National Insurance Contributions (Secondary Class 1 Contributions) Bill

Baroness Monckton of Dallington Forest Excerpts

Committee stage
Wednesday 29th January 2025 Grand Committee

Moved by

[Baroness Monckton of Dallington Forest]

14: Clause 1, page 1, line 7, at end insert “or on the day after an impact assessment is published assessing the impact of the provisions in this section on persons who provide transport for children with special educational needs and disabilities, whichever is later”
Member’s explanatory statement
This amendment, and two others in the name of Baroness Monckton of Dallington Forest, would prevent commencement of this Act until an assessment of the impact of the policy on persons who provide transport for children with special educational needs and disabilities is published.

[Baroness Monckton of Dallington Forest (Con)]

My Lords, in moving Amendment 14, I will also speak to Amendment 27 in my name. I thank my noble friends Lady Neville-Rolfe and Lady Barran for their support.

These amendments would prevent commencement of this Act until an assessment of the impact of the policy on persons who provide transport for children with special educational needs is published. Those who provide transport for people with special educational needs provide a service that is very often not understood by those who are not in that position and do not have children who have a real problem getting to school. These companies that provide daily transport to children are now facing a rise in their employment costs. It is typical for drivers and their assistants to work for three and half hours a day, which brings them into this new threshold where the increased rate of employer national insurance will apply.

The sum of £515 million previously mentioned as being put aside for councils is to offset the national insurance contributions for their own employees. This sum would not offset the indirect costs of council services delivered by private providers. Councils have a statutory duty to provide these services. If private transport is no longer financially viable because of the new rules, the councils will have to re-tender thousands of contracts. I know at first hand, from my own experience of running a charity, how long it takes even to get a normal DBS check. We will be in a situation where some children will not be able to get to school until all these checks and balances have been done and the forms have been filled in.

This transport is an absolute lifeline—I know that is a hackneyed phrase—to parents. It enables them to continue working, as they do not have to drive the frequently very long distances that some of these children have to be taken to get to the nearest school that can accommodate their needs. Some parents who live near us in East Sussex told me of the enormous difference that it has made to them as a family. Before they had access to this transport, both parents worked, but one had to stop working in order to drive the child backwards and forwards to school. However, then they got access to the transport, and the father said to me that, for the first time, he did not have to worry about his child. He could go back to work and could become the person he was before he had a disabled child. That portion of his day spent in the office was absolutely invaluable to him.

My own daughter had somebody who drove her to school every day: Terry Heseltine. I spoke to him today because what I had not realised is that 90% of his work is spent driving children with acute and complex needs to school, along with an assistant. He said to me, “For many, this is the only way that they can get to school. Most of these parents do not have cars”. These children, who are often violent and display unruly behaviour, would have no other way of getting to school. We cannot let down this group of vulnerable people and their exhausted parents. These amendments are important because the increased cost of this policy on those who provide transport for children with special educational needs could result in job losses, reduced services and an unimaginable nightmare for these children and their families. I beg to move.

--- Later in debate ---

[Lord Livermore (Lab)]

My Lords, I am grateful to all noble Lords who contributed today. I have of course listened very carefully to all the points made.

I will address the amendments tabled by the noble Baronesses, Lady Monckton of Dallington Forest, Lady Neville-Rolfe and Lady Barran, and the right reverend Prelate the Bishop of Southwark about the impact of the Bill on persons who provide transport for children with special education needs and disabilities. I will endeavour to get the right reverend Prelate an answer to his letter as quickly as possible; I apologise to him for not having replied sooner.

The Government of course carefully consider the impact of their policies, including these changes to employer national insurance. As I noted previously, an assessment of the policy has already been published by HMRC in its tax information and impact note.

On the specific issue of the provision of transport for children with special educational needs and disabilities, the Government are committed to improving provision in mainstream state schools, while also ensuring that state special schools can cater to those with the most complex needs. At the Budget, the Government announced a £1 billion uplift in high-needs funding, and £740 million into creating more inclusive specialist places in mainstream schools and undertaking the adaptations that may be required in mainstream schools to make them more accessible. The aim is to reduce the cost of transport, because far too many children are being transported to other local authorities, over a large distance and time, as they cannot be educated locally.

There are several ways in which a local authority can fulfil its requirements to provide free school transport to eligible children, including those with special educational needs, disabilities or mobility problems. At the Budget and as part of the recent provisional local government finance settlement, the Government announced over £2 billion of new grant funding for local government in 2025-26. This includes £515 million to support councils with the increase in employer national insurance contributions.

This £515 million of additional funding has been determined based on a national assessment of the costs for directly employed staff across the public sector. However, this funding is unring-fenced, and it is for local authorities to determine how to use this funding across relevant services and responsibilities. This is part of an overall increase in additional grant funding for local authorities in 2025-26 of over £2 billion, resulting in an estimated 3.5% real-terms increase in core spending power.

Given the points I have set out, I respectfully ask noble Lords not to press their amendments.

[Baroness Monckton of Dallington Forest (Con)]

My Lords, I am grateful for all the thoughtful contributions to this debate, and I thank the Minister for his comments. I urge him to consider the amendments we have been debating and to understand the essential services provided by the SEND transport sector. It is wonderful that he is putting more money into the schools, but if these children cannot get there, it will not really work. However, for the moment, I beg leave to withdraw my amendment.

Amendment 14 withdrawn.