.5 billion back from the European Investment Bank—I suppose some in this House would call that a Brexit dividend—between now and 2030. We should recycle that money into the World Bank to help it radically expand lending to some of the world’s poorest countries.

Nobody can be more eloquent in debates such as this than a hungry child, so let me conclude with the words of a young boy. Lantano Moriaso is a 10-year-old at the Kideket Primary School in rural Narok County, Kenya. I had the privilege of meeting him at his school with the hon. Member for Erewash (Maggie Throup), and I want to thank the Esmée Fairbairn Foundation, World Vision and the Coalition for Global Prosperity for helping to make that visit possible. This is what Lantano had to say:

“I like coming to school because I have many friends who I play with and learn together. My teachers always teach us how to read, write and many other new things. They are good to us.”

But he also says:

“Sometimes we eat once in a day because there is no food and we don’t have enough water to drink. Despite all these challenges we still come to school to learn.”

The children of that school have the same dreams as our children. They want to be lawyers, doctors and teachers, and some—so help them—want to be politicians. Yet such is the drought, such is the poverty, and such is the desperation that many families struggle to survive. Girls as young as 11 are sent to get married, and boys are sent to work even younger. Children are not in school because they are hunting for water all day. If we do not step up and solve these challenges, there will be not just an opportunity gap for those children, but an opportunity cost for all of us. That is a price we cannot afford, so I call on His Majesty’s Government to act.

Question put and agreed to.

Ordered,

That Liam Byrne, Sarah Champion, Sir Stephen Timms, Tony Lloyd, Sir George Howarth, Clive Efford, Debbie Abrahams, Mr Virendra Sharma, Mike Amesbury and Patrick Grady present the Bill.

Liam Byrne accordingly presented the Bill.

Bill read the First time; to be read a Second time on Friday 24 November, and to be printed (Bill 336).

Holocaust Memorial Bill

2nd reading
Wednesday 28th June 2023

(1 year, 7 months ago)

Commons Chamber
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Second Reading
Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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The reasoned amendment in the name of Sir Peter Bottomley has been selected.

14:50
Michael Gove Portrait The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
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I beg to move, That the Bill be now read a Second time.

This short Bill serves a vital purpose. It ensures that the undertaking that this Government have given, supported by the official Opposition and all parties in this House, is honoured, and that a fitting, Government-led national memorial and learning centre to honour the 6 million who died in the holocaust is established in a suitable, prominent centre at the heart of our capital city.

I know that everyone in this House recognises that the holocaust was a unique evil. Genocide—the greatest crime that humanity can inflict on other human beings—has been a dark feature of our shared history since the dawn of time, but the holocaust stands out in scale and in horror. It was a unique desire on the part of a nation to wipe out an entire people. Mechanised cruelty executed on a scale that could never have been imagined beforehand meant that, from the Pyrenees to the Urals, the Nazi war machine was bent on the elimination of an entire race. I think all of us, whatever our views on the Bill and all of the inevitable details that follow in making sure that an appropriate memorial is sited, will share a desire to ensure that the commitment “Never again” is in all our hearts.

John Baron Portrait Mr John Baron (Basildon and Billericay) (Con)
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I fully concur with what my right hon. Friend has just said, and I am fully supportive of a national holocaust memorial, but the reason I will not be supporting the Government in the passing of this Bill this evening—if it is passed—is that there appears to have been a complete lack of public consultation. Westminster City Council was against it, and it seems to me as though this has been imposed from above by Government. That is not what we do in this country: we need a much wider consultation. That is why many prominent Jews, including Malcolm Rifkind, former rabbis and so forth, have signed the open letter arguing against the siting of the memorial in Victoria Tower gardens.

Michael Gove Portrait Michael Gove
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My hon. Friend makes an important point. There has been controversy and there has been opposition to the site of the memorial, but it is only fair to say that the decision to site it in Victoria Tower gardens has followed consultation. There was extensive consultation on this project, starting with Prime Minister David Cameron’s holocaust commission in 2014, which received almost 2,500 responses. Following the announcement in January 2016 that Victoria Tower gardens had been identified as the most fitting site, an international design competition was then held to select a suitable design team.

Peter Bottomley Portrait Sir Peter Bottomley (Worthing West) (Con)
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I do not put this as a point of argument, but as something that I hope my right hon. Friend is aware of: when the UK Holocaust Memorial Foundation put out its specification in September 2015—a copy of which, I think, is available to my right hon. Friend—it said that it wanted various criteria to be taken into account, including a possible location in central London, which on page 10 of the specification is illustrated as west of Regent’s Park, east of Spitalfields and down from the Imperial War Museum. In the four or five months between September 2015 and January 2016, there was no public consultation about the site at all. I do not want my right hon. Friend to feel that he needs to answer that point now, but if he could say before the end of the debate what consultation there was between September 2015 and January 2016, that might be helpful to the House.

Michael Gove Portrait Michael Gove
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The consultation was undertaken after the announcement of the winning design, and from January to September 2017 the public were invited to comment on the shortlisted designs, which were exhibited in Parliament and across the United Kingdom. Of course, as the Father of the House will know, there was a planning inquiry, and during that inquiry extensive material about the memorial and the learning centre was published and shared. Interested parties were given an opportunity to raise concerns and objections, and objectors had the opportunity to make their case to the independent planning inspector at that point.

However, I stress that the decision on the site was not taken by Government Ministers, and—in respect of the understandable concerns raised by my hon. Friend the Member for Basildon and Billericay (Mr Baron)—it was not imposed by the Government themselves. The decision was arrived at by the independent Holocaust Memorial Foundation, with representations from different political traditions, including the right hon. Ed Balls and the right hon. Lord Pickles; the Chief Rabbi; the very distinguished president of the Community Security Trust, Gerald Ronson; and a host of others from civil society. While my hon. Friend is right to say that some people within the Jewish community have expressed concerns, the overwhelming view of the Jewish community and its representative organisations is that this is the right memorial in the right location, and that we must press on.

Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)
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I am extremely grateful to the Secretary of State for giving way. On the location, what assurances can he give that the Bill does not undermine the environmental protections that Victoria Tower gardens currently enjoy?

Michael Gove Portrait Michael Gove
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Victoria Tower gardens will continue to be a park with public access—only some 7.5% of the location of the park will be occupied by the memorial. Of course, when David Cameron initiated the commission, it was made clear that any memorial should be suitably striking, suitably prominent, and in a location that has political, cultural, emotional and historical resonance, which it will be.

Andrea Leadsom Portrait Dame Andrea Leadsom (South Northamptonshire) (Con)
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When I was Leader of the House of Commons, between 2017 and 2019, I received so many representations personally from people who made the case that there are now so few holocaust survivors still living that we simply have to get on with this. As my right hon. Friend said, that consultation began under David Cameron’s leadership, which is now a long time in the past. If we are going to do this, and it needs to be in a prominent place to show our respect and commitment to remembering that horrific time, we must get on with it.

Michael Gove Portrait Michael Gove
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I am very grateful to my right hon. Friend, who was a brilliant Leader of the House, for making that point so clearly. As she reminds us, the holocaust is moving from living history to history. The voices of those who are survivors and witnesses are fading, and we must ensure that their example endures.

Just a fortnight ago, Ben Helfgott, an ambassador for the Holocaust Educational Trust, sadly passed away. Ben was a holocaust survivor who went on to represent this country in weightlifting at the Olympics. Thanks to the Holocaust Educational Trust, I had the privilege of meeting Ben and hearing his testimony. I do not think any of us who have heard the testimony of any of the witnesses and survivors for whom the Holocaust Educational Trust has provided a platform will forget that—there is nothing as powerful as hearing from those who lived through and survived the hell of the holocaust. As Ben and other survivors pass on, it is our duty and our responsibility to move as quickly as we can to ensure that the memorial they fought for and wished to see is established suitably.

Of course, one of the other reasons why it is so important that we move quickly and show resolution is that not only are voices fading, but antisemitism is rising. In 2022, the last year for which we have figures, the Community Security Trust recorded 1,652 antisemitic incidents. In the year before that, the number of antisemitic incidents in this country had reached a record high. As Jonathan Sacks