(11 years, 4 months ago)
Lords ChamberMy Lords, I had not intended to speak. I know that it is unusual for there to be so many interventions from these Benches. I believe that one point has not yet been as fully made as it might have been. I was prompted to these remarks by listening to the noble Baroness, Lady Farrington. I agreed with most of what she had to say, but I was led to a very different conclusion. I fully agree with her understanding of church schools and what they exist for. For that reason, I have always refused to fall in with lumping church schools in that easy category of faith schools. The Church of England schools—this is particularly true of the primary sector—exist as part of our mission to the whole community. We are there to serve the community as a whole. To that end—I speak as a former teacher, governor and chair of boards of education—our schools have always sought to hold to an integrity which involves being true to the church’s teaching and to trust law, and true to the law of the land. That is absolutely at the heart of the dual system, which has underpinned much of the education of this country for a very long time.
This Bill introduces in a novel way a potential conflict between trust law and education law. The amendment in the name of my noble friend the right reverend Prelate the Bishop of Leicester seeks to reconcile that potential conflict in the Bill. That seems to me to be hugely important. I am not a lawyer, but I know that there is a recognised branch of jurisprudence which goes under the heading “conflict of law”. I also know that the study of that subject teaches that where the conflict between different laws has to be resolved, it always raises questions of jurisdiction and normally raises questions of supra-jurisdiction—a jurisdiction greater than the two parties to the conflict.
There is deep concern in this country at present about the loss of jurisdiction from the High Court of Parliament. I enter a final plea to the Minister, and to all those on the Front Benches, to consider the advantage of having a potential conflict between trust and educational law dealt with in the Bill, rather than leaving it to a jurisdiction which may well be beyond the High Court of Parliament.
My Lords, I, too, pay huge tribute to the most reverend Primate the Archbishop of Canterbury for what he said in his first speech to the General Synod as head of the church and the Anglican communion about the changing attitude towards gays, the need to fight prejudice against homosexuals and the fact that the church looks, in his words, “out of step”. I am also grateful to him, and the right reverend Prelates the Bishop of Leicester and the Bishop of Ripon and Leeds, for the way in which they have considered the Bill. I have absolutely no doubt that they will ensure that Church of England schools will teach about same-sex marriages in a factual way, without any prejudice, and that they will naturally also teach about their own views of marriage, as is right and proper. I also know that they are absolutely against any opt-outs. I wholeheartedly agree that marriage is a very good thing for society and that it should be celebrated.
I understand the concerns that have been expressed about the pace of change by both the Church of England and the Catholic Church, with which I had an excellent meeting last week, for which I am grateful. It is true that it will take a while for some people to get their heads around same-sex marriage, but they will, and they will be comfortable with it. I have had several conversations over the weekend with people who have in the past expressed concern but have already changed their views. Both the vote and the debates in this House and the speech by the most reverend Primate have had a real impact on those people.
On the issue at hand, we have said throughout our deliberations on the Bill that, in our view, amendments pertaining to teaching and faith schools are not necessary. Teachers are already able to teach according to their religious tenets. That will not change, nor will the ability of faith schools to operate within the tenets of their faith. Some people, while generally accepting that point, say, “Why not give comfort to those who are concerned by putting something in the Bill?”. I understand that the right reverend Prelate is making a legal point. Others, including those on the Bishops’ Bench, want to ensure that the legal and religious definitions of marriage can be taught alongside one another in an appropriate way. I am well aware and grateful that the Bishops do not agree with those who are seeking “protections”.
I also know that the reasoning behind the amendment is to give space for schools of a religious character to stay within the terms of the statutory framework and to reduce the risk of them declining to teach about the changed legal nature of marriage at all. I warmly welcome the fact that the Church of England is clearly determined to pursue this inclusive approach for its own schools and to commend it to others. Indeed, that is exactly what should happen under the Bill as drafted, when it becomes law.
I realise that the Church of England and many in the Catholic Church would not wish to see any return to those dreadful days of prejudice but, as has been said many times, prejudice still exists. I know strong professional men and women who are still hesitant, even unwilling, to come out at work. As we do not believe that this amendment is necessary, and because we do not want to risk the way in which it could be interpreted by those who are intolerant or homophobic, I regret that we cannot support it. However, as other noble Lords have said, I hope that the Minister, while not accepting the amendment, will be able to give the necessary reassurance and clarity to the Bishops—and all Members of this House—and to those of other faiths.
(11 years, 9 months ago)
Lords ChamberMy Lords, I too thank the noble Baroness for securing this important debate. There is much I could say, but in the time available I shall look particularly at the experience of one-earner couple families in the context of recent child benefit changes and our tax system in general. Before doing so, I make two crucial points about one-earner families in general.
First, one-earner families are often families where a couple has made a deliberate decision to sacrifice having a second salary so that one parent can be at home for the children. The stay-at-home parent in such a family performs an important job, investing in their children’s development which can save the state significant amounts of money to the extent that it helps the children in question develop into adults who are more likely to fulfil their potential and make a net contribution to society. The social science evidence is very clear about beneficial child development outcomes by every benchmark. In the context of all the concerns about “Broken Britain”, this is an important consideration. Such families should be valued and supported rather than penalised.
Secondly, the DWP’s own figures show that most one-earner families have good reason for being one-earner couple families. Figures derived from the 2010-11 DWP family resource survey demonstrate that well over half—61%—of all one-earner couple families have either a child below five, someone who is disabled or someone with caring responsibilities. So the majority of one-earner families are one-earners out of necessity rather than by choice. This is extremely important because, as we have already heard, there are those who give the clear impression that one-earner families should not be helped because all stay-at-home parents should get paid employment. This is a deeply misguided view that has no regard for the constraints that one-earner families operate in, the sacrifices they make and their significant contribution to the national well-being.
I now turn to the recent child benefit changes that took effect last week. While no one wants to pay tax, we accept that it is necessary for the common good. For any tax to be sustainable, it is vital that it is fair and is seen to be fair. However, that is not the effect of the higher-income child benefit charge. Under the charge, a one-earner couple begins to lose its child benefit at £50,000 and loses it completely at £60,000, while the two-earner family next door has the potential to earn up to £100,000, so long as neither income rises above £50,000, and keeps all its child benefit up to nearly £120,000, so long as neither income reaches £60,000, before losing it completely. This is not a small unfairness. It is very significant.
On 6 January the Prime Minister argued on the “Andrew Marr Show” that the higher-income child benefit charge was fair because it is right to ask the top 15% of the country to make a greater contribution during difficult financial times. That would be entirely defensible if the higher income child benefit charge really were to have this impact but it does not. The social policy charity CARE has released figures that help to put the problem in focus. A one-earner couple with four children on £50,000 is already in the least well-off half of the population, with a higher net income than only 45% of the population. The removal of child benefit will push it even further down the income distribution. A one-earner couple with three children on £60,000 and in receipt of child benefit is just in the seventh decile, but will drop well into the sixth decile if child benefit is removed. Meanwhile, a two-earner couple with two children on the same wage will be well up in the eighth decile and keep its child benefit. Thus, not only will the higher income child benefit charge impact one-earner families in the lower half of the income distribution, two-earner families right towards the top of the income distribution—in the eighth decile—will keep their child benefit. If this is fair, it is a very odd definition of fairness.
The unfortunate impact of the higher income child benefit charge must also be seen in the context of an appreciation that even before the charge took effect our tax system already gave one-earner couples a very rough ride and continues to do so. As the noble Baroness, Lady Jenkin, has pointed out, the latest available OECD figures demonstrate that the tax burden on one-earner married couples on an average wage in the UK and with two children is 42% greater than the OECD average. In this context the higher income child benefit charge is particularly unfortunate. Once again, CARE has released figures that illustrate the problem. At the moment one-earner couples already pay far more tax than two-earner couples with the same income, largely because they access only one tax allowance rather than two. A one-earner couple with two children with an income of £60,000 pays income tax of £13,950. A comparable two-earner couple, each earning £30,000, pays £8,768. After the HICBC is added, the one-earner couple’s tax bill rises to £15,667. This is £6,899 more than that of the two-earner couple. Put another way, a one-earner family with two children and on an income of £60,000 already pays 60% more tax than a comparable two-earner couple, each earning £30,000. With the introduction of the HICBC, the one-earner couple will pay 80% more tax. The charge will increase the one-earner two-child family’s annual tax bill by £1,717. Over the lifetime of the children, if child benefit is claimed for each child up to the age of 18, this represents a £30,000 increase in the family’s tax bills.
There is an extraordinary irony in all this. Prior to the general election, the then Leader of the Opposition talked at great length about his commitment to helping one-earner married couples by giving them a transferable allowance. This commitment was a key part of the “Broken Britain” narrative that made it into the coalition agreement, and yet, to date, the only thing the Government have done is actually to make life much harder for one-earner couples. Some might say, “Well perhaps there has been no action because there is no money”. But that does not make sense because the Government have found literally billions of pounds to fund a huge increase in the personal allowance that the Institute for Fiscal Studies has demonstrated disproportionately benefits those in the top half of the income distribution. The transferable allowance is far more progressive as it has been shown disproportionately to benefit those in the bottom half of the income distribution.
Of course, to the extent that the introduction of transferable allowance was made as a commitment to recognise marriage, albeit only in a one-earner context, the Government’s failure to act has been rendered even more perplexing by the fact that this marriage commitment in the Prime Minister’s manifesto has received no attention, while proposals to redefine marriage that were not in any party’s manifesto are proceeding with undue haste.
I recognise that the Government’s transferable allowance commitment still stands. Given, however, that the coalition agreement pertains only to the period 2010-15, time is running out. Transferable allowances can be introduced only through Budget resolutions and it is widely appreciated that the next Budget, on 20 March, just over two months away, is the last opportunity that the Government will have to introduce a transferable allowance and have any chance of it becoming operational before the next election. I firmly hope that the Chancellor will listen and make this a priority on 20 March. I also hope that he will reflect on reforming the higher income child benefit charge so that it does indeed target only families in the top 15% of the country and that it does not discriminate against one-earner families. As I said earlier, let us not forget that most one-earner families do not have the option of becoming two-earner families, and that they make an incredibly important contribution to our national wellbeing and should not be penalised for doing so.
On 11 February 2009, Philip Hammond, the then shadow Chief Secretary to the Treasury, spoke to the Daily Express about,
“the continuing bias in the tax system against two parent families where only one adult works. No other European country penalises families in this way. If we want to end child poverty we must end this discrimination”.
(11 years, 11 months ago)
Lords ChamberMy Lords, we are planning to have a real look at this in the autumn of 2014, once the system is up and running. I am sure that we have not yet fine-tuned the exact nature of what we will be testing for, but consistency of application will clearly be one thing. We generally watch that quite closely but that is likely to be one of the issues, and the impacts will be another area which it is likely that that 2014 process will cover.
My Lords, I go back to the question of objective testing. I speak as the father of a 33 year-old Down’s syndrome daughter, who is in supported accommodation and in receipt of DLA. She has recently had her benefits cut to the point where they barely cover her housing and food costs. Were it not for the financial support that she receives from us, her parents, she would not be able to access the integrated drama group, visit the gym or go swimming—the very things that give quality to her life. To what extent would the criteria for assessing PIP cover not just the hard needs that enable a person to survive but the soft needs that enable them to thrive? What assurance will we have that there will be real consistency across the country, rather than the huge variations between local authorities that exist at present?
My Lords, clearly what we are talking about today is a centralised national process. There are social care provisions on the ground which local authorities are responsible for. PIP will be far more consistent and, indeed, objective than the current DLA, where the criteria for deciding who is entitled to DLA have become increasingly fuzzy. That is one of the problems associated with DLA. The money is designed to deal with the extra costs of being disabled, and those costs are incurred whether someone is in work or out of work—they are extra costs that need to be borne. However, the point of it being made as a payment, as opposed to a provision, is so that people can decide where best to apply those funds. As the right reverend Prelate said, some people will decide on the softer things, which for certain people are just as important as the harder requirements, but it is up to them to decide how to spend that money.
(11 years, 11 months ago)
Lords ChamberI am grateful to the noble Earl for raising that matter and I will ensure that I am fully informed about it.
My Lords, I am sure that the Minister will agree that it is important that services working with perpetrators of domestic violence are delivered with a high degree of safety. Does she therefore share a concern and recognise that well meaning but ill thought-out attempts to do this work can end up doing more harm than good? What are the Government doing to ensure that where new services are developed, they are done well and meet agreed Respect service standards for practice and accreditation?
I am grateful to the right reverend Prelate for raising this matter. He will be aware that one of the things that the Government do is fund the Respect Phoneline, which is there for perpetrators or people who are inclined to carry out these terrible acts of violence. The Government also support Respect in its role in properly accrediting the kind of voluntary programmes that are important in local areas. We would certainly encourage anyone who wishes to follow one of these programmes to ensure that it has been fully accredited by Respect.