Equality and Human Rights Commission

Owen Smith Excerpts

Wednesday 1st March 2017 Commons Chamber

[Chris Stephens]

The hon. Gentleman is correct that concessions were given to the Opposition, but I think the Government are backtracking on them, as we saw in a Delegated Legislation Committee, with trade unions now being forced to have additional conferences to meet requirements in the new legislation.

[Owen Smith (Pontypridd) (Lab)]

I, too, congratulate the hon. Gentleman on securing the debate. Will he confirm that another thing on which the Government are backtracking is the funding for this organisation? During a year in which hate crime has doubled in this country, we have seen the funding and staffing of the commission cut by 25%. Does he agree that it is extraordinary that the body that is supposed to be the watchdog on behalf of the Government in respect of disabled people’s rights—it is one of this country’s most important watchdogs—is sacking disabled workers at a day’s notice?

[Chris Stephens]

I agree wholeheartedly, and I shall come back to these points in detail later. If the hon. Gentleman would like to intervene again then, I would be more than happy to give way.

I invite Members to look closely at who was chosen for compulsory redundancy and who was then sacked by email, as highlighted in early-day motion 944. Of the 10 sacked members, seven are black or minority ethnic, four are Muslim and six are disabled. I hope that no one will challenge the arithmetic on that, as it is possible to have overlapping identities.

As I understand the situation, one of the dismissed staff members was an Army veteran whose motorised wheelchair was taken away the day after he received his redundancy notice. Three of the sacked members held elected roles on their union’s branch executive committee and one was a trade union negotiator who was leading talks to protect employees from compulsory redundancy.

This issue raises concerns about blacklisting and trade union victimisation throughout the ongoing restructuring process. It is also not difficult to conclude that certain types of employees have been targeted and potentially discriminated against. Not only is that utterly wrong in and of itself, but astonishing that it should come from the Equality and Human Rights Commission.

[Kate Green]

rose—

[Owen Smith]

rose—

[Chris Stephens]

There seems to be a choice. I give way to my fellow member of the European Scrutiny Committee.

[Chris Stephens]

That is an excellent point. When the commission is seen to be conducting itself in this way, it sends out a very dangerous message to rogue employers.

[Owen Smith]

Will the hon. Gentleman also comment on the impact of these sackings on the Government’s stated aim of halving the disability employment gap in this country, given that five of the sacked people are disabled?

[Chris Stephens]

It shows that the Government say one thing in public and do another thing in private. That is the only message that we can take from this.

This is in the realms of “you really couldn’t make it up.” The Government cannot absolve themselves of any responsibility for this surreal situation. Increasingly, ministerial responses on this issue are becoming a little tetchy, and along the lines of, “This isn’t really anything to do with us.” As I have said before, something that is Government sponsored and Government funded is publicly accountable. That is what we are doing today—giving parliamentary scrutiny to an organisation that is not acting in the spirit of its own ethos and stated aims.

The strike was called because people were at risk of compulsory redundancy, even though more than 30 commission vacancies remain unfilled. A restructuring process has been driven by severe budget pressures: a 25% cut over the next four years comes on top of a 70% cut in real terms since 2010. That was confirmed by House of Commons Library research, which was commissioned by the hon. Member for Brent Central (Dawn Butler). The Equality and Human Rights Commission has been described as facing collapse.

--- Later in debate ---

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

I begin with an apology on behalf of the Under-Secretary of State for Women and Equalities, my hon. Friend the Member for Gosport (Caroline Dinenage), who is unable to respond to this debate due to other business. However, I am here and happy to respond on her behalf. I thank the hon. Member for Glasgow South West (Chris Stephens) for securing this important debate. It is timely as it allows me the opportunity to confirm the budget agreed with the EHRC for the remainder of this spending review period, something which has been of interest to many hon. Members.

Before I move on to provide greater detail, I want to take a moment to remind ourselves of the wider context of Government fiscal controls. At the beginning of the last Parliament, as hon. Members will remember, the Government inherited the largest deficit in the post-war period. The EHRC’s position needs to be seen against that background and against the significant spending reductions that apply to central Government, including making over £20 billion of savings by 2019-20. I can confirm that the EHRC’s settlement for this spending review period amounts to a total budget of £20.4 million for 2016-17, £19.3 million for 2017-18, £18.3 million for 2018-19, and £17.4 million for 2019-20, equating to a 25% reduction across the spending review period since 2015-16. Obviously, and as the hon. Member for Glasgow South West made clear, reductions in the EHRC’s budget stretch across a longer timescale than just this spending review. With its settlement now confirmed, the EHRC will have had an approximate budget reduction of 68% between 2010-11 and 2019-20.

[Owen Smith]

rose—

[Chris Stephens]

rose—

[Joseph Johnson]

If hon. Members give me some time, I will supply some context for the reduction, most of which we did not hear from the hon. Gentleman.

[Owen Smith]

I am grateful to the Minister for giving way. In the context of a current budget deficit of around £68 billion, is he seriously telling the House that cutting the EHRC’s budget by 68% down to £17 million is really necessary or relevant?

[Joseph Johnson]

The context that I am about to provide will help hon. Members understand in more detail why cuts of that magnitude were appropriate. If the hon. Member for Glasgow South West bears with me, I am sure that I will answer the question that he was about to ask.

First, when the EHRC was set up in 2007, it had an extraordinarily high budget to facilitate the merger of three previous bodies—the Equal Opportunities Commission, the Commission for Racial Equality, and the Disability Rights Commission—into a new body. The budget was simply not right for the organisation during its infancy. In 2007, the EHRC had a budget of £70 million, which was an astonishing £20 million more than the combined budgets of the three previous commissions. The EHRC never managed to spend more than £62 million in any year. Indeed it often struggled to spend its allocation, reporting significant and repeated underspends. In June 2010 for instance, the EHRC budget was reduced in-year from £62 million to £55 million. However, the EHRC’s actual expenditure in 2010-11 was £48 million, of which £16.3 million, or 35% of its budget, was spent on its corporate costs.

Secondly, those with longer memories will acknowledge that the organisation was poorly managed at the time and had poor spending controls, as a result of which its first three sets of accounts were all qualified. That inevitably called into question its financial controls and the amount of funding that it should be given.

Thirdly, Members should be aware that the EHRC’s budget reductions have simply reflected changes to its range of functions. A number of significant functions have been repealed, or are no longer funded, to help it concentrate on its core remit. Most notably, the EHRC has stopped its large grants programmes, which had been mismanaged and cost several million pounds. The EHRC also lost its helpline, which cost £2.5 million a year, and its conciliation role in service provision. Those functions ceased in 2012-13 and were costed at £10.1 million or 21% of the EHRC’s budget at the time.

Those changes were considered in the review of public bodies conducted by the Government in 2010, and it was decided that the EHRC should be “retained but substantially reformed”. In March 2011, the coalition Government accordingly set out plans to reform the EHRC in the consultation document “Building a Fairer Britain: Reform of the Equality and Human Rights Commission.”

The current Prime Minister, who at the time was Minister for Women and Equalities along with her Liberal Democrat coalition partner Lynne Featherstone, set out proposals

“to transform the Equality and Human Rights Commission into a valued and respected national institution.”

A comprehensive budget review was set up in 2012 to identify the minimum level of funding needed for the commission to discharge its statutory functions effectively, in accordance with the provisions of the Equality Act 2006. The review concluded that steady state funding of £17.1 million would be adequate for the commission to continue to fulfil its statutory functions.

--- Later in debate ---

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

rose—

[Owen Smith]

rose—

[Joseph Johnson]

I will take another intervention on the same point and then I will deal with one from the hon. Member for Pontypridd.

[Joseph Johnson]

Turning to the points about restructuring, hon. Members will know that the EHRC has followed a multi-staged process, to mitigate the impact of job losses on all staff, including consideration of those with protected characteristics. The commission is confident that the processes undertaken to date have been fair, evidence-based and transparent. Trade unions have been extensively consulted to offer every alternative to compulsory redundancy, where possible. Despite that, they have called five strikes in recent months.

Happily, the EHRC is no longer the focus for the tabloids’ wrath. Its accounts have not been qualified for five years. It has provided respected policy interventions on stop and search; the treatment of religion in the workplace; and pregnancy and maternity discrimination. It has intervened successfully to help enforce the Equality Act and human rights at the European Court of Human Rights.

[Owen Smith]

rose—

[Joseph Johnson]

I will give way, but this has to be quick as we are running out of time.

[Owen Smith]

I am grateful to the Minister, who is being very generous in taking interventions and is trying to answer our questions. However, in so doing he is making our case for us, because he has just admitted that six of the people who are being sacked are disabled, which will clearly add to the disability employment gap. In conceding that we are seeing a rising tide of hate crime, despite the fact that we have this commission, he is surely making the point that the £17 million it currently has to support its work is inadequate.

[Joseph Johnson]

The hon. Gentleman needs to look at the EHRC’s restructuring in the context of its ability to carry out its broader work to support people with disabilities and to ensure that their rights are not affected by their disabilities in terms of their ability to access opportunities in the workplace.

As the National Audit Office notes, the EHRC

“has responded to its budget reductions in a number of ways”,

and it is increasingly working in partnership with other organisations and being more selective in the legal cases it takes on, taking on cases with the potential for the most impact and thereby enhancing its overall effectiveness. We are working with the EHRC to increase its effectiveness further. We share the view that members of the Women and Equalities Committee expressed in January: the EHRC should play to its unique strengths and powers, as provided in its legislative framework, by making more selective legal interventions and leaving the research to other bodies that can already fulfil that function.