Savings Accounts and Health in Pregnancy Grant Bill

Paul Goggins Excerpts

Tuesday 26th October 2010 Commons Chamber

[Mr Hoban]

The Labour party is clearly looking for more substance for its economic plan, and perhaps the hon. Lady’s idea of tackling the winter fuel payment is something that the shadow Chancellor will embrace. I look forward to hearing whether those on the Opposition Front Bench will decide to adopt her idea or dissociate themselves from it.

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

The Minister is turning to support for the most disadvantaged. If there is one area that should unite all parts of this House, it is the welfare of looked-after children, most of whom arrive in care with nothing and leave care with nothing. If there is any group that needs to build up an asset base, it is children in care, yet the Minister is taking away at a stroke the possibility of building up an asset base by getting rid of the child trust fund. How can he, as a Minister, possibly justify his Government’s claim that they are protecting the most vulnerable, when he is robbing children in care?

[Mr Hoban]

I am turning to child trust funds, and I take on board the right hon. Gentleman’s point. As one of the consequences of our decision to scrap the child trust fund, we are using some of the money that we have saved to provide respite care for disabled children. We have thought carefully about the issues, and, frankly, the decisions are not easy to take. Our decision to scrap the child trust fund is important. It will enable us to deliver the pupil premium and the £2.5 billion package, which was recently announced, to support children from disadvantaged backgrounds. The right hon. Gentleman should look at the issue in the round rather than cherry-picking particular policy areas.

--- Later in debate ---

[Paul Goggins]

Will the Minister give way?

[Mr Hoban]

I am sorry, but I need to make progress.

We are prioritising fairness and social mobility, providing sustained routes out of poverty for the poorest. While encouraging some of the poorest to build up savings can be seen as meeting those goals, in the tight fiscal position that we have inherited, it is better to invest more in education and health, which will have a greater immediate impact than building up assets.

[Mr Hoban]

The hon. Lady should have taken the opportunity to ask her colleagues that when they introduced tuition fees and the child trust fund in the previous Parliament. The situation is not new, and I am sure that she has discussed the matter with her colleagues.

[Paul Goggins]

rose—

[Mr Hoban]

As we tackle the deficit, one of our priorities is to transform the prospects of the poorest children.

[Paul Goggins]

Will the Minister give way?

[Mr Hoban]

I will not. The Opposition spokesman, the right hon. Member for Delyn (Mr Hanson), wants to speak in the debate and needs to be free from this place at 6.30 pm, so I will continue my speech.

[Paul Goggins]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr Goggins, you are going to have to sit down. The Minister is not giving way. I know that you are trying to catch his attention, but you cannot stand up for five minutes waving your hands. You have got to get used to being back on the Back Benches.

[Mr Hoban]

I was not sure whether he was waving or drowning, Mr Deputy Speaker.

As we tackle the deficit, one of our priorities is to transform the prospects of the poorest children, who need it the most, through the schools pupil premium which will be worth £2.5 billion by—

[Paul Goggins]

On a point of order, Mr Deputy Speaker. Is it in order for the Minister consistently to refuse to take an intervention from someone who has already pursued a specific issue and wishes, in the light of something that the Minister has said since, to take up that issue with him in a constructive manner?

[Mr Deputy Speaker]

That is not a point of order. I understand your frustration but the Minister, in fairness, has been generous to many colleagues. Unfortunately, you have been very unlucky in not catching his eye, but I am sure that, if he were generous, he just might spot you standing once more.

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[Mr Hanson]

One of the great benefits of the child trust fund was that it encouraged people on lower incomes to save, it gave a kick-start to their savings accounts and it helped them to get into the habit of saving. The change that the Minister has made will mean that those people who can save will save, and those who are not used to saving, do not have the resources to save or are not part of that savings culture, will not save. That will impact, in due course, on the inequalities of people in their 18th year.

[Paul Goggins]

rose—

[Mr Hanson]

Before I give way to my right hon. Friend, let me say that one of the most disgraceful things will be the fact that the Government are taking child trust fund contributions from children who have no parents, who are in care, who need the support of the state to reach their 18th birthday—who will need that kick-start in due course. I am sure that is the point that my right hon. Friend was going to make.

--- Later in debate ---

[Paul Goggins]

I am very grateful indeed to my right hon. Friend for giving way. [Hon. Members: “Hear, hear.”] He has been very generous, as was the Minister until, for some unknown reason, he declined to take interventions towards the end of his speech. My right hon. Friend may remember that in an intervention I raised the issue of looked-after children. After that, the Minister announced, although he did not go into too much detail, the new tax-free savings account for children. Does my right hon. Friend think it would help if we knew how looked-after children might be able to benefit from the new scheme that the Minister just announced?

[Mr Hanson]

Perhaps the Minister can tell us that in his winding-up speech, because clearly, looked-after children, children in care, would have had a contribution to the child trust fund, which would have helped them, on leaving care at the age of 18, to start a life without parental support. That is an important contribution that this Government have taken away from looked-after children.

[Paul Goggins]

To be constructive: there may be opportunities for local authorities, for charitable trusts, for other people in the community, to contribute to funds set up in the name and for the benefit of looked-after children. Will they be able to benefit from this new tax-free savings account? I do not know, because the Minister would not take my intervention and answer the question.

[Mr Hanson]

I hope I can assure my right hon. Friend that as we have eight sittings in Committee, I will table amendments on some of those issues. Indeed, I can even offer him a chance to serve, should he so wish, on the Public Bill Committee in due course.