Student Loans: Misleading Practices

Debate between Lord Ahmad of Wimbledon and Lord Elystan-Morgan

Thursday 3rd July 2014 Lords Chamber

[Lord Ahmad of Wimbledon]

On the issue of criminal liability, the loans are, first and foremost, in two formats: mortgage-based or mortgage-style loans, which are no longer available; and those which are currently issued, which do not fall within the remit of the Consumer Credit Act. That said, we are currently taking appropriate advice to see whether there are any matters that need to be looked at in this way. Again, I assure the House that if such matters need to be brought to light in the House, appropriate action will be taken either through a Statement or, I am sure, through future Questions tabled in this regard.

[Lord Elystan-Morgan (CB)]

Is there not one feature that Wonga and the Student Loans Company hold in common—that they hold licences under statutory regulation? The House was told a few days ago that, in respect of Wonga, there will be a careful examination of its capacity to hold properly such a licence. Will the same be done in relation to student loans? In asking this question, I declare an interest as a former president of a Welsh university.

[Lord Ahmad of Wimbledon]

My understanding is that, in the decision taken at the time under the previous Administration, appropriate advice was followed and decisions were taken in the light of the industry practice. I hear what the noble Lord said. As I said, however, the key difference between Wonga and the Student Loans Company is that Smith Lawson was registered as a trading name with the IPO. It is a key distinction. In the case of Wonga and some of the companies being used, as I understand it, that was not the case.

Female Genital Mutilation

Debate between Lord Ahmad of Wimbledon and Lord Elystan-Morgan

Wednesday 12th February 2014 Lords Chamber

[Lord Elystan-Morgan (CB)]

While I appreciate that a whole range of initiatives is relevant in this matter, is there any reason why in relation to medical personnel and teachers there should not be the same absolute requirement and obligation to detect and report, as there is in the case of abuse of children?

[Lord Ahmad of Wimbledon]

Again, I agree with the noble Lord. As he may be aware, on 6 February my honourable friend Jane Ellison announced that it is now incumbent on every NHS trust to report and share evidence of such practice. I also know that my right honourable friend Michael Gove, the Education Secretary, is meeting campaigners in this regard to discuss whether communications across schools should perhaps be looked at and revised, but that will be subject to the outcome of that meeting.

Legal Aid

Debate between Lord Ahmad of Wimbledon and Lord Elystan-Morgan

Wednesday 8th January 2014 Lords Chamber

[Lord Ahmad of Wimbledon]

I repeat my assurance to noble Lords that the Government continue to consult. Indeed, we have just had close to 2,000 responses to the latest consultation on legal aid. As part of those discussions, I am sure that we will take on board the noble Lord’s comment, which seems a very sensible suggestion.

[Lord Elystan-Morgan (CB)]

My Lords, does the Minister accept that over the past few years when there have been discussions concerning cuts in legal aid on a broad basis, the Government have accepted that there are massive downstream costs which greatly erode what otherwise might seem to be an attractive saving? Can the Minister tell the House what surveys have been made of such downstream costs and what the results of those surveys are, and, in the event that such surveys were not made, how any Government could have been so monumentally imprudent as to jump into the dark in such a situation?

[Lord Ahmad of Wimbledon]

My Lords, I am afraid that I do not agree with the noble Lord. This is not a jump into the dark; it is a recognition of the current situation that the Government face across the board and across every department. We are seeking to focus legal aid spending on those who most need it. Spending on legal aid in the UK amounts to about £39 per head. I reiterate that one should look at some of the figures, even making international comparisons. Compared with like-for-like systems—for example, New Zealand at £18, Canada at £10 and Ireland, next door to us, at £20 per head—our legal system will, after the efficiencies are made, still remain one of the best in the world.

Probation Services: Outsourcing

Debate between Lord Ahmad of Wimbledon and Lord Elystan-Morgan

Thursday 21st March 2013 Lords Chamber

[Lord Ahmad of Wimbledon]

My noble friend raises a very important point. If we look at reoffending generally, 50% of offenders who serve a 12-month sentence still go on to reoffend. Currently, as I have already alluded to, the recall figure is in excess of 16,000, of whom 5,000 represent the 85,000 or so of the prison population, which is about 5%. No, it is not good enough, but we believe that the Transforming Rehabilitation programme that we have put forward, the consultation on which, as I said, closed on 22 February, will provide a practical way of addressing reoffending. It costs us, as an economy and as a society, very heavily.

[Lord Elystan-Morgan]

Does the Minister appreciate that the recall of a prisoner is a quasi-judicial act, at the moment vested by law in the probation service? Henceforth, when this scheme operates, who will be exercising that power of recall, by what authority will it be exercised and what training will be given to that person to discharge that not uncomplicated task?

[Lord Ahmad of Wimbledon]

First and foremost, public safety will not be compromised in any sense. What we are putting forward in no way jeopardises that. As far as recall is concerned, once we have completed this particular consultation exercise, we will look at the concerns which have been raised. I will write to the noble Lord, detailing some of the specific proposals on that point.