Children and Families Bill

Baroness Hughes of Stretford Excerpts

Monday 9th December 2013 Lords Chamber

Moved by

[Baroness Hughes of Stretford]

4*: Clause 3, page 2, line 32, at end insert—
“( ) When it relates to a direction given under subsection (3)(b) or (c), the power to make a direction under subsection (1) will be exercisable by statutory instrument not to be made unless a draft of the instrument has been laid before, and approved by resolution of, each House of Parliament.”

[Baroness Hughes of Stretford (Lab)]

My Lords, I would like to speak to Amendments 4 and 5, which variously attempt to circumscribe the power that the Secretary of State is taking in Clause 3.

Clause 3 grants the Secretary of State a new power to force local authorities to franchise out adopter recruitment services, either to another local authority or to a registered adoption agency, by amending Chapter 2 of Part 1 of the Adoption and Children Act 2002. The new section inserted by Clause 3 provides the Secretary of State with the power to direct the outsourcing of local authority adopter recruitment functions, either from individual named authorities under subsection (3)(a) or from classes or groups of local authorities under subsection (3)(b) or from all local authorities at once under subsection (3)(c). The important aspect is not the power to outsource itself but the manner in which it would allow the Secretary of State to make change on a large or even national scale at once through a direction. The Secretary of State, in issuing a direction as opposed to bringing forward primary or secondary legislation, would not obviously have to subject himself to any parliamentary scrutiny, and Members in either House would not have the opportunity to question or amend the changes. This is the nub of our concern.

Our Amendment 5 would have the effect of deleting subsections (3)(b) and (3)(c) and therefore remove the power of the Secretary of State to direct outsourcing from classes or groups of local authorities or from all local authorities at once. We tabled this amendment in Committee to probe the Government’s intentions and we do not intend to press this amendment here. It was tabled at an early stage following Grand Committee to signal our continued concern and before we were able to see the Government’s response to that debate.

At the meeting last week, Edward Timpson said that there would be an amendment to respond to those concerns and we wanted to see the terms of that amendment before finalising our position. We were hoping that the Government would address those concerns by amending the clause to make subsections (3)(b) and (3)(c) subject to an affirmative resolution order. However, unfortunately both the government amendment and the policy statement that was issued alongside it really are a wholly inadequate response to what noble Lords across the House have been saying. Government Amendment 6 would simply delay the implementation of subsection (3)(c), which provides the power to outsource to all local authorities at once. Along with the government amendment, there was also a written commitment to report that decision in some as yet unspecified way. Delaying implementation is really neither here nor there—it is irrelevant—and reporting to Parliament falls far short of parliamentary scrutiny.

The policy statement that was published does not explain why the Secretary of State is seeking power through a direction rather than through secondary legislation but simply restates the arguments about the need to reshape the market in adopter recruitment. That is an argument with which we would not necessarily disagree but in support of which the Government have provided no evidence. These are important issues, but they are wholly irrelevant to our point that taking powers to institute major change to the national system of adopter recruitment by direction is a completely unacceptable way to treat this House and the other place. We cannot support the Government’s amendment.

Therefore, our Amendment 4 would retain the powers in subsections (3)(b) and (3)(c) but make their implementation subject to an order by affirmative resolution in both Houses of Parliament. We all support efforts to improve adopter recruitment if this will mean more children finding good homes. The Government’s policy statement sets out why the Government believe that major structural change may be necessary to address the shortfall in adoptive parents despite the 34% increase in the last two years, which is a very welcome improvement. However, even here the statement is contradictory on the role of the powers in Clause 3 in reshaping that market. Paragraph 11 says that the purpose of Clause 3 is to provide a powerful market-shaping lever to help restructure fundamentally the adopter recruitment system, but paragraph 12 says that, in moving towards the Government’s vision for that restructured system, Clause 3 is not seen as the sole or even the principal driver of reform—its role is to drive change only if there is little or no progress in reshaping the structure of the market and reducing the shortfall of adopters. That is because, as the Minister admitted in Grand Committee, Clause 3 is not of itself a solution to the problem of the shortfall of adopters that the Government have identified; Clause 3 itself cannot change that market. Indeed, it can be deployed only if and when it has been demonstrated that adopters can be recruited in sufficient numbers by different arrangements.

The policy statement goes on to outline the real levers for change which are happening now on a voluntary basis and which do not need legislation—for example, the consolidation in the local authority sector through mergers such as that involving St Helens, Warrington and Wigan in my region, the north-west, and the development of commissioning and provider relationships between local authorities in adopter recruitment. The adoption leadership board is encouraging and facilitating these developments, as well as supporting partnerships involving voluntary adoption agencies.

If these developments were successful, one could envisage that the system would have changed to such an extent that it reached a tipping point at which the use of the power in, say, subsection (3)(c) might make sense. However, if these developments were not successful, what would the Secretary of State do? Would he outsource adopter recruitment from all local authorities anyway when there was no credible alternative? That would be wholly irresponsible and I cannot believe that the Government would take such a risk. Either way, the point is that there really ought to be parliamentary oversight at that point.

The point is that mobilising the power in Clause 3 becomes necessary, and indeed possible in practice, only if and when the developments between local authorities and the voluntary sector reach a critical mass such that wholesale change across the country is a viable option. That is my concern with Amendments 4A, 4B, 4C and 4D. Together, they would have the effect of applying the affirmative resolution procedure only in the event of the Secretary of State wanting to outsource these adoption functions from all local authorities simultaneously—that is, using the power in subsection (3)(c). If these amendments were agreed, the Secretary of State would still be able to direct significant proportions of local authorities in groups under the power in subsection (3)(b) and require them to outsource their adoption functions. For instance, he might require that in respect of all shire counties or all metropolitan authorities. Indeed, by announcing three or four successive directions, each of which related to a large group of authorities, the Secretary of State could effectively sweep the country without any parliamentary scrutiny. In other words, by using a few directions under subsection (3)(b), he could achieve what I think we all agree we want to prevent, which is the use of subsection (3)(c) without any scrutiny.

In my view, it is not logical to try to apply the affirmative resolution to subsection (3)(c) but not to do so also to subsection (3)(b). The effect of that would be not to constrain the Government at all, because they could still use the power in subsection (3)(b) successively to include all local authorities. That is my big concern, and it is expressed and supported by organisations in the sector such as Barnardo’s.

We believe that, apart from in relation to individual named authorities under subsection (3)(a), we should expect the Secretary of State to come to Parliament and, via an affirmative order, outline the progress that has been made and to answer the questions that Members would inevitably have—questions such as how secure the changes are, what the national picture is in terms of the number of consortia recruiting adopters, how many adopters are being recruited, and whether the capacity of the voluntary sector has grown and what role it is playing. The voluntary agencies and local authorities might have issues that they would want us to pursue, as would be normal. There would be many legitimate questions, and answers to them could be put on the record.

The Government are right to address the problem of insufficient adopters. If they wish to review the adopter recruitment system and propose something radically different, they are entirely within their rights to do so. However, they should not try to instigate radical change to a national system on the judgment and pronouncement of an individual Secretary of State. They should come to Parliament so that those proposals could be properly debated and scrutinised in the normal way. That is all we are proposing, and I think it is very reasonable and very normal. I beg to move.

[The Deputy Speaker (Lord Brougham and Vaux) (Con)]

I should advise the House that if Amendment 4D in this group is agreed to, I cannot call Amendment 5.

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[Lord Nash]

My Lords, I am grateful to those noble Lords who have contributed to this debate. I am acutely aware of the concerns Peers have raised about this clause. I thank particularly my noble friends Lady Hamwee, Lady Eaton, Lord Storey and Lord Eccles for helping me to understand the nature of those concerns.

Following constructive discussions, I am persuaded that the Government’s amendment and the commitment to report to Parliament do not provide for the parliamentary scrutiny that many noble Lords would wish to see. I am therefore very grateful to my noble friends for tabling their Amendments 4A to 4D and 6A. I am persuaded that it is right for a direction to all local authorities to be subject to full and rigorous scrutiny by Parliament. I therefore confirm my support for their amendments and, if they are accepted, I will not of course need to move my Amendment 6.

Before I address Amendments 4 and 5 I remind noble Lords of the rationale of the clause as set out in the recently published policy statement. The clause is intended as a backstop should the current and significant efforts of local government and voluntary agencies prove insufficient. Unfortunately, we have to accept that this is a possibility as adoption agencies have to work within a flawed system. The fundamental problems are the structure of provision, based around local boundaries, and the unhelpful incentives associated with this structure. This constrains the ability to recruit adoptive parents in sufficient numbers. As a result, the system fails to deliver enough adopted parents to meet national demand, as we have already discussed.

However, let me be quite clear: it is the system that is failing to meet national demand, not the individual local authorities and voluntary adoption agencies that make up the system. The distinction is important and can be demonstrated by statistics. Recently published Ofsted data showed a 34% increase in adopter approvals in 2012-13 compared to the previous year. This is a huge achievement on the part of individual agencies. Local authorities have delivered a 32% increase in adopters recruited and approved and voluntary adoption agencies a 53% rise, and they should be congratulated.

Impressive though these numbers are, the sad truth is that this is still not enough to meet the needs of the number of children waiting for a loving home. At the end of March 2013, there were 6,000 children approved by the courts for adoption, waiting to move in with a permanent family. This is 15% higher than the year before. Furthermore, we estimate that we need around 3,100 additional adopters to meet the existing demand of the children who were already waiting with a placement order.

So we face a real challenge to recruit more adoptive parents. To meet it, we need to transform the system and tackle the underlying structural problems. I feel that we are well placed to do so. After welcome and constructive discussions with colleagues from local government and the voluntary sector, we have an agreed proposition for a national adoption leadership board. This is a significant milestone and demonstrates a collective commitment to take nationally driven action to close the adopter recruitment gap. The board’s members will be senior figures from the core organisations within the adoption system in England. I therefore see this board as the principal forum to deliver significant improvements in the performance of the adoption system.

Under the board’s leadership, we expect to see significant changes in the shape and structure of the providers available, including increasing consolidation and scale among local authority adoption agencies; growth in the capacity of the voluntary sector and an increase in the proportion of adopter approvals for which it is responsible; and more partnership working between local authorities and voluntary adoption agencies, local authority employees, spinouts into mutuals and the entry of some new providers.

These sorts of things are already happening. For example, I was pleased to see from the recent Ofsted publication that, as my noble friend Lady Hamwee referred to, 12 local authorities now provide adoption services under joint arrangements. These are Bedford borough and Central Bedfordshire; the west London tri-borough; Leicestershire and Rutland; Shropshire and Telford; and, as the noble Baroness, Lady Hughes, referred to, Warrington, Wigan and St Helens.

I also welcome the partnership arrangements that exist between local authorities and voluntary adoption agencies—for example, those operating in Harrow, Kent, Cambridgeshire and Oxfordshire. We just need to see these types of arrangements happening more quickly and more often.

Clause 3 therefore provides levers of last resort. It is the backstop to a number of things that Government are doing to support local authorities and voluntary adoption agencies. I have already mentioned the Government’s support for the new national adoption board. We have invested £150 million through the adoption reform grant to support local authorities in 2013-14. We are also investing £16 million to build the capacity of the voluntary sector.

We know that these investments are having an impact. We expect there to be a number of new voluntary adoption agencies in the near future and we know that many local authorities have made good use of the adoption reform grant. For example, they have recruited additional staff, provided staff training and development and funded a range of marketing activities to recruit more adopters. I was particularly interested in the work the Southwark area is doing, as I have already mentioned. It used some of its funding to develop an innovative recruitment campaign to target harder-to-reach prospective adopters using a reward scheme. Southwark is also working with Lambeth to fund an outreach worker to promote the recruitment of adopters from the BME community.

I will now explain the government amendment, which tries to address some of the concerns raised in Grand Committee. Amendment 6 delays the implementation of new subsection (3)(c) until March 2015 at the earliest. It therefore provides more time for current reforms to embed and for the new leadership board to have an impact. The Government also commit that the Secretary of State will report to Parliament before issuing any direction under new subsection (3)(c).

This report would set out an updated analysis of the state of the adopter recruitment market. It would cover both the local government and voluntary sectors and analyse their current structure and effectiveness. It would also include the latest estimate of the adopter recruitment gap. In essence, it would justify the requirement for a direction under new subsection (3)(c). Any such direction would provide sufficient time for new arrangements to be put in place. This is an important point as structural change cannot happen overnight.

[Baroness Hughes of Stretford]

My Lords, I would like to clarify whether the Minister is withdrawing Amendment 6, as I thought he stated earlier on.

[Lord Nash]

Yes, if I accept Amendment 6A, I do not have to move Amendment 6, because it is covered, I believe. If that is not clear, we will have a further conversation, I am sure.

[Baroness Hughes of Stretford]

For absolute clarity, is the Minister saying that he is withdrawing Amendment 6?

[Lord Nash]

My Lords, I am and I am accepting Amendment 6A.

In the period prior to March 2015, the Secretary of State would retain the capacity to issue directions under new subsections (3)(a) and (3)(b), if absolutely necessary. As I set out in my policy statement, these directions would follow due process. For example, they would be preceded by a letter setting out the Secretary of State’s intention to issue a direction. This would explain the underlying reasons and provide the affected local authorities with an invitation to respond. Only then would the Secretary of State take a final decision to issue the direction. In considering the issuing of any direction, I expect the new adoption leadership board to play a key advisory role.

Amendment 5 would largely reduce Clause 3 to an intervention power to tackle individual local authorities. But this is not the purpose of Clause 3 which, as I have said, is intended to tackle whole-system failure. Nor would such an intervention power be necessary. As noble Lords are aware, the Secretary of State already has the power to intervene if the performance of individual local authorities requires it.

We have already seen a welcome increase in the number of adoptive parents recruited. This is testament to the efforts of adoption agencies to rise to the challenge. Simply having Clause 3 in the Bill has undoubtedly helped to galvanise agencies, as referred to by my noble friend Lord Storey, but Amendment 5 would simply undermine this stimulus to further progress. I therefore urge the noble Baronesses not to move it.

Turning to Amendment 4, the Government do not agree that directions to “one or more descriptions” of local authorities under new subsection (3)(b) should also be subject to the affirmative procedure. New subsections (3)(b) and (3)(a) provide the Secretary of State with the flexibility to take swift, decisive action if required. For example, to answer the point made by the noble Baroness, Lady Meacher, they could be used to direct a small number of local authorities who were resisting a successful regional initiative, driven by other local authorities, to collaborate and work more efficiently. A direction given in this way would be the result of a dialogue with the affected authorities. It would thus be an iterative process, not a unilateral declaration.

I can confirm to my noble friend Lady Hamwee that it is not the intention to use new subsection (3)(b) as a method of achieving the aim of new subsection (3)(c) without the affirmative procedure. My noble friend also asked whether the direction has to be about all the functions in subsection (2), or merely some of them. She is right; it can be about all or any of the three function in that paragraph.

I understand that the noble Baronesses, Lady Hughes and Lady Meacher, and the noble and learned Baroness, Lady Butler-Sloss, wished to make the case for the affirmative procedure and I have agreed that this should apply in relation to new subsection (3)(c). I am also surprised that Amendment 4 does not encompass the March 2015 milestone. This is an important staging post to ensure the reforms have maximum impact. I therefore ask the noble Baroness, Lady Hughes, to withdraw her amendment.

[Baroness Hughes of Stretford]

I thank all Members who participated in this debate. It is an important issue and it is right that it was aired again on Report. The noble and learned Baroness, Lady Butler-Sloss, characteristically put her finger on one reason why this is important: the danger of allowing any Government, now or in the future, to interfere in a heavy-handed way with local authority functions without parliamentary scrutiny. That is the key issue.

The noble Baronesses, Lady Hamwee, Lady Eaton and Lady Walmsley, and the noble Lord, Lord Storey, all felt that there was no need for the affirmative resolution in relation to new subsection (3)(b). The Minister’s statement has just put on the record that the Government would not use new subsection (3)(b) as a way of progressively working through local authorities in this country, and thereby achieving new subsection (3)(c) through successive application of new subsection (3)(b). That was a very helpful statement to put on the record and it gives some reassurance. However, I say to the noble Lord, Lord Storey, and the noble Baronesses, Lady Hamwee, Lady Eaton and Lady Walmsley, that the noble Baroness, Lady Meacher, pinpointed the danger of that. Although the Minister said that new subsection (3)(b) could be used for small groups of local authorities, equally, it could be used for large groups of them in exactly in the way that the noble Baroness identified: all metropolitan districts or all boroughs, and so on. It would take only two or three directions of that nature to encompass all the local authorities in the country.

However, the Minister’s statement putting it on the record that the Government will not do that is helpful. With that, I think we have consensus across the House; this was evident in Committee and in the meetings that have taken place since. That consensus is on the principle of parliamentary scrutiny—particularly when the Government are implementing significant change in public services, which they would be if they applied new subsection (3)(c)—and that implementing change on that scale, involving all local authorities at once, should have the affirmative resolution procedure. It is very good that the Government have at last conceded the strength of feeling in the House on that issue and agreed the affirmative procedure in relation to new subsection (3)(c). Having achieved that, and with the Minister’s statement in relation to new subsection (3)(b), I beg leave to withdraw my amendment.

Amendment 4 withdrawn.

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[Baroness Hughes of Stretford]

My Lords, I ask for guidance as to whether we can now speak on Amendment 12, which the business paper incorrectly describes as “g12”—a government amendment. I think it is confusing people.

[The Deputy Speaker (Lord Haskel) (Lab)]

There is an error on the paper. The government amendment is number 11 and the amendment of the noble and learned Baroness, Lady Butler-Sloss, is number 12. The two are grouped together, so the noble and learned Baroness, Lady Butler-Sloss, may speak to her amendment.

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I do not know if I am in the loop, and of course as a Cross-Bencher I do not hear what happens in the usual channels, but I get the impression—I hope I am right—that the Minister proposes to bring forward an amendment at Third Reading that would bear some resemblance to the current Amendment 12. If that is so, I am absolutely delighted. I very much look forward to seeing what that amendment will be, what it contains, and whether it contains what the noble Baronesses and I, who put our names to this amendment, would hope to find there. However, for the moment, if that is what the Minister is going to do, it would be a total waste of your Lordships’ time for me to say anything more about Amendment 12.

[Baroness Hughes of Stretford]

My Lords, before the noble Earl, Lord Listowel, rises, I will say one or two words and not delay the House. The Government have recognised how dear this issue is to the hearts of so many noble Lords, including to myself. I am very pleased that they will bring forward an amendment at Third Reading. I wanted in particular to congratulate the noble Earl, Lord Listowel, and the noble and learned Baroness, Lady Butler-Sloss, who have both led the charge on this.

As the Minister said, the pilots were initiated by the previous Labour Government, and we would certainly have extended the provision across the country had we been able to and had the general election not intervened. I will not rehearse the benefits that the pilots have identified, but they are significant. However, despite those benefits, as the Minister said, figures show that depending on local authorities voluntarily to move in this direction and enable young people to stay put is not working.

I reiterate what the noble and learned Baroness, Lady Butler-Sloss, said. While the Minister has today given us some reassurance about the terms of the amendment that they will bring forward, we need to see it as soon as possible. The amendment that has been tabled envisages continuation of accommodation for young people up to the age of 21 unless there are very specific practical reasons why that is not practicable. In other words, the amendment that has been tabled would move the centre of gravity on this issue and make it much more the norm that a young person in care would stay with foster parents rather than not. That is what we would like to see in the government amendments. Can the Minister give us an assurance that the amendment will be published in good time so that we can consider it?

[The Earl of Listowel]

My Lords, I am most grateful to the Minister for informing us of the Government’s proposal to bring forward their own amendment at Third Reading to introduce the staying-put amendment. I was very grateful to him for his preparedness to listen. Our first meeting had to be postponed because of family illness, but he was very prepared for us to meet again to discuss this, he listened carefully to concerns and we met on subsequent occasions. I was most encouraged by his attention and his responsiveness to my concerns and to those raised by other noble Lords.

I was also very moved in Grand Committee by the strong support from all around the House, from so many noble Lords who are parents and grandparents, who recognised that they look after their own children until the age of 25 or 30. The average age of a child who leaves home is 24 or more. However, many young people who leave care move out at age 16, 17 or 18. I am so grateful to all your Lordships that this change has come about.

In the evaluation that was done on this following the pilots in the 10 local authorities that the noble Baroness set up under the previous Government, 24% of young people stayed put. Those who stayed put with their foster carers towards the age of 21 were twice as likely to be in education and more likely to be at university. Those who did not benefit from staying put, who did not stay with their foster carers, were more likely to have multiple changes in habitation immediately after leaving care and to have far poorer outcomes. As Natasha Finlayson, chief executive of the Who Cares? Trust, said, this is a huge change in the lives of many young people leaving care—one of the biggest changes we have seen in many years. It is very much to be welcomed.

I want to raise one issue at some point with the Minister, which Natasha Finlayson raised in her comments, on dealing with children in children’s homes. They would not be touched by the legislation as it stands, and I understand that it would be a considerable extra cost to allow young people to stay in their children’s homes past age 18. However, it has been suggested that there might be a method of connecting young people in residential care with foster carers towards the end of or early on in their stay in residential care so that, if they chose, they could move on to a fostering arrangement as they moved towards the ages of 18, 19 and 20. I hope that the Government might look at that. Perhaps that is something for guidance rather than statute, and therefore perhaps not for the amendment the Government will bring forward at Third Reading. However, I hope that they will consider it.

I am particularly grateful to the Secretary of State who, at a time of serious austerity, was prepared to come forward with £40 million to enable this to happen. I very much wanted that to be achieved, but felt some concern for the directors of children’s services, who would have to make some very difficult choices in the short term to make this possible. As regards this matter I am therefore extremely grateful for the actions of the Minister, to the Minister for Children and Families, and to the Secretary of State.