Economic Growth

Alex Sobel Excerpts

Tuesday 14th November 2023 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

One of the greatest risks we face today as a country and as a global community is the climate and ecological emergency. It is also one of the greatest risks to economic growth. We need to align UK law with what science tells us is required for a liveable future by passing the cross-party backed climate and ecology Bill. That is why I tabled amendment (e), which would deliver a science-led, joined-up strategy to build a greener, fairer future for all and prioritise the protection of nature.

The housing sector is on track to use almost 50% of the Climate Change Committee’s recommended carbon budget. That trajectory is unsustainable if we are to uphold our commitments under the Paris agreement and play our part in limiting global warming to 1.5°. We need homes fit for the future. The Government have now prioritised stepping up the pace of retrofitting, driving progress towards decarbonisation while providing much-needed assistance to our constituents during the cost of living crisis.

On planning, we are told that England will soon have a new biodiversity net gain policy, which will mandate that any new development must leave biodiversity in a better state than before it was constructed. The Oxford Nature Positive Hub has exposed serious challenges that threaten the integrity of the policy’s outcomes, including the oversight, monitoring and enforcement of biodiversity improvements. Under the policy, developers have three ways to offset their biodiversity liability—the damage their project does to nature—but the process will be overseen by local planning departments, which are often lacking in capacity and expertise.

We must prioritise the protection of nature. The leaders’ pledge for nature was a welcome international commitment to not only halt nature loss by 2030, but set it firmly in reverse. That was also the ambition set at COP15 last December, which I attended, and which the Government signed up to. It is the apex nature target of the climate and ecology Bill that I am proud to draw attention to via amendment (e).

I want to discuss Gaza, which the King referred to in his Gracious Speech. I, like many others, was at a Remembrance Sunday event at a local church. I was privileged to read Micah 4, which states:

“He will judge between many peoples and will settle disputes for strong nations far and wide. They will beat their swords into ploughshares and their spears into pruning hooks. Nation will not take up sword against nation, nor will they train for war any more. Everyone will sit under their own vine and under their own fig-tree”.

Rev. Matt Broughton of St Giles then gave the eulogy. He drew attention to the fact that the same land that is being fought over now was being fought over 3,000 years ago. Micah was under threat of attack and assault, but he could see the need for peace and a peaceful settlement, and the need to turn those swords into ploughshares. He also drew attention to the fact that the only settlement would be through negotiation, as we ourselves saw in Northern Ireland and as the Spanish saw in the Basque country.

Although, as Matt Broughton said, now is a time of uncertainty, disharmony and fear, we need to look to the future and think about how we can recreate two states for two peoples. It is incumbent on us, as the UK Parliament, and on the UK Government to join the international efforts that are being made. Pedro Sánchez, the Spanish Prime Minister, has proposed that there should be a peace conference after the conclusion of the conflict. It is important that we create an intergenerational peace for the people of Israel and the people of Palestine. This is not a goal that should be seen as too lofty or too difficult. It is the only way in which we will move beyond the current conflict, and beyond the discussions we are having about the cessation of hostilities or a ceasefire. It is the only way in which we will bring peace to both peoples. Some say that there are not the partners for peace on both sides, but if we are to reach this goal, the international community must make it their top priority to find those individuals who exist in both Israel and Palestine, and promote and support them.

Non-domicile Tax Status

Alex Sobel Excerpts

Tuesday 31st January 2023 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

It is always a pleasure to follow my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders), who always expresses himself so eloquently. In my constituency, fewer than 100 people are non-domiciled for tax; in the constituency of my neighbour the shadow Chancellor, my right hon. Friend the Member for Leeds West (Rachel Reeves), there are fewer than 100 people who are non-domiciled for tax, as there are in Leeds East, too. In fact, in the whole city of Leeds of 800,000 people, relatively few are non-domiciled for tax.

In the constituency we are standing in, 14,600 people—more than 20%—are non-domiciled for tax, according to the House of Commons Library. If any Member wants to intervene and tell me I am wrong, they should feel free. What we do not know is how much the public revenue is losing from those people. My constituents and the people of Leeds would love to know how much tax is being lost just in the Cities of London and Westminster from people utilising the non-dom tax loophole. I would like to know whether it is more than the whole amount that all 70,000 of my constituents pay in tax. That is what this motion is about.

My hon. Friend the Member for Ealing North (James Murray) is a modest man. He does not want too much, just to know how much we are losing from the public treasury. He has not moved a motion to ask for the abolition of non-dom status. He may have ambitions in that area, but that is not what we are talking about. He merely wants clarity and transparency, as does everyone on the Opposition Benches. But some people want opaqueness—I sure they are sitting on the Government Benches—as we have heard time and again.

Let us look at what happens with tax in other countries. The Conservative party often lauds the United States of America’s tax system and its attitude to entrepreneurship. Would this loophole happen in the United States of America? Would it happen in Canada, Germany or other jurisdictions? No, it would not. They require people to pay tax after a qualifying period. In the United States of America, that qualifying period is just one day.

[Carol Monaghan (Glasgow North West) (SNP)]

Recent research from the Tax Justice Network has shown that the UK leads OECD countries in tax abuse.

[Alex Sobel]

That is a very good point. When Ukraine was first invaded we saw how much Russian money was in this country. In fact, I do not think we have yet resolved that issue fully through Magnitsky and other means.

I will try to keep to the time limit, as more Members would like to speak, so I will finish by saying that I go to schools a lot around the city of Leeds. Many families cannot afford to give their children breakfast. The ending of this loophole would mean that we could give every child in every primary school in this country a free school breakfast. The Prime Minister has aspirations to raise standards, but there is nothing more that he—or we—could do for those children than to give them that free breakfast, paid for by people avoiding tax on their earnings here.

Greening the Financial System

Alex Sobel Excerpts

Wednesday 30th November 2022 Westminster Hall

[Olivia Blake]

I thank the right hon. Gentleman for that intervention, and I completely agree: deforestation is a massive issue, and finance plays a huge role in it.

As I was saying, we need financial institutions to play their own role in tackling the systemic problems in the sector, alongside the overarching role. The Financial Services and Markets Bill, which is due back in the House next week, was an opportunity to do that, but the Bill has sent the wrong message. Take the priorities that the Bill sets out for regulators: that they should aim to enhance the competitiveness of the sector, but should only “have regard to” the Government’s net zero target.

That undermines the Government’s green finance strategy, which has two objectives:

“To align private sector financial flows with clean, environmentally sustainable and resilient growth…and to strengthen the competitiveness of the UK financial sector.”

A principle does not have the same force as a statutory aim. The Bill, therefore, represents a significant downgrading of the first target of the ambition set out in the green finance strategy.

The Bill was also an opportunity to move more rapidly on instituting mandatory net zero transition plans for financial institutions, but they are so far missing from the legislation. Plans are important, because they move us away from simply reporting and sharing information, to concrete climate action. We should also be doing much more on investor stewardship and fiduciary duty.

We need not only to encourage and incentivise fossil-fuel divestment, but to ensure that investors are engaging with and making demands of companies on climate action. That means raising capital requirements on fossil-fuel investments and raising the bar on stewardship, so that climate and nature form critical points of engagement with companies. That should also mean expanding the concept of fiduciary duty. The purpose of a pension is to provide a standard of living to the beneficiary when they retire. We need to shift the concept of fiduciary duty away from gaining returns at any cost, to thinking about the kind of world beneficiaries will retire to, or the world in which their children will grow up. Pension investors have a duty to their customers to ensure that the world is not wracked by flooding, flash fires, famine and freak weather, all driven by the climate emergency.

It is clear that the Financial Services and Markets Bill does not go far enough; it may even exacerbate some of the results of the climate crisis. Global heating has made our food supply even more insecure. In dumping the MiFID II regulations, the Bill makes speculation on food even more likely, driving up prices and worsening the consequences of the climate emergency.

However, the issue is not just regulation: so much needs to be done to create markets for green investment. In the green finance strategy, the Government set out their approach to leveraging private investment in five key areas: power, homes, transport, environmental land management and business energy use. On power, we have seen an effective ban on onshore wind, blocking of oven-ready new solar and nothing on tidal. On homes, since the Government “cut the green crap”—I am quoting—in 2013, home insulation has flatlined.

On transport, unless we are talking about building more roads for cars, the system is ravaged by underinvestment. In my constituency, people can wait more than an hour for a bus. On environmental land management, the Government appear to have scrapped or delayed environmental and land management schemes, and are now umming and aahing about their replacement. On business energy use, I repeatedly hear of small and medium-sized enterprises that want to do much more about their emissions, but do not feel they have the support to monitor them and cannot afford the upgrades to do anything about them.

I have long argued for a green new deal, and it is obvious from what I have just said that we are desperately in need of one. One way to kick-start that would be to re-examine the mandates of public financial institutions, such as the British Business Bank, offering discounted financial products to SMEs to make green investment in their business.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

My hon. Friend is making an excellent speech. There is a real role to play for public finances—contracts for difference and national funding—but we also see private finance coming in. If we had regulation, for instance on carbon offsetting or through the green investment bank, private finance would flow into this area. Even that is not happening with the Government. Would a better regulatory environment create those green financial opportunities?

[Olivia Blake]

I completely agree. The regulatory framework that we have here is really holding us back, when it could offer us real opportunities and help to prevent things from getting worse, which is my fear.

For example, we really need to think about what more we can do to support everything, from the bottom to the top of our financial system. That is why I mentioned SMEs, because they are the backbone of many of our local economies. However, an inability to access the financial products that I am talking about is causing a lot of harm to the future of those businesses. Alternatively, strengthening the climate commitments in the mandate for the UK Green Investment Bank while strengthening its lending power could really help to unlock some of this issue.

We could be doing so much more. I hope that when the Financial Services and Markets Bill returns to the House, Members will support amendments along the lines that I have outlined. I also hope that this debate spurs the Government to greater action, because we certainly need it.

Employee Share Ownership Schemes

Alex Sobel Excerpts

Tuesday 6th September 2022 Westminster Hall

[Sir George Howarth (Knowsley) (Lab)]

I beg to move,

That this House has considered reform of employee share ownership schemes.

It is, as always, a pleasure to serve under your chairmanship, Sir Edward. I thank the Chartered Governance Institute UK & Ireland for the invaluable briefing it provided to help me prepare for this debate. Despite the participation of close to 2 million people, employee share ownership plans remain remarkably low profile and poorly understood. If we are to reform employee share ownership plans, which I believe is long overdue, we need to ensure that Members of this House understand what those plans are, and the problems that they face.

Let me begin by explaining why employee share ownership schemes are unique. They bring together employees, employers and the Government into a contract, with each party making a commitment. First, employers offer their staff the opportunity to acquire shares in the company, often at a discount to the traded share price. Secondly, the Government offer tax advantages to the participant and the company, which make them more appealing. Thirdly, the employee makes a regular monthly contribution to the scheme over several years.

The arrangement is a sound one, and that is why, historically, the plans have been reasonably popular and effective. Each of the parties involved benefits. Employers gain more productive and engaged employees, the Government support businesses to perform well and encourage share ownership—a proven source of financial resilience—and employees are more aligned to the success of their employer.

The two plans I will focus on today are the share incentive plan, known as SIP, and the save-as-you-earn system, known as SAYE or Sharesave. Those are just two of the existing share ownership plans, but they are the only two that are known as all-employee share plans; that is to say, when a company offers one to its staff, it must offer one to every single employee within its company on the same terms. It is those plans that lead to participation from across the income range, and from all parts of the country. They are truly inclusive, requiring relatively modest monthly investments from participants.

However, there is a problem that has been raised with the Treasury over recent years: participation rates in the employee plans are plateauing, and in some cases falling. Rates are simply not increasing at the rate that we would hope for.

I could spend the time I have available citing the data, but I will instead point out just a few of the headline facts from the Treasury’s own data, which I am sure the Minister is familiar with. First, the number of firms in which employees were granted SAYE in 2021 was 260—a fall from 340 in 2007-08. Secondly, the number of employees granted a new SAYE option in 2020-21 was 380,000, which was a bump up from the previous two-year period of 310,000. Despite that bump, it is necessary to go back to 2011-12 to find the last time that new SAYE grant take-up was that low.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

My right hon. Friend is making an excellent speech. Perhaps one reason why there has been such a long period without an increase in take-up is the way that people are employed. The nature of work is changing: more and more people are in the so-called gig economy—platform workers—where they are not on pay-as-you-earn. They therefore cannot take part in such schemes. Should the Government update the schemes so that those workers, and not just workers on PAYE, can take part in them?

[Sir George Howarth]

My hon. Friend must have read my mind. I will come on to that very point shortly.

As I was saying, the number of employees granted a new SAYE option in 2021 was 380,000, which was a bump up, but the last time take-up was that low was in 2011-12. In 2020-21, employees in 480 companies were either awarded or purchased shares, a figure that has fallen steadily over the past decade. For example, in 2011-12, there were 570 such firms. There are several reasons for that, but the problem is that SIP and SAYE, which were developed 22 and 42 years ago respectively, have barely changed in all that time and no longer reflect the modern workplace. The period that employees typically spend at a company has markedly reduced. Indeed, young people are often encouraged to move jobs more frequently to secure career advancement.

Delivery of Public Services

Alex Sobel Excerpts

Tuesday 28th June 2022 Commons Chamber

[Darren Jones (Bristol North West) (Lab)]

We pay taxes for the Government to run our public services, and many of my constituents are asking: what is the point? From driving licences, to passports, to immigration decisions, to dental appointments, to ambulances, to GP and hospital appointments, backlog Britain is a daily reality for so many people across the country. If Ministers were running these public services as private companies, they would all be bankrupt—and what is their response? It is to charge us more by putting up our taxes while cutting the number of frontline civil service staff providing those services. How Ministers can think that cutting staff and putting up the cost is the answer to backlog Britain, I do not know.

Ministers have said, and will continue to say, that they must take these measures—putting up taxes and cutting staff—because of the economic situation. But after 12 years of Conservative economic mismanagement, they have only themselves to blame. After 12 years of economic mismanagement, the national public debt has increased by billions, from only 60% of national wealth in 2010 when Labour left office, to 80% before covid struck, to now being nearly 100%—all under the Conservatives’ watch. After 12 years of economic mismanagement and repeated tax rises, tax revenue is projected to hit 35% of national wealth by 2025-26, which is the highest sustained level of taxation since the second world war. After 12 years of economic mismanagement, our economy has gone from flatlining to declining. Britain is becoming less competitive, less productive and less wealthy thanks to the Conservatives’ economic mismanagement.

Now more than ever, with the cost of living crisis affecting so many, the public want to know that their taxes are being spent well. Yet this Government’s disregard for public services is self-evident. Many of my constituents in Bristol North West have written to me over the past few months about the problems they have experienced at the Passport Office, which is just one example of a service in the reality of backlog Britain. All of them are desperate after weeks and months of delay. One was left waiting for nearly six months for their passport to be renewed, with their long-planned holiday in jeopardy and their formal complaints left unanswered. Another had their passport lost by the Passport Office for months, with the result that they were unable to travel to visit a sick relative. A third, also with their passport inexplicably lost, was unable to attend a relative’s funeral despite weeks and weeks of chasing.

I say to the public that they should keep a close eye on this lot in government, because rather than outlining how the Government will fix the problems, the Prime Minister’s response to backlogs at the Passport Office was to threaten the service with privatisation. Year after year, cut after cut, I worry that our schools and hospitals could suffer the same fate. We are an ageing population, and the British people will need to rely on our national health service and social care more in the future, yet right now our health service is struggling to cope.

A constituent recently wrote to me to share their experiences of needing an ambulance during an emergency. They reported that they had to wait for as long as 12 hours for an ambulance to arrive after first calling 999. They explained how they now worry about dying alone in the future. Another explained that they were forced to wait for two months, rather than the expected two weeks, for an urgent cancer referral to specialists. If we want Britain to be competitive in this globalised world, our young and working people need to receive the best education and healthcare available. However, because the Conservatives have left the economy smaller, poorer and more indebted, we will have less money to pay for those public services. Bit by bit, those who can afford to use private services, whether dentists, GPs, care homes or private tutors, will have no choice but to do so—many already do.

I have spoken before in this House about the breadth of problems my constituents have encountered in trying to access NHS dental services, which, in my view, have largely been privatised already by the back door. Constituents tell me that waiting times are getting worse and worse, and that the Government fail to intervene. Next, I am sure that the Conservatives will encourage those who can afford it to go private, leaving underfunded public services for those who cannot. Before long, our public services will be changed forever, with only those families able to afford to pay for the best from the private sector able to get the support they deserve.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

My hon. Friend is making an excellent speech, including on privatisation, but there is another point, which is that the poorest in our society pay the most for services. They pay the most for banking services, and they pay the most for energy through prepaid meters and other things. We have a further widening, not just of incomes, but of costs to the poorest in society, pushing them further and further away from being able to live decent lives above the breadline. Is that not a broader effect of what is going on?

[Darren Jones]

My hon. Friend is right, and it is for the Government to do something about it. What is the point of having a Government or paying taxes if the Government stand by and say, “Oh well, this is just something that we cannot really affect”? Inequality is growing and it is now impossible for people to make themselves wealthy in our country without inheriting wealth. These issues are getting worse and worse, and the Conservative Government think it should just be left to the market and that the Government have no role to play.

In the backlog Britain that exists in reality today, whether that is passport services or elsewhere, Ministers sit by. They blame anyone else they can think of and threaten public services without taking any responsibility for their role as Ministers of the Crown. It is their job to fix these issues. Why are they not doing so? Until I see the Conservatives get a grip of the economy—[Interruption.] The Chief Secretary to the Treasury and the Minister for Security and Borders are chuntering, but they are welcome to intervene.

Tackling Short-term and Long-term Cost of Living Increases

Alex Sobel Excerpts

Tuesday 17th May 2022 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

In this Queen’s Speech, the Government are faced with the twin challenges of the cost of living crisis and a climate crisis, in a period when we are emerging from the greatest pandemic in 100 years. The times call for a big, brave response—a game-changing policy that makes energy secure, ensures rapid decarbonisation and weans us off gas. At the same time, with rising prices and stagnant wages, people need relief, especially on the most essential bills, including energy, water, housing and transport.

Given the measures brought forward over the last few months and in this Queen’s Speech, it feels as though the Government abandoned COP26 as soon as the doors of the Scottish Event Campus were closed. It is not just individuals and families who face this crisis, but businesses, which have the highest cost pressures and the highest tax burden in 50 years. The Conservative party thinks it is the party of business, but the pandemic taught us that that is only the case if your chums own the business. The millions working in small and medium-sized enterprises who were not fortunate enough to go to school with a Cabinet Minister, or to run a Cabinet Minister’s local pub, get no help at all. It is the chumocracy response to a crisis.

This Queen’s Speech provides not an ounce of relief for those struggling with costs and in dire need of a pay rise. To meet the challenge, we need an energy security Bill that takes a quantum leap in ambition, compared with what the Government have provided so far. I would expect, as a minimum, to see in the Bill a retrofit revolution, not a repeat of failed previous schemes such as the green homes grant. We need a serious delivery body to deliver adequate insulation for every building in Britain; serious funding for the sector; a mass apprenticeship programme; a stellar leap in decarbonisation, involving district heat and power, heat pumps and hydrogen; and an annual target for a reduction in household energy bills and real-terms carbon emission reductions. The future system operator needs to have real teeth to be able create a two-way smart grid that takes advantage of battery storage and home electricity generation.

We must deliver the much-needed windfall tax on energy that nearly everybody, particularly Opposition Members, have called for, but we should go further. We need real measures on the energy price cap that offer real protection. The current cap does not balance excessive energy producer profits against costs. Why is there not a mechanism in the Bill to smooth profits against the costs to consumers in the long term? Why are the Government not lifting their ban on onshore wind? Polling shows that it is popular if community-owned, and it is one of the cheapest renewable technologies. If we doubled capacity, we could power 10 million homes, weaning them off gas. Why did the Government cut the solar feed-in tariff? That has decimated the domestic solar market, and stopped people, particularly those in social housing, getting solar. As a minimum, the Government should introduce a social feed-in tariff.

Finally, we have heard a lot about food banks during debate on this Queen’s Speech. Food banks are a stain on our society, as they expose the poverty the Government have allowed people to fall into. No one looks forward to using a food bank, and no one is proud of using a food bank. Let us see the £20 of universal credit returned to people. This Government are not just lacking in ambition; they are failing big time.

Tackling Fraud and Preventing Government Waste

Alex Sobel Excerpts

Tuesday 1st February 2022 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

The hon. Member’s experience is really useful in this House. I have found, through a case involving one of my constituents, that the perpetrators of fraud are not being pursued and that the victims of fraud are being targeted, particularly by HMRC, for tax liabilities that should rest with the perpetrators. Does he agree that an economic crime Bill is really necessary to protect the victims of fraud, not just from the perpetrators but from tax liabilities?

[Simon Fell]

The hon. Member makes a valid point. Too often, people are subject to fraud and they get almost no response whatsoever. That undermines faith in the system and in policing. In some truly terrible cases, it has a huge emotional and psychological impact on the victims.

As I was saying in answer to the previous intervention, we need to give law enforcement, the public sector and the private sector the tools they need to better share information so that they can drive some of this stuff down and start to turn the ship. Prevention is better than cure and, as great as the taxpayer protection taskforce is, we need to invest early on in spending a fraction of the money on stopping the money walking out the door, rather than trying to recover it after the fact. Data sharing is the key to that.

As the MP for Barrow, the home of the national deterrent, it would be remiss of me not to linger on some of the points that have been made by the Opposition on defence spending, which has been called out as an area of waste. I have read the report that this claim is based on, and I have to say that I am somewhat sceptical about some of its claims. It is of course crucial that the Government improve on the procurement of defence matériel, and on the contracts they sign. Some of the details in that report do raise eyebrows. They relate to accounting adjustments, extensions and overruns, which are not the same as waste, let us be honest. Going into the detail of the report, we see that two of the programmes commissioned by the Opposition account for half the waste being claimed: Nimrod, which accounts for £3.7 billion; and aircraft carriers, which had a £2.7 billion overspend priced in.

Downing Street Christmas Parties Investigation

Alex Sobel Excerpts

Thursday 9th December 2021 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

An event, gathering or party is

“any group of three or more persons who have assembled or gathered together for a social occasion or other activity.”

The Prime Minister has repeatedly said there was no party. The Minister now talks of a gathering. So does the Prime Minister now doubt his own version of events? Will the Cabinet Secretary also be investigating the cover-up of parties and gatherings at No. 10 Downing Street?

[Michael Ellis]

The hon. Gentleman should wait for the scope of the investigation, which will be made clear in a document laid in the Library of the House later today.

Community Debt Advice Services

Alex Sobel Excerpts

Wednesday 1st December 2021 Westminster Hall

[Alex Sobel (Leeds North West) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Ms Bardell. I start by thanking my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) not only for securing this debate, but for becoming a formidable champion for debt and welfare advice services up and down the country.

We are in the middle of a perfect financial storm. Increasing taxes, soaring inflation, the gas price crisis, the end of furlough, the removal of the universal credit uplift—the list goes on. As a nation, our finances are being squeezed more tightly than ever before, and what we have to show for it is an increase in personal debt. At least 7 million adults are currently behind on at least one household bill. The Bank of England has told us to expect a sharp increase in defaults on household and business loans, as well as a coming sharp rise in the cost of energy over the winter.

Perhaps it is unsurprising, then, that the newly-crowned most popular show ever on Netflix revolves around the central theme of crushing personal debt. We should make no mistake: whether through malnourishment, fuel poverty or, most commonly, poor mental health, debt does kill. It killed Jerome Rogers, who died by suicide aged just 20, having accrued debts of only just over £1,000 stemming from two unpaid £65 traffic fines. It disproportionately kills renters, the young, those on zero-hour contracts and people of colour.

But there is help at hand. Some of it comes from our own offices and the hundreds of dedicated caseworkers who work so hard for MPs, dealing with the broadest range of issues imaginable in what can often be a fairly thankless task. We all thank our staff for the work they do. Pre-pandemic research from the CAB found that more than three quarters of MP caseworkers had dealt with issues pertaining to bailiffs, and still more are dealing with a case load characterised more and more by personal debt and the issues it causes.

MPs’ offices, however, are not debt advice centres. Our staff do not have the time and, although I am lucky that my senior caseworker is also an experienced debt adviser, most of us are unlikely to have specifically trained staff in our offices. When I heard that MaPS was proposing a rise in funding for debt advice services, initially I thought I would be pleased, especially given that the predicted amount would rise by 60% by the end of the year; but my concern, like that of everybody else here, is that most of the funding is set to go to a handful of national services offering advice over the phone or online.

That change in funding strategy will have the impact of cutting face-to-face debt advice by possibly as much as 50% to 60%. I thank Unite the union for its campaign to support the retention of and possibly an increase in funding—it is defending not only its workers, but people in the most awful circumstances, and going above and beyond the remit of a trade union into broader social campaigning.

In Leeds, the decision will mean that at least three out of the four MaPS-funded services will lose advisers. For the benefit of those familiar with Leeds, that means that the Ebor Gardens Advice Centre is set to lose all its debt advisers, as will St Vincent’s Centre, and Better Leeds Communities will also lose half its advisers. To add insult to injury, Leeds City Council was not consulted prior to the recommissioning, and I am sure none of our other local authorities were either.

All those services are based in the constituency of my right hon. Friend the Member for Leeds Central (Hilary Benn), but they cover the whole city—a city with eight constituencies and 800,000 people. The important thing to remember is that those centres are not just there for debt and welfare advice; they are multi-purpose community centres. If someone goes in to see a debt adviser and does not have any food to feed their children, the centre will give them a food parcel. If someone is suffering from crushing mental health problems, they will be taken down the corridor to the counselling service. If someone has had nothing to eat that day, they will be taken downstairs to the café. Sorry—I am getting slightly emotional because I have a lot of experience with these organisations. I am thinking about people I know who have been to them. If someone needs to go to court, a person from the centre will physically go to court with them, hold their hand and support them through the process—an absolutely awful experience for anybody who has to go through it.

Those multi-service community centres cannot be replaced by a screen or a phone. The Minister really needs to think about that. We are not just talking about the fact that people will not have a service that can deal with their debt; they will not get support at all. Many, many people who face debt crises already have suicidal thoughts. We will see a big increase in suicide rates, pressure on A&E and the inundation of hospitals and mental health institutions, just for the sake of saving a fairly small amount of MaPS funding.

Those organisations, and so many like them up and down the country, do vital and essential work. Experienced debt advisers can be the difference between shelter and homelessness, between happiness and despair, for many people. They change and save lives. Once they are gone—once they have left the profession—it is very hard for them to come back. These are not well paid jobs.

[Jim Shannon]

It is a vocation.

[Alex Sobel]

Absolutely, it is a vocation—a passion. Debt advisers want to help people. They want to save lives. When they leave the profession, they are very well qualified to work in many other areas, including financial services, where they will be paid much more. Once they’re gone, they’re gone.

Every community needs specialist debt advisers who are available to those who need them. I am sure that, as MPs, everyone in the Chamber can appreciate that people need face-to-face support for many different reasons. That is one reason why we hold surgeries for our constituents, but we cannot be the last emergency service; we need these specialist services. I therefore ask the Minister today to stop the procurement exercise and retender it with a priority on face-to-face debt advice, as well as online and phone advice, so that we get the services people need and avoid a potential crisis in this country with severe loss of life.

Working People’s Finances: Government Policy

Alex Sobel Excerpts

Tuesday 21st September 2021 Commons Chamber

[Alex Sobel (Leeds North West) (Lab/Co-op)]

My hon. Friend is making an excellent speech. Payday lenders —loan sharks, really—are charging exorbitant interest. The Government changed the regulations in 2017, but that has not helped at all. In the credit union market, which we particularly support, credit unions are absolutely at their limit because of covid, but the Government have not stepped in to support those low-cost lenders at all. It has been a boon to payday lenders, but for low-cost lenders such as credit unions, which are membership organisations, the Government have done absolutely nothing.

[Jessica Morden]

My hon. Friend has made an extremely valid point. I see that at first hand in my constituency, and I hope that Ministers will note what he said, take it away and actually do something about it.

People are using credit, including high-cost credit, to cover essential outgoings—spending on groceries, energy bills, and school books and stationery for children. Those on the lowest incomes are also bearing the brunt of the rising food prices that we have talked about today. I pay tribute to Raven House Trust food bank, Caldicot food bank, and all the other food banks that serve Newport East for the fantastic work that they do to support people. I also pay tribute to the community and the churches for supporting those food banks during what has been a very difficult time.