(7 months ago)
Grand CommitteeI will try to line up with it better. Amendments 202 to 205 flag concerns with proposed new Regulation 6B, which sets out to remove cookie banners automatically when the technology is available. The concerns very much relate to that last phrase: “when the technology is available”. How will this work? How is it to be managed? There is only a thin layer of controls on the Government in the way that they will use these new powers; it is also unclear how this will affect consumers and advertisers. There could be some far-reaching effects here. We just do not know.
I am looking for, and hope the Government will agree to, wide consultation because, on something such as this, it is never true that everybody knows everything. You want to put the consultation out to a lot of different people with a lot of different experiences of how to use the net to make sure that what you are doing will have the sort of effects that you want. I want to see proper, thoroughgoing impact assessments, including of the impact on competition and on the economic health of participants in the net. I would like to see a real analysis of the readiness of the technology, not just an assumption that, because somebody likes it, it will work, but a real, critical look at whether the technology is actually up to what it is hoped it will do, and proper testing, so that, in giving the Government the carte blanche that they have asked for with these clauses, we do not end up letting ourselves in for a disaster.
As I said, most of all, I am looking for a meeting between now and Report, so that I can go through these things in detail, and we can really understand the Government’s position on these matters and, if necessary, discuss them further on Report. I beg to move.
My Lords, I will speak briefly in support of the amendments in the name of the noble Lord, Lord Lucas, to which I am pleased to have added my name. I apologise for not being able to speak at Second Reading, but I understand from other Members of the Grand Committee that an occasional guest appearance and a different voice are welcome.
I declare an interest, as set out in the register, as a director of RSMB Ltd, a company specialising in the methodology of audience measurement, cross-media measurement and data integration. More fully, I am nominated and remunerated by the advertising group Havas, which owns the company jointly with Kantar Media.
As the noble Lord, Lord Lucas, so clearly set out in his introduction, these simple and uncontroversial amendments would bring greater clarity and certainty to the key measurement of users, readers and audiences of digital websites and platforms. By including the measurement of aggregate audiences online in the list of cookies that would not require specific consent, these amendments would protect and enhance the interests of both consumers and businesses: consumers because, as the noble Lord, Lord Lucas, said, with the maintenance of advertising revenue funding, websites that provide news, entertainment and a wealth of other services would otherwise cost those consumers much more in subscriptions; and businesses, as through the quality of anonymised, aggregated data, they can build better offers to consumers and advertisers, as well as increase their financial resilience.
The Minister brings profound knowledge and understanding of this field, so he well knows how important the digital advertising market is and how innovative and respected UK companies are in the global industry. That applies not only to the websites, platforms and advertisers but to the research, quality audit and measurement companies specialising in this area. These amendments would support this growing and productive high-tech data, research and measurement sector in reinforcing its world-leading position.
As in so many industries and sectors of the economy, long-term stability is vital to rapidly evolving digital markets. Including these amendments in the Bill, rather than relying on secondary legislation and regulation to flesh out details in the future, will enhance that stability.
Likewise, the amendments relating to the implementation of centralised opt-out controls are intended also to promote that long-term stability, as well bringing enhanced transparency and scrutiny. The interests of consumers and businesses are not in conflict with each other in relation to audience measurement and data quality. They are constructively interactive.
(9 months, 2 weeks ago)
Lords ChamberMy Lords, I am delighted to follow the noble Lord, Lord Willetts, even if his incisive analysis is an extremely hard act to follow—as was the introduction by the noble Lord, Lord Bridges. Like my noble friend Lord Layard, I was privileged to be a member of the committee under the chairmanship of the noble Lord, Lord Bridges, and his introduction was as excellent as his leadership of the committee, which benefited hugely from the work and intellectual rigour of the staff who supported and guided us.
Although seasonally adjusted economic activity fell in the period following the completion of the report, from 565,000 above pre-pandemic levels to a low point of 281,000 in March to May 2023, it rose again to the most recent public figure of 410,000. There remains, therefore, the worrying adverse divergence from the experience of most of our peers, who have returned to a position as good as, or better than, pre-pandemic levels. Despite the length of time that has passed since the committee published its report, let alone since it began to take evidence, the analysis and conclusions remain valid and speak for themselves. I propose therefore to comment briefly on only a couple of points.
The committee came to recognise just how complex the various factors were that lay behind the change in the level of economic activity. “It’s complicated”, as the Alec Baldwin/Meryl Streep movie is titled, albeit in relation to personal relationships rather than labour market dynamics. The committee started work on its inquiry only months after the end of Covid-related restrictions. This can be taken, perhaps, as a proxy for the pandemic becoming endemic, rather than disappearing.
It is not surprising, therefore, that many of us started with the suspicion that long Covid and other health-related issues lay predominantly behind the increase in economic inactivity. But, as we received evidence, it became clear that this was no more than one contributory factor. Four years on from the start of the pandemic, its impact on long-term health is still hard to measure with accuracy and confidence. But it is none the less clear that—as previous speakers have highlighted—chronic health conditions of all sorts, mental as well as physical, pose a significant macroeconomic problem, as well as an even more devastating one for the individuals unfortunate enough to be affected. The desperate state of the NHS exacerbates this problem. I have no doubt that economic inactivity will remain higher than it should until the investment in, and careful reform of, the NHS are implemented—which, to be party-political for a moment, a Labour Government will do.
Early retirement emerged as arguably the most significant factor behind the economic inactivity changes, as the noble Lord, Lord Bridges, highlighted. The committee questioned whether this would, at least to some extent, reverse itself as the cost of living pressures then emerging pushed early retirees back into the labour market. I think the caution expressed in the committee’s conclusions is being borne out, but, if there is little likelihood of many of that cohort of early retirees returning to work, whatever measures might be introduced, it is highly likely that this is essentially a one-off phenomenon.
There were a number of factors that appeared to encourage early retirement with no significant adverse health issues in this cohort. Arguably, the experience of lockdown during the pandemic and, in many cases, support through the furlough schemes, offered individuals a trial period of a changed lifestyle—a number of witnesses concurred with this. Less well explored, and a subject I hope for future work, is the possible effect of a long period of low interest rates that will have enabled mortgages to be paid off earlier, facilitating early retirement, even if occupational and state pension entitlements on their own, as described by the noble Lord, Lord Willetts, might not have made this so financially feasible.
Even if the early retirement trends in recent years have contributed to the labour market issues on which we are focused, I suspect that this is an ephemeral issue and that future generations are more likely to need to continue working beyond their preferred date of retirement, rather than being able to anticipate it. Migration trends were the subject of a particularly interesting evidence session with Madeleine Sumption of Oxford University's Migration Observatory and Professor Jonathan Portes. Though they argued that the move from EU to non-EU driven immigration, resulting from Brexit, was not itself a major factor in overall labour market changes, it posed a significant problem for certain sectors such as hospitality and agriculture, where shorter-term flexibility in migration is so important; Professor Portes warned against becoming dependent on migration in the care sector in particular.
It is hard not to feel that Mel Stride’s announcement last year that the measures announced in the spring Budget represent the conclusion of the DWP review of workforce participation is a signal that the Government do not really get the severity of the problem and the need for the improvements in data from the ONS that the noble Lord, Lord Bridges, referred to.
(3 years, 9 months ago)
Lords ChamberMy Lords, I shall speak briefly but vehemently in wholehearted support of my noble friend Lady Sherlock’s regret Motion.
I was privileged to be a member of the Economic Affairs Committee when it conducted its inquiry into universal credit. It began in January last year, before it became clear that Covid-19 would indeed spread from China and have such a devastating impact on British society and the economy, although our resulting report was published in July. It was therefore able to reflect and comment on the action taken by the Government in response to the pandemic crisis. The chronology is important because we set out to review the workings of universal credit quite independently of the pandemic and to make recommendations for times in the future which, even if they will be inescapably affected by the pandemic, will be more normal and comparable to circumstances before that crisis.
The specific issue of the severe disability premium, which this Motion is about, should be seen in the broader context of universal credit, its design and its agonising phased introduction over the past 10 years against the background of the Conservative-led Government’s premeditated reduction in welfare spending. Professor Jonathan Portes, who was, inter alia, chief economist at the DWP between 2002 and 2008, recently wrote:
“The overwhelming case against cutting Universal Credit: not the pandemic, but the extraordinary cuts to unemployment-related benefits over the last four decades.”
The majority of these cuts, which took benefits from 25% of average earnings in 1979 to under 15% in 2019, were implemented by Conservative Governments. However, disappointingly, I have to acknowledge that the Labour Government of 1997 to 2010 did not do anything to reverse that trend.
What is true broadly of the inadequacy of universal credit is even more so in relation to its failure for so many of those with disabilities. The Joseph Rowntree Foundation calculates that 31% of disabled people live in poverty, compared to around 20% of the population as a whole. Half of all those in poverty are disabled or live with a disabled person.
The Economic Affairs Committee was advised that the introduction of an equivalent to the severe disability premium would cost approximately £1 billion per annum. If 10 Downing Street can employ three times as many official photographers as the White House, surely it would agree that the sum of £1 billion to alleviate the poverty suffered by 50% of all disabled people would represent extraordinary value for money. Can the Minister give us the comfort that this will be addressed, allowing my noble friend to withdraw her Motion? In the absence of that comfort, I would have no hesitation in supporting my noble friend’s Motion if she chooses to press it.