Student Loan Interest Rates

Debate between Baroness Barran and Lord Sikka

Wednesday 27th March 2024 Lords Chamber

[Lord Sikka]

To ask His Majesty’s Government what assessment they have made of the level of interest being charged on student loans.

[The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)]

My Lords, our recent reforms, implemented in August 2023, ensure that the student loan system is fairer for taxpayers and for students. New students on the new loan terms will benefit from a reduction in interest rates to the retail prices index only. This ensures that they will not repay, under those terms, more than they originally borrowed when adjusted for inflation.

[Lord Sikka (Lab)]

My Lords, unlike residents of Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Italy, Norway, Scotland and Spain, people living in England pay university tuition fees—a major cause of the student debt of more than £206 billion and rising. The average debt of £45,000 currently attracts a 7.7% compound interest rate and is rising. Can the Minister explain why the interest rate on student debt is higher in real terms than the equivalent interest charged on a mortgage?

[Baroness Barran (Con)]

I think the noble Lord knows the answer to his question: it is not appropriate to compare mortgages with student debt, which is unsecured and expires and does not have to be repaid in full. The noble Lord shakes his head, but he can do the maths: a mortgage is asset-backed, and one has to repay it; a student loan is not asset-backed and expires. As the noble Lord knows, under the current system, the vast majority of students do not repay it in full.

Earnings: Mothers and Fathers

Debate between Baroness Barran and Lord Sikka

Wednesday 13th March 2024 Lords Chamber

[Lord Sikka]

To ask His Majesty’s Government what assessment they have made of the research by campaign group Pregnant Then Screwed showing that mothers in the United Kingdom earned £4.44 less an hour than fathers in 2023.

[The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)]

My Lords, data on the gender pay gap is collected by the Office for National Statistics and published annually, with the latest results published in November 2023. These showed that the pay gap between men and women in full-time work aged 30 to 39, which is the average age of parents when they first have children, was 4.7% in 2023, down from 11% in 1997. The publication does not include information on pay gaps between mothers and fathers, and this information is not included in any routine publication of the ONS. The results of the analysis and the data and methods that were used by the group Pregnant Then Screwed have not been published; the Government are therefore unable to assess their basis.

[Lord Sikka (Lab)]

My Lords, my Question is about the motherhood penalty, which is also a major cause of child poverty. The 2016 survey by the Equality and Human Rights Commission reported that 77% of working mothers experienced discrimination during pregnancy and maternity leave and on return from maternity leave. The Minister said that the Government do not have any information. Why not? Why do the Government not collect any data about pregnancy and maternity discrimination suffered by women? In the absence of that information, how can they eradicate that discrimination?

[Baroness Barran (Con)]

I think the noble Lord might want to look again at what I said. I absolutely did not say that the Government do not gather any information on discrimination. Our domestic law on maternity discrimination is absolutely clear: discriminating against women in the workplace because they are pregnant or new mothers is unlawful.

Children’s Care Homes: Private Equity

Debate between Baroness Barran and Lord Sikka

Tuesday 30th January 2024 Lords Chamber

[Baroness Barran (Con)]

The noble Baroness will be aware that we are investing £36 million in foster care, starting with work with local authorities in the north-east to encourage recruitment of more foster carers. That programme has got off to a very good start. We have also launched the first ever national kinship care strategy, backed by £20 million of investment in the financial year 2024-25.

[Lord Sikka (Lab)]

My Lords, private equity has already devoured care homes such as Southern Cross and Four Seasons, which actually had more subsidiaries than General Motors. Profiteering, asset stripping and tax avoidance are the basic business model in private equity. Studies have shown that private equity in care homes is making profits in the range of between 30% and 40% of the revenues. That is clearly unacceptable and is very poor value for public money. Can the Minister give an undertaking that there will be an investigation into the role of private equity in care homes and healthcare?

[Baroness Barran (Con)]

The noble Lord will be aware that the Competition and Markets Authority has already done a great deal of work in this area and has made recommendations which are behind our commitment to a much clearer market oversight regime. We will bring forward legislative changes to enact that when parliamentary time allows.

Archbishops’ Commission on Families and Households: Love Matters Report

Debate between Baroness Barran and Lord Sikka

Tuesday 13th June 2023 Lords Chamber

[Baroness Barran (Con)]

I am in such shock to have such appreciation for the Government’s actions, but I thank my noble friend for his comments.

[Lord Sikka (Lab)]

My Lords, inequalities identified in the archbishops’ commission’s report ultimately blight life. Last year, a study estimated that the Government’s austerity policies caused 335,000 excess deaths between 2012 and 2019 alone. Will the Minister answer just two questions? First, what forgiveness have the Government sought from the families of individuals killed by their policies? Secondly, will the Minister ensure that all Bills from now on are accompanied by an assessment showing their capacity to cause premature death?

[Baroness Barran (Con)]

I am happy to look at the research to which the noble Lord refers, but my own experience of looking at linking mortality to policy is that it is an extremely complicated business and I take exception to the suggestion that any Government—and this Government—would ever intentionally do anything that they believed would harm their people.

Schools: Data, Digital and Financial Literacy

Debate between Baroness Barran and Lord Sikka

Tuesday 14th March 2023 Lords Chamber

[Baroness Barran (Con)]

That is exactly what the department is doing with its T-levels.

[Lord Sikka (Lab)]

My Lords, while reviewing the school curriculum, will the Minister ensure that pupils have access to compulsory courses on ethics and human rights? This would help to ensure that future generations are relieved of the pain caused by directors of profiteering companies and members of the Government who may be inclined to flout international laws and human rights.

[Baroness Barran (Con)]

The noble Lord makes a broader point. Many of those issues are indeed covered in the curriculum. Specifically in relation to financial choices, there is dedicated time to look at social and moral dilemmas, to which the noble Lord refers, within the citizenship curriculum today.

Gambling Reform

Debate between Baroness Barran and Lord Sikka

Tuesday 29th June 2021 Lords Chamber

[Baroness Barran (Con)]

I would be breaching the Lord Speaker’s guidance if I were to give the noble Lord the full list, but his point is important. We have not waited for the end of the review to take action where it is needed. To give a couple of examples, in the past 18 months, we have banned gambling on credit cards and introduced new rules to limit the intensity of online slot games.

[Lord Sikka (Lab) [V]]

My Lords, the public health policies applied to tobacco and alcohol addiction are not being applied to gambling. The Government can easily modify Section 328 of the Gambling Act 2005 to control gambling advertising. Can the Minister please explain why the gambling industry and addiction are treated differently?

Online Gambling: Stake Limits

Debate between Baroness Barran and Lord Sikka

Tuesday 9th February 2021 Lords Chamber

[Baroness Barran (Con)]

My noble friend is right to raise the issue of VIP schemes. Our understanding is that since the commission challenged the industry on this, the number of customers in VIP schemes has fallen by 70%, and the rules governing the schemes formally came into force at the end of October. We will continue to monitor them and, if further action is needed, the Gambling Commission is ready to take it.

[Lord Sikka (Lab) [V]]

My Lords, the Gambling Commission is, as always, playing catch-up. Does the Minister agree that it needs to be proactive? Will the Government introduce legislation under which all gambling products, prior to their launch, would be assessed for their capacity to cause social harm?

[Baroness Barran (Con)]

The Gambling Commission has been very active, particularly in the last year with the risks around Covid and lockdown. We are currently looking at funding, and there is a consultation out on an uplift to Gambling Commission fees, to make sure that it can keep pace with the industry.

Gambling

Debate between Baroness Barran and Lord Sikka

Thursday 7th January 2021 Lords Chamber

[Baroness Barran (Con)]

Our number one priority in the Gambling Act review, which I appreciate is broader than the noble Viscount’s question, is the protection of children and their access to gambling. The call for evidence on loot boxes closed at the end of November. We received tens of thousands of responses, and we will publish our response to that early this year. I will need to confirm the position on skins and write to the noble Viscount.

[Lord Sikka (Lab) [V]]

My Lords, an effective review of gambling legislation requires consideration of social costs, which are undoubtedly substantial. Does the Minister agree that the review would need to include at least the costs of the effects on immediate family, relationship breakdowns, domestic violence, depression, attempted suicides, crime, cost to the criminal justice system, loss of employment, job searches, health treatment, bankruptcies and productivity?

[Baroness Barran (Con)]

I absolutely agree that we need to understand the social costs, but the more important issue is that we reduce the scale of problem gambling, because however well we measure the social costs, we will not capture the impact on human beings and their families.

Gambling and Lotteries

Debate between Baroness Barran and Lord Sikka

Monday 14th December 2020 Lords Chamber

[Baroness Barran (Con)]

The purpose of the review is to keep the balance. Of course we acknowledge that the vast majority of people who go out and place a bet—whether once a week, twice a year, or however often it might be—may get great fun and pleasure from it, and it can be a form of social contact. However, we also know that there are people who pay a great price and suffer as a result. We are seeking to find a balance, so the evidence in relation to mental health in both directions will be taken seriously.

[Lord Sikka (Lab) [V]]

My Lords, gambling companies such as 888, Bet365, Betfair, Flutter, Ladbrokes, Paddy Power, Sky Bet and William Hill have used complex corporate structures in Guernsey, Alderney, Gibraltar, the Isle of Man, Ireland and Bulgaria to avoid UK corporate taxes. Indeed, in 2018, HMRC finally defeated Ladbrokes on its £71 million tax-avoidance scheme. Does the Minister agree that gambling companies avoiding UK corporate taxes should automatically lose their licence to operate here?

[Baroness Barran (Con)]

Companies that avoid taxation illegally, whether they are gambling companies or any other companies, should be held to account for that. However, as the noble Lord is aware, gambling companies contribute about £3 billion to the Exchequer through the levy.

Gambling Legislation

Debate between Baroness Barran and Lord Sikka

Wednesday 9th December 2020 Lords Chamber

[Baroness Barran (Con)]

I reassure the noble Lord that progress is being made on advertising. We are calling for evidence on gambling advertising but obviously, we cannot prejudge the findings. The Advertising Standards Authority’s strict rules on gambling advertising apply across the UK.

[Lord Sikka (Lab) [V]]

My Lords, I welcome the review, but have concerns about the process. The overreliance on written evidence will inevitably favour gambling companies and marginalise their victims. I urge the Government to establish a truth commission or Leveson-type inquiry, so that victims of the industry and their families can speak and corporate executives who have failed to honour their promises can be examined under oath.

[Baroness Barran (Con)]

The noble Lord raises an important point: that the voices of those who have been harmed by gambling should be heard. My right honourable friend the Secretary of State’s first meeting on this issue was with a group of experts with lived experience of gambling harm. I encourage the noble Lord to submit evidence to this review.