Policing and Crime Bill (Seventh sitting)

Debate between Lyn Brown and Lord Beamish

Committee Debate: 7th sitting: House of Commons
Tuesday 12th April 2016 Public Bill Committees

[Mr Jones]

The new clauses are probing. This afternoon we have talked about some of the issues surrounding child exploitation. This is about the support that should be given to the victims of child exploitation. The NSPCC and the Children’s Society have been campaigning very hard to ensure that victims of sexual and physical abuse have access, as a matter of course, to therapeutic services. It is true that these things are costly—we talked about that this morning—but in my experience of talking to organisations that deal with such cases, proper, early intervention, especially with young victims, can save money in the long term, by preventing greater trauma many years later.

New clause 46 says that where police or others receive a disclosure that a child has been sexually exploited or subjected to other forms of child abuse, they should refer them to mental health services. It comes back to the question we asked this morning about whether reference to mental health services is a police function. Yes, it is, in terms of investigating the crime that was committed, but how do we then put the holistic bubble around the victim and support them? We need to ensure that the perpetrator of the abuse is taken to court and dealt with, while making sure that the individual gets the emotional and mental health support that they need. Is that naturally a police issue? Directly, no, it is not, but as the Minister said this morning, it is about how we create a link-up between the police service, the health service and other support services.

I accept that some of the services will be provided not by statutory services but by the voluntary sector. A great organisation in my constituency called the Just for Women Centre works with women who have been victims of domestic violence or abuse. It was very interesting listening to the debate this afternoon about victims coming forward. The spike in Durham has come out of the Savile revelations, but it is not about well-known individuals; the issue in that local group is the number of people who have come forward to report family members who abused them over many years.

There has been huge concentration, nationally, on the more high-profile figures, but in local areas a lot of victims who have never come forward before have now done so and are in need of a huge amount of emotional support. This provision refers to children, but without the support given to many of the women at the Just for Women Centre in Stanley in my constituency, early abuse would have led to other problems. Talking to those individuals, we hear that their problems throughout life stem from the fact that they were abused as youngsters. I commend Durham police for their proactive approach to investigating such cases and ensuring that victims get the proper emotional support.

New clause 47 is about information sharing. It says that local policing bodies shall maintain a duty to disclose information about a child who has been a victim of sexual exploitation to the relevant mental health services. I can hear minds crunching among the civil servants in the room, saying that there are obviously problems about sharing information and so on. I accept that, but if we are to ensure that those young people do not fall through the cracks between our statutory services, some method of getting that information to the services that count needs to be put in place.

I accept that ultimately, victims cannot be forced to accept help, but it must be on offer for them. Many of the women whom I have met who have been supported by the Just for Women Centre in my constituency had years of anguish and torment, the root cause of which was not getting help and assistance when they were young. If we can put in place a system that prevents that for future generations, that early intervention could prevent a lifetime of mental health issues, relationship problems and other things. As I said, these are probing amendments to explore how we can put in place practical support for victims of sexual and physical child abuse.

[Lyn Brown]

New clauses 46 and 47 act on a recommendation made in a joint report by NHS England and the Department of Health in 2013 called “Future in mind”, which argued that we need to ensure that those who have been sexually abused and/or exploited receive a comprehensive assessment and referral to the services that they need, including specialist mental health services.

In 2014, the NSPCC produced a summary of the academic literature on the relationship between childhood sexual abuse and victims’ later mental health. In each instance, the NSPCC offered a conservative estimate of the known impact of one on the other. Despite that effort not to sensationalise, the numbers are truly shocking. Children who are victims of sexual abuse are twice as likely to suffer from depression as those who are not victims. They are three times as likely to attempt suicide, to self-harm or to suffer from post-traumatic stress disorder at some point in their lifetime and twice as likely to become dependent on alcohol, meaning that their physical health as well as their mental health is endangered.

All the evidence shows that the trauma and emotional confusion that follows childhood sexual abuse leaves victims more likely to suffer from poor mental health. We should, as a matter of course, do all we can to prevent that from happening, or at least to ensure that those mental health issues are made easier for victims to manage. That involves high-quality and appropriate mental health treatment and professional emotional counselling. There is evidence, for example, that abuse-specific therapeutic interventions relieve depressive symptoms among victims.

New clause 46 would require police or local authorities to make a referral whenever they receive a disclosure that a child has been the victim of sexual or other abuse. They would have to make a referral even if they do not believe there is enough evidence or grounds to take further legal action. That is important, because the burden of proof necessary for law enforcement to use its full array of powers is obviously higher than the level of suspicion needed for our full safeguarding and health measures to be utilised.

The NSPCC has found that delays between children suffering from traumatic events and receiving treatment lead to exacerbated mental health issues and we know that victims of sexual abuse have often had difficulty in being believed by the professionals charged with their care and protection. Duties to refer are not new to our legal system when dealing with safeguarding measures. For example, some employers must refer an individual to disclosure and barring services whenever an allegation of a sexual or abusive nature is made. The provisions in the new clause would not charge local authorities or the police to carry out the task of diagnosis, which they are not trained to do. It would be a precautionary measure that applied to all those about whom they receive a disclosure, not just those they believe to be suffering from a mental or emotional health issue. It is a sensible proposal, in keeping with established safeguarding practice and the assignment of appropriate professional duties.

The proposals are also well thought out. New clause 47 would put a duty on the police to share information with the relevant mental health service commissioner in their area. I believe that that new clause would work with new clause 46 to create a culture of collaboration between law enforcement, health agencies and local government, which is needed if the victims of child sexual exploitation are to be given the care and support that they need.

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[Mr Kevan Jones]

I thank the Minister for her reply. Discussing these issues is worth while. I know there is an onus on things somehow being about cash, especially in a time of austerity, but I have to say that, if properly implemented, the new clause would save money in the long term as well as help individuals. Nevertheless, I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 51

Suspension of Licences

“(1) Licensing Act 2003 is amended as follows—

(2) After section 171 insert—

“171A Suspension of Licences

(1) A licensing authority may suspend a premises licence, or a club premises certificate if the holder of the licence or certificate has failed to pay the non-domestic rates due, from one or more previous financial years, to the licensing authority in respect of the premises for which the licence or certificate relates.

(2) A licensing authority may not suspend a premises licence or a club premises certificate using the powers granted by this section if—

(a) the licensing authority is unable to demonstrate that earlier efforts to secure payment of the debt have been made but have failed, or

(b) either—

(i) the licence holder failed to pay the required amount of non-domestic rates at the time it became due because of an administrative error (whether made by the holder, the authority or anyone else), or

(ii) before or at the time the non-domestic rates became due, the holder notified the authority in writing that the holder disputed liability for, or the amount of, the rates.

(3) If a licensing authority suspends a premises licence or club premises certificate under subsection (1), the authority must give the holder of the licence or certificate notice of the grounds on which the licence or certificate has been revoked and specify the day the suspension takes effect.

(4) The date specified in the notice under subsection (3) must be at least 10 working days after the day the authority gives the notice.

(5) The amendments made by this section apply in relation to any outstanding non-domestic rates which are owed to the licensing authority six months after the commencement of this section.””—(Lyn Brown.)

This new clause would enable a licensing authority to suspend a premises licence where a business has wilfully or persistently failed to pay the business rates due to the licensing authority.

Brought up, and read the First time.

[Lyn Brown]

I beg to move, That the clause be read a Second time.

Policing and Crime Bill (Sixth sitting)

Debate between Lyn Brown and Lord Beamish

Committee Debate: 6th sitting: House of Commons
Tuesday 12th April 2016 Public Bill Committees

[Mr Kevan Jones]

As I said, my amendments are probing amendments. I thank the Minister for the full way in which she has responded to them. I know, and I want to put it on the record, that she, too, has a genuine interest in this subject and wants to do the best for individuals who suffer mental health problems.

I welcome the Minister’s response to new clause 11. The data are going to be very important, because they will attest to whether the changes are working. By comparing areas with one another, local scrutiny will allow areas to improve their situations and to learn from best practice. As she said in response to an intervention, what happens in one area can be transferred to another.

I hear what the Minister says about new clause 12. I accept her point that this situation is very different from being sectioned under section 2 of the Mental Health Act, but for people to be detained without any right to advocacy is unique. Like her, I do not want to overburden or inhibit the system, but there needs to be a basic right for individuals to have access to information. Given her commitment to further discussions on new clause 12, I shall not press it to a vote, but we may come back to it on Report. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 60 ordered to stand part of the Bill.

Clause 61 ordered to stand part of the Bill.

Clause 62

Application of maritime enforcement powers: general

Amendment made: 214, in clause 62, page 71, line 29, at end insert—

“( ) a National Crime Agency officer having the powers and privileges of a constable in England and Wales under the Crime and Courts Act 2013, or”.—(Karen Bradley.)

This amendment makes express provision for National Crime Agency officers to come within the definition of law enforcement officer that applies for the purposes of Chapter 4 of Part 4.

Clause 62, as amended, ordered to stand part of the Bill.

Clauses 63 to 76 ordered to stand part of the Bill.

Clause 77

Firearms Act 1968: meaning of “firearm” etc.

[Lyn Brown (West Ham) (Lab)]

I beg to move amendment 227, in clause 77, page 81, line 7, leave out subsection (5).

This amendment would remove the exception for airsoft guns from the definition of a lethal barrelled weapon.

It is a pleasure to serve under your chairmanship, Mr Howarth. I, too, hope that you had a really happy holiday—I am learning from the Minister how to do these things.

The amendment would remove the exemption for airsoft guns from the definition of a lethal barrelled weapon from the Bill. It has been tabled as a probing amendment to understand why the Government have allowed an exemption in this case.

Policing and Crime Bill (Third sitting)

Debate between Lyn Brown and Lord Beamish

Tuesday 22nd March 2016 Public Bill Committees

[Mr Kevan Jones]

My hon. Friend makes a good point, as these things are already happening. In my local area in Durham, the fire and rescue service works closely with the police and ambulance services, particularly in co-location of appliances. For example, in Barnard Castle, which is in a rural area, the ambulance, fire, police and mountain rescue services work together, which improves the service but saves money for the estate.

[Lyn Brown]

I thank my hon. Friend for reminding me of my visit to Durham fire and rescue service. I was really impressed by what they were doing. They were clearly cash-strapped, but went out to maximise their impact and save money where they could by collaboration. Their most important focus was on saving lives and improving services to the local area, and I was very impressed.

The clause gives the impression that under this Government there is a hierarchy of services, and that the fire service is the equivalent of Lepidus—that is, the least in the triumvirate. That is from Shakespeare’s “Antony and Cleopatra”—I did it at A-level. The Opposition believe that collaboration between the emergency services is a good thing. Providing the funds to encourage and support collaboration, and giving an opportunity to evaluate the collaboration and disseminate good practice, are essential. Providing an institutional framework for supporting further collaboration has some merit, but it is likely to be superfluous and I honestly believe that there are dangers in making that mandatory. Local experts, who understand their service and their local needs, are best placed to make final decisions about collaboration—just as they have been doing effectively over the past few years.

[Mr Kevan Jones]

May I echo the points made by my hon. Friend? This is actually happening on the ground. As a former Minister, I have seen close up the tendency of this Government to think that all the pearls of wisdom are contained within Whitehall, when clearly they are not. As my hon. Friend says, in many cases this is being driven by cost. County Durham and Darlington fire and rescue service, whose budget has been cut by the Government, has had to look at new ways of delivering services. However, the driver has not just been cost; it is also the recognition that, working together, ambulance, police, fire—and, in this case, mountain rescue—services can deliver a better service for the public. That public sector ethos is alive and kicking in my local area, where the public come first in terms of the service they give. If they can do things to improve that, it is all the better.

What would the Minister judge as collaboration? I accept that he might want to give examples of where that is not happening and the reasons why. In Durham, we have tri-responders: the police, fire and ambulance services. In a large rural county such as Durham it is not possible to have a physical presence from all three services in all areas, and they have worked together very closely. That has been driven not just by the police and crime commissioner but by other services working together.

What would be an example of failure? The Bill talks about co-operation, but to what level? Is this about the response to incidents? There are good examples of the co-location of services. In County Durham, it is not just about ensuring that we get more efficient use of estates. Things such as open days and the provision of public information, including to schools, are now being done on a joint basis by the police and fire. As my hon. Friend rightly says, the incidents that affect many of our constituents are not just pigeonholed as requiring a police response, a fire response or an ambulance response. Those things are working very well, so I would like to know what will be achieved with this measure. Can the Minister point to examples of where that is not happening and, if it is not happening, has he examined why? I have outlined the great work being done in County Durham. What would the Minister see as failure or as not meeting the co-operation target? Is he laying down from Whitehall, as seems to be the tendency of this Government, a framework that local PCCs and fire authorities have to meet if they are to meet this test? I think that, without that, what happens in different areas will be pretty arbitrary.

I represent quite a rural constituency in County Durham, although the Government have not recognised Durham as a rural county in their local government funding settlements, possibly because it votes Labour rather than Conservative. Responses that work in London may not work in rural areas such as County Durham. Providing the flexibility to allow local fire chiefs, local fire authorities, PCCs and the NHS to collaborate on what works best locally would be the right approach. If the Minister tries to direct from Whitehall a template that each area has to adopt, it will not work.

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[Lyn Brown]

The Opposition do not believe that the Government have even begun to make the case for the fundamental governance reforms to the fire and rescue service that would be introduced by clause 6, so we will vote to remove it, and consequential schedule 1, from the Bill.

Clause 6 and schedule 1 contain provisions that allow for a police and crime commissioner to become a fire and rescue authority and, in so doing, effectively assume control of a fire and rescue service. I will have plenty to say in later debates about the lopsided process by which the Government are proposing that these takeovers should happen, and what the governance and scrutiny of the fire and rescue service would look like once the takeovers have gone ahead, but I will take this opportunity to discuss the merits of the proposal in the first place.

I know that that is not the way the Government think things should be done. They have been quite happy to go through a consultation exercise that does not ask stakeholders what they think of the merits of the proposals, and they have completely ignored the recommendation of Sir Ken Knight that these proposals need to be put through a rigorous pilot programme so that we can know whether they are likely to bring about any benefits.

It was not really a consultation, was it? It was stuffed full of leading questions that were not about whether the plans were right or about what should be done, but about how to implement them. The Government have ignored the evidence-based strategy suggested by Sir Ken. Why did the Government not undertake a pilot, as recommended by the Knight review? Why not undertake a proper risk assessment and outline the implications of the plans, alongside those of the budget cuts that are now starting to take effect and affect response times? The Government have acted on the assumption that it is a given that police and crime commissioners will get powers to take over the fire and rescue services. Why is that reasonable? They need to present arguments as to why that is a good idea. In whose interest is it? It is not right simply to propose reforms to a vital public service without producing a detailed set of arguments as to why those reforms are in the best interests of that service and the public.

Government impact assessments always start with the same two questions: “What is the problem under consideration?” and “Why is Government intervention necessary?” Those are two very conservative questions: if there is no evidence that something is not working as well as it should or that there is a problem that needs to be solved, the Government simply do not have reason to act. They should certainly not be legislating for its own sake. If the problem is London, legislate on London.

There is absolutely nothing in the impact assessment identifying tangible problems with the governance of the fire service, nor is there any attempt to explain why the legislation is necessary. The only relevant reason in the impact assessment is the fact that the Conservative manifesto pledged to “develop the role” of police and crime commissioners. Why is that? What did the fire service do to deserve this? It is an extraordinary way to go about the business of government. I am not surprised that civil servants at the Home Office could not come up with any tangible reasons why PCCs need to play a role in the governance of the fire and rescue service; there are plenty of reasons to think it is a bad idea.

[Mr Kevan Jones]

Although the clause refers to the fire and rescue service, it does not refer to ambulance services, for example. Does my hon. Friend agree that PCCs adopting ambulance services is a logical conclusion, if they are to encompass all the emergency services in an area?

[Lyn Brown]

I can only imagine that the Home Office lost the argument with the Department of Health. That is the only thing that comes to mind. The Home Office wanted a big takeover for PCCs, but it has failed to do so because the Department of Health said no.

PCCs are a nascent institution. With suitable caution, the Home Affairs Committee has said that it is

“too early to say whether the introduction of police and crime commissioners has been a success.”

If we do not know whether PCCs have been a success in their core duties, why are the Government proposing that they expand their portfolio by adopting fire services? We all hope that the turnout for PCC elections in May is better than the 15% managed the first time round, but before we hand over more powers to PCCs, would it not be better to see whether public support and interest in the institution has improved from such a dismally low level?

The Government may see things differently and want to bolster the powers and budgets of PCCs to help them through their difficult start, but a vital public service such as fire should not be pawned off to save struggling Whitehall inventions. What is next? Stretched NHS ambulance trusts running community volunteering schemes to rekindle the big society?

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[Lyn Brown]

I totally and utterly agree with my hon. Friend. I think the Minister has done this Committee a disservice by not answering our questions properly. I urge him to get back on his feet and give us a much more reasonable and considered answer to the points that we have made.

[Mr Kevan Jones]

On a point of order, Mr Howarth. This is a habit of the Minister. On Second Reading, he gave a 15-minute—or even less—response to the debate, and we saw that again today. I thought the purpose of Committee was to scrutinise legislation and for the Government to argue their case for the Bill. That is not what we have seen today. I wonder whether you can give some guidance to the Minister. He needs to answer questions or even put a case for his proposals.

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[Lyn Brown]

The Opposition do not believe that the case has been made for PCCs to govern the fire and rescue services. I think that after the debate we have just had, a case is sadly wanting.

[Mr Kevan Jones]

It would be nice to hear the case for why PCCs should take over fire and rescue services, because we have failed to hear that from the Minister.

[Lyn Brown]

We have indeed failed yet again to hear a case from the Minister as to why this massive change to how our public services are run is to happen. I really am disappointed that the Minister did not take the opportunity in the previous debate to give us some decent reasons. But there are none—simply because of one obscure line in the Conservative party manifesto, the Government want to boost the role of PCCs. That is a really poor reason.

However, if the Government intend to go down that path and the reforms are to happen, the Bill could be strengthened if the Government accepted the amendments. They would make significant changes to the process by which a PCC can take over, and to the structures of accountability and scrutiny that they face once they have taken charge of the local fire service.

Amendment 174 would ensure that the Secretary of State could approve a takeover only if it was in the best interests of public safety and efficiency. The schedule currently requires it to be in the best interests of only one or the other. Amendment 181 would require a police and crime commissioner to pay the costs incurred by a fire and rescue authority in preparing information for a takeover bid.

Amendments 170, 171 and 172 all deal with the consultation process. Amendment 170 would require full consideration of people’s views. Amendment 171 would restrict the scope of the consultation to residents who are served by the relevant fire and rescue service. Amendment 172 would make workers and fire and rescue authorities statutory consultees. Amendment 180 would ensure that the panel the Home Secretary used to guide her through a business case was genuinely independent.

Amendments 173, 177 and 178 all deal with who must consent before a takeover can be approved. Amendment 173 would require the consent of local authorities, and amendment 177 would require local people to approve a takeover by a referendum. We have offered a compromise in amendment 178, which would require the approval of either the local authority or the local people. Either way, there must be local consent through a referendum or through the locally elected representatives.

I have outlined a lot of issues, but then again, there are a lot of problems with the Government’s proposals. I shall start with amendment 174 and the grounds on which the Home Secretary is to make her decisions, before I address the process. The amendment would ensure that the Secretary of State does not allow PCCs to take over control of a fire and rescue service unless it is in the interests of public safety. I tabled it because, as currently drafted, the Bill states that when the Secretary of State decides whether to allow a fire and rescue service to come under the control of a PCC, she must do so

“in the interests of economy, efficiency and effectiveness…or…in the interests of public safety”.

The amendment is small, but its impact would be substantial. It would prevent the Secretary of State from making her decision on whether to allow a fire and rescue service to come under the control of a PCC solely in the interests of economy, efficiency and effectiveness, to ensure that it is also in the interests of public safety. Who could possibly object to that? As the Minister is in one of his collaborative moods, I expect that he will accept the amendment with gusto, because he will want to ensure that the interests of public safety are truly served.

I know I have made these arguments before, but it is really important to make our arguments as we go through the Bill, so I shall do so again, albeit briefly. The decision to allow PCCs to take over fire and rescue services must not be allowed to become a trade-off between economy, efficiency and effectiveness on the one hand and the interests of public safety on the other. If PCCs are to take over fire and rescue services, the interests of public safety should be paramount. There should be no other interest—certainly not the Conservative party manifesto.

Under the existing proposals, if the takeover is in the interests of economy, efficiency and effectiveness, that is enough to satisfy the Secretary of State’s requirements. That is simply not good enough for the fire service, and it is certainly not good enough for the general public. I am glad to see that the Government have recognised that consideration must be given to both efficiency and effectiveness, but I am concerned that they have once again misunderstood the meaning of efficiency. I reiterate that Sir Ken Knight stated:

“Efficiency does not just mean doing the same for less, nor is it just about one-off cashable savings. It is an entire approach to service delivery, achieving the best possible service for the public.”

I would hope all of us in this room can agree on that.

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[Mr Kevan Jones]

Does my hon. Friend agree that the Government are arguing that local people should have a say in electing a police and crime commissioner, while at the same time they are giving the Secretary of State powers to impose on an area a set of arrangements in which local people would have no say at all? It is another example of the Government looking both ways—they talk about devolution, but now they are talking about centralisation.

[Lyn Brown]

That is absolutely right. It is not a localist agenda at all.

Amendment 181 would require a police and crime commissioner to pay the costs incurred by a fire and rescue authority in preparing information for a takeover bid. The Bill places a statutory duty on the PCC and fire and rescue authority to work together in the preparation of a takeover proposal, although not as equal partners. The process is to be led by PCCs, and the fire and rescue authorities will merely be duty-bound to co-operate. The amendment is intended to clarify who will pay the costs of preparing the proposal.

Ensuring that proposals are put together to the desired standard when putting forward the case for PCC takeover of fire and rescue authorities will of course take time, and providing the information needed to prepare a proposal will inevitably carry a cost. The costs include everything from staffing and research costs to stationery and paperwork. Paragraph 2 of proposed new schedule A1, which schedule 1 would add to the Fire and Rescue Services Act 2004, sets out that a fire and rescue authority must provide information and documentation at a PCC’s request. That makes it clear that the application process could easily prove very costly to a fire and rescue authority.

The schedule places duties on fire and rescue authorities, but gives them no powers in return. For example, while a fire and rescue authority must co-operate with a PCC and provide him or her with documentation and support, the fire and rescue authority is given no corresponding powers whatever in return. I find that quite astonishing. Fire and rescue authorities have a legal responsibility to oversee the strategic direction and policy of their local fire service. How can they possibly carry out that duty if they are not even allowed to ask for documentation on staffing, finance and plans from the person who plans to take over the fire and rescue service?

In response to the Government’s proposed process, amendment 181 would place responsibility on the PCC to pay the costs incurred in producing a takeover proposal. There are two good reasons for that. First, as the PCC is actively seeking to take over responsibility for the fire and rescue authority, it is fair that those costs fall on them. Secondly, PCCs have larger budgets than fire and rescue authorities. They are therefore presumably better staffed and better able to absorb costs. If PCCs are not to be responsible for the costs, the Government need to work out how they will fund what could be a fairly costly process, especially when our fire and rescue services are under the cosh from spending cuts.

[Mr Kevan Jones]

I know that this issue will be considered later, because the Government have tabled amendments on it, but if we are to get a full idea of efficiency, one of the tricky areas is unpicking fire authorities’ budgets. To give an example, in Northumberland one PCC covers two fire authorities. One, Tyne and Wear, raises its fire budget by precept and the other is part of the county council. Does my hon. Friend recognise that unpicking those budgets will be a hugely expensive exercise?

[Lyn Brown]

My hon. Friend is absolutely right. That is why East and West Sussex fire authorities failed to merge when both wanted to do so—it was impossible to unpick one of their budgets, and the Government were demanding back £2 million of the local authority’s money. That completely floored the opportunity to do something that both fire and rescue authorities wanted. They could not do it because it was too expensive.

The other point I would make to my hon. Friend, who is absolutely right, is that many of the fire and rescue services that are integrated within a local authority structure have already found back-office cost savings. Their emergency services departments are fully integrated into the fire service. If fire services are dragged out and given to the PCC, that will have a massive cost for many of those local authorities, which will find themselves short in the pocket, just like in the case of the East and West Sussex merger.

Perhaps more presciently, being given responsibility to pay the costs of any takeover may stop police and crime commissioners from using the risk of cost escalation as a means of coercing fire and rescue authorities to support their takeover bid. The Government’s proposal is a recipe for hostile takeovers. We can imagine a situation arising under the Bill where a PCC requests that a fire and rescue authority produce a constantly escalating amount of information and documentation. As it does so, costs will spiral for the fire and rescue authority, possibly to saturation point. There may come a time when the fire and rescue authority decides it is no longer viable to continue paying such costs simply for the creation of a proposal and agrees to a takeover in order to stop haemorrhaging funds. The Government have been worried about the use of freedom of information requests as a deliberate tactic to burden public institutions, so they should be receptive to my argument and the picture I am painting.

Amendment 181 would take away PCCs’ ability to abuse their power, but it would also take away any fire and rescue authority’s suspicion that that might be happening. That would not only avoid PCCs coercing fire and rescue authorities but make fire and rescue authorities more receptive to working together with PCCs in putting together proposals. It would help to mitigate any conflict of interest. If the Minister is truly interested in collaboration between our emergency services—frankly, I doubt it—he ought to support it.

The amendment would solve two problems. It would clear up the ambiguity around who will pay for costs incurred in putting together proposals and help to mitigate the potential for hostile takeovers by PCCs when the fire and rescue authority—

High Cost Credit Bill

Debate between Lyn Brown and Lord Beamish

Friday 12th July 2013 Commons Chamber

[Lyn Brown]

It certainly is more than most. I do not think we will get accord even if I take more interventions from the hon. Gentleman.

[Mr Kevan Jones]

Is it not the case that some of the things that the Government are doing, such as the bedroom tax, are driving people to take payday loans? If we followed through the proposals made by Beecroft, who is a major stakeholder in Wonga, there would be more zero-hour contracts and less protection at work for those individuals.

[Lyn Brown]

I agree with my hon. Friend’s analysis.

Community Links is a valued and well-established charity in my constituency that has worked tirelessly on behalf of disadvantaged communities for more than two decades. Its clients include people who have taken out payday loans as a means of supporting regular family expenditure. Community Links tells me that over the last year or so it has seen a 20% increase in payday loan problems, which its advisers attribute to the ease of access and application. It has given me two examples to share with the House of real everyday problems faced by my constituents.

The first client is a married woman with two school-aged children. The family own their property and are paying off the mortgage. She was in part-time employment, working as an administrative assistant, and her husband had been made redundant, so the family had to manage and struggle on her single wage. She started to take out payday loans in order to clear unexpected bills, but she then began to use the loans as a way of increasing family income.

Although she was highly experienced at juggling the loans, one by one the loan companies started to contact her regarding repayment. When she went to Community Links for advice, she had four payday loans with four different companies—short-term loans with high interest. She had also been using her credit card to pay for family expenditure and the total debt was about £7,000. She tried to negotiate the payments herself, but the companies simply were not interested. She felt threatened by numerous telephone calls, sometimes many on one day, and visits to her home address. Although she is a very competent individual, she became swamped by the loan companies’ demands and sought legal advice as a result. Community Links advisers drafted a financial statement, negotiated with creditors and arranged reasonable payment terms. It also arranged for her mortgage payments to be reduced in order to bring down her expenditure to match her income. The Bill’s proposals on affordability and access should help prevent the build-up of such calamitous debts. If she had not gone to Community Links, or if it had not had the staff to help her, I shudder to think what would have happened to her and her family. It would have meant default on the mortgage and homelessness. She would then have had no choice but to apply for housing benefit and would have had found herself, as is often the case in London, in substandard, expensive private rented accommodation. All this would have been at a cost to the taxpayer and would have been avoidable with the proper regulation of loan companies.

I am afraid that this case also highlights the crucial role of debt advice in starting to resolve people’s problems. Community Links tells me that it has lost all legal aid funding for welfare benefits and debt advice as a result of Government cuts, amounting to more than 700 cases a year, each of which would be more likely to lead to ongoing costs for the taxpayer, rather than individual, one-off payments and interventions.

Community Links also tells me that the loss of funding for advice services means that struggling families are finding it much harder to access support when they need it and are getting deeper into crisis. The solutions—eviction and homelessness—cost the taxpayer money and we must not forget that.

I welcome the Bill’s provision that lenders should signpost customers to free, impartial advice when they are turned down or miss a payment. I also welcome the potential levy on lenders, specifically to pay for additional debt advice through the Money Advice Service. I hope that the Financial Conduct Authority takes note of that when it assumes responsibility for the sector in April 2014.