People with Disabilities: Access to Services

Lord Holmes of Richmond Excerpts

Thursday 16th May 2024 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, I congratulate the noble Baroness, Lady Hughes, on securing such an important debate. I agree with all previous speakers that we need much longer to discuss these issues, in more detail and more often, both in your Lordships’ House and in the other place. If my noble friend the Minister was unaware of the lived experience of disabled people in the UK today at the beginning of this debate, he will not be now, so I will cut to the chase on employment and education.

If you are a disabled person in the UK, you are far less likely to have a good experience in education, to gain employment, to keep that employment if gained and, if kept, to receive a comparable level of pay to your non-disabled colleagues. Can my noble friend say what the current education gap is for disabled people at key stage 2, GCSE and A-level? What is the current employment gap for disabled people? What is the current disability pay gap? This thread runs through all elements of a disabled person’s lived experience, writ large through employment and education. If there is not that opportunity, as there is for every single person in society, to get it right the first time in education, life is made so avoidably difficult from that point onwards.

When will the EHCP system become equitable, accessible and resolvable in reasonable time and not just a matter of lottery or ability to pay for professionals to help you through a process that should be open to all those who need it?

We have heard about the difficulties with employment and education, but what about if you are not even able to get to your job, or if you are so stressed and done in by the journey to get to work that it feels like you have done your day’s work before you have even arrived? We come to the question of transport, and the lived experience of disabled people of what passes for public transport in the UK today.

Will my noble friend the Minister commit from the Dispatch Box today—why not?—to having a moratorium on floating bus stops? For noble Lords who may be unaware, these are bus stops that are essentially stuck in the middle of the road, with a cycle lane between the bus stop and the pavement. How can a disabled person—any person—effectively, efficiently and, crucially, safely access the bus? It is a planning folly: a planning disaster. Can we commit today that buses can only pick up and drop off from the kerbside? This needs to be urgently resolved.

I turn to taxis, another critical part of our public transport infrastructure, though seldom treated by the department in policy terms as that critical part of public transport, not least for disabled people. This very morning, the planning committee in the City of London is deciding whether to recommend that Bank junction should be reopened to black cabs. Its proposal is that the ban on black cabs at Bank junction continues. Why? There is no safety reason; black cabs have never been involved in a collision at Bank junction. It is planning folly and not evidence-based. Will my noble friend write to the City Corporation, reminding it of its equality duties, not least under the public sector equality duty, and urge it to reconsider reopening Bank to black cabs—yes, on a trial basis, to assess how it will go? The Court of Common Council will decide this on 20 June, and it is in everybody’s interests, not least those of disabled people, that we have black cabs being allowed to go back through Bank junction, because the message it sends right across the country is that cabs matter as a part of public transport. Ditto for Tottenham Court Road; if my noble friend could write to Camden council, that would be appreciated as well, while he has his pen out—or indeed his laptop, or whatever means of communication he chooses.

We do not have public transport in this country; we have transport that is accessible to certain sections of the public—partial public transport, if you will. For disabled people, be it buses, rail or indeed the absolute nonsense of so-called “shared space”, transport is at best patchy. I ask my noble friend the Minister: when will it be in this country that disabled people can experience accessible transport—whichever mode, at whatever time and whenever they choose, like everybody else, to turn up and seek to use it? Can my noble friend report on the so-called “shared space” experiments; we have managed to achieve a moratorium on future shared space, but how are the existing schemes going? They effectively plan out disabled people from their local communities.

Floating bus stops, taxis and shared space—all are problematic for disabled people, and all are resolvable. Then there is education, particularly the potential for personalised education. On employment, it is entirely resolvable to have similar rates of educational attainment and employment for disabled people. These issues are all entirely resolvable if we just start from the key principle: inclusive by design, accessible by all. I ask my noble friend the Minister: when will all government policies be able to pass those tests—inclusive by design, accessible by all? Fundamentally, all we are talking about here is talent: all of that phenomenal talent in all disabled people, up and down and across the UK. We still suffer from this tragic truth—talent is everywhere; opportunity, currently, is not.

Pensions Dashboards (Prohibition of Indemnification) Bill

Lord Holmes of Richmond Excerpts

2nd reading
Friday 3rd March 2023 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take part in this Second Reading debate and, in doing so, I declare my financial services interests as set out in the register. I congratulate Mary Robinson on securing this Private Member’s Bill: it is the model of what a Private Member’s Bill should do. My noble friend Lord Young said in his excellent introduction that it was specific and effective—and it is certainly that. Again, congratulations to Mary Robinson, my noble friend Lord Young and everybody who has helped in the preparation of the Bill to get it to this stage.

Pensions have somewhat lost their sheen since perhaps the 1970s, when my noble friend Lord Young spoke about them, yet, when you look at what is behind a pension, it still makes sense today. It is still a positive proposition to have something separate from the employer, protected by a trust structure, to set you up for your retirement. But, since the development of pensions, in relatively recent history, Equitable, Maxwell, Brown and other issues have taken the sheen off that pensions promise—but they should not. Perhaps there is a need for a great big branding exercise to be done.

Auto-enrolment has certainly played its part: perhaps we should all consider how best to rebrand what is fundamentally a very positive proposition for people to connect and commit to as early as possible in their working lives to ensure that security when they reach the age of retirement, be that 65, 66, 67, 68—or whenever that may come to all of us. To my noble friends the Minister and Lord Young, I say: should we not consider effective means to increase our efforts to promote the whole proposition of pensions as a positive means, which is potentially in need of rethinking but essentially a very good thing to have as part of our society and economy?

Moving to the issue at hand of dashboards, the simple and effective measure in the Bill is just that. Will my noble friend Lord Young or the Minister confirm that it simply brings into line the proposition which runs through all pensions legislation when it comes to the behaviour of trustees in such situations, so it is a clear and obvious reset of what the 2021 Act did not include? The great possibilities of pensions dashboards are in what we are able to do with data. If we have clear and coherent data and people are able to have it in real time on their devices, that can only be a positive thing, if the right levels of education, communication and understanding can also be put into that mix.

As my noble friend Lady Altmann asked: what is being done to ensure that that data is robust, reliable, consistent and the complete picture? It is true in this instance, but also across all that we may be able to do in fintech with the new technologies we have available to us, that it is only as good as the quality of the data that underpins it, and dashboards are the obvious, clear example in front of us today. That data point is critical to consider at every point to ensure that, when an individual looks at their dashboard, they can know that that is the real-time, accurate representation of what they hold across all their pension pots.

Finally, on the question of digital ID, again it is pertinent in this instance, as it is to everything we seek to do in a digital economy for the UK. None of this will work effectively unless we get to grips with digital ID. So is the Minister satisfied with the progress we are making on digital ID for the UK? Where are we currently and where will the responsibility for digital ID rest, with the changing departmental structure across Whitehall? Can he urge ministerial colleagues to further increase the pace in this digital ID work, because it is critical to so much of what we are trying to achieve? It must be secure, it must be reliable, it must cover all the issues around privacy, and we still have quite a journey to cover on that issue.

To conclude, again I offer congratulations to my noble friend Lord Young and Mary Robinson. This is a specific, clear and effective Private Member’s Bill. I wish it swift, safe speed into statute.

Pension Schemes Bill [HL]

Lord Holmes of Richmond Excerpts

Report stage & Report stage (Hansard) & Report stage (Hansard): House of Lords
Tuesday 30th June 2020 Lords Chamber

[Lord Naseby (Con)]

My Lords, it is entirely appropriate that I should first declare my interest. I am a trustee of the Parliamentary Contributory Pension Fund; I have been one for the best part of 20 years. I am also 83, and all I can say in reflection is that I was formerly the chairman of three financial companies, and I have been a pension trustee on two schemes prior to the one—the only remaining one—that I am on now. It is not my intention to comment too much on the Bill; rather, I see my role in the interests of the membership—I am a member and there certainly will be others in Parliament who are members—to keep a watching brief and, if appropriate, to make some comments to my noble friend on the Front Bench. I should also say to her that I was the Chairman of Ways and Means in another place and I too was not in favour of the negative procedure for really serious things. She has taken a very wise decision on Amendment 1; I am sure that it is the right one and should be applauded on all sides.

I will listen to my noble friend’s answer on Amendment 2 because, if it is right in the round, there would need to be a specific reason for its not being appropriate in leaving out subsection (8). Amendment 33 is in this group and has been commented on. I have given my age and I think that my gender is obvious, as is my ethnicity. It is appropriate that every set of trustees should have a range of people as regards age, experience, gender and so on, but in my judgment the key issue is commitment. We are very lucky on the Parliamentary Contributory Pension Fund because the members, almost to a man and a woman, turn up regularly to meetings, ask good questions and are good advisers, so that, at the last point, as a fund we were very much in positive territory. As I say, I am not going to make too many comments, so without further ado I once again congratulate my noble friend on the Front Bench.

[Lord Holmes of Richmond (Non-Afl) [V]]

My Lords, I congratulate my noble friend on the Front Bench on the clarity with which she has introduced this Report, and I thank her and the Bill team for the time, effort, care and consideration they have taken with Members, which is best illustrated by the number of government amendments which have rightly been brought forward at this stage in our proceedings. She has clearly demonstrated what can be achieved collaboratively in the legislative process when it is approached with such openness. She and her team absolutely epitomise a truth that everyone should constantly remind themselves of: two ears, one mouth.

The pensions proposition is one of the greatest creations of civilisation, but just in my lifetime—without giving away my age, I am only slightly younger than my noble friend Lord Naseby—we can see that the proposition has changed, not so as to be unrecognisable but significantly. It started out with a commitment by employers to have defined benefits where they would take the risk. The fund was rightly separated from the employer under the governance model of a trust. That clear separation of powers was eminently sensible because something as significant as someone’s retirement nest egg should be separated from the corporate entity so that if, God forbid, anything should happen to the corporate entity, the pension fund would remain. What has occurred in recent years is an extraordinary shift of that risk, if not a wholesale one, from the employer to the employee, hence the explosion of defined contribution schemes. In reality, neither position is where an individual, a group or even a society would wish to be, given that so much of the risk falls on to one or other of the parties. That is why CDCs have a lot to recommend them, not just in the combining of resources and the pooling of risks, which is a great advantage, but in the positive implications that the initials “CDC” have in other areas of our lives. Let us consider the Commonwealth Development Corporation and the United States Centers for Disease Control and Prevention. We should take something from the positivity of the acronym because it has a lot to recommend it.

This would certainly not be necessary had we not seen some of the changes, not least to how schemes were funded and how the funds were treated, particularly from the taxation point of view. That was one of the biggest nails in the coffin of defined benefit schemes. However, that is water long under the bridge. CDC schemes will become increasingly significant to pension provision as we go forward. They are a positive contribution to this area and I wish this Bill a speedy passage through your Lordships’ House, and its equally speedy consideration and passage through the other place.

[Lord Foulkes of Cumnock (Lab Co-op) [V]]

My Lords, I, too, thank the Minister for her introduction and for returning to her usual helpful mode on this occasion, unlike during questions the other day. I hope that it does not do her any harm with her Whips, but we are very grateful to her.

I want to speak in support of Amendment 33, which has not yet been moved, although I hope that we will hear later from the noble Baroness, Lady Bennett of Manor Castle. I nearly said “Barnard Castle” but that is a more notorious place.

Diversity, whether based on ethnicity, gender, sexual orientation, age, socioeconomic background or disability, continues to be a key issue facing our society today. Indeed, diversity is still lacking across many FTSE companies in key sectors such as engineering, science, technology and banking, not to mention in this House and the other place.

In the pensions sector, many pension fund trustees and the top levels of executive teams also lack diversity. Some progress has been made. Nevertheless, data from the Pensions and Lifetime Savings Association indicates that, overwhelmingly, private sector pension fund trustees are male. The Pensions Regulator also found that about half of the chairs and a third of the trustees are over 60 years old. With no disrespect to my noble friend Lord Naseby—whom I must be nice to as he is doing a good job on the board of the Parliamentary Contributory Pension Fund, in which I must declare an interest—I think that this is a bit of an imbalance.

Of course I am concerned. In other areas, older people are discriminated against on grounds of age, but in this instance it is younger people who are underrepresented on boards, which make decisions of importance to them as well. With the introduction of auto-enrolment, which has brought about more and more young savers, as well as a greater focus on those in society who are “under-pensioned”, such as women and ethnic minorities, it is important that trustees managing the increasingly diverse pension profile also become increasingly diverse to reflect these savers. Requiring pension schemes to provide information on the diversity of the boards helps to provide some form of greater transparency and opportunities for the better governance of pension schemes.

To add to that, I believe that, although reporting on diversity is important, it may be of equal, if not greater, importance for schemes to be required to provide plans on how they hope to achieve better diversity on their boards of trustees. I hope that the Minister will continue in the helpful manner with which she started and that she will give the House, and me, some encouragement in this direction in her reply.

Disabled People

Lord Holmes of Richmond Excerpts

Thursday 28th June 2018 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to participate in this debate. In doing so, I declare my interest as set out in the register. I thank the noble Baroness for securing this debate and her excellent introduction. Her work and her commitment to this area need no introduction. I am also very much looking forward to the maiden speech of the right reverend Prelate the Bishop of London. Her career is impressive. From Westminster Hospital to the Palace of Westminster, via Tommy’s, Chel West and the marvellous Marsden, it is pretty clear that Bishop Sarah, if I may, has positively impacted people’s lives every day. I look forward to sitting behind her in your Lordships’ House in the years to come and to her wisdom drifting up to this Back-Bencher.

As the noble Baroness, Lady Thomas, said, there are many areas that one could cover in this debate: public transport, public realm, aviation, the built environment and so on. I shall limit my comments to just two areas: Channel 4 and public appointments.

At Channel 4, we took the power of the Paralympics to attempt not just to change attitudes towards, and opportunities for, disabled people but to change Channel 4 as an entity. In 2016, I was privileged to chair the channel’s Year of Disability, not least because I got to chair a group of people called the Year of Disability advisers, which made me chair of YODA. We looked in front of the camera and behind it and demonstrated that, sometimes, difference can be driven in a short space of time. We took the power of the channel and used personal testimony. Within seven months, we not only changed levels of self-declaration for disability in Channel 4 but increased it fourfold.

We saw the first audio-described advert. We attracted brands from across the world to put together an innovative advertising campaign involving disabled people and put £1 million into it. Have we cracked it at Channel 4? Not a bit of it. Are we on a journey? We certainly are.

I was honoured to be asked earlier this month by the Cabinet Office Minister to lead a review into disabled people’s participation in public appointments. Public appointments play such an important role in influencing and transforming our society, and not just in the organisations where they are made. However, when it comes to public appointments, how many people know about the full range of opportunities that are out there? Current open opportunities range wide from the Darwin commission and Commonwealth scholarships to data ethics, sea fish and no few in Work and Pensions, Justice and Business. There are many opportunities, but who knows about them? Who applies for them? Who is interviewed? Who is appointed? Who is enabled to thrive in those roles? That is the purpose of the review I am undertaking: to create an inclusive environment where disabled people can flourish through that public appointments process.

I will be going across the country to organisations, groups and individuals to hear their views. What are the barriers? What are the blockers? What needs to be done? I say to anybody out there: be in touch with me; contact me on Twitter @LordCHolmes; tell me your experiences of the public appointments process. How was it for you: good, bad or indifferent? Tell me what your experience was. If public appointments are not reflective of our society, how can we be assured that the best decisions are being made in many elements of our public life?

That is Channel 4 and public appointments, but there is a darker side to this debate, which is that there is still more than a deal of discrimination out there. Just by dint of having a guide dog, I can find myself excluded from restaurants, bars and minicabs. A number of years ago, I went to a restaurant and the guy blocked my entrance; I could not even cross the threshold. He said, “We don’t serve guide dogs”. I said, “That’s okay, I don’t eat them”. That is amusing, but not so amusing is the reality of such discrimination. When you experience discrimination, it is not a cerebral experience. You feel it in your heart and in your guts.

I have no doubt whatever as to my noble friend the Minister’s commitment to disabled people, so I want to ask her to outline the Government’s aspiration for disabled people in educational attainment, employment opportunities and public participation. What are some of the key success measures?

Ultimately, it is even more than just considering the blockers, the barriers and the issues that face disabled people. We are talking about enablement, empowerment and addressing that most desperate of drains on our society: the fact that talent is everywhere but, currently, opportunity is not.

Financial Guidance and Claims Bill [HL]

Lord Holmes of Richmond Excerpts

Report: 2nd sitting (Hansard): House of Lords
Tuesday 31st October 2017 Lords Chamber

Moved by

[Lord Holmes of Richmond]

41: After Clause 17, insert the following new Clause—
“Regulatory principles to be applied in respect of claims management services
(1) In relation to the regulation of claims management services, the FCA must act according to the principles that— (a) authorised persons should act honestly, fairly and professionally in accordance with the best interests of consumers who are their clients; and(b) authorised persons should manage conflicts of interest fairly, both between themselves and their clients, and between clients.(2) In this section, “authorised person” has the same meaning as in the Financial Services and Markets Act 2000, and “authorised persons” shall be construed accordingly.”

[Lord Holmes of Richmond (Con)]

My Lords, being a member of the my noble friend Lord Hunt’s flock in your Lordships’ House, I am a bit concerned that if I overly push on Amendment 41, which comes hot on the heels of Amendment 39A, I, too, may be the victim of whiplash. We discussed many of the issues in Committee. I have brought back the amendment on Report so that I might push my noble friends who understand the timeline for bringing in a duty of care. My initial intention was to table an amendment placing a general duty of care on financial institutions; as a result of the scope of the Bill, a specific duty as set out in my amendment pertaining to CMCs is what we are discussing today.

I am grateful to all the organisations that helped with briefing for the amendment, not least Macmillan Cancer Support, which really demonstrates what a modern charity can do, not just focusing on the specific issue at the centre of its organisation but going wider to all the elements that directly affect people when they receive a cancer diagnosis. That is partly why I chose to focus on Macmillan and cancer in putting down this amendment. It goes to the heart of bringing to life why there is a need for a general duty of care to be exercised by financial services institutions, when one in two of us will receive a cancer diagnosis in our lifetime. This is not a marginal matter; it demonstrates that financial institutions not only have their current responsibilities and obligations but need that general duty of care.

The amendment deals specifically with CMCs. I push my noble friend the Minister to accept it and to give some further description building on comments that he made in Committee on the timeline for considering bringing forward and implementing a general duty of care, with the good offices of the FCA obviously involved—I am grateful to the FCA for meeting me to discuss this, not least Mr Christopher Woolard. I shall say no more; the arguments were put in Committee. I urge my noble friend to accept the amendment and beg to move.

[Baroness Kramer (LD)]

My Lords, I congratulate the noble Lord, Lord Holmes of Richmond, on sticking with this issue, because it is fundamental. I say to the Government that a duty of care is so important and should be so central to every piece of our financial services industry that we should not let the perfect—having a general duty of care—be the enemy of the good, which is the opportunity to put a specific duty of care in this Bill. I hope the Government will consider that.

I have the privilege to be on the Parliamentary Commission on Banking Standards. As we sought to strengthen the framework of regulation and to expose a lot of misdirection within the financial services industry, I think everybody, not only on the committee but far more broadly, agreed that the key problem lay in culture. We have turned to the banking and financial services industries and asked them through various bodies to improve their culture, but surely we also have a responsibility to drive that with every piece of legislation that comes our way. Duty of care reflects that whole-culture approach: the underlying, underpinning approach that we expect our financial services to take, where the interests of the customer are at the centre. It is not that the financial services should not be able to make profits—of course, that is the business they are in—but it should never be at the expense of that central interest of the client or customer.

I urge the Government to take seriously this opportunity in an area where there has been extraordinary abuse. I listened to the noble Lord, Lord Hunt of Wirral, for example; others talked about whiplash and issues around holiday sickness. In issue after issue, we have seen a complete failure in the culture of the bodies that provide such services. We should tackle that issue head on and not be afraid to use language that is clearly around that duty of care—not considering it too soft or too difficult—so that it becomes a general habit. I hope we will not rely just on general duties of care, because those can sometimes be imperfect, but will make sure that in every piece of financial services legislation this issue is underscored. In that, this legislation could be a leader.

--- Later in debate ---

[Lord Young of Cookham]

My Lords, I am grateful to my noble friend Lord Holmes for moving the amendment. He mentioned that he was a member of my flock. He displays exactly the right independence of thought tempered by loyalty to the party that any Whip could wish for. I am grateful to the noble Baroness, Lady Kramer, the noble Lord, Lord McKenzie, and my noble friend Lady Altmann for speaking to the amendment, which seeks to ensure that the FCA adheres to a set of regulatory principles in relation to acting in the best interest of consumers and managing conflicts of interest fairly. Noble Lords also raised the broader issue of duty of care, which is not mentioned specifically in the amendment but is obviously relevant. As noble Lords may remember, my noble friend tabled a similar amendment in Committee.

Aside from the provisions in general consumer law, the FCA already applies rules on firms conducting regulated activities in relation to their dealings with consumers. First, the FCA’s rules set out in Principles for Businesses require firms to conduct their business,

“with due skill, care and diligence”,

and to,

“pay due regard to the interests of … customers and treat them fairly”.

Principle 8 sets out:

“A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client”.


That accurately mirrors proposed new subsection 1(b) in the amendment, so there is a congruity of objective there.

Secondly, the rules on clients’ best interests require a firm to act in its client’s best interests across most regulated activities. The client’s best interests rule states:

“A firm must act honestly, fairly and professionally in accordance with the best interests of its client”.


Again, those are exactly the words used in my noble friend’s amendment, so there is no disagreement over objective.

Thirdly and finally, a number of FCA rules contain an obligation on firms to take “reasonable care” for certain activities. For example, one of the Insurance: Conduct of Business rules states:

“A firm must take reasonable care to ensure the suitability of its advice for any customer who is entitled to rely upon its judgment”.


Those rules in the FCA Handbook are supplemented by more specific rules in various FCA sourcebooks. The FCA will be able to apply its existing Principles for Businesses, which I have just quoted, to claims management companies and to make any other sector-specific rules that may be necessary, under its existing objectives. The FCA supervises against these rules and other provisions and, where necessary, can take enforcement action against firms to secure appropriate consumer protection.

The FCA is of the view that its current regulatory toolkit is sufficient to enable it to fulfil its consumer protection objective. The FCA will consider the precise rules that apply to claims management services and how they fit together as an overall regime. In doing this, the FCA will take into account its statutory operational objectives, including its objective of securing an appropriate degree of protection for consumers. It will also consult publicly on its proposed rules.

Turning to the broader issue of duty of care, the noble Lord, Lord McKenzie, asked whether there were any pearls. I think the oyster is still at work so the pearls are not available for display this evening. The words “duty of care” mean different things to different people and the precise scope and content of any proposed duty of care are uncertain. The impact of a duty of care obligation needs to be fully considered, as do the cost, complexity and time that might be involved in customers seeking to bring firms to court as a result of a duty of care obligation.

I was asked to say something about the timescale of the work on this. A duty of care could have an effect on many of the FCA’s provisions in its handbook, including the need to replace or remove some. The FCA intends to undertake a comprehensive review of the handbook post Brexit. The FCA believes that it would be best to include duty of care in that review, particularly as the FCA’s ability to change its rules in some areas will depend on the relationship between the EU and UK post withdrawal. Many of the FCA’s current rules are based on EU legislation. Once the relationship between the EU and the UK following withdrawal is clear, there will be more clarity around the degree of discretion that the FCA has to amend its rules.

In addition, the FCA is currently identifying the necessary changes to its rules to ensure that they continue to operate as a coherent set of rules following EU withdrawal. This work is being done in parallel with the work across government to review directly applicable EU legislation. It is a significant, complex and time-critical exercise that must be progressed immediately. If noble Lords have any concerns about the timing of the discussion paper, that is primarily a matter for the FCA.

Returning to the amendment, it is not necessary to include regulatory principles in the Bill because of the provisions the FCA already has. For that reason, I would request—or suggest—to my noble friend Lord Holmes that he withdraw his amendment.

[Lord Holmes of Richmond]

I thank all noble Lords who have participated in this short debate, and my noble friend the Minister, from whom I am happy to take requests and suggestions in equal measure.

I imagine my noble friend has become far more familiar with the rulebook than he could have imagined or perhaps even desired. I agree with the rules he recited but there seems to be a slight contradiction in that the rules are clearly stated but simultaneously it is accepted by all concerned, not least the FCA, that there is at least a question worth asking and looking into around duty of care. I think we are in a positive place: there is an acceptance that there is at least a question that is worth looking into.

In financial services there is a lot of talk around the acronyms, as in any business or organisation. There is a lot of focus on KYC—“Know your customer”. May I suggest that, rather than promoting just KYC, all noble Lords involved in this debate and everybody outside the Chamber should also promote alongside it CFYC? That would take financial services into a very positive place for the future, as that “Care for your customer” is where banking originated centuries ago. It would be a thoroughly good thing for all financial services organisations to have a sense of CFYC.

On the amendment itself, I have heard my noble friend’s arguments and I understand the position. It would be helpful to have further discussions between now and Third Reading, to see what specifics it may be possible to set out in regard to this amendment. We may have had the answer on the general duty for this stage but it would be worth while having more discussions, not least because we are promised the response to the report of the Financial Exclusion Select Committee, of which I was fortunate enough to be a member. I would welcome further discussions and we could then decide what the route may be to Third Reading. But in thanking all noble Lords who have participated this evening, including my noble friend the Minister, at this stage I beg leave to withdraw the amendment.

Amendment 41 withdrawn.

Financial Guidance and Claims Bill [HL]

Lord Holmes of Richmond Excerpts

2nd reading (Hansard): House of Lords
Wednesday 5th July 2017 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a pleasure to take this opportunity to speak at Second Reading on this short but significant Bill. I welcome my noble friend to the Front Bench for her first legislative canter. This is not a bad steed to ride through the various stages. Like the noble Lords, Lord Kirkwood and Lord McKenzie, I was lucky enough to be on the ad hoc Lords Select Committee on Financial Exclusion, which published its report earlier this year. Will the Minister give us a hint as to when to expect the government response on the 22 recommendations made in that report?

It is delightful to see a stranger, Mr Guy Opperman, at the Bar, not only because it shows great commitment to be here for our deliberations but because it means that we do not have to wait for the Government’s response on the recommendation in the report that there should be a Minister responsible for financial inclusion or exclusion, depending on which way you choose to phrase it.

I thank all the organisations that sent such helpful, thoughtful briefings, not least Macmillan Cancer Support and Age UK. I also put on record at this point my thanks for everything that the FCA has done so far, not just in this area but across the piece. I think noble Lords will agree that we are incredibly fortunate in the UK to have a world-leading regulator in the FCA. That is not to ignore the comments already made that the role of the FCA may need to adapt and change, and I will make some suggestions later in this speech about how it will interact with the SFGB and work effectively with it.

We all know the old, and not particularly good, joke: “Is life worth living? It depends on the liver”. It is an awful joke, as is that, but I raise it at this point because, in terms of so much of the first part of the Bill, when one reaches a certain stage in life the joke is probably best reprised as: “Is life worth living? It depends on the nature and quality of, and access to, information, advice and guidance”. As has already been said, it is important to look at information, advice and guidance and to have clear definitions of each of them and delineations between all three. The Bill speaks on this to an extent, but is largely quiet about quality. There is a question around impartiality on all three of those points. There is no sense that anything the SFGB could offer on these points would in any sense overlap with anything coming from private providers because of the question of partiality.

On the costs of SFGB services, I strongly urge the Government, through the Minister, to consider how cost is considered, to look at all innovative and technological solutions for information, advice and guidance and to be clear for those who are currently digitally excluded and offline. The correlation between those who are digitally excluded and those who are financially excluded is stark and clear. As we move through the stages of the Bill, consideration should be given to priorities around the approach of the SFGB. How it chooses to deploy its functions and objectives will have a massive impact on the role it is able to play in this space.

I want to talk about funding. Jessie J is not entirely correct that it is not about the money. Often, it is absolutely about the money. The Bill says very little about the funding of this organisation. That will be critical for the impact it is able to have.

Similarly, on the independence of the SFGB, it is clear that the organisations which are rolling into this have played an important role but have had different experiences of the level of independence they have been able to exercise. One can understand the need for government to have an involvement. Although well-intended, whether it is measures or metrics, I hope it is never meddling. This should never be seen in the short term because, if we are talking about raising the nation’s financial capability, that is by no means an easy task and it is clearly not a short task.

There is a public policy role for the single body which is broader than financial capacity: research, evidence gathering and market intelligence gathering and sharing. We need to be thoughtful about how the single body goes about that and about whether anything needs to be said in the Bill to that effect.

I am nervous about stepping on to the ground of pensions, not least because the noble Baroness, Lady Drake, has spoken, and we are yet to hear from the pensions tsarina my noble friend Lady Altmann, but where the angels stop, I continue. There is a fair amount to be said in this space. TPAS, with which the noble Baroness, Lady Drake, is involved, has done an extraordinary job in this area, not least with its online and telephone service, helping more than 1.5 million people. I am delighted that the Bill wants this to continue, but during the legislative process I do not want to see any disembowelling or weakening of the role that TPAS has played.

Let me say a word on scams. Before our recent leather-wearing, optimism-sapping break, we seemed to have a reasonable amount of support about cold calling, putting some limits on people exiting their pension plans under the new rules and tightening up on the ability of individuals and organisations to set up fraudulent schemes. The Bill is silent on all three. It would be helpful if the Government would consider whether we might want to put them in in Committee and on Report because they are growing problems. They are not limited to pensions, but they are incredibly significant to pensions when one considers the costs and the implications of things going wrong for people at that age and stage of their lives.

Moving to what is not in the Bill, regarding how we measure the strength and success of any financial institution, I do not believe it should be measured merely by profit, the bottom line or even by employment, important though all those three are. In many ways, the greatest measure for any financial institution should be how it relates to the most vulnerable in society and in its consumer group—be they younger people, older people, disabled people or non-disabled—particularly those who are suffering significant health issues.

Again I refer to the excellent briefing from Macmillan Cancer Support on this. There are many such issues which people face in life and which put them into a vulnerable situation. Why do I choose to alight on cancer for this debate? Because of one shocking stat: by 2020, one in two of us will have experienced or will experience in our lifetime a cancer episode—50%. The great news is that survival rates—living with and then through cancer—are massively on the increase as well. That is why it is great to see innovations from charities and organisations such as Macmillan that do not just focus on the excellent care—important, vital and angelic though that is—but look to all the elements which enable a successful continuation of meaningful life with and through cancer.

What does this mean in terms of the Bill and how people relate to financial institutions? Only one in 10 people said they were prepared to tell their bank or building society that they had a cancer diagnosis. Of that one in 10, almost a quarter said they were dissatisfied with the reaction or response that they received from that financial institution. It is perhaps always beneficial to see this in an example. We will call him John: mid-40s, financially sound, a mortgage with 40% equity and a diagnosis of cancer. He goes to his bank, which says there is nothing it can do until he misses his first mortgage payment. There is no sense of engagement or involvement and no putting together a plan, even in those circumstances.

For John and the millions of people who may find themselves in a vulnerable position at some stage in their lives—let us be honest, we all will—I propose to bring forward in Committee an amendment that would impose a responsibility on financial institutions to have a reasonable duty of care for their vulnerable customers. When I consulted on this, it was extraordinary to hear from so many people that they thought such a responsibility surely must already be in place. I would be grateful to hear the Minister respond that the Government will receive such an amendment positively in Committee.

There is a great deal in this short but significant Bill. I have some final questions for my noble friend. What assessment has she made of the role of financial institutions towards vulnerable customers? Does she believe more needs to be done? To improve slightly on my noble friend Lord Hunt, I will quote myself from the speech I am still making: will she look favourably and positively on an amendment being brought forward in Committee to introduce a clause that would bring in a responsibility on financial institutions to exercise a reasonable duty of care—for their benefit and for the benefit of all consumers who may find themselves in those difficult life situations?

GovCoin

Lord Holmes of Richmond Excerpts

Monday 27th March 2017 Lords Chamber

Asked by

[Lord Holmes of Richmond]

To ask Her Majesty’s Government what assessment they have made of the GovCoin trial, and what plans the Department for Work and Pensions has in place for its large-scale rollout later this year.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Henley) (Con)]

My Lords, the initial independent assessment of the small-scale trial has been positive. The Department for Work and Pensions continues to work with industry to explore new and innovative products such as this that have the potential to support people with their personal budgeting and reduce the overall costs of welfare administration.

[Lord Holmes of Richmond (Con)]

My Lords, would my noble friend agree that initial findings offer real potential in this area, not least in greatly empowering the relationship between benefit recipient and the Government while at the same time realising significant savings for the taxpayer? To this end, will he urge colleagues in the department to push ahead with a full-scale trial to see whether we can deploy this technology—not only in the DWP but potentially across government?

[Lord Henley]

My Lords, I would not want to speak for the rest of government, although obviously I answer on behalf of Her Majesty’s Government on this occasion. Certainly, we want to look carefully at this particular trial. It was a very small trial, involving only some 20 to 30 people. It was more what I think is termed a proof of concept rather than a trial, but it produced encouraging results and we want to look at those in due course.

Life Chances Strategy

Lord Holmes of Richmond Excerpts

Wednesday 11th May 2016 Lords Chamber

[Lord Holmes of Richmond (Con)]

My Lords, it is a privilege to speak in this debate. There could barely be a more significant subject for us to consider in your Lordships’ House. I congratulate my noble friend Lord Farmer on securing this debate. As we heard in his marvellous introduction, his commitment in this area is truly copper-bottomed. In the time allowed, I intend to restrict myself to comment on sport and character education, and the positive impact that they can have on life chances.

I was fortunate enough to be taught to swim at the age of two by my mum—at least when I came above the water and started to swim, that is what she claimed she was doing for me. The power of sport to transform lives is seen in every element, from the first time someone has the opportunity to dive into a swimming pool, step on to a running track or merely run around the school playground.

To give some hard statistics, according to a recent survey previously inactive young people, once involved in physical activity and sport, increased their numeracy by 29%. There were similar improvements in behaviour, clearly demonstrating that sport is not just about the physical benefits: it goes across to psychological, social and, yes, economic benefits. None of this is mutually exclusive.

For example, the Hackney Boxing Academy runs a support scheme where one of the qualified trainers takes six young people, and works with them and mentors them, helping them to have confidence in their schoolwork and to focus on their sport—the benefits could hardly be overstated. A graduate of the scheme, Dylan, said in 2012, “I’m a completely different person”. How can we say any more than that about the transformational power of sport to enable people’s life chances?

Again on boxing, when I was on the board of UK Sport, we understood that special facilities were needed for our boxers if we were to enable them to escape what life had predetermined for them. We did not just get boxers to competitions, to the national team and to internationals; we got boxers from some of the most challenging backgrounds in this country to go to the Olympic Games and bring back gold for Great Britain—transformational.

I commend my honourable friend the Sports Minister for the sports strategy which was recently published. This demonstrates how sport has to go across Whitehall, to all relevant departments. As I have said, it is about psychological, social and economic benefits. If we could truly get the inactive active, there is a £53.3 billion prize to be had for this nation. To expand on that, in light of the incredibly worrying mental health stats, what are the Government doing to address that most significant of issues? I highlight the work of great organisations, not least YoungMinds, in that area.

In a sense, all education needs to be character education, because it is character which will pull people through. As in sport, it is about getting that sense of self-belief, self-discipline and self-worth—to consider that anything could be your destiny. Yes, we need literacy and numeracy, and yes we need digital literacy, but we need character education throughout every element and all around the curriculum, including in sport, art and music—stuff that touches our hearts and souls as well as our minds.

I end where I began. Few subjects could be more significant and more profound, and have more of an impact on the individual and, through that, on our society and, yes, on our economy—again, these things are not mutually exclusive. I conclude with the words of perhaps one of our greatest Britons:

“The fault, dear Brutus, is not in our stars,

But in ourselves, that we are underlings”.

Through government policy, through leadership and through the work of hundreds of thousands of people up and down this country working in sport—through all of that and more—let underlings be gone. Let us unleash the potential and address that most significant of issues: talent is everywhere, while opportunity is not.

Employment

Lord Holmes of Richmond Excerpts

Wednesday 21st January 2015 Lords Chamber

Asked by

[Lord Holmes of Richmond]

To ask Her Majesty’s Government what assessment they have made of the latest United Kingdom employment figures.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud) (Con)]

We are seeing a strong, broad-balanced and sustained recovery of the UK labour market. Employment is at an all-time high and the number of vacancies is at a record high. The main out-of-work benefits are at their lowest level since 1990.

[Lord Holmes of Richmond (Con)]

My Lords, average earnings up, unemployment down, more people in full-time—yes, full-time—employment since 2008: this is an economic recovery. Does my noble friend the Minister agree that a high-employment, low-inflation economy is the only way for us to dig ourselves out of deficit and that we need to ensure that everybody is enabled to have meaningful employment—not least young people and disabled people?

[Lord Freud]

One of the best things about this recovery in jobs is that they are going to some of the people who in the past have not taken part in these recoveries. That includes the disabled, where there is a strong improvement of 250,000 jobs over the past year with some 3 million now in employment. We are in a really healthy position in reducing long-term unemployment among youngsters.

Unemployment: Young People

Lord Holmes of Richmond Excerpts

Tuesday 28th October 2014 Lords Chamber

Asked by

[Lord Holmes of Richmond]

To ask Her Majesty’s Government what assessment they have made of the recent figures on youth unemployment.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud) (Con)]

My Lords, youth unemployment has fallen by a record-breaking 253,000 in the last year. This brings total youth unemployment down to 733,000, one-third of whom are full-time students looking for work. Excluding these students, 6.4% of all young people are unemployed —this is a lower figure than that immediately before the recession.

[Lord Holmes of Richmond (Con)]

My Lords, these figures are indeed good news. However, as we all appreciate, any case of youth unemployment is a tragic waste of talent, both for the individual and for society. Will my noble friend consider working with ministerial colleagues to insert a condition into all public procurement requiring bidding businesses to offer high-quality apprenticeships? That is a small step but could be significant.

[Lord Freud]

I accept my noble friend’s point that every case of a youngster being out of work is a tragedy, and that is why we have put so much energy into getting youngsters back into work. We support the appropriate use of apprenticeships in procurement and that can be important for local skills and growth, but we do not support the blanket inclusion of apprenticeships in all contracts. It is up to individual departments. For instance, for longer-term contracts, my department the DWP requires suppliers to take reasonable steps to ensure that 5% of their workforce are on apprenticeships, but there are other contracts where that is not appropriate—for instance, contracts with healthcare professionals.