Financial Services and Markets Bill

Debate between Baroness Winterton of Doncaster and Emma Hardy

Report stage
Wednesday 7th December 2022 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

If there are any other right hon. or hon. Members who cannot stay for the wind-ups, they should let me know. I was not aware that the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell) could not stay. It is important that people stay, so I would not necessarily have called him.

[Emma Hardy]

I rise to speak to new clauses 22, 23 and 29 and amendments 19, 21 and 22 in my name, which are all about financial inclusion. I thank Martin Coppack from Fair By Design, the Phoenix Group and Mastercard for meeting me earlier this week to talk about why they support financial inclusion.

When we think of financial inclusion, we tend to think of the consumer groups that support it, such as Citizens Advice, and it is not widely known that it is supported by FTSE 100 companies such as the Phoenix Group, Mastercard and Legal & General. When I asked why they support it, they said that since we left the EU, regulators are more powerful than ever before. Of course, I do not believe that the Government should have the call-in powers that were debated earlier. That huge transfer of powers to the regulator means that it becomes even more crucial for Parliament to set the correct objectives; we have to get the objectives right if we are to allow our regulators to function effectively in the post-Brexit world.

There was a rumour that the Government were keen to push back on any additional objectives for the regulators. Apparently, they compared it with the national curriculum, where everybody wants to get their bit in, and perhaps in the same way, everybody wants their bit to be a new objective for the regulators. But even if that is the case—clearly, there is a demand for the regulators to have many new objectives and for objectives to be strengthened—that does not mean that we are incorrect, because financial inclusion is important. Ensuring that the FCA has regard to financial inclusion turns it from a nice to have to something that we must have. It would embed financial inclusion in the design of financial services and products forever.

When I met people from Mastercard and they were talking to me about future innovations in financial services, fintech and the way financial services are developing new products, they said that at the moment financial inclusion is seen as an add-on, in that they develop a product, and financial inclusion is fitted into it by asking, “Well, how can we make this financially inclusive?” Those from Mastercard told me that they want financial inclusion to be there from the beginning, so that when new products are designed and created, it is given primacy, and is there throughout the whole design.

Without financial inclusion, constituents will continue to face what is called the poverty premium. I have spoken before about the poverty premium, which is basically the additional cost of being poor, and it explains why it is so expensive to have such a low income. In Kingston upon Hull West and Hessle, the poverty premium works out at £459 per household, which is nearly £6 million paid in extra costs by my constituents just because they happen to come from lower-income families. This is all calculated by Fair By Design.

For too long, the idea of financial inclusion has been a hot potato passed between the FCA, the Treasury and other regulators and Departments, with nobody prepared to take ultimate responsibility. For example, the Competition and Markets Authority started to carry out investigatory work on the poverty premium across essential services, but in the end determined it was too difficult, and it now signposts organisations to sector regulators such as the FCA. However, the sector regulators say that this is not their responsibility, as it involves elements of social policy and pricing of risk—and so we go on.

We are asking the FCA to collate the information needed to really look at and analyse the poverty premium. Of course, as we expected, the FCA says it does not want another objective. I think we probably understand why it does not want to be given any additional work to do, but it is our job as Parliament to set and establish the types of financial services we want, and to ask what our principles are as parliamentarians, what things we care about and what we want our future financial services to look like. Surely Members across the House would agree that having a financially inclusive sector or financially inclusive products that cater for people right across the population of the UK, not merely the most profitable ones, is a good thing.

When I was talking to people from Mastercard and Phoenix about this, they said that financial inclusion could open up new markets for them among those who would be interested in their products, if they were designed in an effective way. My new clauses and amendments ask the FCA to have regard to financial inclusion, and would place a duty on the FCA to report to Parliament annually on how well it is doing with financial inclusion and giving that information back to us. The proposals would end the current damaging situation by placing a clear remit on the regulator to ensure it routinely and properly explores financial inclusion issues across its work, allowing greater clarity on unintended consequences and the best interventions needed to ensure financial inclusion, as well as who is best placed to act.

The Government could save my constituents in Kingston upon Hull West and Hessle nearly £6 million, and it would not cost them a penny. Surely that, if nothing else, means that the Government should look more favourably at the amendments I have tabled.

Britain’s Industrial Future

Debate between Baroness Winterton of Doncaster and Emma Hardy

Tuesday 15th November 2022 Commons Chamber

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Does my hon. Friend share my frustration that the Government are playing hokey-cokey with Northern Powerhouse Rail, first putting it in their manifesto and then taking it out under Boris Johnson, then putting it in under Liz Truss and taking it out again under Rishi Sunak?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The hon. Lady knows she must refer to other Members not by name but by constituency.

[Emma Hardy]

I apologise, Madam Deputy Speaker.

Does my hon. Friend the Member for Sefton Central (Bill Esterson) agree that, if we want to deliver an industrial strategy, we need Northern Powerhouse Rail to be delivered in full?

Parliamentary Constituencies Bill

Debate between Baroness Winterton of Doncaster and Emma Hardy

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Tuesday 14th July 2020 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I call Emma Hardy.

[Emma Hardy]

Thank you, Madam Deputy Speaker. I have found the debate a little confusing, because the arguments that Conservative Members have been making, some of whom I hold in high regard, make me wonder how clearly and accurately they listened to the opening speeches. I would go as far as to say that there have been many straw man arguments created throughout this debate. At the outset, I wish to say that when quoting any Member of the House it is important that it is done accurately and precisely, and I hope Hansard will reflect that.

The Labour party of course accepts the need for boundary changes. No one has argued against that, so again I am slightly confused by the arguments presented by Conservative Members that somehow we are speaking against it. We have welcomed the fact that the Bill has moved to having 650 MPs and that the data being taken is from March 2020. I wish to spend a moment paying tribute to my staff for the amount of work they have done and for how hard they have worked during this pandemic. I am sure that is the case for all Members’ staff throughout this time and we should all recognise the need for 650 MPs.

I wish to address some of the comments made by Conservative Members. I was disappointed to hear our amendment referred to as a “wrecking amendment”, as I thought that was unjustified. Trying to extend the flexibility of a boundary commission to take into account local history and local cultures is not “wrecking”; it is merely pragmatic and sensible, so I was disappointed with the language used. Another Member mentioned the need for the Boundary Commission to be more imaginative, but surely there needs to be recognition of the fact that it is difficult for it to be imaginative when its hands are tied behind its back because it is restricted to 5%. As our shadow Minister said, 5% on the basis of 600 Members is 4,000 electors, whereas 5% on the basis of 650 is only 3,500.

Yet another straw man argument being presented by Conservative Members is that all these constituencies would be 15% different, which shows that they have not accurately read the amendment. That is not what it says. It says that the Boundary Commission would use the 5% and have a tolerance to extend to 7.5% in areas where it is absolutely necessary. It does not at any point say, “Let’s encourage the Boundary Commission to make sure all our constituencies are 15% different.” Again, we saw another straw man and another disappointing argument from Conservative Members.

Some of the evidence that was given during the Bill Committee included comments from David Rossiter and Charles Pattie, who noted that it was the 5% that caused the greatest disruption. Indeed, one of the things that was so intolerable to the people in the community in the changes that were going to be implemented in my constituency of Hull West and Hessle was the movement across the natural boundaries. A ward was proposed that would instead go from east Hull into west Hull. I do not expect anyone in the House now to be aware of the historical traditions and rivalries between east and west Hull, but if Members look at our rugby teams as a good example of that friendly rivalry that exists in the community, they can perhaps start to understand why a movement across the River Hull would be so intolerable. That was indeed mentioned by my predecessor, Alan Johnson, and by my hon. Friend the Member for Kingston upon Hull East (Karl Turner) in the evidence that they gave to the previous Boundary Commission. I suppose that part of my message to the Boundary Commission, via the Minister, is that it really does need to look at natural geography and the histories and cultural traditions of places. That is why I am in favour of allowing this extra tolerance—not on every occasion as has been mentioned—to ensure that it takes those historical differences into account.

I will not detain the House for too much longer, but I think it is also worth pointing out—it is certainly the feeling I get from residents in Hull—that no one would thank a political party for trying to enforce a new identity on an established community by moving it out of one community and insisting that it belongs to another. I am also a little perplexed by the idea that a political party, which seems to be so keen on taking back control of our borders, seems to want to relinquish control of our constituency borders to an unelected body.

On the point about bringing the decision back to Parliament, it is worth pointing out that we are under no illusion that, if we bring the matter back to Parliament, the Conservative party has the majority to force through what it wants, so this is a point of principle, rather than any realistic notion that we could change the decisions that have been made. That is why I support new clause 1 and amendment 1 in the name of my right hon. Friend the Leader of the Opposition.

Points of Order

Debate between Baroness Winterton of Doncaster and Emma Hardy

Tuesday 30th June 2020 Commons Chamber

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

On a point of order, Madam Deputy Speaker. Late on Friday night, a story was published in The Guardian, following the leaking of a Government document and briefing from officials in the Department for Education, saying that the Government appear to have committed in principle to moving university applications to after A-level results, commonly called post-qualification admissions. Yesterday, the Department for Education produced a written statement, but no mention of those changes were made, despite the huge impact they would have on university admissions and hundreds of thousands of students. I seek your advice on how the Government can be encouraged to keep the House updated on all policy developments, and ask if they have made any plans to bring a statement on higher education forward.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I am grateful to the hon. Lady for giving me notice of her point of order. Mr Speaker has made it clear on several occasions that new policy announcements by Ministers should be made in the House and not to the media. It is obviously for Ministers to decide whether to make a statement to the House. The hon. Lady will be well aware of the fact that there are different routes to summon Ministers to the House if a policy announcement has been made that warrants the attention of the House and it has been made to the media as opposed to the House.