Older Persons: Provision of Public Services

Lord Ashton of Hyde Excerpts

Thursday 13th June 2019 Lords Chamber

[Lord Browne of Ladyton (Lab)]

My Lords, I congratulate my noble friend Lord Foulkes on his introduction of the debate. I thank him for his remarks and for his consistent advocacy for the interests of older people, as I consider that I am one.

He has left us with very little to add; I am persuaded by his arguments. The Minister is in a relatively easy position because he has been a Minister since 2014 in his department and he must have dealt with at least some of the debate on the television licence since 2015. I am sure he will be able to answer in some detail.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

It was 2016, I am afraid.

[Lord Browne of Ladyton]

I apologise to the Minister. I will tell my officials that his CV is incorrect. However, in any event, I am sure he is ready to answer the best question of the day posed by my noble friend Lord Foulkes: how did the Government, post 2015, go into the 2017 election with a manifesto pledge on not only TV licences but free travel without working out how they were going to deliver it? It is the Government’s responsibility to deliver that manifesto commitment and to look after the needs of old and vulnerable people. Jointly, I am sure they have figured out in the past 24 hours how they will solve this problem. I have seldom seen a Secretary of State more discomfited at the Dispatch Box in the other place than the Minister’s was when he was questioned by one of his predecessors two days ago.

I am glad to follow the noble Baroness, Lady Greengross. She told us that she was a member of the Select Committee that tackled intergenerational fairness. Of all its members who recommended that free TV licences be phased out, she is the only one who has come here to own that recommendation and she deserves credit for that. I share her disappointment that none of the other interesting discussions and recommendations in the report have attracted any attention, other than the age-related benefits.

However, what did the committee expect? The nature of those recommendations was such that it was unlikely that anyone would go beyond them and look at anything else. The presentation of the report by its chairman, the noble Lord, Lord True—I am disappointed he is not in his place to answer some of my questions—led to a great deal of publicity, given that it contains sentences such as, “The Government needs to get a grip of these particular benefits”. The argument he put forward—that this type of benefit will lead to conflict between generations in the long term—is nowhere in the report. I do not believe that. I do not think that anyone of the younger generation resents the few things in these benefits that some older people are given to make their lives better, particularly those who are lonely or vulnerable.

If the Minister thinks that in the report of the Select Committee he will find arguments to deploy here that will protect the decisions that the Government have made, or allow them to revise their view of their manifesto commitment, he will be disappointed. He will see that the argumentation of this is one-sided. It concentrates on witnesses who gave evidence to the committee who were utterly predictable in what they said about these benefits.

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[Lord Ashton of Hyde]

My Lords, I start, with slightly less time than I should have, by thanking the noble Lord, Lord Foulkes, for calling this debate and all the contributions. I cannot say that it has been an altogether comfortable way to spend the past two hours.

The Government are committed to ensuring economic security for people at every stage of their life, including when they reach retirement, so I am pleased to say that relative poverty rates have halved since 1990. I am glad that incomes for over-75 households have increased much faster than average. The average income for all households between 1999-2000 and 2016-17 improved by 71%, but for households containing someone 75 or over, average weekly incomes more than doubled. The noble Lord, Lord Stevenson, mentioned some other statistics which I do not have in front of me, but I will get back to him on that and his other 15 questions later, and copy the answer to all noble Lords.

We want to maintain the achievement of raising average income for the elderly. We forecast to spend more than £120 billion on benefits for pensioners in 2019-20 and are committed to the triple lock for the duration of this Parliament, guaranteeing that both the basic and the new state pension, excluding protected payments, will rise by the highest of average earnings growth, price inflation or 2.5%.

The Government recognise loneliness as one of our biggest public health challenges. It is estimated that between 5% and 18% of all UK adults are always or often lonely. Frequently, feeling lonely is linked to early death. It is associated with an increased risk of coronary heart disease, stroke, depression and Alzheimer’s. We know that loneliness can affect people of all ages. As Jo Cox said, young or old, loneliness does not discriminate. We are working to help people of all ages to have meaningful social relationships and to avoid loneliness. We are the first Government in the world to appoint a Minister to lead work on tackling loneliness; I appreciate the comments of several noble Lords who acknowledged that.

Last year, we published the world’s first government strategy on loneliness, as well as securing £20 million of new grant funding for projects run by charities and community groups to bring people together. As the Motion suggests, the causes of loneliness and its solutions are many and varied. I much appreciated the ideas of the noble Lord, Lord Glasman, on that with respect to the elderly. I agree with him and other noble Lords that a debate on the wider aspects of this problem would be useful.

The loneliness strategy contains more than 60 policy commitments covering many aspects of people’s lives, from transport and health to education. For example, the Government are improving and expanding social prescribing across England. That will change the way in which patients experiencing loneliness are treated, connecting them to community groups and services through the support of link workers; 1,000 new, trained social prescribing link workers will be in place by 2020 and 900,000 will be referred to social prescribing by 2023-24. The strategy also announced the creation of a network of employers to take action on loneliness. More than 30 leading organisations, including Sainsbury’s, the Co-op, Transport for London and the British Red Cross, have signed up to this network, pledging to support their employees to avoid loneliness. We are also embedding loneliness into relationship education classes so that children can learn about it and the value of social relationships.

We agree that transport is vital to building and maintaining people’s social connections; it is therefore integral to the Government’s loneliness strategy. We have invested significantly in transport infrastructure, providing more than £61 billion in the five years up to 2020. That underpins much of what the Government can do to help people remain connected. We are also providing support to local bus services, community transport and community rail services.

For some people, a free local bus service can be a lifeline, providing access to healthcare and other essential services as well as allowing them to visit family and friends. To support this lifeline, the Government support council spending of around £1 billion a year so that older and disabled people can travel on buses for free. The Government remain committed to preserving the current statutory entitlement to concessionary bus fares. Therefore, last April, we announced a change in legislation to protect the concessionary travel scheme in its current form. However, we must recognise that providing free transport alone will not solve the problem of loneliness. Inclusive transport is key to our approach to the current transport network.

[Lord O’Neill of Clackmannan]

Can the Minister tell us why we should believe what he says about buses when the Government betrayed the trust they sought from the British electorate at the last election? They clearly broke their manifesto pledge there, so why should this promise be worth any more than the previous one?

[Lord Ashton of Hyde]

If the noble Lord is referring to TV licences, I will come on to them later. I hope that I will answer his question then. Of course, the fundamental difference there is that the power to do that was with the Government, not another organisation.

As I said, inclusive transport is part of our inclusive transport strategy, which was published last July, and our future of urban mobility strategy, which was published in March.

Turning to TV licences, I acknowledge and recognise the important role of the BBC in our national conversation and as a constant companion for everyone across the country, especially older people. From impartial news and current affairs coverage to its wide-ranging radio content, it provides something for everyone every day. We know the importance of providing such services, which is why we guaranteed the over-75 licence fee concession until June 2020. We know that television, radio and online services are powerful tools in combating loneliness and isolation.

The noble Lord, Lord Maxton, asked whether the scheme will continue in its present form. In the consultation, the public said that they want that; however, I accept that many changes in the competition and the provision of these services are coming. At the moment, the current charter arrangements say that the current licence will continue in its present form for the 11-year period. I do not know what exactly was said five or six Secretaries of State ago when this was agreed, but I know what was agreed and I will come on to that.

I stress to the noble Lord, Lord Addington, that when we agreed the five-year licence fee funded settlement with the BBC in 2015, the corporation was well funded to provide vital public services. We phased in the cost by providing £468 million in 2018-19 and £247 million in 2019-20, as agreed with the BBC. That is why, as I have said before in the House, the director-general said that the overall deal provided “financial stability”, in his words, and that the Government’s decision to put the cost of the over-75s on to the BBC had been more than matched by the deal coming back for the BBC. It was an agreement.

The licence fee income underpins the BBC’s important role in making sure that everyone can access the content that educates, informs and entertains. I noted earlier this week in the House that the Government did commit to maintaining the current licence fee—I mentioned that to the noble Lord, Lord Maxton. As part of that deal we unfroze the licence fee for the first time since 2010 by guaranteeing that it will rise each year in line with inflation. The BBC received over £3.8 billion in licence fee income, more than ever before. In return, we agreed that responsibility for the over-75 licence fee concession would transfer to the BBC in June 2020. Parliament consented to that and delivered it as part of the Digital Economy Act 2017. That is why we are disappointed that the BBC will not protect free television licences for all viewers aged 75 and over. Of the number of proposals on the table, the BBC has taken the most narrowly defined reform option.

Let me address directly the question put by the noble Lord, Lord Foulkes: why did we promise free licences for the duration of this Parliament when we cannot guarantee that the BBC will keep them free from 2020? That is because, as I have said, we agreed with the BBC at the 2015 funding settlement that responsibility for the concession will transfer to the BBC in 2020. That future concession was therefore a decision for the BBC. That was agreed by Parliament in the Digital Economy Act. The Secretary of State has said repeatedly that he expected the BBC to honour that agreement, and that is why we are disappointed. The BBC has acknowledged that the most vulnerable--the poorest pensioners who receive pension credit--will get the over-75 concession. Of course, as many noble Lords have said, there is a possibility that with the help of the BBC in making this available, an extra 600,000 people could receive pension credit because although they are eligible for it, they do not claim it. That would be a good thing and that is what the Government would like to see happen.

[Lord Browne of Ladyton]

Before the Minister moves on from this issue, is the agreement with the BBC enforceable? If so, do the Government intend to enforce it so that they can keep their word to the nation?

[Lord Ashton of Hyde]

The agreement with the BBC, which is in the Digital Economy Act, is what has happened. The BBC has the power and the responsibility to make a decision. It has made a decision and it is not a question of enforcing it. That is what is in the Digital Economy Act and that is what the BBC has done. It is its decision to do that because it is what Parliament gave it.

[Lord Browne of Ladyton]

I am sorry to take the Minister’s time, but what right does anyone have to be disappointed if there was no expectation? It is either an agreement or it is not an agreement. If it is a legal agreement that is enforceable, surely the Government have a responsibility for the third parties who are being affected by this to enforce the agreement.

[Lord Ashton of Hyde]

The agreement put into law in the Digital Economy Act was the power for the BBC to make the decision, so the BBC has done what it is entitled to do and what we gave it responsibility for. What I said was that the Secretary of State expected that because this was part of the agreement reached in 2015, the BBC would do what it said it would do. Oh, I am sorry, that is not true. It said it would do that part of the deal when it was made with the Secretary of State in 2015. The BBC made its decision, which it was entitled to do, and that is the situation.

I do not have much time because I want to allow a little for the noble Lord, Lord Foulkes.

On public services generally, to support care for the elderly the Government have given councils access to around £10 billion of additional dedicated funding for social care over the spending review period, including a £240 million adult social care winter fund for 2018 and 2019 to alleviate pressures on the NHS. This is the biggest injection of funding for winter programmes that councils have ever received. The investment in social care services allowed 65% of local authorities to increase home care provision in 2017 as a direct result of the £2 billion funding boost announced in 2017.

In the medium term, social care funding will be settled in the spending review, when the overall approach to funding local government will be considered in the round. The noble Baroness, Lady Pitkeathley—who has not given up after 22 years, I am glad to say—mentioned that we will bring forward at the earliest opportunity a Green Paper that will set out our plans to deliver a more sustainable social care system. She asked about the various candidates for leadership. The present Secretary of State, who I used to work with, takes this seriously and is keen to produce it as soon as he can. It will cover care and support for adults of all ages and will bring forward ideas for including an element of risk pooling into the system, which will help to protect people from the highest costs.

I agree with the noble Lord, Lord Foulkes, that the Government have an important role in working with charities, businesses, councils and other organisations which are already doing great work in bringing people together. We also have to create an economy which allows the ever-increasing expenditure that the noble Lord desires, otherwise we will simply transfer the problems to our children and grandchildren, which is not what we want.

We expect to publish the first annual report on loneliness later this year.

There are a number of questions that noble Lords have asked but, in the interests of time, I hope they will allow me to write to them and copy other noble Lords in on the answers.