Health and Care Bill

Debate between Lord McFall of Alcluith and Baroness Bennett of Manor Castle

Committee stage
Friday 4th February 2022 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, I will also speak to Amendments 238 and 239 in my name. Predatory and rent-seeking financial practices by investment firms and hedge funds, which are often based in tax havens and have extremely complex ownership structures, have placed unmanageable financial and human costs on the UK care sector. I first learned about this issue in 2016 from the brilliant Centre for Research on Socio-Cultural Change, which was then based in Manchester but is sadly no longer extant. Since then, the issue has become a staple on the pages of the Financial Times. If any noble Lord does not know about this issue, I urge them to look up “UK social care” on ft.com. They will see there a long string of stories from a publication that does not generally represent my side of politics saying how much of a problem this is.

I also note that, last week, the noble Lord, Lord Sikka, not currently in his place, initiated an Oral Question that highlighted some of the worst abuses in financialised care homes, from HC-One siphoning off 20% of its revenues to offshore affiliates through intra-group transactions to—as was highlighted by the noble Baroness, Lady Brinton, who may raise this again later—the industry average of 16% of the money going not to care but to the financial sector. The crisis is here and was further highlighted by the recent “Panorama” report.

What is lacking, however, and I have been looking for them since 2016, is solutions. How do we change this situation? It is worth pointing out that this is not how things have always been. Back in the 1980s, the NHS was generally known as a world leader for geriatric care, as it was then known, picking up half of the care sector for older people. In 1982, there were only 44,000 private care home beds. By 1994, there were 164,000. The number of charity, non-profit, local authority beds plummeted and the private sector came in or displaced the public.

The amendments to the Health and Care Bill that I am presenting today rely on the work of the All-Party Parliamentary Group on Limits to Growth. Its excellent report covers these issues in much more detail than I have time to do today and I urge noble Lords to look at it. The group worked on and produced these amendments.

Amendment 237 takes what I think could be a deeply dangerous element of the Government’s Bill, which has received little attention thus far. It is the provision allowing for government support of private care facilities. This is not possible now. Amendment 237 would add the provision that these funds cannot be used to make payments on debt obligations for for-profit bodies or in distributions to shareholders—huge payouts that were highlighted in last week’s debate.

However, that takes us further, and it is interesting that the government amendment—I suspect unintentionally—actually gives us a way forward to start to unwind the privatisation, as there is a potential problem. We have already seen two major private care home crashes: Southern Cross in 2011 and Four Seasons Health Care in 2019. When—I will not say if—more crash, how do we start to move towards worker co-operatives, social enterprises, local authority homes and charity-run homes? How do we ensure that people can stay in those homes safely and be cared for, and not see the money siphoned off into offshore tax havens? We can use Clause 141 with this amendment for potentially very positive, even revolutionary, purposes.

Amendment 238 picks up a point that I often make that a foundation for tackling our out-of-control financial sector and ensuring that fair taxes are paid by companies is country-by-country reporting. The amendment requires any related companies within the same corporate group that are registered offshore to be under the same financial reporting and publication requirements as those bodies registered in the UK. That means that expenditure on dividends, directors’ fees, interest payment and similar would have to be fully and transparently declared. I have to ask the Minister: what does he have against transparency in the financial sector? What could the Government possibly have against seeing exactly where the money goes—whether it is the money of older, vulnerable people in our society or the state money that is supporting them? That is all that this amendment does; it demands that transparency.

These two amendments are not a total solution—I do not have a panacea for the situation—but they are a start, and that is why they combine with the third amendment in this group, Amendment 239, which calls for a review. It is a very simple, obvious amendment of a type often seen in your Lordships’ House. I note that I am joining the former Conservative Health Secretary Jeremy Hunt, who also recently called for a review of the funding. We see some unusual alliances in this House; this is an unusual alliance between the two Houses.

As we all know and has just been highlighted, the many hours of this debate have focused on what a mess the care sector is. These are the most vulnerable members in our society, and a significant part of that mess is because money is being siphoned away from their care. We can use the Bill, with these three modest amendments, to start to turn around that situation. I beg to move.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, the noble Baroness, Lady Brinton, is taking part remotely. I invite her to speak.

Migration

Debate between Lord McFall of Alcluith and Baroness Bennett of Manor Castle

Thursday 28th October 2021 Lords Chamber

[Baroness Bennett of Manor Castle]

To ask Her Majesty’s Government what plans they have to promote (1) knowledge, and (2) understanding, of the contribution of migration to society.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, I hope that noble Lords will bear with me and that I get this correct.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper, with the correct list of questioners.

Northern Ireland: Customs

Debate between Lord McFall of Alcluith and Baroness Bennett of Manor Castle

Monday 18th May 2020 Lords Chamber

[The Senior Deputy Speaker (Lord McFall of Alcluith)]

The Earl of Kinnoull. No? We will go on to the noble Baroness, Lady Bennett of Manor Castle, and come back if the noble Earl, Lord Kinnoull, reconnects.

[Baroness Bennett of Manor Castle (GP)]

Even with the light-touch barriers the Minister referred to, there would clearly be extra costs on goods coming from Great Britain to Northern Ireland. Given the low wage levels in Northern Ireland—£50 per week below the UK average—how do the Government plan to ensure that workers are compensated for the extra costs that would be in effect as a result of any barriers of any sort?

[Viscount Younger of Leckie]

The noble Baroness raises an interesting point. I feel sure that those will be part of current discussions. If there is anything more to add to that answer, I will write to the noble Baroness.