(5 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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I concur. It is really important that the Scottish National party, the Labour party and other parties that oppose the policy continue to work together, so that we can protect families. More families will be affected from February next year, as universal credit is rolled out, and the retrospective element, which the hon. Member for Glasgow Central mentioned, will be devastating. No family could have prepared for a policy that was to be applied retrospectively; nor is it right that children should be retrospectively punished in that way. This, in short, is a punishment of children, and it is totally inhumane. No Government should be standing up for such a policy. Given that the Minister has recently taken on his role and the policy was not his idea, I urge him to reflect carefully on what is being said and on the representation being made to him, to ensure that the policy is reviewed and reformed.
If the Government are concerned about family size and think that families should not be as large as they are, just as with teenage pregnancy, public education exercises can be more successful than punitive measures that punish children. In developing countries, where there is a case for encouraging smaller families because families cannot provide, family sizes have been brought down through education and women’s empowerment, but that is a different debate from what is happening here.
Philip Alston the UN’s special rapporteur on extreme poverty and human rights recently said of the two-child limit that it is “in the same ballpark” as China’s one-child policy, because it punishes people with more than two children. Reports also state:
“The UK government has inflicted ‘great misery’ on its people with ‘punitive, mean-spirited, and often callous’ austerity policies driven by a political desire to undertake social re-engineering rather than economic necessity, the United Nations poverty envoy has found”.
It cannot be right that in one of the wealthiest economies of the world, our children face hunger and punishment.
In encouraging the Minister to reconsider, does the hon. Lady agree that it is important that he understand that most people—most of those I meet, anyway—are in favour of reform, because of the complexity of what preceded universal credit, and are in favour of encouraging people into work, but are most definitely not in favour of stigmatising or of ensuring that the very vulnerable in society are punished as a result of the first two?
I agree. I do not think that policies that punish vulnerable people are ultimately likely to succeed, which is why the Minister needs to rethink both this aspect of the universal credit policy and the policy more generally. In their attempt to simplify, the Government have found ways to cut funding. People will be worse off under universal credit.
Since implementation, the policy has already affected 400,000 children, and some 3 million children are likely to be affected. That is why I echo the points the hon. Member for Glasgow Central made, calling on the Minister to review the policy and put a stop to it, certainly until the extension of the policy next February, which will be devastating for families.
In my constituency, a large number of children and families will be affected by the policy. We have a large Muslim population and, as has been mentioned, people of other faiths are also affected. I call on the Minister to take into account the unequal impact the policy will have and the fact that the equality impact assessment is flawed.
(10 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I could not agree more. There is a very important question for the Minister about the role that our finance Ministry, working with international Finance Ministers and with our International Development Secretary, can play in taking the lead on supporting countries that are making the transition, so that they can have an effective banking system. That has to happen simultaneously with efforts to find a solution on the issue of remittance. It is critical if we want to ensure that our security and our interests are also served.
The hon. Lady has referred several times to finding a solution. Does she agree with me and with an Oxfam spokesman who has said that what is really required is a long-term, sustainable fix to ensure that this problem does not occur?
Yes, of course we need a long-term solution as well as an interim solution. My hon. Friend the Member for Cardiff West set out brilliantly the background—how we got here. Barclays made its decision, following on from decisions that other banks had made, which has led to virtually no opportunities for money transfer companies to use banking facilities to carry out their business, and as a result, many have gone out of business. At this rate, there will not be many left if we do not get our act together and find an interim solution, as well as a long-term solution that involves coming up with an international framework.
Britain has led on these issues in the past and I believe that it can do so again. That is my appeal today to the Minister—that he will work with the Secretary of State for International Development and the Chancellor of the Exchequer and put genuine effort in during the short window of time that we have managed to gain, thanks to the injunction achieved by the company based in my constituency, Dahabshiil, led by Mr Abdirashid Duale. As a result of that, although other companies have closed, it is still going. It is virtually the last one standing, but it is also the biggest company that supports remittance to developing countries.
We have until October, and if a solution—an interim solution as well as a long-term one—is not found, we may see devastation in Somalia, because there are almost no other routes to get money in apart from physically carrying cash, which I am sure no one wants people to be doing, because of the dangers of criminality, terrorism, extremism and many other things. We cannot have a situation in which people must physically transport cash and place themselves at risk of being criminalised, not to mention being the target of criminals, as they try to get money to their communities because of the desperate situation.
Let me remind hon. Members of the context particularly of Somalia, but also of many other countries—we have seen this in Pakistan, Bangladesh and many other countries. At times of crisis, people need to get money into remote places, so even countries with a banking system struggle to enable people to get support—to get remittances—in. That is where money transfer companies play a vital role. They have intimate—close—networks and trusted relationships in remote villages around the world, whereby people can get money to those who cannot travel easily because the infrastructure is not good enough in those countries or because they live in remote places.
Money transfer companies are also vital in times of disaster, as we saw during the humanitarian disaster in east Africa, which affected Somalia, the floods in Pakistan and Bangladesh, the cyclones, and disasters in many other countries. We need to ensure that there are ways in which remittances can be given, so that the pressure on humanitarian assistance does not increase further, which undoubtedly it would do if remittances were prevented from getting to people quickly and safely. Global remittance flows are greater in value than all the international aid budgets put together. We need safe and legal—legitimate—mechanisms whereby people can get help to their families.
In the previous debate, the Minister himself said that his elderly family members had received remittances in the past and continued to do so. I have a similar experience, because my family do the same. It is a critical way in which people support each other. The British Muslim community donate millions of pounds in zakat, which also takes the form of remittances. All those contributions build a vital lifeline for people in developing countries who might not qualify for development aid, but who none the less receive support for education, health care and other costs that enables them to live a decent life.
Remittances contribute greatly to economic development, as I have seen in my constituency, where communities have come together to raise money. I attended a recent event at which some 500 people from the British Somali community got together to raise money. It was organised by some of my constituents who are here today: Ayan Mahamoud, Abdi Rashid Gulaid and many others. They raised nearly £1 million in one evening by calling on the community to act to rebuild their country, to rebuild roads and to rebuild infrastructure.
That is a case in point of communities helping themselves to rebuild their country, rather than depending on aid. We have heard a lot from Ministers from the Department for International Development about the need for self-reliance. I passionately believe that that is what people want in their own countries, and the best way to encourage that is to build a system of remittance through which people can send money legitimately to help rebuild their countries and lift the inhabitants out of poverty. Such a system can work alongside the important international aid effort to which we contribute.
My hon. Friend the Member for Cardiff West set out the background and described the inconsistencies inherent in the decision by Barclays. The Government must act to provide a medium-term and a long-term solution to this serious problem. The fact that 130,000 people got behind the campaign and tens of thousands more signed petitions—teenage Somali girls even went around markets and visited people’s houses to get them to sign up to the campaign—shows how much people believe this matters because it affects their lives. People talk about communities feeling disfranchised, but that is an example of a community that led the way because the bank’s decision affected their families and friends so directly.
If we can find a solution to support a country and a community that historically have felt let down by politics—international politics as well as our politics—we will show that we care passionately, as the Prime Minister has said, about countries such as Somalia and support their transition towards peace, stability and economic development. The best way to do that is by supporting legitimate ways to help people help themselves and their families through remittance.
The most urgent of the challenges we face is time. Thanks to the campaign, the support of Members from across the House and the engagement—with some pressure—of Ministers in the Treasury and the Department for International Development, we now have a framework. As my hon. Friend the Member for Cardiff West said, the action group on cross-border remittances needs urgently to meet and identify a chair. I hope that the Minister will set out in detail what will happen. We have a window of opportunity that nobody would have believed possible last summer, thanks to the work of the campaign, MPs and the media, and not least the support of double Olympic champion Mo Farah. His foundation, which uses Dahabshiil, has been directly affected because it will find it difficult to send money back to Africa. He said:
“I just cannot see how cutting the remittance lifeline squares with British foreign policy in the Horn of Africa. It will undo all the good work the government has achieved in the region”.
I echo his comments.
The Government have done good work in championing the cause of Somalia and Somaliland, and the Opposition have supported that effort through the Somalia conference. Whether a solution to the problem is found in the coming months—both an interim solution, to ensure that people can continue to remit to countries such as Somalia and places such as Somaliland, and a long-term solution—will make a critical difference to whether Somalia can avoid further conflict and devastation.
I hope that the Minister will push for the action group to come up with a solution that addresses the decision made by Barclays and other banks. Such banks need to feel that the regulatory framework allows them to provide banking facilities to money transfer companies without fear of big fines. There must be consistency and transparency in the decisions made to remove banking facilities from certain companies. The Government must learn lessons from the past, and look at what was done in cases where concerns were raised about money laundering.
Most importantly, as several experts have highlighted, the decision not to provide legitimate banking facilities to money transfer companies will simply drive the whole industry underground. We will return to the bad old days of money flows going into countries without regulation and without their Governments knowing how much money is going in. Some of that money will absolutely end up in the wrong hands, which is dangerous for those countries and for our security. That issue must be confronted. We need a solution that addresses issues of security and counter-terrorism. The withdrawal of legitimate banking facilities will open the way for such forces and present bigger dangers for us, particularly in countries such as Somalia and the surrounding region where there are major concerns about extremism and terrorism.