Tackling Financial Exclusion (Financial Exclusion Report)

Lord Bishop of Birmingham Excerpts

Monday 18th December 2017 Lords Chamber

[The Lord Bishop of Birmingham]

My Lords, as we resume the debate on Tackling Financial Exclusion: A Country that Works for Everyone?, there can be no more poignant reminder of the issues raised in the committee’s report and the seriousness with which we need to take its challenge. As the Bishop of Kensington said in the service just mentioned by the noble Lord, Lord Bourne, we can be too wrapped up in our own interests and prosperity, but we might just now turn outwards towards each other—a society known for listening, compassion and love.

As noble Lords have heard, the Select Committee did a lot of listening and we know that finance affects every person in the land, from the poorest to the richest. Our knowledge and appreciation of the many interventions, whether the basic bank account promotion, the control of payday lending or the encouragement of education in personal and household budgeting, has increased. Our imagination has also been stimulated and sometimes appalled by the testimony of those not included in the ordinary money transactions most of the population take for granted. In her introductory remarks, the noble Baroness, Lady Tyler, mentioned some of the statistics that back that up.

We are on a journey. There have been some achievements, going back as far as the government strategy of 2004, the taskforce of 2005 and the commission that reported in 2015. The present Government’s response to the committee’s findings is also welcome, if, as the Minister will have already realised, some of us think it has been a bit too mild. There is a long way to go towards full financial inclusion, the lack of which, in a mature economy, illustrates starkly the relationship between poverty and power, between the person and the policy, between the micro and the macro, and the breathtaking inequalities in income, housing, health and education already mentioned by several speakers this evening.

I draw noble Lords’ attention to just a few of the many recommendations in this complex subject that have already been referred to in the debate so far, from chapter 7, “Credit and Borrowing” and chapter 8, “Welfare Reform”. The sharp reduction in payday lending by regulatory action made us face up to the ease with which it is possible to fall into unmanageable debt. Other reasons have also been mentioned tonight, including gambling. Other high-cost credit areas, again referred to by the noble Baroness, Lady Tyler, being reviewed by the Financial Conduct Authority, should also be considered for regulation, as in recommendation 16. What is the timetable for the Financial Conduct Authority policy review on further interventions, mentioned in the government response at paragraph 5.41? At the same time, further support for the affordable credit industry should be provided, with, as we have heard, investment capital rather than grant or revenue funding. This, if supported, could be directed especially at credit unions such as the effective but underfunded Advance Credit Union at Erdington in my own diocese. What specific targets would the Government support for this ambition, as in paragraph 5.50? Alongside the well-needed, well-designed support there also need to be light-touch fees and regulatory regimes appropriate for these small and medium-sized financial enterprises.

The fruit of these recommendations, if we needed any incentive, will be seen in the removal or reduction of the poverty premium and, beyond that, the possibility of people beginning to save for the first time in their lives. Chapter 8, “Welfare Reform” deals with how the ordinary ambitions of people trying to participate responsibly in the economy have been hindered by the implementation of the worthy ideals of universal credit. Here, we recommended the abolition of the seven-day waiting period and flexibility in the frequency of payments. I note the Government’s optimism in paragraphs 5.51 to 5.55, but we have to realise that the tragic consequences of the failure of tightly managed household budgets are seen at food banks and places of welcome all over the country. Those applying for universal credit are being given impressive support by the Just Finance Foundation and Just Finance Black Country, by the Good Things Foundation, supported by Lloyds Banking Group, by Christians Against Poverty with its debt centres, four of which are in Birmingham, and by other money advice centres.

These actions and most of the issues raised in the committee’s report are well documented close to the people; for example, in my own area by the Birmingham Financial Inclusion Partnership, which I commend to the Minister. By way of general requests, in addition to the challenge to the Government to attend to the 14 other recommendations that have not so far been tackled, will the Minister recognise and commit to the need for the continuous, top-level leadership from government mentioned by the noble Baroness, Lady Tyler, in focusing on the multiple remedies to reduce financial exclusion? I know various people have been named tonight as being responsible, but this matter is so complex and serious for the welfare and inclusion of the whole population in our successful economy that it needs the very highest level of attention and a report back to this House.

Will the Minister give further support to those local authorities that have well worked out but underresourced strategies for reducing financial exclusion? Thirdly, will he recognise and give vigorous support to the role of the NGO, charity and faith sectors in meeting personal needs, both for practical, life-saving assistance and sustainable money advice? In the minute left to me, I express the hope that in future we may take time to reflect at the macro level on the bigger question of the meaning and uses of money and to examine our own assumptions about the systems we operate. In a city where Winterval, if I may mention this to the noble Lord, Lord Patten, has been abolished in favour of religious traditions from all backgrounds, perhaps we might, at this end of term, look to the vulnerable baby with an unmarried, teenage mother and a compassionate foster father, who had the attention of rich philosophers, poor shepherds, powerful governors, a reluctant innkeeper and even joyful angels; a baby who grew up to teach that crumbs from the table were not enough and that nothing less than a much larger table, at which all could share the feast, would do.

Overseas Aid: Post-2015 Development Agenda

Lord Bishop of Birmingham Excerpts

Thursday 25th July 2013 Lords Chamber

[Baroness Northover]

If the noble Baroness looks at the 12 goals, and I am sure that she has, she will see that they include the issues that need to be addressed. For example, goal 8 is to,

“create jobs, sustainable livelihoods and equitable growth”.

I think that that addresses the problems that she highlights.

[The Lord Bishop of Birmingham]

Like other noble Lords, I applaud the Prime Minister’s initiative and leadership in this area and encourage him to press on. In view of the importance that the report attaches to gender equality and empowerment, can the Minister confirm that the Government will look to next year’s UN Commission on the Status of Women, which starts in March, to build consensus among UN member states on this matter, ahead of any final negotiations on the post-2015 development agenda?

[Baroness Northover]

I can assure the right reverend Prelate that we are already doing that. A great deal of work went into ensuring that this year’s CSW could reach agreement. It required a lot of work but we were delighted that that agreement was reached. We are already working on the next one and are delighted that the second of the 12 goals is on gender equality.

English Cathedrals

Lord Bishop of Birmingham Excerpts

Thursday 28th June 2012 Lords Chamber

[The Lord Bishop of Birmingham]

My Lords, I am grateful to the noble Lord, Lord Cormack, for the opportunity to celebrate the good news of our English cathedrals. He will understand that if you want to find a Birmingham cathedral, you are more likely to come to it by the future HS2 rather than by a leisurely trip up the east coast. What you will find there is a jewel by Thomas Archer, who built St Philip’s parish church on the highest point of the burgeoning new town that would fuel the industrial expansion of Britain. It was built in 1715. That building is now in the heart of the commercial and professional centre of the largest UK city outside London. It is an oasis of prayer to which people, whether visitors or citizens, come day by day to enjoy a beautiful space in which our new dean, Catherine Ogle, says you can do only one thing, and have that enhanced by the magnificent Burne-Jones stained glass windows.

At the same time, as we will probably hear again today, the choral tradition in Birmingham is of a very high standard, to the extent that Hamish Pringle recently commissioned a new choral work, based—the noble Lord, Lord Cormack, will be pleased to know—on the King James version of John, chapter 1, verses 1 to 14, which is available for parish churches as well as high days in the cathedral. The work of a new young composer, Alexander Campkin, is thus in the heart of one of our great commercial cities.

Of course, as your Lordships may know, the number of young people applying to join cathedral choirs has increased by 6.8% over the past 12 months. That is the obvious but, across England, a living cathedral is a place of civic, cultural and inter-faith engagement. We find that no less so in Birmingham than across the country. It is also a springboard for, if I may indulge this phrase, growing confident Christians in our urban and rural areas. You will find programmes not just about engagement with the regional bankers and Chatham House seminars, following the difficulties in the debate about capitalism last year, but programmes that encourage practising Christians at work to examine what it means to live well in our local community.

That is just one example of what is happening all over the country in our 42 cathedrals. We are seeing, as your Lordships will again know, a steady increase in regular congregational attendance of some 3% a year. That has been going on over the past 10 years. Furthermore, special events and regular public and civic events are even more popular than they have been for years. In 2011, for example, over 3,000 special services attracted 1 million people, and 1.84 million attended public or civic services. Our cathedrals have approximately 12 million visitors a year. They have 15,000 volunteers, people who give up their time freely to enable these places, about which we have heard that the heritage is so important, to be places of living prayer, worship and community engagement. Over 300,000 children attend our cathedrals for educational purposes during their curriculum learning in term-time.

As you look around the country—I hope that we will hear more about this from others in a moment—you will find particular things happening as the cycle of events goes on. We have heard that Coventry Cathedral has just celebrated its 50th anniversary. Of course, it has a distinctive contribution, as so many cathedrals do. In this case, it is the Community of the Cross of Nails, a world-wide gift of reconciliation in a troubled world. In Winchester, the Winchester Bible is now redisplayed. In Truro, the cathedral has been engaged in a county-wide renewal through Inspire Cornwall.

We have heard from several speakers already that this comes with a huge implication for resources. When noble Lords reflect on the age, scale and complexity of the buildings, it will not surprise them that it is estimated that some £100 million over 10 years needs to be spent across the country in ordinary cyclical repairs. I am not talking about the marvellous things that are inspired by English Heritage and other grant-making bodies, but £100 million over 10 years just to keep thing in place. Indeed, since 1991, at least £250 million of repair works alone has been carried out in English cathedrals. Of course, you can follow all this up in the English Heritage Fabric Needs survey. We have been reminded that there is no core state funding for English cathedrals. I am not going to go down that route myself but, while new work and exciting developments are funded generously, routine repairs are much more difficult. There is still a gap between the cathedral’s division grant and the overall cost that has to be paid every year.

Cathedrals are enormous, historic, heritage, prayerful, worshipful places of sanctuary for people who are shy of religion. They are places where people can come and rediscover wonder and awe, both through art and music, and, simply, the power of prayer. Their role in the life of our nation’s cities is immeasurable: civic, cultural and spiritual. It will be a huge boost to the confidence and morale of all these people who are involved, hundreds of thousands of them, in our cathedrals to hear Her Majesty’s Government give a ringing endorsement to our cathedrals in every aspect of public policy.