Equality and Human Rights Commission

Debate between Chris Stephens and Lord Johnson of Marylebone

Wednesday 1st March 2017 Commons Chamber

[Chris Stephens]

rose—

[Joseph Johnson]

If hon. Members give me some time, I will supply some context for the reduction, most of which we did not hear from the hon. Gentleman.

[Joseph Johnson]

The context that I am about to provide will help hon. Members understand in more detail why cuts of that magnitude were appropriate. If the hon. Member for Glasgow South West bears with me, I am sure that I will answer the question that he was about to ask.

First, when the EHRC was set up in 2007, it had an extraordinarily high budget to facilitate the merger of three previous bodies—the Equal Opportunities Commission, the Commission for Racial Equality, and the Disability Rights Commission—into a new body. The budget was simply not right for the organisation during its infancy. In 2007, the EHRC had a budget of £70 million, which was an astonishing £20 million more than the combined budgets of the three previous commissions. The EHRC never managed to spend more than £62 million in any year. Indeed it often struggled to spend its allocation, reporting significant and repeated underspends. In June 2010 for instance, the EHRC budget was reduced in-year from £62 million to £55 million. However, the EHRC’s actual expenditure in 2010-11 was £48 million, of which £16.3 million, or 35% of its budget, was spent on its corporate costs.

Secondly, those with longer memories will acknowledge that the organisation was poorly managed at the time and had poor spending controls, as a result of which its first three sets of accounts were all qualified. That inevitably called into question its financial controls and the amount of funding that it should be given.

Thirdly, Members should be aware that the EHRC’s budget reductions have simply reflected changes to its range of functions. A number of significant functions have been repealed, or are no longer funded, to help it concentrate on its core remit. Most notably, the EHRC has stopped its large grants programmes, which had been mismanaged and cost several million pounds. The EHRC also lost its helpline, which cost £2.5 million a year, and its conciliation role in service provision. Those functions ceased in 2012-13 and were costed at £10.1 million or 21% of the EHRC’s budget at the time.

Those changes were considered in the review of public bodies conducted by the Government in 2010, and it was decided that the EHRC should be “retained but substantially reformed”. In March 2011, the coalition Government accordingly set out plans to reform the EHRC in the consultation document “Building a Fairer Britain: Reform of the Equality and Human Rights Commission.”

The current Prime Minister, who at the time was Minister for Women and Equalities along with her Liberal Democrat coalition partner Lynne Featherstone, set out proposals

“to transform the Equality and Human Rights Commission into a valued and respected national institution.”

A comprehensive budget review was set up in 2012 to identify the minimum level of funding needed for the commission to discharge its statutory functions effectively, in accordance with the provisions of the Equality Act 2006. The review concluded that steady state funding of £17.1 million would be adequate for the commission to continue to fulfil its statutory functions.

[Chris Stephens]

The Minister seems to be suggesting that the £17.4 million budget for 2019-20 is only to support the commission’s core statutory functions, which I understand is the direction of travel. Will he confirm that, in previous years, the commission received up to £7.8 million of funding to support its wider functions?

[Joseph Johnson]

The EHRC is receiving money in excess, although modestly so, of the minimum amount regarded as necessary to support its statutory functions. The hon. Gentleman is correct.

[Joseph Johnson]

Work was undertaken in the last Parliament to assess the minimum level of adequate funding necessary to ensure that the commission is in a position to discharge its statutory functions. As I said earlier, the review concluded that steady state funding of £17.1 million would be adequate.

The hon. Member for Glasgow South West mentioned staffing reductions, which I recognise is also a concern of other hon. Members. As an independent body, it is for the EHRC to determine the level and structure of its staffing, which includes defining the appropriate grading and staff numbers. The commission has had to make difficult decisions in order to deliver value for money in its use of public funds while also ensuring that it is furnished with the right complement of skills and experience. Once the commission has concluded its restructuring under the target operating model, the total number of posts will be 179.

The hon. Member for Pontypridd (Owen Smith) asked about the impact of the EHRC’s restructuring on the Government’s goal of halving the disability employment gap. In terms of actual redundancies, the restructuring affects six disabled staff members. More widely, the EHRC retains good links with disabled groups, is continuing its work on disability issues and is working with disabled groups specifically to improve its enforcement work on disability discrimination cases.

The Government are also working generally to combat hate crime. Other hon. Members asked about the impact of the restructuring on the commission’s ability to deal with instances of hate crime. The Government are working generally with the police to provide a breakdown of data on religion-based hate crime to help them target resources and increase understanding. We recently published the hate crime action plan, in July 2016, and are now delivering locally based projects to tackle hate crime. We have announced additional funding for communities to increase reporting, with £2.4 million to protect places of worship and £900,000 to support community projects. We are engaging with groups to ensure we understand the public’s experience of hate crime and make it easier for victims to come forward.

Let me turn specifically to points made by the hon. Member for Birmingham, Erdington (Jack Dromey). Although the EHRC needs to have due regard to fostering good relations, it is not a criminal enforcement agency, as he knows, and it has no role in prosecuting offenders or ensuring compliance with the law in this area. Therefore there will be no impact on the Government’s ability to tackle hate crime.

[Chris Stephens]

The Minister is saying that the commission does not have duties in terms of dealing with criminal behaviour, but he has yet to comment on how staff were treated. They were dismissed with one day’s notice and told to clear their desks. Does he believe that that is appropriate?

--- Later in debate ---

[Joseph Johnson]

The hon. Gentleman needs to look at the EHRC’s restructuring in the context of its ability to carry out its broader work to support people with disabilities and to ensure that their rights are not affected by their disabilities in terms of their ability to access opportunities in the workplace.

As the National Audit Office notes, the EHRC

“has responded to its budget reductions in a number of ways”,

and it is increasingly working in partnership with other organisations and being more selective in the legal cases it takes on, taking on cases with the potential for the most impact and thereby enhancing its overall effectiveness. We are working with the EHRC to increase its effectiveness further. We share the view that members of the Women and Equalities Committee expressed in January: the EHRC should play to its unique strengths and powers, as provided in its legislative framework, by making more selective legal interventions and leaving the research to other bodies that can already fulfil that function.

[Chris Stephens]

The Minister is being very generous in giving way. He must appreciate the anger felt by Opposition Members about how staff were treated—they were effectively sacked by email. Will he confirm that the commission will be given some human resources and personnel advice and expertise by Government Departments? Is he going to intervene regarding the concerns we have about those staff who have been sacked?

[Joseph Johnson]

We are satisfied that the EHRC has conducted its restructuring in an appropriate manner. It has consulted all the relevant partner bodies, as required.

I understand that the EHRC chair, David Isaac, shares the objective of the commission sticking to its legislative framework—

Department for Business, Innovation and Skills Office: Sheffield

Debate between Chris Stephens and Lord Johnson of Marylebone

Wednesday 24th February 2016 Westminster Hall

[Joseph Johnson]

I will come to savings shortly, so if the hon. Gentleman bears with me for a few seconds, I will get to his question.

The BIS programme will reduce operating costs by 30% to 40% and deliver a simpler, smaller Department that is more flexible in delivery and more responsive to stakeholders. As part of those plans, as right hon. and hon. Members know, the Department has announced its intention to close the BIS office at St Paul’s Place in Sheffield by January 2018. Such decisions are never taken lightly, and providing the right support for and communications with staff has been a priority for the permanent secretary and the entire senior team of the Department. All staff and departmental trade unions were informed of the decision on 28 January and the statutory 90-day consultation process began shortly afterwards. All staff affected by the decision have been fully briefed.

The hon. Member for Rotherham (Sarah Champion), who is no longer in her place, asked what support had been made available to affected staff. I will give the House some detail on that important matter. We are providing comprehensive support to all those facing a potential change or loss of job, including: professional, external careers advice; professional outplacement support; a jobs fair in partnership with the Department for Work and Pensions; time out of the office for job-search activities; and financial advice workshops. In addition, we are exploring all routes to avoid compulsory redundancies, including voluntary exit schemes. There will be no compulsory redundancies before May 2017 as a result of the proposed closure of the Sheffield site.

Many staff will be listening to the debate or watching it on television. The BIS senior leadership wants to ensure that the package of support is comprehensive. If there are things that the Department could be doing, or ways in which we could enhance the support I have outlined, we want to know about it. We want the staff affected to let us know what more the Department can do to support them at this time. We have set up a dedicated email address for them to use, and they have already used the system to make valuable suggestions about ways in which we can enhance the support available. We have been asked by the staff to ensure that updates are regular and frequent. We will be ensuring that that happens. We have already established a dedicated section on the Department’s intranet which includes a comprehensive overview of all “BIS 2020”-related matters. We have set out exactly when our Department’s senior leadership team will be in Sheffield, so that affected staff may discuss their concerns directly.

[Chris Stephens]

The Minister has talked about consultation with staff. Will he tell us, first, how many meetings there have been with the trade unions affected? Secondly, will he outline how a responsive Department can be responsive when it closes offices, leading to a lack of local knowledge and no understanding of local areas?

[Joseph Johnson]

I will happily touch on part of that question. We are now in the 90-day consultation period. The consultation is on a range of issues, including the future of the staff in Sheffield, so—in response to an earlier question from Opposition Members—the future of staff in the city is only one of the issues being consulted upon. Legally, we may confirm the decision on closure before the end of the consultation, but I am happy to confirm that we will wait until the end of the full 90-day period before making a final decision. In response to the hon. Gentleman’s specific question, we have had regular meetings with trade union officials.

To continue, the Department needed to be restructured in line with its new business model under the “BIS 2020” framework. In answer to the question from the hon. Member for Sheffield Central (Paul Blomfield), that will deliver savings of £350 million by 2020, of which approximately £100 million will fall in the administration budgets.