Public Sector Pay Policy

Debate between Rachael Maskell and Julian Knight

Tuesday 5th June 2018 Westminster Hall

[Julian Knight]

My hon. Friend makes a fair point, but it is right and proper that the Government now take into due consideration the independent pay review bodies so that the 1% cap is dispensed with over time. However, I take my hon. Friend’s point in its entirety.

[Rachael Maskell]

Will the hon. Gentleman give way?

[Julian Knight]

I am really conscious of the time. I apologise.

Not only must the public sector modernise to keep pace with the evolving needs and expectations of modern Britons but it is absolutely essential that the civil service is equipped to take on the new responsibilities that will fall to the Government as we exit the European Union. It is worth remembering that the pay freeze has allowed public sector managers facing tough budget constraints to save jobs. I have a problem with the statement made by the hon. Member for Glasgow South West. If Departments pay more than 1%, there will be job losses. In fact, if there had not been pay restraint, we would have had more job losses. The point is that that pay restraint meant we were able to keep more people in employment. That is an important point to make. Many people in the public sector have taken that very much on board, but I know that over time patience has worn thin. I will make one other point about the hon. Gentleman’s speech. I imagine the 200-plus pay negotiations are inefficient, and I want to convey that to the Minister today

Of course, the purpose of austerity is always to return the public finances to a point where we can safely and responsibly start making the investments that Britain needs, and I am glad that the Government are now in a position to reconsider the public sector pay freeze. Nor is pay the only way in which Ministers are investing in civil servants. In a speech on 24 January, John Manzoni, the chief executive of the civil service, set out the sheer scope of the modernisation programme currently under way, and a key part is investing in the people who make the service what it is.

For example, the Digital Academy is equipping 3,000 civil servants a year with new skills that will help to transform the way we deliver services, and the new Data Science Campus in Newport is going to train up to 500 fully qualified data analysts for the Government. That is absolutely crucial at this particular time. A concerted drive to streamline the number of Government buildings will help to ensure that the great majority of civil servants are able to work in modern, collaborative environments that will help them to fulfil their potential. The Assessment and Development Centre, launched in 2016, has assessed more than 1,000 people to help them progress in their careers and make sure that the civil service meets the same professional standards that prevail in the commercial sector.

Such long-term investments will benefit not only service users but civil servants. Providing modern working environments, clear career pathways and strong development support is as important to attracting and retaining the best people as competitive pay.

Housing: Long-term Plan

Debate between Rachael Maskell and Julian Knight

Tuesday 9th February 2016 Commons Chamber

[Rachael Maskell (York Central) (Lab/Co-op)]

I want to bring this debate back to the reality I see in my surgeries week after week, as families come to me pleading for help.

Last Friday, a family with two children came to see me. The father had become ill and had lost the ability to pay his rent in the private sector. He is now living with his family of four in a hostel for the homeless. His children are stigmatised by that experience. That is no way for children to grow up in our country. It is a family full of aspiration who just want a home of their own—somewhere safely to bring up their children. Following that, an intelligent gentleman came in. He was homeless. He was desperate to get a job, but he needed a home. He was desperate to get a home, but he needed a job. He was in a vicious circle. Homelessness, as we have heard, is on the increase, and that is unacceptable.

Those are not unique stories. I am confronted by similar ones every week. In York, 1,624 people are desperate for a home, so I want to reflect on the housing crisis there, some of the challenges and some of the fortunes we could turn around. Over the past 10 years, York has built only half the number of homes it needs. We need to be more ambitious. The housing market in York is collapsing, and people are being forced into the private rented sector because there is not enough social housing available. Some 26% of housing in my constituency is now private rented. The average price of a private rented house in York is £988 per calendar month—we are moving up rapidly to London-style prices—but the average wage is just £473, which is way below the national average. People aspire to a home of their own, but social housing is not available and they cannot engage in the private rented sector.

[Julian Knight]

Is the hon. Lady aware that in some parts of the country, such as Hull, the private rented sector is actually cheaper than the social rented sector? In some parts of the country, the private rented sector is sometimes a better option.

[Rachael Maskell]

That is not the experience in my constituency, where people are being priced out of the city, which is having an impact on the local economy. Businesses are saying that it is really difficult to recruit and retain the vital staff they need because people cannot afford to live in our city. The NHS requires improvement, not on account of the excellent care provided by NHS staff, but because it is unable to recruit the staff it needs—doctors, nurses and physiotherapists.

Our care sector, too, is in crisis at the moment because careworkers cannot afford to live in our city. It is impacting on discharges from hospital. I know of someone who was in hospital for seven months, trying all the time to get out. We have seen care homes shut down, and we know that it costs more to keep people in the NHS than to care for them in the community, but if we do not have the care staff in the community, people are going to be left in hospital, which is totally unacceptable. What is happening to our public services and to businesses in our city is impacted on by our housing crisis.

We know how much demand there is for homes. We have two universities in the city, which means 22,000 students all looking for homes, on top of the 1,624 people who simply do not have a home in our city at the moment. Under the Government’s right to buy scheme, the situation is going to get worse. The City of York Council will be asked to sell just short of 1,500 homes. It will stretch opportunity further and further away from people because of the price of housing in our city.

We have heard a lot about the opportunity to buy homes, but again this is largely inaccessible for many people in York. Starter homes can cost £209,000 and we know that people cannot afford the deposits. An average income of nearly £59,000 is required, but the average wage in York falls less than half of that. Buying does not provide the solution that people in my city are looking for.

It is not all bad news in York. We have a great opportunity because of the “York Central”—not to be confused with my York Central constituency—which is a 72-acre brownfield site looking to develop alongside the expansion of the National Railway Museum and the enterprise zone, which is coming in to build the opportunities for business in the city. The problem with the “York Central— Site, which is public land partly owned by the City of York Council, Network Rail and the museum, is that the council is looking at developing somewhere between 1,000 units and 2,500 units, depending on the size of the business area, but for high-value apartments. That will not at all address the social needs of my city. We are told that building on the site will be expensive because it is a brownfield site and that social housing cannot be considered. Expensive infrastructure in the form of access roads is necessary. The local housing associations have said that they simply cannot afford to build there. The situation is challenging, which is why I ask the Minister to look again at the principles of how to develop housing on brownfield sites as we move forward.

The reality in York is that recent housing developments are being sold off so that people can come and have somewhere to stay on race days. People have bought homes to use at the weekends or for holidays, or for commuters to use so that they can reduce the time of the journey down to this city to less than two hours, but none of that helps the 1,624 people who are on my city’s housing waiting list. The opportunity to build houses will be lost if we do not change planning priorities.

I would like to see put behind all planning an analysis of the housing need in the city, and, secondly, an analysis of the impact on the local economy of what is happening in the housing market. Then we should use those priorities to apportion the way in which housing is developed. I am calling on York First to make sure that the priorities of the people who live in my city are taken into account, so that housing on public land can address their needs. We first need to ensure, then, that the priority is building homes for the most vulnerable in our community—the elderly and the homeless, for example—and making sure that supported housing is affordable. We also need homes for social rent, which is the aspiration of so many. We cannot ignore the real needs of people who simply want a roof over the heads, and are being denied that at the moment. And, yes, we can then build starter homes and other homes. We know that that is possible. The Joseph Rowntree Housing Trust, for instance, has a fantastic development in our city, Derwenthorpe, to house a mixed community.

I ask the Minister to ensure that the Government think about the priorities of the city, rather than the priorities of those who want to make an asset out of land.