Exploitation of Missing Looked-after Children

Ann Coffey Excerpts

Wednesday 23rd October 2019 Westminster Hall

[Ann Coffey (Stockport) (IGC)]

I beg to move,

That this House has considered the matter of sexual and criminal exploitation of missing looked after children.

It is a pleasure to serve under your chairmanship, Mr Evans. In 2012, an expert working group was set up by the then children’s Minister, the hon. Member for East Worthing and Shoreham (Tim Loughton), at the Department for Education, to look at—among other issues—out-of-area placements of children. That was because of the high number of looked-after children in children’s homes going missing, and concerns about their vulnerability to sexual exploitation. That group was set up partly in response to the 2012 inquiry by the all-party parliamentary group for runaway and missing children and adults, supported by The Children’s Society and Missing People. One of the objectives of that expert group was to make recommendations that would improve the care system, so that

“children are safer and better cared for in residential care—not disproportionately at risk of…exploitation”

because of their vulnerability. The group stated that placements should be

“close to home unless it is in the best interests of the child to be placed out of area”.

An analysis of the children’s home market was commissioned. At that time, more than 50% of homes were concentrated in three regions: the north-west, the west midlands, and the south-east. Some 25% of all children’s homes were in the north-west, and just 6% were in London. That meant there was an under-supply of places in some areas and an over-supply in others, resulting in an unnecessary level of out-of-area placements. One of the issues identified with children being placed out of area was the difficulty for social workers in being able to provide the necessary levels of support. In short, children with high needs were left isolated in children’s homes, miles away from family, friends and social workers, and they were targets for paedophiles.

In 2012, 26% of the children’s homes registered with Ofsted were run by local authorities, and 65% were run by private companies. The report expressed concern about the market being taken over by larger providers. It said that if the under-supply and over-supply in the market was not addressed, children would continue to be placed at a distance from their home communities. The report recommended a reduction in the number of out-of-area placements, and added that those that result in children being placed at very long distances should be exceptional and always explicitly justified in terms of the child’s best interests. The expert group recommended that national and regional information on the structure of the children’s residential care market be improved, and that such information should be used to determine a medium-term market strategy at regional and national levels.

That report is now seven years old. Over the intervening years, successive Ministers have committed to reducing the number of out-of-area placements, yet that figure continues to soar. Last month, the all-party parliamentary group for runaway and missing children and adults published our most recent report, “No Place at Home”. We found a 77% increase in the number of children placed in out-of-area placements since 2012; that figure is now at an all-time high. The majority of the 42 police forces that gave evidence to our inquiry were adamant that placing children out of area increased their risk of exploitation and very often resulted in their going missing.

Some 75% of all children’s homes are run by private companies, representing a 23% increase since 2012, and local authorities now run 19% of children’s homes, representing a decrease of 26% since the same year. According to Ofsted, 47 local authorities—one third—did not run any children’s homes at all in 2019. Given the increasing dominance of the private sector, the APPG recommended that Ofsted should have the same powers in relation to children’s homes as the Care Quality Commission has for nursing and care homes.

The north-west, west midlands and south-east remain the three regions with the highest concentration of children’s homes, accounting for 55% of all homes, and there continue to be issues with over-supply and under-supply. Some 80% of local authorities now place children outside their area. There has been an increase in the number of children coming into care, and an increase in the number of children’s homes. However, it is not clear whether, in practice, that means there are more places to meet the needs of children. Many of the children being placed in homes would previously have been placed in mental health provision or secure accommodation if it had been available. Homes may manage children with increasingly complex needs by reducing their bed occupancy.

The increase in the number of children coming into care also means that providers can pick and choose. In our “No Place at Home” inquiry, we heard evidence that one local authority had to try 150 providers to find suitable accommodation for a vulnerable 15-year-old boy. We have also heard that up to 25 children can be competing for a place at any one time. Those children go on a waiting list, and often end up in crisis and short-term placements because none of the registered children’s homes is willing or able to offer places. These can be the children with the greatest needs. In future, more children are likely to be placed in unregulated and unregistered short-term accommodation because of the pressure on children’s home places. Let us be clear: that means those children’s care needs will not be met.

I entirely accept that some children need to be placed outside of their area because it is in their best interests, but evidence to our inquiry suggested that the overwhelming reason why children are placed out of area is that it is the only place that can be found for them. When I announced that I had secured this debate, I received many comments on Twitter from practitioners who said that the system was broken. One, from the National Association of Independent Reviewing Officers, said:

“It’ll need money Ann, more importantly a wholesale rethink of the care ‘system’. Trying to find residential placements for young people is often ‘any port in a Storm’.”

The fact that distribution has not changed, together with pressure on places, explains the inevitable rise in out-of-area placements.

Our “No Place at Home” report focused on the risks faced by children who go missing from care. There has been a 97% rise in the number of reported incidents of children missing from children’s homes since 2015. The number of children missing from out-of-area placements has more than doubled since 2015, and about a third of children in unregulated provision went missing in 2018. We heard that record numbers of out-of-area children are repeatedly going missing. The inquiry heard evidence about the trauma and emotional impact that being sent away can have on children who have already suffered neglect and trauma.

[Graham Stringer (Blackley and Broughton) (Lab)]

My hon. Friend is making a powerful case about a very serious subject. Does she agree that since the Greater Manchester Police introduced the iOPS computer system, children in Greater Manchester are at even more risk than before? Children who go missing overnight are not being registered, and the information is not getting through to police officers when they come on duty the next morning. The reassurances of the chief constable that everything is all right are at odds with the evidence. The iOPS system is putting more children at risk, and when Her Majesty’s Chief Inspector of Constabulary goes into Greater Manchester, I hope he will look seriously at these problems.

[Ann Coffey]

I totally agree with my hon. Friend’s comments about the new computer system. A system that cannot manage information in a way that keeps children safe is not fit for purpose, so I am pleased he has raised that point.

Moving children to unknown and unfamiliar placements, particularly at short notice, causes anxiety, distress, fear and anger, as well as causing further trauma to children with both short-term and long-term impacts. The reaction of many is to go missing, enticed by those who have targeted them for exploitation. In June, research by Missing People that looked at nearly 600 episodes involving more than 200 missing children found that one in seven of the children had been sexually exploited, and one in 10 had been a victim of criminal or other forms of exploitation while missing.

There is an issue about the take-up of return-home interviews, which can be an invaluable source of information about further risks to that child and other children when they go missing. Research by The Children’s Society found that, on average, just 50% of missing episodes resulted in return-home interviews taking place, despite its being a statutory requirement on local authorities to offer them each time a child goes missing. That means that opportunities to safeguard children are being missed.

The Howard League told our inquiry that children are sometimes placed out of area to protect them from exploiters. Although that is often done with the best intentions, and sometimes successfully, there are considerable concerns about the practice. The Howard League said, for example, that criminals increasingly control children using social media, the reach of which extends wherever children go, and through threats to family members and siblings, which means that removing the child from a location does not resolve the problem and could make it worse.

The Howard League also said that children who are being exploited may be used to groom and exploit other children in their new location, and that children who are in out-of-area placements are separated from their families and support workers, and therefore more vulnerable to abuse and exploitation. We received evidence that county lines gangs had been sent to areas where young people were predominantly placed out of area to scout new opportunities where they could develop business and recruit new members.

The individual experiences recounted by children to the inquiry were a salutary reminder of the misery experienced by some children in care. One girl told the inquiry that she had run away 100 times since being moved out of her home area. Another boy tried to hang himself on Christmas day. Another girl walked 10 miles home to see her mum. That is the reality behind the statistics. The increasing number of children going missing is a protest by those children, who feel that the social care system does not care about them. It is the only protest they can make.

One area of increasing concern, which we raised in our report, is the rise in the number of older children, aged 16-plus, being sent to live in unregulated semi-independent accommodation—a shady twilight world. Some 80% of the police forces that gave evidence to our inquiry expressed concern about the increasing numbers in those unregulated establishments, which are off radar, because, unlike children’s homes, they are not registered or inspected. More than 5,000 looked-after children in England live in unregulated accommodation, which is up 70% on 10 years ago. Such accommodation is not registered by Ofsted because it does not provide care, although it is difficult to imagine under what circumstances a vulnerable 16 or 17-year-old would not require care as well as support.

The police gave us many examples of inappropriate and dangerous placements in unregulated homes, including a young person bailed for murder being placed in the same semi-independent accommodation as a child victim of trafficking, who was immediately recruited to sell drugs in a county lines gang. Another boy was sent to live more than 50 miles from his home area where he began drug-running and committing crimes. When he was returned to his home area, he took children from his new area back home to involve them in county lines because they were unknown to the police. Other examples included a girl who had been sexually exploited being housed alongside a perpetrator of sexual exploitation, and another young girl victim of sexual exploitation who was moved some distance from home and then targeted by a local organised crime group.

We should not forget the impact that unregulated accommodation, in which young people are not properly supervised and become involved in criminal activity, can have on the surrounding neighbourhood. After our report was published, I was contacted by a mother in Greater Manchester who described her “devastating experience” of the consequences of unregulated accommodation. Her two daughters were seriously attacked as they walked home by a group of older boys who were living in an unregulated home in their neighbourhood. Local residents had been reporting incidents of antisocial behaviour, sexual harassment, criminal activity and drugtaking in and around the accommodation for about six months. If the home had been regulated, there would have been a process by which it could have been closed down, but it continues to operate.

There are some good providers but, equally, there are some poor providers that should not be let anywhere near a vulnerable young person. One police force told us:

“Where there are areas of high deprivation, these will always present opportunities for potential unscrupulous organisations to set up ‘pop up’ children’s homes with little or no regulation, where the housing market is much cheaper, heightening the risk of the most vulnerable of children being exploited.”

I was recently made aware that there may be connections between organised crime gangs and providers of unregulated accommodation. It would be a logical extension of their business model to gain profit from providing accommodation at high cost to local authorities and, at the same time, have access to young people whom they can exploit to sell drugs.

Our report called for a regulatory framework that would ensure national standards, including checks on the suitability of providers and the qualifications of staff supporting young people. That is becoming urgent, as children under 16 are being placed in unregulated accommodation. As I have said, there are extremely good providers and very diligent social workers, but unregulated care is wide open to abuse. All the evidence shows that that abuse is happening.

Over the years, there have been many improvements in data sharing, guidance, notifications, multi-agency partnership work and understanding child sexual and criminal exploitation and the grooming process. Attitudes to children have changed and the term “child prostitute” has been replaced in law with “sexually exploited child”. There is an increasing understanding that young people can be groomed into criminal activity and county lines gangs. That understanding is reflected in the increasing number of children accepted on to the national referral mechanism as victims of criminal exploitation.

There is some excellent provision in the private and voluntary sectors and in local authority children’s homes. I pay tribute to the people who work in residential care homes with the most challenging young people. Government cuts have had a devastating effect on children’s social care; we are often asking social workers to safeguard children in the most difficult circumstances without the resources they need. An important part of providing resources is ensuring that there is sufficient residential provision to meet the needs of the children we take into our care. That is not happening.

We talk a lot about the voice of the child and how that should be at the heart of what we do, but it cannot be at the heart of decisions when we have no options to offer that child. The children’s homes market is failing and broken. There is widespread agreement and evidence that it is not providing a sufficiency of placements to meet the needs of the children we take into care. Until that is sorted out, we will continue to have care provision that is unsafe for some children and we will continue to fail in our responsibilities to the children who need us most. Urgent action is now needed.

The main recommendation of our APPG report echoes the recommendation made by the expert working group in 2012. We recommend that the Department for Education develops an emergency action plan to significantly reduce the number of out-of-area placements. The Government must take responsibility for ensuring that there are sufficient local placements to meet the needs of looked- after children. The plan should address the supply and distribution of children’s homes nationally and the use of unregulated semi-independent provision, and it should be backed by funding.

Local authorities have a statutory duty to ensure a sufficiency of school places to meet the needs of children in their area. The Department for Education provides capital funding and investment so that they can meet that statutory responsibility. It could equally provide the investment and capital funding to ensure a sufficiency of local places to meet children’s needs, working with local authorities and private and voluntary providers.

Section 22G of the Children Act 1989 places a duty on local authorities to take strategic action by requiring them to secure sufficient accommodation in their area that meets the needs of their looked-after children,

“so far as reasonably practicable”.

When private providers are unwilling, as they have been in the past, to run children’s homes in certain regions of the country, local authorities should be encouraged to develop their own direct provision. There is no way forward without the Department for Education taking leadership and responsibility for this. We do not need any more working parties or reports. There is widespread consensus among practitioners, professionals and children with experience of the care system that the children’s home market is failing children, and that urgent action is needed. Warm words are not enough, better data sharing is not enough, and more awareness is not enough. None of this is enough, if we cannot provide sufficient good care placements to meet the needs of children who have been failed by close adults in their life, and who are now being failed by a care system that cannot keep them safe and that leaves them wide open to criminal and sexual exploitation.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Education (Michelle Donelan)]

I congratulate the hon. Member for Stockport (Ann Coffey) on securing this important debate. The Government, the Department and I share her fierce commitment to protect all looked-after children and to work to reduce the number of children who go missing. The hon. Lady raised a number of important issues facing the children’s social care system that can lead to children going missing, and today we have heard some harrowing stories, which I am sure will stay with us. I am absolutely determined to address those issues, because nothing is more important than protecting the most vulnerable children. I am sure we all agree on that.

As a new Minister in the area in question, I am committed to ensuring that the Department is dedicated to providing high-quality services to all the children and families who need them. I know that we need to take a multi-agency approach—something that we have been doing. Social workers cannot do it alone; it cannot fall only on their shoulders. The joined-up response has been working and is not just a matter for local government; it is also for national Government, and I am committed to working closely with my colleagues at the Home Office to ensure that local partners are properly equipped to respond quickly and efficiently.

As part of that, the Home Office is working with the National Police Chiefs Council to deliver a national register of missing persons, which will enable us to have a snapshot of current missing incidents across police forces in England and Wales. The register will give officers realtime information when they encounter a missing person—particularly if that missing person is outside their area. The hon. Member for Blackley and Broughton (Graham Stringer), who has left the Chamber, mentioned difficulties in his area, and I hope that that will alleviate his concerns.

The Home Office is working towards that register being operational by 2020-21. Ofsted plays a vital role in considering how local areas safeguard children, and to support that we are strengthening statutory guidance from the Department for Education. Such guidance must be clear about the role that each safeguarding partner must play, and that is why we are working with the police to respond to the issue raised by the hon. Member for Strangford (Jim Shannon).

The hon. Member for Stockport raised concerns about the fear that children who go missing from the care system could fall prey to criminal and sexual exploitation—something that I and all hon. Members find completely abhorrent. I reassure Members that the Government are prioritising that issue. We are determined to tackle child sexual abuse and close down county lines, putting an end to the abhorrent exploitation of children and young people. We have already revised safeguarding guidance to reflect the emerging menace of threats to children and exploitation from outside the home, as well as the role that children’s social care needs to play in protecting them.

Earlier this year, we launched the £2 million Tackling Child Exploitation support programme to provide bespoke support to local areas. The programme will help local safeguarding partners to develop a tailor-made effective multi-agency strategic response to the specific types of harm and exploitation that children are facing in their area.

I am glad that the national Child Safeguarding Practice Review Panel’s first independent review is looking into whether adolescents in need of protection from criminal exploitation get the help they need. That will better inform us about how to tweak and improve the current system, and I pledge to take a personal interest in that. Ensuring that children who have been taken into local authority care are in a safe and secure placement that meets their needs is one of the most crucial things we can do. That brings me to an issue that I know the hon. Lady and other hon. Members are working hard to highlight: the use of unregulated independent and semi-independent settings for children in care and care leavers. Some of those children and young people are indeed at risk, and I take on board the comments from the hon. Member for Croydon North (Mr Reed).

The report from the all-party group for runaway and missing children and adults continues to highlight that issue, and I thank the hon. Member for Stockport for her work. She will know that I share her concerns about the current state of affairs, and last week in the Chamber I was clear that it is unacceptable for any child to be placed in a setting that does not meet their needs and keep them safe. I note the comments from the hon. Member for Lanark and Hamilton East (Angela Crawley) on that issue, and I shall write to her with the specific figures she requested.

Unregulated semi-independent and independent settings are intended for older children as a stepping-stone towards independence. There are good examples of such places, including in my constituency, and they are not all letting children down. However, vulnerable young children were never intended to be placed in them: I will not hesitate, where needed, to strengthen guidance to make that clear. Last week I called on local authorities to put their houses in order regarding unregulated and unregistered provision. Unregistered settings are illegal, and I invite all hon. Members to inform me about any providers that they know are operating in that manner.

Hon. Members also raised the placement of children in settings outside their local area. No child should be placed outside their area when that is not in their best interests, and I am grateful to hon. Members for their sustained interest in that issue. Moving a child away from their home is not a decision that any authority takes lightly, and we have strengthened legislative safeguards regarding children who are placed outside their local area.

Directors of children’s services are required to sign off each individual decision, and Ofsted can challenge them if it believes that an incorrect decision has been made. It can sometimes be right to place a child outside their local area if there is the risk of sexual exploitation, trafficking or gang violence, but those are the only circumstances in which local authorities should consider such a move. Similarly, such a decision could be made to access provision for children who have complex needs, if such provision is not available locally. The welfare of the child must lie at the heart of this issue, and I am sure hon. Members agree that the child’s needs and future must always come first. The needs of the child are paramount, and I will continue working to ensure that our decision making is based on that.

Although local authorities have a duty to meet the needs of children in our care system, I recognise that more should be done to support them in responding to that challenge. Those children are a changing cohort, and we are taking steps to help local authorities manage the system, improve their work with families, and safely reduce the number of children who enter the care system in the first place.

[Ann Coffey]

I recognise some of the good initiatives from the Department for Education over the years, but as I said there are not enough places to allow local authorities to make a choice about what is in the best interests of the child. They are placing children in placements hundreds of miles away because they have no option. That is why we are urging the Department to take a lead responsibility, not only by putting more money into preventing children from entering the care system, which is important, but by dealing with the care needs of existing children in the care system, so that they have the choice of staying nearer home. That choice should not be dictated by the market. Does the Minister have any plans to convene a strategy group and consider how the market is functioning, just as was done in 2012, and to find a way forward to support local authorities and voluntary organisations to develop provisions that meet the needs of children?

[Michelle Donelan]

I will certainly look at that. We need a combination of ways to prevent children from entering the care system—we will all agree that that is fundamental—and to tackle the supply of places. That is why we put an extra £40 million into creating more secure homes. The Government recognise that issue and are acting on it.

I recently announced an investment of £84 million over five years to support 18 local authorities as part of the Strengthening Families programme, and that is one example of how we are enabling children to stay safely with their families. We have also provided funding through our £200 million children’s social care innovation programme, £5 million of which is specifically targeted at residential care and expanding provision.

For the most vulnerable children who need secure provision, we have added a £40 million capital grants programme. We are funding local authorities—£110 million to date—to implement Staying Put arrangements, under which care leavers remain with their foster carers for longer. We are piloting the Staying Close programme with £5 million of funding to support ongoing links with a residential home.

--- Later in debate ---

[Ann Coffey]

It has been an excellent debate. The area is complex, and each of the contributions has reflected that complexity. The hon. Member for Bedford (Mohammad Yasin) has clearly seen the impact of unregulated accommodation in his constituency, which I know is a hotspot for county lines activity.

It is also interesting to hear the contributions from the different parts of the United Kingdom. I do not think that I have ever participated in a debate in Westminster Hall at which the hon. Member for Strangford (Jim Shannon) has not been present. He has a long-standing commitment to the subject. The hon. Member for Lanark and Hamilton East (Angela Crawley) very much gave us the Scottish perspective. Perhaps all that shows us the strength of the Union.

I tell the Minister that I do not doubt for one instant the commitment of every single Minister with whom I have raised this issue over the past 10 years. The worrying thing for me is that, since 2015, things have got worse in terms of the number of children going missing and the harm that has come to them, in spite of very good initiatives by the Department and a complete focus on prevention, which is absolutely right.

In this debate, I was asking for a focus on the underlying cause of the problem, which is to do with the insufficiency of places to meet the care needs of the children whom we are taking into care. I believe that unless that is managed and sorted out, and we get a proper supply distributed across England, we will continue to have children go missing in huge numbers and be at risk of exploitation. No one else can lead on this except the Minister and her Department. Only the Minister has the information, the financial leverage, and the authority to bring together and lead a group to address the fundamental market failures.

Question put and agreed to.

Resolved,

That this House has considered the matter of sexual and criminal exploitation of missing looked after children.

Business, Innovation and Skills

Ann Coffey Excerpts

Tuesday 20th December 2011 Commons Chamber

[Ann Coffey (Stockport) (Lab)]

Christmas focuses the mind on shopping. At this time of year, we become more aware of the importance of retail to our economy and the recovery. Retail is Britain’s largest private sector employer, providing 2.9 million jobs and representing more than 10% of total UK employment. In my constituency, more than 5,700 people are employed in retail. The retail sector generated £292 billion of sales in 2010, equivalent to one fifth of UK GDP.

The exceptional flexibility of retail work, with a higher proportion of part-time hours than other sectors, gives employees greater freedom to fit their work in with wider family responsibilities. It gives an opportunity for that first start in life—indeed, 42% of all working 16 to 17-year-olds are employed by retailers. Youth unemployment is at a record high and has broken through the 1 million mark, so any loss of retail jobs will have a direct impact on young people.

A lot of concern has been expressed by the Union of Shop, Distributive and Allied Workers—USDAW—about changes to working tax credits, which mean that the total weekly hours that a couple with children need to work to qualify will increase from 16 to 24 hours. For some families, 16 hours of part-time work will not pay, and employers will lose valuable staff and the flexibility of shorter working patterns. I ask the Government to look again at the possible implications of this policy change.

Many challenges lie ahead for retail, including the worldwide economic downturn and uncertainty over the euro. In addition, the way we shop as a nation has changed dramatically. We have seen the massive growth of large, successful out-of-town superstores and the phenomenal rise of online shopping, which now accounts for nearly 10% of all retail sales. At the same time, we are seeing the decline of many town centres, with vacancy rates doubling over the past two years and total consumer spend away from our high streets now at more than 50%. The high street is changing, as was shown in the Mary Portas review, which was published last week.

Many town centres have always been a mixture of big-brand shops and independent retailers, but out-of-town shops have been able to offer larger stores combined with easy parking. The town centres that have done best in the face of these developments are those that have invested and developed a distinct shopping offer. Out-of-town shops do well because shoppers like them, so town centres have to become attractive to shoppers and, as Mary Portas says, there are as many different ways of doing that as there are towns.

As chair of the all-party group on markets, I strongly support the idea of placing markets at the heart of the plan to turn around ailing high streets and believe that vibrant markets are key to regenerating our town centres. At a time of high unemployment, market stalls are easy and cheap to set up, and they allow people to try out fresh ideas and flexible working. I also like the idea of national markets day. Indeed, our all-party group organised such a day in 2007, when dozens of MPs visited their local market.

People like markets. They have existed for hundreds of years and have been a key source of retail innovation. I am thinking, for example, of Tesco in Hackney, east London, Marks & Spencer in Leeds and Morrisons in Bradford. Markets also provide a public place for people to meet. They give a sense of belonging and of place in the community. Good town centres and markets make an important and underrated contribution to public health. It is important that that partnership between the big retailers and independent small traders in shops and markets in town centres, which has worked so well in the past, continues to meet the challenges of the future. I see that working well in parts of Stockport. In Heaton Moor, for example, the district shopping centre is adapting to the changing demands of the local community. Its coffee shops, café bars, delicatessens, fish and meat shops, other specialist shops and first-class restaurants show how change and innovation can turn local shops into a vibrant and attractive place. Interestingly, the area also has a Tesco local and a Co-operative store, and about 2 miles away there is a Tesco Extra, which is a 24-hour store. That shows that out-of-town stores do not, in themselves, destroy town or district shopping centres; it is the ability to change and adapt that will determine their future.

We need shopping to be interesting if we are to be attracted into the town and district centres. My suggestion to attract shoppers to Stockport is that it should offer a cultural experience day ticket. Shoppers could buy a ticket that would include discounted entrance to major heritage sites, including Staircase house, the Stockport air raid shelters and the hat museum. A trip round the Robinsons brewery might be an added attraction, and the day could perhaps finish with tea and a film at the Plaza combined with some shopping in Merseyway or the market. That, combined with special discounts at the shops and in the market, might prove very attractive to everybody in the north-west.

Retail is an important industry, a major employer and a big contributor to the economy, and it is at the heart of our towns. The Government need to restore consumer confidence, because without that people will not spend money and there will be no growth. At a local level, councils must support innovative ideas, and big retailers need to work with town centre partnerships and independent retailers to develop a vibrant high street. Town centres should be places where we go to meet other people in our communities and where shopping is just one part of a rich mix of activities. If we can get this right, towns up and down the country will come alive again and retail will become an even bigger part of our national life, contributor to the national purse and provider of that all-too-important employment.

[Several hon. Members]

rose—

Working Tax Credits

Ann Coffey Excerpts

Wednesday 30th November 2011 Westminster Hall

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

It is a pleasure to have been able to secure a debate on which I have been trying to be successful in the ballot for some time. It is a pleasure to serve under your chairmanship, Mr. Robertson, and to welcome the Minister to her relatively new job. I warmly congratulate her on it. She is surely further proof that all the best parliamentary careers begin in the Whips Office.

I am pleased to see a number of other hon. Members present. Several changes have been announced to working tax credit, not least those yesterday in the autumn statement. I will try to accommodate any colleagues who might wish to highlight their concerns or those of their constituents. For my part, in the time available, I want to discuss the changes to working tax credit that were announced in the spending review in October 2010. Specifically, from April 2012, the total weekly hours that a couple with children need to work in order to qualify for working tax credit will go up from 16 to 24, with one partner needing to work at least 16 hours a week. At present, couples whose annual income is less than about £17,700 a year qualify for tax credit if at least one of the couple works 16 hours a week. I want to talk about what these changes will mean for working families, how many of those families will be affected and what it will mean for couples where one partner has caring responsibilities.

[Ann Coffey (Stockport) (Lab)]

I congratulate my hon. Friend on getting this important debate. We are all sorry that it is not longer.

My hon. Friend might be interested to know that I recently sent out a survey to find out about the child care arrangements of parents in my constituency. Interestingly, a number of grandparents replied; they all made the similar point that, without the free child care that they provided, parents would be facing mounting debts because of the squeeze on their family incomes and long-term financial problems. Does he agree that the Government have not properly thought through the cumulative affect of their policies on families?

[Jonathan Reynolds]

I agree with my hon. Friend. If we had had one of the longer slots for debate, perhaps we could have discussed in more detail the interaction between working tax credit, child tax credit and the child care allowance. The interconnection between them is crucial. I shall ask the Minister near the end of the debate what transitional arrangements could be considered for some of those who are most badly affected by the changes.

Working tax credit has played an important part in recent development of the welfare state. When working tax credit was introduced in 2003, it balanced the goal of eradicating child poverty with promoting work. It currently offers around £4,000 for families on lower incomes and aims to ensure that families will always be better off in work. Until it was introduced, too many families had complained that going out to work might leave them less well off financially. Working tax credit was introduced to ensure that work always paid. It did so much more. Encouraging people back into work concerns more than just the contents of their pay packet. Work is about skills.

Autumn Forecast

Ann Coffey Excerpts

Monday 29th November 2010 Commons Chamber

[Mr Osborne]

There is of course concern about the high deficits, particularly in the eurozone. Let us hope that the action taken yesterday to stabilise Ireland, and also the clarification that eurozone Ministers offered about the future permanent bail-out mechanism and the involvement of private sector creditors in that, will help to achieve stability. That is certainly what the intention was yesterday.

[Ann Coffey (Stockport) (Lab)]

Stockport council will tonight announce proposals for cuts, with the likely loss of 400 jobs. That will have a devastating impact on my constituents who are affected, but it will also lead to loss of confidence by those with jobs that they will have jobs in the future, which might lead to reluctance on their part to spend money in the economy. Is the Chancellor concerned that such lack of confidence will affect new jobs and future growth?

[Mr Osborne]

Of course, I have enormous sympathy with anyone who faces a job loss, but we are creating the economic conditions where they will be able to find a new job, I hope. There is support from the welfare system. We expect more than 1 million new jobs to be created over the coming years. I make this observation to the hon. Lady, who was Parliamentary Private Secretary to the previous Chancellor: if the Labour Government had been re-elected in May, they would be cutting billions and billions of pounds from public spending, this year, next year and in the years ahead. That was in the March Budget plans, even if they are not the plans that the shadow Chancellor is sticking to. If the hon. Lady is able to find a way of cutting many, many billions of pounds—£40-odd billion—from public spending without in any way affecting the local government settlement, she should please let me know.