Oral Answers to Questions

Nick Hurd Excerpts

Wednesday 30th April 2014 Commons Chamber

[Graham Jones (Hyndburn) (Lab)]

1. What progress the Government have made on implementing its big society policy.

[The Minister for Civil Society (Mr Nick Hurd)]

We have given communities more power through the Localism Act 2011. We have invested in volunteering, which has risen after years of decline. We have invested to support charitable giving, which has held up in difficult times. Some 70,000 young people have taken part in the National Citizen Service. I am very proud that this country leads the world in supporting social enterprise and investment.

[Graham Jones]

That is not a situation I recognise in Hyndburn, I have to say. Archbishop Vincent Nichols recently said:

“The Big Society hasn’t helped… Charity isn’t an alternative to public service… there are now families with nothing”.

Will the Minister finally admit that the big society project is in fact a big failure?

[Mr Hurd]

No, I will not. I think the cynics have got it entirely wrong. Some of the changes we have introduced are irreversible, not least in terms of giving communities more power and information, which they are not going to give back. We recognise that charities are going through a very difficult time, like lots of organisations, but this Government are actively supporting them to help them to adapt and improve their resilience, while Labour MPs continue to scaremonger.

[Pauline Latham (Mid Derbyshire) (Con)]

What plans does the Minister have for the National Citizen Service this summer?

[Mr Hurd]

I thank my hon. Friend for her long-standing support for the National Citizen Service and all initiatives to encourage young people to get involved in volunteering. We are enormously ambitious for the National Citizen Service this year. As I have said, to date over 70,000 young people have taken part, and we expect the same number to take part this year alone.

[Lisa Nandy (Wigan) (Lab)]

Will the Minister explain why the newly announced £40 million fund to help struggling charities will only come into force in 2015? Many charities are saying that they will not survive another six months because of this Government’s policies. Is this not a case of too little, too late?

[Mr Hurd]

No, I do not accept that. The hon. Lady ignores the fact that the Government have already provided almost £200 million in transition funding for front-line charities and infrastructure organisations to help them through difficult times. We have managed to secure some additional money in the 2015-16 Budget to support more transition work, particularly for middle-sized charities, which we think is needed. She is ignoring all the help we have given so far.

[Steve Baker (Wycombe) (Con)]

Our country once enjoyed a rich and vibrant tapestry of organisations between charity and the state, such as co-operatives, friendly societies and other mutuals. Does the Minister share my dismay that the left has abandoned its own traditions?

[Mr Hurd]

Those are not of course the only traditions that the left has abandoned over the years; it is very hard to see what is left. I am very proud that Government Members are leading the work to encourage more mutualisation, particularly in relation to encouraging people to spin out the services they currently offer inside the public sector, and to offer them and improve them as public sector mutuals.

[Paul Flynn (Newport West) (Lab)]

2. What his policy is on the outsourcing of civil service jobs.

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[Mr Graham Allen (Nottingham North) (Lab)]

3. What progress his Department has made on developing social finance.

[The Minister for Civil Society (Mr Nick Hurd)]

I am proud that Britain leads the world in developing social investment. The hon. Gentleman is a tireless champion of its power to support early intervention. A new tax relief has gone live this month. There are now 15 social impact bonds in operation. I hope that he will welcome our announcement today of two more funds to support social impact bonds, which we believe will generate better outcomes for young people who are at risk of not being in education, employment or training.

[Mr Allen]

There is an important judgment from the European Court of Justice today on the Robin Hood tax, which will have a big influence on civil society and the big society. However, that will be minuscule compared with the potential impact of a serious social impact bond market on early intervention, which the Minister mentioned, and on council projects. It is two years since Big Society Capital was established, so is it not time to review the working of the Act that set it up to see whether we can take it further?

[Mr Hurd]

I am very proud of Big Society Capital as an institution. I have seen the impact that its investments are having on the ground. It has committed £149 million and has done important work to build this important market. It is just two years in and is about to publish its second annual report. We are always looking to ensure that it succeeds. I am more than happy to pass that question on to the Big Society Trust, which is its governing body, and get its response.

[Mr Gary Streeter (South West Devon) (Con)]

Are not credit unions a great example of social finance, and is it good news that there are now 500 of them in this country, not least a new one in Plymstock in my constituency? More than 1 million Brits are now members of a credit union. Are the Government pleased about that?

[Mr Hurd]

Credit unions are an enormously important part of the landscape in communities around the country, and many do extraordinarily valuable work. We are looking at the degree to which we can support their capitalisation. They are fragmented and under-capitalised, and we are discussing with Big Society Capital, and others, what ideas are out there for using the power of social investment to strengthen the capitalisation of that important movement.

[Mr Jack Straw (Blackburn) (Lab)]

I was the Minister who got going the first social impact bond at Peterborough. Would the Minister like to say what the experience of that first experiment has been?

[Mr Hurd]

I wholly acknowledge the role that the right hon. Gentleman played in that groundbreaking social impact bond at Peterborough. Its early results are extremely encouraging, and reoffending among short-sentence prisoners who receive support through the bond has fallen by 11%, while nationally that figure has risen by 10%. It was the first ice-breaking social impact bond, and I think its impact on the wider movement and the work happening across the country, with at least 15 social impact bonds live, cannot be overestimated.

[Sir Tony Baldry (Banbury) (Con)]

Does my hon. Friend agree that we all need to do more to make voluntary organisations and charities aware of the benefits of the growing social investment market of Big Society Capital, and of the Public Services (Social Value) Act 2012?

[Mr Hurd]

I wholly agree and I am clear about what we are trying to do. Over time—it will take some time—we are trying to build a third pillar of funding for our social sector to sit alongside philanthropy and the public sector, and we lead the world in doing that. The Public Services (Social Value) Act was groundbreaking legislation that requires commissioners to think very seriously about how they can maximise the social and environmental benefit of every pound of public money they spend.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

4. What steps he is taking to tackle cybercrime.

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[Dan Jarvis (Barnsley Central) (Lab)]

6. What steps he is taking to encourage volunteering.

[The Minister for Civil Society (Mr Nick Hurd)]

We have created hundreds of thousands of new volunteering opportunities, not least through the National Citizen Service. We have invested in the important infrastructure that supports volunteering and we have reformed barriers such as Criminal Records Bureau checks. I hope that the hon. Gentleman will welcome the fact that volunteering has risen after years of decline.

[Dan Jarvis]

Will the Minister join me in congratulating Margaret Hayes, who recently worked her final shift after 31 years of volunteering to support patients at Barnsley hospital? Volunteers such as Margaret make a much valued contribution to our society, and it is welcome that the number of volunteers is increasing. What more can the Minister do to encourage volunteering among people of all ages and backgrounds around the whole country?

[Mr Hurd]

I wholly support that vision. It is massively important to the country. I join the hon. Gentleman in recognising the work of that extraordinary individual and remind him that the Prime Minister has launched a new initiative that will announce daily the Points of Light awards to reward outstanding volunteers. I ask Members of Parliament on both sides of the House to think about nominating individuals in their constituencies for that award.

[Mr Brooks Newmark (Braintree) (Con)]

One way in which we can encourage volunteering is to thank those volunteers who work hard. Will the Minister join me in thanking the volunteers in my constituency at the play and resource centre PARC, Braintree Foyer, the Archer centre and Rethink Mencap? Does he agree that it is the volunteers who work for the various charities and community groups in all our constituencies who form the backbone of our society and deserve our collective thanks?

[Mr Hurd]

I wholly endorse that and join my hon. Friend in his recognition of and congratulations to his local volunteers. Few Governments have done more to actively encourage volunteering, and I reiterate my encouragement to colleagues to step forward and nominate individuals for the Points of Light awards.

[Philip Davies (Shipley) (Con)]

7. Whether he plans to transfer any civil service jobs overseas.

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[Nicola Blackwood (Oxford West and Abingdon) (Con)]

T6. Brilliant social enterprises such as the Oxford student hub propeller project can lead the way in finding innovative solutions to social problems, but they struggle to find sustainable funding. Can the Minister tell me what progress is being made on increasing the availability of social impact bonds, which could make all the difference?

[The Minister for Civil Society (Mr Nick Hurd)]

My hon. Friend is entirely right: we have fantastic social enterprises in this country and they need easier access to capital. This country leads the world in developing social investment. Today we are launching two new funds that will unlock more social impact bonds to deliver what we expect to be better results for thousands of young people at risk of becoming NEET.

The Prime Minister was asked—