Budget: Pre-announcement of Provisions

Jack Dromey Excerpts

Tuesday 26th October 2021 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

Eighteen years ago, I was deputy general secretary of the Transport and General Workers Union. I was a founder member of the drive for the living wage, when we organised 3,000 cleaners in Canary Wharf and the City of London. I agree with the Resolution Foundation that the proposed increase would “not remotely compensate” those who will lose £1,000 as a result of the cut to universal credit. With workers facing a cost of living crisis, rising energy costs, rising inflation, rising fuel costs and rising food prices, is it not the case that workers’ living standards will continue to be squeezed as the Government give with one hand and take away with another?

[Mr Clarke]

No, I do not accept the premise of the hon. Gentleman’s point. We remain committed to our ambitious target of the national living wage reaching two thirds of median earnings by the end of the Parliament and expanding it to include workers over the age of 21. We have done an awful lot to help with living standards—doubling the personal tax threshold, doubling free childcare, expanding free school meals for all five to seven-year-olds, and introducing the new household support fund and the energy price cap—and further measures will be announced by my right hon. Friend the Chancellor tomorrow.

Working People’s Finances: Government Policy

Jack Dromey Excerpts

Tuesday 21st September 2021 Commons Chamber

[Bridget Phillipson]

My hon. Friend is absolutely right. It is frankly indefensible. We knew that poverty was already beginning to rise before the pandemic even hit, and we know the impact that the cut to universal credit will have on family and household budgets, and on child poverty.

It is bad enough to be taking money out of people’s pockets as the recovery falters, but as price after price goes up for working people, this is unforgivable—because prices are up, and they are up sharply. Madam Deputy Speaker,

“August saw the largest rise in annual inflation month on month since the series was introduced almost a quarter of a century ago.”

Those are not my words, but the words of the Office for National Statistics. Alongside the most recent GDP figures, that is a powerful signal of how fragile our recovery remains.

Rising food prices have been driving upward pressure on the inflation rate, but this week, of course, it is energy prices that are the focus of our attention. That rise is taking money out of household budgets directly, but it will also be taking money out indirectly. Higher prices for energy mean higher prices for industry, and that means higher prices for goods. Already factories are being shuttered by higher prices and already that is driving further problems, such as knocking out the carbon dioxide supplies that keep meat fresh along our supply chains.

Ministers are always keen to blame other people, the weather or bad luck, and to claim that all of Europe has the same problems. That is not good enough and the public know it. To assert that other Governments have faults is not to excuse our own. What we are seeing and what we have seen over the last decade is a chronic failure to take responsibility, and it is hard-working families and struggling businesses who will pay the price.

[Jack Dromey (Birmingham, Erdington) (Lab)]

On Saturday, I met a care worker on Erdington high street who was close to tears. “I’ve got two kids, Jack”, she said, “I’m on universal credit. I can’t work any longer hours. Now I’m facing a £1,000 a year cut and a tax increase. Why? I worked so hard throughout the dreadful covid crisis to care for the desperate, sometimes the dying. Why are they doing this? I’ve worked so hard over so many years. I feel that they just do not begin to understand people like me and the pain that I will endure at the next stages.” Is it not the simple reality that the Government seem to be utterly oblivious to the consequences of their actions for the poorest in our country?

[Bridget Phillipson]

Like my hon. Friend, I have heard from care workers and many others in my constituency about the anger that they feel. The average care worker is set to lose more than £1,000 in tax rises and universal credit cuts. Of course, the Government’s much trumpeted so-called plan for social care will do absolutely nothing to help the very care workers my hon. Friend describes.

Let us remember the exact timing of the soaring energy prices: exactly as the cut in universal credit bites. It is about choices. The Government choose not to protect working people. We would choose differently.

--- Later in debate ---

[Jack Dromey]

rose—

[Mr Clarke]

I give way to the hon. Member for Stockton North (Alex Cunningham).

[Mr Clarke]

I do so quite readily when I look at the extraordinary potential of our local economy. We have all the new jobs coming in at the Teesworks site, the former Redcar steelworks site. We have the hope and potential of green industry, which the hon. Member champions, as I do, with all the jobs in carbon capture, utilisation and storage as well as hydrogen. There is the new GE Renewable Energy factory, which will employ 2,500 people. Its construction starts incredibly soon, and it will be fully operational by 2023. Those are the reasons for hope and optimism. Of course, I will never apologise for talking up Teesside, just as we should never apologise for talking up the UK economy. We have done an extraordinary thing in this country: we have got through the pandemic—we have weathered the storm—and now we can move on to the recovery.

[Jack Dromey]

Three out of the 10 most deprived constituencies in England are in Birmingham and 42% of children in Birmingham are growing up in poverty, yet the Government are hitting Birmingham hard with the £1,000 a year cut to universal credit and the national insurance rise on top of the cost of living going up and soaring energy costs, with supermarket costs up, childcare costs up and rents up. Can I ask the right hon. Member this question: have the Government carried out any impact assessment of the consequences of their actions on Brummies, not least because the simple bleak reality is that tens of thousands face a tough Christmas and a bleak new year?

[Mr Clarke]

I thank the hon. Gentleman for his question, which basically re-summarised the speech we heard from the shadow Minister. I can confirm that HMT’s distributional analysis has shown that, as a proportion of income, our interventions have supported the poorest working households the most. Of course I recognise the challenges—I represent a constituency that has many challenges—but the number of children in absolute poverty, to which he alluded a moment ago, is lower than it was when Labour left office in 2009-10, both before and after housing costs are considered. These are incredibly important achievements, and we should never lose sight of them. In short, we took decisive action, and that action has worked.

It is clear that the world of September 2021 is very different from that of March 2020. The success of our vaccine roll-out means that most restrictions have now been lifted and we are seeing the benefits of our approach. These new circumstances therefore require a new response. We of course believe that the best anti-poverty strategy is a jobs strategy, and the best way to help vulnerable people is to provide them with the opportunities that they need for well-paid work.

Government Response to Covid-19: Public Inquiry

Jack Dromey Excerpts

Thursday 22nd July 2021 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

I would like to start by reading out a testament from Jane Roche from Castle Vale in my constituency. She lost her father and sister to coronavirus last year. She says:

“Losing my amazing Dad, Vincent Pettitt, and my amazing Sister Jocelyn Pettitt just 5 days apart has been the hardest thing to deal with in my life so far, and I am still grieving and will always grieve for them as they didn’t die in a natural dignified way with their family around them, telling them how much we loved them. We were such a close family.

My Dad was such a lovely man, no fool and strong in every way, I always felt loved and protected by him, he was so funny and had a very dry sense of humour, always making people laugh, his will to live was amazing, he fought other illnesses but always fought on.

My Sister was beautiful inside and out, very kind and loving, a wonderful Mother and Grandmother and her 3rd Grandchild was due to be born a month after she died so she never got to meet him and she was really looking forward to it. I feel robbed of Dad and my Sister as they were snatched away by Covid-19.”

She goes on:

“Only someone who has lost their loved one to Covid would understand how I feel, and unfortunately there are thousands of us. I feel heartbroken and I always will, I feel anxious most days and cry most days, and I miss them so very much…I need the Public Inquiry to happen this year, dragging it out until next year only makes me angry and the grief is made worse by thinking that nobody cares about all the people that have died from Covid…This has changed my life forever, I always feel like something bad is going to happen as I would never have expected this double tragedy last April. I will never get over this.”

The voice of the relatives; the voice of loss; the voice of pain—a voice that should be listened to.

I thank all hon. and right hon. Members who have contributed to this debate from across the House of Commons and those who participated in the work of the Committee, leading to the recommendations before us. I particularly thank the hon. Member for Hazel Grove (Mr Wragg), who chairs the Committee; the hon. Member for Thurrock (Jackie Doyle-Price), who gave a comprehensive report today; and Members, including the hon. Member for Harwich and North Essex (Sir Bernard Jenkin), who have made contributions on the importance of learning lessons now if we are to avoid mistakes in the future.

The Committee’s report calls for a public inquiry into the Government’s response to covid-19 to begin immediately. We owe it to the families that this happens. The covid-19 public inquiry should be a landmark event in our nation’s history.

[Sir Bernard Jenkin]

I thoroughly endorse the hon. Gentleman’s remarks, which underline the importance of giving settlement to the aggrieved and bereaved. That is an important role for a public inquiry. Does he also agree that the vast task that the public inquiry will represent means that it needs to be segmented, and that there are urgent bits that need to be done now and other bits that could be done later? Will he join me, and perhaps work with some Select Committees, to come up with some terms of reference for which parts of the inquiry should start now and would not disrupt what the Government need to carry on doing at this very pressured time, but would enable us to start the learning process on the urgent matters?

[Jack Dromey]

The hon. Member makes a good point that a sensible debate can and should take place on how the inquiry can commence immediately and then be conducted in stages. Surely the first priority is learning lessons from what has gone wrong in order to avoid that in the future and to avoid us seeing yet more people die needlessly. That approach is sensible. Exactly how the public inquiry is conducted should form part of the debate.

Over the past year, the country has experienced tragedy and human suffering on a scale not seen since the second world war. No one could have imagined that 130,000 lives would be lost to this terrible virus, which has turned whole lives upside down as family and friends mourn the loss of loved ones. That is why this debate matters and why a public inquiry is so important. All Members across the House will have heard heartbreaking stories from their constituents over the past 18 months, like from Jane, who quite simply says, “I want to know why my dad and sister died. What were the mistakes that were made?”. She always asks, “How can we ensure that no one else in future suffers the loss that I have suffered?”. It is therefore vital that the covid-19 public inquiry has the confidence of the bereaved families, such as Jane.

The Committee’s report is a vital contribution to ensuring that the Government get the process right. In the time since the report was published, the Government have announced that a public inquiry will take place. However, that should not be a reason to be relaxed, because I am afraid that the Government’s approach to the inquiry thus far falls far short of what the Committee recommends should be expected. As a consequence, the Government risk the trust and confidence of the bereaved families if they do not place them at the heart of the process going forward, about which I will say more later.

I wish to focus on three key areas highlighted by the report in which, frankly, the Government’s approach is lacking: first, the timetable for the inquiry to begin; secondly, the selection of the chair and the terms of reference; and thirdly, the implementation of the inquiry’s recommendations. On the first point, the Government have set a timetable for the inquiry to commence in the spring of next year. That is simply too far away. Everyone understands the challenges that the country had to face during the first wave, but the Government’s failure to learn the lessons of the first wave has already left us with an even more tragic second wave during last winter, with too many lost lives and our stretched economy under even more strain. Then, this spring, we have had the debacle of the borders policy, with the delta variant sweeping through the country and a third wave developing and cases now rocketing.

It is therefore critical that we learn the lessons that need to be learned now. The Government cannot kick the can down the road to next spring. I stress again that we need to go forward to the next stages. We know that the Government have conducted internal lessons learned reviews. What are these reviews? Why will they not publish them? What is there to hide? The Committee recommends that such in-house assessments by Government Departments should be handed to the relevant Select Committees and the summaries also made public, and that has got to be right. Surely, on a matter so important to the future preparedness of the nation to rise to the challenge of coronavirus, the Government should publish these reviews now.

I now turn to the selection of the chair and the terms of reference of the inquiry. Paragraph 24 of the Committee’s report is clear that the setting up of the inquiry’s secretariat and administrative functions must begin “immediately” as

“delaying the set-up will inevitably delay the inquiry’s ability to start work in earnest”.

The Committee is absolutely right. I completely agree, and we have been clear, that the work must commence now and that it must be transparent and in consultation with the bereaved families. Just how long do the Government expect the families to wait for this process to begin? Other family members have said to me, “Jack, justice delayed is justice denied. We, the bereaved families, deserve better than this.”

I understand why the Government do not wish to redirect officials and frontline staff on a wholesale basis from the work of combating the pandemic, but surely the consultation with the bereaved families and other stakeholders on the selection of the inquiry chair, its secretariat and terms of reference can and should begin now. The Committee highlights that consultation with the bereaved families could make a “significant contribution” to the inquiry. I absolutely agree. The House will therefore want to hear from the Minister how much progress has been made on consulting the bereaved families on these matters.

Yesterday, dozens of members of the Covid-19 Bereaved Families for Justice campaign came to London. It was heartbreaking to walk down row upon row of photographs of loved ones who had died. They wanted to bring home the impact on them, the relatives and the bereaved, but they also wanted to know, in telling their often heartbreaking stories, why no one was talking to them. One mother whose grandmother had died said, “Why is it that they are not talking to us?” She wanted to know why the Government had not contacted relatives’ organisations, particularly the Covid-19 Bereaved Families for Justice campaign, to start to engage in a dialogue going forward at the next stages. It is inexplicable and absolutely unacceptable.

I share the concern of the relatives over the foot-dragging by Ministers who have avoided repeated requests to meet the bereaved families and hear their concerns. I can give an example that I have been engaged in personally. Before resigning, the former Health Secretary was good enough to agree at the Dispatch Box last December to meet families from Birmingham, yet not once did he or his office contact them or me to make the arrangements, despite numerous phone calls and emails from us. Not once. He had lifted the expectations of dozens of relatives that they would at last be involved in dialogue and consultation, but the door was shut in their face. I hope the Minister can now give a clear assurance that the bereaved families will be consulted on the chair and the terms of reference.

Finally, there is the question of implementing the inquiry’s recommendations. The hon. Member for Thurrock, in a powerful contribution, mentioned Bishop Jones, the Hillsborough inquiry and the mistakes that were made before fully exposing the truth of what happened. That point was well made. We cannot let this be a public inquiry whose recommendations are quietly shelved or swept under the carpet. The national trauma that the country has endured over the past year demands more. Despite the crisis last year, this country has achieved great things, but a decade of austerity weakened the foundations of our country and undermined our national defences against the pandemic.

We cannot simply go back to business as usual when the pandemic subsides. Lessons must be learned. The Government should therefore make a clear commitment both to set up the inquiry and to engage with it. It is only by beginning the inquiry that we can learn those serious lessons to avoid future tragedies. Without that, we cannot build a better future for our country, built on the strength and resilience we tapped into to get through the hardest of times. Only then can we be ready for whatever challenges come next.

In closing, I refer once again to those who should be at the heart of the covid-19 public inquiry: those who died and their families. On both sides of the House, right hon. and hon. Members have been meeting bereaved families over the past year. Those meetings have been some of the most difficult and emotional I have ever been involved in. The families simply want to know why their loved ones died, when many of them should not have. They want the right lessons to be learned so that no one else has to suffer the loss they have suffered. That is a noble aim, and it is one that the Government must rise to in setting up the public inquiry. We owe nothing less to the bereaved families.

[Madam Deputy Speaker (Judith Cummins)]

I call Penny Mordaunt.

--- Later in debate ---

[Penny Mordaunt]

I agree with the thrust of what my hon. Friend says. Leaving the inquiry to one side for the moment, the call for evidence and, indeed, all the work that we have done improving not just our risk register but our risk assessment tools, because we recognise that we need to reform the methodology that sits behind it, are with external partners. For example, on the risk assessment, we are using various external stakeholders—with engineering skills, for example—to kick the tyres on our methodology, and it will be much more open and consultative than any previous process.

I will move on to how the inquiry could be established. Many Members have commented on having a panel. Clearly, some inquiries have taken that model. That is a very good point, and it is one that I know my colleagues are listening to. We have not rested on those findings; we have established many things to improve our response. I will go into this in slightly more detail, as many Members have raised these points. We have established a joint organisational learning system, jointly managed by the emergency services interoperability principles team and the civil contingencies secretariat. We established the UK Health Security Agency in April this year. We have a new situations centre. We have the Boardman reports, the first of which set out 28 recommendations that the Department is committed to implementing in full. The second report, which is a wider review, has identified a further 28 recommendations for improvements to procurement in Government. We are also steadfast in our commitment to intensify international co-operation. We want to reflect on the central role that the World Health Organisation has played over the course of the pandemic in achieving resilient healthcare systems.

We are seeking to implement improvements to systems and processes so that we are better prepared for any future crisis, whether it is a health issue or any other. Those improvements need to be embedded into the development of new capabilities such as the situations centre or the launch of the catastrophic emergency planning programme. With regard to those on the frontline, particularly local resilience forums, a huge amount of learning has gone on. We are currently funding a pilot to build capacity in local resilience forums. They are on the frontline. They should be in the driving seat for local decisions, and we want to build their capacity in that respect.

I very much welcome the Committee’s conclusions, and also the views of other Members of the House who have said that the inquiry should be forward-looking and primarily focused on improving our policy. I know that many are in agreement on that.

With regard to the chair of the inquiry, the Committee recommended, as we have heard, that the Government give proper consideration to a non-judicial chair. There are many ways that that could be set up. There could be a panel to sit alongside the chair. What is critical is that there is a genuine breadth of experience. While not wanting to slow the inquiry down, we really do need it to be led and supported by people who have that expertise.

The Government are extremely grateful to the Committee and this House for their thoughtful considerations on these issues. I hope that some of what I have said may provide reassurance to all those who have been affected by these terrible events. Retaining their confidence, and the confidence of all who have been involved in this crisis, is vital if we are going to get a good result in this inquiry. I want to assure Members that we will also be working with the devolved Administrations in this regard.

[Jack Dromey]

I welcome the Minister’s comments about the importance of engagement with the families. Will she agree to meet the Covid-19 Bereaved Families for Justice campaign?

[Penny Mordaunt]

I would be happy to meet anyone who has been affected. I am not the sponsoring Minister for this inquiry. However, I have always found in my engagements with victims in inquiries where I am the sponsoring Minister that they are incredibly helpful in making sure that we are doing the right thing. I may not be the Minister whom it would be most beneficial for that campaign to meet, but the hon. Gentleman certainly has my assurances and my commitment to ensure that the inquiry is the best it can be.

Covid-19: Economic Package

Jack Dromey Excerpts

Tuesday 12th May 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right. I know that he has put a lot of thought into this particular issue, and I look forward to hearing his ideas on it. As we emerge from this situation, we need to be cognisant of having the right support available for those who are most affected by this issue, especially those who are young and entering the labour force for the first time who will face this challenge, but also younger people who work in the disproportionately affected sectors of retail and hospitality; and that support might include skills, retraining and a dynamic labour market. This is about the economic impact on us all, and especially on those individuals; not having a close connection with the labour market at that early stage in their life is very damaging for their long-term prospects. I look forward to working with my hon. Friend to ensure that that does not happen.

[Jack Dromey (Birmingham, Erdington) (Lab) [V]]

If 800,000 businesses have benefited from the welcome job retention scheme, the 800,000-strong world-class automotive industry will be key to recovery, including Jaguar Land Rover, whose Jaguar factory lies at the heart of my constituency of Erdington. Does the Chancellor recognise that the continuation of the job retention scheme for as long as is necessary, together with welcome measures to help companies that are deeply in debt and battling with liquidity, will be crucial for the future, providing the necessary certainty upon which businesses, workers and trade unions can plan to rebuild?

[Rishi Sunak]

I think I find myself in agreement with the hon. Member. He is fortunate to have such a fantastic company locally to him. I know that that company and its workers will be pleased that the Government, and their representative, are advocating on their behalf. We have extended some of our loan schemes for larger companies—not Jaguar Land Rover specifically—and many companies in the automotive supply chain, for example, will now be able to benefit from our larger CBILS programme, which went live last week and is already lending billions of pounds. The hon. Gentleman is right; these various schemes are important and the industry that he mentions is critical to the UK. I look forward to ensuring that it can have as strong and swift a recovery as possible.

Economy and Jobs

Jack Dromey Excerpts

Monday 20th January 2020 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

I congratulate my hon. Friend the Member for Cynon Valley (Beth Winter) and the hon. Member for Arundel and South Downs (Andrew Griffith) on giving their maiden speeches. They come from two different traditions and two very different constituencies, but Cynon Valley and Arundel and South Downs both have strong voices in this House.

Labour was accused by the Chancellor earlier of being out of touch, so I hope he forgives my saying that I represented workers in the world of work for 35 years. What I learned from that is that key to the success of any company or country is its workforce and how they are treated. I used to argue that there are two simple truths: that the difference between the average and the world-class lies in the extent to which we untap the endless potential and creativity of employees, and that how workers are treated is key to the quality of the service they provide or the product they produce. I worked with many world-class companies in world-class sectors, such as Jaguar Land Rover, Airbus, Siemens, British Aerospace, Rosyth and Devonport dockyards—all good employers that are rightly praised by their workforces.

However, there is another world of work on which we must also focus in this debate: the growing gig economy and the growth of work insecurity. Some 3.7 million people now work in insecure jobs, and 8 million work in relative poverty. Even in companies that purport to be good employers, the sad reality is different, and I want to focus on Amazon, which employs 27,000 people here in Britain. I have worked with the GMB both to stand up for the workforce and to challenge some pretty shameful practices.

I remember one particular woman—a team leader—who was asked to attend a disciplinary hearing. She was 38 weeks pregnant. The charges were for gross misconduct, and her crime that caused downtime during work was pregnancy. She was made to attend a five-hour disciplinary hearing and was not offered food or drink. She got off as a consequence of representation by a GMB official, but when she sought to appeal against the final written warning, Amazon set up the appeal on her due date. She was distraught at how the company had treated her. I also met a young man at the gates of the giant depot at Rugeley who had been sacked at 6 o’clock in the morning, and he had his child with him because of the difficulties of managing life and shift patterns. He wept, as did his child in the back of his car.

One can look at the evidence given to the Business, Energy and Industrial Strategy Committee—I praise the work done by my hon. Friend the Member for Leeds West (Rachel Reeves) in rightly focusing on this situation—about the targets being set for Amazon workers. One worker said:

“In Amazon, there is—I am not sure if this is the correct expression—a rat race. There is always a fight for the target. You need to hit the target, and if you do not,”

they come after you. Drivers complained that they sometimes have to do 200 drops in one day. A worker at Rugeley was asked, “What’s it like to work for Amazon?” and they responded, “Prison camp.” Another worker at Rugeley was asked, “In your own words, is Amazon a safe place to work?” and the answer was, “No. Productivity is put first. It could be much safer.” A worker at the Dunstable depot was asked, “What’s it like to work for Amazon?” and the response was, “They act in a cynical way. If someone raises a complaint, they—the management—will start to do things until that person feels undervalued and leaves Amazon.” People are being pushed out by the company.

A worker at Peterborough was asked, “Are there enough facilities for everyone, such as washrooms, toilets, drinking water, canteens, etc.?” and the answer was “No! Given the size of the building and the number of people working there, there are not enough toilets or handwashing facilities.” A worker at Tilbury was asked, “In your own words, describe what it is like to work for Amazon” and they said, “To work for Amazon in my opinion is slavery in a modern world.” Finally, a worker at Gourock was asked the same question and the answer was, “This is the most stressful environment in over 40 years of working” that they had experienced and endured.

[Sir Edward Leigh]

For what it is worth, I agree with everything the hon. Gentleman says. Amazon is taking us for fools based on what it is doing to our high streets and on how little tax it pays. We need to find a creative solution—I am looking at the Treasury Bench—to ensure that these American digital giants are paying their fair due and treating their workers properly.

[Jack Dromey]

I totally agree with the right hon. Gentleman, and I am going to go on to that topic next. To add insult to injury, not only is there the treatment of workers employed by Amazon, but there is, to be frank, tax dodging. The Guardian reported in September 2019 that Amazon UK Services, one of Amazon’s key British divisions, paid £14 million in tax despite making £2.3 billion in sales and £75.4 million in pre-tax profits. In March 2018, the Daily Mail reported that Amazon paid only £20 million across its eight British-based companies— £4.5 million in corporation tax—despite registering £2.9 billion in UK sales. The issue was also focused upon by the Public Accounts Committee, which found:

“Amazon has a reported turnover of £207 million for 2011 for its UK company (Amazon.co.uk), on which it has shown a tax expense of only £1.8 million, however it shows a European-wide turnover of €9.1 billion for its Luxembourg based company (Amazon EU Sarl) and a tax of €8.2 million.”

I could go on, but the figures are stark and tell the story to which the right hon. Gentleman referred. It is completely unacceptable. Amazon is owned by Jeff Bezos, one of the wealthiest men in the world, and shame on him that he presides over a company that treats workers in such a way on the one hand and dodges paying the tax on the other.

What should be done about this situation? I applaud the tremendous work done by the GMB in standing up for the workers of Amazon, and there is now a global network, because the problem exists not just in Britain, but in Amazon’s companies worldwide. The Government talk about the dignity of labour and respect. The Government talk about wanting to be the champions of working people. What are the Government going to do or say about how Amazon conducts itself? There is a set of commercial relationships between various arms of Government and Amazon, so where do the Government stand? Why not call upon Amazon to do what I proposed when I went into the giant Rugeley depot? I was told, “We are very interested in that idea,” but nothing was done about it. There have been 600 ambulance calls to that and other depots. Why not agree to the proposal that there should be an independent investigation conducted jointly by the HSE and the GMB into the health and safety practices? The Government have power, including the power of advocacy, but will the Government speak out?

In conclusion, I have certainly dealt with some bad employers throughout my life, but I have also dealt with many good employers, and I celebrate how they treat their employees. This country is seeing the growth of insecure employment, under which millions of people endure a difficult life, so the Government should not only bring forward the Taylor proposals, which do not actually go far enough, but speak out. When it comes to the response to today’s debate and to what the Government have to say to Amazon, I am not holding my breath, but I hope the Government say, “Amazon, you need to up your game in terms of your working practices and agree to sit down with the GMB and sort the undoubted and deep-seated problems within the company.”

No-deal Brexit: Short Positions against the Pound

Jack Dromey Excerpts

Monday 30th September 2019 Commons Chamber

[Mr Clarke]

Would that all parts of our country were as well served as Dudley is by the hon. Gentleman, who is absolutely right: it is genuinely dispiriting that in the mother of Parliaments we find ourselves debating material that is more fit for the tinfoil hat brigade than for Parliament at a crucial time in our country’s history.

[Jack Dromey (Birmingham, Erdington) (Lab)]

As deputy general secretary of the old Transport and General Workers Union and then Unite, I led the battle against the Kraft takeover of Cadbury. A successful and profitable British icon was taken over by a debt-laden American multinational because the hedge funds bought 31% of the shares and sold Cadbury short. Does the Minister not recognise that there is a potential conflict of interest when we have a Prime Minister prepared to sell Britain short by way of a no-deal Brexit, backed by those who make billions daily out of selling our nation short?

[Mr Clarke]

The short selling regulations cover the sale of shares, so that falls within the remit of the existing legislation. Clearly, we all want to see our country thrive and move forward towards a better future. That will be best done by voting for a deal, as of course many of the members of the hon. Gentleman’s former trade union will have done.

Breathing Space Scheme

Jack Dromey Excerpts

Wednesday 19th June 2019 Commons Chamber

[John Glen]

My hon. Friend is right to draw attention to the excellent work of Christians Against Poverty, which is indeed a key stakeholder. We engage widely with the sector, including the Money and Mental Health Policy Institute, StepChange, the Money Advice Trust and the charity National Debtline—it really is a collaborative effort—and I am pleased with their response to where we have got to.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Debt ruins lives. Debt harms health. Debt damages relationship. Debt holds back children. In extreme circumstances, debt kills. When the Financial Guidance and Claims Act 2018—it established the Money and Pensions Service—was being taken through the House, the Government made a commitment to move on a breathing space scheme. Today’s announcement is therefore welcome, particularly the action being taken to defend the interests of those suffering mental ill health. In welcoming today’s announcement, I urge the Government to ensure that the new arrangements are properly resourced and that there is a sense of urgency in their implementation, because the sooner they are put in place, relieving that terrible burden that afflicts so many people in our country, the better.

[John Glen]

I am extremely grateful to the hon. Gentleman for his comments. He played a significant role in the passage of the legislation that led to today’s announcement. He urges me once again on the timeframe, and I can assure him that my Treasury officials are working as rapidly as possible, but we must also ensure that it actually works. One of the questions he asked me previously, about what is included in the scheme and the range of public sector debts, has been a significant driver in those conversations. I acknowledge and take on board his comments.

British Steel Pension Scheme: Transfers

Jack Dromey Excerpts

Wednesday 10th April 2019 Westminster Hall

[Jack Dromey (Birmingham, Erdington) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Howarth. First, I congratulate my hon. Friend the Member for Blaenau Gwent (Nick Smith) on securing the debate. I praise my hon. Friend the Member for Aberavon (Stephen Kinnock), who has played a major role in the drive for justice for those who were cheated on their pensions, the work of the APPG and the co-operation of colleagues from the SNP. I also welcome to her first Westminster Hall debate the newly elected Member for Newport West, my hon. Friend the Member for Newport West (Ruth Jones), who will, I know, be a strong champion of the people of Newport West.

A good pension is about security and dignity in retirement. The people of Britain deserve nothing but security and dignity in retirement. People work hard, build our country and, when they come towards retirement, plan ahead for the holiday they had always dreamed of, or to help their kids to be able to buy their own home. There can be nothing more painful than to be cheated out of what they have worked for all their lives.

I sometimes say I have been around since Churchill was a boy. I remember the era back in the 1970s and 1980s, when half the population of Britain was in good final salary DB schemes. We have made some progress—for example, the battle on auto-enrolment that we fought and won when Labour was in power, and which I welcome being carried forward by this Government—but to be frank, there has been a depressing direction of travel for good final salary schemes. There have been too many scandals, but none more scandalous than that of British Steel, and that is emblematic of the problem we face with the regulation of DB pension schemes in the UK.

As my hon. Friend the Member for Blaenau Gwent stated, when a deal was struck to keep Tata afloat, members belonging to the £15 billion British Steel pension fund were given the option to shift their assured benefits to the Pension Protection Fund, to join a new retirement scheme backed by Tata, or to transfer to personal pension funds. That led to what was called a “feeding frenzy” at the site in Port Talbot, as dodgy introducers preyed on workers who were more than likely confused about the position of their pension, and who may not have had the financial support or education needed to make such an important decision. Some advice was available, but often it was simply not good enough, or it was technical and unintelligible. Those rogues, those introducers, should be utterly ashamed of themselves. They bought meals for workers in local pubs, and convinced them to transfer their pensions into totally unsuitable schemes. Some people could have lost up to six figures from their pension total.

The Financial Conduct Authority has been probing concerns that pension changes that involve 130,000 members of the Tata retirement fund appear to have been affected. A study of the 8,000 people who transferred their pension demonstrated that 58% received advice that was simply not suitable, and the Pensions Regulator calculated that in 2017, the average loss was £94,000.

I will never forget the heartbreaking story that I was told by the chief executive of the Pensions Advisory Service during the passage of the Financial Guidance and Claims Bill that introduced the Single Financial Guidance Body. The Pensions Advisory Service set up an advice facility on site, and one of the first people to come in was a big burly steelworker and shift supervisor. He sat down and burst into tears. It turned out that he had been duped by one of those introducers, and it had cost him tens of thousands of pounds. The main reason for his grief, however, was not what he had suffered and would endure for the rest of his life, but the fact that the 20 guys on his shift had all followed his lead. He said to the Pensions Advisory Service, “I’ll never, ever be able to forgive myself, because the mistake that I made has had catastrophic consequences for the people I’ve worked with for 10, 20 or 30 years”.

The British Steel case was central to our work during the Financial Guidance and Claims Bill, and I pay tribute to the work of my hon. Friends the Members for Blaenau Gwent and for Aberavon, and many other Members, particularly from Wales, who played a noble role in strengthening the legislation to crack down on the outrageous. Real progress was made. Cold calling more generally was central to the debate on the Bill, and the ban on pension cold calling was a significant step in the right direction. However, we must now go further and introduce a ban on all cold calling—there were constructive discussions about that, and it would be helpful if the Minister would update us on the Government’s thinking—and we must also ban the work of introducers. From January this year there has been an end to pension cold calling, but more needs to be done.

More generally, the introduction of the Single Financial Guidance Body is a welcome step towards greater financial education and security. It brings together the three previous bodies, which all did good work, into a new, more effective body for the next stages. Crucially, it needs to be adequately resourced, not least because of the role that it will play in the oversight of the dashboard process, but it is welcome that it has been established.

Having said that, lessons need to be learned, and significant further progress must be made. On the learning of lessons, and the need for action, the right hon. Member for Birkenhead (Frank Field), the Chair of the Work and Pensions Committee, said of the Committee’s findings earlier this year:

“British steelworkers were roundly failed by the official regulators meant to protect their life savings. They were given precious little to guide them through murky waters filled with scammers looking to snatch their pensions—scammers who had little to fear from the FCA’s grossly inadequate action at the time”,

which I think it now acknowledges. The right hon. Gentleman continued:

“Now it seems they are being sold short again on what even the FCA calls ‘rightly’ deserved compensation. The FCA has ridden to their defence and urged the FSCS to be more generous, but the FSCS is clinging to rules the FCA says needn’t apply.”

That is a powerful indictment of what happened, and a call for further action to be taken. That is essential because—I say this with some sadness—British Steel is not the only outrageous case of pension mishandling. We have seen too many other scandals, most notably BHS and Philip Green, who ought to be utterly ashamed of the way he has conducted himself over the years, and what happened with the collapse of Carillion, which I will never forget.

In my constituency, we had a first-class apprentice training centre that was operated by Carillion and that had 60 apprentices going through it at any one time. When Carillion collapsed on the Monday, they were told, “Don’t worry. You’ll be okay.” On the Tuesday, they all got called in and sent home at lunch time—a number of them in tears. One young man, who had suffered from autism but whose life had been moving forward in the right direction, was sobbing uncontrollably and saying, “What am I going to tell my mum?”

On the pensions issue, Carillion has been centre stage in our discussions, including with the Government, about the further steps that need to be taken. Some of the proposals in the DB White Paper are welcome, such as stronger criminal sanctions for directors neglecting pension schemes—although I will come on to the fact that the possibility of criminal action is there in the here and now—stronger powers for TPR, and clearer standards on scheme funding.

[Stephen Kinnock]

On the issue of further action, particularly regarding legislation, is it not vital that the Government recognise the huge risk in divesting pensions? If people are not defaulted into the new scheme that is being set up, and it is left completely open to them, there is a real risk that they will be easy prey for unscrupulous financial advisers. Should the Government not bring forward a statutory instrument that makes it the default to go into a new scheme, rather than to go into the Pension Protection Fund? That is particularly important when all the actuarial advice is that it would be best for the vast majority of those pensioners to have gone into the new scheme and that they should have just been defaulted into it. That can be done by statutory instrument.

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[Jack Dromey]

My hon. Friend makes a powerful point. In the debate over the last 12 or 18 months, we have called that the progressive default option. There is no question but that it has enormous merits and it would be helpful if the Minister were to comment on it in his response.

The experience with Carillion pointed to more general problems that started with the Government’s lamentable non-intervention. Despite the fact that the company was getting into greater and greater difficulty, and despite repeated profit warnings, they continued to let contracts to Carillion. The regulators were aware of the risks at a relatively early stage, but they did not use the full extent of their powers to avoid unnecessary burdens on business. I kid you not. I quote from what was said at the time.

The board, which failed in its duties to workers and pension scheme members, continued to pay out large salaries, bonuses and dividends, but did not pay into the pension deficit. The trustees did not alert regulators to the extent of the problems early enough. Asset managers continued voting through large pay packages despite profit warnings, and the auditors did not spot the signs of trouble early enough. There is a raft of problems associated with the scandals that have befallen too many workers in our economy. The lessons from Carillion in terms of the need for action more generally are powerful indeed.

At the next stage it is vital that the regulators act to make sure that such events never happen again. They need to become more people-focused, ensuring that workers’ pensions are protected at all costs. Rogues in the industry must be sought out and punished, ensuring that they never work in the industry again, and the law needs to be strengthened. To that end, there have been constructive discussions with the Government on presenting a Bill as soon as possible to introduce the stronger powers contained in the DB White Paper to go after rogues. Perhaps the Minister will comment on where that legislation is. It is important for two other reasons, including the introduction of the pensions dashboard—for example, the compulsion on providers to provide the necessary information to the dashboard—and the collective defined contribution pension scheme that has been agreed between Royal Mail and the Communication Workers Union.

There are welcome measures on pensions that can and should be taken where there is a degree of consensus, even if we argue that the Government should go significantly further. The sooner they are introduced into legislation, the better.

In conclusion, this is little comfort to the workers of British Steel or those in Carillion, but the tragedy that befell them was at the centre of the drive for changing and strengthening the law last year. It is at least something of a legacy, even if it is cold comfort to them. At the heart of it were MPs such as my hon. Friends the Members for Blaenau Gwent and for Aberavon, who played a major role in highlighting the scandal and demanding that action be taken.

At the next stages, I stress again that it is important that lessons are learnt by all those I have referred to and that the law is strengthened. I will finish by referring to something that my hon. Friend the Member for Blaenau Gwent said, and he was absolutely right. Is it necessary to change the law in the ways that I have argued for? Yes, without hesitation, but there are powers that exist now in criminal law, and those powers should be used. I know the workers of Port Talbot would say that those evil men and women who cheated them on their pensions need to be investigated, tracked down and put in the dock. An unmistakable message must be sent: if you rob workers of their pension scheme, you are an utter disgrace and, will end up in the dock, and, in extreme cases, in prison.

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[John Glen]

Following our meeting, I undertook to speak to Andrew Bailey, the chief executive. We are due to meet every few months, and our next meeting is imminent. I will speak to him about that. A number of live investigations are under way; I do not have investigative power myself, but I will take a close interest in those investigations. Individual companies—I will not name them—are being actively investigated now, and I expect the FCA to make announcements and recommendations consequent to those investigations imminently. I am not privy to the detail, but I am taking a close interest and will be speaking to the chief executive, because I realise that time is pressing on. This morning we have heard vivid accounts of individuals and families ruined by these decisions, and I take the matter seriously.

To get back to my script, the FCA leads on financial advice and has considerable power to act against firms and individuals who provide negligent advice. To be clear: the FCA can impose a financial penalty on a firm, require the firm to pay redress to its customers, restrict the firm’s permissions, or prohibit individuals from operating in financial services. The FCA can bring criminal prosecutions. I hear the enthusiasm for that action being taken, and I think the FCA hears it too, but it works closely with other organisations to support criminal prosecutions. Both the Government and the FCA are targeting their attention on the effective regulation of financial services and wider work to tackle scams, including the recent implementation of a ban on pensions cold calling.

[Jack Dromey]

That is helpful, but in the case of British Steel, I think it would send absolutely the right message to the workers concerned if the Minister said today that a sense of urgency is needed on the part of the FCA and the South Wales police about investigating potential criminal wrongdoing and taking action. The workers back at the plant would welcome that.

[John Glen]

I am happy to respond to that intervention by saying that it is absolutely imperative that the FCA works with all bodies to hold those individuals to account and to take the appropriate action in the light of the evidence presented to it. This is urgent; the individuals who have suffered this experience expect that of the FCA, and I believe the FCA is keenly aware of that.

The hon. Member for Blaenau Gwent talked about the regional presence of the FCA. It has more than 3,000 employees and runs an annual programme of regional supervisory workshops under its “Live and local” banner, in which it educates firms and gathers intelligence from across the country. That has included recent workshops on DB pension transfers. Although the FCA does not have a series of regional offices, there is a clear expectation on the part of the Government and the FCA itself that it will go out into communities across the country, to ensure it has a presence among the 35,000 IFAs that operate.

The regulator is also undertaking further work on the pensions transfer advice market. The FCA is analysing responses to a recent data request from firms that undertake pensions transfer advice and is planning a programme of work, which is likely to include further engagement with stakeholders, targeted education for firms involved in providing pension transfer advice, and assessment of those firms significantly involved in the provision of DB transfer advice. The FCA has already announced a requirement for all pension transfer specialists to obtain the same qualifications as fully regulated investment advisers, alongside their existing qualifications, by October 2020. In relation to the BSPS, the FCA intervened to stop 11 firms from providing pensions transfer advice, and several firms are still under investigation.

It is important to ensure that consumers are protected from poor-quality and unsuitable advice, and there are proper mechanisms for redress when they receive poor advice. The first port of call for consumers to seek compensation is to approach the firm itself. If they cannot resolve the issue, consumers can take their complaint to the Financial Ombudsman Service. The FOS is a free, independent service that provides an alternative to the courts. The maximum award it can recommend was increased at the beginning of this month from £150,000 to £350,000 per individual. If firms go into liquidation and cannot provide compensation to individuals, a second tier of protection is open through the financial services compensation scheme. The FSCS is mainly funded by an annual levy on the financial services industry. Since its founding, the FSCS has helped millions of people and paid billions of pounds in compensation.

It is important to note that in the British Steel case, only a very small minority of former steelworkers who have taken their claims through the FOS and the FSCS have not been fully compensated. That group were all clients of one firm, and the Government’s decision to make financial advice mandatory for those seeking to transfer their DB pension has therefore guaranteed a crucial layer of consumer protection to those individuals.

“Phoenixing”—firms or individuals seeking to avoid liabilities arising from poor investment advice by re-emerging as a different legal entity—can leave consumers and taxpayers out of pocket and tarnish the reputation of the industry. The FCA has a range of tools to identify and act against firms or individuals who try to avoid responsibility in that way. Those seeking to liquidate firms must provide information about outstanding complaints, and the assets of collapsed firms cannot be sold on or passed back to former directors without the prior consent of the regulator. The FCA has already used those powers to prevent several individuals and businesses from avoiding their liabilities, and other cases are under investigation. This has caused some individuals to withdraw their applications, knowing full well that they will not get through. Although I acknowledge that this will not give absolute comfort to those who have suffered, I believe that we now have in place a regime that will prevent the practice in future.

Public Sector Pay

Jack Dromey Excerpts

Tuesday 24th July 2018 Commons Chamber

[Elizabeth Truss]

I understand from my colleagues in the Department for Education that this will also apply to Wales.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Past announcements on school budgets have unravelled within days, so is the Chief Secretary guaranteeing that every single penny to fund the teachers’ pay increase will come out of central budgets, with not one single penny falling on school budgets? Does the Chief Secretary accept that this does not change the grim reality of 351 out of 354 Birmingham schools facing real-terms pay cuts and budget cuts over the next two years?

[Elizabeth Truss]

I have been very clear that the additional £500 million over two years will be coming from central DFE budgets. It will be allocated to schools. My right hon. Friend the Secretary of State for Education will be announcing exactly how that allocation will work in due course.

Financial Guidance and Claims Bill [Lords]

Jack Dromey Excerpts

3rd reading: House of Commons & Report: 3rd sitting: House of Commons
Tuesday 24th April 2018 Commons Chamber

[John Glen]

I have tried to make it clear that when we are setting up a new body, it is important that we take time to reflect on the evidence and that we take action in consultation with and alongside that body. I acknowledge the widespread concern that exists in other areas, and I think that the action we are taking gets the balance right when it comes to getting the evidence together and moving as quickly as possible when the case has been made.

The amendments that I have outlined are additional to the amendment that was made in Committee to introduce a ban on claims management cold calling, which will cover calls about claims on matters ranging from mis-sold payment protection insurance to holiday sickness and car accidents. That means that calls about PPI, whether we have been in a car accident or whether we were sick on holiday—we are all familiar with such calls—will be banned unless prior consent has been given to receiving them.

Having ensured that we can tackle cold calling effectively, we plan to remove the existing clause 4 by means of amendment 11. Amendments 12, 25, 26, 28, 29, 45 and 46 are minor and consequential to these changes. In particular, amendment 45 commences new clause 9 on Royal Assent to ensure that there is no unnecessary delay in making regulations, and amendments 44, 47 and 48 prepare the Bill for the new data protection legislation.

[Jack Dromey (Birmingham, Erdington) (Lab)]

I wish to address the issues of pensions cold calling in new clause 9, wider cold calling in amendments 8 and 9, and the duty of care in new clause 6.

Let me start by saying what this Bill is about. In Committee, we heard the story of the Port Talbot shift supervisor who broke down and wept uncontrollably when he met the Pensions Advisory Service. He described how he had been conned into going down the wrong path on his pension, losing tens of thousands of pounds as a consequence. The reason why he wept, he said, was that all 20 on his shift followed his lead, and therefore they, like him, now faced a much bleaker future than would otherwise have been the case.

Pension cold calling is a blight on people up and down the UK. As the Minister has said, we all know the feeling of answering the phone to a number that we do not recognise and hearing that familiar phrase, “We believe that you have been in a car accident.” Indeed, I was heading over to one of the Bill Committee sittings when I received such a call, not having had one for some years. Someone said that they understood that I had been in a car accident. I said that, yes, I had been in an accident 38 years ago, and it was because somebody had run into the back of me. Since then, I have had two subsequent annoying cold calls, yet mine is but a minor problem. The more significant one is the 11 million pensioners who are targeted annually by cold callers. Fraudsters are making 250 million calls a year, which is equivalent to eight every second.

As the Minister knows, we have approached the cold-calling element of this Bill on a four-pronged basis: first, banning pensions cold calling; secondly, pushing for a total ban now on cold calling for claims management companies, thereby tackling the scourge of unsolicited claims head on; thirdly, banning the use of information obtained through cold calling; and, fourthly, ensuring that the strongest possible sanctions are put on those who break the ban, which means that they are struck off.

The Government’s commitment to ban pensions cold calling from June is a necessary and wholly welcome step. May I make the point—such points are not often made in the House—that the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), and the Economic Secretary to the Treasury have engaged with us, the wider community and the pensions industry? Their approach has been constructive. Together, we have come a very long way, but I hope that they will go just that little bit further. Our amendments would tighten the provisions around the ban and ensure that it is fit for purpose. The dual additions of making it an offence to use the information obtained through cold calling and conferring functions on to the Financial Conduct Authority would mean that the ban could be much tighter and more effective.

Although the original clause means that the “introducers” who tend to commit a lot of cold calling in cases such as the British Steel scandal would not be restricted, as they are not covered by the FCA, our amendment would restrict them. The move to ban the use of the information means that those firms which provide financial services and are covered by the FCA will be banned from using the information that the “introducers” gather. This slight shifting of the ban is designed to strengthen it further, as the FCA has much stronger powers than the Information Commissioner’s Office and can strike off members who contravene the rules. We therefore hope that Ministers will reflect further on this.

I now move on to cold calling more widely. A crucial issue on which the Minister has touched is the speed with which we now act. It is not only pensions where cold calling has a negative impact. There are many other industries that have been blighted by cold calling that creates serious consequences for innocent consumers. It is common for claims management companies to try to harvest cases for road traffic accidents and holiday sickness. Unfortunately, and extraordinarily, the UK has become the world leader for holiday sickness claims. The Association of British Travel Agents said that there were about 35,000 claims of holiday sickness in 2016, which represents a 500% rise since 2013. One in five Britons—19%, or around 9.5million people—has been approached about making a compensation claim for holiday sickness. Statistics from just one tour operator, in July and August, show that there were 750,000 travelling British customers, 800,000 Germans and 375,000 Scandinavians. The Scandinavians lodged 39 claims for holiday sickness and the Germans filed 114. The Brits put in just under 4,000 claims.

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[Alex Sobel (Leeds North West) (Lab/Co-op)]

My hon. Friend referred to Jet2, which is headquartered in my constituency and has raised this issue with me on many occasions. It says that these vexatious claims are increasing the cost of flights and holidays for the rest of us. Is it not true that closing this loophole will effectively mean that we can all enjoy a holiday at a much more reasonable price?

[Jack Dromey]

My hon. Friend is absolutely right. When a reputable company such as Jet2 makes the point that the consequence of this practice might be price increases and a reluctance among some hoteliers to enter into agreements, it is clear that innocent holidaymakers will pay the price.

It is not just travel companies that are suffering due to the large number of cold calls. Around 51 million personal injury-related calls and texts are sent by regulated claims management companies each year. The Association of Personal Injury Lawyers has long called for a ban on personal injury cold calls from CMCs, especially as solicitors themselves are already banned from cold calling. Ironically, only recently, the Justice Secretary said that there would be a “forthcoming ban on cold calling” when discussing personal injury claims. If the Justice Secretary believes that there is a forthcoming ban, why do we not act now and include it in this Bill? As Lord Sharkey said in the other place, the ban is necessary to deal with the “omnipresent” menace of cold calls. Baroness Altmann has said:

“People need protection from this nuisance now. They shouldn’t have to wait still more years for a ban....Direct approaches to people on their mobiles or home phones should have no place in the modern world of business.”

The Government, in the public interest, must accept the amendment to ban cold calls when this Bill passes.

[Ruth George (High Peak) (Lab)]

My hon. Friend makes an excellent argument for banning such cold calls. Does he agree that the banning of cold calling by claims management companies for personal injury claims would be a far more effective method of reducing costs for insurance and personal injury than the Government’s proposals, which are currently being considered in the other place, to limit the injury compensation due to innocent victims, as well as to those who are not innocent?

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[Jack Dromey]

My hon. Friend is absolutely right. There are legal consequences for those who make unlawful claims, but there are also business consequences, which in this case knock on to the legal profession and its work. Looking at it from every angle, this is a menace that we need to bring to an end; the question is how soon we can do so.

We hope that the Government will accept our proposals, not least because the Conservative party said at the 2017 general election that it would

“consider a ban on companies cold calling people”.

This is the Government’s chance to keep at least that manifesto promise while protecting the public at the same time.

It is deeply welcome that the Government have taken the powers to ban cold calling for pensions. They have also indicated their support—indeed, the Minister did so earlier—for a wider ban, which our amendment calls for. We are not calling for a blanket ban, which the Minister believes could impinge on non-contentious issues such as doctor-patient calls. The situation is different when such an established relationship exists. We are talking about commercial companies that are pursuing a commercial advantage. All claims management companies should be banned from cold calling, so we urge the Government to set out in the Bill that they will stop the scourge of cold calls by claims management companies.

New clause 6—this is the only other provision to which I will speak—would introduce a duty of care by requiring claims management services to act in the best interests of customers, not least those who find themselves in a vulnerable situation. Due to the scope of the Bill, the new clause relates only to claims management services. However, although this change would be important, we believe that a duty of care is required across all financial service providers. Many consumers are forced to deal with financial providers when they are at their most vulnerable. Such people can include those who have been diagnosed with serious illnesses, including cancer. At present, the Financial Services and Markets Act 2000 requires that the FCA must have regard to

“the general principle that consumers should take responsibility for their decisions”.

Frankly, that is not good enough.

The Financial Services Consumer Panel told the Lords Financial Exclusion Committee that consumers could reasonably be expected to take responsibility for their decisions only if firms had exercised a duty of care towards them. It suggested that such a duty would oblige financial services providers to avoid conflicts of interest and act in the best interests of their customers. The panel proposed amending the law to require the FCA to make rules on a duty of care, arguing that the introduction of such a duty would lead to a much-needed cultural change in the banking sector and the financial sector more generally.

Let us look at just one example. The charity Macmillan Cancer Support has said that people affected by cancer tell it that they experience barriers to getting the support that they need from the banking sector. By 2020, one in two people will have cancer at some point in their lives. Four in five people with cancer are £570 a month worse off on average as a result of their diagnosis. For example, Christine was first diagnosed with cancer in 2009, but is still feeling the financial effects today. She said:

“The financial fall-out of cancer was huge—I went into my overdraft and had to take out a loan to pay it off. When I found out that my credit rating had suffered, it seemed unfair because I was trying my best to get back into work and to have money coming in…For people like me who want to go on living and working, it’s about having that short-term support and understanding. What would have been great was if I’d been able to have an honest conversation with my bank”.

A specific requirement therefore needs to be explicitly stated to ensure that all financial institutions do their best by the most vulnerable people in society. The strong evidence that has been presented by Macmillan clearly shows that a universal duty of care is required across financial services providers.

In the light of examples in which the principle of treating customers fairly is clearly failing customers, how has the FCA reassured Ministers that the current regulatory provisions are sufficient? Can the Minister provide further details on when the discussion paper to which he referred will be brought forward? I know that he is seized of the problem and wants progress to be made at the next stages. That is crucial and, once again, we want to get on with it, because we need to tackle the real problem that has been identified. What assurances can the Minister give that action will be taken to ensure the timely introduction of the duty of care following the outcome of the FCA’s consultation paper?

We strongly support amendments tabled by a number of hon. Members, led by my hon. Friend the Member for Harrow West (Gareth Thomas), that would ensure that banks and financial institutions take proper account of local and regional need, and do not let down local people, as is all too often the case now.

[Crispin Blunt (Reigate) (Con)]

I will speak to amendment 41, which is in my name. My amendment is intended to make a point to the Minister, and I am utterly certain that I will get the assurance that I need in order to do nothing more than discuss it now.

I welcome the introduction of a single financial guidance body, as it should result in a simpler, smarter and smoother experience for the user, helping them to make informed financial decisions. However, we ought to use the opportunity of this Bill not only to ensure that we get the guidance bodies all in one place; we also need to recognise the different types of finance or retirement income that need to be signposted. Financial decision making can be complex, often requiring advice and support, particularly during events such as buying a first home, on retirement or following a bereavement.

I tabled this amendment because people ought to consider their finances in the round. In other words, all liquid and illiquid assets—cash and property—should be considered together. My amendment follows the lead of the noble Lady Greengross in the other place, asking the Government to ensure that this new guidance body highlights the full range of options available, so that its users get the best possible advice to help them to make informed choices about their finances and their futures.

The report published last month by the Housing, Communities and Local Government Committee describes equity release as one of the key tools available to those predominantly in later life. It ensures that older householders are able to pay for care costs or home improvements to give them the option to stay in the homes in which they have built lives and brought up their families. Equity release means that our constituents aged 55 and over who might be asset rich but cash poor can have the option of staying in their own homes by accessing the wealth that they have accrued in that home.

The Equity Release Council published a research paper last April called “Equity Release Rebooted”, in which it estimated that the average value of a defined contribution pension in 2012 to 2014 was £30,200, while over-55s in England possess approximately £1.8 trillion in housing wealth and more than 80% of over-65s own a home. For many, if not most people coming towards the position of making a decision about their retirement, their property is much their greatest asset. It must therefore be sensible for equity release to be signposted and to form at least part of any discussion about funding retirement and later life.

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[Jack Dromey]

In the spirit of being able to get on to the next group, we welcome the ban on pension cold calling. We have sought to extend that ban to all cold calling. If the Minister is prepared to have discussions at the next stages, and before the Bill concludes its passage through Parliament, we would be prepared not to oppose Government amendment 11 or to move our amendments 8 and 9.

[John Glen]

I am grateful to the hon. Gentleman and I acknowledge his kind words, which are reciprocated from our Front Bench. We continue to have a meaningful dialogue on the outstanding concerns that exist between us.

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[Jack Dromey]

Why does this Bill matter? It matters because of that Port Talbot shift supervisor who said he would never, ever forgive himself, having made a mistake and been conned into being sold short on his pension, with all 20 on his shift following his lead. It matters for the single mum in my constituency who had been a victim of domestic violence and had continuously to borrow to pay off her debt. As she said to me, “I borrowed to pay the debt because I borrowed to pay the debt because I borrowed to pay the debt.” It matters to Christine, who was first diagnosed with cancer in 2009 but is still feeling the financial effects today—in debt, pursued constantly for it and her bank oblivious to her condition.

The Bill will help to end scams. It will help to ensure that rogues who are exploiting in particular the vulnerable and undercutting the reputable have no place in the market in future. This is a good Bill. It was strengthened in the other place and then in Committee. It establishes the single financial guidance body, which is a strong step in the right direction.

The Bill has also seen progress today. Progress was previously made on issues of immense importance, in particular pensions cold-calling. It is deeply welcome that the Government have listened to the strong representations made across the House on breathing space and recognise the particular problems of those suffering from mental ill health. The new body will promote greater understanding and help people to plan their finances and retirement.

There is still further progress to be made. We will engage with the Government following our earlier exchanges, because of our very strong view that the time has come to stop all cold-calling for commercial purposes by claims management companies. There is very important progress yet to be made.

The Government have constructively engaged and sent some welcome signals. They have talked about the next stage of the process. The sooner we can get there, the better. I would like to thank a number of people. While there were rather robust exchanges over GKN earlier on in the Chamber, I have to praise both the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), and the Economic Secretary to the Treasury for their helpful, constructive and collaborative approach.

I would like to thank the Work and Pensions Committee for its characteristically first-class intervention and advice, and in particular its Chair, my right hon. Friend the Member for Birkenhead (Frank Field). The Committee can take particular credit for the progress made on the ban on pensions cold-calling.

I would like to thank all colleagues in this place who tabled amendments and contributed to the various debates that took place.

I thank the Members of the other place for the contributions that they made, again across party—particularly, but not exclusively, Lords Sharkey, Altmann, McKenzie of Luton and Drake. I thank also the Commons Clerks and other staff who worked so hard with us to shape the Bill and to take it through Parliament. All those parties and organisations have contributed to the passage of the Bill with their wisdom and many topics of interest.

I thank those organisations and individuals who passed on their research or sometimes heartbreaking stories, which brought home to us the Bill’s importance. I often say that I believe we need a story to tell the stories, and we have heard so many stories—sometimes tragic ones—throughout the Bill’s passage. It is for people like them that we are all here, and I hope that the Bill will help them in the next stages, and as we move forward, making further progress, ensuring that it benefits all, but especially the most vulnerable in our society.

In conclusion, I have something to say to that steel shift supervisor who wept uncontrollably about the consequences of what he had done and the effect on others who followed his lead. We say to him and all those whose stories were told throughout the Bill’s passage that sometimes nothing can be done to put right the wrong that they suffered in the past, but in their own way, by telling their stories, making their contribution, they have helped to bring into being a very important body—the single financial guidance body—that will ensure that never, ever again are others treated as they were.