Oral Answers to Questions

Debate between Baroness Chapman of Darlington and Damian Hinds

Monday 27th March 2017 Commons Chamber

[Damian Hinds]

The number of young people in my hon. Friend’s constituency claiming out-of-work benefits has fallen by more than half in the past four years, and he is right to highlight the large number of vacancies—over three quarters of a million nationwide. Alongside promoting work experience and apprenticeships, the Government will soon be rolling out the youth obligation, providing additional intensive support for young people from day one.

[Jenny Chapman (Darlington) (Lab)]

The Minister can highlight what he likes, but long-term youth unemployment in Darlington and the Tees valley is completely stagnant: the situation has not improved at all. What is he going to do to make sure that in six months’ time the picture has improved?

Childcare Bill [Lords]

Debate between Baroness Chapman of Darlington and Damian Hinds

Monday 25th January 2016 Commons Chamber

[Jenny Chapman]

Well, I am glad that’s as simple as it gets. I said at the outset that I supported the Bill reasonably enthusiastically, but it is a bit arrogant of the Minister to suggest that it is a perfect Bill and that it has no complexity. As he just demonstrated incredibly well, there is huge complexity. Somebody on low earnings and working fewer than 16 hours a week will not qualify, but someone on higher earnings—

[The Exchequer Secretary to the Treasury (Damian Hinds)]

Universal credit.

[Jenny Chapman]

The Minister says that universal credit will help improve the system. I venture to suggest that it might well further complicate the situation.

The new clause is designed to ensure that these perceived and anticipated complications do not have unintended consequences. As I have said, I accept that they are unintended, but the Minister would be rather naive to think that these consequences could never occur.

Financial Education

Debate between Baroness Chapman of Darlington and Damian Hinds

Thursday 15th December 2011 Commons Chamber

[Mrs Chapman]

My hon. Friend makes a good point. She tempts me to break a promise that I made to myself when I came into the debate not to have a rant about the economy and make a wider political point, because I thought that that probably would not be what this occasion demanded. However, she makes that point for me and I thank her for it.

Education is the armour against being misled and I believe that advertising is misleading us. I refer the House to my ten-minute rule Bill of about a year ago, which I am sure all hon. Members have followed closely, which would curb some of the advertising on financial products. Financial education provides protection against some of the most traumatic circumstances a person can find themselves in, from paying an additional fee on an unauthorised overdraft because one is not aware of how the charges work, to losing one’s home or having one’s belongings repossessed and being declared bankrupt. Many of us have been able to learn from our mistakes because either the economy has been in a good state or we have been able to rely on family or friends. We have been lucky but young people now, as the hon. Member for North Swindon said, are in danger of financial mismanagement having a much longer-term effect on their lives. On finishing education, young people immediately face tough monetary decisions. At 17, they are already in debt and tied into contracts that they did not fully understand for things such as mobile phones. I take the slack given to me by the hon. Member for Wells (Tessa Munt) who made a good point about gambling. If that is an issue at primary level, which I had not appreciated, it is right that that be included in the curriculum. Therefore, we need to be properly prepared to deal with these decisions. Put simply, an informed borrower is a safer borrower.

[Damian Hinds (East Hampshire) (Con)]

I appreciate the hon. Lady’s point, but does she not agree that if we have a problem with children under the age of 11 gambling, the most important place to start is not the curriculum, but access to online gambling?

[Mrs Chapman]

I agree completely. That goes back to the first point that I made about financial education being one of four strands of the solution, the others being debt advice, advertising and regulation. The hon. Gentleman is right to point that out.

In schools across England, the provision of personal financial education is ad hoc. We saw some good examples when writing this report. I took it upon myself to visit schools in my constituency and I was impressed with what I found. There is little teacher training on personal financial education and there is therefore limited subject knowledge and confidence among some teaching staff. It is stating the obvious to say that schools face significant barriers to teaching financial education, such as curriculum time, the absence of a statutory mandate and the lack of awareness of suitable resources.

Careers Service (Young People)

Debate between Baroness Chapman of Darlington and Damian Hinds

Tuesday 13th September 2011 Commons Chamber

[Damian Hinds (East Hampshire) (Con)]

Does the hon. Lady agree that it is the quality of advice that counts, more than its quantity? What does she recommend we could do to get more people into schools to talk about STEM subjects, for example, and to inspire pupils to take those—boys and girls?

[Mrs Chapman]

Exactly right; I agree with that. I look at my own sons and wonder who is going to talk to them if they want to go into science, technology, engineering or maths. Heaven help them if they look to me or their father for advice. I can give them advice on politics, psychology, archaeology, retail and cake decorating.

Alan Milburn was right. I am happy to see the service devolved to schools. It is fine for schools to commission the service as they see fit, but they need money to enable them to buy quality face-to-face advice, and there needs to be a proper inspection regime.

[Damian Hinds]

rose—

[Mrs Chapman]

Please be brief.

[Damian Hinds]

Is the hon. Lady aware of the STEMNET ambassador programme, in which people from relevant industries go into schools and get the benefit of continuing professional development while they are sharing their knowledge and enthusiasm with the young people?

[Mrs Chapman]

Fantastic! I am all for that. That is marvellous, but is it happening in every school in the country? Of course not. I have some brilliant engineering businesses which go into schools and inspire young people. They try to point young people in the right direction and show them that there are wonderful careers for them on their doorstep—international careers—but young people need more than a visit from such a company. They need proper face-to-face advice from people who will inspire them.

The businesses in Darlington to which I referred are recruiting senior engineers from Greece, Brazil and Turkey, because we are not producing the people to fill those senior roles. One reason for that is that people are not getting the right advice at the right age. I am not talking just about 16 and FE. I am talking about year 6 in primary school, before they take their options, so that they know that they have to take good science subjects and maths. I am glad to see the hon. Member for East Hampshire (Damian Hinds) agreeing with me. Such careers advice will not happen via Google. It needs to be face-to-face, inspiring advice.

I am fortunate to have in Darlington the Queen Elizabeth sixth-form college. I shall shamelessly plug the work of one woman, Stella Barnes, who provides first-class careers advice to young people there. I am sure that despite the pressures that it faces, the college will find the funding to keep Stella doing such fantastic work, but that is one woman and she can only do so much.

In the turbulent world that our young people are entering, job prospects are not certain, the costs of higher education are putting people off, and EMA no longer incentivises young people to stay on post-16. That applies not only to the at-risk, the vulnerable, the people who would not have a job if their mother had not organised something for them. It applies to all young people from all kinds of backgrounds. It is not just about the children of people on benefits. It is about people whose parents are in professional careers but who lack the wherewithal to open other doors—people like myself.

The biggest shame is that the Government have over-promised on what they will do. When they said that there would be an all-age careers service, people took them at their word. They thought that that meant the same for everybody and that it would be fair, but that is not what we will find. Adults can get face-to-face advice, because the Government rightly recognise that they need it, so why can young people not get it? They need it more than anyone else. They need someone to look them in the eye, work out their personal circumstances, listen to their hopes, dreams and aspirations, perhaps give them some if they do not have any, and work out the best thing for them. Otherwise, we are leaving young people stranded.

Debt Management Plans

Debate between Baroness Chapman of Darlington and Damian Hinds

Tuesday 5th July 2011 Westminster Hall

[Damian Hinds]

The hon. Gentleman makes a fine point. The “fair share” model works for various not-for-profit organisations and can be effective. We should foster and encourage that. A lot could be done with regulation in this area. I want to focus on a couple of measures that the hon. Member for Scunthorpe mentioned, which are relatively straightforward and would be effective.

The first is the banning of cold-calling canvassing for new business, and the second is the banning of up-front fees. The two together would make a big difference. On up-front fees, many people suspect that some operators in the market have a cash-flow model that recognises that they may not be around for ever. Those are not the sort of debt management companies that we want. There are responsible operators, and those are the ones that should be encouraged.

I want to make a final, brief point about the visibility of various debt management services. The Consumer Credit Counselling Service, citizens advice bureaux and others offer free advice services, and the internet is an important source of information for people these days. When people get round to looking into ways of solving their problems, they should be able to find those services easily. I hope that search engine providers, particularly Google, which to all intents and purposes is the search engine provider, will be encouraged to act.

[Mrs Jenny Chapman (Darlington) (Lab)]

I congratulate my hon. Friend the Member for Scunthorpe (Nic Dakin) on securing this debate. Will the hon. Member for East Hampshire (Damian Hinds) add to his list a ban on the sale or passing on of information about people to debt management companies? We have been concerned about that practice in the motor industry, with regard to insurance claims. Does he share my concern that the same practice takes place in debt management?

[Damian Hinds]

I do indeed. By definition, a ban on cold-calling would include the selling of lists and the sharing of data.

I conclude on the point about search engine marketing, and encourage search engine providers, as part of their corporate social responsibility agenda, to take a different view, so that rather than considering only the pay-per-click bid times the click-through rate, they consider what they can do to help people in some of the most difficult circumstances. I again congratulate the hon. Member for Scunthorpe on securing the debate.

Finance (No. 3) Bill

Debate between Baroness Chapman of Darlington and Damian Hinds

Monday 4th July 2011 Commons Chamber

[Mrs Chapman]

All those steps are very welcome, but they do not go very far at all in addressing the fundamental issue. The Competition Commission says that what the OFT wants to do is nothing like enough. I understand the hon. Gentleman’s intention: it is to give the Government a background against which they can decide not to support this new clause, but we are trying to force this issue to the fore and get something done about it. We are all for cross-party consensus—that is wonderful when it can be achieved—but what we actually want is something to be done. I hope the hon. Gentleman will therefore forgive Opposition Members if we are sometimes slightly intemperate in the way we express our views on this issue.

As I said when talking about my ten-minute rule Bill, for me the key issue is the advertising of these products, which is irresponsible. It might be argued that people are being given a choice, but people are not making that choice on value-for-money grounds. They are not shopping around. They are not thinking, “What’s the best product for me?” They are instead thinking, “What will get me an answer to my problem as quickly as possible, and who will say yes to me? I don’t want to go to the bank and be told ‘No’ or ‘You can’t have this but you can have something else and do you want to make an appointment to come back next week?’” These people have very immediate financial difficulties, and these products are deliberately targeted at them.

[Damian Hinds (East Hampshire) (Con)]

First, may I apologise for missing some of the earlier speeches?

I have a great deal of sympathy with much of what the hon. Lady has said, but the fact that these companies have high costs and in particular high marketing costs, and the fact that there is no evidence that consumers are making rational choices based on which is more or less expensive, suggests that taxation is not the answer to the problem. There may well be an answer to the problem, but hiking up taxes is almost certainly not it.

[Mrs Chapman]

The new clause does not only address taxation. The hon. Gentleman should read it thoroughly, as it talks about other measures too. I do not think there is any one measure alone that will address this problem; there will have to be a package of measures.

There is no real competition in this market, as there are only a few companies in it. On Friday my attention was drawn to a company operating in the north-east called Provident. I was very disturbed to hear that last Christmas Provident representatives were going door to door deliberately targeting single mothers—as members of political parties, we all know that can be done. Its representatives were knocking on doors just before Christmas, saying, “We can offer you £500 and you don’t have to pay it back until after Christmas.” They were saying it could be paid back in a number of easy payments, thus making it seem attractive and ordinary. That is completely exploitative, and it will happen again this year unless the Government do something about it; indeed, it will happen Christmas after Christmas after Christmas. This House should neither accept nor tolerate that.

All Opposition Members are big supporters of credit unions.

Consumer Credit Regulation

Debate between Baroness Chapman of Darlington and Damian Hinds

Tuesday 9th November 2010 Westminster Hall

[Damian Hinds]

I am sure the Minister has heard the question and made a note of it. What I will say about the growth fund is that of course, capitalising credit unions to expand their customer base has many positive aspects. Not all credit unions were fully geared up to make maximum use of some aspects of the growth fund, and particularly the speed of the growth fund.

I would also like to see other ways of further funds for lending going into credit unions. All of us, if we have not already done so, can open a savings account with a credit union. That is not a flippant point. We need to encourage more people at higher and middle rates of income to use credit unions as their place for savings, because then, of course, those savings become the source of loans to other people.

Credit unions do not yet exist on the critical scale at which there is mass awareness of the services available.

[Mrs Jenny Chapman (Darlington) (Lab)]

I particularly welcome the hon. Gentleman’s observation that this is not necessarily a party political issue and that there is support on both sides of the House for many of the elements in the Bill introduced by my hon. Friend the Member for Walthamstow (Stella Creasy). There is a renewed sense of urgency about the issue, perhaps more so among we newer Members who have come by a community-organising route and have seen at first hand the effects in our communities. One thing that prevents credit unions from expanding is that they are seen as operating in charity offices and church halls and they lack the high-street presence of organisations such as BrightHouse, which can spend a lot of money on marketing and targeting people. Integrating credit unions more with the Post Office would have given them that mainstream appeal and access in all communities.

[Damian Hinds]

I thank the hon. Lady profusely and will remunerate her suitably later for teeing me up for my next sentence. One of the problems for credit unions, apart from lack of awareness of them in some sections of the community, is that they lack a high-street network throughout the country. Marrying them with the Post Office offers amazing synergistic opportunities for both sides. It marries the financial expertise and product base of the credit unions with the presence and trusted brand of the Post Office. We talked earlier about trusted brands.