Pension Schemes Bill [HL]
Lord Warner ExcerptsWednesday 4th March 2020
(4 years, 9 months ago)
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Baroness Neville-Rolfe
My Lords, I have tabled Amendment 83, which sets a deadline for a review and is essentially probing in nature.
I am unashamed. I want to put pressure on the Government to do something—and fast—about the impact of the cap on senior or long-serving doctors and consultants. We have a mini-crisis here which dates back many months, and the situation is even more serious given the potential impact of Covid-19. I join others in commending the Secretary of State and the CMO for today’s all-party meeting, and for setting out all that is being done to manage this alarming virus—including encouraging clinicians out of retirement.
There is a pension problem. As my noble friend Lord Balfe told Parliament on 30 October, a BMA survey showed that 42% of GPs and 30% of hospital consultants were reducing their hours. There have been similar figures from the Royal College of Physicians. Doctors are attracting substantial tax bills to care for their patients, and are therefore reluctant to do extra sessions to clear waiting lists or to take on management. There are reports that as many as half our doctors are retiring younger than they used to and that the lowering of the annual allowance from £255,000 in 2010 to £40,000 today, and the increase in the retirement age to 65, may well be factors.
The situation is worse in hospitals than in GP practices, mainly because the latter earn less. However, GPs can be caught out if their practice income peaks temporarily because of a vacancy or because a doctor is missing. The reward for all the extra work and stress can be an extra tax charge. This is especially difficult for small practices, which, unfashionably, I have found to be the best, because they provide continuity of care, which saves on drugs bills and hospital costs. However, that is a matter for another day.
That brings me to hospital consultants, who are generally better paid than GPs but are critical to patient outcomes. I will never forget the lady consultant at King’s who managed me through the latter weeks of a pregnancy, when my youngest son refused to move.
The situation is serious. The impact of the coalition fix—to allow people to carry forward unused allowance from the previous three years—is, I think, running low. The DHSC consulted recently on proposals to allow senior medical staff to opt to build up a pension at a lower rate. This was, however, dismissed by the BMA as a sticking plaster. Understandably, it wants a change in the rules. As always, given the noises made by senior politicians, there is much hope—including on my part—about next week’s Budget.
What, therefore, can and should be done? I look forward to hearing from other noble Lords who have been kind enough to support this amendment, and from the noble Lord, Lord Warner, whose Amendment 86 proposes new regulations to ensure that NHS pension scheme members are reimbursed if they are worse off. I look forward to hearing how that would work.
Other approaches might include getting rid of the annual pension cap—the so-called annual allowance—and relying entirely on the lifetime allowance, which has been reduced over time. Alternatively, and perhaps more radically, we could move relevant senior medical staff on to non-pensionable pay, above a certain level, but pay them as salary the notional employer pension contribution that they miss out on. They would have a higher tax charge, but they would not be punished for working, which I think is the concern.
Many very intelligent people have spent hours trying to fix this problem, so it probably is not easy. There are ways to do it, and we must have a solution by the time this Bill reaches Report if the NHS is to overcome today’s growing challenges.
Lord Warner (CB)
My Lords, Amendment 86 is in my name and those of the noble Baronesses, Lady Altmann and Lady Janke. It is a rather simple amendment for tackling a complex problem that is, as the noble Baroness, Lady Neville-Rolfe, has said, causing a great deal of damage to the NHS and to patients.
I will not go into the intricacies of the interrelationship between pensions and tax policy, or repeat the data that I laid out at Second Reading about how this is affecting doctors. The noble Baroness, Lady Neville-Rolfe, has given a reprise of some of that data. There is plenty of data showing the impact on doctors and the NHS; you do not have to look very far to find it. Noble Lords will therefore be relieved to hear that I will not go over that ground again.
The point of this amendment is to address what is happening on the ground now in our NHS. We have arrived at a situation in which doctors can neither control their pension growth nor predict their tax bills; that is where we have got to. Tax bills cannot be calculated until the end of the tax year in which the tax has been incurred; by then it is too late for doctors to adjust their earnings. In some cases, the tax bill exceeds the entire take-home pay that the doctor would earn in a given tax year. We are getting to the point where doctors have to pay to work: that is the situation we have created.
The only way that they can avoid the tax bills is to reduce their work in anticipation, which is what they are doing. I have previously set out the implications of that form of workload reduction, so I will not repeat them, but they include, in many cases, taking early retirement. The serious implications this has for patients and the running of the NHS needs no exaggeration. Suffice it to say that there has been a very large decrease in NHS medical clinical capacity, with very serious implications for patients and the functioning of the NHS. The latest BMA survey of 6,000 doctors shows that even more doctors, in this year and in the past, are planning to reduce their work commitments in the tax year, which is only a month or so ahead. This is why the situation is incredibly urgent.
This problem was so serious that NHS England acted to take the unprecedented step of agreeing to cover annual allowance payments for NHS doctors for the current tax year to try to ease the significant winter pressures on the NHS. At present, as far as I know, there is no plan to suggest that this short-term mitigation will continue into next year, let alone the longer term. It is all very well for the Government to pass last week an NHS Funding Bill, but if there is a serious shortage of doctors, it will not do patients much good.
The Government have been reviewing this problem for some time, but my information from the BMA and others is that they have not so far offered any worthwhile mitigation scheme. All that is available is the option of paying these large tax bills from future pensions by generating a loan against your pension which attracts a high rate of interest and effectively reduces your pension. This option will not reduce the outflow of doctors. Amendment 86 requires the Secretary of State to extend the NHS England scheme on a permanent basis. It also prevents doctors incurring any interest-bearing loans that will reduce their eventual pensions. It has been prepared with the help of the clerks, for which I am grateful, and discussed and agreed with the BMA and other professional bodies.
I am not saying that my amendment is the only solution to the problem—the noble Baroness, Lady Neville-Rolfe, has given some other options—but it is an attempt to apply an urgent response to stop more doctors leaving the NHS or reducing their capacity. If the Government can come up with a better solution, I will be delighted. So far, there is no sign of a solution acceptable to the profession that would stop the NHS haemorrhaging doctors.
Let us remember again that the new tax year starts in a month, and that the coronavirus epidemic threatens all of us. I listened yesterday to the Prime Minister and the Health Secretary referring to bringing back retired doctors; that seems to be an important part of their emergency plan for dealing with a potential epidemic. I wonder how aware they and their No. 10 special advisers are of this own-goal lurking in the bureaucracy. We can ill afford to lose doctors from our NHS through a self-inflicted government muddle when a solution is to hand.
Baroness Janke (LD)
My Lords, I too have signed both amendments which, as has been said, relate to the current situation of the punitive pension taxation on doctors in the NHS. The annual allowance means that retired doctors working additional hours may incur large tax bills even if they have had only a modest rise in pensionable pay; and the taper results in a further problem, as there is an effective tax cliff edge where people can incur additional tax bills of up to £13,500 if they cross the threshold by as little as a pound.
This huge disincentive to retired doctors who are working to fill staff shortfalls in the NHS has exacerbated the existing pressure. As the noble Lord, Lord Warner, said, the impact was such that NHS England took the step of agreeing to cover the annual allowance payment for NHS doctors for this tax year as a temporary mechanism. As he also said, it seems that so far there are no plans for this to be a long-term solution.
Baroness Altmann
I take my noble friend’s point on the specific proposals in Amendment 86 in the name of the noble Lord, Lord Warner, which I have signed. However, were the amendment to be redrawn to suggest that an extension of the current arrangements for 2019-20 be brought forward also into 2020-21, would that address my noble friend’s concerns about the unauthorised scheme payment and the charges to the scheme? We could time-limit this but also address the urgency, because even if something is reported in the Budget, it is unlikely that the staff will have the reassurance for the forthcoming tax year, which is only a few weeks away.
Lord Warner
I just want to amplify the point made by the noble Baroness, Lady Altmann. Those of us who have been around in government for some years know that the announcement of review reports in Budgets do not necessarily mean that anything in those reviews will be rapidly implemented. My suspicion would be that any such reviews would have a longish period of consultation and would not appear in the next finance Bill—that is a likely outcome. Building on what the noble Baroness said, I need to go back to my clients—if I may put it that way—who will want to know what the position is. If I prove to be right over what happens on 11 March, would the Government be willing to consider something along the lines of buying two to three years for the NHS doctors? Will they help me get the wording right, so that it does not fall into the elephant traps that the Minister has set out? When we get to Report, we cannot just leave this; we have to come back to this issue with some credible solution. I would be delighted if the announcement on 11 March delivered a quick response, but if we do not deliver a response that covers the next two financial years, we will put the NHS in great peril.
Earl Howe
My Lords, my answer to my noble friend and the noble Lord, Lord Warner, has to be exactly the same as that which I have already given. I can do no other than urge all noble Lords to wait for the Budget announcement. I cannot comment on what ideas the Chancellor has in front of him on this issue. Those ideas may or may not include those that have been articulated by my noble friend and the noble Lord—I do not know. I suggest that we get past next week and then take stock. No doubt noble Lords will consider how best to approach this on Report, if they feel that to be necessary.
Lord Warner
“National Health Service Pension Schemes: tax charges
(1) The Secretary of State must by regulations made by statutory instrument make provision to ensure that the National Health Service Pension Schemes reimburse their members for pension tax charges to the extent necessary to fulfil the objective of subsection (2).(2) The objective of this subsection is that in any tax year, for a member of the National Health Service Pension Schemes, the member’s income less annual allowance pension tax charges is not smaller if the member’s income is greater.(3) A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”
The Deputy Chairman of Committees
Once the noble Lord has spoken, the question has to be put.
Lord Warner
I thought that I am allowed to say whether I am withdrawing the amendment.
Baroness Fookes
It has not yet technically been moved, and you are now moving it. Perhaps I should clarify for the Committee that where there is a group of amendments being debated together, only the first amendment is moved. If a noble Lord wishes to move an amendment, it has to come in its numerical order. The noble Lord was not moving his amendment, he was speaking to it.
Baroness Fookes
Yes, he must move it, because he has started to speak to it.
Lord Warner
I beg to move Amendment 86. In response to the Minister, I think we will need to have some kind of meeting after 11 March, which may involve some of the parties who are very anxious about this. I hope the Minister will take away that thought and get back to me, and to others, when he has had time to consider.
Baroness Fookes
If no member of the Committee wishes to respond, the noble Lord may withdraw the amendment.
Baroness Fookes
I am sorry about the schoolmistressy lesson on the subject.
Pension Schemes Bill [HL]
Lord Warner ExcerptsTuesday 28th January 2020
(4 years, 10 months ago)
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Lord Warner (CB)
My Lords, I rise with the rather dubious proposition that, as the last Back-Bencher to speak in the debate, I should be brief. I will have to take a bit of time because I will talk about something that has not really been discussed this afternoon and I hope to persuade the Government to add something to the Bill that is not already there.
The issue I wish to raise is that of senior doctors’ pensions, where anomalies in the pension taxation system are resulting in doctors having to reduce significantly the contribution that they are willing to make to the NHS, sometimes by retiring early and sometimes by reducing the time they are willing to devote to NHS work. The problem is caused by the tax charges many senior clinicians incur due to exceeding their pension threshold and which can result, in some instances, in them in effect paying to go to work.
Let me illustrate the problem that the current pensions taxation situation has caused with some figures provided by the Royal College of Physicians from a survey of nearly 3,000 members. Of these members, 45% of respondents reported that in the past two years they have decided to retire at an earlier age than planned. In the past two years, 38% of clinicians aged 50 to 65 have reported having had an annual pension tax charge due to exceeding their pension threshold. These numbers are rising, not diminishing. Once the decision to retire is taken it is much less likely to be reversed. We know that senior doctors told the royal college that they are doing so as a result of these tax charges. Some 62% of senior clinicians said that they were avoiding extra paid work such as waiting list initiatives or covering for colleagues; 43% are bringing forward their own retirement; 25% have reduced the number of programmed activities they work. Similar data is available from the Royal College of Surgeons and the Royal College of Emergency Medicine.
I know from my conversations with the BMA—as an ex-Health Minister I still have a reasonable relationship with the BMA—that its members have the same concerns, with the most recent BMA survey of more than 6,000 doctors from hospitals and general practice across England, Wales and Northern Ireland revealing that 42% of GPs have already reduced the number of hours spent caring for patients because of actual or potential pension taxation charges. In addition, 34% of GPs now plan to reduce their hours. Some 30% of hospital consultants have already reduced their hours and 40% have told the BMA that that was also their intention. Data from an earlier BMA Scotland survey had similar findings.
The impact of the pension tax charge is hitting direct patient care. A recent survey by the British Society of Gastroenterology showed that 40% of its consultant membership had dropped at least one endoscopy list. This resulted in 74% reporting a rise in two-week waits for endoscopy for patients suspected of having cancer, with 22% saying that the increased wait was an extra four weeks. It is now the case that figures for cancer waiting times, routine care waiting times and A&E performance are the worst since records began and 11 million patients are waiting more than four weeks for GP appointments. A lot of this is directly related to the pensions problems.
These are big numbers and they relate to an experienced group of doctors that the NHS relies on very heavily. We are seeing losses of senior doctors on a scale not seen before, seriously damaging the NHS and putting patients at risk. These doctors realise that they are in society’s higher earnings band, but even high earners can reasonably expect to be paid for their labour rather than working for nothing or, in some cases, paying to go to work.
In the time available to me I have struggled to find out who is to blame for this mess. It is somewhere in the territory of the Government and employer failure to understand how these tax arrangements would impact many public sector workers, not just doctors. Whoever is to blame, it certainly is not the fault of doctors. They have often been presented with an unexpected tax bill at the end, or even after the end, of a tax year. As far as I can judge, doctors were given too little advance explanation and warning about the tax and pension changes to plan their finances in advance and to mitigate the financial risks. As a result, doctors are now taking understandable steps to limit their financial exploitation.
The profession’s leaders have made all this information available to the Prime Minister, the Chancellor and the Health and Social Care Secretary as part of the ongoing review led by the Treasury. However, in the meantime, senior doctors continue to leave and cut their workloads. Waiting times lengthen. Unless something is done urgently, we will soon reach the end of another tax year and another tranche of senior doctors will receive a tax charge. They will add themselves to the growing numbers deciding to retire early or cut their hours working for the NHS. Every month that passes without a government solution being implemented, the more experienced doctors leave the NHS.
I expect the Minister will tell me that this is a very complicated matter and that a review is under way in time for an announcement in the Budget. However, we are now on to not our first but our second review. So far, the Government have produced just a couple of modest tinkering moves, including a temporary scheme for refunding annual allowance payments at the point of retirement, so doctors can put off paying the debt. The catch about that is that they also charged 5% a year for the pleasure of doing so. These measures have not convinced anybody that the Government are serious about fundamentally resolving this problem.
In contrast to such totally inadequate tinkering is the solution, supported by, among others, the Royal College of Physicians, the BMA and the Treasury’s own advisory body, the Office of Tax Simplification, that the Government should remove completely the annual allowance, including the taper in defined benefit schemes. I recognise that this might cause convulsions in Great George Street and I suggest that maybe a more modest approach would be to require the Secretary of State immediately after the Bill’s Royal Assent to make regulations that enable doctors and NHS workers in the NHS Pension Scheme to pass for payment by the scheme any such transfer of payments tax charges from HMRC, with any such payments attracting no interest or detriment to the scheme’s participants.
Before deciding what to do in Committee, I would welcome the Minister’s response to my two suggestions. One way or another, the Government will have to remove this unplanned tax burden from scarce senior doctors. If they do not, even more patients will suffer and NHS England’s long-term plan will not be delivered. I wish to hear what the Minister has to say.
Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2018
Lord Warner Excerpts(5 years, 11 months ago)
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Lord Deben
I have to say, there are many fates which are worse than death—though I am not quite sure that that is one.
I wonder whether I could go on to the question of consultation. It is very difficult to uphold the argument that there was no need for consultation when you have had to withdraw the SI because, as a result of publishing it, it turns out that there was a need for consultation because a very serious mistake was found in it. If this were the only case—I say this to the noble Lord, Lord Kirkwood—I would be less concerned, but last week and yesterday we found a series of really serious changes which needed to be made which had been brought to our attention by the very industry with which the particular ministry concerned had claimed to have had ongoing and general discussions.
There is, for example, a very major problem for the pharmaceutical industry because there was no such consultation. I do not want to go into detail on that because obviously that is not the subject here, but it is important to say that this is a case where, had there been consultation, there would not have had to have been a second draft of this SI. My noble friend said, “Well, we have changed it”, but she has not. She has not, I think, convinced the House that there might not be something else that needs to be changed. Because you have changed one thing does not mean to say that there will not be any other.
Lord Warner (CB)
Will the noble Lord agree with me, having sat through six sets of regulations which have been negatived, that there is a pattern emerging? Does he agree that the pattern is real doubt about whether there are accurate impact assessments and real doubt about whether any worthwhile consultation has taken place with interested parties? I am asking the question because this is of great importance to the House as a whole. There is a continuing assertion that these were minor and technical issues which did not involve a change of policy; but on further investigation, all showed that there were serious concerns about impact assessments, there were changes of policy, and there were great deficiencies in the consultation. As this House in Grand Committee has negatived six sets of regulations, one after the other, one can be excused for being a little sceptical about assertions from the Dispatch Box.
Baroness Buscombe
My Lords, if I may be helpful to the House, I think I made it clear to all noble Lords that, because of consultation with the industry concerning this fairly niche area within the pensions industry of cross-border activity with the EU, we learned that one word was wrong within the draft regulations. Therefore, notwithstanding what may have happened with other SIs that noble Lords have been debating in recent weeks, with regard to this SI, one word was out of place and, quite rightly, the pensions industry alerted the department, which withdrew the draft regulations. As the noble Lord, Lord Kirkwood, so helpfully stated, the reality is that this happens. It does not happen on a regular basis. I cannot believe that, when my noble friend was Secretary of State, every piece of legislation he brought forward was perfect the first time round.
Lord Adonis
My Lords, I do not accept that for a moment. The whole basis on which we engage in no-deal planning is fundamental to these regulations. If no-deal planning does not have the authority of the House of Commons—and it appears from the vote last week that the other place is not prepared to contemplate no-deal planning—why on earth are we detaining the House at huge length in making clearly unsatisfactory arrangements? They have not been properly consulted on and are leading to regulations that are not properly drafted, in pursuit of a contingency that will not arise. I flatly disagree with the noble Lord.
We are the subordinate House, but it appears that leading Members of the House of Commons are concerned with these affairs. The amendment last week which led to a majority against no-deal planning was a cross-party amendment tabled by Nicky Morgan and Yvette Cooper, two very senior Members of the House of Commons. In moving it, Yvette Cooper said:
“I have heard some say that they want the imminent threat of no deal to persuade people to back the Prime Minister’s deal, if not now, then later. But brinkmanship in Parliament is not the way to resolve this and get the best deal for the country. This is too serious for us to play a massive Brexit game of chicken”.—[Official Report, Commons, 9/1/19; col. 263.]
I entirely agree with that statement and so did a majority. That leads to a huge question mark over the validity and legitimacy of all this no-deal planning and puts a particular duty on this House to see that we do not pass regulations which have been inadequately consulted on, inadequately drafted and inadequately scrutinised in pursuit of a deadline artificially imposed by the Government. The Government have the power to change it if they wish, because the European Union (Notification of Withdrawal) Act 2017, which the noble Lord just referred to, gives them the power to change the exit date and unilaterally revoke Article 50. It also does not appear to have the confidence of the House of Commons in the first place. I hope noble Lords will in no way be dissuaded by the ardent partisans of a no-deal Brexit from giving these regulations the scrutiny which they not only deserve in respect of those affected by them, but which we have a duty to give them if we are to follow the will of Parliament as expressed by the House of Commons.
Lord Warner
My Lords, I am not going to continue the discussion about our previous experiences of SIs. I just have a question that I want to put to the Minister on this set of regulations, prompted by the helpful remarks of the noble Baroness, Lady Drake. To what extent, if any, would this set of regulations require pension funds to shift their investment strategies, which could be deleterious to the beneficiaries of those pension funds?
Lord Warner
May I just correct the Minister, as someone who was highly involved in the Human Rights Act? There was extensive consultation before the 1997 election with a whole raft of interests concerned with that Act. It therefore came as no surprise, and many external lawyers were highly involved in drafting the policy and advising on the legislation. It is simply not true that the Act was suddenly sprung on Parliament without any consultation. It was also in the Labour Party manifesto that it would be introduced after the 1997 election.
Baroness Buscombe
The noble Lord has clarified the situation, in that the Act came in some time after his then party came into power and the consultation took place prior to the general election that brought it into power.
Atheists and Humanists: Contribution to Society
Lord Warner Excerpts(11 years, 4 months ago)
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Lord Warner
My Lords, I too congratulate my noble friend on securing this debate and pay tribute to his staunch commitment to humanism. I declare my interest as chairman of the All-Party Parliamentary Humanist Group. I should say that we need more Conservative members.
Belief is a very personal matter, heavily influenced by life experiences. I started off as a traditional working-class boy going to Sunday school and singing in the church choir, if you can believe it, although the main attraction of the latter was the payments for performing at weddings. Where did it all go wrong? Largely through education and, particularly, the reading and teaching of history: a hefty dose of Darwin, Crusades, Inquisitions and burning witches gets the questioning juices going. By the age of 15 I had total disbelief in any gods, apart from Denis Compton, or any creed based on the supernatural, an afterlife or organised religion. It looks to me as though an increasing number of young people in the United Kingdom are getting to this position as they move, quite swiftly in many cases, to reject religious belief. I should add that I have far more confidence in young people and their values than some have suggested today, particularly their capacity for mutual support of each other, which seems to me to be a strong, socially cohesive value.
The 2011 census shows the number of people identifying themselves as non-religious at 25%, up from 15% in 2001. Perhaps more significantly, people with no religion had a much younger profile, with four in 10 of those with no religion being under 25. The British Social Attitudes survey has shown an even sharper move away from religion, with 41% of people surveyed in the census year saying that they had no religion. The BSAS subsequently looked in more depth at religiosity. This revealed that in 2012 half the population did not regard themselves as belonging to a religion, with this rising to nearly two-thirds of 18 to 24 year-olds. Only 14% of people attend a religious service weekly.
Why should we take these data seriously? As the BSAS said:
“Getting an accurate picture of the importance of religion in people’s lives matters; not least because it influences the role of religion in policy making and public life, and helps guide the allocation of funding and resources”.
What is taking place in our society is generational replacement. Older, more religious generations are dying out and being replaced by generations without any religious beliefs. I hope that I can stick around long enough to see further progress.
The data suggest that Governments and parliamentarians should be more cautious about listening to religious interests when changes in public policy are under consideration. We all know what these policy issues are because they are debated often enough in this House—abortion, assisted dying, embryo research, faith schools, employment law, and discrimination. A whole raft of these issues regularly features. On the optimistic side, I think that we crossed a Rubicon in this House when many noble Lords drew on the views of younger generations in framing their views and casting their votes on gay marriage. Governments now need to pay less attention to the views of organised religions in the framing of public policy and treat them like any other pressure group. Their views should be listened to but given no more weight than any other set of interests.
The media, especially the public broadcasters, also need to think about these changes taking place in the beliefs of their viewers, listeners and readers. How does the BBC reconcile a head of religious affairs with a quest for younger audiences? Perhaps more controversially, what about the constitutional implications for the monarchy? How can a sovereign be crowned as a defender of the faith if not only a minority of the citizens do not hold that faith, but the majority have no faith at all? On current trends that could well be the situation before the latest royal arrival comes to the throne.
I am not a fundamentalist secularist but I have concerns about the growing tendency to shape public policy in response to religious interests when the evidence shows that our society is moving away from religious belief. Groucho Marx posed the question, “Would you want to join a club that let me in?”. I am very happy to be a member of a club that includes, among others, JK Galbraith, Aldous Huxley, Margaret Sanger, Robert Oppenheimer, Bertrand Russell, Jonas Salk, James Watson, Gore Vidal, Mark Twain, Philip Pullman and Sigmund Freud. I could go on, but I thought that I would give noble Lords a list of personal heroes. It is a cause for celebration that more people in the UK seem to be moving toward that club’s membership. The data suggest that the tide of UK history is moving against religiosity and politicians, the media and the monarchy need to reflect on that.
Young Offenders: Employment and Training
Lord Warner Excerpts(12 years, 2 months ago)
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Lord Warner
My Lords, I congratulate my noble friend on securing this important debate. I agree very much with what she said. I want to speak in more systems terms from my experience in designing Labour’s reforms of the youth justice system after 1997 and my six years as a director of social services in Kent, helping youth people in care and young offenders.
It is a sad fact that so many young people who have been in care end up in our prisons, often from a young age. Many of these young people have been failed by society and the state, in whose care they have been. Their educational attainments are often modest, with literacy and numeracy skills among the lowest in our society. Too many have addiction and mental health problems inadequately addressed by public services. They have too often experienced a pattern of being let down by adults, rejected by their families and not helped to cope with family losses. They can too easily drift into offending after homelessness, exclusion from school and a lack of the skills to compete in today’s job market. By the time they end up in custody, they often have complex needs that cannot easily be addressed by any single agency.
Labour’s youth justice reforms tried to address those needs through radical changes to the structures for handling and supporting young people under 18 at both the local and national levels. At the local level, these provided for multi-agency—that is important—youth offending teams with a single budget and easier access by team members to the services of their own agencies. At the national level was a Youth Justice Board for England and Wales, supporting and performance managing youth offending teams, purchasing custodial places and carrying out research, with a budget for driving change, including bidding for money from government departments for new schemes such as preventive measures.
I do not want to claim that everything we at the board did was wonderful. We certainly had many critics—the board still does. We would not engage in a popularity contest and we could be critical of both local and national bodies. But over a decade or so, and with the wonderful work of the YOTs, the board halved the number of young people committing their first offence and cut by a quarter the number of young people locked up. This record produced the support in this House for the Government stopping the abolition of the Youth Justice Board in the Public Bodies Act. All other groups of offenders have seen their prison populations rise over the same period, so maybe there is something in this systemic approach that we need to learn from.
I do not tell this story for vainglorious reasons but to emphasise the merits of targeting a specific group of offenders and tailoring a set of services and approaches to that group’s very specific circumstances and needs. You also have to put in place local and national mechanisms, processes and organisations, properly funded, that can deliver a complex set of service responses over time. You have to stick with the agenda, irrespective of who is in government. It takes time and effort to change offending behaviour. Short-term programmes and quick fixes do not work. They only let down young offenders and the many splendid staff who try to work with them.
Our failure has been not to apply the same logic to young offenders aged 18 to 21—preferably up to 25—that we applied to the under-18s. That does not mean the same services but the same systemic approach. Older young offenders often have similar needs to the 15-17 year-olds in the reformed youth justice system. They do not just need employment and training but levels of personal support and development to stay away from drugs, stay away from other addictions, stay away from bad company—as the noble Lord, Lord Bates, mentioned—and secure and retain the jobs and training that they need. Above all, they must have access to accommodation. Homelessness is not a basis for reforming young people who are offending.
I do not have time to map out my programme for young offenders over 18 but this Government—or any future Labour Government—need to learn from the experience of the youth justice reforms and develop the same targeted approach to young offenders over 18, dealing with their specific needs, if we are to keep more of them out of prison and help them become productive and participative members of our society. Can the Minister say what will be done specifically to meet the needs of 18-21 year-old young offenders to cut significantly the numbers of them ending up in prison?