National Citizen Service Bill [HL]

Lord Stevenson of Balmacara Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Tuesday 22nd November 2016 Grand Committee

[Lord Blunkett (Lab)]

I have no amendments in this group, so I hope that noble Lords will forgive me for speaking briefly. It is unarguable that we should have the maximum transparency for the new body and sensible measures of comparability. We should be able to take account of value for money and impact, although those are two separate things: value for money is crucial in the wise use of public expenditure, whereas impact—this is why the longitudinal study is so important —is what happens down the line. I just caution the voluntary sector to be careful what it wishes for in terms of other organisations receiving varying amounts of public funding while requiring for others what they might find difficult for themselves.

To put that in context, in the last Parliament I was asked and was happy to be the transitional first chair of Youth United, which sought to bring together the uniformed organisations to increase impact in areas of deprivation. The need to do that, pressed by His Royal Highness Prince Charles, was that, on the whole, those areas of great deprivation were not covered in the same way and the impact was not as great as would be expected or desired. Some of the money that went in came from the LIBOR fines. When those fines are levied, they become public expenditure, albeit, as we might describe it, as “the Chancellor’s slush fund”, where there is as little transparency and openness as I have ever come across, in bidding processes or in acknowledgement of what has happened to the money down the line.

I just counsel that we build in the necessary requirements to ensure that money is used extremely wisely and we do not, to use the words of the noble Baroness, Lady Barker, go down the road of Kids Company. We need to be clear what we expect of the outcomes. As I tried to say on Second Reading, that is not just about numerical targets; it is about outcome measures as to how the impact is held on to, in terms of those young people—where they have come from, where they go to and their participation post the NCS experience. I just repeat: for big and small organisations alike, be careful what you wish for.

[Lord Stevenson of Balmacara (Lab)]

My Lords, those are wise words and they will ring in the ear long after my noble friend Lord Blunkett has uttered them. We should bear them in mind throughout this debate.

I do not want to say much about this, because the purpose of these probing amendments is to invite the Minister to reflect on how he wishes to take this forward and we should listen to him carefully. I will make two points. First, what is decided about the reporting functions must be the corollary of what we have decided about the structure. Rather than repeating the debate on the first amendment last week, I think that it is obvious that, if the structure adopted is the royal charter body, for example, it will bring with it the implications of a non-departmental public body. Therefore, the auditing by the NAO will be brought to the Public Accounts Committee and there will be a virtuous cycle of accounting and reporting, which we are well used to and will probably cover one aspect of this.

On the points that have been made more generally, this organisation will serve a much wider public purpose than simply to operate a number of courses or to commission those courses. The report is to Parliament, which raises much wider questions about what you would need to do. As has rightly been said, many of these measures are not numerical, so it would be interesting and challenging to see how one could frame that in a way that would both be a formal account—a measure of the consumption of resources and the impact of those resources in terms of diversity and reach—and provide information that will allow those who have to engage with this body to anticipate and work closely together with it. I echo the wise words of the noble Lord, Lord Hodgson, about the need for a broader cut through this—not just an annual report, but a commissioned report looking at some of the wider indices. That might be annual, but I agree that it perhaps needs to happen a bit later. That might be a way of framing this. I look forward to hearing what the Minister has to say on the matter.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

I am grateful to all noble Lords for their contributions. A large number of amendments in this group are to do with reporting requirements or the business plan. In the interests of time, I will be brief in my response. I hope I do not come across as negative, because I do not mean to be. We are grateful for suggestions of improvement to the Bill, which has received almost unanimous support, and I realise that these are meant to be constructive. We are listening and will take careful note of all the points raised. As I agreed last week, there are some areas which we can explore further, such as reporting on disabled participants.

There was a recurring theme in many noble Lords’ contributions: there are many other things they would like the NCS to do. I want to make the point at the outset—because it goes through the whole of Committee stage—that we are very keen that the NCS concentrates on what it is meant to do and is doing well and we do not want it distracted. From my experience, this is a fatal temptation in business and in government programmes. As I said at the beginning of Second Reading, we want the Bill to set up the NCS in perpetuity so that it is able to do, and to continue to do, what it has been doing well.

Nearly 20 amendments have been tabled specifying additional reporting requirements for the trust, in addition to the seven requirements already in the Bill. I hope that the Committee sees that this risks being excessive, bearing in mind that some noble Lords have argued cogently that we must not stifle this enterprising and growing organisation. There must be a balance between the reporting essential to maintain public confidence in the NCS and allowing the trust space to focus on quality delivery. While we think that we should keep the mandatory reporting requirements in the Bill at a high level, I propose that the Government write to the trust to seek its assurances that its reporting will be thorough and will take into account the views of this House, as expressed in the various amendments. I am happy to commit to doing that.

Amendments 19 and 23, in the names of the noble Baroness, Lady Finn, and the noble Lords, Lord Maude and Lord O’Shaughnessy, would restrict the NCS Trust’s annual report and business plan to refer only to its primary functions. On the one hand, for understandable reasons, the noble Lords want to minimise reporting requirements; on the other, it is clear from many other noble Lords, who would like to add reporting requirements, that they feel that the report and business plan should refer to the full breadth of functions as set out in the royal charter. These are the tools through which Parliament and the public can hold the NCS to account. I hope noble Lords will see that we have tried to strike a reasonable balance with the reporting requirements in the Bill.

I thank the noble Baroness, Lady Barker, and the noble Lord, Lord Wallace, for their amendments. Amendments 21, 28 and 39 relate to how the trust consults and collaborates with the voluntary sector. The noble Baroness, Lady Barker, asked about the cost. In 2014, the average cost per participant was just over £1,500. This does not include overheads and we do not have a combined figure for those. Of course, value for money is one reason why the NAO is involved under the Bill. The NCS does not, and should not, exist in isolation. NCS graduates already have access to an online opportunities hub, which promotes volunteering opportunities. The trust’s primary functions require it to ensure that the NCS is accessible to all. If it is to do this, it will have to collaborate with other organisations with the right reach.

That being said, the NCS Trust is being established to arrange for the delivery of the NCS programme—to commission services. It is not being established as an infrastructure body, or representative body for the voluntary sector. Therefore, it would not be right to mandate the trust to report on how it has resourced the voluntary sector, as Amendment 28 would prescribe. The trust works with more than 200 providers, over 80% of which are public or voluntary sector organisations. They are resourced by the trust by entering into a contract with it, but the trust’s purpose is not specifically to resource the voluntary sector. Asking the trust to report on this, therefore, is not appropriate.

We agree that the trust’s relationship with the voluntary sector is vital, but we believe it is the trust’s job to report on its performance to Parliament. Other organisations would have a perception of the trust’s performance based only on their interactions with the trust or the programme. That will, in every case, be limited in some way. We do not believe Amendment 39 to be an appropriate ask of the trust as it is not necessary to require it to consult with the sector before completing an annual report. Furthermore, the trust does not contract with voluntary sector organisations alone; it oversees many relationships across the private, public and voluntary sectors to achieve its core aim: the provision of the NCS in England.

Amendments 29 and 33, as well as Amendment 30 tabled by the noble Baroness, Lady Royall, consider how the NCS sits alongside other programmes. The NCS has a specific structure. It is two or four weeks long and while different providers bring different approaches, all of them have to deliver the core components of the NCS as co-ordinated by the trust. Whether or not it is unique—I realise that there are different interpretations of that word in relation to the NCS—it is a short programme, designed to be accessible to all young people. It cannot be compared with much longer or part-time programmes.

Having said that, the trust must always look to learn from the youth sector, in this country and abroad. Where there are programmes that deliver outcomes similar to those of the NCS—social cohesion, social engagement and social mobility—it is the trust’s job to draw on best practice and shared learning. This year has been a case in point. The trust is co-ordinating an autumn pathfinders project, working with 18 organisations that are trialling innovative methods of delivering the NCS to help extend its reach into local communities.

Amendments 29 and 30 would require the trust to compare its value for money with that of relevant programmes. We have to be careful that anything we ask of the trust in statute is a duty it can reasonably be expected to fulfil. It would not be practical to mandate the trust to compare its outcomes with the value for money of other programmes. It would need to have significant amounts of information about other schemes to accurately compare value for money. This is not information that the trust can or should be expected to gather.

Amendment 31 would require the trust to report on its efficiency and effectiveness. I will respond also to Amendment 36 from the noble Baroness, Lady Royall, which would require the trust to report on how it has met its targets. I can be clear on both points. While the trust will report on its performance with rigour, the National Audit Office will become its auditor. The Bill will ensure that the NAO has the power not merely to audit the trust but to conduct reviews into its efficiency and effectiveness. This will include the extent to which it has achieved its targets. The NAO will undertake these reviews robustly. Therefore, we do not think it necessary to require the trust to report on this as well. Its accounts will be open to sufficient scrutiny by the NAO and Parliament.

Amendments 32 and 34 concern reporting on the trust’s board. The Government agree that the make-up of the board is very important, but the trust does not entirely control board appointments. It is the monarch, acting on the Prime Minister’s advice, who makes the final appointments, following a competition run by the chair. It would therefore not be reasonable to expect the trust to report on something over which the Government have the final say. The Government will, of course, have to comply with the public sector equalities duty when making these appointments, so they will need to take the considerations raised here firmly into account. Independence and integrity are requirements under the public appointments code. Appointments will be made after competitions that are fair, open and merit-based. The royal charter provisions will ensure that the Government have sufficient oversight of the trust’s members, meaning that they will not have to rely on the trust’s self-reporting each year. They will, on a continual basis, be able to ensure the diversity, independence and integrity of the board.

I thank the noble Baroness, Lady Royall, for her contribution. Her Amendment 25 raises a useful point of clarification. It asks that the reporting on the number of participants includes those who have completed the programme. The Bill specifies that the trust will have to report on the number of participants for each year and I assure the noble Baroness that this will include the number of young people who graduate from the NCS.

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Moved by

[Lord Stevenson of Balmacara]

22: Clause 5, page 2, line 27, at end insert “preceding the year”

[Lord Stevenson of Balmacara]

My Lords, we have just had classic probing amendment debate which is being replaced by the debate on my group which is, of course, a series of laser-like pounces on the drafting of the Bill. I apologise for dealing with such nitty-gritty, but they reveal one or two other things behind them. I will make the points very quickly and look forward to the response.

My first point is on the timing of the business plan. Business plans are business plans and they will change and vary as we go forward, but as the business plan is in the Bill, attention is drawn to it. The Bill currently states:

“The Secretary of State must lay a copy of the published business plan before each House of Parliament”.

That is presumably because it is the intention of the Secretary of State to get the views of Parliament, if any, on the business plan.

That sets up my next point, which is that the business plan has to be published before 1 June in the financial year concerned, which seems slightly odd. First, why June? The peak of the activity of the NCS will usually be over the summer period, which gives rather a short period to allow anyone to comment on the content of the business plan. Secondly, most people would want to comment on a business plan before the year in which it takes place, so to do it in the June of the financial year of the programme suggests that two months will have already elapsed and the money will already have been spent, so it limits the effectiveness of the comments. I suggest to the Minister that there is a problem here, in which case the dates might be changed, but if that is the intention, then a slight change in the phrasing to suggest that the business plan must be published no later than 1 June of the year in question might give us a better chance of making sure it is available in time to have some serious comments available to the organisation.

We are now all too well aware of how easy it is for royal charters to be changed by Ministers. Amendment 48 would restore balance to the process. The Bill would state that the charter may be amended provided that no amendment contradicts the NCS Bill once it has gained Royal Assent. I understand that the Bill is meant to be superior to the royal charter, but it would surely be bad practice to have a Bill that says one thing and a royal charter that says another, although I have discovered one mistake to that effect. I therefore suggest that a change should be made so that an amendment can be made to the charter only if it does not contradict the NCS Bill. I look forward to support for that idea.

I am concerned about the transfer scheme in the schedule but not because there is anything wrong with it. It is good that the schedule provides the proper requirement that good consultation takes place, but it goes on to state in paragraph 5(3),

“it does not matter whether consultation takes place before or after the passing of this Act”.

That seems a little cavalier to the staff interests which might be involved. I know it is a small organisation and it may be that there are other procedures that I am not aware of, but in this case I wonder whether the Minister might take this back and consider again whether the consultation should be completed before the Act is concreted, because it will set out the arrangements under which the staff are to be employed. In a parallel way, Amendment 54 asks that the unions, should there be any involved in this, and I hope there are, should also be involved in that process. I beg to move.

[Lord Ashton of Hyde]

My Lords, I thank the noble Lord for raising those points. To take them in order, on Amendment 22, the fact that the business plan is being published before June in the financial year with which the plan is concerned is intentional. The business plan needs to cover the forthcoming work. I agree that ideally we would want it as early in the financial year as possible. We have allowed the NCS Trust a reasonable period of time to produce the plan, but the requirement to publish it before June will ensure that it will precede the bulk of the year, to include the trust’s busiest time, as the noble Lord mentioned, which is overseeing the programme during the summer holidays. I will think about the noble Lord’s suggestion of “no later than June” as opposed to “before June”. I cannot see that it makes a huge amount of difference, but I will certainly think about it, without any guarantee of doing anything about it.

The noble Lord’s Amendment 48 mirrors what is in Article 15.1 of the charter by making it explicit that amendments to the charter must not contradict the provisions of the Bill. The noble Lord could not resist mentioning that he had found a difference between the Bill and the charter, but I acknowledge it. It is perfectly reasonable for him to mention it yet again. I assure the noble Lord that the Bill, when enacted, will have primacy in law over the royal charter, as he said, which is an essential legal principle. However, given that the charter governs how amendments to its own contents can be made, I argue that the requirement need sit only there.

Amendments 53 and 54 concern Schedule 1, which outlines the transfer scheme for the trust. The Government and the current NCS Trust agree that conducting a proper consultation prior to Royal Assent, which we hope will be early next year, would not be practical. We would want to make sure that it is exactly that: an open consultation, which gives all relevant stakeholders the time to give their considered views. Other noble Lords, including the noble Lord, Lord Blunkett, have been clear that the transition between old and new bodies will need time. The Government agree. I agree to write to the noble Lord about transition arrangements. We expect this to take between 12 and 18 months. The staff consultation is a critical element of this. We should not be rushing into it now before the rest of the transition has begun.

We agree with the noble Lord’s point on Amendment 54. Schedule 1 requires the Secretary of State to consult with those persons considered likely to be affected and those that appear to them to represent their interests. I can clarify for the noble Lord that the existing clause is designed to capture, in the usual way, staff and unions as appropriate. I hope I have laid out the Government’s ambition clearly and that the noble Lord will feel able to withdraw the amendment.

[Lord Stevenson of Balmacara]

I thank the Minister for his consideration. I am sorry that there was a 0-4 scoreline, but these things happen. I beg leave to withdraw the amendment.

Amendment 22 withdrawn.

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[Lord Lucas (Con)]

My Lords, since this is HMRC and it refuses to use email, presumably this is printed material. If it is sending it out to this group of kids, that is a couple of million kids a year and their parents, at £1 a time when you include the postage and the printing. This is not cheap stuff. I read the wording of this clause to allow the National Citizen Service to include anything in here. It says what is in here. It can include advertisements for other charitable services or perhaps for a bank to raise a bit of money for itself. This seems a very widely drafted clause, and I am not at all sure that it achieves the purposes that have been set out for it.

[Lord Stevenson of Balmacara]

My Lords, I have an amendment in this group. This is one of my favourite topics. I have raised it in every Bill I have worked on, with no success at all, usually to substitute “must” for “may”. On this occasion, I noticed rather late in the day that there are two “mays” in this clause, and I have to be careful that it is not the first one, because that would play directly into the hands of the noble Lord, Lord Cope, who has made quite clear his reservations about this arrangement, which is going to provide the necessary oxygen to try to fuel the excitement that will be felt right across the country when letters drop into the houses of those who might be eligible to join. He might want to hold his choler a little longer because the Digital Economy Bill, which is coming down the track very shortly, contains swathes of permissions for data to be shared, not only within Whitehall, which is perfectly understandable, but wider, to local authorities and others. The noble Lord ain’t seen nothing yet. It is going to be quite interesting to see how that plays here.

I am sorry to have taken up the Committee’s time. My amendment deals with Clause 9(3) in the context of communicating information. I think it has probably come from the draftsman’s pen because “may” and “must” are drafted as “may” throughout. There is probably a word processor instruction to make sure that no “musts” ever appear. But surely on this occasion we are talking about information that has to be derived by the NCS from its own resources, and it must be that information that goes out. Therefore, it is right on this occasion that it should be “must”.

[Lord Ashton of Hyde]

My Lords, I thank noble Lords for bringing us to Clause 9 and the new power for HMRC, which has caused a lot of comment in the course of the Bill. I reiterate that this is not the only marketing measure the NCS Trust will use. Your Lordships need only to look at its Twitter account to see its social media presence. However, this power is a means of ensuring, as far as government can, that as many young people as possible have the opportunity to hear about the NCS. HMRC will send on the information but it will not feel or look like an HMRC communication. My speaking notes say it will be colourful and exciting—I am sure it will—and it will be written by those at the trust who know how to communicate with young people effectively.

Amendment 42 in the names of the noble Baroness, Lady Barker, and the noble Lord, Lord Wallace, alludes to the importance of ensuring that the cost of HMRC writing to young people is value for money. The charter specifies that in all it does the trust must have regard to value for money and I think this is a principle that we all agree on. HMRC will recover the costs it incurs from the use of its staff, time and resources. These costs will therefore be met from the budget allocated to the NCS rather than from HMRC’s own budget. It is HMRC policy to do so and therefore, as an operational matter, it will need to inform the Secretary of State for Culture, Media and Sport. The expenditure will therefore be included in the NCS expenditure listed in DCMS’s accounts.

The noble Lord, Lord Stevenson, raised the subject of who will be the author of the information HMRC sends out to young people or their parents or carers. I made the point that HMRC will act almost as a delivery service for the NCS Trust—a post person, if you like. The noble Lord’s amendment is in keeping with that in changing the ability for the trust to determine the content of the communication into an obligation to do so. Although “may” is one of my favourite words, we agree with him. This is something I intend to return to on Report.

On my noble friend Lord Cope’s wish to omit the whole clause, I understand his point. As a humble Treasury Whip, I too stood at the Dispatch Box and argued for the need for confidentiality of HMRC information, because it has been shown to aid taxpayer confidence and therefore increase the tax take. However, I respectfully disagree with the argument that this will open the floodgates. HMRC is using the data—only names and addresses—on the NCS’s behalf specifically to prevent it leaving HMRC custody and to keep it confidential. It will maintain its centuries-old commitment to keep confidential all information about individual taxpayers. In fact, this is about not taxpayers, but child benefit recipients. HMRC suits this purpose because it has central government’s best data on young people because of child benefit data. At the age of 16, young people receive their national insurance number from HMRC, which marks the transition to adulthood. At the same time, they become eligible for the NCS, an experience we want to become a rite of passage. The same is not true of road safety or flu jabs, which are ongoing concerns and have a closer affinity with other parts of the public sector, such as the NHS and the DVLA.

With those explanations, I hope noble Lords will feel able not to press their amendments.