Social Fund Maternity Grant Amendment Regulations 2011

Debate between Lord German and Baroness Gale

Monday 7th March 2011 Lords Chamber

[Baroness Gale]

My Lords, I support the Motion of Regret of my noble friend Lord Touhig.

That word “regret” is important. The Merits of Statutory Instruments Committee, in its devastating report of 3 February, made a number of points relating to the withdrawal of the Sure Start maternity grant for most pregnant mothers. One of the points it made is that the Office for National Statistics survey found that,

“less than 10 per cent of second and subsequent children were born more than five years after the first or subsequent child”.

The effect of this means realistically that the grant is now paid only for the first child because, if there are children in the family under 16, in no circumstances will the maternity grant be paid.

The Merits Committee also suggests that,

“The House may wish to seek clarification of why age 16 was chosen as the threshold as opposed to say age 5 or 10”.

I therefore ask the Minister why the age of 16 was chosen. It is highly unlikely, for example, that if there is a 15 year-old child in the household—or even a 10 year-old—any equipment from that child could be used for the new baby. The expenditure would be very like having a first child, but with no help whatever from this Government.

The charity Gingerbread, commenting on the emergency Budget of June 2010, said:

“A family having a second child could be over £1,200 worse off this year than last year. These cuts will be deepest for the most vulnerable families”.

The charity Family Action said,

“low income families will find it tough to meet the needs of their newborn children and families returning to work will be stung by cuts to tax credits and childcare costs. We know from talking to the new parents who access our services how vital these funds are in giving families and their children the best possible start in life. Now they’ll be on the back foot from birth, thanks to the Government’s policies”.

In his statement on the Social Fund Maternity Grant Amendment Regulations 2011—published in the Act paper—the Secretary of State for Work and Pensions says:

“Around 150,000 families in receipt of a qualifying benefit at the point they have a second or subsequent child will be affected by this measure. In order to help mitigate the effects for some of these families, the forthcoming Welfare Reform Bill will include a measure to open up the Social Fund budgeting loan scheme to enable loans for maternity items to be made available. However, due to the discrepancy in timing between the introduction of the changes to eligibility to Sure Start Maternity Grants in April 2011 and the date the provision in the Bill comes into force (expected to be early 2012), families will not be able to take advantage of the extended access to Budgeting Loans during this period”.

The Government saying that “families will not be able to take advantage” must be the understatement of the year.

This is the coalition Government’s timetable; they are in charge of it. They could do something about it but they have chosen not to. This means that there will be no government help available for women who are expecting babies between 11 April 2011 and some unknown date in 2012. What are these mothers expected to do? Do they go without? Do they go to a charity or to their church to see whether they can get some help? Perhaps they may be able to get a loan from a bank. If not, perhaps, as my noble friend Lord Touhig said, they may be able to take out a loan with some organisation where a very high interest rate will be charged. What a worry for a pregnant mother.

Of course, depending on the age of the first child, there may be some items that can be used, but there are always additional costs for every child and this can be a strain on a family budget. However, as things stand now, there is no chance of help from this Government. I ask the Minister to listen to the charities which have expertise in these matters and to reconsider what help can be given from April to the date when the Welfare Reform Bill will be enacted.

We know this legislation has been rushed through, allowing only nine days for consultation by the Social Security Advisory Committee, and without proper consultation and scrutiny it is lacking in evidence. I am not aware of any impact assessment and I wonder why there has not been one. I ask the Minister to take careful note of what has been said and the effect that this proposal will have on the families that once qualified for such support under a Labour Government but will no longer receive such support.

[Lord German]

My Lords, I should like to take a rounded view of these regulations and put them in the context of the activity of the Government in terms of poverty. There are some issues which noble Lords on the Benches opposite have raised which require some answers from the Minister and I shall raise one or two myself.

First, it is important to recognise that these regulations have the effect of providing a level of savings within the DWP budget—that is undeniable—and that these types of decisions are never easy. At face value, of course, this could be simply seen as yet another cost-saving exercise, which is the thrust of the previous three speeches. However, it should also be looked at in the broader context. I shall examine both sides of the issue in my contribution to the debate.

I preface my remarks by posing a question to the noble Lord, Lord Touhig, the mover of this Motion of regret. I shall not correct him on his Welsh mutations; I shall explain to him afterwards—

National Assembly for Wales Referendum (Assembly Act Provisions) (Referendum Question, Date of Referendum Etc.) Order 2010

Debate between Lord German and Baroness Gale

Thursday 25th November 2010 Lords Chamber

[Baroness Gale]

My Lords, first, I thank the Minister for bringing these orders before us today and for his clear explanation of the quite technical but very important details.

These orders represent an important milestone on the long devolution road which I and many others have been travelling for a number of years. Therefore, I can say today that I am a very happy traveller, seeing us go one step further along that road.

However, even with a successful yes vote, it will probably not be the end of the journey. As the Welsh Affairs Committee in another place said in its report, published on 22 November, on Schedule 7:

“We note that the nature of the Welsh devolution settlement is quite different from those relating to Scotland and Northern Ireland. Schedule 7, in the form it would have after this draft Order was approved, is unlikely to be the last word on the shape and nature of the constitutional arrangements for Wales. We have sought and received assurances that Parliament and the Welsh Affairs Committee will be properly involved in the examination of any future changes to the constitutional arrangements for Wales”.

Following a successful yes vote on 3 March, we are sure to be asked to look at other constitutional matters regarding Wales in the future.

The question to be asked in the referendum, and its timing, have been debated and agreed by the Welsh Assembly, and prior to its drafting the question was subject to significant assessment and revision by the Electoral Commission, as the Minister said. This has now resulted in widespread agreement that the question on the ballot paper is clear and simple to understand.

The date of the referendum has now been agreed. After significant discussion in Wales, it will be held on 3 March 2011—a date that will take us clear of the campaigning period for the Welsh Assembly elections in May. There was concern over holding them on the same day, so it is very good that the referendum will be held on 3 March. However, there may of course be another referendum on the day of the Welsh elections after all.

The order relating to expenses did not need to be approved by the Welsh Assembly. However, it has been subject to scrutiny by the Electoral Commission, whose recommendations were accepted by the Secretary of State for Wales.

The formula for calculating the level of expenses based on the percentage of the vote for each political party is, again, simple and clear, as it is for other permitted participants. That is important as it will enable political parties and other organisations to know what the funding is, as well as ensure that the electorate is fully informed of both the yes and the no campaigns. I think that that information is really needed.

I also welcome the clarification on expenses relating to media coverage, which the Minister mentioned, as there has been some ambiguity about that in the past. It is now clear that such coverage is excluded from declared expenses. In the past, that has been a worry for political parties and those responsible for election returns.

On the order that deals with Schedule 7, if there is a successful yes vote, that part of the Act spells out the full range of subjects over which the Assembly has full legislative competence. The order under debate today is designed to secure that the amended Schedule 7 takes full account of all the changes to the powers of the Welsh Assembly that have been conferred on it by various means since the passing of the Government of Wales Act 2006. This will be a much more effective and less expensive way of legislating across the full extent of the devolved subject areas than the present system of legislative competence orders.

The All Wales Convention has concluded that the changes will save around £2 million per year, which is money that is currently being spent by the rather lengthy process of LCOs. More importantly, they will allow the Welsh Assembly Government to respond to changing circumstances that may require legislative action. I believe that the Welsh Assembly Government and the Assembly Members will be able to deal much more effectively and respond much better to the needs and requirements in the devolved areas, for the benefit of the Welsh people, than they can under the present system. As the Minister said, these three orders were agreed to in another place earlier this week, so agreeing to them today will enable the people of Wales to have their say on whether they want the National Assembly for Wales to have legislative powers in the 20 subject areas.

I am very pleased to support these orders on behalf of my party, as I have campaigned for devolution for many years; I played an active role in the 1997 successful referendum that brought devolution to Wales, and I saw the establishment of the National Assembly of Wales in 1999. Today is an historic day for Wales, and I am pleased to have played my part on behalf of my party, which first gave devolution to Wales. I thank the Minister once again for bringing these orders before us today.

[Lord German]

My Lords, I thank the Minister for bringing these historic orders to the Chamber this afternoon. I declare an interest as I am an executive member of the company, limited by guarantee, known as Cymru Yfory, which translates as Tomorrow’s Wales. It has been the campaign organisation for a yes vote in any referendum to come. Obviously, that nails my colours very firmly to the mast. I am very proud to be able to do that because, as the noble Baroness, Lady Gale, says, this is a journey which many of us have travelled for most of our lives and shall continue to travel, but this is an historic step. It is also an historic moment for me because I am probably in the unique position of having been able to vote in the very first trigger vote that took place to set this referendum on its journey in the National Assembly for Wales, and now I am voting on the last vote that sends it on its journey.

I wish to raise a number of issues with the Minister. Clearly, two of the orders are very practical and deal with how a referendum should be held, which is quite right. If we were to measure the matter by the weight of the orders, clearly one of them is very weighty indeed; in fact, the real substance of the order is what will happen after a successful vote in a referendum—and that is Schedule 7. That order will tell the people of Wales what they will be voting for: the powers that Wales will have as a result of a yes vote in the referendum.

I have watched the current Government of Wales Act grow. Schedule 5 to the 2006 Act deals with the powers that are currently held by the National Assembly. However, this document has four pages; at the moment, the same schedule has 38 pages, which deal with the powers that the National Assembly has accrued by steps since 2007, when the Act came into being for the new National Assembly. In the space of three years, those powers have grown step by step, and it has been a very expensive and time-consuming process.