Armed Forces: Racism and Diversity
Baroness Verma Excerpts(3 years, 10 months ago)
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Baroness Goldie [V]
We are anxious to learn from any source about how we might improve our approach, but it would be wrong to imagine that no good things are happening. A number of very good things are happening and very positive developments are taking place. However, particularly having regard to the events of recent weeks, it is critical that we reassure staff within the MoD that this is not some transient focus of attention. There is now an ongoing serious conversation that will continue. It is being driven by the senior levels of management and personnel and at the ministerial level within the MoD.
Baroness Verma (Con) [V]
Will my noble friend work with her colleagues at the Department for Education to ensure that history lessons reflect the contributions made by service people of colour? Will she provide the House with a copy of guidance that provides the Armed Forces with a clear interpretation of how to ensure genuine access to opportunities in real career progression? Will she meet me to discuss the work that I have done in other sectors on inclusion and diversity?
Baroness Goldie [V]
I might be able to offer my noble friend some reassuring examples of the strategies that are currently being deployed to address the very issues that she referred to. I shall of course be very happy to meet her to discuss her own experiences. As I said in response to an earlier question, if there is anyone or anywhere from whom or from which we can learn, we shall do that.
Energy Bill
Baroness Verma Excerpts(10 years, 9 months ago)
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The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Baroness Verma)
My Lords, I am extremely grateful to the noble Baroness, Lady Worthington, and to all noble Lords who have contributed to this debate. Before I turn to the amendment, I should say to my noble friend Lord Cathcart that while his comments were not related directly to the amendment, I take note of his concerns and hope to respond at relevant junctures in the Bill. I am sure that the noble Earl will be satisfied that I have not sidetracked his concerns but will respond to them as the Bill progresses.
The Government agree that it is of great importance that Parliament is provided with updates on energy and climate change. This is particularly important, given the significant changes that we are making to replace closing infrastructure and to decarbonise the economy affordably. That is why we committed in the coalition agreement to giving an annual energy statement to Parliament to set strategic energy policy and guide investment. We have met this commitment every year since 2010 and we will be making this year’s statement to Parliament in the autumn.
I am not totally convinced that there is currently a great need to create more legislation for such an issue when we are already delivering on our commitment to update Parliament. In addition to this, DECC also reports to Parliament specifically on security with the Statutory Security of Supply Report. Furthermore, on Report in the other place, we introduced a statutory annual update on EMR. Finally, we also report on climate change via the government response to the Committee on Climate Change’s annual report, and on fuel poverty via the annual fuel poverty statistics. It is the annual energy statement that brings all these strands together.
I understand that the commitment made by this coalition Government is not guaranteed to be upheld by any future Government, and I therefore see some merit in ensuring that future Governments make a regular statement for Parliament and investors alike. It will therefore be wise for me to undertake to consider this further, ahead of Report. As part of this year’s annual energy statement we will of course be updating Parliament on the progress that we have made across the entire energy spectrum, including on the Green Deal, smart meters and climate change, as well as on the matters in the Bill. It will therefore include EMR and the strategy and policy statement, to which the noble Baroness has referred.
Ofgem will be required to report to Parliament annually on the extent to which it has contributed towards meeting the policy outcomes set out in the strategy and policy statement. The Bill requires this information to be included in the annual report and it is already a requirement that the report is laid before Parliament. This requirement already provides sufficient accountability and transparency in respect of the strategy and policy statement. I hope that the noble Baroness has found my reassurances and explanation useful and will withdraw her amendment.
Baroness Worthington
I thank the noble Baroness for her response. I am encouraged that that there are reporting requirements of which I was perhaps unaware, particularly the statutory requirement to update on the EMR. I should be grateful for further details on that. The statutory requirement on Ofgem to report does not do what the annual policy statement on energy strategy does because, as we have just discussed, Ofgem merely looks after a subset of the entire energy policy and it is just the department that is across all the issues. In the Annual Energy Statement, you will notice paragraphs on transport fuels, transport infrastructure, electrification, biofuels and the like, over which Ofgem has no oversight. I am encouraged that Ofgem will be reporting—that is great—but it does not do what the amendment does. However, I am happy to withdraw the amendment and look forward to hearing a little more about the EMR report. I am encouraged to hear that the noble Baroness is prepared to consider this amendment, or something like it. I beg leave to withdraw the amendment.
Lord O'Neill of Clackmannan
Given the large sums involved and our positions as members of that body, we must do that. There are various elements involved in fuel poverty: the condition of the house, the circumstances of the individual householder and the nature and size of the energy tariffs that the individual has to pay. Very often, people in fuel poverty are in comprehensively complicated social circumstances and the complexity of the tariff system just adds to their confusion. Quite often, they do not know what they are paying for. Quite often, they do not understand the bills. Invariably, they are unable to make full payment. If they are on the payment meter system—as has already been said—they pay rather more for the privilege of paying as they go but that normally enables them to self-disconnect, in the sense that if they cannot afford to pay they do not use electricity.
One of the statistics that is never given proper examination in arguments about privatisation is that we say there are not the disconnections that there were under public ownership. That is because nowadays people self-disconnect. There was a time when, certainly as a young Member of Parliament, I had a succession of cases where I would intervene with the nationalised industry, the utility, to ensure that the gas or electricity was restored and some kind of proper payment system introduced. In some respects, you might say that for a Member of Parliament that is a chore they no longer need to carry out but it was certainly one that enabled people to come to terms, at least for a period, with the straitened circumstances of fuel poverty. What we have to do here, regardless of the off-the-cuff remark from the Prime Minister, which I am sure he regrets having made—not because he did not believe in it but because of the complexity of the issue; this is a classic case of unintended consequences—is to take advantage of the legislation to make the tariff system for electricity intelligible, simple and, I hope, more affordable. My noble friend has addressed a number of the challenges that that remark presents to us.
We know that in some respects there has been a major shift. There has been the publication of a report, which I confess I have yet to read, and amendments, in which we will all take great interest. It is fair to say that the Hills report was a wee bit of a curate’s egg, but there are always problems with the oversimplistic definition of the 10% rule. Perhaps we can get a change in the definition that enables us to target and prioritise. I know that those are the kind of words that people like to use in these circumstances. In the previous debate, we discussed having an annual report on energy. We will be looking very carefully, maybe not next year but the year after next, when a number of these amendments will have kicked in.
It is important that we have a debate like this and that we get from the Minister a clear picture of the Government’s thinking in relation to tariffs. The remedies for fuel poverty in a broader sense will be debated later, but people know well enough that serious near-criminal activities have been undertaken by the oligopolies. People say that the market works, but it has not worked; it has been abused consistently and methodically by cynical people who at the end of the day pay the fines in the certain knowledge that we as consumers then have to make our contribution to the compensation of the poor shareholders, who have been happy to have these chancers running these businesses. That is where we are coming from on this; a group of cynical manipulators of the tariff system have made the plight of disadvantaged people even more disagreeable. The rest of us can probably say, “It serves us right—we should be looking after ourselves”. However, a lot of vulnerable people have not been given any protection by the market, and we are now looking to the Minister and her response to this debate to tell us how we are going to get tariffs that people can understand and perhaps pay a little more easily than they have been able to in the past.
Baroness Verma
My Lords, I thank the noble Lord, Lord Whitty, for his amendments relating to this very important area in the Bill. Like him and all noble Lords, I share huge concerns that the most vulnerable tend to be the ones who do not benefit from what should be a system in which they are able to easily access information. That is why I am going to start my remarks by responding to the noble Lords, Lord O’Neill and Lord Whitty.
When the noble Lord, Lord Whitty, opened his remarks he said that the Prime Minister threw this upon us. The Prime Minister, this Government and this department are all at one in making sure that we put into place a system that enables consumers to have choice, to be able to make decisions and to understand what they are paying for. The noble Lord cannot have it both ways; we want to have a stronger regulator and the Secretary of State therefore has to have a duty to ensure that the regulator has the powers to enforce. Of course, it is necessary to let the regulator be independent and do the job that it should be doing, but the real issue is that this is not a new issue; it is one that has blighted Administration after Administration. My noble friend Lord Cathcart said that time and time again we have failed. We bring in Energy Bill after Energy Bill or some form of Bill to try to address these issues, and we do not seem to be able to do it.
I hope that through this Bill, the powers that we are taking, the powers that we are giving to the regulator and the legislative framework that we are introducing to redefine fuel poverty, we can start to address some of the root causes of why we cannot get on top of something that I know every noble Lord in this Room is passionate about. Providing statistical backing to the Energy Bill has served to focus minds on avoiding delay in the implementation of the retail market reforms that Ofgem is introducing. Ofgem has committed to reviewing the RMR package of measures by 2017 to ensure that it is working efficiently. In addition, we will be able to check.
I shall speak to the noble Lord’s amendments as they came up, and then I shall answer some of the questions that the noble Lord raised. Amendment 50A would give the Secretary of State power to require licence holders to offer particular tariffs that are designed to reduce fuel poverty and energy consumption and to encourage consumers to use energy at off-peak times. We have a competitive energy market and we are looking to increase competitive pressure through these reforms. I understand the noble Lord’s desire to see the issues set out in Amendment 50A addressed, but I assure him that the Government are doing so, though through means other than mandating suppliers to provide particular tariffs. I shall quickly run through them. We are increasing energy efficiency and conservation though ECO and the Green Deal. We are facilitating consumers to change the time profile of their consumption through the rollout of smart meters. We are already addressing fuel poverty by reducing the bills of vulnerable customers with the warm home discount, and I shall touch on that a little later.
I hope that noble Lords will also welcome the amendments to this Energy Bill that the Government have brought forward specifically to address fuel poverty. We will come to them later in our Committee’s consideration. These are all important areas, and we are addressing all the concerns that noble Lords have raised with me in the Room and outside it. We do not think that mandating particular tariffs in a competitive market is the way to do it because ultimately the market has failed to provide that, as the noble Lord, Lord O’Neill, said. We need to make sure that we place a duty upon suppliers to ensure that consumers are able to generate the competition that suppliers need to be working towards to be able to give consumers the option to switch to a different supplier if they are not being served properly.
Amendment 50B seeks to require that tariffs offered do not discriminate between different methods of payment except where there is a clear reflection of differing costs or differing debt levels. We should guard against suppliers discriminating between customers using different payment methods. That is why standard supply licence condition 27.2A states:
“Any difference in terms and conditions as between payment methods for paying Charges for the Supply of Electricity shall reflect the costs to the supplier of the different payment methods”.
Ofgem’s proposed licence condition changes for the retail market review do not remove or alter this licence condition. We would not intend to alter it were we to use these powers to implement the proposals. The noble Baroness, Lady Maddock, asked whether consumers can be put on the cheapest fixed rate. Yes, they can if they chose to. It would be the cheapest tariff in line with the preferences that they decided on.
Amendment 50D would have the effect of requiring suppliers to include a signpost to the unit cost of each tariff on bills alongside the cheapest tariff message. I fully support the principle behind the noble Lord’s amendment. Improved transparency and information provision are key to helping consumers engage with the market, and that includes providing information about unit costs. However, the improvements that Ofgem is delivering through its retail market review will ensure that consumers have all the information to make those decisions. We are giving legislative backing to these proposals, which require suppliers to summarise these costs in a single figure in order to aid comparison. That figure will appear on bills and other regular supplier communications.
The noble Lord, Lord Whitty, mentioned the TCR, the tariff comparison rate. We think that the TCR is a useful prompt to encourage consumers to engage. Ofgem’s proposals are clear that the TCR will be indicative and based on typical energy consumption. It is intended as a prompt, a call to action. During the course of any sale, suppliers will also be required to give all consumers a personalised quote based on their consumption, which will tell them how much they will actually pay.
The Earl of Caithness
My Lords, my noble friend has given a comprehensive reply, for which we are all grateful. This is an issue that is hugely emotional, among other things, because it affects the poorest in our society. When we talk about all the things that the Government are doing, such as the tariffs and the Green Deal, I hope that the Minister will bear in mind the need for simplicity. I have just received my latest electricity bill—that is all I receive in the north of Scotland; there is no mains gas or anything like that—and it runs to about five pages, which is enough to put anyone off. Luckily I can print it off but, if I were among the poorest, on getting a bill of five pages of complicated jargon, whatever you made the lowest tariff or whichever options the noble Lord, Lord Whitty, wants, with the variations that there could then be on the bill, I would be terrified by that. I hope that my noble friend will realise that what we want is simplicity and clarity so that the bill is not a terrifying bit of paper for people.
Baroness Verma
I am extremely grateful to my noble friend for that intervention. I agree that we have to make this accessible and consumer-friendly, and part of that will be ensuring that suppliers make the information as easily accessible and simple to understand as possible.
Lord Teverson
Do we know which 50%? That is the question.
My noble friend Lady Maddock is being too modest. When we went through the Green Energy Bill we encountered some really strange language. We asked why it was written in that way, and it turned out it was supposed to be written in plain English—in a way that people would understand. Actually, this amendment is perfect for what it should be. The draftsman has written it in a clear and easily understood format. That is exactly what it should say, and I hope that the Secretary of State, the Minister and the Government will see a way to bring it in.
Lord Whitty
My Lords, I have two issues. First, I support the clarity referred to by the noble Lord, Lord Teverson, that is promoted by the amendment proposed by the noble Baroness, Lady Maddock. Secondly, there are issues relating to the cost of carbon, and so forth, which need to be reflected in energy bills, but I am not sure that I would agree with what the right reverend Prelate says in how we present that. There is a cost to all of us of carbon and to isolate it separately in a crude way would not necessarily improve understanding. The Government would have difficulties in that respect.
On the consumer issue, I would just mention the survey about unit pricing that I referred to under the earlier group of amendments. On the question of percentages, the public do not understand APRs when they take out loans, so they will not understand TCRs in relation to this operation. The Which? survey shows that three out of 10 people using the tariff comparison rate found the cheapest rate whereas more than 80% found the best comparison when they were demonstrated by unit prices. So the use of clear figures but not necessarily percentages will help in that regard, and I support the noble Baroness, Lady Maddock.
The Lord Bishop of Chester
Can I just come back on this point? What I wanted was for the government obligations to be listed. One justification for these green taxes is that it saves money in the long run because of this, that or other theory. However, when the Government themselves impose a financial tax or precept, or whatever you want to call it, we should all surely want a degree of transparency about it. Then there is an argument about whether it is justified because of other long-term savings. The danger is that if you hide these things away you cause the lack of confidence in consumers that the amendments that we have discussed are precisely about.
Baroness Verma
My Lords, noble Lords must forgive me for trying to step in before the noble Lord, Lord Whitty. I am extremely grateful to my noble friends Lady Maddock and Lord Roper for their amendment. This is a follow-on from our previous discussion. My noble friend Lord Caithness rightly then ensured—and continues to ensure—that this debate around simplification and clarity is high on the agenda. The amendment proposed by the noble Baroness tries to lay that out in simple terms, saying that the information provided as part of a message on bills, annual statements and other communications detailing the suppliers’ cheapest tariff must be provided in a clear and easily understandable format.
Ensuring that consumers are provided with clear and simple information regarding their existing tariff and others available to them is one of the key aims of the powers in question and Ofgem’s retail market review. A power to require suppliers to provide consumers with personalised details of the expected cost of a given tariff and information on the supplier’s cheapest tariff for them is one of the means by which this will be achieved. That consumers should receive information about tariffs in a clear and understandable way is something that we have made plain to suppliers as being central to our proposals. Should it become necessary to use these powers, we expect to set this out explicitly within the actual amendments to suppliers’ licence conditions. Indeed, Ofgem’s proposed changes to suppliers’ licence conditions to implement the RMR already include such provisions. Standard licence condition 31E, once amended, will set out specific plain and intelligible language and presentation requirements for information provided to customers. We have always been clear that we expect suppliers to provide information to consumers that is clear and understandable. However, if noble Lords feel that we have not been clear enough then we are happy to consider this matter further and return to it on Report.
In response to the concerns of the right reverend Prelate the Bishop of Chester, I sincerely understand his desire to see clarity on bills, but that is up to suppliers to do. Ofgem can direct, but it is actually for suppliers to do it. Somewhere I have a note on this that I have now conveniently lost. Ofgem is producing factsheets that provide a breakdown of the costs that make up a typical energy bill. We are aware that some suppliers are already providing this, and the right reverend Prelate mentioned that there may be one that he would not mention by name. We do not hold comprehensive data on each individual supplier’s approach. Maybe that is something that Ofgem needs to look at. Given that I am taking this matter away to consider it further, perhaps this is something else that I may reflect on. I hope that my noble friends will find my explanation reassuring and withdraw the amendment.
The Lord Bishop of Chester
May I probe the Minister’s position in this way? Can she give the Committee any reason why there should not be a requirement on energy companies to provide a line that simply says what the Government’s tax or obligations are? I cannot see a reason why that should not be done. As she says, some suppliers do it but some seem to change their policies. Given that the amounts are already significant and will be even more significant before long, the bottom line, as the noble Lord, Lord Whitty, began his speech by saying, is that the most important thing to people outside this Room is how much this costs.
Baroness Verma
As I have said to the right reverend Prelate and to the Committee, suppliers are not obliged. Still, I will take this away and reflect on how we can make bills easier and simpler for consumers to understand.
Lord O'Neill of Clackmannan
Before the Minister sits down, when she says that the companies are “not obliged”, I find it difficult to understand her choice of language. It is as if we are asking them to do something difficult. At best, we could say that we will just aim at the top six, or top seven if we included First Utility. The other side of this is that, such is the stickiness in this market, most people do not switch, so that 60%-odd are receiving their bills from the same company year after year. We have been far too easy on these companies, and the Minister gives me no comfort whatever by using phrases such as “not obliged”. We should dashed well make them do it; we have the powers to do so. The regulator can do these things. It might be uncomfortable for the regulator but the consumer is entitled to know. I hope that she goes away and reflects on whether or not we should make the obligation rather more forceful than it currently is.
Baroness Verma
My Lords, as I said earlier, I am taking the amendment away and shall reflect on what the right reverend Prelate the Bishop of Chester has raised. Like noble Lords, I am very keen that information is available, simple and understandable, but I am also keen to ensure that I can deliver what I am able to. Part of that is by taking this away and giving it further consideration.
Baroness Maddock
I am grateful to the Minister for her explanation. I have to say that the proposal is fairly simple and I cannot see that it would damage the Bill tremendously if it were in there, but I suppose that it is too much to hope for. When I was in the Commons, I once got a Minister to accept an amendment in its entirety and I practically fell off my chair as he said it. At that time I was the only Lib Dem on the Committee. I had a whole raft of amendments and was busy looking at my notes for the next amendment when I suddenly heard what he said. I am disappointed that the Minister today was not able to do that, but never mind.
I thank her for taking this issue seriously, because we all think that it is important. The amendment goes to the heart of what we are trying to do about getting better information about tariffs to enable people to make decisions. It is clear to me, as I commented in the previous amendments, that people working with those who could do with better tariffs are finding it very difficult to do so because it is so complicated. The simpler that we can make things, the more chance we have of achieving the aims that we all have in the section that deals with tariffs. I am pleased and disappointed all at the same time, but I recognise that we are where we are and beg leave to withdraw the amendment.
Lord Grantchester
My Lords, Amendment 50G would require the Secretary of State to present proposals to Parliament before making any changes to the terms of licence conditions under powers in Clause 127. However, while the Secretary of State is obliged to consult suppliers and Ofgem as well as any other person he thinks relevant, he is not obliged to present the proposals to Parliament for scrutiny. The Delegated Powers and Regulatory Reform Committee questioned the appropriateness of this in its report on the Bill, and drew attention to Clause 127(10). It stated:
“As is candidly acknowledged in paragraph 358 of the memorandum, the distinction between discretionary and principal terms ‘is central to the function of the clause’. It therefore seems to us surprising that the order-making power is subject to no Parliamentary control, and that paragraph 358 -while explaining why full definitions could not appropriately be included in the Bill - does not explain why there is no provision for Parliamentary scrutiny”.
Why do the Government deem it necessary to consult the industry and Ofgem but not Parliament or consumers?
Throughout the Committee’s scrutiny of the Bill, several noble Lords have highlighted the extensive enabling powers given to the Secretary of State. This fifth report of the Delegated Powers and Regulatory Reform Committee is also highly critical, rather uniquely for that committee, in stating that there is little provision in many chapters in the Bill,
“that does not involve the delegation of legislative powers”.
We offer our support to this amendment in order to ensure that any such order is given appropriate scrutiny by Parliament by the negative resolution procedure, as recommended by your Lordships’ Delegated Powers and Regulatory Reform Committee.
Baroness Verma
My Lords, I am extremely grateful to my noble friend Lord Roper for raising the issue in Amendment 50G that would make the use of powers set out in this clause subject to annulment resulting from a resolution of either House. Noble Lords will be aware that the Delegated Powers and Regulatory Reform Committee has recommended that the power of modification conferred by Clause 127(1) and the order-making powers in Clause 127(10) should require the draft negative procedure. We are looking at these recommendations, along with the others made by the committee, and will respond to it in due course. I therefore hope that my noble friend will withdraw the amendment.
Lord Roper
My Lords, I am grateful to the Minister for that reply. We await with interest the full response from the department to the Delegated Powers and Regulatory Reform Committee. I understand that it has already received a substantial response from the department that it will consider at its meeting tomorrow, and that it is possible that when we meet on Thursday we will have the results of its report and the department’s response, which will perhaps be of value to us. I shall withdraw the amendment at this stage, but if we do not have a satisfactory response on Report then it will be necessary to return to it. I beg leave to withdraw the amendment.
Army 2020
Baroness Verma Excerpts(11 years, 10 months ago)
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Lord Crickhowell
I fully understand why this is being done and I fear that £38 billion is probably an underestimate. The noble Lord, Lord Ramsbotham, referred to leaks. There is one other feature of this Statement which I regret: it disguises the historic names which are disappearing. My noble friend referred to “current regimental names” and the Statement named the 2nd and 3rd Battalions. However, the 1st Battalion The Royal Regiment of Wales, carries the title “1st Battalion Royal Regiment of Wales (Royal Welch Fusiliers)”. I do not know, now that the 2nd Battalion is to disappear, whether that historic name can be retained or what other historic names can be retained. Luckily, we have retained, I believe, in the Royal Regiment of Wales the historic flash, the hackle and other regimental insignia. I hope that in future Statements an explanation is given of exactly which historic regiments are going and how their traditions are to be maintained as far as possible, because they are of great importance when it comes to pride and to recruiting in the areas concerned.