Oral Answers to Questions
Debate between Nicholas Dakin and Yvonne Fovargue(8 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Nic Dakin (Scunthorpe) (Lab)
Yvonne Fovargue (Makerfield) (Lab)
The Minister for Apprenticeships and Skills (Robert Halfon)
We are committed to protecting the base funding rate of £4,000 per student for the rest of this Parliament. Moreover, the proportion of young people participating in education or training is now 81.6%, which is higher than ever before. Following reforms to qualifications, the system is delivering better quality provision to prepare young people for jobs and further study.
Debt Advice and Debt Management
Debate between Nicholas Dakin and Yvonne Fovargue
Nic Dakin
The moustache is having an encore for today and will be removed tomorrow.
The hon. Gentleman is right that the Florida measures apply to payday loans, but I believe that it is worth considering how that model can assist overall. Interestingly, by 2009, 6.8 million loans had been authorised in Florida, and not a single loan was extended beyond the contract period. More than 90% paid back their loan within 30 days and more than 70% repaid on the contract end day. Consumer complaints of mis-selling dropped significantly, as did overall indebtedness, and not one borrower was indebted by more than $500 at any given time. The Florida model may well not be the answer, but I ask the Minister to what extent the Government are drawing on practice elsewhere in the world, including in Florida and in France, which has also been mentioned, to help inform how we can move forward. I believe there is cross-party consensus about the need to regulate, and as the hon. Gentleman indicated, it is horses for courses—the Florida model covers payday lending, but there are other issues to consider.
Yvonne Fovargue
The other advantage of the independent database owned by the regulator is that if anyone researches a credit reference agency database, it does not show who has been on the payday lending database. When people move from payday lending to more established forms of credit, as we hope they will, their credit reference is not affected by the fact that they have had a payday loan, or maybe 10 payday loans.
Nic Dakin
My hon. Friend makes a significant point. The devil is in the detail—I can see that the Minister is nodding. We should learn from practice elsewhere that can better assist us. It is clear that practices in some US states have created unforeseen difficulties, so there is something to learn from what works well and what does not.
I should like the Minister to address certain questions when he speaks. Will he confirm that the Government recognise the need for sustainable face-to-face debt advice provision for people who get into significant debt difficulty? Will he confirm that the Government will ensure that funding is available for that in future?
Will the Minister take steps to eliminate misleading advertising of debt advice and to abolish the practice of debt management companies charging huge up-front fees, which results in perverse commercial incentives? Will he recognise that a consensus has been expressed by Members on both sides of the House that debt advice and debt management needs to be regulated? Such regulation should not be compromised by the one-in, one-out rule, however reasonable that aspiration is. Regulation is necessary if we are to have better activity. If we do not regulate soon, we will have consequences that we would rather not have.
Finally, will the Minister confirm that he will learn from practice elsewhere in the world? I am sure he will because he is very much into learning from others.
Debt Management Plans
Debate between Nicholas Dakin and Yvonne FovargueWestminster 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.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Nic Dakin
The hon. Gentleman makes a good point. Sadly, we are moving into more austere times, in which more people are likely to get into difficulty. Indeed, the Joseph Rowntree Foundation this morning published figures suggesting just that. The Office of Fair Trading reported widespread non-compliance, misleading advertising by businesses involved in the area, and a lack of competence among front-line advisers working for DMCs. Sadly, the OFT found that self-regulation is not working and continues to be an abject failure.
Yvonne Fovargue (Makerfield) (Lab)
Is my hon. Friend as concerned as I am that even where there is evidence of unfair practice, the OFT has taken more than two years to close companies down? In those two years, the companies still operate, make a profit and charge vulnerable customers. The OFT needs more power to investigate such companies and shut them down early.
Nic Dakin
My hon. Friend has much knowledge and expertise in this area, and she makes a powerful point about the need for the Government to act now to protect vulnerable people. I know that the Minister has concerns, and I look forward to his response.
Citizens Advice believes that there should be a statutory scheme, with better powers for the regulator, coupled with improved funding of free debt advice. The solution, to improve current arrangements and protect vulnerable people from getting further into debt as a result of the behaviour of those to whom they turn for support and advice, might be to have a regulated environment in which providers are independently audited to standards set by an independent body, fees are controlled, and there is clear certainty about the repayment term, for creditors and debtors alike.
Post-16 Students
Debate between Nicholas Dakin and Yvonne Fovargue(13 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Nic Dakin
My hon. Friend makes a good point. What is happening in education should be put in the context of what is happening in services available for young people outside the classroom. I fear that without the provision of culture and sport in post-16 education, students will access these pursuits only if they or their parents can pay for them. That is the danger, and my hon. Friend emphasises that by drawing attention to the pressures on youth services at this time as well.
Yvonne Fovargue (Makerfield) (Lab)
Does my hon. Friend agree that colleges such as those in my constituency, Winstanley and Wigan and Leigh, might find the excellent links they have developed with employers jeopardised by the lack of funding and the lack of ability to send students out on visits, work experience and day trips to try some employment? In an area of high unemployment such as Wigan, those are particularly vital.
Nic Dakin
I thank my hon. Friend for that contribution. Colleges are resilient and imaginative places, and I am sure that they will work hard to ensure that those student experiences are maintained. However, she is right that some of the funding for those activities comes from entitlement funding and that, if it is being cut by 75%, there is a need to square the circle, so colleges will need to look at ways of doing that. That might mean that class sizes rise or that there are other impacts on the system. However, she is right to emphasise the importance of vocational experience, sometimes quite short bursts of vocational experience within a package of learning as well as fuller training directly in the workplace, which will continue to be fully and properly resourced.
The size of the cut is unfair in comparison with the cut in funding per learner in primary and secondary education. It is also quite amazing that sixth-form colleges, rightly applauded by the Secretary of State and widely recognised as one of the most efficient parts of the education system, should be hit so badly. Surely that is an unintended consequence of a change in policy.
Will the Minister look again at the potentially very disruptive impact of the change to entitlement funding on different types of post-16 providers and consider ways of mitigating any unintended consequences? Will he provide information very soon on how much disadvantage funding will be allocated to each post-16 provider? Will he meet me and a group of college principals so that he can better understand the impact of the changes on those at the sharp end of understanding what is going on?
Finally, and slightly tongue in cheek, although I would welcome a positive answer, if he wishes to witness at first hand the excellence that the current arrangements resource, he might join me for John Leggott’s spring concert on 5 April to experience one example of what we have at the moment and what these changes might put in jeopardy.