Public Sector Funding

Debate between Emma Reynolds and Yvonne Fovargue

Wednesday 23rd March 2011 Westminster Hall

[Yvonne Fovargue]

I thank the hon. Gentleman for his intervention. I completely agree.

Also at risk was the funding for face-to-face debt advice, which has been given a year’s reprieve, although there are still arguments about the management costs centrally. It is proposed that social welfare law should go out of the scope of legal aid funding at the very time when we are introducing a new welfare system. Many bureaux have funding from primary care trusts, which are also going. Advice agencies could disappear—97% of law centre funding is under threat. I make this plea to the Minister: will he please look across the board and bring all the Departments together when they consider the funding for advice services? Otherwise, the cuts to each Department will affect that sector particularly badly.

I also want to consider my local services in Makerfield borough. Makerfield and Wigan benefit from 24,900 volunteer hours a week, and 68,835 people benefit from the services provided. Those volunteers need the support of paid staff and, often, the support of the infrastructure organisations. We would not expect any employee to work without the support of management and without a decent regime of health and safety, supervision and career development, so why do we expect volunteers to do that? That is what the cuts mean—the volunteers will not be there without the support of those paid staff.

Central Government are looking at cutting the infrastructure organisations. One particular concern for my local council for voluntary service is the vinvolved funding. Over three years, the vinvolved project in Wigan has dealt with 1,071 youths, most of whom were classified as NEET—not in education, employment or training. There has been a significant reduction in repeat antisocial behaviour orders for that group and an increase in the number of people going into work. Cutting that programme will leave those youths with nowhere to go. They will be back on street corners in the neighbourhoods that have previously complained about them. It is so important to young people that they be brought into volunteering. My local branch of Age Concern has pointed out to me the value of bringing those young people into its organisation and the cross-generational work that that has engendered.

[Emma Reynolds]

Is it not sheer madness for the Government to cut vinspired when youth unemployment is at record levels?

[Yvonne Fovargue]

Absolutely. My local CVS managed the future jobs fund in my borough, and youth unemployment among 18 to 24-year-olds was reduced by 56% in 2010 as a result. It halved the number of jobseekers from 900 to 450 in that period. To cut that at this time, when young people are coming out of education and training without a job to look forward to, is sheer folly.

I do not believe that the big society is new—in my borough or in any other borough—but I do believe that, due to the cuts, it is becoming the shrinking society, which is dangerous.

Legal aid

Debate between Emma Reynolds and Yvonne Fovargue

Tuesday 14th December 2010 Westminster Hall

[Emma Reynolds]

I could not agree more with my hon. Friend. That goes to the heart of the argument. These cuts will affect the most vulnerable in our society; yet another example of Government cuts hitting the poorest hardest.

I want to refer to taking debt out of the legal aid budget. The Government have recognised in the Green Paper that many of the people who are mired in debt are ill or disabled, and that debt often afflicts the most vulnerable in society. Yet they are still proceeding to introduce proposals and measures that will deny those people access to legal advice and representation.

I will briefly mention something I raised in the House last week. I asked the Leader of the House what was going to happen to the financial inclusion fund, which is a great source of help for people with debt problems. In Wolverhampton, hundreds of people are helped every year by this fund. I was given wise counsel by the Leader of the House that I should raise the issue this morning. He was sure that the Minister would give me an answer. I know that the matter is being administered by the Department for Business, Innovation and Skills and the Treasury, but I urge the Minister to give clarity on whether the fund is to go ahead beyond March. Again, the uncertainty that my hon. Friends have raised applies and it is not helpful.

I do not wish to be too long because I know that other colleagues want to get in. I want to add that, apart from failing the test of social justice, these proposals also fail on a cost-benefit analysis.

My hon. Friend the Member for Westminster North eloquently explained that the cuts will be a false economy in many areas. The National Association of Citizens Advice Bureaux published a business case for legal aid this year. It said that for every pound of legal aid spent on housing advice, the state saves £2.34, and for every pound spent on debt advice, the state saves £2.98. It also stated that on welfare benefit advice, the state saves £8.80, and that on employment advice, it could save £7.13.

Have the Government looked properly at the savings that early intervention makes possible? Have they done a proper cost-benefit analysis of the costs of their proposals for public services down the line? I fear that this is short-sighted, and that the Government are seeking short-term savings that will have significant costs later. Other Members have made the same point.

The other thing that worries me is that the Government say in the Green Paper that other alternatives will be available. The document then outlines what those alternatives might be. I know that my hon. Friend the Member for Westminster North has already mentioned this, but it is telling: NACAB says that the overwhelming majority of its client group will not be able to access the alternatives identified in the Green Paper.

[Yvonne Fovargue (Makerfield) (Lab)]

Does my hon. Friend agree that although one alternative, the expansion of telephone advice, is welcome—I agree that not enough telephone information available—it is not suitable for the most vulnerable, particularly those in debt, as many who use mobile phones cut themselves off in order to save money?

[Emma Reynolds]

I could not agree more. There is no substitute for face-to-face counselling and advice. As my hon. Friend rightly states, the cuts mean that the only recourse for vulnerable people will be some sort of telephone system, but they may not be comfortable with it and might not be able to afford it.

The proposals in the Green Paper will make the poor poorer and the most vulnerable more vulnerable. The cuts should fall elsewhere. There are other ways to reform the legal aid budget, and the Government should think again.