Wales Bill

Debate between Jo Stevens and Carolyn Harris

Ping Pong: House of Commons
Tuesday 24th January 2017 Commons Chamber

[Jo Stevens]

My hon. Friend is absolutely right. The Government have the opportunity to accept that we could lead the way in Wales. The Secretary of State has already pointed out that he is aware of the social and economic problems that these machines cause, and despite the Department for Culture, Media and Sport’s review, the Bill represents an opportunity. We know what the problem is, and we know we could deal with it right now.

The Secretary of State says that the Government’s intention is simply to match the powers given to Scotland, but the devolution arrangements for Wales, England and Scotland are already different—they are not in alignment—so there is no reason why the Government could not accept our amendments today and agree to the lowering of the stake and that all current and future machines should be covered. Anything less than that would be a bureaucratic nightmare for the Assembly and only half a solution to an already accepted problem. It is unacceptable for the Government to refuse to give the Welsh Assembly the full powers that it needs to deal with this problem simply because Scotland does not yet have them.

There has been a 50% increase in betting shops in Welsh town centres since 2004, but that overall statistic masks the true story. The Campaign for Fairer Gambling shared with me some research from Geofutures showing what many Labour MPs already know: there are four times as many betting shops in areas of high unemployment than in areas of low unemployment. The machines are deliberately placed so that people who are least able to cope with the drain on their finances that problem gambling can cause are subjected to the highest exposure to those machines most likely to cause it.

These terminals allow players to stake up to £100 every 20 seconds, which is why, although only 3% to 4% of the UK population use FOBTs, those players account for 66% of all UK gaming machine losses. Already massively profitable bookmaking companies benefit even more from the losses on those terminals, to the tune of £1.7 billion just in the last year across the UK.

It is not only Opposition Members who think that this is a problem. Polling carried out by 2CV for the campaign showed that 82% of betting shop customers perceived the use of fixed odds betting terminals as an addictive activity, with 32% of those borrowing cash to feed their habit. It also showed that 72% had witnessed violent behaviour emanating from players using the machines. Other research has backed this up, consistently showing that fixed odds betting terminals are one of the most addictive and problematic forms of gambling. One study published in a journal from the Cambridge Health Alliance, a Harvard Medical School teaching hospital, found that the terminals had a fourfold correlation with problem gambling, which is higher than any other gambling product available in the UK.

The machines are already causing real and lasting damage to some gamblers and they exacerbate problem gambling more than any other form of betting. If the UK Government will not tackle this issue now, they need to give the Welsh Assembly the power to do that in Wales. The power to regulate existing machines is crucial to tackle the harm that they are causing in many communities across Wales, and our amendments would help to ensure that all such machines were regulated. I urge the Minister to follow his own logic, to be innovative and to accept our amendments. If he does not do so, I am ready to test the will of the House, certainly on amendment (a).

[Carolyn Harris (Swansea East) (Lab)]

I welcome the consideration that colleagues in the other place have given to this matter. I declare an interest as chair of the all-party group on fixed odds betting terminals, which are affectionately known as FOBTs. As many colleagues know, I have campaigned on this issue for more than a year. Sometimes I feel that it has taken over my life. There are 35,000 FOBTs located in high street bookmakers up and down the UK. These high-stakes, casino-style games are in low-supervision environments and are easily accessible to those who are most vulnerable to gambling-related harm. In Wales, there is a growing problem with FOBTs in local communities. According to the latest statistics, more than £50 million was lost on FOBTs in Wales in 2015.

The Lords amendment is welcome, but it does not go far enough. Powers should be devolved to the Welsh Assembly to allow local authorities to deal with existing clusters of betting shops in deprived areas. The most effective way to do that would be to reduce the maximum stake playable on a FOBT to £2, but the power to achieve that is not included in the Bill. There are growing calls for a reduction in the maximum stake, with more than 93 local councils across the UK, led by Newham Council, having now petitioned the Government to reduce the stake to £2.

The all-party group has concluded its inquiry into the machines. We found beyond reasonable doubt that the maximum stake on a FOBT should be reduced to £2 on a precautionary basis, in line with the objectives of the Gambling Commission. The full findings of the report are due to be published shortly, and we have been encouraged by the willingness of Ministers at the Department for Culture, Media and Sport to work with us on this issue. I very much hope that they will respond positively by reducing the stake and properly regulating FOBTs. I eagerly await the result of the current stakes and prizes review.

These machines are directly linked to problem gambling, with four out of five FOBT gamblers exhibiting problem gambling behaviour at stakes in excess of £13 a spin, compared with one in five when stakes of £2 and under are involved. FOBTs cause significant economic and social problems. In particular, they lead to increased incidence of money laundering in bookmakers, as the gambling activity is largely unsupervised and it is therefore relatively easy for fraudsters to use it as a way to clean their money. They are also leading to more problems as players take out payday loans to sustain their FOBT usage. Increasing crime levels have also been reported, with betting shops now accounting for 97% of all police call-outs to gambling venues. Up to September 2014, there was also a 20% increase in police call-outs to betting shops. There has been a clustering of betting shops on Britain’s high streets, with a 43% increase in the number located in towns and city centres. This is destroying the health and vibrancy of our high streets.

The most effective way to limit the harm of such machines is to reduce the stakes, which are currently set at up to £100. A substantially lower stake would bring FOBTs into line with machines in other low-supervision environments such as adult gaming centres and bingo halls. The Gambling Commission itself says that if stakes were being set now, it would strongly advise against £100 stakes on a precautionary basis. A lower stake of £2 is the level that the previous Government said would bring adequate public protection. I encourage the Government to support amendment (a) to the Lords amendments, to devolve powers to Wales and to allow local communities to tackle the problems caused by FOBTs. Such a proactive move not only would recognise the danger of these addictive machines and establish good practice to protect our communities from it, but would be a positive step towards ensuring that we, as a society, take our moral responsibility seriously.

Under-occupancy Penalty

Debate between Jo Stevens and Carolyn Harris

Tuesday 23rd February 2016 Westminster Hall

[Jo Stevens]

On the point about the bedroom tax financially punishing people, does my hon. Friend think that it causes people to go to payday lenders such as Wonga and take out loans with extortionate interest rates to survive?

[Carolyn Harris]

I certainly do. I have casework involving people who have taken out payday loans from Wonga and other organisations and have been unable to repay them without not paying their bedroom tax. It is a Catch-22.

The bedroom tax financially punishes those forced to pay it. It discriminates against communities and individuals, and makes them unable to gel and enjoy stable, sustainable and adequate housing in a community where they can nurture and mutually support each other, and be part of a productive citizenship and community enterprise.