Shared Rural Network

Debate between Baroness Morgan of Cotes and Jim Shannon

Monday 28th October 2019 Commons Chamber

[Nicky Morgan]

I thank my hon. Friend for welcoming this announcement. 5G is already being rolled out and there is no intention to stop that process, but we need 4G as well. The intention is to ensure that her constituents have the best connectivity possible, rather than picking particular technologies. There is already some 5G around her constituency in Devon, but I do accept her challenge. At the end of the day, I think constituents just want faster connectivity—in a way, regardless of how it is delivered. We want the UK to be a world leader in 5G, and it is very important that that happens.

[Jim Shannon (Strangford) (DUP)]

I welcome the Secretary of State’s commitment today to the rural broadband network roll-out. She will know that through the confidence and supply agreement, certain amounts of money have already been set aside for the rural network. Perhaps, Mr Speaker, you, like me, will recall Radio Luxembourg and remember that it faded in and out. There are still parts of the Province where a rural network is not achievable. What will be done to address that issue for small and medium-sized businesses and for those who are self-employed, where it is really important to have rural broadband network roll-out?

Consumer Access: Financial Services

Debate between Baroness Morgan of Cotes and Jim Shannon

Thursday 6th June 2019 Westminster Hall

[Nicky Morgan (Loughborough) (Con)]

I beg to move,

That this House has considered the Twenty-ninth Report of the Treasury Committee, Consumers’ access to financial services, HC 1642.

It is a pleasure to serve under your chairmanship, Mr Walker. The Treasury Committee’s report “Consumers’ access to financial services” was published last month, its conclusions having been agreed by the Committee unanimously. The inquiry was launched in November 2018 to assess whether certain groups of consumers were excluded from getting a basic level of service from financial services providers, whether the regulatory landscape provided sufficient enforcement to ensure that customers could access financial services, and, if not, which remedies were needed.

Our report covered a lot of ground, so I will focus on four of its main conclusions. First, financial exclusion or vulnerability can affect us all at some point in our lives. Secondly, the Post Office alone is not a solution to banks closing their branches. Thirdly, a legal duty of care for financial services providers towards their customers is needed if the Financial Conduct Authority cannot make firms act in their customers’ interests at all times. Fourthly, at present the Equalities and Human Rights Commission does not have the resources to enforce financial services firms’ compliance with the Equality Act 2010, and therefore the Financial Conduct Authority should be given the power to do so.

Before I go into more detail on those four main conclusions, I will give a brief outline of the inquiry’s scope. We received almost 80 written evidence submissions, and we held five oral evidence sessions and two outreach events with members of the public and local charities—one in Waterloo, London, and one in Newcastle. I put on record the Committee’s thanks to everybody who sent us evidence and took part in those events. When I was elected by the House as Chair of the Treasury Committee, I was determined that our inquiries would not just talk about things that affect the City of London and our large financial institutions, but would concentrate on issues that make a real difference to consumers’, and our constituents’, lives. I hope that we have been able to do that in this inquiry.

The oral evidence sessions were held with advice groups and charities representing different groups in society, Members of the House of Lords who had previously carried out work on financial exclusion, representatives from banks and the Post Office, and the regulators with the power to make the changes needed—the Financial Conduct Authority, the Equalities and Human Rights Commission, and the Equality Advisory Support Service, which offers support to individuals with a disability dispute.

It is worth stopping to think about why financial inclusion matters. It is something that many of us will take for granted, perhaps until a time in our lives when we are excluded or suffering, or until we come across a constituency case of somebody struggling. Eleanor Southwood, the chair of the Royal National Institute of Blind People, said in her evidence:

“People experience enormous frustration. But it is also about financial literacy. It is about financial independence. It is about not being more vulnerable to any kind of financial abuse, because you are entirely on top of and aware of your own financial arrangements and situations.”

She went on to say that it

“comes back to the fundamental issues about confidence, the loss of confidence, the loss of confidence in yourself to understand the information.”

I remember the oral evidence that I heard from one of the charities at our roundtable in Waterloo, not very far from here. In this Chamber, we probably take financial inclusion for granted, but an inability to be in charge of one’s finances is sometimes a precursor to an inability to participate fully in society. That is something that we should all be concerned about.

There are many different elements to how consumers access financial services and, as the Committee heard, there are many ways in which people can be excluded. We started by trying to establish which customers we were most concerned about, but the reality is that access to financial services or financial exclusion is not limited to those we might naturally associate with being vulnerable, because vulnerability can happen to any of us at any stage of our lives. The FCA told us that its definition of vulnerability as

“someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care”

could include up to half the population at any one time.

[Jim Shannon (Strangford) (DUP)]

I commend the right hon. Lady, who came into this House at the same time as I did; indeed, she made her maiden speech just before I made mine, so we have had that relationship in Parliament for a long time. She is aware of my constituents the Armstrongs. I have written to her, the Minister and the Department about them. They ended up in company insolvency and then personal bankruptcy, despite repeatedly advising their bank and lawyers that Mr Armstrong was very unwell over a sustained period.

The right hon. Lady referred to vulnerability, and paragraph 179 of the Treasury Committee’s report refers to it very clearly, stating:

“We therefore support the FCA’s intention to do so through a more balanced definition of ‘vulnerability’”.

Will that new recommendation ensure that we have the chance to protect people such as those I mentioned, whom she is aware of through her position as Chair of the Committee? Also, does she agree that not only the UK financial services industry but regulators at the FCA and the Financial Ombudsman Service must be part of any future work—

--- Later in debate ---

[Nicky Morgan]

I thank the hon. Gentleman. He is a legend for speaking in so many debates in this House, and I would feel rather excluded if he were not here today. I am grateful to him for raising those issues. He is a passionate advocate for his constituents, and has raised a number of cases with me as Chair of the Treasury Committee. He is right that a broad definition of vulnerability is important. People will be vulnerable at different times of their lives. He knows that in a separate inquiry we have been looking at the finances of small and medium-sized enterprises, many of which are almost no bigger than retail customers, and may be exposed to the same vulnerabilities.

My understanding on the definition is that the FCA has published its consultation and is asking about vulnerability. In the inquiry, we wanted to ensure that when we talk about vulnerability, we are not limited to a narrow definition, and that when those working in financial services think about vulnerability, they do so in the broadest possible sense, realising that people come in and out of being vulnerable.

In the case of the hon. Gentleman’s constituents, it is worth re-asking the question about how customers appear to those who advise them. We must also recognise that some people will not identify themselves as vulnerable. That is another thing that we heard during the roundtable. People do not want to tell their bank that they are vulnerable because they are concerned that it might lead to higher charges, or even losing an account or not being offered insurance.

[Jim Shannon]

With your permission, Mr Walker—

[Jim Shannon]

This intervention will be brief, unlike the last one—apologies for that. Regulators at the FCA and the FOS need to do more to ensure that the most vulnerable in our society are afforded the appropriate response and interactions. Does the right hon. Lady agree that those regulators must do better?

[Nicky Morgan]

I do. I think the FCA is very aware of that, and wants to do better. That is why it has published the consultation on the definition of vulnerability. The hon. Gentleman and I have had previous conversations about the Financial Ombudsman Service, and I have had correspondence with other Members of this House. We all know that the FOS can sometimes struggle to offer the remedies and the speedy service that people are looking for. The FOS performs an important function, and its new leadership is very aware of the challenges. In particular, more and more of us are aware of the ability to go to the Financial Ombudsman Service, which puts pressure on it. However, the basic conclusion of our report is that everybody involved in financial services could do more.

Financial exclusion is a broad issue that can and does affect us all in many different ways. The key areas that the Committee chose to look at were why financial inclusion matters, which I hope I have already captured in my earlier remarks; the many issues that vulnerable consumers face, such as being able to understand their bank statements and communicate with their service providers in the way that they want to; and the closure of local bank branches and the use of post offices as a replacement.

Welbeck Defence Sixth Form College

Debate between Baroness Morgan of Cotes and Jim Shannon

Tuesday 30th April 2019 Commons Chamber

[Nicky Morgan (Loughborough) (Con)]

I am very grateful for this opportunity to raise the important matter of the future of Welbeck Defence Sixth Form College in Leicestershire. The college is in the constituency of my constituency neighbour, my hon. Friend the Member for Charnwood (Edward Argar), by a few hundred yards, but I have been delighted to visit the college on a number of occasions, both before and since my election in 2010 to represent Loughborough. This is clearly a matter of national importance. It is good to see my hon. Friend in his place on the Treasury Front Bench. I think I can confidently say that at least on this subject he and I are going to be firmly of the same mind. In particular, we would like to take this opportunity to pay tribute to the fantastic staff, pupils and governors, both past and present, for their unwavering commitment to our armed forces, as well as their contribution to the local area and the college over many years; and also to Councillor David Snartt, who has always been a strong voice for the college.

Welbeck is a full boarding co-educational college, funded by the Ministry of Defence. It offers an A-level education to young people who go on to study a degree at a partner university and receive an annual bursary before starting their careers as technical officers within the Royal Navy, Army, Royal Air Force or the MOD civil service. The college now has over 300 boarding pupils, and students come from all over the UK and from a wide variety of backgrounds. This positive impact on social mobility is something I will return to.

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Lady on securing the debate. I declare an interest as a former member of the Army for 14 and a half years as a part-time soldier. Does she not agree that the college is a way of sowing into the future those whose career choice is the armed forces and that to close it down sends a contradictory message to the official one, which is that we want young people to make a career out of the armed forces? Money spent on sowing it into the lives of young people can never be wasted. In other words, money spent now will increase our forces, making soldiers who are special. The British Army is the best in the world.

[Nicky Morgan]

I thank the hon. Gentleman very much indeed for that intervention. I agree with him. From testimonials sent to me by former students and their families, I know how strongly they agree, too. In many cases, Welbeck has transformed their life chances. As he also says, this is about building fantastic armed forces, particularly with a science, engineering and technology background, for the United Kingdom. I am sure the Minister will want to cover how he thinks the changes proposed will enhance that and not detract from it. There is some convincing to do on that score.

Welbeck aims to prepare students for life at university and beyond by giving them a well-rounded curriculum that will—as a champion of character education, I particularly endorse this—

“challenge and develop them academically, physically and socially.”

The college also aims to develop students on a personal level by challenging them through a diverse range of co-curricular activities, which include many different sports, combined cadet force activities, and working within the community through volunteering and charity work.

On 6 April 2018, the Under-Secretary of State for Defence, my right hon. Friend the Member for Bournemouth East (Mr Ellwood), who is the Minister for Defence People and Veterans, wrote to me and my hon. Friend the Member for Charnwood:

“I am writing to inform you that the Ministry of Defence will be undertaking a review of the Defence Sixth Form College at Welbeck as part of an ongoing initiative to understand how to improve the supply of STEM graduates into Defence and the Armed Services…Welbeck is part of our wider scheme for recruiting STEM graduates. Its role is to educate pupils in relevant A-level subjects prior to moving to the next phase of the scheme where they are supported through STEM courses at university. If successful they then go into Initial Officer Training with one of the Armed Services or enter the Civil Service within the MOD. Like many other organisations, we”—

the MOD—

“have found it consistently difficult over recent years to attract sufficient, good quality, STEM candidates. Whilst the education and wider experience provided by Welbeck is of a high standard, and despite measures to mitigate shortfalls, intake targets are not being achieved. Equally, over the 5-6 years they are in the pipeline the numbers seeing it through to Initial Officer Training has consistently only been about 55%.

The review will look at the breadth of the operation of Welbeck, which is a private Finance Initiative establishment run by a contractor, Minerva. It will explore re-setting the current PFI, extracting better value from the current PFI, and also whether a different STEM graduate recruiting scheme would better meet Defence’s needs. We will be instructing PwC to work with Minerva to explore the viability of these options.

Whilst the review will be internal to MOD only, I understand that such a review can create uncertainty and potentially some concern among your constituents. I want to reassure you, however, that no decisions will be made until the review is complete, at which point I will write to you again. One of the assumptions of the review is that, whatever happens, students who are currently on the scheme will be able to see it through to graduation and joining the Services or Civil Service.”

I know that, as the local MP, my hon. Friend raised a question with the Prime Minister on this in the House last year and has had regular engagement on it with Ministers. But as far as I can establish, the review’s conclusions have not been released to the public, nor is it clear who was formally consulted, so it was deeply disappointing to read last month, in a written statement by the Minister here today, of the decision by the Ministry of Defence to

“put in place a new, targeted scheme to recruit undergraduates in related subjects; the STEM graduate inflow scheme…This scheme has been designed to significantly increase the number of STEM graduates brought into defence and the variety of STEM disciplines they are from…The new scheme will replace the current defence technical officer and engineer entry scheme…which has produced some excellent young graduates but is not meeting defence’s requirements or providing sufficient value for money. Ending the current scheme will also mean that the Defence Sixth Form College…at Welbeck will close, with a final intake in September 2019.”

We, and those watching this closely, note the Minister’s final comment in the statement:

“Full transition to the new scheme will take place incrementally over the next five years, during which the current intake of students will be fully supported. For the final two years Welbeck remains a going concern. That time will be used productively to work with local authorities and stakeholders to seek the best possible future use of this impressive school, including within the education sector or an alternative use within defence.”

I will return to the issue about the future in a moment but, first, for the sake of those affected, we must be absolutely sure that the Ministry of Defence is making the right decision. As the local MP, my hon. Friend has written:

“A number of constituents have written to me, following the announcement, to express their concern about the forthcoming closure of the College, particularly in light of the excellent opportunity Welbeck offers young people across the UK, since 1953 and on its current site since 2005, to get a first-class STEM and technical education in preparation for a career in our Armed Forces, and for the values and discipline it instils in its students. While I can understand the Ministry of Defence’s approach to ensuring that it has access to talented engineering and technical graduates needs to be updated from time to time to reflect changing needs and approaches to training and education, I do share the view that Welbeck's closure will be a real loss in that context.”

As local MPs, we note, and are grateful, that my right hon. Friend the Member for New Forest East (Dr Lewis), the Chair of the Defence Committee—I am delighted to see him here—has written to the Ministry of Defence to ask if it is wise to

“shut down a means of creating graduates who have been working towards a service career from their mid-teens.”

He goes on to say

“we are very concerned that closure of Welbeck College risks sacrificing an existing—and productive—source of STEM graduates in the hope that a new and untried system will be more successful.”