Broadcasting: Children’s Television

Lord Parkinson of Whitley Bay Excerpts

Thursday 2nd February 2023 Lords Chamber

[Baroness Benjamin (LD)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and declare an interest as per the register.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, the Government recognise the unique social, educational and economic importance of children’s television, and that is why we have put in place a range of measures to support it. The ongoing animation and children’s tax relief schemes have supported the production of over 840 programmes. Working with the noble Baroness, we introduced powers for Ofcom to monitor and set criteria for the provision of children’s television. Children’s television was chosen to pilot contestable funding, which has supported more than 280 hours of new content.

[Baroness Benjamin (LD)]

I thank the Minister for his Answer. However, since the early closure of the Young Audiences Content Fund, which offered up to 50% of programme budgets, the amount of newly made UK commercial children’s content continues to decrease. The children’s television production sector faces market failure and a huge challenge. Without funding, television programmes that reflect British children’s lives could disappear from the nation’s screens, and that would be a tragedy. Pact is proposing new tax breaks of 40% to help keep that vitally important sector thriving. So how are the Government living up to their responsibility to ensure that the nation’s children are accessing high-quality British children’s programming? Will the tax breaks proposed by Pact be supported to ensure that we have more UK commercial public service broadcasting of children’s content?

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[Lord Parkinson of Whitley Bay (Con)]

The Young Audiences Content Fund was always designed as a three-year pilot. Now that it is over, it is right that we assess the contestable funding model as a whole to understand how it can be used to help. Any further investment of public funding will need to be considered against that and future broadcasting needs, but we are supporting children’s television to ensure that future generations can benefit from it just as much as past ones have.

[Baroness Featherstone (LD)]

My Lords, what steps are the Government taking to ensure that the children’s television production sector is internationally competitive?

[Lord Parkinson of Whitley Bay (Con)]

With our wider support for the broadcasting system set out in the White Paper, we are ensuring that all our public service broadcasters can compete with the new streaming platforms we see entering the market. The media Bill will deliver on some of the proposals put forward in the White Paper.

[Lord Blunkett (Lab)]

My Lords, perhaps the Minister could reflect on the fact that television companies are always bemoaning losing young people from their audience. Would it not be sensible to invest in children’s television at the moment when young people are prepared to engage with their families by sitting on the settee, rather than looking at their devices and losing their sight in later life?

[Lord Parkinson of Whitley Bay (Con)]

We have indeed been investing: the Young Audiences Content Fund invested a total of £40.5 million directly into brand new children’s television content for exactly the sorts of reasons the noble Lord outlined.

[Baroness McIntosh of Hudnall (Lab)]

My Lords, the noble Baroness, Lady Benjamin, rightly pointed out the danger now of the huge oversupply of content—including perfectly reasonable content—from elsewhere, mainly America, particularly for young children. Can the Minister address what that is doing to the skill base in this country? There are lots of people who have, and need, very particular skills to create content for young children, and they must be feeling pretty dismal at the moment. Does the Minister agree?

[Lord Parkinson of Whitley Bay (Con)]

The noble Baroness is right, and the Government are clear that we want to see distinctively British content, so that young people growing up in this country can see it on television and on their tablets, or however they view it. Through our creative industries sector vision, the department is working to address skills gaps right across the creative industries in order to ensure that we can continue to make world-leading content.

[Lord Bassam of Brighton (Lab)]

My Lords, we of course echo the concerns raised by the noble Baroness, Lady Benjamin. Public service broadcasting faces a number of challenges, including uncertainty over the status of the long-awaited media Bill, which was parked while the Government considered whether to U-turn on privatising Channel 4. Now that decision has been made, can the Minister confirm when noble Lords can expect some breaking news? If not, can he at least say whether the Leader of the House was correct when he stated on 12 January that this crucial legislation will be published only in draft form?

[Lord Parkinson of Whitley Bay (Con)]

The media Bill will reform decades-old law to boost the growth potential of our world-leading public service broadcasters, replacing the outdated set of 14 overlapping purposes and objectives. We have set out those reforms in our White Paper and the Government will legislate when parliamentary time allows.

[Lord Kamall (Con)]

My Lords, as my noble friend knows, a number of commercial children’s channels are already available. What concerns does his department have about those, and what criteria are they not meeting that it believes public service broadcasters would meet?

[Lord Parkinson of Whitley Bay (Con)]

Commercial broadcasters do indeed provide excellent content, but public service broadcasters play a unique role in ensuring that underserved groups are catered for. There is not always the same commercial potential in children’s television programming, which is why it is right that we have particular areas of work to focus on that.

[Lord Leong (Lab)]

My Lords, as we all know, BBC World News is banned in China. Are there plans to ban Chinese news channels and propaganda channels in the United Kingdom?

[Lord Parkinson of Whitley Bay (Con)]

Sanctions, of course, are always kept under review, but by their nature, the Government cannot discuss them until they are made.

CCTV

Lord Parkinson of Whitley Bay Excerpts

Thursday 2nd February 2023 Lords Chamber

[Lord Strathcarron]

To ask His Majesty’s Government what plans they have to commission an independent review of the (1) scale, (2) capabilities, (3) ethics, and (4) impact on rights, of CCTV in the United Kingdom.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, His Majesty’s Government have no plans to commission an independent review of the use of closed circuit television. The Government support the appropriate use of technologies such as CCTV to tackle crime and give the public greater confidence about using our public spaces, provided that its use is lawful, transparent and fair and in accordance with relevant guidelines.

[Lord Strathcarron (Con)]

I thank my noble friend the Minister for the reply. The noble Lord, Lord Alton of Liverpool, has already highlighted to the House the dangers posed by Chinese state-owned facial recognition companies Hikvision and Dahua. Is the Minister aware that this technology is now openly available on a far more intrusive smartphone level from other Chinese state-owned companies such as PimEyes? Is he also aware of the very real threats this will pose—and not just to politically exposed persons such as your Lordships? Absolutely anybody can be tracked and traced anywhere at any time. It is not hyperbolic to say that, if left unchecked, these applications will entirely alter our concept of privacy and be open sesame to snoopers, stalkers, blackmailers, cybercriminals and bad actors of every kind.

[Lord Parkinson of Whitley Bay (Con)]

All organisations in the UK that possess personal data have to comply with the requirements of our data protection legislation. The Information Commissioner’s Office is our independent regulator for data protection and is responsible for providing advice and guidance on compliance with the law. The ICO is currently considering whether PimEyes’ practices may raise data protection concerns. I hope that my noble friend will understand that it is not appropriate for me to comment on an ongoing ICO investigation.

[Baroness Chakrabarti (Lab)]

My Lords, does the Minister understand that these mostly Chinese smart cameras have the triple vices of being incredibly intrusive, incredibly unreliable and racially discriminatory? In the light of that, would he perhaps think again about the question from the noble Lord, Lord Strathcarron, and perhaps give a rather more urgent and pertinent response?

[Lord Parkinson of Whitley Bay (Con)]

It is an urgent matter and it is being looked at currently by the ICO. It would be wrong for me to comment on that ongoing investigation, but it is being dealt with swiftly. We are also taking urgent action across government, and my right honourable friend the Chancellor of the Duchy of Lancaster set out in a Statement on 24 November the action that we are taking with relation to Chinese equipment in public sites.

[Lord German (LD)]

My Lords, the Surveillance Camera Commissioner recently reported on a survey of police forces in England and Wales. Despite the commissioner’s strong belief that surveillance technology had to be used in a way that maintains the trust and confidence of our communities, the commissioner found that there is no universal approach to due diligence across the police forces of this country. Does the Minister agree that a universal approach is necessary and sensible? If so, how will the Government achieve it?

[Lord Parkinson of Whitley Bay (Con)]

All police forces are compelled to follow data protection legislation, which is regulated by the Information Commissioner’s Office. They must also comply with human rights and equalities legislation, which is regulated by the Equality and Human Rights Commission. So there is a universal application of those across all forces.

[The Lord Bishop of Manchester]

My Lords, I declare my interest as chair of the Greater Manchester Police independent ethics committee. Can the Minister tell us what the Government’s assessment is of the use of CCTV in conjunction with live facial recognition technology by police across the UK, and what legal safeguards are in place to ensure that fundamental rights are upheld?

[Lord Parkinson of Whitley Bay (Con)]

Polls show that there is public support and, indeed, an expectation on the police to use technology such as this, particularly from victims and their families, to prevent, detect and investigate crime. There is a comprehensive legal framework covering its use. The noble Baroness, Lady Chakrabarti, mentioned the potential for bias against people from ethnic minority backgrounds. When using it, police must comply with the public sector equality duty, and a human operator is also important in this regard.

[Lord Reid of Cardowan (Lab)]

My Lords, can I first confess that I encouraged the spread of CCTV, because I knew of the demand that comes from potential victims? However, that was before smart CCTV and facial recognition. As the right reverend Prelate said, they introduce a major new dimension of potential intrusion into privacy. I accept that the ICO is reviewing this, but I remind the Minister that ultimately this will be a political decision, taken in the context of the extensive surveillance by the Chinese Government of their own and other people. Will he give it the utmost priority when the ICO has reported?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right to point to the importance of CCTV in the detection and prosecution of crime. Of course, as technology improves, so does the reliability and its use in criminal investigations—but so do the risks. That is why the Information Commissioner’s Office plays its important role in monitoring it. We will continue to evaluate the continued use of technologies such as live facial recognition and consider the need for further guidance, should that be needed.

[Lord Bellingham (Con)]

Could my noble friend the Minister expound further on that last reply and tell the House how many very serious crimes last year, including murder and GBH, were solved as a result of CCTV?

[Lord Parkinson of Whitley Bay (Con)]

I do not have those figures to hand, but I imagine that they are substantial, and I shall find out and write to the noble Lord.

[Lord Bassam of Brighton (Lab)]

My Lords, there is an opportunity here for the Government to get something right. The Product Security and Telecommunications Infrastructure Bill received Royal Assent, as the Minister knows, in early December. Its security provisions are designed to improve the security of smart products—a category that includes CCTV doorbells. Is the Minister able to provide some updates on commencement of Part 1 of the Act, or on the laying of relevant regulations and guidance, given that this will be the subject of some intense debate—and given, too, the potential privacy issues that will arise if security vulnerabilities in personal CCTV products can be exploited, as we now know, by bad actors?

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[Lord Parkinson of Whitley Bay (Con)]

I cannot provide an update on dates by which those things will be commenced, but the noble Lord is right to point to the legislation that we have taken through, which grapples with this important topic, the scrutiny given in Parliament and the change that it will make to the regulation of these sensitive technologies.

[Lord Watson of Wyre Forest (Lab)]

My Lords, is it an appropriate use of CCTV facial recognition technology to identify children entitled to free school meals in our schools?

[Lord Parkinson of Whitley Bay (Con)]

I not aware that that is being done, but that is a matter for the Department for Education. I will refer the noble Lord’s point to the department.

[Baroness Fox of Buckley (Non-Afl)]

My Lords, just to clarify the answers to some of the questions, I think all of us can understand that using CCTV to catch criminals and help victims is something that has become the norm. But the Minister has been asked whether the new technology changes things. Secondly, is there not a danger of a creep towards the surveillance of innocent people, which would not be something that the Government would endorse or condone?

[Lord Parkinson of Whitley Bay (Con)]

There is a hugely important role for CCTV in providing assurance for people that our streets are safe, that our public spaces are being monitored and that, if crimes are committed, the people who commit them will be captured and brought to justice. That is a great reassurance to people as they go about their lawful business.

[Lord Hogan-Howe (CB)]

My Lords, I agree with what the noble Lord, Lord Reid, said and what the original questioner said, which is that this is probably not a bad time to think seriously about the application of facial recognition with CCTV. Does the Minister agree that it is not only about crime? It is also an opportunity to find missing people and sometimes, on places such as the Tube and in other places, people who have fallen ill. CCTV has many benefits, but I agree that it needs proper control and accountability.

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right and highlights another important potential use of this technology. It is right that it is monitored. The ICO has published an opinion on the use of live facial recognition by law enforcement agencies, as well as guidance on the processing of biometric data. We will continue to evaluate that and continue to consider whether further guidance is needed.

[Lord Harris of Haringey (Lab)]

My Lords, could the Minister just confirm that he saying—I think he is, but it would be helpful if it was clear—that he and the Government accept the huge value for public protection and public safety of the ability of law enforcement to use CCTV and facial recognition techniques? Does he also recognise that the fact that this technology is now out there and is increasingly used by non-law enforcement agencies, by the private sector in all sorts of spaces, is an area that requires at least equivalent, if not stronger, supervision and monitoring?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord makes an important point. I think people would find it very disappointing if commercial organisations were able to use the technology in a way that the police and law enforcement agencies could not, to bring people to justice. We do support its use, but only with careful monitoring. The ICO has an important role to play in that.

Football: Illegal Entry to Matches

Lord Parkinson of Whitley Bay Excerpts

Wednesday 1st February 2023 Lords Chamber

[Lord Bassam of Brighton]

To ask His Majesty’s Government what consideration they have given to introducing new criminal sanctions in England and Wales for those tailgating to gain illegal entry at football matches; and what other measures they are planning to take further to The Baroness Casey Review: An independent Review of events surrounding the UEFA Euro 2020 Final ‘Euro Sunday’ at Wembley, published in December 2021.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, the Government keep tailgating under review. Any disorder associated with attempting to gain unauthorised entry may be a criminal offence, with a football banning order imposed following conviction. The safety of spectators at sporting events is of the highest importance. We continue to work closely with all the relevant authorities to ensure that football fans can continue to enjoy the sport safely. The review by the noble Baroness, Lady Casey of Blackstock, was commissioned by and reported to the English Football Association. The Government were referred to in four of the recommendations. Our approach to these is outlined in evidence to the DCMS Select Committee, a copy of which can be found in the Library.

[Lord Bassam of Brighton (Lab)]

My Lords, I am conscious that I have asked this Question before and also that the Minister has responded before. Would it not be of value to consider making this an offence, to deal with the issue of tailgating, as the review from the noble Baroness, Lady Casey, suggested? This is against the background of a worrying increase in disorder at football grounds this season, evidenced by the recent increase in pitch invasions. We can never be complacent about disorder at football games, and we should never be complacent about crowd safety.

[Lord Parkinson of Whitley Bay (Con)]

Absolutely—and we are not. As I have explained to the noble Lord before, we have taken action to implement a series of changes to the football banning order legislation with which he was associated when he was in government to help ensure safety at football matches. That included adding football related online hate crime to the list of offences, amending the threshold for the imposition of a banning order, extending the legislation to the women’s domestic game and adding football-related class A drug crimes to the list of offences. We continue to work with the police and football bodies to review disorder and consider whether any further action is necessary.

[Baroness Berridge (Con)]

My Lords, in relation to tailgating, could my noble friend the Minister outline whether the Government are considering making this an offence and making it slightly broader? This happens a lot on the Tube. Particularly as a woman, being tailgated through a barrier by somebody trying to come in behind you means you virtually are assaulted. TfL’s policy is not to do anything, probably because it is not an offence. Could the Minister review this to see whether it should be made an offence not just in football but on the Tube?

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is right to point to the impact on people being followed through ticket barriers. Fare evasion is a criminal offence and Transport for London publishes its revenue enforcement and prosecutions policy. If convicted, people face a criminal record and a fine of up to £1,000, as well as compensation for the fares they have avoided, a victim surcharge and prosecution costs—so this is something that should not be done.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, we have a remote contribution from the noble Baroness, Lady Brinton.

[Baroness Brinton (LD) [V]]

My Lords, one of the most shocking parts of the review from the noble Baroness, Lady Casey, was, yet again, the lack of information sharing and joined-up working between key bodies. That has been an issue at a number of serious and tragic events, including the Manchester Arena bombing. What are the Government doing to ensure that all relevant responsible bodies—whether statutory, voluntary or, as in the case of football, business—including the police, share information before, during and after events to keep people safe and to learn lessons after each event?

[Lord Parkinson of Whitley Bay (Con)]

The noble Baroness is right that the report from the noble Baroness, Lady Casey, had recommendations for a number of parties, and the Government have indeed spoken to the other parties for whom the recommendations were made. We will not respond on behalf of others, but we are working with them, not least the Sports Grounds Safety Authority, which we commissioned to conduct, and act on, research related to stewarding capacity in the events sector.

[Baroness Armstrong of Hill Top (Lab)]

My Lords, given that we know that there are increasing problems at football matches, what are the Government going to do to make sure that they address those issues now? We have an outstanding review of football governance, et cetera—to which the Government have not responded and on which they have not come out with their proposals—as well as the review from the noble Baroness, Lady Casey, on safety and security. We also know, if nothing else from yesterday’s mind-boggling figures for money spent in the transfer market, that there is a lot of money awash in the Premier League. In their response to the report of the Minister’s honourable friend in the other House, Tracey Crouch, perhaps they can look at how football itself improves stewardship, which was also one of the recommendations in the noble Baroness’s report. Will they make sure that they properly look after fans on a Saturday, on a Tuesday, on a Wednesday or whenever they go, by spending their money properly?

[Lord Parkinson of Whitley Bay (Con)]

The noble Baroness is right that there is action for everybody throughout football to ensure that people can enjoy the game safely. We should not overstate it; the vast majority of people who go to matches do so in a law-abiding way and help people do that. There is a minority of people who want to spoil that. As I have said, we have taken action to toughen football banning orders. The football authorities themselves have taken action, with the FA, the Premier League and the English Football League announcing tougher sanctions, including automatic reporting to the police of anyone participating in anti-social or criminal behaviour. On the fan-led review commissioned by my honourable friend Tracey Crouch, we will be coming forward in the coming weeks with our response.

[Lord Birt (CB)]

My Lords, it was an absolute miracle that there was no major loss of life at last year’s Champions League final at the Stade de France. It was a terrifying experience for many Liverpool fans who attended, of whom I was one. Four English teams have now reached the last 16 in this year’s Champions League, so one or more may very well reach the final. It is a matter of regret that UEFA’s own inquiry into last year’s events has yet to report. None the less, will the Minister undertake to approach UEFA to seek reassurance that all the many glaring operational failures seen in Paris will not be repeated at this year’s final in Istanbul?

[Lord Parkinson of Whitley Bay (Con)]

I am grateful to the noble Lord, who has provided some insights from his own experience of attending that match. We were all appalled to see the terrifying and potentially dangerous scenes that occurred there. The French Senate published its report on the final, which rejected the initial response from French Ministers to blame Liverpool FC fans. UEFA’s inquiry is ongoing, but a full report is due to be published soon. We are in close contact, at ministerial and official levels, with both the French Government and UEFA to ensure that their investigations align with experience and point to future matches, as the noble Lord suggested.

[Lord McLoughlin (Con)]

My Lords, a lot of support was given to the report from my honourable friend Tracey Crouch in moving her suggestions, and the overall governance of football, further forward. What progress are the Government making and when can we expect an announcement?

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[Lord Parkinson of Whitley Bay (Con)]

The Government published their response to the recommendations made by the fan-led review in April last year. We remain committed to publishing a White Paper following up on that, which we will do in the coming weeks.

[Lord Addington (LD)]

My Lords, to return to the original Question, tailgating here or anywhere else is presumably already an offence. What briefing is given to both stewards, who should now be better trained as a result of this, and police, who are there to take action when it takes place? Also, are we looking at one of the other major areas in the Casey report—interference in the disabled access entrances, which were stormed at this event?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is right: disorder associated with attempting to gain unauthorised entry may indeed be a criminal offence, and criminal punishment can follow. The Sports Grounds Safety Authority commissioned a review of stewarding, following the noble Baroness’s report, which looked at these issues. It is now working with football’s governing bodies to follow up on the points that were identified there. The noble Lord is right to draw attention to the way that disabled fans were particularly affected by people trying to follow them into matches—that is deplorable.

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

My Lords, I declare an interest as one of over 8,000 members of the Foundation of Hearts, which owns the largest fan-owned club in the whole of the United Kingdom. I have also had the great responsibility of writing a report for the Council of Europe on all the aspects of football that were raised by my noble friend Lady Armstrong. I know that, with his many responsibilities, the Minister may not have had an opportunity yet to read my report. Can I ask him to do so and write to me with responses from the Government—or I can table another Question to allow him to answer?

[Lord Parkinson of Whitley Bay (Con)]

I suspect the noble Lord might table another Question even when I have. But I will gladly read his report and ensure that my honourable friend the sports Minister, Stuart Andrew, does so as well, and one of us will write to him.

Trade (Mobile Roaming) Regulations 2023

Lord Parkinson of Whitley Bay Excerpts

Wednesday 1st February 2023 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the draft Regulations laid before the House on 15 December 2022 be approved.

Relevant document: 25th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 31 January.

Motion agreed.

Online Safety Bill

Lord Parkinson of Whitley Bay Excerpts

Wednesday 1st February 2023 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the bill be committed to a Committee of the Whole House, and that it be an instruction to the Committee of the Whole House that they consider the bill in the following order:

Clauses 1 to 3, Schedules 1 and 2, Clauses 4 to 31, Schedule 3, Clauses 32 to 37, Schedule 4, Clauses 38 to 53, Schedules 5 to 7, Clauses 54 to 68, Schedule 8, Clauses 69 to 71, Schedule 9, Clauses 72 to 80, Schedule 10, Clauses 81 to 85, Schedule 11, Clauses 86 to 97, Schedule 12, Clauses 98 to 130, Schedule 13, Clauses 131 to 169, Schedule 14, Clauses 170 to 174, Schedule 15, Clauses 175 to 185, Schedule 16, Clauses 186 to 187, Schedule 17, Clauses 188 to 212, Title.

Motion agreed.

Online Safety Bill

Lord Parkinson of Whitley Bay Excerpts

2nd reading
Wednesday 1st February 2023 Lords Chamber

Moved by

[Lord Parkinson of Whitley Bay]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I am very glad to be here to move the Second Reading of the Online Safety Bill. I know that this is a moment which has been long awaited in your Lordships’ House and noble Lords from across the House share the Government’s determination to make the online realm safer.

That is what this Bill seeks to do. As it stands, over three quarters of adults in this country express a concern about going online; similarly, the number of parents who feel the benefits outweigh the risks of their children being online has decreased rather than increased in recent years, falling from two-thirds in 2015 to barely over half in 2019. This is a terrible indictment of a means through which people of all ages are living increasing proportions of their lives, and it must change.

All of us have heard the horrific stories of children who have been exposed to dangerous and deeply harmful content online, and the tragic consequences of such experiences both for them and their families. I am very grateful to the noble Baroness, Lady Kidron, who arranged for a number of noble Lords, including me, to see some of the material which was pushed relentlessly at Molly Russell whose family have campaigned bravely and tirelessly to ensure that what happened to their daughter cannot happen to other young people. It is with that in mind, at the very outset of our scrutiny of this Bill, that I would like to express my gratitude to all those families who continue to fight for change and a safer, healthier online realm. Their work has been central to the development of this Bill. I am confident that, through it, the Government’s manifesto commitment to make the UK the safest place in the world to be online will be delivered.

This legislation establishes a regulatory regime which has safety at its heart. It is intended to change the mindset of technology companies so that they are forced to consider safety and risk mitigation when they begin to design their products, rather than as an afterthought.

All companies in scope will be required to tackle criminal content and activity online. If it is illegal offline; it is illegal online. All in-scope platforms and search services will need to consider in risk assessments the likelihood of illegal content or activity taking place on their site and put in place proportionate systems and processes to mitigate those risks. Companies will also have to take proactive measures against priority offences. This means platforms will be required to take proportionate steps to prevent people from encountering such content.

Not only that, but platforms will also need to mitigate the risk of the platform being used to facilitate or commit such an offence. Priority offences include, inter alia: terrorist material, child sexual abuse and exploitation, so-called revenge pornography and material encouraging or assisting suicide. In practice, this means that all in-scope platforms will have to remove this material quickly and will not be allowed to promote it in their algorithms.

Furthermore, for non-priority illegal content, platforms must have effective systems in place for its swift removal once this content has been flagged to them. Gone will be the days of lengthy and arduous complaints processes and platforms feigning ignorance of such content. They can and will be held to account.

As I have previously mentioned, the safety of children is of paramount importance in this Bill. While all users will be protected from illegal material, some types of legal content and activity are not suitable for children and can have a deeply damaging impact on their mental health and their developing sense of the world around them.

All in-scope services which are likely to be accessed by children will therefore be required to assess the risks to children on their service and put in place safety measures to protect child users from harmful and age inappropriate content. This includes content such as that promoting suicide, self-harm or eating disorders which does not meet a criminal threshold; pornography; and damaging behaviour such as bullying.

The Bill will require providers specifically to consider a number of risk factors as part of their risk assessments. These factors include how functionalities such as algorithms could affect children’s exposure to content harmful to children on their service, as well as children’s use of higher risk features on the service such as livestreaming or private messaging. Providers will need to take robust steps to mitigate and effectively manage any risks identified.

Companies will need to use measures such as age verification to prevent children from accessing content which poses the highest risk of harm to them, such as online pornography. Ofcom will be able to set out its expectations about the use of age assurance solutions, including age verification tools, through guidance. This guidance will also be able to refer to relevant standards. The Bill also now makes it clear that providers may need to use age assurance to identify the age of their users to meet the necessary child safety duties and effectively enforce age restrictions on their service.

The Government will set out in secondary legislation the priority categories of content harmful to children so that all companies are clear on what they need to protect children from. Our intention is to have the regime in place as soon as possible after Royal Assent, while ensuring the necessary preparations are completed effectively and service providers understand clearly what is expected. We are working closely with Ofcom and I will keep noble Lords appraised.

My ministerial colleagues in another place worked hard to strengthen these provisions and made commitments to introduce further provisions in your Lordships’ House. With regard to increased protections for children specifically, the Government will bring forward amendments at Committee stage to name the Children’s Commissioner for England as a statutory consultee for Ofcom when it is preparing a code of practice, ensuring that the experience of children and young people is accounted for during implementation.

We will also bring forward amendments to specify that category 1 companies—the largest and most risky platforms—will be required to publish a summary of their risk assessments for both illegal content and material that is harmful to children. This will increase transparency about illegal and harmful content on in-scope services and ensure that Ofcom can do its job regulating effectively.

We recognise the great suffering experienced by many families linked to children’s exposure to harmful content and the importance of this Bill in ending that. We must learn from the horrific events from the past to secure a safe future for children online.

We also understand that, unfortunately, people of any age may experience online abuse. For many adults, the internet is a positive source of entertainment and information and a way to connect with others; for some, however, it can be an arena for awful abuse. The Bill will therefore offer adult users a triple shield of protection when online, striking the right balance between protecting the right of adult users to access legal content freely, and empowering adults with the information and tools to manage their own online experience.

First, as I have outlined, all social media firms and search services will need to tackle illegal content and activity on their sites. Secondly, the Bill will require category 1 services to set clear terms of service regarding the user-generated content they prohibit and/or restrict access to, and to enforce those terms of service effectively. All the major social media platforms such as Meta, Twitter and TikTok say that they ban abuse and harassment online. They all say they ban the promotion of violence and violent threats, yet this content is still easily visible on those sites. People sign up to these platforms expecting one environment, and are presented with something completely different. This must stop.

As well as ensuring the platforms have proper systems to remove banned content, the Bill will also put an end to services arbitrarily removing legal content. The largest platform category 1 services must ensure that they remove or restrict access to content or ban or suspend users only where that is expressly allowed in their terms of service, or where they otherwise have a legal obligation to do so.

This Bill will make sure that adults have the information they need to make informed decisions about the sites they visit, and that platforms are held to their promises to users. Ofcom will have the power to hold platforms to their terms of service, creating a safer and more transparent environment for all.

Thirdly, category 1 services will have a duty to provide adults with tools they can use to reduce the likelihood that they encounter certain categories of content, if they so choose, or to alert them to the nature of that content. This includes content which encourages, promotes, or provides instructions for suicide, self-harm or eating disorders. People will also have the ability to filter out content from unverified users if they so wish. This Bill will mean that adult users will be empowered to make more informed choices about what services they use, and to have greater control over whom and what they engage with online.

It is impossible to speak about the aspects of the Bill which protect adults without, of course, mentioning freedom of expression. The Bill needs to strike a careful balance between protecting users online, while maintaining adults’ ability to have robust—even uncomfortable or unpleasant—conversations within the law if they so choose. Freedom of expression within the law is fundamental to our democracy, and it would not be right for the Government to interfere with what legal speech is permitted on private platforms. Instead, we have developed an approach based on choice and transparency for adult users, bounded by major platforms’ clear commercial incentives to provide a positive experience for their users.

Of course, we cannot have robust debate without being accurately informed of the current global and national landscape. That is why the Bill includes particular protections for recognised news publishers, content of democratic importance, and journalistic content. We have been clear that sanctioned news outlets such as RT, formerly Russia Today, must not benefit from these protections. We will therefore bring forward an amendment in your Lordships’ House explicitly to exclude entities subject to sanctions from the definition of a recognised news publisher.

Alongside the safety duties for children and the empowerment tools for adults, platforms must also have effective reporting and redress mechanisms in place. They will need to provide accessible and effective mechanisms for users to report content which is illegal or harmful, or where it breaches terms and conditions. Users will need to be given access to effective mechanisms to complain if content is removed without good reason.

The Bill will place a duty on platforms to ensure that those reporting mechanisms are backed up by timely and appropriate redress mechanisms. Currently, internet users often do not bother to report harmful content they encounter online, because they do not feel that their reports will be followed up. That too must change. If content has been unfairly removed, it should be reinstated. If content should not have been on the site in question, it should be taken down. If a complaint is not upheld, the reasons should be made clear to the person who made the report.

There have been calls—including from the noble Lord, Lord Stevenson of Balmacara, with whom I look forward to working constructively, as we have done heretofore—to use the Bill to create an online safety ombudsman. We will listen to all suggestions put forward to improve the Bill and the regime it ushers in with an open mind, but as he knows from our discussions, of this suggestion we are presently unconvinced. Ombudsman services in other sectors are expensive, often underused and primarily relate to complaints which result in financial compensation. We find it difficult to envisage how an ombudsman service could function in this area, where user complaints are likely to be complex and, in many cases, do not have the impetus of financial compensation behind them. Instead, the Bill ensures that, where providers’ user-reporting and redress mechanisms are not sufficient, Ofcom will have the power to take enforcement action and require the provider to improve its user-redress provisions to meet the standard required of them. I look forward to probing elements of the Bill such as this in Committee.

This regulatory framework could not be effective if Ofcom, as the independent regulator, did not have a robust suite of powers to take enforcement actions against companies which do not comply with their new duties, and if it failed to take the appropriate steps to protect people from harm. I believe the chairman of Ofcom, the noble Lord, Lord Grade of Yarmouth, is in his place. I am glad that he has been and will be following our debates on this important matter.

Through the Bill, Ofcom will have wide-ranging information-gathering powers to request any information from companies which is relevant to its safety functions. Where necessary, it will be able to ask a suitably skilled person to undertake a report on a company’s activity—for example, on its use of algorithms. If Ofcom decides to take enforcement action, it can require companies to take specific steps to come back into compliance.

Ofcom will also have the power to impose substantial fines of up to £18 million, or 10% of annual qualifying worldwide revenue, whichever is higher. For the biggest technology companies, this could easily amount to billions of pounds. These are significant measures, and we have heard directly from companies that are already changing their safety procedures to ensure they comply with these regulations.

If fines are not sufficient, or not deemed appropriate because of the severity of the breach, Ofcom will be able to apply for a court order allowing it to undertake business disruption measures. This could be blocking access to a website or preventing it making money via payment or advertising services. Of course, Ofcom will be able to take enforcement action against any company that provides services to people in the UK, wherever that company is located. This is important, given the global nature of the internet.

As the Bill stands, individual senior managers can be held criminally liable and face a fine for failing to ensure their platform complies with Ofcom’s information notice. Further, individual senior managers can face jail, a fine or both for failing to prevent the platform committing the offences of providing false information, encrypting information or destroying information in response to an information notice.

The Government have also listened to and acknowledged the need for senior managers to be made personally liable for a wider range of failures of compliance. We have therefore committed to tabling an amendment in your Lordships’ House which will be carefully designed to capture instances where senior managers have consented to or connived in ignoring enforceable requirements, risking serious harm to children. We are carefully designing this amendment to ensure that it can hold senior managers to account for their actions regarding the safety of children, without jeopardising the UK’s attractiveness as a place for technology companies to invest in and grow. We intend to base our offence on similar legislation recently passed in the Republic of Ireland, as well as looking carefully at relevant precedent in other sectors in the United Kingdom.

I have discussed the safety of children, adults, and everyone’s right to free speech. It is not possible to talk about this Bill without also discussing its protections for women and girls, who we know are disproportionately affected by online abuse. As I mentioned, all services in scope will need to seek out and remove priority illegal content proactively. There are a number of offences which disproportionately affect women and girls, such as revenge pornography and cyberstalking, which the Bill requires companies to tackle as a priority.

To strengthen protections for women in particular, we will be listing controlling or coercive behaviour as a priority offence. Companies will have to take proactive measures to tackle this type of illegal content. We will also bring forward an amendment to name the Victims’ Commissioner and the domestic abuse commissioner as statutory consultees for the codes of practice. This means there will be a requirement for Ofcom to consult both commissioners ahead of drafting and amending the codes of practice, ensuring that victims, particularly victims and survivors of domestic abuse, are better protected. The Secretary of State and our colleagues have been clear that women’s and girls’ voices must be heard clearly in developing this legislation.

I also want to take this opportunity to acknowledge the concerns voiced over the powers for the Secretary of State regarding direction in relation to codes of practice that currently appear in the Bill. That is a matter on which my honourable friend Paul Scully and I were pressed by your Lordships’ Communications and Digital Committee when we appeared before it last week. As we explained then, we remain committed to ensuring that Ofcom maintains its regulatory independence, which is vital to the success of this framework. As we are introducing ground-breaking regulation, our aim is to balance the need for the regulator’s independence with appropriate oversight by Parliament and the elected Government.

We intend to bring forward two changes to the existing power: first, replacing the “public policy” wording with a defined list of reasons that a direction can be made; and secondly, making it clear that this element of the power can only be used in exceptional circumstances. I would like to reassure noble Lords—as I sought to reassure the Select Committee—that the framework ensures that Parliament will always have the final say on codes of practice, and that strong safeguards are in place to ensure that the use of this power is transparent and proportionate.

Before we begin our scrutiny in earnest, it is also necessary to recognise that this Bill is not just establishing a regulatory framework. It also updates the criminal law concerning communication offences. I want to thank the Law Commission for its important work in helping to strengthen criminal law for victims. The inclusion of the new offences for false and threatening communications offers further necessary protections for those who need it most. In addition, the Bill includes new offences to criminalise cyberflashing and epilepsy trolling. We firmly believe that these new offences will make a substantive difference to the victims of such behaviour. The Government have also committed to adding an additional offence to address the encouragement or assistance of self-harm communications and offences addressing intimate image abuse online, including deep- fake pornography. Once these offences are introduced, all companies will need to treat this content as illegal under the framework and take action to prevent users from encountering it. These new offences will apply in respect of all victims of such activity, children as well as adults.

This Bill has been years in the making. I am proud to be standing here today as the debate begins in your Lordships’ House. I realise that noble Lords have been waiting long and patiently for this moment, but I know that they also appreciate that considerable work has already been done to ensure that this Bill is proportionate and fair, and that it provides the change that is needed.

A key part of that work was conducted by the Joint Committee, which conducted pre-legislative scrutiny of the Bill, drawing on expertise from across both Houses of Parliament, from all parties and none. I am very glad that all the Members of your Lordships’ House who served on that committee are speaking in today’s debate: the noble Baroness, Lady Kidron; the noble Lords, Lord Stevenson of Balmacara and Lord Knight of Weymouth, who have very helpfully been called to service on the Opposition Front Bench; the noble Lord, Lord Clement-Jones, who speaks for the Liberal Democrats; as well as my noble friends Lord Black of Brentwood and Lord Gilbert of Panteg.

While I look forward to the contributions of all Members of your Lordships’ House, and will continue the open-minded, collaborative approach established by my right honourable friend the Secretary of State and her predecessors—listening to all ideas which are advanced to make this Bill as effective as it can be—I urge noble Lords who are not yet so well-versed in its many clauses and provisions, or who might be disinclined to accept at first utterance the points I make from this Dispatch Box, to consult those noble Lords before bringing forward their amendments in later stages of the Bill. I say that not to discourage noble Lords from doing so, but in the spirit of ensuring that what they do bring forward, and our deliberations on them, will be pithy, focused, and conducive to making this Bill law as swiftly as possible. In that spirit, I shall draw my already too lengthy remarks to a close. I beg to move.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I am grateful to the very many noble Lords who have spoken this afternoon and this evening. They have spoken with passion—we heard that in the voices of so many—about their own experiences, the experiences of their families and the experiences of far too many of our fellow subjects, who have harrowing examples of the need for this Bill. But noble Lords have also spoken with cool-headed precision and forensic care about the aspects of the Bill that demand our careful scrutiny. Both hearts and heads are needed to make this Bill worth the wait.

I am very grateful for the strong consensus that has come through in noble Lords’ speeches on the need to make this Bill law and to do so quickly, and therefore to do our work of scrutiny diligently and speedily. I am grateful for the very generous and public-spirited offer the noble Lord, Lord Stevenson, has just issued. I, too, would like to make this not a party-political matter; it is not and has not been in the speeches we have heard today. The work of your Lordships’ House is to consider these matters in detail and without party politics intruding, and it would be very good if we could proceed on the basis of collaboration, co-operation and, on occasion, compromise.

In that spirit, I should say at the outset that I share the challenge faced by the noble Lords, Lord Clement-Jones and Lord Stevenson. Given that so many speakers have chosen to contribute, I will not be able to cover or acknowledge everyone who has spoken. I shall undoubtedly have to write on many of the issues to provide the technical detail that the matters they have raised deserve. It is my intention to write to noble Lords and invite them to join a series of meetings to look in depth at some of the themes and areas between now and Committee, so that as a group we can have well-informed discussions in Committee. I shall write with details suggesting some of those themes, and if noble Lords feel that I have missed any, or particular areas they would like to continue to talk about, please let me know and I will be happy to facilitate those.

I want to touch on a few of the issues raised today. I shall not repeat some of the points I made in my opening speech, given the hour. Many noble Lords raised the very troubling issue of children accessing pornography online, and I want to talk about that initially. The Government share the concerns raised about the lack of protections for children from this harmful and deeply unsuitable content. That is why the Bill introduces world-leading protections for children from online pornography. The Bill will cover all online sites offering pornography, including commercial pornography sites, social media, video-sharing platforms and fora, as well as search engines, which play a significant role in enabling children to access harmful and age-inappropriate content online. These companies will have to prevent children accessing pornography or face huge fines. To ensure that children are protected from this content, companies will need to put in place measures such as age verification, or demonstrate that the approach they are taking delivers the same level of protection for children.

While the Bill does not mandate that companies use specific technologies to comply with these new duties, in order to ensure that the Bill is properly future-proofed, we expect Ofcom to take a robust approach to sites which pose the highest risk of harm to children, including sites hosting online pornography. That may include directing the use of age verification technologies. Age verification is also referred to in the Bill. This is to make clear that these are measures that the Government expect to be used for complying with the duties under Part 3 and Part 5 to protect children from online pornography. Our intention is to have the regime operational as soon as possible after Royal Assent, while ensuring that the necessary preparations are completed effectively and that service providers understand what is expected of them. We are working very closely with Ofcom to ensure this.

The noble Lord, Lord Morrow, and others asked about putting age verification in the Bill more clearly, as was the case with the Digital Economy Act. The Online Safety Bill includes references to age assurance and age verification in the way I have just set out. That is to make clear that these are measures which the Government expect to be used for complying with the duties where proportionate to do so. While age assurance and age verification are referred to in the Bill, the Government do not mandate the use of specific approaches or technologies. That is similar to the approach taken in the Digital Economy Act, which did not mandate the use of a particular technology either.

I think my noble friend Lord Bethell prefers the definition of pornography in Part 3 of the Digital Economy Act. There is already a robust definition of “pornographic content” in this Bill which is more straightforward for providers and Ofcom to apply. That is important. The definition we have used is similar to the definition of pornographic content used in existing legislation such as the Coroners and Justice Act 2009. It is also in line with the approach being taken by Ofcom to regulate UK-established video-sharing platforms, meaning that the industry will already have familiarity with this definition and that Ofcom will already have experience in regulating content which meets this definition. That means it can take action more swiftly. However, I have heard the very large number of noble Lords who are inclined to support the work that my noble friend is doing in the amendments he has proposed. I am grateful for the time he has already dedicated to conversations with the Secretary of State and me on this and look forward to discussing it in more detail with him between now and Committee.

A number of noble Lords, including the noble Baronesses, Lady Finlay of Llandaff and Lady Kennedy of The Shaws, talked about algorithms. All platforms will need to undertake risk assessments for illegal content. Services likely to be accessed by children will need to undertake a children’s risk assessment to ensure they understand the risks associated with their services. That includes taking into account in particular the risk of algorithms used by their service. In addition, the Bill includes powers to ensure that Ofcom is able effectively to assess whether companies are fulfilling their regulatory requirements, including in relation to the operating of their algorithms. Ofcom will have the power to require information from companies about the operation of their algorithms and the power to investigate non-compliance as well as the power to interview employees. It will have the power to require regulated service providers to undergo a skilled persons report and to audit company systems and processes, including in relation to their algorithms.

The noble Baroness, Lady Kidron, rightly received many tributes for her years of work in relation to so many aspects of this Bill. She pressed me on bereaved parents’ access to data and, as she knows, it is a complex issue. I am very grateful to her for the time she has given to the meetings that the Secretary of State and I have had with her and with colleagues from the Ministry of Justice on this issue, which we continue to look at very carefully. We acknowledge the distress that some parents have indeed experienced in situations such as this and we will continue to work with her and the Ministry of Justice very carefully to assess this matter, mindful of its complexities which, of course, were something the Joint Committee grappled with as well.

The noble Baroness, Lady Featherstone, my noble friend Lady Wyld and others focused on the new cyberflashing offence and suggested that a consent-based approach would be preferable. The Law Commission looked at that in drawing up its proposals for action in this area. The Law Commission’s report raised concerns about the nature of consent in instant messaging conversations, particularly where there are misjudged attempts at humour or intimacy that could particularly affect young people. There is a risk, which we will want to explore in Committee, of overcriminalising young people. That is why the Government have brought forward proposals based on the Law Commission’s work. If noble Lords are finding it difficult to see the Law Commission’s reports, I am very happy to draw them to their attention so that they can benefit from the consultation and thought it conducted on this difficult issue.

The noble Baroness, Lady Gohir, talked about the impact on body image of edited images in advertising. Through its work on the online advertising programme, DCMS is considering how the Government should approach advertisements that contribute to body image concerns. A consultation on this programme closed in June 2022. We are currently analysing the responses to the consultation and developing policy. Where there is harmful user-generated content related to body image that risks having an adverse physical or psychological impact on children, the Online Safety Bill will require platforms to take action against that. Under the Bill’s existing risk assessment duties, regulated services are required to consider how media literacy can be used to mitigate harm for child users. That could include using content provenance technology, which can empower people to identify when content has been digitally altered in ways such as the noble Baroness mentioned.

A number of noble Lords focused on the changes made in relation to the so-called “legal but harmful” measures to ensure that adults have the tools they need to curate and control their experience online. In particular, noble Lords suggested that removing the requirement for companies to conduct risk assessments in relation to a list of priority content harmful to adults would reduce protections available for users. I do not agree with that assessment. The new duties will empower adult users to make informed choices about the services they use and to protect themselves on the largest platforms. The new duties will require the largest platforms to enforce all their terms of service regarding the moderation of user-generated content, not just the categories of content covered in a list in secondary legislation. The largest platforms already prohibit the most abusive and harmful content. Under the new duties, platforms will be required to keep their promises to users and take action to remove it.

There was rightly particular focus on vulnerable adult users. The noble Baronesses, Lady Hollins and Lady Campbell of Surbiton, and others spoke powerfully about that. The Bill will give vulnerable adult users, including people with disabilities, greater control over their online experience too. When using a category 1 service, they will be able to reduce their exposure to online abuse and hatred by having tools to limit the likelihood of their encountering such content or to alert them to the nature of it. They will also have greater control over content that promotes, encourages or provides instructions for suicide, self-harm and eating disorders. User reporting and redress provisions must be easy to access by all users, including people with a disability and adults with caring responsibilities who are providing assistance. Ofcom is of course subject to the public sector equality duty as well, so when performing its duties, including writing its codes of practice, it will need to take into account the ways in which people with protected characteristics, including people with disabilities, can be affected. I would be very happy to meet the noble Baronesses and others on this important matter.

The noble Lords, Lord Hastings of Scarisbrick and Lord Londesborough, and others talked about media literacy. The Government fully recognise the importance of that in achieving online safety. As well as ensuring that companies take action to keep users safe through this Bill, we are taking steps to educate and empower them to make safe and informed choices online. First, the Bill strengthens Ofcom’s existing media literacy functions. Media literacy is included in Ofcom’s new transparency reporting and information-gathering powers. In response to recommendations from the Joint Committee, the legislation also now specifies media literacy in the risk-assessment duties. In July 2021, DCMS published the online media literacy strategy, which sets out our ambition to improve national media literacy. We have committed to publishing annual action plans in each financial year until 2024-25, setting out our plans to deliver that. Furthermore, in December of that year, Ofcom published Ofcom’s Approach to Online Media Literacy, which includes an ambitious range of work focusing on media literacy.

Your Lordships’ House is, understandably, not generally enthusiastic about secondary legislation and secondary legislative powers, so I was grateful for the recognition by many tonight of the importance of providing for them in certain specific instances through this Bill. As the noble Lord, Lord Brooke of Alverthorpe, put it, there may be loopholes that Parliament wishes to close, and quickly. My noble friend Lord Inglewood spoke of the need for “living legislation”, and it is important to stress, as many have, that this Bill seeks to be technology-neutral—not specifying particular technological approaches that may quickly become obsolete—in order to cater for new threats and challenges as yet not envisaged. Some of those threats and challenges were alluded to in the powerful speech of my noble friend Lord Sarfraz. I know noble Lords will scrutinise those secondary powers carefully. I can tell my noble friend that the Bill does apply to companies that enable users to share content online or interact with each other, as well as to search services. That includes a broad range of services, including the metaverse. Where haptics enable user interaction, companies must take action. The Bill is also clear that content generated by bots is in scope where it interacts with user-generated content such as on Twitter, but not if the bot is controlled by or on behalf of the service, such as providing customer services for a particular site.

Given the range of secondary powers and the changing technological landscape, a number of noble Lords understandably focused on the need for post-legislative scrutiny. The Bill has undoubtedly benefited from pre-legislative scrutiny. As I said to my noble friend Lady Stowell of Beeston in her committee last week, we remain open-minded on the best way of doing that. We must ensure that once this regime is in force, it has the impact we all want it to have. Ongoing parliamentary scrutiny will be vital in ensuring that is the case. We do not intend to legislate for a new committee, not least because it is for Parliament itself to decide what committees it sets up. But I welcome further views on how we ensure that we have effective parliamentary scrutiny, and I look forward to discussing that in Committee. We have also made it very clear that the Secretary of State will undertake a review of the effectiveness of the regime between two and five years after it comes into force, producing a report that will then be laid in Parliament, thus providing a statutory opportunity for Parliament to scrutinise the effectiveness of the legislation.

My noble friend and other members of her committee followed up with a letter to me about the Secretary of State’s powers. I shall reply to that letter in detail and make that available to all noble Lords to see ahead of Committee. This is ground-breaking legislation, and we have to balance the need for regulatory independence with the appropriate oversight for Parliament and the Government. In particular, concerns were raised about the Secretary of State’s power of direction in Clause 39. Ofcom’s independence and expertise will be of utmost importance here, but the very broad nature of online harms means that there may be subjects that go beyond its expertise and remit as a regulator. That was echoed by Ofcom itself when giving evidence to the Joint Committee: it noted that there will clearly be some issues in respect of which the Government have access to expertise and information that the regulator does not, such as national security.

The framework in the Bill ensures that Parliament will always have the final say on codes of practice, and the use of the affirmative procedure will further ensure that there is an increased level of scrutiny in the exceptional cases where that element of the power is used. As I said, I know that we will look at that in detail in Committee.

My noble friend Lord Black of Brentwood, quoting Stanley Baldwin, talked about the protections for journalistic content. He and others are right that the free press is a cornerstone of British democracy; that is why the Bill has been designed to protect press and media freedom and why it includes robust provisions to ensure that people can continue to access diverse news sources online. Category 1 companies will have a new duty to safeguard all journalistic content shared on their platform, which includes citizen journalism. Platforms will need to put systems and processes in place to protect journalistic content, and they must enforce their terms of service consistently across all moderation and in relation to journalistic content. They will also need to put in place expedited appeals processes for producers of journalistic content.

The noble Baroness, Lady Anderson of Stoke-on-Trent, spoke powerfully about the appalling abuse and threats of violence she sustained in her democratic duties, and the noble Baroness, Lady Foster, spoke powerfully of the way in which that is putting off people, particularly women, from going into public life. The noble Baroness, Lady Anderson, asked about a specific issue: the automatic deletion of material and the implications for prosecution. We have been mindful of the scenario where malicious users post threatening content which they then delete themselves, and of the burden on services that retaining that information in bulk would cause. We have also been mindful of the imperative to ensure that illegal content cannot be shared and amplified online by being left there. The retention of data for law enforcement purposes is strictly regulated, particularly through the Investigatory Powers Act, which the noble Lord, Lord Anderson of Ipswich, is reviewing at the request of the Home Secretary. I suggest that the noble Baroness and I meet to speak about that in detail, mindful of that ongoing review and the need to bring people to justice.

The noble Baroness, Lady Chakrabarti, asked about sex for rent. Existing offences can be used to prosecute that practice, including Sections 52 and 53 of the Sexual Offences Act 2003, both of which are listed as priority offences in Schedule 7 to the Bill. As a result, all in-scope services must take proactive measures to prevent people being exposed to such content.

The noble Lord, Lord Davies of Brixton, and others talked about scams. The largest and most popular platforms and search engines—category 1 and category 2A services in the Bill—will have a duty to prevent paid-for fraudulent adverts appearing on their services, making it harder for fraudsters to advertise scams online. We know that that can be a particularly devastating crime. The online advertising programme builds on this duty in the Bill and will look at the role of the whole advertising system in relation to fraud, as well as the full gamut of other harms which are caused.

My noble friend Lady Fraser talked about the devolution aspects, which we will certainly look at. Internet services are a reserved matter for the UK Government. The list of priority offences in Schedule 7 can be updated only by the Secretary of State, subject to approval by this Parliament.

The right reverend Prelate the Bishop of Manchester asked about regulatory co-operation, and we recognise the importance of that. Ofcom has existing and strong relationships with other regulators, such as the ICO and the CMA, which has been supported and strengthened by the establishment of the Digital Regulation Cooperation Forum in 2020. We have used the Bill to strengthen Ofcom’s ability to work closely with, and to disclose information to, other regulatory bodies. Clause 104 ensures that Ofcom can do that, and the Bill also requires Ofcom to consult the Information Commissioner.

I do not want to go on at undue length—I am mindful of the fact that we will have detailed debates on all these issues and many more in Committee—but I wish to conclude by reiterating my thanks to all noble Lords, including the many who were not able to speak today but to whom I have already spoken outside the Chamber. They all continue to engage constructively with this legislation to ensure that it meets our shared objectives of protecting children and giving people a safe experience online. I look forward to working with noble Lords in that continued spirit.

My noble friend Lady Morgan of Cotes admitted to being one of the cavalcade of Secretaries of State who have worked on this Bill; I pay tribute to her work both in and out of office. I am pleased that my right honourable friend the Secretary of State was here to observe part of our debate today and, like all noble Lords, I am humbled that Ian Russell has been here to follow our debate in its entirety. The experience of his family and too many others must remain uppermost in our minds as we carry out our duty on the Bill before us; I know that it will be. We have an important task before us, and I look forward to getting to it.

Bill read a second time.

Broadband: Social Tariffs

Lord Parkinson of Whitley Bay Excerpts

Tuesday 31st January 2023 Lords Chamber

[Baroness Kennedy of Cradley]

To ask His Majesty’s Government what steps they are taking to ensure that eligible households are aware of the social broadband tariffs available to them.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, while there is a good availability of low-cost offers for broadband customers, low take-up remains an issue, partly due to the need for greater awareness. My department is working with a range of parties, including other government departments, jobcentres, libraries, local authorities, charities, consumer groups and internet service providers, to get the message to everyone eligible. The Government are also raising awareness through the UK-wide Help for Households campaign so that families up and down the country know how and where to find these offers.

[Baroness Kennedy of Cradley (Non-Afl)]

My Lords, millions and millions of people—up to 4 million on benefit—are spending more than they need to on their broadband, as the take-up of social tariffs is shockingly low. We need to do more. Digital inclusion matters: without it, we know that people are economically and socially disadvantaged. I take the point about awareness but is it not time for the Government to work with internet service providers to do two things? First, they should ensure an industry standard for all social tariffs for speed, terms and costs. Secondly, and most importantly, they should create an auto-enrolment scheme so that everybody who is entitled to a social tariff and a data voucher receives them.

[Lord Parkinson of Whitley Bay (Con)]

I am very grateful to the noble Baroness, whose Question is helping us to raise awareness for all those that need it. As I said, we are working with a number of groups and parties across the country to get the message out. She rightly underlines the importance of the internet to the way everybody leads their lives. One of the myths to bust is that the speed provided on a social tariff is inferior to other ones. Many providers offer very good services for people, and we are keen to get the message out, through our communications campaign and our work with the Department for Work and Pensions, on the other issues she mentions.

[Lord Kirkhope of Harrogate (Con)]

My Lords, the Minister is right in what he says, but while we all support the universal need for broadband, since 26 December last year, as he knows, planning regulations have been changed so that all new-build housing must have full-fibre broadband provision. Is he satisfied with that, and does he not think there are other ways in which we can encourage providers to provide full fibre for a much wider area of the country?

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is right to point to the changes that were made in the building regulations on Boxing Day. That, of course, sits alongside the work we have taken forward through two telecommunications infrastructure Acts to help ensure that connectivity reaches more households, particularly those in large blocks of flats. It accompanies our wider work to ensure that everyone has access to high-speed internet. As a result of that, 73% of UK premises can now access gigabit-capable broadband, a huge increase from just 6% this time four years ago.

[Lord Clement-Jones (LD)]

My Lords, lack of access to digital devices is a major cause of data poverty. What resources are the Government providing, and what steps are they taking, to make sure that public bodies such as GP practices and schools ensure that families in data poverty can access digital-only services? Do the Government even have a comprehensive digital exclusion policy?

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

By its nature, this, of course, touches on the work of any government department. The Department for Education, through its digital entitlement programme, is equipping people with digital skills. DCMS encourages departments to consider, when making policy, the needs of people who might be digitally excluded. It is supporting that through, for instance, its work with the approximately 2,900 libraries nationwide to make sure that people can get online there if they need to.

[Lord Berkeley (Lab)]

My Lords, is the Minister aware that BT has said that by 2025, it is going to disconnect all wi-fi copper connections, and that the average cost for all consumers will be about £100 a month? How is anybody going to afford this?

[Lord Parkinson of Whitley Bay (Con)]

We are working with providers to make sure that faster broadband connection can be rolled out to people across the country and that those costs are not passed on to consumers. It is of course in providers’ interests to provide fast connections and products that people want to use.

[Baroness Finlay of Llandaff (CB)]

My Lords, given the pressure on hospital beds and the move to virtual wards, whereby patients are looked after at home and monitored through electronic devices, what are the Government doing to ensure the rapid installation of adequate broadband in homes with no connectivity, so that patients can be cared for in these virtual wards —which are being set up specifically because there are not enough beds in the NHS to take them?

[Lord Parkinson of Whitley Bay (Con)]

The noble Baroness touches on work about which it may be better for my colleagues in the Department of Health and Social Care to respond. We are working to ensure that everybody has connection to high-speed internet, and through social tariffs it is now available in 99% of the country.

[Baroness Altmann (Con)]

My Lords, many millions of people can neither afford to use internet broadband nor even own a smartphone, especially the elderly. Government figures suggest that more than 90% of people under 60 are digitally enabled, but approximately half of over-75s are not. Can my noble friend the Minister comment on the apparent age discrimination inherent in allowing the accessing of essential public services, banking, making parking payments and more to require ownership or use of an app or the internet? What is the Government’s strategy for remedying that digital exclusion?

[Lord Parkinson of Whitley Bay (Con)]

My noble friend is right about the different impacts this has on people of different ages. While accessing services online provides clear benefits to people, I know that many companies are mindful of those who are not yet able to do so. As I have said, we are ensuring that everyone who wishes to do so has access to high-speed internet. Through social tariffs, they know that they can afford it, so if they wish to access those services online, they can.

[Lord Sikka (Lab)]

My Lords, the Government are handing £5 billion to BT for broadband provision. Under that deal, BT will keep the resulting assets and income streams for years and years to come. Can the Minister explain why, as part of that deal, the Government did not ask for free broadband for all poor and vulnerable households?

[Lord Parkinson of Whitley Bay (Con)]

As I have said, the industry is responding, with a number of operators providing low-cost social tariffs for people who want them. We think that a voluntary, market-led approach is the quickest way to provide fast internet connection to everybody, and we are very grateful for the industry’s co-operation.

[Lord Hunt of Kings Heath (Lab)]

My Lords, can the Minister come back to the question raised by the noble Baroness, Lady Altmann? It appears that some government departments will accept payments only if they are made online, thereby excluding millions of people from engagement. What are the Government going to do to be more inclusive?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I will discuss that with colleagues in other departments who are responsible for that particular aspect.

[Baroness Merron (Lab)]

My Lords, as the Minister himself acknowledged, automatic verification of eligibility for cheaper broadband and mobile tariffs is just one side of the story, as only 136,000 households are signed up, with potentially millions not receiving the help they could benefit from. What assessment has been made of the low-income groups who are missing out? Can the Minister commit to a targeted rather than a general campaign to increase take-up—for example, contacting claimants directly? After all, the Government are aware of who they are.

[Lord Parkinson of Whitley Bay (Con)]

The Department for Work and Pensions is working with operators to ensure that the digital verification system is consistent with that. Earlier this month, Sky became the first national provider to go live on that system, with others following in the coming weeks and months. The noble Baroness is right: this and our broader work to help households is part of a large communications campaign that is indeed targeted at the households we think will benefit from it. For example, there are adverts on cash- points, the sides of buses and pub TV screens, and leaflets have been disseminated to 150 supermarkets and to food banks and hospitals around the country to ensure that the message gets to those who will benefit from it.

[Baroness Blower (Lab)]

My Lords, would the Minister like to try again to answer my noble friend Lord Sikka’s question? Can he say why BT has not been required to offer free broadband to the poorest and most vulnerable in our society, who clearly have some of the greatest need?

[Lord Parkinson of Whitley Bay (Con)]

I did answer the question. We consider that the quickest way to get this help out is through a voluntary, market-led approach. The social tariffs are available in 99% of the country, and our communications work is to ensure that people are aware of them and take them up.

Trade (Mobile Roaming) Regulations 2023

Lord Parkinson of Whitley Bay Excerpts

Tuesday 31st January 2023 Grand Committee

Moved by

[Lord Parkinson of Whitley Bay]

That the Grand Committee do consider the Trade (Mobile Roaming) Regulations 2023.

Relevant document: 25th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, I am pleased to move these regulations, which were laid before your Lordships’ House in draft on 15 December. This legislation represents a world first in international trade: the UK-Norway, Iceland and Liechtenstein free trade agreement contains the world’s first provisions regulating mobile roaming charges.

Most recent free trade agreements mention mobile roaming, but provisions in those agreements talk of co-operating or even endeavouring to co-operate. However, this free trade agreement takes a further step: actually ensuring the regulation of charges in order to make a real difference to Britons travelling overseas. It is an example of the innovative trade deals we can now negotiate, bringing real benefits to British travellers.

This legislation is necessary to implement domestically the UK’s international obligations under the terms of the agreement. Technically, the legislation implements the agreement’s provisions that regulate international mobile roaming wholesale charges.

As many noble Lords will appreciate, wholesale charges are what mobile operators charge each other, as distinct from retail charges, which are what they charge their customers. The wholesale charges Norwegian and Icelandic mobile operators can charge UK operators will be capped by their domestic legislation. The legislation we are debating will cap the charges that UK operators can apply to Norwegian and Icelandic mobile operators. The caps cover wholesale charges for mobile data, voice calls and text messages. The regulation of wholesale charges in the agreement is with a view to facilitating surcharge-free international mobile roaming for British consumers to Norway and Iceland, as well as, of course, surcharge-free mobile roaming for Norwegians and Icelanders in the UK.

I note that the agreement’s provisions regulate mobile roaming wholesale charges between the UK and Norway, and the UK and Iceland. The agreement’s provisions do not apply to Liechtenstein. Therefore, this legislation is not relevant to that principality. That is because Liechtenstein decided to opt out, given its operators’ commercial relationships with Switzerland. Because of the topography and the limited geographical area of Liechtenstein, a significant part of its territory is supplied by masts from neighbouring Switzerland. I add that this legislation also ensures that Ofcom has the power to enforce the caps on wholesale charges.

Before I make way for the debate on this legislation, I will cover an issue that might form the basis of questions that noble Lords might have: the agreement’s coverage of wholesale, rather than retail, charges. The reason the agreement covers wholesale charges but not retail ones is that wholesale charges have to be covered by an international agreement. Wholesale charges are a cross-border issue; an international agreement is therefore required to cover them. UK legislation alone cannot bind the charges of Icelandic or Norwegian operators.

Retail charges can be covered by an international agreement, but they can also be covered by purely domestic legislation. This is because retail charges are between UK operators and their domestic customers. Retail charges are not a cross-border issue.

The parties concluded that this agreement should cover only wholesale charges, as these have to be covered by an international agreement. That the agreement does not cover retail charges reflects its light-touch regulatory approach. It will ensure that UK operators are protected from high wholesale charges from Norwegian and Icelandic operators. It is therefore expected that those UK operators who surcharge their customers roaming in Norway and Iceland will react at the retail level by reconsidering their approach and moving to surcharge-free services.

While the agreement is light touch in its regulatory approach, let me be clear: one of the key, publicly stated achievements of the agreement was to keep costs low for holidaymakers and business travellers in Norway and Iceland. The Government are committed to delivering that aim. They therefore expect UK mobile operators which are surcharging to reconsider their approach. If they do not, the Government have the capacity to intervene.

[Lord Deben (Con)]

On this particular point—

[Lord Parkinson of Whitley Bay (Con)]

My Lords, this is my opening speech. My noble friend will be able to join the debate in a moment. I look forward to the contributions from my noble friend and other noble Lords. I beg to move.

[Lord Deben (Con)]

I wanted to ask my noble friend: what advantage does the mobile telephone user get from us having left the European Union? Is this not a rather pathetic doing of a deal with a few countries, when everybody in Britain suffers from having left the European Union and being charged extra? This deal is just with a couple of countries—even Liechtenstein is left out.

--- Later in debate ---

[Lord Parkinson of Whitley Bay (Con)]

My Lords, I will take whatever small crumbs of comfort are offered by noble Lords. Looking around, I imagine that noble Lords will not be celebrating the third anniversary of our departure from the European Union this evening in the same way that I will, but I understand why they are taking account of that anniversary to use this opportunity to make some points about the European Union, which is tangentially linked to the issue before us.

As I mentioned, this statutory instrument covers only Norway and Iceland, but I am happy to respond to the points which noble Lords have taken this opportunity to make, not least to reiterate that, during our negotiations leading up to our departure from the European Union, UK negotiators did propose to the European Commission the continuation of reciprocal arrangements between the UK and the EU for surcharge-free roaming. The EU, regrettably, did not agree with that proposition. We subsequently proposed a review clause to consider the need for these agreements, should roaming surcharges return for consumers. The EU did not agree to that either, and we are unaware of any shift in its position on this issue.

My noble friend Lord Deben says that the SI refers to just a couple of countries. It is, as I say, world-leading legislation because it is the first agreement which refers to this important issue and its impact upon the bills of mobile phone users. There are nearly 200 countries around the world, only 27 of them member states of the European Union, and this issue affects travellers—holidaymakers and those from businesses—when they travel across the globe. We are proud that this agreement sets out a way for co-operation on this issue.

[Lord Deben (Con)]

I will not hold my noble friend up, and I know this is difficult, but the countries to which most people go most of the time are those in the rest of Europe. That is the fact of the matter. Will he tell me how much the average person will benefit from this deal and how much they have lost from us not being members of the European Union? What I am really fed up with is that the Government never tell us the facts about the loss from our leaving the European Union, so people cannot understand whether this is something to be cheerful about or miserable about. Today, we had a Minister referring to our freedom from the European Union; the freedom is that we now pay more and we are blaming the European Union for not giving way to the fact that we left the EU. All I want to know from my noble friend—I know this is on unfair on him—is how much the average person loses by our not having a deal with the European Union and how much they gain, on average, from being able to go to Iceland and Norway, although they will miss out on Liechtenstein.

[Lord Parkinson of Whitley Bay (Con)]

Even if I had the statistics to hand, I do not think I would be able to satisfy my noble friend entirely. I do not have the numbers to compare UK travellers visiting Norway and Iceland with, say, Bulgaria or any other EU member state. What they have gained, as the UK has gained by our departure from the European Union, is the ability to sign free trade agreements and agreements such as this which allow us to pursue these benefits. They are a model for our co-operation with countries around the world, whether they are in the European Union or not.

Decisions about imposing roaming charges on customers who travel to the EU is a matter for operators themselves. I note that some, including Virgin Mobile and O2, do not so consumers in the UK still have the option of using that network and travelling without any charge to the European Union. I do not suppose any of that fully persuades my noble friend, but I hope it addresses the points that he has raised.

As I say, this represents a world first in a free trade agreement, and we expect it to make a real difference to Britons travelling to Norway and Iceland. It was one of the key and publicly stated achievements of the agreement, when we signed it, to keep costs low for holidaymakers and business travellers going to those countries, and the Government are committed to delivering that aim.

The noble Lord, Lord Clement-Jones, asked about wholesale charges. They are set out in the statutory instrument and took the EU rates as a benchmark. The agreements sub-committee recommended to the joint committee that the current rate found in the EU roaming regulation would be appropriate for the UK, Norway and Iceland. That is consistent with the agreement’s language, which concerns looking at “relevant international benchmarks”. I should say that the sub-committee is made up of officials, while the joint committee is the senior body chaired by Ministers.

[Lord Clement-Jones (LD)]

Thank you—that is really helpful—but will those rates change when the EU benchmark changes?

[Lord Parkinson of Whitley Bay]

That is not set out in the agreement, but, as is set out in it, the joint committee will review the rates every two years, unless it decides otherwise, with a view to determining whether they are still appropriate. An option in any of the reviews could indeed be to follow the rates in the EU and EEA, as the agreement talks about “relevant international benchmarks”, but that will be for the joint committee to decide.

The noble Lord, Lord Bassam, asked whether we plan to legislate to intervene if surcharges are imposed and endure. Obviously, I cannot make commitments on the Government’s future legislative programme, but I can stress the Government’s firm desire to see the benefits of this agreement flowing to consumers in the form of surcharge-free roaming to Norway and Iceland. If that does not happen, the Government have the capacity to intervene, and we will of course keep that under consideration. We will review these in due course, noting the five-year limit set out. I fear I cannot give a more precise timeframe to the question posed by the noble Viscount, Lord Stansgate.

I think that covers all the points raised, but I will consult the Official Report and write if I have missed anything. With that, I commend the Motion.

Motion agreed.

Channel 4

Lord Parkinson of Whitley Bay Excerpts

Wednesday 11th January 2023 Lords Chamber

[Lord Stevenson of Balmacara (Lab)]

My Lords, we wholeheartedly welcome the Secretary of State’s decision not to privatise Channel 4. The British public service broadcasting ecosystem is unique and has been built up over many decades. At a time when the market in which it operates has been changing radically and is continuing to change, we should be very careful indeed about making major, radical adjustments that would threaten our successful cultural economy.

I have three questions for the Minister. Can he explain what aspects of the evidence that led the former Secretary of State to the original decision have turned out to be so flaky on review as to engender such an extraordinary policy U-turn? The Statement refers to introducing “updated governance structures” for Channel 4. Given that there is to be no change to the ownership of Channel 4, can he say whether that refers to the role that government currently plays, the board, the executive structure or all of the above? Can he confirm that the proposals will require changes to primary legislation? Finally, does he agree that changing the publisher broadcaster status, enshrined as it is in statute, would be a major change not only for the channel but for the independent production sector and would materially affect the public broadcasting sector ecosystem? I look forward to his comments.

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

I welcome the noble Lord back to his position on the Opposition Front Bench and wish noble Lords a happy new year. My right honourable friend set out in another place the rationale for her decision: as she said, she looked at the business case and the evidence for doing so. She was very clear, however, that, while not pursuing at this time the opportunity of a sale of Channel 4, doing nothing was not an option either. As the noble Lord rightly said, it operates in a rapidly changing media landscape and, as part of our in-depth analysis, we have established that its long-term sustainability must be addressed. Channel 4 itself has acknowledged that in its own strategy document The Next Episode. The package that my right honourable friend set out addresses that, including through some legislative change which we will be taking forward in the media Bill.

On the publisher broadcaster restriction, the Government will make changes via the Bill to give Channel 4 the freedom to make and own some of its own content—a freedom it does not currently have. That will open up a range of options for it to grow its income, which is important for its sustainability. As we have seen, Channel 4 has done a fantastic job over the last four decades in doing what it was set up to do by the Conservative Government in the 1980s: to stimulate independent production. The cost of that is going up because of a number of competitors, and I am sure we are all interested in ensuring that it has the resources it needs to do that.

[Baroness Bonham-Carter of Yarnbury (LD)]

My Lords, I too welcome the return of the noble Lord, Lord Stevenson. He is like the noble Lord, Lord Parkinson: he goes and he comes back, and it is excellent that we have both of them back on the Front Bench. Given that the Government’s approach has supposedly been driven by their concern for the sustainability of Channel 4, can the Minister tell us what plans the Government have to act urgently on bringing forward legislation on prominence, which Ofcom recommended two years ago, which the Government have been promising for months and which will make a huge contribution not just to Channel 4’s sustainability but to other PSBs? Can he confirm that there will be a media Bill imminently?

[Lord Parkinson of Whitley Bay (Con)]

I look forward to more questions on other aspects of the media Bill’s work than perhaps we have had in recent months. Yes, it is our intention to bring forward the media Bill when parliamentary time allows, so that we can carry forward important reforms that will benefit the whole of our public service broadcasting system.

[Baroness Stowell of Beeston (Con)]

My Lords, I declare an interest as the chairman of your Lordships’ Communications and Digital Select Committee. I welcome the Government’s decision on the future of Channel 4, not least because it reflects so much of what the committee recommended in the report that we published just over a year ago on the future of Channel 4—although it is worth reminding your Lordships that, as a committee which represents all sides of this House, we did not object in principle to the sale of Channel 4.

I was also pleased that the Government recognised, none the less, that the status quo was not an option for the future of Channel 4. Bearing in mind what my noble friend has just said about the media Bill, which will be necessary to introduce the legislative changes and address some other needs of public service broadcasters to ensure their sustainability, perhaps I may push him further. If he will not give us a precise timetable for when the media Bill will come, can he tell us in which order the Bills that the DCMS has on the slate are going to come? The Online Safety Bill is about to come but we are also waiting for the digital competition Bill.

[Lord Parkinson of Whitley Bay (Con)]

My noble friend will know, as a former leader of your Lordships’ House, that that decision is above my pay grade, but it is our intention to bring the media Bill forward when parliamentary time allows. I am grateful to her and the other members of your Lordships’ committee for their thoughts, which have been part of the evidence that my right honourable friend and colleagues at the department have weighed up.

[Viscount Colville of Culross (CB)]

My Lords, I declare my interest as a series producer for an independent television production company. Like many other noble Lords, I welcome the Minister’s Statement. I heard him say that the Government have now given Channel 4 the freedom to produce its own content in order to stimulate the independent sector. At the moment, Channel 4 commissions over 55% of its content from small qualifying production companies and is a major customer for many of the larger producers. Can the Minister explain how he can ensure that setting up the in-house production base will not adversely affect the independent content producer ecosystem?

[Lord Parkinson of Whitley Bay (Con)]

We know how important our independent production sector is, not just to British television but to our creative industries more widely. We are absolutely committed to ensuring that Channel 4 plays its part in supporting what is a £3 billion sector. We will increase the level of Channel 4’s independent production quota, and, in doing so, we are looking at the potential for introducing specific protections for smaller independent producers.

[Lord Grocott (Lab)]

My Lords, while the Minister must not let all those congratulations go to his head, I too certainly welcome the Statement. In particular, the reference in the document to increased investment in skills is to be welcomed, but can the Minister give some reassurance that he is bearing in mind that the recruitment of people into this sector should not come so much, as it has done in the past, from a relatively narrow section of the community? It needs to be broadly based, so that people come into it who do not necessarily have a background in broadcasting and do not see that as a career opportunity. On the other question about jobs outside London—which, again, I certainly welcome—it is not clear, when it says “from 300 to 600”, whether that is referring to a net increase in employment in Channel 4 or simply to a movement of staff from London to the other parts of the country.

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord is absolutely right about ensuring that all of our public service broadcasters faithfully represent the country that they serve. We want Channel 4 to increase the opportunities that it offers young people, from all parts of the country and from all sorts of backgrounds, to get a foot in the door of our creative industries. It will be doubling its investment in its 4Skills training programme from £5 million to £10 million in 2025, and that includes new job opportunities and doubling its number of roles outside of London to 600 in 2025.

[Lord Clement-Jones (LD)]

My Lords, like the noble Viscount, Lord Colville, I am very concerned about the future for independent production companies in light of the Government’s plans, but, like others, I welcome the fact that there are no proposals to sell Channel 4. Can the Minister say how much taxpayers’ money has been wasted on those fruitless plans?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, in answer to a Parliamentary Question, the Government set out that, in the last financial year, we spent £600,000 on plans for privatisation.

[Lord Birt (CB)]

My Lords, I unequivocally welcome this decision and recognise that it took some political courage to make it. In effect, the Government are again supporting public service broadcasting. I express a hope that the same attitudes and considerations that brought this sharp reversal will apply when they consider the future of the BBC over the next few years.

[Lord Parkinson of Whitley Bay (Con)]

Without wanting to interrupt the harmony that has broken out at the start of the new year, the Government have always had the best interests of the public service broadcasters, including Channel 4, at heart when looking at that issue. As we have noted, the media landscape is rapidly changing. Unlike other public service broadcasters, Channel 4 has limited ability to diversify its revenue or to raise money through borrowing or equity capital. That is why we have looked at a range of options and why we have been very clear that doing nothing is not an option.

[Baroness McIntosh of Pickering (Con)]

My Lords, will my noble friend the Minister join me in giving a big shout out to Channel 4 for the number of European and global productions that it makes available free to view? While we were members of the European Union, we used to qualify for the MEDIA programme co-production scheme. Is that still the case?

[Lord Parkinson of Whitley Bay (Con)]

I will have to check that and write to my noble friend. I certainly echo her congratulations to Channel 4 on bringing a range of global content to viewers in this country and for sharing excellent British content with viewers around the world.

BBC: Future Funding (Communications and Digital Committee Report)

Lord Parkinson of Whitley Bay Excerpts

Friday 16th December 2022 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)]

My Lords, this has been a thoughtful and well-informed debate this morning, and I thank all noble Lords who have taken part in it.

The BBC is a great national institution. Over the past 100 years it has touched the lives of practically everyone in the United Kingdom and many people the world over. It makes an important contribution to our culture, our creative economy and to the strength of our democracy. I am therefore grateful to the members of your Lordships’ Communications and Digital Committee for their report on the future funding of the BBC, and in particular to its chairman, my noble friend Lady Stowell of Beeston, for securing today’s debate and for the way she set out the committee’s conclusions. I have an advantage over the noble Lord, Lord Addington, in that I did serve on the committee, albeit very briefly, so I can see from my 10 days with her and with noble Lords who have spoken today how richly she deserves the plaudits they have given her for the way she chairs it.

The committee’s inquiry took evidence from a wide range of prominent figures in the industry, experts and academics, and its thorough report has been helpful in informing the Government’s thinking on the future of the licence fee. Today’s debate has built on many of the findings in its report and highlighted the range of complex issues that will need to be considered as part of the review and as part of the Government’s decision-making on the future of the licence fee.

This debate has also explored many of the benefits and drawbacks of a number of alternative models for funding the corporation. I recognise that many noble Lords may wish to understand the Government’s position on the various alternatives which have been set out, but I should be clear at this stage that I must refrain from putting forward a detailed view on the potential alternatives. The Government are preparing to launch a review of the future funding of the BBC, as noble Lords mentioned, and we should rightly consider the findings of that review and fully assess the evidence before setting out any conclusions. However, today’s debate and the report of your Lordships’ committee are valuable contributions to that ongoing review and to informing the Government’s thinking.

I am afraid that I cannot give noble Lords an early Christmas present by setting out the precise date for the launch of the review but perhaps I can set out a few more details about our approach to it. The Government recognise that decisions over the BBC’s funding model will and should be tied up with the question of what the BBC is for in its second century, as the noble Lord, Lord Hall of Birkenhead, said. We welcome the committee’s recommendations that the BBC should set out its own thinking on the role of the corporation in the future and how the BBC can best adapt to the changing media environment. The review will focus on the BBC’s funding model and will not look at the BBC’s mission and public purposes—that is, its role and remit. Final decisions will be made as part of the charter review, which is where the future role of the BBC will also be decided, and we will certainly want the public and Parliament to be engaged in that process.

As your Lordships’ committee’s report found, there are benefits to the licence fee but its drawbacks are becoming more salient. There are a number of issues at the heart of the debate about the future of the licence fee, and the first point I will address is sustainability. As we set out in our broadcasting White Paper, there are clear challenges on the horizon, posed by rapid changes to the sector, not just for the BBC but for our public service broadcasting system as a whole.

As I outlined in the recent debate we had to mark the centenary of the BBC and explore the future of public service broadcasting, technological advances are moving in tandem with changes to how people watch television. Internet-delivered services are revolutionising how content is distributed and consumed. Some 79% of households with a television set now choose to connect it to the internet. Alongside this, viewers have continued to move away from linear television to on-demand viewing. Two-thirds of households subscribe to video-on-demand services, such as Netflix and Disney+, and YouTube reaches 92% of online adults in the UK.

As noble Lords noted, US-based streamers are increasingly using their significant financial resources to compete very effectively with both our public service and commercial broadcasters. In 2019, the UK’s public service broadcasters were collectively able to spend just under £2.8 billion on new content. At the same time, as my noble friend Lady Stowell said in opening, Netflix alone spent an estimated £11.5 billion on production globally.

The Government have set out a range of proposals to support our public service broadcasters in response to challenges such as these. This includes a new online prominence regime, updates to the listed events regime and expanded powers for Ofcom to regulate larger, TV-like, on-demand providers. We will legislate to introduce these changes when time allows.

On top of these broad reforms, it is vital that we address the specific challenges facing the BBC’s funding model. In this environment, a licence fee linked to watching live television seems increasingly anachronistic. Licence fee uptake is also in decline, with the number of households choosing to hold a television licence falling by around 1.2 million people from a peak of 26 million in 2017-18. If this trend continues, the BBC’s licence fee income will come under increasingly significant pressure unless the licence fee is raised commensurately. The director-general and chairman of the BBC have acknowledged this, with the director-general recently saying that the BBC is open-minded about new funding mechanisms.

The Government agree with the view that has been raised today that the licence fee funding model is unfair. As noble Lords have noted, it is a regressive tax. The current licence fee model also involves enforcement by criminal sanction, which we see as disproportionate in a modern public service broadcasting system, particularly because of the strain, stress and anxiety that this can cause people. These concerns about fairness are highlighted by data that show that around three-quarters of people who are convicted for television licence evasion are women—an issue that has persisted for many years. In addition, we remain concerned about the risk of prosecution for vulnerable older people, although the BBC has confirmed that no enforcement action has been taken against people over the age 75, at this stage.

The future of the BBC is a vital issue for our nation and we remain committed to reviewing its funding model. The Secretary of State was clear in her recent appearance before the Digital, Culture, Media and Sport Select Committee in another place that the BBC is a great national institution, and that the Government need to make sure that its funding is sustainable over the long term. She also set out that she holds fairness and choice to be important issues, and that they will need to be reflected properly as we consider the future of the BBC’s funding. The media landscape has changed, and the appetite for choice—an important factor—has been enhanced.

The Government want to work constructively with the BBC on the review. We see it as a positive opportunity for the corporation to bring about change, without which the BBC will be increasingly constrained in its ability to fulfil its purpose. We will need to work with the BBC to understand how different funding models could affect and support it.

It might be helpful for me to outline how the review fits into the Government’s wider road map for reform of the BBC. The funding model review will be one part of the preparations for the charter review, which is the process whereby any decision on a new funding model, and on the role and remit of the BBC, will be determined. The funding model review will aim to provide the Government with the evidence to approach the charter review with a strong understanding of the options and their potential impacts.

With the support of these findings, the Government will carry out a formal consultation on any changes to the BBC’s funding model as part of the next charter review. This will enable a public debate on the options, ahead of any decision being made. Any final decision on the BBC’s funding model over the next charter period would be made only following this public and parliamentary engagement, as part of the charter review.

A number of noble Lords rightly paid tribute to the work of the BBC World Service. The Government strongly value its work in promoting our values globally through its independent and impartial broadcasting. We recognise the challenging fiscal environment in which the BBC is operating, and that it is having to make tough financial decisions, but the Foreign, Commonwealth and Development Office will continue to provide the BBC World Service with over £94 million annually for the next three years, supporting services in 12 languages and improving key services in Arabic, Russian and English. That is in addition to nearly £470 million that the Foreign, Commonwealth and Development Office has already provided, through the World2020 programme, since 2016. In the current financial year, the Government are also providing the BBC with an additional £4.1 million of emergency funding to support the World Service to continue to deliver services in Ukraine and Russia, which are vital in the current circumstances.

I will touch on the future of the BBC more broadly. Everyone who has spoken today agrees that the BBC has been informing, educating and entertaining us for 100 years, with remarkable effect. We want that to continue for many years to come. As the debate today has highlighted, the future success of the corporation is about much more than just funding. Your Lordships’ committee’s report contained a number of recommendations for the BBC on this theme too, including the need for it to develop a long-term vision for its role and how it will deliver value and distinctiveness in a continually changing world.

We agree with the BBC on the need for the corporation to reform over the coming years and recognise that there will be challenges as it makes this transition. These reforms will involve difficult decisions, as was demonstrated by the concerns raised again today about the BBC’s plans to reduce its local radio output. The Government want to work with the BBC to support it in making this shift, but it must take audiences with it on this journey. We believe that the BBC needs to clarify how it will manage long-term decisions while modernising and becoming more sustainable, while also maintaining its core public service function and output.

The noble Baroness, Lady Rebuck, invited me to say a little about our progress on delivering nationwide gigabit connectivity, which is important to the way that people increasingly consume television. We are investing £5 billion, as part of Project Gigabit, to ensure that hard-to-reach areas of the UK get fast, reliable broadband as swiftly as possible. Gigabit coverage is currently at 72% across the United Kingdom, up from 6% in January 2019—a huge shift in a short period. We have a target for a minimum of 85% gigabit-capable coverage by 2025 and we will seek to accelerate that to as close to 100% as quickly as possible. We have now awarded four Project Gigabit contracts, having recently announced a £108 million contract in Cumbria—the home of the noble Lord, Lord Liddle—and there are a further 11 live procurements running, with more in the pipeline.

Like everyone who has spoken today, the Government want the BBC to succeed. It provides high-quality services to the entire nation and globally. It acts as a key driver to the success of our creative economy and represents the United Kingdom very proudly abroad. As the debate has highlighted, there are challenges with the licence fee funding model, but alternative models also come with their own challenges and trade-offs. I am very grateful to noble Lords, particularly the members of your Lordships’ committee, for their detailed thoughts and contributions to this vital debate. I look forward to that continuing.