Deregulation Bill

Baroness Primarolo Excerpts

Wednesday 14th May 2014 Commons Chamber

[Chris Williamson]

The Solicitor-General says he wonders about the Labour party, but I wonder about him. Listen, if the Solicitor-General is so concerned and thinks that this is such a wonderful piece of legislation and the prescribed list is so clear, why does he not think that painting and decorating is a hazardous occupation? Does he not think that maritime is a hazardous occupation? If this is the prescribed list will he tell us, as I challenged him to in my contribution, what is not on it? Painting and decorating is not on it and that is clearly a hazardous occupation. What else is not on it? He says that there are no hazardous occupations that are not covered by the list.

[Madam Deputy Speaker (Dawn Primarolo)]

Order. This is becoming a speech. It is supposed to be an intervention. We have heard the speech once and we do not need to hear it again.

[The Solicitor-General]

On some of the early points that were made, this is a matter—

--- Later in debate ---

[The Deputy Leader of the House of Commons (Tom Brake)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dawn Primarolo)]

With this it will be convenient to discuss the following:

Amendment (a) to new clause 1, after subsection (4) at end insert—

‘(4A) The Secretary of State shall, within six months of this section coming into force, lay a Report before both Houses of Parliament setting out—

(a) what information has been shared or is intended to be shared by virtue of this section,

(b) by what process the Commissioners and Secretary of State agreed on the information to be shared,

(c) which departments and agencies will have access to that information and for what purpose,

(d) whether some or all of that information was shared or will be shared in anonymised form,

(e) whether that information included or will include—

(i) confidential information, or

(ii) personal data (including sensitive personal data) as defined in the Data Protection Act 1998, and

(f) how the provisions of this section fit with the Government’s data sharing strategy.’.

Government amendments 5 to 9, 74, 10 and 11, 27 to 35, 55 and 56.

[Tom Brake]

New clause 1 provides for an information-sharing gateway between Her Majesty’s Revenue and Customs and the Secretary of State to support the new apprenticeship funding arrangements. The gateway was previously contained within clause 4 of the Bill, and new clause 1 allows it to operate independently from the arrangements in clause 4. As I set out in Committee, routing funding through employers will mean that the Secretary of State will make arrangements with HMRC, and regulations will set out how the administration of the scheme would operate. The Government published a technical consultation on apprenticeship funding reform in March, which sought views on two payment mechanisms: PAYE—pay-as-you-earn; and an apprenticeship credit. The consultation closed on 1 May. We are analysing the responses and expect to announce our next steps later this year.

Clause 4 provides for the use of HMRC systems to administer the apprenticeship payments, but we must also provide for appropriate information flows. The use of HMRC systems means that information will need to be shared between HMRC and the Secretary of State for the purposes of administering the payments. New clause 1 provides for the disclosure of information between HMRC and the Secretary of State or persons providing services on behalf of the Secretary of State in connection with approved English apprenticeships.

The new clause also allows the information-sharing gateway to operate independently of arrangements in clause 4. That will allow flexibility, should it be needed, in any future arrangements. As new clause 1 sets out, information can be shared only provided it is in connection with approved English apprenticeships. The routing of apprenticeship funding to employers will mean that the Government will need to have the facility to check an employer’s credentials. For example, the Government will want to know that the person they are paying is who they say they are, and the new clause will allow the Government to cross-check information with HMRC data.

New clause 1 is a sensible way to validate employer and apprentice data, potentially minimising the burdens on employers and helping to reduce the potential for fraud. As is normal in relation to HMRC information, the information-sharing gateway is provided for in primary legislation and ensures that taxpayers’ information is safeguarded, with a criminal sanction protecting against unlawful disclosure of identifying information. Amendments 10 and 11 are consequential on the new clause, and would leave out the information-sharing gateway provisions in clause 4.

The Opposition’s amendment (a) to new clause 1 seeks a reporting requirement in connection with the new information-sharing gateway that the Government are introducing in the new clause. To direct apprenticeship funding via employers securely and in a way that safeguards public funds, government must be able to verify an employer’s identity and credentials. New clause 1 will allow the Government to do that by providing for an information-sharing gateway between HMRC and the Secretary of State, so that information already held by government can be used to validate payments without placing additional reporting burdens on employers—the Government want to avoid that. Subject to the detailed design and operation of the payment system, which is still to be confirmed following the recent consultation, examples of the types of data that may need to be shared in order to validate payments and manage the risk of fraud include: employers’ PAYE references; apprentices’ national insurance numbers; and details of the amounts that have been paid.

The Opposition amendment is not necessary. Many hon. Members will be aware that information sharing within government is quite normal, provided there are sufficient safeguards. The House will note that the new clause only allows HMRC to share information for the purposes of the Secretary of State’s functions in relation to approved English apprenticeships. HMRC can disclose information only to the Secretary of State or a person providing services on behalf of the Secretary of State—not to anyone else. The Secretary of State, or his service provider, can only disclose information to HMRC to request information from it or for the purposes of arrangements for the administration of apprenticeship payments made under clause 4.