Oral Answers to Questions

Jim Cunningham Excerpts

Tuesday 1st October 2019 Commons Chamber

[Mr Clarke]

I thank my hon. Friend for his question and take this chance to thank him, on behalf of the Government, for the work he did with the former Chancellor. He is quite right to talk about tax reform. Of course, since 2016 we have announced business rates reforms and reductions worth more than £13 billion by 2023-2024. On VAT, in the run-up to the 2018 Budget we consulted on the threshold, which is the highest in the EU and the OECD. We have committed to keep that in place until 2022, but I am genuinely always interested in suggestions that I can discuss with colleagues.

[Mr Jim Cunningham (Coventry South) (Lab)]

When is the Minister going to do something about the delays in payment to small businesses that often affect their cash-flow? We have debated the issue for many years; is it not about time that the Minister did something about it?

[Mr Clarke]

Responsibility for this issue falls between the Treasury and the Department for Business, Energy and Industrial Strategy. A late-payment regulator has been set up. I talked about this issue with businesses at the Conservative party conference on Sunday; I take it very seriously and they highlighted it as an ongoing concern. It should come out loud and clear from the House that all businesses, particularly larger ones, have a responsibility to meet their payment terms, because that is crucial for small businesses. I think everyone in the House can unite around that common principle.

Youth Services

Jim Cunningham Excerpts

Wednesday 24th July 2019 Commons Chamber

[Mims Davies]

I know the importance of youth work interventions in my hon. Friend’s community and town, which can be seen in the football club, the charity movement and in terms of prevention. I completely agree with him regarding the uniformed youth.

[Mr Jim Cunningham (Coventry South) (Lab)]

The Minister is making some important comments, given that a 15-year-old was shot by somebody on a motorbike in Coventry last Saturday. The point that I am trying to make is that 87% of local authorities have cut at least one portion of their youth services over the past 10 years, and we must do something about that. To put it another way, £3 billion has been cut from youth services over the past 10 years, so how are the Government going to try to make up for that, bearing in mind that police resources are badly stretched? I am not making a political point, but we still have a shortage of policemen.

[Mims Davies]

I thank the hon. Gentleman for raising that. The loss of one young life on our streets is one too many. When we are making decisions about local services, it is important that councillors and councils recognise the impact of their decisions, and I have been one of those people having to make decisions in challenging circumstances. Our young people matter, and I will be coming on to that later in my comments, but I hope today’s debate will make it clear that, whether cross-Government or cross-party, we absolutely do care.

The new qualification that I mentioned earlier will be accessed by those working in a volunteer capacity—perhaps in small voluntary organisations—and they may not have the significant sums needed, so I can also confirm today that we are providing £500,000 in bursaries for potential students who would otherwise not be able to pay, benefiting up to some 400 students.

Turning to further investment, the youth investment fund has a three-year, £40 million collaboration with the national lottery, and I thank the players who are helping us to support the fund. The collaboration will benefit 90 voluntary and community organisations working in disadvantaged communities. A great example of that is the detached youth work done on the Pallister estate in Middlesbrough, which engages with 60 to 80 young people each week and has contributed to a reported decline in antisocial behaviour rates in the community. That successful model means that the delivery agency, Youth Focus: North East, is working with a local community business to establish a permanent building for young people on the estate.

--- Later in debate ---

[Mims Davies]

The hon. Gentleman is right. If we intervene once a young person is in the criminal justice system, we are in some ways intervening far too late. That does not mean that there cannot be change from there, but we should be intervening sooner. This week, I have been working with the Minister for safeguarding, my hon. Friend the Member for Louth and Horncastle (Victoria Atkins), across the whole sector, on making sure that people with a challenged background get a chance to get into employment. It is absolutely right that the hon. Member for Rhondda should mention early intervention.

I do not want to undersell the impact of what Sport England is doing; through that, we will reach more than 3,000 additional young people under 25, giving them key skills, coaching and further opportunities. These projects demonstrate the power of sport to inspire. Culture, arts and heritage can also offer young people in our communities a way out, a new chance, and take them away from the risk of violence and gangs.

I have been looking in the Department for a concerted effort on discrimination and racism and the power of sport to inspire. Today, the Football Association, the Premier League and the English Football League have written to me to set out their next steps on tackling racism and discrimination, following the summit I called earlier this year. They have set out stronger education measures, improved reporting systems and better training and support for referees and stewards. There is more to do, and I expect the issue to be at the top of the agenda for the whole of football in the next season.

Let me turn to the other interventions we have made regarding the school sport and activity action plan. A third of our young people—especially girls, children from poorer backgrounds and some children from black, Asian and minority ethnic backgrounds—are doing less than half of the recommended amount of exercise each day. We have published our new school sport and activity action plan, which will ensure that young people are able to get the benefit of 60 minutes of daily sport and physical activity.

[Mr Jim Cunningham]

The Minister raises an interesting point. We need joined-up Government, with the involvement of education, including further education, which has lost a lot of money. Often, if we can channel a young person into further education, they can make their mind up and may want to go to university. It is a joined-up process and that is the approach that has to be taken.

[Mims Davies]

I will come to that joined-up approach shortly, because it is absolutely key.

We must ensure that young people are able to have a say in the policies that affect them. I have launched three further cross-Government youth voice projects, which enable young people to input directly into policies and design them, alongside officials and politicians. Whether it is hearing from the young people who attended the recent summit on serious violence or our youth steering group that advises the Government on environmental action, we are making sure that young people are being listened to.

The theme of today’s debate is the sufficiency of youth services. I have outlined some of the things we have done and the plans we have made. In April this year, the Government announced that we would develop a youth charter. We need to ask ourselves whether we are sufficiently ambitious on behalf of our young people. Through the charter, we will be. We will bring together policies from across Government and listen to views from young people, those who work with them and, importantly, those who care for our young people. I wish to say a huge thank you to the youth sector organisations that have shared in and embraced the opportunity to work with us to develop the charter so far. It is a commitment to a generation, for a generation. I want the youth charter to have a clear message for our young people: we back them and we are listening to them—to all of them. We are not stereotyping them and we are not limiting them, and we will make sure that if they speak or act in a different way, we will hear them.

Every young voice matters. The Government are determined that all young people will be supported to reach their full potential. We want this country to be the best place in the world to be young.

Lotteries Regulation

Jim Cunningham Excerpts

Tuesday 16th July 2019 Commons Chamber

[Mims Davies]

The Gambling Commission plans to consult on measures to tighten up the society lotteries framework, including by looking at the information provided to players about the proceeds of a lottery and how they are used, and publishing breakdowns of where the money is spent and the good causes that benefit. As I said earlier, if we need to, and if those measures do not go far enough, I will look to legislate to protect all players, of all ages, who are appropriate to be playing.

[Mr Jim Cunningham (Coventry South) (Lab)]

With greater transparency for society lotteries, can we also publish a proper breakdown of how the money is spent?

[Mims Davies]

As I said earlier, it is important to use this opportunity to work with the sector to ensure that those playing charity lotteries in their local communities get the transparency that they would expect and see from the national lottery—something that the national lottery and its distributors have raised strongly. That is why we have been looking at this and why the Gambling Commission is looking at the sector more widely to support these changes to ensure that anybody playing a society lottery or the national lottery is clear where the money goes and which good causes are supported.

Animal Welfare (Sentencing) Bill

Jim Cunningham Excerpts

2nd reading: House of Commons & Programme motion: House of Commons
Wednesday 10th July 2019 Commons Chamber

[David Rutley]

We can talk about that in more detail in Committee, but it is clear that this is about animals that are under the control of man. So in a situation where a feral cat was under the control of a man or woman and was experiencing unnecessary harm, the Bill would apply.

[Mr Jim Cunningham (Coventry South) (Lab)]

I apologise for coming in a bit late. The Minister might have covered this earlier, but will the courts have discretion in relation to the maximum sentence? Am I right in thinking that there will be a scale?

[David Rutley]

I thank the hon. Gentleman for his question. Just to clarify, we are discussing the maximum penalty; there will be other gradations that the courts will see fit to use. It is important to highlight, as I have done with a couple of case studies, that the courts felt they did not have the right sentencing available, given the horrific nature of some of the crimes they had been looking at. The Bill is about providing a maximum. The hon. Gentleman must be psychic, because I was about to come to that point. Under clause 1, the existing maximum penalty of six months will be retained if the offender is summarily convicted. However, offenders may now receive a higher penalty of up to five years’ imprisonment and/or an unlimited fine if they are convicted on trial by indictment.

Clause 2 outlines that the Bill will come into force two months after Royal Assent. The application of revised maximum penalties is not retrospective and does not apply to offences committed before the Bill comes into force. The clause also specifies the short title of the Bill, and provides for the Bill to extend to England and Wales. Animal welfare is a fully devolved matter, as many Members know. However, in this case the Welsh Government have confirmed that the maximum penalty should also apply in Wales, and the Bill is drafted on that basis. The Welsh Government are preparing a legislative consent motion so that the Bill can be extended and applied in Wales.

It is the Government’s view that the subject matter of this Bill is considered to be within the legislative competence of the Scottish Parliament and the Northern Ireland Assembly. I have commended Northern Ireland for having already set the maximum penalty for animal cruelty offences at five years’ imprisonment in August 2016, and I am pleased that the Scottish Government have announced their intention to do so as well. This country has some of the highest animal welfare standards in the world, but our maximum penalties are currently among the lowest. An increase to five years’ imprisonment should be introduced to enable the courts to have more appropriate sentences at their disposal for the most serious crimes of animal cruelty, and to reinforce our position as a world leader on animal welfare.

The Government are pleased to be taking forward this positive step on animal welfare. Just a month ago, we introduced a ban on third-party sales of puppies and kittens, and we have introduced mandatory CCTV in slaughterhouses. The Bill follows the previously mentioned passing of Finn’s law and we are also demonstrating the importance of the value of wild animals with the Wild Animals in Circuses Bill progressing well through the other place. The Animal Welfare (Sentencing) Bill is a fundamental step in ensuring that we have an appropriate response to those who inflict deliberate suffering on innocent animals and, for the reasons I have set out, I commend the Bill to the House.

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[Sue Hayman]

But if any person directs an animal to do such appalling harm, should not that person bear some responsibility?

The Sentencing Council recommends that if a defendant pleads guilty at the first reasonable opportunity, the sentence may be cut by a third, so someone who commits the most serious crime against animals and pleads guilty could end up serving only four months in prison. I think we would all agree that that is an incredibly inadequate sentence for some of the crimes we have heard about.

The Minister mentioned that many people have campaigned for the increase, and I would like to mention groups such as the League Against Cruel Sports, the Dogs Trust, Blue Cross, the RSPCA and Battersea Dogs & Cats Home, all of which have campaigned strongly for the measure, having previously expressed concern about the leniency of sentencing.

[Mr Jim Cunningham]

We should pay tribute to those organisations for all they have done over many years. Battersea Dogs & Cats Home has done an excellent job—in fact, my hon. Friend probably met its representatives when they came here last week.

[Sue Hayman]

I agree absolutely. There has been huge support for increasing the sentences for animal cruelty, and Battersea Dogs & Cats Home has been particularly keen to get the law changed.

I support the Minister absolutely in his view that we need to crack down on dog fighting and hand down the sentences that are appropriate for that crime. The Dogs Trust says that the woefully inadequate sentences currently available are cause for serious concern—as the Minister said, we have some of the shortest sentences worldwide. I am pleased to hear that Wales is also to take forward these measures.

There is no parity in the law—for example, if someone harms a service dog, the penalties are much higher than if they harm a pet or a farm animal. We believe that wild animals too should be covered. There is also no consistency in sentencing: a person can be sent to prison for three years if their dog injures a guide dog, but if they beat a dog to death the maximum sentence is six months. In Northern Ireland, five-year maximum sentences are already in place. It is important that we achieve consistency across the UK. Hopefully, the recent consultation in Scotland will enable us to harmonise the law right across the UK.

The Minister mentioned the connection between animal cruelty and criminal behaviour. We know that people convicted of animal cruelty are five times more likely to have a violent crime record, and that animal abuse is 11 times more likely in domestic violence situations. That is another reason why we need to act now. The legislation will protect not only our beloved animals but people, too. In addition, the Government need to place a statutory duty on local authorities to enforce the Animal Welfare Act, so that it has proper teeth, and to give local authorities adequate resources with which to enforce the regulations under the Act.

If the Government are serious about animal welfare, they must introduce the measures in the other half of the original Bill to enshrine animal sentience in law after we leave the EU. Even better, they could get behind the private Member’s Bill promoted by my hon. Friend the Member for Bristol East.

Animals have the same welfare needs and any attack on them has the same impact on their welfare, regardless of whether they are a domestic pet, a police dog or a wild animal. They all feel pain; they all suffer. The people who harm them all need to feel the full force of the law.

NHS Pensions: Taxation

Jim Cunningham Excerpts

Monday 8th July 2019 Commons Chamber

[Elizabeth Truss]

Yes.

[Mr Jim Cunningham (Coventry South) (Lab)]

Around six weeks ago, I raised this issue with the Prime Minister, who was sitting next to the Chancellor at the time, and I was told that they would come back to me. Since then, nothing has happened, and lots of my constituents—consultants and members of the public—are concerned about the deterioration in the situation at the hospitals. Surely the Chief Secretary or the Chancellor could sit down together with the Secretary of State for Health and Social Care and thrash this out.

[Elizabeth Truss]

I will make sure this is immediately drawn to the attention of the Prime Minister.

National Insurance Contributions (Termination Awards and Sporting Testimonials) Bill

Jim Cunningham Excerpts

3rd reading: House of Commons & Programme motion: House of Commons & Report stage: House of Commons
Monday 10th June 2019 Commons Chamber

[Peter Dowd]

Although he is not here, may I welcome the new Financial Secretary to the Treasury to his post, and congratulate his predecessor, the new Leader of the House, on his elevation to the Cabinet? I understand that the elevation was short-lived, as he realised that he still had to sit across a table—a Cabinet table rather than a Treasury one—from the Chief Secretary. I expect that if some of his colleagues get their way on proroguing Parliament, he may well even be put on a zero-hours contract, because there would be little else to do.

I have previously stated, both on Second Reading and in Committee, when we had wide ranging discussions on the Bill, as we always do with financial Bills—we talk about a whole range of issues and get into all sorts of discussions about various things, even quoting Cicero and going into all sorts of Greek mythology; it is helpful to broaden our horizons when dealing with these Bills—that the Bill is a pale imitation of the great national insurance reforms that the Government promised to enact just a few years ago, in those halcyon days of the 2010 to 2015 Tory Government, who were going to conquer the world and who proposed massive changes to national insurance contributions. Of course, in effect, nothing came of that. The former Chancellor went west and the proposals lay around gathering a little bit of dust, then more dust and then even more dust on the shelves at the Treasury.

As we all know, national insurance is paid by employees, employers and the self-employed, and it is used to fund a variety of contributory benefits such as the state pension, contributory employment and support allowance, maternity allowance and other benefits. In 2018-19, national insurance contributions raised around £137 billion, which is more than was raised by VAT but less than was raised by income tax, at £132 billion and £192 billion respectively. National insurance contributions are clearly a substantial revenue raiser for the Exchequer.

Along with the Prime Minister, the Government’s credibility and all sense of reason in the Tory party, gone are the proposed abolition of class 2 national insurance contributions and the planned expansion of class 4 national insurance contributions, along with the Government’s parliamentary majority to boot. Those proposals have been replaced with these meagre clauses, which masquerade as a real Bill. They will introduce a limited class 1A employer charge on termination payments over £30,000 and on payments over £100,000 related to non-contractual sporting testimonials.

While we are on the subject of sport—loosely—I reaffirm my congratulations to Liverpool football club on their win, albeit as an Everton supporter. As I said in Committee, I can say that in the clear knowledge that it probably will not get much further than the people present, so I will not be criticised by my Everton-supporting friends and family. Saying it here tonight makes it more or less a secret, in essence.

Consideration of the Bill’s remaining stages has been brought forward to pack out an empty parliamentary timetable. The timing could not be more fortuitous, as we enter the first official week of the long-running Tory leadership campaign. It is a burden for everybody else to have to put up with it, and I am sure it is a burden for those on the Government Front Bench and Back Benches, too. I suspect that they will not say that, but I will say it for them.

There is a backdrop to this debate. We have already seen a sneak preview of the chaos and dysfunction that any of the hard Tory Brexiteers who are running for Prime Minister will soon unleash on the country. The right hon. Member for Tatton (Ms McVey) has suggested purging the Cabinet of remain-supporting MPs. The frontrunner, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), is flirting with the idea of the UK going AWOL with around £48 billion in October. That figure is almost as big as his ego. The Foreign Secretary, the right hon. Member for South West Surrey (Mr Hunt), has more positions on Brexit than the “Kama Sutra”.

Meanwhile, the right hon. Member for Esher and Walton (Dominic Raab) is threatening to put two fingers up to parliamentary sovereignty and prorogue the House, denying the elected representatives in this Chamber a say over the biggest issue facing this country since the second world war, and perhaps beyond that—I do thank you for your indulgence, Mr Deputy Speaker. So much for bringing back control. To what—an empty, locked Chamber? It is important, because had Parliament been prorogued, would we have been able to debate this Bill on national insurance contributions? No, we would not. Where would all the money go? We would not have it. We are here making the case for why Parliament should not be prorogued, but more importantly we are making the case because we have to get the cash in. All this is taking place while our European partners look on in polite bemusement, along with the rest of the country, as we are subjected to a month-long Conservative party psychodrama. That context is important to the matter at hand.

The Opposition continue to have concerns about how the new class 1A national insurance charge will impact on the level of termination awards that workers receive, particularly in respect of women, employees over 50 and pregnant women. Opposition new clauses 1 and 5 would require Ministers to adequately address our concerns. The tax and national insurance treatment of termination payments remains a sensitive topic to workers and employers alike. Employees facing redundancy often consider this final payment as an evaluation of the work that they have done for their employer, so it is psychologically important for them. As I have previously said, termination payments therefore have an emotional and a financial significance, and the amount awarded is often determined by painstaking and careful negotiations between managers and trade union representatives.

The Government’s rationale for the change apparently remains one of simplification: they cite many employers’ previous confusion as to what parts of a termination payment might qualify for exemption from tax and national insurance. However, Ministers have also cited the opportunity for well-advised employers to avoid paying the right amount of tax and national insurance on termination payments as justification for wider reform. It is important to repeat that that seems to have been given as justification for wider reform. We do not necessarily accept that justification. Neither the Office of Tax Simplification nor Treasury Ministers have been able to provide figures on the number of employers who have taken advantage of the existing loophole or on the amount that has been lost to the Exchequer as a result. That is important, because if a case is going to be made for something, the least we could be given is a little evidence—a few facts and statistics—to back up the assertion.

[Mr Jim Cunningham (Coventry South) (Lab)]

The best way to describe it is as a stealth tax on people who are going to be unemployed for quite a long period. Women are going to be under the cosh. We have to remind ourselves that women seem to be paying the price. We have only to consider the long, drawn-out saga of the Women Against State Pension Inequality, who cannot even get justice out of this Government.

[Peter Dowd]

My hon. Friend makes a valid point. Assessments of the impact of austerity have found that 86% of the burden has fallen on women. The figures indicate that women are the most badly affected by austerity, and all this Bill does is overlay that and up the ante even further. I thank my hon. Friend for making that point, because in effect it is a stealth tax. That is what it amounts to: a stealth tax with no evidence base whatever to support it, other than the Government just wanting somehow to get more and more cash in because of their failed economic policies.

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[Peter Dowd]

The hon. Gentleman can point that out to me as much as he wants. I admitted, or acknowledged—call it what you will—that even if it is not a stealth tax, it is a Tory Government putting up taxes. [Interruption.] We agree on that. [Interruption.] I am happy to have that conversation with him outside the Chamber, if need be, so that I do not get into trouble with either you, Mr Deputy Speaker, or those Members on the packed Benches. The bottom line is that what we have here is quite clearly and unambiguously an admission from the Tories that they are putting taxes up. That is what it comes down to. [Interruption.] My hon. Friend the Member for Coventry South (Mr Cunningham) says from a sedentary position that they do so in a sneaky way.

Ministers have claimed many times that they have a desire to simplify tax. They talk all the time about simplification of tax. They have an Office for Tax Simplification. They institutionalised it. Has there been much simplification? Not as far as I am concerned. There certainly has not been any simplification of national insurance contributions. Therefore, despite the many claims from Ministers that they have a desire to simplify the tax and national insurance treatment of termination awards, the Chartered Institute of Taxation and other tax experts have raised concerns about the lack of information in the Bill as to how this new class 1A charge will be collected. In their rush to try to get more money into the Exchequer, they have not even decided or worked out how they are going to collect it.

[Mr Jim Cunningham]

I thank my hon. Friend for giving way. I made a remark about sneaky tax from a sedentary position. I have a good example of why we should not trust what those on the Government Front Bench say: in their manifesto, they pledged to retain the free television licence for old-age pensioners. What did they do? They passed it on to the BBC. We have all seen the announcement today. How can we trust anything they say?

[Peter Dowd]

That is another stealth tax—the television licence. The fundamental point is important. It goes to the heart of this debate. This is a rise in taxes. We are not quite sure how it is going to be collected, but it is going to be collected from some of the most vulnerable people. Currently, Ministers plan to leave it up to secondary legislation to determine how it is going to be collected. That is another important point. This has happened so many times with this Government—no amendments to the law in relation to the Finance Bill. Again, this goes to the heart of the matter. The Government bring forward legislation, proposals and policies to this Chamber. They try to push something through, but they do not tell us how and when they are going to do it. But they are going to do it. We have no opportunity to challenge them because they close down the debate. They have done so on the last four Finance Bills, I think—I stand to be corrected on that one.

Currently, Ministers plan to leave that up to secondary legislation, which is clearly a break from normal practice. Furthermore, rather than simplifying the national insurance treatment of termination awards, they look set to confuse employers even more. Therefore, a fundamental attempt apparently to simplify these proposals has actually not simplified them. If the raison d’être for this is simplification —that is what we have been told—the Government are that incompetent that they cannot even get that right, because it is not simplifying matters at all.

The measure will also add additional administrative burdens on HMRC at a time when it continues to be hamstrung by the Government’s disastrous reorganisation of its estate, the introduction of Making Tax Digital and the preparations for a no-deal Brexit. These specific proposals are being introduced when HMRC is in flux, but do the Government care? They do not care at all. So what is the so-called rationale for the introduction of this new national insurance contribution charge on termination awards, if not to make things more confusing for employers? Another factor has been thrown in: this is a tax avoidance measure, apparently. [Interruption.] The Minister says that he is not sure about that. Read some of the documentation.

Funeral Plans: Regulation

Jim Cunningham Excerpts

Wednesday 5th June 2019 Commons Chamber

[Neil Gray]

I thank the hon. Lady, who is a doughty campaigner in this area, for her intervention. It should go without saying that she has done a great deal, particularly on children’s funerals, and I commend her for her work. She is absolutely right. There is a potential gap, with the two or three-year transition period the Government propose, before moving to FCA regulation. I will turn to my concerns about that in due course, but she is absolutely right to raise the issue and I look forward to continuing to work with her in this area to try to drive the changes we want.

I am pleased that my Bill proposal, which was intended to spark debate and action for change, has started that progress. I commend the Minister in particular. I am grateful that the Government are taking this issue seriously enough to consult on funeral plan regulation and are now proposing moving to a model of FCA regulation. A consultation is now under way until August on what the Government now propose to do in this area. I am grateful to the Minister and to some of his colleagues who also wish to see change and have supported my work, such as the hon. Member for Southend West (Sir David Amess), but I do have some concerns about the direction of travel that I am sure the Minister will be able to answer.

There should be some clear benefits to moving to FCA regulation, such as access to the Financial Ombudsman Service for those who have complaints about the products they have received, but it is not yet clear whether consumers who have a dispute over a funeral plan product will be able to access the financial services compensation scheme.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate the hon. Gentleman on securing the debate and, more importantly, on his Bill. Has he noticed how funeral costs and some of the practices that go on in the industry are now being highlighted in the press? Does he not agree that there should be a good look at costs in more depth? Very often, bereaved families feel ashamed to raise the question of cost, because there is the matter of pride.

[Neil Gray]

I absolutely agree with the hon. Gentleman, who raises an important issue. He might be aware that the Scottish Government are doing some work in this regard to set up a funerals regulator, part of which will be looking at the practices of funeral directors. I believe—I will turn to this in my speech—that that is probably what the Competition and Markets Authority investigation will be looking at, too. It is also right to acknowledge that many family-run funeral directors are linchpins of their communities. Some take on great burdens, acknowledging the hardships their customers are going through. It is right that we acknowledge that, while also accepting that there are some in the market who are not perhaps operating to the qualities that we would hope and expect to see.

On the financial services compensation scheme issue, I hope the Minister will be able to clarify in his response whether he envisages this particular model of regulation covering the financial services compensation scheme.

I am also concerned that although the Government appear very keen to move forward to a different regulatory model, as they have accepted there is a problem, they have not, in their own work, quantified the consumer detriment in the market. There was clearly a problem identified by Citizens Advice Scotland researchers in 2016, but to what extent has that problem been improved or exacerbated? The Government need to do a bit more work to update the findings of the Citizens Advice Scotland report and also the “Fairer Finance” report that followed my 10-minute rule Bill. It is clear that there are still issues in the market that need to be addressed, but I think the Minister must agree that it is for the Government now to quantify what they are so that the FCA is clear as to its remit and focus.

There also needs to be greater clarity on the likely three-year wait for changes to take effect. First of all, what happens with regulation in the interim, as there will be no incentive for those currently signed up to the voluntary scheme to carry on engaging? There certainly will not be an incentive for those outside FPA regulation—those we really wish to target in whatever model of regulation we bring forward—to come on board. What assurances can the Minister give about what the market will look like and how it will behave during the three-year wait until the FCA fully takes up responsibility for the market? Will the Minister say how many firms will be regulated under the scheme? The Treasury’s consultation document accepts that there will be consolidation in the market, as my hon. Friend the Member for Livingston (Hannah Bardell) suggested. In other words, there will be fewer companies offering these services because of the burden of FCA regulation. Has the Minister assessed whether he feels this model would continue to provide appropriate competition in the market for the consumer? Of course, the Competition and Markets Authority has been critical of some bigger funeral companies for inflated funeral costs, yet this move may give an even bigger market share to those same companies.

I do not have a crystal ball or any insider knowledge, but I fully expect the CMA to follow the Scottish Government’s lead by recommending a funeral regulator, which will look after the funeral director industry and probably some of the at-need market. That means we will be left either with a bit of a crossover in regulation or blurred lines as to who will have overall regulatory responsibility. Perhaps the Minister can clarify how he sees the regulatory environment working when both these areas are established.

In conclusion, for the last three years I have been working across this House, with the funeral plan market and with campaigning organisations to ensure that consumers are protected from being ripped off when they are perhaps at their most vulnerable. I want to see a system of regulation that stops the outrageous practices that we have had reports of in recent years, and I want to see consumer confidence so that there is a greater uptake of funeral plans to avoid the growing problem of funeral poverty.

I am greatly heartened by the Government’s acknowledging that they share my concerns and have effectively taken on my ten-minute rule Bill. I thank the Minister and his officials for what they have done to date, but I hope he will also accept that there is a great deal of work still to do and many questions to answer. Above all else, we have to ensure that the regulatory system in place for this critical industry gets it right for consumers. That means ensuring that we have consumer protection from cold calling, greater transparency in pricing, greater transparency in the products on offer and a better link between some plan providers and the funeral directors. There needs to be greater recourse to pursue complaints and to be compensated when things go wrong.

I am not particularly bothered about who from which body has responsibility for the regulation at the end of the day. I just want to make sure that it is right and that it stops people being ripped off and funeral poverty being exacerbated. We must therefore look at where problems remain with similar issues in the over-50s plan market, which is under FCA regulation, and learn lessons for funeral plan regulation.

Thank you again, Mr Speaker, for granting this debate. I want to know from the Minister that the FCA will always see this area as a priority and that he is alive to the concerns I have expressed this evening, while accepting my thanks for pursuing this matter in the way he has.

Oral Answers to Questions

Jim Cunningham Excerpts

Tuesday 21st May 2019 Commons Chamber

[Mel Stride]

IR35 is often raised in the context of the loan charge, but it is a completely unrelated matter. IR35 is about making sure that those who are effectively employed by other businesses are treated as employees for tax purposes, and that is only right and proper. The loan charge is about putting right the situation of this aggressive tax avoidance.

[Mr Jim Cunningham (Coventry South) (Lab)]

21. Given that nurses and cleaners—the lower-paid—can be adversely affected by this and distinguished from those who are deliberately tax avoiding, will the Minister not agree at least to extend the payback period rather than people having to go through the rigmarole with the tax man?

[Mel Stride]

The hon. Gentleman makes a very important point, which is that, when it comes to paying the money that is due, HMRC has a duty to be proportionate and to make sure that appropriate arrangements are in place. There is no maximum limit for the time over which repayments can occur—there are often arrangements that come into place that are well in excess of 10 years. HMRC will continue to approach these matters on that basis.

Full-time Social Action

Jim Cunningham Excerpts

Wednesday 8th May 2019 Commons Chamber

[Ben Bradley]

I thank the hon. Gentleman for that intervention and it is great to be able to recognise another group doing good work volunteering with social action. I agree that we can do more and I hope to touch on some of the opportunities as I progress.

[Mr Jim Cunningham (Coventry South) (Lab)]

The groups the hon. Gentleman has mentioned are to be commended. I have come across young people who help those with dementia—there is an interesting project in Coventry—and people who are blind. I am sure the hon. Gentleman will agree that we can do more to reinstate youth clubs, which played a vital role in the past. Does he agree that the Government should have another look at that, because that might offer a way forward in addressing knife crime for example?

[Ben Bradley]

I thank the hon. Gentleman for those examples and agree that youth work is important; I am very involved in that through the National Youth Agency, which I will touch on later.

Full-time volunteers help in a wide range of projects for charities such as City Year UK, Volunteering Matters, The Scout Association and the Wildlife Trusts. These include schemes to support disadvantaged children to get better grades at school, projects helping homeless people and all sorts of environmental projects as well as those we have heard about from colleagues. There is a huge range of options to suit different interests and each project ensures that the volunteer learns and develops skills.

However, despite a proud heritage of volunteering and community action in the UK, we are behind some other countries in terms of realising the full benefits of this. I want to touch on some examples of where this works well before looking at specific issues, including the impact on employability and barriers in our current legislation.

Countries such as Germany, France and the USA have recognised the value of youth full-time social action by creating national programmes for young adults which attract upwards of 100,000 participants per year. France set up a Service Civique programme in 2010; just eight years later it was attracting 140,000 participants and it seeks to expand even more this year.

These initiatives can attract such significant numbers of young people because of the quality of the offer. The programmes come with a guarantee of excellence, and volunteers can choose a full-time project in line with their interests and undertake work on the project for up to a year. In return they receive financial support so they can stay involved and incentives to complete the programmes. These rewards mean that even young people from disadvantaged backgrounds can participate.

In America the AmeriCorps programme YouthBuild has had notable success in engaging volunteers from low-income backgrounds. In 2014 a report indicated that 93% of volunteers who entered the programme did not have a high school credential. As I have often said before, university education is not the right path for all young people and I have concerns that we are pushing too many young people down an academic route. I would like to see full-time social action as a possible path into work for young people and would like to see it recognised by the Government as an opportunity to bridge the gap between formal education and employment.

These initiatives provide value for money for the Governments that invest in them. Evidence from the USA’s AmeriCorps programme shows that it returns $4 for $1 invested.

Evidence also shows that these projects improve youth employment and allow young people to explore different career paths while gaining experience and skills. Our Government have recognised the value of that on-the-job learning. Apprenticeships are a brilliant way to gain valuable experience, but volunteering is another path which offers young people the chance to learn skills and try different things.

Social action projects build resilience, improve communication skills, can be really creative and involve teamwork. These are the crucial skills that employers are looking for and which are required even in entry-level jobs. Particularly for those who have struggled with the academic side of school and left education with few qualifications, having work experience in a real-world setting can be genuinely life-changing.

City Year UK is a full-time social action charity that recruits 18 to 25-year-olds. Its programmes are proven to improve work-readiness and the employability of volunteers. Its latest report shows that 90% of alumni were in employment, education or training within three months of finishing the programme.

Under this Government youth unemployment has dropped substantially, including locally in my constituency of Mansfield. There are over 439,000 fewer young people out of work than in 2010, which is great as it means more young people have secured a job, but there is still more to do and I believe that social action is a good way to support those young people who are struggling to find work.

Having a recognisable Government-backed programme in place, rather than the current piecemeal approach, would ensure that businesses understand the experience and skills that young people had gained from their social action project, and it would become a recognisable achievement. While it is good that the Department for Work and Pensions recognises that volunteering can help people develop vital skills for work, I believe we could offer more support for people on full-time social action projects on a fixed term. Currently, full-time volunteers in England are categorised as not in education, employment or training—known as NEETs. In other words, they are seen as part of a problem that needs to be fixed. I believe it is time that the Government changed this status and did more to recognise the benefits of social action programmes. This is where simple changes could have a big effect. Even if we cannot offer financial support, we could remove barriers to participation that currently exist within our welfare system.

Unemployed people claiming jobseeker’s allowance or universal credit are required to spend a certain number of hours per week searching for work. While outside these hours claimants can spend time volunteering, the system could be more flexible for those engaged in worthwhile community projects. Ultimately the volunteering they do can contribute much more than the cost of benefits in many cases.

Universal credit claimants can have their required weekly work-search time, which is usually 35 hours, reduced by half to accommodate voluntary work, but it is still difficult to fit a full-time social action project around 18 hours of jobseeking. That will not be right for everyone: a lot of people want to get straight in to work, and some need to be pushed to put the time and effort into finding work. There is an opportunity to support others, particularly young people, through programmes like this and to deliver positive long-term outcomes for communities and individuals. Simply adding another category to say that they are volunteering and doing something productive and positive rather than being NEET would be a good step forward.

Under current guidelines, the charities that young people volunteer for are also unable to offer training beyond the essentials required for their social action project. That means that any extra training around employability or additional support for the young volunteers is not allowed, which hinders the effectiveness of those programmes. We could easily relax some of those rules at no cost, to help charities to support their volunteers and remove some of the barriers to establishing full-time social action programmes with a clear element of the programme that focuses on employability.

In December 2016, the Government launched the full-time social action review, which was chaired by former chief executive of National Grid, Steve Holliday. Mr Holliday published his findings in January 2018, and they acknowledged that youth full-time social action plays an important role in meeting many governmental priorities including social mobility, inclusion, careers education and skills development. The review called on the Government to better support, encourage and recognise full-time volunteers. It made several recommendations on how to achieve this, but I am keen to focus on what I believe is the most significant of the recommendations, which is to introduce a full-time social action pilot scheme for young people. The creation of a Government-backed pilot would be a huge step forward, and such a scheme might ultimately grow to emulate initiatives such as those in Germany, France and the USA. A Government -backed scheme would help to provide a new pool of easily identifiable, work-ready young people with real-world experience and a renewed sense of civic duty.

This kind of thing has regularly been discussed in Parliament. I have worked closely with the National Youth Agency as part of my work on the all-party parliamentary group for youth affairs and I am pleased that it supports Volunteering Matters in its call for HMRC to recognise full-time volunteering through awarding full national insurance credits. This would mean that volunteers did not lose out because they chose to volunteer and give back to their communities. I hope that the Government might also consider opportunities to support full-time social action using the Dormant Assets Youth Organisation, which has already committed to invest in programmes that help young people facing barriers to work. I would argue that a full-time social action programme would fit that remit perfectly. We also need to build on the APPG’s recommendations for investment in a youth workforce of professional youth workers and skilled volunteers to support social action projects and provide leadership and mentors for young people, especially those from disadvantaged backgrounds. The National Youth Agency’s youth covenant is also worthy of support and recognition.

I am pleased that the Government support several programmes that enable volunteering opportunities, including the #iwill Fund, which aims to create more opportunities for young people from disadvantaged backgrounds to volunteer, and the Connected Communities Innovation Fund, which aims to tackle barriers to volunteering and mobilise more people. These are important steps, but it is time to look again at the benefits of full-time volunteering.

Polling conducted by Censuswide on behalf of City Year UK in 2016 found that over 90% of those polled thought that a recognised programme of full-time voluntary civilian national service should be on offer for young people in Britain. Over half of the 16 to 25-year-olds polled said that that would definitely be an option for them, and nearly a third would consider signing up for such a programme if it were Government-backed. A programme like that has the potential to build a platform for young people from different regions and socioeconomic backgrounds to serve together side by side for a common purpose while restoring national pride and a sense of duty and service. There is also an opportunity here to work with young people who are disabled or have special educational needs, to offer mentoring and guidance, help in to work where that is possible, and other support that might currently be lacking.

The Government’s civil society strategy commits us to equip young people with

“the ability to help the country tackle its most urgent challenges”

and to ensure that they have the

“opportunities to develop the skills, networks, and resilience that can improve their life chances”

and

“fulfil their potential”.

What better way to achieve this than through a programme of full-time social action? The creation of such a programme would maximise public investment in the National Citizen Service, the Government’s short-term social action programme for 16 and 17-year-olds. The NCS has laid a solid foundation on which to build a more intensive long-term offer. Nearly 100,000 young people engage with the NCS every year. Figures for 2016 show that more than 1,400 young people in Nottinghamshire participated in the programme. I helped to assess and judge some of their community work, working with Notts County FC Football in the Community, and I have met young people in Mansfield who have benefited from the programme. I know that many of them would be interested in full-time opportunities. A national full-time social action programme could ensure that the NCS is not just a one-off intervention, and that it instead creates a lifelong habit of social action.

Interestingly, the UK Government already support full-time social action for young people, but only for those who serve abroad in the International Citizen Service. The Department for International Development has allocated £8.5 million for the International Citizen Service next year, but no money is allocated to those choosing to serve their communities through social action here in the UK. If we could replicate that support so that young people could equally help and volunteer in our public services and good causes here in the UK, that could benefit those young people and their local communities.

If the Government need any further reason to act, an independent report by Pro Bono Economics found that encouraging 10,000 young people to volunteer full-time for a year could earn the UK economy between £28 million to £119 million. A relatively modest investment in a Government-backed programme would pay off quickly, but I hope that colleagues agree that the benefits are far more than simply economic.

Offering, through independent volunteering and education, opportunities for young people to equip themselves with the skills they need to get on in life, and to be responsible for their own progress and their own decisions, is in my view an intrinsically conservative thing to do.

I encourage the Government to consider a pilot scheme, perhaps in a deprived area such as Mansfield—it might be the ideal place to do that—to see what impact full-time social action has on young people’s employability.

I hope that, in her reply, the Minister can provide an update on what the Government are doing to support full-time social action since the publication of their response to the full-time social action review for young people last July.

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Mims Davies)]

I congratulate my hon. Friend the Member for Mansfield (Ben Bradley) on securing the debate. He is a great advocate in this House for the interests of young people. His dedication and enthusiasm in promoting the work of the all-party parliamentary group on youth affairs speaks volumes.

I, too, am on the record speaking of volunteers as my favourite people. Volunteers’ passion and commitment shine through and raise some interesting thoughts cross-Government.

Let me deal with the intervention by the hon. Member for Coventry South (Mr Cunningham)—although he is in discussion at the moment—about youth crime. That is a complex issue, which is often tied to local factors. I have just met the Prime Minister and other Ministers following our summit on youth violence. We are absolutely committed to working on that through a multi-agency public health approach.

I agree with the hon. Member for Wythenshawe and Sale East (Mike Kane) about the value of social action and engagement in and through our schools.

It is worth taking a few moments, given that we have the Chamber to focus on the subject, to look at the broader picture of youth social action and why it is such an important part of our efforts to improve young people’s life chances. In this country, we have a proud record of helping others. It is the cement that binds our communities together. Almost a quarter of the population formally volunteer at least once a month and many more do so informally. As we have heard, social action is about people coming together to help improve the lives of others and solve the problems that are important in their communities. It involves people giving their time in a range of ways—from volunteering and community-owned services to community organising or simple neighbourly acts.

[Mr Jim Cunningham]

Does the Minister agree that many of those projects help young people to find their way forward in life? Often, young people have not quite made up their mind about what they want to do in life. There is therefore value from that point of view. Equally, we must remember that not everybody is academically-minded. People might have good skills but not necessarily be academically good. I sometimes think that we lose track of that when we go on about further education and university education. Volunteering is important and a key to some of the problems that we have with young people on some housing estates, particularly where there are acts of violence, burglaries and so on. The Government could focus on that much more.

[Mims Davies]

I thank the hon. Gentleman for his intervention. I responded earlier about the Government’s focus on the taskforce on serious violence. I also absolutely agree with the earlier point about intergenerational understanding. Volunteering can support our young people, from giving them more opportunities to learn soft skills to gaining that intergenerational understanding, perhaps through soft mentoring. That should be encouraged in all our communities and I am sure that much goes on in our constituencies that we are not aware of, even as MPs. It is vital that we continue to support such activity.

A good example is the dementia friends programme run by the Alzheimer’s Society. The Department for Digital, Culture, Media and Sport ministerial team recently had a refresher about how to support people living with dementia and turn understanding into action. That programme has been very successful, and many people have taken part in it. There are 2.5 million dementia friends working to create an environment in our communities in which people with dementia are able to live well and be cared for.

If we are to renew and refresh the spirit that keeps our communities vibrant, we must keep young people in a central role. It is absolutely vital that we support the latest generation of active and involved citizens, so I am pleased that the Government are developing a new youth charter and are doing broader work to support that activity. Northumbria Healthcare NHS Foundation Trust recently recruited 15 young people to spend time with older people in their own homes, to help combat loneliness. In time, that project will grow to 200 young people. That is just one of the projects supported by the Pears Foundation and the #iwill Fund, which is backed by the Government and the National Lottery Community Fund. As we have heard, social action will help open doors for young people. Young participants will develop essential skills and the tools for work and life that we have been talking about. Such programmes will build their resilience, enhance their wellbeing and, more importantly, help them give back to their community.

In 2017, the National Youth Social Action Survey by Ipsos MORI found that young people who take part in social action have higher life satisfaction, improved job prospects and stronger personal networks. However, it is not the hours that young people spend doing social action that is crucially important to those individuals and our communities, but the quality of the social action and experience. For example, it matters that the social action is part of the community, is focused on a community problem and is shaped and owned by the young people taking part. We heard earlier about the soft skills learned through the experience of mentoring.

The full-time social action review, chaired by Steve Holliday, was an important and extensive piece of work. In total, 180 individuals and organisations were consulted, and 48 pieces of evidence were submitted by charities, businesses, young people and youth sector stakeholders. Roundtables conversations were held for providers, economists and employment and regulation specialists. Vitally, 77 young people also took part in the focus groups. Videos promoting the review reached more than 84,000 young people.

Young people painted a mixed picture of full-time social action opportunities. They found that some experience helped them through a difficult point in their lives and furnished them with new skills for their future. However, some highlighted that barriers prevented them from taking part in full-time opportunities. Important issues were raised, such as the availability of adequate financial support to cover living costs, and the negative implications for social housing, study and wider caring commitments. One person said:

“on balance, it would be a struggle to say it was worth it, by virtue of the short and long-term personal and financial repercussions...I do not regret the time I spent volunteering, but would personally not recommend anyone take a voluntary position unless they have significant financial backing.”

The review also states:

“The evidence demonstrating the impact of full-time social action in contrast with part time social action is currently very limited. Many organisations argue that quality of social action is more important than quantity”.

That last point is very important.

We are aware of the value that full-time volunteering can bring to those who participate. However, devoting limited resources to the expansion and further evaluation of an approach that the extensive review has told us has little additional benefit to other approaches is not the sensible way forward, especially as many of the barriers to full-time volunteering arise out of personal life experiences. The Government, rightly, welcomed the report that acknowledged those issues and, importantly, set out a series of steps to make sure that full-time social action opportunities are more accessible. In our response, we welcomed a number of the recommendations, including the excellent work led by the National Council for Voluntary Organisations to create good practice guidelines for organisations that provide full-time social action opportunities. Importantly, one recommendation in the panel’s report mentioned a proposal for a Government-backed full-time social action pilot, as has been mentioned. That is a well-intentioned proposal, but given the lack of clear evidence and the feedback currently from young people, we do not think there is sufficient evidence for a separate full-time social action fund.

As the House is aware, we back a number of high-quality programmes for our young people, and last year we published the civil society strategy. It sets out an important vision for the next 10 years and shows that there is a vital role that young people can play in tackling challenges and creating a better future in their community through this strategy. Our national flagship policy is the National Citizen Service, which is a programme open to all young people aged 15-17. It is designed to deliver a concentrated programme of positive activities and personal development. Crucially, it includes the opportunity for social action for our young people. I am pleased to say that nearly 500,000 young people, from all social backgrounds, have so far taken part in NCS. Together, they have given more than 12.5 million hours of volunteer time. We also know that NCS graduates give back an additional 6.3 hours of volunteering per month compared with their peers who have not taken part in NCS.

It is also important that the Government listen to the views of young people. We know that young people care deeply about the environment, so as part of the 2019 Year of Green Action NCS has been asked to, and will, directly engage young people in many environmental projects, including Clean Air Day. NCS is especially good at involving a higher proportion of young people with special educational needs. For example, in 2018, 5% of NCS participants had special educational needs; the figure for the comparable population was 2%.

As we heard earlier, we are also supporting young people to participate in social action by backing the #iwill campaign, which is run by Step Up To Serve. The campaign involves crucial work with businesses, as well as with philanthropists, the voluntary sector and local institutions, to make social action part of life for our 10-year-olds up to 20-year-olds. In support of that work, and in partnership with the National Lottery Community Fund, we are working with other funders to create new opportunities for young people to participate in social action. The £40 million #iwill Fund has to date partnered with 20 match funders, and it is estimated that 650,000 new opportunities will come forward for young people.

As I said earlier, social action is not just important for young people; we have heard about the importance of the civil society strategy, in which the Government have set out the importance of mobilising the time and talents of people of all ages. The initiatives are wide and reflect the needs of communities. For example, we are working to train 3,500 more people in community organising via our place-based social action programme. We are also working with the National Lottery Community Fund to help local areas to create a shared vision to address local priorities and to shape volunteering, co-designed services and social action.

Let me pick up on my hon. Friend’s point about using dormant assets. The Department is absolutely doing that and is shaping the next stage of our strategy in respect of interventions for young people through the use of such assets. It is absolutely right that we do that.

In conclusion, we are aware of the huge benefits that social action can bring to young people. Although we are not looking to privilege a particular volunteering route, social action will be an essential part of our thinking as we examine ways in which we support our young people and their futures.

Question put and agreed to.

Wild Animals in Circuses (No. 2) Bill

Jim Cunningham Excerpts

2nd reading: House of Commons & Programme motion: House of Commons
Tuesday 7th May 2019 Commons Chamber

[David Rutley]

We have worked closely with the BVA and I am really pleased that it has welcomed the steps we have taken. I agree that it has put forward some compelling arguments and I am pleased it recognises we are able to deliver on them. Again, we are seeing collaborative working relationships across Parliament with the welfare groups to get the proposed legislation through. It has taken time—more time than any of us would have liked—but it is now moving forward.

[Mr Jim Cunningham (Coventry South) (Lab)]

The Minister said that 95% of people responded to the previous Government’s consultation. What does that mean in numbers, so the House can have a good idea of how many people were actually consulted?

[David Rutley]

That is a fantastic question—a terrific question—which I know the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Suffolk Coastal (Dr Coffey), with her encyclopaedic knowledge, will be answering in a little time. It will be worth waiting for. I know the hon. Gentleman asked me the question, but we will get that answer in just a little while. Joking aside, the important point was that 95% of respondents wanted the ban. That is the key point. Society has moved on and this is not appropriate activity.

In terms of the next milestone, I have already talked about the important Backbench Business that was put through unopposed by my hon. Friend the Member for The Wrekin, calling on the Government to introduce a ban on the use of wild animals in travelling circuses. In response, in March 2012, the Government announced they would pursue a ban, with licensing regulations introduced as a temporary measure. In April 2013, the Government published the draft Wild Animals in Circuses Bill for pre-legislative scrutiny, leading to subsequent attempts, by the hon. Members mentioned in my introduction, to introduce the Bill via the private Members’ Bill route.

There are now only 19 wild animals left in travelling circuses. That is a low number, but the BVA captured the importance of the Bill when it said that a ban is emblematic of how we should be treating animals in the modern world.