VAT: Independent Schools

Debate between Damian Hinds and Jim Shannon

Tuesday 8th October 2024 Commons Chamber

[Damian Hinds (East Hampshire) (Con)]

I beg to move,

That this House regrets that the Government has decided to impose VAT on independent school fees; believes that educational provision should not be taxed; regrets that the Government is rushing to implement this change part-way through an academic year; calls on the Government to exempt from the VAT charge fees paid in respect of children of military and diplomatic families, all children who have an Education, Health and Care Plan, or who are in the process of applying for one, all children on SEN support, Centres for Advanced Training and schools in the Music and Dance Scheme, all children at schools whose fees are lower than the average per capita funding for a state school place, and children at religious schools of denominations for whom there is no faith school provision in the state sector; further calls on the Government to postpone imposition of the VAT charge for schools in areas where state schools in the relevant key stage are already on average over 95% full; also calls on the Government to postpone imposition of the VAT charge for fees paid in respect of children who have started a public examination course, to September 2025 for pupils currently in Year 11 or Year 13, and to September 2026 for pupils currently in Year 10 or Year 12; and calls on the Government to publish a full impact assessment of the effects of this policy on independent schools and the state sector ahead of the Budget.

There are 85 days to go until the introduction of Labour’s education tax, and we are still in the dark. Many questions remain for parents, for children and for schools—when I say “schools”, that is both independent schools and state schools—and also for the local authorities that are responsible for special educational needs provision and generally for ensuring that everyone can get a place at school.

This is a huge change, which is being made in a headlong rush. There are big worries about children with special educational needs or a disability, about military families, about the talented musicians and dancers of tomorrow, about small religious faiths and about the widest impact of all—that on state schools, because this means disruption, bigger classes, budget overstretch, and ultimately, parents being less likely to get their preferred choice of school. Even those who do not necessarily object to this in principle are saying it cannot be pushed through this fast, from the Chartered Institute of Taxation to the NASUWT.

It is a long-standing principle that you do not put tax on learning—a principle all but universally observed around the world. On the Conservative Benches we believe in that principle and we believe in the sanctity of parental choice. The vast majority of children, of course, go to state-funded schools, and we defend the right of parents to choose those schools and defend the diversity of those schools. A small number of parents choose home schooling; we defend that right too. And yes, some choose the independent sector.

Parents are the first educators of their children. The state sets an expectation of a suitable education for all children, and beyond that, parents should make the choice of what is best for their child. Parents might decide to opt out of state education for any one, or many, of several reasons—quite often simply because they have found the school that they believe is right for their child, and where their child is most happy.

[Jim Shannon (Strangford) (DUP)]

rose—

[Graham Stuart (Beverley and Holderness) (Con)]

rose—

--- Later in debate ---

[Damian Hinds]

My right hon. Friend is right to identify that many parents make great personal financial sacrifices to do what they believe is best for their children. Some parents whose children go to independent school are rich, and some are definitely not. I include in that latter bracket most of the parents sending their children, for example, to small religious schools in Hackney, Salford or Birmingham. Very many more are in the middle, including many professionals working in our public services.

[Jim Shannon]

The shadow Minister has rightly underlined the issue for those who send their children to faith schools or independent schools. Many constituents in Strangford have told me that they have saved and persevered, have not been on holidays, have not bought a second car, or have even continued to use their old car longer than they should, so that those moneys can go into their children’s education. Does he, like me, find it impossible to understand how it can be that it is the Labour party—the party of conscience, I would say—that has let us down on this issue and is going to penalise people who are hard-pressed to find education for their children?

[Damian Hinds]

The hon. Gentleman is right about the financial sacrifices some make. Let us be clear: it is possible to tax wealthier people or people with a higher income more, but the Government should be honest about it. The way to do so is through the income tax system, not through a choice that people make to have their child in an independent school. The hon. Gentleman did not mention this, but I might add that because the situation in Northern Ireland is different from that in England—by the way, the situation in Scotland is different, too—the Government need to think carefully about how the policy is applied throughout the whole United Kingdom, because VAT is a reserved matter, and about what it means for the hon. Gentleman’s constituents and others across these islands.

Oral Answers to Questions

Debate between Damian Hinds and Jim Shannon

Monday 29th April 2024 Commons Chamber

[Damian Hinds]

I appreciate what my hon. Friend says. History is a very important subject for many reasons. Learning about Israel and the wider region can be covered in history, for example in the “challenges for Britain, Europe and the wider world since 1901” theme. In general, we do not specify individual historical events in our national curriculum, with the sole exception of the holocaust, as he will know.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his positive and helpful response. What discussions has he had with counterparts in the devolved nations, in particular in Northern Ireland, where the two different groups—the nationalists and the Unionists; the Protestants and the Catholics—have been able to develop an understanding on education? They are able to look at each other without the suspicion that may have been there 20 or 30 years ago. Has the Minister had a chance to talk to the devolved nations to ascertain whether introducing compulsory education on the importance of combatting antisemitism is possible, taking the Northern Ireland example as one that works?

[Damian Hinds]

I always value opportunities to speak to colleagues and counterparts in the devolved Administrations. I believe that we will have another opportunity relatively soon to speak to the hon. Gentleman’s colleagues in Northern Ireland, and I have no doubt that that will be one thing that we will wish to talk about.

Register of Children not in School

Debate between Damian Hinds and Jim Shannon

Tuesday 20th February 2024 Westminster Hall

[The Minister for Schools (Damian Hinds)]

It is a great pleasure to serve with you in the Chair, Sir Christopher— I think for the first time. I congratulate my hon. Friend the Member for Meon Valley (Mrs Drummond), my constituency neighbour, on securing this debate on a topic that is a Government priority. I thank her for all her work in this policy area and her continued interest in introducing legislation for registers of children not in school. As she knows, we share that ambition. Both I and the Secretary of State for Education look forward to working with my hon. Friend as she takes her Children Not in School (Registers, Support and Orders) Bill through Parliament. It is vital that we ensure that the rights of all children are upheld. In the case of children not in school, that is the fundamental right to a suitable education, which is in children’s best interests.

In the majority of cases, children not in school will likely be those who are home educated. It is important that we recognise that, in most cases, parents will be doing home education well and for all the right reasons. Home education is not easy and parents will often put in extensive time and resource to provide suitable education for their children, sometimes in challenging circumstances. I pay tribute again to all those parents who have made the difficult decision to home educate when the education of their child is at the centre of that decision. Home education is a parental right that the Government will continue to defend. Any form of registration of children not in school will not infringe that right. Registration will, however, better ensure that we defend children’s rights to a suitable education.

Over recent years, as various colleagues have alluded to, the number of home educating families has continued to increase. In summer 2023, the Department for Education estimated that 97,600 children were home educated in England—about 1% of all school-age children. Although such an increase is not necessarily an issue, we know from local authorities and the data on children missing education that not all children are in receipt of a suitable education when they are at home. I cannot stress enough that registration is not intended to impact parents who are home educating with good intentions and, as I said, often making numerous sacrifices to do it well. By knowing where the families are, we can better ensure that we target support to those who need it most and are not receiving a suitable education.

Without a statutory register of children not in school and the accompanying duties on parents and certain out-of-school education providers to supply information to it, we cannot know for certain the scale of how many children are missing education. We cannot know for sure how many children are in home education and what subset are in home education but not receiving a suitable education, or how many are receiving no education at all. Although we have taken steps, through our termly data collection from local authorities on electively home educated children and children missing education, to increase our understanding of that cohort and improve the accuracy of local authority data, that alone will not suffice. That is why the Department continues to remain committed to legislating for statutory registers.

The Department for Education’s commitment to establishing a local authority-administered registration system was first set out in our “Children not in school” consultation response, published in February 2022. That policy intention led to the children not in school measures that were part of the 2022 Schools Bill. The measures proposed the creation of duties on local authorities to maintain registers of eligible children and a duty on local authorities to provide support to home educating families when that was requested.

The measures did not include any proposals to extend local authorities’ powers to monitor the quality of the education being received, and that continues to be the case. The Government do not see the need for greater monitoring powers. We believe that local authorities’ existing powers, when they are used in the way set out in our elective home education guidance—which is currently being reviewed—are already sufficient to enable a local authority to determine whether the education is suitable.

I do not yet know the full detail of the private Member’s Bill promoted by my hon. Friend the Member for Meon Valley. As colleagues know, the Government cannot support a private Member’s Bill prior to Second Reading, but I can say that the Government remain committed to introducing statutory local authority registers as well as a duty for local authorities to provide support to home educating families. Clearly, that which my hon. Friend seeks to do and what the Government wish to do coincide.

There are three main benefits to measures for children not in school. First, local authorities having registers of children not in school would help local authorities to better identify eligible children and help those missing education. New duties on parents to proactively provide to the local authority their name, their child’s name, their address and the means of education—such as where and who provides their child’s education—as well as new duties on certain providers of out-of-school education to reactively provide information on eligible children, such as their name and address, will help to identify more eligible children than is currently possible. The new information in the registers would help authorities to undertake their existing responsibilities for the purpose of ensuring that education is suitable and that children are safe.

Secondly, as I have already mentioned, that will ensure that both local authorities and the Department for Education have the necessary data to understand the scale and needs of this cohort of children, including the reasons why parents may choose to home educate. I will come back to that in a moment, in response to comments made by a number of colleagues.

Thirdly, those children and parents who want it will be able to benefit from additional support from the local authority. Our measures contained a duty on local authorities to provide or secure such support where requested to registered home-educating families to promote the education of a child. We felt that the support element of the measures was a vital component in encouraging positive engagement between local authorities and home educators and helping to ensure good-quality education. The support could have included advice about education; information about sources of assistance; provision of facilities, services or assistance; or access to non-educational services or benefits, such as to support home-educating parents to access exams or online teaching resources, for example through the Oak National Academy.

[Jim Shannon]

I am grateful to the Minister for that response. I suggested to him some of the things that my constituents did in Strangford. Although they were individually home schooling, they came together collectively for visits—every child loves a visit—to the council, the museum, the leisure centre or wherever, and that was something that was encouraged. Is there any possibility that the Minister, who is putting forward very positive thoughts, could consider that suggestion?

Oral Answers to Questions

Debate between Damian Hinds and Jim Shannon

Tuesday 12th September 2023 Commons Chamber

[Damian Hinds]

As my hon. Friend mentions, under the Nationality and Borders Act, we expanded the FNO early removal scheme window from nine months to 12 months, allowing for earlier removal. We are working closely with the Home Office on that. In May, we also agreed a landmark new deal with Albania, and we are working to negotiate new prisoner transfer agreements with EU member states and other countries.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for that response. It has been reported that the proportion of Northern Ireland’s total jail population who hail from outside the United Kingdom and Ireland is disproportionately high—the figures indicate that it is between 7% and 9% per year. Has the Minister had an opportunity to assess that with the Department of Justice back home?

[Damian Hinds]

As the hon. Gentleman knows, given the way we are organised, we do not cover the Northern Ireland Prison Service. However, it is very important that we stay in close touch and, although I have not had that specific conversation recently with colleagues in Northern Ireland, there will no doubt be opportunities in the future.

Oral Answers to Questions

Debate between Damian Hinds and Jim Shannon

Tuesday 28th March 2023 Commons Chamber

[Damian Hinds]

My hon. Friend is quite right; that is a crucial part of the jigsaw, together with maintaining family ties. In a major new initiative, we are creating up to 18 new drug recovery wings so that prisoners can focus on achieving abstinence not only from illicit drugs, but from prescribed substitutes. We are also increasing the number of incentivised substance-free living units and have been investing strongly in prison security to stop drugs getting in in the first place.

[Jim Shannon (Strangford) (DUP)]

The Shannon Trust—no connection to me, by the way—has concluded that 50% of people in prison cannot read or struggle to do so. What steps are being taken to ensure that basic literacy and reading skills are taught at all prisons for all ages across the United Kingdom?

[Damian Hinds]

We all trust Shannon; the hon. Gentleman is quite right to draw attention to the good work of his namesake trust, which for many years has operated a very good peer model in our prisons, where prisoners help other prisoners. We also work with the trust directly on other programmes, and just last week we announced a new funding award to the Shannon Trust and one other charity to help in that important basic literacy work that he mentions.

Oral Answers to Questions

Debate between Damian Hinds and Jim Shannon

Tuesday 21st February 2023 Commons Chamber

[Damian Hinds]

I am happy to confirm to my hon. Friend, as I said a moment ago, that safety must come first. We want to support everybody who is in our care and who we are keeping inside for the protection of the public. We need to make sure that safety in prisons is as strong as it can be, and I can confirm to my hon. Friend that following the policy updates, transgender women with male genitalia will not be held in the general women’s estate except in truly exceptional circumstances. Exemptions will require sign-off by a Minister to ensure they can be considered only in the most truly exceptional cases.

[Jim Shannon (Strangford) (DUP)]

For those who identify as transgender, it is important to recognise, as the Minister has, the safety issues. Across this great United Kingdom of Great Britain and Northern Ireland, it is important that we have a policy and a strategy that is the same everywhere. Has the Minister had any opportunity to talk to the police and the Department of Justice in Northern Ireland to ensure that we in Northern Ireland and the Northern Ireland Assembly have a policy that follows the route and focus here?

[Damian Hinds]

The short answer is that I have not had a chance to have that conversation. It is true that there are differences in different parts of the United Kingdom, and those have been played out in the media substantially over the past couple of weeks. I believe our policy here in England and Wales is the right one. It is respectful to everybody, but makes sure we are making safety paramount.

Prison Capacity

Debate between Damian Hinds and Jim Shannon

Wednesday 30th November 2022 Commons Chamber

[Damian Hinds]

Foreign national offenders are a significant minority of the prison population and it is important that we have a good process to remove them. As my hon. Friend will know, in the Police, Crime, Sentencing and Courts Act 2022, we changed the law to enable removal at the nine-month point rather than at 12 months. Of course, we have also signed the agreement with Albania, and we are keen to sign similar agreements with other countries in the EU and the wider world.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers. In Northern Ireland, the prison population has increased by 3.2% this year. Justice is devolved in Northern Ireland, as he knows, but nationally prison staff increasingly need help to cope with the prison population. What discussions has he had with his counterpart at the Northern Ireland Assembly in relation to prison capacity, to share ideas and thoughts on how to move forward and on steps to reduce the number of those in the prison population in the next year?

[Damian Hinds]

The hon. Gentleman is right that this is a devolved policy matter, but I am open—indeed, keen—to speaking to colleagues in the devolved Administrations and other jurisdictions. I always say that there is no practical limit to how much we can all learn from each other.

Universal Credit: Lowestoft

Debate between Damian Hinds and Jim Shannon

Tuesday 27th June 2017 Commons Chamber

[Damian Hinds]

No, it does not mean that. Obviously, people come into the benefits system and may be receiving benefits for a period of time but then go into work that is sufficiently remunerative to mean that they do not fall within the universal credit system. As the hon. Lady will know, people’s circumstances change, and can do so often.

As I was saying, the digital take-up of universal credit is a great success story, with 99% of UC new claims made online, which will mean that in the long run the service is more expedient and more user-friendly. Overall, 82% of universal credit customers reported they were satisfied or very satisfied with the service, and figures show that it is working. Claimants are spending twice as much time looking for a job as under the old system and they are moving into work faster, with 113 people moving into work under universal credit for every 100 who were doing so under the pre-existing system.

One result of the roll-out of universal credit full service in my hon. Friend’s constituency—I grant that this may seem paradoxical—is that the claimant count has risen since the full service went live in May 2016. As he rightly acknowledged, that is because under universal credit the count is extended—it is broader—to cover a wider group of claimants than under the old jobseeker’s allowance benefit. This is part of universal credit’s design and ambition to encourage and support more people into work.

My hon. Friend has deep roots in the constituency and community he represents, and I am very aware that he works closely with the local authorities in his constituency to make sure the voice of East Anglia is always heard. I was very pleased to have the chance to visit Lowestoft jobcentre earlier this year—he mentioned that—accompanied by the leaders of the Waveney and Great Yarmouth councils. I am also aware that he has made subsequent visits to the jobcentre, which I hope he also found useful. That visit was a great opportunity for me to see how we are delivering universal credit in his constituency and to hear at first hand some of the concerns people have had.

I also want to join my hon. Friend in expressing condolences following the death of Colin Law, the leader of Waveney District Council, in May. Councillor Law was a long-standing public servant who made a big contribution to the community he represented, as was manifested in the example my hon. Friend gave of his commitment even into his ill health. He will be missed by those on all sides of the political divide.

Given the ambition and scale of change that universal credit introduces, there are bound to be issues that arise as the service is rolled out. In particular, there are clearly concerns over the challenges some claimants face when managing a monthly budget for the first time, but let me assure Members that the Department has already been making inroads on this issue and there are many good reasons to feel positive about the future.

I take the opportunity to highlight how universal credit helps people looking for work in my hon. Friend’s constituency. There is a high level of seasonal work in the Lowestoft area. Before the introduction of universal credit, many people could have been reluctant to take up short-term or irregular work because of the old 16-hour limit with some of the legacy benefits. Since the launch of universal credit, jobcentre staff have contacted the large local employers, leisure parks and holiday resorts, to help generate job opportunities for claimants. We have run popular job fairs, attended by more than 1,700 claimants, promoting these openings. I know that my hon. Friend has had a lot of personal involvement in running job fairs, and other employability and opportunity events.

Universal credit claimants can now take up work, which may initially be just at the weekend and in school holidays, that builds up to extra hours as the season progresses. Claimants have the flexibility to take on extra hours without worrying about having to stop and then restart multiple benefit claims. Under universal credit, employers in Lowestoft and Great Yarmouth are able to offer extra work at short notice to a workforce that can make the most of those opportunities without the additional administrative burden.

Lowestoft and Great Yarmouth jobcentres were among the first to roll out the universal credit service to all claimant types, which has given us invaluable insight into what works and what we can do better. From my visits and from the correspondence that I have had with my hon. Friend and with the local authorities in his constituency it became clear that we needed to be better at gathering information and improving the speed and accuracy of payments to claimants. It was also clear that we needed to do a better job of speaking with landlords in both the private and social sector about the changes that universal credit would bring.

I am pleased to report that this valuable feedback has helped us introduce real improvements to the way we do things: we have removed delays and data verification that were causing some of the payments to go out late; and we have introduced a “Housing Confident” scheme to ensure that universal credit work coaches talk to claimants about housing and that work coaches are alert to the support that claimants might need. It is about properly understanding the claimant’s needs, and this can extend to providing budgeting advice or, when needed, arranging for direct payments to landlords.

We have made improvements to the service that we offer private and social landlords. Thanks to feedback from landlords, we have made improvements to the way we set up direct payments of rent to landlords with an easier to use application form. That means that we are getting those payments out to landlords more quickly. We are also exploring how we can make it easier for landlords to find out the status of the application for a direct payment and we will be making an announcement about that soon.

Universal credit also brings big improvements for private landlords whose tenants get into arrears. Under the old system, landlords would need to apply for recovery of arrears via a third party deduction, often at a low repayment rate, which could mean a long wait before landlords got back their rent. In universal credit, it is easier and quicker to set up an arrears payment for landlords. In addition, under universal credit, repayment for private landlords can be at a higher rate—up to 20% where claimants can afford it. That means that claimants can get on top of their finances and landlords can get the money they are owed more quickly.

These actions are having results. Our internal figures show that far more claimants are getting the right money on time. We aim to make this information public in the near future. I know that my hon. Friend has acknowledged these improvements in performance.

[Jim Shannon]

In my previous intervention, I suggested that perhaps a dedicated helpline would be one way of addressing the issues. The hon. Member for Waveney (Peter Aldous) responded by saying that some more frontline staff would also be of help. Would the Minister consider both of those suggestions?

[Damian Hinds]

In response to the points raised by my hon. Friend about the roll-out of universal credit in Lowestoft, I said that I would come on to some of the questions around our customers and claimants—people with particular needs and complex needs. The essential point is that, in jobcentres, our staff see the full range of society and of course we must have the wherewithal to help those people as best we can. That does involve being responsive to different types of people and their different needs. I am confident that our staff do that in the correct way, but can we learn more? Of course we can.

I do appreciate the concern that exists around rent arrears. It is an issue that matters to many people. We have had a chance to debate that matter in a recent Adjournment debate in this House. As I said at that time, there are many complex and overlapping factors at play, and the role of universal credit is by no means the sole factor contributing to rent arrears. Our research shows that the majority of universal credit claimants are comfortable managing their own budget. Furthermore, we know that, after four months, the proportion of universal credit claimants who were in arrears at the start of their claim fell by a third.

Let me reassure the House that there are safeguards in place for claimants. We can advance up to half of a universal credit payment at the start of the claim. Our work coaches talk to claimants about their financial situation and can also refer claimants for support to help them manage their budget.

If claimants do not want to talk about their finances face to face, our new “Money Manager” website, developed in co-operation with the Money Advice Service, gives claimants practical support and advice. There are a number of alternative payment arrangements available, which include paying rent costs directly to landlords but also making more frequent payments to claimants and splitting universal credit payments in cases of domestic abuse. Our research shows that over time, claimants successfully reduce their arrears.

I want to turn to a couple of the other specifics mentioned by my hon. Friend the Member for Waveney. On emergency and temporary accommodation, we are aware that the transitory nature of universal credit temporary accommodation claims can cause problems to do with the timing of when people will be in temporary accommodation, the assessment period and when the payments are made. We also recognise that this has resulted in some difficulties for local authorities and tenants in emergency or short-term accommodation. Our consultation on supported accommodation, which closed on 13 February, asked whether devolving shared accommodation to local authorities might also work as an approach for temporary accommodation. We are considering the responses to that consultation and the joint Select Committee on Communities and Local Government and Select Committee on Work and Pensions report, and we will work with colleagues across Government and in the devolved Administrations to set out further details of our plans as soon as we can.

On the question of claimants with complex needs, we make sure that our work coaches have the flexibility to shape support for individuals in difficult and different circumstances. Work coaches can adjust work search requirements to allow claimants to prioritise solutions to their issues, such as homelessness or addiction. We are also working with our partners to target resources most effectively. Hon. Members will be aware of the range of third-party services and partnership arrangements in place in a large number of jobcentres. We have also appointed vulnerable people officers in jobcentres to deal with claimants who face significant challenges. These officers work closely with the universal credit service centre to identify and resolve issues quickly.

The DWP’s response to the Public Accounts Committee’s report in February 2017 made a commitment to write to the Committee in spring 2017 to set out the impact of the changes to the programme on operational costs, staff and claimants. As a result of the general election, we will now send our response once the Committee has been reinstated. We also plan to publish a range of management information on universal credit later this year.

I recognise, of course, that there are areas for improvement in our service, but with every release of new software and every office that goes live with the full digital service, enhancements are made that improve the experience of using the service for staff, for claimants, for landlords and for our delivery partners. My hon. Friend the Member for Waveney has seen for himself the drive, commitment and passion that so many of our staff, stakeholders and people across the programme have. They want to see this revolutionary welfare reform through, and I am confident that they will.

Question put and agreed to.