All 25 Parliamentary debates in the Commons on 27th Feb 2024

Tue 27th Feb 2024
Tue 27th Feb 2024
Tue 27th Feb 2024
Tue 27th Feb 2024

House of Commons

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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Tuesday 27 February 2024
The House met at half-past Eleven o’clock

Prayers

Tuesday 27th February 2024

(9 months, 3 weeks 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]

Speaker’s Statement

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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Before we begin today’s proceedings, I should like to express my sadness on behalf of the House at the death of two former Members.

Ronnie Campbell served as Member for Blyth Valley from 1987 to 2019. He was a kind and generous man, well liked in all parts of the House, and a powerful advocate for his constituents and his principles.

There is also the tragic news of the death of Lord Cormack, who was a Member of this House for 40 years, from 1970 to 2010. He was an eminent historian of Parliament, as well as editor and then president of The House magazine.

They were two very different characters who were united by a strong duty to their constituents and a firm commitment to their principles. They each made their mark on this House in their own way and we will miss them very much. I am sure the thoughts of the whole House are with their families and friends.

Oral Answers to Questions

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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The Secretary of State was asked—
Chris Stephens Portrait Chris Stephens (Glasgow South West) (SNP)
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1. What recent assessment her Department has made of the potential merits of introducing a social energy tariff.

Chris Law Portrait Chris Law (Dundee West) (SNP)
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23. What recent assessment her Department has made of the potential merits of introducing a social energy tariff.

Claire Coutinho Portrait The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
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Energy prices are now at their lowest level for two years, with a typical bill set to drop by £238 by April. Our cost of living package totals over £104 billion, or £3,700 per household on average, over 2022 to 2025. We are supporting those most in need, with millions of vulnerable households receiving up to £900 in cost of living payments.

Chris Stephens Portrait Chris Stephens
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Some of us believe in preventative spending. A House of Commons Library briefing last year estimated that the annual cost to the national health service of treating illnesses associated with living in cold or damp housing is £1.4 billion. When wider societal costs are considered, that figure rises to £15.4 billion. Will the Secretary of State confirm whether the introduction of a social energy tariff would cost less than £15.4 billion?

Claire Coutinho Portrait Claire Coutinho
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A social tariff means lots of things to different people, but we are supporting vulnerable people with the cost of their energy bills. We supported them last winter, paying on average a half of everybody’s energy bills, and we have made additional payments of £900 to support people. Since 2010, we have increased the proportion of homes that are energy-efficient and insulated to 50%, up from 14%.

Lindsay Hoyle Portrait Mr Speaker
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I call Chris Law—not here.

Virginia Crosbie Portrait Virginia Crosbie (Ynys Môn) (Con)
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On energy tariffs, what assessment has the Secretary of State made of the merits of providing residents who are local to energy and nuclear plants with discounts on their energy bills?

Claire Coutinho Portrait Claire Coutinho
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I thank my hon. Friend for her doughty campaigning for nuclear—she is our very own atomic kitten. We are very positive about nuclear and have set out plans for the largest expansion of nuclear for 70 years. Overall that will be a good thing for people’s energy bills and the energy security of this country.

Kate Hollern Portrait Kate Hollern (Blackburn) (Lab)
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2. What estimate she has made of the number of households in fuel poverty in winter 2023-24.

Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
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6. What estimate she has made of the number of households in fuel poverty in winter 2023-24.

Marion Fellows Portrait Marion Fellows (Motherwell and Wishaw) (SNP)
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8. What steps she is taking to support households in fuel poverty during winter.

Liz Twist Portrait Liz Twist (Blaydon) (Lab)
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10. What estimate she has made of the number of households in fuel poverty in winter 2023-24.

Afzal Khan Portrait Afzal Khan (Manchester, Gorton) (Lab)
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13. What estimate she has made of the number of households in fuel poverty in winter 2023-24.

Amanda Solloway Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
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Fuel poverty is a devolved matter. The latest figures, published on 15 February 2024, showed that 3.17 million households were in fuel poverty in 2023. The Government continue to deliver financial support to low-income homes and vulnerable households through the warm home discount scheme and cost of living payments.

Kate Hollern Portrait Kate Hollern
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As I am sure you are aware, Mr Speaker, the cost of living crisis is far from over for constituents in our area. The Government’s latest energy efficiency policy, the Great British insulation scheme, was supposed to insulate 100,000 homes a year, but so far just 3,000 families have been helped in eight months, including only 35 homes in Lancashire and just six in Blackburn. Will the Minister explain why currently it will take 60 years to meet their three-year target?

Amanda Solloway Portrait Amanda Solloway
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Energy efficiency is incredibly important to this Government and we have many schemes available. The Great British insulation scheme alone has committed £592 million.

Paul Blomfield Portrait Paul Blomfield
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I hear what the Minister says about the Great British insulation scheme. It comes after the green deal and the green homes grant, but frankly it looks like another failure. There are 1.4 million people living in South Yorkshire, but just 137 of their homes have been upgraded under the GBIS. My constituents want their bills cut, emissions reduced and their homes insulated, but Government incompetence is standing in the way. When will the Minister get a grip?

Amanda Solloway Portrait Amanda Solloway
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We are spending £6 billion in this Parliament and a further £6 billion up to 2028 to make buildings, including private rented properties, cleaner and warmer. That is in addition to the estimated £5 billion that will be delivered for ECO4—the energy company obligation—and the Great British insulation scheme up to March 2026.

Marion Fellows Portrait Marion Fellows
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Over the past two years, my constituents in Motherwell and Wishaw, as well as the disability groups that I engage with, have told me harrowing tales of dire fuel poverty and energy debt, while the energy giants post record profits. Even with the new price cap, National Energy Action estimates that there will be 6 million UK households in fuel poverty, with energy debt sitting at £6 billion. After April, the only support available will be the £150 warm home discount, which has barely been increased in a decade. When will the Government take meaningful action and finally consult on an energy social tariff?

Amanda Solloway Portrait Amanda Solloway
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Last winter, this Government delivered £40 billion for households and businesses. We also have the warm home discount, the winter fuel payment and the disability cost of living payment. We are committed to ensuring that affordability is top of our list in relation to energy security.

Liz Twist Portrait Liz Twist
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We have had 14 years of fiasco after fiasco with energy saving schemes from this Government. Frankly, my constituents are fed up with it. In Gateshead, just seven homes have been upgraded under the Government’s latest energy efficiency scheme. Can the Minister say why this is such a disaster and why progress is so slow?

Amanda Solloway Portrait Amanda Solloway
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We continue to drive energy efficiency improvements for lower-income and fuel-poor households, through schemes including the energy company obligation, the social housing decarbonisation scheme and the homes upgrade grant.

Afzal Khan Portrait Afzal Khan
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A recent report from the Energy and Climate Intelligence Unit exposes the Government’s record on insulation and says that the Government’s false claims about their success mostly involved taking credit for schemes that were a legacy of the last Labour Government. A record low of around 80,000 measures were installed in total under the Government’s programmes in 2022. Is not the truth that this Government are failing millions of people in fuel poverty?

Amanda Solloway Portrait Amanda Solloway
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This Government have provided unprecedented support for people in this country. I have regular meetings with stakeholders, charities and different organisations. Undoubtedly, we are making sure that people have support through, as I have mentioned, the warm home discount, the energy price cap and lots of other payments, such as the cost of living payment of £900 per annum.

Andrea Jenkyns Portrait Dame Andrea Jenkyns (Morley and Outwood) (Con)
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Talking of fuel poverty, the boiler tax results in consumers paying an extra £150 when they purchase a new boiler. Does the Minister agree that it is now time to ditch these unworkable and unaffordable net zero policies and let the British people decide how to heat their homes and what cars to drive so that they can keep more of their own money?

Amanda Solloway Portrait Amanda Solloway
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No decision has yet been taken on that, but we have a commitment to ensure that we get the very best deal for all our constituents.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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A year ago, the then Energy Secretary said that if suppliers had wrongly installed prepayment meters in any home, they would have to recompense their customers for the way they had behaved. One year later, can the Minister tell the House how many individuals who had a prepayment meter wrongly installed have had compensation, how many are yet to receive it and, of those still waiting, when they will get the compensation?

Amanda Solloway Portrait Amanda Solloway
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One thing on which we can all agree across the House is that it was absolutely abhorrent that people had prepayment meters forced on them. We are working our way through the compensation, but I can assure Members that we are doing everything we can to ensure that, when prepayment meters are installed, we are doing exactly the right thing to make sure that everybody is kept safe.

Kerry McCarthy Portrait Kerry McCarthy
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I asked the Minister three questions but did not get an answer to any of them. Perhaps she can put the figures in the House of Commons Library, because she clearly does not have a clue what they are.

More than 3 million households are in debt to their energy suppliers and almost 10 million households are living in cold, damp and poorly insulated homes. The Great British insulation scheme is proving to be a great Tory insulation fiasco. Will the Minister tell me why the insulation scheme is proving to be such a disaster?

Amanda Solloway Portrait Amanda Solloway
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We have taken great steps to support people. For example, last winter we gave unprecedented support to households and businesses. Of course, debt is a major concern, and I have regular meetings with stakeholders to ensure that we are doing the very best not only to get people out of debt, but to prevent them getting into debt in the first place.

Kevin Foster Portrait Kevin Foster (Torbay) (Con)
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3. What recent discussions she has had with Cabinet colleagues on delivering new nuclear power stations.

Trudy Harrison Portrait Trudy Harrison (Copeland) (Con)
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12. What steps she is taking to increase nuclear energy capacity.

Karl McCartney Portrait Karl MᶜCartney (Lincoln) (Con)
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18. What steps she is taking to increase nuclear energy capacity.

Siobhan Baillie Portrait Siobhan Baillie (Stroud) (Con)
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24. What steps she is taking to increase nuclear energy capacity.

Andrew Bowie Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
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The civil nuclear road map reconfirmed the Government’s ambition to deploy up to 24 GW of nuclear power by 2050. It sets out plans to make investment decisions about 3 GW to 7 GW every five years between 2030 and 2044.

Kevin Foster Portrait Kevin Foster
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I thank the Minister for his answer. New nuclear holds the key not only to ensuring energy security but to creating thousands of high-skilled, well-paid jobs in the areas where it is located, but too often the planning process can take years, even on sites where there is long-established nuclear use. Has he discussed with ministerial colleagues what can be done to shorten that process significantly?

Andrew Bowie Portrait Andrew Bowie
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I can confirm that I have had those conversations, and the Government are exploring the potential for reducing regulatory burdens for the consenting and licensing of new nuclear power stations without impacting safety, security or environmental protections. We are also looking to introduce a range of other streamlining measures, including the action plan for reform, which sets out reforms to the nationally significant infrastructure projects regime.

Trudy Harrison Portrait Trudy Harrison
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Will the Minister confirm that Nuclear Decommissioning Authority-owned land adjacent to Sellafield will be made available for new nuclear? More specifically, will enough land be made available to accommodate two 470 MW Rolls-Royce power stations and their ancillary buildings and spaces?

Andrew Bowie Portrait Andrew Bowie
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I can confirm that Moorside is indeed a candidate for new nuclear, and it is one of a number of potential sites for hosting civil nuclear projects. Great British Nuclear is currently running a competitive process to select those small modular reactor technologies best able to facilitate operational projects in the 2030s. That said, the project needs to run its course, and I know my hon. Friend will understand that no decision on sites has yet been made.

Karl McCartney Portrait Karl MᶜCartney
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The UK’s first nuclear fusion power plant is due to be built a short 45-minute drive from Lincoln. It will increase energy generation and hopefully limit the amount of agricultural land being used to house solar farms. Will my hon. Friend update the House on the role that institutions such as the University of Lincoln will have in providing research and training for these types of power plants and their associated advanced jobs of the future?

Andrew Bowie Portrait Andrew Bowie
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It is indeed a very exciting time for fusion in this country. Our Fusion Futures programme will provide up to £55 million over five years to train more than 2,200 people, helping meet the demands of our growing fusion sector. That will expand our existing fusion training programmes through work with universities such as the University of Lincoln, colleges and employers, and provide a pipeline of highly skilled scientists, engineers and technicians at all career levels, from apprentice to post-doctoral fellow.

Siobhan Baillie Portrait Siobhan Baillie
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Berkeley has secured incredibly exciting investment in nuclear innovation with a consortium involving Rolls-Royce and the University of Bristol. A low-carbon energy park with international status at Berkeley and Oldbury, next door, go hand in hand as the Severn Edge project. The Government have a good opportunity to meet their energy security ambitions and lead the way. Will my hon. Friend provide assurances that he will work with Western Gateway on Severn Edge? I heard him say that the competition has to run its course, but will the course be run ahead of the summer recess?

Andrew Bowie Portrait Andrew Bowie
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My hon. Friend is tempting me. Oldbury is a candidate for new nuclear, and one of a number of potential sites that could host civil nuclear projects. It is exciting and encouraging to see the number of sites and projects coming forward for investment. As I said, the competition has to run its course, and no decision on sites has been made, but it is very encouraging to see such interest across the country in our great nuclear future.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Ind)
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Nuclear power plants come with a huge up-front capital cost. Even small modular reactors have a considerable price tag, so it is important that the Government get their procurement right for once. Does the Minister agree that SMRs offer possibilities for economies of scale? A large number could be commissioned at once, giving potential savings to the taxpayer while delivering reliable baseload supply to the national grid.

Andrew Bowie Portrait Andrew Bowie
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Yes, of course I agree. That is one of the huge benefits, along with many others, of small modular reactors, which is why we are running our down selection programme, and supporting exports from this country to across the world so that other countries can join us on our nuclear journey, investing in small modular, advanced modular and gigawatt-scale projects over the next few years.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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The delivery of nuclear power stations for Northern Ireland is something that I would welcome, but other parties in Northern Ireland might have concerns about it. The one thing that we in Northern Ireland can all agree on is that, as part of this great United Kingdom of Great Britain and Northern Ireland, we must be part of the manufacturing base and procurement process. Can the Minister confirm that the people of Northern Ireland will have that opportunity?

Andrew Bowie Portrait Andrew Bowie
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Not only can I confirm that, but I put on record my support to all the companies in Northern Ireland that are already integral to the supply chain for our nuclear sector. Our nuclear revival not only will deliver a more secure, robust and clean energy baseload, but has the potential to create thousands of new manufacturing and supply chain jobs across the country, and I want that to impact positively on every corner of our United Kingdom of Great Britain and Northern Ireland.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Alan Whitehead Portrait Dr Alan Whitehead (Southampton, Test) (Lab)
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Contrary to propaganda from the Conservative side, the last Labour Government handed over a detailed nuclear development plan that ran up to 2025, with 10 sites identified for nuclear development, early discussions with nuclear developers, and a plan for a deep and secure nuclear repository. Since then, over 14 years, not one electron of new nuclear power has been produced, Hinkley C is now at risk of further delays and no progress at all has been made on the establishment of a secure storage site for nuclear waste. What assurances can the Minister give that lessons have been learned from that frankly fairly lamentable stewardship of the previous plan, and that the latest plan is set up to deliver?

Andrew Bowie Portrait Andrew Bowie
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I have never been accused of propagandising before. It is a matter of pride on the Conservative Benches that every single nuclear project that has ever been completed in this country has been completed under a Conservative Government—it does not look as though that is likely to change any time soon, despite the protestations and near-Damascene conversion of Labour Front Benchers on nuclear over the past few years. We are carrying on with our nuclear revival; we have set out our nuclear road map; and we are encouraging, enthusing and investing in our civil nuclear sector. I am very excited about the progress that we have made and what will take place in the sector over the next few years.

Greg Smith Portrait Greg Smith (Buckingham) (Con)
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4. What steps she is taking with Cabinet colleagues to help ensure that land used for food production is not used for solar installations.

Andrew Bowie Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
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The planning policy priority is the effective use of land by directing solar projects to locate on previously developed low-grade land, and it is designed to avoid, mitigate and, where necessary, compensate for impacts on the best agricultural land.

Greg Smith Portrait Greg Smith
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The Prime Minister was very clear that vast swathes of agricultural land would not be lost to solar on his watch, yet I am seeing thousands of acres across my constituency being built out or proposed for solar—from Kimble Wick to Dinton, Ford to Beachampton, and more—including the latest 2,100 acre abomination in the Claydons known as Rosefield. Good agricultural land that regularly produces wheat harvests of 10 tonnes per hectare, for example, is often falsely graded as 3b because the readings are taken from the headland, not the field. When will my hon. Friend ensure that energy policy does not trump food security, and stop the mass proliferation of agricultural land being used for inefficient solar?

Andrew Bowie Portrait Andrew Bowie
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I understand the concern and frustration of my hon. Friend and his constituents. That particular project is at the pre-application planning stage. The application is expected to be submitted to the Planning Inspectorate between January and March 2025. However, as I know he understands, owing to the quasi-judicial role of Ministers in determining applications, it would not be appropriate for me to comment on any specific matters in relation to that project, but I can reassure him that all applications are judged on their individual merits, and I encourage him and all his affected constituents to engage with the planning process at every stage as it continues.

Wera Hobhouse Portrait Wera Hobhouse (Bath) (LD)
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With all due respect to Conservative Members, who always represent the farming industry, as do we in the Liberal Democrats, farmers are not stupid. They will not take high-quality agricultural land out of production, and that is not happening, so I really worry about the argument being made here. We are far behind our renewable targets for solar, so what incentive can the Government provide to get more, not less, UK solar off the ground?

Andrew Bowie Portrait Andrew Bowie
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I can reassure the hon. Lady that the solar taskforce will publish its recommendations imminently, and we have an ambitious target of deploying 70 GW of solar across the UK by 2035.

Karen Bradley Portrait Dame Karen Bradley (Staffordshire Moorlands) (Con)
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Residents in Staffordshire Moorlands are very concerned about a number of planning applications for solar farms and battery storage plants on farmland. They have a number of questions, so can my hon. Friend ensure that small district councils have the appropriate expertise to look at those applications? Can he make sure that proximity to the national grid is taken into consideration, and that when there are a number of applications relating to adjoining pieces of land, those applications are considered as a whole, rather than looked at individually?

Andrew Bowie Portrait Andrew Bowie
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I thank my right hon. Friend for her question, and reassure her that we take all those concerns incredibly seriously. I am very happy to meet her and any other Member of Parliament who has concerns about the plans being put forward in their constituency. As I have said, it is really important that everybody—from Members of Parliament through to those in the community who are affected by or have concerns about plans—can engage with the planning process at every stage. We will do what we can to address those concerns while meeting our ambitious target of deploying 70 GW of solar by 2035.

Gregory Campbell Portrait Mr Gregory Campbell (East Londonderry) (DUP)
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I am delighted to see you in your place, Mr Speaker. Some people have short memories.

Bearing in mind the difficulties that farmers are facing, particularly those with rocky or infertile land, will the Minister have discussions with his colleagues in the Department of Agriculture, Environment and Rural Affairs to ensure that some of that land is used in ways that maximise the benefit to the farming community, as well as contributing to net zero?

Andrew Bowie Portrait Andrew Bowie
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I thank the hon. Member for his question. I can assure him that we are already engaging with the National Farmers Union; indeed, it has been working with the solar taskforce to enable us to work with farmers and understand their concerns. I am very happy to meet farming representatives from all parts of the United Kingdom to determine how we can best support them and reach our net zero objectives by the date we have set ourselves.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
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One of the arguments put forward for a large solar farm on agricultural land in my constituency is that there are limited points of interconnection with the national grid for large solar farm developers wishing to contract with it. Could my hon. Friend the Minister advise me on whether that is the case, and if it is, could he follow up on that, and advise all Members of Parliament on where those limitations exist?

Andrew Bowie Portrait Andrew Bowie
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I thank my hon. Friend for his question. Obviously, I do not know the detail of the case he raised, but I am very happy to meet him following questions to look at it in more detail. Despite what I said about the quasi-judicial role of Ministers in planning applications, it is really important that all concerns are addressed and looked at, and that the planning application system is thorough, robust and transparent.

Tim Farron Portrait Tim Farron (Westmorland and Lonsdale) (LD)
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On land use for food production and achieving net zero, has the Minister done an impact assessment of the rising carbon emissions from the UK Government carrying on with their agricultural policy, which is reducing incentives for farmers to produce food? As a consequence, we will import more food. As things stand, we produce only 60% of the food we eat; importing more and more food will surely increase carbon emissions. Has the Minister looked into that, and done an impact assessment of it?

Andrew Bowie Portrait Andrew Bowie
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At the National Farmers Union conference just last week, the Prime Minister reiterated this Government’s commitment to supporting British farmers in their primary role of delivering food for the nation. It would be good to see the Liberal Democrats give their support to British farmers in so forceful a manner. We are absolutely determined to do what we can to support British farmers in continuing to deliver that food—and, indeed, to support the technologies that we need to reach our net zero commitments, which I am led to believe the Liberal Democrats still support.

Grahame Morris Portrait Grahame Morris (Easington) (Lab)
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5. Whether she has had discussions with energy providers on reducing energy standing charges for charities and businesses.

Amanda Solloway Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
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The setting of tariffs, including standing charges, in the non-domestic market is a commercial matter for suppliers. The Secretary of State and I have met suppliers and Ofgem multiple times over the past year to urge them to support businesses and keep bills down, and Ofgem has recently called for input and views on standing charges.

Grahame Morris Portrait Grahame Morris
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Mr Speaker, I associate myself with your earlier remarks about the sad passing of my dear friend Ronnie Campbell, and indeed Lord Cormack.

For months now, East Durham Trust in my constituency has been in dispute with its supplier, TotalEnergies, after TotalEnergies raised its standing charge from 40p a day to £20 a day—an increase of over 4,000%. Remarkably, after making complaints to the Department, Ofgem, Northern Powergrid and TotalEnergies, I found out just yesterday that TotalEnergies has agreed to remotely reconfigure the meter in question. Can the Minister explain why energy companies and distributors do not seek to address customer issues sooner, and does she agree that we have a failing regulator and an energy system that seeks to maximise profits?

Amanda Solloway Portrait Amanda Solloway
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I am pleased to hear from the hon. Gentleman that the situation has been resolved, and I suggest that exactly the right recourse is to contact the relevant parties. We are now launching the ability of the ombudsman to help small businesses as well, which reassures me that such cases will be seen to more quickly and resolved sooner.

Lindsay Hoyle Portrait Mr Speaker
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I call the SNP spokesperson.

Dave Doogan Portrait Dave Doogan (Angus) (SNP)
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In the UK, electricity standing charges will balloon by 12%, meaning that people in Scotland who were paying £90 a year in 2021-22 will soon need to find £216 a year—a 138% increase under this Tory Government. That removes the incentive to curb excessive use, and presents a disincentive to economise on energy usage. If costs and charges were redistributed to the unit price, consumers would be empowered to pursue reduced usage, knowing that that would translate into lower bills. What assessment has the Minister made of the savings that would be made, in terms of both carbon emissions and the need for vast pieces of new energy infrastructure, if the standing charges were rolled into unit prices?

Amanda Solloway Portrait Amanda Solloway
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Standing charges, as I mentioned, are a matter for Ofgem. However, Ofgem has listened to public sentiment, and it has recently launched a call for input on standing charges. My understanding is that to date, it has had over 40,000 responses. The call for input closed on 19 January, and Ofgem’s paper aims to ensure a greater understanding of how standing charges are applied to energy bills and what alternatives should be considered.

Andrew Jones Portrait Andrew Jones (Harrogate and Knaresborough) (Con)
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7. What steps she is taking to help increase private sector investment in green technologies.

Jack Brereton Portrait Jack Brereton (Stoke-on-Trent South) (Con)
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16. What steps she is taking to help increase private sector investment in green technologies.

Claire Coutinho Portrait The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
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The UK has already made tremendous progress in securing investment in green technologies; recent figures indicate that there was £60 billion of investment in the UK in 2023, meaning that since 2010, the UK has had £300 billion of public and private investment in low-carbon sectors. Since I took office in September, we have put in place new policies and signed deals with different countries, and the investment has continued to flow, with plans for around £24 billion of new investment in low-carbon sectors announced by the private sector.

Andrew Jones Portrait Andrew Jones
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I thank my right hon. Friend for that answer. Harmony Energy based in Knaresborough opened Europe’s largest battery farm in Yorkshire in 2022. It has raised the issue of connectivity challenges being a blockage to investment, so I welcome the connections action plan, which aims to cut connection times by up to 90%. Battery farms are critical for energy retention and storage, and are particularly helpful for renewables, so may I ask my right hon. Friend for an update on how the plan is being implemented?

Claire Coutinho Portrait Claire Coutinho
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We have set out the most radical reforms to the grid since the 1950s. As the action plan sets out, we are taking action with Ofgem and network companies to accelerate those really important network connections. Network companies are offering earlier connection to battery storage and generation projects. For example, 10 GW of battery storage projects are already being offered connection dates to the transmission network that are on average four years earlier than was originally agreed.

Jack Brereton Portrait Jack Brereton
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The UK’s ceramics sector has invested heavily in energy efficiency technologies, and it is committed to going further, but many of the alternative green technologies are not yet viable, and there are serious risks that too stringent net zero targets will result in carbon leakage, and in offshoring an industry and skilled jobs to countries that have a far worse environmental record. Will my right hon. Friend look seriously at exempting the ceramics sector from the emissions trading scheme, to give the sector the breathing space that it needs to invest?

Claire Coutinho Portrait Claire Coutinho
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I commend my hon. Friend’s unwavering commitment to advocating for the ceramics sector in his constituency. The UK Government remain steadfast in safeguarding sectors deemed at risk of carbon leakage, and I strongly encourage the ceramics sector in his constituency to actively participate in the consultation on free allocation policy, which is open.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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A new report from the Green Finance Institute and the Institute for Public Policy Research notes that a lack of public investment and strategy is holding back progress on unlocking private investment, and that the chopping and changing of policy pathways has damaged investor confidence. The Secretary of State likes to say that she has a clear strategy, so will she tell investors what it is? Will she call on the Chancellor to deliver the scale of public investment that we so urgently need to restore investor confidence and lift the UK off the bottom of the G7 league table for private investment, where we currently languish?

Claire Coutinho Portrait Claire Coutinho
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I thank the hon. Lady for that question, but I am surprised that she did not welcome the recent news that the UK was the first country in the G20 to halve its emissions since the 1990s, as I know that subject is dear to her heart. As I have said, in 2023, the UK saw around £60 billion of low-carbon private and public investment. We got that extraordinary success by encouraging private investment. Whether through the contracts for difference scheme, our new policies on capital allowances, or the effect of the green industries growth accelerator on the supply chain, the UK is doing everything it can to attract investment, and that is exactly why we have made those achievements.

Kirsten Oswald Portrait Kirsten Oswald (East Renfrewshire) (SNP)
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Last week, the Scottish Government announced £24.5 million of public investment in a new cable factory, which will attract a further £350 million of inward investment. Does the Secretary of State agree that the best way to increase private investment is for the Government to increase public investment, to signal that the UK is open to green investment? Should not the UK Government therefore invest at least £28 billion a year, so that we can maximise private investment, and so that economic growth from the green transition is also maximised?

Claire Coutinho Portrait Claire Coutinho
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As I said, our record on net zero investment is incredibly strong. In fact, I believe the CBI had a report out this morning showing that our net zero sectors have been growing by 9% in the last year. We have set out plans for further investment, whether that is in grid connections, supply chain investment through our Gigafund, or reforming capital allowance. All those things, and not public sector investment alone, attract private investment to this country.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Sarah Jones Portrait Sarah Jones (Croydon Central) (Lab)
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This Government are locked in a doom loop of inertia, and everyone is talking about it. Just this week, the National Infrastructure Commission said that the Government are taking too long, need to move faster, and that greater urgency is required. The CBI report that the Secretary of State mentioned says that

“strong future growth from green businesses is being put at risk”.

Labour’s national wealth fund will crowd in private investment and create thousands of good jobs for plumbers, engineers, electricians and welders. Is blowing our advantage and losing the race for the industries of the future part of the Government’s plan, or do they just not have one?

Claire Coutinho Portrait Claire Coutinho
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I thank the hon. Lady for having the chutzpah to attempt that question. If she would like to talk about uncertainty on investment plans, she need only look at those on the Benches behind her, who have performed the most extraordinary flip-flop on that. We have delivered the second highest cumulative amount of recorded low-carbon investment across Europe over the past five years.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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9. If she will meet representatives of Adfree Cities to discuss high-carbon advertising.

Graham Stuart Portrait The Minister for Energy Security and Net Zero (Graham Stuart)
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The Advertising Standards Authority is responsible for regulating advertising in the UK across traditional forms of media, and it takes environmental issues seriously. I encourage the hon. Gentleman to approach the ASA directly with that request, as it operates independently of Government.

Lindsay Hoyle Portrait Mr Speaker
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I call Barry Sheerman.

Barry Sheerman Portrait Mr Sheerman
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Thank you for waking me up, Mr Speaker. The Adfree Cities campaign is very significant. Most of us have seen flashing coloured screens proliferate in our towns and cities, and much more densely in other countries, such as France and Germany. Not only do these screens use a lot of energy and electricity, but they are very invasive of people’s dwellings. Can we be very careful about the proliferation of those screens?

Graham Stuart Portrait Graham Stuart
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As I said, the ASA would be the key people to go to. Companies in the sector are, and should be, mindful of their net zero obligations. They are looking into making commitments to source all their electricity from renewable sources, which is a solid thing to do, as well as using digital technologies to minimise energy usage. The Net Zero Council is producing road maps for all industry sectors across the economy, to encourage businesses to do everything they can to minimise their environmental impact.

Theo Clarke Portrait Theo Clarke (Stafford) (Con)
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11. What steps she is taking to help reduce the price of fuel at petrol stations.

Amanda Solloway Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
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Last week, we launched a consultation, closing on 12 March, on requiring petrol stations to report a change in price within 30 minutes. Pumpwatch will enable drivers to make informed decisions on where to buy fuel and will reignite competition.

Theo Clarke Portrait Theo Clarke
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I thank the Minister for her answer, but my constituents in Stafford remain concerned about the price of fuel, particularly given the pressures on their household budgets. I welcome the fact that the price of a tank of fuel is lower than it was when prices were at their peak, but what is she doing to ensure that my constituents get the best price for their fuel?

Amanda Solloway Portrait Amanda Solloway
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We are committed to making sure that consumers get a fair deal. That is why fuel retailers must remain transparent and not overcharge drivers. The Pumpwatch consultation will require all petrol stations to report prices within 30 minutes of their changing. That will enable tech companies to develop new ways for UK drivers to search for the cheapest fuel.

Richard Foord Portrait Richard Foord (Tiverton and Honiton) (LD)
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In rural communities across Devon, people feel the pressure of high fuel costs. The cost of fuel in towns such as Honiton is almost 20p a litre higher than at petrol stations just 30 miles away. What steps will the Government take to ensure fairness, and to introduce rural fuel duty relief of the sort that we already have in some parts of north Devon?

Amanda Solloway Portrait Amanda Solloway
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Pumpwatch will help with those things, but it is unacceptable for any fuel retailer to overcharge drivers. That is why the Secretary of State held a roundtable in December with fuel retailers to make it clear that we expect them to pass on savings to consumers when prices fall.

Helen Morgan Portrait Helen Morgan (North Shropshire) (LD)
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14. What recent steps she has taken to help improve the energy efficiency of homes.

Amanda Solloway Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
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I pay tribute to the hon. Member for her committed work to support her constituents living in rural areas. We have a proud record of energy efficiency. We are encouraging, rather than forcing, people to make the right choices, and we pushed back the ban on gas boilers while increasing the boiler upgrade scheme to £7,500, which is one of the most generous grants in Europe.

Helen Morgan Portrait Helen Morgan
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There are 1,858 listed properties in North Shropshire, according to the Listed Property Owners Club, and 24 conservation areas across our historical market towns and villages. That means that there is a large number of buildings that owners find it difficult to upgrade to make them energy-efficient. What conversations has the Minister had with her colleagues in the Department for Levelling Up, Housing and Communities and the Department for Culture, Media and Sport on enabling people to bring those homes into the 21st century and make them energy-efficient?

Amanda Solloway Portrait Amanda Solloway
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The hon. Member makes a good point. We have those consultations across Departments, and local authorities in rural areas in England are eligible for grants. I can give my assurance that we have those cross-government meetings.

Steve Double Portrait Steve Double (St Austell and Newquay) (Con)
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Many off-grid homes across Cornwall cannot convert to energy-efficient heating schemes without incurring huge costs. One option for them is to use hydro-treated vegetable oil. Can the Minister lay out what plans the Government have to support those using renewable liquid heating fuels, and will she back the campaign by our excellent candidate for Camborne and Redruth, Connor Donnithorne, to axe the tax on HVOs?

Amanda Solloway Portrait Amanda Solloway
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I thank my hon. Friend for raising that point. We have begun developing a consultation on the role of renewable liquid fuels in heat. We expect Department for Energy Security and Net Zero Ministers to receive detailed information on the shape of the consultation in the coming weeks, and aim to publish in the summer of 2024.

Andrew Selous Portrait Andrew Selous (South West Bedfordshire) (Con)
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15. When she plans to publish the second consultation on the review of electricity market arrangements.

Graham Stuart Portrait The Minister for Energy Security and Net Zero (Graham Stuart)
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The Government plan to publish the second consultation imminently. It will set out a clear direction on how the GB electricity market arrangements will evolve to keep electricity bills as low as possible for consumers of all types.

Andrew Selous Portrait Andrew Selous
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There are two questions that my constituents ask me most frequently: when will we see cheaper electricity from renewables, and when people in areas such as mine, which host a lot of renewable production, benefit from cheaper prices, as a result of hosting that infrastructure?

Graham Stuart Portrait Graham Stuart
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The Government are moving on from our appalling inheritance in 2010 of less than 7% of our electricity coming from renewables, with that figure today up to well over 40%. Every day we add to that, we displace gas and other fossil fuels and lower bills for people, and we plan to keep that going. We already have solar, onshore wind and other developers providing benefits to consumers, and we will come forward with plans for those hosting—

Lindsay Hoyle Portrait Mr Speaker
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Order. I call Sir George Howarth.

George Howarth Portrait Sir George Howarth (Knowsley) (Lab)
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People who are considering changing their boiler struggle to find accurate information about the benefits and the costs. Will the Minister consider issuing new guidance that makes clear both the costs and the benefits of switching to a heat pump?

Graham Stuart Portrait Graham Stuart
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It can be a complex matter. That is why the Government have committed to looking at rebalancing the system costs across electricity and gas, as well as to ensure that people can benefit, as I do, from a heat pump, which provides a warm home and low bills.

Alyn Smith Portrait Alyn Smith (Stirling) (SNP)
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17. What steps her Department is taking to help reduce energy costs for households.

Elliot Colburn Portrait Elliot Colburn (Carshalton and Wallington) (Con)
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20. What steps she is taking to provide support with energy bills.

Claire Coutinho Portrait The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
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Ofgem’s new price cap means that from April, the average bill is set to drop by £238. This shows that our plan is working: we have halved inflation and energy prices are at their lowest level in two years. Alongside that, we have taken the number of homes that are well insulated up from 14% in 2010 to 50% now. We have recently set out plans to help more customers access smarter energy tariffs, which could save them up to £900 a year.

Alyn Smith Portrait Alyn Smith
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I am grateful for the answer, but one thing my constituents in Stirling do not understand is electricity standing charges. As we have heard, according to Ofgem’s figures, they have rocketed by 138% from £90.84 in 2021-22 to £216.23 in 2023-24. Ofgem has issued a call for evidence, which is to be welcomed, but Ofgem is clearly not fit for purpose on this. Does the Secretary of State agree that it is high time the UK Government stepped in?

Claire Coutinho Portrait Claire Coutinho
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The hon. Gentleman is right that Ofgem regulates standing charges and has issued a call for evidence. I think about 40,000 people have given input, and we look forward to seeing the results. However, if he was really worried about the cost of living for families in the country, the SNP would not have taken taxes in Scotland to the highest level in the UK.

Elliot Colburn Portrait Elliot Colburn
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The fall in the energy price cap is certainly welcomed by Carshalton and Wallington residents, as is the support for households, but many small and medium-sized businesses in my constituency are still struggling to absorb higher costs. Will the Secretary of State outline in a bit more detail the support that those businesses can access to help with energy bills?

Claire Coutinho Portrait Claire Coutinho
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I thank my hon. Friend for recently welcoming me to Carshalton and Wallington. Wholesale energy prices have fallen significantly since last winter, but we are committed to supporting businesses with their energy bills. Last winter alone, we delivered about £7.4 billion to support businesses, covering nearly half of many businesses’ wholesale energy costs. We are continuing the energy bills discount scheme to support eligible businesses with high energy costs until they can take advantage of lower wholesale prices.

Simon Baynes Portrait Simon Baynes  (Clwyd South)  (Con)
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T1.   If she will make a statement on her departmental responsibilities.

Claire Coutinho Portrait The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
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A lot has happened since I was last at the Dispatch Box. Not only have energy bills fallen to their lowest level in two years—welcome news for families up and down the country—but Britain has become the first major economy to halve our emissions, which is a huge milestone on our journey to net zero, our Offshore Petroleum Licensing Bill has completed its Commons stages, and we are supporting the North sea by protecting 200,000 jobs and using our own gas to heat our homes.

I have signed a new partnership with Canada on fusion energy, which is a technology that could give us limitless energy and one on which Britain is leading the world. We have confirmed the UK’s departure from the energy charter treaty, which was holding back our transition to cleaner, cheaper energy. We have launched a consultation on smart energy tariffs, which could see £900 taken off people’s bills, and today we host our hydrogen investor forum, announcing eight successful projects to make low-carbon hydrogen, with over £27 million of Government support.

Simon Baynes Portrait Simon Baynes
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Residents in Esclusham in my constituency are alarmed by Innova’s plans for the UK’s largest lithium-ion battery storage facility near Bersham. Can my right hon. Friend give any reassurance about the safety of this technology to my constituents, who are concerned about the dangers of pollution, given the noise emitted by such equipment, and by reports of similar facilities elsewhere exploding, catching fire and emitting toxic fumes?

Claire Coutinho Portrait Claire Coutinho
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Electricity storage allows us to use energy more flexibly and to minimise energy bills. Grid-scale lithium-ion battery energy storage systems are covered by a robust regulatory framework that is principally over- seen by the Health and Safety Executive. Planning guidance encourages developers and local authorities to consult relevant fire and rescue services on aspects such as location, ahead of any planning decisions being made.

Lindsay Hoyle Portrait Mr Speaker
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I call the SNP spokesperson.

Dave Doogan Portrait Dave Doogan (Angus) (SNP)
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Some 23% of households in Scotland are living in extreme fuel poverty. Energy debt across the United Kingdom has reached £3.1 billion. Age UK estimates that, had the UK Government implemented a social tariff this winter, 2.2 million households would have been lifted out of poverty. The latest costs of unpayable energy debt have once again been heaped on to ordinary taxpayers by Ofgem through the unit rate. What assessment has the Secretary of State made of how much energy debt could be reduced by through the introduction of a social tariff to mitigate totally unaffordable energy bills?

Claire Coutinho Portrait Claire Coutinho
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The fact that energy prices are at the lowest level in two years is good news for families up and down the country. We have put in place support, including a package of more than £104 billion to support families—that is £3,700 per household on average. As part of that, we have made £900 cost of living payments to help people in the last year.

Kevin Foster Portrait Kevin Foster (Torbay) (Con)
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T2. Energy is a vital purchase for the hospitality sector, and can make up a large part of the overall costs. What steps is the Secretary of State taking to ensure that the energy costs faced by pubs, hotels and food businesses do not put them out of business?

Amanda Solloway Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
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I thank my hon. Friend for that important question. Wholesale energy prices have fallen compared with last year. The Government have been supporting eligible businesses locked into high contracts through the energy bills discount scheme, until they can take advantage of lower fixed-price rates. My hon. Friend will be interested to hear that the Government delivered more than £7.4 billion to non-domestic energy users last winter, covering around half of many businesses’ energy bills.

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

Ed Miliband Portrait Edward Miliband (Doncaster North) (Lab)
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Last September, the Energy Secretary claimed she was lifting the onshore wind ban, but in the whole of 2023 and so far in 2024 there have been zero applications for new onshore wind farms designed for domestic electricity supply in England. She said that her decision would speed up the delivery of projects. Why does she think it has not worked?

Claire Coutinho Portrait Claire Coutinho
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Let me be clear about our record on onshore wind. Energy production has quadrupled since 2010, when we had 3.9 GW of onshore wind, to 15.4 GW in 2023. We have connected the second highest amount of renewables anywhere in Europe, whereas the right hon. Gentleman’s plans have been widely discredited by industry and would deter billions of pounds of investment in clean energy.

Ed Miliband Portrait Edward Miliband
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The right hon. Lady did not answer the question. I will tell her why it has not worked: because she has left a uniquely restrictive planning regime in place for onshore wind. Her failure is costing families across this country £180 a year on their bills. We know that her policy has failed. She could dump the ban at the stroke of a pen. If she is vaguely serious about clean energy, why does she not face down the headbangers on her Back Benches and lift the ban?

Claire Coutinho Portrait Claire Coutinho
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As I said, we have connected the second highest amount of renewable electricity anywhere in Europe since 2010. Our record on renewable energy is clear. This is the most extraordinary deflection that I have seen. In recent weeks, the right hon. Gentleman’s leader has shredded his policy platform on energy. To be honest, I feel quite sorry for him, because thanks to the action of his leader and his shadow Chancellor, he has been hidden away, his policy has been ripped up and it is now obvious to everyone that Labour has no plan for energy.

John Penrose Portrait John Penrose (Weston-super-Mare) (Con)
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T3. Further to the question by my hon. Friend the Member for South West Bedfordshire (Andrew Selous) about the review of electricity market arrangements, I welcome the fact that we are, at last, getting to grips with the clunky old rules that add potentially hundreds of pounds to everyone’s energy bills. May I urge the Minister to go faster? This is chugging along at Whitehall speed, and we need urgent action to reduce energy bills soon.

Graham Stuart Portrait The Minister for Energy Security and Net Zero (Graham Stuart)
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I thank my hon. Friend for his continuing interest in this issue. The REMA programme is considering a number of options, including sending more efficient locational signals, which I know he is very knowledgeable about, zonal pricing, reform to transmission charging and changes to network access. The second round of the consultation is imminent.

Grahame Morris Portrait Grahame Morris (Easington) (Lab)
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T4. This Government’s treatment of miners, retired miners and their widows is nothing short of a national scandal. Since 2021, the Government have been sitting on the recommendations of the Business, Energy and Industrial Strategy Committee report, which recommended reviewing the mineworkers’ pension scheme’s surplus sharing arrangements in favour of miners and their widows. During that time, thousands of miners have sadly passed away through the legacy of industrial disease, while the Government have pocketed £4.8 billion of the miners’ own money since 1994. When are the Government going to do the right thing and return the miners’ money?

Graham Stuart Portrait Graham Stuart
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The Government are doing the right thing, have done the right thing and will continue to do the right thing in coming to a fair settlement between miners, the Government and the taxpayer. That is what we will continue to do, and I am happy to meet the hon. Gentleman to discuss it further.

Andrew Jones Portrait Andrew Jones (Harrogate and Knaresborough) (Con)
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T5. Earlier this month, the all-party parliamentary group on infrastructure, which I chair, launched a joint report with the Institution of Civil Engineers on the public behavioural changes needed to achieve our net zero target. I have sent my right hon. Friend a copy of the report. As part of its production, we carried out market research, which highlighted public uncertainty on where to go for accurate information to help people make the choices required to decarbonise their lives. What is the Department doing to help fill that information gap?

Graham Stuart Portrait Graham Stuart
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Of course, my hon. Friend has a highly distinguished history in the marketing industry. We agree that it is important that the public get the information they need to save money on their bills, as we set out in the net zero growth plan. That is why last autumn we relaunched the “It All Adds Up” campaign, which helped British households save an estimated £120 million last winter. Whether it is elf on the shelf or other such routes, we will find ways to better communicate with the public, precisely to allow them to be well informed in doing their bit for net zero.

Toby Perkins Portrait Mr Toby Perkins (Chesterfield) (Lab)
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T6. The Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Derby North (Amanda Solloway) spoke about the Government’s approach to differential fuel prices in different towns. Motorists in Chesterfield remain mystified as to why major supermarkets are charging them more than they charge customers just a few miles up the road in Sheffield. It is clear that the Government’s approach is not working. When I wrote to the major supermarkets, they admitted that they charge Chesterfield customers more. There is no reason why customers in Chesterfield should be charged more than customers in Sheffield, so will the Minister tell us what she is doing about that?

Amanda Solloway Portrait Amanda Solloway
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I could not agree more that we should not be paying different prices at different petrol stations. That is one of the reasons why we have launched a consultation on Pumpwatch, and why we have very regular meetings with the suppliers to make sure that they are not doing this. They should not be doing it and we are very clear about that.

Peter Aldous Portrait Peter Aldous (Waveney) (Con)
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T9. Offshore Energies UK’s industry manifesto highlights the once- in-a-lifetime opportunity that a home-grown energy transition provides to bring investment and jobs to communities all around the UK. This requires close collaboration between the private and public sectors. Can Ministers confirm that the Government are absolutely committed to such a partnership?

Graham Stuart Portrait Graham Stuart
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I can. What the sector does not need, of course, as OEUK has itself set out, is the tens of thousands of job losses that would be driven by the ideological and climate-damaging obsession of the right hon. Member for Doncaster North (Edward Miliband) with ending new UK oil and gas licensing.

Alan Brown Portrait Alan Brown  (Kilmarnock and Loudoun) (SNP)
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T7. The last published Government estimate for Sizewell C is £20 billion, but Hinkley Point C, the supposed prototype for Sizewell C, is now estimated to cost £48 billion. When will the Government admit that the actual cost of Sizewell C will be a colossal £50 billion noose around bill payers’ necks?

Andrew Bowie Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
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The SNP, blinded by a misplaced belief in its own exceptionalism, seems almost alone in the world in not recognising the benefits of new nuclear when it comes to meeting our net zero objectives, delivering our energy security and improving our baseload. At last year’s COP, 30 countries around the world came together to commit to increasing nuclear-generated capacity by 30%. It would be brilliant if Scotland could be part of that change, but the SNP and its luddite partners in the Green party are holding Scotland back. We are determined not to do that for the rest of the UK.

James Wild Portrait James Wild (North West Norfolk) (Con)
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Plans for a new incinerator in Wisbech are strongly opposed by my constituents and those of my right hon. Friends the Members for North West Cambridgeshire (Shailesh Vara) and for South West Norfolk (Elizabeth Truss). With 300 lorry trips a day and a structure bigger than Ely cathedral, there would be serious health and environmental concerns for the nearest school. Will my right hon. Friend the Secretary of State visit the site to see for herself why the plans are wholly inappropriate?

Andrew Bowie Portrait Andrew Bowie
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The Secretary of State will be happy to engage with my hon. Friend, and I too would be delighted to visit the site to look into the issues that he has raised.

Rachel Hopkins Portrait Rachel Hopkins (Luton South) (Lab)
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T8. At last we have heard the excellent news from Stellantis that it is to build electric vans at Luton’s Vauxhall plant from 2025, as a result of the tireless efforts of both management and workforce in pursuit of efficiency and quality. What plans have the Government to invest in electric vehicle charging infrastructure to help to stimulate the EV consumer market?

Graham Stuart Portrait Graham Stuart
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The hon. Lady is right to salute the astonishing investments that we are seeing throughout the automotive sector, and I am delighted that the Government have been able to help to bring them about. As she knows, we are committed to spreading more and more charging across the United Kingdom, not least in motorway service areas, so that we have the infrastructure to facilitate the decarbonisation of transport alongside all our other emitters.

Cherilyn Mackrory Portrait Cherilyn Mackrory (Truro and Falmouth) (Con)
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Earlier this month we welcomed the Prime Minister to A&P Falmouth to meet its workforce and talk about its fantastic submission for funding under the floating offshore wind manufacturing investment scheme to enable the port of Falmouth to support the emerging floating offshore wind sector in the Celtic sea. Can the Minister reassure my constituents that the Government are looking at all the applications with a scrutinising eye to ensure that the supply chain can be built up throughout the south-west?

Andrew Bowie Portrait Andrew Bowie
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I can indeed confirm that the supply chain and the manufacturing jobs that will be created through our investment in floating offshore wind will benefit every community in the United Kingdom. No decision has yet been made on FLOWMIS, but one will be made imminently.

Mark Hendrick Portrait Sir Mark Hendrick (Preston) (Lab/Co-op)
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T10. Government statistics released last week show that 469,000 low-income households in the north-west live in energy-inefficient properties. Hundreds of households in the Fishwick area of Preston are still struggling with cold, damp homes after the failed installation of insulation more than a decade ago. Will the Minister commit his Department to future fuel poverty schemes that will prioritise the fixing of past mistakes, as well as renewed support for good insulation to be fitted in older terrace properties around the country?

Amanda Solloway Portrait Amanda Solloway
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The Government are already committed to ensuring that households have the necessary energy efficiency. We have introduced the social housing decarbonisation boiler upgrade scheme, the home upgrade grant and many other initiatives, and we are of course helping all our constituents with affordability.

Trudy Harrison Portrait Trudy Harrison (Copeland) (Con)
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We have made huge progress in decarbonising our electricity sector, but decarbonising transport and heat is much more tricky. Will the Minister encourage our plans in Copeland to harness any power that can be obtained from new nuclear for that purpose, and will he meet us so that we can discuss those plans?

Andrew Bowie Portrait Andrew Bowie
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I should, as ever, be delighted to meet my hon. Friend, and very happy to discuss the opportunities that are opening up for her community and others throughout the United Kingdom. Indeed, I have visited her constituency and observed for myself the huge enthusiasm for new nuclear, as well as the additional benefits that it can bring to the wider energy sector.

Nia Griffith Portrait Dame Nia Griffith (Llanelli) (Lab)
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The potential loss of 2,800 jobs at Tata Steel in Port Talbot is devastating for workers and their families, with possible knock-on effects for Trostre in Llanelli. As well as investing in the electric arc furnace, will the Government commit themselves to primary green steelmaking in the UK to preserve our security and our jobs?

Graham Stuart Portrait Graham Stuart
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The hon. Lady should, alongside us, celebrate the £500 million that the Government are contributing as part of an overall £1.25 billion investment in the modernisation of steel production at Port Talbot through, for instance, the electric arc furnace. Government and industry will also invest £100 million in skills to ensure that there are thousands of jobs for the future, and that we reduce emissions as well.

David Duguid Portrait David Duguid (Banff and Buchan) (Con)
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Will my hon. Friend reaffirm the Government’s commitment to develop four operational CCUS clusters, including Acorn in my constituency, by the end of the decade? Will my colleagues in the Department for Energy Security and Net Zero make representations to His Majesty’s Treasury to bring forward the financial investment decisions at the soonest opportunity?

Graham Stuart Portrait Graham Stuart
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I am grateful to my hon. Friend, and he is absolutely right: CCUS has such an important role, and we are committed to those four clusters. As we announced in March last year, we have delivered £20 billion of investment to make sure that we carry on with the transformation and decarbonisation of this country that was so woefully lacking when we took power in 2010.

Sam Tarry Portrait Sam Tarry (Ilford South) (Lab)
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Last week the former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss), shared a platform with an extremist, far-right, climate change-denying conspiracy theorist called Steve Bannon, who claimed that man-made global warming is a “manufactured crisis”. Will the Secretary of State condemn those crazy comments and perhaps distance herself from the former Prime Minister?

Claire Coutinho Portrait Claire Coutinho
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I thank the hon. Gentleman for his question. What he should look at carefully is that the UK is the first country in the G20 to halve emissions. If he wants to look at our record, he should look at that. It is absolutely extraordinary that no one on the Opposition Benches has welcomed that news today.

Matt Warman Portrait Matt Warman (Boston and Skegness) (Con)
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National Grid’s Grimsby to Walpole project will see pylons driven across Lincolnshire’s beautiful landscapes and will take major chunks of some of this country’s best agricultural land out of production. Does the Secretary of State agree that it is vital that residents respond to the consultation that is currently going on, and that National Grid should be told to take into consideration food security as well as energy security when it considers such applications?

Graham Stuart Portrait Graham Stuart
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I thank my hon. Friend for his question. As he will know, I cannot comment on a specific proposal. We need to rewire this country in order to have homegrown energy. That means hosting new infrastructure, with the presumption that it is above ground and done in a way that minimises negative impacts on food security, which I am confident that any proposals that come forward will do. Let us make no mistake: we must rewire this country. We must power the UK more from this country, clean up our energy and reduce our dependence on foreign fossil fuels.

Jamie Stone Portrait Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
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Every single winter, the village of Altnaharra in Sutherland is the coldest community in the whole of the United Kingdom. Some parts of the United Kingdom are colder than others—that is geography. May I ask that this fact be taken into consideration when the Government look at schemes to help people with the cost of paying their electricity bills?

Amanda Solloway Portrait Amanda Solloway
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I thank the hon. Gentleman for his question. As he will know, the Government delivered over £40 billion in support last winter. We expect the warm home discount to support around 3 million households this winter, with the final figures to be published later. Since 2011, the warm home discount has delivered over £3.5 billion in support for eligible low-income households.

Luke Evans Portrait Dr Luke Evans (Bosworth) (Con)
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I welcome the news that Ofgem has put the price cap down by 12%, which represents a discount of about £20 for every average home. There is one problem, though: the standing charge is still relatively high. I know there is an open consultation, but would the Government consider transparency about the standing charge on bills so that the public understand exactly what it does?

Amanda Solloway Portrait Amanda Solloway
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I thank my hon. Friend for his question. Clearly, it is vital that we had the call for input on the standing charges, and we await with anticipation how we will react to the over 40,000 responses that we have had so far.

Imran Hussain Portrait Imran Hussain (Bradford East) (Lab)
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I have recently been inundated with correspondence following the collapse of SSB Law, a legal firm that took thousands of defective cavity wall insulation cases to court. It has left constituents with tens of thousands of pounds in costs that they cannot afford during an unprecedented cost of living crisis. Can the Minister assure me that the Government have a plan to address this scandal? What compensation will my constituents be offered to remove faulty cavity wall insulation so that they can finally be free of its devastating consequences?

Amanda Solloway Portrait Amanda Solloway
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It is always awful to hear of these cases. I will write to the hon. Gentleman on the issue.

Ukraine: Military Equipment

Tuesday 27th February 2024

(9 months, 3 weeks 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

12:39
Bob Seely Portrait Bob Seely (Isle of Wight) (Con)
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(Urgent Question): To ask the Secretary of State for Defence if he will make a statement on international supplies of military equipment and ammunition to Ukraine.

James Cartlidge Portrait The Minister for Defence Procurement (James Cartlidge)
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The UK has been leading international support for the armed forces of Ukraine for 10 years since Russia first invaded Crimea in 2014, training more than 60,000 new recruits since 2015 and committing almost £12 billion in economic, humanitarian and military aid since 2022. From the UK-founded, UK-administered international fund for Ukraine, which has pledged more than £900 million, to spearheading capability coalitions, our efforts have paved the way and made a genuine difference. Our NLAW anti-tank missiles and our Javelins helped brave Ukrainians to devastate Putin’s menacing 40-mile armoured convoy, which was headed for Kyiv. We were the first to send main battle tanks with our Challenger squadron, plus 500 armoured vehicles and 15,000 anti-armour weapons.

Last week the Defence Secretary announced to this House a new package of 200 Brimstone anti-tank missiles, plus £245 million for artillery munitions. The UK will also co-lead an international capability coalition, alongside Latvia, to supply cutting-edge drones to Ukraine, in addition to the UK’s co-leadership of the international maritime capability coalition. The Defence Secretary has urged partners and allies to commit to long-term support for Ukraine. At the NATO Defence Ministers’ meeting on 15 February, the Defence Secretary and his counterparts from 14 NATO allies and Sweden signed an agreement on two new multinational procurement initiatives focusing on munitions and missiles. Spearheaded by the UK, these initiatives aim to increase defence industrial capacity across the Euro-Atlantic area, replenish stockpiles at pace and continue support to Ukraine.

Bob Seely Portrait Bob Seely
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I commend the Government for their impressive record, but does the Minister accept that the equipment pledged by NATO nations is not reaching Ukraine in anything like the amounts promised? Does he accept, for example, that less than a third of the 1 million shells promised by EU nations have arrived, that more than 300 artillery barrels will reach the end of their productive life this year, that very few pilots are being trained and that the Ukrainians are perilously short of air defence? This is at a time when the Russians are on a war footing, with 40% of all their Government spending geared towards the destruction of the Ukrainian state.

Specifically, may I ask whether Defence Intelligence and the Government reckon that the Ukrainians will be able to hold their current positions, and if so, for how long? When will artillery stocks run even lower and fall off a cliff edge? Will the Minister confirm that we have delivered on all our pledges? I was in east Ukraine last week. Does he understand that, after the obliteration of the frontline town of Avdiivka, the Ukrainians are now asking which of their towns will be the next to be destroyed by Russian artillery, while Ukrainian soldiers die because they lack kit? Finally, does he accept that the situation is becoming acutely dangerous for everybody, with the forces of fascism beginning to overpower free states and their NATO allies? Where does he believe we might be with security throughout Europe in the next few months?

James Cartlidge Portrait James Cartlidge
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I am extremely grateful to my hon. Friend and I pay tribute to him and all parliamentarians who have visited Ukraine and shown our solidarity and support for our ally. I know that he has a background as an officer in the Intelligence Corps, so he speaks not only with the passion we all share but with significant expertise on these matters. He will therefore be aware that there is a limit to what I can say on the operational situation and being drawn into trying to estimate the level of supplies. These are all sensitive and important points.

I think we can all agree that what my hon. Friend says about air support and training is important. I was at RAF Valley recently and, as I understand it, we are providing 26 Ukrainians with elementary flying training. We are flying the F-16 and we have Typhoon F-35s, while other countries will be providing the actual platforms. He is absolutely right to say that air defence is a critical part of the conflict and we need to supply more. We have provided over 1,000 air defence systems but we want to do more.

On the overall position, as I have said, we cannot provide a running commentary on the exact operational situation, but we provide regular tweets sharing what intelligence we can. Fundamentally, my hon. Friend is right to warn all of us, and indeed our allies, of the risk, were the situation to be reversed. We can say with some certainty that when the war started, we would all have been surprised to be in this situation with Ukraine having won back so much territory and, frankly, remained in the fight. That is thanks in a huge part to the role of the United Kingdom, and we should be proud of that.

As the Secretary of State confirmed in his recent oral statement, we provided NLAWs before Russia invaded and have been training Ukrainians since 2014—60,000 in total—but I know there is more to do. My hon. Friend has a very good understanding of these matters. These capability coalitions—one on drones and the other on maritime— are a good way to turn the support that has been provided into targeted and effective capability on the frontline. We are clear that we need to do more, and our allies need to stay with us in the fight.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Luke Pollard Portrait Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
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As we mark two years since Vladimir Putin’s brutal, illegal invasion began, it should be a source of pride to all in this House that the UK remains totally united and committed to supporting Ukraine. We must continue to stand with the Ukrainian people for as long as it takes for them to win.

On military help for Ukraine and on reinforcing our NATO allies, the UK Government have had, and will continue to have, Labour’s fullest support. At yesterday’s opening of the Paris summit, to shore up support for Ukraine, western leaders rightly made it clear that Russia is far from a spent force and that Putin will not stop at Ukraine if he wins. As Russia steps up its war effort, we must step up our support, and so must Ukraine’s other allies. Labour welcomes the 200 extra Brimstone anti-tank missiles and the £245 million artillery munitions package for Ukraine, which the Government announced this weekend.

Ministers favour ad hoc announcements over a fuller military aid plan for Ukraine, but how can industry invest and mobilise with confidence without a long-term plan to work against? On stepping up western support for Ukraine, how are we co-ordinating with our NATO allies to ensure that our munitions support provides Ukraine with the urgent and sustained help it needs? Of the £2.5 billion announced for 2024, can the Minister confirm how much is being spent on Ukraine and how much is being spent on UK operational costs at NATO bases?

Given the importance of the Paris summit for Ukraine, why was the Prime Minister unable to attend the event, unlike other key western leaders? There could be a change in Government this year, but there will be no change in Britain’s resolve to stand with Ukraine, to confront Russian aggression and to pursue Putin for his war crimes.

James Cartlidge Portrait James Cartlidge
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I am very grateful to the hon. Gentleman for continuing to show solidarity, for the consensus that exists across the House and, in particular, for specifically mentioning the Brimstone gifting and the £245 million recently announced for artillery munitions.

The hon. Gentleman talks about our longer-term plan. Just to be clear, the war is happening today and the key focus of the £2.5 billion for Ukraine this financial year is getting support into the country as soon as possible, which is when they need it. Of course, we want to have a long-term plan too. I am clear that the UK will play a very significant role in helping Ukraine, when it is fully free, to get back to the level of prosperity it expects. For now, we have to focus on what is a very challenging situation.

Drones are one of the most important capabilities we have seen in Ukraine, and they have arguably transformed the nature of warfare in this conflict. Last week I was pleased to announce our own uncrewed strategy and, in doing so, I talked about the Malloy T150 drone, which has done an incredible job, lifting blood, munitions and other key supplies to Ukrainian marines on the bank of the Dnieper. We have provided 4,000 drones to Ukraine, and we will keep doing that—we have the £200 million. Yes, it is about shells and munitions, but we also have to provide a way to fight with them; we have to assist to ensure that we deliver that capability, which is why those coalitions are so important.

I am glad that the hon. Gentleman supports us in the round, and we are sending a message that this House is united in supporting Ukraine.

Lindsay Hoyle Portrait Mr Speaker
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I call the Father of the House.

Peter Bottomley Portrait Sir Peter Bottomley (Worthing West) (Con)
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The Minister says the training started in 2014, which is the year after the House took, in my view, the wrong decision in the Syria vote; it led to Russia giving help to Assad, the taking of Crimea, the infiltration of eastern Ukraine and various other problems.

As Ukraine’s security is, in effect, our security and that of our NATO allies, will he confirm that we will do all we can to try to make sure that Ukraine is safe and that Russia, at some stage, returns to being a peaceful nation devoted to the prosperity of its own people, rather than doing down other people?

James Cartlidge Portrait James Cartlidge
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My hon. Friend makes an excellent point and he is absolutely right to say that their security is our security. We need to support Ukraine, because it is morally the right thing to do to support a free country that has been illegally invaded. We should also be clear that it is in our strategic interests and those of all of our democratic allies to do so, because we do not want to see an emboldened Russia, not least because of the impact that could have on other potential adversaries.

Lindsay Hoyle Portrait Mr Speaker
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I call the Scottish National party spokesperson.

Drew Hendry Portrait Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
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Ukraine is on the frontline, not only of its own battles, but of those of international democracy and law. We cannot leave the Ukrainians without in a time of need. Their fight is our fight, so let us look at what the UK Government can do. We must not allow Putin’s plan to wait until the international community loses interest to succeed. Will the UK Government prepare an International Criminal Court case against Russia for its bombardment of civilians in Ukraine? What more can the UK Government do to ensure the safety of Ukrainian skies, and to ensure a united and collective western effort in continued support of Ukraine?

James Cartlidge Portrait James Cartlidge
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Once again, I am grateful for the hon. Gentleman’s support and that of the SNP in ensuring that we have this strong consensus across the House in support of the Ukrainians. As he said, their fight is our fight—I strongly agree. He is also right about the ICC. As for where the Ministry of Defence is focused, he makes an important point about the threat in the air. As I said, air defence has been crucial, but of course that fight takes many forms; we need to look at not only ground-to-air systems, but drones, which have proliferated and had an extraordinary impact. We know that we cannot provide the F-16, which is the Ukrainians’ fighter of choice, but we have done what we can by providing the elementary flying training and I absolutely assure him that we will do everything we can.

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

Jeremy Quin Portrait Sir Jeremy Quin (Horsham) (Con)
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I welcome all that the Government have been doing, including on Brimstone and the package of £245 million-worth of ammunition. However, may I ask specifically about 155 mm shells and the BAE Systems production line? Has it now got the orders to ensure that it is working at maximum capacity, on a war footing, to produce all it can to support Ukraine and indeed, in due course, our own stockpiles?

James Cartlidge Portrait James Cartlidge
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It is a pleasure to take my first contribution from my right hon. Friend in the Chamber since he became Chairman of the Select Committee. I look forward to further discussion with him later this afternoon on other matters before the Committee. He is right to stress the importance of that contract—155 mm shells are one of the fundamental munitions we need to see both replenished for the UK armed forces and, where possible, provided into Ukraine, along with other key artillery classes. I can confirm that we signed that contract with BAE last July and it should lead to an eightfold increase in 155 mm production, initially in the Washington plant, but thereafter in south Wales. I am keen to see that get going as soon as possible.

Lord Spellar Portrait John Spellar (Warley) (Lab)
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The MOD has clearly done a decent job of supporting Ukraine, but I still doubt that the Government as a whole are seized of the urgent critical nature of this crisis. I return to the question I asked the Secretary of State last week: why, when it was clear early in 2022 that this was going to be very much an artillery war dating back to the last century, did it take until mid-2023 to place the order for additional artillery shells? The Minister should have the answer by now.

James Cartlidge Portrait James Cartlidge
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I refer to the previous answer I gave, where I was clear that we placed that order last July, as the right hon. Gentleman rightly said; that is for our own armed forces and it is an eightfold increase. But we have provided 300,000 artillery shells into Ukraine. We have procured them, Sir. We have done that not just from this country; we have done it through rapid procurement, through Defence Equipment and Support. All I can say is that I pay tribute to that effort. We all know that we need to go further. The other point is that this is not just about what we have procured; this country has played a leading role in ensuring that other nations join us and provide more munitions. That is as much a key part of the role that we have played.

Alec Shelbrooke Portrait Sir Alec Shelbrooke (Elmet and Rothwell) (Con)
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Last week, in the NATO Parliamentary Assembly joint session in Brussels, top military leaders described to us their concern that the EU ethical banking laws are going to stop investment in arms companies. Will my hon. Friend confirm that the UK will always ensure that the money needed to invest in making sure that Europe can protect itself against Russian aggression will be there and that the arms can be manufactured?

James Cartlidge Portrait James Cartlidge
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My right hon. Friend asks about an excellent point. Both the Secretary of State and I have commented on that. I have held meetings at the Treasury and with defence companies about the ESG—environmental, social and governance—issue, as well as with financial institutions, at Rothschild in the City, because it is extraordinary that anyone should think we should not invest in core munitions when we see now that the cause they support is peace, freedom and democracy. If we do not fund our defence sector, we simply will not be able to defend those fine principles.

Richard Foord Portrait Richard Foord (Tiverton and Honiton) (LD)
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President Zelensky said yesterday that without new military aid from the United States, Ukraine would be unable to defend the Black sea shipping corridor, which has enabled the export of 33 million metric tonnes of Ukrainian grain. That has been enabled in part by the supply by the UK of the Storm Shadow missile and by France’s supply of the SCALP missile. What are the Government discussing with German counterparts about their potential to supply their equivalent, the Taurus missile system?

James Cartlidge Portrait James Cartlidge
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I know that the hon. Gentleman also served and speaks with expertise on these matters. He is right to raise the issue of the strategic importance of the Black sea. We have had huge progress in that area. I believe that since we reopened that corridor, through the success that the Ukrainians have had, with our support, in pushing back the Russian fleet to the east, some 19 million tonnes of grain have got through. That underlines how important that corridor is, but he is right to say that we need to look at what more we can do. Obviously, I am not going to comment on sensitive matters about individual countries’ capabilities, but he can rest assured that we continue to engage with all our allies on these points.

Jesse Norman Portrait Jesse Norman (Hereford and South Herefordshire) (Con)
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The Russian invasion of Ukraine is a direct threat to Europe and of course to wider global security. As my hon. Friend will know, Russia has increased, as part of its war mobilisation, its production of shells and ammunition by some factor of 10—or it is planning to do so in the next two or three years. What conversations has he had across Europe and with NATO allies about the longer-term response to this serious challenge?

James Cartlidge Portrait James Cartlidge
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My right hon. Friend recently joined the Select Committee and I welcome him to it. He makes an excellent point. First, there is a lot of speculation about the level of production by the Russians. They have needed to increase that because they have lost a huge amount of ordnance and armoured vehicles and, tragically, a large number of personnel. On the long term, I draw his attention to the MPIs, which is where we are joining other NATO members for collective orders of ordnance. The first one we have announced is for missiles and for munitions. That is a powerful signal. We hope it will send a strong demand signal to industry in Europe, but it also sends a signal to Putin and the world that we are determined to stand together and stand up to Putin.

Nick Smith Portrait Nick Smith (Blaenau Gwent) (Lab)
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The UK has a great record of supporting Ukraine—for example, training Ukrainian troops is something we can be really proud of—but may I press the Minister on something? How much of the £2.5 billion for 2024 is being spent on Ukraine and how much is being spent on UK operational costs at NATO bases?

James Cartlidge Portrait James Cartlidge
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My right hon. Friend the Minister for Armed Forces answered that in detail at oral questions. The key point is that we will not do a line-by-line breakdown of every aspect of the £2.5 billion. I can assure the hon. Gentleman that it is an incredibly important step forward in our support to Ukraine. As he knows, we have been able to confirm that that includes, for example, £245 million on artillery munitions and £200 million on drones. Those are incredibly important commitments, and they go with all the other efforts we have made, but we know that there is more to do, with our allies.

Iain Duncan Smith Portrait Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
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Along with a group of colleagues, I went to the US before Christmas to try to persuade the Republicans there to vote this Bill through urgently—we had a marginal effect on them. The thing I said to them was, “You are facing an axis of authoritarianism; China, North Korea, Russia and Iran are all in league together and they are winning.” When I was in Ukraine, I saw the Ukrainians taking mines out with bayonets and not having the equipment they need. Does my hon. Friend agree that this has told us that none of us is ready for what war is really all about—barbed wire, minefields and artillery shells? Does he not agree that we need to do more?

James Cartlidge Portrait James Cartlidge
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I pay tribute to my right hon. Friend for his incredibly important efforts engaging with the US. Obviously, the positions the US takes and the decisions it makes on support are a matter for the US Government and legislature, but my right hon. Friend is right to make the wider strategic point. Surely we are united on the need to have a deterrent against all the adversaries and threats we face around the world. I sincerely hope it will not be the case, but if Russia were to make much more progress and succeed, it would embolden other adversaries. He is right about the horrors of warfare. That is why we need to invest in our own armed forces and conventional deterrent, but above all to keep supporting Ukraine as much as we possibly can.

Alison Thewliss Portrait Alison Thewliss (Glasgow Central) (SNP)
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The HALO Trust estimates that around 2 million landmines have been laid in Ukraine. Mike Newton from the HALO Trust has said:

“Ukraine cannot be rebuilt until the landmines are removed. Life itself depends on getting rid of them.”

What is the Minister doing to ensure that funds go to the demining of Ukraine? What more preventive work can we do internationally to persuade those countries that are supplying landmines to desist from doing so and to sign the landmines convention?

James Cartlidge Portrait James Cartlidge
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The hon. Lady’s excellent point about mines follows on from the point made by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith). I am happy to go away and look into that to see what we are able to say about what we are doing. She will appreciate that there is also the issue of naval mines. I believe we will be looking at that, but there is some sensitivity within the maritime capability coalition; I will look into the issue further. I cannot say that there is a button I can press to stop those countries that are providing those munitions, but we know Putin keeps some rather interesting company and that we, as democracies, need to stand together to ensure we support Ukraine in this fight.

Jack Lopresti Portrait Jack Lopresti (Filton and Bradley Stoke) (Con)
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Will my hon. Friend join me in paying tribute to the fantastic work being done by Defence Equipment and Support in my constituency in ensuring that the overwhelming amount of support and military equipment we have supplied arrives on time at the frontline? What can we do to speed up the process of collaboration in manufacturing in Ukraine between British and Ukrainian companies? That will be huge in the future to ensure that the Ukrainians can produce their own kit on the ground and provide a deterrent after they have beaten the Russians.

James Cartlidge Portrait James Cartlidge
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My hon. Friend is sterling in his championing of the Ukrainian cause and of the excellent work done by DE&S in his constituency. I have visited Abbey Wood twice and there is excellent leadership under Andy Start. DE&S has been responsible for the procurement of a huge amount of munitions and materials at pace in Ukraine, but my hon. Friend is right that we also need to think about the long term and how Ukraine can start to build its own industrial base. That is why we recently had our first defence trade visit there. I am keen to see much more of that and pleased to have his support for that work.

Catherine McKinnell Portrait Catherine McKinnell (Newcastle upon Tyne North) (Lab)
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May I take the opportunity to reiterate how proud we are of our armed forces personnel, who have worked around the clock to train and support Ukrainian recruits as part of the vital Op Interflex? I urge the Government to confirm where that programme will be after the summer and to make a commitment to it for as long as it takes Ukraine to win.

James Cartlidge Portrait James Cartlidge
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The hon. Lady makes the good point that we should pay tribute to all the personnel involved in Operation Interflex. We have provided a huge amount of training. I went to Salisbury plain to meet the Irish Guards who were training Ukrainian civilians of all backgrounds, who would have but weeks of training before returning to a pretty attritional conflict. We all need to reflect on that. It is an incredible operation that has had international support from many other nations. The hon. Lady is right that we are in it for the long term, and we will keep training Ukrainians to defend their homeland.

Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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I have just returned from Ukraine. There was absolutely nothing but praise for what Britain has done in providing the munitions and equipment required, and in standing up to Putin when so many others blinked at that moment. It is clear that what is happening in Ukraine will move out further. Putin is now more powerful than Stalin and is trying to emulate what Stalin did in eastern Europe. Can we agree that Europe is at war? This affects our economy and our security. We have shown leadership up to now, so can we continue by allowing frozen assets, based in the UK, belonging to Russia, to be slid across the table to Ukraine?

James Cartlidge Portrait James Cartlidge
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As ever, my right hon. Friend makes some excellent points. I pay tribute to him and other colleagues who went to Ukraine to show that we stand 100% with Ukraine, and to show our solidarity as parliamentarians with them as a free democracy. He makes an excellent point on frozen Russian assets. The Prime Minister was clear that he wants to look at how we can do that and made the point that, obviously, we have to work internationally, particularly with the G7. Initially we will be looking at the interest earned on those assets, but we should definitely be focusing on this across Government.

Neil Coyle Portrait Neil Coyle (Bermondsey and Old Southwark) (Lab)
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Will the Government retain UK air defence capabilities supporting NATO allies on the frontline, such as Poland? Can further medical units be dispatched to treat and rehabilitate any Ukrainian or Brit injured by Russian forces?

James Cartlidge Portrait James Cartlidge
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I apologise for missing the first part of the hon. Gentleman’s question; I will write to him on that. On the second part, within the training figures I mentioned, there is significant training for medical personnel. I am happy to include that in the letter. Whether it is training medical personnel or frontline soldiers, the effort we have put in place is huge, it is international and we will do everything we can to keep it going.

James Sunderland Portrait James Sunderland (Bracknell) (Con)
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The number of NATO member countries meeting the 2% GDP commitment is expected to rise from seven last year to 18 later this year. Indications from the US suggest that the US Government are more likely to release an expected $60 billion-worth of commitment to Ukraine once Republican congressmen have had their primaries. Will the Minister confirm that the British defence industry at home is now on a war footing and that we are best able to spend UOR—urgent operational requirement—money and deliver it to Ukraine?

James Cartlidge Portrait James Cartlidge
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My hon. Friend as ever asks an excellent question. As he highlighted, this has to be an international effort. There is a tendency to overplay the negative voices, but my experience from international meetings is of an overwhelming consensus, from small nations to large nations, and of a huge desire to keep supporting Ukraine in every way possible. Obviously, the role of the US is fundamental. I can give him the assurance that we will work with the British defence industry to ramp up production. We will be bringing forward a munitions strategy soon and the goal of always-on production will be most in the interests of both the military and our defence sector.

Nia Griffith Portrait Dame Nia Griffith (Llanelli) (Lab)
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Along with colleagues from across the House, I have just returned from a sobering visit to Ukraine, during which we heard about what some refer to as “the slow yes” from a number of our allies on providing military supplies. That is costing lives on the frontline and limiting military options. Will the Minister tell us what specific recent efforts the Government have made to convey a real sense of urgency to key allies? Will he urge his Cabinet colleagues to redouble their efforts in this respect?

James Cartlidge Portrait James Cartlidge
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I assure the hon. Lady that at every international meeting and engagement we attend, whether multilaterally or bilaterally, we do everything possible to encourage our allies to join us in support. As I said in answer to the previous question, although there is a tendency to pick out negative voices, the overwhelming consensus among our allies is to want to support and do more. There will always be a debate about how quickly we can get stuff into line. We have done everything possible to get our support out as quickly as possible, including predating the war itself, so we can be proud of our efforts. I am acutely aware that we need to do more, particularly in concert with our allies.

James Gray Portrait James Gray (North Wiltshire) (Con)
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Partly as a result of the magnificent effort we have made in the past couple of years, our stockpiles have gone and our warehouses are empty. I very much welcome the Government announcement about £245 million for artillery shells described by the Minister, but does he agree there have been a series of legalistic and bureaucratic delays to the issuing of contracts? British manufacturers are frustrated, because they are unable to crack on with producing the kind of goods we need.

James Cartlidge Portrait James Cartlidge
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I would not say that the cupboard is empty. We have to have our own levels of holdings for our own military, but we have gifted as much as we can. The obvious example is the AS-90 that we gifted; we rapidly replaced that with the interim artillery solution from Sweden, the Archer gun. I am pleased to say that earlier this morning I announced the launch of the next stage of the new medium helicopter competition, which is an important procurement for the UK military. That speaks to the fact that we are still carrying out core procurement for ourselves.

In addition to 155 mm shells, we have placed orders for lightweight multirole missiles, Starstreak and a whole range of other munitions so we can replenish our stocks. We should not be afraid to say that what we have donated, supported and procured internationally, which is a huge part, has played a massive role that we should be proud of, while recognising the need to do as much as we can, with our allies, going forward.

Sarah Green Portrait Sarah Green (Chesham and Amersham) (LD)
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I was privileged to join colleagues on a cross-party delegation to Ukraine this weekend. The shortage of equipment, ammunition and supplies came up time and again. How are the UK Government monitoring and holding accountable those involved in the supply chain to prevent delay, misuse or diversion of military equipment?

James Cartlidge Portrait James Cartlidge
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That is a good question. Obviously, much of this work is happening internationally and in-country with Ukraine. I cannot go into operational details, but, absolutely, it is one thing to procure the equipment and capabilities—whether that is buying internationally, gifting or contributing to international funds, as many countries do, in order that other countries may do that—but we need to make sure that it all gets to the frontline.

Vicky Ford Portrait Vicky Ford (Chelmsford) (Con)
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In all the discussions that we have had about military hardware, it is easy to forget the human cost of this war, not least the 20,000 children stolen by the Russians and never returned to their families. As we said on day one, if Putin wins in Ukraine, he will not stop there; other countries will be next. That is why it is vital that the UK and allies continue to provide Ukraine with the weapons that it needs. But Russia must also pay. May I ask the Government to double down on the work that they are doing to use the proceeds of frozen Russian assets to pay for this war and the reconstruction of Ukraine, so that Russia knows that it cannot get away with this?

James Cartlidge Portrait James Cartlidge
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My right hon. Friend, who speaks with great passion, is right to talk about the need to hold Russia to account. We have said that repeatedly. We have said that in reference both to the war itself and to specific actions, such as those involving Alexei Navalny and so on. We are under no illusion about the nature of that regime and what would happen if it were to succeed. We have had that view right from the beginning, and it is brilliant that so many countries have joined us in that effort. I strongly believe that without our efforts Ukraine would not still be in the fight. How do we keep the Ukrainians there? We must keep providing the munitions that we have described, keep training the personnel in Interflex, and keep ensuring that our allies join us in all of those efforts.

Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)
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The US State Department has reportedly calculated that North Korea has delivered 10,000 containers of munitions to Russia for deployment in Ukraine. What can be done to disrupt the supply chain?

James Cartlidge Portrait James Cartlidge
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That is not a straightforward question to answer. As I said right at the beginning about the things that ultimately come from military intelligence, these are sensitive matters, but the hon. Gentleman can rest assured that these are priorities that we look at very closely with our international partners.

Tim Loughton Portrait Tim Loughton (East Worthing and Shoreham) (Con)
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I, too, joined my hon. Friend the Member for Isle of Wight (Bob Seely) and other colleagues in Ukraine at the weekend. The point about the “slow yes” to the provision of kit and funds is well made by the hon. Member for Llanelli (Dame Nia Griffith). As well as conventional warfare, the Russians are increasingly using cyber warfare, recently taking out virtually the whole mobile network, with implications for the frontline as well. Central to countering that is advanced satellite technology provided by British companies, which also has applications for mine detection. Having recently had a spread of 30 metres, they can now get it down to 5 cm with heat detection devices. These are crucial, so can we make sure that we do not just limit our support to conventional warfare ammunition, but look at high-tech and cyber warfare, which will be increasingly necessary?

James Cartlidge Portrait James Cartlidge
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My hon. Friend makes an extremely important point. We knew already that the battle space is contested and that forces need to be closely integrated, but what Ukraine has shown above all else is the extraordinary extent to which electronic warfare plays a role. The mass jamming across the domain has to be factored into any kit that is used, and it will have to be factored into procurement going forward. We must be aware of these developments. We have our own brilliant resources, such as the Defence Science and Technology Laboratory, and there are things that we have done that are sensitive and that have provided support as far as possible, but he is right to talk in particular about the importance of the space domain. The UK is lucky to have a strong, sovereign space industry, supporting defence in the civil sector. Going forward, we need to be aware of how warfare is changing and be able to respond rapidly with our procurement.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I thank the Minister for his helpful and encouraging answers. Having read in the press recently about the price of military supplies and the protracted situation in Ukraine, it is clear that help with military supplies is essential. As I understand it, missiles can cost as much as £1 million each. Is there any more that can be done with our NATO allies, financially, physically and militarily, to help ensure that Ukraine continues to have the means to stave off the ceaseless attack by Russia?

James Cartlidge Portrait James Cartlidge
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As ever, we save the best till last. [Interruption.] Oh, the hon. Gentleman is second to last, my apologies. Nevertheless, I shall always say that when he is called to speak.

The hon. Gentleman makes a very good point about the cost. When we talk about the multilateral procurement initiative, we could argue that it is like a bulk buy between nations. Obviously, we want to see economies of scale for that in exchange for the massive demand signal that we will be providing for European industry. However, the key point is not just to send a demand signal, but, ultimately, to send a deterrent signal. If we in Europe rally round in European NATO along with our US allies and step up the pace on industrial reinvigoration in the defence space, that will in itself be part of the deterrent message that we send to Putin.

Tom Randall Portrait Tom Randall (Gedling) (Con)
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Along with colleagues from across the House, I was in Ukraine at the weekend, and I was struck by the gratitude of the Ukrainians to the UK. I was also struck by the words of General Wesley Clark, speaking at the Yalta European strategy conference, when he made a prediction that we are in the second year of a six-year war. If that prediction is accurate, will the Minister outline what efforts are under way to locate compatible ammunition supplies from countries with older stocks, and does he agree that it is important to get supplies out of stockpiles and on to the frontline in Ukraine, so that we can tip this war in Ukraine’s favour?

James Cartlidge Portrait James Cartlidge
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I pay tribute to my hon. Friend for joining other colleagues in going out to Ukraine, showing the solidarity that we have for it and the strong cross-parliamentary consensus. Often when we talk about procurement for Ukraine, there can be some misunderstanding. Just to be clear, an awful lot of the munitions that have been provided were sourced internationally, but we do not necessarily go into the minute detail of that. He is absolutely right; initially that meant providing what was largely ex-Soviet stock, but in the long term we want to enable the Ukrainians to produce munitions to NATO standard. We want to work closely with them on that, and that is how we will get their industry into order so that they can sustain their own ability to fight over the long term.

Israel and Gaza

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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13:17
Andrew Mitchell Portrait The Minister of State, Foreign, Commonwealth and Development Office (Mr Andrew Mitchell)
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May I start by congratulating you, Mr Speaker, on your successful visit early last week to St Helena?

With permission, I shall now update the House on the situation in Israel and the Occupied Palestinian Territories. Let me begin by reiterating Israel’s right to defend itself against Hamas. We condemn the slaughter, abuse and gender-based violence perpetrated on 7 October 2023, Hamas’s use of civilian areas, their continued failure to release hostages and their ongoing launching of attacks into Israel. Equally, we are deeply concerned about the humanitarian situation in Gaza, with tens of thousands of innocent civilians killed and injured.

The most effective way to end the fighting in Gaza—the absolute focus of our diplomatic efforts right now—is to agree an immediate humanitarian pause. That would allow for the safe release of hostages and a significant increase in the aid going to Gaza. Crucially, it would also provide a vital opportunity to establish the conditions for a genuinely long-term and sustainable ceasefire without a return to destruction, fighting and loss of life. That is the position shared by our close partners. It is an outcome that we believe is in reach right now and we urge all sides to seize it.

Many people may ask, including some in this House, why we are calling for a pause but not an immediate ceasefire. We do not believe that doing so, hoping that it somehow becomes permanent, is the way forward. Simply calling for a ceasefire will not make one happen. There is a different and better way to stop the fighting permanently: to push for a pause and, in it, secure a sustainable ceasefire that can hold for the longer term without a return to the fighting.

The British Government have set out the vital elements to achieving a lasting peace: the release of all hostages; the removal of Hamas’s capacity to launch attacks against Israel; Hamas no longer being in charge of Gaza; the formation of a new Palestinian Government for the west bank and Gaza, accompanied by an international support package; and a political horizon that provides a credible and irreversible pathway towards a two-state solution. Once we secure a pause, we will need to take action on all those elements to create irreversible momentum towards peace.

Meanwhile, Britain and our partners continue to do all we can to alleviate the suffering. We trebled our aid commitment this financial year, and we are doing everything we can to get more aid in and open more crossings. Last week, Britian and Jordan airdropped life-saving aid to a hospital in northern Gaza. The airdrop provided 4 tonnes of vial supplies, including medicines, fuel and food for hospital patients and staff. The Tal al-Hawa Hospital, set up by the Jordanian armed forces, is located in Gaza City and has treated thousands of patients since the start of the crisis.

Women are bearing the brunt of the desperate humanitarian situation in Gaza today. Many thousands are pregnant and will be worrying about delivering their babies safely. That is why over the weekend we also announced £4.25 million of new funding for the United Nations sexual and reproductive health agency in response to an appeal for the Occupied Palestinian Territories. That new UK funding will help make giving birth safer and will improve the lives of mothers and their newborn babies.

It is clear, however, that the flow of aid needs to be rapidly and significantly scaled up. We have reiterated the need for Israel to open more crossing points into Gaza, for Nitzana and Kerem Shalom to be open for longer, and for Israel to support the UN in distributing aid effectively across the whole of Gaza. The Foreign Secretary’s representative for humanitarian affairs in the Occupied Palestinian Territories, Mark Bryson-Richardson, is based in the region and is working intensively to address the blockages preventing more aid from reaching Gaza.

We also continue to urge Israel to limit its operations to military targets and avoid harming civilians and destroying homes. We have expressed our deep concern about the prospects and consequences of a military incursion into Rafah. More than half of Gaza’s population are sheltering in the area, including more than 600,000 children, and they have nowhere to go. The Rafah crossing remains vital to ensure aid can reach the people who so desperately need it.

The path to a long-term solution will not be easy. Ultimately, a two-state solution is the best way to ensure safety and security for Israelis and Palestinians. The Foreign Secretary underlined that at the G20 Foreign Ministers meeting in Rio last week. The Prime Minister and all ministerial colleagues will continue to press for that in engagements with regional partners, including with Prime Minister Netanyahu.

We welcome the prospect of further normalisation agreements between Israel and Arab partners. We are committed to supporting their enduring success and efforts to ensure that normalisation delivers benefits for the Palestinians too. Our long-standing position remains that we will recognise a Palestinian state at the time that is most conducive to the peace process.

The Palestinian Authority has an important long-term role to play and will need continued support from us and our partners, but it must also take concrete steps on reform. The Palestinian people need a technocratic and effective Administration that can win the confidence of the people of Gaza. We stand ready to support the Palestinian Authority to achieve that aim, following the announcement yesterday of the resignation of the Prime Minister and the previous set of Ministers. We also remain concerned about the situation in the west bank, and have taken action in response to extremist settler violence.

I repeat our commitment to finding a lasting resolution to this conflict that ensures that Israelis and Palestinians can live in the future with dignity and security. The goal of our diplomacy in the middle east is to see an end to the fighting and create a permanent peace based on a new political horizon for the region. We will continue working tirelessly to make that happen.

13:25
David Lammy Portrait Mr David Lammy (Tottenham) (Lab)
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I thank the Minister for advance sight of his statement. Once again, I note with disappointment that, given the seriousness of the geopolitical environment, the Foreign Secretary is absent from scrutiny by Members on both sides of the House.

Since the Minister’s last statement, there has been another month of intolerable civilian death, famine and disease in Gaza; another month of hostage families in Israel living in anguish; another month of worsening regional escalation; another month of war that cannot and must not go on.

Unlike the Government, Labour has always been clear that Israel must comply with the International Court of Justice’s orders. The ICJ said:

“Israel must take measures to ensure humanitarian access”.

But last week the World Food Programme suspended its aid operations in northern Gaza. Médecins Sans Frontières said:

“We no longer speak of a humanitarian scale-up; we speak of how to survive even without the bare minimum.”

The Association of International Development Agencies tells me that visas for 100 humanitarian workers in Gaza and the west bank have expired or are about to expire. There have been no humanitarian visa renewals since the outbreak of this war, leaving humanitarian workers facing deportation when the Palestinian people need them most. Will the Minister tell the Israeli Government that humanitarian visas must be renewed now, that aid into Gaza must flow unimpeded now, and that Israel must comply with all measures set out by the ICJ now?

It is with modesty that we debate Gaza in this House, because it is through diplomacy, not debate in Westminster, that we will ultimately secure an end to this war. There appears to have been progress over the weekend in Paris, so will the Minister update the House on the deal involving a truce in exchange for hostages? Is he optimistic that it will be achieved by Ramadan? We all fear the war continuing into Ramadan. Will he assure us that the Government are being absolutely crystal clear to Israel that its threatened full offensive on Rafah must not go ahead?

I hear the Minister when he says that simply calling for a ceasefire will not make one happen, but neither will calling for a pause, which confuses our shared desire for fighting to stop and not restart. I therefore ask the Minister, in all good conscience, whether he really disagrees that our goal should be an immediate ceasefire now. Does he disagree that both sides should stop the fighting now? Does he disagree that all hostages should be released now? Does he disagree that aid should flow unimpeded into Gaza now? Does he disagree that Britain should work with international partners to recognise the Palestinian state now? Does he disagree that we should work together to establish a diplomatic process to deliver a two-state solution?

I respect the Minister, the right hon. Gentleman, greatly, and I strongly suspect that he agrees with every word of Labour’s position, and that the Foreign Secretary does too. Can we speak together, as we have done on Ukraine? Our words bring pressure and send a powerful signal that, for once, we can put the political games aside and meet as the Government and the official Opposition to agree a shared position and put out a statement calling for an immediate humanitarian ceasefire now.

Andrew Mitchell Portrait Mr Mitchell
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I thank the shadow Foreign Secretary for what he said. I must say to him that I set out at some length in the debate last week the Government’s position in the amendment that we tabled. Having listened to him with great care today, I must say that his position, on behalf of the official Opposition, is incredibly close to what the Government set out in our amendment last week. He asks me to set out clearly our position; our position was very clearly set out in that amendment. I am warmed by the fact that his position today appears to be almost identical to that.

The right hon. Gentleman asks what the Government’s position is. We have been clear: we are trying to negotiate. He asks me whether I agree with him on an immediate pause to get hostages out, and to get incredibly badly needed aid in, leading to a sustainable ceasefire. He mentions the position on humanitarian visas and humanitarian workers. There is nothing between us on that; we are doing everything we can to advance that position.

The right hon. Gentleman asks me about recent humanitarian entry. I can tell him that on Sunday 25 February, 94 trucks got in, but on 22 February, 220 trucks got in—178 through Kerem Shalom and 42 through Rafah. That was the highest number since 17 January. Those figures show that it is possible to get vital humanitarian aid in, and we must do everything we can to ensure that those higher levels continue.

The right hon. Gentleman asks about the hostage negotiations. There has been a great deal in the press over the weekend. He asks whether I am optimistic. The answer is that I am neither optimistic nor pessimistic, but I can tell him that the British Government are doing everything we can to ensure that negotiations are successful.

Kit Malthouse Portrait Kit Malthouse (North West Hampshire) (Con)
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I am sure that the Minister agrees that it is profoundly in the British interest for there to be a properly functioning system of international rules and laws, and that the International Court of Justice is central to that system, so what concrete steps are the Government taking to enforce the Court’s ruling on the conflict—not condemn, press or discuss, but enforce it? Is it the Minister’s view that an assault on Rafah, given its impact on civilians—including, as he pointed out, 600,000 children—would be in line with the ruling of the International Court of Justice?

Andrew Mitchell Portrait Mr Mitchell
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On his latter point, my right hon. Friend heard what I said in the statement. As the whole House knows, the rulings of the Court are binding and must therefore be respected. However, I point out to him that a recent episode of the “Law & Disorder” podcast, by three of the UK’s most experienced jurists, including two senior Members of the other place, concluded that it was not possible, at the time that episode was made, to declare that Israel was in breach of international humanitarian law.

Lindsay Hoyle Portrait Mr Speaker
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I call the SNP spokesperson.

Brendan O'Hara Portrait Brendan O’Hara (Argyll and Bute) (SNP)
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I thank the Minister for prior sight of his statement. We welcome the news that a ceasefire deal may be edging closer. We have been calling for a ceasefire and hostage-release deal since it became apparent that Israel’s self-defence had turned into a war against an entire civilian population —a war in which, in just five months, 30,000 people have been killed, 80,000 injured, and 2 million displaced. Now, 500,000 innocent people face starvation, not because food is not available, but because of a premeditated decision to impose collective punishment—one that has deliberately stopped food getting to those who need it.

Throughout this unimaginable horror, the UK continues to profit from the carnage by selling weapons to Israel. Shamefully, there has been no real desire or attempt from the UK to make the slaughter stop. The Government seem happy to continue providing tacit support for this illegal occupation, this systematic decades-long oppression and persecution, and now the ethnic cleansing and collective punishment that goes with it.

If and when we get a US deal to the UN, what action will the UK Government take? Voting for a ceasefire cannot happen in isolation. Will the UK Government stop selling weapons to Israel? Will they finally get behind the International Court of Justice investigation? Will they fund, as they did quite rightly in the case of Ukraine, an International Criminal Court investigation of Israel’s prosecution of this conflict? Whatever happens, Minister, this sorry episode will be remembered for being one of the most shameful in the history of British foreign policy, because we have witnessed a complete dereliction of all moral and legal responsibility from a Government and a Parliament that, at the time of greatest humanitarian crisis, have simply looked the other way. Quite rightly, history will judge them harshly for it.

Andrew Mitchell Portrait Mr Mitchell
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I simply do not think the idea that the Government have looked the other way carries any possible credibility at all. The hon. Gentleman might remember that the source of all this was the 7 October pogrom committed against the Israeli people—the worst killing of Jewish people at any time since the end of the second world war. There needs to be some balance in what is said, and the language that he uses is not helpful to the central aim that we all have: to bring about a ceasefire, and get hostages out and aid in.

Also, the hon. Gentleman should remember that Britain has the toughest weapons regulation and arms export regime of anywhere in the world. He talks about collective punishment, but the point that he misses is that our determination since day one has been to get as much food as we possibly can into Gaza. If he looks back at everything the Government have said on this, we have been working as hard as anyone to get that humanitarian relief into Gaza. I submit that beneath the sound and fury of what he says, there is more substantial agreement between his party and the Government than he recognises.

Stephen Crabb Portrait Stephen Crabb (Preseli Pembrokeshire) (Con)
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I thank my right hon. Friend for coming to the House and setting out a clear and principled statement. As he knows, our position is thoroughly in line with that of our partners—the ones who are involved in very serious and sensitive negotiations right now to end the fighting. Will he say a bit more about the concrete steps towards reform? He mentioned the Palestinian Authority and the resignation of Prime Minister Shtayyeh yesterday. Do the reforms that he has in mind include an end to endemic corruption, to incitement to violence through the school curriculum, and to the terrible policy of paying convicted terrorists a reward for having carried out murder?

Andrew Mitchell Portrait Mr Mitchell
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My right hon. Friend recognises that there will need to be significant changes in the approach that we have made on many of those issues. The British five-point plan encompasses most of what he believes should happen: the release of all Israeli hostages; the formation of a new Palestinian Government for the west bank and Gaza, accompanied by an international support package that would recognise many of the things that he has said; removing Hamas’s capacity to launch attacks against Israel; Hamas no longer being in charge of Gaza; and a political horizon that provides a credible and irreversible pathway towards a two-state solution. Within those five points rest the answers to almost every point that he raises.

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

Sarah Champion Portrait Sarah Champion (Rotherham) (Lab)
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My Committee and I were at the Gaza border last week trying to get first-hand testimony of the 2 million stories of suffering that now represent Gaza. What can I say to the House? What we are hearing is just a tiny fraction of the horror that is going on out there. Will the Minister clarify one thing with the Israelis? We spoke to a senior UN security person who said that drones flying overhead are gathering data that artificial intelligence algorithms then translate into targets. We know that civilians, humanitarians and medics are being killed, so will the Minister urge Israeli defence to ensure that the algorithms protect the people that they are supposed to under international humanitarian law?

Andrew Mitchell Portrait Mr Mitchell
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The Chairman of the Select Committee makes a very good point, and I look forward to meeting her later today to discuss this and other matters. I believe that the point that she has made is addressed by the fact that, just as in the UK military, targeting in Israel is subject to lawyers being present in the room and legal advice. That should give her some comfort on her specific point about drone targeting.

Mark Pritchard Portrait Mark Pritchard (The Wrekin) (Con)
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On the post-conflict governance of both the west bank and Gaza, does the Minister share with me some concern that while the Prime Minister of the Palestinian Authority has resigned, there are still key Fatah people in place? He will know that in 2007, the Palestinian people in Gaza rejected Fatah, and we all saw where that ended up on 7 October. Why does he, along with the United States, think that Fatah will be part of the—albeit technocratic—post-conflict governance solution for both the west bank and Gaza?

Andrew Mitchell Portrait Mr Mitchell
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My right hon. Friend makes an important and interesting point. The new Government on the west bank who have resulted from the resignation of the Prime Minister over the weekend are an interim Government, and many of these points can be addressed during the period of interim Government before we move to a new Government on the west bank.

Richard Foord Portrait Richard Foord (Tiverton and Honiton) (LD)
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I welcome the Minister calling publicly for Israel to limit its military operations to military targets. In turn, we should recall that hostage taking is strictly prohibited under international humanitarian law, and the International Committee of the Red Cross should be granted access to captives held by Hamas. In the long term, I and the Liberal Democrats believe that Israel would be more secure following a successful negotiation based on a two-state solution. Does the Minister agree with us that negotiations should begin from the position that the Palestinian state should be based on the 1967 borders?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Gentleman makes a good point, but he will have seen from the Government’s amendment last week that a very clear process is going on. I very much hope that his party can support it.

Andrew Selous Portrait Andrew Selous (South West Bedfordshire) (Con)
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I know that the Government are doing everything they can to get food into Gaza, but we hear increasing numbers of reports of malnourishment and even starvation of adults and children. Will the Government say to the Israelis that there really is no acceptable reason to not allow food in now?

Andrew Mitchell Portrait Mr Mitchell
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My hon. Friend is right: there is no acceptable reason. That is why the Government are pressing so hard to get additional humanitarian support into not only the southern part of Gaza, but the northern part.

Afzal Khan Portrait Afzal Khan (Manchester, Gorton) (Lab)
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The Minister told the SNP spokesperson, the hon. Member for Argyll and Bute (Brendan O’Hara), that there needs to be some balance, yet the word “accountability” seemed to be missing from his statement. The UK Government recognise the jurisdiction and independence of the ICJ, which is of course investigating the alleged war crimes and genocidal actions of the Israeli Government in Gaza. As a champion of international law and human rights, will the Minister confirm that his Government recognise that Israel has an obligation to comply with the ICJ’s ruling of 26 January, and that the UK will support the Court’s decision to issue an opinion examining the legality of the occupation?

Andrew Mitchell Portrait Mr Mitchell
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On the hon. Gentleman’s first point, we are very much in favour of accountability and transparency. That is at the heart of the reason why both our parties have been strong supporters of the International Criminal Court. He will be aware of the legal position on the ICJ’s rulings, which I set out a moment or two ago.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
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In attempting to build confidence for a humanitarian pause, we have to remember that the last time a pause was negotiated, Hamas broke it, rearmed and started firing again, and stole the international aid that was going in to help those poor Palestinians. What measures will my right hon. Friend take to ensure that the precondition for a humanitarian pause is the release of hostages; that international aid actually gets to the people who need it, and is not diverted by Hamas; and that Hamas respect such a pause?

Andrew Mitchell Portrait Mr Mitchell
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My hon. Friend is correct. He underlines the great difficulty in negotiating and agreeing a pause or ceasefire when one of the parties is absolutely clear that they do not want one, and that they wish to replicate the events that took place on 7 October. That is the official position of Hamas.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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What is the Minister’s assessment of the effect of the UK’s abstention on last week’s Security Council vote on the US and its position?

Andrew Mitchell Portrait Mr Mitchell
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We are working towards a further United Nations Security Council resolution. Britain is continuing, as it has from the start, to try to bring people together behind the common position that I set out earlier. We will continue to do so in respect of future United Nations Security Council resolutions whenever we can.

Alec Shelbrooke Portrait Sir Alec Shelbrooke (Elmet and Rothwell) (Con)
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Hamas is a terrorist organisation full of rapists, murderers and repressors—that cannot be overlooked at any time in these conversations. The reality is that the Gaza area has had hundreds of millions of dollars and other currency invested in it. I welcome my right hon. Friend’s statement and associate myself with everything in it. He has talked about how the rebuilding will happen afterwards, so I ask him to ensure that as part of that rebuilding, the aid that will need to go in is used effectively to make that area the prosperous area it can be once it is free from the tyranny of those terrorists.

Andrew Mitchell Portrait Mr Mitchell
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My right hon. Friend sets out very well one of the key aspects of the five-point plan, which Britain is doing everything we can to see implemented.

Gavin Newlands Portrait Gavin Newlands (Paisley and Renfrewshire North) (SNP)
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Just a few weeks ago, in a debate on arms exports to Israel, the Minister for Trade Policy told Westminster Hall:

“We take our obligations in this space exceptionally seriously. As I have shown before, we have acted to change policy in relation to changing circumstances on the ground.”—[Official Report, 12 December 2023; Vol. 742, c. 272WH.]

The circumstances are tragic and brutal, and crystal clear to anyone willing to see them: Gaza is being razed to the ground and civilians actively targeted, potentially using the very equipment that the UK is exporting to Israel. Over 12,000 children have been butchered, with the Israel Defence Forces busy taking selfies over the ruins and bodies. What exactly will it take for this Government to suspend arms exports to Israel?

Andrew Mitchell Portrait Mr Mitchell
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The position that the Minister set out in Westminster Hall was absolutely correct. The Government take legal advice on this matter, the arms export Committee does its work effectively, and we will continue to act on the advice that we are given when we are given it.

Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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As I said last week, a ceasefire is a contract between two sides that is overseen by a third party. Neither side is agreeing to a ceasefire right now, nor is there a third party in place to oversee it. I am happy to say today that I want a ceasefire and the steps to get us there, and I also want Parliament to speak with a single voice, which is so much more powerful than our tabling motions that we then divide the House on. Speaking with one voice will require consensus and compromise, so before we risk repeating last week’s fiasco that saw tensions rise, I invite the Minister—as he has alluded to in his remarks—to quietly bring together the Opposition parties at No. 10 to see whether a consensus line can be agreed to avoid this House returning to the circus we saw last week.

Andrew Mitchell Portrait Mr Mitchell
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I thank the former Chairman of the Defence Committee for his wise and sensible approach. As I said earlier to both the shadow Foreign Secretary and the SNP spokesman, if we study carefully the Government amendment that was tabled in the SNP debate last week, we see a very substantial degree of agreement. We must try very hard to build on that so that the House speaks with one voice, as my right hon. Friend says.

Rachael Maskell Portrait Rachael Maskell (York Central) (Lab/Co-op)
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It has been three months since the pause between 24 and 30 November, and at that point the aid could not reach people because of the infrastructure challenges. Today, those infrastructure challenges have escalated, and certainly a pause would not serve to get that aid into the places it needs to go. Why will the Minister not review his position in light of the fact that, to date, it has not achieved what it needs to: ensuring that humanitarian aid reaches all the people who need it? That will require a ceasefire, will it not?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Member accurately sets out the fact that what was hoped for some weeks and months ago has not been realised, but that should merely incentivise us to redouble our efforts to get the necessary aid and support into Gaza. I would point out that Jamie McGoldrick, the highly experienced UN resident co-ordinator, said over the weekend that he hopes it will be possible for the United Nations to return to Khan Younis when military operations end there. That shows that the situation is dynamic, and we are doing anything we can to move with it to achieve the results that she and I both want.

Adam Holloway Portrait Adam Holloway (Gravesham) (Con)
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Given the humanitarian situation in Gaza, what does the Minister think is stopping Hamas releasing the hostages?

Andrew Mitchell Portrait Mr Mitchell
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To some extent, my hon. and gallant Friend answers his own question. Dealing with an organisation such as Hamas is extraordinarily difficult, as we have seen over recent weeks and months.

Alistair Carmichael Portrait Mr Alistair Carmichael (Orkney and Shetland) (LD)
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Have the Government of Israel yet shared with His Majesty’s Government their purported evidence of United Nations Relief and Works Agency complicity in the attacks of 7 October, and if so, when did they do it?

Andrew Mitchell Portrait Mr Mitchell
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The review of UNRWA, as the right hon. Member may know, is being conducted first and foremost by the independent UN Office of Internal Oversight Services, and secondly, Catherine Colonna, the former French Foreign Minister, is engaged in writing a separate report. It is to both those two organisations that the evidence is required to be delivered.

James Sunderland Portrait James Sunderland (Bracknell) (Con)
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Few would deny Israel’s right to self-defence, but the ongoing events in Gaza are difficult to stomach. Can the Minister please confirm to the House that everything possible is being done with our international partners to demand Israeli restraint?

David Linden Portrait David Linden (Glasgow East) (SNP)
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The Minister made great play in his statement of saying that

“we also announced £4.25 million of new funding for the United Nations sexual and reproductive health agency in response to an appeal for the Occupied Palestinian Territories.”

How can he compare that £4.25 million figure with the amount of money that UK companies are benefiting from in arms sales that are slaughtering thousands of children?

Andrew Mitchell Portrait Mr Mitchell
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As the hon. Gentleman will know, we have tripled our aid to the Occupied Palestinian Territories. While it may seem like a relatively small figure, we are careful guardians of British taxpayers’ money and we spend it on what we know we can do effectively. He will understand, from the position that exists at the moment on the west bank and in Gaza, the difficulty of making these subventions really count on the ground, but he will also understand the great need for them.

Rehman Chishti Portrait Rehman Chishti (Gillingham and Rainham) (Con)
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Can the Minister understand that some of us who are calling for an immediate ceasefire now are doing so against the backdrop of the horrific loss of innocent lives—1,200 innocent Israelis and 29,000 Palestinians? Our previous strategy from November of getting hostages out and getting aid in through humanitarian pauses, which I supported, has not worked. That is why we are advocating for a new strategy.

The world is looking to the United Kingdom to lead at the Security Council, so can the United Kingdom now lead and get that ceasefire, and ensure as part of that motion that religious places of worship are protected? If that is not included—given what we saw with the storming of al-Aqsa—that would kick things off again. Please can we ensure that there is an immediate ceasefire and, as part of the Security Council resolution, that all places of worship are protected, especially as we are coming into Ramadan, Passover and Easter?

Andrew Mitchell Portrait Mr Mitchell
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We cannot will a ceasefire unless both the protagonists are willing to endorse it. That is why Britain has argued consistently that the first thing to do is to get a humanitarian pause, so that we can get the hostages out and humanitarian aid in, and then build on that towards a ceasefire. That is the right thing to do in these circumstances. As far as the next United Nations Security Council resolution is concerned, we are doing everything we can to ensure that we make the progress the House quite rightly wants to see.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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We have heard details of the most appalling humanitarian situation in Rafah, with Palestinian civilians surviving on weeds, animal feed and even birdseed. Have the UK Government sought or secured any assurance that Israel will not launch a ground invasion of Rafah?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Lady will know that we are not in control of events. We have given our very strong advice and view, and the voice of this House will have been heard on the specific point she makes.

Anna Firth Portrait Anna Firth (Southend West) (Con)
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I thank the Minister for his statement, and I welcome the fact that the UK is now promising more humanitarian support for women and girls, who always bear the brunt in conflict situations around the world. I welcome the £4.25 million of new funding for the United Nations sexual and reproductive health agency, but what are we doing to make sure that the money actually gets out of the agency and down to the ground to help the thousands of women who he says are waiting to give birth?

Andrew Mitchell Portrait Mr Mitchell
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My hon. Friend accurately identifies the need, and we are seeking, through this small but vital amount of money, to meet as much of that need as we practically can. I give her and the House the commitment that, if there is in due course the opportunity to do more on this front, we will certainly do it.

Imran Hussain Portrait Imran Hussain (Bradford East) (Lab)
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While over 1 million people continue to starve, the aid delivered to Gaza over this month fell by half compared with January. The Minister speaks about wanting to see more aid reach Gaza to alleviate the humanitarian nightmare that Palestinians face, but he is clearly ignoring reports from Human Rights Watch that Israel is blocking aid to Gaza. That is in direct contravention of the ICJ’s instructions for Israel to ensure the delivery of aid to Gaza. Does the Minister not see the huge flaw in arguing for more aid to Gaza at the same time as he refuses to endorse the ICJ’s interim ruling? It is the Government’s refusal to back one of the world’s highest courts that has given the Israeli Government the diplomatic cover they need to prevent aid from reaching Gaza.

Andrew Mitchell Portrait Mr Mitchell
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The effort to get aid and supplies in through Rafah is ongoing. The hon. Member will be aware of the great difficulties there have been in getting aid in through Rafah because of demonstrations there, because of bottlenecks and because of restrictions. That is why Britain has been pushing for the largest number of entry points, so that the aid that is available in the area can be got through those entry points to relieve people who are in the desperate need that he so eloquently summed up.

Greg Smith Portrait Greg Smith (Buckingham) (Con)
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It goes without saying that aid is only of any use if it actually reaches the civilian population that needs it, and there is evidence that Hamas are misappropriating up to 60% of humanitarian aid entering Gaza, which is part of their long-term pattern of prioritising their fighters, abusing aid to produce rockets and using construction materials to build hundreds of miles of terror tunnels for their activities. Does my right hon. Friend share my concern that Hamas are flagrantly disregarding the humanitarian needs of the civilian population in Gaza, and that there can be no peace and no two-state solution until they lose control of Gaza?

Andrew Mitchell Portrait Mr Mitchell
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My hon. Friend could not have put it better. There is absolutely no doubt whatsoever that Hamas do not care at all about the suffering and the humanitarian need that exists in Gaza, and at no point have they shown any understanding of what is happening as a result of their using the population of Gaza as a human shield for their vile activities.

Drew Hendry Portrait Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
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Will the UK continuing to sell arms to Israel result in fewer innocent civilians losing their lives in Gaza?

Andrew Mitchell Portrait Mr Mitchell
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I have set out the fact that Britain has the toughest arms export regulations anywhere in the world. Ministers rely upon the legal advice and other advice that accompanies the work of an independent committee within Government.

Richard Graham Portrait Richard Graham (Gloucester) (Con)
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The scale of the humanitarian disaster in Gaza is beyond words. The Times journalist Amal Helles has reported that Gaza is a place now with no schools, no jobs, no homes and no streets, yet the United Nations is saying that the reduction in the number of food trucks from January to February is 50%. Apparently, the average is 62 a day, compared with 500 a day before October. Can my right hon. Friend share with us what progress has been made in the talks on a six-week pause that would surely allow more aid to get in and more hostages out?

Andrew Mitchell Portrait Mr Mitchell
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Our determination, which my hon. Friend articulates accurately, is to get that pause to enable the hostages to be released, and to get food in. That is the absolute burden of our activities. As I mentioned to the House, the number of trucks getting into Gaza is patchy. On Sunday, 94 trucks got in, but on 22 February 220 trucks got in, which was the highest number since 17 January. What the House can determine from those figures is that not enough aid is getting in, and we need a substantial increase in that number. That is why the negotiations we are pursuing are so important.

Florence Eshalomi Portrait Florence Eshalomi (Vauxhall) (Lab/Co-op)
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We are less than two weeks from the start of Ramadan, and the general consensus is that the ground offensive in Rafah would add to an already catastrophic situation, as well as the Israeli operation in Gaza. More than 30,000 people have died. There is nowhere else for civilians in Gaza to go. Will the Government listen and join me, my constituents and many other people, to say that the only way we can stop this is to have an immediate ceasefire?

Andrew Mitchell Portrait Mr Mitchell
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I have explained to the House why calling for an immediate ceasefire will not make it happen. It is the events that go with the purpose of achieving a pause and then a ceasefire that command the full attention of His Majesty’s Government.

Jeremy Corbyn Portrait Jeremy Corbyn (Islington North) (Ind)
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The Minister is obviously extremely well aware of the International Court of Justice judgment and the interim rulings that came with it. He will also be aware that Israel has not adhered to the requirements made by the Court. In that context, will he tell the House exactly what military aid has been sent to Israel, and exactly what the nature of the military co-operation is, and will he assure the House that no more arms will be supplied to Israel until that judgment is adhered to?

Andrew Mitchell Portrait Mr Mitchell
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As I set out to the House, and to the right hon. Gentleman, the former leader of the Labour party, these issues are governed by a rule of law in Britain, and by the arrangements that I set out to the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry). The Government have no plans to deviate from those.

Andy Slaughter Portrait Andy Slaughter (Hammersmith) (Lab)
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The weakness in the Minister’s statement is that it makes his Government a commentator rather than an actor in the situation in Gaza. If this House and our international partners speak with one voice in calling for an immediate ceasefire, it would carry more weight with the Government of Israel. If he accepts that the absence of a ceasefire has resulted in the deaths of tens of thousands, and the horrific suffering of 2 million Palestinian civilians, does he not have a duty to call for a ceasefire now? Would that make the Government’s case stronger?

Andrew Mitchell Portrait Mr Mitchell
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As I have set out, a ceasefire that collapses back into fighting within weeks is not in anyone’s interest. The hon. Gentleman suggests that the Government are a spectator, but nothing could be further from the truth. If he looks at what the Foreign Secretary has been doing, at the way Britain’s humanitarian representative in the Gulf has been acting, and at all the discussions that have been going on in the region and at the UN, he will see that Britain is at the forefront of trying to achieve a humanitarian pause, leading to a sustainable ceasefire, and that is what we will continue to do.

Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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The Foreign Secretary has called for a stop to the fighting now, but the Ministry of Defence signed a contract with arms manufacturer Elbit Systems on 17 January. That company reportedly supplies up to 85% of Israel’s drones and land-based military equipment. The Minister called for advice in looking at how arms are exported. Does he not agree that in light of that, the UK’s approach appears to be deeply hypocritical? What advice does he need to stop the sales of arms?

Andrew Mitchell Portrait Mr Mitchell
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I do not agree with that, for reasons that I hope I have set out clearly to the House.

Apsana Begum Portrait Apsana Begum (Poplar and Limehouse) (Lab)
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Only an immediate ceasefire can protect civilians and implement the ICJ’s historic plausible genocide ruling. With Ramadan less than 15 days away, aid agencies warn that a ground offensive in Rafah could be catastrophic for the 1.5 million people taking shelter there, including 600,000 children. If the Government only call for an immediate ceasefire if and when a full ground offensive in Rafah begins, what assessment has been made of whether they will have upheld their own obligations under international law, particularly in relation to the ICJ’s provisional measures, including measures around the prevention of genocide?

Andrew Mitchell Portrait Mr Mitchell
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I understand the passion with which the hon. Lady speaks, but simply calling for an immediate ceasefire will not make it happen. The best chance to stop the fighting is for an agreement in the hostage negotiations, which we can then use as the opportunity to deliver a full and permanent ceasefire.

Patrick Grady Portrait Patrick Grady (Glasgow North) (SNP)
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The Minister keeps referring to the Government’s amendment last week, but those are just words on bits of paper in the recycle bin. They could have been the resolution of this House, but the Government chose not to give this House that choice. Instead, the resolution of this House is that there should be an immediate humanitarian ceasefire. What message does it send to the UN Security Council and wider international community if the Government will not adopt the language that has been agreed by the democratic legislature to which they are accountable, namely this House of Commons?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Gentleman is rewriting history. Last week saw the Leader of the House, a member of the Government, defending the rights of minority parties, in particular the hon. Gentleman’s party, from this Dispatch Box.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I thank the Minister for his statement and for his answers, which have been helpful to everyone in the House. What progress has been made to attempt to reunite the Israeli hostages with their families? What progress has been made to ensure that refugees who have to leave their homes can stay in family groups and will have access to food, water and a semblance of education?

Andrew Mitchell Portrait Mr Mitchell
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On the hon. Gentleman’s final point, we will continue to do everything we can in that respect, and I am grateful for his comments about my answers being helpful to the whole of the House. He asked about the hostages, and he will have seen newspaper reports over the weekend about the hostage negotiations. Although I cannot comment in any detail on those negotiations, all of us are hoping that they will continue to make progress, ultimately to success.

Matt Western Portrait Matt Western (Warwick and Leamington) (Lab)
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Clearly the need for humanitarian aid is desperate. We are hearing reports of forced relocation up to 15 times, and many people in Gaza are reduced to eating weeds and birdfeed, with healthcare reduced to medieval methods. Clearly an immediate humanitarian ceasefire is required. Does the Minister agree that the 500 vehicles a day need to be restored as a matter of urgency, and that we should also look to restore and support UNRWA?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Gentleman is entirely right that we need a massive increase in the number of trucks getting into Gaza. He will have seen that we have been working with the Jordanian armed forces. There was a drop of important humanitarian support last week, and we hope very much that there will be more. He will also have seen that we have been working on the maritime side too. A meeting is going on today, but the hope is that it may be possible to pre-clear humanitarian aid and support. That would require the use of Ashdod as an entry point into Israel, and the Government are doing everything we can to facilitate that.

Stephen Timms Portrait Sir Stephen Timms (East Ham) (Lab)
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On UNRWA, the inquiries that the Minister has told the House about will no doubt take some time, but having a hobbled UNRWA is undoubtedly exacerbating the humanitarian crisis that he has fully acknowledged. What consideration is he giving to urgently resuming UK funding to UNRWA?

Andrew Mitchell Portrait Mr Mitchell
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As the right hon. Gentleman will know, Britain has fully funded UNRWA, and under our agreement with it, no funds from Britain are due until the next financial year. I can tell him that both Norway and Guyana have put forward additional funding in recent days that will mean UNRWA is at least fully funded until the end of March.

Kenny MacAskill Portrait Kenny MacAskill (East Lothian) (Alba)
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Development assistance for the Occupied Palestinian Territories had already reduced from £95 million in 2013 to £26 million in 2023, before the suspension of UNRWA funding. Despite questions today and specific written questions, the Government have refused to declare what the source was for the basis of the allegations, and where that source came from, leaving many to speculate that it is simply Israeli allegations or Israeli propaganda. Other countries, including Ireland and Spain, are continuing to fund UNRWA. Will the Government not ensure that UNRWA funding is restored, to avoid the perversity that we can find weapons and munitions for Ukraine, but not money for humanitarian aid in Gaza?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Gentleman will know that we are waiting for the interim report—the forensic report—into collusion, which the UN Office of Independent Oversight is preparing. It is right to wait for that report and Catherine Colonna’s report as well. As I explained to the right hon. Member for East Ham (Sir Stephen Timms), British funding is up to date, and it will be paused until we have seen those reports, but additional funding has been made available to UNRWA. As the House will accept, UNRWA’s logistical support—its warehouses and vehicles—are essential to the distribution of aid within Gaza.

Abena Oppong-Asare Portrait Abena Oppong-Asare (Erith and Thamesmead) (Lab)
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On UNRWA funding, I want to follow up on his comments that we are up to date and waiting on the report. Can he give some assurances today that the Government will commit to bringing back the funding? What are the timescales on that?

Andrew Mitchell Portrait Mr Mitchell
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The issue of British funding to UNRWA does not arise until the next financial year, but it is only right that we wait for the two reports. As I say, one is from the UN Office of Internal Oversight Services, and the other is from the former French Foreign Minister. We are seeking an interim report so that progress one way or the other can be made.

Allan Dorans Portrait Allan Dorans (Ayr, Carrick and Cumnock) (SNP)
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Will the UK Government take the evidence of the collective punishment in Gaza with the dehumanisation of Palestinians in the occupied west bank and come to the conclusion that the Israeli Government are authorising an oppressive regime with the goal of the complete displacement of the Palestinian people?

Andrew Mitchell Portrait Mr Mitchell
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No, Madam Deputy Speaker.

Mike Amesbury Portrait Mike Amesbury (Weaver Vale) (Lab)
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I make a plea to the Minister to go one step further and join the chorus, now including our allies in Australia, Canada and New Zealand, calling for an immediate humanitarian ceasefire now. It would send a powerful message.

Andrew Mitchell Portrait Mr Mitchell
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I have explained to the House that no matter how desirable it might be to achieve an immediate ceasefire, just calling for one and willing it will not make it happen. That is why the British Government have set out clearly, along with our allies, what the necessary steps are to reach the conclusion that the whole House would devoutly like to see.

Wendy Chamberlain Portrait Wendy Chamberlain (North East Fife) (LD)
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Returning to the recent ICJ ruling, as I understand it one of the problems is that no country has ever responded to a call for pre-emptive steps when the court has made such a ruling. Part of that challenge is that no clear criteria have previously been set out for any country to meet. Can the Minister have discussions with his counterparts about agreeing a set of steps that would be made available to countries in the future, so that everyone can meet their obligations?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Lady makes an interesting theoretical and legal point, and I suggest that those discussions might go on usefully between theorists and lawyers.

Jeff Smith Portrait Jeff Smith (Manchester, Withington) (Lab)
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I have raised with the Minister and other Ministers the case of my constituent who is trying to get his wife and baby daughter through the Rafah crossing. Very frustratingly, he cannot get the mother on to the approved list. I know it is not the only case like that. Will the Minister focus with a renewed urgency to press the Israeli and Egyptian authorities to resolve these delays and make sure that these people can get through to safety?

Andrew Mitchell Portrait Mr Mitchell
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My answer to the hon. Gentleman is yes. He and I have discussed the specific case, as well as the general cases to which he is alluding. I can tell him that the experts in the Foreign Office, extremely experienced in these matters, are doing everything they possibly can to advance that objective.

Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
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The horror and huge numbers of casualties in Gaza are unfolding for all the world to see. Alone of the three largest parties in this House, the SNP has called for an immediate ceasefire—not a humanitarian pause or a humanitarian ceasefire. We have also called for an end to collective punishment, which constitutes a war crime and has cost 30,000 lives so far and left 500,000 facing death by starvation. Our constituents are rightly outraged. Regardless of the Minister’s personal views, does he share my concern that Members of this House have been denied a recorded vote to express their views on these life or death matters, which is what our constituents want to see?

Andrew Mitchell Portrait Mr Mitchell
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Without revisiting the events of last week, I have no doubt of the worry of our constituents to which the hon. Lady refers. That is why I set out at the beginning why I think the British Government’s position, as articulated in the contents of the amendment that I failed to move last week, commands widespread support among our constituents. Although it was not voted on, as she rightly says, the amendment sets out the Government’s position, which I think should be widely supported among our constituents.

Emma Hardy Portrait Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
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Some 5% of children under the age of two are malnourished in Rafah. I note that in the Minister’s statement, he expressed concern about the prospect of military incursion, but Rafah cannot happen; the consequences would be unbearable. Will the Minister go further, and do everything he can with the international community to prevent the Rafah invasion from occurring?

Andrew Mitchell Portrait Mr Mitchell
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On the hon. Lady’s first point, she is right about the degree of malnutrition, and that is why Britain is working closely with UNICEF and the World Food Programme. She set out the huge humanitarian consequences of a military attack on Rafah, and she will have seen what the Prime Minister, Foreign Secretary and I have said about the dangers of that.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
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The possibility of an end to the killing—whatever we call it—brings hope in Gaza, Israel and, indeed, here, but I fear that divisions in our communities will remain. Many constituents have written to me upset at the difference they see in how Palestinian lives, Palestinian dignity and Islamophobia are valued in comparison with Israeli lives, Israeli dignity and antisemitism. Can the Minister go some way to perhaps addressing those concerns by condemning, for example, the Israeli Ministers and others who have ruled out a Palestinian state? Will he condemn the occupation, as well as settler violence? Will he condemn the Israeli soldiers who filmed themselves posing on the bicycles of dead Gazan children or rifling through the clothes of dead Gazan women?

Andrew Mitchell Portrait Mr Mitchell
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Let me make it clear, as the Prime Minister has, that in our country there is no tolerance whatever for antisemitism or Islamophobia. I reiterate that at the hon. Lady’s request across the Dispatch Box. She asked me about the importance of ensuring that all lives are treated equally and whether we care deeply about all those who are suffering in this conflict. Let me assure the House that we do.

Caroline Lucas Portrait Caroline Lucas (Brighton, Pavilion) (Green)
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In response to my many written questions, the Government continue to say that they are keeping arms export licences under review, including with regard to international humanitarian law, and they confirm that Ministers are able to amend, suspend or revoke licences as circumstances require. One of the licences currently in place allows L3Harris in my constituency to manufacture components for the kinds of F-35 fighter planes used by the Israel Defence Forces in Gaza. Will the Minister publish the details of any reviews that have taken place? Will he tell us what threshold the Government are waiting to be crossed before they will suspend or revoke licences while there is a risk that they are being used to commit or to facilitate serious violations of international humanitarian law?

Andrew Mitchell Portrait Mr Mitchell
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I will look into the burden of what the hon. Lady has said. If she tables a written question on precisely that point today, I will give her the Government’s answer.

Paula Barker Portrait Paula Barker (Liverpool, Wavertree) (Lab)
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The situation in Rafah is at a critical juncture. Disease and famine are setting in, and millions of Palestinians have nowhere else to go after being told by the Israeli Government to move south—the very place where the Israeli Government are now threatening military action—for their own safety. So far, the Israeli Government have remained belligerent in the face of international pressure to show restraint. Beyond words of advice and to “express deep concern”—to quote the Minister—what will be the response from the British Government if Israel decides to launch a ground offensive in Rafah?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Lady asks a theoretical question. What I can tell her is that the British Government are working together with our allies through the United Nations, and our friends and contacts throughout the region, to advance the situation in the way I set out in my statement. That is to try to ensure that there is a humanitarian pause, which enables us to get the hostages out and to get aid and humanitarian relief in, leading to a sustained ceasefire. That must be the right thing to seek to achieve, and that is what the Government will continue to attempt to do.

Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP)
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It has been suggested that if what Israel has done in Gaza becomes the accepted standard of self-defence, that core principle, which is meant to protect us all and is at the core of the international world order on which democracies are founded, is greatly undermined. How does the Minister respond to that?

Andrew Mitchell Portrait Mr Mitchell
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An unprecedented set of calamities has taken place. I reiterate that Israel has the absolute right of self-defence but must remain within international humanitarian law. It is important to hang on to those principles as we navigate this catastrophe.

Ruth Cadbury Portrait Ruth Cadbury (Brentford and Isleworth) (Lab)
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Like Members across the House, I have had hundreds of emails from concerned constituents who are horrified by what they are seeing in Gaza—in particular, by scenes in hospitals where children have been operated on without anaesthetic. Will the Minister outline what specific steps the UK Government are taking to ensure that people from Gaza can get the medical treatment they so badly need?

Andrew Mitchell Portrait Mr Mitchell
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We are acting at every level to achieve the results that the hon. Lady and I both want. That is seen in: the work we are doing internationally in the region to try to facilitate the entry of medicines; our work with the Jordanian Government to make air drops, which include medical equipment; and our support for medical charities, some of which are based in Gaza. In every way, we are trying to alleviate the suffering to which she so eloquently referred.

Mohammad Yasin Portrait Mohammad Yasin (Bedford) (Lab)
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As we approach the five-month mark of this horrific conflict, nearly 30,000 Palestinians have died and children in Gaza are dying of starvation. Diplomatic efforts must yield results before thousands more die—it will be tens of thousands if the Rafah offensive goes ahead. Does the Minister agree that time is of the essence and that, unless there is a ceasefire now, there will not be a deal to make?

Andrew Mitchell Portrait Mr Mitchell
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The statement that the hon. Gentleman makes and the question he asks me underline the importance of the international community and Britain working with our allies to double and redouble efforts to ensure that we reach the situation that I have set out before the House on a number of occasions this afternoon.

Claire Hanna Portrait Claire Hanna (Belfast South) (SDLP)
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Of course, an end to the threat of bombardment is the crucial step, but the humanitarian situation remains catastrophic. What specific assessment have UK officials made of the allegations against the UN Relief and Works Agency with a view to properly funding that organisation, whose infrastructure and capacity is crucial to meeting the basic everyday needs of hundreds of thousands of innocent men, women and children?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Lady underlines the centrality of UNRWA in Gaza. It has the necessary assets, which are essential for the delivery of aid and humanitarian relief. That is why we are urging the UN Office of Internal Oversight Services to produce an interim report looking into the collusion that allegedly took place. As soon as we have that report, along with the report from the former French Foreign Minister, we will be able to make the necessary dispositions not only about UNRWA but about how we get essential aid and support into Gaza.

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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I call Sir Oliver Heald—[Interruption.]

Oliver Heald Portrait Sir Oliver Heald (North East Hertfordshire) (Con)
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My right hon. Friend will be aware that the taking of hostages, and particularly civilian hostages, is considered an abomination. It is a war crime. Does he agree that one of the things that is driving the Israelis on is a desperate desire to get their people home and that anything that can be done diplomatically to try to make that happen—to get the hostages back—would really help the effort for peace?

Andrew Mitchell Portrait Mr Mitchell
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My right hon. and learned Friend is absolutely right: the taking of hostages is an abomination. That is why we are doing everything we can to ensure that the hostages are released, including the two British hostages and others with a close connection with the United Kingdom. He will have seen the reports both from Paris and from Qatar over the weekend, which indicate that every sinew is being bent to try to get the hostages back.

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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Order. I detected some unrest on the SNP Benches when I called the right hon. and learned Member for North East Hertfordshire (Sir Oliver Heald). The right hon. and learned Gentleman has been here for the whole of the statement; he chose to come in at this point and I gave him permission to do so. There is absolutely nothing wrong with that. Let us make certain that we adhere properly to the rules, as Members know that I will.

Tim Farron Portrait Tim Farron (Westmorland and Lonsdale) (LD)
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As we seek to tackle the rise in the evil of racism of all kinds in our communities in response to the tragedy unfolding in Israel and Gaza, is it not vital that we distinguish between, on the one hand, the awfulness of the Netanyahu regime and their outrageous actions and, on the other hand, the decency of the Israeli people and the right of Israel to exist? Yesterday, my right hon. Friend the Member for Kingston and Surbiton (Ed Davey) met Yair Lapid, the leader of Yesh Atid, the liberal party of Israel. He is a former—and I hope future—Prime Minister of Israel who supports a two-state solution and desires peace. Are the Government keeping in close contact with Israeli opposition leaders who seek a peaceful resolution?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Gentleman will have seen that the Foreign Secretary has recently been in Israel, as have many other members of the Government, including the Attorney General. We have a close relationship with many people across the political spectrum in Israel. He will also be aware that Israel is a rumbustious democracy in a region where there are not many democracies, and there are divergences of view among senior people in Israel. That is reflected in what we hear from Israel today.

Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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I note the Minister’s earlier remarks on the topic, but Amnesty International UK is calling for the UK Government to suspend the supply of arms to the Israeli authorities given that serious violations amounting to crimes under international law are being committed. Will he accept the moral case for doing that? Will he revisit his policy? Will he also recognise that the killing of 12,000 children does show clear evidence of collective punishment?

Andrew Mitchell Portrait Mr Mitchell
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The earlier part of the hon. Lady’s question underlines the fact that these issues should not be resolved at the whim of Ministers but through the arms export Committee, which is both independent and legally advised. It is the toughest regime in the world and Ministers should look to it for guidance, which we do.

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
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I hope the Minister will agree that there is clear consensus in this House that we want an end to the horror that we are seeing in Gaza and to the misery of the Israeli families who are missing those taken hostage. The Minister has made a great deal of the fact that a humanitarian pause is all that can be achieved, but that it can be a route to a ceasefire. We are hearing promising noises from the talks that there may be a pause in hostilities. While that is not enough, can the Minister assure us that our Government will do everything they can to reflect the will of this place and the people we represent in pursuing an end to the horror in Gaza and the long-term establishment of a two-state solution in the middle east?

Andrew Mitchell Portrait Mr Mitchell
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I can assure the hon. Lady. Her point underlines the degree of agreement rather than disagreement across this House. She said that the Government believe that a pause is all that can be achieved, but that is not the case. The Government believe that a pause will enable us to get the hostages out and aid and support in. It is part of the journey towards a sustainable ceasefire. It is certainly not all that we believe can be achieved, but it is necessary for the other things that we want to achieve.

Zarah Sultana Portrait Zarah Sultana (Coventry South) (Lab)
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This weekend it was reported that the Government are finally starting to withdraw support for the Israeli military, suspending assistance for Israeli F-35 fighter jets and helicopters at RAF Akrotiri in Cyprus, and cancelling a planned joint exercise over the Negev desert. But British-made arms are still being sold to the Israeli military, including parts for F-35 jets. First, can the Minister tell the House on what basis the Government have suspended the aforementioned military assistance, and secondly and related to that, will he heed the call from UN experts on Friday, who said that arms exports to Israel must be suspended immediately in the light of the ICJ ruling on Israel’s plausible violation of the genocide convention?

Andrew Mitchell Portrait Mr Mitchell
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I have set out not only the principles by which Britain addresses the issue of arms exports but the practice of what we are doing in this situation. I am afraid I have nothing to add to what I have already said on that matter.

Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
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The Minister has quite rightly reminded us that, as a matter of international humanitarian law, Israel has the right to defend itself against any aggressor. He also pointed out that that right must be exercised in compliance with international humanitarian law. Could he clarify the Government’s understanding of those specific conditions? Will he confirm that self-defence cannot justify attacks on a civilian population who pose no threat to anyone? Will he also confirm that self-defence does not apply to military action that is clearly disproportionate or, as President Biden said last week, over the top?

Andrew Mitchell Portrait Mr Mitchell
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In respect of the hon. Gentleman’s latter questions, the position is covered by what I have made clear from the start of this statement: Israel has the right of self-defence under international law, but it must be conducted within international humanitarian law. That is that context that I have reiterated, and it answers his latter two questions.

Rachel Hopkins Portrait Rachel Hopkins (Luton South) (Lab)
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Yesterday, the UN reported that very little humanitarian aid has entered Gaza this month, having reduced by 50% compared with January. The commissioner-general said that the obstacles to aid getting in were a lack of political will, regular closing of the two crossing points, and insecurity due to military operations and the collapse of civil order. With increasing hunger and disease in Gaza, why does the Minister not agree with me and my constituents that we need an immediate humanitarian ceasefire, or is there a lack of political will by his Government for that, too?

Andrew Mitchell Portrait Mr Mitchell
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We are working towards precisely that—a humanitarian pause upon which we can build. On getting extra food and support, the hon. Lady will have seen that we have been working closely with Jordan and the World Food Programme on convoys that have left the Jordan border. We are doing everything we can, using our taxpayers’ money and our humanitarian expertise, to drive forward the common aim that she and I both wish to achieve.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
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Arms sales from the Netherlands to Israel have been halted after the Netherlands court found that there is a clear risk that components were used to commit or facilitate serious violations of international humanitarian law. The court highlighted evidence of Israel’s deliberate, disproportionate and indiscriminate attacks, failure to warn civilians and incriminating statements by Israeli commanders and soldiers. Does that clear court ruling not make a nonsense of the Minister’s claim that the UK has the toughest arms exports licence controls in the world? If the UK does not stop selling arms to Israel, will it not also be complicit in breaches of humanitarian law?

Andrew Mitchell Portrait Mr Mitchell
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I do not agree with that analysis. We have to look at the small print of how our arms exports restrictions and operations work in order to see that that is not the case. I have set out clearly the way in which the arms exports regime works, and I am afraid I have nothing to add.

Neil Coyle Portrait Neil Coyle (Bermondsey and Old Southwark) (Lab)
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Palestinians desperately need aid, so which organisations are the Government working with to replace the humanitarian efforts of the UN Relief and Works Agency while it is unfunded, especially if there is a ceasefire or pause? Can he assure the House that not a penny of UK funding is still reaching the hands of the terrorists who committed the October atrocities, and who still hold 134 hostages?

Andrew Mitchell Portrait Mr Mitchell
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UNRWA is not unfunded. As I set out, Britain has funded it until the next financial year. I set out how other countries were also producing the necessary funding. The hon. Gentleman asked who else we work with apart from UNRWA: we work very closely with UNICEF, the World Food Programme and the Egyptian Red Crescent, as I saw on my relatively recent visit to Cairo. We continue to explore every possible way, not just through UNRWA, of getting aid and support into Gaza.

Stephen Farry Portrait Stephen Farry (North Down) (Alliance)
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The Government continue to be selective when they deploy the language of war crimes to different conflicts around the world. Notably, it is used in Ukraine freely, but not in reference to what is happening in Gaza. In refusing to endorse the interim ruling of the International Court of Justice, what assessment has the Minister made of the wider implications for rules-based international order? Surely, if international law is to have value, it must be applied universally not selectively.

Andrew Mitchell Portrait Mr Mitchell
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Britain has been at the heart of building the international rules-based system since 1946. The hon. Gentleman should give credit to that. When it comes to the different conflicts to which he alluded, the British Government have a uniform way of supporting international humanitarian law, supporting the rules of war and doing everything we can to stand up for the international rules-based system.

Michael Shanks Portrait Michael Shanks (Rutherglen and Hamilton West) (Lab)
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The UN has said this week that a famine stalks Gaza, especially in the north where aid has not reached people since more than a month ago, on 23 January. The UN has confirmed that its inquiry into UNRWA will not report until 20 April. On a number of occasions the Minister has said that the issue of funding does not arise until the next financial year, so if we reach the next financial year and the report has not been issued, how will the Government decide whether we should re-fund UNRWA, and what evidence have they seen directly to suggest that we should not fund it now?

Andrew Mitchell Portrait Mr Mitchell
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The hon. Member is right on the timings of the report by the UN Office of Internal Oversight Services, but we are hoping for an interim report and the report of the former French Foreign Minister to inform any decisions that we make. It is important to make clear that UNRWA has sufficient funds to get it to the end of March at least, thanks to the actions of Norway and Guyana.

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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Does the Minister agree with the International Court of Justice findings that there is a plausible risk that Israel has been committing genocide against the Palestinian people, and just what will his Government do about it?

Andrew Mitchell Portrait Mr Mitchell
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It is hard to overestimate the offence caused by the extraordinary rhetoric of accusing Israel of being guilty of genocide, given the antecedents and events that took place in the holocaust during the war and the fact that more Jewish people were murdered on that one day of 7 October than at any time since the end of the second world war.

Richard Burgon Portrait Richard Burgon (Leeds East) (Lab)
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It is now one month since the International Court of Justice ruled that there is a plausible risk that Israel’s actions in Gaza are in breach of the genocide convention. Since then, 3,000 more Palestinians have been killed, food and essential aid is still being prevented from getting into Gaza, and now Israel is threatening to invade Rafah. Given Israel’s obvious breaches of the Court’s legally binding ruling, what conversations has the Foreign Office had with the Trade Secretary about suspending arms sales to Israel, and should that not now be what is happening?

Andrew Mitchell Portrait Mr Mitchell
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Whether right or wrong, the analysis that the hon. Gentleman puts before the House underlines the importance of the initiatives that Britain has taken, and the work that is being done both regionally and internationally at the United Nations, to try to secure a sustainable ceasefire through a pause so that we can get the hostages out and also get necessary support and humanitarian aid in. I hope that he will share with me a common view that, on driving forward those initiatives, the five-point plan that has been set out so clearly by the Prime Minister and the Foreign Secretary is the right way to address the very serious difficulties to which he alludes.

Carol Monaghan Portrait Carol Monaghan (Glasgow North West) (SNP)
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We have heard many times about Israel’s right to defend itself. In fact, the Minister started his statement by reiterating Israel’s right to defend itself. On Sunday evening in Gaza City, the Israel Defence Forces fired on Palestinians who were waiting for food aid trucks to arrive. Ten were killed. Does the Minister believe that that was a legitimate act of self-defence?

Andrew Mitchell Portrait Mr Mitchell
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Unlike the other forces involved in this dreadful conflict, Israeli soldiers and members of the IDF are taught, as part of their basic training, about international humanitarian law. As I mentioned, there are lawyers embedded in the military forces as they make decisions on actions. That is not something that we see in other forces in the region and non-state actors. Although all deaths are to be regretted, we underline that international humanitarian law is very clear that all parties must respect it. We are deeply concerned about the lack of humanitarian access, and we are deeply concerned about the protection of civilians. As I set out in my earlier remarks, we believe that last week’s Government amendment, which was not moved but was tabled, outlines a set of circumstances that everyone across the House should be able to support.

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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That concludes proceedings on the statement. We have taken rather longer than usual for a statement, but I have deliberately allowed this matter to run on, to make sure that everybody who wished to have their voice heard was heard.

Zarah Sultana Portrait Zarah Sultana
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On a point of order, Madam Deputy Speaker. In response to a question from the hon. Member for Paisley and Renfrewshire North (Gavin Newlands), the Minister said that the arms export Committee does its work effectively. However, that Committee, formerly known as the Committees on Arms Export Controls, no longer exists. It last met publicly in December 2022, and last month its responsibilities were transferred to the Business and Trade Committee, which will scrutinise arms exports alongside a huge number of other matters. That means that, contrary to what the Minister suggested, this House no longer has a Committee specifically focused on scrutinising arms exports. What advice can you give me on ensuring that the Government take seriously the scrutiny of arms exports, given the Minister’s apparent lack of understanding?

Baroness Laing of Elderslie Portrait Madam Deputy Speaker
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The hon. Lady knows that that is not a point of order for the Chair but a continuation of the discussion. She asks for advice on how the matter might be drawn to the Government’s attention; I think I can call on the Minister to make a point further to that point of order.

Andrew Mitchell Portrait Mr Mitchell
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Further to that point of order, Madam Deputy Speaker. The structure of these matters is approved by the House of Commons. The regime is clear, no matter where responsibility for it sits—and it is, I believe, among the toughest to be found anywhere in the world.

Baroness Laing of Elderslie Portrait Madam Deputy Speaker
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That concludes matters on this subject.

Higher Education (Student Finance and Skills Shortages)

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)
14:45
Lia Nici Portrait Lia Nici (Great Grimsby) (Con)
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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 a scheme in which graduates of specified university courses may be exempt from requirements to repay a student loan, in full or in part, provided that they are employed in the United Kingdom in a relevant sector for a minimum time period; and for connected purposes.

With your permission, Madam Deputy Speaker, before I start, I would like to take the opportunity to echo Mr Speaker’s condolences to family and friends on the passing of Lord Patrick Cormack. He was in this place for 40 years and was born in Great Grimsby, my constituency.

It is my belief that good-quality legislation aimed at educational reform should not only encourage rising levels of attainment in both education and skills, but be designed to develop the workforce of the future. There have been numerous skills gap and skills mismatch reports over the past few years, and the path is clear for us to review how higher education—particularly undergraduate and postgraduate funding polices—can ensure that the Government provide excellent public services in the UK that help to keep the country healthy, improve productivity and grow the economy.

Before I became an MP, I worked in further and higher education for 22 years, and I believe that I have an insight into what motivates students to study to degree level and beyond. In my opinion, in too many cases, the current funding regime encourages people to study at degree level when it is not suited to the student’s skills and abilities or future career path. That is because we live with the effects of new Labour’s higher educational reforms and, in particular, the way that the student loan system works.

The policy of increasing the percentage of people who go to university, regardless of what they study, has led to a huge growth in poor-quality degrees that have little academic rigour; the loss of excellent vocational higher education courses, such as higher national diplomas, which were directly relevant to the sectors they were aimed at; and a graduate skills mismatch in the UK that is now so large that we import thousands of graduates from abroad, which means that other countries lose their highly skilled graduates to the UK. In addition, if a UK graduate emigrates, we lose any taxpayer benefit from funding their course or receiving their outstanding student fees. The Learning and Work Institute has indicated that the UK skills shortage will cost the country £120 billion by 2030, and that there will be a shortfall of appropriately 2.5 million skilled workers in our economy.

The annual cost to the Treasury of funding undergraduate and postgraduate courses in England alone is estimated at £20 billion. Graduates are expected to start paying a proportion of their tuition fees and maintenance grants, which are means-tested, only once they earn an annual income over a threshold that ranges between £21,000 and £27,660. We need a new student loan system that will incentivise students to study the degrees that we need, rather than a proliferation of degrees that do not give the country or the individual any added value and also delay that individual’s entry into a productive career.

Research findings from the Institute for Fiscal Studies and MoneySuperMarket show that UK student debt amounts to more than £100 billion, and is projected to hit £1.2 trillion by 2049. Currently only 27% of all graduates pay back their student loans in full, and 83% are projected never to do so. The IFS also estimates that 20% of students would have been better off if they had not gone to university, which proves that their degree does not add value to their career. The Open University’s 2023 “Business Barometer” report showed that despite our having a larger graduate workforce than ever before, 83% of large organisations face a skills shortage in their workforce.

Moreover, 2023 data from the British Medical Association suggests that 7% of doctors who train for employment in the NHS leave after completing their foundation years. That means a loss of £220,000 per student doctor, costing the taxpayer £146 million a year. The Government offer bursaries for doctors and dentists in the final years of their studies to help them with tuition fees and living costs, but at that stage they are already earning a wage. This is a back-to-front funding model that does not help us to recruit doctors and dentists to the NHS and maintain them there. There are also gaps in a wide range of other public sector services. Our local authorities, for instance, lack social workers, speech and language therapists and physiotherapists.

Let me suggest a solution. I should like the Secretary of State for Education to investigate the possibility of introducing what I am calling the British GradForce agreement. The model would be similar to a system that has worked well for decades in the armed forces: candidates can apply for scholarships and bursaries funded by the relevant armed force, on the understanding that they will then complete a minimum term in order to pay back to the country, in years of service, the investment that the taxpayer has made in them. Candidates who drop out or are removed before the end of that period are generally expected to pay back not only the bursary but their training costs. The system benefits capable and committed students from more disadvantaged backgrounds, rewarding them with no debt in return for their public service.

The Government should use their published skills shortage research to create a public sector graduate skills shortage list, so that public sector employers could accredit courses that are directly linked to skills shortages in particular roles. The courses would need to meet the quality thresholds required by organisations such as the Quality Assurance Agency for Higher Education and professional bodies. Universities running those courses could then apply for them to be accredited by the Government, making them eligible for the British GradForce agreement funding policy. Students applying for and then starting to study on the relevant courses could opt to sign an agreement, in which they commit themselves to completing their studies to the required employment standards, and to working in the relevant sector for the specified timescale appropriate to their course. In return for that service commitment, the Government could choose to write off their student loan fees, up to a maximum amount, over the specified length of service in that profession.

We need a policy that incentivises students to choose the degrees that the country needs by differentiating the funding model for those degrees from those for all other types of degree. The changes I am proposing could have a positive and pivotal effect on the higher education sector. They could encourage students to choose the courses that the country needs, reduce the debt burden of those students, be a better deal for the taxpayer, and help to improve growth and productivity. I hope that the Secretary of State can investigate the possibility of such a policy.

Question put and agreed to.

Ordered,

That Lia Nici, Sally Ann Hart, Tom Hunt, Miriam Cates and Martin Vickers present the Bill.

Lia Nici accordingly presented the Bill.

Bill read the First time; to be read a Second time on Friday 19 April, and to be printed (Bill 168).

Consideration of Bill, as amended in the Public Bill Committee
[Relevant documents: Twelfth Report of the Communities and Local Government Committee of Session 2017-19, Leasehold Reform, HC 1468, and the Government response, CP 99.]
New Clause 26
LTA 1985: Crown application
“(1) Before section 40 of the LTA 1985 insert—
39A Crown application
Sections 18 to 30P, and the Schedule, bind the Crown.”
(2) In section 172 of the CLRA 2002 (application to Crown of certain provisions)—
(a) in subsection (1), omit paragraph (a);
(b) omit subsection (3).”.(Lee Rowley.)
This new clause, to be inserted after clause 41, would move provision about Crown application of the LTA 1985 currently in the CLRA 2002 into the LTA 1985, and clarify that the relevant provisions bind the Crown whether or not they relate to Crown land.
Brought up, and read the First time.
14:55
Lee Rowley Portrait The Minister for Housing, Planning and Building Safety (Lee Rowley)
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I beg to move, That the clause be read a Second time.

Baroness Winterton of Doncaster Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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With this it will be convenient to discuss the following:

Government new clause 27—Part 4: Crown application.

Government new clause 28—Redress schemes: no Crown status.

Government new clause 29—Part 5: amendments to other Acts.

Government new clause 30—Steps relating to remediation of defects.

Government new clause 31—Remediation orders.

Government new clause 32—Remediation contribution orders.

Government new clause 33—Recovery of legal costs etc through service charge.

Government new clause 34—Repeal of section 125 of the BSA 2022.

Government new clause 35—Higher-risk and relevant buildings: notifications in connection with insolvency.

Government new clause 42—Ban on grant or assignment of certain long residential leases of houses.

Government new clause 43—Long residential leases of houses.

Government new clause 44—Leases which have a long term.

Government new clause 45—Series of leases whose term would extend beyond 21 years.

Government new clause 46—Houses.

Government new clause 47—Residential leases.

Government new clause 48—Permitted leases.

Government new clause 49—Permitted leases: certification by the appropriate tribunal.

Government new clause 50—Permitted leases: marketing restrictions.

Government new clause 51—Permitted leases: transaction warning conditions.

Government new clause 52—Prescribed statements in new long leases.

Government new clause 53—Restriction on title.

Government new clause 54—Redress: right to acquire a freehold or superior leasehold estate.

Government new clause 55—Redress: application of the right to acquire.

Government new clause 56—Redress: general provision.

Government new clause 57—Redress regulations: exercising and giving effect to the right to acquire.

Government new clause 58—Enforcement by trading standards authorities.

Government new clause 59—Financial penalties.

Government new clause 60—Financial penalties: cross-border enforcement.

Government new clause 61—Lead enforcement authority.

Government new clause 62—General duties of lead enforcement authority.

Government new clause 63—Enforcement by lead enforcement authority.

Government new clause 64—Further powers and duties of enforcement authorities.

Government new clause 65—Power to amend: permitted leases and definitions.

Government new clause 66—Interpretation of Part A1.

New clause 1—Estate management services—

“(1) Within three months of the passage of this Act, the Secretary of State must by regulation provide for residents of managed dwellings to take ownership, at nominal cost, of—

(a) an estate management company, or

(b) the assets of an estate management company, or other company or business connected with the development or management of the dwellings, which are used to provide services to managed dwellings

if the estate management company or connected company or business does not—

(i) provide the residents of the managed dwellings with a copy of its budget for the forthcoming year and accounts for the past year;

(ii) give sufficient notice to enable residents to attend its annual meeting;

(iii) acknowledge correspondence sent by registered post to its registered office within a reasonable length of time.

(2) Regulations under subsection (1) may amend primary legislation.”

New clause 2—Estate management: compensation—

“(1) This section applies where the first and second condition are met.

(2) The first condition is that it would not be reasonable for the residents of a property to continue to occupy that property as their primary residence due to a defect which the estate manager—

(a) is responsible for remedying, or

(b) could reasonably have foreseen would arise.

(3) The second condition is that—

(a) the defect is the direct result of actions taken or not taken by the estate manager, or

(b) the estate manager has failed to remedy the defect within a reasonable period of time.

(4) The estate manager must—

(a) provide compensation to the residents of the property equal to any reasonable financial loss they incurred as a result of the defect, or

(b) provide suitable alternative accommodation for the duration of the period for which this section applies.

(5) No cost incurred by an estate manager as a consequence of this section may be recouped from the estate in question through an estate management charge.”

This new clause would allow estate residents to claim compensation or alternative accommodation where it is not reasonable for them to remain in their homes due to defects caused, or left unremedied for an unreasonable length of time, by an estate manager.

New clause 3—Prohibition on landlords claiming litigation costs from tenants—

“(1) Any term of a long lease of a dwelling which provides a right for a landlord to demand litigation costs from a leaseholder (whether as a service charge, administration charge or otherwise) is of no effect.

(2) The Secretary of State may, by regulations, specify classes of landlord to which or prescribed circumstances in which subsection (1) does not apply.

(3) In this section—

“administration charge” has the meaning given by Schedule 11 of the Commonhold and Leasehold Reform Act 2022;

“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, or outhouses and appurtenances belonging to it or usually enjoyed with it;

“long lease” has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002;

“service charge” has the meaning given by section 18 of the Landlord and Tenant Act 1985;

“landlord” has the meaning given by section 30 of the Landlord and Tenant Act 1985.”

This new clause would prohibit landlords from claiming litigation costs from tenants other than under limited circumstances determined by the Secretary of State.

New clause 4—Remedies for the recovery of annual sums charged on land

“(1) Section 121 of the Law of Property Act 1925 is omitted.

(2) The amendment made by subsection (1) has effect in relation to arrears arising before or after the coming into force of this section.”

This new clause, which is intended to replace clause 59, would remove the provision of existing law which, among other things, allows a rentcharge owner to take possession of a freehold property in instances where a freehold homeowner failed to pay a rentcharge.

New clause 5—Abolition of forfeiture of a long lease

“(1) This section applies to any right of forfeiture or re-entry in relation to a dwelling held on a long lease which arises either—

(a) under the terms of that lease; or

(b) under or in consequence of section 146(1) of the Law of Property Act 1925.

(2) The rights referred to in subsection (1) are abolished.

(3) In this section—

“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, or outhouses and appurtenances belonging to it or usually enjoyed with it;

“lease” means a lease at law or in equity and includes a sub-lease, but does not include a mortgage term;

“long lease” has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002.”

This new clause would abolish the right of forfeiture in relation to residential long leases in instances where the leaseholder is in breach of covenant.

New clause 6—Requirement to establish and operate a management company under leaseholder control

“(1) The Secretary of State may by regulations make provision—

(a) requiring any long lease of a dwelling to include a residents management company (“RMC”) as a party to that lease, and

(b) for that company to discharge under the long lease such management functions as may be prescribed by the regulations.

(2) Regulations under subsection (1) must provide—

(a) for the RMC to be a company limited by share (with each share to have a value not to exceed £1), and

(b) for such shares to be allocated (for no consideration) to the leaseholder of the dwelling for the time being.

(3) Regulations under subsection (1) must prescribe the content and form of the articles of association of an RMC.

(4) The content and form of articles prescribed in accordance with subsection (3) have effect in relation to an RMC whether or not such articles are adopted by the company.

(5) A provision of the articles of an RMC has no effect to the extent that it is inconsistent with the content or form of articles prescribed in accordance with subsection (3).

(6) Section 20 of the Companies Act 2006 (default application of model articles) does not apply to an RMC.

(7) The Secretary of State may by regulations make such provision as the Secretary of State sees fit for the enforcement of regulations made under subsection (1), and such provision may (among other things) include provision—

(a) conferring power on the First-Tier Tribunal to order that leases be varied to give effect to this section;

(b) providing for terms to be implied into leases without the need for any order of any court or tribunal.

(8) The Secretary of State may by regulations prescribe descriptions of buildings in respect of which regulations may be made under subsection (1).

(9) In this section—

“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, or outhouses and appurtenances belonging to it or usually enjoyed with it;

“long lease” has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002;

“management function” has the meaning given by section 96(5) of the Commonhold and Leasehold Reform Act 2002.

(10) The Secretary of State may by regulations amend the definition of “management function” for the purposes of this section.”

This new clause would ensure that leases on new flats include a requirement to establish and operate a residents’ management company responsible for all service charge matters, with each leaseholder given a share.

New clause 7—Power to establish a Right to Manage regime for freeholders on private or mixed-use estates

“In Section 71 of the Commonhold and Leasehold Reform Act 2002, after subsection (2) insert—

“(3) The Secretary of State may by regulations make provision to enable freeholder owners of dwellings to exercise a right to manage in a way which corresponds with or is similar to this Part.

(4) A statutory instrument containing regulations under subsection (3) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.””

This new clause would permit the Secretary of State to establish a Right to Manage regime for freeholders of residential property on private or mixed-use estates.

New clause 8—Regulation of property agents

“(1) The Secretary of State must by regulations make provision for implementing the proposals of the Regulation of Property Agents Working Group final report of July 2019 as far as they relate to—

(a) estate management;

(b) sale of leasehold properties; and

(c) sale of freehold properties subject to estate management or service charges.

(2) Regulations under this section—

(a) must be laid within 24 months of the date of Royal Assent to this Act,

(b) shall be made by statutory instrument, and

(c) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

(3) If, at the end of the period of 12 months beginning with the day on which this Act is passed, the power in subsection (1) is yet to be exercised, the Secretary of State must publish a report setting out the progress that has been made towards doing so.”

This new clause would require the Secretary of State to make regulations to implement the proposals of the Regulation of Property Agents Working Group final report within 24 months of the Act coming into force and to report on progress to that end at the end of the period of 12 months.

New clause 9—Qualifying leases for the purposes of the remediation of building defects

“Section 119 of the Building Safety Act 2022 is amended by the insertion after subsection (4) of the following —

“(5) The Secretary of State may, by regulations, amend subsection (2) so as to bring additional descriptions of lease within the definition of “qualifying lease”.””

This new clause would give the Secretary of State the power to bring “non qualifying” leaseholders within the scope of the protections of the Building Safety Act 2022.

New clause 10—Meaning of “relevant building” for the purposes of the remediation of building defects

“Section 117 of the Building Safety Act 2022 is amended by the insertion after subsection (6) of the following—

“(7) The Secretary of State may, by regulations, amend subsection (2) so as to bring additional descriptions of building within the definition of “relevant building”.””

This new clause would give the Secretary of State the power to bring buildings which are under 11m in height or have fewer than four storeys within the scope of the protections of the Building Safety Act 2022.

New clause 11—Report on providing leaseholders in flats with a share of the freehold

“(1) The Secretary of State must publish a report outlining legislative options to ensure that all qualifying tenants in newly-constructed residential properties containing two or more flats have a proportionate share of the freehold of their property.

(2) The report must be laid before Parliament within three months of the commencement of this Act.”

This new clause would require the Secretary of State to publish a report outlining legislative options to provide leaseholders in flats with a share of the freehold.

New clause 12—Proportion of qualifying tenants required for a notice of claim to acquire right to manage

“Section 79 of the CLRA 2002 is amended, in subsection (5), by leaving out “one-half” and inserting “35%”.”

This new clause would reduce the proportion of qualifying tenants who must be members of a proposed Right to Manage company for a claim to be made from one-half to 35%.

New clause 13—Prohibition on new leasehold homes

“(1) Within three months of the passage of this Act, the Secretary of State must by regulations prohibit the sale of any new leasehold home.

(2) Regulations under this section—

(a) shall be made by statutory instrument,

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament; and

(c) may amend primary legislation.”

New clause 14—Premises to which leasehold right to manage applies

“Section 72 of the CLRA 2002 is amended in subsection (1)(a), by the addition at the end of the words “or of any other building or part of a building which is reasonably capable of being managed independently.””

This new clause which is an amendment to the Commonhold and Leasehold Reform Act 2002 adopts the Law Commission’s Recommendation 5 in its Right to Manage report which would allow leaseholders in mixed-use buildings with shared services or underground car park to exercise the Right to Manage.

New clause 15—Meaning of “accountable person” for the purposes of the Building Safety Act 2022

“(1) Section 72 of the Building Safety Act 2022 is amended in accordance with subsections (2) and (3).

(2) After subsection (2)(b), insert—

“(c) all repairing obligations relating to the relevant common parts which would otherwise be obligations of the estate owner are functions of a manager appointed under section 24 of the Landlord and Tenant Act 1987 in relation to the building or any part of the building.”

(3) In subsection (6), in the definition of “relevant repairing obligation”, after “enactment”, insert “or by virtue of an order appointing a manager made under section 24 of the Landlord and Tenant Act 1987”.

(4) Section 24 of the Landlord and Tenant Act 1987 is amended in accordance with subsection (5).

(5) Omit subsection (2E).”

This new clause would provide for a manager appointed under section 24 of the Landlord and Tenant Act 1987 to be the “accountable person” for a higher-risk building.

New clause 16—Commencement of section 156 of the CLRA 2002

“(1) Section 181 of the CLRA 2002 is amended as follows.

(2) In subsection (1), after “104” insert “, section 156”.

(3) After subsection (1) insert—

“(1A) Section 156 comes into force at the end of the period of two months beginning with the day on which the Leasehold and Freehold Reform Act 2024 is passed.””

This new clause would bring into force a requirement of the Leasehold and Freehold Reform Act 2024 that service charge contributions be held in designated accounts.

New clause 17—Eligibility for enfranchisement

“(1) The LHRUDA 1993 is amended as follows.

(2) In section 3—

(a) in subsection (2)(a), after third “building”, insert “, or could be separated out by way of the granting of a mandatory leaseback on the non-residential premises to the outgoing freeholder”;

(b) after sub-paragraph (2)(b)(ii), insert “or

(iii) are reasonably capable of being managed independently or are already subject to separate management arrangements;”

(3) In section 4(1)(a)(ii), after “premises;”, insert “nor

(iii) reasonably capable of being separated out by way of the granting of a mandatory leaseback and reasonably capable of being managed independently from the residential premises;””

This new clause would ensure that leaseholders in mixed-use blocks with shared services with commercial occupiers would qualify to buy their freehold.

New clause 18—Right to manage: procedure following an application to the appropriate tribunal

“(1) The CLRA 2002 is amended as follows.

(2) After section 84, insert—

“84A Procedure following an application to the appropriate tribunal

(1) Where an application is made to the appropriate tribunal under section 84(3) for a determination that an RTM company was on the relevant date entitled to acquire the right to manage the premises, the Tribunal may, if satisfied that it is reasonable to do so, dispense with—

(a) service of any notice inviting participation;

(b) service of any notice of claim;

(c) any of the requirements in the provisions set out in subsection (2); or

(d) any requirement of any regulations made under this part of this Act.

(2) Subsection (1)(c) applies to the following provisions of this Act—

(a) section 73;

(b) section 74;

(c) section 78;

(d) section 79;

(e) section 80;

(f) section 81.””

This new clause would provide the appropriate tribunal with the discretion to dispense with certain procedural requirements where it is satisfied that it is reasonable to do so. It is designed to deal with cases where a landlord attempts to frustrate an RTM claim by procedural means.

New clause 19—Service charges: consultation requirements

“(1) The Landlord and Tenant Act 1985 is amended as follows.

(2) In section 20ZA, after subsection (1), insert—

“(1A) “Reasonable” for the purpose of subsection (1) is a matter of fact for the tribunal, which—

(a) may or may not consider the matter of relevant prejudice to the tenant. If prejudice is to be considered the burden is on the landlord to demonstrate a lack of prejudice or to prove the degree of prejudice;

(b) must include consideration of the objectives of increasing transparency and accountability, and the promotion of professional estate management, as well as of ensuring that leaseholders are protected from paying for inappropriate works or paying more than would be appropriate;

(c) must consider the dignity and investment of the tenant, who should be treated as a core participant in the process of service charge decisions;

(d) must have regard to the tenant’s legitimate interest in a meaningful consultation process, bearing in mind that minor or technical breaches may not impinge on the tenant’s interest, nor prejudice the tenant;

(e) at its discretion may or may not consider a reconstruction of the ‘what if’ situation, analysing what would have happened had the consultation been followed properly. The landlord is liable for the costs of such a reconstruction.””

This new clause would set matters for the tribunal to consider when deciding whether to dispense with all or any of the requirements for landlords to consult tenants in relation to any major works.

New clause 20—Building insurance and section 39 of the Financial Services and Markets Act 2000

“A landlord may not manage or arrange insurance for their building under the protections of section 39 of the Financial Services and Markets Act 2000.”

This new clause precludes a landlord from operating as an appointed representative under the licence of Broker, where the landlord has no such licence themselves.

New clause 21—Collective enfranchisement: removal of prohibition on participation

“(1) Section 5 of the LRHUDA 1993 is amended in accordance with subsection (2).

(2) Omit subsections (5) and (6).”

This new clause would implement recommendation 41 of the Law Commission’s report on enfranchisement, that the prohibition on leaseholders of three or more flats in a building being qualifying tenants for the purposes of a collective enfranchisement claim should be abolished.

New clause 22—Leases for new dwellings: default length

“(1) Where a lease is a regulated lease, it must be issued with a lease term of at least 990 years.

(2) In this section—

“regulated lease” means a lease which meets the following conditions—

(a) it is a long lease of a single dwelling;

(b) it is granted for a premium;

(c) it is granted on or after the relevant commencement day but not in pursuance of a contract made before that day; and

(d) when it is granted, it is not an excepted lease.

the “relevant commencement day” is 1 January 2025.”

This new clause would ensure that all leases created for new flats following 1 January 2025 come with a default length of 990-years, bringing the position of future private sector leases into line with the existing requirements under Home England’s new model shared ownership lease

New clause 23—Report on disadvantage suffered by existing leaseholders

“(1) Within 12 months of this Act receiving Royal Assent, the Secretary of State must commission an independent evaluation of the matter set out in subsection (2) and must lay the report of the evaluation before Parliament.

(2) The matter is the extent to which a tenant who has extended their lease or purchased the freehold of their property after 27 November 2023 but prior to this Act receiving Royal Assent (Tenant A) is disadvantaged in comparison to a tenant who has extended their lease or purchased the freehold of their property after this Act received Royal Assent (Tenant B).

(3) The report must take account of the following factors—

(a) marriage value;

(b) the legal costs likely to be incurred by the freeholder; and

(c) any charge for which Tenant A would be liable but Tenant B would not.

(4) The report must make recommendations to redress any significant disparities between the costs for which Tenant A would be liable but Tenant B would not.

(5) The Secretary of State may by regulations give effect to any recommendations made in the evaluation.

(6) Regulations under this section—

(a) shall be made by statutory instrument; and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.”

This new clause would require the Secretary of State to commission an independent evaluation of any disadvantages faced by a tenant who has extended their lease or purchased the freehold of their property after the introduction of this Bill but prior to it receiving Royal Assent.

New clause 24—Asbestos remediation

“(1) The Leasehold Reform, Housing and Urban Development Act 1993 is amended as follows.

(2) After section 37B, insert—

“37C Asbestos remediation

(1) This section applies where a claim to exercise the right to collective enfranchisement in respect of any premises is made by tenants of dwellings contained in the premises and the claim is effective.

(2) Not less than 3 months before the effective date of the enfranchisement, the landlord must cause a structural survey of the premises to be undertaken by an accredited professional to ascertain whether asbestos is, or is liable to be, present in those parts of the premises which the landlord is responsible for maintaining.

(3) Where the survey required by subsection (2) reveals the presence of asbestos, the landlord must, at the landlord’s cost, arrange for its safe removal.

(4) If the removal of asbestos required by subsection (3) is not carried out before the responsibility for maintaining the affected parts transfers to another person under the claim to exercise the right of collective enfranchisement, the landlord is liable for the costs of its removal.””

New clause 25—Right to statutory compensation when landlord alters premises

“(1) This section applies when both of the following conditions are satisfied—

(a) the first condition is that there are premises in which at least one dwelling is let on a long lease to a person (“T”); and

(b) the second condition is that the landlord or any superior landlord (“L”) under T’s long lease undertakes substantial development to the premises containing T’s dwelling.

(2) When both of the conditions mentioned in subsection (1) are satisfied, L must pay to T compensation reflecting the disruption caused by the substantial development.

(3) The compensation due from L to T under subsection (2) is to be calculated and paid by L to T at a time and in a manner according to regulations made by the Secretary of State.

(4) Notwithstanding any term of any agreement to the contrary, whether the agreement is made before or after the coming into force of this section—

(a) T may set-off any part of any compensation due from L but not paid by L in accordance with this section against any service charges demanded by L; and

(b) L may not exercise or omit to exercise any right, or otherwise take any step, to prejudice T as a result of any set-off exercised by T in accordance with this section.

(5) The County Court has jurisdiction to determine any dispute regarding compensation payable under this section.

(6) Regulations under this section—

(a) are to be made by statutory instrument;

(b) may make provision generally or only in relation to specific cases;

(c) may make different provision for different purposes;

(d) may include supplementary, incidental, transitional or saving provision.

(7) A statutory instrument containing regulations under this section is subject to the negative procedure.

(8) In this section—

“long lease” has the same meaning has the same meaning as in Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (see sections 76 and 77 of that Act);

“service charge” has the same meaning as in section 18 of the Landlord and Tenant Act 1985 (as amended by this Act);

“substantial development” means demolishing, reconstructing or carrying out substantial works of construction on, the whole or a substantial part of the premises.”

This new clause is proposed after clause 21. It would require landlords who extend or alter buildings to pay statutory compensation to residential leaseholders in that building, for example when adding new storeys under permitted development rights. Residential leaseholders would have the right to set-off this compensation against service charges if landlords did not pay.

New clause 36—Codes of management practice: requirement to adhere

“In section 87 of the LRHUDA 1993 (codes of management practice)—

(a) after subsection (1) insert—

“(1A) If—

(a) the Secretary of State has not approved a code or codes of practice which appear to him to promote desirable practices in relation to all necessary matters concerned with the management of residential property by relevant persons within three months of the passage of the Leasehold and Freehold Reform Act 2024, or

(b) as a consequence of the withdrawal of his approval of a code or modifications under subsection (1)(c) it appears to him that codes of practice in relation to all necessary matters are no longer in place,

he must draw up a code or modifications in relation to such matters as he considers necessary and treat that code, or those modifications, as if submitted to him under subsection (1)(a)(ii).”

(b) in subsection (7)—

(i) omit the words “not of itself”, and

(ii) for “but”, substitute “and”.”

This new clause would amend section 87 of the Leasehold Reform, Housing and Urban Development Act 1993 so as to make the codes of practice allowed for under that section mandatory (paragraph (b)), and to require the Secretary of State to ensure that such codes of practice are in place (paragraph (a)).

New clause 37—Qualification in property management

“In section 87 of the LRHUDA 1993 (codes of management practice), after subsection (6), insert—

“(6A) A code of practice approved under this section must require a person who discharges management functions in respect of residential property to hold a relevant qualification in property management.””

This new clause, together with NC36, would require any person who discharges management functions in respect of residential property to hold a relevant qualification in property management.

New clause 38—Information to be given to prospective purchasers of leasehold residential property

“In the LTA 1985, after section 30P (as inserted by section 40) insert—

Information to be given to prospective purchasers of leasehold residential property

30Q Information to be given to prospective purchasers of leasehold residential property

(1) The landlord must ensure that any person purchasing the lease of a dwelling is provided at the point of purchase with a copy of the Government guidance entitled “How to Lease”, as it may be updated from time to time.

(2) For the purposes of this section, “landlord” has the same meaning as in sections 30K to 30N (see section 30P).””

New clause 39—Rights of first refusal on disposal of freehold homes

“(1) Within three months of the passage of this Act, the Secretary of State must by regulations provide for the rights of first refusal granted to qualifying tenants of flats by Part 1 of the Landlord and Tenant Act 1987 to be extended to tenants of freehold houses.

(2) Regulations under subsection (1)—

(a) may amend primary legislation;

(b) are subject to the affirmative procedure (but see subsection (3)).

(3) If before approving a draft of regulations under subsection (1) both Houses of Parliament have agreed amendments to that draft, the Secretary of State must make the regulations in the form of the draft as so amended.”

New clause 40—Failure of landlords to respond to requests for enfranchisement

“(1) Within three months of the passage of this Act, the Secretary of State must conduct a review of the problems faced by tenants wishing to exercise their right to enfranchisement whose landlords do not respond to enfranchisement requests.

(2) A report of the review must be laid before Parliament as soon as it has been completed.

(3) The Secretary of State may by regulations implement any recommendation of the review.

(4) Regulations under subsection (3) may amend primary legislation.”

New clause 41—Report on disadvantage due to payment of marriage value

“(1) Within 12 months of the passage of this Act, the Secretary of State must commission an independent evaluation of the matter set out in subsection (2) and must lay the report of the evaluation before Parliament.

(2) The matter is the extent to which a tenant who has been required to pay marriage value when extending their lease (Tenant A) is disadvantaged in comparison to a tenant who has extended their lease after the passage of this Act (Tenant B).

(3) The report must—

(a) make recommendations to redress any significant disparities between the marriage value costs for which Tenant A would be liable but Tenant B would not; and

(b) recommend the date after which Tenant A must have extended their lease in order to be eligible for any financial redress.

(4) The Secretary of State may by regulations give effect to any recommendations made in the evaluation.

(5) Regulations under this section—

(a) are to be made by statutory instrument; and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.”

This new clause would require the Secretary of State to commission an independent evaluation of any disadvantages faced by a tenant who has been required to pay marriage value when extending their lease in comparison to a tenant who has extended their lease after the passage of this Act and therefore not been required to pay marriage value.

New clause 67—Liability of freeholders for central heating failures

“(1) Within 12 months of the passage of this Act, the Secretary of State must commission an independent evaluation of the matters set out in subsection (2) and must lay the report of the evaluation before Parliament.

(2) The matters are, where there is a failure of a communal central heating system for which a freeholder is responsible which lasts for a minimum of 24 hours—

(a) the extent to which a freeholder should be liable; and

(b) whether, if the freeholder is considered to some extent to be liable, financial penalties should be imposed on the freeholder.

(3) The Secretary of State may by regulations give effect to any recommendations made in the evaluation.

(4) Regulations under this section—

(a) are to be made by statutory instrument; and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.”

This new clause would require the Secretary of State to commission an independent evaluation of the matter of holding freeholders financially liable for long-lasting central communal heating failures where the freeholder has a responsibility for upkeep.

“New clause 68—Shared ownership

(1) Within three months of the passage of this Act, the Secretary of State must by regulations create certain rights and obligations for leaseholders and freeholders on all leasehold properties which are subject to a shared ownership model created after 1967.

(2) The rights referred to in subsection (1) are that any leaseholder has the right to increase their share of the freehold in the property in increments of either ten percent or 25 percent on giving formal notice in writing to the freeholder.

(3) The obligation referred to in subsection (1) is that the freeholder may not charge a rent on their freehold share of the property which is greater than 2.75% of the market value of the share of the property which they hold.

(4) Rights and obligations created by regulations under this section are to apply notwithstanding any legal agreement previously entered into between the leaseholder and the freeholder.”

Amendment 3, in clause 3, page 2, line 19, at end insert—

“(2) After section 4(5) of the LRHUDA 1993, insert—

“(6) The Secretary of State or the Welsh Ministers may by regulations amend this section to provide for a different description of premises falling within section 3(1) to which this Chapter does not apply.

(7) Regulations may not be made under subsection (6) unless a draft of the regulations has been laid before, and approved by resolution of—

(a) in the case of regulations made by the Secretary of State, both Houses of Parliament;

(b) in the case of regulations made by the Welsh Ministers, Senedd Cymru.”

(3) In section 100 of the LRHUDA 1993—

(a) in subsection (2), after “making”, insert “provision under section 4(6) or”;

(b) in subsection (3), after “making”, insert “provision under section 4(6) or”.”

This amendment would enable the Secretary of State or (in the case of Wales) the Welsh Ministers to change the description of premises which are excluded from collective enfranchisement rights. Such a change would be subject to the affirmative resolution procedure.

Government amendments 24 to 31.

Amendment 6, in clause 12, page 16, leave out from line 27 to line 20 on page 17.

This amendment would leave out the proposed new section 19C of the Leasehold Reform Act 1967, and so ensure that leaseholders are not liable to pay their landlord’s non-litigation costs in cases where a low value enfranchisement or extension claim is successful.

Government amendments 32 to 34.

Amendment 7, in clause 13, page 22, leave out lines 1 to 29.

This amendment would leave out the proposed new section 89C of the Leasehold Reform, Housing and Urban Development Act 1993, and so ensure that leaseholders are not liable to pay their landlord’s non-litigation costs in cases where a low value enfranchisement or extension claim is successful.

Amendment 2, in clause 14, page 26, line 40, at end insert—

“(ja) any matter arising under Clause [Estate management: compensation] of the Leasehold and Freehold Reform Act 2024.”

This is a paving amendment for NC2.

Amendment 1, page 28, line 11, at end insert—

“(8A) When considering any matter under this section, the appropriate tribunal must have regard to previous decisions made by an appropriate tribunal in matters which appear, to it, to be materially similar to the matter under consideration under this section.”

This amendment would require tribunals considering cases related to leasehold to have regard to precedent set by previous decisions of tribunals in similar cases.

Government amendments 35 and 36.

Amendment 17, in clause 22, page 39, line 14, leave out “50%” and insert “75%”.

This amendment would allow leaseholders with a higher proportion of commercial or non-residential space in their building to claim the Right to Manage.

Amendment 9, in clause 23, page 40, leave out from the beginning of line 27 to the end of line 27 on page 41.

This amendment would leave out the proposed new section 87B of the Commonhold and Leasehold Reform Act 2002 and so ensure that RTM companies cannot incur costs in instances where claims cease.

Amendment 19, in clause 29, page 46, line 26, at end insert—

“(iii) a statement of all transactions relating to any sinking fund or reserve fund.”

This amendment would require the written statement of account which the landlord will be required to provide to a tenant to include a statement of all transactions relating to any sinking fund or reserve fund in which their monies are held.

Amendment 12, page 47, line 16, at end insert—

“(8) Where a landlord of any such premises fails to comply with the terms implied into a lease by subsection (2), any rent, service charge or administration charge otherwise due from the tenant to the landlord shall be treated for all purposes as not being due from the tenant to the landlord at any time before the landlord does comply with those subsections.”

This amendment would require courts and tribunals to treat the landlord’s compliance with the implied term requirement for annual accounts and certification as a condition precedent to the lessee’s obligation to pay their service charges.

Amendment 13, page 48, line 11, at end insert—

“(9) Where a landlord fails to comply with subsection (1), any rent, service charge or administration charge otherwise due from the tenant to the landlord shall be treated for all purposes as not being due from the tenant to the landlord at any time before the landlord does comply with that subsection.”

This amendment would require courts and tribunals to treat the landlord’s compliance with the implied term requirement for annual accounts and certification as a condition precedent to the lessee’s obligation to pay their service charges.

Amendment 14, in clause 30, page 50, leave out lines 12 to 19 and insert—

“(4) P may not charge R any sum in excess of the prescribed amount in respect of the costs incurred by P in doing anything required under section 21F or this section.

(5) The prescribed amount means an amount specified in regulations by the appropriate authority; and such regulations may prescribe different amounts for different activities.

(6) If P is a landlord, P may not charge the tenant for the costs of allowing the tenant access to premises to inspect information (but may charge for the making of copies).”

This amendment would make the appropriate authority (i.e. the Secretary of State or the Welsh Ministers) responsible for setting a prescribed amount for the costs of providing information to leaseholders. That prescribed amount would be the maximum amount that freeholders and managing agents employed by them could seek to recover through a service charge.

Amendment 15, in clause 31, page 51, line 35, leave out “£5,000” and insert “£30,000”.

This amendment would raise the cap on damages under this section for a failure to comply with duties relating to service charges to £30,000.

Amendment 16, page 51, line 35, at end insert—

“(5A) Damages under this section must be at least £1,000.”

This amendment would insert a floor on damages under this section of £1,000.

Amendment 20, in clause 32, page 52, line 32, leave out from beginning to end of line 33 and insert—

“(a) exceed the net rate charged by the insurance underwriter for the insurance cover, and”.

This amendment would define an excluded insurance cost as any cost in excess of the actual charge made by the underwriter for placing the risk, where such cost is not a permitted insurance payment.

Amendment 21, page 52, line 35, leave out from beginning to end of line 6 on page 53.

This amendment, to leave out subsection (3) of the proposed new section 20G of the Landlord and Tenant Act 1985, is consequential on Amendment 20.

Amendment 22, page 53, line 18, at end insert—

“(5A) The regulations must specify a broker’s reasonable remuneration at market rates as a permitted insurance payment.

(5B) The regulations must exclude any payment which arises, directly or indirectly, from any breach of trust, fiduciary obligation or failure to act in the best interests of the tenant.”

This amendment would require “permitted insurance payment” to include payment of a reasonable sum to a broker at market rates for placing the cover, and to exclude any payments which have arisen from wrongdoing.

Amendment 10, page 60, line 2, leave out clause 35.

Government amendments 37 to 41.

Amendment 18, in clause 46, page 75, line 23, at end insert—

“(c) only where they are incurred in the provision of services or the carrying out of works that would not ordinarily be provided by local authorities.”

This amendment would mean that services or works that would ordinarily be provided by local authorities are not relevant costs for the purposes of estate management charges.

Government amendment 42.

Amendment 83, in clause 74, page 97, line 37, at end insert—

“(2) Within three months of the passage of this Act, the Secretary of State must publish guidance on the circumstances in which the Secretary of State will give financial assistance or make other payments under this section.”

This amendment would require the Secretary of State to publish guidance on the circumstances in which financial assistance would be made available for the establishment or maintenance of estate management redress schemes.

Government amendments 43 to 48.

Amendment 11, in page 104, line 30, leave out clause 83.

See explanatory statement to NC4.

Government amendments 85 and 49.

Government new schedule 1—Part 5: Amendments to other Acts.

Government new schedule 2—Categories of permitted lease.

Government new schedule 3—Leasehold houses: financial penalties.

Government amendments 50 to 53.

Amendment 4, in schedule 2, page 136, line 40, at end insert—

“(9) In setting the deferment rate the Secretary of State must have regard to the desirability of encouraging leaseholders to acquire their freehold at the lowest possible cost.”

This amendment would ensure that when determining the applicable deferment rate, the Secretary of State would have to have regard to the desirability of encouraging leaseholders to acquire their freehold at the lowest possible cost.

Amendment 5, page 138, line 6, at end insert—

“(7A) In setting the deferment rate the Secretary of State must have regard to the desirability of encouraging leaseholders to extend their lease at the lowest possible cost.”

This amendment would ensure that when determining the applicable deferment rate, the Secretary of State would have to have regard to the desirability of encouraging leaseholders to extend their lease at the lowest possible cost.

Government amendments 54 to 67.

Amendment 8, in schedule 7, page 168, line 15, leave out sub-sub-paragraph (a).

This amendment would ensure that all leaseholders, not just those with residential leases of 150 years or over, have the right to vary their lease to replace rent with peppercorn rent.

Government amendments 68 to 82, 84 and 23.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

Let me begin by thanking Members in all parts of the House for their valuable contributions to the Bill. It is good to see that so many who have been involved so far are present; a number of them have been campaigning for these changes for years. I will not be able to name everyone, but I pay tribute to, in particular, my right hon. Friends the Members for Bromsgrove (Sir Sajid Javid), and for Newark (Robert Jenrick), my late right hon. Friend the former Member for Old Bexley and Sidcup, James Brokenshire, and my hon. Friend the Member for Redditch (Rachel Maclean), all of whom have played such important roles in preparing the ground for many of the measures before us today. They have all been invaluable in helping us to reach the point at which we deliver on the commitment that we made to reform a system that clearly needs change, and give millions the freedom, security and control over their life that comes with home ownership in its truest, fullest sense.

At a stroke, the Bill will provide that greater control for young people and many others. It will help to reduce unnecessary stress, uncertainty and wasted time by reforming a labyrinthine system and making it better. Buying a home, especially a first home, must be a moment of pride and celebration—a just reward for years of hard work, careful saving, sacrifices made, and doing the right thing. For some, however, the dream of home ownership is realised in soaring service charges, rip-off insurance commissions and escalating ground rents. Overall, and most infuriatingly, there is a sense of being left in the dark, and of a system that is working against, rather than for, the homeowner. That is bad for everyone, but it is notable that first-time buyers constitute nearly 50% of leaseholders; 15% of owner-occupiers are aged under 35. They are the future of our property-owning democracy, and they rightly expect and deserve to put down roots and have the same stake in society as previous generations.

Priti Patel Portrait Priti Patel (Witham) (Con)
- Hansard - - - Excerpts

I would welcome my hon. Friend’s views on that point. What he has said is entirely correct. I have met so many first-time buyers in my constituency who are trapped, because they are stuck in a cycle of increasing service charges. Even worse, facilities companies are not maintaining properties when there are serious problems. I am meeting representatives of one of them, FirstPort, at the weekend, but a great many other examples have been cited in the House. We are deeply concerned, because our constituents have sacrificed so much. They have put all their investments and savings into their property, but there is clearly no accountability or transparency, and we hope that the Bill will change that.

None Portrait Hon. Members
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Hear, Hear.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

My right hon. Friend is absolutely right, and the support that has just been expressed for her comments demonstrates that many of us see these issues in our constituency. As she says, it is vital that we give people who have made such sacrifices in order to achieve first-time home ownership the right to, and the greatest control over, that ownership.

Eddie Hughes Portrait Eddie Hughes (Walsall North) (Con)
- Hansard - - - Excerpts

In my constituency, Victoria Avenue (Harvest Grove) Management Company seems to be extorting money from leaseholders and not providing any of the works that it says it is providing. It is taking them to court and charging them for the benefit of having letters sent to them with invoices. Through this Bill, we desperately need to redress the balance between freeholders and leaseholders. Will the Minister see that that is the case?

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

My hon. Friend is absolutely right. He makes a very important point about transparency, which is at the heart of the service charge changes in the Bill. He makes an extremely important point about fairness. Not all companies will be doing things that are incorrect, but where they have been found to be incorrect, it is important that they shoulder their own costs.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
- Hansard - - - Excerpts

I thank the Minister for his generosity with his time. It is not only companies that are exploiting leaseholders; the St Mary Magdalene and Holy Jesus Trust in my constituency refuses to allow its leaseholders to extend their lease or buy their freehold. The charitable exception is very complex, and nobody wants historic houses to be sold, but these are ordinary terraced houses and the charity used to sell the freehold and, indeed, extend leaseholds in the past. Is it possible for the Minister to meet me or my constituents to look at how this issue can be addressed in the future?

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

I am grateful to the hon. Lady for outlining that issue; I know she has raised it in this place before. As she indicates, this is a complex area of law, but I am happy to talk with her separately on that matter in the coming weeks, if it is helpful.

How are we doing this? We are giving leaseholders more security over the future of their homes by increasing the standard lease extension term to 990 years, by making it cheaper and easier for leaseholders to buy their freehold, and by tackling unfair charges, exploitative practices and poor management. In doing so, we are overturning centuries of iniquity.

The Bill will also give leaseholders the control they deserve over the buildings they live in. At present, management companies are too often unaccountable to those who pay for them, meaning that they are able to charge excessive fees for poor-quality service. The Bill gives more leaseholders the opportunity to manage the buildings themselves, so that works get done properly and they have more of a say.

Clive Betts Portrait Mr Clive Betts (Sheffield South East) (Lab)
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The Minister might anticipate the question I am going to ask, because I have asked it before. It is fine giving leaseholders easier ways to buy their freehold, until we come across companies such as Coppen Estates, which we have debated before. It just does not reply to letters. I think that we are now on our third recorded delivery letter to the company about the residents on the Flockton estate, who have just been sent enhanced bills for their ground rent charges, with no justification. They face threats if they do not comply. Where in the Bill is there any measure to make sure that Coppen Estates and the like respond properly in future or face consequences if they do not?

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

I am grateful to the hon. Gentleman. As he knows, we have debated the iniquities of Coppen Estates extensively, and I repeat that it is treating my constituents in a way that is inappropriate, in the same way that it is doing with his constituents over the border. Given that we are extending the opportunity for charges to go to tribunal, I hope that the hon. Gentleman’s constituents in Flockton will be able to go to tribunal and hold that company or other companies to account, should that be helpful.

Through the reforms, we will scrap the presumption that leaseholders must pay their freeholder’s legal costs, even when they win at tribunal, correcting another historical and unfair imbalance. Someone would not be expected to pay legal costs if they were successful in their claim in other cases, so leaseholders should not be treated any differently.

Barry Gardiner Portrait Barry Gardiner (Brent North) (Lab)
- Hansard - - - Excerpts

The Minister was most accommodating throughout the proceedings in Committee, and we are all grateful to him for the way in which he has listened.

Further to the point raised by my hon. Friend the Member for Sheffield South East (Mr Betts), the Minister will know that many developers have located themselves extrajudicially in places such as the Cayman Islands. Wembley Central Apartments Ltd in my constituency has finally ended up there, as have many others. What in this Bill will enable us to extend our reach and force such companies to respond, reply and do what the Building Safety Act 2022 already says they ought to do?

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

The hon. Gentleman makes an important point, which I know we debated in Committee. He correctly highlights the challenges in certain areas of enforcement. If I may, I will come back to that later in the debate.

Stella Creasy Portrait Stella Creasy (Walthamstow) (Lab/Co-op)
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I join my hon. Friend the Member for Brent North (Barry Gardiner) in recognising that this is not a partisan issue, because so many of us see the problems. The Minister talked about people not paying the costs when they win, but many will be shocked to discover that no precedent is set at a leasehold tribunal. We see companies exploit our constituents time and again, and it creates no precedent on which the courts and the tribunal courts could draw. Will he look at my amendment 1? It seeks to set that precedent and give people the protection of knowing that a freehold manager who has mistreated people will not be able to do it with impunity, because the courts will be able to take that into consideration if a tribunal has found that to be the case.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

I am grateful to the hon. Lady, and I know that she feels strongly about this matter and has raised it previously. I am always happy to talk outside the Chamber, but the advice I have received is that, at the higher tier of the tribunal, there is the ability to give an indication of the direction of travel and a precedent can be set there. As I say, I am happy to talk to the hon. Lady separately.

In Committee, we made efforts to further improve and expand the Bill. We moved 119 amendments, including on expanding leaseholder rights of redress and providing new guarantees that leaseholders will receive sales information, and tabled a number of technical amendments to improve it. Today we are proposing further improvements, and I will now turn to the Government amendments on Report. I will first speak to new clauses 30 to 35, and amendments 23 and 49.

Building on the Building Safety Act 2022, the Government have tabled a number of amendments to clarify and extend protections in specific areas to further prevent freeholders and developers from escaping their liabilities to fund building remediation work. The Building Safety Act provided leaseholders with a range of protections to ensure that those responsible for building safety defects were made to carry out the works or pay for them to be carried out. However, before and during the process of remediation, relevant steps may be required to keep the building and the residents safe. Relevant steps include such measures as providing waking watches, fire sprinklers or simultaneous alarms. Unfortunately, there have been cases where the landlord has failed to put those in place or to pay for the relevant steps. That has caused the leaseholder to bear the financial burden or required the local authority to step in.

New clause 30 would place beyond doubt that the first-tier tribunal can order that the costs of the relevant steps are met when making a remediation contribution order or a remediation order. It is often the case that doing surveys or investigative works to discover the full extent of remediation required on a building takes time, money and effort, and those assessments can be invasive. New clause 31 would place it beyond doubt that the first-tier tribunal has the power to order that a respondent must arrange and pay for evaluations, surveys or expert reports to establish the full extent of a building’s defects.

On new clause 32, we know that in some instances, landlords of buildings that are 11 metres high or above are failing to provide alternative accommodation for leaseholders when they are decanted from their homes. This new clause would place it beyond doubt that, in addition to relevant steps and expert reports, the costs of alternative accommodation for leaseholders and other residents who are decanted from their homes can be recovered through remediation contribution orders.

On new clause 33, resident management companies and right-to-manage companies allow leaseholders to have more control over their buildings. However, such management companies are unable to fund litigation against non-compliant landlords, as they are unable to recover the costs for doing so from leaseholders in their buildings. This new clause would allow such management companies, where the relevant lease allows, to raise funds for remediation contribution orders, making sure that we continue to hold those responsible for life-threatening defects to account.

New clause 34 would repeal section 125 of the Building Safety Act, which was intended to allow for the recovery of remediation costs relating to residential buildings that are 11 metres high or above in an insolvency, and for these funds to be used to remediate the building. However, there is a conflict with insolvency law and a risk that, instead of being used for remediation, any sums recovered under section 125 could be directed to pay down the debt. This problem cannot easily be remedied, so we are seeking to repeal the section at this time.

New clause 35 proposes that regulators need to be made aware if those responsible for relevant buildings—that is, responsible persons—become insolvent. This new clause introduces a duty on insolvency practitioners to notify local fire and rescue authorities, local authorities and, where necessary, the building safety regulator.

I also want to speak to new clauses 42 to 66, new schedules 2 and 3 and amendment 84. We know that there is little justification for selling houses on a leasehold basis. For years, developers have exploited the sale of houses on a leasehold basis for the sole purpose of generating an income stream from ground rents and fees. This has been done at the expense of consumers, who receive little or no benefit in return. We promised to shut down this abusive practice by banning the sale of houses on a leasehold basis, and today we are doing so. Other than in narrow circumstances where a lease can still be justified, all new houses will need to be sold on a freehold basis.

Wendy Morton Portrait Wendy Morton (Aldridge-Brownhills) (Con)
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I am really grateful for this news from the Minister. It certainly goes a long way towards addressing my new clause 13. He speaks specifically about banning leasehold sales of new houses, but what consideration will he give to extending that ban to leasehold flats? I know that that is a concern for a number of us on both sides of the House.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

I know that my right hon. Friend has campaigned extensively for the ban on leasehold houses, as many in this Chamber have done, and she has spoken up in this place on the issue before. I am grateful for her support for it. She also rightly talks about the extensive debate about the potential extension of the ban to flats. The Secretary of State has said at this Dispatch Box on numerous occasions that the Government remain keen to make progress on finding an alternative workable solution to leasehold flats—most people in this place recognise that that will probably be commonhold—and work will continue on that. We hope to make further progress on that in the future—

None Portrait Several hon. Members rose—
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Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

Commonhold has clearly created a significant amount of interest.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
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I thank my hon. Friend for giving way, and for what he is saying. There are certain building companies in this country—Bellway Homes, for example—whose policy is to sell the leasehold to leaseholders and sell the freehold to a company that then exploits every aspect of the freehold, without even informing the leaseholder that they have done this. Surely we can close this loophole—we could close it this afternoon—by ensuring that the freeholder must give the leaseholder the first right of refusal to purchase the freehold.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

My hon. Friend raises an important point. I know that it is covered in an amendment put down by the hon. Member for Sheffield South East (Mr Betts), and I will come to it later in the debate.

Mark Tami Portrait Mark Tami (Alyn and Deeside) (Lab)
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On the point made by the hon. Member for Harrow East (Bob Blackman), Bellway is certainly a company that has done this. Indeed, many people did not even realise that they had a leasehold house and only found out quite a while afterwards when all the costs started to come down the road. I welcome what the Government have done, but we must try to find a good solution for everybody who now finds themselves in this position, because in the years to come those houses could become very difficult to sell.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

The right hon. Gentleman makes an important point about the need to ensure that this regime works. We recognise that there are challenges, which is why we are bringing forward a number of measures.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
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On the point about existing contracts that have been signed by people purchasing a leasehold property, is it the Government’s view that those were legitimate contracts and that there is therefore a risk in trying retrospectively to reverse the conditions of those contracts? Or is it the Government’s view that those were abusive contracts and that there is therefore a public policy interest in retrospectively eliminating the leasehold element of them?

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

I hope that I will be able to answer my hon. Friends’ questions in a moment when I run quickly through our amendments. We are banning the sale of leasehold houses in all but unusual circumstances, but for those that are out there at the moment, there must be an ability to ensure that they can buy the freehold and move from the leasehold challenges to a freehold. Let me deal with some specifics that I hope will answer some of the questions that have been raised.

15:16
New clause 42 bans the grant of new long leases of houses. It will cover both newly built houses and existing freehold houses where the owner attempts to grant a new long lease. This new clause also closes a potential loophole by preventing the latest sale of a lease where circumstances have changed between the date the lease is granted and the date it is assigned. For example, this will thwart a developer from granting a lease of vacant land to a sister company, building a house on the land and then selling what is now a leasehold house.
New clause 43 sets out the broad conditions for what properties will be captured by the ban. Each of these broad conditions is then defined in the subsequent four clauses. New clauses 44 and 45 specify what constitutes a long leasehold interest for the ban. It adopts the established definitions in law, which are familiar to developers and home owners alike. New clause 46 sets a definition in law of a house for the purpose of this legislation. This is a broad definition that should reflect what prospective buyers would rightly consider to be a house. The definition will also capture attempts to create minor interdependencies between two properties, which developers might create to get around the ban. New clause 47 confirms what a residential lease is. It provides that a long lease of a property will be a residential lease if the lease does not prevent use as a separate dwelling. Again, this is a broad definition designed to prevent the mis-selling of leasehold houses and capturing only leases of properties used as a house.
We recognise that in a limited number of cases the use of leases can still be justified. For the purposes of this Bill we are calling them permitted leases. We have consulted widely on what should and should not be exempt from the ban, and even on the question of what is and is not a house for these purposes. The result is the collection of definitions now detailed in new schedule 2 to the Bill. These exemptions will allow vendors to continue to sell long leases on houses where the use of a lease can be justified. This includes land where properties cannot be sold on a freehold basis, such as inalienable National Trust land, or where the product relies on a lease connected to an active third party, such as shared ownership houses or community land trusts. We are able to—and we will, if need be—revisit these definitions and exemptions if innovation in the housing market requires it, or if we see evidence of poor behaviour.
New clause 49 would create an additional layer of protection for consumers and clarify which leases are permitted, usually when a developer intends to sell a number of new leases of houses on the same site. Those who intend to grant or sell leases that fall into one of the categories set out in part 1 of the schedule will be required to make an application to the appropriate tribunal for determination on whether the proposed lease is permitted. This includes houses sold on land leased before the Government announced their intention to ban leasehold houses in December 2017, and leases such as retirement house leases or those on inalienable National Trust land.
To add further clarity for consumers and subsequent buyers, the tribunal will grant a certificate confirming that the lease is permitted and under which category. Critically, this must happen before the lease is marketed, so that the potential buyer can proceed with the purchase with confidence, knowing that the house is exempt from the ban. This relates to the point made by the right hon. Member for Alyn and Deeside (Mark Tami). Not many developments will need to go through this process, but those operating where it is not always clear whether a lease is permitted or required will have to do so.
To ensure that consumers have access to the material information they need and that they have the confidence to make a decision when purchasing a new house, new clause 50 requires those proposing to sell a new lease of a house to make this clear when marketing the property. To ensure that vendors comply with the new marketing requirements, this measure will rely on new clause 59 to implement a new penalty regime. This includes a fine for failing to provide the required marketing information at the right time. We know that not all home buyers will read the detail of all the marketing information and that not all leases will be advertised, so new clause 51 introduces warning notices so that all vendors will have to alert purchasers in writing that they are entering into the lease of the house, or an agreement for the lease of the house, and informing them on what grounds that lease is permitted.
Mark Tami Portrait Mark Tami
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I thank the Minister for giving way again. One problem is that many of these companies encouraged buyers to use their lawyers, who did not point out some of the pitfalls of leasehold properties.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

The right hon. Gentleman is absolutely right, which is why I hope that measures such as new clause 51 go some way towards making it crystal clear that there is no way to get around this, and towards providing clarity to those who seek to buy a new property.

New clause 52 will require a statement on the front of all new leases declaring that it is a permitted lease and is not a long residential lease of a house. Should a developer make a dishonest declaration to His Majesty’s Land Registry, the homeowner may be able to exercise the redress right contained in new clause 54, which will allow them to acquire the freehold from the developer free of charge.

Under new clause 53, if a lease does not include the prescribed statements, His Majesty’s Land Registry will have the power to restrict the resale of the property until the right information and declarations have been provided.

Clive Betts Portrait Mr Betts
- Hansard - - - Excerpts

The Minister is talking about the information on houses. Will it also apply to flats so that, before anyone buys a property, it must be explained to them that they are buying a lease and what that entails? I tabled new clause 38, which says that everyone buying a lease should be presented with a copy of the Government’s “How to Lease” document. Everyone in this situation should be given independent advice.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

I am focusing on homes, and we have been emphatic and clear that the sale of leasehold homes will be precluded other than in exceptional circumstances. I am happy to talk to the hon. Gentleman both later in the debate and outside the Chamber about whether further consumer protections for those purchasing a flat may be proportionate and reasonable.

New clause 54 grants homeowners who have been mis-sold a new lease of a house the right to acquire the freehold from the landlord, as well as any superior leasehold interest in the property, for zero cost. New clauses 55 and 56 set out protections and reasonable limitations on this requirement, and new clause 57 provides for the Secretary of State to make regulations setting out further details on how redress can be obtained.

We understand that granting homeowners the right to redress alone may not be enough to prevent bad actors from attempting to breach the ban on the sale of leases on houses, which is why we are introducing a system of financial penalties where there is a breach. These penalties will start at £500 for a minor breach, rising to £30,000 for the most serious breaches. To enforce this system of fines, as set out in new clause 58, we are asking all local weights and measures authorities to play a part where they see infractions in their area. We will also set out how they need to work through new clause 60.

The chief responsibility for investigating and taking action will lie with the lead enforcement authority. Through new clause 61, the Secretary of State will have the power to appoint the right authority to fulfil this important role, while new clause 62 details the duties. By amending the Consumer Rights Act 2015, clauses 63 and 64 also vest the appropriate investigatory and enforcement powers essential for both the lead authority and local authorities to carry out the job.

Matt Rodda Portrait Matt Rodda (Reading East) (Lab)
- Hansard - - - Excerpts

Can the Minister assist me with a relatively unusual issue in my constituency? I have listened very carefully to his helpful speech. In the Loddon Park development on the edge of Woodley in my constituency, residents were sold properties only to discover in the small print of their contract, as my right hon. Friend the Member for Alyn and Deeside (Mark Tami) said, that they were expected to pay a standing charge to upkeep open space on this large development, even though they are freeholders of their own houses. Will the Minister look into this matter and write to me about what redress might be open to them?

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

I am very happy to write to the hon. Gentleman about the specifics.

In addition to the building safety measures and the ban on new leasehold houses, the Government have tabled a number of consequential amendments to refine and improve the Bill.

With the leave of the House, I will mention three key issues among the many that were brought to our attention in Committee. I understand these issues will be subject to further debate today, but I want to acknowledge that they are: capping existing ground rents, which has already been raised; leaseholder forfeiture, which I know will be raised; and support for the residents of freehold estates, which has already been extensively addressed.

I know that Members will have questions about the Government’s plan to address ground rents, and we have consulted on introducing a cap on ground rents in the Bill. We extended the consultation on request and, as a result, we are still considering our next steps. We will say more shortly.

Wendy Morton Portrait Wendy Morton
- Hansard - - - Excerpts

The Minister is generous in giving way. Can he give us an indication of the timescale? Many Members will be interested to know the answer. And does he anticipate being able to introduce something when the Bill reaches the other place?

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

Although I cannot give the specific assurances that my right hon. Friend seeks, we are trying to work through this at speed. We recognise that it is an important issue, and we recognise that it is vital to today’s discussion. I know that hon. and right hon. Members will recognise that this is a hugely contested area in which there has already been significant discussion. People have very different views, so we want to make sure that, while we are moving at speed, we take our time so that we reach a conclusive decision through the right methodology and process.

Vicky Ford Portrait Vicky Ford (Chelmsford) (Con)
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My constituent is in a flat with a ground rent of £454 a year. As that is over the £250 threshold, it means that their property can be taken away from them if they fail to pay their ground rent. As a result, my constituent has failed to sell their property six times, even though they have had buyers. They are stuck in this flat, and they cannot get on with their life. Will the Minister please look at this threshold, which is causing real problems?

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

My right hon. Friend moves me on to my second point. We also recognise the strength of feeling on the vexed issue of forfeiture. The hon. Member for Greenwich and Woolwich (Matthew Pennycook) made a clear case on this in Committee, as did other Members, and I also heard a passionate and eloquent case in Committee from my hon. Friend the Member for Walsall North (Eddie Hughes).

Eddie Hughes Portrait Eddie Hughes
- Hansard - - - Excerpts

Will the Minister simply remove any opportunity for forfeiture? It is arcane and has no place in our system. I strongly suspect that would get support on both sides of the House.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

The House sees my hon. Friend’s passion, which he demonstrated in Committee and is demonstrating again today. Both he and my hon. Friend the Member for Redditch made passionate cases in Committee.

I recognise that this is a real and significant problem, and there is a huge iniquity at stake. I have heard from colleagues, both today and previously, about why we should act, and we are currently working through the detail of the issue. We will report back to the House with more details shortly.

Finally, a comprehensive debate in Committee on freehold estates was led by my hon. Friend the Member for North East Bedfordshire (Richard Fuller). He is a committed campaigner on this issue, and I know that many other Members also have very strong views. I have also been involved in this in places such as Alderman Park and Hunloke Grove in my constituency. We understand the strength of feeling on this issue, and we are considering it further.

Alistair Strathern Portrait Alistair Strathern (Mid Bedfordshire) (Lab)
- Hansard - - - Excerpts

Residents of estates across my constituency are trapped in extortive relationships with unaccountable private management companies while their estates go unadopted. On Second Reading, the Secretary of State expressed his willingness to bring forward and consider measures to make sure that residents have the right to manage on such estates, at a bare minimum, before considering wider action. Is there any reason why the Government would not accept new clause 7 in the name of the shadow Minister to finally give the residents of these estates the right to manage and to get out of these extortive relationships?

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

The hon. Gentleman made that case in Committee, and I am grateful to him for that and for repeating it today. As I say, we understand the strength of feeling on the issue and are considering it further.

Lee Rowley Portrait Lee Rowley
- Hansard - - - Excerpts

I will give way one final time and then I will conclude, so that others can get in.

Gareth Johnson Portrait Gareth Johnson
- Hansard - - - Excerpts

These management companies that the Minister alluded to have a literal monopoly over the residents they are meant to serve—in effect, they control the residents, rather than the other way round—so I welcome the amendments made in Committee to ensure that residents can change their management companies. Will he give a commitment to this House that he will ensure that those amendments stay in the Bill, both here and in the other place, and that they will become law?

Lee Rowley Portrait Lee Rowley
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My hon. Friend has been a campaigner for many years on the importance of this matter, and I know how strongly he feels and how much he acts on it on behalf of his constituents. We are absolutely committed to making progress on estate management. The Bill demonstrates a significant step forward in doing that, and we will see what else we can do in the future.

Lee Rowley Portrait Lee Rowley
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I am going to wind up so as to give others the opportunity to speak. To sum up, property ownership has been described as one of the bulwarks of individual freedom, and the measures I have described today are designed to give all homeowners, particularly the younger generation, the chance to gain a proper stake in our democracy. The Bill seeks to bring greater fairness, transparency and accountability to the system, and to give millions of people across the country a more secure foundation to get on in life, a stronger stake in our society and a solid platform for the future. I am grateful for all Members’ efforts to improve the Bill and for the scrutiny and debate it has received so far, and I look forward to hearing the further discussions to that effect this afternoon.

15:30
None Portrait Several hon. Members rose—
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Baroness Winterton of Doncaster Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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Order. Colleagues will see that a lot of right hon. and hon. Members wish to contribute to this debate, which has to finish at 6 pm. I will want to bring the Minister back for a short time. Another Deputy Speaker is taking over in a moment, but let me advise that those speaking from the Back Benches should be prepared to speak for between six and seven minutes, in order for us to get everybody in. I am afraid that that is because of the pressure on time. I call the shadow Minister.

Matthew Pennycook Portrait Matthew Pennycook (Greenwich and Woolwich) (Lab)
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I start by declaring an interest: my wife is the joint chief executive of the Law Commission, whose work in this area I intend to reference in my remarks.

I rise to speak to the amendments and new clauses that stand in my name. Before doing so, I would like to put on record my thanks to all those hon. Members who served on the Public Bill Committee for so ably scrutinising the many technical and complex provisions that the Bill contains. There were, as one would expect, differences of opinion and emphasis, but it was also evident that there is a shared recognition that the Bill can and should be improved further, and an unusual degree of cross-party agreement as to some of the ways that might be achieved.

Despite reams of Government amendments tabled in Committee and for our consideration today, this Bill remains a distinctly unambitious piece of legislation. That is a matter of deep regret to those on the Labour Benches, not only because the Government’s paucity of ambition will see exploited leaseholders wait even longer for the current iniquitous leasehold system to be ended, but because it is also manifestly clear that there is widespread support across the House to go much further than this limited Bill does. Responsibility for the fact that the Bill does not contain so many of the commitments that successive Conservative Secretaries of State have made over recent years, not least in relation to the promised widespread introduction of the commonhold tenure, ultimately lies with Ministers. They had the opportunity to bring forward bold leasehold and commonhold reform legislation, and they made a political decision not to do so.

Although the Opposition appreciate the understandable desire of many leaseholders to see this Bill completely revamped so that it lives up to the many weighty promises made by the Government since 2017, we made clear at the outset in Committee that we did not intend to try to persuade Ministers to radically overhaul it by means of the many hundreds of amendments that would be required to implement all the Law Commission’s recommendations on enfranchisement, right to manage and commonhold. That remains our position. Whether this Bill receives Royal Assent or not before this Parliament is dissolved, a Labour Government will have to finish the job of finally bringing the leasehold system to an end by overhauling it to the lasting benefit of leaseholders and reinvigorating commonhold to such an extent that it will ultimately become the default and render leasehold obsolete. I reassure leaseholders across the country that we are absolutely determined to do so.

We recognise, however, that this limited Bill will provide a degree of relief to leasehold and freehold homeowners in England and Wales by giving them some greater rights, powers and protections over their homes. For that reason, we are extremely pleased it will complete its passage today, but we are determined to send to the other place the most robust piece of legislation that we can. That means rectifying the Bill’s remaining flaws and incorporating into it a select number of measures to further empower leaseholders and improve their rights. With that objective in mind, we have tabled a series of amendments and new clauses for consideration today. That they are almost identical to a number of those we discussed at length in Committee is a deliberate choice that reflects not only the importance we place on the changes they seek to secure, but the distinct lack of convincing responses from the Minister in Committee as to why the Government felt they needed to resist them.

Part 1 of the Bill concerns leasehold enfranchisement and extension. In seeking to implement the small subset of reasonable and proportionate Law Commission recommendations, it is almost entirely uncontentious. However, we believe that several provisions in this part are defective. We sought to remedy their deficiencies in Committee and we have tabled a number of amendments in an attempt to do so again.

Amendments 4 and 5 concern arguably the most significant provisions in this part when it comes to ensuring that the process of extending a lease or acquiring a freehold is as cheap as possible for existing leaseholders—namely the proposed new valuation process as provided for in clauses 9 to 11 and schedules 2 and 3. The current valuation method has a number of manifest flaws, and we fully support the new method as proposed in the Bill. However, with the applicable deferment rate becoming the primary driver of price to be paid in enfranchisement or extension claims under the new method, as a result of the abolition of marriage and hope value and the peppercorning of ground rents in the valuation calculation, we believe it is essential that it is set in a way that is fair to leaseholders. While the Government ostensibly agree, there is nothing on the face of the Bill to ensure that that will be the case and we therefore remain convinced that this Government, or a future one, could be lobbied by vested interests to set a deferment rate that will be punitive to leaseholders.

In resisting our efforts to amend the Bill in Committee to guard against such an outcome, the Minister argued that the Secretary of State must have flexibility to make decisions on the rate or rates. We agree; we are not suggesting that we bind the hands of Ministers by prescribing the rate or rates on the face of the Bill, but we do believe that the legislation should be amended to place a clear obligation on the Secretary of State to set a rate or rates with the overriding objective of encouraging leaseholders to acquire their freehold at the lowest possible cost.

Richard Fuller Portrait Richard Fuller
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The shadow Minister is right that there was a lot of consensus in Committee, so I hope he will not mind me probing him on some of the language he just used about the issue of setting rates. We all want to see what the Government do on deferment and capitalisation rates, but the shadow Minister used the term “punitive to leaseholders”. Does he accept that already embedded in the issues about ground rents and the changes here is a substantial transfer of value from freeholders to leaseholders, that the people who are more likely to suffer from punitive behaviour are those who entered into contracts historically from the freeholder side expecting that those values would be considered, and that it is a public policy decision that will change the value in those contracts?

Matthew Pennycook Portrait Matthew Pennycook
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I understand the hon. Gentleman’s point, which he made in Committee as well, if I am not mistaken. We very much think the risk is on the other side of the scale—that is, that a Government would be tempted to set a rate that is damaging to leaseholders as a result of being lobbied by vested interests. While there is a balance to be struck, we think it is right that we put on the face of the Bill that the objective in setting the deferment rate as part of the premium calculation must be to ensure that leaseholders acquire their freehold at the lowest possible cost. Amendments 4 and 5 would ensure that that is the case and I commend them to the House.

Part 2 of the Bill makes changes to other rights of long leaseholders. It contains the four clauses in the Bill that implement Law Commission recommendations on the right to manage, several of which we have sought to improve, as well as clause 21, which makes provision for a new enfranchisement right to extinguish a ground rent without having to extend a lease. We still have absolutely no idea how this clause—or clauses 7 and 8, for that matter—will interact with any proposals that might emerge from the recently closed consultation on restricting ground rents for all existing leases. The Minister must provide further clarification on that; it cannot be right that we could be dealing with such a significant issue when we get to ping-pong stage, in due course.

We very much welcome the intent of clause 21 and schedule 7, which it gives effect to. Even if unamended, they will ensure that some leaseholders can enjoy reduced premiums and secure nominal ground rent ownership of their properties without the need to go through the challenge and expense of repeated lease extensions. However, we remain unconvinced by the Government’s proposed conferral of this new right only on those leaseholders with leases with an unexpired term of more than 150 years. In resisting our attempt to remove the 150-year threshold from the Bill in Committee, the Minister essentially made two arguments. The first was that there is a need to

“put a finger on the scale”

somewhere. In other words, the Government take the view that the new right must be restricted based on lease length. The second argument was that in determining the threshold for restriction, the primary consideration should be which leaseholders are

“unlikely to be interested in, or do not need, a lease extension.”––[Official Report, Leasehold and Freehold Reform Public Bill Committee, 25 January 2024; c. 271.]

We do not believe that either argument is particularly strong.

First, any long lease threshold for the new right is ultimately entirely arbitrary, as evidenced by the fact that the Government chose a different threshold from the one recommended by the Law Commission.

Secondly, there is a principled argument that we should trust leaseholders to make decisions based on what is right for them and their individual circumstances, rather than denying a broad category of leaseholders a new statutory right on the basis that Ministers know best what is in their interest—a viewpoint that we would have assumed those on the Conservative Benches would support.

As I put it to the Minister in Committee, there could be all sorts of reasons why someone with a lease shorter than 150 years might want to buy out only their ground rent, including simply that they are unable to afford the premium required to secure a 990-year lease under clauses 7 and 8. Denying them that right on the grounds that other leaseholders might advertently or inadvertently disadvantage themselves by using the new right to extinguish only their ground rent strikes us as overly paternalistic and misguided.

We remain of the view that there is a strong case for simply deleting the 150-year threshold entirely given that the “remaining years” test that applies is arbitrary and that the most common forms of lease are 90, 99 and 125 years. Amendment 8 would do so, thereby making the new right to replace rent with peppercorn rent available to all existing leaseholders. I commend it to the House.

Part 3 of the Bill contains a wide range of measures relating to the regulation of leasehold. We have tabled several amendments designed to strengthen the provisions in it. Arguably, the most important are amendment 10 and new clause 3, concerning litigation costs. Although we support the aim of scrapping the presumption that leaseholders will pay their freeholders’ legal costs when they have challenged poor practice, we believe that, in merely limiting the ability of landlords to do so, the Government are creating an incentive for freeholders to litigate in a way that is likely to erode the general presumption they are seeking to implement.

As we argued in Committee, a far more sensible approach would be to legislate for a general prohibition on claiming litigation costs from leaseholders, and then to provide for a limited number of defined exceptions to that general rule by means of regulations—for example, in cases in which the landlord is a leasehold-owned company, or in which the costs are, in the opinion of the tribunal, reasonably incurred for the benefit of the leaseholders or the proper management of the building. Taken together, amendment 10 and new clause 3 would provide for that approach by leaving out clause 35 and replacing it with a new clause that provides for a general prohibition on claiming legal costs from tenants, and for a power to specify classes of landlord who will be exempted from it. I commend them to the House.

Mr Deputy Speaker, we want to see a number of other changes made to the Bill to provide leaseholders with better protection in law and to pave the way for a commonhold future. To that end, we have tabled amendments and new clauses to, among other things: abolish the draconian rent charge remedies provided for by section 121 of the Law of Property Act 1925; provide for mandatory residents’ management companies in new blocks of flats; establish a right to manage regime for residential freeholders on private or mixed-use estates; bring forward legislative options to facilitate leaseholders in new blocks of flats being granted an automatic share of freehold; and regulate managing agents.

Of particular importance to us is the need to ensure that the Bill abolishes forfeiture and the windfall it provides to freeholders. As we argued in Committee, forfeiture is a wholly disproportionate and horrifically draconian mechanism for ensuring compliance with a lease agreement. Over the course of nearly a century, this House has taken intermittent steps to tighten the laws of forfeiture, yet its continued use and the chilling effect that results from its mere existence continues to put landlords in a nearly unassailable position of strength in disputes with leaseholders.

The Opposition are not suggesting for a moment that this House abolishes the right of forfeiture in relation to residential long leases and replaces it with nothing. There must be effective means of ensuring compliance with a lease agreement, and we are more than willing to work constructively with the Government to determine what alternative arrangements are needed to deal with breaches of covenant or unpaid arrears. But forfeiture operates to the prejudice of leaseholders; it cannot be justified, and we must use the Bill finally to do away with it. We believe there is broad consensus across the House for grasping the nettle and abolishing forfeiture, and new clause 5 would do so, and—notwithstanding the very positive noises that we heard from the Minister—I urge hon. Members from across the House to support it.

Finally, let me turn to the 100 Government amendments to the Bill that were tabled last week, 29 of which were submitted just before the deadline on Thursday. In doing so, I feel I must put on record once again the Opposition’s intense frustration at this Government’s continued practice of significantly amending legislation as it progresses through the House. The sheer volume and complexity of amendments that this Government now routinely table to their own legislation represents a departure from established practice and one that acts as a serious impediment to hon. Members effectively scrutinising legislation, and increases the risk that Acts of Parliament contain errors that subsequently need to be remedied.

The Government amendments that have been tabled for consideration today fall into three broad categories—namely, shared ownership, building safety and new leasehold houses. I will take each in turn, starting with shared ownership. Although I am increasingly personally of the view that there is a growing case—one that is reinforced by the treatment of shared ownership in the Bill—for primary legislation to address various issues arising from shared ownership as a tenure, Government amendments 24 and 29, which relate to it, are not contentious and we support them.

15:45
We welcome the Government’s decision to use the opportunity presented by the Bill to make a number of changes to the Building Safety Act 2022 to ensure it operates effectively, although the very fact that Ministers are having to completely overhaul arrangements that came into force less than two years ago—for example, replacing the regime for dealing with insolvent developers and orphaned buildings by means of new clauses 34 and 35—vindicates entirely the concerns the Opposition expressed back in 2022 about the way in which the then Building Safety Bill was overhauled at pace via hundreds of Government amendments tabled in the other place, which noble Lords had relatively little time to consider carefully or properly scrutinise.
I want to raise two issues of concern about the Government amendments relating to building safety. First, new clauses 30 and 31 expand the concept of a relevant defect to which the leaseholder protections in the Building Safety Act apply and which tribunals can order landlords to remediate. Although we obviously take no issue with amendments designed to provide further clarification on how the Act operates, I would be grateful if the Minister could tell us why the Government believe these new clauses are even necessary, given that the president and deputy president of the upper tribunal in the Olympic Village case ruled that the tribunal already has the power under the Act to order remedial works in respect of a relevant defect, where the works are designed to reduce the risk posed by that defect, not necessarily eliminate it completely. In addition, given that the Government are clearly willing to act retrospectively, I would be grateful if the Minister can tell us why they will not go further and take steps to guarantee that leaseholder protections under schedule 8 to the Act apply irrespective of when service charge demands were issued, thereby preventing the Court of Appeal from potentially overturning the November 2023 ruling of the upper tribunal to that effect.
The second issue concerns new clause 32, which expands the categories of costs that leaseholders can seek to recover by means of remediation contribution orders and will allow for the recovery of costs associated with professional expert services and any temporary accommodation. However, it will not allow leaseholders in buildings with fire safety defects to attempt to recover the significant costs associated with soaring buildings insurance premiums, which in many cases will continue to be levied after remediation works have completed. The Government are rightly trying to improve the situation in respect of insurance charges by means of clauses 32 and 33. Will the Minister tell us why they will not allow such costs to be recovered via an RCO?
Of course, not one of the eight Government amendments that relate to building safety resolves the underlying problems with the Government’s approach—namely, the detrimental impact of the decision to exclude certain categories of leaseholders and buildings from the protections that have been afforded to others under the 2022 Act. We therefore tabled new clauses 9 and 10, which would give the Secretary of State the power to bring non-qualifying leases and buildings respectively within the scope of the protections of the Act. I commend them to the House.
I turn lastly to new leasehold homes. The Government were rightly mocked in the aftermath of the Bill’s publication for claiming that it ended leaseholds on newly built houses in England and Wales, when it contained no such provision. On Thursday, they finally tabled amendments that appeared to make good on their promise. There was only one problem: their purported ban on new leasehold houses does not actually ban all new leasehold houses. Indeed, it is unlikely even to ban most of them, because new schedule 2 still allows new long residential leases of houses to be created in instances where a superior lease has been granted before 22 December 2017.
The Minister suggested in his opening remarks that the Government were thereby allowing the sale of new leasehold homes only in unusual circumstances, but they are introducing far from a limited exception. We literally have no idea how many undeveloped plots of land and properties within them might be subject to such superior leases, or how many could still be granted subject to agreements made under such terms—for example, where a developer has purchased a pre-2017 head lease on a site but has not built it out. Given that we know that developers routinely use intermediate leases both for financial purposes and to insulate themselves from various consumer rights and protections, the prevalence of such arrangements in the leasehold housing market is likely to be high. As such, although we understand the significance of the date in question as the moment when the policy was first announced, and appreciate the need to provide for a limited number of exceptions, such as National Trust properties, surely the Government realise that the exemptions provided for by new schedule 2 are likely to render the ban meaningless and will mean that new leasehold houses are still built in significant numbers.
I have no doubt that the other place will have much to say about the new provisions, but the Minister owes this House an explanation on precisely why the Government have potentially afforded developers a means to continue building new leasehold houses in significant numbers. I would be grateful if, in providing that explanation, he told the House why on earth leasehold retirement properties have also been exempted, given the almost uniformly detrimental impact of such arrangements on older people living in those properties.
This unambitious piece of legislation is a far cry from what millions of leaseholders were led to believe would be forthcoming given the extravagant promises made by successive Ministers over the past six years. They nevertheless recognise, as we do, that this limited Bill will provide them with some relief from the unjust and discriminatory practices that our archaic leasehold system facilitates. For that reason, they share our desire for it to receive Royal Assent as quickly as possible, but we owe it to them to deliver the most robust piece of legislation that we can deliver. We have a chance today to strengthen the Bill in a number of important respects, to rectify aspects of it that are problematic, and to improve it by incorporating a small number of targeted measures that will immediately empower leaseholders and improve their rights. I urge the House to come together to do so.
None Portrait Several hon. Members rose—
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Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Order. I am sure that everybody heard Madam Deputy Speaker’s request for brevity, as a number of Members wish to get in, and we have to accommodate everybody before 6 o’clock.

Peter Bottomley Portrait Sir Peter Bottomley (Worthing West) (Con)
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I agree with a large part of what the Opposition spokesperson, the hon. Member for Greenwich and Woolwich (Matthew Pennycook) said, and with nearly all of what my hon. Friend the Minister said. Where I disagree with the Opposition spokesperson is that I think the Bill is ambitious in what it is trying to achieve, although we would all like it to go further. It is quite remarkable that this is the first major bit of legislation to help leaseholders since 2002—although we have had the Building Safety Act 2022, the Fire Safety Act 2021 and other things, which did some things towards that.

It is remarkable how few people know much about the role of residential leaseholders. They own nothing but the right to live in a home for a period. I declare that I am a leaseholder. I have a flat in my constituency for which there have been no problems and for which the Bill will do neither harm nor good, and I also have another leasehold property. If I happened to gain from the measures, I would give the benefit to a good cause—I am not here for myself; I am here for those who have been suffering for years.

I wish I could be at the Westminster Hall debate on BBC impartiality, but it conflicts with this debate. It is now 20 years since the peace activist and photographer Tom Hurndall was shot by a sniper in Rafah. The subsequent nine months of inquiry by the Israel Defence Forces were shocking. However, I will leave that to the other debate.

On leasehold reform, I believe that we have opportunities—both in the House of Commons and, perhaps more so in the House of Lords—to make significant progress. My hon. Friend the Minister will point out to me the consultation on permitted development rights that started on 13 February. Towards the end of the consultation document, paragraphs 43,44 and 45 appear under the heading:

“Construction of new dwellinghouses on a freestanding block of flats”.

That is a reference to the inexplicable and disastrous Town and Country Planning (Permitted Development and Miscellaneous Amendments) (England) (Coronavirus) Regulations 2020—SI 2020 No. 632.

Those emergency covid regulations, accompanied by an economic assessment of which, to put it bluntly, I would have been ashamed were I a better economist, allowed owners, landlords and freeholders of certain blocks to put an extra one or two storeys on top without consulting the existing leaseholders at all. How any Government—let alone one I support—could have done that is beyond my comprehension. There had been a consultation some years before, and the general consensus was, “Don’t do it,” so why has it been done? I hope that people will look at the consultation, which is open until April, answer questions 27 and 28, and give explanations of their own experiences.

A developer tried to put extra floors on top of the St Andrews Gardens building in my constituency. That was turned down flat by the local authority, but its decision was overturned on appeal by the Government inspector. The developer then tried again, advertising for sale flats that do not exist, even though nobody wants them as they will cause significant harm.

My new clause 25, which I am indebted to Liam Spender of St David’s Square in E14 for drafting, says that the landlord or developer will have to pay compensation to leaseholders if the effects on them are harmful. The Minister’s legal advisers may say that the clause is not perfectly drafted, although I think it is pretty good. Even if he cannot accept it now, will he go through the replies to the consultation, have a talk with Members of all parties who represent those affected, and consider whether the Government can bring forward in the House of Lords proposals that would undo the effect of 2020/632 and implement some of the preferred responses to the consultation, to which he may not have time to refer in his winding up?

15:59
Clive Betts Portrait Mr Betts
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It is five years since we produced the Select Committee report on leasehold reform. It came after long years of campaigning by the all-party parliamentary group on leasehold and commonhold reform, and I particularly commend the efforts of the Father of the House, the hon. Member for Worthing West (Sir Peter Bottomley), who has just spoken; my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders); and our good friend Jim Fitzpatrick, who is no longer in this House, but who certainly made a major contribution to that. To be fair to the Government, it is good that we have made progress on many of the items in the Select Committee report. The caveat, of course, is that we probably have not gone as far as we would have wanted or as quickly as we would have expected.

When the Committee met, I remember going into a room with about 100 leaseholders from all over the country—the hon. Member for Harrow East (Bob Blackman), who was in his place a few minutes ago, was there as well—and hearing horror stories of people being ripped off in the sale of leasehold homes by developers. They were told that there was no difference between a leasehold property and a freehold property. They were told that by the solicitors who worked for them, because the solicitors were recommended by the developers. That was together with the free carpets in the living room that came as a bribe—that is what it was. Leaseholders were not aware that they would have to pay £300 to get a doorbell fitted if they wanted one because they had to get permission, or £3,000 for a conservatory, or whatever fees the freeholder chose.

Leaseholders were told that they could, within a couple of years, buy the freehold at a fixed price from the same developer. The problem, of course, was that by the time a leaseholder came to inquire about purchasing the freehold, the freehold had been sold to another party. There are lots of examples of that, which is why I have an amendment—new clause 39—that I want to push to a vote, although I hope the Minister will accept it. It is a simple amendment to say that before the sale of a freehold, the right of first refusal has to go to the existing leaseholder. That right already exists for leaseholders in flats, but not for leaseholders in houses. Why is that? That really cannot be justified or even explained.

Will the Minister accept just that one simple amendment? It would give leaseholders that right, and stop freeholders —we know that this happens—who want to evade the legislation, including the improvements the Government are bringing in, passing a property around from one organisation to a subsidiary to a third party, with a view to evading the legislation, so that leaseholders never know where to go to get the relevant freeholder to agree to the sale.

Matt Rodda Portrait Matt Rodda
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My hon. Friend is making an excellent speech. Does he agree that part of the problem is that some of the freeholders are based overseas, and it is extremely difficult for leaseholders to track them down? This is an ongoing issue that I hope the Government will look into.

Clive Betts Portrait Mr Betts
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Absolutely. I hope the Minister will have a look at the whole issue of freeholders who will not respond. That certainly applies to many who are overseas, with whom it is very difficult to get in touch.

I will not press new clause 40 to the vote, but the purpose of it is to say to the Minister that the default answer cannot be that the leaseholder can always go to a tribunal. Most leaseholders are simply ordinary residents trying to get on with their lives, who think it ought to be fairly easy to put in a request, get a calculation done and buy their freehold. They are not ready for these organisations, with all their lawyers and surveyors, that want to evade this and try to hide away, in some cases overseas, so that they cannot be contacted.

Can the Minister look at that issue? I know he is aware of it, because we share the same problem with Coppen Estates. There are others that are based overseas, but this one is based in a semi-boarded-up shopfront with a letterbox that never seems to be opened. That is the sort of company we are dealing with. They are small organisations that make a living out of charging ground rents from leaseholders, who cannot exercise their enfranchisement because of the attitude and evasion of the freeholders concerned. I hope that the Minister will have another look at that issue.

The other amendments I have tabled are about having professional qualifications and some form of regulation of property managers. The Government have legislated to say that the managers of social housing will need professional qualifications in future, but what is the difference between a manager of social housing and a property manager of leasehold blocks? In some ways, there may be greater complications in trying to manage a multitude of different leaseholders than people who have secure tenancies in a council or housing association block of flats. What is the difference?

Why will the Government not recognise that there are some good property managers who are well qualified, experienced and can be held to account, but others who are not like that? Indeed, some are put in place for that purpose: they are cheap, they do not have experience or qualifications, and they provide another way of avoiding the restrictions and rules that are rightly put on the management of property. They do not bother with proper service charge information or a proper list of charges for permission fees. I accept that the Government have tried to improve that, but in the end such improvements will only work if the individual or organisation managing the property does so in a proper way. Will the Minister look at those issues? What is the rationale? Why is there resistance to ensuring that people doing a serious and important job as property managers are qualified to do it and properly held to account through regulation?

George Eustice Portrait George Eustice (Camborne and Redruth) (Con)
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Let me begin by declaring my interest as an adviser to the HSPG group, which among other things is a registered provider of social housing.

I rise to speak to new clause 68, which is based on a specific challenge that I have encountered in my constituency and that affects residents in more than 70 homes spread across three locations in the town of Hayle and the village of Mount Hawke. The experience of those cases exposes a potential gap in the Bill and in policy on the issue of shared ownership. The Bill deals at some length with standard leasehold agreements and the problems of extortionate ground rents, as well as with some of the issues around service charges and management companies with which we are familiar. However, in the early 2000s some agreements were put together that were technically leasehold agreements but that masqueraded as shared ownership agreements, even though those shared ownership agreements do not comply with the standards of modern shared ownership agreements.

The agreements I have encountered contain a number of defects, and I would like the Minister’s view on them. The first is that the freehold on those homes is not held by a registered provider. It was initially owned by the developer who built the sites, but it has changed hands twice. In a way that is familiar to many Members, the freehold has ended up in the hands of an offshore investment vehicle based in the British Virgin Islands, and with a company called Rockwell, which has not been easy for residents to deal with over the years.

The second major defect in the agreements is that there is no provision for staircasing or enfranchisement of the leaseholder’s share of the property. Residents typically own between 58% and 72% of their property, but their stake is fixed and cannot be extended. There is no right to extend under the agreement. The agreements are under a 990-year lease and there is no ability to extend that, although I appreciate it is a long-term lease.

The third defect is that even if residents could enfranchise and extend or staircase their ownership within the agreement, a section 106 covenant means that the properties must be sold to a local connection with a significant discount on market value. The way that has been worded in the agreement means that it is simply not worth the while of residents to increase their share, since there would be no value to the increased share that they would have.

Finally, there was something described as ground rent, although in practice a big chunk of that was effectively a rent on the shared ownership portion. The ground rent was initially around £20 per week, but that was linked to the retail price index on an escalating model. It has now got close to £2,000 per year for those residents, and it is still increasing rapidly.

All of those defects in that leasehold tenure arrangement or shared ownership arrangement—indeed, it appears to be neither one nor the other—mean that all of the properties have been judged unmortgageable by lenders, and that means the residents are trapped. They cannot sell their properties because no one can get a mortgage to buy them. These are people in my constituency who had a local connection. Typically, they are on modest incomes. These agreements and these homes were sold to them as a way to get a foot on the housing ladder, and for those residents it has transpired to be a complete nightmare.

I will say a word about planning and pay tribute to Penwith District Council, as it was then, and Cornwall Council. Planning was granted between 2004 and 2006, and the local planning authorities did their due diligence. They could see that this shared ownership model was defective, and they refused planning permission on all three sites on that basis. The Minister might ask how these homes were then built and sold under the arrangement, but I suspect he can predict the answer, which is that they were approved at appeal by the Planning Inspectorate, an agency within his own Department. The situation that my constituents face has been caused principally by a chronic failure of due diligence by the Planning Inspectorate, as is often the case with such issues.

In conclusion, my new clause 68 seeks to address a gap in the Bill and to give the Government the opportunity to atone for the mistakes of the Planning Inspectorate. It deals explicitly with shared ownership agreements and would create a statutory right to staircase ownership and put a cap on the rent of the freeholders’ portion of the home. I do not intend to press new clause 28 to a Division this evening, but I hope that the Government will consider the matter closely. I would like to meet the Minister or the Secretary of State and share with them and their officials a copy of the shared ownership agreement that my constituents are suffering under so much, with a view to seeing whether the Government might consider further changes at later stages of the Bill’s consideration to address a gap in it. Given that the Planning Inspectorate has been somewhat culpable in creating this problem for my constituents, I hope that the Government will seek to do that.

I support the general thrust of the Bill in all its attempts to deal with management charges, service charges and ground rents, but I hope that the Minister will agree to meet me to discuss some of these remaining issues.

Barry Gardiner Portrait Barry Gardiner
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It was 1 December 1998. I had been an MP for one year and seven months to the day, and I was chained to the railings of College Green by 200 cheering leaseholders. Thankfully, they were friendly. It was to illustrate that leaseholders felt that they are were prison. Those were the days before social media, and it was a photo op. The BBC ran the headline, “Leaseholders demand more control”. They still do.

Since then, we have had the Commonhold and Leasehold Reform Act 2022, which was an attempt to resolve some of the problems, such as forfeiture of a person’s home for a failure to pay a small service charge, the ground rent grazers charging money for no service and moneys not being held in trust in sinking funds. It is strange that after 25 years, these should be the very areas that yet another Bill on leasehold reform is pretending and failing to solve.

I say “failing”, because that is the reason I rise to support new clause 5, tabled by my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook). It is ridiculous that a landlord can take away a person’s home worth hundreds of thousands of pounds for a simple failure to pay a minor service charge amounting to a couple of hundred pounds and where there is a dispute over whether the service was even provided. That is why I tabled new clause 16 about moneys being held in trust, which would implement a provision of the 2002 Act that has never been brought into force. We heard in Committee that the policy had strong support from stakeholders, including spokespeople for the Property Institute and the Leasehold Advisory Service. Even the British Property Federation has campaigned for this provision of the 2002 Act to come into force, yet it is not here in the Bill. Of course, 2002 was a time when nobody had even predicted the new rentier practices that freeholders and developers have since invented to extract money from homeowners for the privilege of living in their own homes: the scandals of leasehold houses; the repeated doublings of ground rents; and the inclusion of commercial areas and shared services in any development to stop any hope of residents exercising their right to manage.

16:15
New clause 17 would ensure that leaseholders in mixed-use buildings could take advantage of the Government’s policies to lift the 25% non-residential premises cap to 50%, and to have mandatory leasebacks on expensive commercial premises. Unless that new clause—or a version of it—is adopted, few leaseholders in mixed-use buildings will be able collectively to enfranchise under the Bill, which would be a travesty. If the Government do not decisively address the structural dependency rules not only for enfranchisement but for right to manage, property developers will simply sidestep the new 50% non-residential premises limit by designing mixed-use blocks with shared services, connecting flats to commercial premises by an umbilical cord to deny leaseholders their rights. Indeed, articles from leading law firms explain how developers can build sites to ensure that blocks can never be eligible for collective enfranchisement and right to manage.
New clause 18 would provide the appropriate tribunal with the discretion to dispense with certain procedural requirements where it is satisfied that is reasonable to do. It is designed to deal with cases where a landlord attempts to frustrate a right to manage claim by procedural means. I am grateful to Mark Loveday of Tanfield Chambers —perhaps the leading authority on service charges and right to manage practice in Britain—for his help in drafting the new clause.
By Mr Loveday’s count, of the Law Commission’s 101 recommendations on right to manage, fewer than five have been specifically adopted by the Government in the Bill. A whole industry has emerged since Labour introduced the 2002 Act, which brought right to manage into existence, whereby freeholders seek to find minor technical errors by leaseholders to scupper genuine—and otherwise valid—right to manage claims. Since right to manage is a no-fault regime, Parliament never intended for it to be an invitation to litigation by deep-pocketed freeholders and their army of lawyers. As Mr Loveday notes, the 2002 Act’s right to manage does have “traps for the unwary”, and
“the single most important problem with the right to manage, namely its procedural complexity”,
with
“these problems…famous among property lawyers”,
having
“notoriously led to litigation on a truly industrial scale.”
I urge the Minister to look again at new clause 18 in the other place and adopt such a pragmatic amendment, which would enable a tribunal to waive minor procedural mistakes by leaseholders where it deems that just and convenient.
Since 2002, we have also had the Grenfell Tower tragedy, which has exposed the rotten culture of residential construction in this country. Members should wonder why it is that over 11,000 tower blocks are reckoned to have fire safety defects, no fire-stopping in building voids, a lack of compartmentation, combustible cladding and inadequate fire doors that leave the residents at the mercy of landlords, who literally go to the other side of the world to avoid having to pay for remediation.
Residents are subject to unfair service charges and find themselves prisoners trapped in their own homes, unable to sell up and move on with their lives. This unjust system leeches off ordinary people and shames us. This is the only remaining country in the world where residential leasehold is the default tenure for apartment living. A person’s home should not be a source of misery to them and one of unjust enrichment to others.
We are talking about the lives of 5 million people who need to be freed from their feudal burden. That brings me to new clause 19, which seeks to restore the intent of the section 20 major works regime in the 2002 Act to what it was prior to the Daejan ruling. The Minister was good enough in Committee to confess that he was unaware of the ruling and said that he would study it with his officials. Yesterday, I received a letter from him on some of the points I raised in Committee. He admitted that since Daejan,
“the vast majority of applications for dispensation are brought by the landlord.”
However, he went on to say:
“regardless of which party makes the application, the landlord will have to persuade the tribunal that dispensation should be granted, and it will be for the leaseholders to evidence that they have suffered prejudice”.
He said:
“I recognise your concerns that leaseholders have to evidence prejudice, but only they are able to do so. Once that threshold has been met, the burden is on the landlord to rebut the impact the prejudice has had on the leaseholders.”
He concluded:
“the consequence is that an application to the tribunal is not merely rubber stamping the landlord’s request.”
I fundamentally disagree.
Sue Bright, professor of land law at Oxford University, has been conducting research into this area, and argues as follows:
“The importance attached to the consultation requirements is evidenced by the fact that if the landlord fails to conduct the statutory consultation it is prevented (in the current form of the consultation provisions) from recovering more than £250 from an individual tenant in relation to those works. Seemingly, this provides a very strong incentive to comply with the requirements but the protection offered was seriously weakened by the Supreme Court decision in Daejan Investment Properties Ltd v Benson. Lord Neuberger said that the consultation requirements are a means to an end rather than an end in themselves. He sees the provisions as playing a supporting role in achieving (only) the end goal of consumer protection secured by section 19 of the Landlord and Tenant Act 1985, that is, protecting tenants from unreasonable service charges. An alternative vision, supported by the dissenting judgment of Lord Wilson, acknowledges that consultation is an important end in itself. This recognises that consultation has an inherent value. Further it is in keeping both with the tenor of the new building safety regime that promotes fuller engagement with leaseholders and residents, and the thrust of contemporary government policy towards providing consumer protection to leaseholders.”
Her findings are grim for supporters of leaseholders and a sense of fair play. She says:
“In all of the fire safety cases reviewed for this article dispensation was granted, at least in part, and, with a few exceptions, the overwhelming majority were granted unconditionally even when the FTT”—
the first-tier tribunal—
“was critical of the way in which the applicant had managed things.”
I also thank Dr Howard Soper, another academic who helped draft the amendment, who was appalled by the number of successful dispensations won by freeholders that he found in his study of first-tier tribunal decisions.
I urge the Minister to think again, because this cuts to one of the most fundamental injustices that we have seen in leasehold apartments in recent years—those individuals trapped in buildings with fire safety defects. This Bill is the first set of reforms to the leasehold tenure in 22 years. The test that I set the then Labour Administration was a simple one. I said:
“What we want is for leaseholders to be able to take control over their own lives without landlords being able to say when you have a new roof, how much you pay for it, who does it, when it’s going to happen. You should be able to decide that for yourself in your own home.”
The proposals in front of us today do not liberate leaseholders. The Secretary of State himself has said:
“I don’t believe leasehold is fair in any way. It is an outdated feudal system that needs to go. And we need to move to a better system and to liberate people from it.”
He was right. This Bill does not do that. It will be left to a future Labour Government.
Neil O'Brien Portrait Neil O'Brien
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There are a lot of good things in this Bill. I give credit to the Minister and previous Ministers for introducing it, and my hon. Friend the Member for North East Bedfordshire (Richard Fuller), who has played a massive role in bringing it to the House. It effectively bans the sale of new leasehold houses through new clause 42 that we have been discussing, extends leaseholders’ rights in various ways and increases transparency over service charges.

However, there are two big things that still need to be strengthened in the Bill, which we have spoken about in Committee and on Report. The first is to end the fleecehold estate model. New clauses 1, 2, 6 and 7 are relevant to that. I was glad to hear the Minister, who understands this issue, talking about going away and considering this further, but for the benefit of the Whips, what my constituents want is not for the Minister to consider it further but to ride in like a new sheriff on a white horse and sort out the fraudsters, scam artists and various cheats who are making their lives a misery. That is what we want on the Government Benches.

The fleecehold estate scandal is just like the Post Office scandal, except that it affects more people. In considering the Post Office scandal, many people have asked, “How could we not have known about this injustice? It ruined so many people’s lives for so long, yet nothing was done.” It is the same in this situation.

My constituency has lots of these new estates. Often, the first people know of the problem is when they receive a massive bill that they did not know was coming and that was not mentioned in the notes they were given when they bought the house. And, funnily enough, it was not drawn to their attention by the lawyers of the housebuilder, whose services they are often encouraged to use. Some of these bills are a really scary size and often escalate quickly over time. A huge number of people—more and more every day—are now affected. About 20,000 estates are affected, involving between 1 million and 1.5 million homeowners and potentially 3 million or 4 million people. According to the Competition and Markets Authority, over the past five years 80% of the freehold properties built by the 11 biggest builders have used this fleecehold model.

A lot of my residents describe it as being like paying a second council tax, except that if a local councillor is not doing a good job, they can be kicked out, but it is not possible to do that to a fleecehold landlord, no matter how badly they perform. New clause 6 would address that, and I hope that the Government will address it as the Bill progresses.

I think that everyone now knows how the fleecehold scam works. Back in the good old days, the builder would build a new estate, make sure that all the roads and so on were up to spec and pay a section 106 charge. The council would then take it over and run it, and if there was a problem, people could contact their local councillor. Under the fleecehold model, it is not so simple. In effect, there is collusion between the council and the developer. The developer agrees to hand over to a different company—it might own that company itself or hand it over to the residents—the running of many parts of the estate, be it the roads, the verges or other facilities. That means that the developer pays less in section 106, the council does not have to maintain the road and effectively they split the profits while the residents and the new tenants get the new, massive bill.

It is extremely inefficient to run things in that way in the real economy. Usually, the council goes from road to road with its verge-cutting lawnmowers—it uses one simple system. On one fleecehold estate, however, a guy drives down from Oldham, which is more than two hours away, mows a tiny bit of lawn and then leaves. It is economic madness. A lot of the charges that people are hit with involve opaque management fees for nothing. It is inefficient to run things in this way in the real world. There is a ticking time bomb here. In addition to the number of people affected by the fleecehold estates scandal, the second problem is that when things are not adopted, they do not go through a gateway where we can check whether they are up to scratch. I know from the experience of my constituency that a lot of things are done badly and then a huge bill will land on the people on these poor estates to sort out the problems in the future.

We heard all about this in Committee. I pay particular tribute to Harry Scoffin, the work of the group Free Leaseholders and the residents group HORNET—the Home Owners Rights Network. They all made a powerful case to abolish the fleecehold estates model entirely. As one witness told the Committee:

“This is my property. It is my hard-earned future…normal homebuyers are not qualified to manage estates. If we are given the right to manage, if we are looking at a development of over 100 homes, it is really hard to get in touch with 100 people who will agree and be on the same page. It is not workable.”––[Official Report, Leasehold and Freehold Reform Public Bill Committee, 16 January 2024; c. 54-55, Q133-134.]

I will give a few examples from my constituency. Karen is a brilliant lady who does lots of work for her community. She moved into a new Barratt home because she was bored of doing loads of DIY every weekend on her old home. She now finds herself spending massive amounts of time fighting a fleecehold company called FirstPort, a company so notorious that a national action group has been set up against it—the details can be found on Facebook—whose work I commend.

Karen explains:

“Barratt’s encouraged us to use their nominated conveyance solicitor for which in return we got £500 towards our legal bill. We were fools to do this, but money was tight…FirstPort didn’t do or arrange any grass cutting or anything by way of a service in the first two years.”

At first the bill was £35, and this year it will be £74. Karen continues:

“Our bill for the year includes: Property Damage & Public Liability Insurance…Terrorism Insurance…Grounds Maintenance…General Maintenance…FirstPort’s Management Fees”—

the most expensive item—

“Audit/External Accountant’s Certificate and Fee…General Reserve…Health and Safety Risk Assessment…This comes to £74.64 per house.”

She says:

“In the months of December, January and February each year I must spend more than a couple of days a week working on this. It’s like having a part time job. I didn’t move house to face the possibility of having to be a director of a residents’ ‘Right to Manage’ company. I want adoption…by the local council…as it used to be.”

She is right. Members may be asking, “Why are residents of this estate having to pay terrorism insurance for a fence?” That is a very good question, to which I do not know the answer.

Let me introduce Members to James—a brilliant, hard-working constituent of mine, who has had to do tons of work on the estate where he lives. He says:

“Councils should be adopting new estates”.

He says that he has done

“about 50 days’ work…over the first couple of years. We moved in in 2018 and it wasn’t really sorted until 2021—in fact it is still going on.

Had I not been proactive we would have ended up being short-changed.”

16:30
Residents of Hursley Park in my constituency have had no end of problems with their developer, who is currently refusing even to meet them to discuss some of their problems. Paths have been done on the cheap and have become a quagmire, and benches have not been looked after properly. Fortunately, owing to a legal error on the developer’s part, the residents have managed to gain control of the residents management committee, but after three years of effort they are still trying to get the developer to make good the problems so that they do not face years of bills. They are still fighting. Many of them do not want to run their own estate, and they should not have had to do so.
My last example relates to Farndon Fields—an estate that has been built over the last decade by a multiplicity of developers including Redrow and Avant. Courtyards and shared spaces in the development were not adopted by the council. Astonishingly, each tiny courtyard was run as its own financial entity and was subsequently managed by a company called Chamonix, which turned out to be extraordinarily difficult to contact. Each year the residents were forced to pay “maintenance” charges for a couple of minutes’ work over a whole year. One of my constituents wrote to me:
“On one occasion I was continually asked to pay an invoice which I had previously paid and despite sending proof of payment two or three times, I was told court action would be taken. I replied welcoming this and advising them that I would counterclaim for stress and my time. I then received an apology letter from the financial director…I am now fighting a charge for work…for £367”.
Thankfully, residents managed to wrest back control from the company after a huge amount of effort; that was just as well, because Chamonix has now been bought out by FirstPort, so they have had a lucky bullet.
I could go on and on. From charging residents for “terrorism insurance” for a fence to ripping out newly planted trees to charging residents for work that never happened, the absurdity of the fleecehold scam is apparent to everyone who has encountered it. However, there are a number of ways in which we could solve the problem—and while we need to solve it for existing residents, which will involve some sort of right to manage and a much clearer ability to gain control of one’s own estate, we also need to prevent this model from being used in the future. We could take up the brilliant proposal of my hon. Friend the Member for North East Bedfordshire to prevent management companies from taking on services that are normally provided by local councils. We could also take up the suggestion made by Councillor Shaun Gunner, the leader of the Conservative group on Arun District Council, to change the Government’s guidance on the use of planning conditions, which currently states:
“Conditions cannot require that land is formally given up (or ceded) to other parties”.
We could, perhaps, change the existing guidance to make it difficult for people to go down the fleecehold route. Whatever we do, however, we have to end this scammy model, which is bringing misery to the lives of my constituents.
Another thing that we must do is end forfeiture, as is suggested in new clause 5 and as the Minister has suggested today: I am pleased that he is talking about taking action. Margaret Thatcher told the Conservative party conference in 1982:
“There is no prouder word in our history than ‘freeholder’.”
She was right, and the ideal of property ownership has a long history on this side of the House, but a great many people who are buying freehold properties are actually being conned. It turns out that they do not really own their properties at all, and that if they fall even a little behind on their bills or refuse to pay some scammy fleecehold company a small amount of money, they risk not just being made to repay, and perhaps paying the costs as well, but losing their houses. It is that threat that enables the fleecehold cowboys to get away with it. They are terrorising people by threatening them with the loss of their homes, and we must put a stop to it. As Mrs Thatcher said in her final book,
““Everyone involved in the country’s economic life has to be protected against extortion and corruption.”
That is exactly what fleecehold is, and we have to end it.
The final small thing that we must do in the Bill is to start the “turnaway”—I use that word advisedly—from ground rents. Ground rents are not payments made in return for any service; the historical rationale for their existence is totally obsolete. A 2018 survey found that half the people who faced these escalating bills did not realise that they would be applied when they bought their properties, and they cause huge problems with remortgaging. I understand the problems and challenges of having to move away gradually from this model, but we should start to turn the supertanker now. We are talking about pure economic rents and pure rentiers; it is a totally unfair system. We might have to move slowly, but we have to start the movement away from these ground rent grazers, because this is an unfair system with no rationale.
I know that the Minister understands the issues and I encourage him on all these issues to be brave and sort out the problems. There has been no legislation since 2002. This is our one chance, so let’s really go for it: let us have Conservative principles, and end these massive rip-offs.
Lyn Brown Portrait Ms Lyn Brown (West Ham) (Lab)
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I rise to speak to new clause 3 and amendments 12 to 14. A huge number of new builds have been built within my constituency boundaries over the last months, the vast majority of which have been flatted. There have been numerous difficulties over the years, many of which I will not be able to cover today due to the time limit and your exhortation, Mr Deputy Speaker, to stay within seven to eight minutes; as the first woman to speak, I intend to do so.

I will start with Legacy Wharf in Stratford, where leaseholders have been stuck with a succession of management companies that fail them time after time. Under the former management company, shoddy—and probably overpriced—repairs were made by favoured companies at leaseholders’ expense over and over again, rather than any investment in long-term, high-quality maintenance. Residents were hugely suspicious about possible kickbacks from service firms to the management company and the use of companies under the management company’s ownership, rather than it seeking the best price and the best quality of service.

Thankfully, that management company has changed, but many problems remain. Residents have just been handed bills for 18 months of energy use all at once due to the management company’s mistakes. Service charges and insurance bills rocket year after year, with residents wondering what on earth has been done with their money: they have poor landscaping, broken lifts and inadequate fire doors; the security of communal areas is rubbish; residents have lost access to hot water and the boilers have not been serviced for as long as four years. Those are all serious concerns raised about just one building. Ultimately, when accountability is sought, there is absolutely no way to get a prompt response. When there is such as constant deficit of transparency, it inevitably looks like a way to cover up wrongdoing, mismanagement or incompetence.

I strongly welcome the provisions in this Bill on service charge transparency, and I add my support for the amendments tabled in the name of my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook). Amendments 12 and 13 would surely provide additional support to my constituents, because they would mean that leaseholders would not have to pay service charges unless basic transparency and accountability were in place. Amendment 14 would enable a maximum cost to be set for the provision of information to leaseholders, preventing the abuse of such costs to effectively obstruct accountability—it ain’t on.

Leaseholders in every part of West Ham have faced massive difficulties getting accountability. I am reminded of events in the Hallsville Quarter development in Canning Town, where residents in several buildings had to leave their homes after a sewage ingress and power cuts. The two management companies responded in totally different ways: Grainger offered £50 a day in subsistence payments, while FirstPort initially offered just £15 a day and only raised it to £25 after enormous pressure. FirstPort had to be chased by me for multiple basic actions, and responded so poorly to residents whose lives had been turned upside down by problems that were absolutely not of their making.

Next, I would like to raise the continuing concerns of the residents of Chobham Manor about their estate charge, which has increased rapidly over recent years. The charge is supposed to help pay for the upkeep of the Queen Elizabeth Olympic Park, but many Chobham residents believe that it bears no relation at all to the amenities available to residents near the park. Despite my support, they have found it almost impossible to scrutinise the budgets they are paying for and to make sure that they ain’t paying through the nose for poor value for money. Chobham Manor residents frankly do not see what they are getting from the park in exchange for this charge, given that they are the only local residents who pay for it. I know that they will be grateful for an explanation of how they might benefit from the changes that the Bill will make.

I also want to mention, yet again, the continuing limbo of many residents of East Village in Stratford. Leaseholders there have lived under serious financial threat for well over four years now. The remediation needed to make their homes safe is still being held up because this Government’s previous legislation left the issue open to litigation. How can my constituents be reassured that this Bill goes further? The Secretary of State himself committed to using his planning powers to call in proposals submitted by irresponsible developers. I have to ask: will he make good on that promise and target those who are continually refusing to act on fire safety and leaving leaseholders on the hook?

In a final case from West Ham, diligent and determined leaseholders have successfully taken managing agents or freeholders to the tribunal for their dire failings. I am sorry to tell the House that these failings were across the board, including rat infestations, lack of insulation causing skyrocketing energy bills, no transparency on the huge service charges, building safety problems and a complete lack of accountability. Surely it should not have come to this.

We should not be depending on individual leaseholders to battle their way through obscure systems for their plight to get the attention it needs. MPs should not have to make dozens of detailed representations over and over again. It could not be clearer who has the power in these disputes, and in so many cases leaseholders are still paying the price for a system that is absolutely broken. Sadly, the legacy of years of failure to act creates understandable scepticism that change will come now, so I want to hear from the Minister today that he believes that the Bill will finally end this injustice.

Andrew Rosindell Portrait Andrew Rosindell (Romford) (Con)
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It is a pleasure to follow the hon. Member for West Ham (Ms Brown). We share a similar part of the world: Essex and the east of London. In Romford, just as in West Ham and the London boroughs to the east of the capital, we have seen a huge increase in the number of flats and high-rise blocks being built over the last 20 years. Havering is a town and country borough and we have not had many flats in the past, but suddenly we are seeing huge numbers of that kind of accommodation being built. This brings huge numbers of problems with it, including what we are debating today.

I thank the Minister for bringing this Bill forward. I hope that it will deal with many of the issues that colleagues across the House have raised today, because they are very real. I sense that there is consensus on both sides of the House that serious action needs to be taken, because this can really destroy people’s lives and ruin them; they have saved to buy a property and they have a leasehold, yet they are fleeced by sharks and managing agents who pile on the costs, and by armies of lawyers who make their lives miserable and threaten them with losing their property all together. This is not right for the people we all represent.

I am now dealing with these cases in Romford on a daily basis. The hon. Lady mentioned many of the problems in West Ham, and I have examples in the Steelway apartments in the centre of Romford. I visited those apartments only a few weeks ago and saw the problems that people there are facing. They are failing to get responses from the management agents and those responsible, they are paying money for no service, and they are being ripped off by management agents who are not doing the job they are paid to do. I went to Rubicon Court, a fairly new development built only a few years ago, and was shocked—absolutely flabbergasted —to see how badly the residents are being looked after. The service they are paying for has completely failed. I saw mould, rats, rubbish and CCTV cameras that do not work. That is not acceptable and, when the Bill is passed into law, I hope the Minister will ensure that it is effective. It is no good passing legislation unless it is effective and comes into force quickly.

16:45
I have concerns about the speed with which this legislation will be enacted. People are suffering and living in terrible conditions, and they are spending huge sums from their savings to deal with these problems. Will the Minister assure the House that there will be an effective way to implement the Bill quickly? Will he also consider the points that many Members have raised about those who could lose their property? What a horrific prospect it is for people who have saved to buy their leasehold that, because of the issues we have discussed, they are bullied and threatened with losing the property they have worked so hard to purchase.
There are so many issues, and I hope the Minister will take on board everything that has been said today. This is a cross-party issue, and we want the best for our constituents who live in these properties and whose lives are made very difficult by the current system. I hope this Bill will improve the lives of all our constituents, and the Minister will have my full support in anything further he can do to ensure that people in Romford, and in every constituency represented here today, are able to live better lives. People should not wake up with the feeling that everything they have saved for their future is being lost because of deficient legislation and a failure to enforce the law.
I have spent a lot of time visiting Romford residents in recent months, and I visited many of these places. I intend to go back because, if there is one thing I have learned about being a Member of Parliament, it is that we are here to serve the people we represent. I am very proud to serve the good people of Romford.
Janet Daby Portrait Janet Daby (Lewisham East) (Lab)
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I can see that, across the Chamber, there is strong concern for leaseholders who are caught up in very difficult situations. I will first speak to new clause 67, which I tabled after a case came to my attention late last year. I will then speak in support of new clause 5 and amendments 4, 5 and 8 tabled by the official Opposition. These amendments relate to issues that have not been properly addressed by the Government, including forfeiture, the right to vary ground rent to a peppercorn, and deferment rates.

My motivation for tabling new clause 67 stems from what has happened to residents of Lee Court, a purpose-built art deco mansion block in my constituency dating back to the early 1930s. Many will remember the cold snap at the start of the year, when temperatures went below zero and Arctic winds swept across the country. Until mid-January, residents of Lee Court had not had any heating all winter. Furthermore, they did not have access to hot water for weeks and, prior to that, hot water provision was very patchy. This has seriously impacted many vulnerable residents, including the elderly, young families, people with medical conditions and many others.

Leaseholders at Lee Court repeatedly raised these issues with Drivers & Norris, the block’s former managing agent, and Grandpex, the building’s freeholder that has ultimate responsibility for the central heating system, yet little progress was made until it came to my attention and the attention of the national media. The residents’ plight included: a neglected communal area; a door leading to the roof that was hanging off its hinges; broken windows; exposed openings for rodents; weeds and plants growing through the drains; roof leaks; damp, mould and rot in communal areas; and the lack of heating and hot water that I have already mentioned.

Even though my constituents have now taken on the building maintenance and appointed a new managing agent, this situation illustrates the difficulty for leaseholders in securing recourse from freeholders who have responsibility for central heating and other maintenance issues. As a result, my new clause 67 seeks to open up a discussion on how to ensure that such situations never happen again to residents. It would require the Secretary of State to commission an independent evaluation on holding freeholders financially liable for long-lasting central communal heating failures, where the freeholder has a responsibility for this upkeep.

It is important for the Government to know that I am not asking for them to impose measures straightaway, but rather that I want them to pay closer attention to the problem at hand via an independent evaluation. There is clearly something wrong when vulnerable residents are left without heating for months on end despite raising their concerns with the managing agent. The only way they seem to be heard is by going to the media, and that is not acceptable. Residents’ health and wellbeing needs were put at risk by the failure to restore Lee Court’s central heating. The Government have a duty to look at how we can rectify this situation, so that it never happens again. Will the Minister say whether he would like to strengthen the voice of leaseholders? Leaseholders would like that—they need it.

More widely, this overdue Bill is welcome, but the Government’s planned reforms do not go far enough. This is why I particularly support new clause 5 which would abolish the right of forfeiture in respect of residential long leases where the leaseholder is in breach of covenant. I have heard the Minister say that the Government are working on this and will be looking at the issue, but the Law Commission proposed a repeal in 2006 and there has been no action to progress this for some 18 years.

Additionally, amendments 4 and 5, on deferment rates, are very important, because during a housing and cost of living crisis, with many families struggling to get by, it is important for leaseholders to acquire their freehold or extend their lease at the lowest possible cost.

Lastly, amendment 8 is important, because we must ensure that all leaseholders, not just those with residential leases of 150 years or over, have the right to vary their lease to replace their rent with a peppercorn rent. That is because the most common forms of lease are those of 90, 99 and 125 years, and so the Bill, as it stands, will mean that leaseholders with the most common forms of lease will not be able to enjoy the right to vary their ground rent to a peppercorn.

In conclusion, in contrast to the Government’s approach, a Labour Government will enact the Law Commission’s recommendations in full. Labour will make commonhold the default tenure for all new properties, in order to reform the leasehold system fundamentally and comprehensively. In my constituency, what has happened to the residents of Lee Court shows that the current leasehold system is not working. I suggest that the Government accept my new clause, as well as the Labour amendments.

Wendy Morton Portrait Wendy Morton
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I rise to speak to new clauses 13, 23 and 41, which stand in my name. I wish to place on record my thanks to those right hon. and hon. Members who supported me with my amendments and to the Public Bill Office for assisting with advice on their drafting.

Today’s Bill is important and I think we would all agree that it is long-awaited. I spoke on Second Reading, when I declared that I, like probably many others here, am one of almost 5 million leaseholders in this country. I am also one of the many who has gone through that awfully stressful process of extending a lease—that was prior to my being an MP. What I have learnt since becoming an MP is that the issue of leasehold affects not just London and our great cities, but constituents in places such as Aldridge-Brownhills. It affects people who have bought a house on a leasehold basis and many apartment blocks that were built perhaps 20 or 30 years ago. That is why I have taken such a keen interest in this piece of legislation. Buying a home is the biggest financial commitment that most people will make in their lifetime, but they are probably unaware of some of the complications they may experience later down the line.

I raised many questions on Second Reading and I wrote to the Secretary of State. My hon. Friend the Minister has been very engaged with me, but I gently say to the Department that a bit more engagement with Back-Bench Members would help enormously. That said, I am clear that I want the Bill to succeed, although in common with many other hon. Members I still believe it could and should go further. I will not push my amendments to a vote today, but I want to make a few points in relation to them.

On new clause 13, the prohibition on new leasehold homes within three months of the passage of the Act, I appreciate and welcome what the Minister said from the Dispatch Box. The Government have long been committed to the provisions in that new clause and I have sought clarity about what exactly they intend to do. I have heard welcome news today, but I will continue to press the point about commonhold because that matters. Moving forward, if we are to continue to look at this legislation and get it through this place, we will have to revisit this topic to ensure we get the best for our constituents, whatever type of housing or home they live in.

New clause 23 seeks a report on disadvantage suffered by existing leaseholders. In effect it was the sunset clause I referred to on Second Reading. The extent of the number of leaseholders who started the process of extending their lease during the passage of the Bill and the impact on them is unclear. Many will have been waiting to see the outcome of this legislation. Quite feasibly, that group will include people who have been forced to extend their lease in order to sell their home because, as we know, it is very difficult, if not impossible, to get a mortgage on a short lease. I am certain some leaseholders will not have been able to wait for the Bill to reach Royal Assent. Such leaseholders risk being seriously disadvantaged, so new clause 23 would take steps to assess and remedy any unfairness by considering issues such as marriage value, legal costs and other charges. I do not think we fully appreciate the size of this group compared to the number of people who will extend their leasehold after Royal Assent.

Similarly, new clause 41 seeks to redress the imbalance and unfairness of marriage value for those leaseholders who extended their leases many years ago or prior to the Bill passing through this place. By seeking to produce a report on disadvantage due to payment of marriage value, I hope we can better understand the extent of some of challenges around a system that, as we have heard today, is feudal, difficult to navigate and has disadvantaged many leaseholders over the years. It is important that we do not lose sight of the need to address the issue of marriage value.

The fourth area of concern is ground rent. I did not table an amendment on this issue but I will touch on it again. Many colleagues on both sides of the House have mentioned it. The Minister was clear in his response to me, but we need to continue to push forward for change.

I will support the Bill and I welcome the steps that have been taken. However, from the many examples that colleagues on both sides of the Chamber have highlighted today and the examples we have all seen sent to our inboxes by constituents, particularly around the challenges of service charge, it is clear that we need to go further. I will continue to gently nudge the Minister; he is nodding his head. He does a really good job and I am certain he gets the issue, but let us continue to work together for the benefit of our constituents.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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I have nine Members trying to catch my eye, so if people speak for about five minutes, that will allow everyone to get in roughly equally. There has been some slippage, I can see that.

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Stephen Timms Portrait Sir Stephen Timms (East Ham) (Lab)
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I rise to speak to new clause 24, which is in my name. It was also considered in Committee. I am most grateful to my hon. Friend the Member for Brent North (Barry Gardiner) for moving it there and to the Minister for his response. I am also grateful to the hon. Member for Loughborough (Jane Hunt) and the right hon. Member for West Suffolk (Matt Hancock) who have added their names to the new clause on the Order Paper.

I thank the Minister for his reply in Committee, but I think he missed the crucial central point of the amendment. At the moment, the risks of exposure to asbestos in a workplace are managed by the Control of Asbestos Regulations 2012, which is monitored by the Health and Safety Executive. For every workplace under those regulations, there is a duty holder responsible for monitoring the condition of the asbestos. They are required to keep up-to-date records of the location and condition of all asbestos-containing materials, to provide that information to anybody liable to disturb the materials, and to develop a plan for managing any risks that arise.

Residential blocks with a commercial freeholder will generally also have a duty holder, because the block will have been for them a workplace, so it is covered by the Control of Asbestos Regulations. It is usually the freeholder or their agent who is the duty holder. That duty holder is responsible for all the common areas in the block, such as foyers and staircases.

The effectiveness of this whole regime is debatable. The sixth report in the 2021-22 Session of the Work and Pensions Committee expressed considerable reservations. It is doubtful, I think, that the Health and Safety Executive is doing enough to monitor compliance, and the assumption that leaving asbestos in place is better than removing it is increasingly questionable as the asbestos ages. None the less, there is at least a clear regime for managing the risks.

The concern that motivates this new clause is that, following a transfer of the kind made possible and facilitated by the Bill, there will no longer be a duty holder for the communal areas in such a block. At the moment there is, but the responsibility will be entirely extinguished, as far as I understand it, on transfer. The asbestos is still going to be there, the risks will remain, but nobody will any longer be responsible for managing them. Understandably, no individual resident will take on the responsibility, but there will be no corporate entity to do it either. In fact, it may be worse than that. The residents may well not be aware before the transfer is completed that they are taking on both a financial liability for managing the asbestos in the communal areas, and possibly a risk to life as well. It is important to bear it in mind that we are seeing 5,000 deaths per year at the moment as a result of past exposure to asbestos.

In his response in Committee, the Minister said that the amendment would

“duplicate the existing duty in regulation 4 of the Control of Asbestos Regulations 2012 for landlords to survey the common areas of their property”.—[Official Report, Leasehold and Freehold Reform Bill Public Bill Committee, 30 January 2024; c. 461.]

However, the newly enfranchised property would not fall any longer under regulation 4. There would be no landlord to survey the common areas once the transfer has taken place.

New clause 24 aims to prevent this problem from occurring. It requires landlords to perform a detailed survey of the asbestos present in the building within three months of a transfer taking place and then requires the landlord to remove any asbestos that is there.There is a 150% tax relief for businesses removing asbestos from their premises, so removal will not be costly for landlords. It will save newly enfranchised leaseholders from a large and probably unexpected liability and a potentially lethal long-term risk. I hope that makes the case for this change clear.

I am grateful to the Minister for his assistance with the residents of Barrier Point in my constituency. I think we have a meeting in his office next month. Last night, I had my regular Zoom call with leaseholders from Waterside Park in my constituency. Before Christmas, we thought we had a clear way forward. Barratt, the builders, had signed up and Aviva, the current freeholder, was happy, but last night we learned of the requirement that the Building Safety Regulator to look at any proposal for a minimum of eight weeks, which will substantially delay the work that has been committed to. Will the Minister look at whether it is really necessary for residents who have been waiting so long for these problems to be resolved to wait another eight weeks?

Nickie Aiken Portrait Nickie Aiken (Cities of London and Westminster) (Con)
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I fully support the Government’s wish to overhaul the antiquated and feudal leasehold system in this country and address the imbalance of power between freeholders and leaseholders. I thank the Minister for his ongoing discussions with me about a number of issues I have with the Bill, and for attending the leasehold roundtable that I held recently with my constituents.

I would like the Government to abolish the system completely, but I understand that that will not happen with this Bill. I have therefore tabled an amendment and three new clauses that would improve the Bill further. New clause 12 would reduce the participation threshold required to claim the right to manage from 50% to 35%. That is a massive issue in Cities of London and Westminster. More than 1,300 properties in the City of London and an eye-watering 12,100 in Westminster have owners living abroad or are owned by companies using central London’s golden postcodes as a place to park their cash. That reduces the ability of leaseholders in those blocks to secure the 50% of signatures required to achieve the right to manage, as it is incredibly difficult to contact those overseas leaseholders for a meaningful discussion.

Let me give an example of that type of dilemma in my constituency. Residents in The Quadrangle in the Hyde Park Estate say that leaseholders in their block will struggle to meet the 50% participation threshold. They estimate that at least 40% of leaseholders in their block do not live in the building and are uncontactable. Accepting new clause 12 and lowering the threshold to 35% would give many more leaseholders living in similar blocks the chance to manage their buildings.

I commend the work that has been done on the Bill to support blocks that have shared commercial and residential usage. The Bill proposes to increase the proportion of commercial or non-residential space permitted in an individual block for a right to manage application from 25% to 50%, but I believe we can go even further. I have heard from many residents whose blocks will fail to qualify even after the threshold rises to 50%. For example, residents of 8 Artillery Row in Victoria believe that increasing the threshold to 50% does not go far enough, as the residential element of their block is lower than 50%. That is why amendment 17 is needed, as it would allow residents in a block with up to 75% commercial premises to apply for the right to manage.

New clause 14 is similarly designed to allow more leaseholders to strive for the right to manage, especially those in mixed-use buildings. Simply sharing a broom cupboard with a commercial property can disqualify them from claiming the right to manage. At Cambridge Court in Marylebone, for example, leaseholders striving to manage their block would benefit from the Government’s proposals to increase the non-residential threshold allowed in a building, but they are concerned that their ability to qualify for the right to manage would be undermined by the existence of a single shared car parking space in their building. My new clause 14 would amend the Commonhold and Leasehold Reform Act 2002 by adopting recommendation 5 from the Law Commission’s “Right to Manage” report, which is to allow leaseholders in mixed-use buildings with shared services or underground car parks to exercise the right to manage.

Finally, my new clause 15 would correct the unintended consequences of the Building Safety Act 2022. That Act has interfered with the long-standing section 24 regime, which was a vital right for leaseholders. It introduced an accountable person mechanism that expressly banned section 24 managers from being the accountable person. Consequently, specially trained and vetted professional property managers willing to take on difficult sites have been barred from being the accountable person. That makes absolutely no sense, and it stripped leaseholders of an existing right. That could not have been the Government’s intention when they introduced the 2022 Act, which was intended to provide leaseholders with additional statutory protections. So many leaseholders in my constituency and across the country would benefit from applying for a section 24 manager, but they cannot risk it if they are in blocks of 18 metres or higher because of the accountable person regime issue arising from the Building Safety Act. It is imperative that our buildings are safe, that leaseholders are safe, and that the burden does not fall heavily on leaseholders.

I will not press my amendments to a vote, but I hope that the Government will consider what I have spoken about and work with me to introduce the measures in the other place. This is a watershed moment for the Government to prove that they understand the terrible treatment that leaseholders have faced and continue to face by incompetent freeholders, and to address the imbalance between freeholder and leaseholder. I hope that the Bill will deliver real change.

Helen Morgan Portrait Helen Morgan (North Shropshire) (LD)
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I rise to speak to new clause 1, which was tabled in my name, and in support of a number of new clauses and amendments tabled by right hon. and hon. Members from both sides of the House.

I tabled new clause 1 because, as was said by the hon. Member for Harborough (Neil O’Brien), who is no longer in his place, fleecehold is a scam. It attempts to deal with the issue whereby a freeholder is trapped in a situation where they pay estate management charges for the areas around their development, be they roads, play areas or open spaces. Critically, the new clause also deals with the shared assets that might be in use to service their homes, such as ground source heat pumps, septic tanks or sewage pumps. I am sure that there are many instances in which the management company does a great job and charges reasonable fees for its work, but my inbox—like those of many hon. Members—contains horrifying examples of the management company, which is usually directly owned by or related to the developer in North Shropshire, failing to do a good job, or to do any sort of job at all.

There is a freeholder in my constituency, for example, who must obtain an information pack from their estate management company in order to sell their house. Despite repeated requests, my constituent has not received that information pack, so their sale has been significantly delayed and is at risk of falling through altogether. The management company is apparently just a shell—it does not respond to correspondence, hold annual general meetings or provide accounts—so the affected residents are powerless and cannot take control of the company and appoint a reliable professional to provide the services that they so desperately need. New clause 1 would allow them, where the management company has gone AWOL and will not respond to anything that they request of it, to take control of the company and do those things themselves.

The new clause also extends to assets, which may be more of a rural problem when it comes to shared estate charges. In one example in my constituency, a developer installed a ground source heat pump to provide all the heating and hot water for a barn conversion development that involved several houses in the same set of barns.

That developer has two separate companies: one is the management company through which he charges the owners of those houses for their electricity bill, and another, totally separate company that was nothing to do with the sale process, which is where he placed the heat pump. As such, he is able to cream off all the renewable heat incentive income for himself; he provides accounts to residents through the management company, but does not provide them with any information about the fundamental asset that is servicing their home. Those residents are unable to benefit from the renewable heat incentive that accrues from that asset, and do not know whether it is being properly maintained and serviced. They are unable to do so themselves—they have no rights in relation to that heat pump.

17:15
That is quite a complex situation, in which I suspect fraud may also be involved, but there are other examples where residents are unable to get their street lights fixed or their potholes sorted out, or where drainage is a huge problem, and they cannot get any kind of response from the management company responsible. New clause 1 would allow residents to take over their estate management companies in such instances, which would hopefully provide management companies with a significant disincentive to fail to provide the services that they are presumably making quite a lot of money out of. Crucially, new clause 1 would also enable those trapped in existing arrangements to exit them.
As other Members have mentioned, once people with a full-time job have bought a home, they do not have time to endlessly chase up their management company and take them to court and tribunals over services that that company has failed to provide. One of the residents I have been dealing with said to me, “I just don’t have the time to deal with this. I’m a full-time truck driver.” The idea behind new clause 1 is to make it easier for those people to take control of those companies and take control of their own lives.
As has already been pointed out, it is very worrying that these arrangements have been allowed to proliferate across the country. Many residents are now paying both council tax and service charges for street lighting, grass cutting and drain clearing that would normally be provided by a local authority. Those people are literally paying more for the same service; that is indefensible, and millions of people are trapped in those arrangements. Amendment 18, tabled by the hon. Member for North East Bedfordshire (Richard Fuller), attempts to address that issue by preventing such charges from forming part of the estate management charge. That would certainly disincentivise developers from using that model, but although it is beyond the scope of the Bill, I urge the Government to prevent those awful arrangements from happening in the first place. It is much better for a road to be adopted and maintained by the local authority so that everybody is paying for the same services on the same level playing field.
Where people have a shared asset and are trapped by an estate management company, if their developer has failed to pay a section 106 fee, they are also on the hook for that money. I have residents in my constituency who have a charge of £30,000 over their shared area for a section 106 fee that was not paid, and other residents paying £1 million between 14 people to bring a sewage pump up to standard because it is an environmental health hazard. If those problems had not been allowed to occur in the first place—if the local authority had had to require a financial bond to be placed so that, if the development was not up to scratch when it was finished, the local authority had the money to bring it up to scratch and adopt it—those residents would not be in that awful situation. I really encourage the Government to take that away and think about how we can protect people in the future.
Peter Bottomley Portrait Sir Peter Bottomley
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I draw to the hon. Lady’s attention and that of the Minister the article by Patrick Hosking in The Times today, which deals with estate management companies and estate management charges. I hope that the Government will read what he has written and see what they can do to make things better.

Helen Morgan Portrait Helen Morgan
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I thank the hon. Gentleman very much for his intervention.

I will conclude by saying that I support the amendments that would require professionalisation of the industry— that would be very sensible and consistent with other legislation that the House has passed. I also support new clause 5 and amendments 4 and 8, tabled by the shadow Minister, the hon. Member for Greenwich and Woolwich (Matthew Pennycook); new clause 39, tabled by the Chair of the Select Committee, the hon. Member for Sheffield South East (Mr Betts); and new clause 25, tabled by the Father of the House, the hon. Member for Worthing West (Sir Peter Bottomley). The Bill goes some way towards providing the protection that we need, but it needs to go much further to protect freeholders from rogue developers and estate management companies. I urge the Government to take that away and do more.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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To protect the last six speakers and protect ministerial time as well, there is now a five-minute limit on speeches, which will give the Front Benchers sufficient time to respond.

Rachel Maclean Portrait Rachel Maclean (Redditch) (Con)
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It was a great pleasure to serve on the Public Bill Committee on this Bill. We had a great debate, and there was actually a lot of agreement across the Committee Room. These are deeply Conservative reforms, championed by none other than Mrs Thatcher, starting in 1965, which she continued to do throughout opposition and during her premiership.

I gently say to Opposition Members, of whatever party, that they must not fall into the trap of making this a political football. They must engage with the seriousness and complexity of these reforms, in part because, as we have heard, they did very little to advance these very significant reforms during their own time in office. I suspect that they backed away from it because of the very significant legal challenges they would have faced, as we ourselves will no doubt face. Pretending they do not exist is not a serious position. I say to the Minister and the Secretary of State, who are aware of my comments, that we must not buckle, but must continue to take this forward.

It is great to see the package of amendments laid by the Government, particularly new clause 42, which is a ban on leasehold houses. I want the Minister to think carefully about how he will address the inevitable imbalance in the creation of a two-tier system, in which some people will have the freehold of their house, but some will not. There is an additional imbalance between flats in our urban areas and new freehold houses. That point was very well made by James Vitali in a Policy Exchange report. I am slightly worried about the omission from this of retirement properties, so perhaps the Minister could return to that.

In Committee, I spoke about the need to truly move towards a commonhold system. I think the Opposition’s new clause 11 is something of that nature. I very much hope that, as the Bill goes through completing its stages, the Government—here or in the other place—can look at that suggestion. I think we do need to set out the future legislative scaffolding for our fifth term in office, and to build on the work we have done so that we can finally get rid of this leasehold system.

Other Members have mentioned a lot of the points I would have made about shared services. My hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) raised that, and it is one of my concerns. My hon. Friend the Member for Harborough (Neil O’Brien) has done a fantastic job in talking about the lack of adoption by local authorities. There is also new clause 7, which I know is again an Opposition amendment, and new clauses 1 and 2. This problem is not going to go away. It is a blight on many homeowners in Redditch, and it also goes to the heart of our planning system. We really do need to look at that; we cannot pretend that it is going to solve itself.

I thank the Minister for writing to me about one of my concerns, which is litigation costs. I think new clause 3 looks at that. He has reassured me that what is in this Bill will go the distance in ensuring that leaseholders are not subject to unjust litigation costs by their landlord. That is one of the cases highlighted by Liam Spender and many others. These are hugely complex issues, but we must tackle them.

I want to see ground rents reduced to a peppercorn. It is pure extortion, and a feudal relic from medieval times when people were serfs and worked the land. We should not have this in 2024, or in any year. I refuse to believe that there is not a way, through the wit of man and the considerable intelligence of Ministers on the Front Bench, to solve the issue, perhaps where some financial assets are held in pension funds. I do not buy the pretence of that incredible con artist Mr Steve Whybrow and his outfit that somehow we are robbing pensioners. I would urge anybody with an interest in this debate to look at the genuine pensioners who are fighting for the right to have pure enjoyment of their own properties, which they richly deserve after a lifetime of working.

I will make my final remarks on forfeiture: it must go. The forfeiture of a long lease cannot be right. It cannot be right that a freeholder can hold this nuclear bomb over somebody such as Dennis Jackson, a pensioner, of Plantation Wharf. He disputed a £6,000 service charge, which led to an £80,000 legal bill, and he had his £800,000 flat forfeited during a 10-minute hearing at Wandsworth court. I thank LEASE for all the work it has done to help him. That just simply cannot be right, and we must address it. I want to see us finally finishing the job that Mrs Thatcher started when she was Opposition Housing spokesman in 1965. We must finish that job, and I thank the Minister for all the work he has done so far.

Stella Creasy Portrait Stella Creasy
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I feel for the Minister today, because he must be kicking himself. This is probably one of the few debates I have heard in this place recently where I have not heard a bad idea. As constituency MPs, we see time and again the problems caused by retaining this feudal system of leasehold, and I suspect that the Minister, who has been looking at this issue for some time, is kicking himself because what he would really like to do is abolish the whole thing. Indeed, today we have heard support from across the House to do just that. In the short time available, let me say again to him that he would have our support to move to commonhold. He talked about how commonhold was probably the better model, and for those of us living in the vortex of gentrification, where thousands of flats have been built in our community, this is an incredibly pressing issue. We know that the casework we have seen over the past few years will expand as a result of leasehold continuing. That is why I wish to see the Government change their mind, perhaps in the other place, about getting rid of leasehold altogether, and why I have been pressing my local authority to listen to concerns of local residents who are stuck with leasehold, and change our local plan to make commonhold the default. I hope that they have heard this debate and will rethink their opposition to that.

I support the amendments in the name of my hon. Friend the Member for Greenwich and Woolwich (Matthew Pennycook), and wish to draw the Minister’s attention to two new clauses that I have tabled on issues with the existing system and the problems that leaseholders face. With 12,000 leaseholders in Walthamstow, I know that these issues will come up time and again.

New clause 2 is about the fact that although we have leasehold legislation, it does not tally with our consumer legislation. Leaseholders pay a service charge. They have a contract with freehold management companies to oversee problems in their properties, but few residents feel empowered to access rights that exist under the Consumer Rights Act 2015 to have a reasonable service within a reasonable timeframe for repairs. Today, colleagues across the House have given countless examples of that, so let me add my own, which is where my proposed new clause has come from. I am sorry that my hon. Friend the Member for Lewisham East (Janet Daby) is not here. She talks about Leigh Court and new clause 67, but residents in Essex Brewery in Walthamstow have been without hot water and heating since before Christmas. Indeed, they are still without hot water and heating, with little sight of any change.

Essex Brewery was built just five years ago. It has become apparent that the build by Crest Nicholson was poor at best, and a downright con at worst. Until January this year, Crest Nicholson was on the management committee and made more than £100 million in profit in the year that Essex Brewery was built. It has made half that this year—possibly less—because of widespread concerns about the condition of the builds it has made. What does someone do when they have bought possibly their first home, whether through shared ownership or leasehold, as hundreds did in that development, and they find that the pipes that bring in the hot water are faulty? I am sorry to say that those resident have little redress, because the management company, Kinleigh Folkard and Hayward—another multimillion pound organisation—left them without any explanation of why it would not repair the hot water until after Christmas. What a Christmas present that was. The Grinch had strong competition.

That was another layer of bureaucracy. KFH was appointed by the Essex Brewery management company, which was established by the freeholder, Helpfavour, to meet those obligations. KFH told the residents that because their insurance policy said that as long as they had water at all, the property was habitable and it was not going to do anything about it. That has left hundreds of residents, many of them vulnerable, for months on end without any hot water or heating in the current weather. Residents have had to boil kettles to get hot water to cleanse their babies, or pay bills that they cannot afford for extra heating through portable heaters. For those who have shared ownership it is even more complicated. Metropolitan Thames Valley states that it owns 24 of those properties and that it is prohibited by law from fixing the problem. New clause 2 is about matching consumer legislation with leasehold legislation, and giving residents the right of redress, not saying, “You’ve either got to buy out the leaseholders if you want some property control, or you are stuck with them and waiting to see.” I hope KFH hears this debate and is ashamed of its behaviour.

Amendment 1 is about leasehold tribunals. I know the Minister spoke of precedent setting, but residents across the country would tell him otherwise. I beg him to look at the Warner properties in Walthamstow, and at Y&Y management, which repeatedly rips off constituents across the country. The hon. Member for Harborough (Neil O'Brien) is not here, but he asked why people have to pay terrorism insurance. In Walthamstow that was the Warner estate company, which said that because the plane bomber lived in our constituency, 3,000 households had to buy terrorism insurance. Such cases come up time and again with leasehold and they do not get fixed in the tribunal. Amendment 1 would give precedent.

Vicky Ford Portrait Vicky Ford
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For some of my Chelmsford constituents, these provisions cannot come soon enough. One constituent told me how he bought his leasehold flat seven years ago, but now he and his wife want to move to a bigger home to start a family and progress their lives. For the past three years, they have been unable to sell their flat. They have tried listing the property with many different estate agents and had many offers, but no buyer can get a mortgage on the property due to a clause in the lease that means the ground rent can be doubled every 15 years. According to my constituent, nobody in this block of 20 flats has been able to sell a property since 2018. They feel stuck.

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Another constituent in another block of flats says that her family of three and a dog have been trying to move out of their one-bedroom flat for more than two years. Because the ground rent exceeds the £250 arbitrary threshold set for properties outside of London, buyers cannot get a mortgage, because if a leaseholder were to default on the ground rent, the landlord would have the right to repossess. The family have tried deeds of variation, indemnity policies and multiple mortgage lenders, all to no avail. Mortgage companies value the flat at literally zero.
For most people, buying one’s own home is meant to give security and stability, choice and freedom, but for these leaseholders, life is more like being locked in a time warp. They are trapped in a prison of their own property, unable to move on. I therefore welcome the measures in the Bill and the amendments that the Government have tabled today. I have listened carefully to what my hon. Friend the Member for Walsall North (Eddie Hughes) and others have said about forfeiture and what the Minister said about caps on ground rent. The Minister needs to go further on this issue.
Another group of leaseholders are struggling live in Kings Tower, a 12-storey building with a small amount of combustible insulation on the spandrel panels on the outside of the building. It might need remedial work to remove and replace it. I think it is shocking that seven years after Grenfell Tower, a huge company—Barratt—and the property management company, Estates and Management Ltd, have still not carried out this remediation work.
One of the leaseholders, Richard, emailed me today. He said that back in 2009, the service charge was just £800 a year. This year, he thinks he will have to pay £4,000. Richard and other leaseholders were first told of the potential issue in August 2020. He says that since then, they have been unable to fulfil any form of normal life, due to these additional fire safety issues and the cost. He says:
“I genuinely feel ill to think of what our service charge demand is going to be in March this year”.
As well as increases in insurance, Barratt and E&M Ltd are blaming the increase on the costs needed to register the building under the new regulations of the Building Safety Act 2022. I thank the Minister for his letter to me on this subject. Even though paragraph 9 of schedule 8 was meant to protect leaseholders from the costs of legal and other professional services, it is clear that my constituents and many others feel that they are being gouged for excessive costs.
Finally, some freeholders also face issues. There are some truly stunning residential developments in Chelmsford, where the parks and public areas are beautifully maintained by estate management companies, but that is not universal. I note that FirstPort has been named by my neighbour, my right hon. Friend the Member for Witham (Priti Patel), as a company that is particularly difficult to deal with, even for a Member of Parliament, and I agree with her. It is so hard for freeholders to hold management companies to account and to ensure that maintenance is done well and that the costs charged are reasonable. I am therefore glad that this Bill will also include measures to give freeholders access to support via redress schemes and to require estate management companies to be transparent. When more leaseholders become freeholders—as I truly hope they will thanks to the changes brought in by this Bill—we need to ensure that these terrible practices are not just passed on to freeholders, but that freeholders also have these rights and the ability for redress.
Priti Patel Portrait Priti Patel
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The amendments tabled by the Government —new clauses 30 to 32 in particular—will offer my constituents some hope and a quicker means of redress on many of the points raised in the House’s discussions. I will press the Minister on some concerns raised by my leaseholder constituents and by all colleagues on the whole issue of remediation of defects, and transparency and accountability.

At one development in my constituency that opened in 2019—now a significant period of time ago—the residents experience a shocking case of misery and distress. The problems include water ingress, damp and mould, with children getting sick as a result, which is unforgiveable. There are also: damaged sprinkler systems; defective and non-compliant fire doors, which is unthinkable in this day and age; inadequate insulation—we have heard about water pipes and the lack of heating and cold water; roofing issues; damaged gates; and poor grounds maintenance. On top of that, when someone raises a complaint, guess what happens? Nobody does anything about it. However, whenever constituents get a letter, it is about their service fees increasing—it happens all the time. That is not acceptable.

The residents seek redress, but it just does not happen. Not only are they frustrated but we see a clear issue with buck passing; that is shameful and must be addressed. This property was a permitted development, and we should pause for thought on that. I am pro such developments—we need more of them—but we must ensure that charlatans do not come along and exploit people who are desperate to buy their first home, with all sorts of things happening in the building. I have had reports from residents who have purchased their property more recently, and guess what? They were not informed of all the defects and the problems going on. That is simply scandalous.

I want to mention again FirstPort—this should be a topic of wider debate in the House—and management companies. I am meeting FirstPort at the weekend. Again, why do these companies feel that they can be let off the hook? They will not engage effectively. In one case, leaseholders of a site in Stanway were not notified of a change in management company for about half a year. Every single colleague in the House will have cases of that nature.

FirstPort has refused requests to hold annual general meetings and has been lacking in visibility. If I may, I will praise Councillor Kevin Bentley, my county council leader, who is a divisional member for the area in question and has secured a public meeting for the weekend. It will be the first point when we have been able to get in the room with these people to seek redress. Contractors come in, and people are charged for monitoring works that never take place—it goes on and on.

I am grateful to the Minister for how he opened the debate, and spoke frankly about the issues and concerns. I have a suggestion to put to him. Yesterday it was announced that the Competition and Markets Authority will look into the practice of house builders and whether there has been collusion in pricing and the development of schemes. May I suggest that it might be worth looking into management companies? Many of those house builders come part and parcel with the management companies. The house builders do the negotiations with the management companies, and there is a lack of transparency. Should we be looking at more open book contracting around management companies, with details of how they are brought on board by the developers published, so that there is greater transparency for the purchasers? That is really important. As the Minister’s Department has already enlisted the CMA, he may wish to ask it to look at that important area as well. I hope that he can respond to some of those points when he sums up.

All hon. Members are grateful for the chance to raise these points, which speak to the totality of what we are seeing—a sense of a lack of fairness for many of our constituents, which the Government are clearly pressing in the right direction and seeking redress.

David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con)
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I very much welcome the Bill, which addresses the frustrations expressed by a great many leaseholders in my constituency. I thank Suzy Killip from the Pembroke Park Residents Association and Jo Tapper at The Sigers, both of whom have faced significant challenges while representing their communities and taking forward issues arising from the management and lack of services often provided to them under their lease arrangements.

I would particularly like to thank Ministers, because this legislation takes into account the way that the market has changed. Many years ago I started my career as a financial adviser, dealing with people taking out mortgages. One stark change is the extent to which leaseholds are seen as an opportunity to extract money from people as investments to be traded by freeholders, on the basis of extracting the maximum possible amount rather than ensuring good quality of services. I was involved in cases as a local authority councillor, where part of the planning agreement was that roads, parks and open spaces would be brought up to an appropriate standard to be adopted by the local authority. Once the development was completed, an opportunity was spotted by the developer and, therefore, people who had moved in on the understanding that the local authority would take over—because the roads were built to adoptable standard, for example—found that it did not happen because it was seen as an investment opportunity. That is very much in line with the rip-offs referred to by Members across the House.

I commend Ministers on taking a balanced approach on the need to recognise a link between the arrangements in the Bill and our housing supply. The UK has the oldest housing stock in Europe. The ability of freeholders of larger developments to regenerate sites where properties that have been rented are falling vacant over a period of time could be inhibited if there is a proliferation of small freeholds on those types of sites. If we are to ensure that the quality of our housing, in particular energy efficiency, is brought up to a good standard, it must still be possible for larger sites to be regenerated. We must not inhibit that completely while addressing a different concern about the rights and freedoms of leaseholders.

I mentioned some constituents earlier; the situation in particular at Pembroke Park is a good example of why the reforms in this legislation are so important. The development was constructed on a former military site by Taylor Wimpey, and handed over to be managed by A2Dominion housing association, with a mix of social housing tenants and private leaseholders. There are umpteen issues still more than a decade after the completion of that site, and issues simply getting A2Dominion to respond to problems including insulation that was never installed in buildings to the building regulations standard, a complete failure to ensure that proper ventilation was installed in the buildings, and drains that are completely inadequate. There has been progress, but I would add A2Dominion to the list of companies raised by other Members.

I commend A2Dominion’s relatively new chief executive, Ian Wardle, on the progress that he is making, but it remains a huge challenge to my constituents, and a huge frustration, that as opaque charges rise and rise, the actions of that organisation make it incredibly difficult even to understand whether the basic legal protections that they enjoy under existing legislation are being observed, including how insurance costs are apportioned across a very large property portfolio.

I strongly support the points made around forfeiture provisions. A number of constituents have come to me with significant challenges and justifiable concerns about the rising service charges on their properties. It is completely unacceptable that they would forfeit a significant amount of value that they have paid for and earned—potentially to fall to the developer. That is another opportunity for the shamelessly greedy to rip off our constituents. I am very glad that this legislation and the comments made by Members across the House today will represent a significant step towards ending that practice.

Richard Fuller Portrait Richard Fuller
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Thousands of homeowners in my constituency and millions across the country who face estate management charges will have their rights substantially increased thanks to the provisions in this Bill. I am extremely grateful to the Prime Minister, the Secretary of State, the Minister and his predecessor, my hon. Friend the Member for Redditch (Rachel Maclean), for including estate management charges in this Bill.

17:45
That is extraordinarily timely, given the findings released this week by the Competition and Markets Authority. In its final report, it states:
“As a result of the emergence of the private management model, and the market power conferred on some management companies, households are facing financial and emotional detriment, and, if the status quo is maintained, this is likely to worsen over time.”
It proposes that the Governments of the UK and the devolved authorities look at two areas of measures. The first is to
“provide greater protection to households living under private management arrangements.”
That is what this Bill seeks to do. I know that the Minister has some cards up his sleeve—on forfeiture, right to manage and probably a host of other things—and I hope that he will shake some of them loose as the Bill moves up to the upper House.
Secondly, the Competition and Markets Authority makes two recommendations to prevent the proliferation of private management arrangements for new housing estates. The first is to
“implement common adoptable standards for public amenities on new housing estates”,
and the second is to
“implement mandatory adoption of public amenities on new housing estates”.
That sounds good, but it also sounds a long time away. We know that this issue is growing rapidly, so my amendment 18 seeks to stop it in its tracks by saying that homeowners may not have passed on to them charges for any service or provision that is usually the recourse of the local authority.
I cannot for the life of me understand why the Opposition are not supporting this amendment. I know that it is a bit of a club and not very nuanced, but it gets to the heart of the matter. Could the Minister therefore reassure the Opposition, as well as me and other Back Benchers, that he will look at what the Bill can do to make progress on some of the measures mentioned by the Competition and Markets Authority? I know that he wants to do that; I just hope that he can go as far as he can.
I will now turn to the proposed treatment of marriage value. There is a concern, which has been stressed a number of times, that the decisions we are making through this Bill are based on limited information on important economic effects. One example is the ability given to the Secretary of State to decide options for the future of ground rent. That was raised in responses to the recent consultation. Another is how the Government might determine the appropriate rates for the deferment and capitalisation rates, and there are a range of unquantified effects in the Bill’s impact assessment.
In Committee, I tried to learn a bit more about whether marriage value is a real thing. It is a real thing: it was enshrined in legislation in 2002 and, prior to that, in 1993. The Bill does not abolish marriage value; it transfers it. In fact, it is not possible to abolish marriage value; in maths, it is an optional value—it has real value. This is a decision not to abolish something, but to take it from one group of stakeholders and give it to another. It is a £7 billion transfer of wealth from one group to another, and under the provisions of the Bill it would be retrospective on contracts already entered into. That is a perfectly legitimate public policy position if we wish to take it, but I say to the Minister that as currently proposed it is fraught with legal risk and legal jeopardy.
My amendment would provide a safer passage for this Bill on its way to becoming law. It would ensure that any lease below 80 years at the time the Act is passed would continue to have marriage value, but any lease that goes below 80 years after the Act has passed would not. I ask the Minister to consider that as the Bill moves to its next stage.
Lee Rowley Portrait Lee Rowley
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With the leave of the House, let me start by thanking all Members for their contributions to the debate. The breadth of discussion across the House has shown that while we can discuss precisely how far we should go, there is a general consensus that progress needs to be made, and I think all Members will accept that it has been and is being made in the Bill.

My hon. Friend the Member for Worthing West (Sir Peter Bottomley) tabled new clause 25, and he is right to say that it deals with an important issue. As he said, a consultation is open, and we will review the responses very seriously. I urge anyone whose views are as strong as those expressed by my hon. Friend to contribute to the consultation, so that we can consider the issue in the round.

The hon. Member for Sheffield South East (Mr Betts) spoke passionately about his new clauses 39 and 40, and I understood the points that he was making. I hope that some of the changes introduced in the Bill will make the acquisition of freeholds much easier. We have discussed regularly the need for a disincentive for freeholders not to respond or to “go slow”, which should mean that the right to first refusal falls away to the extent that it is no longer necessary.

I was sorry to hear about the problems experienced by the constituents of my right hon. Friend the Member for Camborne and Redruth (George Eustice). He was kind enough to mention them to me earlier, but I would be happy to meet him as he requested, because I recognise that the specific matter that he raised is important to his constituents, and we need to look into it in more detail.

The hon. Member for Brent North (Barry Gardiner), who served on the Bill Committee, made many useful points. I cannot do justice to all of them, but I am happy to continue the discussion about Daejan Holdings and building safety to ensure that, if there is an issue that the Government have not worked through fully, we understand the details better.

The hon. Member for West Ham (Ms Brown), my hon. Friend the Member for Romford (Andrew Rosindell), my right hon. Friend the Member for Chelmsford (Vicky Ford) and my hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) highlighted the huge inequity that is affecting individuals in individual blocks in their constituencies. That inequity is exactly the reason why we must make progress, and I hope that the Bill is a good proposition for that to happen.

The hon. Member for Lewisham East (Janet Daby) was kind enough to give me more details about the background to her new clause in a separate discussion. What I have heard about from her, and also from the hon. Member for Walthamstow (Stella Creasy)—who is not in the Chamber, but who has a similar concern—is absolutely unacceptable. I entirely appreciate the individual concerns that are felt, and I am keen to continue our discussion so that we can learn from it for the broader good of the building safety sector in general.

My right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) tabled an important new clause about leasehold houses. I am glad she recognised that the Government have now introduced measures to deal with the issue that she raised. She also raised two important points about reports, and I am keen to meet her so that we can discuss those further and, in particular, discuss the impact involved.

I can tell the right hon. Member for East Ham (Sir Stephen Timms) that we are looking into the issue of the Building Safety Regulator, and I will be happy to talk to him about that when we meet to discuss Barrier Point. Since his speech I have checked the position on asbestos. We do not believe that that right is extinguished, but if we are not correct I would be keen to talk to him further to ensure that we understand exactly how that regime will work in practice, and to try to assuage his concerns.

My hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) exhorted us to move at this watershed moment. I am keen to talk to her further about the participation thresholds. She has made a powerful case, both to me in the House today and more broadly, about the importance of ensuring that this is workable, particularly in the circumstances that are faced in the centre of London.

While I entirely understand the point made by the hon. Member for North Shropshire (Helen Morgan) about some of these changes, I worry about her new clause, and I ask her not to push it to a vote. While her intentions are clearly noble, the new clause would put us into a position in which assets were being expropriated for the purpose of something that could be as insufficient as notice of an annual general meeting. I hope that she will reflect on that during the time we have left before the votes.

My right hon. Friend the Member for Witham (Priti Patel) made a strong point about the need to consider estate management further, and I have given a commitment to do so. FirstPort was raised by a number of Members, including my right hon. Friend. It may interest the House to know that my hon. Friend the Member for Harborough (Neil O’Brien) will lead a Westminster Hall debate on that tomorrow—so same time, same place, same discussion, but an opportunity to consider further the people and organisations that are not doing the right thing in this regard.

My hon. Friend the Member for North East Bedfordshire (Richard Fuller) has been an absolutely doughty champion of progress on estate management, and he is absolutely right to do that. His speech demonstrates again the strength of feeling about this issue and, as I said at the Dispatch Box a moment ago, we are considering it further and recognise the importance of doing that.

I turn to the contribution from the hon. Member for Greenwich and Woolwich (Matthew Pennycook), who speaks for the Opposition. He has tabled a new clause on forfeiture. I hope that the Government have indicated very clearly that we recognise the significant problems in this area and are working through the detail. Although I understand what he is trying to do with amendments 4 and 8, we think it is proportionate to retain the current position that we have set out from the Front Bench, for the same reasons as in Committee.

My hon. Friends the Members for Redditch (Rachel Maclean) and for Harborough made a very clear case about the importance of those on the Government Benches leaning into reform. In the time I have left, knowing that other parties and other traditions represented in this House will make similar cases—it is a shared endeavour in this area—I want again to make the Conservative case for leasehold reform. Building on our proud heritage of reform, it is a Conservative Government who are bringing forward the most transformational proposals for improving the lives of millions of leaseholders. It is a Conservative Government who are building the case for change to deal with the iniquities present on new estates, and who are committed to setting ordinary families free from unnecessary burdens. It is a Conservative Government who have brought forward one of the most comprehensive changes to property in a generation.

Why have we come forward with these proposals? It is precisely because it is a Conservative thing to do. We are cautious about interfering in the markets, for fear of unintended consequences or the creation of barriers. We know that no Government can ever fix every problem, but when we are convinced about the case for reform, we will fight for it with every sinew. At the heart of being a Conservative is the desire to smash monopolies and remove bad practice. We will celebrate where things work well, but we will joyfully remove distortions that are exploited by chancers and rogues. We will constrain rent seekers and middlemen, who add little to the basic economic exchange of goods and services that is at the heart of our economy.

Fundamentally, we are committed to making our markets more perfect and, as a consequence, to setting people free to make their own choices, live their lives and build their own future. Leasehold has been exploited for far too long by those who have no interest in the good functioning of capitalism. The lack of transparency, clarity and redress in freehold estate charges causes frustration up and down the land, and it does nothing for the efficient functioning of markets. That is why we are reforming.

Adam Smith talked of ground rents as monopolistic in 1776, Hayek reminded us in 1944 of the importance of making competition work and of not accepting institutions as they stand and, as my hon. Friend the Member for Harborough indicated, Margaret Thatcher asserted in 1982 that there is no prouder word in our history as Conservatives than “freeholder”. That is the centuries-long call as to why we have to make further improvements to our property system. With this Bill, in the true spirit of thousands of Conservative reforms that have made this country better, we are sending a clear signal that change for the better is coming and will benefit millions of people for the long term. That is only possible because of all the hard work of all the officials, all the people in the Law Commission and my opposite number, the hon. Member for Greenwich and Woolwich, who has been extremely constructive on this Bill.

I give huge thanks to Professor Nick Hopkins; Tom Nicholls and Chris Pulman at the Law Commission; officials in the Department, led by Robin Froggatt-Smith; my private office, including Grace Doody; and Members from across the House for their valuable input. Although I have just made the Conservative case for reform, we know that this is a shared endeavour among us all, which is why there is an unusual amount of unanimity in this place. It demonstrates the importance of our continuing to make progress on this issue.

As the Bill moves to the other place, I hope that those sat in the other place take note of the consensus and keenness here to ensure that progress is made. I hope they also take note of the importance of ensuring that the Bill continues and of the very many great reforms that are in it already. This demonstrates that together, as a broad group all across this House, we are committed to ensuring that leasehold reform happens, that leaseholders get a better deal and that the estate managers, estate management and freehold estates get clearer transparency, clearer information and a clear understanding of how they can live their lives and set themselves free in the future.

18:00
Debate interrupted (Programme Order, 11 December 2023).
The Deputy Speaker put forthwith the Question already proposed from the Chair (Standing Order No. 83E), That the clause be read a Second time.
Question agreed to.
New clause 26 accordingly read a Second time, and added to the Bill.
The Deputy Speaker then put forthwith the Questions necessary for the disposal of the business to be concluded at that time (Standing Order No. 83E).
New Clause 27
Part 4: Crown application
“(1) Sections 66 to 69 (sales information requests) bind the Crown.
(2) The other provisions of this Part—
(a) apply in relation to estate management carried out by, or on behalf of, a government department and otherwise bind the Crown in relation to such estate management, and
(b) bind the Crown in relation to other estate management only if carried out by, or on behalf of, a person other than the Crown.”—(Lee Rowley.)
This new clause, to be inserted in place of clause 70, expands the extent to which Part 4 binds the Crown. Clauses 66 to 69 bind the Crown in all respects. The Crown is also bound as respects the other provisions of the Part where estate management is carried out by a government department or a person other than the Crown.
Brought up, and added to the Bill.
New Clause 28
Redress schemes: no Crown status
“A person exercising functions under a redress scheme (other than the Secretary of State) is not to be regarded as the servant or agent of the Crown or as enjoying any status, privilege or immunity of the Crown or as exempt from any tax, duty, rate, levy or other charge whatsoever, whether general or local, and any property held by a such a person is not to be regarded as property of, or held on behalf of, the Crown.”—(Lee Rowley.)
This new clause, to be inserted after clause 75, would clarify that people exercising functions under a redress scheme do not have Crown status.
Brought up, and added to the Bill.
New Clause 29
Part 5: amendments to other Acts
“Schedule (Part 5: amendments to other Acts) makes amendments to other Acts in connection with this Part.”—(Lee Rowley.)
This new clause, to be inserted after clause 80, would introduce NS1.
Brought up, and added to the Bill.
New Clause 30
Steps relating to remediation of defects
“(1) The BSA 2022 is amended as follows.
(2) In the heading of section 120 (meaning of “relevant defect”), at the end insert “and “relevant steps””.
(3) In section 120, after subsection (4) insert—
“(4A) “Relevant steps”, in relation to a relevant defect, means steps which have as their purpose—
(a) preventing or reducing the likelihood of a fire or collapse of the building (or any part of it) occurring as a result of the relevant defect,
(b) reducing the severity of any such incident, or
(c) preventing or reducing harm to people in or about the building that could result from such an incident.”
(4) In Schedule 8 (remediation costs under qualifying leases etc), in paragraph 1(1)—
(a) omit the definitions of “building safety risk” and “relevant risk”;
(b) for the definition of “relevant measure” substitute—
““relevant measure” , in relation to a relevant defect, means—
(a) a measure taken to remedy the relevant defect, or
(b) a relevant step taken in relation to the relevant defect;
“relevant step” : see section 120;”.”—(Lee Rowley.)
This new clause is to be inserted as the first clause of a new Part. It amends provisions of the Building Safety Act 2022 which are about remediation of building defects. A definition of “relevant steps” is added, meaning steps which are essentially preventative or mitigating (such as installing a fire alarm) rather than remedying the defect.
Brought up, and added to the Bill.
New Clause 31
Remediation orders
“(1) Section 123 of the BSA 2022 (remediation orders) is amended in accordance with subsections (2) to (4).
(2) In subsection (2), for “remedy specified relevant defects in a specified relevant building by a specified time” substitute “do one or both of the following by a specified time—
(a) remedy specified relevant defects in a specified relevant building;
(b) take specified relevant steps in relation to a specified relevant defect in a specified relevant building.”
(3) For subsection (6) substitute—
“(6) In this section—
“relevant building” : see section 117;
“relevant defect” : see section 120;
“relevant steps” : see section 120;
“specified” means specified in the order.”
(4) After subsection (7) insert—
“(8) In proceedings for a remediation order, a direction given by the First-tier Tribunal requiring a relevant landlord to provide or produce an expert report is to be regarded as a decision for the purposes of subsection (7).
(9) In subsection (8), “expert report” means an expert report or survey relating to—
(a) relevant defects, or potential relevant defects, in a relevant building;
(b) relevant steps taken or that might be taken in relation to a relevant defect in a relevant building.”
(5) The amendments made by this section apply in relation to proceedings for a remediation order as mentioned in section 123 of the BSA 2022 which are pending on the day on which those amendments come into force (as well as proceedings for such an order which are commenced on or after that day).”—(Lee Rowley.)
This new clause amends provisions of the Building Safety Act 2022 which are about remediation orders, to make it clear that: (i) a remediation order can require a landlord to take relevant steps (see NC30), and (ii) the First-tier Tribunal may order, and enforce, the production of an expert report.
Brought up, and added to the Bill.
New Clause 32
Remediation contribution orders
“(1) Section 124 of the BSA 2022 (remediation contribution orders) is amended in accordance with subsections (2) to (6).
(2) In subsection (2), after “remedying” insert “, or otherwise in connection with,”.
(3) After subsection (2) insert—
“(2A) The following descriptions of costs, among others, fall within subsection (2)—
(a) costs incurred or to be incurred in taking relevant steps in relation to a relevant defect in the relevant building;
(b) costs incurred or to be incurred in obtaining an expert report relating to the relevant building;
(c) temporary accommodation costs incurred or to be incurred in connection with a decant from the relevant building (or from part of it) that took place or is to take place—
(i) to avoid an imminent threat to life or of personal injury arising from a relevant defect in the building,
(ii) (in the case of a decant from a dwelling) because works relating to the building created or are expected to create circumstances in which those occupying the dwelling cannot reasonably be expected to live, or
(iii) for any other reason connected with relevant defects in the building, or works relating to the building, that is prescribed by regulations made by the Secretary of State.
(2B) The Secretary of State may make regulations for the purposes of this section specifying descriptions of costs which are, or are not, to be regarded as falling within subsection (2).”
(4) In subsection (3), after “specified” insert “as a person required to make payments”.
(5) In subsection (4)—
(a) in paragraph (a), omit from “or payments” to the end;
(b) after paragraph (a) insert—
“(aa) if it does not require the making of payments of a specified amount, determine that a specified body corporate or partnership is liable for the reasonable costs of specified things done or to be done;”.
(6) In subsection (5)—
(a) after the definition of “developer” insert—
““expert report” has the meaning given by section 123(9);”;
(b) after the definition of “relevant defect” insert—
““relevant steps” : see section 120;”;
(c) after the definition of “specified” insert—
““temporary accommodation costs” , in relation to a decant from a relevant building, means—
(a) the costs of the temporary accommodation, and
(b) other costs resulting from the decant, including removal costs, storage costs and reasonable travel costs;
“works” means works—
(a) to remedy a relevant defect in a relevant building, or
(b) in connection with the taking of relevant steps in relation to such a defect.”
(7) The amendments made by this section apply—
(a) in relation to proceedings for a remediation contribution order under section 124 of the BSA 2022 which are pending on the day on which those amendments come into force (as well as proceedings for such an order which are commenced on or after that day);
(b) in relation to costs incurred before as well as after those amendments come into force.”—(Lee Rowley.)
This new clause amends provisions of the Building Safety Act 2022 which are about remediation contribution orders, to make it clear that a remediation contribution order may require payment in respect of the costs of taking relevant steps (see NC30), the costs of an expert report, and the costs of a temporary decant of tenants.
Brought up, and added to the Bill.
New Clause 33
Recovery of legal costs etc through service charge
“(1) Schedule 8 to the BSA 2022 (remediation costs under qualifying leases etc) is amended in accordance with subsections (2) and (3).
(2) After paragraph 9(1) insert—
“(1A) Sub-paragraph (1) does not apply to the extent that the service charge is payable to a management company in respect of legal or other professional services provided to the company in connection with an application or possible application by the company for or relating to a remediation contribution order under section 124.”
(3) After paragraph 9(2) insert—
“(3) In sub-paragraph (1A) “management company” means—
(a) a resident management company, or
(b) an RTM company within the meaning of Chapter 1 of Part 2 of the Commonhold and Leasehold Reform Act 2002 (right to manage).
(4) “Resident management company” means a body corporate which is party to a lease of a building where—
(a) the body corporate is limited by guarantee and the members of that body are tenants under leases of dwellings in the building (“leaseholders”), or
(b) the majority of the shares of the body corporate are held by leaseholders.”
(4) The amendments made by this section do not apply in relation to legal or other professional services provided before this section comes into force.”—(Lee Rowley.)
This new clause amends provision in the Building Safety Act 2022 which prevents legal costs etc relating to liability for building defects being passed onto leaseholders via the service charge. The change allows the recovery of such costs via the service charge if they are incurred by a resident management company in connection with obtaining a remediation contribution order.
Brought up, and added to the Bill.
New Clause 34
Repeal of section 125 of the BSA 2022
“(1) Omit section 125 of the BSA 2022 (meeting remediation costs of insolvent landlord).
(2) In consequence of that repeal—
(a) in section 116(1), for “125” substitute “124”;
(b) omit section 116(2)(e);
(c) in section 117(1), for “125” substitute “124”;
(d) in section 119(1), for “125” substitute “124”;
(e) in section 119A(9), for “125” substitute “124”;
(f) in section 120(1), for “125” substitute “124”;
(g) in section 121(1), for “125” substitute “124”;
(h) in section 164(1)(c), for “125” substitute “124”.”—(Lee Rowley.)
This new clause repeals section 125 of the Building Safety Act 2022, which contains provision about meeting the remediation costs of insolvent landlords.
Brought up, and added to the Bill.
New Clause 35
Higher-risk and relevant buildings: notifications in connection with insolvency
“Before section 126 of the BSA 2022 (and the italic heading before it) insert—
“Insolvency of certain persons with an interest in higher-risk and relevant buildings
125A Notifications by insolvency practitioners
(1) This section applies if an insolvency practitioner is appointed in relation to a responsible person for a higher-risk building or a relevant building.
(2) For the purposes of this section, a person is “a responsible person” for a building if—
(a) in the case of a higher-risk building, the person is an accountable person for the building (see section 72 for the meaning of “accountable person” for a higher-risk building);
(b) in the case of a relevant building that is not a higher-risk building, the person would be an accountable person for the building if section 72 were read as applying to such a building (and as if the reference in that section to a residential unit were a reference to a dwelling).
(3) The insolvency practitioner must give the information in subsection (6) (“the required information”) to—
(a) the local authority for the area in which the building for which the person is a responsible person is situated, or (if applicable) each local authority in whose area a building for which the person is a responsible person is situated, and
(b) the fire and rescue authority for the area in which the building for which the person is a responsible person is situated, or (if applicable) each fire and rescue authority in whose area a building for which the person is a responsible person is situated.
(4) If the insolvency practitioner is appointed in relation to an accountable person for a higher-risk building, the practitioner must also give the required information to the regulator.
(5) The required information must be provided within the period of 14 days beginning with the day on which the insolvency practitioner is appointed.
(6) The information is as follows—
(a) the name and address of the person in relation to whom the insolvency practitioner is appointed;
(b) the address of each higher-risk building or relevant building for which the person is a responsible person (but see subsection (7));
(c) an official copy of the register of title and title plan relating to each registered estate or interest the person holds in such a building, if any (but see subsection (7));
(d) the nature of the practitioner’s appointment;
(e) the practitioner’s name, address, telephone number and email address (if any);
(f) so much of the information set out in the table in rule 1.6 of the Insolvency (England and Wales) Rules 2016 (S.I. 2016/1024) as is known to the practitioner.
(7) A local authority or fire and rescue authority need only be notified about buildings, or registered estates or interests in buildings, in their area.
(8) In this section “insolvency practitioner” means—
(a) an administrator;
(b) an administrative receiver;
(c) a receiver appointed by the courts or by a mortgagee;
(d) a liquidator;
(e) a trustee in bankruptcy.
(9) In this section—
“fire and rescue authority” has the meaning given by section 30;
“higher-risk building” has the same meaning as in Part 4 (see section 65);
“local authority” has the meaning given by section 30;
“register of title” means the register kept under section 1 of the Land Registration Act 2002;
“the regulator” has the meaning given by section 2;
“relevant building” has the meaning given by section 117;
“title plan” means a plan based on the Ordnance Survey map and referred to in the register of title.””—(Lee Rowley.)
This new clause amends the Building Safety Act 2022 to impose a new duty on insolvency practitioners to notify the local authority and others in the case of insolvency of certain persons who have repairing obligations relating to certain kinds of buildings.
Brought up, and added to the Bill.
New Clause 42
Ban on grant or assignment of certain long residential leases of houses
“(1) A person may not grant or enter into an agreement to grant a long residential lease of a house on or after the day on which this section comes into force, unless it is a permitted lease (see section (Permitted leases)).
(2) A person may not assign or enter into an agreement to assign the whole or a part of a lease which was granted on or after the day on which this section comes into force if—
(a) at the time of the assignment the lease is a long residential lease of a house, but
(b) at the time of the grant the lease was not a long residential lease of a house.
(3) This section does not affect—
(a) the validity of a lease granted, or an assignment entered into, in breach of this section, and does not affect the powers of a person to grant or assign such a lease (whether under section 23(1) of the Land Registration Act 2002 or otherwise);
(b) any contractual rights of a party to an agreement entered into in breach of this section.”—(Lee Rowley.)
This new clause, to be inserted as the first clause of a new Part before Part 1, would ban the grant, and certain assignments, of long residential leases of houses, other than permitted leases.
Brought up, and added to the Bill.
New Clause 43
Long residential leases of houses
“(1) A lease is a “long residential lease of a house” if conditions A to C are met in relation to the lease.
(2) Condition A: the lease has a long term (see sections (Leases which have a long term) and (Series of leases whose terms would extend beyond 21 years)).
(3) Condition B: the lease demises one house (see section (Houses)), with or without appurtenant property, and nothing else.
(4) Condition C: the lease is a residential lease (see section (Residential leases)).”—(Lee Rowley.)
This new clause, to be inserted after NC42, would define “long residential lease of a house” for the purposes of the new Part before Part 1.
Brought up, and added to the Bill.
New Clause 44
Leases which have a long term
“(1) A lease has a “long term” in any of cases A to D.
(2) Case A: the lease is granted for a term certain exceeding 21 years.
(3) Case B: section 149(6) of the Law of Property Act 1925 applies to the lease (lease granted for life or until marriage or civil partnership) and the lease accordingly takes effect with a term fixed by law.
(4) Case C: the lease is granted with a covenant or obligation for perpetual renewal and accordingly takes effect with a term fixed by law - unless it is a sub-lease with a term fixed by law of 21 years or shorter.
(5) Case D: the lease is capable of forming part of a series of leases whose terms would extend beyond 21 years (see section (Series of leases whose term would extend beyond 21 years)).
(6) In determining whether a lease has a long term, it is irrelevant if the lease is, or may become, terminable by notice, re-entry or forfeiture.”—(Lee Rowley.)
This new clause, to be inserted after NC43, would define when a lease has a “long term” for the purposes of the new Part before Part 1.
Brought up, and added to the Bill.
New Clause 45
Series of leases whose term would extend beyond 21 years
“(1) A lease (“the original lease”) is “capable of forming part of a series of leases whose terms would extend beyond 21 years” if conditions A to C are met at the time when the original lease is granted.
(2) Condition A: the original lease does not have a long term under section (Leases which have a long term)(2), (3) or (4).
(3) Condition B: provision for the grant of another lease of the same house (the “new lease”) is included in—
(a) the original lease, or
(b) any related arrangements.
(4) Condition C: the total duration of—
(a) the term of the original lease,
(b) the term of the new lease (if granted), and
(c) the term or terms of any subsequent leases (if granted),
would exceed 21 years.
(5) In a case where the provision for the grant of the new lease, or for the grant of any subsequent lease, allows for the possibility of the term of the lease being one of a number of differing durations, the reference in condition C to the term of the lease is to the longest of those possible durations.
(6) A lease is a “lease of the same house” if the lease demises one house, being the house comprised in the original lease, with or without any appurtenant property, and nothing else.
(7) Arrangements are “related arrangements” if they are entered into in connection with the grant of the original lease (whether or not they are entered into in writing).
(8) A lease is a “subsequent lease” if—
(a) it is not the new lease,
(b) it is a lease of the same house, and
(c) provision for the grant of the lease—
(i) is included in the original lease or any related arrangements,
(ii) would be included in the new lease (if granted), or
(iii) would be included in any other lease that (if granted) would itself be a subsequent lease.”—(Lee Rowley.)
This new clause, to be inserted after NC44, would define when a lease is “capable of forming part of a series of leases whose terms would extend beyond 21 years” for the purposes of subsection (5) of NC44.
Brought up, and added to the Bill.
New Clause 46
Houses
“(1) A “house” is a separate set of premises (on one or more floors) which—
(a) forms the whole, or part, of a building, and
(b) is constructed or adapted for use for the purposes of a dwelling.
(2) But where the separate set of premises forms part of a building, it is not a house if the whole of or a material part of the set of premises lies above or below some other part of the building.”—(Lee Rowley.)
This new clause, to be inserted after NC45, would define a “house” for the purposes of the new Part before Part 1.
Brought up, and added to the Bill.
New Clause 47
Residential leases
“A lease is a “residential lease” if it is a lease of a house and the terms of the lease do not prevent the house from being occupied under that lease as a separate dwelling.”—(Lee Rowley.)
This new clause, to be inserted after NC46, would define a “residential lease” for the purposes of the new Part before Part 1.
Brought up, and added to the Bill.
New Clause 48
Permitted leases
“A lease is a “permitted lease” if—
(a) it is a long residential lease of a house, and
(b) it falls into one or more of the categories set out in Schedule (Categories of permitted lease).”—(Lee Rowley.)
This new clause, to be inserted after NC47, would define “permitted lease” for the purposes of the new Part before Part 1.
Brought up, and added to the Bill.
New Clause 49
Permitted leases: certification by the appropriate tribunal
“(1) The appropriate tribunal must, on an application by a person, issue a certificate (a “permitted lease certificate”) in relation to a new long residential lease of a house, where the tribunal is satisfied that the lease is or will be a permitted lease falling within Part 1 of Schedule (Categories of permitted lease).
(2) An application under this section may be made and determined whether or not the application includes a draft of the instrument creating the new lease.
(3) The appropriate tribunal may issue a permitted lease certificate on such terms and conditions as it considers appropriate, but the certificate must—
(a) identify the house or the land on which the house will be built, and
(b) state the category or categories set out in Part 1 of Schedule (Categories of permitted lease) into which the lease will fall.
(4) If an application under this section relates to two or more leases, the appropriate tribunal may issue just one certificate relating to some or all of those leases.”—(Lee Rowley.)
This new clause, to be inserted after NC48, would require the appropriate tribunal to issue a permitted lease certificate on an application if the tribunal is satisfied that a lease falls within certain categories of permitted lease.
Brought up, and added to the Bill.
New Clause 50
Permitted leases: marketing restrictions
“(1) This section applies in relation to the marketing of a house where—
(a) the house is to be comprised in a new lease, and
(b) the lease will be a long residential lease of the house.
(2) A person (“a promoter”) may not make any material marketing the house to be comprised in the lease available to any person, unless the permitted lease information relating to the lease is included in or provided with that material.
(3) The “permitted lease information”, in relation to a lease, means—
(a) if the lease falls or will fall into one or more of the categories set out in Part 1 of Schedule (Categories of permitted lease), a copy of the permitted lease certificate together with a statement identifying that category or those categories,
(b) if to the best of the knowledge and belief of the promoter at the time the material is made available the lease falls or will fall into one or more of the categories set out in Part 2 of Schedule (Categories of permitted lease), a statement identifying that category or those categories, or
(c) if both paragraphs (a) and (b) apply to the lease, the information required under both those paragraphs.
(4) “Marketing” includes any form of advertising or promotion.”—(Lee Rowley.)
This new clause, to be inserted after NC49, would impose restrictions on the marketing of long residential leases of houses.
Brought up, and added to the Bill.
New Clause 51
Permitted leases: transaction warning conditions
“(1) A person may not, on or after the day on which section (Ban on grant or assignment of certain long residential leases of houses) comes into force —
(a) enter into an agreement to grant a permitted lease unless the transaction warning conditions are met in relation to the agreement, or
(b) subject to subsection (5), grant a permitted lease unless the transaction warning conditions are met in relation to the lease.
(2) The “transaction warning conditions” are as follows—
(a) at least 7 days before the relevant date the grantor must give a warning notice relating to the permitted lease—
(i) to the proposed tenant, or
(ii) where there is more than one proposed tenant, to each of them;
(b) a notice of receipt of the warning notice must be given to the grantor—
(i) by the proposed tenant, or
(ii) where there is more than one proposed tenant, jointly by all of the proposed tenants;
(c) a reference to the warning notice and the notice of receipt must be included in or endorsed on the relevant instrument in the specified manner.
(3) A “warning notice” is a notice provided in a specified form and manner and containing—
(a) sufficient information to identify the house to be comprised in the lease,
(b) if the lease falls within Part 1 of Schedule (Categories of permitted lease), a copy of the permitted lease certificate,
(c) if the lease falls into one or more of the categories set out in Part 2 of Schedule (Categories of permitted lease), a statement identifying that category or those categories,
(d) if both paragraphs (b) and (c) apply to the lease, the information required under both those paragraphs, and
(e) such other information as may be specified.
(4) A “notice of receipt” is a notice provided in a specified form and manner and containing such information as may be specified.
(5) A person does not breach subsection (1) in relation to the grant of a lease if—
(a) the person previously entered into an agreement to grant that lease,
(b) the transaction warning conditions were met in relation to that agreement, and
(c) a reference to the warning notice and the notice of receipt relating to that agreement is included in or endorsed on the instrument creating the lease.
(6) This section does not apply to the grant of a permitted lease which falls within paragraph 5 of Schedule (Categories of permitted lease) (leases agreed before commencement).
(7) This section does not affect—
(a) the validity of a lease granted in breach of subsection (1), and does not affect the powers of a person to grant such a lease (whether under section 23(1) of the Land Registration Act 2002 or otherwise);
(b) any contractual rights of a party to an agreement entered into in breach of subsection (1).
(8) In this section—
“grantor” , in relation to a lease, means the person proposing to grant the lease (whether or not that person holds the freehold or leasehold title out of which the lease will be granted);
“proposed tenant” , in relation to a lease, means the proposed tenant of the house to be comprised in the lease;
“relevant date” means—
(a) in the case of an agreement to grant a lease, the day on which the agreement is entered into, and
(b) in the case of a grant of a lease, the day on which the lease is granted;
“relevant instrument” means—
(a) in the case of an agreement to grant a lease, that agreement, and
(b) in the case of a grant of a lease, the instrument creating that lease;
“specified” means specified or described in regulations made—
(a) in relation to a lease of a house in England, by the Secretary of State;
(b) in relation to a lease of a house in Wales, by the Welsh Ministers.
(9) A statutory instrument containing regulations under this section is subject to the negative procedure.”—(Lee Rowley.)
This new clause, to be inserted after NC50, would require certain warnings to be given to the prospective tenant under a permitted lease before it is granted or an agreement to grant the lease is entered into.
Brought up, and added to the Bill.
New Clause 52
Prescribed statements in new long leases
“(1) This section applies to a lease of land which—
(a) has a long term, and
(b) is granted on or after the day on which section (Ban on grant or assignment of certain long residential leases of houses) comes into force.
(2) If the lease is not a long residential lease of a house, the lease must include a statement to that effect.
(3) If the lease is a permitted lease, the lease must include a statement to that effect.
(4) A statement under subsection (2) or (3) must comply with such requirements as may be prescribed by land registration rules under the Land Registration Act 2002.
(5) This section does not apply to—
(a) a lease with a long term only by virtue of falling within section (Leases which have a long term)(5);
(b) a lease which takes effect as a deemed surrender and regrant of a lease.”—(Lee Rowley.)
This new clause, to be inserted after NC51, would require certain leases to contain statements that they are either not long residential leases of houses or that they are permitted leases.
Brought up, and added to the Bill.
New Clause 53
Restriction on title
“(1) Subsection (3) applies where—
(a) the Chief Land Registrar approves an application for registration of a lease (the “registered lease”),
(b) section (Prescribed statements in new long leases) applies to the registered lease, but
(c) the registered lease does not contain a statement made in accordance with subsection (2) or (3) of that section.
(2) An “application for registration of a lease” is an application for—
(a) registration of a disposition of registered land, if that disposition is the grant of a lease, or
(b) registration of a lease within section 4(1)(c) of the Land Registration Act 2002.
(3) The Chief Land Registrar must enter in the register a restriction that no registrable disposition, other than the grant of a legal charge, of the registered lease is to be registered.
(4) The restriction under subsection (3) may be removed if the registered lease is varied to include a statement made in accordance with section (Prescribed statements in new long leases)(2) or (3).
(5) Subsection (6) applies where—
(a) a restriction has been entered in the register in accordance with subsection (3) in relation to a registered lease, and
(b) the Chief Land Registrar approves an application for registration of a deed of variation relating to the lease by virtue of which a new lease takes effect as a deemed surrender and regrant of the lease.
(6) The Chief Land Registrar must enter in the register a restriction that no registrable disposition, other than the grant of a legal charge, of the new lease is to be registered.
(7) The restriction under subsection (6) may be removed if the Chief Land Registrar is satisfied that the new lease—
(a) is not a long residential lease of a house, or
(b) is a permitted lease.
(8) An expression used in this section and in the Land Registration Act 2002 has the same meaning in this section as in that Act.”—(Lee Rowley.)
This new clause, to be inserted after NC52, would require the Land Registry to enter restrictions on the disposition of land where requirements in NC52 are not met.
Brought up, and added to the Bill.
New Clause 54
Redress: right to acquire a freehold or superior leasehold estate
“(1) This section applies where a long residential lease of a house is granted or assigned in breach of section (Ban on grant or assignment of certain long residential leases of houses).
(2) The rights holder in relation to the lease has the right to acquire (for no consideration)—
(a) the freehold estate in the land comprised in the lease, and
(b) any superior leasehold estate or estates in that land.
(3) References in the rest of this section, and in sections (Redress: application of the right to acquire) to (Redress regulations: exercising and giving effect to the right to acquire), to the right to acquire are to be construed in accordance with subsection (2).
(4) The right to acquire the freehold or leasehold estate is exercisable against the person holding that estate for the time being (the “landlord”).
(5) The “rights holder”, in relation to a lease, means—
(a) in a case where a mortgagee or chargee has for the time being the right to deal with the house comprised in the lease, that person, or
(b) in any other case the tenant for the time being under the lease.
(6) In this section,
“superior leasehold estate” , in relation to a long residential lease of a house, means a leasehold estate that is superior to the long residential lease.”—(Lee Rowley.)
This new clause, to be inserted after NC53, would give a tenant under a lease granted or assigned in breach of NC42, or where relevant their mortgagee or chargee, the right to acquire the freehold and any superior lease of the land.
Brought up, and added to the Bill.
New Clause 55
Redress: application of the right to acquire
“(1) Section (Redress: right to acquire a freehold or superior leasehold estate) ceases to apply in relation to a long residential lease of a house if—
(a) the term of the lease expires (but see subsection (2)), or
(b) the lease otherwise ceases to exist.
(2) Where the term of the lease expires, section (Redress: right to acquire a freehold or superior leasehold estate) continues to apply for as long as the lease is continued under a relevant enactment.
(3) Section (Redress: right to acquire a freehold or superior leasehold estate) ceases to apply in relation to a long residential lease of a house if the tenant for the time being under the lease acquires the freehold estate and any superior leasehold estate or estates in the land comprised in the lease (whether or not by exercising the right to acquire).
(4) In subsection (2) “relevant enactment” means—
(a) Part 1 of the Landlord and Tenant Act 1954, or
(b) Schedule 10 to the Local Government and Housing Act 1989.”—(Lee Rowley.)
This new clause, to be inserted after NC54, would make provision for when the right to redress in NC54 ceases to apply.
Brought up, and added to the Bill.
New Clause 56
Redress: general provision
“(1) A lease to which section (Redress: right to acquire a freehold or superior leasehold estate) applies is not as a result of any right to acquire—
(a) registrable under the Land Charges Act 1972, or
(b) to be taken to be an estate contract within the meaning of that Act.
(2) An agreement relating to a long residential lease of a house (whether or not contained in the instrument creating the lease or made before the grant of the lease) is of no effect to the extent that it makes provision—
(a) excluding or modifying the right to acquire, or
(b) providing for the surrender or termination of the lease, or for the imposition of any penalty, in the event of the rights holder taking steps to exercise the right to acquire.
(3) Subsection (2) does not prevent a tenant under a long residential lease of a house from—
(a) surrendering the lease,
(b) terminating the lease, or
(c) entering into an agreement to acquire the freehold estate in the land comprised in the lease, or any superior leasehold estate or estates in that land, other than by way of exercising the right to acquire.
(4) The right to acquire in relation to a long residential lease of a house is not capable of subsisting apart from the lease.
(5) In this section, “rights holder” has the meaning given by section (Redress: right to acquire a freehold or superior leasehold estate).”—(Lee Rowley.)
This new clause, to be inserted after NC55, would make general provision in relation to the right to redress in NC54.
Brought up, and added to the Bill.
New Clause 57
Redress regulations: exercising and giving effect to the right to acquire
“(1) The Secretary of State may by regulations (“redress regulations”) make provision for and in connection with the exercise of the rights holder’s right to acquire in relation to a long residential lease of a house.
(2) Redress regulations may, in particular, include provision for or in connection with—
(a) the period within which the right to acquire must be exercised;
(b) the giving of notice by the rights holder to the landlord or any other specified person for the purpose of exercising the right to acquire (including the form and manner in which, and the period within which, any such notice must be given);
(c) registration under the Land Charges Act 1972 or the Land Registration Act 2002 of any notice given by virtue of paragraph (b);
(d) the giving of notice by the landlord to the rights holder or any other specified person for the purpose of accepting or rejecting the rights holder’s right to acquire (including the form and manner in which, and the period within which, any such notice must be given);
(e) the making by the appropriate tribunal or a court of an order on an application by a specified person determining whether or not, in the absence of agreement between the rights holder and the landlord, the rights holder has the right to acquire (including provision for the order to be made subject to such terms and conditions as the tribunal or court considers appropriate, including terms about costs);
(f) further steps that must be taken by the rights holder (including the provision of specified information or specified documents), and any conditions that must be met in relation to the taking of those further steps (including conditions about timing), in order to exercise the right to acquire;
(g) requirements that must be met in relation to a conveyance executed to give effect to the right to acquire (a “relevant conveyance”), including requirements for the conveyance to include specified provisions in respect of specified easements or rights over property, rights of way or covenants (positive or restrictive);
(h) any other requirements that must be met in relation to a relevant conveyance, including a requirement that the conveyance is granted free of specified incumbrances, and subject to such burdens as may be specified;
(i) the effect of the execution of a relevant conveyance, including provision for the conveyance to have the effect of discharging the house comprised in the lease from any specified incumbrance (including a charge);
(j) any statement which must be included in a relevant conveyance, including a statement identifying the conveyance as executed for the purposes of this Part, and any requirements that must be met in relation to such a statement (including any requirements prescribed by land registration rules under the Land Registration Act 2002);
(k) the making by the appropriate tribunal or a court of an order (a “relevant order”) on an application by a specified person for the purpose of giving effect to the right to acquire (whether or not in connection with an application to the appropriate tribunal or a court for a determination as described in paragraph (e));
(l) the modification of the right to acquire in relation to any appurtenant property comprised in the lease (including for the rights holder to continue to hold a lease of such property, or conferring on them a right to use the property);
(m) the circumstances in which the rights holder exercising the right to acquire is to be treated as a purchaser for value of the legal estate of the land comprised in the lease;
(n) the circumstances in which a mortgagee or chargee is to be treated for the purposes of section (Redress: right to acquire a freehold or superior leasehold estate)(5)(a) as having the right to deal with the house comprised in the lease;
(o) in a case where the rights holder is a tenant for the time being under the lease—
(i) the circumstances in which a representative of the rights holder has the right to acquire instead of that tenant, and
(ii) the exercise by such a representative of any powers or duties of a rights holder conferred or imposed by this Part or under redress regulations;
(p) the liability for specified costs in connection with the exercise of the right to acquire (including provision as to how to calculate such costs or for the amount of any costs payable to be determined, in the absence of agreement, by the appropriate tribunal or a court);
(q) proceedings for the recovery by specified persons from the landlord who granted the lease of compensation for any loss or damage resulting from the breach of section (Ban on grant or assignment of certain long residential leases of houses), including provision as to how to calculate the value of such loss or damage, and conferring powers on the appropriate tribunal or a court in connection with the recovery of such compensation (including provision as to costs).
(3) Provision under subsection (2)(k) may, in particular, include provision—
(a) for the making of a relevant order where the landlord cannot be found or identified, including where the rights holder has been unable to give notice for the purpose of exercising the right to acquire;
(b) for a relevant order to determine the content of a relevant conveyance and who may execute it, and to be made subject to such further terms and conditions as the appropriate tribunal or court considers appropriate, including terms about costs.
(4) Redress regulations may include provision about cases where the rights holder’s right to acquire in relation to a lease is exercisable in relation to more than one landlord, including (but not limited to) provision—
(a) for or in connection with functions to be carried out by one landlord (the “reversioner”) on behalf of the other landlords;
(b) for the landlord holding the freehold estate to be the reversioner;
(c) for another landlord to be the reversioner in specified circumstances;
(d) for or in connection with the appointment or removal of a reversioner by order of the appropriate tribunal or a court, on an application by a specified person;
(e) for things done by the reversioner to be binding on the other landlords and on their interests in the land comprised in the lease;
(f) for or in connection with the provision of information, documents or other assistance by other landlords to the reversioner for the purpose of enabling the reversioner to carry out functions under redress regulations;
(g) for the indemnification of the reversioner against any liability incurred by the reversioner in consequence of failure by other landlords to comply with any requirement imposed on them by redress regulations;
(h) excluding the reversioner from liability to any of the other landlords in specified circumstances;
(i) for or in connection with the making of an order by the appropriate tribunal or a court, on an application by the reversioner, directing how the right to acquire may be given effect if any of the other landlords cannot be found or identified, or in case of a dispute between the reversioner and any other landlord.
(5) Redress regulations may—
(a) apply or incorporate (with or without modifications) any provision made by or under any relevant enactment;
(b) amend or repeal any provision made by an Act.
(6) A statutory instrument containing redress regulations is subject to the negative procedure.
(7) In this section—
“incumbrances” has the same meaning as in section 9 of the LRA 1967;
“landlord” has the meaning given by section (Redress: right to acquire a freehold or superior leasehold estate);
“relevant enactment” means—
(a) the LRA 1967;
(b) the LRHUDA 1993;
(c) the Tribunals, Courts and Enforcement Act 2007;
“representative” , in relation to a rights holder, means the personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to that person;
“rights holder” has the meaning given by section (Redress: right to acquire a freehold or superior leasehold estate);
“specified” means specified or described in redress regulations.” —(Lee Rowley.)
This new clause, to be inserted after NC56, would allow the Secretary of State to make regulations giving effect to the right to acquire under NC54.
Brought up, and added to the Bill.
New Clause 58
Enforcement by trading standards authorities
“(1) It is the duty of every local weights and measures authority in England or Wales (an “enforcement authority”) to enforce the leasehold house restrictions in its area.
(2) In this section and in sections (Financial penalties) to (Further powers and duties of enforcement authorities) the “leasehold house restrictions” means—
(a) section (Ban on grant or assignment of certain long residential leases of houses)(1) so far as it relates to an agreement to grant a lease,
(b) section (Ban on grant or assignment of certain long residential leases of houses)(1) so far as it relates to the grant of a lease,
(c) section (Ban on grant or assignment of certain long residential leases of houses)(2) so far as it relates to an agreement to assign a lease,
(d) section (Ban on grant or assignment of certain long residential leases of houses)(2) so far as it relates to the assignment of a lease,
(e) section (Permitted leases: marketing restrictions)(2) (marketing restrictions on permitted leases),
(f) section (Permitted leases: transaction warning conditions)(1)(a) (conditions on agreement to grant permitted lease), and
(g) section (Permitted leases: transaction warning conditions)(1)(b) (conditions on grant of permitted lease).
(3) For the purposes of this section and sections (Financial penalties) to (Further powers and duties of enforcement authorities), a breach of a leasehold house restriction is taken to occur in the area in which the house in question is located (and if the house is located in more than one area, the breach is taken to have occurred in each of those areas).
(4) The duty in subsection (1) is subject to sections (Financial penalties: cross-border enforcement)(4) (enforcement by another enforcement authority) and (Enforcement by lead enforcement authority) (enforcement by the lead enforcement authority).”—(Lee Rowley.)
This new clause, to be inserted after NC57, provides for local weights and measures authorities to enforce the specified provisions restricting the grant or assignment of, or agreement to grant or assign, long residential leases of houses (referred to in the enforcement provisions as “the leasehold house restrictions”).
Brought up, and added to the Bill.
New Clause 59
Financial penalties
“(1) An enforcement authority may impose a financial penalty on a person if the authority is satisfied beyond reasonable doubt that the person has breached a leasehold house restriction.
(2) The amount of a penalty for a breach is to be such amount as the authority determines but—
(a) is not to be less than £500, and
(b) is not to be more than £30,000.
(3) Conduct within any one of the following paragraphs is to be regarded as a single breach of one leasehold house restriction—
(a) entering into an agreement to grant a lease in breach of section (Ban on grant or assignment of certain long residential leases of houses)(1) and subsequently granting the lease in breach of that provision;
(b) entering into an agreement to assign a lease in breach of section (Ban on grant or assignment of certain long residential leases of houses)(2) and subsequently assigning the lease in breach of that provision;
(c) entering into an agreement to grant a lease in breach of section (Permitted leases: transaction warning conditions)(1)(a) and subsequently granting the lease in breach of section (Permitted leases: transaction warning conditions)(1)(b).
Subsection (5) is to be read in accordance with this subsection.
(4) A person who makes marketing material available in relation to the same lease on more than one occasion in breach of section (Permitted leases: marketing restrictions)(2) is to be regarded as committing only one breach of that provision.
(5) The following are to be regarded as separate breaches—
(a) breaches by the same person of the same leasehold house restriction in relation to different leases, and
(b) breaches by the same person of different leasehold house restrictions in relation to the same lease,
and accordingly an enforcement authority may impose a separate penalty in relation to each breach (or may impose a single penalty of an amount equal to the total of the amounts of the penalties that could have been separately imposed).
(6) The Secretary of State may by regulations amend an amount for the time being specified in subsection (2) to reflect a change in the value of money.
(7) A statutory instrument containing regulations under subsection (6) is subject to the negative procedure.
(8) Schedule (Leasehold houses: financial penalties) contains further provision about financial penalties under this section.”—(Lee Rowley.)
This new clause, to be inserted after NC58, gives local weights and measures authorities powers to impose financial penalties for breach of the leasehold house restrictions.
Brought up, and added to the Bill.
New Clause 60
Financial penalties: cross-border enforcement
“(1) An enforcement authority may impose a penalty under section (Financial penalties) in respect of a breach of a leasehold house restriction which occurs outside that authority’s area (as well as in respect of a breach which occurs within that area).
(2) If an enforcement authority (“LA1”) proposes to impose a penalty in respect of a breach which occurred in the area of a different enforcement authority (“LA2”), LA1 must notify LA2 that it proposes to do so.
(3) If LA1 notifies LA2 under subsection (2) but does not impose the penalty, LA1 must notify LA2 of that fact.
(4) If an enforcement authority receives a notification under subsection (2), the authority is relieved of its duty under section (Enforcement by trading standards authorities)(1) in relation to the breach unless the authority receives a notification under subsection (3).
(5) If an enforcement authority (“LA1”) imposes a penalty in respect of a breach which occurred in the area of a different enforcement authority (“LA2”), LA1 must notify LA2 of that fact.”—(Lee Rowley.)
This new clause, to be inserted after NC59, makes provision in connection with enforcement of the leasehold house restrictions across local authority boundaries.
Brought up, and added to the Bill.
New Clause 61
Lead enforcement authority
“(1) In this section and in sections (General duties of lead enforcement authority) to (Further powers and duties of enforcement authorities) “lead enforcement authority” means—
(a) the Secretary of State, or
(b) a person whom the Secretary of State has arranged to be the lead enforcement authority in accordance with subsection (2).
(2) The Secretary of State may make arrangements for a local weights and measures authority in England or Wales to be the lead enforcement authority instead of the Secretary of State.
(3) The arrangements—
(a) may include provision for payments by the Secretary of State;
(b) may include provision about bringing the arrangements to an end.
(4) The Secretary of State may by regulations make transitional or saving provision which applies when there is a change in the lead enforcement authority.
(5) The regulations may relate to a specific change in the lead enforcement authority or to changes that might arise from time to time.
(6) A statutory instrument containing regulations under subsection (4) is subject to the negative procedure.”—(Lee Rowley.)
This new clause, to be inserted after NC60, requires the Secretary of State, or a local weights and measures authority with which the Secretary of State makes arrangements, to be the lead enforcement authority in relation to the leasehold house restrictions.
Brought up, and added to the Bill.
New Clause 62
General duties of lead enforcement authority
“(1) It is the duty of the lead enforcement authority to oversee the operation of the relevant provisions of this Part in England and Wales.
(2) The “relevant provisions of this Part” means the provisions of this Part except sections (Prescribed statements in new long leases) and (Restriction on title) (statements in leases and restriction on title).
(3) It is the duty of the lead enforcement authority to issue guidance to enforcement authorities about their enforcement of the leasehold house restrictions (and if the lead enforcement authority is not the Secretary of State, the Secretary of State may give directions as to the content of the guidance).
(4) It is the duty of the lead enforcement authority to provide information and advice to the public in England and Wales about the operation of the relevant provisions of this Part, in such form and manner as it considers appropriate.
(5) The lead enforcement authority may disclose information to an enforcement authority for the purposes of enabling that authority to determine whether there has been a breach of a leasehold house restriction.
(6) If the lead enforcement authority is not the Secretary of State, the lead enforcement authority must keep under review and from time to time advise the Secretary of State about—
(a) the operation of the relevant provisions of this Part, and
(b) social and commercial developments relating to the grant or assignment of long residential leases of houses in England and Wales.”—(Lee Rowley.)
This new clause, to be inserted after NC61, gives the lead enforcement authority (see NC61) general functions in relation to the enforcement of the leasehold house restrictions.
Brought up, and added to the Bill.
New Clause 63
Enforcement by lead enforcement authority
“(1) The lead enforcement authority may—
(a) take steps to enforce the leasehold house restrictions if it considers it is necessary or expedient to do so;
(b) for that purpose, exercise any powers that an enforcement authority may exercise for the purpose of the enforcement of the leasehold house restrictions.
(2) If the lead enforcement authority proposes to take steps in respect of a breach (or suspected breach) of a leasehold house restriction, it must notify the enforcement authority for the area in which the breach occurred (or may have occurred) that it proposes to do so.
(3) If the lead enforcement authority notifies an enforcement authority under subsection (2) but does not take the proposed steps, the lead enforcement authority must notify the enforcement authority of that fact.
(4) If an enforcement authority receives a notification under subsection (2), the authority is relieved of its duty under section (Enforcement by trading standards authorities)(1) in relation to the breach unless the authority receives a notification under subsection (3).
(5) But the lead enforcement authority may require the enforcement authority to assist the lead enforcement authority in taking steps to enforce the leasehold house restriction referred to in subsection (2).”—(Lee Rowley.)
This new clause, to be inserted after NC62, provides that the lead enforcement authority is able to enforce the leasehold house restrictions itself if necessary or expedient.
Brought up, and added to the Bill.
New Clause 64
Further powers and duties of enforcement authorities
“(1) An enforcement authority must notify the lead enforcement authority if the enforcement authority believes that a breach of a leasehold house restriction has occurred in its area.
(2) An enforcement authority must report to the lead enforcement authority, whenever the lead enforcement authority requires and in such form and with such particulars as it requires, on that enforcement authority’s enforcement of the leasehold house restrictions.
(3) An enforcement authority must have regard to the guidance issued under section (General duties of lead enforcement authority)(3).
(4) For the investigatory powers available to an enforcement authority for the purposes of enforcing a leasehold house restriction, see Schedule 5 to the Consumer Rights Act 2015 (investigatory powers of enforcers etc).
(5) In paragraph 10 of Schedule 5 to the Consumer Rights Act 2015 (duties and powers to which Schedule 5 applies), at the appropriate places insert—
(a) “section (Enforcement by trading standards authorities) of the Leasehold and Freehold Reform Act 2024;”;
(b) “section (Enforcement by lead enforcement authority) of the Leasehold and Freehold Reform Act 2024”.
(6) See also paragraph 44 of Schedule 5 to the Consumer Rights Act 2015 (exercise of functions outside enforcer’s area).”—(Lee Rowley.)
This new clause, to be inserted after NC63, makes further provision about the enforcement of the leasehold house restrictions, including by providing for the investigatory powers in the Consumer Rights Act 2015 to be available to local weights and measures authorities enforcing the regime.
Brought up, and added to the Bill.
New Clause 65
Power to amend: permitted leases and definitions
“(1) The Secretary of State may by regulations—
(a) amend the following definitions—
(i) “long residential lease of a house” in section (Long residential leases of houses);
(ii) a lease which has a “long term” in section (Leases which have a long term);
(iii) “house” in section (Houses);
(b) amend Schedule (Categories of permitted lease).
(2) A statutory instrument containing (whether alone or with other provision)—
(a) regulations under subsection (1)(a), or
(b) regulations under subsection (1)(b) which add a category of lease to Schedule (Categories of permitted lease) or omit a category of lease from that Schedule,
is subject to the affirmative procedure.
(3) Any other statutory instrument containing regulations under subsection (1)(b) is subject to the negative procedure.
(4) See also the powers to make regulations under paragraphs 2(1)(b), 3(1)(b), 6(2) and 7(1)(b) of Schedule (Categories of permitted lease).
(5) The provision that may be made by regulations under this section by virtue of section 86(1) (consequential etc provision) includes provision amending or repealing any provision of this Part.”—(Lee Rowley.)
This new clause, to be inserted after NC64, would allow the Secretary of State to make regulations to amend certain definitions and categories of permitted lease in the new Part before Part 1.
Brought up, and added to the Bill.
New Clause 66
Interpretation of Part A1
“(1) In this Part—
“appropriate tribunal” means—
(a) in relation to a lease of a house in England, the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal; and
(b) in relation to a lease of a house in Wales, a leasehold valuation tribunal;
“appurtenant property” , in relation to a house, means any garage, outhouse, garden, yard or appurtenances belonging to, or usually enjoyed with, the house;
“enforcement authority” means a local weights and measures authority in England or Wales;
“house” : see section (Houses);
“lead enforcement authority” has the meaning given by section (Lead enforcement authority);
“lease” —
(a) means a lease at law or in equity (and references to the grant or assignment of a lease are to be construed accordingly);
(b) includes a sub-lease;
(c) does not include a mortgage term;
“leasehold house restrictions” has the meaning given by section (Enforcement by trading standards authorities)(2);
“long residential lease of a house” : see section (Long residential leases of houses);
“long term” , in relation to a lease: see section (Leases which have a long term);
“notify” means notify in writing, and “notification” is to be construed accordingly;
“permitted lease” : see section (Permitted leases);
“permitted lease certificate” means a certificate issued by the appropriate tribunal under section (Permitted leases: certification by the appropriate tribunal);
“residential lease” : see section (Residential leases).
(2) In this Part, references to the grant of a lease in relation to a lease which takes effect as a deemed surrender and regrant of a lease are to the regrant of the lease.”—(Lee Rowley.)
This new clause, to be inserted after NC65, would contain interpretation provision for the new Part before Part 1.
Brought up, and added to the Bill.
New Clause 1
Estate management services
“(1) Within three months of the passage of this Act, the Secretary of State must by regulation provide for residents of managed dwellings to take ownership, at nominal cost, of—
(a) an estate management company, or
(b) the assets of an estate management company, or other company or business connected with the development or management of the dwellings, which are used to provide services to managed dwellings
if the estate management company or connected company or business does not—
(i) provide the residents of the managed dwellings with a copy of its budget for the forthcoming year and accounts for the past year;
(ii) give sufficient notice to enable residents to attend its annual meeting;
(iii) acknowledge correspondence sent by registered post to its registered office within a reasonable length of time.
(2) Regulations under subsection (1) may amend primary legislation.”—(Helen Morgan.)
Brought up.
Question put, That the clause be added to the Bill.
18:01

Division 80

Ayes: 14


Liberal Democrat: 8
Plaid Cymru: 2
Conservative: 1
Independent: 1
Alliance: 1
Green Party: 1

Noes: 304


Conservative: 297
Democratic Unionist Party: 6
Independent: 1

New Clause 5
Abolition of forfeiture of a long lease
“(1) This section applies to any right of forfeiture or re-entry in relation to a dwelling held on a long lease which arises either—
(a) under the terms of that lease; or
(b) under or in consequence of section 146(1) of the Law of Property Act 1925.
(2) The rights referred to in subsection (1) are abolished.
(3) In this section—
“dwelling” means a building or part of a building occupied or intended to be occupied as a separate dwelling, together with any yard, garden, or outhouses and appurtenances belonging to it or usually enjoyed with it;
“lease” means a lease at law or in equity and includes a sub-lease, but does not include a mortgage term;
“long lease” has the meaning given by sections 76 and 77 of the Commonhold and Leasehold Reform Act 2002.”—(Matthew Pennycook.)Brought up.
Question put,The clause be added to the Bill.
18:16

Division 81

Ayes: 169


Labour: 151
Liberal Democrat: 10
Independent: 5
Plaid Cymru: 2
Alliance: 1
Green Party: 1

Noes: 306


Conservative: 296
Democratic Unionist Party: 6
Independent: 1

New Clause 39
Rights of first refusal on disposal of freehold homes
“(1) Within three months of the passage of this Act, the Secretary of State must by regulations provide for the rights of first refusal granted to qualifying tenants of flats by Part 1 of the Landlord and Tenant Act 1987 to be extended to tenants of freehold houses.
(2) Regulations under subsection (1)—
(a) may amend primary legislation;
(b) are subject to the affirmative procedure (but see subsection (3)).
(3) If before approving a draft of regulations under subsection (1) both Houses of Parliament have agreed amendments to that draft, the Secretary of State must make the regulations in the form of the draft as so amended.”—(Mr Betts.)
Brought up.
Question put, That the clause be added to the Bill.
18:29

Division 82

Ayes: 179


Labour: 150
Liberal Democrat: 10
Democratic Unionist Party: 6
Independent: 5
Conservative: 2
Plaid Cymru: 2
Alliance: 1
Green Party: 1

Noes: 294


Conservative: 293
Independent: 1

Clause 8
Lease extensions under the LRA 1967 on payment of premium at peppercorn rent
Amendments made: 24, page 11, line 9, leave out from “rent” to end of line 11 and insert—
“(2A) But if the existing tenancy is a shared ownership lease, the rent payable for the house and premises under the new tenancy is as follows (and subsection (2) does not apply)—
(a) if the existing tenancy provides for rent to be payable in respect of the landlord’s share in the house and premises, subsection (1) applies to the terms of the new tenancy relating to that rent;
(b) whether or not the existing tenancy provides for rent to be payable in respect of the tenant’s share in the house and premises, the new tenancy must provide that, as from the date it is granted, a peppercorn rent is payable in respect of the tenant’s share;
and a reference in any enactment (whenever passed or made) to rent payable in accordance with subsection (2) includes a reference to the rent payable in accordance with this subsection.
(2B) For the purposes of subsection (2A), if the existing tenancy does not reserve separate rents in respect of the tenant’s share in the house and premises and the landlord’s share in the house and premises, any rent reserved is to be treated as reserved in respect of the landlord’s share.
(2C) In this section “peppercorn rent” has the same meaning as in the Leasehold Reform (Ground Rent) Act 2022 — see section 4(3) of that Act.”;”.
This provides that, where a shared ownership lease is extended under the LRA 1967, only the rent payable in respect of the tenant’s share will be a peppercorn rent (and the rent payable in respect of the landlord’s share will be on the same terms as in the existing tenancy).
Amendment 25, page 11, line 25, at end insert—
“(4A) In section 31(2)(a) (ecclesiastical property), omit “or rent”.”—(Lee Rowley.)
This amendment would make provision that is consequential on the rest of clause 8.
Clause 9
LRA 1967: determining price payable for freehold or lease extension
Amendment made: 26, page 11, line 36, leave out subsection (2).—(Lee Rowley.)
This amendment is consequential on Amendment 60.
Clause 10
LRHUDA 1993: determining price payable for collective enfranchisement or new lease
Amendments made: 27, page 12, line 16, after “freehold” insert “and other interests”.
This amendment would clarify that the valuation mechanism in clause 11 and Schedule 2 extends to the acquisition of other interests in a collective enfranchisement, not just the freehold.
Amendment 28, page 12, line 19, after “lease)” insert “—.
This amendment is consequential on Amendment 29.
Amendment 29, page 12, line 23, at end insert—
“(b) after subsection (1) insert—
“(1A) But if the existing lease is a shared ownership lease, the rent payable under the new lease of the flat is as follows (and subsection (1) does not apply for the purpose of specifying the rent under the new lease)—
(a) whether or not the existing lease provides for rent to be payable in respect of the tenant’s share in the flat, the new lease must provide for a peppercorn rent to be payable in respect of the tenant’s share;
(b) if the existing lease provides for rent to be payable in respect of the landlord’s share in the flat, section 57(1) applies to the terms of the new lease relating to that rent;
and a reference in any enactment (whenever passed or made) to rent payable in accordance with subsection (1) includes a reference to the rent payable in accordance with this subsection.
(1B) For the purposes of subsection (1A), if the existing lease does not reserve separate rents in respect of the tenant’s share in the flat and the landlord’s share in the flat, any rent reserved is to be treated as reserved in respect of the landlord’s share.””—(Lee Rowley.)
This provides that, where a shared ownership lease is extended under the LRHUDA 1993, only the rent payable in respect of the tenant’s share will be a peppercorn rent (and the rent payable in respect of the landlord’s share will be on the same terms as in the existing tenancy).
Clause 11
Enfranchisement or extension: new method for calculating price payable
Amendment made: 30, page 13, line 5, after “on” insert “sections 9 and 10,”.—(Lee Rowley.)
This amendment would clarify that the amendments in Schedule 5 are consequential on clauses 9 and 10 as well as clause 11 and Schedules 2 to 4.
Clause 12
Costs of enfranchisement and extension under the LRA 1967
Amendments made: 31, page 16, leave out line 18.
This is consequential on Amendment 63.
Amendment 32, page 17, leave out line 12.
This is consequential on Amendment 63.
Amendment 33, page 17, leave out line 37.
This is consequential on Amendment 63.
Amendment 34, page 18, line 14, at end insert—
“(za) in section 9(5)(c) (landlord’s lien as vendor), for “him” substitute “the tenant”;
(zb) in section 14(3)(c) (conditions for grant of extended lease), for “him” substitute “the tenant”;”.—(Lee Rowley.)
This amendment would make provision that is consequential on amendments to the LRA 1967 in clause 12(2)(c) and (4)(b).
Clause 20
LRA 1967: preservation of existing law for certain enfranchisements
Amendments made: 35, page 38, line 33, at beginning insert “(1)”.
This is consequential on Amendment 36 (which adds new subsections to the new section 7A inserted into the LRA 1967).
Amendment 36, page 39, line 2, at end insert—
“(2) If—
(a) a person makes a claim to acquire a freehold under the preserved law, and
(b) as a result of that claim, further notices by that person are void by virtue of a statutory bar under the preserved law,
only further notices making claims under the preserved law are void by virtue of that statutory bar.
(3) In subsection (2)—
“preserved law” means this Part as it has effect (by virtue of subsection (1)) without the amendments made by the Leasehold and Freehold Reform Act 2024;
“statutory bar” means—
(a) section 9(3)(b), or
(b) an order under section 20(6) or paragraph 4(3) of Schedule 3.”—(Lee Rowley.)
This deals with cases where a tenant makes a “preserved law claim” (under the LRA 1967 as unamended by the Bill), and it results in the tenant being prevented from making a further claim for a certain period. Only a further preserved law claim is prevented.
Clause 35
Limits on rights of landlords to claim litigation costs from tenants
Amendments made: 37, page 61, line 38, at end insert—
“(8A) A reference in this section to proceedings concerning a lease includes—
(a) proceedings concerning any matter arising out of—
(i) the existence of the lease,
(ii) any term of the lease, or
(iii) any agreement or arrangement entered into in connection with the lease;
(b) proceedings concerning any enactment relevant to—
(i) the lease, or
(ii) any agreement or arrangement entered into in connection with the lease;
(c) proceedings that otherwise have a connection with the lease.”
This amendment would clarify which proceedings concern a lease for the purpose of the new section 20CA of the Landlord and Tenant Act 1985.
Amendment 38, page 63, line 38, at end insert—
“(8) The reference in the definition of “relevant proceedings” to proceedings concerning a lease includes—
(a) proceedings concerning any matter arising out of—
(i) the existence of the lease,
(ii) any term of the lease, or
(iii) any agreement or arrangement entered into in connection with the lease;
(b) proceedings concerning any enactment relevant to—
(i) the lease, or
(ii) any agreement or arrangement entered into in connection with the lease;
(c) proceedings that otherwise have a connection with the lease.”—(Lee Rowley.)
This amendment would clarify which proceedings concern a lease for the purpose of the new paragraph 5B of Schedule 11 to the Commonhold and Leasehold Reform Act 2002.
Clause 36
Right of tenants to claim litigation costs from landlords
Amendments made: 39, page 65, line 15, at end insert—
“(6A) A reference in this section to proceedings concerning a lease includes—
(a) proceedings concerning any matter arising out of—
(i) the existence of the lease,
(ii) any term of the lease, or
(iii) any agreement or arrangement entered into in connection with the lease;
(b) proceedings concerning any enactment relevant to—
(i) the lease, or
(ii) any agreement or arrangement entered into in connection with the lease;
(c) proceedings that otherwise have a connection with the lease.”
This amendment would clarify which proceedings concern a lease for the purpose of the new section 30J of the Landlord and Tenant Act 1985.
Amendment 40, page 65, line 25, leave out subsection (2).—(Lee Rowley.)
This amendment is consequential on NC26.
Clause 40
Leasehold sales information requests
Amendment made: 41, page 72, line 13, leave out subsection (2).—(Lee Rowley.)
This amendment is consequential on NC26.
Clause 70
Part 4: application to government departments
Amendment made: 42, page 93, line 27, leave out clause 70.—(Lee Rowley.)
This amendment is consequential on NC27.
Clause 75
Approval and designation of redress schemes
Amendments made: 43, page 98, line 5, leave out from “for” to “to” on line 7 and insert
“the appointment of an individual”.
This amendment would allow regulations about approval or designation conditions for redress schemes to make wider provision about the appointment of an individual responsible for overseeing and monitoring the investigation and determination of complaints under a redress scheme than is currently permitted under clause 75(3)(a).
Amendment 44, page 98, line 9, at end insert—
“(aa) about the terms and conditions of that individual and the termination of their appointment;”
This amendment would require regulations about approval or designation conditions for redress schemes to include provision about the terms and conditions of the individual responsible for overseeing and monitoring the investigation and determination of complaints under a redress scheme, and the termination of their appointment.
Amendment 45, page 98, line 20, leave out
“under other schemes for providing redress”
and insert
“in relation to other kinds of complaint”.
This amendment would widen the power to require co-operation by redress schemes in clause 75(3)(e) so it is not limited to co-operation with redress schemes but also co-operation in relation to other kinds of complaint.
Amendment 46, page 98, line 31, after first “of” insert
“, and the investigation and determination of complaints under,”.
This amendment would clarify that regulations about approval or designation conditions for redress schemes must provide for fee income to be sufficient to meet the costs of investigation and determination of complaints under voluntary aspects of a redress scheme (where those aspects exist).
Amendment 47, page 99, line 40, after “scheme” insert
“and the investigation and determination of complaints under those aspects of the scheme”.
This amendment would allow regulations under clause 75(6) to make provision requiring fees payable by a compulsory member of a redress scheme to be referable to costs incurred, or to be incurred, in the investigation and determination of complaints under the compulsory aspects of the scheme (as well as their administration).
Amendment 48, page 99, line 42, leave out from “may” to end of line 43 and insert “—
(a) confer functions (including functions involving the exercise of discretion) on the lead enforcement authority, or authorise or require a scheme to do so;
(b) provide for the delegation of such functions by the lead enforcement authority, or authorise or require a scheme to provide for that.”—(Lee Rowley.)
This amendment would allow regulations under clause 75 to confer functions on the lead enforcement authority (whether or not they involve a discretion) and make provision for the delegation of such functions.
Clause 87
Extent
Amendment made: 85, page 109, line 12, at end insert “, subject to subsection (2).
(2) Section (Further powers and duties of enforcement authorities)(5) extends to England and Wales, Scotland and Northern Ireland.”—(Lee Rowley.)
This amendment amends the extent clause of the Bill in connection with amendments made by NC64.
Clause 88
Commencement
Amendment made: 49, page 109, line 15, leave out subsection (2) and insert—
“(2) The following provisions come into force at the end of the period of two months beginning with the day on which this Act is passed—
(a) section 83 (regulation of remedies for rentcharge arrears);
(b) section (Recovery of legal costs etc through service charge) (recovery of legal costs etc through service charge);
(c) section (Repeal of section 125 of the BSA 2022) (repeal of section 125 of the BSA 2022);
(d) section (Higher-risk and relevant buildings: notifications in connection with insolvency) (higher-risk and relevant buildings: notifications in connection with insolvency).”—(Lee Rowley.)
This amendment revises the commencement clause of the Bill so as to ensure that specified proposed new clauses concerning building safety and the insolvency of persons who have repairing obligations relating to certain kinds of buildings come into force two months after the Bill receives Royal Assent.
New Schedule 1
Part 5: amendments to other Acts
“Local Government Act 1974
1 (1) The Local Government Act 1974 is amended in accordance with paragraphs 2 to 5.
2 (1) Section 33 (consultation between Local Commissioner and other Commissioners and Ombudsmen) is amended as follows.
(2) In subsection (1)—
(a) before paragraph (ba) insert—
“(bzc) under a leasehold and estate management redress scheme,”;
(b) in the words after paragraph (c)—
(i) for “or Ombudsman” substitute “, Ombudsman or head of leasehold and estate management redress”;
(ii) before “the Public Services Ombudsman (Wales) Act 2005” insert “the leasehold and estate management redress scheme,”.
(3) In subsection (2)—
(a) before “the Public Services Ombudsman for Wales” insert “the head of leasehold and estate management redress,”;
(b) for “Commissioner or that Ombudsman” substitute “person”.
(4) Before subsection (4) insert—
“(3C) If at any stage in the course of an investigation under a leasehold and estate management redress scheme, the head of leasehold and estate management redress forms the opinion that the complaint relates partly to a matter which could be the subject of an investigation under this Part of this Act, the head of leasehold and estate management redress must consult with the appropriate Local Commissioner about the complaint and, if the head of leasehold and estate management redress considers it necessary, inform the person initiating the complaint of the steps necessary to initiate a complaint under this Part of this Act.”
(5) In subsection (4)—
(a) for “or (3B)” substitute “, (3B) or (3C)”;
(b) for “or the new homes ombudsman scheme” substitute “, the new homes ombudsman scheme or a leasehold and estate management redress scheme”.
3 (1) Section 33ZA (collaborative working between Local Commissioners and others) is amended as follows.
(2) In subsection (1)—
(a) in paragraph (c), omit the final “or”;
(b) at the end of paragraph (d), insert “or
(e) an individual who investigates complaints under a leasehold and estate management redress scheme,”.
(3) In subsection (1A) for “or (d)” substitute “, (d) or (e)”.
(4) After subsection (1A) insert—
“(1B) For the purposes of subsections (1) and (1A) a matter is “within the jurisdiction” of an individual who investigates complaints under a leasehold and estate management redress scheme if it is a matter which could be the subject of an investigation under that scheme.”
(5) In subsection (3)—
(a) in paragraph (c), omit the final “or”;
(b) at the end of paragraph (d), insert “or
(e) an individual who investigates complaints under a leasehold and estate management redress scheme,”;
(c) in the words after paragraph (d), for “or (d)” substitute “, (d) or (e)”.
4 In section 33ZB (arrangements for provision of administrative and other services), in subsection (4)—
(a) in paragraph (e), omit the final “and”;
(b) at the end of paragraph (f), insert “, and
(g) the administrator of a leasehold and estate management redress scheme.”
5 In section 34 (interpretation) in subsection (1), at the appropriate places insert—
““leasehold and estate management redress scheme” means a redress scheme within the meaning of section 72(4) of the Leasehold and Freehold Reform Act 2024 (leasehold and estate management: redress schemes);”
““head of leasehold and estate management redress” , in relation to a leasehold and estate management redress scheme, means the person responsible for overseeing and monitoring the investigation and determination of complaints under the scheme;”
Housing Act 1996
6 (1) Paragraph 10A of Schedule 2 to the Housing Act 1996 (housing complaints: collaborative working with Local Commissioners) is amended as follows.
(2) In sub-paragraph (1)—
(a) for “or the new homes ombudsman” substitute “, the new homes ombudsman or an individual who investigates complaints under a leasehold and estate management redress scheme”;
(b) for the words from “that Commissioner” to the end substitute “any one or more of them”.
(3) After sub-paragraph (1) insert—
“(1A) For the purposes of sub-paragraph (1) a matter is “within the jurisdiction” of an individual who investigates complaints under a leasehold and estate management redress scheme if it is a matter which could be the subject of an investigation under that scheme.”
(4) In sub-paragraph (3)—
(a) for “or the new homes ombudsman” substitute “, the new homes ombudsman or an individual who investigates complaints under a leasehold and estate management redress scheme (or two or more of them)”;
(b) for the words from “that Commissioner” to the end substitute “them”.
(5) In sub-paragraph (4) for “a Local Commissioner, the new homes ombudsman (or both)” substitute “one or more persons”.
(6) After sub-paragraph (5) insert—
“(6) In this paragraph “leasehold and estate management redress scheme” means a redress scheme within the meaning of section 72(4) of the Leasehold and Freehold Reform Act 2024.”
Building Safety Act 2022
7 In paragraph 3(5) of Schedule 3 to the BSA 2022—
(a) in paragraph (c), omit the final “or”;
(b) at the end of paragraph (d) insert “, or—
(e) a redress scheme within the meaning of section 72(4) of the Leasehold and Freehold Reform Act 2024 (leasehold and estate management: redress schemes).”—(Lee Rowley.)
This new schedule, to be inserted after Schedule 9, would make amendments to other Acts in connection with Part 5.
Brought up, and added to the Bill.
New Schedule 2
Categories of permitted lease
Part 1
Categories of permitted lease for Tribunal certification
Leases granted out of historic leasehold estates
1 A lease granted out of a leasehold estate (the “superior leasehold estate”) where—
(a) the superior leasehold estate was granted before 22 December 2017, or
(b) the superior leasehold estate was granted on or after 22 December 2017 in pursuance of an agreement entered into before that date.
Community housing leases
2 (1) A lease that—
(a) is a community housing lease, and
(b) meets any further conditions which may be specified in regulations made by the Secretary of State.
(2) A lease is a community housing lease if—
(a) the landlord under the lease is a community land trust within the meaning of section 2(7A) of the LR(GR)A 2022 (excepted leases), or
(b) it is a lease of a house which is, or is in, a building within paragraph 2B of Schedule 14 to the Housing Act 2004 (buildings controlled or managed by co-operative societies), disregarding sub-paragraph (3)(b) of that paragraph.
(3) A statutory instrument containing regulations made under sub-paragraph (1)(b) is subject to the negative procedure.
Retirement housing leases
3 (1) A lease that—
(a) is a retirement housing lease, and
(b) meets any further conditions which may be specified in regulations made by the Secretary of State.
(2) A lease is a retirement housing lease if conditions A to C are met—
(a) Condition A: the lease is granted to a tenant who is at least 55 years old at the date of the grant,
(b) Condition B: the lease includes a covenant not to assign, underlet or part with possession of the house or any part of it, unless at least one of the proposed assignees or tenants is at least 55 years old at the date of the assignment, underletting or transfer, and
(c) Condition C: the house comprised in the lease is part of a retirement development or scheme in which the leases of all of the houses in that development or scheme meet conditions A and B.
(3) A statutory instrument containing regulations made under sub-paragraph (1)(b) is subject to the negative procedure.
Leases of certain National Trust property
4 A lease of a house specified in—
(a) Part 1 of Schedule 1 to the National Trust Act 1907 (properties to be held and preserved for the benefit of the nation), or
(b) section 8 of the National Trust Act 1939 (mansion and lands to be inalienable by National Trust).
Part 2
Categories of permitted lease for self-certification
Leases agreed before commencement
5 A lease granted in pursuance of an agreement entered into before the day on which section (Ban on grant or assignment of certain long residential leases of houses) comes into force.
Shared ownership leases
6 (1) A lease that—
(a) is a shared ownership lease, and
(b) meets conditions A to D.
(2) But conditions C and D do not need to be met if the shared ownership lease is of a description specified for this purpose in regulations made by the Secretary of State.
(3) A shared ownership lease means a lease of a house—
(a) granted on payment of a premium calculated by reference to a percentage of the value of the house or of the cost of providing it, or
(b) under which the tenant (or the tenant’s personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of the house.
(4) Condition A: the lease allows for the tenant to increase the tenant’s share in the house by increments of 25% or less (whether or not the lease also provides for increments of more than 25%).
(5) Condition B: the lease provides—
(a) for the price payable for an increase in the tenant’s share in the house to be proportionate to the market value of the house at the time the share is to be increased, and
(b) if the tenant’s share is increased, for the rent payable by the tenant in respect of the landlord’s share in the house to be reduced by an amount reflecting the increase in the tenant’s share.
(6) Condition C: the lease allows for the tenant’s share in the house to reach 100%.
(7) Condition D: if and when the tenant’s share in the house is 100%, the tenancy provides that the terms of the lease which make the lease a shared ownership lease cease to have effect, without the payment of any further consideration.
(8) A statutory instrument containing regulations made under sub-paragraph (2) is subject to the negative procedure.
Home finance plan leases
7 (1) A lease that —
(a) is a home finance plan lease, and
(b) meets any further conditions which may be specified in regulations made by the Secretary of State.
(2) A lease is a home finance plan lease if—
(a) it is granted pursuant to an arrangement which is a regulated home reversion plan within the meaning of Article 63B of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544), or
(b) it is granted by a finance provider to a home buyer, pursuant to a rent to buy arrangement.
(3) A “rent to buy arrangement” is an arrangement in relation to which the following conditions are met—
(a) a person (the “finance provider”) buys a qualifying interest, or an undivided share of a qualifying interest, in land, and
(b) the arrangement provides for the obligation of another person (the “home buyer”) to buy the interest bought by the finance provider over the course of, or at the end of, a specified period.
(4) A “qualifying interest in land” means an estate in fee simple absolute or a term of years absolute, whether subsisting at law or in equity.
(5) A statutory instrument containing regulations made under sub-paragraph (1)(b) is subject to the negative procedure.
Extended leases
8 (1) An extended lease, which is a lease that falls within any of cases A to C.
(2) Case A: a lease of a house granted under Part 1 of the LRA 1967 (tenant of leasehold house entitled to extended lease) in substitution for a lease of a house granted before this Part comes into force.
(3) Case B: a lease of a house granted in consideration of the surrender in whole or part of a lease of that house granted before this Part comes into force.
(4) Case C: a lease of a house which takes effect as a deemed surrender and regrant of a lease of a house granted before this Part comes into force.
Agricultural leases
9 An agricultural lease, which is a lease where the house is comprised in—
(a) an agricultural holding within the meaning of the Agricultural Holdings Act 1986 which is held under a tenancy to which that Act applies, or
(b) a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.”—(Lee Rowley.)
This new Schedule, to be inserted before Schedule 1, sets out the categories of permitted lease for the purposes of the new Part before Part 1 (see the explanatory statements to NC42 and NC48).
Brought up, and added to the Bill.
New Schedule 3
Leasehold houses: financial penalties
“Notice of intent
1 (1) Before imposing a financial penalty on a person under section (Financial penalties), an enforcement authority must give the person notice of its proposal to do so (a “notice of intent”).
(2) A notice of intent must set out—
(a) the date on which it is given,
(b) the amount of the proposed penalty,
(c) the reasons for proposing to impose the penalty, and
(d) information about the right to make representations under paragraph 3.
Time limits for notice of intent
2 (1) A notice of intent may not be given to a person in respect of a breach of a leasehold house restriction after the earlier of the following—
(a) the end of the period of 6 years beginning with the day the breach occurs, and
(b) the end of the period of 6 months beginning with the day on which evidence comes to the knowledge of the enforcement authority which the authority considers sufficient to justify giving the notice.
(2) For the purposes of sub-paragraph (1)(a)—
(a) a breach of section (Ban on grant or assignment of certain long residential leases of houses)(1) or (Permitted leases: transaction warning conditions)(1) occurs on the day the lease is granted or (as the case may be) the agreement is entered into (or, in the case of a breach of either of those provisions consisting of entering into an agreement to grant a lease and subsequently granting it, the day on which the agreement is entered into);
(b) a breach of section (Ban on grant or assignment of certain long residential leases of houses)(2) occurs on the day of the assignment or (as the case may be) the agreement is entered into (or, in the case of a breach of that provision consisting of entering into an agreement to assign a lease and subsequently assigning it, the day on which the agreement is entered into);
(c) a breach of section (Permitted leases: marketing restrictions)(2) occurs on the day the marketing material is made available (or, in the case of marketing material made available in relation to the same lease on more than one occasion, the first day on which such material is made available).
Right to make written representations
3 A person who is given a notice of intent may, within the period of 28 days beginning with the day on which the notice is given, make written representations about the proposal.
Final notice
4 (1) After the period allowed for representations has expired, the enforcement authority must—
(a) decide whether to impose a penalty on the person, and
(b) if it decides to do so, decide the amount of the penalty.
(2) If the enforcement authority decides to impose a penalty, it must do so by giving the person a notice (a “final notice”).
(3) A final notice must require the penalty to be paid before the end of the period of 28 days beginning with the day after that on which the notice is given.
(4) A final notice must set out—
(a) the date on which it is given,
(b) the amount of the penalty,
(c) the reasons for imposing the penalty,
(d) information about how to pay the penalty,
(e) the period for payment of the penalty,
(f) information about rights of appeal, and
(g) the consequences of failure to comply with the notice.
Withdrawal or amendment of notice
5 An enforcement authority may at any time—
(a) withdraw a notice of intent or final notice, or
(b) reduce an amount specified in a notice of intent or final notice,
by giving a notice to that effect to the person to whom the notice of intent or final notice is given.
Appeals
6 (1) A person who is given a final notice may appeal to the appropriate tribunal against—
(a) the decision to impose the penalty, or
(b) the amount of the penalty.
(2) An appeal must be brought before the end of the period of 28 days beginning with the day after that on which the final notice is given.
(3) If an appeal is brought under this paragraph, the final notice is suspended so far as it relates to the matter which is the subject of the appeal until the appeal is finally determined or withdrawn.
(4) An appeal under this paragraph—
(a) is to be a re-hearing of the enforcement authority’s decision, but
(b) may be determined having regard to evidence which was not available to the authority when giving the notice.
(5) On an appeal under this paragraph the appropriate tribunal may quash, confirm or vary the notice.
(6) If the appropriate tribunal varies the amount of the penalty imposed by the notice, the new amount must be an amount that the enforcement authority had power to impose.
Recovery of penalty
7 (1) A penalty is recoverable by the enforcement authority that imposed it, if the county court so orders, as if it were payable under an order of that court.
(2) In proceedings before the county court for the recovery of a penalty, a certificate that—
(a) is signed by the chief finance officer of the authority that imposed the penalty, and
(b) states that the amount due has not been received by a date specified in the certificate,
is evidence of that fact.
(3) A certificate to that effect and purporting to be so signed is to be treated as being so signed unless the contrary is proved.
(4) In this paragraph “chief finance officer” has the same meaning as in section 5 of the Local Government and Housing Act 1989.
Proceeds of penalties
8 An enforcement authority may apply the proceeds of a penalty towards meeting the costs and expenses (whether administrative or legal) incurred in, or associated with, carrying out its enforcement functions under this Part.
9 Any proceeds of a penalty which are not applied in accordance with paragraph 8 must be paid—
(a) if the penalty was imposed in relation to a lease of a house in England, to the Secretary of State;
(b) if the penalty was imposed in relation to a lease of a house in Wales, to the Welsh Ministers.
Manner of giving notices
10 (1) The Secretary of State may by regulations make provision about—
(a) how any notice under this Schedule is to be given to a person;
(b) when such a notice is to be treated as being given.
(2) A statutory instrument containing regulations under this paragraph is subject to the negative procedure.
Interpretation
11 In this Schedule—
“enforcement authority” has the meaning given by section (Interpretation of Part A1);
“leasehold house restriction” has the meaning given by section (Enforcement by trading standards authorities)(2);
“notice” means notice in writing;
“penalty” means a financial penalty under section (Financial penalties).”—(Lee Rowley.)
This new Schedule, to be inserted after NS2, makes provision about financial penalties which local weights and measures authorities may impose for breaches of certain provisions restricting the grant or assignment of long residential leases of houses.
Brought up, and added to the Bill.
Schedule 1
Eligibility for enfranchisement and extension: specific cases
Amendments made: 50, page 112, leave out line 16.
This is consequential on Amendment 63.
Amendment 51, page 116, leave out line 31.—(Lee Rowley.)
This is consequential on Amendment 63.
Schedule 2
Determining and sharing the market value
Amendments made: 52, page 125, line 27, after “rent” insert
“(and any other rent payable under a shared ownership lease in respect of the landlord’s share)”.
This is consequential on Amendments 24 and 29.
Amendment 53, page 134, line 27, leave out “4(3)” and insert “22(2) and (3)”.—(Lee Rowley.)
This amendment would correct an incorrect cross-reference.
Amendment proposed: 4, page 136, line 40, at end insert—
“(9) In setting the deferment rate the Secretary of State must have regard to the desirability of encouraging leaseholders to acquire their freehold at the lowest possible cost.”—(Matthew Pennycook.)
This amendment would ensure that when determining the applicable deferment rate, the Secretary of State would have to have regard to the desirability of encouraging leaseholders to acquire their freehold at the lowest possible cost.
Question put, That the amendment be made.
18:42

Division 83

Ayes: 171


Labour: 152
Liberal Democrat: 10
Independent: 5
Plaid Cymru: 2
Alliance: 1
Green Party: 1

Noes: 300


Conservative: 292
Democratic Unionist Party: 5

Amendments made: 54, page 139, line 31, after “transaction” insert—
“(taking into account, where paragraph 31(1)(c) applies, any reduction under paragraph 12A of Schedule 1 to the LRA 1967 or paragraph 12 of Schedule 11 to the LRHUDA 1993 in the rent of a lease of which the eligible person is a tenant)”
This ensures that any reduction of rent payable by a person as a tenant where there is commutation of rent is taken into account when determining the person’s loss for the purpose of sharing the consideration payable on an enfranchisement or extension.
Amendment 55, page 144, line 16, leave out “4(3)” and insert “22(2) and (3)”.—(Lee Rowley.)
This amendment would correct an incorrect cross-reference.
Schedule 5
Amendments consequential on section 11 and Schedules 2 to 4
Amendments made: 56, page 149, leave out lines 12 to 21
This amendment is consequential on Amendment 60.
Amendment 57, page 151, line 42, leave out sub-paragraph (5) and insert—
“(5) In paragraph 7(1)—
(a) omit paragraph (b);
(b) in paragraph (c), for “price payable for” substitute “share of the purchase price, as determined under Part 6 of Schedule 2 to the Leasehold and Freehold Reform Act 2024, that is payable to the owner of”;
(c) in paragraph (d), for “the price payable for” substitute “each share of the purchase price, as determined under Part 6 of Schedule 2 to the Leasehold and Freehold Reform Act 2024, that is payable to the owner of”;
(d) at the end of paragraph (d), insert “; and
(e) if the sum payable for the redemption of a rentcharge under section 11 or the discharge of a charge under section 12 cannot be ascertained because the share of the purchase price payable to the relevant landlord has not been agreed or determined under Part 6 of Schedule 2 to the Leasehold and Freehold Reform Act 2024, the tenant may pay the whole of the price payable into the tribunal.””
This amendment would make provision that is consequential on Part 6 of Schedule 2.
Amendment 58, page 153, line 32, at end insert—
‘5A In Schedule 8 to the LRHUDA 1993 (discharge of mortgages etc)—
(a) in paragraph 1, for the definition of ‘the consideration payable’ substitute—
““the consideration payable” means the share payable to the landlord, as determined under Part 6 of Schedule 2 to the Leasehold and Freehold Reform Act 2024, of the purchase price for the acquisition of the relevant interest;”
(b) in paragraph 4, after sub-paragraph (3) insert—
“(4) If the amount to be applied for the redemption of a mortgage under paragraph 2, or that may be paid into the tribunal under sub-paragraph (1), cannot be ascertained because the share of the purchase price payable to the relevant landlord has not been agreed or determined under Part 6 of Schedule 2 to the Leasehold and Freehold Reform Act 2024, the nominee purchaser may pay the whole of the price payable into the tribunal.”’
This amendment would make provision that is consequential on Part 6 of Schedule 2.
Amendment 59, page 154, line 20, at end insert
“and any sums payable to that other landlord under section 56(3)”
This amendment would ensure that, in the new provision in Schedule 5 for requiring a tenant to pay amounts into the tribunal (for onward distribution to multiple landlords in a collective enfranchisement), the sums that can be paid in include other amounts payable under section 56(3) of the LRHUDA 1993.
Amendment 60, page 155, line 11, at end insert—
“Other consequential amendments to the LRA 1967
8 The LRA 1967 is amended in accordance with paragraphs 9 to 14.
9 In section 8(1) (obligation to enfranchise), after “price” insert “payable in accordance with section 9”.
10 Omit section 9A (compensation payable in cases where right to enfranchisement arises by virtue of section 1A or 1B).
11 In section 19(10)(b) (price subject to local management scheme), for “under” substitute “in accordance with”.
12 In section 23(5)(b) (terms of extended tenancy), omit “section 9(1) and (1A) above,”.
13 In section 24(1) (application of price), for “under section 9 above” substitute “in accordance with section 9”.
14 In section 31 (ecclesiastical property)—
(a) in subsection (2)(a), after “payable” insert “in accordance with section 9 or 14A”;
(b) in subsection (3), for “under section 9 above” substitute “in accordance with section 9 or 14A”;
(c) in subsection (4)(c), for “under section 9 above” substitute “in accordance with section 9 or 14A”.
Other consequential amendments to the LRHUDA 1993
15 The LRHUDA 1993 is amended in accordance with paragraphs 16 to 30.
16 In section 13(3) (initial notice), for paragraph (d) substitute—
“(d) specify the proposed purchase price payable in accordance with section 32(1);”.
17 In section 18(2) (duty to disclose agreements)—
(a) in paragraph (a), for the words from “to the reversioner” to “ for the purposes of Schedule 6” substitute “is determined in accordance with section 32(1)”;
(b) in the words after paragraph (b), for the words from “to the reversioner” to “relevant landlord” substitute “in addition to the price so determined”.
18 In section 27 (vesting orders under section 26: supplementary provision)—
(a) in subsection (3), omit “in respect of each of those interests”;
(b) in subsection (5)—
(i) in the words before paragraph (a), omit “in respect of any interest”;
(ii) in paragraph (a), for the words from “in respect of that interest” to “subsection (1)(b)” substitute “in accordance with section 32(1) if the interests referred to in subsection (1) were being acquired in pursuance of a notice under section 13”;
(iii) in paragraph (b), for “that interest” substitute “the transferor’s interest”;
(c) in subsection (6)—
(i) omit “in respect of that interest”;
(ii) omit “for the acquisition of that interest”.
19 In section 32 (determination of price)—
(a) in subsection (2), for “any such interest” substitute “the freehold or any other interest to be acquired by the nominee purchaser in accordance with this Chapter”;
(b) for subsection (5) substitute—
“(5) The nominee purchaser is to be treated for all purposes as a purchaser for valuable consideration in money or money’s worth of the freehold or other interest, even if the price payable by the nominee purchaser in accordance with section 32(1), or the share of the purchase price payable to the owner of the interest under Part 6 of Schedule 2 to the Leasehold and Freehold Reform Act 2024, is zero or only a nominal amount.”
20 In section 39(1) (right to acquire new lease), for “a premium” substitute “the price”.
21 In section 42(3)(c) (notice to acquire new lease)—
(a) for “premium” substitute “price”;
(b) omit the words from “and, where” to the end.
22 In section 48(7) (applications where terms in dispute etc), for the words from “the premium” to “Schedule 13” substitute “the price payable in accordance with section 56(1)”.
23 In section 51 (vesting orders under section 50: supplementary provision)—
(a) in subsection (5)—
(i) in paragraph (a), for “premium which is payable under Schedule 13” substitute “price which is payable in accordance with section 56(1)”;
(ii) at the end of paragraph (a) insert “and”;
(iii) omit paragraph (b);
(b) in subsection (6), for the words from “premium” to the end substitute “price payable”.
24 In section 56 (obligation to grant new lease)—
(a) omit subsection (2);
(b) in subsection (3), for the words from “amount of any such premium” to “Schedule 13” substitute “price payable”;
(c) in subsection (4), for “7(2)” substitute “7(2A)”.
25 Omit section 66 (amendments to the LRA 1967).
26 In section 70(12) (estate management schemes)—
(a) in paragraph (b), for “under section 9” substitute “in accordance with section 9”;
(b) in paragraph (c), for “under Schedule 6 to this Act” substitute “in accordance with section 32(1)”.
27 In section 73(10) (applications for estate management schemes), for the words from the beginning to “it shall” substitute “For the purposes of Schedule 2 to the Leasehold and Freehold Reform Act 2024 as it applies in relation to an acquisition mentioned in section 69(1)(a) or (b), it is to”.
28 (1) Schedule 2 (special categories of landlords) is amended as follows.
(2) In paragraph 1 (interpretation), omit sub-paragraph (2).
(3) In paragraph 5 (trustees)—
(a) in sub-paragraph (1), for the words from “sum” to “Chapter I” substitute “share payable to the landlord, as determined under Part 6 of Schedule 2 to the Leasehold and Freehold Reform Act 2024, of the purchase price in respect of the acquisition of the interest,”;
(b) in sub-paragraph (2)(a), for “premium” substitute “share of the price payable”.
(4) In paragraph 7 (universities and colleges)—
(a) in sub-paragraph (1), for the words from “sum” to “Chapter I” substitute “share payable to the landlord, as determined under Part 6 of Schedule 2 to the Leasehold and Freehold Reform Act 2024, of the purchase price in respect of the acquisition of the interest”;
(b) in sub-paragraph (2)(a), for “premium” substitute “share of the price payable”.
(5) In paragraph 8 (ecclesiastical landlords)—
(a) in sub-paragraph (2)(a), omit “or premium”;
(b) in sub-paragraph (3)(a)—
(i) in the words before paragraph (i), after “by way of” insert “a share of”;
(ii) in paragraph (i), for “for any interest in the property on its acquisition” substitute “in respect of the acquisition of any interest in the property”;
(iii) in paragraph (ii), for “a premium” substitute “the price payable”;
(c) in sub-paragraph (4)(b)—
(i) in the words before paragraph (i), after “by way of” insert “a share of”;
(ii) in paragraph (i), for “for any interest in property on its acquisition” substitute “in respect of the acquisition of any interest in property”;
(iii) in paragraph (ii), for “a premium” substitute “the price payable”.
29 (1) Schedule 5 (vesting orders under sections 24 and 25) is amended as follows.
(2) In paragraph 2(1) (execution of conveyance), omit “in respect of each of those interests”.
(3) In paragraph 3(1) (the appropriate sum)—
(a) in the words before paragraph (a), omit “in respect of any interest”;
(b) in paragraph (a), for “Schedule 6 in respect of that interest” substitute “section 32(1)”;
(c) in paragraph (b), for “that interest” substitute “the transferor’s interest”.
(4) In paragraph 4 (effect of payment of appropriate sum)—
(a) omit “in respect of that interest”;
(b) omit “for the acquisition of that interest”.
30 Omit Schedule 15 (section 9 of the LRA 1967 as amended by section 66).” —(Lee Rowley.)
This amendment would make further amendments to the LRA 1967 and the LRHUDA 1993 that are consequential on clauses 9 to 11 and Schedules 2 to 4 (as well as other provision in Schedule 5).
Schedule 6
Leasehold enfranchisement and extension: miscellaneous amendments
Amendments made: 61, page 155, line 15, at end insert—
‘Repeal of section 18 of the LRHUDA 1993
A1 (1) The LRHUDA 1993 is amended as follows.
(2) Omit section 18 (collective enfranchisement: requirement to disclose agreements affecting specified premises).
(3) In consequence—
(a) in section 32 (determination of price for collective enfranchisement), omit subsection (2)(b) and the “and” preceding it;
(b) in section 91 (jurisdiction of tribunals), omit subsection (2)(c).’
This amendment would repeal section 18 of the LRHUDA 1993, which requires a nominee purchaser to disclose agreements affecting property specified in an initial notice for collective enfranchisement.
Amendment 62, page 156, leave out lines 27 to 30 and insert—
‘Consequential amendments to the LRA 1967
4 (1) The LRA 1967 is amended as follows.
(2) In section 16 (rights after extension)—
(a) in subsection (1), omit the words before paragraph (a);
(b) omit subsection (5).
(3) In section 23(5)(b) (terms of extended tenancy), for “section 16(1) to (6)” substitute “section 16(1B)”.’
This amendment would insert a further consequential amendment to the LRA 1967 in light of the repeal of most of section 16 of that Act.
Amendment 63, page 156, line 33, at end insert—
“Orders and regulations under the LRA 1967
5A (1) The LRA 1967 is amended as follows.
(2) After section 36 insert—
“Orders and regulations
36A Orders and regulations
(1) A power to make an order or regulations under any provision of this Part includes power to make—
(a) consequential, supplementary, incidental, transitional or saving provision;
(b) different provision for different purposes.
(2) In this section “order” does not include an order of a court or tribunal.”
(3) In paragraph 5(2) of Schedule 4A (regulations relating to exclusion of certain shared ownership leases), for paragraphs (a) and (b) substitute—
“(a) make different provision for different areas;”.”
This inserts a new section into the LRA 1967 to make clear that the powers to make orders and regulations under that Act include power to make the usual additional kinds of provision. It also removes the existing provision dealing with those matters currently contained in Schedule 4A.
Amendment 64, page 156, line 35, leave out from beginning to “paragraph” in line 36 and insert—
“6 “(1) Schedule 1 to the LRA 1967 (enfranchisement and extension by sub-tenants) is amended as follows.
(2) In paragraph 11—
(a) after sub-paragraph (1) insert—
“(1A) Any surrender or provision for the surrender, in accordance with this paragraph, of a tenancy comprising property other than the house and premises, is to be limited to the house and premises.”;
(b) omit sub-paragraphs (2) to (5).
(3) After”
This amendment would make provision that is consequential on the existing provision in paragraph 6 of Schedule 6.
Amendment 65, page 157, line 3, at end insert—
‘(1A) But if the tenancy in possession is a shared ownership lease—
(a) this paragraph does not apply if, at the relevant time, none of the relevant rent payable under the tenancy in possession is payable in respect of the tenant’s share in the house and premises;
(b) if the tenancy in possession does not reserve separate rents in respect of the tenant’s share in the house and premises and the landlord’s share in the house and premises, any rent reserved is to be treated as reserved in respect of the landlord’s share.’
This provides that rent under leases that are superior to a shared ownership lease can be commuted only if some or all the rent payable under the shared ownership lease is payable in respect of the tenant’s share.
Amendment 66, page 158, line 30, at end insert—
‘(1A) But if the existing lease is a shared ownership lease—
(a) this paragraph does not apply if, at the relevant date, none of the relevant rent payable under the existing lease is payable in respect of the tenant’s share in the flat;
(b) if the existing lease does not reserve separate rents in respect of the tenant’s share in the flat and the landlord’s share in the flat, any rent reserved is to be treated as reserved in respect of the landlord’s share.’
This provides that rent under leases that are superior to a shared ownership lease can be commuted only if some or all the rent payable under the shared ownership lease is payable in respect of the tenant’s share.
Amendment 67, page 167, line 14, leave out “interest” and insert “share”.—(Lee Rowley.)
This corrects an error in this definition, which should be a definition of “landlord’s share”.
Schedule 7
Right to vary lease to replace rent with peppercorn rent
Amendment proposed: 8, in schedule 7, page 168, line 15, leave out sub-sub-paragraph (a).—(Matthew Pennycook.)
This amendment would ensure that all leaseholders, not just those with residential leases of 150 years or over, have the right to vary their lease to replace rent with peppercorn rent.
Question put, That the amendment be made.
18:56

Division 84

Ayes: 170


Labour: 151
Liberal Democrat: 10
Independent: 5
Plaid Cymru: 2
Alliance: 1
Green Party: 1

Noes: 299


Conservative: 291
Democratic Unionist Party: 5
Independent: 1

Schedule 7
Right to vary lease to replace rent with peppercorn rent
Amendments made: 68, page 168, line 25, leave out from “only” to “a” in line 30 and insert “—
(i) because a requirement in section 1 of the LRA 1967 for the tenancy to be at a low rent is not met,
(ii) because a requirement in section 1(1)(a)(i) or (ii) of the LRA 1967 for the house and premises or the tenancy to be above a certain value is not met, or
(iii) by virtue of”.
This changes the language used to refer to provisions of the LRA 1967 about rents and values of houses so that it is consistent with other provisions of the Bill.
Amendment 69, page 169, line 7, at end insert—
“(7) If the qualifying lease is a shared ownership lease, the right to a peppercorn rent applies only in relation to rent payable in respect of the tenant’s share in the demised premises (and, accordingly, any rent which is payable in respect of the landlord’s share in the demised premises is not affected by this Schedule).
(8) For that purpose, if the qualifying lease does not reserve separate rents in respect of the tenant’s share in the demised premises and the landlord’s share in the demised premises, any rent reserved is to be treated as reserved in respect of the landlord’s share.
(9) In this paragraph—
(a) ‘shared ownership lease’ means a lease of premises—
(i) granted on payment of a premium calculated by reference to a percentage of the value of the premises or of the cost of providing them, or
(ii) under which the tenant (or the tenant’s personal representatives) will or may be entitled to a sum calculated by reference, directly or indirectly, to the value of the premises;
(b) in relation to a shared ownership lease—
(i) ‘tenant’s share’ means the tenant’s initial share in the premises demised by the lease, plus any additional share or shares in those demised premises which the tenant has acquired;
(ii) ‘landlord’s share’ means the share in the premises demised by the lease which is not comprised in the tenant’s share.”
This provides that, where the rent under a shared ownership lease is reduced under Schedule 7 to the Bill, only the rent payable in respect of the tenant’s share will be reduced to a peppercorn rent.
Amendment 70, page 173, line 16, after “payable” insert
“(whether or not any shares of the premium that may be payable under paragraph 8(8A) have been determined)”.
This makes clear that it is not necessary for shares of the premium (where there are intermediate landlords) to have been calculated for the rent variation notice to be enforceable.
Amendment 71, page 174, line 36, at end insert—
“(8A) Each eligible landlord is entitled to be paid a share of the required premium (see paragraph 7).
(8B) An eligible landlord’s share of the required premium is to be determined using this formula—
where the loss suffered by an eligible landlord is the loss which that landlord suffers as a result of the relevant reduction in the rent of the lease by virtue of which they are an eligible landlord (taking into account any relevant reduction in the rent of a lease of which they are the tenant).”
This would enable the premium payable for a rent reduction to be divided among the various landlords where there are leases that are superior to the lease in respect of which the rent variation notice is given.
Amendment 72, page 174, line 37, at end insert—
“‘eligible landlord’ means the landlord of a lease whose rent is subject to a relevant reduction;’”.
This is consequential on Amendment 71.
Amendment 73, page 175, line 11, at end insert—
“Jurisdiction of the appropriate tribunal in relation to paragraph 8
(1) The appropriate tribunal may determine any matter arising under paragraph 8 (reduction of rent under intermediate leases on grant of a new lease), including what rent under an intermediate lease is apportioned to the qualifying property (see paragraph 2(6)).
(2) In relation to paragraph 8—
(a) if the landlord under a qualifying intermediate lease cannot be found or their identity cannot be ascertained, the appropriate tribunal may make such order as it thinks fit, including—
(i) an order dispensing with the requirement to give notice under paragraph 8(3) to that landlord, or
(ii) an order that such a notice has effect and has been property served even though it has not been served on that landlord;
(b) make an order appointing a person to vary a lease in accordance with paragraph 8 on behalf of the landlord or tenant;
(c) if the appropriate tribunal makes a determination that a notice under paragraph 8(3) was of no effect, it may—
(i) determine whether another landlord or tenant could have given such a notice, and
(ii) if it determines that they could have done so, order that paragraph 8 is to apply as if they had done so.
(3) The variation of a lease on behalf of a party in consequence of an order under sub-paragraph (2)(b) has the same force and effect (for all purposes) as if it had been executed by that party.”
This gives the appropriate tribunal jurisdiction in relation to disputes and other matters arising in relation to paragraph 8.
Amendment 74, page 177, line 2, leave out “10 or”.
This amendment is consequential on an amendment made in Committee to remove what was paragraph 10 of Schedule 7.
Amendment 75, page 177, line 6, leave out “the LRA 1967 or”.
This amendment is consequential on Amendment 74.
Amendment 76, page 180, line 3, at end insert—
“Actions of immediate landlord binding on other landlords
16A (1) This paragraph applies if there are one or more qualifying intermediate leases of property to which a rent variation notice relates.
(2) The following are binding on the other landlords and on their interests in the property to which the rent variation notice relates or any other property—
(a) any notice given under this Schedule by the immediate landlord to the tenant,
(b) any agreement for the purposes of this Schedule between the immediate landlord and the tenant, and
(c) any determination of the appropriate tribunal under this Schedule in proceedings between the immediate landlord and the tenant.
(3) The immediate landlord is not liable to any of the other landlords for any loss or damage caused by any act or omission in the exercise or intended exercise of the authority given by sub-paragraph (2) if the immediate landlord acts in good faith and with reasonable care and diligence.
(4) In this paragraph—
‘immediate landlord’ means the immediate landlord under the lease to which the rent variation notice relates (and to which the rent variation notice must be given);
‘other landlord’ means the landlord under a qualifying intermediate lease of property to which the rent variation notice relates;
‘qualifying intermediate lease’ has the meaning given in paragraph 8.
Duty of immediate landlord to conduct commutation claim on behalf of affected other landlords
16B (1) This paragraph applies if—
(a) there are one or more qualifying intermediate leases of property to which a rent variation notice relates, and
(b) notice is given under paragraph 8(3).
(2) The immediate landlord must conduct the response to the tenant’s claim for a rent reduction on their own behalf and on behalf of the affected other landlords, including by—
(a) agreeing the terms of variation of the qualifying lease,
(b) agreeing the amount of the required premium,
(c) receiving the whole of the required premium and (where it is so received) holding the required premium for themselves and the affected other landlords pending determination of the shares of the required premium in accordance with paragraph 8(8A), and
(d) conducting all proceedings arising out of the rent variation notice (whether the proceedings are for resisting or giving effect to the claim).
(3) If the immediate landlord receives the whole of the required premium, the immediate landlord’s written receipt for payment of that premium is a complete discharge to the tenant.
(4) Sub-paragraphs (2)(c) and (3) do not apply if the price payable is required to be paid into the tribunal by virtue of sub-paragraph (6)(c).
(5) The immediate landlord is not liable to any of the affected other landlords for any loss or damage caused by any act or omission in compliance or intended compliance with the duty under sub-paragraph (2) if the immediate landlord acts in good faith and with reasonable care and diligence.
(6) Any affected other landlord may—
(a) apply to the appropriate tribunal for directions as to the manner in which the immediate landlord is to exercise the authority given by sub-paragraph (2);
(b) be separately represented in any proceedings in which the amount of the required premium is being determined;
(c) by giving notice to the tenant and the immediate landlord, require the tenant to pay into the tribunal the whole of the required premium.
(7) Each of the affected other landlords must make such contribution as is just to costs and expenses which are properly incurred by the immediate landlord in connection with the claim by the tenant under this Schedule but which are not recoverable or recovered from the tenant.
(8) The appropriate tribunal—
(a) may determine any matter arising in relation to the amount of any costs payable by virtue of sub-paragraph (7), and
(b) where it has determined such an amount of costs, may make an order requiring a person to pay those costs.
(9) The court or the appropriate tribunal may order any affected other landlord to pay to the immediate landlord the costs, or a contribution to the costs, incurred by the immediate landlord in obtaining from the appropriate tribunal money that has been paid into it in compliance with a requirement imposed under sub-paragraph (6)(c) if—
(a) that affected other landlord imposed the requirement, and
(b) the immediate landlord shows that it was unreasonable for that affected other landlord to impose the requirement.
(10) The court or the appropriate tribunal may order the immediate landlord to pay to any affected other landlord the costs, or a contribution to the costs, incurred by that affected other landlord in obtaining from the appropriate tribunal money that has been paid into it in compliance with a requirement imposed under sub-paragraph (6)(c) if—
(a) that affected other landlord imposed the requirement, and
(b) that affected other landlord shows that the requirement was imposed because of unreasonable conduct by the immediate landlord.
(11) In this paragraph—
‘affected other landlord’ means the landlord under a qualifying intermediate lease of which the rent is to be reduced in accordance with paragraph 8 (whether by virtue of paragraph 8(3) or (4));
‘immediate landlord’ means the immediate landlord under the lease to which the rent variation notice relates (and to which the rent variation notice must be given);
‘qualifying intermediate lease’ has the meaning given in paragraph 8;
‘required premium’ means the required premium payable under paragraph 7.”
This makes provision for dealing with claims for rent reductions under Schedule 7 if there are multiple landlords because of the existence of leases that are superior to the lease in respect of which the rent variation notice is given.
Amendment 77, page 180, line 21, second column, leave out from “any” to “has” in line 22 and insert “price payable”.
This amendment is consequential on Amendment 60.
Amendment 78, page 181, line 19, leave out “flat premises” and insert “a flat”.
This amendment would align the terminology used in the table with the terminology used in the LRHUDA 1993.
Amendment 79, page 182, line 20, leave out “10 or 16” and insert “17”.
This amendment is consequential on an amendment made in Committee to remove what was paragraph 10 of Schedule 7.
Amendment 80, page 182, line 22, leave out “the LRA 1967 or”.
This amendment is consequential on Amendment 79.
Amendment 81, page 182, line 26, leave out
“Regulations under this paragraph are”,
and insert
“A statutory instrument containing regulations under this paragraph is”.—(Lee Rowley.)
This amendment would clarify that the statutory instrument containing the regulations is subject to the negative procedure.
Schedule 8
Part 3: consequential amendments
Amendment made: 82, Schedule 8, page 186, line 35, leave out paragraph (e).—(Lee Rowley.)
This amendment is consequential on NC26.
Title
Amendments made: 84, line 1, leave out “Amend” and insert
“Prohibit the grant or assignment of certain new long residential leases of houses, to amend”.
This amendment is consequential on the new Part to be inserted before Part 1 (see NC42).
Amendment 23, line 6, leave out “and to regulate rentcharges” and insert
“, to regulate rentcharges and to amend the Building Safety Act 2022 in connection with the remediation of building defects and the insolvency of persons who have repairing obligations relating to certain kinds of buildings”. —(Lee Rowley.)
This amendment is consequential on the new Part of the Bill proposed to be formed by NC30 to NC35.
Third Reading
King’s and Prince of Wales’s consent signified.
19:07
Proceedings interrupted (Programme Order, 11 December 2023).
Question put forthwith (Standing Order No. 83E), That the Bill be now read the Third time.
Question agreed to.
Bill accordingly read the Third time and passed.

Business without Debate

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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Deferred Divisions

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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Motion made, and Question put forthwith (Standing Order No. 41A(3)),
That, at this day’s sitting, Standing Order No. 41A (Deferred divisions) shall not apply to the Motion in the name of Penny Mordaunt relating to the Committee on Standards.—(Mr Mohindra.)
Question agreed to.

Committee on Standards

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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Motion made, and Question put forthwith (Standing Order No. 149(14)),
That this House:
(1) approves the Second Report of the Committee on Standards, HC 413;
(2) endorses the recommendation in paragraph 64; and
(3) accordingly suspends Scott Benton from the service of the House for a period of 35 sitting days, beginning on Wednesday 28 February 2024.—(Mr Mohindra.)
Question agreed to.

Delegated Legislation

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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Motion made, and Question put forthwith (Standing Order No. 118(6)),
Northern Ireland
That the draft Local Elections (Northern Ireland) (Amendment) Order 2024, which was laid before this House on 10 January, be approved.—(Mr Mohindra.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Representation of the People
That the draft Representation of the People (Postal Vote Handling etc.) (Northern Ireland) (Amendment) Regulations 2024, which were laid before this House on 10 January, be approved.—(Mr Mohindra.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Terms and Conditions of Employment
That the draft Carer’s Leave Regulations 2024, which were laid before this House on 11 December 2023, be approved.—(Mr Mohindra.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Terms and Conditions of Employment
That the draft Maternity Leave, Adoption Leave and Shared Parental Leave (Amendment) Regulations 2024, which were laid before this House on 11 December 2023, be approved.—(Mr Mohindra.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Police
That the draft West Midlands Combined Authority (Transfer of Police and Crime Commissioner Functions) Order 2024, which was laid before this House on 7 February, be approved.—(Mr Mohindra.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Limited Liability Partnerships
That the draft Limited Liability Partnerships (Application of Company Law) Regulations 2024 which were laid before this House on 18 December 2023, be approved.—(Mr Mohindra.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Companies
That the draft Service Address (Rectification of Register) Regulations 2024, which were laid before this House on 18 December 2023, be approved.—(Mr Mohindra.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Companies
That the draft Principal Office Address (Rectification of Register) Regulations 2024, which were laid before this House on 18 December 2023, be approved.—(Mr Mohindra.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Companies
That the draft Registered Office Address (Rectification of Register) Regulations 2024, which were laid before this House on 18 December 2023, be approved.—(Mr Mohindra.)
Question agreed to.
JOINT COMMITTEE ON THE NATIONAL SECURITY STRATEGY
Ordered,
That Robert Courts be discharged from the Joint Committee on the National Security Strategy and Sir Jeremy Quin be added.—(Sir Bill Wiggin, on behalf of the Committee of Selection.)

Family Visa Minimum Income Thresholds

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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19:10
Afzal Khan Portrait Afzal Khan (Manchester, Gorton) (Lab)
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I rise to present a petition urging the Government to reverse their decision to increase the minimum income threshold for family visas. This policy, which will see the income threshold for family reunification visas almost double, will lead to multinational families being torn apart. It will entrench the UK’s hostile immigration environment, and is likely to be overwhelmingly discriminatory against ethnic minorities, particularly British Asians. Most concerningly, it threatens the European convention on human rights, which grants everyone the right to family life. I believe that Britain is better than cruel policies like this.

The petition states:

“The petitioners therefore request the House of Commons to urge the Government to not implement the increase in the minimum income threshold for family visas to £38,700.

And the petitioners remain, etc.”

Following is the full text of the petition:

[The petition of residents of the constituency of Manchester Gorton,

Declares that multinational families are facing separation due to the Government's decision to increase the income threshold for family reunification from £18,600 to £38,700; notes that there were 82,395 family-related visas granted in the year ending September 2023, with the most common origin countries being Pakistan, India and the USA; further declares that workers of Pakistani or Bangladeshi heritage have the lowest median hourly pay of any ethnic group which may lead this policy to be overwhelmingly discriminatory against British Asians; and further declares that the European Convention of Human Rights grants everyone the right to family life which this policy could threaten.

The petitioners therefore request the House of Commons to urge the Government to not implement the increase in the minimum threshold for family visas to £38,700.

And the petitioners remain, etc.]

[P002916]

Road Safety: North Yorkshire

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Commons Chamber
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Motion made, and Question proposed, That this House do now adjourn.—(Mr Mohindra.)
00:00
Keir Mather Portrait Keir Mather (Selby and Ainsty) (Lab)
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I am pleased to have the opportunity to use the first Adjournment debate that I have secured to speak about the crucial issue of road safety in North Yorkshire.

I have now been in Parliament for seven months, and some of the most transformative change that I have witnessed in this place has happened when Members have responded to genuinely pressing local need, using every mechanism available to them to fight for their constituents. This is one such case. In my rural constituency, dangerous drivers and inadequate speed-calming measures mean that residents in the communities I represent live in fear. Sadly, according to data provided by the House of Commons Library, there were 36 fatal casualties in Selby and Ainsty between 2018 and 2022. That is second only to the figure in Skipton and Ripon, where 46 fatal casualties occurred during the same period.

The root causes of the issues in my area are clear. Selby and Ainsty has numerous arterial, high-speed roads that pass through village communities with inadequate traffic-calming measures, and rural lanes and streets that were never designed for the motor traffic that we see today. When those infrastructure challenges are combined with the actions of dangerous and reckless drivers, they can have truly lethal consequences.

In the village of Hambleton last month, a person tragically lost their life in a very serious collision. They were attempting to cross the A63, a dangerous main road through the village on which cars travel at unsafe speeds, even though it is surrounded by residential new-build estates and very close to a local school. This was not an isolated incident—there have been numerous accidents on this specific stretch of road—but despite the work of local residents who have set up a road safety action group, the danger remains. I should be grateful if the Minister could provide some advice about what measures are at the community’s disposal and can be pushed so that action is taken—action that I will certainly continue to fight for in this House.

I want to make something very clear: in North Yorkshire, too much of the debate on road safety has been wrongly co-opted into a wasteful, irresponsible and distracting culture war by the Conservative party. It holds a majority on North Yorkshire Council and the executive position for highways, and has 10 of the county’s 12 MPs. If the Conservatives wanted to do something about road safety in my constituency and across the county, they could do so. Instead, they have spent recent months jumping at shadows, fighting anti-motorist policies that do not exist and opposing 20 mph blanket bans that have never been proposed.

All the while, communities in the Selby district are crying out for political representatives who will take the issue of road safety seriously. What is too often forgotten is that when motorists step out of their cars in a village like Cawood or a town like Sherburn in Elmet, they are local people who want to enjoy their communities in safety and with their family. Rather than fomenting divisions that do not exist, the Government and North Yorkshire Council need to sit up, get serious and listen to the concerns of local residents in my area, who cannot wait another day for action to be taken.

The Minister could forgive residents across North Yorkshire for their confusion over the mixed messages they have received from the Conservative party, which has meant that common-sense ways to limit dangerous driving have not been taken. In a piece of literature sent recently to local people in my area, both the local Conservative candidate and the party’s candidate for North Yorkshire Mayor registered their opposition to Welsh-style blanket 20 mph limits, which, to my knowledge, not a single representative of either main party in the county has proposed. In September, however, the very same mayoral candidate, in his role as executive member for highways and transportation on North Yorkshire Council, praised the

“most significant 20 mph zone the council has ever introduced”

in Harrogate. I agree and applaud those efforts, but I ask why there can be a grown-up discussion about road safety in Harrogate, with seven schools having new 20 mph zones placed around them, but in the Selby district we have to deal with unsafe roads and suffer under a Conservative party that is distracted by waging a culture war that simply does not exist.

Andrew Jones Portrait Andrew Jones (Harrogate and Knaresborough) (Con)
- Hansard - - - Excerpts

I congratulate the hon. Gentleman on securing his first Adjournment debate. I have to say that I do not recognise his characterisation of the way the local council approaches road safety issues. He gave the example of Harrogate. That particular campaign was started by two residents, Hazel Peacock and Jenny Marks, and it led to a broader community campaign. The issue of 20 mph zones around schools is fairly uncontroversial, particularly when they are adopted alongside such measures as crossings or barriers along the roadside. I have found that introducing simple measures like those has brought communities together, and it might be a way to help the hon. Gentleman in Selby and Ainsty.

Keir Mather Portrait Keir Mather
- Hansard - - - Excerpts

To an extent, I agree with the hon. Gentleman’s sentiment: it is uncontroversial to have common-sense measures such as 20 mph limits in villages, outside schools and in urban areas. I wish the debate was tret with the seriousness it deserves in my part of North Yorkshire by the council’s executive member for highways, who has been able to achieve that work in Harrogate.

By attempting to turn sensible measures, such as 20 mph zones where they are necessary, into wedge issues in my part of North Yorkshire, the local Conservative party disregards the concerns of local residents. Meanwhile, the council is not taking action in villages such as Lumby, Monk Fryston and Hambleton, where the immediate safety concerns are acute and are badly damaging communities. People want their council to get on with making their villages and towns safe. In some cases, the excuses for inaction just do not add up.

I return to the community of Hambleton, where a local person tragically lost their life. The A63, which bisects the village, is a long, straight stretch of road used by parents with prams, elderly residents and large groups of schoolchildren. It is crying out for pedestrian islands, but North Yorkshire Council has argued that footfall on the road is insufficient, using data from a study that was taken during a school holiday. Although I am pleased that the council has committed to reassessing the area due to the fatality that occurred, an accident should not have had to happen for people to realise that action needed to be taken.

In Monk Fryston, over 800 local residents petitioned for a pedestrian crossing on the A64, and they continue to have my full support. North Yorkshire Council has acknowledged, in my correspondence with it, that speeds are excessive on the road, but it has refused to implement the crossing because it says that there is not a suitable location. I know that the installation of traffic-calming measures is a complicated business, but this road is the key link between Selby and Leeds, providing people with access to the A1. Again, the A64 bisects the village, leaving residents on the other side with no access to local amenities. I ask the Minister to join me in putting the case to North Yorkshire Council that Monk Fryston cannot be held back and disregarded any longer in its campaign for common-sense traffic-calming measures.

I now turn to the wider issue of speeding, which I know is of concern to all our constituents. In Brayton, which lies just to the south of Selby, there has been consistent and widespread concern about speeding along Barff Lane. I am glad that by working with local agencies such as North Yorkshire police, residents’ concerns have been heard and measures have been taken to tackle the chronic problem of speeding on Barff Lane. There is now a speed-activated warning sign along the road and North Yorkshire police are in the process of identifying a suitable location for camera van sites, which will do much to ensure that drivers along the road follows the speed limits and will ultimately save lives in Brayton.

Regrettably, speeding is also seen in other places in my constituency, including Cawood, an extremely rural village whose roads are not fit for the amount of traffic that it sees or for cars going at the speed that they do. I recently held a drop-in event for the community there, and a significant number of residents raised the issue of speeding and dangerous driving on Sherburn Street. I want to make it clear that the safety of residents in Cawood should be a top priority for both North Yorkshire Council and North Yorkshire police. Although I have been assured by the council that there are several existing traffic-calming measures in Sherburn Street, they are in reality having a minimal impact on speeding in Cawood. I would greatly appreciate any support the Minister can give me and local residents in working with North Yorkshire Council and the police to push for measures that will provide a lasting solution to this issue.

It is clear that we have a lot to do, both in Selby and Ainsty and across North Yorkshire, to improve road safety. Every single injury and road death in our communities is one too many, and we must all work together to prevent this debate from being reduced to meaningless, wasteful and distracting culture wars when our constituents are crying out for common-sense change. We need to ensure that local families and the communities in which they live are protected across the length and breadth of our great county, and I look forward to working with anyone who is willing to make this a reality.

19:21
Guy Opperman Portrait The Parliamentary Under-Secretary of State for Transport (Guy Opperman)
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I congratulate the hon. Member for Selby and Ainsty (Keir Mather) on securing his first Adjournment debate. I think this is the first time I have had the opportunity to answer questions from him in the House of Commons, so I congratulate him on winning the by-election. My research tells me that he was born in 1998, which is a very scary thought for those of us who well remember 1998. It is of particular concern to me that when he first came to the House, he indicated to me that he used to work for my first parliamentary staffer, Pete McManus, whom he described as my boss. It is a worry when things are so proximate that the age of individual Members of Parliament is catching up on you. I am sure that that is not an issue for anyone else in the House but it definitely is for me.

I take this debate very seriously, and the hon. Gentleman rightly raises the concerns of his constituents. I pass on my condolences on behalf of the Government and on behalf of everyone here today for the recent fatality that has taken place. Before responding to the essence of what he said, I want to make it clear that every death or serious injury on our roads—not just in North Yorkshire but up and down the country—is a tragedy, and we continue to work tirelessly to improve road safety for all users. That is not just drivers; it is also pedestrians, motorcyclists, cyclists and mobility scooter users. However, the fact is that Britain has some of the safest roads in the world. The most recent records show that 1,711 people were killed and 28,000 seriously injured on our roads. However, that is clearly a tragedy for any individual so affected and for their family, and we want to work to address that.

I want to make a number of points. Speed-calming measures were a massive part of the hon. Gentleman’s speech. Local authorities, as he rightly identified, have powers under the Highways Act 1980 to install a range of traffic-calming measures. Road humps, chicanes and other such features have all been proven to reduce inappropriate vehicle speed, which, as well as reducing the risk of collisions, lessens the severity of any that do occur. There is also the ability to install other measures to improve road safety, such as pedestrian crossings and 20 mph speed limits. The Department for Transport produces a wide range of good practice advice to help our local authorities to design and deliver such measures. It is for the local council to decide what measures may be appropriate in different locations, taking into account a vast number of criteria. The Department does not set numerical criteria for footfall or collision numbers that must be met to justify the installation of such safety measures. Local authorities can choose to set their own criteria, but that is a decision for them.

I now turn to the vexed issue of 20 mph zones. Every Member will be acutely aware that the introduction of a not total but effective 20 mph zone in Wales has been a singularly unpopular policy that has caused great concern, and it is certainly not something that the Government support. On the other hand, as far as I am aware, not a single Member of Parliament is against the concept of 20 mph zones around schools. There has to be a happy medium, and that is a local authority decision. There are all manner of different factors, including how a zone will influence quality of life, road safety, the environment and the local economy. Local authorities should also take into account the Department’s plan for drivers. To assist them, we are updating the 20 mph speed limit guidance for England to ensure consistency.

I asked for the road safety statistics for the hon. Gentleman’s constituency dating back some considerable time, and my source is the STATS19 data adjusted for changes in reporting systems. There were 46 KSI—killed or seriously injured—casualties on an adjusted basis in 2022, compared with 138 in 2009. We all accept that all the numbers are too high. There is much criticism of both the local authority and this Government, but I gently point out that Labour was in government in 2009. There is a significant difference, and the number has been in double figures since 2013. One can bandy around statistics, but it is clear that the number has come down significantly.

There are a couple of key points to note. First, there has clearly been significant investment in North Yorkshire with the A59 Kex Gill scheme, the A164 Jock’s Lodge junction improvement, the A1237 York outer ring road dualling and the A1079 improvement scheme. I merely make the point that those road improvements have inevitably improved safety.

Andrew Jones Portrait Andrew Jones
- Hansard - - - Excerpts

The Minister will have seen that, yesterday, York and North Yorkshire Combined Authority was allocated £380 million from the local transport fund. When we have a local Mayor in place, could that money be used to fund road safety improvements through capital projects?

Guy Opperman Portrait Guy Opperman
- Hansard - - - Excerpts

The answer is yes, quite simply. It is legitimate to say that this new money for areas across the country, which was announced only yesterday, is a result of the Prime Minister’s decision on the second leg of High Speed 2. A £4.7 billion, seven-year local transport fund has been made available to a large number of local authorities outside the city regions—city regions receive city region sustainable transport settlements—in the north and midlands.

The LTF includes £2.5 billion for local authorities in the north and £2.2 billion for local authorities in the midlands, and that funding will be available from 1 April 2025. This allows local authorities and combined authorities to plan and set their processes, to consult in the appropriate way and then to deliver.

The York and North Yorkshire Combined Authority will receive £379 million—I correct my hon. Friend by £1 million—from the local transport fund, which will be game changing. There is much criticism of the local authority, but I met Keane Duncan, local representatives and Members of Parliament when I visited the region at the beginning of January. I was impressed by their commitment to try to do transformational work for North Yorkshire, which includes making the case for further funding. As my hon. Friend outlined, we have been delighted to set forth and provide that. It can bring about road improvements, pelican crossings, road safety measures and traffic-calming measures, and can address other particular points. The guidance will be published shortly, but the fact that it is dramatic new money to assist with specific transport policies can only be welcomed.

I wish to make a few extra points. Road safety is determined, fundamentally, by individual drivers. We should all acknowledge that we can throw brickbats at local authorities or Government, but we require drivers to change their ways. When my hon. Friend was in the Department for Transport, he instituted changes to the highway code and to the driving test. The test that those of us of more advanced years took is dramatically different from the one taken by someone of more recent years, and the highway code is also dramatically different. It includes a hierarchy of road users and makes it very clear that there is a greater degree of reliance upon safety; we are conscious that the driver needs to be better qualified. There is no comparison between the old test and the new test. That has made a difference, which can be seen in the reduction in the numbers that we see in the safety statistics. That is just the tip of the iceberg, and I wish to set out some of the other Government interventions that have been made.

The safer roads fund has invested £47.5 million to fund 27 schemes, taking the total funding to tackle our most dangerous roads to £147.5 million over 83 schemes since 2017. We have made interventions to legislate to address some of the most dangerous activity on our roads. Clearly, the rules on mobile phones have changed. We have also increased the sentence for causing death by dangerous driving, or careless driving while under the influence of drink or drugs, from 14 years’ to life imprisonment. We have increased the disqualification period for those causing death by dangerous driving or death by careless driving when under the influence of drink or drugs from two years to five.

We have also undertaken a number of projects to improve the safety of our roads, including the roads policing review, whereby the number of forces putting road policing in their police and crime plans has increased from 15 to 42, with 30 now including road safety. Roads policing has been a strategic policing requirement since February 2023. That sounds techy but it genuinely makes a difference. Our Project RADAR is a systematic investigation that is creating new opportunities to combine and compare data across Departments, arm’s length bodies and policing. That is identifying and intercepting the most dangerous vehicles on our roads. I could go on.

Carla Lockhart Portrait Carla Lockhart (Upper Bann) (DUP)
- Hansard - - - Excerpts

This is a wonderful debate and I commend the hon. Member for Selby and Ainsty (Keir Mather) for bringing it to the Floor of the House. I thank the Minister for permitting me to intervene. He will be very aware of my interest in the increase in insurance premiums, as we had a Westminster Hall debate on that last week. People are now deciding not to insure their vehicle and still go on the road, which is increasing risk. Does he agree that action is needed to ensure that we support young drivers to get on the roads, but to do so safely? Will he further consider the graduated driver licensing scheme, which I believe would help with that safety element for young people?

Guy Opperman Portrait Guy Opperman
- Hansard - - - Excerpts

The hon. Lady is continuing in a rich tradition established by her illustrious colleague the hon. Member for Strangford (Jim Shannon). We miss him in the debate today, but we take her as a very able replacement. Her debate last week was attended by a number of colleagues and I have had a chance to read it; I should have been responding to it, but I happened to be responding to the Adjournment debate in this place at the same time and, as we all know, nobody can be in two places at the same time in the House of Commons, so I apologise, but the Under-Secretary of State for Transport, my hon. Friend the Member for South Cambridgeshire (Anthony Browne), sat in for me at that debate.

I will take away the comments that the hon. Lady made today and in last week’s debate, and write to her in more detail, if she would be so gracious as to allow me to do so. I take on board that there are clearly ongoing issues in respect of insurance. We are working with insurance companies; there have been issues around raising the price of insurance that are, quite frankly, beyond the Government’s control. She makes some legitimate points on the matter, and we want to address those that she raised both in the debate last week and today.

Let me back to the points made by the hon. Member for Selby and Ainsty. There are certain key campaigns; changes to the highway code and driving tests are key, because we are trying to change drivers’ behaviour. That is the most important thing. We can rail against individual pieces of road, but changing the behaviour of drivers is the real way to improve road safety. The Department for Transport’s THINK! campaign continues to target the most at-risk group. Its aim is to reduce the number of people killed and seriously injured on the roads by changing attitudes and behaviours.

I could go on in more detail, but I will make a couple of final points. The safer roads fund has undertaken key projects in North Yorkshire, including £900,000 for the A167, £615,000 for the A682, £7 million for the A684 and £2.9 million for the A6108. Those are substantial investments that the Government have made in the past. Substantial investment will also follow yesterday’s announcement, which makes this debate all the more relevant.

To conclude, I congratulate the hon. Member for Selby and Ainsty on securing his first debate. He raises important points for his local community, and I am certain they will be taken on board. I would gently push back on the points he makes about local statistics, the actions of his local authority and the complexity of the issues. The key point is that it is in all our interests to try to improve road safety up and down the country.

Question put and agreed to.

19:36
House adjourned.

Draft Paternity Leave (Amendment) Regulations 2024

Tuesday 27th February 2024

(9 months, 3 weeks ago)

General Committees
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
The Committee consisted of the following Members:
Chair: Stewart Hosie
† Afriyie, Adam (Windsor) (Con)
† Ali, Rushanara (Bethnal Green and Bow) (Lab)
† Allin-Khan, Dr Rosena (Tooting) (Lab)
† Eustice, George (Camborne and Redruth) (Con)
Ghani, Ms Nusrat (Minister for Industry and Economic Security)
Hodgson, Mrs Sharon (Washington and Sunderland West) (Lab)
Lewell-Buck, Mrs Emma (South Shields) (Lab)
† Mackrory, Cherilyn (Truro and Falmouth) (Con)
† Smith, Jeff (Manchester, Withington) (Lab)
† Stafford, Alexander (Rother Valley) (Con)
Tarry, Sam (Ilford South) (Lab)
† Thomson, Richard (Gordon) (SNP)
† Tolhurst, Kelly (Rochester and Strood) (Con)
† Tuckwell, Steve (Uxbridge and South Ruislip) (Con)
† Vickers, Matt (Stockton South) (Con)
† Watling, Giles (Clacton) (Con)
† Wood, Mike (Lord Commissioner of His Majesty's Treasury)
Abi Samuels, Committee Clerk
† attended the Committee
The following also attended, pursuant to Standing Order No. 118(2):
Hollinrake, Kevin (Parliamentary Under-Secretary of State for Business and Trade)
Third Delegated Legislation Committee
Tuesday 27 February 2024
[Stewart Hosie in the Chair]
Draft Paternity Leave (Amendment) Regulations 2024
09:25
Mike Wood Portrait The Lord Commissioner of His Majesty's Treasury (Mike Wood)
- Hansard - - - Excerpts

I beg to move,

That the Committee has considered the draft Paternity Leave (Amendment) Regulations 2024.

Kevin Hollinrake Portrait The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
- Hansard - - - Excerpts

It is a pleasure to serve with you in the Chair, Mr Hosie. The draft regulations were laid on 10 January 2024. I am pleased to be here today to debate these measures, which will benefit families by working alongside the paternity pay regulations to provide valuable additional flexibility to paternity leave, effectively making it easier and more useful for parents while putting minimal burdens on businesses.

Currently, eligible employed fathers and partners are entitled to one or two consecutive weeks of statutory paternity leave and pay to care for their baby or to support the mother. This must be taken within eight weeks of birth or placement for adoption. The regulations recognise the importance of fathers and partners spending valuable time with their children in the first year following birth or adoption and will make it easier for parents to take their full paternity entitlement.

Some 64% of respondents to the 2019 consultation, “Good Work Plan: Proposals to support families”, wanted greater flexibility in when and how paternity leave could be taken. Allowing fathers and partners to take their leave up to a year following birth or adoption was the most commonly suggested measure to accomplish that. Our changes will provide that much-needed flexibility and will fulfil our 2019 manifesto commitment to make paternity leave easier to take.

Our first change will allow fathers and partners to take their leave in non-consecutive blocks. Currently, only one block of leave can be taken, which can be either one or two weeks. Our change will remove that barrier by enabling parents to take two non-consecutive weeks of leave. We hope that providing fathers and partners with the flexibility to take their two weeks of leave non-consecutively means that they will find it easier to use their full entitlement.

For some parents, taking two weeks of leave in one go is challenging due to pressures of work or other reasons. Enabling parents to take their leave non-consecutively means that they can take it at a time that works best for them and could lead to an increase in parents taking their second week of paternity leave.

Our second change will allow fathers and partners to take their leave and pay at any point in the first year after the birth or placement for adoption of their child. This represents a big increase from the eight weeks in which parents currently have to take their leave following birth or adoption. This change gives parents more flexibility to take their paternity leave at a time that works best for their family.

For example, this change could enable a father or partner to take time off work to be the primary care giver when the mother returns to work. This is important, as evidence shows that fathers who spend time solo parenting are more likely to play a greater role in caring for their children in later years.

Our third change will shorten the notice period required for each period of leave. The new regulations will require an employee to give only four weeks’ notice prior to each period of leave, instead of 14 weeks before the expected week of childbirth. This means that a parent can decide when to take their leave at shorter notice to accommodate the changing needs of their families. This will apply to parents in birth and surrogacy scenarios, as the notification rules are different for adopters. It will also allow fathers and partners to change the number and dates of blocks of leave they plan to take. Responses to the “Good Work Plan” consultation show that both employer and employee groups considered that to be a fair and practical option.

The Government have in place a range of leave and pay entitlements to support parents to balance their work and family responsibilities in a way that works best for them. For families who would prefer a father or partner to take a longer period of leave, shared parental leave may be available. This entitlement allows eligible parents to share up to 50 weeks’ leave and up to 37 weeks of pay between them. Parents can choose whether to take time off together or to stagger their leave and pay.

The Government are also introducing new entitlements to enhance the current provision for working parents, including additional protections against redundancy, which will be available from 6 April for pregnant women and parents who are returning to work after a period of eligible parental leave. There are also improvements in flexible working. From 6 April, employees will be able to request flexible working from their first day of employment, and the new entitlement of carer’s leave will give unpaid carers one week of leave from work from their first day in a job. That can be used to provide care or to make arrangements for the provision of care for a dependant with a long-term care need.

We are also introducing new leave and pay entitlements for parents with children who spend time in neonatal care. That will give each eligible employed parent up to 12 weeks of additional paid leave on top of their existing entitlements if their baby is admitted to neonatal care in its first month of life. That will ensure that parents no longer find themselves in the incredibly difficult position of having to choose between risking their job and spending time with their baby during such a stressful time. I commend the regulations to the Committee.

09:31
Rushanara Ali Portrait Rushanara Ali (Bethnal Green and Bow) (Lab)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairmanship, Mr Hosie. The birth of a child, and their early years, are crucial periods for the child and their development. They are special and very important for parents to be involved in. Parental leave is crucial to making this period a smoother, healthier and more beneficial time for parents and newborns alike. I welcome these reforms, which make parental leave more flexible and thereby open up the opportunity for increased parental involvement in the child’s first year. These changes are a step in the right direction, and we will not stand in the way of measures that facilitate greater take-up of important workers’ rights, particularly those that will help more women to return to work after having a child.

The current paternity leave system is too rigid: leave must be taken in one block of no more than two consecutive weeks within a period of eight weeks after the child’s birth and the employer must be notified 14 weeks beforehand. We will all be familiar with cases in our families and constituencies of how that can be a barrier to parents, particularly fathers and partners, who want to take that leave. It is limiting for them, and I am glad that these changes will go some way towards making improvements.

Although I welcome these changes, I still have concerns that this will not go far enough to meet the stated aims of the policy in the impact assessment, which is to allow

“more fathers/partners to play a greater role in caring for their children”.

It is a shame that this opportunity has not been used to reform the failed shared parental leave system. In October 2020, the Women’s Budget Group commission on a gender-equal economy noted:

“At the root of women’s disadvantage in the labour market is inequality in unpaid work…75% of mothers face pregnancy or maternity-related discrimination”

Along with many other campaign groups, it has reiterated the need for implementing equal parental and caring leave policies as a crucial step in addressing this.

If the Government are committed to encouraging fathers and partners to play a more active role in lessening the burden on mothers, doing this would no doubt have a greater impact. Take-up of shared parental leave is measured in two ways: as the proportion of eligible fathers who take a shared parental leave each year, or as the proportion of new mothers starting statutory paid maternity leave each year who used the shared parental leave scheme to transfer some of that paid leave to the child’s father. The second method is more meaningful because the size of the pool of eligible fathers is unknown. According to Maternity Action, in 2021 and 2022, only 2% of mothers used shared parental leave to transfer leave to a partner. That figure shows that shared parental leave is not reducing the domestic burden on women. It is not helping women to return to the workplace, and it continues to restrict the involvement of fathers and partners in this crucial time in their child’s life. The Government’s consultation on shared parental leave concluded that the system was found to be “too complicated” for many respondents to use and there was a lack of awareness about the available leave. Despite receiving that report, the Government stated:

“We are not proposing any changes to shared parental leave or unpaid parental leave at this time.”

Can the Minister explain why the Government refuse to take further action to reform shared parental leave?

Today’s changes in the policy area stem from the 2019 Conservative party manifesto, which committed to

“look at ways to make it easier for fathers to take paternity leave.”

It is only now, five years later and just before another general election, that that manifesto pledge is being looked at. The consultation took place in 2019 and the response was published in June 2023. I would be grateful if the Minister could explain why there was such a long delay, which has meant that we have not seen the benefits of the changes that could have happened sooner. The delays to this crucial legislation speak to a wider context in which the Government have not prioritised the importance of addressing workers’ rights.

The Minister has a great track record of being persistent on issues for which he has responsibility. I hope that he will speak to his colleagues to ensure that we continue to build on what has been announced and done today to address the wider issues affecting parental leave and the discrimination faced, particularly by women, and make the much-needed reforms to ensure that shared parental leave in practice derives the benefits that are desperately needed for parents.

09:36
Richard Thomson Portrait Richard Thomson (Gordon) (SNP)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairship this morning, Mr Hosie. On behalf of my party, I very much welcome the statutory instrument. It is important to recognise that we are broadly congratulatory on the greater flexibilities, but I will mark a waypoint on the public record about how far the UK still lags behind other jurisdictions.

I will give two examples across the North sea. On the length of parental leave, Norway allows 49 weeks of parental leave, with 15 weeks reserved for each parent. Sweden allows 480 days of parental leave, with each parent, if there are two, allowed 240 of those days. While we recognise the flexibility that this legislation will bring, let us not forget how far behind many other prosperous northern European societies we are. With that said, anything that makes it easier to take paternity leave and encourages its uptake must be a good thing. To that extent, we very much welcome the flexibility brought by the legislation on the timing of the leave, the notice required to be given in order to take up that leave and the flexibility in how it is taken.

To speak personally as a father of two, when I took some parental leave after the birth of my first child, the first week certainly was not terribly restful, and getting back to work was actually a blessed relief in many respects. The poor girl was tongue-tied. That was not noticed in the hospital, and feeding her became far more of a challenge that it ought to have been, which was to her great detriment. However, having flexibilities in the legislation might have helped us to navigate that. At the time, I was a local authority councillor; I had a great deal more flexibility than many other people—certainly many other fathers—in how I could manage my workload to balance home life and get as much of those precious early few weeks with both my children after they were born as I could. I certainly benefited from that, and I hope that as a family unit we all benefit from it going forward. As the Minister said, there is a considerable body of evidence showing that when fathers are involved in caring for their children and in their upbringing, a range of better outcomes result across the course of everyone’s lives.

I will veer off momentarily to say how important this legislation is in tackling gender inequalities. At Prime Minister’s questions on International Women’s Day, I highlighted a report by the pension firm Scottish Widows that showed that women were retiring with a pension pot worth £123,000 less on average than men. Further, a woman aged 25 today would be on track to retire with a pension pot £100,000 less than her male counterpart.

There is no doubt that a whole range of reasons that contribute to that, including discrimination and attitudes in the workplace, a large part of which come back to the differences that emerge after people go on to start a family. Anything that recalibrates attitudes and which not just allows but encourages men to play a more active role in the upbringing of their children, in particular to get involved at that early stage, hopefully breeding good habits that go on as their children grow up, has to be a good thing.

There is no single measure that will tackle that gender inequality, particularly that gap. Rather, a series of small measures such as this one will start to make the difference. I very much welcome the flexibilities in the regulations, but we need to remember that there are other places that are doing this much better than us in the overall amount of leave for parents of whatever gender, and I firmly believe that we should aspire to improve that as well.

09:41
Kevin Hollinrake Portrait Kevin Hollinrake
- Hansard - - - Excerpts

Before I respond to hon. Members, may I apologise for the late change in Committee attendance? The hon. Member for Bethnal Green and Bow made an interesting point and I welcome her challenge. She mentioned pregnancy and maternity discrimination. As I said in my speech, we have recently legislated for that, to provide more protections in pregnancy and on return to work. On the take-up of shared parental leave, those are very much a floor and not a ceiling, and many employers go much further in both the private and the public sector. Take-up of shared parental leave is in line with expectations and, indeed, has doubled in recent years.

There are obvious reasons for not going further. We tread carefully when placing extra burdens on business and we are clear about that. A strong labour market is in workers’ as well as employers’ interests, so it is about striking a balance. In addition to these regulations and others, we have brought in measures that create extra burdens for businesses, such as flexible working, day-one rights, carer’s leave and neonatal care. Those are on top of other burdens that businesses face, such as cost of living pressures and the rise in the national living wage, which has increased by historic amounts. We believe that we have struck the right balance.

The Opposition may differ and set out, as they have, to go much further if they are ever in government. I am interested in their intention to have a day-one right to unfair dismissal. Employers should look carefully at that as it might upset the delicate balance between workers and employers, to the detriment of workers. We have to guard against that.

On delays, we would have liked to introduce the regulations more quickly, but it is fair to say that we have been dealing with covid and its aftermath. That is not just about the administration of some of the measures but the impacts on business, and we have to tread carefully in that regard.

The SNP spokesman, the hon. Member for Gordon, made some interesting points, and asked why we cannot go much further on parental leave, citing Norway and Sweden. Looking at work by the Institute for Fiscal Studies, the average tax take in Norway and Sweden is 43% of GDP. In comparison, it was 32% of GDP in the UK in 2021. The hon. Member may want to go 13% higher with our taxing of businesses and people; we do not and that is very clear. It is clearly the direction of travel in Scotland under the SNP. Under our Government, however, we want to keep taxes low. Where there are those kinds of measures, they have to be paid for by somebody, and inevitably that is the taxpayer. We therefore think we should tread carefully.

We support the regulations, which deliver on our manifesto commitment. We want the UK to be one of the best places to work and to start and grow a business. We want to build skills, increase productivity and move to a high-wage economy that delivers this ambition. We will continue to prioritise labour-market policies, such as these changes to paternity leave, which have the potential to benefit the most people, the most firms and the most jobs while at the same time ensuring we balance burdens on business and taxpayers. The changes to paternity leave brought forth today will advance our progress towards those objectives. I thank hon. Members for their contributions and I commend the regulations to the Committee.

Question put and agreed to.

09:45
Committee rose.

Draft Occupational Pension Schemes (Collective Money Purchase Schemes) (Amendment) Regulations 2023

Tuesday 27th February 2024

(9 months, 3 weeks ago)

General Committees
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
The Committee consisted of the following Members:
Chair: Carolyn Harris
† Bailey, Shaun (West Bromwich West) (Con)
† Baillie, Siobhan (Stroud) (Con)
† Bell, Aaron (Newcastle-under-Lyme) (Con)
Creasy, Stella (Walthamstow) (Lab/Co-op)
† Furniss, Gill (Sheffield, Brightside and Hillsborough) (Lab)
† Henry, Darren (Broxtowe) (Con)
Jones, Mr Kevan (North Durham) (Lab)
† Kruger, Danny (Devizes) (Con)
Leadbeater, Kim (Batley and Spen) (Lab)
Linden, David (Glasgow East) (SNP)
† Maynard, Paul (Parliamentary Under-Secretary of State for Work and Pensions)
Spellar, John (Warley) (Lab)
† Thomas, Derek (St Ives) (Con)
† Wheeler, Mrs Heather (South Derbyshire) (Con)
† Wild, James (North West Norfolk) (Con)
† Winter, Beth (Cynon Valley) (Lab)
† Wright, Sir Jeremy (Kenilworth and Southam) (Con)
Huw Yardley, Committee Clerk
† attended the Committee
The following also attended (Standing Order No. 118(2)):
Western, Andrew (Stretford and Urmston) (Lab)
Fourth Delegated Legislation Committee
Tuesday 27 February 2024
[Carolyn Harris in the Chair]
Draft Occupational Pension Schemes (Collective Money Purchase Schemes) (Amendment) Regulations 2023
14:30
Paul Maynard Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
- Hansard - - - Excerpts

I beg to move,

That the Committee has considered the draft Occupational Pension Schemes (Collective Money Purchase Schemes) (Amendment) Regulations 2023.

It is a pleasure to serve under your chairmanship, Mrs Harris. The instrument clarifies requirements on trustees of authorised collective money purchase schemes, which are more commonly known as collective defined contribution or CDC schemes. The Government believe CDC schemes have an important role in the future of pensions in this country. CDC schemes offer members a seamless transition to the regular retirement income that we know many want, without the need for complex financial decisions that many are ill equipped to make.

The Government want to ensure that as many savers as possible can take advantage of the numerous benefits of CDC. By pooling longevity and investment risk across their membership, CDC schemes can shield savers from much of the uncertainty faced by members of DC schemes, which allows the CDC schemes to target higher investment returns. As part of our Mansion House reforms, that will help to unlock capital for our most promising industries and increase returns for savers, supporting growth across the wider economy.

The Pension Schemes Act 2021 provided the legislative framework for single or connected employer CDC schemes to be set up in the UK. Those regulations came into force on 1 August 2022, enabling such schemes to apply for authorisation from the Pensions Regulator. Throughout the development of our policy, the Government have engaged with stakeholders on how best to deliver CDC in the UK and invited challenge and scrutiny. In that vein, we have been helpfully advised that two areas of the current framework do not meet our published policy intent. CDC schemes can only succeed if there is confidence in this new type of provision. The technical changes made by this instrument ensure that prospective schemes are set up to work as we intend from the start.

Turning to the first amendment made by this instrument, the existing regulations make provision in relation to the annual actuarial valuation and benefit adjustment process for CDC schemes. That means that, each year, benefits are reviewed and adjusted where required, so that the value of assets held is in balance with the projected costs of benefits. It is important that a balance is maintained between the value of the available assets of the scheme and the amount needed to provide the target benefits to members on an ongoing basis.

The policy intention is to provide that, where a cut to benefits must be made due to an economic downturn, the trustees of the CDC scheme can smooth the impact of the benefits cuts on members over three years. That is called a multi-annual reduction. The mechanism helps to reduce volatility and to ensure that current and future benefits remain relatively stable, in contrast with individual DC schemes, which have no pension smoothing mechanism. Members of those schemes experience the full impact of falls in investments as they happen, which can lead to a significant reduction in the value of their retirement savings immediately. For savers closer to retirement, that may be unrecoverable.

The intention is that, where a market recovers during a multi-annual reduction, increases in benefits resulting from a subsequent annual valuation would first be offset, in whole or in part, against the remaining planned cuts under the multi-year adjustment before any remaining increase can be applied as an increase to future benefits in the normal way. If we did not do that, the benefits of the recovery would likely go to future pensioners. That would run against our principle that, as far as possible, all members—that is, current pensioners, those who are currently accruing benefits and those who are not contributing, but have rights to a future pension from the scheme—should all share in the upsides and downsides at the same time. The instrument also ensures that information about any multi-annual reduction and subsequent offsetting must be reported to the Pensions Regulator in the actuarial valuation to ensure proper oversight.

The second amendment ensures that, when a scheme winds up, a beneficiary’s accrued rights are transferred to suitable pension schemes or alternative payment arrangements. A key element of the wind-up process is calculating the share of the fund for each person who is a beneficiary at that time. The scheme rules may provide that that person be a member, but could include a spouse, a child or a person financially dependent on the deceased beneficiary. Our intention has always been that if that beneficiary dies during the winding-up period, the pot allocated to them will not be extinguished but be reallocated among their successors, where a scheme’s rules provide for that.

In conclusion, CDC schemes are an important addition to the UK pensions landscape. When well designed and well run, they have the potential to provide a good retirement outcome for members. The draft instrument will provide clarity for schemes moving forward by more accurately reflecting our intent.

14:35
Gill Furniss Portrait Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
- Hansard - - - Excerpts

As usual, it is a pleasure to serve under your chairpersonship, Mrs Harris. The Minister has covered all the technical details, so I will not repeat them, even though they are important to why we will not be opposing the draft instrument.

As we have heard, the instrument makes technical amendments to clarify two areas of regulations relating to collective defined contribution pension schemes. The first is to mitigate the impact on members when reductions to benefits need to be made. The second is to provide clarity on the categories of flexi-access drawdown fund to which accrued rights in a CDC scheme that is being wound down can be transferred.

We will not be opposing the measure, and we hope that it represents a step forward in getting CDC schemes up and running. To date, only one pension scheme has been granted CDC authorisation—the Royal Mail collective pension plan, which my former colleague Jack Dromey worked very hard to secure. The journey up to this point has been challenging, and I commend those in Royal Mail and the union representatives who were able to reach that milestone agreement. It is important that the remaining regulatory hurdles are cleared as soon as possible so that they can actually launch the CDC scheme. I welcome recent progress in that area, particularly from the Department for Work and Pensions side. However, I understand that new tax legislation and guidance is still outstanding. I hope that will be resolved in the upcoming Budget. From his conversations with colleagues in the Treasury, could the Minister confirm whether that is the case?

To conclude, we support efforts to get CDC schemes off the ground as soon as possible, so, as I have said, we will not oppose the draft instrument. I know that many in the pension sector are eagerly awaiting the launch of the Royal Mail scheme; I hope that that is now in the very near future, and I look forward to seeing its progress.

14:37
Paul Maynard Portrait Paul Maynard
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I echo the hon. Lady’s comments on Royal Mail, the late Jack Dromey and the Communication Workers Union ushering the CDC initial vehicle almost to its delivery. I think it is coming very soon—in just a few weeks, if not months.

I can confirm that we have worked closely with the Treasury to ensure that we get in place all the wider regulations needed, particularly for multi-employer trusts, which are slightly more complex than Royal Mail, and indeed even those that might cover a whole profession with a range of similar characteristics. That work is ongoing with the Treasury, and I stress that the draft regulations are part of it. On that note, having answered that point, I commend the regulations to the Committee.

Question put and agreed to.

14:38
Committee rose.

Westminster Hall

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Westminster Hall
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Tuesday 27 February 2024
[Sir Charles Walker in the Chair]

Child Maintenance Service

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

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

09:30
Stephen Timms Portrait Sir Stephen Timms (East Ham) (Lab)
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I beg to move,

That this House has considered the Child Maintenance Service.

I am delighted to serve under your chairmanship, Sir Charles.

I am grateful to the Backbench Business Committee for allocating this debate, prompted by the Select Committee on Work and Pensions inquiry on the Child Maintenance Service. We published our report last April, and the Government their response in July. The Child Maintenance Service, which I shall refer to as the CMS, was introduced in 2012 to replace the Child Support Agency.

Child maintenance is paid in three ways: non-statutory, family-based arrangements, in which the CMS plays no part; direct pay, where the CMS calculates the amount due and draws up a schedule, but the parents themselves arrange payment; and, thirdly, collect and pay, where the CMS calculates the maintenance owed, collects it from the paying parent and transfers it to the receiving parent. For direct pay, there was, until yesterday I think, a £20 application fee, waived for under-19s and in cases of domestic abuse. For collect and pay, the paying parent pays an extra 20% of the maintenance owed and the receiving parent receives just 96% of what they would have under direct pay.

The Department for Work and Pensions reported 2.5 million separated families in Great Britain in March 2022, with 4 million children in those families. The National Audit Office says that about half receive at least some child maintenance, and one in three has an arrangement that is satisfied in full. Of those with any arrangement, around 500,000 were on direct pay or collect and pay, but nearly 1 million had a family-based, non-statutory arrangement. The National Audit Office made the point that take up of the CMS has been lower than expected, for reasons that the Department does not know, and that setting up the CMS has not increased the number of effective child maintenance arrangements.

Our report made recommendations about the calculation of child maintenance. The maintenance assessed for some parents—I think this is now widely acknowledged—is unaffordable in some cases, causing serious hardship. The bands for calculating maintenance are in primary legislation, so it is hard to change them. Christine Davies, who is honorary senior lecturer in mathematics at Royal Holloway, University of London, told us that because inflation over the past quarter of a century has not been allowed for, someone earning £15,000 today should, according to the scheme’s original intentions, be paying £364 per year in maintenance, but is actually required to pay almost 10 times that or £3,500 per year.

The Callan review called for the formula to include both parents’ income, instead of only the paying parent’s. The Government rejected that, but said they would explore the possibility in their review of the calculation formula. The Government have committed—I welcome this—to a “fundamental review” of the child maintenance calculation. The Minister in the Lords told us in correspondence that the review would be wide ranging and take some time. When the Minister winds up, will he tell us whether we can expect changes before the election?

This is urgent. We have heard of paying parents taking their own lives, because the demands being made of them are simply impossible for them to meet. I was in touch yesterday with Mr Ian Briggs, whose son, Gavin Briggs, took his own life. Mr Ian Briggs told me that on 26 June 2020, the CMS sent his son a letter telling him he owed nearly £16,000. His son took his life a few days after that on 1 July, and on that day his account showed less than £4,000 in arrears. Mr Briggs asks:

“How can this be possible?”

He has had no answer to that question.

The CMS was established to deliver more effective maintenance arrangements, but there is little data on how many direct pay arrangements are effective. We do not know how much child maintenance is not being paid. We asked DWP to monitor the effectiveness of the arrangements proactively—for example, with yearly surveys of parents with direct pay arrangements—but the Government said no to that. My question to the Minister is: what are the Government’s plans for monitoring that for research on the subject? Does the Department think that it understands the effectiveness of direct pay? If so, what evidence is it using? We do not think that it does. How many direct pay arrangements switched to collect and pay or family-based arrangements in the first 12 months? Does the Department know why that is happening?

The Committee also raised concerns about collect and pay. About half of paying parents with those arrangements do not pay or pay less than they should. We heard that enforcement is slow and often ineffective, so we welcomed the Child Support (Enforcement) Act 2023. That was taken through the House by the hon. Member for Stroud (Siobhan Baillie), who I am delighted is in her place this morning and who makes a distinguished contribution to the work of the Committee. The Act aims to speed up enforcement by allowing CMS to make administrative liability orders when a paying parent has not paid and deduction of earnings is not appropriate. Previously, CMS needed to apply to a court for a liability order, taking up to 22 weeks. The secondary legislation on that will specify the notice that CMS must give to the paying parent before making an order—seven days for those living in the UK and 28 days for those overseas—and set out the process for paying parents who want to challenge a liability order. The Government published their response to the consultation on that two weeks ago, on 12 February. Can the Minister tell us when the secondary legislation will be introduced?

Another set of recommendations in our report was about domestic abuse. In October 2021, the Government asked Dr Samantha Callan, who I already mentioned briefly, to conduct an independent review of CMS processes and procedures for supporting parents subject to domestic abuse. Her report was published in January 2023, and the Government accepted eight of its 10 recommendations. On the first recommendation, the Child Support Collection (Domestic Abuse) Act 2023 received Royal Assent last July; I am pleased to see the hon. Member for Hastings and Rye (Sally-Ann Hart) in her place this morning as well. Where there is evidence of domestic abuse, a parent can set up collect and pay at the start instead of first trying direct pay, so the two parents need not be in contact. Last September, a written answer said that bringing the Act into force would require consultation and secondary legislation. Can the Minister tell us what the timetable is for those?

Our report asked for a timetable for all the work arising from the Callan review. One strand of that is a pilot of single, named caseworkers for complex domestic abuse cases. In the written answer that I referred to earlier, the Minister said that the Department had started a pilot and it would be evaluated. Can the Minister tell us when that will be and how the pilots went?

I am worried about that, because yesterday I spoke to Rachel Parkin, who gave evidence to the Committee’s inquiry. She is an abuse victim. The former CMS chief executive apologised to Rachel for how her case was handled, assured her that she would be on collect and pay permanently and that she would be in the pilot of a single caseworker. She had a single caseworker for a period of eight months. Her calls in that period were automatically routed to the right caseworker—it worked very well—and she made real headway in resolving long-standing difficulties, but now, without any explanation, she is being put back on direct pay. She has simply been told by the service that it is not bound by promises made to her by a former chief executive. She will be back to random caseworkers and the debilitating need to go through her story every time, which so many people talked to us about during our inquiry.

Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
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I am reluctant to interrupt the right hon. Member in full flow, but while he is talking about the failures to give adequate support to people who report that they have been living in an abusive relationship, may I ask whether he was as concerned as I was to realise how completely unaware CMS senior management seem to be that very often the abuse or controlling behaviour starts only after the relationship has ended, and that until about a year ago that was something that just did not seem to have occurred to anybody at the CMS?

Stephen Timms Portrait Sir Stephen Timms
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The hon. Member makes a very important point, and I think he is right. I very much welcome his work and that of his colleagues on the Public Accounts Committee in drawing attention to a number of these problems.

I ask the Minister whether the idea of a single caseworker has now been abandoned. Is a domestic abuse team still in place or has that whole initiative, which the CMS talked to the Public Accounts Committee about last year, I think, now been given up? Why is it that someone such as Rachel Parkin has gone back to the arrangements that she was promised she would not?

In our report, we also raised concerns about paying parents who fraudulently attempt to reduce their maintenance assessment and about the fact that the Department does not estimate levels of fraud and error. The Public Accounts Committee, in its 2022 report— two years ago—said that the Department had

“not taken responsibility for detecting child maintenance fraud”

and had shifted the burden to receiving parents, who were expected to challenge false assessments. The Committee pointed out that a paying parent who was notified of being investigated for understating their income would no doubt guess that their ex-partner had reported them, and as a result, the Committee warned, many receiving parents would not report. I think that the Committee was right to make that point. In response, the Department said that it used risk profiling and threat scanning to target fraud in the child maintenance system and that it already had proportionate and cost-effective controls. Can the Minister tell us what exactly risk profiling and threat scanning are in practice?

We recommended that there should be specialist caseworkers for cases in which the paying parent’s income is from self-employment. In correspondence, the Minister in the other place who has responsibility for this part of the Department’s work, Lord Younger, pushed back on that, on the grounds of “funding implications”. However, the Department has said that it will legislate to ensure that unearned income, such as savings, investments, dividends and property income, is taken into account automatically when maintenance is calculated, to make it more difficult for

“the small number of parents who avoid paying the correct amount.”

Can this Minister tell us when that legislation will be introduced?

The Government have just introduced, as I mentioned earlier, secondary legislation to remove the £20 fee for all parents who apply for a statutory maintenance arrangement. I would be grateful if the Minister could confirm that that took effect yesterday as planned. The same secondary legislation also introduced new powers for the Secretary of State to write off maintenance arrears under £7 in certain circumstances.

Finally, I want to make this point. There are, as all of us in the House well know, unending complaints about very poor customer service from the CMS. It is very difficult to get through; calls go unanswered. There are incorrect assessments, and people are having to tell their story again from scratch on every call. The service does have a very tough job, against a backdrop of pain and conflict; it is very difficult to provide a good service in that situation, but can the Minister offer us any prospect that the improvements needed will be made?

Charles Walker Portrait Sir Charles Walker (in the Chair)
- Hansard - - - Excerpts

Seven colleagues wish to speak. You have six minutes each. If you are on the list to speak and you intervene, that might reduce your time to four or five minutes if you are at the end of the list. I call Dr Thérèse Coffey—six minutes, please.

09:49
Thérèse Coffey Portrait Dr Thérèse Coffey (Suffolk Coastal) (Con)
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It is a pleasure to see you in the Chair, Sir Charles. I congratulate the Chairman of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), on securing this important debate.

I recognise the importance of the Child Maintenance Service in trying to help children in low-income households. I give credit to Arlene Sugden, the former director of the CMS: she did a tremendous job and made a lot of changes. It is sad to hear that some of the reforms that she brought in might now have slid, but we should recognise that thanks to the CMS, more than £1 billion a year has made its way to the parents who look after the child for the majority of the time.

Several of us will have distressing stories. When parents come to us, they and their child are struggling. It is terrible to see how children are often used as pawns in a dysfunctional or non-existing relationship. That is why I really care about the Child Maintenance Service. In my time in the Department, I worked with my noble Friend Baroness Stedman-Scott to see what we could do to improve the experience for parents. Our priority was to reduce child poverty. With only one parent working, perhaps not full time, extra income from child maintenance was critical to boosting opportunities for the child.

I am conscious that in the majority of situations, whether they involve hiding assets or getting someone else to do a DNA test to avoid being identified as a parent, it is women and children who are affected. Men are also affected, however; I do not want to dismiss that in any way. Some of the most harrowing cases that I have heard have been those in which a father has been left with the children while the mother has been trying to avoid responsibility and, in some instances, lying to my face. Nevertheless, the Department continues to fund the Reducing Parental Conflict programme. The Child Maintenance Service is never seen to take sides between the two parents; it is seen to be on the side of the child. That is a vital approach.

I have already laid out how the issue matters to me. We started a strategy; it is good to see significant elements of that. I was delighted when my hon. Friends the Members for Stroud (Siobhan Baillie) and for Hastings and Rye (Sally-Ann Hart) took legislation through the House on the issue, with the support of the Government. As the right hon. Member for East Ham says, we are still waiting to bring into force these important Acts of Parliament with the important changes that are needed, and we are still waiting for commencement orders. As my hon. Friend the Member for Stroud says, it is vital for section 25 of the Child Maintenance and Other Payments Act 2008 to come into force.

I appreciate that the Minister is very competent, but this matter is not in his brief; he is speaking for my noble Friend Viscount Younger and for the Government more broadly. In July 2022, the Department issued a call for a consultation—not a call for evidence—on enacting section 28 of the 2008 Act, which is about curfew orders. We have still not had a response to that consultation.

By the way, it is perfectly acceptable for a new Secretary of State to come in and change the approach taken by their predecessors and different Prime Ministers. I have no issue with that, but it is important that we hear from the Government what their intentions are. I am not a huge fan of doing lots of pilots. The Government have put forward legislation and Parliament has voted for it, so we should get on with putting it in place. That is one of my key messages. I will take this matter directly to the Minister when I meet him in March, but it could be useful to pre-empt some the questions.

One thing I discovered during our deep dive is that, for people who are not working or are on benefits, there is a “nominal” payment—it is actually quite a significant one for someone who does not really have an income—of £7 a week, to be paid from their benefits to the receiving parent. There are also challenges with universal credit when not everyone is not working, and there may be different elements of income support. One challenge with child maintenance is that those who do not pay everything may end up paying nothing, so over time they end up accruing money to which the child should be entitled. We need to look again at that. We also need to focus a lot more on work coaches getting people into work so that they can start paying for their children.

I will keep to my six minutes, Sir Charles. In essence, we need parents to cough up the cash for their children, and the Child Maintenance Service needs to facilitate that. I am glad that it seems to have dropped the idea that it would potentially do all collect and pay. The state does not need to be involved in every interaction between two parents, but when parents ask it to get involved it must do so to the best of its ability. I look forward to the commencement orders getting under way so we can make sure that children are put first.

Charles Walker Portrait Sir Charles Walker (in the Chair)
- Hansard - - - Excerpts

Thank you for being so helpful to the Chair and setting a fine example.

09:51
Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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It is a real pleasure to speak in this debate. I congratulate the right hon. Member for East Ham (Sir Stephen Timms) on his speech. I will comment not only from a Northern Ireland point of view, but from a personal point of view and on behalf of my constituents.

We brought in the Child Maintenance Service to ensure that when a parent—a mother or a father—leaves the family unit, the child is cared for. It is so important. We deal with these cases nearly every week in my office. Unfortunately, they are not always good to hear about, because the contribution—in most cases from the father, but in some cases from the mother—is not always up to scratch.

The Government give parents a small amount of money to help with childcare, but not many people can raise a child on less than £25 a week. Subsequently, it is incumbent on parents to do the bulk of the financial giving. For some parents, child tax credit helps to fill the gap, yet when there is a relationship breakdown, finances are inevitably strained. Instead of just one rent or one mortgage, there are now two. There are two sets of heating bills and two sets of electricity, yet the income has not doubled. I completely understand that it cannot all be done, but there can never, ever be an excuse for a parent not providing for their child.

The CMS was set up to facilitate things when a relationship breakdown means that an agreement cannot be reached. Its role is to ensure that help is there to work out how to pay the bills and provide for the children. That is the theory, and it is all great, but in practice I have parents coming to my office upset because their partner will not meet their obligations. I know of one who has holidays, nights out, a big car and a lavish lifestyle, and he is absolutely suntanned to the eyeballs—this is all detailed on social media! Everybody else seems to know what he is doing, but the CMS seems not to. I find that quite frustrating. What is he paying? He is paying £5 a week in maintenance. How can that be right? The computer will say that people are paying what they are able to pay, but the reality is that they have turned their back not only on their relationship, but on their child and on their obligation. Their life is so expensive. It hits you right between the eyes when you see that.

The most recent statistics that I have found, for Northern Ireland’s separate but very similar system, show that the compliance rate for paying parents on collect and pay remained relatively stable from September 2020 to September 2023. Between 75% and 83% of parents paid some child maintenance; in the quarter ending September 2023, compliance was at 79%. It is interesting that one in five parents are not paying towards their offspring, but to me the telling phrase is “some child maintenance”. That £5 a week example shows a real shortfall. How much is “some”? Is it £5 short? Is it £5 a week? It could mean the difference between a child who can afford to have swimming lessons in school and a child who has to sit on the sidelines and is made different from their peers because one parent has decided, “No, I’m not paying that.” That is absolutely unacceptable.

It is a difference that we need to know about. We cannot accept a reporting system that appears to say that any amount paid is a victory. Try explaining that victory to a struggling single parent whose mum is giving money out of her pension to keep the lights on! That is the reality for the CMS.

There is a mechanism by which those who are not paying can be taken to court. A 2018 review of the Northern Ireland child maintenance reform programme, commissioned by the Department for Communities, found that from the introduction of enforcement charges in 2014 to December 2016, £7,200 had been received in enforcement charges. I suggest that there needs to be a bit more action on that. On collect and pay, the review noted:

“Collection charges were introduced in August 2014. Up to December 2016, £432,100 have been received in collection charges from paying parents with £83,400 received from receiving parents.”

Part of the problem with parents pursuing CMS is that they speak to a different officer every time. How many times have we, as elected representatives, had to explain the whole case again to a different officer? If it is going to be one officer, that is okay, except for one thing—it does not work out either.

Gregory Campbell Portrait Mr Gregory Campbell (East Londonderry) (DUP)
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The point about case officers not being fully au fait with the issue is an extremely frustrating one that more and more parents are describing. They are experiencing delays on the phone, and then they have to start from scratch to explain their case from A to Z. It is extremely frustrating for all concerned.

Jim Shannon Portrait Jim Shannon
- Hansard - - - Excerpts

It certainly is, and that is one of the problems. The Minister is a very compassionate and understanding Minister, and hopefully he will come back with the answers that we all seek. I am very keen to hear his thoughts on how we can we ensure better continuity.

Reforms have been happening, thanks to the hon. Member for Stroud (Siobhan Baillie). Like other hon. Members, I want to thank her personally, because it was her determination and commitment that enabled the Department for Work and Pensions to impose tougher sanctions on non-paying parents such as forcing the sale of property and taking away passports and driving licences through a quick and simple administrative process. The Child Support (Enforcement) Act was designed to see families being paid faster, as it gives the DWP the power to use a liability order to reclaim unpaid child maintenance instead of applying to court and waiting for up to 20 weeks. My goodness me! How frustrating to wait that long for something to be done.

I want to keep to my six minutes, Sir Charles, so these will be my last few sentences. The reform is great, but more is needed. I look to the Minister to see what improvements can be made throughout the United Kingdom of Great Britain and Northern Ireland. I would appreciate hearing the Minister’s thoughts on discussions between the DWP and Northern Ireland to ensure that in a bitter breakdown, the child is not the one ultimately paying the price. That is what this debate is about, and that is what we should try to achieve.

Charles Walker Portrait Sir Charles Walker (in the Chair)
- Hansard - - - Excerpts

Thank you for your collegiate approach.

09:57
Caroline Nokes Portrait Caroline Nokes (Romsey and Southampton North) (Con)
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As ever, Sir Charles, it is a pleasure to serve under your chairmanship. I congratulate the Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), on securing this important debate.

The former Secretary of State, my right hon. Friend the Member for Suffolk Coastal (Dr Coffey), has made the point that when constituents come to our surgeries to discuss their Child Maintenance Service concerns, cases and complaints, it is almost invariably a very distressing meeting. I will not rehearse every case that has been brought to me, but I will highlight some issues that I have encountered recently.

A man was in tears because he simply could not get the Child Maintenance Service to adequately explain the arrears on his account. On the phone, he would be told that he owed nothing, but days later he would get a letter telling him he was several thousand pounds in arrears. A deduction from earnings order would then be attached to his employer, the Ministry of Defence. It became very difficult for him professionally, because he was not allowed to be in debt, yet whenever he spoke to the service on the phone, he was told that he was not in debt. There are complexities and confusions that still prevail within the system.

Another issue that I would like to highlight is the flip of that. There are several live cases that I keep raising with the Child Maintenance Service involving 17, 18 and 19-year-old children who are no longer in college, but whose parent is still in receipt of child benefit. The paying parent is still being asked to make contributions, yet they can produce evidence from the colleges to show that those young people are no longer attending. The parent with care is claiming that the child is still in full-time education, but the child is not. They are effectively fraudulently claiming child benefit, as a result of which the paying parent is still expected to pay their child maintenance contributions. They are not averse to supporting their children; they are just trying to make the point that this is a young person who is no longer in education. When they raise that with the CMS, the CMS takes it at face value when the parent with care says, “Yes, yes, yes—they are still attending college.” It is hugely problematic.

I think there are times in this place when we should confess our sins. Previously, for 12 months of my life, I was the Minister with responsibility for the Child Maintenance Service—a Commons Minister. I pay tribute to the Minister here today, who I know is going to do an admirable job in responding to us, but I want him to take a very strong message back to the DWP: there remains a great deal of unhappiness about how the system is or is not working.

During my time at the DWP, I was desperate to have the power to remove passports from non-paying parents. Several successive Ministers—my right hon. Friend the Member for North West Hampshire (Kit Malthouse) and my hon. Friends the Members for Gosport (Dame Caroline Dinenage) and for North Swindon (Justin Tomlinson), the latter of whom eventually delivered on that power—all followed in my footsteps to make the point that taking a driving licence away from a non-paying parent hampers their ability to go out to work. Taking their passport hampers their ability to take their new partner on a weekend to Paris. I know which would be more likely to be effective in my mind.

In the intervening years, we have taken only a handful of passports from non-paying parents. My hon. Friend the Member for Stroud (Siobhan Baillie), who has done so much good work on this, passed me a note that told me it was seven in 2022. It is just not good enough. If we are to have powers in place, like the curfews suggested by my hon. Friend the Member for Crewe and Nantwich (Dr Mullan) or those advocated for by my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), they have to be used. We have to make the point to non-paying parents that powers exist and they are going to be used robustly. If they do not cough up for their children, they will suffer the consequences. I regret that I still do not think we are getting that message across adequately.

Finally, I have veered away from the many times when I have accompanied constituents to tribunals and sat with them while their cases were heard by telephone; I have always sought to support them. I recently had a really concerning response from the DWP about a constituent who had sought a deduction from earnings order for a parent who had not paid for years for their children. The DWP responded that it could not grant a DEO because it was not confident of the non-paying parent’s address. We know that the DWP has the powers to look at HMRC records and that it can see where someone is employed, yet it was not confident of the individual’s address.

That sends a very clear message: if anyone wishes to be a non-paying parent, then they can just disappear. If they ensure that their partner cannot trace their address, the DWP will back off. To be quite frank, we should never be in a situation where the DWP backs off. Parents have a duty to support their children and I urge the Minister to take the message back that we must redouble efforts to ensure that non-paying parents are compliant.

10:02
Sally-Ann Hart Portrait Sally-Ann Hart (Hastings and Rye) (Con)
- Hansard - - - Excerpts

It is a pleasure to speak under your chairmanship, Sir Charles. I congratulate the right hon. Member for East Ham (Sir Stephen Timms) on securing the debate on this important issue. The Child Maintenance Service can play a vital role in lifting children out of poverty, but despite significant improvements since 2012, further reforms are needed.

Last summer, I was delighted that my private Member’s Bill, which ensures that victims of domestic abuse can receive child maintenance without contact from their abuser, received Royal Assent. The Child Support Collection (Domestic Abuse) Act 2023 will allow the CMS to intervene in cases where abuse is evident, using its powers to collect and make payments. That set-up, “collect and pay”, is already used by about 37% of parents using the CMS. It provides extra protections for parents who have experienced domestic abuse by managing payments and avoiding the need for contact, preventing perpetrators from inflicting financial abuse and control. It builds on the CMS’s existing procedures to protect both the paying and receiving parents who are vulnerable to domestic abuse, ensuring that more children in separated families are supported.

The commencement of the 2023 Act, as already highlighted, is reliant on secondary legislation to be developed and approved. When I contacted the Minister in January, the consultation details were being finalised—perhaps this Minister can update me on that. That Act and the Child Support (Enforcement) Act 2023, brought in by my hon. Friend the Member for Stroud (Siobhan Baillie), provide the basis for the CMS to act swiftly, progressing enforcement action faster with the aim of getting money to children more quickly, establishing compliance, preventing further arrears and bolstering domestic abuse protections for parents. I look forward to the secondary legislation coming into force to give effect to those two Acts as soon as possible.

However, I have a point to make about the collect and pay service: the CMS charges the paying parent 20% of the maintenance collected, and the receiving parent forgoes 4% of the collected money. It is not right that a victim of domestic abuse must effectively pay for the privilege of being abused. They should not be penalised by the fees, which should be scrapped. In addition, as per the recommendation of the Work and Pensions Committee, to help parents on low incomes there should be means testing for collect and pay fees. The fees should not apply to the lowest-income households. The children’s needs must come first, and it is important that available family moneys are for the maintenance of children to help lift them out of poverty.

Improving the effectiveness and speed of enforcement is also key. We are all aware of the fraudulent efforts of some parents who seek to avoid paying for their children, and the complication that arises when children live with both parents. For example, I have a current case with four children. Three of them live with parent A, who is not working and claims benefits, and should pay child support to parent B for one child, while one lives with parent B, who is working and pays child support to parent A for three children. Parent A has not been paying child support to parent B. Parent B cannot deduct the payment from the child support she is paying to parent A, because they are considered to be two different cases and there is no linking up. Parent B is struggling and the CMS cannot seem to get its head around it. There seems to be a need for better co-ordination within the CMS, as well as with other departments such as the family courts, to access financial information when non-resident parents are actively seeking to avoid paying maintenance. Information sharing is key, and better IT is also needed to enable joined-up enforcement activity. All public services need to remember that they are dealing with people who are often struggling.

I attended a departmental briefing in November last year with the Minister, who outlined the work in train to increase enforcement action. I welcome the further steps to improve the CMS, including the liability orders consultation to speed up enforcement action, the removal of the £20 application fee and longer-term changes. The scrapping of the £20 fee to the CMS signifies a shift towards inclusivity and accessibility. The fee can deter parents, especially those in vulnerable situations.

All parents need to take financial responsibility for their children. It is not fair on the children if they do not receive the support that they are due for essential food, clothing, education and healthcare. Financial support is also vital to reinforce a child’s overall quality of life, and their sense of security, wellbeing and stability. Knowing that both parents care about them and for them fosters emotional wellbeing. The CMS process must not add delay or hardship. Streamlining processes, improving enforcement and going after parents who will do anything to get out of paying for their child will help create a fairer system and provide financial security for children and parents.

10:07
Nigel Mills Portrait Nigel Mills (Amber Valley) (Con)
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I congratulate the Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), on arranging this debate.

It is not too naive to say that we would all like parents who separate to reach an amicable arrangement on access and maintenance for their children, so the state does not have to get involved at all. However, I suspect that is somewhat unlikely to happen in every case, hence why we need to have this service. The problem is that the service is not sufficiently effective. It creates more need for itself because some parents think that they can get away with it and try not to pay, so we force the family through the system to try to fix the situation.

If there was a general feeling that a parent who did not pay their maintenance would get caught and have to pay more, we might actually push more parents to reach an amicable arrangement rather than try this route, and we would not end up having to be the referee or the battering ram that we were desperately trying to avoid in the first place. I remind the Minister that having a service that actually works is not inconsistent with the Government’s overall aim of not getting involved unless they really need to: that would stop some of the demand in the first place.

The cases that most frustrate me are the ones that are superficially easy. The parent who should be paying is in employment and has a relatively stable income, which we can see through a real-time information feed, and they either do not pay at all or do not pay regularly. It is incredibly frustrating to see how long it takes for any enforcement action to be taken in that situation. We see scenarios where that person does not pay for a bit, finally gets some threats and starts paying for a couple of months, and then stops paying again, and the whole process has to start again. It is effectively just a game that they are playing. We end up with huge arrears building up, the parent with care struggling financially and the child losing out.

I hope that, now we have administrative liability orders in place that can be brought in much more quickly, we can stop those situations from arising. I certainly hope the CMS can monitor how fast arrears are building up and how quickly the orders are being put in place, so that we can show real progress and so those arrears do not get to the stage they have been getting to in the past.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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I am grateful to my colleague on the Work and Pensions Committee. He and I were at the roundtables we had in Greater Manchester where we heard from both paying and receiving parents. There were harrowing stories of parents who were in arrears. We heard a story of someone who unfortunately had died. Is he as concerned as I am about the reports around the deaths of both paying and receiving parents, and the fact that that has not been adequately considered in the handling of those parents by the CMS? What does he think we should be doing about that?

Nigel Mills Portrait Nigel Mills
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I agree with the hon. Member that those stories were incredibly concerning. That reinforces the point that if we get this right early, and everyone knows what they should be paying and it is enforced, hopefully some of that stress goes away. The Chair of the Select Committee, the right hon. Member for East Ham, rightly made the point that we should be looking at the thresholds and the calculations to ensure that they are fair on all parties.

The other situation that frustrates me concerns when somebody has arrears and is sent the demand. I have seen cases where someone is sent five demands in a week, all with different numbers and vastly different by thousands of pounds. I naively assumed that when somebody is sent a demand with arrears, a calculation is made on the system to come to that number and that when somebody asks for it, CMS can just press a button and it will be emailed over, so the person can work out how it has come to that number. That is not the case. It takes weeks and weeks. The chief executive said before the Select Committee that it is a 12-week turnaround.

How can the CMS send a demand out for arrears without calculating it? When that person finally gets the calculation, they think, “I’m paid monthly, and there is a certain percentage I have to pay. I get paid two grand a month and pay 15%. That is £300. I have paid £200, so I owe £100”—a simple calculation. What they get is 16 sides of calculations and, for some reason, it is done by weekly income. It is totally unfollowable. I would seriously urge the Minister to look through some of these calculations, if he has not done so. There must be a better way of doing it, so that everybody understands what they owe and can check it to prove whether it is right. It cannot be that complicated.

Finally, will the Minister look at where child maintenance arrears sit in the universal credit deductions? They sit a long way down, and below debt owed back to the Department. If we really think this money is essential for child welfare, we should be letting the parent with care have that money before we take it back to pay debts owed to the state, and it should be much higher on the list.

10:13
Kieran Mullan Portrait Dr Kieran Mullan (Crewe and Nantwich) (Con)
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It is a pleasure to serve under your chairmanship, Sir Charles. I thank the right hon. Member for East Ham (Sir Stephen Timms) for securing a debate on this topic, on which I have campaigned consistently during my time as an MP. I campaign on this issue because I feel strongly that there is a pure moral obligation and benefit to hard-working taxpayers of cracking down on delinquent parents.

I have said before and I will say again that having children, then not contributing to the cost of raising them is morally reprehensible. I certainly think it is worse than shoplifting, fraud, dropping litter, selling counterfeit goods and a whole range of other things for which individuals can and do regularly face much tougher sanctions. This is not about some idealised view of families or saying that families should be one size fits all; it is about saying that whatever the relationship between parents, both maintain a moral obligation to provide for their children. Recently, children have seen a win with the successful passage of the Child Support (Enforcement) Act 2023. I pay tribute to my hon. Friend the Member for Stroud (Siobhan Baillie) for introducing the Act, and I fully support its aims. We have had the necessary consultations ahead of enactment and, like others, I would welcome an update from the Minister on when we can expect to see the powers being used, because they are very much needed.

According to Gingerbread, total arrears sit at £547.9 million. Imagine the positive impact we could have had on children had that money been paid. The non-payment of maintenance is a key driver of child poverty. If all maintenance due was paid, 60% of children of single parents who are not benefiting from payments would be lifted out of poverty. Let us be clear that in many respects taxpayers pick up the bill indirectly. Although I praise these advances, I worry that they will not be enough, and represent a partial acceptance of an unacceptable status quo, in particular for those parents who do not earn, or earn very little, when they could reasonably have expected to earn more.

This is where we need one of two fundamental rethinks. When it comes to out-of-work benefit payments, we expect recipients to make an effort to find work and earn more, because they have a moral obligation to the rest of us who pay for their benefits. Surely, the obligation to earn to care for one’s children is even greater. We should subject parents to the same reasonable expectations to find work and earn more as we do for those who claim benefits.

To enforce that and other expectations, I continue to ask the Government to make use of the home curfew powers available. The use of already established but unused powers to impose a home curfew, I believe, would have a positive impact on those who shy away from their parental financial duties. Indeed, spending six months with no social life would certainly provide time to reassess responsibilities and allow people to be made an example of.

That brings me to the second fundamental rethink. The current system ignores the moral aspect of this debt. This is not a commercial debt; people should be punished for not providing when they reasonably could. At the moment, the system simply asks them to start paying money again and, if they do that, everything falls away. There is no punishment for their moral failure to make an effort to pay, when they could, or for deliberately seeking to avoid paying. We need to create moral hazard for individuals to behave in that way.

A home curfew has the added benefit of providing time for a parent to go out to work, so arguments about punishments hampering earnings, particularly custody, fall away. Of course, these powers should not be the first port of call. Cases must have a clear evidence base that a parent has actively made attempts to deny sharing money, or made no effort over a long period of time to find work and increase earnings. I am also clear, for those who are concerned about this and write to me when I raise it, that custody and benefit arrangements are separate.

I recognise that there are parents who want to pay, do pay, and do not get access to their children. That is wrong and I encourage all of them to use the courts to secure the access to which they are legally entitled. That does not mean that someone should not pay in the meantime. If there is a genuine dispute about maintenance payments, I can understand why these cases arise, but I question the priorities of a parent who only wants to pay maintenance for their child when they have custody. Surely, payment of maintenance should come first, and custody rights should be pursued separately.

I will finish by asking the Minister to explain why we have again moved away from using home curfews, and ask him to reconsider that, or at least commit to doing so, if these newly enacted powers fail to bring down the maintenance backlog, which, unfortunately, I am confident they will not. Children deserve nothing less, and wider society should rely on us to uphold these basic moral standards.

10:17
Siobhan Baillie Portrait Siobhan Baillie (Stroud) (Con)
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It is a pleasure to serve under your chairmanship, Sir Charles. I give my full support to the right hon. Member for East Ham (Sir Stephen Timms) and the Committee, and everything he asks for today. He had the foresight to bring this matter forward after the publication of the NAO report, and is smart enough to follow up and start poking the Government again, to ensure that we can get some changes. This is a serious issue that everybody up and down the country experiences in their postbags.

I am grateful to colleagues for being so kind about the Bill which I introduced. I am committed to changing the law and improving enforcement, but I must give credit to my right hon. Friend the Member for East Surrey (Claire Coutinho), who initially introduced the Bill but was then made a Minister, and to the Government for their support under the direction of my right hon. Friend the Member for Suffolk Coastal (Dr Coffey). Having Government support always makes it easier when trying to force through change. In that respect, it is a big team effort.

I care so much about the CMS because of my work as a family lawyer and because of personal family experience. My dad still stares off into the middle distance when he talks of his experience of the Child Support Agency back in the day, because it was a disaster. The service goes far beyond the impact of putting money in people’s pockets, important as that is, and as much as we are right to focus on the poverty of children. It affects every single child of every demographic caught up in the difficulties of separating parents. If the system does not work for them, parents often have an impact on their children. They do not mean to; it just happens. If a parent has had to spend a whole week fighting with the CMS on trying to get a calculation, and then there is the handover, the kid is caught in the middle of that frosty handover—or worse, if there is shouting and frustration. I cannot emphasise enough the need to get the system working. As colleagues have said, getting it right early on and making early interventions deters others and changes the lives of families.

I want to say a little bit about dads. They really feel under attack whenever we talk about changing the Child Maintenance Service. It is often dads in my surgery who are in tears, because they care deeply about their children. They often have residence of their children and shared care, but the system does not recognise that or has ignored a court order. The round robins and the constant nightmare with correspondence is very damaging, and sadly it is often dads who are taking their own lives or pointing to problems with the CMS.

It is right to recognise that 93% of paying parents in the system are dads. However, we cannot ignore the fact that non-paying parents include dads, and that the liability orders that were sought in the past were sought against dads. I ask all the dads listening to this, when they hear of the push for curfew orders, societal changes and so on, to stay angry. They should not necessarily stay angry with MPs in this room, because they will just join a long list of people who are angry with us, but rather stay angry with the dads who are letting down their kids and not paying, because they poison the well for the good dads who are trying their best.

One of my constituents said that he feels—and colleagues have said this too—that there is an institutional bias in favour of the receiving parent. Even when it is proven that a receiving parent is not being honest or true, the burden of proof is often on the paying parent, and that is causing a huge amount of stress.

I am trying to calculate how much time I have left to speak. In the complex cases that we are trying to fix by tightening up enforcement, parents are seeing the lifestyle of non-paying parents far outstripping their own. The non-paying parents are going abroad and having a lovely time with their new families, but the process of taking evidence of that to the CMS is falling down. A mum wrote to me saying that she was experiencing considerable stress. She was not receiving any money. She was working between 40 and 50 hours a week just to keep her kids clothed, and that meant, because of her work ethic, that she did not qualify for any benefits. However, she could see the non-paying parent treating himself to several luxurious holidays a year to faraway shores. That is hugely detrimental to the children in that family, and we have got—

Munira Wilson Portrait Munira Wilson (Twickenham) (LD)
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On the hon. Lady’s point about complex cases, some of the most egregious cases which I and other hon. Members have seen in our surgeries involve the paying parent concealing income because they are self-employed, so they are not paying what is owed. One mother came to me who is owed £18,000 in arrears, and I met another who has been fighting for six years for £22,000- worth of payments. The way in which arrears are treated is different from live cases, where a small amount being paid is accepted. Does the hon. Lady agree that we need a full review of how those complex cases are dealt with and reform of the CMS?

Siobhan Baillie Portrait Siobhan Baillie
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One of the biggest issues is that people’s lives are complex—families are complex and blended. We have wonderful ways of living, which must be reflected in how CMS caseworkers are trained, but we also need a bespoke approach to each case, because this is incredibly difficult. I give credit to the CMS; I am always impressed by it and I thoroughly enjoyed working with it to try to make changes, as well as with Lord Younger and Baroness Stedman-Scott, who are amazing parliamentarians who are working really hard.

The National Audit Office says that we are heading for £1 billion-worth of arrears by 2030. When the Child Support Agency had a controlled explosion from 2014 to 2018, the figures were not anywhere near that. The reality of the long wait for decisions, a lack of clarity about maintenance paid, poor communication, unclear calculations, poor service and bad handling is poisoning the well for all families. I urge the Minister to take that strong message back to the Department.

None Portrait Several hon. Members rose—
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Charles Walker Portrait Sir Charles Walker (in the Chair)
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I will give Wendy Chamberlain two minutes in which to speak; she has been here from the start of the debate and has been trying to catch my eye.

10:24
Wendy Chamberlain Portrait Wendy Chamberlain (North East Fife) (LD)
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Thank you, Sir Charles, for calling me to speak; I am very grateful. I thank everyone who has contributed to the debate.

There were two aspects of this issue that I wanted to raise. The first is domestic abuse cases about which many Members have spoken so eloquently. I have a particularly egregious case in my constituency. The children are now adults, but the coercive control is still being applied to the receiving parent by the withholding of money. I agree with the hon. Member for Amber Valley (Nigel Mills) that we need to examine how we consider arrears in terms of debts and that people need to be pursued quickly, because the legacy of these issues is ongoing for these children into adulthood.

Secondly, we say that we want the system basically to work so that we do not make the situation worse when the CMS becomes involved. However, the reality is that even those parents who engage with the system in good faith are being let down.

I will just the case of my constituent, Kevin, who was medically discharged from the military 18 months ago. He reported his falling income to the CMS and continued to make payments for his children. However, the CMS then did everything wrong: it took overpayments; it wrongly moved him to the collect and pay route; and it pursued him for £12,000 of debt that never existed, because the systems work on the basis that there is a consistent salary and income going forward. The 12 weeks that was talked about earlier means that Kevin has gone through a huge amount of stress and anxiety, and we are left in a situation where those children have been negatively impacted as a result. It is clear that this issue is complex and difficult, but it is also clear that the Government need to do more.

None Portrait Several hon. Members rose—
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Charles Walker Portrait Sir Charles Walker (in the Chair)
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Thank you very much. I now call Peter Grant. Mr Grant, you have 10 minutes in which to sum up for your party.

10:26
Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
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Thank you very much, Sir Charles, for calling me to speak; I am grateful for the chance to begin summing up in this debate.

First, I commend the right hon. Member for East Ham (Sir Stephen Timms), the Chair of the Select Committee, for securing this debate. I thank him and other Members of that Committee for giving me the chance to attend, as a guest, some of the hearings when they have had the Child Maintenance Service before them. Also, I want to give the right hon. Gentleman more than the usual token 20 or 30 seconds at the end of the debate to sum up, so I will try to keep within the 10 minutes I have; those who know me will know what a struggle that will be, but I will do my best.

I think this is the third time I have participated in a Westminster Hall debate on the Child Maintenance Service and I am again struck today by the fact that there has been very little disagreement in the Chamber; everybody accepts that the CMS is not working, that the time for talking about changing it is long past and that we need to start seriously changing it.

It was very noticeable in this debate today that the overwhelming majority of contributions have come from the Minister’s own party, with two of them from people who have been there with ministerial responsibility: the right hon. Members for Romsey and Southampton North (Caroline Nokes) and for Suffolk Coastal (Dr Coffey).

Incidentally, while the right hon. Member for Romsey and Southampton North was speaking, I made a quick check and found that, since she moved from the Department for Work and Pensions in 2017, we are now on our fifth Minister with responsibility for child maintenance. Maybe that partly explains why it has taken so long to get anywhere. There are obviously reasons why there have been so many Cabinet changes in that time, but I think the Child Maintenance Service is far too important to be one of the things that gets added to the portfolio of someone who stays in post for six months before they get moved on, because it is complex and, if a Minister is in post for only a year, they will not get the time to get on top of the service and drive forward significant changes.

As I have said, this is a system that is simply not fit for purpose. I do not think that we can beat around the bush and look for minor changes; we need a complete overhaul and review, starting from a blank sheet of paper and redesigning the whole thing.

To illustrate that point, I will ask a question. If somebody came in who did not know what the Child Maintenance Service was for and just looked at what it did, would they ever be able to work out what its purpose is? If they did, I will guarantee that they would not conclude that its main purpose was to make sure that no child had to live in poverty simply because of the family circumstances that their parents have found themselves in. If we accept that aim as a valid purpose for the Child Maintenance Service, we begin to understand just how far away from hitting that target we are just now.

Depending on what figures people believe, the United Kingdom is probably the fifth or sixth wealthiest economy in the world, yet 4.2 million children in the UK live in poverty, according to the Child Poverty Action Group. Again, we can argue about the exact number of children in poverty, but we cannot argue that the number of children living in poverty in an economy with so much money spilling around in some places is simply not acceptable. By fixing the Child Maintenance Service, we can certainly reduce the number of children living in poverty, and in such a way that the people who pay for it are the people who should have been paying for it all along. The parents have had the children, but for one reason or another are simply not meeting their responsibilities to pay financial support for their upbringing.

One of the previous speakers—the hon. Member for Amber Valley (Nigel Mills), I think—talked about the fact that debt owed to the Child Maintenance Service is not seen as important or as such a high priority for collection as debt owed to the Government. Again, that is simply wrong. Why do we not have a system in which the DWP pays all the child maintenance due, and then the DWP chases the people who are fiddling the figures or trying to hide and not pay the money? I can guarantee that if the DWP were chasing an absent parent for the money, they would not be living on a fancy yacht in the Bahamas or in the Mediterranean, as mentioned by the hon. Member for Strangford (Jim Shannon). If they were doing that, but the money was owed to the Government, they certainly would not be posting on Facebook to boast about how much money they had or how much they were able to hide.

Kieran Mullan Portrait Dr Mullan
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I do not know whether the hon. Gentleman was able to listen to my points about moral hazard, but does he agree that his proposal for the taxpayer to pick up directly the payments of absent parents who are not paying would double the impact of saying, “You don’t have responsibility. The taxpayer will step in directly and pay it for you.”?

Peter Grant Portrait Peter Grant
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If the hon. Gentleman had listened to what I was saying, he would realise that that is exactly what I am not saying. I am saying that the full force of collection and enforcement that is in the hands of His Majesty’s Revenue and Customs or DWP should be brought to bear not only on those who refuse to pay what they are assessed as being due to pay, but on those who are lying, committing fraud and stealing from their own children. Ultimately, they would still be stealing from their own children, but HMRC has powers to enforce in a way that a single parent does not have. That is what I am saying. It is not a simple solution, but I think it would make a significant difference. As has been mentioned, the DWP’s own figures reckon that since the Child Maintenance Service was set up, £590 million of debt has not been collected. That does not include the undetected fraud or the under-declaration of income, assets and so on.

Something else that I always find concerning about the CMS is that it does not seem to have any curiosity about a parent who fights and fights to get a settlement but then just disappears off the system and gives up. In Child Maintenance Service cases I have dealt with, I have found that probably the single biggest outcome is that the parent with responsibility for bringing up the children simply gives up in frustration, deciding that it is better for them just to get on with their life and to struggle through—very often in or near poverty—because they can no longer cope with the stress of dealing with the Child Maintenance Service. That is a shocking indictment of any Government service, in particular one whose only point, whose only reason to exist, is to make lives better for vulnerable young children.

I have often noticed that, when speaking to parents, the paying partner always talks about how much they are having to pay to their ex-partner. They often do not see it as paying for the upkeep of their children. Something about the language we use here, we need to look at. Something raised by one of my constituents at a roundtable held by Fife Gingerbread, which I hope the Department has picked up and started to act on, is that CMS letters get addressed to the parent—the parent’s name is on it—and it does not say “To the parent of” with the name of the child, which would be a simple way of making it clear that this is about the children.

There will often be bad will between two partners who have split up. Whether they split up amicably or acrimoniously, once they start disagreeing about money, it is likely to become quite a bit more acrimonious. The children, however, should never be made to suffer as a result.

I mentioned Fife Gingerbread. I again need to commend the outstanding work that it has done, and not just within the boundaries of Fife. It is one of the organisations that has influenced the way in which the Child Maintenance Service now operates. On the scrapping of the £20 fee for being able to claim child maintenance, for example, I am convinced that Fife Gingerbread is one of the organisations that can claim part of the credit for having achieved that, as well as a number of other changes that we are seeing.

We have had reference to the fact that IT systems are not fit for purpose. This is the 21st century—we are almost a quarter of the way into the century—and we are using systems that are 40 or 50 years out of date. The Chair of the Select Committee, the right hon. Member for East Ham, and other members of the Work and Pensions Committee and of the Public Accounts Committee will remember only too well what happened to the payment of state pensions when the Department carried on using systems that were no longer fit for purpose. We could be heading for an equally massive injustice in the assessment, payment and collection of child maintenance if we do not get those systems sorted out. As the hon. Member for Amber Valley said, it should not take three or four months for somebody to be told why the assessment is the number that it is. In some of the queries to HMRC, when people are assessed on self-assessment, they could go online, and sitting in front of them would be exactly why HMRC had assessed them for that amount.

The final thing is that one way to reduce the need for child maintenance is for Governments to take other action on children in poverty. This Government could undertake actions that have already been shown to be successful by the Scottish Government. There is the child payment, which has lifted about 50,000 children in Scotland out of poverty; if we do that down here, we are talking about half a million children being lifted out of poverty. Actions taken by the Scottish Government are estimated to reduce the cost of bringing up a child by somewhere in the region of £25,000 to £26,000 during their childhood. Policies similar to those would reduce the demands on child maintenance, reducing the need either for children to live in poverty or for their parents to almost literally come to blows arguing over who should care for their child.

I entirely agree that nobody should feel that they can just leave their children to be the responsibility of someone else. I find it interesting that financial neglect, which is what we are talking about here, is treated differently from any other forms of neglect. If a parent neglects their child in any other way, we do not just stand back and leave the parents to sort it out. If a parent is deliberately neglecting their children financially, they cannot be allowed to get away with it. I do not have confidence that the existing Child Maintenance Service will ever be able to address that, which is why we need to design an entirely new service fit for the 21st century that recognises the wide variety of circumstances that people live in today.

Charles Walker Portrait Sir Charles Walker (in the Chair)
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Thank you, Mr Grant. That was a perfect 10 minutes.

10:36
Alison McGovern Portrait Alison McGovern (Wirral South) (Lab)
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It is a pleasure to serve under your chairship, Sir Charles. I thank all colleagues who have contributed, in particular the Chair of the Select Committee, my right hon. Friend the Member for East Ham (Sir Stephen Timms), for bringing forward the debate. As we heard from all the serious questions asked, it is important.

The Minister has quite a number of important questions to answer, so I will try to be swift. It is clear from this debate that on both sides of the House we all want parents to meet their responsibilities and pay what their child needs—no ifs, no buts; just get it done. We know from Gingerbread, which was mentioned by many hon. Members, that 60% of children of single parents not benefiting from child maintenance could be lifted out of poverty if that support were paid in full. That is why we want to get it sorted. The current situation is just not acceptable, which is why it was good—if a little tardy—that recently we the Government finally removed the fee for the service, after many people had warned for a number of years that it would remove its effectiveness.

Listening to colleagues, it strikes me that it would be helpful if the Government could provide a timeline or working update to help colleagues to know which improvements to CMS they are making and the status of those improvements. There are areas where the Government could do that and help us: on issues relating to domestic abuse, to customer service—I think particularly of the contribution made by the hon. Member for Amber Valley (Nigel Mills) about the complexity of calculations; it cannot be beyond us to have clarity and be able to inform citizens of the information that the Government have on their behalf—and to enforcement. Members have made it absolutely clear how long we have been trying to get enforcement improved, and having a working update from the Government on where we are with that would really help colleagues. I want the Minister to consider that.

When the Minister and I last met across Dispatch Boxes, I had some questions about research undertaken by the Government. The Minister was kind enough to write to me on 21 February to say that Ipsos is commissioned currently to research direct pay customers. That is really helpful, because we really need to understand what is going on for parents. Can he say more about when that will be published? That would be really useful.

In the letter to me, the Minister also mentioned a particular tool that the DWP has developed, which I think gives us some hope in this area. Members have rightly expressed frustration and distress from listening to cases involving people who have had to deal with having a calculation that they knew was wrong. I am thinking of the person that the Chair of the Select Committee mentioned at the beginning of his speech—the dad who had lost a son. These are really heartbreaking cases.

However, I think that there is some hope in the letter that the Minister sent to me where he mentioned the “Get help arranging child maintenance” tool that had been developed for unbiased advice and support and designed to be convenient for parents and to support people into the most suitable arrangements for their circumstances. I would like to ask the Minister what lessons the DWP has drawn from the development of that tool. From listening to the contributions of colleagues, it strikes me that if we could have a focus also on early advice, help and support so that people knew, at the very distressing time of relationship breakdown, what the best steps were for them, that would be hopeful and point to a better direction, so I would be grateful if the Minister could say what lessons the DWP is drawing from the development of the tool.

Sir Charles, I said that I was going to be swift and I will be. I will sum up by making three brief points that I think we can all agree with.

Kieran Mullan Portrait Dr Mullan
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There could be a change of Government by the end of the year. I welcome the warm words, and the hon. Member may go on to describe specific policy pledges, but I would like to hear specific policy goals that her party has in mind. For example, do you support the introduction of home curfews? Rather than just speaking warm words, what will you actually do differently should you end up in government?

Charles Walker Portrait Sir Charles Walker (in the Chair)
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Order. Can we not use the word “you” in the Chamber when referring to another Member?

Kieran Mullan Portrait Dr Mullan
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My apologies, Sir Charles.

Alison McGovern Portrait Alison McGovern
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Thank you, Sir Charles, and I thank the hon. Gentleman for his intervention. I will just say to him that not a single vote in an election has been cast yet.

Kieran Mullan Portrait Dr Mullan
- Hansard - - - Excerpts

I said “could”.

Alison McGovern Portrait Alison McGovern
- Hansard - - - Excerpts

The hon. Gentleman may have said “could”, but I am not the Minister and I would not be so arrogant as to assume that that will be certain to happen. My aim was to leave space for questions to be directed to the Minister, to assist colleagues. I simply say this to the hon. Member for Crewe and Nantwich (Dr Mullan): I could point to the record over the past 14 years and the number of occasions when Labour spokespeople have called for the removal of the fee and stronger enforcement. Some of that, including on the issue of the fee, the Government have now done, which is good. However, as I have been saying, we all know that a range of improvements need to be made. I think that we would all find it helpful if the Government could undertake to regularly update us—through the Select Committee, if necessary—on what is happening.

As I was saying, and as we all know, the children’s needs must come first. Members have described the pain that parents experience in this system, which affects children very deeply. That is why this issue really matters to us all.

The second point that I think is uncontroversial is that the service also has to react to some complex realities of life, and one of those realities is the power dynamic in a relationship. Anyone can find themselves a victim of domestic abuse, but unfortunately, domestic abuse tends to work along the lines of the imbalance in power between men and women in our country. That then leads us to a heightened concern about how domestic abuse is handled within the system, and I hope that the service will hear that concern.

I want to end on a hopeful note, because although there has been deep dissatisfaction, I felt that in the Minister’s letter to me there were some signs that the civil service is working hard to improve the quality of the service for all parents. If we can do that early, we can avoid some of the deeply distressing situations that Members have described today.

Charles Walker Portrait Sir Charles Walker (in the Chair)
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Thank you, shadow Minister. Minister, will you just leave a couple of minutes at the end for the mover of the motion?

10:44
Paul Maynard Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
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Provided that you cough strategically, Sir Charles, because my eyesight—

Charles Walker Portrait Sir Charles Walker (in the Chair)
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I will—I actually have a cold, so I will be coughing and sniffling throughout.

Paul Maynard Portrait Paul Maynard
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My eyesight cannot quite determine the numbers on the clock any more—such is my venerable age. It is a pleasure to serve under your chairmanship, Sir Charles. I thank the right hon. Member for East Ham (Sir Stephen Timms) and my hon. Friend the Member for Stroud (Siobhan Baillie) for applying to the Backbench Business Committee to obtain this debate, and all hon. Members for their participation.

We have had a constructive, wide-ranging and, for my part, very interesting debate. We have discussed the original findings of the Select Committee report, which I very much enjoyed reading. Indeed, I always enjoy reading difficult, challenging reports when they are not in my brief, because I find them much more reassuring to read knowing that thinking is going on. We discussed the Government’s response at the time, the progress since that response, what is being done and how far that has got.

I will try to cover as many themes as have been raised today, but if I run out of time or there is insufficient detail, I will make sure that we write to all hon. Members. I know that Viscount Younger has already spoken to the right hon. Member for East Ham to have a further briefing. I am sure that all hon. Members here today will be interested in what Viscount Younger has to say, so I will try to ensure that all that information is properly communicated.

I do not normally do this, but I particularly thank the hon. Member for Wirral South (Alison McGovern) for speaking in such glowing terms about my letter to her. There were some helpful comments about the progress the Government have been making. That might give other hon. Members some optimism that things are moving in a more rapid direction than they might hitherto have realised.

The Child Maintenance Service makes a real difference to the life chances of many thousands of children. That is why we are reforming it for the long term on an ongoing basis to continually improve outcomes. The service plays a crucial role in securing financial support for children when parents have separated, mandating and, when necessary, enforcing arrangements so that money flows from paying parents to receiving parents, which can benefit children and help prevent them falling into poverty. Indeed, payments for both child maintenance and private arrangements delivered an estimated £2.6 billion annually to parents between 2020 and 2022, keeping around 160,000 children out of poverty.

The vast majority of parents strive each and every day to give their children the best possible start in life. Those who shirk the financial responsibilities they have for their children must be quickly held to account. That is why we continue to improve the Child Maintenance Service to ensure it works as effectively and efficiently as possible. However, it is currently still too easy for parents to avoid paying up if their income does not come through normal PAYE. That is why we are looking at changing the rules so that child maintenance calculations include a much broader range of earnings, such as property income.

We recognise that some parents will find it more difficult to afford their payments if they have built up substantial arrears. The Child Maintenance Service will continue to prioritise collection of ongoing maintenance, but we have committed to reviewing the calculation. We have begun the process of updating the underlying research to consider how we ensure the calculation reflects current and future societal trends. Any changes made to the child maintenance calculation will require amendments to both primary and secondary legislation. The calculation formula underpins every Child Maintenance Service case. Furthermore, those with private arrangements can also use the online calculator to get an estimate to inform their own arrangement, which is doubly crucial. It is essential, therefore, that we undertake a thorough and comprehensive review of the calculation formula and consider the potential impacts on all parents and children. That requires time to ensure we take an informed and co-ordinated approach, to ensure the calculation is fit for purpose and future-proofed.

Peter Grant Portrait Peter Grant
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Clearly, there has been an error at set-up that the calculation needs primary legislation to be updated. Given that it is now 25 years out of date, is it not time to bring forward legislation to change it once and for all, so that future changes can be made through secondary legislation or by other means? There have been examples recently where other DWP payments were uprated through statutory instruments and it did not take nearly as much bureaucracy to get that done. We should be able to do that with the child maintenance system as well.

Paul Maynard Portrait Paul Maynard
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The hon. Member makes an interesting point that may risk becoming a digression. I note that the secondary legislation he refers to is regarding automatic uprating of particular indicators. This is a more fundamental change to how the entire structure of child maintenance is conducted, so is perhaps not suited to secondary legislation. We often hear criticism that too much goes through secondary legislation, unscrutinised by this place. As a Member rather than a Minister, I always think that I would rather such a fundamental change be scrutinised properly in the form of a Government Bill. That is an important point.

Stephen Timms Portrait Sir Stephen Timms
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Will the Minister give way?

Paul Maynard Portrait Paul Maynard
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I will. I am in danger of making things up now, which I should not do.

Stephen Timms Portrait Sir Stephen Timms
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I take the point entirely about the complexity of the review’s underlying formula, which the Minister has just been talking about. Can he give us any sense of how long he envisages that review will take to complete?

Paul Maynard Portrait Paul Maynard
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I have made a lot of comments today about the drumbeat of ongoing changes and how we implement some of the private Members’ Bills that have gone through, for example. I hear what the right hon. Gentleman says about the progress and the drumbeat, but I am not sufficiently close to the actual data and the information that he seeks. I will ensure that he is written to, along with other Members present today. I am sure that will be discussed when he meets Viscount Younger.

Alison McGovern Portrait Alison McGovern
- Hansard - - - Excerpts

While I am pleased to have cheered the Minister up, I can assure him that I will certainly be giving the Government down the banks yet again. But that exact point is why I thought it would be helpful if we could have some sort of regular update out of this debate. Can the Minister feed that back to the Secretary of State, if necessary? I am sure it can be discussed whether that is a statement that the Government place in the Library or a regular update to the Select Committee, but for those reasons, Members need to know what is happening with the different streams of improvement to the service.

Paul Maynard Portrait Paul Maynard
- Hansard - - - Excerpts

I have already heard that point, and in my preparation for the debate, I noted the complexity and the number of workstreams going on in this area. I will certainly take that point back to the Department. Another theme that we have heard today is the importance of not just having an enforcement process but having an efficient and effective one. That is done partly by deciding what actions are appropriate on a case-by-case basis and using the existing powers that have the greatest chance of ensuring that parents meet their obligations to pay for their children.

The CMS has made a number of improvements to processes, for example by making better use of deduction from earnings orders so that they can be set up faster. The CMS has also brought forward the point at which deductions from bank accounts are made, which not only has increased the volume of deductions from bank accounts but means getting money to children faster. Working alongside His Majesty’s Courts and Tribunals Service, the Child Maintenance Service has improved court processing times by introducing virtual court presenting and the electronic exchange of documentation.

Following the Child Support (Enforcement) Act 2023, the Government propose to bring into force a legislative change to accelerate the enforcement process. The change will introduce a simpler administrative process to obtain a liability order against those paying parents who actively avoid their responsibilities. That will enable the CMS to take faster enforcement action, affecting at least 10,000 cases a year. They will also publish a consultation shortly on how the Child Maintenance Service collects and transfers payments to support survivors of domestic abuse, following the Child Support Collection (Domestic Abuse) Act 2023 receiving Royal Assent.

In addition, operating a scheme where parents are not paying their maintenance liability and where the Government guarantee child maintenance payments is not the intent of the Child Maintenance Service’s policy, which is the philosophical issue that we are stressing. The role of the CMS is to encourage parents to take financial responsibility for their children. The scheme is designed to encourage parents to agree their own family-based arrangements wherever possible, and that tends to be in the best interests of children. The CMS must always work in the best interests of children. The statutory scheme exists as a fall-back if parents are unable to reach those voluntary arrangements. The Government do not believe that the state covering the shortfall of unpaid maintenance is the right way to target additional funding appropriately, given that there is no means test for receiving parents.

We are also bringing the Child Maintenance Service into the modern age, having made a number of improvements to ensure that it delivers to the highest standard with a more digital customer focus. In order to get help arranging child maintenance on the digital service, which is available 24 hours a day, seven days a week, we are making it more accessible for parents to decide what type of arrangement is most suitable for them and to make an application online. Those improvements have already seen new applications rise by 13% in the year to September 2023, and I look forward to seeing further progress in the future. That is a welcome increase that we expect to continue with the removal of the £20 application fee. The upgraded online service allows customers to access and maintain their CMS cases themselves. Twenty-six different changes of circumstances can now be reported online. The advantage of digital systems means the service is, as I have said, available 24 hours a day. Many customer requests are now fully automated, so it is much quicker for parents to manage their own arrangements.

We have also, as I have said, improved the speeding up of enforcement processes. In the quarter ending September 2023, around £23.5 million—more than half—of the child maintenance collected through collect and pay was from parents who had a deduction from earnings order in place at the end of the quarter. Those improvements deliver a modern and efficient service for customers while enabling caseworkers to focus on parents who have more complex issues.

I will try to deal with specific issues that were raised. I might not succeed in three minutes, but I will at least try. I can confirm that the £20 fee has been removed as of yesterday, along with the eradication of debts of £7 and under, which we achieved through delegated legislation—the draft Child Support (Management of Payments and Arrears and Fees) (Amendment) Regulations 2023.

I was equally as concerned as the right hon. Member for East Ham to hear of the case of Rachel Parkin regarding the continuity of the support that she received from that single nominated caseworker. The Department will write to the Chair of the Select Committee to make sure that we properly understand that case and what can be done about it. There will be more to come on that point.

I was asked for updates on the progress of various Acts. It might be unhelpful to confirm that consultations are ongoing, because we want the measures to be proportionate, robust and targeted appropriately. It is never easy to rush consultations through. We are often criticised should we rush a consultation. Equally, I understand, not least from when I was a Back Bencher, that when final reports have been issued by the Government, people like to see action, so that point has been heard. I do not wish to pre-empt any Government decisions on curfews—those are not mine to take—nor would I wish to pre-empt the meeting of the former Secretary of State, my right hon. Friend the Member for Suffolk Coastal (Dr Coffey), with Viscount Younger when that will be fully discussed, I have no doubt. I, like her, await the outcome with great interest on what is discussed.

I have been told I now have one minute left, not three minutes. I would love to talk about fraud, but one point I have observed from my own casework is that very often people know that something is not right. They have suspicions that fraud might be occurring, but when they engage with the CMS it is not always taken forward. One thing that we hope to be able to do by the end of this month, in order to avoid vexatious frauds, is to provide to those making claims an illustrative list of evidence that the financial investigations unit will require to take an investigation forward. That then avoids the disappointment when someone thinks that something is going on, but they cannot prove it. I think that will help the individual stuck in that situation and perhaps also our caseworkers who try to guide people who ring our offices on how to go about it.

Anything that I have not covered I will cover in a letter to Members. On that note, I will sit down.

10:58
Stephen Timms Portrait Sir Stephen Timms
- Hansard - - - Excerpts

I thank everybody who has contributed to this important debate. We all deal with people who struggle with the Child Maintenance Service, so I am grateful for all the contributions that have been made. I welcomed the very constructive contribution that my hon. Friend the Member for Wirral South (Alison McGovern) made from the Front Bench. She is absolutely right that if there were more regular updates to Members about what is going on, that would be really helpful, given the changes that are happening.

On a couple of areas that we have touched on in the debate, first is the concern about paying parents. I am grateful to the Minister for his commitment that that fundamental review is under way. It would certainly be helpful to know how long he anticipates that review is going to take.

I was struck by the example given by the right hon. Member for Romsey and Southampton North (Caroline Nokes) about somebody who was told over the phone that he did not have any arrears, and yet he received a demand and deduction of earnings order to pay arrears. The hon. Member for Amber Valley (Nigel Mills) made a point about people receiving several notices with contradictory figures. Such muddle and confusion is terribly damaging. The stakes are really high. People are losing their lives. We must be able to come up with a system that delivers basic competence.

On the single caseworker, I was very concerned— I am grateful to the Minister for his assurance about a letter about that—but the implication was that that would be spread out to the whole system. I really hope that it is.

Motion lapsed (Standing Order No. 10(6)).

North Tees and Hartlepool NHS Foundation Trust

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Westminster Hall
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11:00
Alex Cunningham Portrait Alex Cunningham (Stockton North) (Lab)
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I beg to move,

That this House has considered the governance of the North Tees and Hartlepool NHS Foundation Trust.

I am pleased to serve under your chairmanship, Sir Charles, for this short debate about the historic governance of the trust, and about how the management of NHS North East and Yorkshire has dealt with the formal inquiry that questioned the integrity and performance of the board over two years ago. The outcome of that inquiry remains a mystery, as NHS North East and Yorkshire has fought for the past two years to keep the report a secret—a fight that continues today, and not just through my speech.

Before I get into detail on the failures of NHS North East and Yorkshire and its leadership, I want the House to know that I was proud to serve as a non-executive director of the trust before I was elected to Parliament nearly 14 years ago. I was proud that the trust was recognised not just for sound finances and delivering for patients, but for innovation and a can-do, will-do attitude that continued long after I found myself in this place.

Much of the credit for performance being maintained goes to the non-executive directors, who gave a large part of their lives to the trust and provided a robust challenge to the executive. That ensured that the trust’s performance, finances and proposals for new projects were examined in detail, not simply signed off; they were forensically examined to ensure that they were all delivering for patients. We owe a tremendous debt of gratitude to those people and to all independent non-executive chairs and directors for the work they do across our country, often in the most difficult circumstances.

Sadly, two years ago, the trust went through a very difficult patch that included the resignation of several non-executive directors, a few of whom I put on the record as my friends. That happened after the NHS regional leadership launched an inquiry that questioned the integrity and performance of the trust’s board, and in particular its non-executives. This was a trust that was rated as good. The contents of the ensuing report remain shrouded in secrecy, sadly, although what can only be described as a well-edited but short summary was published in 2022.

The inquiry was launched after a robust challenge from the non-executive directors to a proposal from the then new joint chair of the North Tees and South Tees NHS foundation trusts, Professor Derek Bell, to have a joint chief executive on an accelerated timescale. I suspect to this day that this was being driven not by the chair of the trusts, but by officials in the regional office, led by the regional director for North East and Yorkshire and North West, Richard Barker. So much for local decision making! I do not name an official on the Floor of the House lightly, but—given his approach to the issues raised by the inquiry—I believe that in the interests of natural justice I have no other option.

It appeared to the non-executive directors that the proposal for the new joint chief executive in November 2021 was being rapidly pushed through without due process, including consultation with the health and wider community, and without proper papers or a business case for the idea. That meant that there were no answers to the robust challenges from the non-executive directors. I can capture their views and concerns in a few bullet points: the joint chair’s proposal was made without consultation or discussion with the NEDs or governors; principles of good governance and due process were ignored or sidelined; the proposed timetable was highly risky and unlikely to lead to a sound appointment of a joint CEO; any proposal to install a joint CEO and some form of amalgamation of management structures would require careful planning, options appraisal and scenario modelling, extensive consultation with the boards and governors, senior trust stuff and other stakeholders, and expert input from human resources and legal teams; and the timeline for a successful appointment of a joint CEO was likely to be 18 months to two years, not a matter of just a few weeks.

The non-executive directors summarised their concerns and objections in a formal document, with an outline of how to organise progress towards a joint CEO and potentially a joint management structure in a way that would minimise risks and maximise benefits. The joint chair’s response was, I am told, obdurate and unyielding. There was no offer to discuss the matter at full board or a meeting of the council of governors, or to consider an alternative to his proposal. Trust between the joint chair and the non-executive directors had been severely damaged by his actions. It was at that stage that the members of the board, concerned that there was no proper process and that they were being steamrollered into a decision, alerted me to what was going on. For me, that was the real reason for the inquiry.

I believe that NHS England’s influence on the joint chair’s proposal was palpable and unhelpful. In late December 2021, the joint chair, CEO, deputy chair and senior independent NED were called to a meeting at short notice with representatives of NHSE, including Richard Barker and national board directors Sir Andrew Morris and Sir David Sloman, as well as the chair of the North East and North Cumbria integrated care board, Sir Liam Donaldson. Although the NHSE representatives recognised that they had no formal powers to oblige the board of a foundation trust to change its organisational form, they were insistent that the joint chair’s original proposal should go ahead as quickly as possible. The trust was informed that it had until the end of January to agree a plan. The meeting ended with the NHSE representatives commenting, “Don’t tell us that it’s going to take two years,” and “Just get on with it.” Some would suggest that this was simply an exercise in bullying.

In January 2022, it became clear to the non-executive directors that they could not approve a proposal that was not supported by a full and proper case, but within a month Mr Barker ordered the investigation into whether the board was acting in a unitary fashion, and into its behaviour and leadership. On 18 February, five of the six NEDs resigned with immediate effect, as they felt that they were being prevented from doing the job they believed they had been appointed to do, and that NHSE and the joint chair would steamroller their way to the desired outcome regardless of any advice to the contrary. I suspect that that is exactly what the powers that be wanted: the removal of people who were not sticking to the line or doing what the officials wanted, but were instead maintaining their independence and putting patients first.

There was an allegation that the non-executive directors were somehow deliberately delaying the proposal for a joint chief executive. Were they supposed to roll over and not do their job of scrutiny properly? I am sure that the Minister will understand that the non-executive directors were insisting on due process and consultation with the trust’s wide range of partners. I believe to this day that they were right to ensure that others were aware of what was going on. They were concerned, as I was, that it was the start of a merger process for the two trusts. One of the trusts, North Tees, was considered high-performing at the time; the other, South Tees, was struggling and under considerable scrutiny from the Care Quality Commission. Happily, there have been improvements since then.

Non-executive directors are required to be independent and put the interests of patients first. Their robust challenge was clearly not appreciated by the chair and regional bosses. Those non-executive directors were local. They knew their community and wanted to do their best for them. I would like to put it on the record that not one of the new non-executive directors lives in the general area served by the trust—a completely opposite picture to the one before. It took me several attempts to find out where the new people hail from. Only when I issued a request under the freedom of information system was I told the answer: the new non-executive team come from Stafford, Hexham, Newcastle, Middlesbrough, which is quite nearby, Crook and Northallerton. I hope that the Minister will acknowledge that the idea of local trusts is just that—local—and that local people best know the needs of their community.

The outcome of the inquiry remains a mystery to all, including those who were investigated. The full report is being kept under wraps by NHS North East and Yorkshire executives, despite Richard Barker sitting in my office in Stockton and assuring me that it would be made public. What on earth have they all got to hide? Perhaps it is the fact that their actions were being questioned or that they had needlessly mounted an inquiry because the non-executive directors wanted to understand why a joint chief executive was being proposed and would not just roll over.

When Mr Barker refused to publish the report in full as he promised, I wrote to him several times, but I had to resort to the FOI request, which was ignored for some considerable time. I did think I had finally persuaded them when I eventually got a copy of the report, but it was so heavily redacted by Mr Barker and his team as to render it useless. The excuse that individuals had to be protected was far from satisfactory.

We still do not know whether the report showed that the non-executive directors were failing in their duty, or whether NHS North East and Yorkshire was even justified in mounting the inquiry. As I say, the fight for the full report continues. Although I contested the decision to make the redactions, I decided, on learning that one of the former non-executive directors was pursuing it through the Information Commissioner, to allow that action to take its course. That is still in play. Today I am asking the Minister to save the Information Commissioner a job and order Mr Barker—who commissioned the report, but then blocked its publication—to publish it now.

The Minister should also find out why this sorry mess was allowed in the first place. The decision to mount the inquiry called into question the integrity of people of long-standing service, yet not even they have been allowed to see it. They remain damaged by what has gone on, and they deserve to know what the report says—a report that cost tens of thousands of pounds. They want to see whether it is critical of them or not.

I suspect that the report remains under wraps because it may be critical of others in this sorry saga; in fact, I know that to be the case. In my Stockton office, when Mr Barker promised me full transparency and publication of the report, he said that it would be critical of the chair’s role in the scandal. That was omitted from the short summary report published by the regional officials and is not obvious from the redacted report. Mr Barker also acknowledged that the region could have handled the matter better, and I suspect that the report does too. He, too, now needs to be held accountable; I have, in the past, called for his resignation. I have no doubt that the regional officials have some questions to answer about the appalling way in which they have handled this matter.

To go back to the central issue, neither the non-executive directors nor I were opposed to the idea of a joint chief executive. In fact, I placed it on record that I was not even opposed to the two trusts one day becoming one, provided that our local hospital services were maintained and even improved. Yes, the regional officials did get their way in the end, but it was a genuine pleasure for me—I mean that honestly—to meet the new joint chief executive recently when the mayor of Stockton-on-Tees, Jim Beall, held his charity ball. Only time will tell whether a joint chief executive is the right decision. I sincerely hope that it is.

I reiterate my request to the Minister to order the publication of what should never have been a secret report. It is in the interests of natural justice, it is the right thing to do and it will give those affected the chance to move on with their lives. I provided the Minister’s office with the gist of the issues that I wanted to raise today, and I can provide him with a much fuller timeline that was too detailed for me to put on the record today. I look forward to a positive response that can help us to draw a line under this whole sorry matter.

11:13
Andrew Stephenson Portrait The Minister for Health and Secondary Care (Andrew Stephenson)
- Hansard - - - Excerpts

It is a pleasure to see you in the Chair, Sir Charles. I congratulate the hon. Member for Stockton North (Alex Cunningham) on securing this important debate. He has used it to raise important questions that are vital to NHS governance—localism, transparency and accountability. He is right that patients in his constituency and the wider region should be at the forefront of decision making about their healthcare. NHS England has found that shared leadership and group working arrangements between trusts can stabilise governance and align approaches to help improvement.

Matt Vickers Portrait Matt Vickers (Stockton South) (Con)
- Hansard - - - Excerpts

I thought that those were very legitimate questions and concerns about the way forward with mergers—joint working—but one of the issues in our part of the world is that South Tees Hospitals NHS Foundation Trust was burdened by the last Labour Government with a huge PFI deal at James Cook Hospital that cost £1 million a week. That is what makes this contentious. That is what makes it so difficult to see joint working in our part of the world.

Andrew Stephenson Portrait Andrew Stephenson
- Hansard - - - Excerpts

I thank my hon. Friend for making that point. I recognise that they are two trusts with very different characteristics. He is right about the eye-watering legacy in one trust—I think it is £57 million a year of PFI debt—which can make joint working controversial. However, as I will come on to say, I have been assured that the two trusts want to work together with joint arrangements, but not merge. I hope we can set the record clearly: in doing the research behind this speech, I have heard that this is not the prelude to a merger through the back door; rather, it is about trusts wanting to work together to address the healthcare needs in the area.

It is right that any decisions about shared leadership arrangements are made in Stockton, not Westminster. However, where an NHS trust is facing performance challenges, the Government back targeted interventions by NHS England, bringing the trusts together to properly diagnose the problem and develop an improvement plan, which could include shared leadership. Any leadership changes should be kept under constant review to ensure that they are effectively delivering for patients and the local area. The point is to help challenged trusts to improve and take ownership of local issues. External evaluations of NHS England’s leadership interventions have found them to be effective.

I will address the current leadership arrangements of the North and South Tees trusts. Up and down the country, trust governance fits a variety of different frameworks. As the hon. Member for Stockton North knows, putting a round peg in a square hole is pointless. However, although we support a diversity of models, I am crystal clear that every arrangement should be geared towards building a faster, simpler and fairer NHS that works for both patients and staff. I am happy to assure him that, in this instance, I have been assured that the shared leadership and joint working arrangements are not in any way a precursor to trust mergers or acquisitions. In other words, both trusts intend to remain statutory organisations in their own right.

NHS England promotes those models of working to maintain consistency within trusts and to ensure that everyone is on the same page when lessons are being learned. However, for over 10 years now, North and South Tees trusts have been discussing how to work together to provide a better offer for the people of Stockton.

Alex Cunningham Portrait Alex Cunningham
- Hansard - - - Excerpts

The Minister may like to acknowledge that the North Tees and Hartlepool trust and the South Tees trust have worked together for many years. It is not a case of how they can do it in the future; they have been doing it for many years.

Andrew Stephenson Portrait Andrew Stephenson
- Hansard - - - Excerpts

They have been doing it for many years. There are shared challenges in the area that they need to work on together, and this model of operation has worked in many parts of the country. I hope that what the hon. Gentleman describes is very much a bump in the road rather than something that characterises the past 10 years of joint work, most of which seems to have been constructive and conducted through local consensus.

In September 2021, the trusts appointed a joint chair. Just over a year later, they announced plans to form a group model to strengthen health services in the local area. That model was intended to improve recruitment and retention of specialist doctors and nurses, ensure join-up with local communities and partners, and secure capital investment to rebuild and upgrade hospital facilities. To deliver that new way of working, I understand that North Tees and South Tees foundation trusts engaged extensively with partners in the local area.

There is now strong collaborative work taking place across the Tees Valley, in the long-term interest of patients. The North Tees foundation trust is one of the best performing providers across the country for urgent and emergency care. The area’s NHS urgent care services will now be run by an alliance of four health organisations, including the North Tees and South Tees foundation trusts. Together, the partnership will oversee minor injuries and illnesses across the Tees Valley, including urgent care centres at the University Hospital of Hartlepool, the University Hospital of North Tees, and Redcar Primary Care Hospital.

I am delighted that the new urgent treatment centre at the James Cook University Hospital opened in March. We are backing the centre with a £9 million investment in urgent care services on Teesside, which will integrate services, provide patients with care close to home, and ease pressures on A&E. We should also celebrate the new Government-funded Tees Valley community diagnostic centre, which will open in Stockton town centre later this year. The centre will offer rapid scans, tests and checks for a number of major conditions. It will help thousands of people to access simpler services, with easily accessible life-saving tests and faster treatment.

I turn now to the investigation that the hon. Member for Stockton North raised. I understand that NHS England looked into the proposed appointment of a joint chief exec, as well as the actions and behaviours of the board. It aimed to find out whether these concerns amounted to breach of the trust licence. The investigation determined that the trust board had not acted consistently in relation to moving to a single chief executive appointment for South Tees. This constituted evidence suggesting a breach of a provider licence by the North Tees and Hartlepool Trust, which would normally lead to formal regulatory action being taken. After careful consideration, however, NHS England decided that the trust should implement the recommendations on a voluntary basis.

Alex Cunningham Portrait Alex Cunningham
- Hansard - - - Excerpts

Does the Minister recognise that the non-executive directors had moved on by then? They had actually resigned from their posts in protest at the lack of due process. Does the Minister, or maybe even the region, accept that this matter could have been handled a lot better?

Andrew Stephenson Portrait Andrew Stephenson
- Hansard - - - Excerpts

I hope the hon. Gentleman recognises that there are local government arrangements, and also that these are very much operational matters for NHS England and for the region. Certainly, given the concerns that he has outlined, it is quite clear that things could have been done better to take people with them, rather than alienating people. I also echo the tributes he paid to people who serve as non-exec directors on trust boards across the length and breadth of the country. They play a vital role in local NHS governance, and it is therefore regrettable to see a large number of non-execs resign for any reason.

I think that looking at the reasons behind this and investigating the best way forward is something best delivered by the NHS, and not dictated centrally by Ministers. The recommendations arising from the report were that a summary of it should be presented at the next board meeting and that an action plan for the next steps should be agreed, which has now been completed. It was also recommended that proper consultation between board members of both organisations should take place in future, so that they can reach the best collective decision for better services for Stockton. I hope that the trusts are now able to move forward with these new arrangements, especially with a new joint partnership board, establishing a clear chain of accountability going forward to address their challenges during this troubled period.

In wrapping up, I would like to thank the hon. Gentleman for bringing this debate forward.

Alex Cunningham Portrait Alex Cunningham
- Hansard - - - Excerpts

The Minister has just indicated that he is wrapping up, but the central question here is whether or not that report will be published. I have a heavily redacted report, which has more black ink than white paper. Does he accept that those people have the right to understand what judgments were made on the accusations against them? They should see the full report, not a version from the person who ordered it and then refused to publish it.

Andrew Stephenson Portrait Andrew Stephenson
- Hansard - - - Excerpts

I hope the hon. Gentleman will appreciate that the NHS commissions a large number of reports on a whole range of services. When those reports are published internally, we expect all participants to be frank and open with investigations. They do so on the basis that they are internal reports to improve the governance of the organisation. It is not expected, and it is not the normal course, for such a report to be published. My understanding is that, following the hon. Gentleman’s freedom of information request, the report will be published in a heavily redacted fashion, as he said. The redactions were made by NHS England, in accordance with its policies. It is not a report that I am privy to and, to the best of my knowledge, it has not even been shared with the Department. It is an NHS England report that, as I say, has been published in accordance with its usual practices.

Alex Cunningham Portrait Alex Cunningham
- Hansard - - - Excerpts

Frankly, I find it amazing that a Minister cannot even get access to a report that questioned the integrity of five long-standing non-executive directors, who then resigned because of the lack of due process in the appointment system. I remind the Minister that, as I said in my speech, Mr Barker sat in my office and told me, face to face, that he would publish the report and that I would get to see it. He has reneged on that promise. Does the Minister think he should fulfil that promise?

Andrew Stephenson Portrait Andrew Stephenson
- Hansard - - - Excerpts

Unfortunately, I will just reiterate the point that a summary of the recommendations emerging from this investigation were published; they were shared with the board. They are accessible by anyone who wishes to see them. Through his own endeavours, the hon. Gentleman has been able to secure a copy of the redacted full version of the report. As far as I can see from the investigations that I have made, the report has been published fully in accordance with NHS England’s normal practices.

Clearly, this is something that has led to a rocky period for the trust, but I believe that the recommendations that have been shared with the board are now being implemented and that the group model of working, as I have said today, is not a merger by the back door. I know that, in securing this debate, the hon. Gentleman wanted to give greater impetus to the trust to get its act together and resolve these issues. I am absolutely sure that the issues he has mentioned today will have been heard by members of the trust’s board—I am absolutely sure they have been listening. I urge them to work with him and other local MPs to ensure that any other concerns that he has raised, and any other concerns that other hon. Members may have, are addressed in due course.

Alex Cunningham Portrait Alex Cunningham
- Hansard - - - Excerpts

Can I wind up, Sir Charles?

Charles Walker Portrait Sir Charles Walker (in the Chair)
- Hansard - - - Excerpts

No, not in a half-hour debate.

Question put and agreed to.

11:26
Sitting suspended.

BBC News Impartiality: Government's Role

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Westminster Hall
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[Hannah Bardell in the Chair]
14:30
Michael Ellis Portrait Sir Michael Ellis (Northampton North) (Con)
- Hansard - - - Excerpts

I beg to move,

That this House has considered the Government’s role in upholding the impartiality of BBC news coverage.

It is an honour to serve under your chairmanship, Ms Bardell. I refer the Chamber at once to my entry in the Register of Members’ Financial Interests. I am grateful to have secured time for this important debate.

The BBC is a much-treasured national institution. Its news service is relied on by millions of British people and others around the world. Impartiality is rightly the foundation stone of the BBC’s operational guidelines and the very reason why it has garnered the trust of its users over many years. Its journalists provide an invaluable public service, often in trying and sometimes even dangerous circumstances. It is with great regret, though, that I have concluded that the BBC’s impartiality has been brought into disrepute. The BBC has found itself at the centre of ever-increasing controversy in recent years, and the organisation’s coverage of the Israel-Hamas war has led it comprehensively to fail the British public.

Alec Shelbrooke Portrait Sir Alec Shelbrooke (Elmet and Rothwell) (Con)
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Will my right hon. and learned Friend give way?

Michael Ellis Portrait Sir Michael Ellis
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I will make a little progress, then I will give way. The tragic events in Israel and Gaza undoubtedly pose a challenge to any media outlet given the strength of feelings that they elicit. However, a careful review of BBC output shows a clear failure to uphold its obligation to impartiality. In doing so, BBC News’s broadcasting and online content has actively inflamed community tensions here in the United Kingdom, fuelled the appalling rise in antisemitism and, in at least one particularly shocking case, harmed diplomatic efforts to bring an end to the violence.

Alec Shelbrooke Portrait Sir Alec Shelbrooke
- Hansard - - - Excerpts

Before we move on to the in-depth part of my right hon. and learned Friend’s speech, is not one of the problems with the BBC that it lays down rules then just ignores them? For example, what Gary Lineker wants to say is up to Gary Lineker. However, if the BBC says, “You do not have the right to do that,” when he then does it and waves two fingers, does that not completely undermine the BBC’s editorial content?

Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

My right hon. Friend is absolutely right. The BBC’s failure to adhere to standards and deal with those problems when they arise is a fundamental, systemic and systematic problem; I will come on to that.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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Will the right hon. and learned Gentleman give way?

Theresa Villiers Portrait Theresa Villiers (Chipping Barnet) (Con)
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Will my right hon. and learned Friend give way?

Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

I will give way to the hon. Member for Strangford (Jim Shannon).

Jim Shannon Portrait Jim Shannon
- Hansard - - - Excerpts

I thank the right hon. and learned Gentleman for bringing forward this debate. I apologise to him and to you, Ms Bardell, for not being able to be here throughout; I have a meeting with a Foreign, Commonwealth and Development Office Minister. The right hon. and learned Member is right to set out the case on Israel and Hamas. If we look at the BBC’s bias against Brexit and Northern Ireland, it cannot even name our country right; indeed, its correspondent is called the Ireland correspondent. My goodness me. How long will it be before the BBC understand that when the Welsh correspondents are called Welsh correspondents and the Scottish correspondents are called Scottish correspondents, the people of Northern Ireland should have a Northern Ireland correspondent? We are part of the United Kingdom of Great Britain and Northern Ireland. That is who we are. The quicker that the BBC catch on, the better.

Michael Ellis Portrait Sir Michael Ellis
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The hon. Member makes a good point. The examples of biased content are great in number, and I simply do not have the time to document all of them.

Theresa Villiers Portrait Theresa Villiers
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Will my right hon. and learned Friend give way?

Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

I will share a sample in a moment, but I will give way first.

Theresa Villiers Portrait Theresa Villiers
- Hansard - - - Excerpts

One of the most worrying examples of biased content on the BBC was their coverage of the bombing of the al-Ahli Arab Hospital, where its rush to accept the Hamas allegation that it was caused by Israel genuinely created problems on the ground and made it harder to resolve things. It had a real-life impact. That is an example of how the BBC needs to be much more careful in its coverage of Israel.

Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

My right hon. Friend makes a good point, and I shall come on to that in more detail momentarily.

BBC News has been roundly and deservedly ridiculed for its abject failure to identify Hamas as a terrorist group. Under immense pressure, the BBC eventually chose to acknowledge in its ongoing coverage that Hamas is proscribed in the United Kingdom, but it still refuses to explicitly label it as a terror group. That double standard was clear for all to see just weeks after Hamas’s heinous pogrom on 7 October, when BBC News immediately reported on its website an incident in Brussels as a “terror attack” linked to Daesh. Not only is the BBC failing to uphold the law of this country when it refers to Hamas as anything other than a terror group, it is effectively becoming complicit in Hamas’s well-orchestrated disinformation campaign.

The most dangerous example of the dissemination of disinformation during the current conflict came on 17 October—as my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) has said—when the BBC inaccurately reported that Israel was responsible for an explosion in the Al-Ahli Arab Hospital. BBC News’ breaking news Twitter account hurriedly notified its 51 million followers:

“Hundreds feared dead or injured in Israeli airstrike on hospital in Gaza, Palestinian officials say.”

BBC News’ international editor Jeremy Bowen told television audiences that “hundreds” had been killed and “thousands” injured after the hospital was “destroyed” in what he described as “the attack”—terminology that would clearly lead viewers towards the wrong impression that Israel was responsible.

There was an urgent Israeli investigation into the explosion at the hospital, subsequently independently confirmed by non-Israeli sources, which revealed that the incident was in fact caused by a misfired terrorist rocket launched by Palestinian Islamic Jihad. Even then however, BBC News saw fit to present claims and counter claims on its website, as if there was some sort of moral equivalence between a democratic state whose leaders are elected by their people and whose courts deal with their government, and a genocidal terrorist group that oppresses its people and murders children and innocent civilians.

Simon Jupp Portrait Simon Jupp (East Devon) (Con)
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Will my hon. Friend give way?

Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

I will in a moment.

That particular incident at Al-Ahli Arab hospital had profound real-world implications. It led to the cancellation of a Head of State-level regional peace summit and violent protests erupting across the middle east, and the World Jewish Congress said it contributed to a spike in antisemitism globally—including the burning of synagogues in Tunisia and Germany. Such were the repercussions of that one misreport.

Reasonable people accept that mistakes can be made in any profession. However, it was the dismissive nature of the BBC’s response to the Al-Ahli coverage debacle, and the continuing pattern of troubling output since then, that does not reassure that lessons have been learned. Disgracefully, when Jeremy Bowen was interviewed about the incident he dismissively said he did not “regret one thing”, and that he did not

“feel particularly bothered about that.”

Bowen seemingly downplayed Israel’s discovery of evidence—including guns—that confirmed Hamas’s military operations within Gaza’s Al-Shifa hospital, saying it was “not convincing”. Perversely though, he said

“wherever you go in the Middle East you see an awful lot of Kalashnikovs and it’s not inconceivable that…I dunno…perhaps the security department of the hospital might have them.”

Repeated preparedness by the BBC to disseminate unverified claims provided by a proscribed terrorist group with a track record of disinformation should trouble us all.

Simon Jupp Portrait Simon Jupp
- Hansard - - - Excerpts

My right hon. and learned Friend is making a great speech detailing some of the failures of BBC editorial policy. However, it is not just the BBC that does not describe Hamas as a terrorist organisation, other public service broadcasters such as ITV and Channel 4 do not do so either.

As politicians, we have to be a bit careful about asking broadcasters to bow to our whims as Members of Parliament when it comes to proscribing things and making editorial decisions. As a former BBC journalist myself, I think there is a real need to balance that with editorial justification and impartiality—and I am sure my right hon. and learned Friend will come on to that in his speech. It is important to recognise that other public service broadcasters also do not describe Hamas as a terrorist organisation.

Hannah Bardell Portrait Hannah Bardell (in the Chair)
- Hansard - - - Excerpts

Before the right hon. and learned Gentleman continues, I remind Members that interventions should be short and brief.

Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

What we want, need and expect from the BBC is a lack of bias and proper impartiality—that is all anyone expects. It is supposed to be a leader in its field and to set an example for other smaller broadcasters. I make no apology for expecting high standards from the BBC.

Andrew Percy Portrait Andrew Percy (Brigg and Goole) (Con)
- Hansard - - - Excerpts

In relation to the point made by my hon. Friend the Member for East Devon (Simon Jupp), is it not the case that, when we have a criminal case in this country, the BBC describes the people in those criminal cases as murderers, burglars or whatever else they are? We have a legal framework in this country that has determined that this is a terror organisation, and the BBC should apply the same rule in that situation.

Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

My hon. Friend is absolutely right. As my example indicated, it does that for Daesh, which is another terrorist organisation. It will not do it for Hamas, and that is because of a link with Israel. Not all examples are as flagrant; the bias of BBC News and its journalists can be seen in other ways, which shows the depth of the problem. The BBC follows Hamas’s cynical policy of not distinguishing between civilian and combatant casualties. BBC News reports routinely add what amounts to disclaimers on information released by Israel or the Israeli army as being unverified. Time and again, that same rule is not applied to information released by Hamas. It was only after another pressure campaign that the BBC even started informing viewers that casualty figures in Gaza were provided by a terrorist-controlled Hamas health ministry, yet that seldom comes with a disclaimer about how they are unverified by the BBC.

For example, take a story on the BBC News website from just 2 February this year, in which it reports:

“More than 26,750 Palestinians have been killed and at least 65,000 injured, according to health officials in the Gaza strip.”

It then states:

“Israeli officials say that 9,000 of those killed were Hamas militants but have not provided evidence for the figure.”

By the way, Hamas have subsequently said that they had lost 6,000 fighters, still half of what Israel has claimed, but the BBC has chosen to ignore that Hamas statement, unlike many other news outlets. That happens daily. Each time the message that it conveys to readers, viewers or listeners is that Israel is not to be trusted over the word of a proscribed terror group that are known to wage information war.

William Cash Portrait Sir William Cash (Stone) (Con)
- Hansard - - - Excerpts

On the broader question of the charter itself, a royal charter confers a privilege, which is effectively a kind of monopoly. Does my right hon. and learned Friend agree that the licence fee payers, who come from all over the country, are themselves paying for disinformation on the basis of what he is saying? That, if it were a product liability issue, would lead to all kinds of legal consequences.

Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

My hon. Friend makes a very good point. Of course, it puts the BBC in that elevated status where the taxpayer is obliged to pay for it, and there are consequences from its poor leadership in this area. The BBC’s coverage of weekly pro-Palestinian marches has displayed an extraordinary disconnect from reality. It has repeatedly stressed that the marches are “mostly peaceful”, yet television reports have featured BBC journalists amidst crowds chanting genocidal refrains and brandishing flagrantly antisemitic placards. Not all viewers will have an understanding of those deplorable scenes and it is incumbent on the BBC to cover them responsibly.

On 30 October, the BBC posted a news item on its news app headlined, “Met Police chief wants clarity on extremism”. The article actually concerned the appalling displays of antisemitism and violent rhetoric at those pro-Palestinian rallies, but strangely the BBC saw fit to use a photograph of an Israeli flag as the banner image accompanying the piece. The message that would send to the casual reader is unmistakable: Israelis, or pro-Israel individuals, are the extremists.

I would like to touch on BBC Arabic now, which has repeatedly presented former Palestine Liberation Organisation Major General Wasif Erekat, who has celebrated the “heroic military miracle” of 7 October, as an independent military expert. Erekat has appeared on BBC Arabic at least 12 times since 7 October, despite having admitted to firing artillery shells on what he calls “Zionist positions” from Lebanon, and making outrageous remarks about how Hamas does not target civilians.

Concerns about bias within from the BBC are perhaps unsurprising when one considers some of the employment controversies engulfing the organisation, which I would like to touch on now. A scheduling co-ordinator for BBC3, Dawn Queva, branded Jewish people “Nazi apartheid parasites” and referred to the holocaust as the “holohoax”. In the wake of 7 October, BBC News Arabic journalists likened Hamas to freedom fighters and spoke of a morning of hope. A Beirut-based correspondent on BBC Arabic, Sanaa Khoury, tweeted that Israel’s prestige is “crying in the corner” and liked a comment about receiving sweets that were distributed in celebration of Hamas’s attack.

We have heard about Gary Lineker, who encapsulates the problem within the BBC. Lineker has shared a video with 8.9 million of his followers, with the offensive accusation that Israel is committing genocide and mourning the death of a Palestinian footballer, who was later revealed to be a “martyr fighter” for Hamas. He also shared a message calling for Israel to be banned from international football tournaments. Lineker has frankly made a mockery of new social media guidelines that had been drawn up following an earlier controversy over his politicised posts.

Amid that sorry state of affairs, it is perhaps unsurprising, though no less distressing, that the director-general of the BBC, Tim Davie, recently acknowledged that antisemitism was within the corporation. Perhaps that is not surprising, when “The Apprentice” star, who we have heard about recently, tweeted that Zionists were “odiously ogre-like”. The BBC compliance department apparently ruled that that was not antisemitic. Instead, they sent him on a diversity course. If Zionism were just a policy, and not a euphemism for Jews, as we all know it is, how can someone who supports a policy, of any sort, be physically ugly? That gives the lie to the whole charade. What they are really talking about when they say Zionists is, of course, Jews. Shamefully, BBC employees were prohibited from attending a major march against antisemitism last year, on the spurious grounds that it was controversial. Compounding that, BBC News saw fit to describe that as a pro-Jewish march.

The BBC has been criticised by Ofcom for its coverage, as many will recall, of a vile antisemitic attack on Jewish students in London in December 2021, finding that it had

“failed to observe its editorial guidelines on due impartiality and due accuracy.”

In that episode, the BBC had falsely accused Jewish victims of making anti-Muslim slurs. That was swiftly disproven, but the BBC failed to update its online news article for nearly two months, with no regard for the wellbeing of the attack victims and the wider Jewish community.

Simply, there have been too many examples of a lack of impartiality for the BBC to keep dismissing concerns. The BBC’s biased coverage throughout this conflict has undoubtedly had an impact on the public’s perception and the understanding of it, and has steered it in a more anti-Israel direction.

Kirsty Blackman Portrait Kirsty Blackman (Aberdeen North) (SNP)
- Hansard - - - Excerpts

What response has the right hon. and learned Member had from the BBC when he has raised these concerns? Is it taking action?

Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

I will be coming to that. We know that the BBC has received myriad complaints. The consequences of its lack of impartiality have been particularly acute for the UK’s Jewish community. Just as the Al-Ahli misreporting led to a violent spike in antisemitism across the world, so too has the relentless bias of BBC News coverage contributed to the record level of intimidation and attacks on British Jews.

It is interesting to note that more than three quarters of Jews in Britain—77%—believe that BBC coverage of the war in Gaza is biased against Israel, according to a recent poll by Survation for a newspaper. Dozens of current Jewish employees at the BBC are understood to have filed formal complaints related to their concerns about antisemitism, describing it as a “grim” and “frightening” time to be Jewish at the corporation. The BBC’s senior management has fundamentally failed to deal with this problem and uphold its own guidelines. The organisation now appears complicit in peddling misinformation and allowing antisemitism to fester. In those circumstances, I have come to the conclusion that the BBC is institutionally antisemitic.

It has now been 20 years since the Balen report into the BBC’s anti-Israel bias. The organisation has spent hundreds of thousands of pounds of hard-working licence fee payers’ money to suppress that 20-year-old report. I ask my hon. Friend the Minister to join me and add her voice to the calls for the BBC to finally publish that report. I wrote to the director general before Christmas, and he declined to release it. I also ask the Minister whether she would agree that the time has come to finally say that the BBC’s ability to mark its own homework must be removed. Existing complaints procedures are ineffective and do not command confidence.

I shall end by recounting the words of 22-year-old Noah Abrahams, who left his dream job at the BBC after its refusal to unequivocally call Hamas what it is: a terrorist organisation. Noah said that words have the power

“to fuel hate and put fuel on the fire…Words impact how we think, how we react, how we act. They have influence.”

I challenge all of us here to stand up for truth, challenge the BBC in its deeply entrenched bias, and call for accountability.

Hannah Bardell Portrait Hannah Bardell (in the Chair)
- Hansard - - - Excerpts

I remind hon. Members to bob if they wish to be called to speak. I hope to call Front Benchers by 3.28 pm, so I ask those who are speaking to be mindful of that.

14:52
Gregory Campbell Portrait Mr Gregory Campbell (East Londonderry) (DUP)
- Hansard - - - Excerpts

I congratulate the right hon. and learned Member for Northampton North (Sir Michael Ellis) on securing this debate. I will start, as indeed he did, by quoting what anyone can get if they go on Google and ascertain the BBC’s main contribution to wider society on its website:

“The BBC is the world’s leading public service broadcaster. We’re impartial and independent, and every day we create distinctive, world-class programmes and content which inform, educate and entertain millions of people in the UK and around the world.”

That was indeed the case many years ago. I hope that the BBC can salvage something of its reputation and return to that high-sounding statement of what it sets itself up to be.

The right hon. and learned Friend the Member for Northampton North alluded to the high-profile on-screen talent, as they are called. The most expensive, well-paid employee in the BBC is Gary “Multimillionaire Lefty” Lineker. Mr Lineker was taken to task whenever he made his initial contribution, which it was felt breached the guidelines. The BBC agreed that he did indeed breach the guidelines to which he and others were expected to adhere. Within a few hours, however, some of Mr Lineker’s on-screen friends—some of whom were in his employ—decided to down tools, and they walked out. We had one edition of “Match of the Day” without Gary Lineker in situ. Then the director general of the BBC caved in, instead of saying to Mr Lineker and those who were with him, “There’s the door. If you don’t like the guidelines, off you go and get jobs elsewhere.” That is what the director general should have said—and did not. He caved in, and Mr Lineker returned, smirking at his ability to thumb his nose at the guidelines.

Then the BBC revised the guidelines and Mr Tim Davie was asked: if Mr Lineker says again, under the guise of the new guidelines, what was in breach of the old guidelines, is he in breach of the new ones? The director general could not really answer the question. I do not know whether Mr Lineker decided to test the water again, but off he went. The right hon. and learned Member for Northampton North alluded to what he said the next time; and, of course, no action was taken. Unfortunately, this is a blatant example of how the BBC seems to be prepared to take whatever the woke or the leftist agenda is as something they must endorse. If there is a breach of the guidelines, it turns a blind eye to it.

Simon Jupp Portrait Simon Jupp
- Hansard - - - Excerpts

The hon. Member is making a very good point about high-grade staff at the BBC. Does he agree that, whether someone is a staff member or a star, the social media guidelines for working in the BBC should be exactly the same?

Gregory Campbell Portrait Mr Campbell
- Hansard - - - Excerpts

Yes, I do, and the penalty should be the same as well. That should go without saying, but unfortunately we have to say it.

I wish to turn to the comprehensive analysis that the right hon. and learned Member for Northampton North gave about Hamas and Israel. He spoke with in-depth knowledge, and I do not wish to add anything other than to agree with him. I watched aghast at some of those breaches, whether it be Jeremy Bowen or the BBC News Arabic journalist, and the whole plethora of issues he raised.

The BBC has some excellent investigative analysis programmes, such as “Panorama” and BBC Northern Ireland’s “Spotlight”. From time to time, they do very comprehensive, in-depth investigations into issues that are in the public interest. That is exactly what they should do, and they are to be commended when they do it. But over a period of years, there has been an issue of huge public interest, not just in Northern Ireland but across the UK, and it is a concept that I have consistently ridiculed, because I have personal experience of it: the hard border on the island of Ireland.

There could have been a “Panorama” or “Spotlight” investigation to show how ludicrous it is and how porous the border is. It was nonsense to be bullied by the EU to agree to some sort of trading regime between the UK and the EU because of the threat of a hard border when it could not materialise, because there were 280 physical crossing points on the land border, which only stretches for 300 miles. It would take a military force of some hundred thousand personnel to man up, and we had 30,000 personnel when there was a murder campaign and they could not create a hard border. But there was no “Spotlight” or “Panorama” investigation into the concept of a hard border.

Similarly, at the moment we have a trading issue between Northern Ireland and GB, which is hopefully being resolved. We could have an investigative programme into the problems that some people have in trying to get plants and seeds from GB into Northern Ireland. A simple reporter, with a photographer, cameraman and a sound person, could go on the ferry from Belfast to Stranraer, acquire a few plants and seeds, put them in a car, drive back to the ferry and return to Northern Ireland with no problem caused to the EU single market. Yet the EU demands certain regulations, which we hope are being resolved. There is no investigation by the BBC, when it could and should be doing one.

Another issue that is coming up is a BBC Four programme called “Shooting the Rapids”. It is to be broadcast this weekend, although I will obviously reserve complete judgment until I watch it. In it, a former director-general of the BBC says that the British public were not being told the truth about the troubles in the 1960s and 1970s in Northern Ireland because—I apologise for the language—

“the bloody Protestants were running the BBC in Northern Ireland.”

I do not know where he has been for the last 30 or 40 years, but he needs to come back and check who is running the BBC in Northern Ireland now. Martin Bell and Denis Tuohy of the BBC also say that the BBC was prevented from telling the British public about discrimination against Catholics in education, work and housing. If they had come to me or gone to people I would have recommended they speak to about disadvantage in education, work and housing, they would have seen that it is not the people they think, but many Protestants, who are currently disadvantaged in those sectors.

So there are some programmes, and I hope the Minister will take on board the issues. I do not expect her to respond to every assertion about individual programmes, but there is an Ofcom responsibility and a Government responsibility, particularly regarding the recent mid-term review, to tell the BBC that there have been a plethora of assertions and allegations made against its coverage and its partiality and partisanship in news reporting.

Paul Girvan Portrait Paul Girvan (South Antrim) (DUP)
- Hansard - - - Excerpts

There is very much an imbalance within the BBC in relation to those in frontline reporting being from one section of the community or another. The difficulty we have is that there seems to be a hidden agenda in terms of what happens not only in Northern Ireland but in this House. What is deemed important is what is made important by the media, not necessarily the general public; it is what the media want to portray as the most important thing to focus on.

Hannah Bardell Portrait Hannah Bardell (in the Chair)
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Order. Before the hon. Member responds, let me say that I am sure we are all looking forward to him making his peroration so that everybody gets a good crack of the whip.

Gregory Campbell Portrait Mr Campbell
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Thank you, Ms Bardell, and I will bring my remarks to a close. I agree with my hon. Friend. These issues have to be investigated. Hopefully the Minister, who I know takes a deep interest in these issues, will be able to raise them with the director-general and we will see, not words, promises and new guidelines, but action from the BBC, both nationally and in the regions.

Hannah Bardell Portrait Hannah Bardell (in the Chair)
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Before I call Steve Double, let me say that I am going to impose a formal time limit of four minutes to allow interventions and to make sure that everybody can get in.

15:03
Steve Double Portrait Steve Double (St Austell and Newquay) (Con)
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It is a pleasure to serve under your chairmanship, Ms Bardell. I congratulate my right hon. and learned Friend the Member for Northampton North (Sir Michael Ellis) on securing this important debate. He made an excellent opening speech and, as I have only a few minutes, I will not cover the ground that he covered. He made great points and cited specific cases where the BBC is clearly failing in its responsibility to be impartial, particularly in regard to the reporting of the events in Israel and Gaza.

The BBC enjoys a privileged position in our country, particularly in the broadcast media. It is funded by the licence fee—it is, effectively, publicly funded—and we have a right to expect it to uphold higher standards than anyone else. Comments were made about other broadcasters, but we expect the BBC to set the standard and to provide the leadership that others will hopefully follow. I believe that it has failed to do that in recent months with regard to Israel and Gaza.

My right hon. and learned Friend the Member for Northampton North cited a number of incidents, but I will highlight the case of the rocket that hit the hospital. It felt like the BBC could not wait to jump to the conclusion that it must have been Israel. It seemed almost disappointed when it came out that it clearly was not and it grudgingly had to admit that it had got its initial reports wrong.

That raises a number of serious concerns about what is going on at the BBC. I sometimes wonder whether it has a blind spot and is so blinded by its views about Israel that it cannot see how biased it is being in its reporting, or whether it is aware that it is being biased but just does not care. I am not quite sure which it is, but it has to be one of those two. The BBC seriously needs to assess what is going on and the way the conflict is being reported on its broadcast news media, because it has a role in shaping public views. Clearly, we have seen a rise in the number of antisemitic incidents taking place in recent months in this country and the shameful treatment of a number of members of our Jewish community across the country. It is difficult to come to any other conclusion than that, sadly, the BBC has contributed to that because it has presented Israel in such a poor light over recent months.

I am not saying that Israel is faultless and never gets anything wrong, but it feels like the BBC will report Hamas reports, statistics and numbers without any qualification, without any sense of caution that that information is coming from Hamas, yet when Israel reports something, it is highly qualified as though the BBC is saying, “It is Israel telling us this. Therefore we need to treat this cautiously.” I think that that is having an impact on the public’s view and on the public perception of what is happening. Sadly, that is feeding through into what we are seeing on our streets.

In the mid-term release on the BBC, assessing its charter responsibilities, the Secretary of State did lead on the issue of and concerns about impartiality. That leads me to believe that the Government perhaps share many of our concerns about the impartiality of the BBC, so I simply ask this in concluding: what further discussions are going on with the BBC to hold it to account and to its obligation to be impartial and to fulfil its public service obligation in reporting the news from Gaza and Israel?

15:07
Andrew Percy Portrait Andrew Percy (Brigg and Goole) (Con)
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It is a pleasure to serve under your chairmanship, Ms Bardell. I congratulate my right hon. and learned Friend the Member for Northampton North (Sir Michael Ellis) on securing this debate.

All reporting on this conflict should be done from the starting point of remembering that on one side we have a Jew-hating, gay-hating, misogynistic, terrorist death and rape cult, and on the other we have a democratic, liberal state with strong independent processes, which was attacked on 7 October. The fact that 77% of British Jews—remember that just 0.5% of the population of this country is Jewish—do not consider its coverage to be fair should be taken by the BBC as a cry of pain from the Jewish community, and it should take that very, very seriously.

My right hon. and learned Friend mentioned the director-general’s recent email. I ask the Minister to follow up with the director-general to ask what he is actually doing to respond to these examples of antisemitism in the BBC. In a debate a couple of months ago, I described the BBC as Israelophobic, and I think that the words that my right hon. and learned Friend used—about it having an institutional problem with antisemitism —are absolutely true. That is fuelling not only hate towards the Jewish population in this country; the way in which the BBC is presenting this conflict on television is also fuelling hate towards Members of Parliament.

Why do I say that? We have heard my right hon. and learned Friend talk about how the BBC continues to quote as fact casualty figures from Hamas—an organisation that has previously misrepresented casualty figures. Meanwhile, Israeli witnesses to the rape of Israeli women on 7 October had their story told on the BBC with the proviso that the BBC had been unable to verify those claims. That was not applied to Hamas, of course. The BBC has deliberately presented this conflict from the point of view of civilians in Gaza and contrasted that with the Israeli military or with Israeli politicians, including those at the most extreme ends of the Israeli Government, with whom all of us on the Government side of the House would have little to do and who, at the end of the day, have little impact on the positioning of the Israeli Government’s policies.

The BBC has chosen to subject viewers to an antisemitic “The Apprentice” participant. Even when it became aware of that, it offered him sensitivity training. I have written to the BBC numerous times asking who provided that training and what the specific content was on antisemitism, because none of the charities that deal with this and have expertise on this, such as the Antisemitism Policy Trust, were involved, and the BBC will not tell me.

As Hamas perpetrated its massacres on 7 October, the BBC aired an interview with Refaat Alareer, a lecturer at the Islamic University of Gaza, who described the attacks as “resistance” and “legitimate and moral”. A senior BBC broadcast journalist joked about a woman whose grandmother was abducted by Hamas as receiving an “inheritance”. On Christmas eve, the BBC reported unverified and false claims from Hamas that the Israel Defence Forces were carrying out summary executions—it had to apologise for that. Today we see an example of that with the coverage of civilians in Gaza. Of course, there is absolutely no doubt that civilians are suffering, but the coverage provided on the BBC today is not something that was given to members of Israeli society or to those victims. I would like to go on, but the speaking time in the debate is so limited that it is impossible to.

In my final few minutes, I will ask the Minister to do a couple of things. One is to ask the BBC for a full review of how its coverage of this conflict contrasts with others’, and the other is to ask whether the BBC plans to offer proper antisemitism training, provided by actual members of the community with expertise on the subject.

15:11
Adam Holloway Portrait Adam Holloway (Gravesham) (Con)
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I, too, am concerned about the BBC’s persistent failure to fulfil its legal obligation to be impartial. We saw this with Brexit. To give an example, News-watch, which is an independent monitoring organisation run by a former BBC producer, said that, on Europe, there were twice as many remainers as pro-Brexit speakers, with an even greater imbalance in the amount of time people had to speak, at 7:3, or nearly 9,000 words against 4,000 words. No wonder the political elites of this country were stunned by the result of the referendum—they did not see it coming.

Theresa Villiers Portrait Theresa Villiers
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The BBC, in its language about Brexit, was not impartial, as illustrated by it persistently describing leaving without a deal with the EU as a so-called cliff-edge Brexit. No one wanted that outcome, but the BBC should not have been portraying it as a potential disaster via the terminology it used.

Adam Holloway Portrait Adam Holloway
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I wish I had thought of that for my speech. The reality is that the BBC fails to impartially report the multiplicity of viewpoints in the UK. It prides itself on diversity, but it has a real lack of diversity of thought. There is an intellectual homogeneity, which means there is no real balance of opinion among its staff. There is no recognition among those who make the decisions at the BBC that a recruitment policy that broadened its culture would better serve licence fee payers and better reflect the BBC’s viewers and the wider country.

Today the stakes seem very much higher, as we heard in the superb speech by my right hon. and learned Friend the Member for Northampton North (Sir Michael Ellis). Given that the BBC has these huge resources made available to it via the licence fee, and given the heightened tensions here as a result of the crisis in the middle east, we thought it really could do a bit better. In 2021, colleagues and I wrote to the Prime Minister and urged him to consider directing Ofcom to deal directly with all impartiality events at the BBC, rather than letting the BBC do those itself in the first instance. Of course, that would need to be accompanied by some changes in Ofcom; to deal with complaints impartially and objectively, its contents board needs to change, because it seems to be stuffed with former BBC lifers. I also urge Ministers to consider requiring the BBC to set up an independent unit to monitor bias on an ongoing basis.

15:14
William Cash Portrait Sir William Cash (Stone) (Con)
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I would first like to refer to some figures from the past five years on the complaints made by licence fee payers—that is, taxpayers, 90-odd per cent of whom pay for the BBC. According to the figures, there were 1,935,179—nearly 2 million—audience complaints to the BBC from 2017 to 2023, of which only 3,692 progressed to the BBC executive complaints unit. Only 147 complaints were upheld or partially upheld by that unit, and only four of the 1,067 escalated to Ofcom were decided to be BBC breaches of the broadcasting code. It goes from 2 million complaints to four breaches upheld by Ofcom.

That tells us a great deal. Anyone with half a brain would realise that the rest of the 2 million complaints must have contained, and do contain—as people know from their common sense and personal experience—gross breaches of impartiality. I have been talking to Ministers about that for several years. To my great regret, the mid-term review was revealed to the public by a mere written ministerial statement, when it should have been done by an oral statement on the Floor of the House. I hope I have got that right, but that is my understanding.

Secondly, we need a proper, full debate. I pay tribute to my right hon. and learned Friend the Member for Northampton North (Sir Michael Ellis) for raising this issue, with particular emphasis on the Hamas-Israel situation. However, the problem goes very much deeper. It is an endemic, almost perpetual problem, to which there appears to be no answer. Great importance should therefore be attached to the need to propose or implement an effective and workable regulatory structure between the BBC and Ofcom, and to reform Ofcom’s role in the complaints framework.

An inadequate reform of the complaints framework has been going on, and particularly the intended roles of the BBC board and the editorial guidance and standards committee. Despite the Government’s recognition of the inadequacies of the BBC, there has been a failure to initiate an independent framework for handling complaints. Although we need a vital reform to facilitate the closer scrutiny of impartiality, with no reason specified that has unnecessarily been postponed until the next charter review in 2027.

A major omission of the review is a failure to define “impartiality”. The review actually claims that the task was too complex. I find that astonishing, particularly when one considers that the Oxford dictionary definition of “impartiality”, which is pretty standard stuff, insists quite clearly that

“official judgements and reports should be based on objective and relevant criteria, without bias or prejudice”.

All the evidence points in the other direction. The figures that I have given are absolutely astonishing, and it is a great failure for us not to have managed to get this right.

I pay tribute to this Minister, and to other Ministers who have participated in this process, but I have to say that it has not met the degree of performance for which we would have hoped. We were hoping for a mid-term review that would deal with the issue of impartiality, and I regret to say that this will need a bigger debate on the Floor of the House, with the Minister giving a full account and every Member having the opportunity, cross-party, to get this thing right once and for all.

15:19
Alec Shelbrooke Portrait Sir Alec Shelbrooke (Elmet and Rothwell) (Con)
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It is a pleasure to serve under your chairmanship, Ms Bardell. I congratulate my right hon. and learned Friend the Member for Northampton North (Sir Michael Ellis), whose opening speech covered such a wide area, with many vital points backed up by the evidence that his fine legal mind was always going to bring to this debate.

My Jewish constituents are bloody terrified now. It was bad enough leading up to the 2019 general election, when many of them felt that they would leave this country, but they had fairly good faith that the Labour party would not win that election. Now, they are truly terrified. I have heard my hon. Friend the Member for Brigg and Goole (Andrew Percy) say that he feels safer in Israel than on the streets of his own country. That is true for a great number of my constituents who, to make matters worse, are seeing an in-built bias in the BBC almost justifying those launching antisemitic attacks against my constituents.

Andrew Percy Portrait Andrew Percy
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My right hon. Friend is absolutely right. I did not get chance to say this because of the limited time, but will he consider the coverage today on the BBC? Once again, the picture being painted by the BBC is of suffering Gazans—who inevitably are suffering, of course—versus a well-armed Israeli military trying to deal with Hamas. There are no images of Hamas fighters or the hostages being held. It is this picture of civilians versus the Israeli military that gives a wholly false impression of the battle going on. There is a whole day of it today on the BBC, and all that will do is lead to more threats and abuse for Jewish people in this country. Nobody has been able to verify any of the information coming out, and we know that people cannot speak freely because Hamas control the message and control people. The coverage today is appalling.

Alec Shelbrooke Portrait Sir Alec Shelbrooke
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I am grateful to my hon. Friend. He brings to the debate a unique perspective on what is actually happening to the Jewish population in this country; it is more than I could hope to describe at this time.

There are several ways in which how terrible the Israelis are just creeps in, especially when listening to the radio, when we do not necessarily have the pictures. For example, “Israel have bombed a refugee camp”—most people believe that a refugee camp is an area full of tents and people who have been displaced and are suffering. These are historical refugee camps, with concrete buildings and towns that have been built around them. The laziness about going further and actually describing the situation adds to these issues.

The BBC is a very important institution in this country. There is always a role for public service broadcasting, but I hear so many of my constituents say that they hate the BBC. I would argue that what they hate is BBC News, not the BBC itself, but the reality is that the BBC’s bias is coming through in so many ways. Gary Lineker can say what he wants, but those who said that he could not say it and then did nothing about it are doing untold damage to the credibility of the BBC.

William Cash Portrait Sir William Cash
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Would my right hon. Friend like to lay a bet that these particular proceedings will not appear on “Today in Parliament” tomorrow morning?

Alec Shelbrooke Portrait Sir Alec Shelbrooke
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That is quite amusing. I was sat here wondering if we would actually make “Today in Parliament”; I think it may get a mention, but it will probably be quite well edited. The reality is that we live in a world where people are willing to be more militant. If the BBC does not grasp this problem and deal with it, people will stop paying their licence fee and damn the consequences. They can overwhelm it with social media, a bit like when the poll tax happened and it basically got dropped because no one was paying it. That is one of the issues for the BBC.

If we ask people, they say they listen to BBC Radio and football coverage a lot. A public service broadcaster has an important role in any country. When we have these debates, we must be careful not to give the impression that we want to abolish the BBC. What we all want is quality, independent, impartial news coverage that allows the public to get a view of what is actually happening in the world. There are plenty of television and news stations, especially in the advent of digital television, that will pander to people’s opinions if they want that. A public service broadcaster must always be above that.

I cast my mind back to when, on the “Today” programme, Amol Rajan was interviewing the Home Secretary, who told him

“if you’re just going to make a statement, I can go and get a cup of tea”.

I had never heard that on the “Today” programme. It is vital that some of the most hard-hitting questions should be put to politicians, and we should be able to answer them. I do not care how bad they are, as long as everybody gets the same toughness of interview and questions. But it is not up to journalists to sit there and make statements towards the politician they are interviewing; it is up to them to probe the policies they are running and where they are at. If that ends up embarrassing the politician, so be it, but it has to be equal across the board.

I have a great concern that what is happening at the BBC is undermining the entire institution. What potential conversations can the Minister have to ensure that those who are setting the rules to protect the impartiality of the BBC, but are doing absolutely nothing to enforce them, can be held to account? I believe that this institution is vital across the world and to this country, as long as it is doing what it is supposed to be doing, and, at the moment, it is not.

Hannah Bardell Portrait Hannah Bardell (in the Chair)
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I thank Members for their brevity. We come to the Front Benches earlier than expected, starting with the SNP spokesperson.

15:25
Kirsty Blackman Portrait Kirsty Blackman (Aberdeen North) (SNP)
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Thank you for your work in chairing today’s debate, Ms Bardell, and I congratulate the right hon. and learned Member for Northampton North (Sir Michael Ellis) on obtaining the debate. I will cover a few things, some of which have been covered and some of which have not been so much.

Public service broadcasting is incredibly important, and it is incredibly important that impartiality is measured and is there in the broadcasting. Many UK Government decisions have undermined the impartiality of the BBC, including the director-general being a former Tory candidate, and including a personal friend of Boris Johnson being made the chair of the BBC—a Tory donor who donated £400,000 to the party and lent £800,000 to Mr Johnson specifically. So there is an issue with impartiality—an issue with being seen to be impartial, as well as with potentially being impartial.

I have a BBC studio in my constituency that does local news in Aberdeen and has also been involved in some big events that have happened. For example, when the Queen passed away, it was the first on the scene reporting. I want to be clear to those people working in my constituency, and across the BBC, that we are not saying—nobody in this room, I think, is saying—that any of them individually are antisemitic, other than perhaps the ones that were mentioned by name. It is not—I do not think, from anyone—an attack on these individuals. I want to be clear that we value the work that they do and the fact that they do report in sometimes incredibly difficult conditions. Sometimes reporting is got wrong from every broadcaster; mistakes are made and they need to be as swiftly as possible rectified.

I want to be clear about the BBC’s position on what happened in relation to al-Ahli Hospital. It said that

“contrary to many reports—the BBC did not claim that the Israelis were responsible for the attack. We, along with many other…media organisations, reported initial claims by Palestinian officials and eye-witnesses…that this was an Israeli air strike…We attributed the claim to those making it.”

The BBC sought a response immediately from the IDF, and when

“the Israeli authorities countered those claims”,

the BBC “prominently and consistently” reported the position of the IDF. That is the BBC’s position. It may be an idea to watch back some of that coverage to see what exactly was said by the journalists at the time.

Andrew Percy Portrait Andrew Percy
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I like the hon. Lady and I hate to criticise her on this, but I think that that is not really credible. The BBC reported it, and I believe—I will check this—that it went out on push notifications. The fact remains that as a serious public broadcaster, on an issue as sensitive and as serious as this, the BBC should have applied independent verification to this story—as it demands and requires Israel to provide on claims—before it put that out and gave it such prominence. So I do not think that its response is really credible, with respect to the hon. Lady.

Kirsty Blackman Portrait Kirsty Blackman
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I just felt that this was the BBC’s position and I wanted that to be clear, because it does not have a voice in this debate right now.

Michael Ellis Portrait Sir Michael Ellis
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It may just help if I repeat the BBC’s breaking news Twitter account—the push notification to 51 million followers:

“Hundreds feared dead or injured in Israeli airstrike on hospital in Gaza, Palestinian officials say”.

Kirsty Blackman Portrait Kirsty Blackman
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Which, in that, is attributed to Palestinian officials, but absolutely—I think it is worth watching it back. But the BBC position is that it was very clear about that.

On the ideas around the bias or the lack of impartiality, apparently 36% of the public see the BBC as neutral; 15% see the BBC as pro-Palestine; and 17% see it as pro-Israel. There have been protests outside BBC studios throughout Scotland suggesting that the BBC is in fact too pro-Israel. Those protests have taken place outside a number of BBC studios in Scotland, including twice in Aberdeen. Any of those things are concerning and worrying for staff. People absolutely have a right to protest. Whichever the view of the protesters, the protests can be worrying for people who are perhaps not anywhere near reporting on either what is happening in Gaza or on any other sort of foreign affairs.

Andrew Percy Portrait Andrew Percy
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I am sorry to do this again, but I heard this when I met the BBC. I have had it said to me that, “Look, a lot of people think we are pro-Palestinian. A lot of people think we are pro-Israeli.” That is irrelevant. It is about the actual coverage; it does not matter what the perception is. That does not mean that there is not an issue here. I have so far not found a single example of a BBC journalist who has had to be dealt with, suspended or reported for making pro-Israeli statements on their social media accounts, whereas there are plenty that relate to this. The fact that there might be that perception does not alter the fact that there is an issue.

Kirsty Blackman Portrait Kirsty Blackman
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Actually, I do think the perception is important. It is also important that, as the hon. Gentleman said, 77% of Jewish people in the UK think that the BBC is biased. Having said all of that about the views of the general population, it is none the less incredibly important to listen to the communities who have a long history of persecution, particularly Jewish people. It is incredibly important to listen to those views and to understand that, if a community feels that the BBC is doing something wrong, it needs to take that incredibly seriously.

Michael Ellis Portrait Sir Michael Ellis
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The hon. Lady has been generous in giving way. I reiterate the point, which I am sure she will agree with, that it is very easy for people to make any sort of claim or counter-claim, but there needs to be some evidence. I like to think that in my speech I gave numerous evidenced examples. If people are going to say that there is evidence of BBC pro-Israel bias, they need to be able to cite some examples of that. I do not think they will be able to do that.

Kirsty Blackman Portrait Kirsty Blackman
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Given that I came to talk more generally about the impartiality of BBC news and I had few notes on the conflict in Gaza, I am afraid I do not have an answer. I am not here to defend the BBC. I just wanted to be clear on what its position was, particularly around that one incident that was mentioned.

I met representatives of the Union of Jewish Students in the wake of the beginning of the conflict. We spoke about what was happening at the University of Aberdeen and how safe or unsafe they felt on campus. They raised concerns with me about reporting, but the concerns that they raised were not specifically about the BBC; they were about reporting in general. It is very important for us to listen to those people who are saying, “We are being discriminated against” or “There is bias against us” because, as a non-Jewish person, I do not feel, see or hear all the undercurrents. It is not only we as parliamentarians who must listen to such views; the BBC must ensure that it listens to members of the community who are the experts in this when providing diversity training, as the hon. Member for Brigg and Goole (Andrew Percy) mentioned. I absolutely agree with his suggestion that the training should be carried out by those people who are genuine experts, such as Antisemitism Policy Trust. I will declare an interest. Members can look at my entry in the Register of Members’ Financial Interests in relation to that.

It is important to think about the regulation of the BBC. We recently had the first Media Bill in 20 years. It has been a long time since there was a change to the regulation of public service broadcasting in general. However, the BBC is governed by the charter and the agreement that comes alongside it. In some ways, Parliament is unable to take action on this; that is more in the remit of the UK Government. I ask the Minister, when she is looking at this, to look at some of the genuinely good work the BBC has done around increasing diversity—I have spoken to it about that in recent times—and to assess whether she, the Government, and the communities that are impacted feel that the 10-point plan and the impartiality and diversity training the BBC has put in place are sufficient, so that the BBC can be impartial, continue to be respected, and provide the public service broadcast that so many people rely on in order to get their news.

15:35
Stephanie Peacock Portrait Stephanie Peacock (Barnsley East) (Lab)
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It is a pleasure to serve under your chairship, Ms Bardell. I would like to begin by congratulating the right hon. and learned Member for Northampton North (Sir Michael Ellis) on securing this important debate. Impartiality has always been, and must remain, a crucial underpinning of the BBC. It is right that the BBC is operationally and editorially independent from Government, and that impartiality is embedded in its governance at every level. As a result, not only do eight out of 10 UK adults consume BBC news on average per week—double the next nearest provider—BBC news is unique in its ability to gain the trust of audiences in the UK regardless of their political persuasion.

As has been discussed in this debate—we have heard opinions from across the House, and indeed across the country, from East Londonderry, St Austell, Brigg and Goole, Gravesham, Stone, and Elmet and Rothwell—many are deeply concerned about the impartiality of coverage regarding the terrible events in Israel and Palestine, where over the past few months we have seen an intolerable loss of life and an unacceptable growing humanitarian disaster in Gaza. There has been some debate over the way the BBC chooses to use the word “terrorist”. To be absolutely clear, Hamas are terrorists, and proscribed as such in UK law. Hamas has committed brutal atrocities and I call it a terrorist organisation, as is only right. The BBC is responsible for its own editorial guidelines, and it is not for politicians to tell it what should and should not be included in them. However, I will use the word “terrorists”, and it will report that I did.

On the BBC’s coverage of the topic more broadly, concerns over impartiality have been raised by people of many different persuasions and backgrounds. A poll conducted by More in Common found that roughly equal numbers of people find the BBC’s coverage to be as pro-Israel as pro-Palestine. However, an even larger percentage of the 2,000 people polled said they felt that the public service broadcaster’s output on the conflict between Israel and Hamas had been mostly neutral. That is not to say that the BBC makes no mistakes, and when it does, it must work swiftly to rectify them. That is particularly important at a point where community tensions are high. The Community Security Trust, a charity that works to eradicate antisemitism, has reported a staggering 500% rise in antisemitism, and Tell MAMA, a project working to address anti-Muslim hatred, has reported over 2,000 Islamophobic incidents between 7 October and 7 February—more than triple the 600 reported during the same period the year before.

We must denounce hate crime in the strongest terms, and I expect to see a robust response to all incidents of hate associated with the conflict. I recently met the Community Security Trust, Stand Up! and Maccabi GB to discuss the worrying rise in antisemitism and Islamophobia and the work going on in communities to promote tolerance and integration. There is no place in Britain for antisemitism or Islamophobia, and all of our media outlets have a duty to report responsibly and accurately on both the conflict itself and the rise of hatred in this country. With that in mind, it is concerning that Jewish employees at the BBC have raised complaints about its coverage. The BBC says it has well-established and robust processes in place to handle any issues, concerns or complaints, so I would hope and expect that to be dealt with fairly and accordingly.

William Cash Portrait Sir William Cash
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Does the hon. Lady agree that although the word “racist” is often used in this context, much of it is actually to do with divisions of opinion on matters of religion, and that is very much at the heart of a lot of these problems? If she does not know that, does she recall that Gandhi himself, when asked what the most important question about politics or religion is, said that those who do not understand that politics is secondary to religion do not know what they are talking about?

Stephanie Peacock Portrait Stephanie Peacock
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I thank the hon. Gentleman for that point; he has certainly put it on the record. I would like to move on.

On the BBC’s record on impartiality and its complaints processes more broadly, it is timely that the Government’s mid-term review has finally been published, as it looked directly at those issues. Indeed, the review noted that the BBC has completed the implementation of its 10-point plan, following the Serota review, with measures including impartiality training for staff, internal content reviews and regular staff surveys on impartiality. Further to that, following the independent review by John Hardie in 2023, the mid-term review also notes the new social media guidance for BBC presenters who do not cover news, current affairs or factual journalism.

The Government also found in the review that BBC First delivers fair complaints decisions that withstand scrutiny from the regulator. In terms of improving that further, the review makes a number of recommendations, including external scrutiny of complaints, improving the visibility and clarity of the process, ensuring the quality and timeliness of responses, and giving greater transparency on decision making. It is important that action is taken to work on those, and that Ofcom looks at progress in those areas when it reviews BBC First before the charter renewal.

Like any institution, the BBC does not get everything right. It is, however, a cornerstone of our creative economy and an important part of our day-to-day lives. The BBC is an important national institution, and we believe we must secure its future as a universal, publicly owned, public service broadcaster, not least in a world where misinformation is rife and public interest journalism is becoming harder to access.

15:41
Julia Lopez Portrait The Minister for Media, Tourism and Creative Industries (Julia Lopez)
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It is a pleasure to serve under your chairmanship, Ms Bardell. I thank my right hon. and learned Friend the Member for Northampton North (Sir Michael Ellis) for securing an incredibly important debate on the impartiality of the BBC, and the Government’s role in upholding it. I am also grateful to every hon. Member who has contributed this afternoon, as well as the Opposition spokespeople, including the hon. Member for Barnsley East (Stephanie Peacock), whose contributions have been constructive.

I appreciate the important words that were said in relation to Hamas as a terrorist organisation, and a clear understanding that the Government have taken action, but will keep a lot of these matters under review. I think there is unanimity here that the BBC is an incredibly important organisation, the integrity of which we all fundamentally seek to uphold. That is why we are here today talking about this issue. There is a collective desire in this House to focus the BBC on its core purpose when it comes to news, to report on the world with a relentless dedication to facts and truth. That is the foundation on which trust is built.

Trust, in my opinion, is the BBC’s currency in a very complex, ever-changing world where regional events can ricochet with great consequence into the communities and neighbourhoods of the UK. Hon. Friends have spoken of that and given examples, and it causes me a great deal of concern, both for my constituents and for my Jewish and Muslim friends, who have received pretty horrifying attacks from the same source—Islamist fundamentalism.

That worries me deeply, and nobody in the UK wants to see that play out in our streets. We have a duty to try to lower the heat, and also to have difficult, complex arguments on this issue. That is why we all feel strongly about the BBC’s role in that. We have an implicit social contract that grants the BBC a unique place in national life, with an equally unique funding structure in the licence fee, because it is bound by duties that commit it to that truth-telling and the reflection of communities in every corner of the UK.

Having a public service broadcaster structured in such a way says something very important about our values as a society, where a commitment to freedom of expression and openness provides an increasingly stark contrast to jurisdictions where the truth is manipulated or suppressed, or focused only on stories of the powerful. We can see that in how conflicts are reported around the world in other countries.

Indeed, the first public purpose listed in its royal charter requires the BBC to provide duly accurate and impartial news and information. The impartiality of the BBC goes to the heart of the contract between the corporation and all the licence-fee payers it serves. The public rightly expect the BBC to be an exemplar of impartiality and accuracy, while allowing a range of opinions to be offered and debated.

Of course, the BBC is not there as an instrument of Government. Ministers seeking to interfere with editorial decisions or the day-to-day running of the organisation would be in nobody’s interests, in seeking to build the trust that is so fundamental to its core purpose.

William Cash Portrait Sir William Cash
- Hansard - - - Excerpts

Will the Minister commit to putting forward the idea that there should be a proper definition, along the lines of the Oxford dictionary, as I mentioned, so that we have a definition of impartiality in the charter, as well as the statement she has just made about it?

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

I am always happy to engage with my hon. Friend on those sorts of issues, which we have engaged on in relation to the mid-term review. I shall look into the particular issue he raises on the definition of impartiality, although I suspect that it is written down in some of the documents. It may not be in the charter itself, but we do talk to the BBC about this on a very regular basis.

As hon. Members will be aware, I tread a fine line here. I appreciate that there may be a desire from colleagues for me to go very far in sticking the boot into the BBC on certain issues. I want to ensure that I am always on the right side of that line, because I would not seek to undermine the trust that the BBC must put at the centre of its compact with the public.

By the same token, if concerns are expressed by citizens of this country, and by hon. Members on their behalf, about how the BBC is carrying out its duties to fair and impartial news, and the structures that hold it to account, then I think that requires a response. No organisation, particularly one of the BBC’s nature, should be exempt from scrutiny. If large numbers of citizens are questioning the legitimacy of the BBC’s funding model as a result, in a way that I fear might risk undermining the future sustainability of the organisation, then it is fundamentally in the interest of the BBC for there to be a response.

Alec Shelbrooke Portrait Sir Alec Shelbrooke
- Hansard - - - Excerpts

We often find the left screaming that the BBC is a Tory mouthpiece and the right screaming that the BBC is a left-wing mouthpiece—that is political opinion, and it probably means that it has got it roughly right. But there are indisputable facts that are black and white, as with the bombing of the hospital and the failure to verify sources. That is where the BBC is taking a wrong turn. That is what is fundamentally undermining the credibility of its impartiality. It is not the knockabout politics we have on particular issues; these are black and white facts.

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

That is the point that I am trying to make. We do not seek to interfere with the BBC editorially, but where there is a risk that trust and faith in the organisation will be undermined because of how it is being run, that should be of concern to the BBC, of concern to Ofcom and of concern to the Government.

Andrew Percy Portrait Andrew Percy
- Hansard - - - Excerpts

Further to the point from my right hon. Friend the Member for Elmet and Rothwell (Sir Alec Shelbrooke), I feel we are being trolled in this debate. Someone has just sent me a picture of the main banner running alongside the BBC News website at 3.39 pm today, which says:

“Gaza health ministry: 29,878 Palestinians killed”.

We are being trolled in this debate. There is no reference to that being Hamas’s figures. There is no reference to the fact that we know that thousands of those people who have been killed are Hamas operatives. These are the very issues we have raised today. My right hon. Friend is absolutely right that there are facts, and then there are opinions. It is a fact that these are Hamas’s figures, but they are not being presented as such. In this very debate in which we are calling this out, the BBC is trolling us. It is having a laugh.

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

As I say, I am trying to get the line correct between giving the BBC editorial independence and expressing concern.

In the mid-term review, we have tried to ensure that there is much greater power for the BBC board to conduct thematic reviews of complaints and to have much more independence from the editorial teams, so that if there is a clear pattern coming through in the nature of the complaints about the BBC’s reporting and editorial decision making, the BBC can look into it. That is a new innovation from the mid-term review.

I note that Samir Shah, the incoming chairman of the BBC, has made reference to the idea that there may be an opportunity to review how the BBC is reporting on foreign conflicts, to ensure that the corporation is getting it right. This goes to the fundamental currency of the BBC: it is a trusted organisation, but with that level of trust comes a much deeper level of responsibility. Hon. Members have spoken about how licence fee payers are paying for this content and therefore rightly expect certain standards to be adhered to.

A response is needed, not so that we can kick the organisation and its dedicated reporters, but so that the BBC can discharge its fundamental duties to be a beacon of trusted information in an era of water muddying, truth bending and industrial disinformation. That is precisely how we worked in the mid-term review. Halfway through the royal charter, the review was an opportunity to pause, examine and evaluate the effectiveness of the BBC’s governance and regulation. The review focused on a range of issues, including editorial standards and impartiality, and our recommendations were unambiguous about the fact that there is scope for material improvement across a variety of areas.

The review highlighted that impartiality continues to be a major challenge for the BBC. Audience perception that the BBC is not sufficiently impartial is an ongoing issue. Within a culture of continuous improvement, we think that more can be done. Following direct and constructive dialogue with the Government, the BBC is implementing major reforms, although perhaps not major enough for my hon. Friend the Member for Stone.

William Cash Portrait Sir William Cash
- Hansard - - - Excerpts

That would be true. Surely an improvement would be to have a test within a few months—a review of what has already been done under the new system that has been created. If that fails, the whole system fails.

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

My hon. Friend and I discussed the mid-term review and its findings just before it was launched, and I said to him that there is an opportunity to see how it is playing out, which will inform some of our discussions about charter renewal and future funding debates. A review of the funding model for the BBC is forthcoming. We will invite all hon. Members to engage with that review, which may be an opportunity for my hon. Friend’s views to be aired loudly and persistently.

Alec Shelbrooke Portrait Sir Alec Shelbrooke
- Hansard - - - Excerpts

I am grateful to the Minister for highlighting the fact that there will be a funding review, but how the BBC is funded is not the issue. The BBC has built a reputation as the trusted news source, and it is letting that reputation down. There will be a BBC no matter how it is funded, and people will turn to it. The problem now is that there is a bias being launched against Israel. That is a fact. The hon. Member for Barnsley East (Stephanie Peacock) talked about a survey in which people felt that it was balanced, but they are the ones receiving the news, not the ones involved in it. It does not come down to how the funding is put in place; it is about how we ensure that the BBC keeps its impartiality.

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

I was referring to the next staging posts down the line. My hon. Friend the Member for Stone suggested that the mid-term review was not meaty enough for his tastes, so I was simply encouraging him to engage in the next stages of the conversation. It is an incredibly important national conversation that will involve not just hon. Members, but the general public.

I have expressed to the director-general a concern that in public life we sometimes focus on the micro issues in relation to the BBC. I am not suggesting for one moment that this is one of those issues, but we get involved in regular tussles without asking fundamental questions about what we want the BBC to be going forward. That is something that I hold very close to my heart, because we are entering a very uncertain world in which misinformation and disinformation are being industrialised, and the BBC has an incredibly important role. It is in our interests as a nation, and as a western nation, to try to ensure that its future is safeguarded and that it maintains its public perception of trust and impartiality. I simply encourage hon. Members, in advance of the charter renewal process and in advance of discussions on the funding fee, to ask some of those big, searching questions about what we truly want the BBC to be.

Andrew Percy Portrait Andrew Percy
- Hansard - - - Excerpts

As we are on the topic of asking questions, will the Minister write to the director-general to ask him what his actual plan is to deal with the institutionalised antisemitism in the BBC, which I think he has acknowledged himself in his email to staff? Will she ask him what specific training was given to the antisemitic, racist star of “The Apprentice”—well, I will not call him a star, because he is not a star; he is just a nasty little racist—on content related to antisemitism, because the BBC will not tell me? Will she ask him whether the BBC has an editorial note on antisemitism within the newsroom and, if it does not, whether it will produce one?

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

I thank my hon. Friend for those searching questions. I have regular discussions with the director-general. Hon. Members regularly talk to me about their concerns relating to how the BBC is run, and I relay some of those concerns. We have open discussions when he comes to see me and vice versa. As my hon. Friend notes, an email has gone out to all staff within the BBC in relation to antisemitism. I will be happy to discuss his specific questions about training for the candidate for “The Apprentice” and the other issues in person with the director-general at our next meeting, if not before.

I have no doubt that somebody from the BBC will be listening to this debate and noting the concerns that have been expressed in this Chamber about how the organisation is run. It must be very difficult in BBC newsrooms when staff have concerns about other members of staff in relation to personal opinions on social media that have recently come to light. Again, it goes back to the fundamental interests of the organisation, which are to make sure that staff can work in the newsrooms with a drive towards the truth and without fear of intimidation from anybody else in that newsroom.

I return to the mid-term review. We worked very hard with the BBC and Ofcom to try to tackle the fundamental concerns that have been raised about impartiality. A new, legally binding responsibility on the BBC board will require it actively to oversee the BBC’s complaints process to assure audiences that their concerns are being fairly considered. I appreciate that many hon. Members in this Chamber wanted to move on from the BBC First complaints process. Again, that is an issue that will be considered in charter renewal. We will also be closely monitoring whether there is a substantial change in how complaints are handled as a result of the mid-term review changes.

We have recommended that Ofcom’s regulatory responsibilities be extended to the online content that the BBC produces. I believe that one hon. Member referred to a complaint about how an incident involving antisemitism on a bus in Oxford Street was reported. That was part of the BBC’s online material, and it is the kind of complaint that will be brought into scope because of the mid-term review.

William Cash Portrait Sir William Cash
- Hansard - - - Excerpts

Will the Minister be good enough to take into account the views of Baroness Deech KC, a Cross Bencher in the House of Lords who was a governor of the BBC? She wrote an important letter to The Times or The Daily Telegraph—it does not matter which—about the judgment of the BBC. Will the Minister look at Baroness Deech’s extremely interesting letter and speak to her about it?

Hannah Bardell Portrait Hannah Bardell (in the Chair)
- Hansard - - - Excerpts

Order. I have been generous in giving the Minister extra time to answer all the questions, but I hope she will afford the same consideration to the right hon. and learned Member for Northampton North (Sir Michael Ellis) and allow him to sum up.

Julia Lopez Portrait Julia Lopez
- Hansard - - - Excerpts

I shall look into the specific issue that my hon. Friend the Member for Stone raised.

As I say, the mid-term review is by definition a stepping stone. It takes us to charter review, which will be the time to ask many more fundamental questions of the BBC. I do not wish to take up any further time. I thank my right hon. and learned Friend the Member for Northampton North again for securing this debate.

15:57
Michael Ellis Portrait Sir Michael Ellis
- Hansard - - - Excerpts

I am grateful to you, Ms Bardell, and to Front-Bench and particularly Back-Bench colleagues.

The BBC is a treasured institution. We care about it and want it to prosper—that is why we are here—but it is failing. Ironically, as colleagues have mentioned, today the BBC is heavily pushing what it is calling its Gaza day. No one begrudges it that—that is what it is entitled to do—but has the BBC done an Israel day? If it purports to be neutral, it has to do both. Why not do an Israel day? If Uruguay and Paraguay were at war and the BBC did a Uruguay day, we would find it also doing a Paraguay day. Why not interview the victims, the injured, the Israeli families of the murdered of the pogrom or the hostages who have been released? Why not interview the heroes who saved civilians? If it purports to be neutral, it has to do both, so it is a highly topical example. It is suspicious, of course, because doing such an Israel day would be a lot easier to arrange and could perhaps have been done already.

Today the BBC is going some way to proving the case, but what makes the BBC institutionally antisemitic is not that there is bias or antisemitism within—sadly, there is a lot of that everywhere—but the fact that the management have not done what they should be doing about it. That is what makes it institutional. BBC employees suffering abuse from within, mistakes not being corrected, staff and so-called talent not being disciplined and erroneous reports not being corrected or being pushed out without responsible checking have inflamed community tensions here in the UK, fuelled the rise in antisemitism and harmed diplomatic efforts to end the violence.

To hold oneself out as neutral and to be biased is a form of corruption. The BBC can no longer be permitted to mark its own homework.

Question put and agreed to.

Resolved,

That this House has considered the Government’s role in upholding the impartiality of BBC news coverage.

Time Banking

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Westminster Hall
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16:00
Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP)
- Hansard - - - Excerpts

I beg to move,

That this House has considered the potential merits of Government support for timebanking.

It is a pleasure to serve under your chairship, Ms Bardell. I was reflecting ahead of the debate about where and how we find community and how that might have changed over the years. In recent decades, many of the traditional sites and sources of community have become fragmented or disappeared entirely. The changing nature of careers in the workplace, a decline in the membership of religious and community organisations, and people relocating more often have perhaps all played a role, among other factors. It is ironic that in an era dominated by online social networks and mass communication, for all the many undoubted benefits, we are grappling with issues of social isolation, loneliness and declining community cohesion.

Office for National Statistics data from March 2021 shows a 7.2% decrease since 2014-15 in those who agree that people in their local area are willing to help their neighbours, and an 8% fall in the proportion of people who believe that others in their neighbourhood can be trusted. According to the Campaign to End Loneliness, in 2022 nearly 50% of adults in the UK reported feeling lonely occasionally, sometimes, often or always. There are multiple reasons for these trends, and there is no one easy fix, but they clearly demonstrate that initiatives such as time banking are needed more than ever. I declare an interest as a long-serving member on the committee at Leith Time Bank.

Life has changed, and our friends and family do not always live nearby. It is not always easy to ask someone for help, especially if it brings with it a feeling that we cannot pay them back. Time banking is a fun, relaxed and informal way of enabling people to help each other and bringing out the best in us all. Time banking is essentially about neighbours being neighbours. It offers a slightly more formalised approach to creating and sustaining the bonds that have long been fixtures of our communities. It reaffirms the old adage that the most valuable thing a person can offer someone is their time.

We all have skills, knowledge and experience to offer that could be beneficial to someone. It could be gardening, sewing, simple repairs, language skills, running errands, tech skills or helping with shopping—whatever it might be. Time banking is a way for people to exchange their skills and experience. It is based on a simple premise: for every hour someone spends helping someone, they earn an hour back from their time bank. Everyone’s time is valued equally, whatever is being offered. Everyone is encouraged to spend their time credits to give others the chance to make a difference and feel valued.

Timebanking UK was founded in 2002, inspired by the growth of time banking in the US. Social activist Martin Simon opened the first bank in Stroud, four years after the concept was introduced to the UK by Fair Shares. Having visited Dr Edgar Cahn and witnessed the time dollars movement in America, Martin Simon was determined to bring that system to the UK. He began development work from an office at City Works in Gloucester, creating Britain’s first time bank.

Now, 22 years on, there are well over 100 time banks and around 25,000 time bank members across these isles, with an estimated 6.7 million hours of help exchanged. Timebanking UK helps communities to set up time banks by providing all the resources needed. It offers monthly training sessions and networking events, a software platform and start-up materials, as well as individual support, advice and guidance.

Time banks bring together people of different ages, cultures, backgrounds and abilities who interact with each other on an equal footing and with mutual respect and understanding.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- Hansard - - - Excerpts

I commend the hon. Lady for securing this debate; I cannot help but be enthralled by how she has presented her case for time banking. Does she agree that the old Bible truth “Do unto others as you would have them do unto you” is at the very core of the idea behind time banking? It allows all people to acknowledge their strengths, and to get help in return. Taking my speechwriter as an example, she says to me:

“These fingers are designed for typing”—

but there are others who are unable to manage that skill but would be able to provide tuition for a new skill. The ability to share should always be encouraged, as long as safety is paramount. We need to be assured, so I ask: is there a safety aspect to what is being put forward?

Deidre Brock Portrait Deidre Brock
- Hansard - - - Excerpts

Is the hon. Gentleman asking whether there is a safety aspect in terms of monitoring what happens to everyone?

Deidre Brock Portrait Deidre Brock
- Hansard - - - Excerpts

Yes, there certainly is, and I will explain a little bit about the set-up of time banks as I continue. The hon. Gentleman has got to the heart of what makes time banks work: mutual respect and the feeling of giving as well as receiving. He has hit the nail on the head.

To return to what I was saying, a time bank member is not a volunteer in the traditional sense; they must be prepared to receive from others as well as to give to others. It is that reciprocity that makes time banks unique. Timebanking UK’s case studies show that joining a time bank really can change people’s lives. Time bank members learn new skills, meet new people who are often from different backgrounds, report better self-esteem and self-confidence, and feel healthier—both mentally and physically.

After six months as a member of a time bank, 80% of participants felt a greater sense of community belonging, 74% had made new friends, 74% experienced improved mood or reduced depression, 69% felt more comfortable asking for or receiving help, 66% experienced decreased loneliness and 60% noted improvements in their quality of life, health and wellbeing. Despite its considerable success over the years, time banking has not been raised in the House of Commons since 2011, so a chance to pay tribute to the movement and identify opportunities to grow it is long overdue.

As I mentioned, I have been a long-time supporter of the Leith Time Bank, which is part of Timebanking UK and Timebanking Scotland and has been running for more than a decade. Leith Time Bank’s development worker Mary O’Connell, and Anne Munro, the manager of Leith’s wonderful Pilmeny Development Project, along with my committed fellow committee members who sustain Leith Time Bank, have been at the heart of its burgeoning success. Its primary focus is to support older people, carers and adults with chronic health conditions, but many other demographics are represented among its 200 members. The skills one can offer or ask for are as numerous, if not more so, than the number of members, and include gardening, sewing, cooking, form filling and helping with the shopping—the list goes on and on.

Leith in my constituency is a densely populated area, but folk do not always socialise locally, and particularly not across different groups and generations. Recent waves of gentrification can create tensions, but time banking has been remarkably effective at breaking down barriers and forging connections between old Leithers and new arrivals, forming friendships between people who might not otherwise have ever met.

Time banks thrive best at a local level where members can get to know one another. Leith Time Bank runs social activities to help to facilitate this, as well as activities such as a multicultural cooking group and home energy advice meetings. Every month it offers a programme of activities whereby members can get to know each other in a safe and comfortable environment, and they range from weekly language classes and culture group meet-ups to one-off events such as a gardening squad, through to attending football matches or museums.

At the height of the pandemic, communication with loved ones online was a godsend for many folk, but lockdowns also exacerbated the digital divide. Those without access to digital devices faced really increased social isolation. Leith Time Bank runs a project whereby people offer their digital skills, largely—although not necessarily completely—to support older people in learning about tech access, and they can then get something back in return.

Time banks also offer a lot of flexibility, which I know has worked well locally for students, those with irregular schedules or just folk juggling various commitments and responsibilities in busy lives who still want to put something into their local area. I mentioned Mary O’Connell from Leith Time Bank; I spent some time with her recently and she shared some examples of its positive impact. For instance, one of its members is an 80-year-old man who is visually impaired and lives alone, with no friends or family nearby. He earns credits by providing one-to-one Spanish and French lessons in a local café with other time bank members. In exchange, those members earn credits by accompanying him to medical appointments and social activities, or by providing practical help with day-to-day needs like shopping, as well as telephone and face-to-face chats.

Leith Time Bank also operates a community pot whereby people can donate credit virtually, and it can be used for those who cannot contribute, perhaps due to health issues. One gentleman wanted to see a film at the cinema but he was unable to travel there himself, so he used the community pot to find someone to buddy him for the film. Mary also told me about an older lady who had been receiving help through the community credit pot but felt she had no expertise to give back. During a group activity, she met young mums and realised that she did indeed have skills to offer as she was able to teach them all how to make soup.

Members have described time banks as a “lifeline”, spoken of how they have done wonders for their mental health, and reflected on the opportunity they give them to

“meet lots of interesting people with good values”,

and also, of course, to meet and befriend people from all sorts of different ethnic backgrounds. I have given small local examples, but there are many thousands more such interactions all across these isles. The Timebanking UK network has helped to create local mutual support structures that can work in tandem with statutory services as well. At a UK national level, it has worked on projects with organisations across the charity, public and private sectors, including the likes of Sport England, the National Lottery and Disability Rights UK.

I argue that expanding the time banking network further would have multiple benefits, and I urge the Minister to consider where the Government might be able to lend some support. Our ageing populations, the cost of living crisis and the challenges facing social care all make the case for time banking to play an enhanced role in our society. Timebanking UK proposes a three-year national programme to create multiple time banking networks, including a public awareness programme—part of the problem is that not many people are aware of time banking and its many benefits—and training in co-production for key members of the social care management and frontline workforce.

Additional funding would enable Timebanking UK to expand its operations and realise its vision of a time bank on every high street in every village, town and city, just as there are general practitioners and pharmacies. Under a social franchise model, Timebanking UK would set up delivery partnerships with stakeholders, including voluntary and support organisations, GPs, health centres and community groups.

Further support would also help Timebanking UK to implement a system for quality-effectiveness and to calculate the social return on investment. It would allow more detailed assessments of the impact of time banking for individuals and communities, and a focus on the amount that it saves for statutory services, as well as for the creation of an app for UK national interaction between participants and to engage the younger audience. To give a cost example, just £20,000 to £50,000 would enable the creation of complete start-up packs for 100 new time banks.

I strongly urge the Minister to check whether he has a time bank in or near his constituency, if he is not already in touch with one. I also thoroughly recommend that he consider meeting Timebanking UK—representatives of which are in the Public Gallery—to hear more about its proposals in detail.

I will conclude with a quote from Mary, that fantastic development worker at Leith Time Bank, which eloquently captures the essence of time banking:

“We think the reason Leith Timebank works so well is it offers opportunities for people of different ages, cultures and backgrounds to come together to share their skills, knowledge and experience with others. Everyone is valued equally, with everyone having something to offer and to receive. Timebanking is not just about exchanging services, it’s about building relationships—connecting with others in the community and creating a culture of mutual support and collaboration. This approach helps members and the community to connect, build resilience, and improve overall well-being.”

The value of time banking in fostering community cohesion and addressing social isolation is abundantly clear. Anything we can do to promote and expand the movement would be welcome. I very much look forward to hearing the Minister’s response.

16:16
Stuart Andrew Portrait The Parliamentary Under-Secretary of State for Culture, Media and Sport (Stuart Andrew)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairship, Ms Bardell. I thank the hon. Member for Edinburgh North and Leith (Deidre Brock) for securing this debate on the potential merits of Government support for time banking and for an insightful speech on the benefits that she has clearly witnessed herself.

For me, volunteering is vital to society. As a Government, we are strongly committed—and I am personally—to supporting volunteering in all its forms. I thank all volunteers who contribute their time and energy to support others. They make a real difference in their communities. Our latest figures show that about 25 million people in England had volunteered at least once in the previous 12 months. That is a huge number of people making a positive impact in their communities.

I was delighted to take part in the launch event for this year’s Big Help Out campaign, which will take place from 7 to 9 June. It will help to raise awareness of volunteering throughout the United Kingdom and will provide opportunities for people to experience volunteering, often for the first time. Without doubt, the British public’s enthusiasm for volunteering was evident in last year’s campaign, during the celebration of the coronation of His Majesty the King, with more than 6.5 million people volunteering on that day. I hope that we can see even more people take part this year. I am sure that hon. Members present will join me in supporting the campaign.

I am also grateful to all those who did so much during the pandemic. Many people in our country would not have had the help and support that they needed, were it not for amazing volunteers up and down the country. We must not forget, however, that quality volunteering requires effort and support, so I also take this opportunity to put on the record my thanks to the people who make volunteering happen and who work tirelessly for volunteers every day.

I am grateful to the hon. Member for Edinburgh North and Leith for highlighting the vital work that time banking plays in volunteering. As she rightly pointed out, recruitment and retention of volunteers is an increasing problem for charities, in particular the small local ones. The National Council for Voluntary Organisations’ “Time Well Spent” survey, which was funded by my Department, indicated that the primary barrier to volunteering among non-volunteers is not wanting to make an ongoing commitment. That is where offering incentives can be an excellent way to encourage people to try out volunteering. Who knows, they might then want to make an ongoing commitment.

As the hon. Lady mentioned, she has sat for more than seven years on the advisory group of Leith Time Bank in her constituency. Reading about some of its work, it is good to see that from its inception her work has helped to promote the time bank concept to a wider audience. I, too, read the story of the 80-year-old man who is visually impaired. It is fascinating to listen to his experience, providing one-to-one Spanish and French lessons in a local café, which is amazing. She also gave an example of someone who is clearly a master of making soup—maybe I should try some.

What the hon. Lady highlighted throughout her contribution was the true two-way nature of volunteering, and how it can bring communities together. That is why, in recognising the value of volunteer rewards schemes, the Department for Culture, Media and Sport has had a hand in supporting their development. Between 2017 and 2020, Tempo Time Credits received a DCMS grant to help it to scale up from its origins in Wales, to pilot three new hubs in England. As the hon. Lady said, volunteers involved in the time credits programme felt more involved in community activities, healthier and more socially connected.

Tempo has continued to do magnificent things, and now has more than 15,000 volunteers registered on its platforms. Similar initiatives have had equally significant impacts in other sectors, including the arts and the creative industries. In West Yorkshire, in my area, the Leeds Creative Timebank, established in 2010 with Arts Council England funding, has helped to create a thriving social economy for the arts across Leeds, by facilitating the exchange of information and support among its members.

There is no doubt that time banking can be fantastic for rewarding and recognising volunteers. It is truly striking to see how time banking can help to foster those social connections and help local communities and economies to thrive. Funding from the Government in that space has helped to test this innovative model.

I know that there are barriers still to overcome, to ensure that everyone who wants to can volunteer. We are committed to encouraging and enabling volunteering across the country, and to improving volunteering experiences. That includes supporting the next generation of volunteers and enabling them to create a lifelong habit of volunteering. Rewarding and recognising volunteers is a pivotal way to encourage more people to get involved and volunteer.

My Department works closely with No. 10 to co-ordinate the Points of Light awards, whereby the Prime Minister recognises outstanding individuals and volunteers who are making real changes in their communities, inspiring others. Those awards are an essential part of telling the story of the impact of volunteering across the UK. Beyond our work to recognise volunteers, we are providing funding, and working with an extensive range of partners, to ensure that there are clear entry points for volunteering.

Another key initiative is the Vision for Volunteering, which is a voluntary sector-led initiative to develop volunteering in England over the next 10 years. The Government supported the Vision from the outset, sitting on its advisory boards and lending support to voluntary organisations that are taking the work forward. One of the themes of the Vision is to increase equity and inclusion, ensuring that volunteering is accessible and welcoming to everyone, wherever they may be.

Last year, we announced the Know Your Neighbourhood fund, with a funding package of up to £30 million, including £10 million from the National Lottery Community Fund. That funding is widening participation in volunteering and tackling loneliness in 27 of the most disadvantaged areas of the country.

I am glad that the hon. Lady mentioned loneliness. I have the pleasure of being the Minister for loneliness, and I have seen how important volunteering is as a tool for making social connections and tackling loneliness in all the age groups that suffer from it. I have given a brief glimpse of the vast work that is going on to support volunteering; I am immensely proud of what we are doing to back volunteering and enable more people to benefit from activities.

I am really glad that we have had this debate, because we all share the same ambition to support volunteers to make a real difference in their communities. We will continue to test and support many ways to encourage and enable people to take part. It is heartening to see how time banking can successfully incentivise and reward volunteers. I thank everyone who is involved.

I extend an offer to meet, as the hon. Lady requested, because I am always interested to hear about innovative ways to get all our communities working together. Day in, day out, I see the value of people volunteering, whatever form their role may take. It is a crucial tool for getting communities working together, making social connections and breaking down the barriers to talking about loneliness. The stigma around loneliness is still one of the biggest issues we face. I would be more than happy to meet to discuss what can be done. I make the caveat that I do not have a great big pot of money at my disposal, but I am sure there are innovative things that we can think about to spread the gospel about how people can get involved in their community. I thank the hon. Lady sincerely for her debate.

Question put and agreed to.

16:26
Sitting suspended.

Tackling Obesity

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Westminster Hall
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[Peter Dowd in the Chair]
16:30
David Evennett Portrait Sir David Evennett (Bexleyheath and Crayford) (Con)
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I beg to move,

That this House has considered the matter of tackling obesity.

It is a pleasure to serve under your chairmanship this afternoon, Mr Dowd. I am incredibly grateful to be able to raise the important subject of tackling obesity, which I believe is vital to our country’s future. I am grateful to see colleagues here from both sides of the House, as tackling obesity requires a cross-party approach. I particularly welcome my right hon. Friend the Minister, who is also a personal friend. I have worked closely with her in the past, and I know how interested in and concerned about this issue she is.

Obesity is a major public health problem and a global concern. According to the World Health Organisation, worldwide obesity has nearly tripled since 1975. Most of the world’s population live in countries where issues associated with being overweight or obese kill more people than issues associated with being underweight, and 39 million children under the age of five were overweight or obese in 2020. These are quite shocking statistics. However, the problem is of particular concern in the United Kingdom, where we have the third highest obesity rates in Europe, behind only Malta and Turkey, and where we have the third highest in the G7, behind only Canada and the US. Almost one in three adults here is now classified as obese, a dramatic increase from the one in 10 adults in 1970. The increase in this country has been much greater than in other western European countries, such as France, Germany and Italy.

The health survey for England monitors trends in our national health and care. It found that a higher proportion of men than women were either overweight or obese—69%, compared with 59%. The highest rates of obesity were found among the lowest socioeconomic groups. Almost 70% of people in the most deprived quintile of English localities are classed as living with obesity or being overweight, compared with 59% of those in the richest.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I commend the right hon. Gentleman on securing this debate and apologise to him in advance: but for an AGM that I am attending at five o’clock, I would have participated in the whole debate.

According to the Department of Health back home, 65% of adults in Northern Ireland are obese, which is quite a shocking figure. There are now plans for a consultation, which highlights the need to make healthier food more affordable. Does the right hon. Gentleman agree that this must be a priority for every region of this great United Kingdom of Great Britain and Northern Ireland, and that that must be done in partnership with our own agrifood sector? It has a role to play—maybe a financial role, as much as a role in guidance. When it comes to the Minister’s reply, does the right hon. Gentleman agree that partnership with the Department for Environment Food and Rural Affairs might be advantageous?

David Evennett Portrait Sir David Evennett
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I am grateful to the hon. Gentleman for giving us that information from Northern Ireland. Of course, this is something that we need to work on across all four of our countries that make up the United Kingdom. I am sure that co-operation is the best way forward.

Behind these statistics are real people—our people, not just statistics: parents, grandparents, children, friends and neighbours. Overweight people are more likely to experience other health issues as a result of excess weight. There are real consequences, too, for the quality of life of our people. People who are obese are seven times more likely to develop type 2 diabetes. Some 11% of obese adults reported in the health survey for England that they had a diagnosis of diabetes from a doctor. The figure was less than half that among overweight adults, at 5%, and it was just 3% among those who were neither overweight nor obese.

People with obesity are two to three times more likely to have high blood pressure and other consequential health issues. Obesity is a risk factor for depression and is associated with social isolation and less physical activity, contributing to an increased risk of dementia. Obesity between the ages of 35 and 65 can actually increase dementia risk in later life by some 30%. Of course, excess weight puts strain on joints, increasing the risk of musculoskeletal conditions. Other health problems from excess weight include cardiovascular disease, liver disease and many common cancers. Obesity is actually the second biggest preventable cause of cancer.

As well as the costs to individuals’ health and wellbeing, there is the real cost to the economy, businesses, jobs and communities. The Times reported yesterday that 60 senior health experts—including the heads of the Royal College of Physicians, the Royal College of Anaesthetists, the Royal College of Midwives and the Royal Society for Public Health, and dozens of health charities—have written to my right hon. Friend the Chancellor of the Exchequer, urging him to put tackling obesity and other public health issues at the heart of his Budget next month, for the sake of the economy. The plea is not just about healthcare, but about the economic vitality and future of our country. That coalition of doctors, scientists, charity bosses and food campaigners say that

“poor health is one of the greatest…threats”

facing Britain today and warn that it is damaging the economy in ways ranging from

“the size and strength of our labour market; to productivity; to growth and GDP.”

They also say that

“the vast majority of health conditions contributing to…economic problems are driven by poor diets, alcohol and tobacco.”

They cite the work of the independent Times Health Commission, a year-long inquiry that called for stronger Government intervention to tackle the growing obesity crisis and that recommended a number of interventions to combat obesity, including expansion of the sugar tax, curbs on cartoons on packaging and a pre-watershed ban on junk food advertising on television. The experts urge the Chancellor to issue a formal call for evidence on

“financial and non-financial health policy options that…make it easier for everyone to lead healthy lives—by shaping the environments they grow, learn, work and play in.”

They conclude by advising:

“The public overwhelmingly believe the government should have a stronger role in acting to create healthy lives and to take pressure off the NHS.”

The Times editorial of yesterday, under the heading “Body Politic”, gives a convincing account of the issues and the need for action. It also notes that merely increasing taxes on already hard-pressed consumers is not the way forward; we should be encouraging the switch to healthier products. I agree with that assessment and find it increasingly worrying that Frontier Economics estimates that in 2023 the total economic impact of obesity was £98 billion, accounting for the costs to the NHS and social care, lost productivity, work inactivity and welfare payments.

Obesity-related ill health does reduce workforce productivity. People living with obesity are estimated to have four extra sick days a year. That is approximately equivalent to an extra 37 million sick days across the UK working population. Estimates put the annual cost of obesity at 1% to 2% of GDP. With obesity rates continuing to soar, that is only likely to increase. Obesity places a heavy burden on the NHS. It contributes to high workloads in GP surgeries, hospitals and social care, adding to the pressures that we are already experiencing.

Tackling obesity has actually been on the political agenda for many years. In 1991, the then Conservative Government recognised that obesity was a sufficient threat to the health of the nation to warrant specific action. The first target for reducing obesity rates in England was set and was to achieve a return by 2005 to the 1980 level of 7%. Sadly, that target was missed. Over the last three decades, there have been various strategies, countless policies and many reforms, with key agencies and teams created and abolished. Despite that, and as highlighted in the statistics that I have mentioned, the issue is still very prevalent.

In my own borough of Bexley, the issue of obesity is one where, statistically, we are performing relatively badly—unlike in other areas, where Bexley performs extremely well. Last month, Bexley was dubbed the fattest borough in south-east London, after the Office for Health Improvement and Disparities published information on the percentage of adults over 18 who are classified as obese. According to the report, Bexley has the worst obesity rate in south-east London at 28% of the population, yet in recent years we have been successful in my area on health issues. The stop smoking campaign was a great success, and I was privileged to be involved in it. The number of smokers in our borough has considerably reduced because of campaigns by the NHS and the council, as well as people like me adding to those campaigns.

We have real issues with childhood obesity, and Bexley council has endeavoured to be proactive in improving the health of people across the borough, as well as implementing an obesity strategy in 2020. Despite that, childhood obesity rates in Bexley have worsened following the coronavirus pandemic. Figures by NHS Digital show that 745 of 3,095 year 6 pupils measured in Bexley were classed as obese or severely obese in 2022-23. Across England, 13.9% of year 6 pupils were overweight and a staggering 22.7% were obese or severely obese. That was slightly down on the previous year, but still higher than pre-pandemic figures.

That is extremely worrying, and childhood obesity is a major public health concern in its own right. Children who are obese are five times more likely to become obese as adults, and that puts them at higher risk of the conditions previously highlighted, as well as shortening their life expectancy. As the majority of obese children will remain obese as adults, early intervention is essential. We have to act early in their lives before they suffer complications later on due to something that was avoidable.

The Government have taken some action on childhood obesity. In 2018, they set a target of halving childhood obesity in England by 2030 and reducing the gap in obesity between children from the most and least deprived areas. While it is necessary, meeting that target unfortunately does not seem possible at this time. Despite all the health problems, the impact on lives and the cost to the economy, we must remember that obesity is preventable in many cases. Action is required by individuals, parents, schools, the Government, media and the food and drink manufacturers.

What can and should be done? Basically, as a nation, we are simply consuming too many calories each day. According to Public Health England, many adults consume an extra 200 to 300 calories a day over what they need, while children who are overweight or obese often consume an additional 500 calories a day. The NHS needs to do more, as public health improvement will ease the pressures on GPs and hospitals.

Of course, there needs to be an emphasis on the individual in tackling obesity. At an individual level, people can limit their energy intake from fats and sugars, increase their consumption of healthy food, particularly fruit and vegetables, and engage in regular physical activity. People who are overweight or obese may also benefit from joining a local weight loss group, or even from receiving support and counselling from trained healthcare professionals to help them to better their relationship with food and develop different eating habits. More publicity, promotion and education on food, nutrition and the consequences of a bad diet are absolutely essential.

Although that is important, tackling obesity is not just about individual effort; we need to see cultural and environmental changes too, while ensuring that everybody is given the necessary information to make healthy choices. Because of our fast-paced lives, our eating habits have changed in recent decades. There is a huge increase in people eating fast food, and more people are eating out, eating higher-calorie foods and buying hot food from takeaways that is high in fat, salt and often sugar. While it is good to see businesses thriving, it is incredibly worrying that some are exacerbating the problem and increasing the sugar and calorie intake of our nation. Treats are fine, and we should not be Job’s comforter on these sorts of things, but they should be for special occasions, rather than the mainstay of an individual’s diet.

Our food environment affects our behaviour and has a significant part to play in reducing obesity. Parents are crucial in this as the primary educators, and education is vital. It can be difficult to make healthy choices if someone is blissfully unaware of the content of the food they are eating. I know from personal experience that, when we do the weekly shop, identifying the healthiest products is not always easy. That is why we have to ensure the labelling of products in shops, cafés, restaurants, coffee shops, fast-food outlets and the rest, so that individuals can make an informed choice. Essentially, the healthy option should also be the easier option on the menus for everyone. Research shows that when Governments act on this issue, they have a positive effect. Our own Government have done excellent work in this area. The voluntary traffic-light scheme, which was introduced jointly by the UK Government and devolved Administrations in 2013, has been incredibly successful. Restrictions on the placement of unhealthy foods in supermarkets and shops have been hugely popular, and they stop shops using children and pester power to hassle adults into buying those items. The soft drinks industry levy has had an impact by encouraging reformulation and decreasing the volume of sugar in soft drinks.

However, more needs to be done, and advertising on television is still a real concern. Restrictions before 9 o’clock are due to come into effect in October 2025, having been originally planned for 1 January 2023. That delay is disappointing but understandable. These actions need to be taken, and I know that my right hon. Friend the Minister will take them on board in the dynamic way that she does in her role.

In conclusion, serious action is needed, and tackling the obesity epidemic is a responsibility for all of us—the Government, schools, families, industry, and politicians—whether local, regional, national or whatever. Everyone has a part to play. It is also something that I think we can unite on across this House, because it is an issue that affects everyone’s constituents and every person in the country. I know that the Opposition and Government would want to work together with the Scottish nationalists, and others in the Chamber, to ensure that we do this. If we do not, it will cost our NHS billions of pounds a year and have a huge detrimental economic impact. Most importantly of all, it affects our constituents, and particularly our children.

With strategic policy interventions, we have an opportunity to turn the tide against obesity, improve our nations’ health, enhance people’s quality of life, prevent needless early deaths and secure the economic future of our nation. I hope that my right hon. Friend the Minister will carefully consider what I have said, and that colleagues on both sides of the House will endorse the fact that action is required.

16:48
Sarah Dyke Portrait Sarah Dyke (Somerton and Frome) (LD)
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It is a pleasure to serve under your chairship this afternoon, Mr Dowd. I congratulate the right hon. Member for Bexleyheath and Crayford (Sir David Evennett) on securing this important debate. Whenever possible, I like to talk about the accomplishments of my constituents. One constituent of mine made an outstanding contribution to tackling obesity eight years ago, and I am glad that the hon. Member has recognised their efforts, because that constituent is the former Chancellor, who introduced the soft drinks levy in 2016.

That policy has meant a 46% fall in average sugar levels per soft drink product since 2015. Sales have not been affected; actually, they have increased by 14.9% over 4 years. That levy has been a remarkable success. The Medical Research Council estimates that it has prevented about 5,000 cases of obesity in year 6 girls, and 5,500 hospital admissions for children with tooth decay within five years. This is unambiguous and indisputable. Interventionist health policies are the only way to solve our obesity crisis, because the food system in this country is rigged against us.

This is not just a crisis. In Somerset, 34.6% of children leave primary school overweight or obese, but 21.8% of five-year-old children start primary school overweight or obese. In 2021, 60% of adults in Somerset were overweight or obese. We should be one of the healthiest countries in the world—we have an NHS that covers every citizen, a mild climate and a high level of economic development—but we are not. Thirty years of failed Government obesity policies tell us that we must change. A University of Cambridge team analysed 30 years of Government obesity policies in England—14 obesity strategies with 689 individual actions. Eight per cent fulfilled seven criteria identified by researchers as necessary for successful implementation, and 29% did not meet a single criterion.

We have tried blaming the individual, and it has not worked. It is not just remiss; it is wrong. The charity Beat reported that

“strategies harmful to people with eating disorders appear…to be ineffective at reducing obesity.”

By refusing to change the system and telling people that they are to blame, we are killing people who are already vulnerable, and there is a consensus. Polling last September from the Food, Farming and Countryside Commission and More in Common showed that 77% of participants wanted Government to put health standards over cost, and 67% thought that the Government were not doing enough to safeguard children against unhealthy food and drinks. The status quo simply cannot continue. Our farmers are underpaid, undervalued and underused in a food system that does not prioritise healthy local food of high standard. Small and medium UK agrifood businesses cannot compete with cheap, ultra-processed food. Our NHS staff are so overwhelmed in dealing with the results of obesity that they have little time or budget to deal with the causes.

We Liberal Democrats want a robust, thorough obesity and food strategy that meets all seven standards specified by Cambridge. We want junk food advertising restricted on TV and online, as the right hon. Member for Bexleyheath and Crayford has mentioned. We want public sector food procurement strategies that benefit the farmers and local businesses producing the food. We want to extend the “polluter pays” principle that we have for water companies. We want to make junk food giants either change their ways or pay their way.

As a serving Somerset councillor, I know how vital it is to empower local authorities to develop and manage tailored strategies in their areas. We should give local authorities more power over planning to prevent high streets being clogged up with cheap fast food outlets, and to restrict junk food advertising. Let them develop food partnerships with farmers and agrifood businesses. We must have a new, interventionist approach to our food system. All other approaches have failed. It makes economic sense, environmental sense and moral sense. Let us make a better food future.

Peter Dowd Portrait Peter Dowd (in the Chair)
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I am going to give Members five minutes each. The Opposition spokespersons will have five, and the Minister will have ten.

16:53
Andrew Selous Portrait Andrew Selous (South West Bedfordshire) (Con)
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I congratulate my right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett), and I agree with pretty much everything that the hon. Member for Somerton and Frome (Sarah Dyke) has just said as well. In July 2020, the House of Lords produced an excellent Select Committee report, “Hungry for change: fixing the failures in food”, which is pretty shocking. We are one of the most overweight nations in Europe, and that is not an accident, because our diet is pretty appalling. Page 19 of that report says:

“In the UK, more than half (50.7%) of all total dietary energy from purchases came from highly processed foods, compared to only 10.2% in Portugal and 13.4% in Italy.”

Our diets are so much worse than those of our fellow European nations. We are bombarded with advertising for unhealthy food. In 2017, £300 million was spent on the advertising of less healthy foods, compared with only £16 million a day on fruit and vegetables. We are doing really badly at even getting our five portions of fruit and vegetables a day. Only 31% of adults, and only 8% of teenagers, are achieving that; parents in the room will recognise that challenge.

All these figures are worst for the poorest members of our society. I commend The Times on its excellent health commission report and on some of its recommendations. It thinks it is outrageous that some of these highly processed foods can have “natural” and “organic” on the front of the packaging. That is deceptive and misleading, and many of the big food producers have a lot to answer for. The Times says that all children should learn to cook properly and that those lessons should be inspected by Ofsted with as much rigour as maths and English. This matters. If people turn up to university able only to open a packet and put it in the microwave, they are probably not set for the most healthy life and it will probably cost them more as well.

Children are bombarded with these images. Bite Back, with which I have worked very closely, wants to get rid of the use of cartoon characters and other tactics that appeal to children, which hook our young people into unhealthy food. The Times also says that we should not have just environmental, social and governance for our businesses; it should be environmental, social, governance and health because employers can do their bit as well.

How do we know how many calories we are eating each day? I, as a man, am supposed to eat no more than 2,500 calories a day. For women, it is 2,000. How do we know? The signs in some of the restaurants are tiny. Let us make it easy for people to do the right thing. That is a generally quite a good strapline: make the right thing the easy and affordable thing to do. I salute my local markets in Leighton Buzzard, Dunstable and Houghton Regis, which provide fresh fruit and veg and often at very good prices; I have to say that my supermarkets do so as well. We all know that exercise is important, but I have a little caveat on that: you cannot outrun a bad diet, but exercise is always brilliant for all of us and we should all do more of it.

It was great to hear the speech from the Liberal Democrats because this is not a nanny state, entirely private matter. This is why: children don’t get to choose what they eat. They get fed what their parents give them; what we feed our children really matters. We have to be honest; there is limited supply in the NHS for all of us, so if other people eat really bad food, that means that NHS capacity is being taken up with dealing with type 2 diabetes, cancer, heart problems and other issues. We all have a stake in us all eating well, and I hope we can combine on that issue.

16:58
Fleur Anderson Portrait Fleur Anderson (Putney) (Lab)
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It is a pleasure to serve under your chairmanship, Mr Dowd. I congratulate the right hon. Member for Bexleyheath and Crayford (Sir David Evennett) on securing this important debate. As he said, it affects all MPs because it affects all our constituencies. It affects families across the country.

I am here because I recently visited Putneymead Group Medical Practice in my constituency. It is a really large surgery, which serves 25,500 people and employs 23 GPs. They know what they are talking about; it is an excellent facility. I asked the doctors what the main issues were they were facing, and they said that the main issue was childhood obesity. They were worried that the current state of the NHS meant that it was unable to provide services to combat childhood obesity, and they were also worried about the lack of services for primary school children. Early intervention is very important in tackling childhood obesity, but they were also concerned about secondary education. They mentioned Wandsworth Borough Council provision for primary school children, but that ends at year 6. In secondary school, there is even less provision and support for tackling obesity, and they identified that as a key issue.

Today, two in every five children in England are overweight or obese by the time they finish primary school. That has lasting consequences for their physical and mental health and for their quality of life. The national child measurement programme found that in 2021-22, 10% of reception-age children in England were obese. The proportions were higher among year 6 children, with 23.4% being obese. Something is going wrong in our provision and support programmes for primary school children.

Childhood obesity is a significant concern in my borough of Wandsworth, where more than one fifth of children in reception are overweight or living with obesity. In year 6, that figure rises to 37.7%, which is higher than in the rest of the country. Wandsworth Council has several programmes to tackle the issue. The Health4Life team runs the Mums, Minis and KickStart programmes for primary school-age children and their families. The children’s school food strategy and the campaign targeting takeaways near secondary schools are also having an impact, but that needs to be amplified and supported by having the same programmes across the country. As I said, this support needs to be maintained and to continue through secondary education, as well as through primary. In the United Kingdom, the prevalence of obesity among year 10 children is still 23.4%, so one in four children are still classified as obese—in London, the figure is still 37.4%.

It is essential to continue promoting healthy lifestyles, but there are also significant infrastructure issues. There is an issue around planning and having shops with healthy produce in the right places so that they are easier to access for people who do not have the same transport options as others. We also need to tackle takeaways near secondary schools, which Wandsworth Council is starting to do, and there are elements of good practice that can be learned. In addition, we need to tackle inactivity in schools. Many playing fields have been sold off, which has reduced access to physical education classes in school. I have seen that with my own children, who have gone through secondary school with significantly less access to PE lessons than I had when I was going through school.

There is also the issue of healthy eating and teaching cookery. I pay tribute to a great community organisation in my constituency called Bags of Taste, which teaches people how to eat better for less. It has a really high take-up, and people really enjoy making the kind of food they would get from a takeaway but can cook for less money in their own homes. That is to be applauded and supported.

There could also be much more action taken by supermarkets, and action on advertising unhealthy food. Another excellent programme that I have seen really working, but that is not taken up comprehensively enough, is the Daily Mile. Having started off with a school in Stirling in Scotland, it has been taken up by many primary schools around the country. It is tackling this issue and making a difference.

To conclude, Labour will tackle childhood obesity through a range of measures, including by implementing the 9 pm watershed for junk food advertising, getting kids moving through a mandatory national curriculum with a wider range of physical activities, providing free breakfast clubs in every primary school and taking action to end the promotion of junk foods targeted at children. We will take action. The current obesity figures are a damning indictment of 14 years of Tory rule that have not worked. It is time for Labour.

17:03
Maggie Throup Portrait Maggie Throup (Erewash) (Con)
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It is a pleasure to serve under your chairmanship, Mr Dowd. I congratulate my right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett) on securing this debate. Tackling obesity is preventing ill health; I want to make it very clear that it is not nanny state, because good health provides choices.

We are already looking at these issues through the way we are tackling smoking, and I commend my right hon. Friend the Minister for her proposed actions on that. Smoking is an addiction, and obesity is becoming an addiction—an addiction to food high in fat, salt or sugar. We need similar, world-leading action to tackle obesity. The Obesity Health Alliance has said that obesity is the new smoking.

We have already heard that 30% of adults are obese, and 25% of children starting school are either obese or overweight, so we need to take serious action. The food giants are making us addicted to food that is high in fat, salt and sugar, so we need to tackle that in the same way we are tackling smoking.

Obesity causes cardiovascular disease, type 2 diabetes, cancer and non-alcoholic fatty liver disease. The reason the food giants are spending huge amounts on advertising chocolate, crisps, biscuits and ice cream—much of which is marketed at children—is that those products make them huge amounts of profit. I am not against profit, but I am when it comes at the expense of people’s health, and particularly the health of our children.

A recent study by the University of Oxford shows that, for seven of the top 10 global food manufacturers, two thirds of their food and drink sales in Britain came from unhealthy foods. In 2022, it was estimated that the biggest manufacturers spent £55 million on online adverts for food and drink products associated with childhood obesity. I have no doubt that that did not decrease in 2023, and I do not think it will decrease this year either.

In addition to the marketing, the packaging of unhealthy food is designed to appeal to children, as my hon. Friend the Member for South West Bedfordshire (Andrew Selous) implied. In a way, the issue is similar to the way disposable vapes are marketed to children. That is another issue my right hon. Friend the Minister is tackling, but we need to sort out the way unhealthy foods are marketed to children too. Children and young people do not ask to be bombarded with the ads they see time and time again, yet they are being bombarded—they cannot escape them at all. That is why Government action is needed, and needed now. I ask my right hon. Friend the Minister to update the House on the progress being made to implement the measures in section 172 of, and schedule 18 to, the Health and Care Act 2022 on the advertising of less healthy food and drink and to ensure that we are on schedule to deliver those messages.

Going back a number of years, as the hon. Member for Somerton and Frome (Sarah Dyke) mentioned, the then Chancellor of the Exchequer introduced the soft drinks industry levy. People at the time said it would not work, but it has; it has cut huge amounts of sugar out of soft drinks across the board. We need to look at how we replicate that measure for other foodstuffs. I am proud that I was a member of the Health and Social Care Committee when it asked for it to be put in place. It is one of the Committee’s great achievements, and we can do even more. We need to apply that type of measure across food and drink production to incentivise healthier food and drink. Manufacturers and retailers want a level playing field, so it is important that we do that.

In conclusion, we need to tackle obesity, which the Government first identified as a priority in the early 1990s in the “Health of the Nation” White Paper. Over 30 years on, we are still only talking about tackling obesity. The health of our nation is running out of time. We need action, and we need it now.

17:08
Amy Callaghan Portrait Amy Callaghan (East Dunbartonshire) (SNP)
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It is a pleasure to serve under your chairship, Mr Dowd. I congratulate the right hon. Member for Bexleyheath and Crayford (Sir David Evennett) on securing this debate. In the context of the ongoing Tory cost of living crisis and an increasingly unhealthy population, it is important that it takes place, so I welcome his bringing it to the Chamber. Huge financial pressure and high food prices are forcing families to eat less healthily, getting cheaper calories from unhealthy foods. There is a clear link between deprivation and obesity, which is why tackling health inequalities and poverty are top priorities for the SNP Scottish Government.

We have heard lots of interesting contributions. The right hon. Member for Bexleyheath and Crayford touched on junk food advertising, and I discussed that exact issue with the University of Glasgow earlier this afternoon. We need to be incredibly mindful of where, what and when we are advertising; otherwise, we will have an often detrimental impact on health inequalities.

The hon. Member for Somerton and Frome (Sarah Dyke) spoke a great deal about child obesity, which I will come on to. I very much agree with her on that point, but I would welcome an intervention from her on how the Liberal Democrat party’s abandonment of free tuition is impacting household budgets, and thus people’s ability to access healthy foods.

It was hugely welcome that the hon. Member for Putney (Fleur Anderson) mentioned the Daily Mile, which originated in Stirling. It was nice to hear a non-Scottish Member cast light on a project that originated in Scotland, so I certainly welcome that comment.

Obesity is a problem that is escalating on a global scale, but sadly the effects are being felt severely in Scotland. According to a survey, 67% of adults are deemed overweight and a third of children are at risk of becoming overweight. That same survey found that obesity was more common in households with lower incomes—a correlation we know and recognise all too well. That is why I and my SNP colleagues are consistently calling on the UK Government to take action to tackle the cost of living crisis, improve universal credit and reverse their policies that deny families crucial support.

The Scottish Government do not have the levers to be able to do those things at the moment. They therefore mitigate the bad political decisions made in this place, reducing family household costs by providing free prescriptions, free school meals, free childcare, free period products, free university education and free bus travel for those under 22 and over 60; freezing council tax; providing the young carer grant, the Scottish child payment, and both adult and child disability payments; and mitigating the bedroom tax, the rape clause, the benefits cap and real-terms cuts to social security.

Earlier today I met Professor Iain McInnes of the University of Glasgow, whose project, “Creating Healthier Places: A Place-Based Approach to Research & Partnership”, factors access to healthy foods into its research on 20-minute neighbourhoods. It is a fascinating project, and I urge the Minister to have a look at it—I think she would be just as impressed as I am.

Through the best start grant and best start foods applications, the Scottish Government have also provided over £180 million to low-income families to help with expenses during their children’s early years. The eligibility for best start foods will be expanding so that a further 20,000 people can access support to buy healthy food. Such steps are essential to ensure that support is there for the least well-off families to be able to make healthy food choices.

In my constituency, new data from Cancer Research has shown that 22.5% of four to five-year-olds are overweight or obese—that is four to five-year-olds who are already increasing their risk of serious illnesses. That is not a choice by those children or their parents, but a symptom of families not having the resources to provide healthy options. It is a symptom of 14 years of austerity. It is a symptom of being tied to this broken Westminster system.

I know that the Minister cares deeply about these issues and will give a compassionate and considerate response. I simply urge her to mirror some of the policies the Scottish Government are taking on tackling health inequalities. That is why in Scotland, all pupils in primaries 1 to 5, all children in additional support needs schools, and eligible pupils in primary 6 through to S6 can benefit from free school meals—the most generous free school meals offer anywhere in these isles, saving families—

Peter Dowd Portrait Peter Dowd (in the Chair)
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Order. I call Preet Kaur Gill.

17:13
Preet Kaur Gill Portrait Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)
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It is a pleasure to serve under your chairship, Mr Dowd. I thank the right hon. Member for Bexleyheath and Crayford (Sir David Evennett) for securing this debate. He has been a strong campaigner for tackling childhood obesity over many years, and I thank him for his remarks today.

As many colleagues have rightly highlighted, the obesity epidemic is a genuine crisis. It will be the next big public health issue that we will all be talking about in a few years. Some 60% of us are now overweight. One in four children in England are now obese by the time they leave primary school. That means that those children are five times more likely to go on to develop serious and life-limiting diet-related conditions in adulthood, such as diabetes, cardiovascular disease, liver disease and certain forms of cancer. Of course, that means more pressure on the NHS, which, as we know, is already buckling under the weight of demand after years of mismanagement by this Government. It is a disaster for the taxpayer: Frontier Economics estimates the impact of obesity to be £98 billion a year in NHS and social care costs, lost productivity, workforce inactivity and welfare payments.

I thank many Members for rightly focusing their remarks today on the poor food environments in which children are growing up, and what we as policymakers can do about that. In recent decades, action on obesity has overwhelmingly focused on measures to get people to change their behaviours without tackling the structural factors that influence them. We know that that is not enough. For example, 99.9% of us know that it is important to get our five a day, most of us can tell each other what a healthy diet looks like, and every week there seems to be some new fad diet. The bottom line is the nation’s waistline: Britain is getting fatter.

It is therefore disappointing to see the Secretary of State say that she believes the priority for preventing obesity is to give people information about nutrition with no measures to fix the food environment. It appears to be at odds with her views on tobacco, where the Government have rightly taken up measures to further protect children from tobacco harm. She does not believe that measures to inform children about the dangers of tobacco are alone sufficient to solve that issue, so why does she believe this for obesity? If giving people more information is the solution, can the Minister explain why obesity rates are twice as high in our poorest areas than the richest?

Labour believes that every community in the UK should be a healthy place for children to grow up, learn and play. Businesses need a healthy workforce to drive economic productivity and sustainable growth. It is the Government’s job to make the healthy choice the easy choice. There was a moment in 2020 when it looked like every party across the House believed this. The Government brought forward the 2020 obesity strategy, welcomed by doctors, parents and health charities, and as the right hon. Member for Bexleyheath and Crayford said, it received cross-party support.

The strategy contained evidence-based measures to begin to fix the food system by stopping our children from being bombarded with junk food adverts as part of a major commitment to halve childhood obesity by 2030. I would like to ask the Government today what has happened to that commitment, since they kicked that flagship policy into the long grass, delaying the policy for the next Government to deal with in October 2025. Are the Government still committed to halving childhood obesity by 2030, and what have they done since delaying the junk food advertising policies?

The need for action has not gone away, as we have heard today. The health of our children is in a dire state, and it is getting worse. It was once thought that it was essentially impossible for children to develop type 2 diabetes so early in life as a result of their diet, but as mentioned by the right hon. Member for Bexleyheath and Crayford, we are now seeing thousands of cases of children developing the condition, with more every year. Nearly four in 10 children with obesity are estimated to have early stage fatty liver disease, and tooth decay remains the single largest cause of hospitalisations for young children in England.

The Government assure us that the regulations on junk food advertising were delayed merely to give industry more time to prepare. If this is the case, why have the Government refused to bring out the supporting secondary legislation for these regulations, which are now months overdue? Surely the Minister agrees that it would help the industry prepare for these regulations to have this detail available to them now. Industry will want to tackle the structural drivers of ill health and be led by evidence, not ideology. That starts with delivering the measures the Government have failed to implement to protect children from junk food.

We will restrict adverts for foods high in fat, sugar and salt in favour of healthier options. We will improve children’s diets by finally implementing the 9pm watershed for junk food advertising on television and ban paid-for advertising of less healthy foods in online media. Tackling health inequalities is a central part of Labour’s health mission. We will not resort to the tired excuses that would blame families in Blackpool for having poorer health than someone in Banbury. Instead, we need to focus on making healthy food more affordable and accessible. Schools will have a role and responsibility within that, which is why our fully funded breakfast clubs in every primary school in England will serve healthy and balanced food to embed healthy habits and boost children’s concentration and development.

The Government undertook some assessments of the health impacts of the national school breakfast programme when it was running. It would be really good to hear what some of the evidence was. We heard from schools that it improved pupil behaviour, their readiness to learn, social skills and their eating habits. To conclude, I want to leave Members with a statistic to reflect just how stark this issue is. Not only are our children fatter than their peers in other European countries, but they are actually shorter than their European peers.

17:19
Andrea Leadsom Portrait The Parliamentary Under-Secretary of State for Health and Social Care (Dame Andrea Leadsom)
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I congratulate my right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett) on raising this important issue. I thank all hon. Members for their contributions. There is no doubt that this country faces an obesity challenge. I am reassured by the contributions from everybody that none of us underestimate the scale of the task ahead.

As others have said, two thirds of adults in this country are overweight or living with obesity, increasing their risk of many serious diseases. Tackling it head on is not just the right thing for patients but makes good economic sense too. Obesity-related conditions cost our NHS £6.5 billion directly every year and the cost to wider society is a staggering £57 billion. As my right hon. Friend the Member for Bexleyheath and Crayford said, some estimates put it at over £90 billion.

My great passion is for giving every baby the best start for life. There is no doubt that prevention is not only kinder but much cheaper than cure. Food given to babies and young children helps establish food preferences at an early age, so it is vital that we build healthy eating patterns as soon as possible.

Nearly one in 10 children starting primary school are already living with obesity, doubling to nearly one in five by the time they leave. Growing numbers of children with excess weight are, as hon. Members have said, developing health conditions once rarely seen in childhood such as high blood pressure. Every child needs an environment that helps them to thrive and reach their full potential. Of course, that is easier said than done. There is no single solution, no magic bullet to solve the problem. That is why we are delivering an ambitious programme with four strands: first, we are supporting families to make healthier choices through more advice and better information. That starts at the very beginning of life with our national breastfeeding helpline for parents who need support. The Start for Life website is a rich source of helpful advice.

We are backing family hubs with £300 million so that new mums and dads have the best advice, including on children’s nutrition, with one-stop shops across England. Weaning is a critical time for establishing healthy eating, so we are working on voluntary industry guidelines to reduce levels of sugar and salt in commercial food and drink aimed at children up to 36 months. We have begun a four-week period of engaging with industry to make sure we get that right.

For older children, families and adults, we provide a range of materials, tools and apps to encourage eating better and moving more. That can all be found on our Better Health website. I encourage all hon. Members to recommend it to their constituents.

I am proud of action that we have taken to mandate calorie labelling on websites and delivery apps for all large restaurants, cafés and takeaways. We have prohibited the promotion of less healthy products at key selling locations to help people stave off impulse buys, because we all know that people are not making those choices consciously. They are unconscious choices being hugely promoted by incredibly strong advertising and marketing. We know it can be very challenging for some families to make healthier choices, so we are investing over £200 million a year on three health food schemes: healthy start, the nursery milk scheme and the school fruit and vegetable scheme.

Secondly, we are promoting more physical activity, which helps people maintain a healthier weight. The Government are investing over £600 million in school sports over the next two years via the PE and sport premium and School Games Organiser network so that children can get more active. We also have the Couch to 5K and Active 10 apps to promote everyone getting more active.

The third measure is supporting those already overweight or obese to achieve and maintain a healthier weight. We have delivered a free NHS weight loss app, and local authorities are funding local weight loss services from their public health grants. The NHS provides a digital weight management programme and many specialist services. We are now exploring ways to increase access to the newest weight loss drugs for more people who are eligible.

Fourthly—a really critical point, as lots of right hon. and hon. Members have raised—is our work with the food industry itself. Sadly, there has been a long-term trend towards producing and marketing foods high in calories, saturated fat, salt and sugar—a race to the bottom. We will reverse that trend. Our soft drinks industry levy has already made huge strides in bringing down the sugar content of soft drinks by almost half between 2015 and 2020, removing a staggering 46,000 tonnes of sugar. Our voluntary reformulation programme requires all sectors of industry to reduce levels of sugar, calories and salt in the everyday food and drink that people buy. If we can see this through, consumers will have many fewer calories in their diet without them having to consciously change what they eat.

Although the salt and sugar reduction programmes have brought some progress, there is much more to be done. The calorie reduction progress report published this month showed little change in calorie levels between 2017 and 2021. I have asked industry to meet the reduction targets for calories and sugar by the end of 2025. We will leave no stone unturned if they do not live up to our expectations.

I am pleased to assure the House and my hon. Friend the Member for Erewash (Maggie Throup) that we remain committed to introducing further advertising restrictions to reduce the marketing of less healthy foods to children. We will also bring in restrictions on volume price promotions, such as three for the price of two, on less healthy foods in October next year, and we will back local government in using its powers to support a healthy local food environment.

Obesity is a significant challenge, not just in the UK but globally. We all have our part to play. I have personally been engaging with industry throughout my career, from the Treasury, to the then Department for Business, Energy and Industrial Strategy, to the Department for the Environment, Food and Rural Affairs. Business people say they want a brighter future for all our children. I plan to make sure that they deliver on that.

17:26
David Evennett Portrait Sir David Evennett
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I thank everyone who has participated today in a very constructive way. That is the way we should all be addressing such an important issue. I particularly thank the Minister for her excellent response. We have had some really good issues raised by colleagues on all sides, and by the Minister.

I look forward to us all doing something to make sure that the crisis of obesity is overcome. It is so important, particularly for our children, but also for adults, and for quality of life. I am grateful for Members’ participation and for the ideas that have come forward, which we will look at and consider. I know the Minister will take them away, and I particularly thank her.

Question put and agreed to.

Resolved,

That this House has considered tackling obesity.

17:27
Sitting adjourned.

Written Statements

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Written Statements
Read Full debate Read Hansard Text
Tuesday 27 February 2024

Children and Young People: Mental Health Support

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Written Statements
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Maria Caulfield Portrait The Parliamentary Under-Secretary of State for Health and Social Care (Maria Caulfield)
- Hansard - - - Excerpts

I wish to inform the House that the Government have provided additional funding so that 24 early support hubs across England are able to help children and young people receive quicker mental health support.



The Government are taking the long-term decisions needed to make our healthcare system faster, simpler and fairer. Mental health support for our young people is a key part of that.



We announced in October 2023 that £4.92 million from HM Treasury’s shared outcomes fund would be available to support hubs and an evaluation to build the evidence base underpinning these services.



Following evaluation of excellent commercial tenders from hubs across the country, I am very pleased to be able to let you know that the Government are now providing an additional £3 million, meaning a total of 24 hubs will receive a share of almost £8 million in 2024-25. This is more than double our original target of funding 10 hubs, and organisations across the length of England—from Gateshead to Truro—will now benefit.



This investment in frontline services means that thousands of children and young people will receive earlier, open-access mental health interventions in local communities.



Crucially, alongside boosting 24 hubs, the funding will also enable us to evaluate the impact of the services and inform any potential expansion of the model in the future. The evaluation aims to report its findings by summer 2025.



As this new investment shows, we want to intervene earlier to prevent children and young people from developing severe or enduring mental health conditions. That is why we are also continuing at pace with the roll-out of mental health support teams to schools and colleges in England. There are currently around 400 mental health support teams in place across England, covering over 3 million children or around 35% of pupils in schools and colleges, and we are extending coverage to at least 50% of pupils in England by the end of March 2025.



I know that we still have a long way to go to ensure that all young people struggling with their mental health get the support they need at the right time, but today’s new investment is a positive step to support children and young people’s mental health, and one that should be celebrated.

Early Support Hubs Receiving Funding

Hub Name

Constituency

ABL Health

Bolton South East, Yasmin Qureshi

Base 25

Wolverhampton South West, Stuart Anderson

Brook Young People

Truro and Falmouth, Cherilyn Mackrory

Brent, Wandsworth and Westminster Mind

Cities of London and Westminster, Nickie Aiken

Centre 33

Cambridge, Daniel Zeichner

ChilyPep

Barnsley Central, Dan Jarvis

The Children’s Society

Torbay, Kevin Foster

The Children’s Society

Gateshead, Ian Mearns

CHUMS Charity

Mid Bedfordshire, Alistair Strathern

Family Action

Hackney South and Shoreditch, Meg Hillier

Isle of Wight Youth Trust

Isle of Wight, Bob Seely

Lancashire Mind

Chorley, Lindsay Hoyle

Mancroft Advice Project (MAP)

Norwich South, Clive Lewis

Noah's Ark Centre

Hallifax, Holly Lynch

No Limits South

Southampton Test, Alan Whitehead

Onside

Worcester, Robin Walker

People Potential Possibilities

Erewash, Maggie Throup

Sheffield Futures

Sheffield Central, Paul Blomfield

Spring North

North Blackburn, Kate Hollern

Warrington Youth Zone Limited

Warrington South, Andy Carter

YMCA St Helens

St Helens South and Whiston, Marie Rimmer

Young Devon

North Devon, Selaine Saxby

Youth Enquiry Service

Wycombe, Steve Baker

YPAS

Liverpool, Riverside, Kim Johnson



[HCWS 293]

Operation of the Terrorism Acts in 2021: Independent Reviewer’s Report

Tuesday 27th February 2024

(9 months, 3 weeks ago)

Written Statements
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James Cleverly Portrait The Secretary of State for the Home Department (James Cleverly)
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In accordance with section 36 of the Terrorism Act 2006, Jonathan Hall KC, the independent reviewer of terrorism legislation, has prepared a report on the operation in 2021 of the Terrorism Acts, which was laid before the House on 7 March 2023.



I am grateful to Mr Hall KC for his report and have carefully considered the recommendations and observations included within. I am today laying before the House the Government’s response to the report (CP 1022). Copies will be available in the Vote Office and it will also be published on www.gov.uk.

[HCWS294]