Corporation Tax (Northern Ireland) Bill

Baroness Blood Excerpts

Tuesday 17th March 2015 Lords Chamber

[Baroness Blood (Lab)]

My Lords, before I speak about the Bill, I would like to say what a pleasure it is to see the noble Lord, Lord Hay, here in the Chamber and to have listened to his maiden speech. I have known the noble Lord and seen his work for Northern Ireland over many years, especially in his home area of Londonderry and, more recently, as Speaker of the Assembly. It is a real pleasure to see him here this afternoon.

Corporation tax, I must admit, is not an area of work that I would normally speak about, as finance is not my strongest point. Suffice it to say, however, that I am concerned that the Bill before us is unproven territory. Many people back in Northern Ireland—and indeed in your Lordships’ House—have very different opinions on it and its value. My concern is that, if it becomes law in 2017, the block grant would be affected by money being taken out of it before any of the benefits would be seen from changes in corporation tax. It is almost like being asked to pay for your dinner before you have seen the menu.

I, like all my fellow Peers in this House, am not opposed to anything that would bring jobs, especially to Northern Ireland. Indeed, in my work in Northern Ireland over many years, I have believed that getting employment—especially for young people—is the answer to a number of problems, such as getting people off benefit. A big goal for me is getting jobs for young people, to take them away from the draw of paramilitaries. A lot of this work has been done through community development and social economy, but my problem in relation to this Bill, as I have already said, is that the block grant would be affected immediately.

Those of us in this Chamber who come from Northern Ireland are aware that we are already struggling to work within a very tight budget. For example, Sure Start, with which I am involved in Northern Ireland, has this year been informed that its budget will be cut by 4.5% to 5%. In my own area, that means a cut of almost £35,000, which means two jobs. Education—a very vital component for getting people into work—is also being cut. As we have seen every night in our local news and in our newspapers, schools are closing and having to pay off teachers and so on and so forth. Many community groups among which I work have been told that their grants will either be cut or, in some cases, done away with altogether. I am worried about this because this work is vital in Northern Ireland at this stage of the peace process.

With all this in mind, will the Minister clarify some points? Is there a rough idea of how much will be taken out of the block grant? I know that it depends on what rate is set: we have heard figures from as little as £150 million to £400 million a year, so I would like that to be clarified. Can she give us an assurance that education and health will be safeguarded, even with these cuts, in 2017? Finally, there is something that I do not fully understand—perhaps it has already been discussed here. Why will building societies and credit unions be unable to take advantage of corporation tax? Is there a legal reason for that or something else? I fail to understand why these organisations would be exempt, given the vital work that they do in a small place such as Northern Ireland.

Savings Accounts and Health in Pregnancy Grant Bill

Baroness Blood Excerpts

Tuesday 7th December 2010 Lords Chamber

[Baroness Blood]

My Lords, speaking towards the end of the list, everybody has said what I wanted to say, so I shall be brief. I do not support the broad thrust of the Bill or the focus of many of its provisions. I do not think that it is my task here today to discuss that, but I wish to state my concern that doing away with the child trust fund, the health in pregnancy grant and the Government’s contribution to them will disadvantage some of the poorest children and families in our society. My purpose in speaking in the debate today is rather to support a scheme that was proposed in the other place and which, I understand, the Prime Minister may be willing to consider.

The scheme focuses on one of the most vulnerable and disadvantaged groups of children and young people. They very often do not have anyone to speak for them and make their interests heard. I speak, of course, about children and young people who are looked-after, or in care, and here I must declare an interest. I am the chair of Barnardo’s in Northern Ireland and a trustee of Barnardo’s in the UK.

Some 86,000 children are in care across the UK. In Northern Ireland, more than 2,400 children are in care. The vast majority of these children and young people will be in foster care and most will have had a very traumatic experience in their life which has brought them down this route. Many will have experienced neglect or abuse and the trauma of no longer being able to live with their birth families. In Northern Ireland, the single biggest reason that children move into the care system is neglect, often linked to parental alcohol and drug misuse. Yet it is rarely given the attention and focus it requires and children and young people leaving care are the group who do least well.

In Northern Ireland, 83 per cent of all children tested in key stage 3 achieve level 5 in English, but for children in care, it is 27 per cent. Similarly, 81 per cent of all children achieve level 5 in maths, but for children in care, it is also 27 per cent. While 99 per cent of the Northern Irish school population attain at least one GCSE, for children in the care system, this is down to 61 per cent. Looked-after children are four times more likely to be suspended from school than those in the general population. In 2008-09, 8 per cent of all looked-after children were suspended or excluded from school, compared with 2 per cent of all other children. In 2009 in Northern Ireland, almost one in 10 of all children in care was cautioned or convicted of an offence. Similarly, young people leaving care are much more likely to be unemployed and not in education or training. This pattern reflects the situation of children in care not only in Northern Ireland: the same pattern of poor families and lost opportunity extends across the United Kingdom. This is why we should support the call for the Government to introduce and fund a junior ISA for children in care. While the Government's intention in the Bill is to encourage parents to save and to buy junior ISAs for their children, when a child is taken into care, the state becomes the parent, so it is beholden on the state to act as a good parent and to save and provide a nest egg for the children for whom it has responsibility.

The scheme is relatively straightforward. It will apply to any child who enters care after January 2011 and remains there for a minimum of three months. The Government will open a junior ISA for each child who meets this criterion, with an opening deposit of £250. There would be a top-up of £100 for each subsequent year that the child remains in care. Of course, it would also be possible for others to contribute to the child's ISA: extended family, local authorities, trusts or other benefactors could also make contributions. This would also give young people—who at 16 or 17 could be working part-time—the opportunity to contribute. Children and young people in or leaving care have to be more resilient than most young people, and it would be good for them to learn the importance of saving and planning ahead, knowing that they have a nest egg to which they can contribute.

I understand that the total cost of the scheme would be around £7 million. It would be a very effective use of public money to support very vulnerable children over the long term. Of course, I am keen to ensure that if the scheme goes ahead, it will apply to Northern Ireland—but the whole of the UK should be involved. I look forward to hearing the views of the Minister, and urge him to make a firm commitment to provide appropriate funding for saving accounts for looked-after children, who after all are some of the most disadvantaged people in our society.