(2 years, 11 months ago)
Lords ChamberI start by thanking the noble Lord, Lord Fox, for sponsoring the Bill before us today on this important matter, and indeed his colleague Wendy Chamberlain MP in the other place for initially sponsoring it. I note the cross-party support in the other place, as has been mentioned today, and I hope we can move forward in the same spirit. I also add my thanks for all the different briefing papers we have received—from Carers UK, for example, and the MS Society.
I particularly pick up on the reference the right reverend Prelate the Bishop of Leicester made to the Archbishops’ Commission on Reimagining Care. I, too, recommend it to those who have not had a chance to look at its recommendations. It was my great privilege to work closely with Anna Dixon in her former role at the Centre for Ageing Better when I was the leader of Leeds City Council. So many of the pieces of work we did there have informed my views on how we need to move forward on this issue.
I also pay tribute to the other speakers in the debate for their passion and obvious long-term commitment to this agenda and for standing up for the most deserving in our society—all those unsung heroes who do so much to support their loved ones. Indeed, as we have heard today, many noble Lords have personal, as well as professional, experience of these matters; I note the comments made by the noble Baroness, Lady Uddin. These are incredibly important insights that we need to use to inform our discussions and policies as we take them forward. I pay particular tribute to my noble friend Lady Pitkeathley and thank her for her inspirational speech, and I acknowledge her wealth of experience in these matters.
We fully support the Bill, although we believe that carer’s leave should be paid. We have to ask why it has taken the Government so long to introduce legislation, therefore necessitating its introduction by Private Member’s Bill. We remain disappointed that the promised employment Bill has not materialised. However, we acknowledge that this is a significant moment to take a step in the right direction, and we believe we should seize the moment. It is also worth noting that, under the proposals set out in Labour’s New Deal for Working People, the next Labour Government will legislate to ensure that working people can respond to family emergencies as and when they arise, without being left out of pocket.
As so many have said, unpaid carers are among the many unrecognised stars of the health and care sector. They step in to support friends and family with care so that those people can retain some of their independence and dignity. We need to emphasise, particularly with International Women’s Day approaching next week, how important it is to point out that, tragically, the highest proportion of unpaid carers are women. The highest proportion fall in the 50 to 59 age group, where a staggering one in five women are estimated to be carers. Since the Covid-19 pandemic, there are 350,000 more people over 50 who are economically inactive, with health cited as the largest single reason but caring and family responsibilities coming second.
Carers UK has stated that granting unpaid carers the right to carer’s leave would improve the finances of carers who would no longer have to reduce their working hours or give up work altogether. I think we all took on board the points outlined by my noble friend Lady Pitkeathley about the impact on mental health and, as the right reverend Prelate mentioned, the impact of loneliness.
The scale of the issue is huge. We have heard many figures today. Carers UK estimates that there are 7 million people in paid work who also provide unpaid care. Every year an estimated 1.9 million people in work become carers, and there is evidence of many using up their holiday entitlement to provide cover as needed. An estimated one in seven juggle work and care, with the Joseph Rowntree Foundation stating that over 1 million carers are living in poverty, feeling “abandoned by society”.
In the 2017 to 2019 parliamentary Session, the House of Commons Work and Pensions Committee held an inquiry on employment support for carers. Its May 2018 report, Employment Support for Carers, stated:
“Balancing care with paid employment is a tricky juggling act”—
I think that is putting it mildly—which, as we have heard, causes many carers to either give up work or reduce their hours. It said that this was costly to the individual, who can lose financial security and may need to recruit a replacement. In addition, it found that there was an economic cost as
“productivity, and ultimately tax revenues, suffer from people who want to work, or work more, being avoidably unable to do so”.
Putting my business and trade hat on, I will say, like the noble Lord, Lord Fox, that the impact on the economy is profound and needs to be taken into account by the Government, particularly by the Treasury. I will not repeat the figures that the noble Baroness, Lady Tyler, quoted, but they are stark and significant. Indeed, our Adult Social Care Committee estimated in its excellent report a loss to the Exchequer of £2.9 billion in carer’s benefits and lost tax revenues.
We welcome the broad definition of reasons for needing carer’s leave and the fact that the definition of “dependant” is also broadly drawn. These definitions are often misunderstood, and further clarity is indeed welcome.
I particularly welcome the reference to young carers made by the noble Lord, Lord Young. He raised the links to deprivation and that awful tendency of those in this category to suffer in silence and not to come forward and claim any support that might be available to them. Given the important role that unpaid carers play and the fact that so many of them find themselves in precarious financial positions, especially with the soaring cost of living crisis, the situation is simply unacceptable. Through this process, the ability to raise the profile of the issues is very important.
I feel that it is impossible to talk in this debate without referencing the urgent need to tackle the crisis of social care in this country—across all age groups, those caring for both children and adults with disabilities, respite need and home care, as well as in the residential sector. It would be very helpful in this debate to have an update on progress in this area.
I very much look forward to the Minister’s response. I hope that, in line with other contributors’ support today, we will hear that the Government support this important Bill’s passage so that we can start to move forward on the journey to give carers support and to continue to increase awareness for those who so desperately need, and richly deserve, our support.
(2 years, 11 months ago)
Lords ChamberMy Lords, I put down this regret Motion because the purpose of this SI runs directly contrary to the points of principle that we on these Benches argued for during the passage of the Subsidy Control Bill. We argued for more consultation with devolved Administrations; instead, this SI reduces it.
In explanation, this instrument removes an obligation for the CMA to consult with the devolved Administrations when preparing or revising the policy statement in relation to information-gathering powers, which are used by the Competition and Markets Authority’s Subsidy Advice Unit under the terms of the Subsidy Control Act 2022. It also removes the requirement for the Secretary of State to consult the devolved Administrations when making regulations about penalties in relation to these powers.
The Act established a new subsidy control regime to replace the EU’s well-established state aid. The Government’s aim was to enable local authorities and devolved Administrations to deliver subsidies more tailored to local needs. The CMA, via its SAU, has a monitoring role, and there are penalties for not complying with its information-gathering powers.
The Act touches on a sensitive area of overlap between reserved and devolved powers: subsidy regulation is reserved but economic development is devolved, and, clearly, subsidies are an important economic development policy tool. When the subsidy control powers operated under the EU umbrella, DAs worked to a pretty clear and non-party-political framework of rules. On paper, the Government’s aims in making the new framework more sensitive to local needs should make economic development easier for devolved Administrations and local authorities. However, these regulations undermine the whole principle of sensitivity to local needs by removing the obligation to consult.
There are additional aggravating features to this situation. First is the lack of any previous notification that this was the Government’s intention. I can find no specific announcement during the passage of the Bill that this was how the Government intended to use their power. The Welsh Government inform me that they were first informed on 21 July, when shown a draft of these regulations. At official-level meetings prior to this date, there had apparently been none of the usual courtesies of giving advance information on the Government’s direction of travel, which would have enabled Welsh Government officials to have some input into the drafting.
Secondly, there is the opaque way in which this legislation is drafted. Although these regulations flow from the Subsidy Control Act, they implement an implied amendment to the internal market Act. Noble Lords will recollect that that Act was controversial from a devolution perspective: the DAs did not grant legislative consent, and attempts were made to amend the Bill to take greater account of the economic development responsibilities of devolved Administrations. These regulations mean that the internal market Act remains drafted as is from the textual standpoint but with an implied textual amendment which will have the effect of removing the requirement to consult with devolved Administrations. It will give the Secretary of State more discretion on penalties and give the CMA more discretion on policy relating to subsidy control. The CMA Subsidy Advice Unit already has no obligation to give due regard to DA opinions, and this is another blow to the possibility of positive relationships between devolved Administrations and the UK Government. This is a pity, as I am told that relationships between the SAU and officials in devolved bodies have been very positive, so there is no good reason to change the balance of powers. As well as removing the obligation to consult, this also removes any possibility of challenge if devolved opinions are ignored. I suspect that this is the Government’s intention here: governing always seems easier if you shut yourself away and do not listen.
These regulations will bring the duties placed upon the SAU out of line with the duties placed on the CMA’s Office for the Internal Market, suggesting that a similar retrenchment of devolved powers may be likely for the latter. Do the Government have such plans?
Further aggravating features were brought to our attention by the diligent work of the Secondary Legislation Scrutiny Committee. It expressed concern that the Government’s explanation or defence of the removal of this obligation to consult is that the CMA and the Secretary of State will still have to consult the devolved Administrations if their interests are “sufficiently affected”. The SLSC stated that, in the absence of any definition of this term, it is worried about how it will be interpreted. I hope the Minister can be very explicit on how the new rules will be interpreted.
The SLSC also drew our attention to a serious error in the Explanatory Memorandum, which said that the DAs had not objected, when in fact they had done so unequivocally. The EM has now been corrected, but this is a serious error—much worse than the usual omissions. If the views of the DAs on the regulations governing consultations are misrepresented, it is hard for us to have confidence in the good faith of the consultations that flow from them.
In summary, these regulations will impact adversely on economic development opportunities in the devolved nations and hinder the ability of the DAs to shape the subsidy regime of the future. They reinforce the view that this centralising Government are determined to take every opportunity, however small, to undermine devolution. I realise that the Government want to hold all the reins of power, not least because, in this case, carefully placed subsidies are an easy way to bolster support in chosen parts of the country. The same principle underpinned the Government’s decision to centralise the shared prosperity fund and to cut the Welsh and Scottish Governments out of decision-making. The outcome of the first round of that funding makes my point for me.
I urge the Minister to think long term. Every time the Government chip away at devolution, they persuade a few more voters living in the devolved nations to give up on devolution and move to support independence. The Government should instead be bolstering good relations with the devolved Administrations, and that means respecting their powers and opinions. The Government are in danger of making enemies out of friends. The Welsh Government are not the Scottish Government; they are not predisposed to object to everything. I am sure the Minister will seek to reassure me that consultation with the devolved Administrations will in fact continue, but unfortunately the evidence is already there that it is pretty sketchy and corners are cut on existing obligations. I thank the Minister for his prior interest in my concerns on this, and I assure him that I will listen carefully to his response.
I thank the noble Baroness, Lady Randerson, for her clear and explicit exposition of the concern here. I have read the Welsh Government’s report, and significant concerns are raised in it. As we have heard, the Secondary Legislation Scrutiny Committee, which we have to take very seriously indeed, expresses concerns.
Misrepresentation has to be taken extremely seriously. My experience is of working at a regional level, having responsibility for money coming in through the form of subsidies and navigating the area of state aid. That is significant and important in building relationships and establishing trust and transparency in an area where there are competing interests. Every subsidy will be scrutinised, and there will be questions about why one area has got one as opposed to other areas.