East Coast Main Line Investment

Debate between Alex Cunningham and Catherine McKinnell

Wednesday 17th October 2018 Westminster Hall

[Alex Cunningham (Stockton North) (Lab)]

We are extremely proud of our railway heritage, particularly in Stockton, from where the first passenger train left on its journey to Darlington. Across the country, people are bringing heritage lines back into use, but we do not need that on Teesside, because our trains and lines are so decrepit, old and run-down that they ought to be confined to history. Does my hon. Friend agree that, although we desperately need more investment in the north-east line, we also need to cover the branch lines so that the people of Teesside and beyond have proper services to get to the main line?

[Catherine McKinnell]

I absolutely agree. I will make the case that investment is not only about the infrastructure of the vital east coast spine that runs up and down our country, but about the major impact that that would have on all the contributing branch lines and communities that rely on that infrastructure and the infrastructure that connects to it.

--- Later in debate ---

[Catherine McKinnell]

I would go further than my hon. Friend and say that it is not only ironic but completely unacceptable. That is part of the case that I want to make to the Minister.

The east coast main line is a significant employer in its own right, as more than 3,000 people work for London North Eastern Railway. Trains that use the east coast main line operate as far north as Inverness and as far south as London, and one third of the UK’s population live within 20 minutes of the east coast main line, so the quality of the service and the capacity of the route has a real impact across the country.

The east coast main line is the fastest and most environmentally sustainable way to connect many of those locations, and enables cities in the north of England—or the northern powerhouse, to use the Government’s terminology—to do business elsewhere in the country and with one another. When the railway works, its key city centre to city centre journey times compare favourably with air travel, which allows slots at airports to be reserved for connectivity into international economies. The east coast main line should always win hands down against road travel as an attractive alternative to slow-moving traffic and motorway driving, with all the air quality issues that they bring.

The line does not just facilitate the famous Anglo-Scottish trains of past and present that travel to and from London, but a multiplicity of other journeys that utilise every part of the route, such as Edinburgh to Leeds, Newcastle to Birmingham, Darlington to Bristol, Middlesbrough to Manchester and Stansted airport to Leicester. The east coast main line and this debate are important not just to the grand cathedral stations of King’s Cross, Edinburgh, York and Newcastle, but to the other stations that serve commuter towns and larger villages across the route. When all those connecting lines are taken into account, that includes a far bigger swathe of the country than just those places immediately near the east coast main line.

For all those reasons, the east coast main line is a national asset to be prized and nurtured, not taken for granted. That is why I established the all-party parliamentary group to focus on the issue earlier this year, so hon. Members from both Houses could campaign together to secure investment in the route for an improved passenger experience, for capacity and reliability, and for shorter journey times.

The APPG is also looking at the economic growth that could be unlocked in the areas served by the east coast main line if those improvements are delivered, and at the future operation of the route, which has been beset by significant problems over the past decade. Given that the APPG’s vice chairs are the hon. Members for Stevenage (Stephen McPartland), for Cleethorpes (Martin Vickers) and for Edinburgh West (Christine Jardine), there is clearly strong cross-party and cross-country interest in this issue.

Of course, the Minister here today is well aware of the APPG’s existence, having attended one of our meetings back in June, for which we are grateful, and having corresponded with me since. I am quite sure that we will remain in contact in the months ahead.

I am acutely aware that the performance issues facing east coast main line passengers do not come close to the frankly catastrophic service issues faced by people who had the misfortune of having to use a number of other lines over the summer, including Arriva’s Northern Rail passengers and those on the Thameslink, Southern and Great Northern routes.

However, there are also real problems on the east coast main line. The latest performance measures published by Network Rail indicate that in the year to 15 September, just 75.2% of trains on the east coast main line, under the former franchise and the current operator, arrived within 10 minutes of their scheduled time. That is well short of the national figure of 86% and even further adrift of the target figure, which is 88%.

Over the same period, almost 9% of east coast main line trains were cancelled or classed as being “significantly late”, against an England and Wales performance of 4.6%. Of course, this issue is most serious for those communities not directly served by the line—for them, reliability is absolutely crucial if connections to adjoining routes are actually going to work.

Although passenger satisfaction data for LNER is not yet available, the spring 2018 figures from the independent transport user watchdog, Transport Focus, found an “overall satisfaction with the journey” rating for Virgin Trains East Coast of 87%—the worst score on the east coast main line route for five years. It will be very interesting to see what happens to that figure when Transport Focus publishes its autumn 2018 results, which will incorporate LNER’s performance for the first time.

I am seriously concerned that the quality of the service currently being provided simply does not “sell” the line, or the local communities that it is supposed to serve. Why would anyone from overseas or from elsewhere in the UK want to come back to places they have visited on the route, or do business or invest there, if they have had a poor travel experience, as is far too often the case? Similarly, how can we possibly persuade more people to stop using their cars, to reduce congestion and improve poor air quality, if they simply cannot rely on the railway to get them from A to B on time and at a reasonable price, whether it is for business or leisure?

[Alex Cunningham]

I am grateful to my hon. Friend for giving way to me again. She is championing people along the line. Across the line and the area, there is very poor access for disabled people—particularly at Billingham, where they cannot get on to a train at all. Will she join me in encouraging the Minister to back the application for a grant to give disabled people in the Billingham area proper access to rail services, from Teesside to Darlington and beyond?

[Catherine McKinnell]

My hon. Friend makes a vital point very well. I absolutely support that call—indeed, I support the call for such improvements to be made right up and down the line. That is something we should all focus on.

I am sure that many hon. Members will want to raise such concerns directly with LNER at the drop-in briefing that I will host next month, and that they will wish to update colleagues on their plans. That briefing is also an opportunity to put to LNER the case for some of the improvements that we would like to work together to secure.

It would be wrong to lay all of the problems that I have outlined today at the door of LNER, or indeed that of Virgin, given that the latest performance figures published by Network Rail show that some 58% of the delays and cancellations on the route over the last year were caused by Network Rail itself. Those figures are a clear reflection of the east coast main line’s ageing and unreliable infrastructure. I suggest again to the Minister, as I have done at the APPG meeting that he attended and in writing, that that infrastructure is in urgent need of improvement or replacement, including of track, signalling and overhead power lines on the electrified sections. Also, far greater resilience is required in bad weather, which the rail networks of many other countries that have far more challenging climatic conditions than we do appear able to cope with.

Childcare Vouchers

Debate between Alex Cunningham and Catherine McKinnell

Monday 15th January 2018 Westminster Hall

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I beg to move,

That this House has considered e-petition 200585 relating to childcare vouchers.

I am pleased to serve under your chairmanship, Mr Bailey, and to lead this debate as a member of the Petitions Committee. I must also declare an interest as a beneficiary of the childcare vouchers scheme.

The e-petition, entitled “Keep childcare vouchers open beyond April 2018”, was signed by more than 116,000 people, including almost 400 across my own city. It reads:

“Hundreds of thousands of parents will lose out under the new tax-free childcare. The voucher schemes should be kept open alongside tax-free childcare to give parents a genuine choice for the support that best suits their family.”

The creator of the e-petition, Ellie Symonds-Lloyd, is in the gallery with her family. I am particularly pleased to be leading this debate, given the importance of the wider issue to our society and to the economy as a whole. Increasing the availability of affordable childcare, particularly for younger children, is one of the key issues for many of Britain’s families, with a huge impact on their standard of living.

As the Joseph Rowntree Foundation highlighted after the publication of the 2017 childcare survey by the Family and Childcare Trust last March:

“The biggest cost for many working households with children, after housing, is childcare. The cost of all types of childcare has risen much faster than overall inflation. The cost of childcare can affect the real increase in disposable income gained by a parent taking a job or working for more hours. This can affect families’ living standards directly and also indirectly by influencing whether parents work at all, what jobs they take and how much they work.”

The Family and Childcare Trust commented:

“British parents now pay an eye-watering average of £116 per week for a part-time nursery place—or over £6,000 every year, more than double what families spend on food and drink… It is a disgrace that so many parents are effectively shut out of the workplace by crippling childcare costs. Recent Governments have rightfully invested in childcare, but too many parents are still struggling to find and pay for childcare that they and their children need.”

[Alex Cunningham (Stockton North) (Lab)]

I am pleased to have the opportunity to debate this issue. Does my hon. Friend recollect that when we were both on the Childcare Bill Committee, there was much discussion of the costs associated with provision for disabled children? It is therefore all the more important that we place on the record how tremendous the additional pressure is on parents in such circumstances.

[Catherine McKinnell]

My hon. Friend is right. Some of the changes introduced by the Government have been positive in that regard, but far more still needs to be done to support families with disabled children. He is absolutely right to raise the issue so early in the debate, and I will return to it as we progress.

It is critical, if we are to tackle increasing rates of child poverty and a lack of social mobility, that we address this issue. Increasing the availability of good-quality, affordable childcare clearly enables more parents to get into or return to work or access education and training, while also improving educational outcomes for their children. It is not just an issue for individual families; it is of critical importance to our whole economy and our productivity levels.

That is why the Treasury Committee, of which I am a member, recently announced that we will be holding an inquiry into childcare policy and its influence on the economy. While examining the role that high-quality, accessible, flexible and affordable childcare can play in supporting labour productivity, our inquiry will also scrutinise the processes for delivering childcare schemes and the overall package of Government initiatives aimed at making childcare affordable, as well as how the individual initiatives interact with each other and their effectiveness and whether they have delivered an adequate provision of affordable childcare that facilitates parental employment.

I am delighted that we will be investigating that crucial issue. As the Family and Childcare Trust has commented:

“Childcare is as vital as the rails and roads for helping our country to run”.

I am not quite sure whether the Government have fully made that link, given that childcare received the briefest of mentions in the recently published industrial strategy, and no mention whatsoever in the autumn Budget speech, despite the Chancellor’s stated commitment to tackling the UK’s poor and downgraded productivity levels.

There is a raft of early years and childcare-related concerns that I could touch on, starting with the cuts to Sure Start. Funding for Sure Start services has fallen by a staggering 46% since 2010 across the north-east, which is my region. Parents were promised that 30 hours of free childcare would be in place for their three and four-year-olds by last September, but the Pre-School Learning Alliance recently reported that 18% of families registered for the scheme still cannot access that support. The long-term sustainability of the childcare sector is also at risk due to underfunding—more than 1,100 nurseries and childminders have gone out of business since 2015. However, this debate focuses on childcare vouchers and the new system of tax-free childcare, and whether one must replace the other, or indeed whether the two can coexist.

As hon. Members will be aware, the childcare voucher scheme was introduced in 2005 under the Labour Government, as part of the wider system of employer-supported childcare. Working parents signing up to the childcare voucher scheme agree to sacrifice up to £55 of their salary a week, or £243 a month, before tax and national insurance deductions, receiving in exchange vouchers that must be used to pay for Ofsted-registered childcare providers—nurseries, childminders, pre-schools, after-school clubs or holiday schemes—for children aged up to 15, or up to 16 for children with a disability. That equates to a maximum saving of £77.76 per month per parent for basic rate taxpayers, or £1,866 per year for a working couple who are both in receipt of childcare vouchers.

The Childcare Voucher Providers Association calculates that some 780,000 parents are currently using vouchers, with millions of parents having received support since the scheme was introduced almost 13 years ago. According to a Library briefing paper, the Government state that more than 50,000 employers offer childcare vouchers to their staff, which the CVPA estimates equates to between 20 million and 26 million of the 31 million UK employees working for organisations that offer the scheme. Indeed, one of the benefits of childcare vouchers has been that employers have used their membership of the voucher scheme as an incentive to attract potential staff, which has helped organisations to recognise the importance of childcare and family life for their workforce, often leading them to consider what more they can do to support the working parents they employ. The CVPA highlights that childcare vouchers are the second most popular company benefit; only workplace pensions, which employers must offer by law, are more popular.

However, there are a number of well-documented flaws in the current childcare voucher scheme. A person’s ability to receive that support depends on their employer being registered for the scheme, which means that those whose employers are not registered cannot receive it. That includes the ever-increasing number of self-employed people in our economy, which the membership organisation IPSE, the Association of Independent Professional and the Self Employed, estimates at around 4.8 million people in the UK.

A further concern is that the level of support available per family via childcare vouchers is linked to the number of parents, rather than the number of children. For example, a lone parent with three young children working full-time and facing high childcare costs is entitled to less tax relief than a couple, both claiming vouchers, with one older child who only attends an after-school club twice a week.

--- Later in debate ---

[Alex Cunningham]

He is not the Children’s Minister. I understand that we do have a new Children’s Minister, but I am sure that the Treasury Minister wants to understand childcare as much as anyone else does. Believe me, he has some way to go, being a member of the Tory Government.

Childcare delivered fairly for all children plays a major role in ensuring that no individual fails to get the chance of having a better start in life, even before they get into the school classroom. It also helps parents to realise their potential and make the most of their lives. I served as the cabinet member for children and young people at Stockton Council, and I well remember speaking with head teachers after Labour’s groundbreaking Sure Start centres were developed and nursery provision was expanded beyond all recognition. They told me how children were far better equipped and ready for school than the groups that came before them. Their social skills were better, they were used to structure, they were already participating in activities and they had a level of confidence that made them ready to learn. That was all great stuff. The hon. Member for Belfast South spoke about how much more possible educational attainment is for children who have had proper childcare and proper nursery provision. We must not lose sight of that, as it drives results. We see those results in our primary schools and secondary schools today. The children coming out of secondary schools now were among the first to benefit from the Sure Start programme.

I always acknowledge that the coalition Government and the last Conservative Government helped build on Labour’s legacy—children continue to benefit even more—but it is crucial that that success is not undermined by the gap between the haves and the have-nots being widened. We have always had a two-tier system. Even when Governments of the past got sensible and first offered free childcare, those who could afford more and better provision gave some children an advantage. I doubt that will ever change, but surely there is no need for the current Government to make changes that will disadvantage those least likely to be able to afford top-up fees, effectively creating a two-tier system.

When discussing areas of policy relating to childcare and the education of children, it is vital that we focus not only on cost, but on outcome. We know that the early years are one of the most formative times of a person’s life and have significant influence over their development. That is why I urge the Government not to treat childcare as something that can be cut back. By cutting back or reducing access, we put a stop sign in front of the poorest children in our country. From what I see, the changes proposed around the voucher scheme will effectively do just that: reduce provision.

I have looked at the childcare voucher scheme, as other Members have—they have already talked about it—and I compared it with the tax-free childcare system that parents will have no choice but to use if they sign up after April. From my observations, tax-free childcare is considerably the less favourable of the two options. Existing users of childcare vouchers will be able to choose the system that benefits them most, whereas applicants after April will have no such choice. That creates a two-tier system, where some children will be disadvantaged, depending on the amount their parents can afford to pay.

The Prime Minister’s words on the steps of Downing Street 18 months ago are much quoted. She said:

“We will do everything we can to help anybody, whatever your background, to go as far as your talents will take you.”

It is a well-worn quote. I have to believe that those words applied to young children as much as to anyone else, and I just wonder if the Prime Minister knows how these particular proposals fly in the face of her pledge and affect the families she may have once described as “just about managing”. I doubt the new Education Secretary, with whom I served on the Education Select Committee and with whom I share a passion for early years’ provision, would really want to see his first few months in office marred by the creation of a system that was far from equal. Has he even had the chance to reconsider the policy ahead of today’s debate? Since we are debating childcare vouchers, I am sure many of us would tell the Prime Minister and her new Secretary of State that the new tax-free childcare service is not fit for purpose. It does not fairly replace childcare vouchers and they should think again.

There is a real opportunity for the new Secretary of State and the new Children’s Minister—it is a shame he is not here to debate with us today—to demonstrate their listening credentials and order a review of the whole policy area. Potential inequality is not just about the ability to pay; it is also very much about the status of an individual or couple. In the gig economy we are now living in, are we putting the provision for some children at risk because their parents are likely to face rapidly changing working environments? I raised that with the Minister of the day, the right hon. Member for Witham (Priti Patel), when the policy was being developed in 2014. I said:

“For many, particularly those with fluctuating incomes such as the self-employed, or those likely to have a change in circumstances later in the year, the complexity will be so great that it is likely to be impossible to provide a better off calculator that can cover many of the situations in which claimants find themselves.”—[Official Report, 17 November 2014; Vol. 588, c. 90.]

My hon. Friend the Member for Newcastle upon Tyne North, who has spoken widely today, also spoke in that debate. She said:

“It is worth remembering that some 520,000 families currently benefit from ESC vouchers. The Government’s impact assessment sets out a number of case studies where families might be better off or, indeed, worse off under the new top-up payments.”—[Official Report, 17 November 2014; Vol. 588, c. 68.]

That was three years ago, so the Government have had enough time to find answers to those problems and inequalities.

The Childcare Vouchers Providers Association highlighted that some families will actually lose money under tax-free childcare compared with vouchers. That point has been repeated several times today, but it is worth repeating: people will lose out. Does the Minister know who will lose out and who will benefit? What is he doing about those who will lose out? Are there any plans to ensure equality of opportunity and access to provision? What happens when a parent in the gig economy earns less than £120 week for a while? At what point do they lose that tax-free childcare? I do not know the answer to that; I hope the Minister does. It seems to me that the system is a wee bit messy and confused. Until there is proper understanding of the change to a complete tax-free childcare system, the Government should at least extend the deadline for childcare vouchers. Has the Minister or the new Secretary of State considered that?

I also note the difference regarding the age of a child receiving tax-free childcare. Vouchers can be used for children up until the September following their 15th birthday, but that figure drops to the September following their 11th birthday under the tax-free system. Can the Minister share with me the logic behind that decision? Are the Government suggesting that 11-year-olds can be left home alone while their parents are at work? Are they assuming that everybody has grandparents and other family members to stay with, or do they have to find the cash themselves to help pay for childcare? We cannot escape the fact that this all boils down to cash: the cash that the Government are prepared to invest in childcare and the cash that some parents will have to find if their children are to be looked after so that they can have peace of mind while they are at work.

[Catherine McKinnell]

I am very much enjoying my hon. Friend’s speech. He raises an important point that I did not elaborate on in my speech, which is the age difference between tax-free childcare and the vouchers scheme. That change seems to totally ignore the reality for the many working families who use the vouchers to fund activities for their children to keep them safe and occupied during the school holidays. Those activities not only have educational and social mobility benefits, but keep their children safe. I do not think the Government recognise that there are ongoing childcare costs up to a much later age than 12.

[Alex Cunningham]

For me, it boils down to a matter of equality. Why should one person at one end of a street have their children cared for until the age of 15 while a person at the other end of the street has to apply under the new system and does not get the same provision? Surely there must be some sort of equality law associated with that. The Government should recognise that issue and take action.

We should not forget that these challenges for parents come at a time when working families are finding life very tough. We have public sector pay freezes, the increased cost of living, escalating transport costs and a lack of wage growth generally. Parents cannot afford to pay extra money over and above what everyone else is paying. I come back to the word “equality”—we should have equality of provision for everyone. Things should not be different from one person to another. It is time not for the Government to add to the burden of some families and exacerbate inequality, but for the Treasury Minister, the new Children’s Minister and the Secretary of State to step back and think again.

Finance (No. 2) Bill

Debate between Alex Cunningham and Catherine McKinnell

Thursday 18th April 2013 Commons Chamber

[Catherine McKinnell]

It is a pleasure, Ms Primarolo, to serve under your chairmanship this morning. I shall speak to the Opposition amendment to clause 1 and about clause 16, which relate to income tax rates and reliefs.

The Opposition believe that politics is about priorities—about providing support to those who need it most, rather than to those with the broadest shoulders. This has never been more the case than in the country’s current economic climate—a parlous economic climate which, let us remind ourselves, has seen just 0.8% growth since autumn 2010, compared with the 5.3% that was forecast at the time. The economy continues to stagnate under this Government, leading to the independent Office for Budget Responsibility halving its predictions for 2013 and anticipating growth of only 0.6% this year, compared with the 1.2% forecast just four months ago.

We have surely now reached the stage where we must ask ourselves what further evidence the Chancellor needs before he accepts that his economic plan is catastrophically failing. Once again, I note the lack of Conservative Members on the Government Benches. Perhaps Back Benchers are demonstrating their lack of confidence in the Chancellor’s plan which, I am sure they would agree, is far from acceptable.

The latest criticism of this failure came on Tuesday, with the International Monetary Fund downgrading its forecast for UK economic growth to 0.7%, in contrast to its view a month ago, when the IMF said that growth of 1% could be expected. Having subjected the UK to the biggest downgrade of any developed country for 2013 and 2014, the IMF commented:

“In the United Kingdom, the recovery is progressing slowly, notably in the context of weak external demand and ongoing fiscal consolidation.”

It went on to say:

“Greater near-term flexibility in the path of fiscal adjustment should be considered in the light of lacklustre private demand”.

In simple terms, it is time for plan B.

[Alex Cunningham (Stockton North) (Lab)]

I am grateful to my hon. Friend and fellow north-east MP for giving way. Does she share my view that yesterday’s unemployment figures showing an increase of 70,000 were disgraceful? The north-east of England has suffered a disproportionate increase in unemployment, and 12,000 of those 70,000 are from the region that she and I both represent. Does she agree that this is further evidence of the need for change, particularly in regions such as the one we share?

[Catherine McKinnell]

I very much share the deep concern expressed by my hon. Friend about the figures published yesterday. I hope the Chancellor will start to pay attention to the effect that his economic plan is having on people throughout the country but, I agree, particularly in the north-east, where unemployment is above 10%, which is a shocking figure and spells deep trouble for the long-term entrenchment of unemployment. I will come to that shortly.

As we have heard so often from this out-of-touch Chancellor, he is not for turning, despite the fact that the consequence of his economic failure means that Government borrowing is rising, not falling, with the Tory-led coalition set to borrow £245 billon more than it forecast in autumn 2010. His promise to balance the books by 2015 will not be met and the national debt will not fall until 2017-18 at the earliest. Who knows how many times that will need to be pushed back before the Chancellor realises that his plan is not working?

Of course, that dire situation has led to the downgrading of Britain’s triple A rating by Moody’s and the more recent decision by Fitch to place the UK on rating watch negative, both of which had been prized by the Chancellor and used as cover for the austerity measures he introduced back in 2010.

At a time when living standards are being squeezed, average earnings are rising at their lowest rate since the end of 2009, Government borrowing is up, growth forecasts have been downgraded again, the public services on which people rely are being cut or threatened up and down the country, and ordinary people are being asked to pay the price for the Chancellor’s economic failure, what we needed was a Budget that was on the side of ordinary, hard-working people and families, increasing numbers of whom are clearly struggling to make ends meet.

As my hon. Friend the Member for Stockton North (Alex Cunningham) noted, unemployment is rising again. What we needed was a Budget that would back Labour’s jobs guarantee, using money raised from the tax on bank bonuses to fund a guaranteed job—a real job—for every young person who has been out of work for a year or more. I am not sure whether Government Members have had a chance to analyse the long-term unemployment figures published yesterday, but I can tell them that in March this year 167,345 adults over the age of 25 had been claiming jobseeker’s allowance for more than 24 months. Let me repeat that figure: 167,345 adults had been out of work for more than two years, compared with 84,765 in February 2012 and 52,895 in February 2011. That is a disturbing rise of 97% since February 2012 and 216% since February 2011.

Targeted and urgent action is required if the unemployment situation is not to become dangerously entrenched. We believe that it is a totally unacceptable state of affairs and that action is needed now to stop people being put on the scrap heap and left there, as they were under the previous Conservative Government—and, of course, so that we do not continue building up long-term costs for the taxpayer.

What we needed from the Budget was a reversal of the Government’s decision to stop tax relief on pension contributions for people earning over £150,000 being limited to 20% to fund Labour’s compulsory jobs guarantee for long-term unemployed adults.