Academies (Funding)

Andy Slaughter Excerpts
Thursday 16th June 2011

(13 years, 1 month ago)

Commons Chamber
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Nick Gibb Portrait Mr Gibb
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My hon. Friend raises an important point, which goes to how to handle opposition. That is why I asked the right hon. Member for Leigh the questions that I did. This is not about just jumping on the latest bandwagon of a Financial Times report; it is about working out where the Opposition stand on issues such as raising the bar on standards in secondary schools and how to tackle the 200 worst-performing primary schools.

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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Since the beginning of the year, at the request of parents in my constituency, I have been trying to find out the funding basis of the several free schools due to open there. I have with me correspondence from the Department giving every possible excuse for not giving that information—it even makes “The dog ate my homework” sound plausible. The last correspondence, from two months ago, concerned my appeal against the refusal under the Freedom of Information Act. I have had no response whatever from the Department, which is concealing the information either because it does not know it because it is incompetent, or because free schools are being treated in a preferential way. Will the Minister please now answer those questions?

Nick Gibb Portrait Mr Gibb
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Details of free schools will be published once they open, so the hon. Gentleman will be able to see all that information once that free school opens. We are concerned about disclosing details of proposals for free schools where they have been turned down, because that can cause embarrassment to the individuals who have made those proposals, who will sometimes be teachers who have existing jobs. There are all kinds of reasons why we have to maintain confidentiality for those proposals, but all those details will be made available for any free school that opens.

English for Speakers of Other Languages

Andy Slaughter Excerpts
Tuesday 3rd May 2011

(13 years, 2 months ago)

Westminster Hall
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Virendra Sharma Portrait Mr Virendra Sharma (Ealing, Southall) (Lab)
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I congratulate my hon. Friend the Member for Lewisham East (Heidi Alexander) on securing this important debate. Indeed, the number of Members present shows how essential it is.

As time is short and many have spoken on the matters about which I would have liked to speak, I simply support the ideas that have been expressed and recognise the feelings in their constituencies. As a person who had little knowledge of English 42 years ago, I know that without the opportunity to learn the language in this country I probably would have been working on the factory floor. In today’s circumstances, I would probably not even have had the chance to work.

Ealing, Hammersmith and West London college in my constituency is one of the largest providers of ESOL courses in the UK, with almost 3,000 students at its five campuses. More than 2,000 of the students are women, many of whom will now be denied the chance to improve their English, their job prospects and their children’s chances of fully integrating into society. The college told me that it was concerned that the high proportion of women who will be affected will have a severe impact on families and on the next generation. They said this change will stop English being spoken at home, which means that the fluency of the younger generation will continue to be affected, thus ensuring that the literacy and language problems already present in our schools will be perpetuated, affecting educational standards.

The college also spoke to me of its dismay that women in particular will now be denied the chance to learn. It said:

“it seems to have been forgotten that many of these students have escaped serious repression in their own countries. The women in particular are also frequently fighting their husbands to have the freedom to study. The real issue, therefore, is that they have come to this country to find their voice, and in return we are locking them into silence.”

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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My hon. Friend rightly concentrates, as have others, on the effect on students, but Ealing, Hammersmith and West London college—the largest provider of ESOL in his constituency and mine—will suffer badly because ESOL courses give people access to other courses enabling them to gain further qualifications. The college will lose £5 million, and its successful future will be jeopardised by these changes, which are very short-sighted.

Virendra Sharma Portrait Mr Sharma
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I agree with my hon. Friend. The colleges and campuses are in both of our constituencies, and I am aware of his point.

The students at West London college felt so strongly about the changes that they organised an ESOL day of action, which I, and probably many other Members in their own constituencies, attended. The students are worried that their voices are not being heard by the Government. Now is the time to stop and listen to those who will have to live with these changes. The Prime Minister wanted the Government to go further in helping those who come to the UK to learn English, and we must ensure that that wish is fulfilled. I hope that the Minister will take note of the views that are being expressed not just by me but by many of my colleagues who have experienced similar calls from their constituents. He must ensure that people have the opportunities and resources to integrate into our society and to improve their working opportunities so that they, too, can contribute to the future of this country.

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Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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I want to make two points, briefly. First, as my hon. Friend the Member for Ealing, Southall (Mr Sharma) has already said, Ealing, Hammersmith and West London college is one of the largest colleges in the country and it is the largest provider of ESOL in the country; it has almost 3,000 ESOL students. Of the college’s total number of students, 84% are of non-white British heritage, and for 70% English is not their mother tongue. Among the students, there are 100 nationalities and 70 languages are spoken. Of those taking ESOL courses, 65% are on inactive benefits and 77% are women.

Those statistics show that ESOL is fundamental to the life and success of that college and the surrounding community. This measure is not simply “another cut”; it is destroying the basis for education for thousands of people in my constituency and the neighbouring constituencies in west London—and, of course, over a wider area.

My second point is that this policy is not only about education; it is exactly to do with what the Prime Minister has said about British values, culture and traditions. In my constituency, we had an ESOL day on 24 March, when the students at Ealing, Hammersmith and West London college came together to celebrate their own history and culture, as well as what ESOL had given them. They showed great enthusiasm, producing a magazine written in English in which they not only showed off their skills but said what ESOL meant to them. I will read out one excerpt from that magazine, from Mohammed Conde, who is from Guinea:

“If you don’t speak English, that means no life for you. How do you expect to live in this country if you’re not able to speak English? There are many things you have to understand about the country. For example, the laws, the history, the culture and the lifestyle, and all this only happens when you start speaking English.”

That could have been the Prime Minister speaking.

If the Minister will not listen to Mohammed Conde and the other students at the college, perhaps he will listen to the Prime Minister and look not only for people to succeed economically in this country but for a more cohesive society as a consequence of preserving ESOL for students who simply will not be able to afford the amount—up to £1,200—that they will have to pay in the future. That will destroy our colleges and the future of many young people and adults in my community and others.

Sure Start Children’s Centres

Andy Slaughter Excerpts
Wednesday 27th April 2011

(13 years, 2 months ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
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The hon. Lady is a highly energetic constituency MP—indeed, I was represented by her for a brief period, and I know how passionately she takes up such causes. However, Westminster, like many other local authorities, is succeeding not just in keeping the Sure Start children’s centre network open, but in providing an enhanced service for children and young people. The question that she and every Opposition Member must address is this: if they believe, as I do, that Sure Start is a valuable service, and that it is a good thing that the Government have set up an early intervention grant, and that we are devoting resources and intellectual energy to the early years, will they support the coalition in the steps that it is taking, or do they have an alternative plan? Do they believe that money should come from other areas of Government expenditure to spend more on any of those services? If they believe that we should spend more than we are spending, can they explain which services they would cut or which taxes they would increase? I am very happy to give way to any right hon. or hon. Member who can enlighten me on Labour’s economic policy, including the hon. Member for Hammersmith.

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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Let us deal with the figures. If the Secretary of State has come along simply to give incorrect figures, he does not help the debate at all. Hammersmith and Fulham was spending £3.983 million last year; this year it will spend £2.206 million. Most of the nine Sure Start centres will have their budgets cut. Some will receive £19,000 to be satellites—the £19,000 is for the upkeep of the premises, but services will be delivered on-site by another children’s centre. The Secretary of State must stand by his words if he says that that means he is keeping the centres open. However, his stance in this debate and making such assertions does him no credit. He should at least live with the consequences of his actions.

Michael Gove Portrait Michael Gove
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The consequence of the Government’s actions is that we have ensured, as both Anne Longfield and Anand Shukla have pointed out, that there is enough money to maintain that network. In addition, under Conservative leadership, Hammersmith and Fulham has been singularly successful in reducing the council tax burden on its ratepayers, and in diversifying the sources of funding it receives to support education and care for children and young people. It is a superb local authority. Instead of continually talking down the service that is provided by public servants in Hammersmith and Fulham, it would be nice to hear from the hon. Gentleman some sunny, uplifting words, rather than grim predictions of disaster, which as we have just heard, turn out never to be true.

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Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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It does not help the House if the Secretary of State comes here to defend the indefensible or to use what is essentially wrong information to do so. I will therefore correct some of the figures and facts that he got wrong—and, for the record, I will be doing so for the third or fourth time. I should also say that I do not have any local elections in my constituency. Indeed, it is somewhat insulting to say that Members who have supported their networks of children’s centres and been proud of them—that probably goes for Members from all parties in this place—have come to this debate simply to score cheap political points. That is not the case. I do not know whether my words will influence the outcome of the alternative vote referendum—if they lead to a yes vote for AV, then all well and good—but I assure the Secretary of State that that is not my intention today.

Hammersmith and Fulham council began on 10 January this year with a report, passed in full, that said:

“At present H&F has a network of 15 children’s centres…We are looking at options to restructure this provision in line with the likely levels of efficiency and grant reductions expected…However, it is not likely under this scenario that LBHF could continue to directly fund more than 6 Children’s centre teams.”

The cut in grant is about 13%, whereas, as I said in my intervention, the cut in the budget is about 45%. It is therefore no good Hammersmith and Fulham hiding behind the cut in grant. It is right to say, however, that as soon as that announcement was made public—albeit shortly after Christmas—there was, shall we say, a lively reaction in the constituency and the borough. A lot has happened in the three months since, partly because the local authority realised that it might be in breach of its statutory duties, which were quite properly introduced by the previous Government.

Those duties are such that either, first, the council would have had to return the nine centres that it was closing—those whose grants it was cutting entirely—to the Department for Education, or would have been liable to do so; secondly, it had not performed its statutory duty to consult before making the decision; or, thirdly, it was no longer clearly providing a network of children’s centres. The local authority’s response was based on trying to bring itself within the law, not on recognising it had made a mistake about levels of provision. Every one of the minor and incremental changes that it made was more to do with PR than with the service or keeping all the centres open. The general amount given to the nine centres that were, in fact, closing was £19,000. The council said that after consideration and consultation—it was a substantial consultation, with many thousands responding in fairly clear terms—it would increase the budget. In some cases, the budget was increased by £1,000 a year, so a budget that was £19,000 became £20,000, where previously it had been £250,000. Clearly the Secretary of State has been briefed in same propagandist way—“Yes, we’re going to open a new centre.” However, the new centre is one of the libraries that the authority is closing, and it will also receive a grant of £19,000, so we will have another empty building.

The third thing that happened was a substantial protest from my constituents. There were many demonstrations, including one attended by my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson), the shadow Children’s Minister. We reciprocated by bringing a party of Hammersmith and Fulham parents to the mother’s day protest outside No. 10 Downing street and presenting 2,000 signatures from parents in my constituency against the Sure Start closures. When the inevitable decision was finally made on 18 April to go ahead with the closure programme, 150 parents with buggies again turned up to protest.

I pay tribute to Ruthie Walsh and those involved in Hammersmith and Fulham Parents Unite for organising those protests, not because they are politically motivated, but because they care about their children and they absolutely value the service. Many say it is a lifeline, helping them through relationship break-ups, or loss of job or income, or even helping them to get back into work, providing not just child minding or play services but high quality support, particularly for children with developmental difficulties or special educational needs. That is what Sure Start provides and what, however we dress it up, we are losing when we close nine centres in Hammersmith and Fulham. After all the protests, all the jiggery-pokery and all the propaganda, the net effect is that the budget is indeed being cut by 45%, from almost £4 million to just over £2 million, that the number of Sure Start centres in Hammersmith will now be six, rather than 15, and that the number of children served by those centres will go down by two thirds, to no more than 2,000. That is the reality, with the spin removed, about the services that will be provided.

It is no coincidence that the pattern of Sure Start cuts fits the pattern of cuts in other children’s services. Four of the borough’s seven youth clubs have been closed in my constituency, along with after-school services, of which we are very proud, play services and a complete network of dedicated services. That has all been shut down, and because of Government cuts, the playbuilders scheme and the Building Schools for the Future programme have also been cut. The impact of local government cuts, as well as those directed through local government from central Government, unavoidably bears down overwhelmingly on children and people on low incomes in my constituency.

One of the most shameful things—this might be unique to Hammersmith and Fulham—is that rather than say, “This is regrettable, but it’s to do with finance and matters of that kind,” the local authority has tried to rubbish Sure Start as a programme. In its most recent report on the cuts, the council said that

“no Sure Start Local programme effects emerged in the case of ‘school readiness’ defined in terms of children’s early language, numeracy and social skills needed to succeed in schools.”

So there we have it: the reason for the almost 50% cuts in children’s centre budgets and the two thirds cuts in provision for children is that they do not work. Is that the Government’s attitude? Despite the protestations, do they actually think that we are talking about a wasteful service that should not be provided, or that pre-school services should be provided only to those who can afford to pay for them? To give the council credit, that is clearly the view of Hammersmith and Fulham, but it is not the view of my constituents, irrespective of income or background.

I do not want to take up too much time, but I want briefly to mention some of the Sure Start centres in my constituency that cater for and care for thousands of children every year in Hammersmith and Fulham. Cathnor Park family centre was the first to open in 1998, and the council now describes it as a “super spoke”—it is much better than a satellite: it is a super spoke. The centre receives £50,000 in funding, as opposed to the £473,000 it received last year. The same goes for Broadway family centre, which also received £473,000 last year, but which will receive £19,000 this year. The funding for Wendell Park, my local Sure Start centre, has been cut from £250,000 to £25,000, and that of the Bayonne family centre has been cut from £250,000 to £19,000. The Normand Croft centre’s funding has been cut by the same amount.

Those centres are popular, well used and well loved by everyone who uses them. They have established themselves and they believed that they would continue because they were told by politicians of all parties that they were providing a wonderful service to the parents and children of the borough. However, they will all be gone. We do not know about closures in children’s services yet, but we know about the closures of youth centres and play centres. Not only are the services being closed, but the buildings are being sold off. The assets are being disposed of, so, if there is another Labour Government, or another Government who are more enlightened than this one, or a local authority able to provide the services, it will not be possible to recreate them. They will be gone for good. That will be the legacy of this Government, and it is the legacy of the Conservatives in local government in London.

These decisions are ideologically driven. If they were driven by the need to save money, we would be seeing what the Minister of State promised us when she responded to debates on the subject—namely, cuts at a level that would allow the networks to survive. I have said this before to the Secretary of State: he should intervene on those local authorities that are choosing to close their children’s centre networks or not to provide such networks. They could be in breach of their statutory duty, and there will certainly be a legal challenge in Hammersmith and Fulham. There has not been proper consultation, and we have heard nothing but spin and disinformation, which, to his discredit, the Secretary of State has repeated today. The Government purport to believe in children’s centres and early years development, yet local authorities are cutting services to the bone and closing them down, to the extent that nothing remains except the shell of the building. The Government should intervene to stop them.

Sure Start Children’s Centres

Andy Slaughter Excerpts
Wednesday 2nd March 2011

(13 years, 4 months ago)

Commons Chamber
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Graham Stuart Portrait Mr Stuart
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I am happy to congratulate my hon. Friend’s council on adopting what it considers to be the most effective way of delivering the improvements that we so desperately want for young people. However, the number of NEETs has been rising, and research suggests that the outcomes from children’s centres so far are not what we would wish them to be.

We have heard about the bundling of funds and the relaxation of ring-fencing. Ministers are still saying that every Sure Start or other children’s centre should be able to stay open, but “should be able to stay open” and “will stay open” are two separate concepts. I should like to know from Ministers, and indeed from Opposition spokesmen, whether they are fixated on the importance of maintaining buildings from which services of varying quality emanate. Is that the be-all and end-all, or are we prepared to give local authorities the power to decide how best to provide early intervention, which may well be through a rationalisation of children’s centres? I do not know whether the Front-Bench teams think that the buildings are the be-all and end-all and that any reduction from 3,600 will be a disaster for our young people, or that local authorities should be allowed to think for themselves and tailor local solutions to local needs. I would like a clearer steer from both Front-Bench teams so that we have a better idea of where we are going.

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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In the last Parliament, the hon. Gentleman and I served together on the Select Committee and I respect his opinion. He has touched on the key question. The Government are cutting the funding to my local authority by about 13% and they say that leaves enough money to keep the network open, but the local authority is cutting by 45%, which clearly will not leave enough, so the majority of centres will close. In such a situation should the Government intervene or should there be localism at its purest, and if the local authority wants to close down most of the centres should it be allowed to do so?

Graham Stuart Portrait Mr Stuart
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The hon. Gentleman is right to pose this question about the right response, and we need a clearer steer. While making claims about localism, will the Government in fact quietly put pressure on councils and say, “You must keep these centres open”? I recognise why the hon. Gentleman says the last Government put all these things in place and the new Government are threatening to dismantle them while denying doing so, as that is an understandable line to take in opposition, but rationalising these centres could be the right thing to do. It could be that, after sober analysis and assessment of the needs of its local community, a local authority decides that its children’s centre buildings are not working well enough and it cannot get the teams to deliver in the right way but thinks it will be able to find a better way of providing these services. I would like to know how fixated we are going to be on children’s centres per se, rather than on delivering the outcomes for young people.

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Matt Hancock Portrait Matthew Hancock
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Absolutely. My own county council, Suffolk, did not do very well in the distribution of the local authority grant, but because it is making savings in back-office costs, re-engineering how it delivers services, reducing the cost of services and being flexible in how it delivers them, it is able to keep its centres open. I absolutely take the hon. Lady’s point, and the crucial point is that councils ought to be making savings in the back office and re-engineering their services to protect front-line services, as Suffolk is doing.

Andy Slaughter Portrait Mr Slaughter
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I will try to keep this non-party political, but since the hon. Gentleman makes that point, I will ask him the same question that I asked the Chair of the Education Committee. If councils are closing most of their Sure Start centres, should we just shrug and say, “Well, that’s a matter for localism”, or, given what the hon. Gentleman has said, should the Minister take an interest?

Matt Hancock Portrait Matthew Hancock
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There is of course a statutory amount of Sure Start provision that must be in place, as I am sure the Minister will spell out in more detail. The question is whether services can be provided in a way that delivers better value for money, through savings in the back office. I recently chaired a report on councils’ ability to save money and deliver services better by bringing together the delivery of local services. Reference was made earlier in the debate to the fact that when that has been done, it has not only saved money but actually improved services. The right hon. Member for Birkenhead (Mr Field) talked about Sure Start centres that also have health and social services, so that they are a one-stop shop. Those are exactly the sort of innovative solutions that we need to examine.

One example of a council that is doing that extremely well is local to the hon. Member for Hammersmith (Mr Slaughter). Hammersmith council, and others across the country, are saving money by changing how services are delivered. That is far better than cutting front-line services, and I commend that approach. I mention that not to make a party political point but to argue that by allowing local councils on the ground to spend money in the way that they see fit, with the flexibility to deliver early intervention as best they can, we allow innovation and improvements in delivery instead of the attitude that the man in Whitehall knows best, which top-down provision and tight ring-fencing bring.

Andy Slaughter Portrait Mr Slaughter
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The theory sounds fine, but the practice is different. I am trying not to be party political, but let us say that a council decides it is going to cut the Sure Start budget by about half and close most of its centres. That cannot be dressed up as back-office services, and for many children, the essential services with which they are currently provided will not be there. Should that be a matter for the Government to take an interest in?

Matt Hancock Portrait Matthew Hancock
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That is why it is important to have a specified national minimum level of provision, and then allow councils to ensure that they meet—and, one hopes, exceed—that level. The reason for allowing local innovation and flexibility with a national minimum level is to enable different approaches to be taken in different places, so that best practice can emerge. That lets local councils and people deliver in the way that is most helpful and appropriate to local people, but it is also about ensuring that instead of a centralised, bureaucratic system, we have a local system that responds to local need.

We heard earlier from the hon. Member for Huddersfield (Mr Sheerman) that we need better management, but we have had a centralised system for years. As a member of the Public Accounts Committee I am obviously well aware of National Audit Office reports, and, sad to say, the NAO found that the amount of formal child care among the most disadvantaged fell between 2004 and 2008. Instead of leading to more provision for those people, the centralised approach actually led to less, so let us try a different way.

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Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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I have raised the cuts in Sure Start provision in my constituency with the Minister on a number of occasions, but I make no apology for raising the matter again today. She will accept that this is serious and that I am very concerned. They are the most substantial cuts in public services so far in Hammersmith—from what I have heard today, there are some horrific stories from around the country—and the cuts in my constituency are the largest proportionately anywhere, in that nine of 15 centres will close.

When the Minister responds to the debate, I want her to answer this question, which I have put to the Chair of the Education Committee and others. What is the proper role of the Government in local authorities that do not do what the Government say they should do? Given all the talk of localism, and the fact that the Government are happy to intervene when they think that councils are not clearing snow quickly enough or emptying bins often enough—[Interruption.] I am directing my comments to the Minister, who I hoped would listen to them, but apparently she will not—[Interruption.] I will pause, if you do not mind, Madam Deputy Speaker, until the Minister pays attention, given that I am asking her a direct and specific question. She persists in talking to her colleagues and not listening, which is somewhat discourteous. I am talking about the majority of services for the under-fives in my constituency being cut by her Government, so she could at least have the courtesy to listen to my comments.

Sarah Teather Portrait Sarah Teather
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I sincerely apologise for not listening to the hon. Gentleman—I was trying to hear when this debate was going to wind up and when I would begin my speech—but he now has my full concentration.

Andy Slaughter Portrait Mr Slaughter
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I am grateful for that. The Minister has said in previous debates that she has concerns about what is happening in Hammersmith. Her view—she has expressed it both in answer to parliamentary questions and in debate—is that there is sufficient money in the early intervention grant to preserve the network of Sure Start centres. I am sure she will repeat that view today, in spite of a cut of about 13% coming from central Government—certainly my Conservative council has said that the cut in Sure Start funding through the early intervention grant is 12.9%.

Given that we are talking about what are already pretty lean organisations, as my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger) said, we could argue about whether even a 13% cut can sustain the current professional network. However, the Minister has set out her stall on that, so I will address the issue locally, because even on the basis of the cut of about 45% that we are facing—a cut that has been revised slightly downwards—the preservation of Sure Start in Hammersmith is demonstrably unsustainable.

Without going into too much detail, there are one or two points from my local examples that bear analysis, because similar things may be happening elsewhere in the country.

Sharon Hodgson Portrait Mrs Hodgson
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Before my hon. Friend moves on, I would like to get some clarity on the assertion, which we keep hearing, that the early intervention grant is being protected in cash terms. When we look at the technical note, which I continually refer to—I even carry it round in my handbag, to have it handy at every opportunity—we see a £311 million in-year cut for 2010-11. It looks as though the grant is being protected in cash terms, but a £311 million in-year cut is being taken off the bottom, so it is not protected in cash terms at all. When we bear that in mind, we see that we are talking about a 20% cut over three years.

Andy Slaughter Portrait Mr Slaughter
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Indeed, and with a 13% cut in the first year for my area. However, if my hon. Friend does not mind, I want to leave her and the Minister to debate that point, which is a valid one. We heard a disingenuous speech by the hon. Member for West Suffolk (Matthew Hancock), who implied that there was no need to make cuts of that order and that the Government were in some way protecting Sure Start. On the figures that my hon. Friend has given, that is not true around the country. However, if she does not mind, I will leave that point because, from my perspective, we would be grateful for a 13% cut—if I can put it that way—rather than what is actually happening.

Gordon Birtwistle Portrait Gordon Birtwistle (Burnley) (LD)
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Will the hon. Gentleman expand on this 45% cut? It has been said that the cut adds up to 15% over three years, so has he not got it the wrong way round? It is not 15 multiplied by three; it is 15 divided by three. Could he expand on how he has got to 45%?

Andy Slaughter Portrait Mr Slaughter
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If the hon. Gentleman bears with me, I am sure that he will get the point that I am coming to, but, in essence, because the money is not ring-fenced, my local authority has voluntarily chosen, in the face of what it says is a 13% cut from the Government, to make a 45% cut in the first year. That came about in the following way, which bears some analysis.

Karl Turner Portrait Karl Turner
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It seems that the temptation for Government Members is to say that councils are making decisions for political effect, but that is simply not true. My Lib Dem local authority settled its budget last Thursday, and the cut to Sure Start children’s centres was huge—something like more than 50%. That was certainly not done for political effect, because as a Lib Dem council it was already very concerned about the prospect of annihilation at the May elections.

Andy Slaughter Portrait Mr Slaughter
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I am grateful to my hon. Friend, but I shall now try to make some progress.

On or about 27 December—a time when we are all assiduously reading Government and council documents—my local authority published a report on family support, indicating what funding would be available over the next financial year. The report addressed Sure Start—not directly, but obliquely—first by rubbishing Sure Start provision, saying that although the centres were

“clearly popular with families, and seem likely to have some preventive impact, we have much less clear evidence about the degree of impact this has—including on the ultimate number of children falling into child protection”,

and that

“early studies showed no clear evidence of impact on early school results”.

That might come as a surprise to Members on both sides of the House, given that we heard my hon. Friend the Member for Liverpool, Wavertree earlier quoting the Prime Minister and Deputy Prime Minister—certainly before the election—expressing their strong support for Sure Start. However, those rather vague and grudging comments were used as the basis for reducing Sure Start funding by over 50%, with the council report saying:

“However, it is not likely under this scenario that LBHF could continue to directly fund more than 6 Children’s centre teams. In any case we would no longer seek to directly run centres”,

adding that it aimed

“to maintain some provision at most centres, through small amounts of pump-priming funding.”

In the financial section of the report, however, no money whatever was provided for such pump priming; money was provided simply to keep the remaining six centres open.

Perhaps unsurprisingly, by the time report came to committee and was due to be dealt with on 10 January, there was what might be called “a row on the town” in that a large number of people were concerned about it and turned up at the meeting. Indeed, my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) was one of them, so she might want to comment further in her own speech. At that meeting, the authority, faced with great popular disapproval, told people that they had misunderstood the position as no centres were going to be closed, and had misunderstood that the decision had already been taken as consultation was about to be launched. That is what we were told. That would have sounded quite good, save for the fact that the report was then passed in its entirety, including the 50% cut to the budget. We were in the peculiar position of being told one thing when a decision had been taken that was entirely contrary to it. The situation became even more complicated when, later in the same week and rushed out in response to public demand and other factors, a consultation paper was published, with an extra £19,000 slipped in, which turned out to be the pump-priming money—the £19,000 that was going to the Sure Start centres under threat of closure.

Leaving aside the fact that this was shambolic, chaotic and no way to run anything, let alone a local authority, we need to reflect on the reasons for this process of decision making. There were three. The first was connected to public relations. By putting £19,000 into centres that previously had no money at all, the authority could say to the general public and the media, who by this time were taking a strong interest in the issue, that it was not closing the Sure Start centres. Secondly, the consultation was done quite successfully, but it confused the parents and users of those centres, who were told that the centres were not closing but staying open as a result of this £19,000. Thirdly, and perhaps most importantly, somebody had bothered to look at the regulations, so a scrutiny report was published at the same time, making the observation:

“Local authorities have duties under the Childcare Act 2006 to consult before opening, closing or significantly changing children’s centres, and to secure sufficient provision to meet local need”.

The authority realised that it would be subject to judicial review if the consultation process did not happen. I suspect that it will still be subject to judicial review because consulting after the decision has been made is not the best option.

Sharon Hodgson Portrait Mrs Hodgson
- Hansard - - - Excerpts

I read that same paragraph in a copy of a letter from the hon. Member for Mid Dorset and North Poole (Annette Brooke), which was a response to a letter to the Minister of State, Department for Education, the hon. Member for Brent Central (Sarah Teather), from the all-party Sure Start group. I was curious because I thought it sounded like closing the stable door after the horse had bolted. Once the budget cut has been made, the consultation does not matter, because if the consultation showed that people wanted to keep the centres, where would the money come—

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
- Hansard - - - Excerpts

Order. We need much shorter interventions, as there are more Members wishing to participate in the debate.

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

The whole situation is clearly nonsense. The belated process of consultation closed on Monday 28 February, but the budget for the year was decided at the budget council meeting on 23 February. Nobody is fooled by this, and I suspect that the divisional court will also not be fooled by it when it comes to look at the decision-making process over Sure Start in Hammersmith and Fulham.

There is a fourth reason for the last-minute change of heart, whereby no money suddenly became £19,000. Another paragraph of the later report said:

“We understand that there is no expectation of claw back of capital spend on children’s centres”—

that is, by the Department for Education—

“unless the buildings are no longer used for the services for under fives and their families. We are confident that the proposal outlined above will satisfy DfE requirements.”

So one of the officers said that if the grant was withdrawn as intended and as decided, the Minister of State would come round, not to see what wonderful work had been done but to take back the buildings that had subsequently closed.

Two centres are closing in the ward where I live, in a substantial area of deprivation. About a minute’s walk from my home is Wendell Park children’s centre. A number of parents whose children attend the centre were at the seminar held this morning by the shadow Secretary of State for Education, my right hon. Friend the Member for Leigh (Andy Burnham), and I met them afterwards. They are campaigning to keep their centre open, and they are under no illusion—

Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

Will the hon. Gentleman give way?

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

No, I will not give way to the Secretary of State, at least not at the moment. If he wishes to participate in debates such as this, perhaps he should be present from the beginning. Given that when I have tried to raise this and other education issues in my constituency with him over the past few weeks his replies have been flippant and have not addressed those issues, I am in no particular hurry to hear his views on this subject. I may give way to him if I have time at the end.

Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

Forget it. [Laughter.]

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

I may give way later.

Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

I was only trying to be helpful.

--- Later in debate ---
Andy Slaughter Portrait Mr Slaughter
- Hansard - -

I think that I should sometimes say what I feel in these debates.

As I was saying, the Wendell Park parents whom I saw this morning were under no illusion that reducing a budget of £250,000 to £19,000 meant anything other than that the centre would be closed. Cathnor Park children’s centre, which is about half a mile from where I live and which currently has a budget of £473,000, is also to have a budget of £19,000 in the future. The 100 parents who turned up to a meeting at that centre two weeks ago—which none of the Conservative councillors could be bothered to attend—are similarly under no illusion about what is happening. Notwithstanding the weasel words that we have heard from certain Government Members, what is happening is that children’s centres are closing, their budgets are being withdrawn, the centre is being withdrawn and 45% of funding is being withdrawn. That is the future of Sure Start in my constituency.

Does the Minister of State take any responsibility for what is happening? I understand the rhetoric about localism, but I also understand that if we are to take seriously what the Government said before the election—that they support Sure Start and want the network to be maintained—and if local authorities, of any political complexion but in this instance my Conservative-run council, are cutting budgets by almost 50% and reducing the service by more than half in terms of the number of centres that remain open, the Government have a clear duty to intervene.

Although its budget has already been set, it is still possible for Hammersmith and Fulham to look for resources within the funds that have been allocated. This is a council that spends several million pounds on publicity. It would not be difficult for it to find enough resources to keep the Sure Start centres open, albeit at a reduced level for the time being. At present, all the centres that face closure are considering how they can save money, examining business plans and looking at ways of maintaining the service, but people should not insult our intelligence by claiming that although there is no budget and no service, centres are somehow being preserved because buildings are still standing—if they are not also withdrawn by the Government.

I ask the Minister of State to address directly an issue that she has already addressed obliquely. What is she going to do about local authorities which, despite what they have heard Ministers say about Government policy on Sure Start, persist in shutting down what ought to be a national service of which we should be proud—as I thought we all were—because they do not consider it to be a local priority?

Building Schools for the Future

Andy Slaughter Excerpts
Monday 14th February 2011

(13 years, 5 months ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

I am grateful to the hon. Lady for her point. The judge was clear that it is only with regard to the six local authorities in question that I have to consult, and that no other local authorities are either in time or entitled to mount a judicial review. The manner of the consultation with those local authorities is very much a matter for them to outline in conversation with me and the Department, but I want to ensure that the process is as fair and expeditious as possible. With respect to other local authorities, such as those in Durham, I have of course had the opportunity to visit her constituency and that of the hon. Member for North Durham (Mr Jones) to see the specific case for investment outside BSF, which I know may be necessary.

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
- Hansard - -

The Secretary of State will know that schools in Hammersmith and Fulham lost £200 million in well worked-up, mature BSF proposals. Instead, we have free schools enrolling pupils, despite the fact that they have no approved business case, their consultation is not complete and they have no secured site. Will he reconsider decision making in Hammersmith and Fulham, before he has to go back to the High Court?

Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

I am grateful to the hon. Gentleman for his point. I have had the opportunity to visit with him many of the outstanding schools in Hammersmith and Fulham, including Phoenix high school, which we both hold in high regard. The new free school that is likely to be opened, the West London free school, is being opened at a significantly lower cost than that for which schools were built under BSF. It will be in a handsome building adjacent, I believe, to the fee-paying independent school Latymer Upper, where he enjoyed such a great education.

Education Bill

Andy Slaughter Excerpts
Tuesday 8th February 2011

(13 years, 5 months ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

I appreciate that it is a live issue. One of the striking things about how the free schools programme is proceeding is that we are discovering that in some cases local authorities are happy to buy the sites themselves, as was the case in Wandsworth, and in other cases they are happy to lease them for a peppercorn rent. In specific situations where a site is purchased from a local authority, of course we will seek to ensure that the best deal possible is secured for the taxpayer and for the school and the pupils who will be attending it.

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
- Hansard - -

As the Secretary of State always has the figures at his fingertips, can he say how much the Department for Education is giving to West London free school to purchase the Palingswick House site in Hammersmith? The school was going to get a capital receipt of £8 million to develop the site for residential accommodation after it had evicted local charities from it. How much is the DFE going to pay for the site via West London free school?

Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

The full details will be disclosed when the funding agreement is signed, but I can reassure the hon. Gentleman that the amount that the DFE is investing in this four-form entry school will be significantly less than the £35 million that had to be invested under the previous Government to secure a school of a similar size. I hope that he will join me in welcoming the fact that there will be at least three free schools in his constituency helping to provide superb education for the children whom he has represented so passionately over the years.

We must all recognise that the reforms that we are talking about, including the creation of new free schools, are the sorts of reforms that we are seeing across the developed world. Ministers such as Arne Duncan and John Key in New Zealand and Julia Gillard in Australia, and countries such as Sweden, Singapore, Finland, Hong Kong, Alberta and South Korea all recognise the need to reform their education systems, and we cannot afford to be left behind. That is why this Bill includes measures to allow us to invest in the early years, improve discipline, remove bureaucracy, and raise standards for all children, with new powers to intervene directly to tackle failure. Above all, it generates more good school places for all children, especially the very poorest.

There is a key test for Labour Members tonight: will they vote against these measures? Will they vote against improvements in discipline? Will they vote against reductions in bureaucracy? Will they vote against powers to intervene early when schools are failing? Will they vote against additional cash for disadvantaged two-year-olds? Will they prove themselves to be old Labour populists or new Labour modernisers?

--- Later in debate ---
Michael Gove Portrait Michael Gove
- Hansard - - - Excerpts

I think throwing out the baby with the bathwater would be very poor practice in any Sure Start children’s centre or any other early years setting.

I agree with the hon. Gentleman that Sure Start children’s centres can do a fantastic job, which is one reason why we are providing additional support, why the Department of Health is investing in additional health visitors and why the early intervention grant will ensure that there is sufficient money for local authorities to continue to discharge their statutory responsibility.

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

rose—

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Andy Burnham Portrait Andy Burnham
- Hansard - - - Excerpts

My hon. Friend, who knows more about these matters than anyone in the House, has put the Secretary of State straight.

I have one final comment about parents. We support the extension of free early years provision for disadvantaged two-year-olds, but we are deeply concerned that that is undermined by the Government’s failure to protect Sure Start. Furthermore, giving the Secretary of State the power to define early years provision, who gets it and when they get it places question marks over the universal free entitlement for three and four-year olds. I ask him to make it clear that he does not intend to cut such provision or to introduce means-testing, particularly as fears have also been raised by the Bill’s introduction of powers to charge.

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

One of the Secretary of State’s homilies was on equal chances, but my constituency is one of the most socially and ethnically diverse in the country, and more than half the Sure Start centres are being closed by a Conservative council. The Secretary of State and his Ministers wash their hands of that, but is it not perverse to talk about creating extra provision for two-year-olds when the provision for three and four-year-olds is being cut by 50% in seats such as mine?

Andy Burnham Portrait Andy Burnham
- Hansard - - - Excerpts

The Government say that they have given councils enough money, but they have also given them a list of 20 or more things that they have to fund from the same budget as that which pays for Sure Start. How does my local authority, which is getting a cut of some £160 per head from the Government, keep all its support and provision open while other councils in other parts of the country get cuts on nothing like that scale? It is deeply unfair, and it will take away crucial services in constituencies such as my hon. Friend’s and mine.

Independent Debt Advice

Andy Slaughter Excerpts
Tuesday 8th February 2011

(13 years, 5 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

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Andrew Percy Portrait Andrew Percy (Brigg and Goole) (Con)
- Hansard - - - Excerpts

I pay tribute to the hon. Member for Makerfield (Yvonne Fovargue), who made her arguments in a consensual, sensible and detailed way, avoiding unnecessary party politicking. I congratulate her on securing this incredibly important debate. It is sad that a debate about debt has become a little too polarised at certain points, and that silly comments have been bandied back and forth. That does not help the people struggling with debts whom we should be here to protect. As important and emotive as the subject might be, reasonableness is key to making progress at all times.

On whether personal debt levels are rising, I must confess that I am not aware whether they are at the moment—I have seen suggestions in both directions—but we do know that personal debt levels have risen substantially over the past 10 years. I am not making a political point; I think that it is due to how society has changed. Debt is much more a part of our lives these days, which perhaps demonstrates why it is so important to have appropriate measures in place to protect people who cannot manage their debt. Managing debt is undoubtedly a reality of life now, and we as elected politicians must ensure that there are processes, procedures and services in place to protect people with debt.

I will comment specifically on the role of the financial inclusion fund in my constituency. I see that my friend the hon. Member for Scunthorpe (Nic Dakin) plans to speak, so I will leave it to him to deal in more detail with Scunthorpe citizens advice bureau, which serves a large part of my constituency. However, I will discuss East Yorkshire CAB, which provides services across Hull and the East Riding, including through a centre in Goole.

East Yorkshire CAB helped 13,600 clients in 2009-10, and it tells me that more than half of those cases involved debt management issues. During that period, it assisted with about £14.5 million in debt, which gives the scale of the problem that we face in this country. As other Members have said, CAB advises face to face, which is key. I note the comments of the hon. Member for Newcastle upon Tyne North (Catherine McKinnell). Like my hon. Friend the Member for North Swindon (Justin Tomlinson), she and her staff have been trained in debt management. That is certainly something that I plan to do with my staff. People come to us with a range of complex issues, and the more we can skill up our staff, the better.

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
- Hansard - -

I have been going to a lot of law centres and citizens advice bureaux recently while considering legal aid cuts. The Mary Ward Legal Centre, which manages a big contract in London, is losing 57 debt advisers due to FIF cuts. Does the hon. Gentleman believe that it is realistic to think that training my three staff members and two caseworkers can replace the 500 expert staff across the country who are being cut? It is insulting people’s intelligence to say so.

Andrew Percy Portrait Andrew Percy
- Hansard - - - Excerpts

That is an absurd comment. It is not in the slightest what I was suggesting. I simply said that those of us in positions of responsibility should do whatever we can to help in the circumstances.

Andrew Percy Portrait Andrew Percy
- Hansard - - - Excerpts

Hon. Members should listen to what I have to say before jumping up and down. All that I am saying is that training our staff to assist people who come to us with a complex range of issues is important, and that part of that training might involve directing people to the most appropriate services.

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

They will not be there any more.

Andrew Percy Portrait Andrew Percy
- Hansard - - - Excerpts

Well, if the hon. Gentleman does not want to do that for his constituents, that is his choice. I certainly intend to do it for mine.

--- Later in debate ---
Nicholas Dakin Portrait Nic Dakin
- Hansard - - - Excerpts

My hon. Friend is completely right. Early intervention in providing debt advice saves money, saves homes and saves lives. There is a real danger that the legal aid changes will exacerbate an already difficult problem. I hope that a new contract will be agreed in the Scunthorpe area, but when the contracts expire in 2014, no further debt advice of that sort will be provided locally.

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

All welfare debt legal aid will be taken out of scope if the Green Paper’s proposals go ahead. The financial inclusion fund provided a complementary service and was of a highly technical nature. Advice was provided on consumer credit, insolvency, mortgage arrears and other matters of that kind. The double-whammy of these cuts and the local authority cuts will be absolutely fatal to advice centres across the country. The type of advice provided shows that it is ludicrous for Government Members to say that the matter can in some way be picked up by amateurs. We are talking about highly technical issues that are for professional people to advise on.

Nicholas Dakin Portrait Nic Dakin
- Hansard - - - Excerpts

I thank my hon. Friend. I think all hon. Members agree that these are specialist advice services with specialist staff. One of the points my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) made was about the danger of losing specialist expertise. That is another consequence I am sure nobody wants to see. In Scunthorpe, the part-time debt adviser at Crosby community association was withdrawn in December. The area is now losing the FIF debt advice, and the debt advice provided through legal aid is not in place. North Lincolnshire credit union does not provide debt advice, so the local situation is bleak.

As my hon. Friends have pointed out, there is a direct correlation between debt advice and ill health. My hon. Friend the Member for Makerfield mentioned the case study of John. Grant Thornton’s recent study, “Psychology of Debt,” demonstrated that one in two adults with debts have a mental health problem and one in four people with a mental health problem is also in debt. It is therefore clear that the time spent helping people to address their debt problems can help their overall health and well-being. Money spent by the Government on debt advice is likely to save money being spent on the health service. Research by Friends Provident found that the provision of free debt advice allowed creditors to recover in one year £1 billion more than they would otherwise have done.

--- Later in debate ---
Nia Griffith Portrait Nia Griffith (Llanelli) (Lab)
- Hansard - - - Excerpts

It is a great pleasure to serve under your chairmanship, Mrs Riordan.

I begin by congratulating my hon. Friend the Member for Makerfield (Yvonne Fovargue) on securing this debate on the very serious subject of debt advice, and on the important work that she herself has carried out to highlight the devastating effects that debt, and worrying about debt, can have on people’s lives. I will not repeat the excellent comments made by hon. Members who have outlined the problem clearly.

The number of people seeking debt advice is increasing, and the statistics are alarming. In 2009-10, the CAB dealt with some 2 million debt issues. The main non- fee-charging advice agencies offering debt advice are the CAB, National Debtline, Consumer Credit Counselling Service and Payplan. The CAB and National Debtline receive no money from the credit industry, whereas the CCCS and Payplan do. Of the four agencies, only the CAB offers an intensive, personal counselling service on debt.

Citizens advice bureaux, as we know, are generally staffed by volunteers, most of whom are generalist advisers, with some paid specialist advisers. Specialist advisers deal with the most complex cases, but they also supervise volunteers who undertake simpler casework in the specialist’s area of expertise. In the majority of cases, when a specialist adviser is made redundant, the bureau concerned generally no longer offers an advocacy service in that advice area. The bureau cannot expect volunteers to carry on without that back-up. The CAB is a highly professional organisation that recognises the considerable risks of people proffering advice that they are not qualified to give. Without the back-up of specialist advisers, they know that they have to limit the advice they can offer to clients.

In many cases that may mean that generalist advisers can only give the client access to information about the options and procedures that he or she might pursue. Providing information for a client to follow is a path used by bureaux when a client considers themselves sufficiently articulate, literate and confident to proceed on their own. However, most debt advice clients who approach the bureau for advice feel unable to communicate effectively with their creditors. They need the advocacy that specialist advisers provide.

Bureaux do not offer debt advice in isolation. The client also benefits from benefit, housing and employment advice. At the CAB they know that they are not just dealing with a debt problem; they are dealing with a human being. A person has their own unique set of circumstances: work circumstances such as losing their job or being put on reduced working hours, or retirement or giving up work to care for a family member; or personal circumstances such as relationship breakdown, dependent children and so on. People may not initially present as debt cases, but it may become apparent in talking through their other problems that they have an underlying debt problem.

Citizens advice bureaux have a highly trained network of volunteers who understand what they are and are not qualified to advise on. They know that if a client has complex debt problems that they are not qualified to advise on, they can arrange for them to see the appropriately qualified member of the team. CABs have led the way in using volunteers but making sure that they have proper training, and that they are backed up by qualified teams. In that way, they are able to make the most of their volunteers and to offer real value for money.

As Dame Elizabeth Hoodless, who is retiring after 36 years in charge of Community Service Volunteers, said:

“We know we need to save money, but there are other ways of saving money without destroying the volunteer army.”

She used the example of libraries and pointed out that people may want to help in a library but do not want to run it. The same is true of the CAB: volunteers are happy to come along and carry out clearly defined duties for which they have been trained, but they know that they can be more effective because they can call on a team of professionals when they recognise that a problem is beyond their competence. They certainly do not want to run the business.

We all appreciate the idea of a one-stop shop; we yearn to simplify matters, and we recognise that people often find themselves in a Catch-22 situation and have to deal with several different agencies. One of the vital features of CABs is their ability to deal with the whole range of problems that a client may have. That is why taking away any one of their streams of funding will have such a serious knock-on effect.

Let us look at the overall funding of the CABs. First, there is huge input from local councils, which provide some 43% of the total income of CABs. We all know that councils are facing severe difficulties in planning their budgets for the next few years and that in order to protect their statutory services, they will look at all options, including cuts to funding for CABs and similar organisations in their area.

Then there are the cuts in legal aid. A cut of one sixth of the legal aid budget will mean that some £350 million out of £2 billion will be cut. That, too, will have a serious effect on CABs because of the franchise work that some bureaux do. It is completely incomprehensible that legal aid will be available for debt work only when a person’s home is at immediate risk. One does not need to be a specialist adviser to recognise that early intervention is far preferable, much cheaper and more effective.

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

My hon. Friend is absolutely right. In my constituency, three of the four advice agencies have lost all their local government funding, and if the Green Paper goes through, they will lose 90% of their Legal Services Commission funding. Even services that the Government say they will protect will not be available because the advice centres will have closed, and areas such as my constituency will be advice deserts. There simply will not be any advice available to anyone in most parts of the country.

Nia Griffith Portrait Nia Griffith
- Hansard - - - Excerpts

My hon. Friend vividly highlights a serious problem; that is exactly what will happen.

There will be cuts to advice on education, employment, family, housing, immigration and welfare benefits. Those cuts will have a direct impact on funding for CABs and their ability to provide a comprehensive service, but they will also have a direct impact on clients’ debt problems. If clients are unable to fight for the welfare benefits or extra provision for a special needs child to which they are entitled, they may be faced with a worsening debt problem.

Given the cuts to legal aid and to CABs through the withdrawal of the financial inclusion fund and local government funding, CABs will struggle, and many will close. The Government’s Office for Civil Society has a transition fund that will apparently provide grant funding to bridge any gap, at least in the short term, but it applies only to England, and it applies only to organisations with an income of between £50,000 and £10 million, which excludes some CABs. Can the Minister clarify whether any of the transition fund will be used for debt advice and, if so, how much?

What are the alternatives to organisations such as the CAB? How else can debt advice be delivered? Are the Government expecting the Consumer Credit Counselling Service and Payplan to deal with all the additional workload of clients who will no longer be able to go to a CAB? Those organisations receive funding from the credit industry, and although Payplan has considerably expanded its services in recent years, it is simply unrealistic to expect it to be able to expand quickly enough to deal with an additional 2 million cases a year. Moreover, it deals with debt; it does not deal with the full range of clients’ problems, which are often inextricably linked to their debt problems.

We have to ask the Government what alternative they propose. Is it debt management companies? The record and practice of many such companies gives rise to serious concern. In September 2010, the Office of Fair Trading told 129 debt management firms that they faced losing their consumer credit licences unless immediate action was taken to comply with its debt management guidance. The OFT found misleading advertising; in particular, firms fail to disclose that a fee is retained by the business. In fact, firms misrepresent debt management services as being free when they are not. That is serious, as clients already have enough difficulties without being exploited still further.

--- Later in debate ---
John Hayes Portrait Mr Hayes
- Hansard - - - Excerpts

I am not usually terribly critical about Back Benchers making comments. The contribution of hon. Member for Bishop Auckland (Helen Goodman) was pretty intemperate, so she will understand my response being in the same vein.

I made a commitment that the Minister responsible will write to Members who have raised sensible questions, as the Opposition spokesman, the hon. Member for Llanelli (Nia Griffith), did, and will deal with them in a particular and specific way. I shall restrict my comments to some points of principle and detail, and make one or two further commitments.

Before I make the points of principle, let me add this: three points have emerged from the debate. First, debt is closely related to more general well-being, and that needs to underpin the Government’s approach. Secondly, our approach should be co-ordinated and, thirdly, coherent. That has come across strongly from Members on both sides of the Chamber. We heard a speech from the hon. Member for Bishop Auckland, which I critiqued earlier, and speeches from my hon. Friends the Members for Solihull (Lorely Burt), for Warwick and Leamington (Chris White) and for Brigg and Goole (Andrew Percy) and from the hon. Members for Newcastle upon Tyne North (Catherine McKinnell) and for Scunthorpe (Nic Dakin). The hon. Member for Scunthorpe made one point particularly clearly when he rightly said that debt was related to well-being and mental health in a very broad sense. Other Members pointed out that we need a consistent and coherent approach.

I shall make six points of principle and then move on to some points of detail that inform the Government’s position.

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

rose—

John Hayes Portrait Mr Hayes
- Hansard - - - Excerpts

But I shall give way to the hon. Gentleman briefly before I come to my six exciting points.

Andy Slaughter Portrait Mr Slaughter
- Hansard - -

I appreciate the Minister’s approach, but will he answer the central question? Face-to-face advisers cover up to £2 billion of debt every year and about 100,000 people are advised. Who will do that now that all those people will lose their jobs? Who will pick up the burden?

John Hayes Portrait Mr Hayes
- Hansard - - - Excerpts

I said that in the second part of my speech I would try to come to the specific measures the Government will take. I hope I will have time to do so.

The first of the six points of principle is that we want to ensure that the debt management regime means that those who can repay debt do so and those who cannot pay get appropriate debt relief. Debtors and creditors should benefit from a system that is clearer about expectations and provides good advice in advance; I will come to how that advice might be provided later. The picture painted by a range of hon. Members of an entirely haphazard system is not the Government’s intention and it would not help either responsible lenders or debtors. I understand that and it will inform what we do.

Secondly, we want to see empowered debtors accessing good quality preventive advice, as well as advice to deal with debt, to ensure that the most appropriate solutions are found for the debtor’s particular difficulty. Thirdly, some stakeholders have called for a review of the whole lending and borrowing landscape—a point that has been echoed today. I think such a wholesale review is necessary, and the Government will go about that.

Fourthly, we are told that some debtors and, potentially, their advisers, are confused by the array of choice. We heard today about independent debt advisers. We are aware of the issue, and I take the point about the OFT’s condemnation. Fifthly, it is important that we clarify the responsible options available to people rather than allowing a free-for-all in which the advice they receive is of varying quality.

Oral Answers to Questions

Andy Slaughter Excerpts
Monday 7th February 2011

(13 years, 5 months ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
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That is a constructive suggestion, which I will consider as part of the review.

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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T1. If he will make a statement on his departmental responsibilities.

Michael Gove Portrait The Secretary of State for Education (Michael Gove)
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I am pleased to announce that, on 1 February, more than another 30 schools converted to academy status, meaning that there are now more than 440 academies. Tomorrow we will debate the Education Bill, which will give all Members an opportunity to consider the further advance of the movement, which gives all head teachers more autonomy, and promises all children the raising of standards. The Education Bill will also provide all Members with an opportunity to vote for measures that will ensure better discipline and higher standards in every school.

Andy Slaughter Portrait Mr Slaughter
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The Schools Minister, the hon. Member for Bognor Regis and Littlehampton (Mr Gibb), is fond of saying that there is adequate money in the early intervention grant to fund the network of children’s centres. An education authority such as Hammersmith and Fulham is cutting by half in one year the children’s centre budget, closing nine out of 15 centres, including phase 1 centres in deprived areas, and sacking 50 staff—does that give the Secretary of State and the Minister pause for thought? If so, what will they do about education authorities that are wrecking children’s centres?

Children’s Centres

Andy Slaughter Excerpts
Wednesday 2nd February 2011

(13 years, 5 months ago)

Westminster Hall
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Bill Esterson Portrait Bill Esterson (Sefton Central) (Lab)
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It is a pleasure to hold this debate under your chairmanship, Mr Sheridan, and I am pleased to see the Minister here. She has written to me and other hon. Members on this subject in detail.

The question for which I seek an answer is why there is a difference of opinion between what the Government and the Minister are saying to local authorities, and what local authorities are saying about funding Sure Start children’s centres. Last Thursday, Sefton council voted to review all 19 children’s centres in Sefton, and to decide over the coming weeks which are to survive and which are to close. There is huge concern in my constituency that it will just cherry-pick from those services.

The Minister told local authorities that the early intervention grant is designed to replace the funding for children’s centres, and that there is sufficient money to guarantee the full network of centres over the coming years. My question to her is: why are so many councils, including Sefton, saying that that is not true, and that the money has not come through?

As Polly Toynbee put it in The Guardian:

“The sleight of hand drives children’s services directors to distraction.”

She goes on to say that the Minister

“has indeed given a specific early intervention grant to cover Sure Start, but as she well knows it is considerably less than the bundle of 22 grants it replaces. It amounts to a £1.4 billion cut in all early intervention programmes.”

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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In the case of Hammersmith and Fulham, the early intervention grant has been cut by 12.9%. The Minister may want to comment on that, as she has said that there is no need to cut Sure Start. The actual cut in service will be more than 50%, with nine out of 15 centres closing, having had their grants reduced from £475,000 to £19,000—not enough to run a service. That is the truth about Sure Start on the ground at the moment.

Bill Esterson Portrait Bill Esterson
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I am grateful to my hon. Friend for his intervention. We have found exactly the same problem in Sefton. We face at least a 12% cut in the early intervention grant. The council has been told that it is there to replace several early intervention projects. The money is simply not enough to do the job that the Government claim it is there to do.

Faced with the financial crisis and the cuts that the Government are pushing through, the question is what gets dropped first. History shows us that early prevention projects always come off worst.

Polly Toynbee’s article continues:

“Where in this pecking order of need should children’s centres come? They offer the earliest help to young children, identifying difficulties before it is too late, a welcoming place to which families can turn.”

Many of my constituents have written to me to say how important those services are to them and their children. One parent at Hudson children’s centre in Maghull told me:

“I am a mum to two small pre-school children and consider the children’s centre an integral part of my life. I was delighted when the centre first opened, shortly after having my first child. It soon became my lifeline, opening doors to new friendships and experiences. We enrolled for all the sessions available to us and thoroughly enjoyed meeting up with other parents and carers. The staff are all so very caring and helpful, making us all feel like part of their family. We still regularly attend the centre and feel distraught at the thought that this may come to an end if funding is cut. Not only would my children lose their valuable educational activities, but I would also lose my support network. I plead with Sefton council to carefully consider their actions regarding this matter, as I feel our local community would be left devastated.”

A common theme coming through to me from parents, grandparents and carers, is that their children’s centre is a vital lifeline, without which they would have nowhere to turn. There are no other facilities; there are no other places for many families to go. I mentioned the Hudson children’s centre in Maghull. More than 750 families have used the services at that centre. A similar number has used the service at Thornton children’s centre in Crosby, and I have three more children’s centres in my constituency. All five are either phase 2 or phase 3 centres. Initially, Sure Start children’s centres were set up in areas of maximum deprivation. The evidence coming through to me from the parents and families who use the phase 2 and 3 centres is that they are just as important as the phase 1 centres.

People from many different backgrounds use the centres in my constituency. One of the benefits we have found is that people, who would often be isolated without access to those services, meet and form their own support networks and make new friends. Suzanne Bentham uses the Thornton children’s centre. She wrote to me to say:

“Thornton children’s centre is an essential part of my life. Firstly, I went with my partner for my antenatal classes, then with my daughter who loves all the activities she does there. The staff and amenities are wonderful but most of all the atmosphere is the best bit. If I am feeling a little housebound, we can pop in and join in or just chat. We attend most days. We have met so many people from all walks of life, all with stories or offers of help when you need it most. It is not just a play centre, it is a lifeline, and without it an awful lot of people, families and children, will miss out on valuable skills to help throughout their lives. You see, every child matters.”

My hon. Friend the Member for Nottingham North (Mr Allen) reported in the past few weeks that early intervention and the support that children receive in their first five years are crucial. That makes all the difference and prevents many children and families from having difficulties later in life. That is why children’s centres were set up by the previous Government, and why Sure Start matters.

--- Later in debate ---
Sarah Teather Portrait Sarah Teather
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I recognise the hon. Gentleman’s point. If it is okay, I will go on to say a little about the early intervention grant and the particular concerns about reorganisation on the ground.

The hon. Gentleman pointed to the 4,200 extra health visitors whom we will be committing to recruiting. We hope that they will work alongside children’s centre outreach teams to support the families most in need. That is being funded by the Department of Health. On our direction of travel, we want to work closely with the sector on the ground to ensure that we are getting the reforms right. We will be considering the report by the hon. Member for Nottingham North and the review by the right hon. Member for Birkenhead (Mr Field), who intervened and whose point I will pick up on in a moment. We have also asked Dame Clare Tickell to review the early years foundation stage. That will inform the work we are doing.

The bulk of what the hon. Member for Sefton Central spoke about related to his concern about the early intervention grant. We have made clear our commitment to Sure Start children’s centres. We believe that we have ensured that there is enough money to maintain the national network of centres and to enable local authorities to meet their statutory duties.

Andy Slaughter Portrait Mr Slaughter
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The Local Government Association says that, on a like-for-like basis, there is a 27% decrease in the early intervention grant when compared with the previous year. My Conservative council, in trying to excuse its cuts, says:

“This grant is 12.9% less than the previous allocation for the same services.”

Will the Minister deal with that point, about which she is in denial? Will she also deal with the point that the lack of ring-fencing means that councils such as mine can make outrageous decisions to close down stage 1 children’s centres—exactly the ones she thinks should stay open? Their grant is being cut from £475,000 to £19,000. That is happening in Shepherd’s Bush—an area I think she knows well.

Sarah Teather Portrait Sarah Teather
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I recognise that there are particular concerns in the hon. Gentleman’s area, and it is an issue I am monitoring. However, I do not recognise the figures he gave from the LGA or the figures the hon. Member for Sefton Central cited, I think, from Polly Toynbee’s article. The hon. Member for Hammersmith will recognise that this is a very difficult time financially, and that local authorities are having to make difficult decisions on the ground in the same way that the Government are having to make difficult decisions. We are trying to tackle the deficit, and it is not possible to do that without reducing funds overall. When the situation is very difficult, it is even more important that we provide more flexibility for local authorities to make the right decisions in their area—to focus on what they need to do in their local community. That is precisely why we have reduced the ring-fencing; we are responding to what local authorities have asked us to do.

Education Maintenance Allowance

Andy Slaughter Excerpts
Wednesday 19th January 2011

(13 years, 6 months ago)

Commons Chamber
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Andy Burnham Portrait Andy Burnham
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We will leave those kinds of points to Back Benchers; we do not expect them from the Chair of the Select Committee.

The fundamental point that the Government are missing is that participation is only part—[Interruption.] The hon. Member for Stroud (Neil Carmichael) does not have to put his hand up—he can just stand up. Participation is only part of the story; EMA helps students to succeed once they arrive at college. It stands to reason that young people do better if they can afford the books or equipment that support the course. As many young people have told me, EMA means that they do not have to take a part-time job, so they can focus all their energy and attention on their studies. College after college reports that EMA improves attendance, helps people to stay the course, reduces the drop-out rate and, in the end, brings a higher rate of achievement.

Andy Slaughter Portrait Mr Andy Slaughter (Hammersmith) (Lab)
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The infamous Cameron Direct meeting that has been raised took place in Hammersmith on 6 January last year. Sadly, I was not at the meeting because I was handing out leaflets outside, but this morning I spoke to the person who asked the relevant question. The Prime Minister said:

“We’ve looked at Educational Maintenance Allowances…no we don’t have any plans to get rid of them.”

Where does my right hon. Friend think the Government now stand with their credibility on this issue?