Economy: Budget Statement

Earl of Listowel Excerpts

Thursday 22nd March 2012 Lords Chamber

[The Earl of Listowel]

My Lords, I shall address the issue of childcare and related issues. Professor Melhuish, in his presentation to the OECD in 2011, highlighted that China had invested more than any other nation as a percentage of its GDP in childcare in the past 15 years. The PISA organisation, which looks across the globe at educational performance, finds a very close connection between good-quality early years care and long-term educational outcomes. Although, in the past, Finland has been at the top of the PISA tables for numeracy, literacy and science, Shanghai is now at the top of those tables of achievement.

I thank the Minister for introducing the debate. I am grateful to him for reminding us of the investment by GlaxoSmithKline in Cumbria, and in the creation of jobs. The noble Lord, Lord Sheikh, also mentioned that. A number of other companies are also investing in this country and that is very good news. I noted what the Minister said about our infrastructure plans and the emerging economic giants, such as China. I shall return to that subject. I also noted what the noble Baroness, Lady Kramer, said about credit for small and medium-sized businesses. That is a recurring theme whenever I speak to owners of smaller and medium-sized enterprises. I welcome what the Government are doing in this direction although I wonder whether they might not go further still. I particularly welcome what might be seen as a small thing—the 5 per cent rise, or 37p increase, in the cost of a packet of cigarettes. Cigarettes are the bane of the nation’s health and that increase should be highlighted.

I am sure that all noble Lords are very concerned about the exceedingly high rate of youth unemployment, which stands at more than 1 million. I hope that the Minister will say something about the long or medium-term forecast on youth employment and that he will be able to offer some encouragement in that regard.

As I am a trustee of a child welfare organisation, the Michael Sieff Foundation, I would like to address three key points: childcare, strong family attachments and getting the professionals in place who can support families to be strong. I have already mentioned the importance of childcare. Recently, however, when speaking with Save the Children, I was reminded that the United Kingdom is among the three most expensive nations for childcare. Although I welcome the steps which this and the previous Government have taken to make childcare much more widely available, its provision is still very expensive. I hope that we might move towards the situation in many other nations where childcare is as freely available as school and health provision. If we want to compete in the future, we need to have easy access to good-quality childcare.

The noble Lord has referred to investing in the physical infrastructure, in roads, in universities and in academic research. I would like to say something about investing in the social infrastructure. If we want young educated people who do well, we have to acknowledge the importance of schools. It was interesting to listen to the comments this week of the Chief Inspector of Schools about the importance of school leadership and excellent teachers. In his view, we have the best cadre of new teachers, which is wonderful news. We are grateful to the previous Government as well as to the current one for their commitment to teachers and to education.

Academics say, however, that schools can make only a 10 or 20 per cent difference to the educational outcome for children, and that the biggest difference is determined by what happens at home. The principal indicator of whether a child will succeed in education is how successful their parents were in education. So we need to support families better. If a family experiences domestic violence in the home, if the parents are alcoholic, or if they are simply at loggerheads all the time, even the most enthusiastic and able teacher will find it difficult to get the child in that family to concentrate and do well in school.

We have a real issue with so many young men growing up without contact with their fathers. That issue again came to the surface in a recent report from the Children’s Commissioner on school exclusions. This report highlighted the large number of Afro-Caribbean boys being excluded from schools. A documentary that I saw a few years ago about a young Caribbean boy in a children’s home reminded me of the greater number of Afro-Caribbean boys in local authority care. We saw this boy at Christmas and on his birthday. His father had told him that he would visit but never turned up. The educational and life outcomes of so many young men are being seriously diminished because they do not have a father or steady male role model who will take a continuing interest in their education, and support and encourage them. I only have to think back to my own father to recognise how important he was to me and to my education. We must address this as a nation if we are to be as productive as we can be in future.

To do that, we need the right professionals in place. I spoke of the welcome recruitment of excellent teachers to the profession. The previous and present Governments have done good work with health visitors, and with child and family social workers. It was very encouraging to hear from Tim Loughton MP, the Minister in the Department for Education responsible for child protection. He took the trouble to spend a month last year in a social services department, shadowing social workers. He has a long-standing commitment to raising the status of social work. The Government, under David Willetts and Michael Gove, have raised the threshold of entry to social work. Many agree that the new generation of social workers is of the best quality that has been seen for a very long time. This is extremely good news.

We need to invest in these people. If we invest in accountants and lawyers, we pay the best money for the best people because our capital investment is so important. We need to take the same view with vulnerable children and families. If we fail them and they grow up without an education, dependent on the state and entering the criminal justice system, there will be huge costs to us. We have an ageing population and we need to make the most of every young person in the country. We cannot afford to depend on immigrant labour. Many other nations are competing for it. We must make the best of the resources available to us.

I am very grateful for the work of the right honourable Iain Duncan Smith, Secretary of State for Work and Pensions. He has worked for a long time with the Centre for Social Justice, which he set up to look at what he called broken Britain, and the families that are not functioning as they need to, and to support early intervention. It was encouraging last week to hear about his social justice strategy, and the mooting of an early intervention foundation funded by business to intervene early and effectively with families. The Labour MP for Nottingham North, Graham Allen, has worked with Iain Duncan Smith on these important developments.

I mentioned the costs of failing to intervene early, so I will wind up. We are of course in a terrible recession. Difficult decisions have been made about cuts, particularly to local authority budgets. Authorities have had to make tough choices and have chosen in particular to cut funding to charities that support families. One hears that many charities that supported struggling families are no longer there to do so. As soon as we can, we should start reinvesting in supporting those vulnerable families. We need to recruit social workers who will develop a network of foster carers, because they depend for support on good-quality social workers. We need teachers and early-years workers. In general, we need to think about the familial infrastructure of the country as well as the concrete infrastructure if we are to compete in future with countries such as China. We must think about how to make good-quality childcare more affordable and available. I look forward to the Minister’s response.

Child Trust Fund

Earl of Listowel Excerpts

Monday 28th February 2011 Lords Chamber

Asked By

[The Earl of Listowel]

To ask Her Majesty’s Government what plans they have to replace the child trust fund, abolished in the Savings Accounts and Health in Pregnancy Grant Act 2010, for children in the care of local authorities.

[The Commercial Secretary to the Treasury (Lord Sassoon)]

My Lords, the Government announced in October that we will create a new tax-free children’s savings account, which is likely to be known as a junior ISA. We expect the new accounts to be available later this year. It will be possible for local authorities to open junior ISA accounts for eligible children in their care. We are also exploring the possibility of facilitating a voluntary scheme for financial institutions and the third sector to contribute to the junior ISAs of children in care.

[The Earl of Listowel]

My Lords, I thank the Minister for his reply and indeed, the meeting with Mark Hoban, the Financial Secretary to the Treasury, and Tim Loughton, the Minister for children, to discuss this matter. Does the Minister agree that for our own children we would seek wherever possible to ensure that they have a capital asset so that when they move on to independent living they have money for a deposit on a flat or a car to assist them? Does he not further agree that we should ensure that children leaving care have a capital asset to put down for a car or to buy a new suit to get a job? Does he recall the strength of feeling around the House at Second Reading about the need for these young people to have such a capital asset? Given that, will he understand and consider the need to put on a statutory basis the funds that he has described, so that children can be assured of a capital asset as they leave care?

[Lord Sassoon]

My Lords, I very much appreciate that the noble Earl, Lord Listowel, keeps these important issues under discussion and alive in our thinking. It is important for all children to understand how to handle money, to be able to make the decisions that they need to start making as soon as they leave school and move on. This is not just a matter of amounts of money that are put aside, but of making sure that the mechanisms are there for all children to learn how to handle their finances as they progress through life.

As to the question of a statutory basis, as and when we come up with the detailed plans for the junior ISA, of course draft regulations will be issued for comment. I cannot confirm that there will be special provision other than in the terms that I mentioned whereby accounts can be set up for children in care to which local authorities and others can contribute.

Equality

Earl of Listowel Excerpts

Tuesday 8th February 2011 Lords Chamber

[Lord Sassoon]

My Lords, this Government are committed to the Child Poverty Act 2010. I note that the previous Government struggled somewhat with their previous child poverty target; the target to halve child poverty by 2010 was widely acknowledged to have been missed. This Government are committed to the targets in the Child Poverty Act and will bring forward a strategy by the end of March 2011.

[The Earl of Listowel]

My Lords, the Minister will recall that the right honourable David Cameron, the Prime Minister, appointed Frank Field MP to produce a report on child poverty, which he duly did and recommended early intervention. Is he aware of the report in yesterday’s Times in which Frank Field said that he is very concerned at the threatened closure of many Sure Start children’s centres? Will the noble Lord consider with his colleagues what might be done to prevent this? Frank Field suggests that local authorities should be made aware that shortly there will be new child poverty indices and that local authorities will fall down if they do not meet them and if they close these centres.

[Lord Sassoon]

My Lords, Frank Field’s work will indeed inform the child poverty strategy, which, as I said, will be coming forward by the end of March this year. In relation to his reported comments in the newspapers, the Government have introduced an early intervention grant amounting to £2.2 billion, rising to almost £2.3 billion in 2012-13. It is up to local authorities how they spend that and their other resources. We have taken away significant numbers of the ring-fenced targets that they had to meet. They have money with which to keep the existing network of children’s centres open and they have obligations under the Childcare Act 2006, but it is a decision for the local authorities.

Savings Accounts and Health in Pregnancy Grant Bill

Earl of Listowel Excerpts

Tuesday 7th December 2010 Lords Chamber

[The Earl of Listowel]

My Lords, I begin by declaring my interest as vice chair of the Associate Parliamentary Group for Looked After Children and Care Leavers, and as a patron of the Who Cares? Trust, an advocacy group working for the interests of young people in care, championing in particular their education over the years. I begin by expressing my gratitude to noble Lords for their concern about young people in care, which has been expressed on all sides of the House in the debate.

I want also to make an apology. I am sorry for giving a Second Reading speech in the procedural debate relating to this Bill last week. I recognise that I was trespassing on the conventions of the House. I ask the forgiveness of noble Lords, but as is often the case, there is little time to prepare for our debates and I was responding as best I could to the strong concerns of agencies working in this area.

I thank the Minister for his opening speech, but I was reminded that he is something of a purveyor of bad news and that it might be tempting for him to shut his ears to the criticisms being levelled at him. Recently I spoke to a man from Ireland who was over here to make money for a few weeks before returning to spend time with his family. He was doing this because there is simply no employment for him over there. So we cannot be complacent about the current extraordinary fiscal deficit. It was also good to be reminded of the positive indicators for employment growth produced by the Office for Budget Responsibility. A saving of £500 million will be made as a result of the abolition measures set out in this Bill, and I will come back to that in a moment. First, I ask the Minister whether he considers it likely, in the current circumstances, that local authorities will be able to fund the proposed ISA funds. Has he taken soundings to this effect?

I welcome the comment of the noble Lord, Lord Newby, on the need to focus particularly on this group of children. My noble friend Lady Howe spoke eloquently on their behalf, and highlighted the difficult period of transition for these children as they leave care. A quarter leave care at the age of 16, but despite the pilot schemes that have been set up to enable children to remain with their foster carers until the age of 18, many of them feel that they are being pushed out into the adult world prematurely. These children often have chaotic childhood histories, not only in their own families but all too often within the care system itself. They can be passed from foster carer to foster carer, to children’s home and then back again. So it is important to bear in mind that they may be beginning to put their lives together at some point between the ages of 18 and 21, and that this nest egg may be an important means by which they can change the direction of their lives during this time. The Minister may say that the £500 million has already been accounted for in the budgetary plans. I hope that he will consider whether there may be some scope for rebudgeting in this area.

I want to set out in some detail the proposal made by the honourable Paul Goggins. I know that this is a Second Reading debate, but since we will not have the opportunity to discuss any details in Committee or on Report, I hope it may be helpful to outline the key features of his proposal.

Any child who enters local authority care under Sections 20 or 31 of the Children Act 1989, or the equivalent legislation in Scotland and Northern Ireland, and remains in care for a minimum of 13 weeks, would be eligible for a junior ISA. After 13 weeks the responsible local authority must send the child’s details to Her Majesty’s Revenue and Customs, which will then open an account. HMRC will make an initial payment of £250. The responsible local authority must notify HMRC if the child spends more than 26 weeks in the next year in care. HMRC will then make a further contribution of £100. The same applies in any subsequent year that the child spends in care until he reaches his 18th birthday. Local authorities, which are the benefactors, can contribute additional amounts to the account subject to the general conditions laid down in relation to a junior ISA. No child who has a child trust fund would qualify for a junior ISA under this scheme, which applies equally to children in England, Wales, Scotland and Northern Ireland. I shall not go into too much detail but the overall annual cost of the scheme is estimated to be £6.6 million—however, this has to be an approximate figure.

The noble Baroness, Lady Noakes, raised an important point generally about how the child trust funds might be misused at the age of 18 or whenever the child benefits from them. This may apply particularly to looked-after children when they come of age and we will need to look carefully at how the money is administered to ensure that it is used in their best interests and not to their detriment.

I hope to short circuit much of what I had planned to say. Will the Minister meet with interested Members of your Lordships’ House early in the new year so that we can discuss what provisions might be put in place to secure the interests of children in care? Given that there will be no opportunity for further deliberation and the many concerns which have arisen, it is important that this issue is not lost. I hope the Minister will consider that.

I pay tribute to the work of the right honourable Iain Duncan Smith and the Centre for Social Justice and to their recognition of the needs of these children and the way in which we have let them down in the past. I also pay tribute to the previous Government for the many measures they took to improve outcomes for children. I know it sometimes seemed that they were investing huge sums of money and were making little progress, but it is encouraging to learn from the latest research that 10 years ago only 1 per cent of children in our care system went on to university; now it is 8 or 9 per cent—a 800 per cent increase or more. It is still poor, but it is a vast improvement on the past. We need to sustain that momentum; we must not fall back when it comes to keeping our eye on these children. It is not that we do not care about them but, if we do not prioritise them, they will simply fall back again because their needs are so complex and so difficult to meet.

I pay tribute also to the Frank Buttle Trust and its chief executive, Gerri McAndrew. The trust has played an important role in this improvement with its kitemark universities, ensuring that care leavers are given the support they need at university. I look forward to the Minister’s response.

--- Later in debate ---

[Lord Sassoon]

My Lords, I am grateful to the noble Lord. He is right to say that some of these points were raised by him, which is why I thought it was right to address them. This is an important point. I can confirm what he asked me to confirm, but I think that I should move on to address some of the many other points that were made on this money Bill.

The point that attracted the most interventions—and it is an important point—was on junior ISAs for looked-after children. That point was raised at the opening of the debate by the noble Baroness, Lady Thornton, who reminded us that proposals were raised in another place in that area, and a number of my noble friends and the noble Earl have touched on the point. I start by reiterating what my honourable friend the Financial Secretary said in another place—that we would need to think about this carefully and that we will think about it carefully. He has had conversations and we need to recognise the limitation of resources that are available. There is certainly no unallocated funding in the Department for Education budget that could be used for it, but we are considering the issue. My honourable friend is going to work with the Minister for Children. He made it clear that if we wanted to do something in this area, it would be possible to do it outside the scope of this Bill—a point which I think was touched on by the noble Baroness, Lady Howe of Idlicote. It does not require the Bill to be in place. I think that the noble Lord, Lord Griffiths, also touched on that point.

I assure my noble friend Lady Browning that I do indeed talk to my colleagues. I was talking to the Financial Secretary only this morning and I shall relay these messages back in. Yes, the Treasury is a siloed place. My proposal that Ministers in the Treasury should all sit in an open-plan office has not yet found favour but my noble friend encourages me onward in that objective. The noble Earl also made a practical suggestion on whether an additional meeting involving noble Lords would be helpful. As I have said, my honourable friend the Financial Secretary is having meetings. I am not sure which additional meetings would be helpful but I certainly accept his offer.

[The Earl of Listowel]

If it might help the Minister, it might be particularly useful to meet the Minister to discuss this with his honourable friend and with Mr Tim Loughton early in the new year. That might be welcomed by your Lordships—as I look around the House, perhaps not—but that was certainly the sort of thing that I had in mind.

[Lord Sassoon]

I will relay the message back and discuss it with the Financial Secretary. There were also questions on the capacity of local authorities. My noble friend Lady Ritchie of Brompton gave the most considered view from a local authority perspective, as she should. She talked about local authorities being under pressure. Certainly, I did not hear her say that it would be impossible for local authorities to find funding in these areas, but of course they have to make difficult choices—ones which, going forward, will not be constrained by so much ring-fencing in their budgets, as has been recognised.

Comprehensive Spending Review

Earl of Listowel Excerpts

Monday 1st November 2010 Lords Chamber

[The Earl of Listowel]

My Lords, I shall endeavour to be brief, as the hour is late. I thank the Minister for his opening remarks and particularly for the emphasis that he put on protecting the vulnerable in society, especially children, in this very difficult time. It is an honour to follow the noble Baroness, Lady Hughes, who championed children, particularly children in care, during her term in government. I acknowledge the support that she gave to support workers and the introduction of newly qualified social worker status, which is so important. I share her concerns.

I understand and applaud the Government’s general emphasis on devolving decision-making to those who are nearest the front line, whether they be doctors, social workers or local authorities. I applaud the principle of that. But every principle needs a balance; there is an exception to every rule. I recall particularly the role of Louise Casey, employed by the previous Government to tackle the problem of rough sleeping. During her three years as the homelessness tsar—I followed her progress from the very beginning—she managed to reduce the level of rough sleepers on our streets by a third. She could do this because she was able to knock heads together; she could act strategically. Although charities had been doing a good job for many years, they were not succeeding in getting adults and young people off the streets. They were pushed to work together and achieve their goal. Some issues require a strong central focus if they are to be addressed.

I also share the noble Baroness’s concerns about councils not being able to protect the most vulnerable children. Each year, inspections show the difficulty surrounding thresholds for access to services. Those thresholds will inevitably be pushed up if those services are not funded adequately.

I ask the Minister to consider the impact of budget cuts particularly on child and family social work. I know that it goes against the grain of all current policy, but will he consider ring-fenced funding to support such work? I ask him to monitor closely the impact of cuts on child and family social work numbers and on child and family social work caseloads. Will he examine the early intervention guidance—I welcome the early intervention fund that the Government have introduced—to examine how that might benefit child and family social workers?

History tells us what happens when child and family social workers are neglected. It is arguable that the whole profession has been demoralised after decades of neglect. In evidence to the inquiry led by my noble friend Lord Laming into the death of Victoria Climbié, Haringey Council was described as being overwhelmed by the demands on its child protection service. The principal social worker involved was young and inexperienced, and had above the recommended caseload.

The right honourable Ed Balls, the Secretary of State for Children and Families in the previous Government, said shortly before the last election that if he had one regret, it was that he had not done more for social work earlier. Tim Loughton MP, when shadow Minister for Children, published a report for the Conservatives, assisted by the noble Baroness, Lady Morris of Bolton, entitled No More Blame Game, considering how the profession of child and family social work could be given the status it deserves. Many have welcomed the measures that the previous Government and the new coalition have taken to raise the status of child and family social work, to address its variable quality and to recruit and retain sufficient good social workers.

In the past week, the chief executive of the Children and Family Court Advisory and Support Service, Anthony Douglas, has told me that, every month so far this year apart from June, there has been a rise in the number of children being taken into public care. Paul Ennals, chief executive of the National Children’s Bureau, has told me that the number of children classed as at risk, the number of children for whom care orders are being sought and the number of children for whom a court order is secured are all rising. In a time of recession, and following the Baby Peter case, the burden on child and family social work increases. At the same time, local authorities will see a cut of 28 per cent in their budgets—7.1 per cent per annum.

I welcome what the Minister said about the £2 billion additional funds for social care. However, that is somewhat of a small amount compared with the amount being cut. I am sure that local authorities will not wish to touch child protection and wish to support children in care. However, many may feel obliged to, as the noble Baroness, Lady Hughes, said. One risk will be the decline once again in the quality of child and family social work.

Indicative of the success of past investment is the rise in the number of children leaving care to enter university. About 10 years ago, Professor Sonia Jackson put this at 1 per cent of care leavers—a shocking figure. Recent research from the Institute of Education has pointed to a rise to 9 per cent of care leavers now attending university. That is well below the 40 per cent national average, but still a 900 per cent improvement on 10 years ago. I hope noble Lords will agree that that is very significant and good progress.

One of the many highlights of my short career in the Lords was becoming acquainted with a young woman who was in her final year at Oxford University. She had left care with no qualifications, but she had been befriended by the head teacher of an independent sixth-form college, who supported and encouraged her. She kindly corresponded with me and wrote to me when she successfully graduated. It is so marvellous to think that there are possibilities for more young people to have that sort of achievement. A significant section of those young people might have done so much better in their education and careers. I am afraid that we have let them down; we have not met the challenge of supporting them to achieve their goals. Many of them are very intelligent but they have not had the support to have a go at it.

If the quality of child and family social work is compromised, fewer young people in care are likely to make it to university. We are also likely to have more cases similar to that of Baby Peter. The reputations of local authorities will once again be besmirched. Some of the stain may also stretch to the Government, undoing the work that the right honourable Iain Duncan Smith and others have done to show that this Government serve all and have a particular interest in vulnerable children.

What can the Minister do? First, I ask him to consider ring-fencing some funds and offering them to local authorities for investment in their child and family social workers. Every rule should have an exception; child and family social workers provide a service almost exclusively to the vulnerable. There are no confident, eloquent, well educated middle-class parents to take up their cause. Savings in social work could be made in several ways; the noble Lord, Lord Newby, alluded to some in adult social care. He may wish to know of the work of Paul Fallon when he was director of services at Barnet, where he reduced the vacancy rate of social workers from 30 per cent to 3 per cent in three years. By taking money in advance, he could take so many social workers employed on a temporary basis and turn it into a permanent basis, thereby saving a great deal of money for the buyer. There is also the model at Hackney, which has been employed for the past two or three years and has produced a saving of 5 per cent and turned around cases much more quickly, so saving money in that fashion. So there are means to save money, but even with these, a service starting from such a low base must be at grave risk in the face of such severe cuts. I urge the Minister to consider a ring-fenced fund for child and family social work for the next three years to help social work to survive the transition to the new funding climate.

The Options for Excellence ring-fenced funding for children in care provided 10 years ago for a three-year period has contributed to the dividends that I have described, and was very much welcomed at the time.

I ask the Minister to consider the guidance on the early intervention fund. I welcome Her Majesty’s Government’s introduction of such a fund to protect early intervention with families. I ask them to consider whether guidance on this fund might encourage local authorities to apply it to child and family social work, to child protection and to supporting children in care.

If child and family social workers are not replaced as they move on, if vacancies and caseloads rise, we will have more Victoria Climbiés and Baby Peters. I ask the Minister to consider how he will work with local authorities to prevent this happening. Also at stake are the reputations of local authorities and this Government.