Deregulation Bill
Lord McKenzie of Luton Excerpts(9 years, 9 months ago)
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“(2) After subsection (2) (which imposes a general duty with respect to health and safety on self-employed persons) insert—
“(2A) Nothing in subsection (2) shall preclude the Secretary of State from making regulations exempting self-employed persons carrying out certain activities from the provisions of subsection (2) or from specified regulations thereunder where it can be shown that their work activities pose no potential risk of harm to others.””
Lord McKenzie of Luton (Lab)
My Lords, in moving Amendment 1, I shall speak also to Amendment 2. The purpose of these amendments is to ensure that any changes to health and safety legislation affecting the self-employed do not stray more widely than those recommended by Professor Löfstedt and that the prescribed description approach currently in the Bill is removed. They further seek to ensure that the process for constructing and implementing regulations is fit for purpose and require them to meet certain criteria, something which has eluded government attempts so far.
In his report, Reclaiming Health and Safety for All, Professor Löfstedt recommended that those self-employed whose activities posed no potential risk of harm to others should be exempt from the general duties of the Health and Safety at Work etc. Act 1974. This is notwithstanding that it is generally acknowledged, including by the professor himself, that the current duties do not overburden the self-employed and that any requirements in such situations would be minimal in terms of time, cost and enforcement effort by the HSE and local authorities. But the Government accepted this recommendation, asserting that Europe adopted a more proportionate response on such matters and that it would remove unnecessary concerns over the perception of heavy-handed enforcement. Given the minimal benefits which would flow from implementing the recommendation, and the risk of confusion which any legislative change could engender, we and many others have argued for making no change—for the status quo—and this remains our preferred position. Nevertheless, we have to accept for the time being at least that this is not the position adopted by noble Lords in Committee.
The task as we see it now is to constrain the primary legislation and require a robust process for secondary legislation to see that the professor’s recommendation can be accommodated without the prospect of wider exemptions from health and safety legislation being adopted by default, mistake or otherwise—in other words, as the CBI recommends, going back to square one.
Lord Wallace of Saltaire (LD)
My Lords, this clause has emerged out of a series of consultations during the past four years. As the noble Lord, Lord McKenzie, remarked in his very detailed and constructive speech, the first consultation took place in 2012 on the principle that there should be a list of undertakings prescribed in regulations that are excluded from health and safety law. That did not find large favour in the consultation. The most recent consultation has not found very large favour for the Government’s current proposals. We are finding it difficult to satisfy all those concerned. I note that the noble Lord did not quote the Federation of Small Businesses’ response to the current consultation, which is a good deal more favourable that those that he did quote. On the question of the current consultation, it took a certain amount of time; we had a lot of responses to the consultation and we had to put them all together. It has now been published and the Government will, of course, consult and consider what their response should be. We very much hope that we will have time to consult further and return to this issue before we get to Third Reading.
The Health and Safety Executive has, of course, been actively engaged in this entire process over the last four years; I stress that it is very much part of the process of policy-making. We all share the underlying purpose, which is as it should be, as the noble Lord, Lord McKenzie, suggested in his speech, a lessening of health and safety burdens on those self-employed who are not at risk and are highly unlikely to put others at risk from their activities. That is what Professor Löfstedt suggested in his earlier report; it is part of the German system. To the noble Lord, Lord Lea, I say in passing that there are many parts of the German system of employment, training and employment protection that we would very much like to take on board. I am happy that this Government have indeed taken us a good deal further down the road towards apprenticeship training than their predecessors. There are other aspects—including some aspects of the Meister system, now that I have begun to understand that—which are clearly restrictions on trade and which we do not wish to follow. However, one cannot ever take an entire model from one country and put it into another.
There are other areas over which I have spent some time arguing with German policymakers over the years; the idea that, just because a system has worked since the 14th century, one should maintain it at all costs, is not always an idea that one wishes to promote. I was one of those involved in the British side of the argument over the Reinheitsgebot, which the noble Lord might remember. It was to do with the purity of beer and was passed in about 1351. However, we will leave the German dimension aside and return to the current issue. We apologise that the consultation document has only just appeared. The Government will respond as soon as we are ready and we hope that we will have more to say on this before we reach Third Reading.
The issue at stake is which side one takes in reducing the burden, and whether to make a list of those, as this proposal suggests, whose activities are at greater risk of putting others in harm’s way from the way they are conducted—those involved in construction or a range of other activities that involve interaction with others. Professor Löfstedt prefers a system in which there is only a prescribed list of those activities that are exempted from the current health and safety regulations. The argument that we have been having through two series of consultation has been about how one defines “low risk” and “high risk”. This is an area, after all, on which one can spend a great deal of time, having a large number of consultations without meeting consensus. I regret that we have not yet reached an entire consensus.
The noble Lord’s first proposed amendment reverses the effect of Clause 1, so that all self-employed persons continue to owe a duty under Section 3(2) of the Health and Safety at Work etc. Act unless regulations are made to exempt them from that law, whereas the Government’s proposals exempt them unless they are on another prescribed list. This approach, we argue, would increase confusion for the self-employed because there are a plethora of low-risk activities that would need to be captured to ensure that the regulations were as extensive as possible. Furthermore, each of these activities would need to be appropriately and carefully defined. This could create further uncertainty in the law and make it unwieldy for the self-employed to comply with. This is part of what the Federation of Small Business was saying in its response to the current consultation.
The noble Lord’s second amendment seeks to impose various conditions upon the making of regulations before self-employed persons can be exempt from Section 3(2) of the Health and Safety at Work etc. Act 1974. The amendment would require an independent review to be conducted and considered by both Houses before the regulations can be brought into force. We do not consider this necessary. The Government amended Clause 1 in Committee so that regulations made under the power that it creates are subject to the affirmative resolution procedure before they come into force. This provides Parliament with an adequate opportunity to scrutinise and debate the list of prescribed activities to ensure they are fit for purpose.
The conditions which the noble Lord seeks to impose on the regulations can already be considered by both Houses as part of the affirmative resolution procedure if, indeed, Parliament considers those factors to be relevant. Additionally, the proposed prescribing regulations contain a commitment for their review and for a report to be published after five years of making them. That report will seek to assess the extent to which the intended objectives of the proposed change have been met. Given the safeguards already in place, the Government do not consider that a further independent review of this alternative proposal would be of any benefit.
It is imperative that self-employed persons, especially those involved in conducting high-risk activities, understand when health and safety law will continue to apply to them after this legislative amendment is made. For the reasons I have already given, we do not consider the noble Lord’s amendments to be the best way of achieving that. They are unnecessary and overly burdensome. After all, the purpose of the Bill is to reduce unnecessary burdens. The clearest and simplest way to achieve this change is by having a list of prescribed high-risk undertakings together with guidance produced by the Health and Safety Executive which will make it clear and unambiguous to those who continue to owe a duty under the Health and Safety at Work etc. Act.
I repeat: the Government are currently considering the comments just received following the 2014 consultation on the draft regulations already produced. These raise a number of important issues which the Government will consider further before Third Reading. In that context, I hope the noble Lord will feel able to withdraw his amendment.
Lord McKenzie of Luton
My Lords, I thank noble Lords who contributed to this short debate. My noble friend Lady Donaghy put the matter straight about Professor Löfstedt’s views. My noble friend Lord Lea spoke about the danger of building proposals on perceptions rather than proper evidence. I thank my noble friend Lord Jordan for providing the historical context of health and safety, and the cost when it goes wrong. The noble Earl, Lord Lindsay, broadened the debate a bit around the accreditation processes. I am sure we would have scope for a fuller debate around that issue. As I understand it, he argued that its application could be to an inclusive, exclusive or status quo proposition.
I understand that the Government are finding it difficult to get this right. That is why two rounds of consultation have not succeeded in doing that. We argue, given the complexities and difficulties in trying to get it right, that leaving it as it is would be the far better option.
Lord Wallace of Saltaire
I should point out that the first consultation did not provide much support for the noble Lord’s amendment. The second consultation criticised the Government. I merely remark that we are struggling in this area. That is, of course, why we are considering it further.
Lord McKenzie of Luton
I am not sure that the noble Lord’s assertion about the first consultation not supporting our position is right. It does not necessarily depend upon a prescribed list of any sort. The key point about our amendments is that they are linked to clear criteria that have to be satisfied before any change could be introduced. There are criteria around not increasing burdens and bureaucracy, representing demonstrable improvement on existing legislative requirements, and clarity and precision as to whom they apply. The two amendments sit together. The consultation that has just been gone through proves how difficult it is to have a list of high-risk activities. I struggle to understand what changes the Government could make to that process or outcome to make it fit for purpose. That is not just my view; it is the view of a raft of people who know health and safety and business far better than I do, the CBI included.
Lord Wallace of Saltaire
I only had a chance to read the consultation document on Friday and we are at a very early stage on that so it is very difficult to say precisely what we will conclude. I merely wish to say in the most constructive way possible that we are considering our response. We have three weeks before Third Reading and that gives us some time to consider further.
Lord McKenzie of Luton
I am grateful for that—and I meant Third Reading, of course, not Report. Is the noble Lord saying that we will have a chance possibly for some discussions in the interim and, if not, a chance to consider this further when we get to Third Reading? It is quite important that we have that commitment from the Government on the record, whichever stage it reaches.
Lord Wallace of Saltaire
My Lords, of course I am very happy to discuss this between now and Third Reading. I am not in a position to say what the Government will conclude from their consideration of the current consultation document because we are at a very early stage, but I am very happy to promise to consult further.
Lord McKenzie of Luton
My Lords, I am not quite sure why the Government are so pressed on this matter because that consultation finished some five months ago. I note that the Minister has been less than clear on whether, if we are not satisfied with what happens in the interim, we would be able to return with amendments at Third Reading. It would be helpful if the Minister could give me an assurance that he would facilitate that; if he cannot, we have another decision to make.
Lord Wallace of Saltaire
I recognise what the noble Lord is asking me to do. At this stage, I am afraid I cannot give him the absolute assurance he requires, but I am certainly willing to have further consultations, and the Government will be very happy to carry on on that basis.
Lord McKenzie of Luton
The Minister is not making it easy. I know it is not his job to make it easy. We are trying to see a way forward to avoid voting prematurely, in a sense, if the issue has not been completed. If the Minister is saying that he would be happy for us to come back at Third Reading with a proposition, if we need it, depending on what the Government do in the mean time, that would be helpful. If he is saying that he thinks that the processes in the Companion would preclude that, then we have another decision to make.
Lord Wallace of Saltaire
My Lords, the clerks are nodding. That suggests it would entirely open after consultation for the Opposition to come back again on this issue.
Lord McKenzie of Luton
I am grateful to the Minister and to the clerks for nodding, in which case I beg leave to withdraw the amendment—but with notice that we look to return to it at Third Reading.
Lord Harris of Haringey
My Lords, like the noble Lord, Lord Tope, I do not have any current London government interests to declare, although I was the founding chair of the artist currently known as London Councils, which was then called the Association of London Government, for five years. I was a London borough leader for a number of years and an elected representative in London for 26 years, and for two—or perhaps four—years I was chair of a London organisation called London Waste Action.
I find Clause 44(6) to be quite bizarre, particularly in a Deregulation Bill. What I understand has happened is that the Government looked for a model of deregulating some of the complexities outside London, found that London had a system that worked and decided to replicate something like it for the rest of the country. However, because of some natural desire in the relevant government department to make things more rather than less complex, which this Bill is supposed to stop from happening, they produced a system that is more complicated than the London one. Then, for ease of simplicity and universality—quite against the principles of localism and devolution, which we understood the Government were in favour of—they decided to impose this more complicated system on London, even though London has a system that works perfectly well.
I frankly do not understand the logic of this. The model that exists in London has emerged through a London Local Authorities Bill, which was passed into legislation by Parliament; it is a locally determined scheme that decriminalises the system and provides a system of appeals which, as the two noble Lords who have spoken have indicated, has worked well since it was introduced. The Bill before us would sweep it away and replace it with a more complicated system, which would necessarily introduce a degree of delay. The process that the noble Baroness, Lady Hanham, has described—of forming an intent, telling someone that you might have an intent, then telling them that you have had an intent and giving them an opportunity to make representations and an appeal at each stage—is unnecessarily cumbersome.
The reality is that we are talking about people who are dumping waste. They do so—I have watched it happen, taken photographs and tried to get something done about it. They turn up late at night with a van and they dump a pile of waste somewhere, on the assumption that local authorities will sort it out. The reality is that this is not a process where you need this incredibly complicated system to deal with it. You simply need to pursue those who are offending. What we will create as a result of the Bill is something that will be more bureaucratic and slower, will cost more and will go against the principles of devolution, because it was a system developed by London local authorities in the first instance.
Waste is a big matter—as the noble Lord, Lord Tope, said, “Never go against issues of waste”—and is the third-largest item of expenditure within local authorities. It is a massive part of the business of local government. Here we have a scheme that was developed by London local authorities and that is working well. Now the Government want to come in heavy-handed and against the principles of deregulation and devolution, and impose a complicated, overly bureaucratic and expensive system.
I am sure that the Minister will recognise that Clause 44(6) has crept in by accident, along with its accompanying Schedule 12, and agree to the amendment of the noble Baroness, Lady Hanham, and simply take them out of the Bill so that we can allow the current arrangements to continue. However, if he does not have the authority to agree that tonight, I hope that he will meet with the noble Baroness, myself and others who might be interested, along with London Councils, so that there can be a proper discussion about this before we get to Third Reading. It can then be remedied at that stage, either by the Government or perhaps by the noble Baroness, Lady Hanham, introducing a similar amendment and putting it to the vote.
Lord McKenzie of Luton
My Lords, I can be brief because of the powerful arguments made this evening by the noble Baroness, Lady Hanham, the noble Lord, Lord Tope, and my noble friend Lord Harris. The points they made were extremely telling. It is incumbent now upon the Government and the Minister to try and answer why an approach that is non-localist and bureaucratic should proceed rather than the current arrangements under the London Local Authorities Act 2007. What is the problem with London that this seeks to solve? It is incumbent on the Government to say.
The Government’s focus on this area is all very well, but is it the right priority at the moment? The Minister will be aware of current figures for recycling rates that show that for England household recycling has pretty much flatlined, with a very small increase in the last figures that I have seen. There are real concerns that recycling rates could potentially decline. I would have thought that the Government should be more worried about that than tying up these bureaucratic arrangements that have been so roundly challenged tonight. I hope the Minister will be able to explain very clearly why the Government are where they are on this.
Lord De Mauley
My Lords, I believe that there is broad political consensus that Clause 44 is needed to introduce a fair system of penalties related to household waste collection in England. This new system will treat individuals more fairly than hitherto and deal effectively with those whose behaviour has a negative impact on residents’ local neighbourhoods, such as leaving bin bags on the street for days on end.
The clause removes the current criminal sanctions available under the Environmental Protection Act 1990. The system we propose means that fixed penalties of between £60 and £80 will be available if a person does not present household waste as required and this causes a nuisance or is detrimental to the locality. The clause introduces a “harm to local amenity” test. Civil sanctions will be available to deal with behaviour such as putting waste out in a way that causes obstruction to neighbours, attracts pests, unreasonably impedes access to pavements or is an eyesore.
In Amendments 18 and 19, my noble friend proposes to retain a parallel system in London. We want to change the law so that only people causing real problems for their community will get punished—for example, people leaving bin bags on the street for days on end. The new test of causing harm to local amenity is designed to ensure this. My noble friend’s amendment would enable London boroughs to bypass this important safeguard. That would mean that if a London resident happened to leave a bin lid open or if someone threw the wrong rubbish into someone else’s recycling bin then the householder—that is, someone else—could be punished, in London.
We do not think it appropriate for people to be penalised for a first-time mistake or someone else’s careless action. They should be told what they have done wrong and have the opportunity to rectify their errors. Clause 44 introduces these changes to the Environmental Protection Act 1990. I am confident that this will not add significant burdens compared to how the current arrangements operate in practice. We know that many authorities already communicate well with their residents and seek to educate them if they have difficulties with collection requirements.
Flooding: Somerset
Lord McKenzie of Luton Excerpts(10 years, 9 months ago)
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Lord McKenzie of Luton (Lab)
My Lords, I thank the noble Lord, Lord De Mauley, for repeating the response to the UQ asked in another place. In doing so he made reference to the Somerset Levels. It will be a considerable relief to those living and farming on the Somerset Levels that the Army has been made available to assist with efforts to protect homes, farms and other businesses. Combined with the efforts of the fire and rescue service, police, Environment Agency staff, local government workers and many volunteers, it is clear that there is finally a concerted effort being made in responding to the floods. However, does the Minister understand the anger and frustration that it took so long for this level of response to be organised by the Government, considering the fact that many people have been dealing with rising water levels since before Christmas? In particular, given that unemployment in the south-west is rising and employment is falling, can the Minister provide an update on the work going into restoring the vital rail connectivity to Devon and Cornwall? Have Ministers formally asked Network Rail to present options for long-term solutions to the vulnerability of this line, including rerouting?
Lord De Mauley
First, I say to the noble Lord that I absolutely understand the frustration and the feelings of those who have been directly affected by these frankly awful weather events. We are doing whatever we can to make sure that properties of people are protected from flooding. Our efforts have meant that 1.2 million properties which would have been flooded since December have not been flooded.
The noble Lord asks specifically about Network Rail. I can tell him that Network Rail is developing strategies for securing the long-term resilience of the railways. Over the next five years, the operator has asked the Office of Rail Regulation for nearly half a billion pounds to invest in resilience improvement projects. In terms of the present, Network Rail engineers are on-site at a number of locations in the south-west, doing all they can to make repairs where the weather conditions permit.
Food: Food Banks
Lord McKenzie of Luton Excerpts(10 years, 12 months ago)
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Lord De Mauley
My Lords, my noble friend makes a fair point. I am not going to accept his invitation to suggest what the party opposite might or might not do.
Lord McKenzie of Luton (Lab)
My Lords, is it not the case that the increased use of food banks is at least in part attributable to the fact that we have a harsher benefits system, a harsher sanctions system and a harsher hardship system? In the year to June, some 860,000 JSA claimants were sanctioned; under the new three-year sanction, which we were told would apply only to a handful of people, more than 700 people were sanctioned. How healthily can you eat on £42 a week?
Lord De Mauley
My Lords, I think it is right to expect claimants who are able to look for or prepare for work to do so. Claimants will only ever be required to meet reasonable requirements, taking into account their circumstances and capability. A sanction will never be imposed if a claimant has good reason for failing to meet requirements, and sanctions can be reconsidered or appealed. If claimants demonstrate that they cannot buy essential items, including food, as a result of their sanction, they can claim a hardship payment. This means that no claimant should ever have to go without essentials as a result of their sanction.
Public Bodies Bill [HL]
Lord McKenzie of Luton Excerpts(13 years, 8 months ago)
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Viscount Slim
My Lords, I speak because of my work with veterans. I remind the Minister, if he needs reminding, that a veteran can be an old fellow like me or he can be a young man of 18 or 19 with no legs. There are many people who use wheelchairs, who are blind or who are otherwise incapacitated. Having listened to what has been said, I wonder if the Government have really thought this problem through. I have to say that, until I hear the noble Lord speak, I support the noble Lord, Lord Low, and the others very much in what has been said so far. I am not sure that the Government have really gripped this problem.
Lord McKenzie of Luton
My Lords, I support of each of these amendments, so effectively moved by the noble Lord, Lord Low, and spoken to by the noble Baroness, Lady Grey-Thompson, my noble friend Lady Wilkins, the noble Viscount, Lord Slim, and the noble Lord, Lord Newton. I was very interested to hear his role in the conspiracy.
The Disabled Persons Transport Advisory Committee has played a vital role in advising government and industry on accessible transport systems. Its focus on ensuring that disabled people have the same access to transport as anyone else has been key to many improvements over the past 25 years. However, as the noble Lord, Lord Freud, acknowledged in Committee, despite considerable improvements in access to all modes of transport over that period, there is still much to do. We heard some of this just this afternoon. My noble friend Lady Wilkins talked about those with learning disabilities. The noble Baroness, Lady Grey-Thompson, said that it is difficult for disabled people to be spontaneous and spoke with great authority about the high expectations in the UK in relation to the Olympics.
We know that RADAR has pressed the point that major investment in accessible transport has not yet been matched by a major increase in confidence among disabled people in getting out and about. A huge amount of awareness-raising remains to be done because we have not yet delivered a truly integrated system that guarantees independence and safe mobility. Of course, this is essential if disabled people are to have proper access to services and jobs.
We were told in Committee that issues around disability and transport had moved on, as it were, since DPTAC was put on a statutory basis, and these matters were embedded in the core approach of the Department for Transport. That is as it should be, but it is not a reason to abandon DPTAC; in fact, it would seem to be an acknowledgement of its success and its relevance. It has its statutory functions and is a statutory consultee when rail vehicle accessibility regulations are to be introduced. The Minister might tell us what, if DPTAC is to go, will replace those arrangements. DPTAC has not just been passive, sitting back and waiting to be consulted; its strength is that it has been proactive and an independent voice, mirroring the debate that took place under the last amendment.
The Minister has a high hurdle to overcome if he is to convince us of the merits of his case. We have agreed that disabled people are the experts in their own lives and it is their voices that we should be listening to this afternoon. DPTAC has been a success; it has knowledge, experience, commitment and a track record, so why try to fix what is not broken? Cynics may say that Ministers have to meet their quota of quangos to be dealt with. If the Government are determined to destroy DPTAC, we must know before they do so, as the noble Lord, Lord Low, made clear when speaking to Amendment 21, what is to replace it, the process by which that judgment is to be made and, in particular, how disabled people and their families and carers have been engaged. We should know their views on what is proposed.
The Government would be wise to draw back from removing DPTAC, and I urge them to do so. If they do not, and the noble Lord, Lord Low, is minded to test the opinion of the House, he will have our support.
Public Bodies Bill [HL]
Lord McKenzie of Luton Excerpts(13 years, 10 months ago)
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Lord Phillips of Sudbury
If the Advisory Council on Libraries is allowed to continue, it may be about to have its finest hour. I suspect that my local authority, Suffolk County Council, will be the same as many councils in having to shed a great many of its libraries on to charitable bodies that have yet to be formed. If ever there was to be a time when the advisory council came into its own with knobs on, it is surely in this important transition. Could the Minister say a little about that?
Lord McKenzie of Luton
It is with a degree of trepidation that I rise to speak on issues of libraries, particularly with my noble friend Lord Evans of Temple Guiting sitting on the Front Bench. He is of course far more knowledgeable than I am and has been engaged in this subject for a long time. I put the Opposition’s position on this in relation to local government, where it has a big impact.
Like so many things we have discussed under Clause 1, there is here the potential demise of something without any clear indication of what will go in its place. This is especially bad for libraries given their vulnerability at the moment, and we know that local government has been subject to huge cuts. We can argue the macroeconomics of that but, even within the Government’s framework, the front-end loading and the degree of cuts focused on local government are profound and give huge challenges.
To my regret, I do not use libraries much these days because of Front-Bench duties. A lot of the Minister’s time will be eaten up by quite turgid policy documents and we miss the chance of reading that we might previously have had. Yet my local council, Luton, is striving hard to preserve library services. My mother-in-law, who is 91, thrives on the mobile service. You can see her light up when they come with the delivery of, I think, eight books at a time. She is surrounded by books; they are an important part of her life. If that were at risk it would be a problem.
The noble Lord, Lord Phillips, said that this organisation should have its finest hour at a time when libraries across the country are more vulnerable than they have been for many years. I was surprised by the extent to which there is still library provision in the UK. I think there are more library branches in the UK than branches of McDonalds or Boots. Apparently, 10 times more people visit libraries than go to football league matches. That is really encouraging and something we should cherish. It is not just about reading. There are something like 300 million visits to public libraries each year. Those visits play a significant role in driving up literacy rates, increasing the number of people adopting healthier lifestyles, raising skills levels of all ages, providing diversionary activity to reduce crime, building bridges in the community to aid cohesion, reduce radicalisation and improve integration, engaging people in local democracy and getting more people to vote.
We fear that the coalition cuts to libraries mean that an estimated 6,000 people—a quarter of librarians according to the Chartered Institute of Library and Information Professionals—will lose their jobs in upcoming years. That would prove an incredible indictment of what this Government is about. Plans to replace professional librarians with volunteers may protect some libraries but will inevitably jeopardise the quality of services. The effects of the cuts being faced are expected to be felt across the country, with North Yorkshire reducing 42 libraries to 18 over four years, Leeds axing 20 small libraries, and Cornwall, Brent, Lewisham, Hammersmith and Fulham, Richmond, Barnsley and Warrington also planning closures.
I ask the Minister whether the Government believe that untrained volunteers are any substitute for the services of professional librarians. What assessment have they made of the impact of library closures and reduced library services on efforts to improve adult literacy? How will the Government ensure that library closures and cuts to library services will not adversely affect those people who do not have access to the internet—the very poorest in our society? It is a route to that technology for many. Do the Government still believe that libraries are a vital lifeline for families with children, as well as elderly and vulnerable people? Have they assessed the likely impact of cuts to library services on those members of our communities?
I am conscious that we have conflated the cuts that local authorities face and the challenges that that brings with particular references to the Library Advisory Council, but losing the council at this time has very severe implications. I ask the Minister to comment on what would replace it, and what role that replacement would take in encouraging working with local government, given the challenges faced with the cuts that are being imposed.
Public Bodies Bill [HL]
Lord McKenzie of Luton Excerpts(13 years, 11 months ago)
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Lord McKenzie of Luton
My Lords, the purpose of this amendment is to seek fully to understand and evaluate the rationale for including the Child Maintenance and Enforcement Commission in Schedule 1 and the reason for its conversion announced on 14 October back to an executive agency of the DWP.
Noble Lords will be aware that CMEC is a relatively new body—a crown non-departmental public body—created by primary legislation in the Child Maintenance and Other Payments Act just two years ago. It was then the subject of considerable debate. Accepting its demise via the process in this Bill therefore needs considerable justification.
CMEC was charged with completing the operational improvement plan and to carry out a fundamental redesign of the child maintenance system. The operational improvement plan was part of a twin-track approach to radically improve the performance of the Child Support Agency.
The CSA was established in 1993 to assess, collect and enforce child maintenance payments from non-resident parents. It was set up because the system of collecting maintenance through the courts was perceived as failing to establish fair and consistent awards which were not necessarily kept up to date or indeed enforced. Despite the best efforts of CSA staff, the complicated calculation process, IT failures and inadequate enforcement contributed to poor performance and unacceptable outcomes for children.
The CSA struggled to administer the complex rules in the child maintenance system and to handle the difficult and emotional circumstances that often surround parents when child maintenance becomes an issue. It was widely seen as a means of clawing back benefit rather than providing additional resources for children. Reforms in 2000 brought some simplification to the maintenance calculation. The introduction of a child maintenance premium where those in receipt of benefit kept some of the maintenance payments was a positive development. However, the changes still did not deliver the improvements expected. In particular, there were chronic problems with the IT and operational systems, which meant that old scheme cases could not be transferred to the new, simplified system.
Again, the result was that too many children did not receive the benefit of maintenance, which led to the approach of a three-year operational improvement plan, and the call for a longer term redesign of the child maintenance system. The latter was the subject of a report commissioned by the noble Lord, Lord Hutton, when he was Secretary of State at the DWP, from Sir David Henshaw. Sir David argued that the system’s failings reflected both policy and operational problems, and recommended a break with the past to create a new start for child maintenance arrangements. CMEC was to be that new start. It was established with the primary statutory objective of maximising the number of effective maintenance arrangements. This was bolstered by subsidiary objectives of encouraging and supporting voluntary maintenance arrangements and the operation of a statutory scheme.
CMEC is specifically charged with the promotion of raising awareness among parents of the importance of taking responsibility for and making arrangements for child maintenance. It also has a duty to provide information and guidance to parents for the purpose of helping to secure effective maintenance arrangements. Its role is to seek to ensure that all parents who live apart put in place effective arrangements to maintain their children, whether they do this privately, through the courts, or through the statutory service. This is much different from the old CSA, run directly by the DWP, which had only one function—the statutory maintenance service. The enhanced role with a new focus was considered at the time to be best undertaken by a new body, an NDPB, to be led by a commissioner for child maintenance. For certain very practical reasons, the NDPB was set up as a crown body. It was intended to operate at arm’s length from government and through its commissioning powers to be able to develop a high-quality and efficient service. Its board would be focused entirely on delivering a successful child maintenance system, not distracted at the top from the shared responsibilities which the very senior managers would have as an executive agency of the DWP.
The timeline for change was planned to span from the launch of CMEC in October 2008 until 2014, when the new unified child maintenance system is planned to be fully in place. Major steps have already been completed and these include the setting up of the options service, fulfilling the information and guidance obligation for all parents, the removal of the compulsion for parents with care claiming benefits to use the CSA, implementation from April 2010 of a full maintenance disregard, and the deployment of at least some the new debt and enforcement powers. However, CMEC has just completed its first full year of operation, and the forward programme still shows much to do. In fact, 2011 is the year in which the new basis of calculation is due for introduction with a gradual migration of old cases to the new system until in 2014 when there will be a closure of all existing CSA cases and a unified system in place.
CMEC's business plan for 2010-11 is clear that the current year will be a critical year for CMEC as it moves to the launch of the new system. The options service has, seemingly, made a good start. In its evidence to the DWP Select Committee, CMEC set out its focus on promoting the service to new and separating lone parents. It records how Jobcentre Plus and HMRC refer parents to the service when they claim relevant benefits and tax credits.
There can be little doubt that over the period of the operational improvement plan and since, performance of the CSA has improved despite continuing problems with the CS2 system. Currently, its performance under CMEC is the best it has ever been. The number of children benefiting from statutory maintenance has exceeded 850,000, with more than £1.14 million collected. Uncleared applications, a particular bugbear of the past, have declined by over 90 per cent to under 20,000. Telephony has improved out of all recognition. Running costs have reduced from £600 million to under £500 million a year. Nevertheless, the Select Committee report shows that more remains to be done in terms of collection of arrears and maintenance outcomes.
Unlike most of the other bodies included in this schedule, CMEC is not yet in steady state. It is part way through a programme which will finally lead to the clean break recommended by Sir David Henshaw. As the Work and Pensions Select Committee reported, it will be a challenging phase with the continuing problems with the CS2 IT programme, and the operation of three different maintenance systems through to 2014 when it was planned for there to finally be just one simplified statutory system. So in seeking to understand the decision for CMEC to become an agency of the DWP, I should be grateful if the Minister could answer the following questions.
First, what are the type of clear policy and decision-making responsibilities which Ministers consider they are precluded from taking at present in respect of child maintenance, which drives this approach? Secondly, is there any basic change in policy for the child maintenance system? Is it still planned to proceed with the new system, starting at 2011, with the gradual migration of the old and current systems? Is it envisaged that this process will be completed before the operation becomes an executive agency? Thirdly, will the full disregard for benefits remain and will this apply also for the purposes of the universal credit? Fourthly, given that CMEC is currently a crown NDPB, what will its changed status as an agency mean for the staff? Fifthly, given that the decision has already been taken for a transfer to an executive agency, is it considered that being run by DWP will bring operational efficiencies not available to CMEC? If so, what are these, and what evidence base is available to support such a conclusion?
Sixthly, what analysis has been undertaken of the costs involved in any transfer back to the DWP, including novation of supplier contracts, changes to enforcement notifications, et cetera? Are there any VAT ramifications of a transfer, and how does this differ from transfers from non-crown NDPB's? Seventhly, on what grounds is it considered that CMEC fails all the three tests set out by the Minister for the Cabinet Office in October: does it perform a technical function; do its activities require political impartiality; and does it act independently to establish facts? Eighthly, what is the future for the options service under any changed arrangements? Is it not right that considerable effort has gone into branding this service as being at arm’s length from government? What assessment has been undertaken of how parents would react to this becoming an executive agency of the DWP? Would any different requirements apply in respect of information sharing—say, income details of non-resident parents for the DWP, in contrast to CMEC as an NDPB?
Fundamentally, on what basis can we be reassured that the switch to an executive agency will neither disrupt the vital work of getting the new maintenance system up and running as quickly as possible? Moreover, will there continue to be a clear focus on improving child maintenance outcomes as an integral part of the challenge of tackling child poverty?
Our anxiety over this issue has been heightened by the most recent briefing note from the IFS covering child and working age poverty. Clearly, progress in improving child maintenance outcomes should contribute positively to reducing child poverty and any disruption to current arrangements need to be examined from this perspective, especially given the IFS report. This analysis makes grim reading. The conclusion is that the coalition Government’s reforms have no discernable impact on absolute and relative child poverty in 2011-12, but for 2012-13, the IFS estimates that the Government's reforms will increase relative poverty for children by 100,000 and absolute poverty by 200,000. For 2013-14, it is considered that the reforms will increase relative poverty by about 200,000 children and absolute poverty by 300,000 children. So much for the claim that the Government’s reforms will not have a measurable impact on child poverty. They clearly will. What role does the Minister see, therefore, for the child maintenance system in combating child poverty, especially given the shocking figures in the IFS report? I beg to move.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud)
My Lords, this seems to be a relatively short debate, which has shown evidence of the great knowledge and experience that the noble Lord, Lord McKenzie, has in this field. There was a debate recently on the Child Maintenance and Other Payments Act 2008, which informs a lot of his questions and points. However, I have not heard anything in those arguments that undermines the primary objective of the coalition Government to restore ministerial accountability for child maintenance.
The amendment would remove the Child Maintenance and Enforcement Commission from the list of bodies to which the Public Bodies Bill applies. The Government’s intention is to increase the accountability of Ministers for public services. This amendment would go directly against that intention.
The change of status for CMEC from a non-departmental public body to an executive agency within the DWP is driven by the coalition Government’s desire to have greater accountability for the hugely important issue of child maintenance. We feel that it is important to strengthen ministerial accountability when the Government are considering the role that the child maintenance system can play in their overall commitment to support shared parenting and promote parental responsibility.
We acknowledge that CMEC has built a stable base, following on from the success of the operational improvement plan to which the noble Lord referred. As it currently stands, however, with CMEC operating at arm’s length from the Government, the Government feel that it does not have the right level of responsibility and ministerial accountability. In order to regain that control, this change in status will make that happen. Removing the commission from Schedule 1 to the Bill would adversely impact on that intention.
There is a long and often painful history of poor performance within the child support system, as the noble Lord pointed out. A simple picture could suggest that the Child Support Agency was a failure and that only the introduction of the Child Maintenance and Enforcement Commission turned performance around. I would like to point out that that is not entirely the case. From 2006 to 2009, the Child Support Agency’s operational improvement plan significantly improved the performance of the administration of child maintenance. That was because of the activity taken forward by the Child Support Agency, at that point an agency of the Department for Work and Pensions. Responsibility for child support functions transferred to the Child Maintenance and Enforcement Commission in November 2008, near the end of the period covered by the operational improvement plan.
Since its formation in 2008, CMEC has taken these improvements much further. It has also been given a much broader remit than the CSA ever had. Most notably, it has developed a very effective information and support service, Child Maintenance Options, which has received much praise in dealing sensitively with separating and separated parents. Indeed, the noble Lord endorsed it a few minutes ago. The Government want to maintain and build on the progress that CMEC has already delivered. In response to the noble Lord’s question, that is one of the areas where we want to see further progress.
Let me be clear: this is not about scrapping the commission, nor is it about undoing the progress that the commission has made through the hard work and dedication of its people. I can confirm, in answer to the noble Lord’s question in this area, that we are looking to see the progress made and the plans that it has. We are looking closely at our own plans for improving the position in this area.
As the noble Lord said, however, the major reforms that were set out in the Child Maintenance and Other Payments Act 2008 are still to come. The improvements that the Child Maintenance and Enforcement Commission has made to date have been despite the inadequacies of its IT infrastructure. The legacy of past problems still casts a long shadow over the administration of the child maintenance system.
The Government believe that it is right—indeed, essential—that Ministers are directly accountable for the significant changes that still need to happen within the child maintenance system, not least the introduction of a new scheme for calculating child maintenance and the associated new IT platform. This Government, in including CMEC in the Bill, are clear that we must avoid reintroducing the well catalogued problems of the past.
To avoid destabilising the organisation at such a critical time, the new executive agency would essentially have the structure and functions of CMEC. The key difference, and the key purpose of this reform, would be the direct accountability and governance lines to Ministers. Many of the questions that the noble Lord raised are answered in that assurance about what will be happening.
I recognise that noble Lords have a keen interest in this matter, given their involvement in the redesign of the child maintenance system in 2006. I am referring, of course, to the noble Lords, Lord Hunt and Lord Kirkwood, who, alongside the noble Lord, Lord McKenzie, have proposed the amendment.
The independent review undertaken by Sir David Henshaw made some strong recommendations about the steps required to reform child maintenance. However, the review recognised that the issue of whether or not that should be administered in a body positioned at arm’s length from the Government was a finely balanced debate. The key argument on which the Government rest our position was the need for a clean break, as it was then called—I think that it was referred to today as some other kind of break, but anyway those are the essential grounds on which the argument was made, in response to the well publicised problems that the CSA had been enduring.
I reiterate that this reform is not about dismantling the Child Maintenance and Enforcement Commission in its current form. Neither is it about jeopardising the performance improvements that have been made in recent years. It is fundamentally about restoring ministerial leadership and accountability at a time when child maintenance reforms are reaching a critical stage.
I shall pick up one or two of the questions that I have not already dealt with. The implications for staff are relatively few, given the nature of the transfer. What we are trying to do in the universal credit, in terms of information, may become highly relevant here. We still need to look at that; obviously, it is at a very early stage.
We have looked at costs overall as part of SR10. We are determined that, in undertaking the transfer, we do not divert attention away from the need to get systems up and running. Clearly, this area is vital in tackling child poverty. Family breakdown is one of the main drivers of child poverty. We are determined to move forward on this and maintain targets. As the noble Lord will know, the introduction of the universal credit will have a powerful impact on child poverty. That is not yet included in the IFS calculations, although I imagine that it is working on that. We will be looking closely at other ways of ensuring that we stem the problems arising from family breakdown. Given all this, I ask the noble Lord to withdraw his amendment.
Lord McKenzie of Luton
My Lords, I am most grateful to the Minister for that very full reply. I have no intention of pressing this amendment, as I tabled it in order to seek information. I am comforted by what he said about the progress and planned progress of the child maintenance system and that it is still the objective to try to introduce the new basis of calculation next year and the systems that will support that. I understand that it is intended that all the CSA cases will eventually migrate to the new system by 2014.
However, I am still a little mystified by this issue of ministerial accountability, as there is accountability to Parliament through the Secretary of State. I am a little curious as to what difference the measure would make for Ministers in practice, as for most, if not all, NDPBs there is a way for Ministers to engage and influence. A framework agreement defines not only the financing of NDPBs but their governance arrangements and their relationship with Ministers, so the argument that the Government are switching just to achieve that purpose is a little thin.
I wish to make it clear that I certainly do not contend that improvements came about only once CMEC came into being. Improvements were made under the operational improvement plan before CMEC came into being. I certainly assert—I think that the Minister agreed with this—that CMEC has carried that on and has made continuing progress, although matters still remain to be resolved. I am comforted by the fact that this will not be done in a way that would disrupt the progress that has been made and disrupt the introduction of the new systems.
Baroness Hollis of Heigham
Before my noble friend decides what to do with his amendment, as he may be drawing his remarks to a close, I wish to ask the Minister a question through him, so to speak. Do I understand that what the Minister is doing is maintaining the policy drive of CMEC while reinventing the structure of the old CSA? As he may know from his briefing, that structure was that there was a chief executive, who reported quarterly or at six-month intervals to the Minister, supported by an advisory board and shadowed, so to speak, by a policy directorate within the department—a grade 5 and above that a grade 3—who would, so to speak, act as the interface between the policy development and the operational work done by the CSA, headed by its chief executive. Is that the proposed structure that the Minister seeks to reinvent or has he a different version in mind? It would be helpful to know how he thinks the organisation will function at the top level and what independent advice—research advice and expertise—he can expect to draw on, which obviously CMEC has taken further and developed in a far more effective way than under the old CSA.
Lord McKenzie of Luton
That is probably a belated intervention on the Minister if he wishes to answer it. One of my questions concerned what would happen to the board and whether and how it would be reconstituted.
Lord Knight of Weymouth
My Lords, specifically on that question on the board, if the Minister is minded to comment further, it would be interesting to know, if the board is to continue, what sort of remuneration it would have for what purpose, if the Minister is now to be much more accountable and have that proper oversight.
Lord McKenzie of Luton
If the Minister wants to pick up those points now, perhaps I can come back to my points later.
Lord Freud
We want to move to the new arrangements as soon as we can. The details of the arrangements for the agency will be elaborated on, but our intention is basically to leave the CMEC structure unaffected. The accountability point is much more political. I imagine that it would delight any Opposition, and slightly worry any Minister, to be directly responsible for what this very important agency does. That is the key difference. There is direct accountability for what is happening across these Dispatch Boxes and, of course, those in another place. We think that that is right, given the very many millions of parents and children affected. The figure is not quite 10 million on my count but it is getting on for that. For that reason, it is vital that there is direct political responsibility.
Baroness Anelay of St Johns
I wonder if I might assist the Committee. We are in Committee and we try to enable as much discussion and latitude as possible. I appreciate that the noble Lord, Lord Knight, may not be aware that the procedure is that, once the Minister has concluded his answer, and then the person moving the amendment seeks to sum up and decide what to do with the amendment, the Minister should not then be subject to further questioning. Naturally, the Minister has wanted to assist the Committee as much as possible but the noble Lord has trespassed a little far on our usual procedures. I invite the Minister not to comment further. However, I am sure that, like all Ministers—as the noble Baroness, Lady Hollis of Heigham, used to do when she was a Minister—he will be pleased to consider constructive discussions between now and Report.
Lord McKenzie of Luton
I am grateful to the Minister for participating in the additional exchanges. However, we still need clarity over what the structure will look like in the future and what in practice enhanced ministerial responsibility and accountability will come from that. Having heard the Minister’s comments, I cannot see a great difference from current practice.
I return to the options service, which was not a responsibility of the DWP or the CSA before the creation of the commission. It has been heavily, and properly, marketed as offering support for parents and information and guidance that is independent of government. I have not heard the Minister address my next point directly, but it seems to me that we need to think through the consequences of putting at risk the status that that service has achieved, where parents with care and non-resident parents can feel that they can genuinely and confidentially engage with the service and get impartial advice. I remember that during the passage of the Bill we had interesting discussions about the obligations on that service in terms of reporting its findings if it became aware of information that was inconsistent with other information in the system on benefits and income. One of my questions is whether that will change with the service no longer being conducted by an NDPB but directly by an executive agency of the DWP. It would be good to have clarity on those sorts of issues.
We have probably had a useful starting exchange on this. We would now like to read the record and reflect. If there is an opportunity, perhaps we can get some clarity on these issues even before we reach Report stage. My colleagues and I would greatly appreciate that. For the time being, I beg leave to withdraw the amendment.