(6 years, 2 months ago)
Commons ChamberWhile I accept that funding is much higher than it was in 2010—no doubt the Minister for School Standards will set that out—I also agree that there are increasing cost pressures, but I will make that argument in a moment.
I am full of admiration for my right hon. Friend the Health Secretary, who has successfully made the case for a longer-term vision for health and social care. I am convinced that his longevity has been a significant contributing factor and can only regret the fact that we have had a higher turnover in Education Secretaries in recent years. However, I am sure that my right hon. Friend the Member for East Hampshire (Damian Hinds) will, given the opportunity, prove to be an advocate for the public services that his Department oversees and funds.
Without wanting to stretch the scope of the debate too far, I would like to talk a little about the financial health of the school system, of nurseries and of further education and skills. While all the evidence tells us that over the long term, in comparison with relevant international comparators, schools in England are relatively well funded, it is unarguably the case that rising cost pressures have not been matched by the sort of investment that would allow them to be met without impacting upon the quality and delivery of education in our schools. My right hon. Friend the Member for Putney (Justine Greening) was absolutely right last autumn to redirect £1.3 billion of public funds from her own Department’s budget to the frontline and raise the so-called floor in the national funding formula.
Despite what the right hon. Gentleman says about the Government’s claim to have put £1.5 billion back into the system through the new formula, I have gone around schools in Coventry, and they are still just under £300 per head short—in other words, they are still facing cuts. He talks about further education, which has seen cuts of about 27%. How does that affect the quality of apprenticeships, for example?
If the hon. Gentleman will allow me, I will come on to those points later, and if he does not feel that I have responded to them, I would be happy for him to intervene again.
In truth, the £1.3 billion should never have been necessary. While the introduction of a national funding formula is an entirely logical and necessary process of structural reform, for many schools the question is one of sufficiency just as much as of equity. The concept of fair funding may, I fear, be just too subjective to be delivered, so I want to see a change in the debate in this Chamber and elsewhere about school funding. The two supposedly competing accounts—one from the Conservative side of the House about record levels of overall investment going into schools, and the counter-argument that schools face real-terms reductions in per pupil funding—are both true, partly because there are simply more pupils in the system. We badly need to accept that reality, and move towards a practical solution not just for schools, but for further education, which has, without any sense or logic, been chronically underfunded for many years.
(6 years, 4 months ago)
Commons ChamberI am sure that the right hon. Gentleman knows as well as I do what it means when we talk about further education. For example, in Coventry there have been 27% cuts to further education budgets. What impact does that have on apprenticeships? More importantly, if we take that further and look at university education, UCU is in dispute with the Coventry University because it cannot get recognition. To come back to the point, it cannot get recognition in further education or in university education.
It is true that for a number of years FE funding was neglected. It has been stabilised, and I welcome the £500 million extra announced by the Government for the technical education reforms in a recent Budget, but further education needs a lot more funding. People say that it is the Cinderella sector, but I say that Cinderella became a princess and we should banish the ugly sisters of snobbery and intolerance.
(6 years, 7 months ago)
Commons ChamberThe right hon. Gentleman is exactly right. Too often, these charges are imposed without any consultation, or without fair consultation, and they hit the most vulnerable. He will hear later in my remarks that I completely agree with him.
I will not take too many interventions, but I would be honoured to take one from the hon. Gentleman.
I agree with the right hon. Member for Kingston and Surbiton (Sir Edward Davey). A lot of the hospital charges are part of private finance initiatives, and he is right that the Secretary of State or the Minister responsible should now be looking at eliminating those charges. We could argue that they are a tax on illness.
That is the sad thing. Many private companies are making profits from the taxpayer and the most vulnerable people in our society. That must stop. The PFI things that have happened under Governments of both main parties have caused huge amounts of problems to many people, particularly when they park at hospitals up and down the country.
There is still a postcode lottery on car parking charges; different hospital trusts set wildly different fees. The core principle of the NHS is to provide free healthcare for all at the point of access but the charges are a stealth tax on drivers using the health service. The parking charges are the bane of people’s lives. No one goes to hospital out of choice; they go because they have to. No one chooses to be ill, and we rely on our doctors and nurses to look after us. I urge the Health Secretary and the Minister to take urgent action to end this social injustice once and for all, and to introduce substantive legislation to ensure hospitals scrap their parking charges.
(7 years, 5 months ago)
Commons ChamberIt is essential that we support learners while they study if we are to grow the number of skilled workers that the economy needs. The Government will introduce maintenance loans for learners studying higher-level technical qualifications at level 4 at national colleges and the new institutes of technology from the 2019-20 academic year. Maintenance loans will be available for the first time for both full-time and part-time higher education distance learners in the same year, subject to satisfactory controls being in place.
Does the Minister agree with the Open University that the decision to delay maintenance loans for distance learners will adversely affect disabled students, for whom distance learning is the best option, and those from poorer backgrounds, who need maintenance loans to support them while they study?
I thank the hon. Gentleman for his question. I am very supportive of distance learners and the incredible work of the Open University. We want to offer these maintenance loans, but we want to get this right; we have a duty to ensure that we are providing the right value for money for the public and that the right controls are in place.
(10 years, 6 months ago)
Commons ChamberMy hon. Friend makes a hugely important point, and I suspect that the Minister will have more to say about it. I welcome the fact that the Government are forcing companies to compensate customers, such as his constituent, who have been mis-sold or overcharged. I know that the Department of Energy and Climate Change has asked Energy UK to set up direct debit best practice guidelines.
The problems associated with customers not paying their gas and electricity bills by direct debit have largely been ignored, even though it can end up costing consumers significantly more. Unlike the hon. Member for Ynys Môn, who has known about the problem for some time, I first became aware of it only a few weeks ago. A pensioner in my constituency told me that she had received a letter from Co-operative Energy saying that because she was not paying her bills by direct debit, she would be charged £63 a year extra. I could not believe it—I wondered how on earth such a thing could happen, given that she had gone to the post office religiously to pay on time. I thought, “That is a lot of money”, so on the Monday, I rang up Co-operative Energy and spoke to the general manager, who was very pleasant. He said, “Actually, ours is one of the lowest”. There I was thinking that £63 was a lot of money.
I decided to investigate every single energy company, and the results were shocking. Of the 26 companies that responded, five only allowed their customers to pay by direct debit and 17 charged their customers different rates depending on the method that they used to pay. Only four companies charged their consumers the same whether or not they paid by direct debit. In a euphemism extraordinaire, many of the companies that charged extra said not that they were adding a surcharge but that they were discounting the bills of people who used direct debit, because there were lower costs.
The hon. Gentleman has been a great champion of a lot of energy issues over the past two or three years, for which I pay him tribute.
It strikes me that we must have a good look at how energy companies are structured and at the powers that the regulator has. I am not convinced about the regulator. I do not want to be party political—we are trying to get a consensus tonight—but does the hon. Gentleman share my hope that the Secretary of State for Work and Pensions will examine the motion tonight? There have been strong stories in the press that the Government are going to abolish the winter fuel allowance. I do not know whether that is true or false, but we hope that the message will get through to the Minister responsible in one way or another.
I want more money to go to the poorest pensioners, including the winter fuel allowance. I do not believe that millionaires or people with earnings of more than £100,000 should get winter fuel payments, and I would rather they went to the poorest.
(11 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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That is where the philosophical difference between the right hon. Gentleman and me lies; I believe that we need to move away from a handout society, in which people’s taxes are recycled to hand out to various groups, to a hand-back society, in which people are handed back their own money through the tax system.
Some people on the right, especially in the think-tank world, oppose the 10p tax rate on the grounds that it is not radical enough. They say that it might undermine the case for a flat tax in some future Parliament. The problem with that—again, as the IFS has set out—is that a flat tax would be deeply regressive and it would be hard to defend as fair. While that remains true, a flat tax is unlikely to happen.
For example, the IFS has shown that merging income tax and national insurance contributions to a flat rate would literally take from the poor and give to the rich, unless the state was shrunk to a size that is politically impossible. Where I agree with people on the right, and with thoughtful commentators such as Ryan Bourne from the Centre for Policy Studies, is that the Government must do much more to generate support for broader tax cuts. My point, however, is that surely the best way to achieve that is to show that tax cuts are moral—to use a Blairite phrase, “for the many and not the few”—and that they will help millions of hard-working people, not just millionaires.
I do not have any difficulty with the hon. Gentleman’s proposal that there should be a 10p tax rate; in fact, it was a Labour Government who actually introduced that rate. Regarding a living wage, which the hon. Gentleman alluded to, I understand that there are no proposals—certainly, they would not be put forward by Labour—to legislate for a living wage. It is a voluntary thing, and it is down to employers, in fact, to decide whether to pay it.
The hon. Gentleman also referred to the minimum wage. I can certainly remember in my constituency many years ago that under the previous Conservative Government there was—what was it called? I think that it was called a “family supplement”, or something, for people on low wages. On one occasion, which really led Labour to legislate for a minimum wage—
I will do in a minute. The fact was that in my constituency we had people on £1 an hour. As I say, I have no difficulties with the hon. Gentleman’s proposal, but whatever Government are in power, at the end of the day, the big threat is from the Exchequer. It is the Exchequer that will probably try to torpedo his proposal.
I thank the hon. Gentleman for his intervention. As I said before, I agree fundamentally with the minimum wage; it is a moral right that people are paid a certain wage, and I am glad that my party now supports that, but I have questions about the living wage. First, how do we set it? I believe that it puts enormous burdens on smaller businesses; the big multinationals will be able to deal with it. I do not want it to act as a disincentive to employment, and I believe that the burden of responsibility for the living wage should not be on businesses but on the Government: the Government should reduce taxation.
I hope that the intervention will be shorter this time.
Frankly, if it is voluntary, then it is not forced on small employers. It is the big employers who can pay it.
Of course, if businesses want to pay their employees a living wage, that is all well and good; I would be delighted at that and would have no problem with it whatever.
My hope is that once the threshold reaches £10,000, we will consider bringing back the 10p rate for the lower-paid. Some Liberal Democrats disagree; they have suggested that the best way to help families is to raise the personal allowance even further, to something like £12,500 a year. I absolutely agree the coalition should fulfil its £10,000 commitment, but it would be unwise to raise the personal allowance even further. Everyone should feel that they have a stake in the state, and they should have some stake in the tax system even if they pay only a small amount, because they need to realise that public services are not free and that there is no magic money tree. My fear is that the Liberal Democrats want to pay for their policy, which will cost £14 billion if applied to everyone, by dragging even more workers into the 40p band. That is what has happened historically. The problem is that we will soon have families with not very high wages paying a marginal rate of 40p, and that will include police officers, shop owners, managers and senior nurses in the national health service.
(11 years, 11 months ago)
Commons ChamberI entirely agree with my hon. Friend. The point he makes highlights why it is so important that all of us give evidence to the OFT in order to try to force an inquiry.
I am one of the signatories to the hon. Gentleman’s motion. Indeed, last year I raised the oil price issue as I had been down in Cornwall the year before and I noticed that oil tankers were lined up. I am glad we are going to look into these cartels—if there are cartels—and the fixing of oil prices. More importantly, high oil prices feed through in that they lead to people’s cost of living rising, such as through increased bus fares or food prices because of higher transport costs.
I am grateful to the hon. Gentleman for that intervention, and for supporting the motion. As he rightly says, this affects every man and woman in the country. Those who do not use cars may well travel on buses, and bus fares have gone up because the price of diesel has gone up. He is precisely right, therefore.