Citizens Advice Bureaux

Baroness Wilcox Excerpts

Thursday 8th December 2011 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, I thank the noble Lord, Lord Boateng, for securing this debate. As former chair of the National Consumer Council, where we did a lot of work for consumers, including disadvantaged consumers, chairman of the National Federation of Consumer Groups, which is the grass-roots organisation, and former president of the trading standards administration, the plight of consumers is very close to my heart. The need for more and more advice in these complex and worrying times has been evidenced here tonight.

The noble Lord, Lord Young, almost said just ditto, and so could I. He has to speak for the Opposition, and I must respond for my coalition Government and be practical and report to the House what I can. The big society is about putting more power into people's hands—a massive transfer of power from Whitehall to local communities. Voluntary, community and social enterprises are, we believe, central to that vision, because they act as a mechanism for people to come together to act on a given cause and provide a voice to individuals or groups who might not otherwise be heard. Sometimes those transitions are more difficult than we think they will be.

In response to my noble friend Lord Phillips of Sudbury, I say that our vision is for the sector to play an even more influential role in shaping a stronger sense of society and improving people's lives to give them a huge range of new opportunities to shape and provide innovative bottom-up services where expensive state provision has failed. We have already pledged £470 million over the current spending period to help the sector build capacity, including a £107 million transition fund, which has been referred to tonight, to support voluntary organisations that deliver public services.

In response to the noble Lord, Lord Boateng, and my noble friend Lord Newton on funding for CABs, I say that although the transition fund has ended, the Government are acutely aware that the voluntary sector still faces challenges to its funding streams at both the national and local level, especially those organisations involved in the provision of free advice services.

On 21 November, the Government announced that we had set aside £20 million to support the sector in the short term, as well as that we would be conducting a review to consider the longer-term environment of both funding and demand and how the Government can play a role in that. The review, which has already begun, will conclude early next year. That is all I can say about the review at this time.

To date more than 1,000 organisations have benefited from the funding we have provided, including 45 citizens advice bureaux.

To the noble Lord, Lord Thomas, in response to the question on legal aid and the transition fund, I say that the Government recognise the important role that not-for-profit organisations such as citizens advice bureaux do in delivering advice services at the local level. We are working with the sector, and across government, to ensure that the implementation of government reforms helps to improve the efficiency and effectiveness of advice services available to the public. The Government will be providing, as I said, additional funding of up to £20 million in this financial year to help achieve that.

Many people, including my noble friend Lord Newton—and in fact every speaker, I think—would say that the Citizens Advice service is already the big society in action: a respected brand, independent of Government, served by a network of volunteers, which people really trust. That is why my department has been consulting on ways in which Citizens Advice might play an even stronger role in providing consumer advocacy.

We are thinking of bringing together the powers and duties currently wielded by Consumer Focus, with its long-standing expertise and experience of helping people on the front line, to make an even bigger difference for consumers. The review, as we have said, concludes early next year, and especially after tonight I am mindful of the urgency and will reflect that back.

As a Government we are committed to ensuring that people have continued access to good-quality, free and independent advice in local communities, and that is why, as I have said before, on 21 November we announced the funding to the advice service fund. This will support the not-for-profit advice service providers to deliver essential services. This fund will focus on debt, welfare benefits, housing, and employment in the short term. A review to look at funding and the demand for advice services—

[Lord Phillips of Sudbury]

Could my noble friend tell the House who will administer that £20 million? Who will decide where it goes?

[Baroness Wilcox]

I will try to answer the questions as I go along, because, first, that means noble Lords do not have to wait for me to write the answer, and secondly I can try to fit them into what I am saying so that it has some kind of flow. But more than likely I will not get it right and will wish I had not started this way. I will try to continue. The noble Lord will get his advice.

The noble Lord, Lord Shipley, spoke about the policy to protect the vulnerable. The advice sector review is seeking the input of a wide range of advice sector stakeholders, including national and local advice organisations, representative bodies, funders and other organisations that have an influential role in this sector. Continual provision of services to vulnerable consumers will be at the centre of this review, and I hope that this reassures the noble Lord, Lord Shipley, that we are looking at it.

I am pleased that my department continues to support the national umbrella bodies that support the local bureaux, but the same cannot be said of local authorities. In a number of areas, the delivery of services by local bureaux has been seriously affected by local authority spending cuts, despite clear guidance from central government that voluntary organisations should not be seen as a soft target by them.

The current financial climate is such that all avenues must be explored in finding efficiencies and unlocking savings, and because of their experience, creativity and closeness to communities, voluntary groups can frequently deliver them.

[Lord Boateng]

Given the failure of many local authorities to take the advice and guidance from government, I wonder if the Minister would reflect, and perhaps come back to us, on the desirability of her department encouraging consideration within government of whether to impose a duty on local authorities to make provision for advice in their areas. Surely experience shows us that when local authorities do not take guidance from central government there is a requirement at least to consider imposing a statutory duty on them to do so.

[Baroness Wilcox]

As a result of the debate that the noble Lord called, I can take back what he suggested. I cannot respond at the moment, but a debate such as this allows things like that to be said, on which I will go back and reflect—as I will on everything that was said, including the question of the noble Lord, Lord Phillips, to which the answer is, “We will write to Lord Phillips”. So I cannot give him the answer now, for which I apologise.

The current financial climate is such that all avenues must be explored to find efficiencies and unlock savings. Because of their creativity and experience close to communities, voluntary groups can frequently do this. Local authorities should look to strengthen, not weaken, their ties with the voluntary sector. I am pleased that councils such as Reading, Hackney, Thurrock and Wolverhampton have recognised this. Certainly I will take back the comments that the noble Lord, Lord Boateng, has just made.

I felt that this debate was almost a forerunner for the Committee stage of the Legal Aid, Sentencing and Punishment of Offenders Bill. I also felt that I could not tell noble Lords very much more than what we are doing at the moment, which is almost all that I have done. It simply remains for me to recognise the excellent work carried out by Citizens Advice nationwide. In future, our goal is for Citizens Advice to be at the heart of providing consumer information, advice, education and advocacy. In the mean time, I am glad that my department's financial support for the central operations of the Citizens Advice network helps bureaux to go on being the mainstays of community life.

As I said, I will take away the speeches that emphasised the urgency of need, and in particular the speech of the right reverend Prelate the Bishop of Newcastle, who spoke so movingly of the need in rural areas. It is easy to forget when we spend so much time in central London that the area I come from—Cornwall—and the area he reflected on are large areas with small populations where it is very difficult to get advice.

I will take back the reflections of my noble friend Lady Gardner on the fact that language is sometimes a barrier, not an access, and that we must be careful to make sure that everything does not happen online. I hope that the results of the review that I reflected on will enable the Government better to reflect what we have heard tonight.

House adjourned at 5.48 pm.