My Lords, we know that some campaign groups are actually targeting faith-based schools as part of a broader agenda. How many of the upheld objections were unrelated to religious selection criteria, and how many were upheld on minor administrative infringements? Are the significant time and resources used to respond to such objections justified in the light of those numbers?
As I said in my previous answer, many of the faults that were found related not to faith but to other issues. Church and faith schools make a significant contribution to our education system: 87% of faith schools are good or outstanding, compared with 82% of non-faith schools. Of course schools have to abide by the correct codes, but it is important to recognise the value that these schools add to our education system.
(8 years, 8 months ago)
Lords ChamberMy Lords, I support these three amendments. I do not wish to repeat what has already been said but the passion of the noble Lord, Lord Kirkwood, echoes in my heart because I, too, am deeply concerned by the impact these freezes will have on the poorest.
Most of us were delighted when the Chancellor of the Exchequer decided in the spending review that the national economic situation meant that we could, after all, as a nation afford not to make the previously determined cuts in tax credits. If this House had not voted the way it did, I presume he would not necessarily have been given the opportunity so to reassess in the light of the national economic situation. If the Bill is passed as it stands, the Chancellor has no option but to enact a freeze for the next four years.
While accepting that welfare spending must be controlled, we need to look very seriously at the impact on the poorest. I do not want to see the Chancellor’s hands tied to a freeze if the national economic situation continues to improve as forecast, or perhaps even more significantly. Suppose it does: who should be the beneficiaries? Surely, it should be the poorest. If the economic situation improves in 2017 and the Chancellor realises that actually, the nation could afford a slightly higher rate of child benefit or other benefits, that is what he should allow—not give it to people already perfectly well off because we earn enough. As the noble Lord, Lord Kirkwood, said, austerity, frankly, is not hitting large numbers of us. Surely, then, the Chancellor should value the freedom to once again say, “Well, we didn’t think we would be able to afford this but the national economic situation is better than expected so we are delighted to be able to offer a small—or perhaps large—amount of extra support for the well-being of children and the most needy in our country”. Does the Minister not think that would be a good position for the Chancellor to be in, rather than having to stick with a freeze without exception?
My Lords, I thank the noble Baronesses, Lady Sherlock and Lady Lister, and the noble Lord, Lord McKenzie, for these amendments. I will first set out why we believe a four-year freeze of certain social security benefits, child benefit and elements of working tax and child tax credits is necessary.
In total, measures to freeze benefits and tax credits are projected to contribute £3.5 billion of the £12 billion welfare savings the Government are committed to by 2019-20. The Government need to make these savings to reduce the deficit and to manage welfare spending. Spending on welfare increased by 54% in real terms between 1999 and 2010, and tax credit expenditure more than trebled over the same period. Despite the progress made in the last Parliament to increase incentives to work and reduce reliance on benefits, there is still more to do.
Some 7% of global expenditure on social protection is spent in the UK, despite the fact that the UK has only 1% of the world’s population. Between 2008 and 2015, average earnings rose by 12%, and the minimum wage increased by 17%. At the same time, benefits such as jobseekers’ allowance increased by 21% and the individual element of child tax credit rose by 33%. The benefit freeze will begin to reverse this trend. However, we are clear that we must continue to protect the most vulnerable. That is why we ensured that certain benefits are exempted from the freeze, such as pensioner benefits, benefits which contribute to the additional costs of disability and care, and statutory payments.
Concerns have been raised about the level of benefit rates after three years of 1% rises, to now be followed by four years of the freeze. Successive Governments have always sought to strike a balance between the needs of claimants and affordability, and I can reassure noble Lords that when introducing this freeze we have had due regard to these issues, but we believe we have struck a balance that protects certain key benefits and generates the savings I have set out.
There are no cash losers with this policy, and the continued growth in wages will help to mitigate the impact of the freeze for working families. The OBR expects wage growth to reach 3.9% by 2020. Around 30% of households will face a notional loss but, as I have said, the other things we are doing in the broader economy should go some way to mitigate it, and I will go through a couple of them in a second. We have also fully assessed the Bill’s impacts on equality and the wider budget meeting our obligations, as set out in the public sector equality duty.
The purpose of the amendments is to replace the freeze with a duty on the Secretary of State to review those benefits, having regard to inflation and the national economic situation. This Government’s overall approach is to give a level of certainty to taxpayers, employees and benefit claimants. As well as setting out the four-year freeze, we have also set out a clear plan to raise the national living wage to £9 an hour by 2020, to increase the tax-free personal allowance to £12,500 by the end of the decade and to double the free childcare available for working parents of 3 year-olds and 4 year-olds to 30 hours a week, which is worth £5,000 a year. The amendments would take away the certainty that we are attempting to implement, and for that reason we cannot support them.
The noble Baroness asked what happens after the four-year period.
(8 years, 8 months ago)
Lords ChamberMy friend, the right reverend Prelate the Bishop of St Albans, cannot be here this evening. Therefore, I will speak largely on his behalf about Amendment 101, tabled by the noble Lord, Lord MacKenzie.
In the run-up to the general election, the Prime Minister was quick to stress that,
“the most disabled should always be protected”.
He was, of course, quite right to do so. We might be operating in a time of limited resources but that does not negate our moral duty to ensure that the most severely disabled people in our society are protected from financial hardship. Those whom we cannot reasonably expect to support themselves financially should not be expected to shoulder the burden of austerity. They already face enough burdens of their own.
For example, motor neurone disease is a condition that progresses so rapidly and so violently that there is little time for contingency planning. Jobs are lost and circumstances change so quickly that those suffering from the disease are often forced into debt. In practice, this means ensuring that the most severely disabled people in the UK—those in the ESA support group—are protected from cuts such as those in the Bill. This, of course, is exactly what the Government promised to do in their manifesto in promising to exempt disability benefits from the freeze to working-age benefits.
I recognise that Her Majesty’s Government have opted to exempt the ESA support group component from the freeze, but that component forms less than a third of the total provision made to the support group through ESA. The basic rate of ESA has not been exempted, meaning that those in the ESA support group, just like those in ESA WRAG and on JSA, will lose more than £250 a year in real terms by 2020.
The amendment tabled by the noble Lord, Lord MacKenzie, is an attempt to rectify this situation with regard to those in the support group. I realise that it is not a simple amendment. The Government cannot exempt certain groups from the freeze to the basic rate, for then it would cease to be a basic rate. The amendment therefore seeks to compensate the freeze through an uprating of the ESA support group component. Should the Government desire a simpler method, a commitment to uprate the ESA support group component by around 3% plus CPI would negate most of the effect of the basic rate freeze, while preserving the integrity of the basic rate.
The amendment would simply protect the most vulnerable—those who will never be able to go back to work—from the impact of the benefits freeze. If the Government want to be taken seriously when they claim to be protecting the most vulnerable disabled people in our society from financial hardship, support for this amendment, or one like it, should be a bare minimum. I hope that the Minister will give the matter serious consideration.
My Lords, I have already set out why we believe the freeze of benefits is necessary so I will move directly to the amendments.
Amendment 101, tabled by the noble Lord, Lord MacKenzie, seeks to place into legislation a requirement for the support group component of employment and support allowance to be uprated by an additional amount above the amount it would otherwise be uprated by. This additional amount would be equal to the difference between the current main rate of employment and support allowance and that rate if it were uprated by inflation.
I understand the motivation behind the amendment, and the comments of the right reverend Prelate, but I will explain why we have included the personal allowance rate in the freeze. Personal allowance rates are aligned across all income-related benefits, including ESA, and are designed to provide a basic standard of living to those who are not in work but at a level that does not disincentivise moving into work. Those in the support group also already receive an additional amount, the support group component, which we have specifically exempted from the freeze. This additional amount is in recognition of the fact that this group of people is further from the labour market. In addition, many of those in the ESA support group who are being targeted with this amendment will be in receipt of disability living allowance or personal independence payment, which we have also exempted from the freeze. Again, these benefits are specifically aimed at contributing to the additional costs of disability, and will continue to increase in line with inflation. While I agree with the right reverend Prelate that we absolutely must provide suitable protections for disabled people, we do not support this amendment because the clause already sets out appropriate exemptions.
Amendment 97, tabled by the noble Baroness, Lady Pitkeathley, seeks to exempt carers from the freeze by ensuring that any of the relevant sums of working-age benefits are increased in line with inflation if they are claimed by persons who are regularly and substantially engaged in caring. As my noble friend and I have said, we share in and completely agree with the noble Baroness’s words about the great and vital contribution made by carers. That is why we have exempted carer’s allowance from the freeze, as well as carer’s premiums within other working-age benefits. We have ensured that carers are central to the Government’s reform to care and support, with strong rights for carers in the Care Act 2014. Since 2010, the rate of carer’s allowance has increased from £53.90 to £62.10 and we have further increased the earnings threshold for carers by 8%, to £110 a week net of certain expenses.
Amendments 98 and 99, tabled by the noble Baroness, Lady Lister, and the noble Lord, Lord Kirkwood, would remove the uprating freeze for child benefit which the Bill seeks to introduce. Further, Amendment 99 would instead place child benefit under a triple lock, meaning that it would rise by whichever was highest: the rise in prices or earnings, or 2.5% each year. This would go beyond existing legislation and create an unfunded spending commitment. The noble Baroness, Lady Lister, mentioned the CPAG research on the loss of value in child benefit. However, its methodology assumes that child benefit is uprated by RPI, which is obviously now an updated measure. Indeed, since 2008 child benefit has risen by more than 10%.
There is a parallel between Amendment 99 and the triple lock that the Government have in place for pensioners. In 2008, the basic state pension was at its lowest level relative to average earnings since the 1970s. The triple lock has turned this around and it is now one of the highest levels relative to average earnings in two decades. We believe it is right to continue to protect pensioners, who are often on fixed incomes and have paid into the system throughout their working lives. However, as I have said, it is important to make savings on welfare, including on child benefit. The freeze makes a contribution to forecast savings, given the annual spend on this benefit, so I am afraid that we cannot support these amendments.
The noble Baroness, Lady Sherlock, asked about a cumulative impact assessment. We have already provided detail on the impacts of the various measures and the Treasury published an extensive analysis alongside the Budget. A cumulative analysis for the Bill alone would take the measures out of the context of the wider Budget package, where analysis has shown that a typical family working full-time on the national living wage will be better off by the end of the Parliament.
I believe that we have ensured that we have in place protections for the most vulnerable, balanced against the need to make welfare savings. I once again thank noble Lords for bringing forward these amendments but we do not believe that they are necessary and I urge noble Lords to withdraw or not press them.
(8 years, 8 months ago)
Lords ChamberMy Lords, in the north-east I get to see apprentices in the car industry, the subsea industry, traditional industries such as stonemasonry, farming, and all kinds of sectors in schools. It is brilliant to be able to see them face to face, to meet them and talk to them. There are brilliant apprenticeships and we need to grow them. Therefore, the 3 million target is fantastic, but I have to say that where the Bill refers to,
“information about the progress made in the reporting period towards the apprenticeships target”,
which is simply the figure of 3 million, that does not give the information about the types of apprenticeship that there are. In the light of the previous comments, I add that in two particular manufacturing industries I went to there were fantastic apprenticeships with brilliant young men, but no young women at all. I am told that there have not been any. We need this kind of information to ensure that apprenticeships are of the quality and standard needed. Because of the lateness of the hour, I will stop at that.
My Lords, I will attempt to respond to various points, but again, due to the lateness of the hour, I will try to keep my remarks brief. Where I do not respond to points I will endeavour to get further information to noble Lords relatively quickly.
The Government are committed to reaching 3 million apprenticeship starts in England in 2020. Clause 2 will place a duty on the Secretary of State to report annually on progress towards meeting that target. The amendments that have been tabled would place additional reporting requirements on the Secretary of State to publish a range of information as part of the annual apprenticeship reporting requirement set out in the Bill.
(8 years, 8 months ago)
Lords ChamberIt is not that it is becoming more complex; it is becoming more individualised, which also means that it will be more responsive to individuals’ circumstances. It is not that complexity is increasing. It is actually that individuality and responsiveness to individuals’ circumstances are increasing.
All these amendments move us away from the key universal credit principle that we treat people as individuals and tailor their requirements based on their personal circumstances. They also take no account of the existing safeguards within the Welfare Reform Act 2012 and the Universal Credit Regulations 2013. We firmly believe that we need to be doing more rather than less to encourage and support all parents with young children to prepare for and look for work, ultimately improving their children’s life chances.
I hope your Lordships will forgive me if my intervention is incorrect—I am still learning the ways of this House. I asked what I thought was a very simple question: is there a willingness to go away and consider? I thank the Minister for all the information, which is extremely helpful, and I believe that individual tailoring is an absolutely proper and right way forward. What I am mystified by is the apparent unwillingness today to be prepared to go away and at least consider some of the concerns of many of us who are not driven by political stuff at all—we are just deeply, passionately concerned for the children of this nation—that you might have got some of it slightly wrong and it could be improved.
The Government certainly listen with extreme care to all the views expressed by noble Lords. A lot of the detail will be in regulations, so there will be opportunity, but I assure the right reverend Prelate that the views of this Committee are taken into account and considered.
I can confirm to the noble Lord that we will be implementing our manifesto commitments.
Will the Minister recognise that across the country, churches and other organisations reckon that they will be providing more help for holiday hunger this summer than ever before because of children going hungry during school holidays? Will she also recognise that there is a serious problem regionally and that we need to tackle this in the north more significantly than in the south?
I thank the right reverend Prelate for his question. He can be assured that we take extremely seriously the issues that he raised. I also pay tribute to the great work that the churches do in providing support to the people who need it most.