Oral Answers to Questions
Nick Hurd Excerpts(12 years, 11 months ago)
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Stephen Metcalfe (South Basildon and East Thurrock) (Con)
1. What steps he is taking to encourage individuals and organisations to engage in projects that benefit their local community.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
Encouraging more social action is a key strand of the big society vision, so we are looking at ways to cut some of the red tape that gets in the way and are busy delivering programmes such as Community Organisers, Community First, the national citizen service and the social action fund.
Stephen Metcalfe
I thank my hon. Friend for his answer. Will he expand on how these initiatives will impact on the residents of South Basildon and East Thurrock and on what they could hope to see from such great ideas in the future?
Mr Hurd
I thank my hon. Friend for his positive reaction. I am aware that at least three wards, I think, in his constituency are eligible for the Community First grant programme. This is a fund designed to put money into the hands of neighbourhood groups to help them implement their own plans. It is focused on wards that blend high levels of deprivation with low levels of social capital, and I very much hope that he will engage personally in supporting constituents in those wards to maximise those particular opportunities.
Mrs Madeleine Moon (Bridgend) (Lab)
I declare an interest as a trustee of Community Service Volunteers, which had its Make a Difference day on Saturday last week, encouraging people to volunteer and make a difference in their community. What steps will the Government take to ensure that organisations such as Community Service Volunteers can reach out and encourage volunteers like Abbie, who is unemployed, to make a difference by working in her local Marie Curie shop?
Mr Hurd
Community Service Volunteers is a great organisation and it had a spectacularly successful day. The answer lies in trying to reduce some of the barriers, such as the red tape that I mentioned, that stop people getting involved. It is also important to try to inspire people to step up and get more involved. That is why we believe that programmes such as Community Organisers and Community First, which are about bringing communities together to identify what they want to change and inspiring them to work together to make that change happen, can be a very powerful intervention.
Mr Mark Williams (Ceredigion) (LD)
The Minister will be aware that this is national trustees week. Will he address two particular concerns of that campaign? The first is that the number of young people being attracted to become trustees is very small indeed, and the other is the fact that more than half of charities have at least one vacancy on their board of trustees.
Mr Hurd
The hon. Gentleman raises an extremely important point. We all know the value and importance of the work of trustees and the ability of a really good set of trustees to transform the capability of a charity or voluntary organisation. It is important that the Government will announce some steps to promote wider awareness of the opportunity to take part in being a trustee.
Tony Lloyd (Manchester Central) (Lab)
2. What recent steps he has taken to support the voluntary sector.
Mr Russell Brown (Dumfries and Galloway) (Lab)
3. What steps he plans to take to support the voluntary sector.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
I refer the hon. Members for Manchester Central (Tony Lloyd) and for Dumfries and Galloway (Mr Brown) to the open letter to the voluntary sector, which was sent to all MPs and published on the Cabinet Office website; it sets out our strategy for encouraging more social action and supporting civil society.
Tony Lloyd
The Greater Manchester centre for voluntary organisation estimates that a quarter of those employed by voluntary organisations are losing their jobs in this two-year period. Can the Minister honestly tell the voluntary sector through the House that with that level of cutbacks there really is a role for that sector? Volunteers need a structure in which to work.
Mr Hurd
I understand the hon. Gentleman’s point. We all have to recognise that there is less money around so some difficult choices have to be made. I simply refer him to the statement made by his own leader to the BBC on Valentine’s day this year to the effect that he could not have protected the voluntary sector from local authority cuts. There is awareness of the challenge that we all face. I know that the sector in Manchester has benefited from the transition fund and that a bid has been put in to the infrastructure fund from the organisations that support front-line organisations. Eighteen wards in the city of Manchester and 69 in Greater Manchester are eligible for the Community First grant programme.
Mr Brown
People in my constituency who are living with cancer and other long-term conditions desperately need benefits advice. It is currently provided by Macmillan Cancer Support, Citizens Advice, Welfare Rights and the Princess Royal Trust for Carers. I attended a meeting with these groups on Monday morning. Let me tell the Minister that they are under real pressure to find the financial wherewithal to go forward. Surely now is the time to make sure that these organisations have the financial support that is required to provide quality benefits advice.
Mr Hurd
I could not agree more. When I visited my local advice centre on Friday, I had a real sense of the strain and stress that its staff were experiencing. We have set aside a further £20 million of special funding for advice centres. There is also to be a short review to investigate what the Government can do to manage levels of demand on those working in that vital sector, and how we can make life easier for them.
Mrs Eleanor Laing (Epping Forest) (Con)
Does the Minister agree that voluntary groups set up by people who do what they do because they want to, and because they have a lifetime of experience in the field—one example is Home-Start in my constituency—often fulfil their roles not only in a more cost-effective way, but better than others?
Mr Peter Bone (Wellingborough) (Con)
Would the Minister welcome increased Government spending to enable the voluntary sector to deal with human trafficking? If the money went through the Salvation Army, the big society could help all charities to look after victims.
Mr Gareth Thomas (Harrow West) (Lab/Co-op)
The latest survey of charity leaders by the National Council for Voluntary Organisations shows that 30% of them expect to cut jobs in the next three months, and that some 60% expect the economic situation, as it affects such organisations, to deteriorate over the next 12 months. Given that voluntary sector capacity is being reduced, is not the truth about the big society that, on the Minister’s watch, it is about to get smaller?
Mr Hurd
I dispute that. I remind the hon. Gentleman that the leader of his party told the BBC in February that he would not make councils protect cash for voluntary groups. There is a hard economic reality here: a sector that receives £13 billion of taxpayers’ money cannot be immune to the requirement to contribute to a reduction in Government borrowing. The challenge now is for us to find a way of working together to mitigate the damage done to the voluntary sector in the short term, while preparing it for the real opportunities down the track to deliver more public services.
Jason McCartney (Colne Valley) (Con)
T6. Having heard the excellent news this week on the increase in apprenticeship places, which are up 50% to 442,000, does my hon. Friend agree that the national citizen service can also play a key role in helping our young people into work?
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
Yes, because it helps them to develop the skills that employers need.
Trade Union Officials (Public Funding)
Nick Hurd Excerpts(12 years, 11 months ago)
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The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
There was I thinking that this was going to be a quiet conversation with my hon. Friend the Member for Cannock Chase (Mr Burley) in the traditional calm of the Adjournment debate slot, but I was wrong. I congratulate him on securing the debate and the robust way in which he presented his argument.
In the short time I have, I shall try to clarify the Government’s position. First, we need to recognise that employment legislation requires employers to make available a reasonable amount of time off for trade union representatives to carry out their trade union-related duties. There are nine areas of statute where union representatives have rights to paid time off to perform their duties. These cover areas such as representation, informing and consulting, collective redundancy, learning and health and safety. There is a reason for this. There is a clearly defined framework for consultation and negotiation between managers and employees to support good employee relations.
There is a cost to that, however. The Department for Business, Innovation and Skills has estimated that paid time off for union duties costs employers £400 million annually—0.07% of the total annual pay bill—over half of which, £225 million, fell to public sector employers, with £175 million falling to private sector employers. The Minister for the Cabinet Office and I agree that it is important that the right balance is found between effective representation of trade union members and value for money for the taxpayer.
Robert Halfon
Of course we understand that there is abuse, but does my hon. Friend accept that there are neutral unions that use facility time constructively? For example, the First Division Association uses facility time to resolve workplace disputes and to help families of Foreign Office staff relocate overseas. That is valuable work and we should be grateful that the FDA does it. I say that only to make the point that not all unions are made up of the Bob Crows described today.
Mr Hurd
I accept my hon. Friend’s valuable point, but there is clearly a case for reviewing whether we have the right balance.
My hon. Friend the Member for Cannock Chase asked a number of questions that I would like to try to address in the time available, so I am afraid that I will have no time for interventions. He asked about the distinction between paid time off for union duties and unpaid time off for union activities, and asked what the Government were doing about union officials who, in his words, “play the system” and use their paid time off for political activities. The ACAS code of practice on time off for trade union duties and activities provides a detailed framework for those matters. It sets out examples of trade union duties that should attract reasonable paid time off and examples of trade union activities that can attract reasonable unpaid time off. A review of current practice is under way in the civil service, but, anecdotally, we believe that many Departments, if not most, currently give paid time off for such trade union activities where reasonable unpaid time off may be more appropriate.
My hon. Friend then asked whether the Government were planning to mandate public bodies to record more accurately which time is taken off for political activities that should not funded by the taxpayer. He will be aware that the Minister for the Cabinet Office announced at the Conservative party conference that the Government intend to consult on ensuring transparency about union facility time for which Departments—and ultimately the taxpayers—are paying. We will publish information on civil service trade union representatives and the amount of paid time that is spent on union work, as well as the overall percentage of the pay bill for which this accounts.
Mr Hurd
I said that I would take no more interventions because of the time.
The central point that my hon. Friend the Member for Cannock Chase made, about the 1992 Act, is a matter for Ministers from the Department for Business, Innovation and Skills to answer. However, I assure him that I will make them aware of the points that he made and ask them to write to him directly.
In answer to the list of questions that my hon. Friend asked at the end of his speech—about Government plans to end taxpayer-funded full-time trade union work in the public sector, end full-time representatives and require transparency about the costs of trade union representatives—the Minister for the Cabinet Office also announced at the Conservative party conference that the Government intend to consult the civil service trade unions on the following propositions. We will consult on introducing a cap on the amount of facilities time that Departments can offer, to bring it into line with the statutory requirements. We will consult trade unions on the practice of allowing trade union representatives to spend 100% of their time on trade union work paid for by the civil service.
Mr Hurd
I will not, out of courtesy to my hon. Friend who secured the debate, as I want to try to answer his questions.
We do not think it reasonable for the civil service to pay people purely to do union work. It is arguably impossible for them to represent the views of the staff in their Department adequately if they are not embedded in its work. In some circumstances, Departments go beyond the requirements of the law by giving paid time off for trade union representatives to take part in internal trade union activities, such as executive group meetings, annual conferences and recruitment meetings. To address that we will consult trade unions about any practice of paying for such trade union activities, with a view instead to enabling employees to take reasonable unpaid leave, as required in statute. In order to ensure transparency about the union facility time for which Departments are paying, we will publish information relating to civil service trade union representatives and the amount of paid time spent on union work, as well as the overall percentage of the pay bill for which this accounts.
As for whether we would go further with employment legislation, I have said that BIS Ministers would respond more fully to that point. However, there are no plans for the law on trade union facility time to be changed specifically for the public sector or otherwise. A reasonable amount of paid time off can offer value for money for the taxpayer. For example, it can minimise working time lost owing to disputes and accidents at work. However, it is important that the Government ensure that public sector employers manage the paid time off that they grant their union representatives effectively to deliver those potential benefits, which are the justification for spending taxpayers’ money.
In answer to the last point that my hon. Friend made, about the grant for the union modernisation fund, there are currently no plans to review the Government’s existing commitment to the union learning fund, as set in “Skills for Sustainable Growth”.
In conclusion, as I have said previously, it is important that employees are represented fairly by union officials. However, in the current financial climate, it is right that the vital balance is found between effective representation of trade union members and value for money for the taxpayer. The measures proposed by the Minister for the Cabinet Office will address the current burden on the taxpayer, while wider transparency measures will ensure that other public sector organisations offer value to the taxpayer. It is essential that we achieve a fair balance on behalf of the taxpayer, and I am happy to keep my hon. Friend updated—
Oral Answers to Questions
Nick Hurd Excerpts(13 years ago)
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Mark Lancaster (Milton Keynes North) (Con)
3. What steps he plans to take to put in place a system of regular review of remaining public bodies following the implementation of the provisions of the Public Bodies Bill.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
The Government are committed to reviewing non-departmental public bodies every three years. The reviews will provide a much needed, robust challenge for the continuing need of individual bodies and ensure that the body is complying with recognised principles of good corporate governance.
Mark Lancaster
Will the Minister remind the House how much money he anticipates will be saved as a result of the Bill? Given the spending on so many quangos, much of which is so wasteful, are we not being slightly modest in our ambitions? Is there not even greater scope in future years to save yet more money?
Mr Hurd
My hon. Friend is entirely right—he should be nudging us to be more ambitious. We have placed on record what we think is a conservative estimate of cumulative administrative savings from reforms already identified of at least £2.6 billion over the spending review period, but we expect that to be a start rather than a finish.
Mrs Jenny Chapman (Darlington) (Lab)
Is the Minister concerned that some of the public bodies may be being abolished with a little too much haste, particularly given the riots in the summer? The Youth Justice Board was very successful in reducing youth offending by around 34%. Does the Minister not worry that we will get rid of some of the bodies in too much of a hurry?
Mr Hurd
The Youth Justice Board still exists. What we have set up with the Public Bodies Bill is a framework and mechanism for enabling reform. Each Department has to come to the House with a case for reform, which needs to be debated and processed through secondary legislation. That is what we have set up, so Parliament will have plenty of opportunity to scrutinise and debate.
Tessa Jowell (Dulwich and West Norwood) (Lab)
In 2009, it was agreed that the office of the chief coroner would be established to improve support for bereaved families. The decision was taken with support from both sides of the House. In the passage of the Public Bodies Bill, the Government have signalled that they intend to abolish the office of the chief coroner before it has even been established. Which organisations are in favour of its abolition?
Mr Hurd
The right hon. Lady knows from our Second Reading debates that there are strong opinions on this subject. I refer her to what I said before; the mechanism that we have set out is for a genuine debate on the proposed reforms. That is what the Bill enables, and she and I, or appropriate colleagues, will have that debate in Committee in forthcoming weeks and months.
Mike Freer (Finchley and Golders Green) (Con)
4. What estimate he has made of the savings to the public purse arising from the work of the Efficiency and Reform Group in 2010-11.
Jonathan Ashworth (Leicester South) (Lab)
7. What estimate he has made of the financial cost to the voluntary and community sector organisations of recent public disorder in England.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
Since the riots, we have remained in close contact with our strategic partners, who are feeding in information about the impact of the riots on community groups. I have a meeting next week with community groups and sector representatives to discuss that impact and the way forward.
Jonathan Ashworth
I am grateful to the Minister for that answer. At the height of the disturbances that hit Leicester, the Age Concern ambulance bus was torched. Despite what the Prime Minister indicated to me in his statement of 11 August, Age Concern is not eligible for the compensation schemes. Will the Minister look urgently at setting up a compensation scheme for charities so that Age Concern in my constituency can replace its ambulance bus as quickly as possible?
Mr Hurd
I was as shocked as anyone by the torching of the Age Concern ambulance. My understanding is that under these circumstances, damages are recoverable from the high street support scheme. I have been informed that officials have sent that information through. I would be very happy to meet the hon. Gentleman and representatives of Age Concern if there are continued problems with this issue.
Mr David Evennett (Bexleyheath and Crayford) (Con)
Does my hon. Friend agree that voluntary organisations are the backbone of our local communities and that any damage to their property or organisation diminishes their opportunity to assist the individuals and groups that are most in need?
Mr Hurd
I could not agree more with my hon. Friend, which is why I am meeting many sector representatives and community groups next week to discuss the impact and the way forward. He knows as well as I do that we are doing a huge amount to support community organisations through deregulation and by making it easier for them to access finance.
Roberta Blackman-Woods (City of Durham) (Lab)
How much money does the Minister think he will have to put into the national citizen service to prevent future riots? How will he ensure that that is not done at the cost of general voluntary and community services that support young people, especially given that they are incurring additional costs in helping communities to rebuild after the riots and are subject to Government cuts?
Mr Hurd
We are hugely enthusiastic about the national citizen service; much more, apparently, than the Opposition Front Bench. The experience from this summer is that it has been a fantastic experience for young people, connecting them with a chance to do something really positive in their communities. We are piloting it, but have to proceed cautiously because a lot of taxpayers’ money is involved. As the Prime Minister has made quite clear, we are keen to expand it as fast as we can.
Caroline Nokes (Romsey and Southampton North) (Con)
8. What recent progress he has made on the national citizen service pilots.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
We are absolutely delighted with the progress of the national citizen service. About 8,500 young people enjoyed an extremely positive experience this summer. The feedback has been fantastically positive and we will publish an evaluation report shortly on this year’s pilots.
Caroline Nokes
I thank the Minister for that response. Will he confirm that he will look to involve organisations such as the YMCA, which has a fantastically strong track record of providing constructive activities for young people, in the delivery of the scheme?
Mr Hurd
I share my hon. Friend’s high regard for the YMCA and lots of other youth organisations across the country. As I said, we are ambitious to expand the national citizen service and are looking to commission up to 30,000 places next year. We are actively reviewing a list of applications and bids from a great diversity of suppliers. We will announce the results of that shortly.
Huw Irranca-Davies (Ogmore) (Lab)
I know that the Minister is still working out the fine details of the scheme, but may I urge him not to reinvent the wheel, but to make the best use of the Prince’s Trust and the Duke of Edinburgh’s award scheme, of which I am a gold member? As well as not reinventing the wheel, I urge him not to break the spokes in the wheel by shattering youth service provision throughout the country as very good schemes go to the wall under this Administration.
Mr Hurd
I should make it clear that we are deliberately offering 16-year-olds in this country something new and distinctive. If the hon. Gentleman listens to the kids on the programme this year, he will hear that they see it as being very different from the Duke of Edinburgh’s award and the Prince’s Trust. It is set up to be different, and that is why we are piloting it. As I said, we are extremely enthusiastic about the feedback.
Karl MᶜCartney (Lincoln) (Con)
T2. In the light of the excellent work in Lincoln this summer of the pilot national citizen service managed by the Lincolnshire and Rutland Education Business Partnership, can my hon. Friend assure me that careful consideration has been given to the EBP’s bid for next year, which I wholeheartedly support, so that it can be the deliverer of the NCS for the whole of Lincolnshire in 2012?
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
I am grateful to Lincolnshire and Rutland Education Business Partnership for the excellent work that it has done this summer, which is a really good example of communities working together to support the NCS. As I have said before, we are giving careful consideration to all bids received to run the 2012 pilots and will be making an announcement very shortly. [Interruption.]
Mr Speaker
Order. There really is far too much noise in the Chamber. It is very discourteous to the Member asking the question and the Minister whose answer we want to hear. I hope the House will show some respect for Mr Sammy Wilson.
Sammy Wilson (East Antrim) (DUP)
What arrangements does the Minister intend to put in place to ensure that places such as Northern Ireland benefit from the opportunities presented by the big society bank?
Jason McCartney (Colne Valley) (Con)
T4. I enjoyed a very rewarding week of volunteering in my constituency during the summer with Mencap, the National Trust, Kirkwood hospice, the Forget Me Not Trust and many more. Does the Minister agree that volunteering should be a key component of the national citizen service?
Mr Hurd
I congratulate my hon. Friend on the sterling example that he has set others. Of course, one of the purposes of the national citizen service is to connect young people with their power to make a positive difference in their communities. If he had visited some of the pilots that I did, he would have been absolutely inspired by the enthusiasm with which they undertook that task.
Duncan Hames (Chippenham) (LD)
In opening access to public data on the performance of our publicly subsidised railways, does the Minister recognise that real-time running information would be even more powerful in driving innovation that would aid the travelling public? Will he get train operators to be more open with such public data?
Nicky Morgan (Loughborough) (Con)
T8. Does my hon. Friend agree that the promotion of youth organisations such as the Passion youth centre in Shepshed, which are often set up by churches, should be a cornerstone of the Government’s response to the riots over the summer?
Mr Hurd
I should certainly like to join my hon. Friend in congratulating the Passion youth centre and the local churches that support it. That seems to be an excellent example of the community pulling together to make better use of an old facility, which is exactly the type of thing that we are trying to encourage through the Localism Bill, Big Society Capital and the Community First grant programme.
Parliamentary Commission for Administration and Health Service Commissioner for England
Nick Hurd Excerpts(13 years, 2 months ago)
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The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
I beg to move,
That an humble Address be presented to Her Majesty, praying that Her Majesty will appoint Dame Julie Mellor to the offices of Parliamentary Commissioner for Administration and Health Service Commissioner for England.
Mr Deputy Speaker (Mr Lindsay Hoyle)
With this it will be convenient to discuss the following motion, on the remuneration of the Parliamentary Commissioner for Administration and Health Service Commissioner for England:
That, in the opinion of this House, the salary paid to the Parliamentary Commissioner for Administration and Health Service Commissioner for England should be £152,000 a year, a sum within the range of salaries payable to Permanent Secretaries in the civil service as required by section 2(2) of the Parliamentary Commissioner Act 1967, as amended by the Parliamentary and other Pensions and Salaries Act 1976; and that this should be subject to (a) any relevant increase for Permanent Secretaries recommended by the Senior Salaries Review Body and (b) after the end of the current pay freeze, 1 per cent. annual uprating in lieu of performance pay; and considers that in future, and subject always to the statutory requirements, the remuneration of the Parliamentary Commissioner for Administration and Health Service Commissioner for England should be agreed by the Prime Minister and the Chair of the Public Administration Select Committee in advance of the recruitment process, and reported to the House, prior to the House being invited to agree to an humble Address on such an appointment.
Mr Hurd
The first motion asks that an humble address be presented to Her Majesty, praying that Her Majesty will appoint Dame Julie Mellor to the offices of Parliamentary Commissioner for Administration and Health Service Commissioner for England. The second motion sets out the detail of her remuneration, and goes on to state that, in future, the remuneration for that role should be agreed between the Prime Minister and the Chairman of the Public Administration Committee before the start of the recruitment exercise. Dame Julie will be appointed for a non-renewable fixed term of seven years.
First and foremost, I wish to record the Government’s gratitude to Ann Abraham, who has undertaken the role of Parliamentary and Health Service Ombudsman with great commitment, independence and integrity. She has done much over the past nine years to increase the understanding of the work of ombudsmen.
The Government are also grateful to my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) and other members of the Public Administration Committee for their role in the selection of Dame Julie. In a departure from previous practice, the House has led on the appointment process, working in close co-operation with the Government. The Government are pleased that the new arrangement for the appointment of the ombudsman has worked well and delivered an excellent candidate in Dame Julie. The appointment process has included the PAC undertaking a pre-appointment hearing with Dame Julie. The recommendations contained in the Committee’s two reports, published following that hearing, form the basis of the Government’s two motions and I commend them to the House.
Mr Hurd
There have been sincere tributes from both sides of the House to the work of Ann Abraham, and it is clear that she has made an outstanding contribution. Her legacy will be a valuable and lasting one, not least, as my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) said, in relation to Equitable Life.
I am delighted that there is such consensus about the qualities of Ann Abraham’s successor. Dame Julie Mellor’s record as chairman of the Equal Opportunities Commission demonstrates that she is able to perform well in a high- profile and sometimes controversial role, and is prepared to assert her independence and authority when required— all crucial traits, I am sure we agree, for a successful ombudsman.
A number of Members have made points about the remuneration arrangements for the role. The Government make no apology for subjecting highly paid public sector roles, particularly those paying more than the Prime Minister’s salary, to a strict policy of scrutiny and pay restraint, and do not believe that this undermines the status and independence of the ombudsman role. As set out in the motion, Dame Julie has agreed to accept an annual salary of £152,000, which will be subject to the current public sector pay freeze. Thereafter, the remuneration will be uprated in line with the text of the motion.
Sir Peter Bottomley
I do not make this as a personal remark. Could my hon. Friend consider, with his colleagues, making a written ministerial statement any time the Government next intend to negotiate the pay after a candidate has been chosen?
Mr Hurd
That leads me on to my next remark. The Government have reviewed the way the process was conducted and have been quick to accept the Public Administration Committee’s recommendation that for future appointments to the role, the remuneration arrangements should be agreed between the Prime Minister and the Chairman of that Committee before the start of the recruitment process. This commitment is reflected clearly in the Government’s motion.
My hon. Friend has raised the possibility of using any legislation coming out of the Government’s recently published open public services White Paper to enshrine these new arrangements in statute. As he knows, the Government’s proposals in relation to the ombudsmen set out in that White Paper are at an exploratory stage, and it is too early to know what may be required in terms of legislative reform, but the crucial point is that the Government are committed to these new arrangements going forward and that commitment is clear from the terms of the motion. Subject to the outcome of that debate, should a suitable legislative opportunity arise in the future, the Government will give serious consideration to enshrining the new appointment and remuneration arrangements in statute.
Sir Peter Bottomley
On a point of order, Mr Speaker. Would it be possible for the Chair of the Public Administration Committee to make the point that he was hoping to make?
Public Bodies Bill [Lords]
Nick Hurd Excerpts(13 years, 2 months ago)
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The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
This has been a short debate on a Bill that my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) rightly described as being very significant. It is significant in its potential impact on a large number of organisations, many of which perform significant functions and employ a large number of people. My fellow Hillingdon MP, the hon. Member for Hayes and Harlington (John McDonnell), was quite right to remind the House of the impact of the changes on human beings. Let me reassure him that I am extremely happy to meet him and the PCS group to clarify any confusion that might exist in relation to TUPE. I give that undertaking in good faith.
The debate was interesting in that it launched the Labour party’s campaign to “Back the Apple”—this from the party that introduced the cider tax! The irony has been lost on them. More seriously, it is clear that there are still profound concerns about some of the proposals on the table and that there is more need than ever for Ministers’ continued engagement regarding the Bill during its progress through Committee, should it get its Second Reading, and through the consultation processes that will have to flow in anticipation of the orders that will in turn flow from the Bill. Many arguments will be made, won and lost in that process. That is quite clear from the debate.
In the time available I will try to address some of the specific concerns that have been raised, but it is important to register that no one in the debate has, as far as I could tell, argued for the status quo. The case for reform appears to have been won, although, having listened to Opposition Front Benchers I am not entirely convinced. The truth is that when they were in power they were a lot better at moving quangos around than at abolishing them. Frankly, at the end of the Opposition spokesman’s remarks, I was no clearer about what on earth they would do if they were in power. There continues to be a complete fog about that. It is all very well talking about the case for reform, but sometimes one has to get up and do something.
The case for reform was made extremely powerfully by my hon. Friends the Members for South West Norfolk (Elizabeth Truss), for Esher and Walton (Mr Raab) and for Watford (Richard Harrington). The case was made particularly eloquently by my hon. Friend the Member for City of Chester (Stephen Mosley), who talked about the need to shine a light of accountability and transparency, with which I entirely agreed. My observation from my constituency is that people are deeply frustrated by how complex and expensive government has become. They would like it to be simplified and for it to be easier to find out who is in charge. They would like us to bear down with much greater discipline on waste and cost inflation, not least on salary inflation. That point was well made by my hon. Friend the hon. Member for South West Norfolk.
Given the cluttered and confused landscape that is quangoland, it would have been quite irresponsible for a new Government not to have embarked on a review of public bodies. We believe very strongly that by substantially reducing the number of bodies, returning functions to central Government where appropriate, and establishing a legislative framework for the outcomes of future reviews, the Bill takes a major step towards a simpler, more accountable approach to Government. The Bill will support the delivery of administrative savings from public bodies, as part of the Government’s commitment to delivering the effective, value-for-money systems that taxpayers rightly expect. Those principles should enjoy widespread support across the House, and I am very disappointed by the position of the Opposition in that respect.
There was consensus across the House that the Bill had been improved by the deliberations in the other place; I am happy to confirm that that is our view, too. There were questions, not least from my hon. Friends the Members for Harwich and North Essex, for City of Chester, and for Esher and Walton, about the triennial review, which is an important part of the new process that we are setting up. I assure them all that further detail will be forthcoming on how that review will work.
There was very little controversy, as far as I could tell, about the structure of the Bill, now that it has passed through the other place. Where there were concerns, they tended to focus explicitly on the ideas for particular bodies. I should like to focus on those that are clearly more controversial. I start with the office of chief coroner. We heard powerful speeches from the right hon. Members for Coventry North East (Mr Ainsworth), and for Wythenshawe and Sale East (Paul Goggins), and from the hon. Members for Hartlepool (Mr Wright), and for North Durham (Mr Jones). I pay particular tribute to the speeches of the right hon. Members for Coventry North East, and for Wythenshawe and Sale East, because they had the benefit of drawing on direct ministerial experience, some of which was clearly very powerful and difficult.
Mr Hurd
The hon. Gentleman was not bad, either. There are clearly arguments to be made, and won or lost. The Government clearly have to listen very hard, but the point that I would make to Members who have understandable concerns about the proposal is that there is no argument about the need for reform. As the hon. Member for Hartlepool said, we all recognise that a much better service is required for families. There is a problem around variation in quality; he made that point well. Nor is there any argument about the need for the functions of the chief coroner; the proposal is that they be transferred, not abolished. The question is: can we have reform without the person—or without the person right now, because the Government are retaining some flexibility on that point? The concern is about whether the reforms can be delivered without incurring what, on the face of it, are significant set-up and running costs—costs that were effectively ratified by the previous Government, because they commissioned the impact assessment.
Mr Jones
The Minister for the Cabinet Office and Paymaster General told us when he opened the debate that the reason behind the decision on the chief coroner’s office was money. Is the Parliamentary Secretary comfortable going against one of the main recommendations made by Dame Janet Smith in the Shipman report—that the coroner’s office be independent of Government?
Mr Hurd
Cost is a significant factor in the circumstances that we face, and we should not underestimate its importance as a consideration for the Ministry of Justice. It is committed to reform; the question is: how can those reforms be delivered in the most cost-effective way? It is clear, as I said, that the arguments will have to be made through the processes that lie before us.
Mr Ainsworth
There are processes that are to be performed, and if consistency is to be applied, there will be costs. Either the processes will be undertaken by an independent person who is part of the coronial system or, under the monstrous proposal from the Government, somehow Ministers will do them under a coronial system. It cannot be done that way.
Mr Hurd
It is obviously the responsibility of the Government to consider all the costs, but the right hon. Gentleman is ignoring the role of the Lord Chief Justice. I come back to the point that the Government recognise, as we all do, the need for reform; the question is how those reforms can be delivered in the most cost-effective way. That is the debate that will roll through Committee and beyond. Clearly, feelings run high on the issue in this House and the other place.
Mr Jenkin
My hon. Friend is making an emollient and helpful speech, but the real question is not how these issues will be dealt with during the passage of the Bill, but how they will be properly debated and adjudicated on by Parliament after the Bill is on the statute book. Will he give the House a general undertaking that these contentious issues concerning bodies that were established by primary legislation will be the subject of proper and reasonable consultation and debate when the orders come before Parliament, and that there will be an opportunity for Parliament to exercise the influence it would have exercised had we been confronted with primary legislation?
Mr Hurd
My hon. Friend’s question goes to the heart of the debate about how the Bill is structured. He understands that if this enabling Bill is enacted, it will be the responsibility of Ministers to come to this place with orders, having consulted where that remains appropriate, and make their case, with appropriate safeguards in terms of scrutiny and the capacity of the House to require the enhanced affirmative procedure. There was no serious discussion of this during the debate, but, with reference to the safeguarding procedures, I think we are in a much better place than when we started and when his Committee examined the Bill.
John McDonnell
On the point about process, because some aspects of the Bill are more contentious than others and the Government have moved from the affirmative procedure to the enhanced affirmative procedure, there may well be the opportunity on some issues to move to the super-affirmative procedure, which allows room for further amendment.
Mr Hurd
That has been considered and rejected. The enhanced affirmative procedure is considered to be adequate and proportionate. That seemed to be accepted by the other place.
I shall move on in order to give proper space for the other most contentious issue, which concerns S4C. Again, we heard powerful speeches from the hon. Member for Clwyd South (Susan Elan Jones), who is in her place, the hon. Members for Ceredigion (Mr Williams) and for Carmarthen East and Dinefwr (Jonathan Edwards), and from my hon. Friends the Members for Vale of Glamorgan (Alun Cairns), for Montgomeryshire (Glyn Davies) and for Aberconwy (Guto Bebb). My hon. Friend the Member for Montgomeryshire expressed the deep passions that the proposal has aroused. We heard from my hon. Friend the Member for Aberconwy that his office had been vandalised or attacked as a response to the Bill. My hon. Friend the Member for Montgomeryshire described S4C as the cultural backbone of Wales—a powerful phrase. The debate is about how we sustain S4C as an independent service that retains its own brand identity.
Glyn Davies
The one issue that still concerns us is the arrangements for future governance. We seek an assurance that there will be genuine consultation and opportunity for the people of Wales to have an input into that consultation. We are looking to the Minister to give us a commitment on that.
Mr Hurd
I am happy to give my hon. Friend the reassurance that the Department is extremely sensitive to concerns. As he knows, the funding settlement reduces S4C’s funding by the same amount as the DCMS’s, at about 25% over the comprehensive spending review period. We consider that fair. I do not think there is an argument about the unsustainability of the current funding arrangements for S4C. The proposed amendment described in the written ministerial statement—it was reassuring that many colleagues took great comfort from the statement—makes it clear that S4C will be funded for the long term to deliver its vital statutory functions. Everything we are proposing is about how we protect S4C, not undermine it.
Let me touch on the Agricultural Wages Board. The hon. Members for Luton South (Gavin Shuker) and for Birmingham, Erdington (Jack Dromey) were eloquent on the subject. The Agricultural Wages Board was set up to represent agricultural workers and ensure that they are paid appropriately. That is an example of a body that is no longer needed, as pay for all workers is protected by the national minimum wage, so there is no longer a need for separate representation for agricultural workers, a point made by my hon. Friend the Member for Watford (Richard Harrington).
Andrew George
I lead on DEFRA matters for the Liberal Democrats and hope that the Minister understands that I oppose the abolition of the Agricultural Wages Board. Rural workers are exceptionally isolated and in an exceptional position that I think justifies exceptional protections.
Elizabeth Truss
Farmers in my constituency certainly want less regulation, rather than more, which will enable them to be more productive and export more crops, and surely the minimum wage is effective cover for protecting workers. We need to ensure greater exports from Britain, which we will not achieve through further regulation.
Mr Hurd
I will not, with great respect, because I have given way a great deal and have limited time in which to draw my remarks to a close.
I would like to return to the core issue of why we believe the Bill is needed and deserves a Second Reading: the benefits it will deliver for good government in this country. My right hon. Friend the Minister for the Cabinet Office announced the results of a radical review programme, as a result of which we proposed that almost 500 bodies should be reformed, and in many instances those reforms are already complete or in progress. However, a large number of those bodies have a statutory basis, so legislation is required to turn the Government’s proposals into reality. In some cases departmental Bills provide an appropriate vehicle for the changes, but where that is not the case the Public Bodies Bill represents a sensible legislative solution. It gives the Government the necessary powers to take forward these much-needed reforms without Departments having to wait for primary legislation, preventing unnecessary delay where the case for change is clear.
The Bill achieves that by giving Ministers a series of powers, outlined in clauses 1 to 5, to make changes to public bodies through secondary legislation, subject to a number of safeguards, the completion of a consultation process and the approval of Parliament. I emphasise that those powers are strictly limited in scope. The powers to make orders apply only to the bodies and offices listed in the corresponding schedule to the Bill, to which bodies can be added only through primary legislation, meaning that Parliament will remain the ultimate arbiter over when the use of those powers is appropriate.
Following a review by the other place, important changes have been made to the Bill. Specifically, we have arrived at mechanisms to include a number of proportionate restrictions on the use of the powers set out in the Bill. On independence, we have introduced provision in clause 7 to prevent the Bill from being used in a way that prevents important public functions, such as those of a judicial nature, from being amended in a way that stops them being exercised independently of Ministers. On consultation, we have required that Ministers consult on their proposals before laying a draft order before Parliament. The Bill now provides the option of selecting an enhanced scrutiny procedure for any draft order, giving Parliament and its Committees 60 days to consider a proposal and make representations to Ministers. Clause 12 sunsets the contents of the schedules after five years.
In summary, the reforms we have proposed and that have been debated again today will produce a leaner and more effective system of public bodies centred on the principle of ministerial accountability. We have listened intently to the comments and concerns expressed during the debate and recognise that there are areas where the Government can helpfully produce further clarity and assurance, and the Deputy Leader of the House and I look forward to continuing to engage with hon. Members in Committee and elsewhere.
However, I reiterate my hope that the House can come together in support of the belief that ministerial accountability for public functions and the use of public money should be at the heart of how we conduct ourselves. The Government believe that the proposals embodied in the Bill and in our plans for a regular comprehensive review of all public bodies will set a new standard for the management and review of public bodies, and on that basis I commend the Bill to the House.
Question put, That the amendment be made.
Volunteering
Nick Hurd Excerpts(13 years, 3 months ago)
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The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
I start by offering my utterly genuine congratulations to my hon. Friend the Member for Southend West (Mr Amess) not only on securing the debate but on the passionate way he used it to celebrate people who give time to help others in our communities, because their contribution is absolutely enormous. It is right that we celebrate them and take the opportunity to ask what more we can do to encourage, support and value them.
My hon. Friend knows that this question is central to our vision of a society in which people feel more power and responsibility not only for their own lives but for the communities they live in and the services they use. It is the big society vision. Of course, we are not inventing something. As his powerful speech and the contributions of other Members made clear, there is already a huge range of amazing voluntary work being undertaken by individuals and groups across the country.
My hon. Friend referred to several organisations very worthy of mention and celebration in this place, including the scout movement and its work to engage and develop young people in communities, to which my hon. Friend has contributed throughout his chairmanship of the all-party scout group. It is genuinely impressive to see how the movement goes from strength to strength with the essential support of its volunteers.
We cannot be complacent or take the movement for granted, however. Statistics demonstrate that giving has flatlined and shows some worrying signs of decline. In all our constituencies, we wonder how we will replace the people who have taken a lead in our communities, but the Government are ambitious and we do not accept that decline is inevitable. We want to work with the voluntary community sector and, critically, with business, as my hon. Friend mentioned, to connect more people with the opportunity to make a difference.
I will set out some of our initial plans, which I hope will give my hon. Friend some reassurance that the Government are ambitious and extremely committed to the agenda, and perhaps address some of his specific issues.
Last month we published a giving White Paper, which sets out our stall. We want to focus on three things: making it easier to give; making it more compelling to give; and giving better support to the charities and voluntary groups that channel our generosity. That involves public investment, so we have said that we will invest more than £40 million in volunteering and social action over the next two years.
That investment will include a new social action fund to support some of the most creative and effective schemes that are being developed to inspire more giving in priority areas and to inspire groups, including young people. My hon. Friend suggested new incentives to get more people involved, and he may be interested to know that that includes piloting such initiatives as Spice “time credits”, which introduce new incentives for people to give time, including discounts and preferential access to local services. We are piloting, because new incentives may be required just to tip new people over the edge and into giving time.
We are also announcing challenge prizes to reward the best solutions for breaking down the barriers that get in the way of more giving, and we have announced a local infrastructure fund to help the amazingly valuable and important infrastructure that is out there to support community organisations and volunteering, and to help it become more efficient and more effective. Further details of how organisations can apply to those funds will be announced over the coming months.
I am delighted to say that the White Paper has received significant support from key figures in the voluntary and community sector. Sir Stuart Etherington, the chief executive of the National Council for Voluntary Organisations, says:
“This Paper draws together a wealth of intelligence on what can be done to stimulate greater levels of giving…in the UK.”
The chief executive of Volunteering England says:
“The White Paper deserves to be warmly welcomed by the…movement. It promises to make a positive advance in how people volunteer in our society and in how organisations support them.”
My hon. Friend mentioned the national citizen service, which is a hugely important initiative. It was launched this year, with more than 10,000 places available for 16-year-olds this summer, and is a fantastic opportunity to connect young people with their own power to make a contribution to their communities. Of course my hon. Friend is right: once we have lit the spark in those young people, as we hope to, we must ensure that it is the start of a journey into other opportunities to develop skills and experiences and to make a positive contribution. So, yes, we do want to work with our providers to signpost those opportunities, and I have personally delivered that message to the scouts and to Youth United, because they are entirely complementary to the national citizen service.
It is not just young people we want to inspire, however. We believe that throughout communities in Britain there are people who would get more involved in changing things in their neighbourhood if they were encouraged and supported to come together. That is especially true of relatively disadvantaged neighbourhoods where there is less obvious so-called social capital, and that is why we are investing in training 5,000 community organisers, who will bring people together in their areas and encourage and support them to make the differences they want to see in their communities. That is why we are also launching a new neighbourhood grants fund, Community First, which will incentivise local people to work together to create the change they want to see.
As my hon. Friend says, we should look to cut some of the red tape that gets in the way, while making sure that we continue to protect the vulnerable. That is why I asked Lord Hodgson to lead a joint Cabinet Office and Department for Business, Innovation and Skills red tape taskforce. Part of the role of that taskforce was to look at how to remove barriers to those wishing to become more actively involved. He recently published his report “Unshackling Good Neighbours”, and we are reviewing the recommendations that relate to addressing barriers to the giving of time. I heartily recommend the report to my hon. Friend, because I think he will appreciate that it oozes common sense from every page. It is a thoroughly good read. As I said, we are reviewing the recommendations and seeing what we can action as quickly as possible.
My hon. Friend mentioned CRB checks. He will be aware that we have completed reviews of the criminal records and vetting and barring regimes. As outlined in our programme for government, the aim of the reviews was to scale back these regimes to common-sense levels. It is clear from my conversations with the sector and across communities that there is still frustration about how the CRB process works in relation to the time it takes and the restrictions on portability around the system. The main recommendations of the reviews, which are being taken forward under the Protection of Freedoms Bill currently going through Parliament, are to reduce the coverage of the schemes to individuals who have close and regular contact with vulnerable groups; to place a greater onus on employers and voluntary organisations to decide when to carry out checks and to make it easier to carry them around the system; and to introduce continually updated CRB checks to reduce the need for employees and volunteers to have new checks when they move positions.
In addition, we announced in the Budget—this is all in the context of trying to make it easier to volunteer—that all drivers who use their vehicle for work or volunteering will now be able to claim 45p per mile for the first 10,000 miles, an increase of 5p per mile. I am sure that my hon. Friend will know that there was frustration across constituencies about the rising cost of giving time in this regard, and we think that this will help. The Department for Work and Pensions and Jobcentre Plus have been working with the Cabinet Office and key representatives of the voluntary sector to tackle the real and perceived barriers to unemployed people volunteering.
We are very conscious of the need to lead by example. That is why we are encouraging civil servants to volunteer by turning the civil service into what we call a civic service. They will spend more time out of Departments and in communities working with organisations, and we believe that we will get better civil servants as a result. We are taking a lead in encouraging civil servants to do at least one day of volunteering each year using special leave. We hope that this sets a good example to other employers. One of the reasons I am so optimistic about this agenda is that increasingly businesses are recognising that it is in their commercial interests to encourage their human resources to give time and stretch themselves in different contexts. It is not just about PR value or community value but about developing their most important assets, which are human. We want to lead by example with the civil service, and we are very much encouraging business to follow.
I recommend to my hon. Friend an excellent speech made by the Prime Minister—of course, every speech that he makes is excellent, but this one is particularly good—called “Every Business Commits”, which speaks very strongly to businesses about what we expect as regards encouraging more social responsibility.
My final point concerns a matter on which my hon. Friend placed a lot of importance. In addition to implementing these programmes, it is essential that we recognise and reward inspirational examples of good practice in volunteering and social action. To achieve this, the Government have created the big society awards. I do not know if he is aware of that, but I can write to update him on how every single Member of Parliament can nominate individuals and organisations in their constituencies for these awards. We also continue to support and promote the Queen’s award for voluntary service. I was delighted to hear about his own personal initiative on celebrating local heroes, and I wish him every success with that.
I would again like to thank my hon. Friend for calling this debate this evening. As I highlighted, there is already a lot of excellent voluntary work taking place across the country. In the years to come, we hope to grow volunteering and social action and enable the existing good practice to become the norm. I hope that I have reassured him that the Government are extremely ambitious about and very committed to encouraging more people to get involved in their communities.
Question put and agreed to.
Oral Answers to Questions
Nick Hurd Excerpts(13 years, 3 months ago)
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Duncan Hames (Chippenham) (LD)
1. What plans his Department has to help match young people with volunteering opportunities.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
We are investing in the national citizen service, which will be very powerful in connecting young people with their own power to make a contribution to the community. In addition, we will invest £40 million over the next two years to support volunteering infrastructure and social action.
Duncan Hames
I thank the Minister. Grow, the organisation behind Wiltshire’s volunteer centre in Chippenham, is keen to extend the range of support it provides in matching young people with volunteering opportunities as part of Wiltshire council’s volunteer strategy and action plan. Will the new local infrastructure fund be able to support such initiatives, be they in Wiltshire or elsewhere?
Mr Hurd
I was in Devizes constituency in Wiltshire on Friday, and I recognise that Wiltshire council represents best practice in many ways in supporting local voluntary organisations and local infrastructure. I am delighted about the local infrastructure fund, because it will help existing infrastructure assets become even more efficient and effective in supporting front-line voluntary organisations and encouraging local people to get involved.
Mrs Jenny Chapman (Darlington) (Lab)
We all support efforts to encourage volunteering, but does the Minister share our concern that under proposals in the Protection of Freedoms Bill on the vetting and barring scheme individuals who are barred from working with children will be able to volunteer in schools, and without the school’s knowledge?
Mr Hurd
The Bill contains very important reforms to vetting and barring, and critically to the Criminal Records Bureau process, which many Members will know from their constituencies is a source of considerable frustration for people who are trying to volunteer. I agree with the reforms that will make that process simpler, more effective and more portable.
Karl MᶜCartney (Lincoln) (Con)
2. What steps he is taking to prepare for potential industrial action in the public sector.
Andrew Bridgen (North West Leicestershire) (Con)
3. What steps he is taking to encourage increased levels of giving.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
The Government are anxious to encourage more giving. On 23 May, we published a White Paper that set out a range of ways in which we can help to make giving easier and more compelling, and offered better support for charities, community groups and social enterprises.
Andrew Bridgen
Although people in the UK are very generous compared with Europeans, the rate of UK charitable giving remains only half that of the rate in America. What further steps will the Minister take to encourage us to give up to the level of our American cousins?
Mr Hurd
My hon. Friend is right—we are a generous country—but giving has flatlined, despite substantial interventions from previous Governments. We do not accept that as being inevitable, and we want to help people to give more. He will know that the Chancellor announced generous incentives in the last Budget. The White Paper contains many ideas, including a social action fund to support creative, new models that incentivise people to give.
Mr Nigel Dodds (Belfast North) (DUP)
More people would be encouraged to give, especially to health care charities, if the issue of irrecoverable VAT on all non-business supplies was sorted out. Discussions are being held with the Treasury, but will the Minister ensure that they are expedited so that a mutually acceptable solution is reached as quickly as possible?
Stuart Andrew (Pudsey) (Con)
I spent 16 years in the fundraising sector. Does the Minister agree that one giving barrier for many people is the abolition of cheques?
Roberta Blackman-Woods (City of Durham) (Lab)
The House will note that the giving White Paper states that the Government aim to support and manage opportunities for giving, but what will the Minister do to monitor what sums are given and to which organisations? Does he intend to plug funding gaps, should they arise, so that poor areas of the country are not disadvantaged? Indeed, if donations continue to fall, is it a sensible strategy to rely on philanthropy to fill gaps in public funding?
Mr Hurd
The Government see a substantial opportunity to encourage more giving, bearing in mind that 8% of the country do 47% of the giving. The hon. Lady asks about money for more deprived areas. Our “community first and community organiser” programme, which is worth about £80 million, is exclusively targeted on the most deprived communities. The programme incentivises the local giving of time and money to support social action projects led by those communities.
Mr Philip Hollobone (Kettering) (Con)
4. What steps he is taking to enable young people in (a) England and (b) Northamptonshire to participate in the national citizen service in the summer of 2011.
James Morris (Halesowen and Rowley Regis) (Con)
6. What steps he is taking to enable young people to participate in the national citizen service in the summer of 2011.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
As my hon. Friend the Member for Kettering (Mr Hollobone) knows, we are offering more than 10,000 places to 16-year-olds this summer, including 135 in Northamptonshire. Our 12 providers are working hard to ensure full participation. I hope that he will lend his personal support to Catch22 and the Prince’s Trust in his area.
Mr Hollobone
What steps are being taken to encourage full participation in the scheme, and how can parents get involved to encourage youngsters to take up this challenge?
Mr Hurd
Our providers are working very hard to ensure full participation in the pilots by engaging schools, working with local media, and using social networking sites, including a dedicated Facebook page. The Minister for the Cabinet Office and Paymaster General and I will write to every colleague in the House with details of how they can engage with their local provider, because we would like them fully to support this exciting and positive opportunity for young people in their constituencies.
James Morris
There are a number of national citizens service pilots in and around my constituency. Does the Minister agree that we need to find ways of increasing and deepening access to this scheme in the most deprived areas by using innovative ways of communicating with youth clubs and other local institutions?
Mr Hurd
My hon. Friend raises an important point. One of the key benchmarks for success of the scheme is creating the right social mix on residential courses. The aim is to create opportunities for young people to meet people they would never otherwise expect to meet. That is very much part of the obligation on our providers and we are monitoring it very closely.
Steve McCabe (Birmingham, Selly Oak) (Lab)
I welcome this initiative, but does the Minister agree that the Government need to do much more to prevent a repeat of the ‘80s, when so many young people ended up on the scrapheap?
Mr Hurd
I thank the hon. Gentleman for his constructive engagement with the national citizen service concept. I obviously reject his thesis and would point him to the investment in apprenticeships and everything else that we are doing. I urge him not to underestimate the potential of this programme to transform young people’s sense of what they can achieve.
Bill Esterson (Sefton Central) (Lab)
May I ask the Minister again about the barriers to young people from deprived areas getting involved in this scheme, especially in the pilot projects, for which, in half of the cases, young people are being charged up to £99? Does he agree that such charges will be a severe disincentive to young people from those areas, and will he take action?
Mr Hurd
We have made it clear—I have done so personally—to every provider that money should not be a barrier to participation in the pilots. We are experimenting with a range of models to gauge people’s willingness to pay for the value that the models add, but we have made it very clear to providers that money should not be a barrier to participation.
Dan Jarvis (Barnsley Central) (Lab)
5. What progress his Department’s counter fraud taskforce has made in tackling benefit fraud.
Charlie Elphicke (Dover) (Con)
8. What recent representations he has received on the provisions of the Public Bodies Bill.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
As my hon. Friend knows, the Bill has completed a tortuous but constructive passage through the other place, and we hope for a Second Reading in this place soon. In the meantime, the Cabinet Office and other relevant Departments are holding information sessions for colleagues who want to discuss this important Bill.
Charlie Elphicke
I thank the Minister for his reply, his hard work and the excellent job he is doing on the Bill. Under the Bill, public statutory corporations such as British Waterways will be reformed and become mutuals. Have Ministers considered other similar public bodies, such as trust ports, for inclusion in the Bill?
Mr Hurd
I understand that my hon. Friend is frustrated by the pace of progress in his committed and spirited attempt to allow the people of Dover to take over the port. He will know that the Transport Secretary, who is sitting alongside me, has announced a consultation on the criteria for assessing the sale of trust ports in England and Wales, largely to reflect the Government’s localism and big society agendas. It is right for that consultation to conclude before further decisions are taken.
Tessa Jowell (Dulwich and West Norwood) (Lab)
In March, the Minister for the Cabinet Office claimed that he would make £30 billion of savings from his quango reform programme embodied in the Public Bodies Bill, so that he could
“protect jobs and front-line services.”
My freedom of information requests show, however, that nearly £25 billion of this £30 billion comes from front-line cuts to housing and our universities, including teaching and research. Will he apologise for these misleading statements about protecting front-line services?
Mr Hurd
No—and I am surprised by the line of questioning, because this programme of very overdue reform to the complex landscape of quangos and non-departmental public bodies goes exactly with the grain of the reforms proposed by the previous Government. We are going further in trying to deliver much greater accountability in government, and, on the way, delivering what we believe will be about £2.6 billion in communicative and administrative savings over the spending review period.
Mr David Evennett (Bexleyheath and Crayford) (Con)
T1. If he will make a statement on his departmental responsibilities.
Mr William Bain (Glasgow North East) (Lab)
T5. By 2014, civil society will be losing £2.9 billion a year in revenue—the same as the amount forgone in corporation tax by big companies in the United Kingdom. Why are the Government being so soft on big business and so tough on charities and the voluntary sector?
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
I reject that statement absolutely. The hon. Gentleman is pulling numbers for lost income to the charity sector out of the air and completely ignoring the volume of public sector contracts going in, not least through the recent Work programme, which is worth at least £100 million a year. As for big business, I would simply refer him to a speech made by the Prime Minister last year called “Every Business Commits”.
Stephen Hammond (Wimbledon) (Con)
T4. You will be aware, Mr Speaker, that my constituency will hold a national sporting event in the next fortnight, the enjoyment of which could be undermined by strikes proposed by the unions. Does my right hon. Friend agree that these strikes are unnecessary, and will he confirm the Government’s commitment to talks to ensure that they do not have to happen?
Volunteering Bill
Nick Hurd Excerpts(13 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
May I add my voice to those wishing the Duke of Edinburgh a very happy birthday today? May I also congratulate my hon. Friend the Member for Christchurch (Mr Chope) on his prodigious fertility in terms of private Members’ Bills in this Session, but also, in the case of this particular baby, on its characteristic simplicity in terms of its structure? The Government cannot support it, for reasons that I will go into in whatever detail I can in the time that we have, but it is, as the hon. Member for City of Durham (Roberta Blackman-Woods) also took the opportunity to say, a welcome opportunity to recognise the astonishing contribution of millions of people in constituencies throughout the country who give time to help others, and those groups, such as WorldWide Volunteering, but there are many others, which help people to use that time and inspire and connect them with opportunities to help others. It is that generosity in that landscape of that ecosystem of civil society organisations that is one of the things that makes this country great, and we should absolutely recognise it.
It is also right regularly to be asking ourselves the question: what can we do to make it easier in 2011 in modern Britain, with all the pressures on people’s time and, at the moment, money, to get involved, to support each other, to help to create the changes that people want to see? It goes to the heart of how we build a stronger sense of community where people have more power and responsibility for their lives, their communities and the services they use—the absolute aspiration of the big society vision. When it comes to encouraging and supporting social action, which is the context of the Bill, it is clear that we need to do something. We are a generous country—the statistics show that clearly—but it is also clear that giving has flatlined and there are worrying signs of decline, not least in terms of the giving of time. We have a sense of this from our own constituencies and community associations, and the difficulties that they have in finding new people to come forward. The charity world is increasingly concerned. Some people say that we cannot change this, that it is as good as it can get, but we do not accept that decline is inevitable, and our research and consultation suggest that there are people and organisations who would like to do more and could do more, but too many things get in the way.
As the hon. Lady said, there is an issue around lack of time in 2011, or perception of lack of time for many people. Often people find it difficult and complicated. For too many, the experience of volunteering, given time, is not as rewarding as it could or should be. There is a lack of awareness of opportunities, or where to start looking. There is an issue around bureaucracy—I do disagree a little with the hon. Lady here—and there is an issue around the CRB. She tried to make a case about why Lord Hodgson ignored this issue. There is a simple explanation: he recognised that other reviews of vetting and barring and of the CRB regime were going on and he took a view, I think quite sensibly, that he needed to focus the efforts of a limited resource exercise on areas where he felt that he could add more value. But his report “Unshackling Good Neighbours”—I recommend it to all colleagues—is a dose of common sense, when common sense is needed.
There is an issue around the CRB checks. I remember going to talk at a forum in Westminster and a gentleman coming up to say that he had 80 people waiting to volunteer, but they were being frustrated and held back because of the time it was taking for their CRB checks to come through. As the hon. Lady knows, there is frustration out there with the lack of opportunities to carry CRB checks around the system—the portability issue.
That brings me to the Bill. There are reasons why we cannot support it, however well intentioned it is. I hope to have the chance to summarise those reasons and our preferred approach. I hope that I can satisfy my hon. Friend about two things. In the specific context of the Bill we want to reduce bureaucracy and the cost attached to it, but without diminishing public protection, because we have duties in this regard that we cannot trivialise or walk away from. Secondly, we are fully committed to promoting volunteering, which is the Bill’s stated aim.
We have considered the Bill carefully in the time that we have been allowed and, although we welcome its aims, we oppose it principally for three reasons, the first of which is the most important; the other two flow from it. The first reason is that for the proposed fit and proper person certificate to be successful, a means of independent verification and checking for accuracy would be required. We simply could not, with any sense of responsibility, leave that as a free-for-all. There is of course a balance to be struck between protection and trust, but we think that a basic level of protection and independent verification of claims is necessary and believe that the CRB check fulfils that role, although we are very clear that it needs to be reformed and retuned in terms of proportionality and a return to common sense.
Mr Chope
I am not surprised that that is the Minister’s approach, although I am disappointed. How, then, does he think it is reasonable that Her Majesty’s Revenue and Customs can allow trustees of charities to deal with large sums of money on the basis of a mere declaration that is subject to no independent verification?
Mr Hurd
I think that the contexts are completely different. As I go on to explain what we are doing to reform the CRB process, I hope I will go some way towards satisfying my hon. Friend that we intend to reduce bureaucracy without undermining basic protection.
Our other concerns flow from the premise that some form of independent verification is required, and the Bill is silent on how that will work. Our concern is that we will be replacing one form of bureaucracy with another, and with costs attached. I will set out briefly a summary of what we are doing in relation to the existing CRB system in the light of the concerns that have been expressed.
We announced in the coalition programme for government a commitment to
“review the criminal records and vetting and barring regime and scale it back to common sense levels.”
The outcomes of the reviews were published on 11 February and three of the recommendations are particularly pertinent to the Bill. First, CRB checks will in future be provided only to the applicant, which will enable them to challenge any disputed or inappropriate information before it is seen by an employer or volunteering organisation. That is an important issue. I had a constituency case only two weeks ago in which a gentleman was appalled to see the information on his statement, so this change is important.
Secondly, and critically, CRB checks will be made more portable between different employers by introducing an updating service. This will enable employers to check whether a previous disclosure certificate is still valid, reducing the need for repeat checks. Thirdly, CRB checks will not be provided for anyone under the age of 16, an important point relating to clause 2, which proposes that CRB checks be restricted to those over 21. As my hon. Friend knows well, these recommendations require legislation and are being taken forward in the Protection of Freedoms Bill, which is currently going through the House. The Government believe that the current CRB check process and the implementation of the February 2011 recommendations provide the fit and proper person certificate process described in the Bill.
Mr Hurd
My understanding is that there are three levels of criminal records check: a basic disclosure, a standard disclosure and an enhanced disclosure. I may be corrected, but I do not believe that there is any proposal to change those. The changes we are making are those I have just summarised, and the most important one in this context is the one relating to portability, because that is something I hear a great deal of frustration about in the system. In summary, the most important point is the need for independent verification. Those are the reasons why we cannot support the Bill and believe that reform of CRB is preferable to abolition.
Let me close by updating my hon. Friend and the House on what the Government are doing to promote the giving of time and of money. We published a Green Paper in December 2010, to which we have received 400 written responses, and following that we published a White Paper in May, the premise of which is that everyone can make a difference.
Our approach to supporting more giving is based on three strands of activity. The first is about making it easier to give by helping it to fit into everyday life, so the White Paper sets out new ways we will support the giving of money, such as through donations at ATMs. In terms of time, we explicitly support the pilots of flexible, self-managed volunteering platforms, which allow people to give small amounts of time. Time can be a major constraint, but entrepreneurs are developing models that allow people to control and to deliver time in more flexible packages, and we want to support more of that.
We want also to give people better information about opportunities, which is why we are spending £1 million on the Do-it volunteering database and working with it to open up those data so that they can be accessed more widely. We are using challenge prizes to stimulate innovation and giving people new ways to access opportunities through mobile phones in order to give time—a critical development, particularly in relation to inspiring and connecting young people.
We are also investing in community organisers— people who are literally going to walk the streets, knock on doors, find out what people care about and get them together to take action, connecting them with local support and, not least, local businesses, which in my experience want to do more but want to be connected with the right opportunities that really meet local need.
We are, as I have laboured to make clear in this debate, looking at bureaucracy and red tape—the things that frustrate—through CRB reform and the red tape review that I have mentioned. I was delighted to hear my hon. Friend refer to the Budget and the changes to the volunteer expenses allowance, because that was definitely a real frustration in constituencies. Making it easier to give is the first strand; the second is about making it more compelling to give. The Budget introduced new incentives to give money, but we also want to support new models that incentivise people to give time, such as what are known as complementary currencies, which give people credits for volunteering. That is why we are investing £400,000 with the National Endowment for Science, Technology and the Arts in developing a pilot of Spice “time credits”, whereby in return for giving time people get discounts on local services.
Through the social action fund that we announced in the White Paper, we are looking to support the best ideas because, as I said, it is quite clear that many social entrepreneurs are building fantastically exciting platforms to make it easier and more compelling for people to give time and money. This Government want to support that entrepreneurial energy through the social action fund.
We have an £80 million community grant programme called Community First, which is focused on deprived neighbourhoods—and that is a match fund. The proposition is to put money into the hands of neighbourhood groups to help them to implement their own plans, but it will be matched—partly in time, not just in money. The fund is about incentivising people to step up, get involved and create the change that they want to see locally.
We are strong believers in leading by example, which is why we are introducing new proposals to encourage civil servants to spend more time in their communities, not just because it ticks a box on corporate responsibility, but because we expect better civil servants to result from the initiative and because we want to send a strong signal to other employers that encouraging employees to give time in their communities is a very good thing to do and in the employers’ commercial interests. Leading by example extends to an expectation that Ministers will give one day a year—the one-day challenge—to volunteering. It is sometimes dismissed as a gimmick, but it is not, because leadership by example is hugely important in that context.
The third and final strand, which the hon. Member for City of Durham touched on, is better support for those who provide and manage opportunities to give—the civil society ecosystem that I mentioned. Such individuals often perform heroic tasks locally, trying to connect people and to support front-line organisations. It is a terribly difficult operating environment, as we well know. Resources are often spread too thinly across too many organisations, and we want to use public investment as a catalyst for more efficiency in the sector, so that such individuals can be more effective with the front-line organisations in their communities. That is why we have announced £30 million as a local infrastructure fund, the details of which will be announced shortly. That follows a recommendation by the NCVO funding commission. It is about trying to support the development of more efficient local hubs, a better online resource bank for front-line organisations, and much more effective local partnerships between business, statutory agencies and local charities. I know from my own constituency that we have barely scratched the surface of what can be achieved, and we can do more.
Alongside these programmes, we are supporting the European year of volunteering, Her Majesty the Queen’s award for voluntary service, and the National Citizen Service.
Oral Answers to Questions
Nick Hurd Excerpts(13 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Helen Goodman (Bishop Auckland) (Lab)
3. What recent representations his Department has received on the big society initiative.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
I am delighted to assure the hon. Lady that the Cabinet Office receives many representations on the big society from a wide range of individuals and organisations, not least many colleagues on both sides of the House who have accepted our invitation to bring in representatives from their local voluntary and community organisations.
Helen Goodman
I do not know whether the Minister ever gets representations from voluntary sector organisations that fold. The organisation that I used to work for folded a few weeks ago. Will he admit that that is because the cuts are too deep and too fast, and the transitional fund is too little and too late?
Mr Hurd
I am obviously sorry to hear about the fate of the organisation that the hon. Lady used to work for. She will know that in reality the sector cannot be immune from the necessary cuts in public expenditure, and I do not think it would have been immune under a Labour Government. The Government have tried to give the sector maximum support through this difficult period. The transition fund—£100 million of taxpayers’ money; serious money in this context—is there to help organisations that are in a hole.
Roberta Blackman-Woods (City of Durham) (Lab)
Yesterday, Ed Cox, the director of the Institute for Public Policy Research North, said:
“Our research shows that the Big Society will not be fair to the North without changes to government support for philanthropy and charitable giving. Good will is beginning to wear thin as people in the voluntary and community sector try to deal with budget cuts, and organisations in the North cannot turn to big corporate or high value donors to make up the gap”.
What is the Minister doing to ensure that the big society does not usher in further unfairness and exacerbate the north-south divide?
Mr Hurd
I understand the hon. Lady’s point. I refer her to the geographical spread of successful applications to the transition fund, with which we are pleased. She mentioned the need for further incentives for giving in this country. I refer her to what was an extremely helpful Budget in that context, which had a major initiative to encourage giving through inheritance tax and a substantial reform of gift aid to make it easier for smaller charities to receive it on smaller donations. The Government are working extremely hard to make this difficult period of transition as easy as possible for charities.
Mrs Mary Glindon (North Tyneside) (Lab)
4. What recent estimate he has made of the number of charities and voluntary sector organisations that will be affected by reductions in public expenditure in the next 12 months.
Paul Flynn (Newport West) (Lab)
9. What recent estimate he has made of the likely change in the number of jobs in the voluntary sector as a result of reductions in public expenditure in the next 12 months.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
Unfortunately, the sector cannot be immune from cuts, for reasons that have been explained. That would have been exactly the same under a Labour Government. We are trying to help the sector to manage a difficult transition, while shaping what we believe are significant opportunities for the sector, not least in terms of more public service delivery.
Mrs Glindon
Since the late 1980s, Wallsend people’s centre has helped hundreds of unemployed and disadvantaged people in North Tyneside to gain the necessary skills to get to work. In the past year, it has lost more than £450,000 through cuts to Government grants. Four experienced support workers will now lose their jobs. Will the Minister meet me to discuss the communication he has received from the people’s centre about its plight, to which he has not yet replied?
Mr Hurd
Again, I am sorry to hear that that organisation is in difficulty. I am more than happy to meet representatives from the community to discuss it. The transition fund has been made available to help organisations in difficulty. I point out to the hon. Lady that many of the funding decisions and cuts are local decisions, and that many councils across the country are taking a positive approach by maintaining or even increasing spending on the local voluntary and community sector.
Paul Flynn
Cutting charities reduces our ability to help one another and undermines the structures of neighbourliness that form our big society. That is the opinion of the chair of the Charity Commission, who knows about these things. Is not the Government’s big society a big confidence trick?
Mr Hurd
Absolutely not. The hon. Gentleman has been around enough to know that the size of the deficit means that the sector, which receives almost £13 billion a year of taxpayers’ money, cannot be immune from the reduction in public spending, and that it would not have been immune, as the Opposition have admitted, under the ghastly scenario of a Labour Government. We have to be realistic about that. We are trying to minimise the short-term damage through initiatives such as the transition fund, and to create the building blocks for a better future for the sector, not least through more incentives for giving and more opportunities for it to deliver public services.
Nadhim Zahawi (Stratford-on-Avon) (Con)
5. When he expects the first payments from the big society bank to be made.
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
The short answer is yes. More than ever, the country needs to get behind its entrepreneurs. My hon. Friend’s local initiative sounds like an excellent one, and I would be delighted to meet him—[Interruption.]
Mr Speaker
Order. There is far too much noise and far too many private conversations are taking place in the Chamber.
Miss Anne McIntosh (Thirsk and Malton) (Con)
T4. When can the House expect the Public Bodies Bill? What will be in the Bill, and can we revert to the normal practice, whereby such controversial Bills begin in this House and not in the other place?
Mr Hurd
The Public Bodies Bill is obviously very important—it is an opportunity to improve radically the accountability of decisions and to make significant savings from the vast number of quangos that proliferated under the previous Administration. My hon. Friend will know that the Bill is passing through the Lords, with Third Reading expected on 9 May. Obviously, it is for the House authorities to determine the programming for debate in the House, but we expect the Bill to enter Committee after the Whitsun recess.
John Robertson (Glasgow North West) (Lab)
T7. A recent survey of charity leaders by the National Council for Voluntary Organisations suggested that charities are not happy, because they feel that the rhetoric that was sold to them before and after the election bears no resemblance to the money that they need to ensure that they deliver the services that are required. Forget about all the waffle, will the Minister tell us exactly how he will fund those charities and how he will ensure that they do things for people?
Mr Hurd
There is obviously understandable concern in the sector about the impact of reductions in public expenditure, but in my experience, charities are increasingly alive to the opportunity to deliver more public services—they are delighted by the announcements in the Budget to increase giving and by the progress that the Government have made in setting up the big society bank.
Karl MᶜCartney (Lincoln) (Con)
T6. Will my hon. Friend the Minister please update the House on the progress of the national citizen service? Will he join me in congratulating the Lincolnshire and Rutland Education Business Partnership, which I have met on a number of occasions, on the invaluable work that it is carrying out to pilot and promote the national citizen service?
Mr Hurd
The national citizen service provides a fantastic opportunity for young people from different backgrounds to work together to make a positive difference to their communities. I am delighted that we are offering 11,000 places this summer in many locations throughout the country. I am also delighted that that scheme is coming to Lincoln, and that my hon. Friend is taking such an active interest in such positive opportunities for young people in his constituency.
Kevin Brennan (Cardiff West) (Lab)
T8. What estimate have Ministers made of the cost of the VAT increase to charities?
Mr Hurd
VAT issues are obviously a matter for the Treasury, and I would refer that question to Treasury Ministers. As the hon. Gentleman knows—he is a former Minister—that is a long-standing issue for the sector. He will also be aware of a number of initiatives to look at how we can make the VAT regime more helpful.
Richard Fuller (Bedford) (Con)
T9. Will the Minister relax regulations on investments by foundations and trusts to empower them fully to support innovations such as social impact bonds?
Mr Hurd
My hon. Friend will know that this Government are totally committed to helping to develop the social investment market, so making it easier for social entrepreneurs to access capital. The big society bank is our major player in that area, but we are looking at a range of ideas. He will also be aware that the Charity Commission is reviewing its guidance to foundations, which have a critical role to play in that context.
John Woodcock (Barrow and Furness) (Lab /Co-op)
T10. Why is the public sector mutual fund late in going out to tender, and when will it be ready to accept bids?
Educational Bodies (Oversight as Charities)
Nick Hurd Excerpts(13 years, 6 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
The Under-Secretary of State for Education, the Minister responsible for schools, my noble Friend Lord Hill of Oareford and I are today announcing proposals for the oversight as charities of academies, sixth-form colleges and foundation and voluntary schools. In my capacity as Minister for civil society, I have day-to-day responsibility for the legal framework for charities in England and Wales. I believe that the measures I set out here will continue to ensure the appropriate and effective regulation of charities and therefore help maintain public trust and confidence in the charitable sector. The Department for Education, the Welsh Assembly Government and the Cabinet Office have worked closely with the Charity Commission to agree these proposals and the commission is content for the Secretary of State for Education to fulfil the principal regulator role in England, and the Welsh Assembly Government to fulfil the principal regulator role in Wales.
Under the Academies Act 2010, academy proprietors will be “exempt” charities. Exempt charities are not registered with, or directly regulated by, the Charity Commission. Instead the aim is, wherever possible, to appoint an existing regulator to be their principal regulator, with the additional duty of promoting charity law compliance. The objective of this approach is to ensure that there is oversight of exempt charities as charities, while shielding them from unnecessary or duplicative regulation.
It is proposed that the Secretary of State for Education is appointed to be the principal regulator of academy proprietors under the Charities Act 2006. It was originally proposed that the Young People’s Learning Agency be appointed as the principal regulator as it currently undertakes much of the day-to-day work of funding and regulating academies on behalf of the Secretary of State. However, following the review of public bodies, the YPLA will, subject to the will of Parliament, be succeeded next year by an Education Funding Agency, an Executive agency of the Department for Education. Therefore, it is now considered more appropriate to appoint the Secretary of State for Education as principal regulator, because he has the existing roles of funding and regulating academies. In practice, the YPLA (and its proposed successor the EFA) would carry out much of the necessary information gathering which would then be used to report to and advise the Secretary of State. This arrangement will not impose any additional burden on academies or on the YPLA, and academies will no longer be required to register with the Charity Commission.
Sixth-form colleges which are charities (there are 94 in England) had their exempt status removed by the Apprenticeships, Skills, Children and Learning Act 2009. We propose to re-confer exempt status on them and appoint the Secretary of State for Education as their principal regulator. As the YPLA already regulates the funding of sixth-form colleges by the Secretary of State, this is considered to be a more appropriate and proportionate approach to promoting their charity law compliance than requiring them, in addition, to register with and report to the Charity Commission. This arrangement will not impose any additional burden on sixth-form colleges or the YPLA.
Foundation and voluntary schools (there are over 8,100 in England and 175 in Wales) were, until April 2009, exempt charities. They are currently treated as if they are exempt charities under transitional provisions which will expire on 31 August 2011. The proposal is to re-confer exempt status on these governing bodies and appoint the Secretary of State for Education to be their principal regulator in England and the Welsh Assembly Government to be principal regulator in Wales. This was the preferred option on consultation in 2010, and is also considered to be more appropriate and proportionate than requiring them to register with, and report to, the Charity Commission in addition to the Department for Education or Welsh Assembly Government. Again, the arrangement will not impose any additional burden on foundation and voluntary schools.
There are safeguards which we will put in place to avoid any potential conflicts of interest and ensure that, as principal regulators, the Secretary of State and the Welsh Assembly Government will be able to maintain the integrity of charitable status. There will be memoranda of understanding between the principal regulators and the Charity Commission setting out their respective roles, how they will work together and the circumstances in which the principal regulator would refer issues to the commission. The appointment of a principal regulator does not diminish the commission’s role in preserving public confidence in charities. If a principal regulator felt that there was a potential conflict of interest, it could seek the commission’s advice on handling it. In addition, if the commission felt that a regulator had a conflict of interest, it would raise the issue with the regulator concerned and/or with the Cabinet Office.
Draft secondary legislation to make these changes will be laid before Parliament in due course.