Childcare
Baroness Sherlock Excerpts(1 year, 11 months ago)
Lords ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Baroness Sherlock
To ask His Majesty’s Government what steps they are taking to ensure that parents can access the childcare they need in order to work.
The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)
My Lords, helping working families to take up and remain in work is a government priority. The majority of parents can access the childcare they need in order to work, thanks to the over £3.5 billion per year for the past three years that we have provided to support families with the costs of their childcare. We are aware that some government offers get less take-up; hence, the Government have introduced a £1.2 million marketing campaign to help raise awareness among parents.
Baroness Sherlock (Lab)
My Lords, the ONS recently reported the first sustained rise in 30 years in the number of women not in the labour market because they are taking care of family—and no wonder, when it costs £14,000 to put a two year-old into full-time childcare in England, which is two-thirds of median take-home pay. There are allegedly free places for younger children, but the Government do not pay enough to cover the costs, so providers are going out of business. Universal credit gives some help, but only if you can afford to pay up front and then claim back, which, of course, many cannot. So can the Minister see that, in modern Britain, childcare costs are rising twice as fast as wages? Businesses need staff; parents cannot afford to work. What are the Government doing about it?
Baroness Barran (Con)
I thank the noble Baroness for her question; the issue is very important and, as the noble Baroness knows, extremely complicated. We announced in July a number of measures that are under review to try to improve the supply of childcare and bring down the costs. My honourable friend the Minister for Children and Families is considering all of these actively at the moment.
Higher Education Reform
Baroness Sherlock Excerpts(2 years, 9 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Sherlock (Lab)
My Lords, in May 2019, the then Prime Minister, Theresa May, launched the report of the Augar review. That was a long time ago, and it feels like a very long time ago. I wish I could say that the time has been well used, but let us have a look at what has been put out in this report.
First, there are changes to student loans. From the academic year 2023-24, the interest rate on loans will be changed to RPI for everybody, which is interesting, because Ministers keep telling me that RPI is no longer an official statistic because of concerns over its methodology. I can only assume that, somehow, it is not good enough when you are paying money out to benefit recipients but it is fine when you are taking money away from students. If only the noble Lord, Lord Forsyth, were here, I think he would have something to say about that.
Secondly, it reduces the repayment threshold to £25,000 and increases the repayment term to 40 years—much of a working life. For those on the current loan scheme, the repayment threshold will stay at the current level until 2024-25, which, given the current inflation rate, is quite a bit of fiscal drag. The effect of these measures together is highly regressive, hitting the lowest earners the hardest.
Paul Johnson of the IFS said this about it:
“looked at from the point of view of progressivity, redistribution, winners and losers, the reforms look truly horrible. Low-to-middle-earning graduates could be made about £20,000 worse off over their lifetime by the changes; the highest earners could benefit by £25,000.”
The equality analysis published alongside the consultation document said that
“among new borrowers, the largest proportional increases in lifetime repayments will be from lower earners … by 174% for those in the 4th decile”.
Meanwhile,
“the highest lifetime earners among new borrowers will experience large decreases in lifetime repayments (down 26%)”.
Why have the Government chosen to reform the loan system in a way which so profoundly benefits higher earners and hits those on lower incomes?
If noble Lords are wondering what the attraction of this particular approach is, it is perhaps worth mentioning that, thanks to a quirk of government accounting rules, these changes make the public finances look quite a bit better, but only in the short term. The IFS says that it will take about £1 billion off the cost of the student loan scheme, but:
“We expect the budget deficit to fall by about £5 billion in 2023 as a result of the changes, with subsequent hits to the deficit further down the road as new loans accumulate less interest.”
It finishes, drily:
“This will please the Treasury.”
Indeed it will.
However, this will not please many people because the pain does not fall equally in other ways. The equality analysis says that women, disabled people, some ethnic minorities and those from certain regions are likely to face increased lifetime repayments. Men gain and women lose. On average, men will repay around £5,500 less and women will pay £6,600 more. The IFS notes a remarkable comment:
“the taxpayer cost of funding men’s student loans will actually increase as a result of the reform … the saving on women’s student loans alone is greater than the total at £1.6 billion.”
Women students are not only paying for the reduced cost to the Exchequer; they are paying for the men’s changes as well. The Minister will doubtless say that this discrimination is not intentional, it is just that women earn less. But the Government know that women earn less across their lifetime. So, having known that, can the Minister tell the House what consideration was given to the differential impact of these proposals before deciding on them?
The Government are also consulting on other measures, including reintroducing government controls over student numbers. But not just by a global figure; they are consulting on whether to control them by sector, provider, subject, level or even by mode of study. Are the Government planning to do all of them? Might they do them all? Could the Government conceive of a world in which the Secretary of State could decide that physics is in but history is out? Could he close down the music department at Lindchester University completely? Could he decree that all computing is going to be done in FE from now on? This may not be their plan, but there is no way to tell from the documents published what their plan is. So could the Government give the House some hints?
They are also consulting on minimum eligibility requirements, including an option of requiring level 4 or above—that is a grade C in old money—in maths and English at GCSE. I found it quite hard to work out the numbers affected, because the tables in the equality analysis are quite confusing, but the Minister may be able to shed some light on that. I am pretty sure this will have a differential effect with regard to region and disadvantage.
It is not just about access to university; it is about access to the loan book. The Minister can confirm that presumably a student whose parents—or who themselves—could pay fees upfront has no problem, but then what happens to the more than half of pupils eligible for free school meals who will leave education without GCSE maths and English? Can the Minister tell the House what work has been done to look at the effect of such a plan on poorer children and young people from deprived areas?
There is also a proposal to limit funding for foundation years—and yes, once again this has differential effects. The equality analysis says that
“mature students and black, Asian and mixed/other ethnic minority groups … may be at greater risk of reduced access to HE and choice of provision”.
This is all really very disappointing. Augar was launched amid concerns about fairness and affordability for students, but those are clearly not the drivers at the heart of this response. The loan reforms are regressive and will hit lower-earning graduates. Rather than focusing on raising standards in schools and in HE, they risk penalising those who already find it hardest to get on through education.
Meanwhile, there is nothing on living costs for students, nothing to boost efforts on widening participation and nothing on the timing of admissions—except after a very big think they have decided not to do anything at all about post-qualification admissions. The consultation on the lifelong learning entitlement is still really vague. There is quite a lot on the how but not very much on the what, and certainly not on the why.
We have waited a thousand days for a response to Augar. That is roughly the length of an undergraduate degree, I reckon—you could probably do a PhD in that time; it is pretty much three years. After all that time, where is the strategic plan? Where is the vision for a strong, diverse higher education system that could help all of our young people and students to fulfil their potential? This feels like a missed opportunity. I hope the Minister can persuade me otherwise.
Lord Addington (LD)
My Lords, this is a very odd Statement because it suggests one or two nice things but does not really give us much detail. As the noble Baroness has just pointed out, the noble Lord, Lord Forsyth, is missed on this one. His intellectually honest toe-caps have gone into the ribs of many of us here and the Government Front Bench has actually felt them on many an occasion. A student finance system that celebrates going from 23% repayment to maybe half is a weird thing. Why do we still persist with this loan system? It is seen to be financially failing—unless creating a form of junk bond at the end of it is the aim. There will be not quite so much junk; that would seem to be about the essence of it.
If we are looking at how we get further education better into the system by giving better bonuses for lifelong learning—a suggestion of something that might be better in the future—we have to get people to go on the courses. What are we doing about careers guidance that would improve what people know about this? The first thing you will have to do is to train teachers, who are, let us face it, predominantly graduates, and we all know that what we did is right—if you do not come from that group, then you are very much in a minority—as we “stick to nurse”. Where is the training to make sure teachers are giving the right information to people or at least stand half a chance of so doing?
This has not got any easier with the introduction of T-levels and the removal of BTECs, which provided a series of fairly established ways of finding your way into higher education and the level 4 and 5 qualifications which are mentioned. We need some clear guidance to get this through and see how they are going to all tag in together. At the moment, I would say that it is an optimistic mess. We are not quite sure what the Government are expecting. It is going to be better, and it just might be that, after my entire lifetime, in relation to people at levels 4 and 5—I think it is technician-level qualification—we might be starting to address that, but we are doing it in a very chaotic way. The paths into education have fundamentally changed over the last couple of years, and they have changed in an incoherent manner.
To come to the last point, which the noble Baroness also touched on, if we have a special educational needs review taking place, why are we putting in a requirement for English and maths, which are the things that certainly the group I come from—that is, dyslexics—find difficult? It is 10% of the population; stick in dyscalculia, and that is another 3%, and those are conservative figures. Why are we making it so much more difficult for this group to get on to that pathway? When it comes to adult entrants into education, we are getting rid of BTECs, which were the way in, and we are saying that people have to have two A-levels. If you want later entrants—if you want entrants after having done, say, a level 4 course—why are we putting this in? It does not make any sense. Can we have some coherence about this?
Reading this as it stands, the Equality Act might have quite a lot to say about it. I have mentioned only two groups; others are available. Can we get some coherence around this? At the moment, the Government have waved a few ideas at us. The repayment structure may be slightly better for the Treasury, but I do not think it makes much difference to anybody else. Can we please hear what the Government are really about? If they are going to limit the amount of money we waste on the repayment structure, they have set themselves a very unambitious target.
Baroness Barran (Con)
There is absolutely no intention to exclude at all. The department is heavily focused on trying to improve outcomes for pupils with special educational needs and the noble Lord will be aware of the enormous range of outcomes depending on which school a child with the same disability or special need goes to. We want to equalise those, so it should make no difference where a child goes to school in terms of their outcomes.
If I may continue, the noble Baroness questioned what we were doing in relation to foundation years. I did not quite follow her argument. We are consulting on reducing the maximum fee and loan limits for foundation years, from the current just over £9,000 to £5,197, and that is to bring it in line to be the same amount as an access to a higher education diploma. We hope it will make those foundation years—which are an important access route for those who may be more disadvantaged to get into higher education or potentially for mature students—more accessible.
Baroness Sherlock (Lab)
The Minister did not follow my argument. Maybe when she reads Hansard, she will see that all I did was to quote from the equality analysis that her own department produced to accompany the proposals, to show that it could have a differential effect on different groups.
Baroness Barran (Con)
Hopefully there will be a less differential effect than there is currently.
Baroness Sherlock (Lab)
No, I am sorry—I do not want to delay the House—but if she could actually read the equality analysis, it said that, as a direct result of the reduction in the foundation years loan, if providers found they could no longer fund and provide those courses at the lower rate, it could reduce access to higher education. It is there in the equality analysis.
Baroness Barran (Con)
I thank the noble Baroness for clarifying that.
Both the noble Baroness and the noble Lord questioned whether there was a strategy and a plan behind this. I am impressed, but not surprised, that the noble Baroness can do a PhD in 1,000 days. I will, if I may, try to set out the wider context a little. Our clear ambition is that students should succeed and achieve their potential. We are doing that in a number of ways. The first is by expanding the choices that we are offering them—for example, by expanding the higher technical qualifications, offering modular learning options and introducing T-levels, as well as the existing qualifications. We are expanding choice.
We are investing very substantially in higher education: £900 million pounds in the next three years, in addition to the £2.8 million that we have announced for further education, and the recent settlement for schools, as well as introducing a specific scholarship option for high-achieving disadvantaged students, so that they too can realise their potential. A great deal of work is going on, led by the Office for Students, on the quality of degrees.
On the noble Baroness’s point on student number caps, these approaches have been used in the past. I think our real aim is to identify those courses with very high drop-out rates or very poor graduate progression outcomes, and make sure that those are limited, but in no way to try to affect the more successful and higher-quality courses.
Our bottom line is that we want to maximise and continue to build on the successes in offering opportunity to students. Students from disadvantaged backgrounds are 82% more likely to go to university today than in 2010. We want to build on that and on the increase in students from black, Asian and minority ethnic communities going to university, in making sure that this country offers opportunity to all.
Capita: Turing Scheme Contract
Baroness Sherlock Excerpts(2 years, 10 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Barran (Con)
I can only repeat for the noble Lord that funding has been made available this year for over 41,000 placements. I appreciate that they are not all comparable in scale to the previous ones but 41,000 young people will access this scheme, compared to 16,596 under Erasmus. I leave the House to judge.
Baroness Sherlock (Lab)
My Lords, the Minister is talking about how well the Turing scheme started. She omitted to tell the House that the British Council in fact set the scheme up and ran it for the first year of its operation, having previously run Erasmus+. It has absolutely unparalleled international contacts and networks, and an understanding of student exchange. Is the Minister remotely worried that it has taken one cut in funding after another? Does she have any reservations about prioritising short-term savings over supporting a major public institution, which is part of our soft power around the world?
Baroness Barran (Con)
The noble Baroness is absolutely right to pick me up on not having acknowledged the British Council’s role in the set-up of the scheme. We are very grateful to it, as we are for the way that it and the new provider are working together to ensure a seamless transition. The international network is less relevant to this contract because it is about grant administration. It is up to the institutions participating in the scheme to make those international links.
Disabled Students’ Allowance Scheme
Baroness Sherlock Excerpts(3 years ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Barran (Con)
My noble friend will be aware that changes have been made to how the allowance works. There will be a single annual allowance of £25,000, which will replace four separate allowances. Our aim is that it will be simpler and more flexible. When we did the equality impact assessment we found that, over three years, four students out of about 70,000 would be disadvantaged by this but that visually and hearing-impaired students in particular would have much flexibility about how they used the resource available to them.
Baroness Sherlock (Lab)
My Lords, I think the Government reformed DSA only last year, but the official evaluation quoted by the Commons Library found that only 55% of those getting DSA agreed that the support they received met all their needs. The really interesting thing was when they were asked whether the DSA enabled them to participate more fully in their course than they would be able to otherwise, only two-thirds said yes. I think that means that it is better than nothing. Given that we are spending £120 million a year on this, does the Minister think that perhaps a more fundamental review is needed?
Baroness Barran (Con)
I will look again at the research to which the noble Baroness refers, but, putting it another way, each student has a right to up to £25,000 a year. The average DSA—I appreciate it is the average and that there will be extremes at either end—is just below £2,000, so there is clearly no financial limit on students getting the support they need and we are absolutely committed to them receiving it.
Professor Kathleen Stock: Resignation
Baroness Sherlock Excerpts(3 years, 1 month ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Barran (Con)
The noble Baroness is absolutely right. The Government have been crystal clear about their view on these issues. We have heard today about the investigation on the part of the Office for Students, which will, I am sure, cause other university leaders to reflect. Perhaps your Lordships might consider the number of amendments to the Bill, when it comes to your Lordships’ House.
Baroness Sherlock (Lab)
My Lords, the Bill that the Minister has just mentioned proposes to appoint a new free speech director in the Office for Students. For someone to be able to intervene in sensitive areas, it is really important that they have the trust of all sides across the sector. The Minister will be aware that, when the chair was appointed, this triggered the intervention of the Commissioner for Public Appointments, which ended up appointing someone who still takes the government whip in this House, which has caused some concern. Can she reassure the House that, when they come to appoint a new chief executive and this director, the appointment process will be fair and transparent?
Baroness Barran (Con)
I reassure the noble Baroness that the appointment, like all processes, will follow the public appointments procedures, which I hope will have the confidence of every Member of the House.
Skills and Post-16 Education Bill [HL]
Baroness Sherlock ExcerptsThursday 21st October 2021
(3 years, 2 months ago)
Lords ChamberRead Full debate Skills and Post-16 Education Act 2022 View all Skills and Post-16 Education Act 2022 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 5-R-II Second marshalled list for Report - (14 Oct 2021)
Baroness Bennett of Manor Castle (GP)
My Lords, I slightly unexpectedly find myself to be the first person to speak to Amendment 40 in the name of the noble Lord, Lord Watson of Invergowrie, also signed by the noble Lord, Lord Storey, and me. Amendment 45A calls for a review to look at the issues around a restriction on allowing people to study at a level below that which they already possess. Amendment 40 goes further in removing restrictions.
I would have thought that naturally the Conservative position would be a belief that the person best placed to decide their best course of study would be the individual concerned rather than the state. This is a question of individual choice, about people knowing best their own situation. Therefore, while I very much support Amendment 45A, which at least calls for a review, I would go back to the more fundamental change in Amendment 40.
I am also in favour of Amendment 36 in the name of the noble Lord, Lord Storey. Education is a public good. We hear a lot of talk about investment for levelling up. Well, investment in people is the most fundamental investment of all. It is flexible, it enables people to make choices for themselves. A new or improved railway line or better school facilities are there and accessible to people, but people making their own choices is what investment in education is all about.
I am also in favour of Amendment 48, not yet addressed by the noble Baroness, Lady Sherlock. I will leave her to fully explain this, but it is worth stressing that what does not get measured and focused on does not get funded or supported. That is the principle behind that amendment.
Baroness Sherlock (Lab)
My Lords, as this is my first speech on Report, I welcome the noble Baroness, Lady Barran, to her new ministerial role, and place on record my thanks to the noble Baroness, Lady Berridge, for her hard work on the Bill and her openness and willingness to engage with those of us on this side.
I speak specifically to the government amendments in this group. My noble friend Lady Wilcox will talk about the others in this group. We would have preferred them to be de-grouped, but time is short. However, the Government were planning to bring back for Report detailed amendments on the lifelong loan entitlement. Since they have now decided not to do that, we are left with several questions which I must ask. I apologise for doing so on Report, but we have not had an opportunity to do so otherwise.
In Committee, the Government tabled some amendments which were presented as providing some of the wiring in the basement of higher education that would be needed when Ministers unveiled their renovation plans in the form of the LLE. However, since those plans must wait until another day and, we are told, until more primary legislation, because Ministers want to wait for the consultation first, we are left with some big questions. One obvious question is: when will the consultation happen? Indeed, why is it not already out there? What is holding it up?
Ministers have brought back some parts of the wiring amendments on Report. The LLE is meant to cover courses and modules in FE and HE. Clause 14 amends the Teaching and Higher Education Act to allow for the funding of courses in FE and modules in FE and HE, a lifetime funding limit and for funding not just for an academic year. Clause 15 amends HERA to change the definition of a “higher education course” to make it clear that the regulatory regime applies to modules. Government Amendment 39 defines what a course and a module are. However, at the risk of being nerdy, I point out that the Government have not brought back the parts of an amendment that they tabled in Committee which required the Office for Students to specify fee limits for modules as well as courses. We are told offline that the Government will provide for modular fee limits after the consultation. Will that require primary legislation? Does any other aspect of the LLE require primary legislation? If so, can we have a timescale for it? If not, can the Minister say how and when Parliament will have a full debate on the shape and scope of the LLE absent primary legislation?
Where does that leave us in the gap between the Bill taking effect and the new regime being brought forward? If THEA will now permit student loan funding to cover modules which are not taken as part of a full course, does that mean that a provider could do that now but with no fee limits, or would that require regulations to be made, perhaps under THEA? If so, can the Minister assure the House that no such regulations will be brought forward ahead of the debate on the primary legislation promised to enable LLE?
I have three other questions. First, does the same definition of a module in the Bill, as it will be amended, apply for all purposes—funding and regulation—in both HERA and THEA? I ask because Clause 15 as amended by government Amendment 39 offers a definition of a module, which I mentioned in Committee. However, new subsection (1)(e) in Clause 14(1) provides that regulations under Section 28A of HERA may prescribe the meaning of “module” in relation to HE or FE. Can the Minister clarify that distinction? Secondly, on funding, irrespective of how LLE develops, does it mean that a module can be funded via the student loan book only if it is part of a full course? In other words, would the Bill as amended exclude a module which was not part of a qualification?
Baroness Bennett of Manor Castle (GP)
My Lords, I rise with great pleasure to offer my support to Amendment 45 in the name of the right reverend Prelate the Bishop of Durham, to which I have attached my name. It is, in a way, the reverse of Amendment 63: Amendment 45 says that adult learners should be able to get universal credit; Amendment 63 says that you should be able to become an adult learner while on universal credit. I am not sure which is the best way round, but I am not sure that it matters or will make much practical difference. Both the right reverend Prelate and the noble Lord, Lord Storey, have clearly outlined the Kafkaesque complications that arise, and the unreasonable unintended traps people can find themselves in when they seek to study and find that the system simply does not allow them to.
I want to come from the other point of view very briefly and think about the overall good of the country. As I was contemplating these amendments, I thought back to hearing an economist talk about how, slightly counterintuitively, having a very short period between people becoming unemployed and finding a new job might not be the best thing, because if you have very low levels of unemployment benefits, as we do in the UK compared to many continental countries, people have to grab the first job they can secure—the first job that comes along. That means that you get an awful lot of square pegs in round holes. You get people who are not best for the job. They are not good for the employer and it is not good for them to be in a job for which they are not suited. If you have a longer period, people are able to assess and improve their skills and then find the right job, stay in that job for longer, advance in it and make real progress. We need to move towards a system that allows that to happen. When we talk about the economy, we talk about how we can solve our productivity problem. These are the base issues that we need to think about. Amendments 45 and 63 address them.
On Amendment 62, I want to offer the Green group’s support. The noble Lord, Lord Aberdare, said nearly everything I was going to say, so I am not going repeat it. It was reminiscent of some of the reports you hear of the green homes grant and employers struggling to get paid. If we are talking about small employers, their cash flow can become a serious problem.
I note one figure that says that the north-east—the region with the highest unemployment in England—is the area with the lowest rate of take up of Kickstart. That is obviously a concern, and it should be looked at in a review, particularly in the light of the Government’s levelling-up agenda.
Baroness Sherlock (Lab)
My Lords, I am grateful to the right reverend Prelate the Bishop of Durham and all noble Lords who have spoken. In Committee, we had a good debate about universal credit and the various ways in which people are discouraged by the rules from getting the skills that they need. I think the issue is that government policy is not properly joined up. We need to have skills, employment and social security policy fully aligned to make this work.
What is going wrong? I suspect that, at heart, it is an issue of departmental responsibility. DfE basically wants people to get training to increase their skills so that they can engage in productive, sustainable work, but most people cannot afford to train or retrain without financial support. I suspect DfE would quite like them to be able to get benefits while they do it. However, DWP does not think its benefit system is there to support students in education and training; it thinks that is DfE’s job. In general, that works. Most students are supported by loans or grants, and a lot of people on universal credit want to get back into work and universal credit supports them while they do. But there are clearly people who may struggle to get back into sustainable jobs unless they increase, update or change their skills, and it is likely that there will be more of them in the future than there have been in the past.
In Committee, the right reverend Prelate the Bishop of Durham and other noble Lords identified a number of barriers that get in the way of people wanting to do that. The Minister’s defence was basically twofold. She said, first, that DfE and DWP are working together on it and there is a trial under way for six months. She said that there is flexibility on conditionality, so that if you get universal credit and are part of the intensive work search scheme, you can study full time for 12 weeks, with boot camps and so on—the lot.
Secondly, she said that the benefit system may not be there for education and training for most people, but some people can get help. The Minister mentioned Regulation 14 of the Universal Credit Regulations 2013. I went back and refreshed my memory of that regulation. It lists the exceptions, but the only exceptions are young people doing A-levels or the like who are not living with their parents, those who have kids and some disabled people with limited capacity for work. As I read on—the Minister can correct me—I thought that all Regulation 14 does is remove the blanket requirement that you must not be in education to qualify for universal credit at all. I do not think it stops people—even in those groups—having conditionality requirements placed on them in the way that the right reverend Prelate the Bishop of Durham described, which might make it impossible for them to take on a training course. Can the Minister clarify that?
It is really quite hard to work out who can get universal credit for training, at what level and where. To that end, can the Minister tell the House whether any or all people wishing to carry out study necessary for a course leading to the lifetime skills guarantee could get universal credit while they do it, as Amendment 63 suggests? If not, how should they support themselves while they do that?
Amendment 45 from the right reverend Prelate the Bishop of Durham makes a broader point about the needs of people who are unemployed and need training to get secure, sustainable employment. There is a balance here. The benefits system is not there to fund everybody wanting to retrain, but this amendment could pick up some of those people who are long-term unemployed or may have gone from one low-paid, insecure job to another, perhaps with periods on benefits in between. Might not they and the taxpayer be better served if they could afford to get trained for a secure and sustainable career? How could they be helped under the Government’s current approach?
I turn now to Amendment 62, which would require the Government to reconsider how long Kickstart runs and who is eligible for it. When we debated Kickstart in Committee on 19 July, the Minister, the noble Baroness, Lady Penn, said:
“I cannot say that we will extend the duration of the Kickstart scheme or change its eligibility”.—[Official Report, 19/7/21; col. 103.]
A summer is a long time in politics because, as we have heard, a Written Ministerial Statement has now announced that Kickstart is running until the end of March. Who knows? By the time we get to Third Reading, maybe eligibility will have been reviewed as well—you never know.
I have a sneaking suspicion that the decision to extend the timescale was driven less by the rhetorical powers of noble Lords—marvellous though those are—and rather more by the fact that Kickstart is nowhere near hitting its targets. There were meant to be 250,000 placements by December. The latest figures I could find were in a Written Answer to my noble friend Lady Wilcox on 21 September in which the noble Baroness, Lady Stedman-Scott, said that 69,000 young people had started Kickstart jobs as of 8 September. Does the Minister have more recent figures? That Answer also said that more than 281,000 jobs had been approved. If 281,000 jobs have been approved and only 69,000 people have started work, that is worse.
The regional position, raised by the noble Baroness, Lady Bennett, is really significant. I have raised the positions of the north and north-east before—not just because I live in Durham—but that Written Answer said that in the whole north-east of England only 3,170 people had started Kickstart jobs. Something is going wrong.
Can the Minister tell the House what the Government are doing to rescue this scheme? In particular, why is there this lag between jobs created and jobs filled? What is happening to get young people into these jobs? Do the Government expect to meet their 250,000 target by December, March or another date? I look forward to the Minister’s reply.
Baroness Chisholm of Owlpen (Con)
My Lords, I thank the right reverend Prelate, the noble Lords, Lord Storey and Lord Aberdare, and the noble Baronesses, Lady Bennett of Manor Castle and Lady Sherlock, for taking part.
Amendments 45 and 63 from the right reverend Prelate the Bishop of Durham and the noble Lord, Lord Storey, broadly seek to enable individuals studying at level 3 and below to claim universal credit—an issue debated at some length in Committee. It is of course vital that students feel supported and have the confidence to come forward to upskill. Where we differ is in how that support is financed.
As the noble Baroness, Lady Sherlock, talked about, there should be a joined-up approach between the Department for Education and the DWP. Important work is already under way on this subject, as she mentioned. Officials at the Department for Education and the Department for Work and Pensions are working closely together to help address and mitigate the barriers to unemployed adults taking advantage of our skills offer.
There is a new DWP train and progress initiative aimed at increasing access to training opportunities for claimants. As part of this, in April 2021 a temporary six-month extension to the flexibility offered by universal credit conditionality was announced. As a result of this change, adults who claim universal credit and are part of the intensive work search programme can now undertake work-related full-time training for up to 12 weeks, or up to 16 weeks as part of a skills boot camp in England. This builds on the eight weeks for which claimants were already able to train full-time. I am pleased to inform your Lordships that this flexibility has now been extended to run through to the end of April 2022. These measures are truly helping to ensure that UC claimants are supported to access training and skills that will improve their ability to gain good, stable and well-paid jobs.
Baroness Garden of Frognal (LD)
My Lords, I added my name to the amendment of the noble Lord, Lord Lucas, which is self-explanatory, in a way. The Office for Students must have the powers to enforce its policies on student support and mental health and well-being. We must do our best to ensure that no student feels that suicide is the only way ahead. I have three student grandsons at different universities, and last year bore no relation whatever to the undergraduate experience of the past. As the noble Lord, Lord Adonis, has said, the recent Covid measures meant that many students had a lonely year, with obvious welfare implications. Their welfare is surely of the utmost importance and should be one of the factors that is taken into account for the purpose of assessing universities.
Baroness Sherlock (Lab)
My Lords, I thank the noble Lord, Lord Lucas, for introducing his Amendment 47. I will comment on that before moving on to my Amendment 48 in this group. Even before the pandemic hit, health and welfare support systems in higher education were experiencing unprecedented demand. More students need more help with problems of increasing complexity. A DfE report in June, Student Mental Health and Wellbeing, found that almost all higher education institutions have been devoting more resources to supporting student mental health over the past five years but, in many cases, were still struggling to meet demand. The pandemic has exacerbated that considerably, as a number of noble Lords have mentioned, so I will not rehearse that.
It will be interesting to hear the Minister’s answer to the noble Lord, Lord Lucas, and others on what the OfS can and does do about this. From memory, its new criteria on quality and standards relate to academic support only, rather than to specific non-academic support, but the Minister can explain how the OfS can otherwise work with universities on this.
It has offered some money, of course. It offered £6 million for innovative mental health support projects, although, when I looked at the small print, I found that half of that had to come from the providers doing the work. There are bits of money from outside. The noble Lord, Lord Parkinson of Whitley Bay, said recently in a Written Answer:
“As part of the mental health recovery action plan, the government has provided an additional £13 million to ensure that young adults aged 18 to 25, including university students, are supported with tailored mental health services.”
That is really good. I thought, “Hang on; is that all 18 to 25 year-olds?” At a rough guess that gives about £2.50 each, which may not go very far. I wonder whether the Minister thinks enough resources are going to support services in higher education. If not, do they need more external support or should this be coming from fee income?
The second issue is that, realistically, pastoral care in higher education institutions can only ever be a first line of support. It is important that the NHS is there for students who need more than that kind of help. I spoke this week to a senior person from an institution that takes the mental health of students very seriously, and she spoke of being left trying to support suicidal and seriously mentally ill students herself, because there were no mental health beds available and the local community team had little to offer, because it was so thinly stretched. I have also been told about a lack of inpatient beds or even outpatient support for students with severe eating disorders, leaving them with nowhere to go for help. I ask the Minister whether the DfE is working with the Department of Health to ensure that their services dovetail, so that there is adequate support in local NHS services for those students who need more help than university pastoral care can offer.
Amendment 48 in my name seeks to ensure that the way the Office for Students regulates higher education does not jeopardise the goal of widening participation. Noble Lords know that the OfS applies a series of conditions for a higher education institution to be registered, labelled A to E. The most hotly debated are the B conditions, which focus on quality and standards, and especially B3, which states:
“The provider must deliver successful outcomes for all of its students,”
which I always thought was rather ambitious, but they are tested against numerical measures.
The OfS has run two consultations in the last year and is about to start a third, which is specifically on the new metrics for student outcomes. They will presumably, although not necessarily, relate to the current metrics, which are about student continuation, completion rates of degrees and graduate careers. These metrics are controversial, because many in the sector worry that the Government are abandoning contextualisation in setting standards for higher education institutions. It is funny to push back on the noble Lord, Lord Lucas: to declare that everyone should be treated the same does not allow for there clearly being differences in student outcomes between groups that reflect prior experiences, advantages or current circumstances, rather than academic ability.
To take one simple example, we know from the official figures that mature students have lower completion rates. There can be perfectly good reasons for that, which may not relate to things in the gift of the institution at which they study. We would not want institutions that recruit more mature students to find that their outcome measure was not as good and then be deterred from doing so. That would be ironic for a Bill that is supposed to promote learning in later life and part-time study.
I raised this issue in Committee but I am sorry to say that the Minister said very little and really, I got no comment at all on it. The only way I could think of raising it was to table a specific amendment to say that the OfS could not measure outcomes in a way that could jeopardise widening participation for students from disadvantaged and underrepresented groups.
Clause 17(7) says that the OfS does not have to publish different minimum levels in relation to different outcomes by, for example, student characteristics, type of institution or course. That does not mean that the OfS has to apply flat standards across the board, but it clears the ground for it to do so at will. Many people in the sector worry that that might penalise institutions that serve disadvantaged groups or areas, or even deter outreach activity. Section 2 of HERA means that the OfS has to apply some proportionality, and therefore contextualisation, to any assessment, but can the Minister tell the House how it can do that fairly without any benchmarking? Because I got nothing in Committee, I am really hopeful that the Minister can at least give the House some assurance that the OfS should judge quality with regard to the impact on disadvantaged and underrepresented students. I hope she can reassure us on that front.
Baroness Barran (Con)
My Lords, I am grateful for the opportunity to speak to our measures on the Office for Students’ quality assessment. Section 23 of the Higher Education Research Act 2017, which relates to the assessment of quality of higher education provided by registered providers, currently places no restrictions or stipulations on how the OfS might make an assessment of quality or standards.
As the noble Baroness, Lady Sherlock, pointed out, Clause 17 of the Bill provides much-needed clarity. It puts beyond doubt the ability of the OfS to determine minimum expected levels of student outcomes. These levels would be taken into account alongside many other factors, such as the context in which a provider operates, when the OfS makes its overall and well-rounded assessment of quality.
Turning to Amendment 48 in the name of the noble Baroness, I am grateful for the opportunity to discuss widening participation and access in higher education. Equality of opportunity for young people across the country is one of the Government’s highest priorities. Access to higher education should be based on a student’s attainment and their ability to succeed, rather than their background.
The latest figures show that we have made real progress on access to higher education, with a record 24% of disadvantaged 18 year-olds entering higher education in 2020. Disadvantaged 18-year-olds were proportionally 80% more likely to enter higher education as a full-time undergraduate in 2020 than in 2009.
I reassure the noble Baroness and the House that when the OfS exercises any of its functions, it already must have regard to the need to promote equality of opportunity in connection with access to and participation in higher education. That duty applies when the OfS is looking at how disadvantaged students and traditionally underrepresented groups are supported and what they go on to achieve. It includes access, successful participation, outcomes and progression to employment or further study.
As I have set out, the minimum expected levels of student outcomes will form only part of the overall context as the OfS makes rounded judgments, as it is required to do under its regulatory framework. The OfS has a public law obligation to consider wider factors which could include, among other things, the characteristics of a provider’s students where appropriate. In reaching any final judgment, the OfS will balance contextual factors, proportionality and the need to protect students from low quality, including weak outcomes. Section 2 of the Higher Education and Research Act is clear that:
“In performing its functions, the OfS must have regard to … the need to promote equality of opportunity in connection with access to and participation in higher education provided by English higher education providers”.
The OfS is also subject to the public sector equality duty. Both will apply to this measure.
Amendment 47 is in the name of my noble friend Lord Lucas. Sadly, I echo his reflections on his conversations in Cardiff many years ago. I talked very recently to school leaders who also shared with me stories about students of theirs who have attempted suicide or, sadly, taken their own lives over the last 18 months. I thank my noble friend for raising this important issue both in Committee and again today. His amendment seeks to add the mental health and well-being support given to students to the outcomes against which the quality of higher education may be assessed by the Office for Students. I reassure him that the Office for Students already has a strong presence in the student mental health agenda, with significant levers in this area.
The OfS provides funding, support and guidance to higher education providers to ensure they provide appropriate mental health support for their students. As it stands, the OfS believes that further regulation would not be beneficial in a sector with a diverse range of suppliers and an equally diverse range of students. However, I reassure my noble friend that existing OfS powers under the Higher Education and Research Act 2017 are already flexible enough to allow it to impose a condition of registration relating to mental health, if it felt it necessary to do so.
We continue to work closely with the higher education sector to promote effective practice. The sector as a whole has established the overarching Stepchange: Mentally Healthy Universities framework, which is now complemented by the recently launched University Mental Health Charter programme and award scheme. The Government endorse this approach, including setting a clear ambition for all higher education providers to join the programme within the next five years. We also recognise the devastating effect that suicide has. A range of crucial prevention work and the promotion of effective practice are taking place across the higher education sector. We expect all universities to engage actively in this and deal sensitively if a tragedy occurs.
The Minister of State for Higher and Further Education, Minister Donelan, chaired a new round table on suicide prevention with Universities UK in June. The round table highlighted the importance of adopting and embedding the Suicide-Safer Universities framework and promoted good practice in the sector, helping to make sure that students are well supported during their time at university. The outputs include more regular analysis of student suicide data by ONS, including risk factors, which is central to informing preventive action, and the OfS publication of a new topic briefing, setting out approaches that universities and colleges can take to help prevent suicide among students.
The noble Baroness, Lady Sherlock, asked where this sits as a priority for government. She will not be surprised to hear that it is a key priority. I mentioned the round table that my right honourable friend the Minister held recently, but she has also written to vice-chancellors on numerous occasions, outlining that student welfare should remain an absolute priority, and has also convened groups of representatives from higher education and the health sectors and brought them together to address the issues that students are facing during the pandemic.
Baroness Sherlock (Lab)
My Lords, when the Minister looks at the record, she may find that she has not been able to answer some of my questions, particularly around mental health. Will she write to me?
Baroness Wolf of Dulwich (Non-Afl)
My Lords, I, too, strongly welcome the amendments tabled in the names of the noble Baroness, Lady Barran, and the noble Lord, Lord Storey, which seek to address the pernicious effects of essay mills. I must declare an interest as an adviser on skills to the Prime Minister and as an academic employee of King’s College London. That is why I want to take this opportunity to say how important and welcome these amendments are. I pay particular tribute to the noble Lord, Lord Storey, who has been passionate and determined. Without his recognition that this is a major and serious issue which can be tackled, I am sure that these amendments would not have been tabled tonight.
There are a number of reasons why cheating has become a major problem for universities. It is partly to do with the pressure on people to get formal qualifications, the scale of universities and the temptation—you can do things you could not do before. There are two major sources of this. One is plagiarism, where we can fight software with software, and one is essay mills, where we cannot. I am quite sure that there will be a major improvement as a result of these measures: the firms will be unable to operate and students will take much more note of the risks attached to doing something illegal with these measures in place. The noble Lord, Lord Storey, has escaped, so I will send thanks in his direction. I say on behalf teaching academics all over the country that they will be extremely happy to see these amendments to the Bill, because it is almost impossible to know if somebody has used a commissioned essay.
Baroness Sherlock (Lab)
My Lords, I thank the Minister for introducing the government amendments and all noble Lords who have spoken. I shall say a brief word on government Amendments 58 and 72, on religious academies. When my noble friend Lord Touhig raised this matter in Committee, my noble friend Lady Wilcox made clear our support for his endeavour, so it is good to see the Government responding positively by bringing forward on Report their own amendments to address the problem. I congratulate my noble friend Lord Touhig. Given how long this has seemingly been worked on, I hope that at least one academy, the Lord Touhig catholic academy, will be appearing any day now to mark his success. I am going to ask him to put his name to my amendments in future, in the hope it will have a similarly positive effect on the Minister on future subjects. I look forward to his support. These amendments are very welcome.
Turning to the remaining government amendments in this group on essay mills, as I made clear in Committee, we fully support the outlawing of cheating services. Having had to research this matter for one of the many Private Member’s Bills proposed by the noble Lord, Lord Storey—I had only just taken the brief on—I was shocked to find how comprehensive the available services are. I think I have regaled the House more than once with my story about commissioning imaginary essays on Augustine and the problem of evil and various other things, and being astonished to find the precision with which one could request services. There was even a “comparethemarket.com” for it. The whole thing is extraordinary.
I have a small number of questions, and I apologise, but given the amendments have been brought forward on Report, we have not had an opportunity to ask about them, so I hope the Minister will bear with me.
First, one of the conditions is that material provided to a student has to have been prepared in connection with the assignment, rather than published generally. One of the abuses of the current system has been essay mills selling the same essay to more than one student, as the same topic comes up again and again. If material had been prepared for one student and was then resold to 15 more, is that one offence or is each sale an offence?
Secondly, the policy note talks about committing offences in England and Wales. What does that mean? Does it mean that the website is hosted in England or Wales, that the company that owns it is registered there or that the owners and essay writers live there? Who commits the offence? Is it the person writing the essay, the one promoting the service, the staff, the owners or all of them?
I have two other quick questions. We are told that enforcement of the law will fall to the police and the CPS. Given the pressures on both, do the Government have a sense of how many prosecutions, if any, are likely in a typical year or will this rely on deterrence as a way forward?
Finally, the penalty on conviction is a fine. I sought clarification offline as to the likely scale of this and was told simply that this will be determined by the courts in accordance with Sentencing Council guidelines, with no cap on the powers of magistrates to issue fines. When I have had to deal with these things on Bills before, I have normally been given some kind of heads-up about the likely tariff or scale from the Government Benches, so can the Minister give us an idea? Are we talking about £50, £5,000, £50,000 or £5 million, or something relating to the profitability of the company? Can she give us some sort of heads-up or a rough benchmark?
I commend the Government for acting on both these points and look forward to the Minister’s reply.
Baroness Chisholm of Owlpen (Con)
I thank noble Lords for their comments. There is clear support across the House for these amendments and I am glad we have reached an agreeable solution on these important issues.
I will have to write on some of the questions raised, but I am able to answer a couple of them. The noble Lord, Lord Storey, asked whether the legislation will be extended UK-wide. We continue to engage and share our work with the devolved Administrations and would welcome a decision from them to legislate against essay mills in the future.
The noble Baroness, Lady Sherlock, asked if it is one offence or many. If sold 15 times, it is an offence not just once, but every time. I am swamped here; I think she also asked another question.
Baroness Sherlock (Lab)
I will remind the Minister, but I am happy for her to write. My questions were about who commits the offence, what it means for it to be committed in England, the likely number of prosecutions and likely fines.
I ungraciously forgot to put on record my appreciation of the work of the noble Lord, Lord Storey, on this over many years, so I take the opportunity to do so now while I am on my feet. I commend him for all his work.
Baroness Chisholm of Owlpen (Con)
On how this will work in practice, an enforcement body is not specified on the face of the Bill and therefore any supporting investigations and prosecutions would fall to the police and the Crown Prosecution Service respectively. It is up to them to decide the offence and fine. I will need to write to the noble Baroness on her other questions.
Once again, I thank noble Lords, especially the noble Lords, Lord Storey and Lord Touhig, for their support on these issues. I hope that the House will support these amendments.
Baroness Garden of Frognal (LD)
My Lords, my noble friend Lord Storey has dashed off for his train and handed me a sheaf of papers on his amendment on data protection. I am quite good at speed reading but I do not think I am quite as good as all that, given all this material. However, this is an important amendment because data protection is important for students and pupils. It should be protected but the DfE does not have a good record. There is an ICO inspection report from February 2020 that comes out with such things as:
“There is no formal proactive oversight of any function of information governance, including data protection, records management, risk management”
and so on. The report says:
“The organisational structure of the DfE means the role of the Data Protection Officer (DPO) is not meeting all the requirements … There is no clear picture of what data is held by the DfE … The DfE are not providing sufficient privacy information”
and so it goes on. It is a very damning report.
The good news is that the Minister wrote a letter to my noble friend and the noble Baroness, Lady Kidron, setting out all the steps that the Government intend to take, and my noble friend is very satisfied with their approach on this. Despite this very damning report about data protection at the DfE, which seems to be absolutely non-existent, there is some hope here. Whether the Minister will accept the amendment I do not know, but I beg to move.
Baroness Sherlock (Lab)
My Lords, I thank the noble Baroness, Lady Garden, for stepping in marvellously and introducing the amendment so confidently. It certainly seems, especially given the situation with the investigation that she describes, a pretty straightforward and simple way to address the issue, placing a duty on the Information Commissioner to prepare a code of practice in relation to the sharing of personal data. If the Minister is not going to accept this, perhaps she could tell us how instead the department intends to address these problems.
I would like to ask a little question. There have been concerns for some time that both practice and indeed legislation in education are loose in relation to data. Clause 11 makes provision to allow data sharing by and with Ofqual, the OfS and Ofsted as well as prescribed persons, and the provisions relate to technical education functions. Could that include students’ personal data? If so, for what purposes? How widely could “prescribed persons” be interpreted?
Can the Minister clarify whether the scope of Clause 11 extends beyond England? Although the institutions to which the new powers apply are all currently based in England, the people and institutions from which they will obtain personal data under those powers could presumably be at any educational setting across the UK within the scope of the Bill. What consideration has been given to the prescribed persons to whom the institution may pass on the data being based outside England in accordance with their own data-sharing powers?
These days students need and expect consistent controls across their data for collection, for use, for distribution and for destruction when it is no longer required for the lawful purposes for which it was collected. I am aware that institutions have also called for better guidance. Concerns have also been raised that the Bill does not preclude commercial use. Could the Minister comment on that?
Data is a valuable asset and it needs appropriate safeguards and a public interest test, so I look forward to the Minister’s reply.
Baroness Barran (Con)
My Lords, Amendment 67 tabled by the noble Lord, Lord Storey, but skilfully presented by the noble Baroness, Lady Garden, seeks to place a duty on the Information Commissioner to prepare a code of practice in relation to the sharing of personal data by organisations that collect such data for post-16 educational purposes.
I thank both the noble Lord, Lord Storey, and the noble Baroness, Lady Kidron, for bringing this issue to my attention. The Government agree that this is an issue that needs addressing, and we share both noble Lords’ aims for increasing assurances around the processing and sharing of personal data for learners and students in post-16 settings.
The department’s response to this issue is to set up an education sector certification scheme, with the support of the ICO, that would allow the department to set standards in a wide range of areas. This would cover the data protection needs of the whole education sector, not just the 16 to 19 age group covered by the Bill. We feel that a certification scheme, rather than a code, gives us flexibility to deliver elements when they are ready. We will not have to wait until all elements are complete, which allows us to be flexible when responding to priority needs. In addition, as technology and the law change, we are able to update specific standards without having to update a full code, allowing us to remain flexible to future changes.
As the noble Baroness, Lady Garden, mentioned, I have written to both the noble Lord, Lord Storey, and the noble Baroness, Lady Kidron, detailing the department’s ambition and next steps in tackling this issue, which will include writing both to the ICO and to the ed-tech companies by the end of the year.
I am amused at the definition of “a little question” from the noble Baroness, Lady Sherlock; it was at least three little questions. If I may, I will write to her on the detailed points. Broadly, the thrust of her questions is that student data should be protected. The department continually keeps its processes and practices under review to ensure that we are taking all necessary steps to protect data, including updates to access controls, audit trails of data usage and reviewing risk as part of our data protection impact assessment. In relation specifically to this amendment, the proposed data certification scheme would formalise these controls across the sector. If I may, I will respond in writing to her other points.
I therefore hope that the noble Baroness, Lady Garden, on behalf of the noble Lord, Lord Storey, will consider withdrawing his amendment. I again place on record my thanks to him and the noble Baroness, Lady Kidron, for bringing this to my attention.
Free School Lunches and Milk, and School and Early Years Finance (Amendments Relating to Universal Credit) (England) Regulations 2018
Baroness Sherlock Excerpts(6 years, 9 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Lord Bishop of Portsmouth
My Lords, it normally gives me great pleasure to speak in your Lordships’ house, but this evening I speak with some sorrow. I am hoping that the proposals made by the Government—involving, I am sure, the Treasury, the Department for Education and the Department for Work and Pensions—are perhaps the result of the complexity of those interlocking interests and have inadvertently left what surely cannot be intended. The consequences of this policy run counter to everything that the Government have said about the principle of universal credit, which I and many others have supported. If the consequences are unintended then I shall be delighted and relieved to hear the Minister say so.
I have looked at these regulations and concluded that they drive a coach and horses at some speed through the defining principle of universal credit—a principle I wholeheartedly endorse—that work should pay. They create an arbitrary cliff edge at a low-income threshold, off which many risk falling. For working families just below the current threshold, this proposal would very clearly not make extra work pay. They would be better off not seeking more paid work and leaving their children on free school meals, unless their family income increased by some considerable margin. Those just above the threshold will be worse off under the regulations, facing school meal charges. They would be better off working less. That is at best an anomaly, but I am tempted to describe it as an absurdity.
I do not, however, see this as pointing to a flaw or a contradiction in policy design. Rather, it points to the real, pressing and increasingly difficult circumstances that, over the years, families will face. More often than not, this will affect people who are already in work who earn very little—people whose weekly budgets already have little or no slack.
Some Members of your Lordships’ House may recall that recently I chaired a briefing for Members of both Houses. A number of your Lordships may remember Clare, who spoke to us. Her oldest child currently receives free school meals. She and her husband do not want to live on benefits, credits or allowances; they want to get on and get up. Clare’s husband had been made redundant, and after 18 months volunteering in a local school he now works as a teaching assistant and earns £8,000. Clare had worked for 15 years as an NHS dental nurse, but her clinic closed. I quote Clare with her permission. She said:
“We both never, ever thought we would be in this situation. We feel terribly ashamed to have to rely on help”.
Clare is retraining as a solicitor. When she has done so, her husband will complete his own retraining as a teacher; both will incur significant debts. Hers will be £56,000. Clare told me that they have many working years ahead of them and look forward to a future in which taxes are spent helping the vulnerable in society. She feels blessed to live in a society that has a safety net in place for them and others facing short-term difficulties.
These regulations will not help Clare and those like her overcome these short-term challenges. They will add to them and hinder her from creating a long-term future for herself and her family, because Clare has no slack. She told us her family of four,
“survives on £10 a day for our food and petrol … with no luxuries”.
Clare does not understand how the figure of £7,400 has been arrived at. Nor does she understand how introducing an earnings threshold as low as that could possibly benefit people in her situation. I do not understand either. She knows her eight-year-old daughter will, for now, continue to receive free school meals, but what of her son, who starts school in September and other children of their ages? As she observes, initially it seems nobody will lose out, but in the long term more and more people—and more specifically, more and more children—will.
We are potentially creating anxiety, even despair, when we should offer hope and support. We are creating a cliff edge so that work does not pay. The job of this House is often to ask the Government to think again about what may be the unintended consequences of policy. The outcomes of this one are severe. I ask the Government to think again this evening, and I do so from the bottom of my heart.
Baroness Sherlock (Lab)
My Lords, in his very moving opening speech, my noble friend Lord Bassam quoted lain Duncan Smith when he was Secretary of State, saying that universal credit would always make work pay and people would be better off for every hour they work. I want to focus specifically on the question of work incentives. I reassure the noble Lord, Lord Patten, that I trade in facts, which I offer to the House for its consideration.
Iain Duncan Smith’s quote was not a throwaway comment. It was in the foreword to the White Paper which explained why the Government were planning to abolish all the main means-tested working-age benefits and replace them with universal credit. That process is now ongoing. It has had its challenges, as we all know. There have been problems with the system and computers, design and implementation challenges and severe delays. It has been subject to repeated budget cuts with the result that it has gone from being what was originally designed as a benefit to claimants to being a net saving to the Treasury. The whole point of this enormous exercise, which will eventually include some 7 million people, was that it would always “make work pay”. Even small amounts of work and every extra hour would pay. That quote was the aim of the system in a nutshell.
Yet this SI reintroduces the mother of all cliff edges into universal credit. At the moment, if parents work, there comes a point when they lose free school meals, but at that point they gain access to working tax credit, which is worth more. Under this system it would mean if a parent were offered a pay rise—like the mother of the noble Lord, Lord Bassam—or the chance of an extra hour a week working which would take their earnings over a cash limit of £7,400 a year, they would either have to turn that down or take it knowing their children would all lose free school meals.
The excellent briefing from the Children’s Society and the CPAG modelled the impact on a single parent in 2022 at the then-expected minimum wage raising two children in a rented house. She wants to raise her hours from 12 to 16 a week, exactly the kind of thing universal credit is meant to help. Her earnings would go up by £1,893 a year but she would end up £174 worse off by the time she had lost universal credit and free school meals. Other families would actually be better off by cutting their hours or taking a pay cut. This undoes all the progress made by tax credits and all the aims of universal credit of getting away from precisely those problems in the old-fashioned benefit system. Does the Minister acknowledge that there is a problem here?
Children: Policy
Baroness Sherlock Excerpts(13 years, 10 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Hill of Oareford
I agree with my noble friend. So far as concerns the Department of Health, the number of health visitors is to be increased by 4,200 and there will be a doubling in the size of family nurse partnerships. However, I shall certainly relay the thrust of my noble friend’s remarks.
Baroness Sherlock
My Lords, is the Minister aware of the report from 4Children and the Daycare Trust which suggests that 250 Sure Start centres are to close and that a further 2,000 will cut back their services? If the Minister finds that local authorities are not able to fund them, who will deliver these early intervention services?
Lord Hill of Oareford
I have already replied concerning the Government’s policy towards Sure Start’s children’s centres. I hope that we will be able to find more efficient ways of delivering services across the piece. One idea that the Prime Minister talked about was bringing together budgets in various areas with early intervention places instead of having silos of different funding. I take the noble Baroness’s point: there are concerns about Sure Start children’s centres and funding, and my honourable friend Sarah Teather is monitoring the situation. We all have a shared interest in making sure that those services are delivered as effectively as possible and, as I said, local authorities have a statutory responsibility to make sure that they are.