Covid-19: Support for the Self-employed
Debate between Earl of Courtown and Lord Clement-Jones
The Earl of Courtown
My Lords, the noble Lord makes a very good point. That is imperative. So far, we have been able to give them wide coverage and ensure that the self-employed are aware of what is available to them at the moment. I am sure that over the next couple of days, when the Chancellor has the opportunity to bring forward further measures, there will be an effort on this basis to ensure that the self-employed, whom we all know and employ at some stage or another, are given the opportunity and looked after.
Lord Clement-Jones (LD)
My Lords, is the Minister aware of the plight of the creative industries? For instance, 72% of those working in the music industry are freelance. Last week, the Creative Industries Federation conducted a survey which showed that almost 50% of freelancers in the creative industries who responded to its poll had already had 100% of their work cancelled. Will the Government urgently consider a scheme in Norway—the noble Lord, Lord McNicol, has already mentioned schemes in Belgium and Denmark—which has guaranteed temporary income protection of 80% of average self-employed earnings from the past three years? That seems exactly the kind of scheme that would fit the bill here.
The Earl of Courtown
My Lords, the noble Lord, Lord Clement-Jones, is quite right to raise the situation of freelance workers in the entertainment and music industries. He makes a very good point. We will carefully consider the schemes of all other countries. We want to ensure that we can look after the self-employed and will try to give them every opportunity to take some of their worries away.
Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2020
Debate between Earl of Courtown and Lord Clement-Jones(4 years, 8 months ago)
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The Earl of Courtown (Con)
My Lords, I am pleased to introduce this instrument, which was laid before the House on 2 March 2020. Subject to approval, the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2020 reflects the conclusions of this year’s annual review of the automatic enrolment earnings thresholds required by the Pensions Act 2008. The review considered the earnings trigger and the qualifying earnings band for the tax year 2020-2021.
The earnings trigger determines the point at which a qualifying worker becomes eligible to be automatically enrolled into a qualifying workplace pension. The qualifying earnings band determines the earnings upon which workers and employers pay contributions into a workplace pension. This order sets a new lower limit for the qualifying earnings band and is effective from 6 April 2020.
The earnings trigger is not changed within this order and remains at the level set in the automatic enrolment threshold review order of 2014-15, so no further provision is required. Similarly, the upper earnings limit is not changed within the order and remains at the level set in the automatic enrolment threshold review order of 2019-20, so no further provision is required. I am satisfied that the Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2020 is compatible with the European Convention on Human Rights.
Today’s debate relates to a technical element of the automatic enrolment framework, which as a legal necessity we need to have in place for 6 April 2020. However, we are all too aware of the wider environment at this time impacting on automatic enrolment. There may be questions and concerns about the current and future position of automatic enrolment and pensions saving more generally, but noble Lords will understand that there is little I can tell them at this point on some of these matters.
As noble Lords will know, my right honourable friends the Prime Minister and the Chancellor have made it clear that the Government will do whatever it takes to support people affected by Covid-19. We have been clear in our intention that no one should be penalised for doing the right thing. These are rapidly developing circumstances; we continue to keep the situation under review and will keep Parliament updated accordingly.
In terms of the substance of this order, as signalled by the Minister’s Written Statement of 13 February 2020, this order will, as previously, align the lower and upper limits of the qualifying earnings band with the national insurance lower and upper earnings limits for the 2020-2021 tax year. The lower and upper limits are £6,240 and £50,000 respectively.
By continuing to align the qualifying earnings band limits with the national insurance thresholds, the changes relating to payroll systems are kept to a minimum. The purpose of this framework is to balance the need to encourage individuals to take personal responsibility for pensions saving with a sustainable compulsory minimum contribution level for all employers, mindful of the economic environment within which these changes are taking place. Setting the thresholds at these levels will also ensure that contribution levels continue to be meaningful for savers.
The order does not change the earnings trigger, which remains at £10,000 this year, in order to strike a balance between bringing in those for whom it makes economic sense to be saving into a pension with affordability for employers on the one hand and workers on the other. Individuals earning below the £10,000 earnings trigger but above the lower earnings threshold will still have the option to opt into a workplace pension and benefit from employer contributions, should they wish. Those earning below the lower earnings limit also have the option of being enrolled by their employers in a pension scheme.
The decisions to maintain the earnings trigger at £10,000 and maintain the alignment of the qualifying earnings band with those for national insurance contributions maintain simplicity and consistency. I commend this instrument to the Committee and beg to move.
Lord Clement-Jones (LD)
My Lords, I have always admired the versatility of the Deputy Chief Whip, and today is no exception. I thank him for his introduction. This is a rather important statutory instrument and there are a number of policy issues surrounding it. My heart sank when the Minister said that there is little he will be able tell us, I assume partly because he has no support from officials. I would be very happy for him to write in due course. The other thing he said that made my heart sink was that this is all about technical elements, which, as an understudy, I am not in a position to contest with him in any event.
The real essence of this is what the ABI has raised, because all of us support the scheme but want to see it go further. Both the ABI and the Women’s Budget Group said that we should look at the Wealth in Great Britain 2019 figures produced by the ONS, which show that among 65 to 70 year-olds, median private pension wealth is £164,700 for men and £17,300 for women. That is just over 10% of the private pension wealth of men. There is a considerable imbalance, to which I will return.
The success of auto-enrolment is clear, as the ABI points out, and the number of participating employees continues to increase. However, according to the ABI, if the lower age limit were reduced to 18 and the lower earnings limit removed, people could save another £2.6 billion annually. The change would demonstrate the importance of starting a savings habit early, given the powerful impact that early career contributions can have on the size of retirement savings. It points out that the Government committed to implementing these recommendations by the mid-2020s in the 2017 automatic enrolment review.
Furthermore, extending the coverage of auto-enrolment by reducing the earnings threshold to the NI primary would bring 480,000 people, mostly women, into pension saving, helping improve the gender pensions gap. As I have explained, the ONS figures on that gap are pretty dramatic. All else being equal, this deficit is set to continue, closing by only 3% by 2060. The suggestion of bringing forward that undertaking in the automatic enrolment review seems entirely apposite. I very much hope that the Minister will be able to give that commitment in the letter I know he will have to write after this debate.
Lord McNicol of West Kilbride (Lab)
My Lords, I thank the Minister for his introduction and echo the comments of the noble Lord, Lord Clement-Jones. Again, I will raise a number of issues so if the Minister would like to write a letter following this debate I would be more than happy to receive one.
The success of auto-enrolment is testament to the previous Labour Government, with tens of millions of workers saving for a pension under the scheme. In a recent report, the Pensions Regulator found that the overall proportion of eligible staff saving into a workplace pension was 87% in 2018. This has massively increased over recent years and decades. It also found that the largest increase in participation was from the youngest age groups. In the private sector, the largest increase was seen among 22 to 29 year-olds, increasing from 24% in 2012 to 84% in 2018.
We welcome the Government’s continued commitment to auto-enrolment but acknowledge that it is not perfect. Average contributions remain too low and, as the noble Lord, Lord Clement-Jones, said, the threshold too high. Department for Work and Pensions statistics show that, as a result of pensions inequality, 37% of female workers and 28% of black and minority ethnic workers are still not eligible for the scheme.
The exclusion of the self-employed from auto-enrolment also needs to be addressed. Some 15% of the workforce is now self-employed, but the numbers of such workers saving into a personal pension fell by a third between 2014 and 2018. With the current coronavirus crisis, the pressure on the self-employed will only increase, as we are seeing. I know that discussions are taking place around a number of possible changes to the Bill in the other place to try to protect the self-employed.
Today’s statutory instrument keeps the current earnings trigger of £10,000, and that is to remain into 2020-21. However, The People’s Pension found that, by reducing the trigger to £6,240, an additional 1.2 million people would be helped to save for their retirement. Why have the Government decided to keep the trigger at £10,000, given that it excludes some of the most vulnerable from saving into a pension scheme? The Explanatory Memorandum states:
“The Secretary of State decided not to consult on the amounts of the qualifying earnings band and earnings trigger for 2020/21”.
I understand that the Minister will need to write to me, but I ask: why not? Did the Secretary of State not want to take on board the concerns that the unions and others involved in this area were raising?
The Government have said that they will address issues with auto-enrolment, as the noble Lord, Lord Clement-Jones, said, by the mid-2020s, once it has bedded down. We would prefer that to be brought forward, especially given the many issues that will arise out of the current crisis. We see no reason for delay.
It is impossible to ignore the current national crisis of coronavirus. Are the Government looking into support for people who will be affected by a drop in their income over the coming months and years? That drop in income will have an effect on their pension. Are the Government also looking to develop long-term support for the defined benefit schemes, which will be massively affected by the market turmoil?
Air Traffic Management and Unmanned Aircraft Bill [HL]
Debate between Earl of Courtown and Lord Clement-JonesWednesday 12th February 2020
(4 years, 9 months ago)
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Lord Clement-Jones (LD)
My Lords, I would like to put on record the considerable disappointment on these Benches that the Secretary of State for Digital, Culture, Media and Sport will not be making an Oral Statement on the Government’s initial response to the White Paper on online harms. I seek an assurance from the Government Chief Whip, or indeed the Government Deputy Chief Whip, that government time will be made available for a full debate on the response to the White Paper.
The Earl of Courtown (Con)
My Lords, I note what the noble Lord has to say and I will discuss it with my noble friend the Chief Whip.
Motion
Gambling: Fixed-Odds Betting Terminals
Debate between Earl of Courtown and Lord Clement-Jones
The Earl of Courtown
My Lords, I thank the noble Lord, Lord Stevenson, for his questions. He talked about a number of things involving problem gambling, a broader approach and other games. I will start where he ended. In so far as other games are concerned, one must remember that it is clear that gambling-related problems are related not just to one product. This was taken into account when, in May, the response to the Consultation on Proposals for Changes to Gaming Machines and Social Responsibility Measures set out a comprehensive package of measures covering changes to the stake on B2 gaming machines, online gambling, advertising and research, and education and treatment. I will write to him with more detail on that issue.
As far as the timing of regulations is concerned, we have said that we intend to lay the draft regulations for the usual process of approval as soon as possible. We would expect operators to look to bring in the changes as soon as possible as well. In the meantime, we would expect them to look at their businesses and prepare them for the introduction of the stake reduction, to mitigate any impact. As the noble Lord is aware, I have stood at this Dispatch Box on a number of occasions on this issue and I am perfectly aware of the feelings around the House.
Lord Clement-Jones (LD)
My Lords, I cannot help but agree with the noble Lord, Lord Stevenson: this is disgraceful. The Chancellor has entirely resisted and ignored a powerful cross-party body of opinion. There is a kind of Alice in Wonderland quality about the Statement. It says:
“There also needs to be a proper period of notice, after setting the new rate, before that change to Remote Gaming Duty takes effect. The Government has therefore concluded that October 2019 is the best date to make both changes”.
What is the logic of this? I see no particular reason. Is it because the Government have bought the bookmaking industry’s case in the series of red herrings that it put forward? It was talking about the time to implement technically and time to make preparations, all of which has been punctured by the all-party group on gambling abuse. The question of job losses has been punctured by not only the Landman Economics report but the CEBR report. In fact, the industry now derives 43% of its income from online gambling. The economic and the moral arguments, which were very well put by the noble Lord, Lord Stevenson, are very important in these circumstances, as are the societal arguments.
I have some questions for the Minister. First, what is the view of the DCMS Minister in this respect? Pledges were made by Tracey Crouch on this matter. Has she made a separate statement from that of the Treasury? I have seen no such statement. Secondly, has an independent outside assessment been made of the human costs of the delay involved, including the possible fatalities? Thirdly, was any independent economic advice taken or even a review made of the CEBR report? That report says not only that the gambling industry will be handed hundreds of millions in extra revenue, but that if the Treasury had brought forward the date further then it would itself benefit. We are in an Alice in Wonderland situation where the Treasury is making a decision which confounds all moral, societal and economic logic. I look forward to the Minister’s reply.
The Earl of Courtown
My Lords, I will be brief because other people no doubt want to get up as well. The noble Lord, Lord Clement-Jones, mentioned that we are in essence supporting the gambling industry on this. Nothing could be further from the truth. We have to take the job losses into account. We are interested not in the profit margins of the gambling industry but in trying to mitigate any job losses that happen in the future. I repeat what I said in the Statement: the Government were urged in an Early Day Motion in June by the FOBT APPG not to wait until April 2020 and we are not doing so. He also mentioned my honourable friend the Minister for Sport. I have had the great pleasure and honour of working with her for a number of years and she is an exceptionally fine Minister.
Paralympic Games 2016: Terrestrial Television
Debate between Earl of Courtown and Lord Clement-Jones
The Earl of Courtown
My Lords, the noble Lord, Lord Grocott, mentions the listing of different sports and their availability on free to air. He makes a good point. The ability of people to watch sport is very important because it helps to encourage the legacy of these great events, apart from anything else, and encourages more people to turn out. I shall read out something on the Government’s position:
“Government does not propose to reopen discussion on the Ofcom Code on Listed Events. Rather than being told by government what to show and what not to show on free-to-air television, it is for NGBs and other rights holders to strike the right balance between reaching a wide audience and using their rights to generate as much revenue as possible”,
which they will need to carry out these rights.
Lord Clement-Jones (LD)
My Lords, the Minister mentioned the superb coverage of Channel 4, as indeed did the noble Lord, Lord Holmes. Is it not time to end the uncertainty over the future of Channel 4, or is this another question for the next Prime Minister?
The Earl of Courtown
My Lords, as I think the noble Lord, Lord Clement-Jones, is aware, no decision has yet been made on the future of Channel 4. Her Majesty’s Government are looking at a broad range of options, including those proposed by the Channel 4 leadership. We want to ensure a strong and secure future for Channel 4.
Regional Museums
Debate between Earl of Courtown and Lord Clement-Jones(8 years, 7 months ago)
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The Earl of Courtown
My Lords, I think that the noble Lord, Lord Stevenson, knows his Shakespeare perhaps a little better than I do, and I would not like to put myself forward as any of the characters he mentioned. He has drawn attention to The Culture White Paper, which is of course very important. It sets out our intention to increase participation in culture, particularly by children and young people from disadvantaged backgrounds. As far as regional museums are concerned, we will be looking at the review of the sector and considering the role of the Government, the Arts Council and the Heritage Lottery Fund, as well as directly funded museums.
I should add at this stage a response to the noble Lord’s reference to a number of cuts. We urge caution when referencing data which some people have used from the Museums Association’s closure map. Many of the closures cited are no longer accurate; some museums have reopened or relocated while others have simply never closed. DCMS officials are engaged with the Museums Association and are keen to ensure that the resource is as accurate as possible.
Lord Clement-Jones (LD)
My Lords, perhaps I may cite another quotation from The Culture White Paper. The Government say:
“Museums are jewels in our national crown and we want to ensure that they remain so and are as best-placed as they can be to continue supporting our aspirations for access, place-making and soft power”.
What credibility does that statement now have? Is it not a bit of a hostage to fortune in the face of government cuts to local authority funding which, as we have heard, have caused the closure of so many museums?
The Earl of Courtown
My Lords, I should draw attention again to the points I have made on the Museums Association figures. We also have to look at new models of how museums are funded. As noble Lords have said, local authorities are significant funders of the arts. There are opportunities for new partnerships, and it is the role of the Arts Council to share good practice and help build capacity in both the cultural sector and local government. I can give a number of examples, such as Durham County Council’s recent blockbuster exhibition of the work of Yves Saint Laurent at the Bowes Museum. Any profits have been divided between the museum and the council.
Gambling (Categorisation and Use of B2 Gaming Machines) Bill [HL]
Debate between Earl of Courtown and Lord Clement-Jones
The Earl of Courtown (Con)
My Lords, I thank the noble Lord, Lord Clement-Jones, as ever, for this fascinating and very important opportunity to debate his Private Member’s Bill, not least because it offers the Government an opportunity to highlight existing measures in this area and to provide reassurance on what is obviously an emotive subject. All Members of the House are united in their view on these machines.
First, I will just touch on what the noble Lord, Lord Collins, said about the importance of bookmakers as a community asset. I remember from my youth spending quite a lot of time in what were then called turf accountants rather than bookmakers. The noble Lord, Lord Lipsey, is nodding—he knows exactly what I am talking about. They are a very important part of the community in the villages and towns in that part of the world.
I state categorically, particularly in response to the question asked by the noble Baroness, Lady Sherlock, that the Government understand the public concerns around B2 gaming machines and will continue to keep them under review. In April 2015, we introduced a series of measures to protect players, including regulations to end unsupervised high-stake play on B2 gaming machines and measures to give more powers to local communities by requiring planning applications to be submitted to local authorities for new betting shops.
Her Majesty’s Government subsequently conducted an evaluation of the regulations, mentioned by noble Lords, which put an end to unsupervised high-stake play on B2 gaming machines. The results were published on the government website on 21 January. In short, there are indications that, as a result of these regulations, players on B2 gaming machines may now be making a more conscious choice to control their playing behaviour. However, we believe it prudent to now consider the findings of the evaluation before deciding if there is a need for further action.
It is worth reminding the House that the industry has a responsibility to assist gamblers who display signs of problematic behaviour, including when playing these particular gaming machines. The betting industry introduced new measures in 2014 under its code on social responsibility, which was further updated in 2015. Many elements of the code were subsequently made mandatory by the Gambling Commission in its update of social responsibility provisions in its licence conditions and codes of practice in May 2015, including additional measures on gaming machines, requirements on shop window advertising and self-exclusion policies across the whole industry.
We believe that the measures that the Government, industry and the Gambling Commission are taking are currently sufficient to improve player protection across all forms of gambling, but we are equally clear that industry, along with the Government and the commission, should never feel that there is an end point to social responsibility.
The noble Lords, Lord Clement-Jones, Lord Foster and Lord Collins, and the right reverend Prelate the Bishop of St Albans mentioned the existing powers held by local authorities. I turn to the resubmission made under the Sustainable Communities Act by Newham Council and other local authorities for the Government to reduce B2 stakes to £2. Although the resubmission is currently under consideration, the Government are determined that local authorities should play a central role in managing local gambling provision—a principle deeply embedded in the Gambling Act 2005.
Although local authorities are bound by law to aim to permit gambling in so far as reasonably consistent with the licensing objectives of preventing crime and disorder, ensuring that it is fair and open and protecting children and vulnerable people, the licensing process gives authorities considerable scope to attach additional conditions to licences where necessary to achieve the licensing objectives, to review licences once they have been granted and to impose licence conditions after review.
On planning, the Government agree that responsibility for managing high streets should rest with local areas, and local authorities already have powers to control gambling premises in their areas. On recent changes, as noble Lords mentioned, new planning measures came into force in April 2015 which mean that planning permission is required for any new betting shop, allowing for a local decision.
It would not be appropriate for me to say much more on the issue while exchanges between central government and local authorities are ongoing in the wake of the Sustainable Communities Act submission. As I said, discussions with Newham Council on its resubmission are ongoing, and we will make a decision in due course.
The noble Lords, Lord Clement-Jones and Lord Collins, the right reverend Prelate and other noble Lords mentioned a review. In particular, the noble Lord, Lord Collins, mentioned a point made by my honourable friend Tracey Crouch—who, I should add, takes a particular interest in the issue of B2 machines. The Government are open-minded about the review, and will set out their view in due course. The noble Lords, Lord Clement-Jones and Lord Foster, drew attention to the rise in crime in bookmakers. Any rise in crime is concerning, and we and the Gambling Commission will look at the figures very closely, but it is important to state that the increase is from a low base. Any crime is unacceptable, but the level is equivalent to one instance per betting shop per year.
The noble Lords, Lord Clement-Jones and Lord Foster, and my noble and learned friend Lord Mackay raised the issue of money laundering—and we had amazing instruction from my noble friend Lord James of Blackheath. The Gambling Commission already requires operators to take measures to prevent money laundering through its licensing conditions and codes of practice, and it is currently consulting on regulatory changes to strengthen the fight against crime linked to gambling. In addition, the Treasury plans to consult shortly on the EU’s fourth directive on money laundering, which will introduce further measures in this area.
The noble Lords, Lord Clement-Jones and Lord Foster, raised the issue of planning powers in relation to bookmakers. Local authorities already have powers to control gambling premises in their areas. They can reject applications, grant licences with conditions, review them once granted and impose licence conditions after review.
My noble and learned friend Lord Mackay of Clashfern and the noble Lord, Lord Collins, raised the issue of B2s in Scotland. As they said, the Scotland Bill contains the agreed clauses necessary to take forward the Smith commission recommendation on B2s. The Bill will give the Scottish Parliament and Scottish Ministers the power to vary the number of subcategory B2 gaming machines permitted by new betting premises licences in line with the recommendations made by the commission. Both noble Lords raised other points in connection with that issue, and I will write to them to clarify our position.
The noble Lord, Lord Lipsey, and the noble Baroness, Lady Sherlock, raised an issue relating to the recent Paddy Power case. The dereliction of duty by Paddy Power is completely unacceptable. The case shows that bookmakers will not be able to get away with failing to meet their licence conditions. Gambling firms have a duty to comply with their licence rules to the letter, and must ensure that there is absolute consistency across their business. The Government will continue to monitor the effectiveness of existing gambling controls, and will take further action if required.
My noble friend Lord James of Blackheath and the noble Lord, Lord Foster, raised the issue of spin time. As they said, the spin time of B2 machines is about 20 seconds, compared to a rather faster B3 gaming machine, which has a spin cycle of about 2.5 seconds. As noble Lords will be aware, there is limited evidence on the impact of game speed on gambling-related harm. The Government are of course happy to consider any new evidence to inform policy in this area.
Several noble Lords, including the noble Baronesses, Lady Sherlock and Lady Howe, and the noble Lord, Lord Clement-Jones, mentioned problem gamblers on B2 machines. It is important to clarify this point. The sample of gamblers used in the RGT research was specifically sought to include a high proportion of problem gamblers to assess their behaviour on those gaming machines. The sample is therefore not entirely representative of wider gaming-machine players.
The right reverend Prelate the Bishop of St Albans and the noble Baroness, Lady Howe, also raised the issue of tax on B2 machines. I do not have the information available at present, and I will of course write to the noble Baroness and the right reverend Prelate. The Government understand the concerns about problem gambling and, in particular, about fixed-odds betting terminals. We are clear that this issue will be kept under continual review.
I re-emphasise that we will continue to keep this under review as well as the points relating to stake size. The Government continue to monitor the effects of existing controls and, if need be, will take action if they are found to be insufficient. The principal purpose of the Bill is to reduce the maximum B2 stake. There is no need to use a Bill to do this as a stake reduction could be achieved using the existing powers set out in the Gambling Act 2005, which enables changes to stakes and prizes for all types of gambling machines to be made via secondary legislation. However, the Government recognise that problem gambling, which has remained at less than 1% of the adult population, is not limited to one product or one issue, such as stake size. Making changes to B2 stakes now would tie the Government’s hands when trying to promote a comprehensive strategy.
Lord Clement-Jones
My Lords, before we proceed any further, can the Minister give us an indication of the timing of the review?
The Earl of Courtown
I am sorry I have not referred to that point, which was also raised by the noble Lord, Lord Collins. I cannot give any indication of that, but as soon as I am able to give any indication I will write to noble Lords and put a copy in the Library. At the moment, I am not able to give any more information.
We recognise this problem. The Bill would tie the Government’s hands when trying to promote a comprehensive strategy to tackle problem gambling across the piece. The Government therefore express reservations about the Bill.
Creative Industries
Debate between Earl of Courtown and Lord Clement-Jones
The Earl of Courtown
My Lords, the noble Baroness draws attention to music in education, in particular in the EBacc. Young people should have the opportunity to study art subjects alongside the strong academic core curriculum, including the EBacc. Music is a compulsory subject within the national curriculum for five to 14 year-olds. All pupils in maintained schools will therefore study music for a minimum of nine years.
Lord Clement-Jones (LD)
My Lords, I share the concerns of the noble Baroness, Lady Afshar, about EBacc. However, turning to another aspect of the creative industries, does the Minister agree that Channel 4 and BBC Worldwide make a major contribution to the creative industries, both here and abroad? Will he commit the Government to supporting and protecting Channel 4 and BBC Worldwide, subject to their current arrangements, so that they can continue to deliver those benefits?
The Earl of Courtown
My Lords, as ever, the noble Lord makes an important point relating to overseas, the BBC and Channel 4. I know he is aware that the charter review is in progress at the moment and many representations have been made. I also know that there was a Question last week on Channel 4, which was answered by my noble friend.
Legislative Reform (Exempt Lotteries) Order 2016
Debate between Earl of Courtown and Lord Clement-Jones(8 years, 10 months ago)
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The Earl of Courtown (Con)
My Lords, this order removes unnecessary regulation on certain types of small lotteries to enable greater opportunities for fundraising for charities and good causes. These are small-scale, locally run lotteries such as a raffle held at a school fair or a workplace sweepstake. They are known in the Gambling Act as “exempt lotteries”, being lotteries that are so small they are exempt from the licensing system.
The first change is to lotteries held incidental to an event. Currently, if an organisation holds a lottery alongside a commercial event, the organiser cannot retain the proceeds of the event, such as entrance fees, food or drink sales. The proceeds of the event, as well as the proceeds of the lottery, must be donated to charity. The end result is that organisers of commercial events are discouraged from holding lotteries at their events and charities are deprived of vital opportunities to raise funds.
Article 2 of the order therefore removes the requirement that the connected event be non-commercial. We think that allowing pubs, clubs, event and concert organisers, and other businesses to keep money from entrance fees, sponsorship deals, food and drink sales or commissions from traders will see an increase in the amount of money raised for charity. Most importantly, this will not affect the profits of the lottery. All profits of the lottery held in connection with an event will still be required to be donated to charitable causes.
At present, the results of a lottery must also be made during the event itself. Article 2 also removes this requirement. This now means lotteries that do not produce a result on the day—for example, a balloon race—can benefit charities.
Another way in which charities miss out on opportunities to maximise their fundraising efforts is through the restrictions placed on private society lotteries. At the moment, these lotteries are allowed to be held only where they benefit that particular society. The impact of these restrictions was made very plain in the responses to the consultation. Several charities said they had been approached by members of clubs wishing to support the charity through small private society lotteries, often as a thank you for support of a family member. However, under the current framework these lotteries cannot take place. Article 3 removes this restriction. Private societies will now be able to promote lotteries within their societies for the purposes of donating the proceeds to charity.
Article 3 also lifts restrictions on work and residents’ lotteries raising money for charity. Take for instance a sweepstake on the Grand National. Currently, the proceeds of lotteries such as this in workplaces or by groups of residents, for example in a university’s halls of residence, may not be used for anything other than prizes and the expenses of the lottery. This is an unnecessary restriction. Work and residents’ lotteries will now be able to make a profit and that profit will be able to be donated to charity. However, it is not the Government’s intention to make it mandatory for all work and residents’ lotteries to give their profits to charities; these lotteries are often played for fun and this element will be retained. Where a work or residents’ lottery is held for a non-charitable purpose, the “no profit” prohibition remains.
Article 3 also removes certain ticketing requirements for these lotteries. Tickets will no longer be required to display the name and address of the organiser and other information about the arrangements for the lottery. Given that tickets in these lotteries are restricted to a single site or premises, it is unnecessarily bureaucratic to require this level of information. We are allowing the organisers of such lotteries to ticket their event as they deem appropriate.
Article 4 amends Section 261 of the Gambling Act 2005 to extend the offence of misusing the profits of an exempt lottery to apply to these new, profit-allowed work and residents’ lotteries, ensuring them the same level of protection against fraud. Article 4(2) makes minor consequential amendments to the 2005 Act and the Licensing Act 2003 upon the removal of the requirement for incidental lotteries to be held in connection with a non-commercial event.
This order also creates common sense changes that remove unnecessary regulation of the very smallest lotteries. The order will allow many more people to hold fun and innovative events to raise money for charity. I commend the order to the Committee.
Lord Clement-Jones (LD)
My Lords, I thank the Minister for his very succinct introduction, and I thank all those who put the papers together, so to speak. Even though this is a relatively small piece of law reform, having a Keeling schedule is an enormously helpful thing—the sort of thing we cry out for on more complex legislation. My goodness, it certainly makes a huge difference when you are looking at something with this level of detail.
After something like eight hours’ debate last Wednesday on the subject of inappropriate statutory instruments, it seems rather strange to be welcoming a statutory instrument that amends primary legislation. However, it is a good thing that one is able to make amendments of this kind by an LRO because it would otherwise take years for the wheels to grind and come round to something of this kind, which, although relatively small, could have a significant effect on the objects of its reform and for the benefit of some of the smaller charities. Therefore it is heartening that the Red Tape Challenge extends in this way and that it can be implemented in this way.
We have all been brought up with raffles, and I like the way the impact assessment is quite blunt about the fact that we are talking about raffles here. However, I suspect that an awful lot of people who conduct raffles have no idea of the legal context in which they happen. I suspect that an awful lot of raffles are strictly illegal as regards what goes on. That applies to many workplaces, and—dare I say it?—may even apply to events organised by some political parties. Therefore, it is interesting that we can now look forward to raffles being conducted with a rather higher degree of legality.
In response to the paperwork—the impact assessment and what the Minister has had to say—there is a slightly apologetic tone to the impact assessment as regards the amount of evidence available on the possible benefits of this reform, which is quite interesting. It says:
“Reviewing the available literature, it is clear that there is an absence of basic facts, as well as detailed information on raffles as a form of giving”.
You do not often see that in an impact assessment. In a sense, we are being asked to make a leap of faith that this will benefit smaller charities. In this case perhaps we will not be so rigorous about demanding evidence-based policy, and let us hope that we see a positive impact on some of those smaller charity events, which will now be able to take place—dare I say it?—down our local. That would be extremely welcome.
I hope, however, given that there is very little evidence about what could happen, that the Government will at a certain point review how the operation of this reform has taken place—I do not know whether that will be after a year or two years—to see whether it is working out in a proper fashion or whether these changes have had unintended consequences. That would be beneficial for all of us.
The Earl of Courtown
My Lords, I thank both noble Lords for their contributions to this short debate. I thank the noble Lord, Lord Clement-Jones, for his support of the order and his comments on the success of the Red Tape Challenge. He made a number of comments, in particular about what happened in the Chamber last week. Of course, he would not expect me to comment on that. One should also look at the responses given to the consultation by the various stakeholders, which answer one of the points that the noble Lord made. The Lotteries Council, Cancer Research UK, the British Red Cross, Sue Ryder and Marie Curie cancer care all consider that this will help to increase the amount of money raised for these very important and valuable charities.
The noble Lord, Lord Stevenson, mentioned a number of matters and I will do my best to answer them all. As ever, if I do not answer them in enough detail I will write to him. He started by talking about a review of the performance of this order. We will take the noble Lord’s words into account and speak to the Gambling Commission on this issue. The noble Lord also mentioned the House of Commons Select Committee report on society lotteries, published in March 2015. He basically asked if the Government will adopt the recommendations set out in that report. The department is taking action on this. The committee said that the Government should seek advice from the Gambling Commission in relation to those recommendations. We have done so and await that advice. Any proposals will need to receive the approval of Ministers, which will happen in due course.
Lord Clement-Jones
Can I just check that the Minister is specifically saying that there will be a review by the Gambling Commission of this set of reforms? After how long will that take place?
The Earl of Courtown
It is probably best if I write to the noble Lord and give him the exact details of what is planned. Obviously, as I said from this position, there are some points that we will take back to the Gambling Commission. Once I have checked with the department, I will write to the noble Lord with exact details of any review. I will ensure that the noble Lord, Lord Stevenson, is also included in that.
Lord Stevenson of Balmacara
My Lords, I think we are slightly mixing up two issues here. The point made by the noble Lord, Lord Clement-Jones, was about this order and the effect it will have on those small lotteries and events run for residents. The question was whether there would be a review of that and I think the Minister will write to him about it. My point was about society lotteries and I did not refer to the House of Commons Select Committee. I could have done but chose not to because I wished to let the Minister know that the outcome of the debate we had in the House just before Christmas was a number of letters, including ones from those responsible for operating society lotteries. I wondered whether there was any progress there. I think the Minister was in the process of explaining that that is also being progressed.
Lord Clement-Jones
My Lords, that is precisely why I asked the question: there seems to have been a conflation of the two points.
The Earl of Courtown
I thank both noble Lords for explaining that position. The noble Lord, Lord Stevenson, made an important point relating to the Explanatory Notes. There is a mistake there, for which we apologise. The new text, which I am sure it is very important to have on the record, is that a work lottery or a residents’ lottery is now exempt in two circumstances: where the lottery is promoted wholly for a purpose other than of private gain; or where it is organised in such a way as to ensure that no profits are made. I hope that clarifies the position to the noble Lord. I will let him know what action needs to take place on that issue.
The noble Lord, Lord Stevenson, also referred to Article 4 and the changes to penalty. I should write on that in greater detail than I have available at present. As I understand it, this would bring the penalty into line with other offences under Section 261 of the Gambling Act 2005, but it is best if I write to him with greater detail on that issue.
The noble Lord also mentioned the debate that took place in the Chamber before Christmas last year. Yes, there was much mention around the House of this issue, and I know that the department is considering carefully what was said in that debate. If anything has arisen since then, I will write to the noble Lord on that.
I thank both noble Lords who have contributed to the debate and very much commend the order to the Committee.