Budget Resolutions

Sally-Ann Hart Excerpts

Thursday 7th March 2024 Commons Chamber

[Sally-Ann Hart (Hastings and Rye) (Con)]

Hastings and Rye is a vibrant and dynamic place that is home to amazing and resilient tourism, retail and hospitality businesses, hundreds of small and medium-sized enterprises, and a robust manufacturing sector specialising in vacuum and precision engineering. However, it has pockets of deprivation. That is why I welcome the measures taken by the Chancellor in yesterday’s Budget, which is bolder than it seems, reflects a dose of optimism and a good dollop of resilience, and builds on policies that have halved inflation, reduced debt and promoted a growing economy. I particularly welcome the measures taken to support hard-working families. The Budget addresses the cost of living burden by reducing employee national insurance contributions by another 2%; they have gone from 12% to 10%, and now to 8%. It is giving thousands of people in Hastings and Rye a tax cut—a cut of over £900 for the average worker.

Let me take this opportunity to correct the shadow Chancellor and dispel the nonsense being spouted by Opposition Members. The Chancellor did not promise to abolish national insurance contributions yesterday. He expressed an ambition to do so, without compromising public services, but said that it could not be achieved any time soon, and would require responsible fiscal management. Cutting class 4 national insurance contributions from 9% to 6% will help self-employed people in my constituency, and alongside the duty freezes on fuel and pub pints and the extension of the energy price guarantee, it will help put hundreds of pounds back into people’s pockets.

I also welcome the historic investment in early years and childcare, which will help hard-working families. The 2024 Budget builds on the significant strides made in 2023, when an unprecedented sum of more than £1 billion was allocated for early learning and childcare. The 8% increase in funding for early learning and childcare for 2024 will directly benefit our children, our hard-working families and the dedicated professionals who nurture our children’s growth.

The enhancement of teacher training will, I hope, help to ensure early intervention and prevention of problems for all children, including those with special educational needs, so that they receive the support that they need to reach their potential. Addressing the unfairness of the child benefit system will benefit thousands of families in Hastings and Rye, promote equity and social justice, and ensure that families receive support based on their needs.

I also welcome the measures taken to help the most disadvantaged in my communities, such as the increase in the repayment period from 12 to 24 months for those on universal credit who are forced to take out advanced budgeting loans, and the fact that the £90 charge to take out a debt relief order will be scrapped completely. The household support fund was set up temporarily to help the poorest through the cost of living crisis with a one-off payment of £500, depending on circumstances. Its continuation for another six months is vital for a number of reasons, not least because it provides immediate relief to vulnerable households facing financial hardship. Its extension means that particularly vulnerable families in Hastings and Rye can continue to receive essential support during challenging times and avoid debt. However, it is worth noting that the fund is a temporary fix, and the Government need to continue their focus on longer-term solutions to address poverty and prevent families sliding further into financial distress. Work is the only route out of poverty. That is why the Department for Work and Pensions back to work plan and our family hubs, which support families in so many ways, are vital policy measures.

It is really good news that, despite the challenges posed by the pandemic and the war in Ukraine, our economy is showing signs of recovery. The OBR’s revised growth forecasts for 2024 show a modest improvement from 0.7% to 0.8%. That may seem incremental, but it does signify progress.

Small and medium-sized enterprises are the backbone of our local economy. I welcome the £27 billion tax cut for businesses through the radical policy of full expensing, and through capital allowances reform. This move will drive investment, stimulate growth, empower our entrepreneurs, encourage innovation and create jobs in Hastings and Rye, but we need to encourage more local young people into science, technology, engineering and maths, further education and apprenticeships. University technical colleges and UTC sleeves will be a real step forward in providing skills for the future.

While tourism and hospitality have greatly benefited from generous Government support over recent years, including the extension of reliefs into 2024-25, I would have liked more of a boost for our tourism and hospitality businesses from the Chancellor; a clear pathway for reform of business rates in England up to 2026, including reliefs; and action on VAT. The British Retail Consortium said some time ago:

“We need a business rate tax that flexes with overall economic performance, is shared equitably across different industries and comes with positive incentives for business.”

I will briefly mention student loans. We all recognise the punitive rates of interest paid on student loans by our graduates, and it is not feasible to write off all the debt. Could the Chancellor please ensure that no graduate pays interest at a rate higher than the average available commercially? That will help millions of graduates who deserve a fairer rate of interest, allow our young professionals some financial stability, and give them the certainty to make sound life choices.

Let us embrace this Budget with optimism. The last few years have not been easy for the British economy, with the legacy of covid, and war in Ukraine and the middle east. It is only because our economy was in a better state as a result of the Government’s policies since 2010 that we could afford to protect people and businesses, and support Ukraine. Our economy is now turning a corner. We cannot allow the Labour party to play fast and loose with our economy again, and take us back to the economic tatters of 2010, after all we have been through in the past few years. This Budget is a road map to a bolder, brighter future for Britain—a future in which businesses flourish, our families thrive, and our communities can stand resilient.

Child Maintenance Service

Sally-Ann Hart Excerpts

Tuesday 27th February 2024 Westminster Hall

[Sally-Ann Hart (Hastings and Rye) (Con)]

It is a pleasure to speak under your chairmanship, Sir Charles. I congratulate the right hon. Member for East Ham (Sir Stephen Timms) on securing the debate on this important issue. The Child Maintenance Service can play a vital role in lifting children out of poverty, but despite significant improvements since 2012, further reforms are needed.

Last summer, I was delighted that my private Member’s Bill, which ensures that victims of domestic abuse can receive child maintenance without contact from their abuser, received Royal Assent. The Child Support Collection (Domestic Abuse) Act 2023 will allow the CMS to intervene in cases where abuse is evident, using its powers to collect and make payments. That set-up, “collect and pay”, is already used by about 37% of parents using the CMS. It provides extra protections for parents who have experienced domestic abuse by managing payments and avoiding the need for contact, preventing perpetrators from inflicting financial abuse and control. It builds on the CMS’s existing procedures to protect both the paying and receiving parents who are vulnerable to domestic abuse, ensuring that more children in separated families are supported.

The commencement of the 2023 Act, as already highlighted, is reliant on secondary legislation to be developed and approved. When I contacted the Minister in January, the consultation details were being finalised—perhaps this Minister can update me on that. That Act and the Child Support (Enforcement) Act 2023, brought in by my hon. Friend the Member for Stroud (Siobhan Baillie), provide the basis for the CMS to act swiftly, progressing enforcement action faster with the aim of getting money to children more quickly, establishing compliance, preventing further arrears and bolstering domestic abuse protections for parents. I look forward to the secondary legislation coming into force to give effect to those two Acts as soon as possible.

However, I have a point to make about the collect and pay service: the CMS charges the paying parent 20% of the maintenance collected, and the receiving parent forgoes 4% of the collected money. It is not right that a victim of domestic abuse must effectively pay for the privilege of being abused. They should not be penalised by the fees, which should be scrapped. In addition, as per the recommendation of the Work and Pensions Committee, to help parents on low incomes there should be means testing for collect and pay fees. The fees should not apply to the lowest-income households. The children’s needs must come first, and it is important that available family moneys are for the maintenance of children to help lift them out of poverty.

Improving the effectiveness and speed of enforcement is also key. We are all aware of the fraudulent efforts of some parents who seek to avoid paying for their children, and the complication that arises when children live with both parents. For example, I have a current case with four children. Three of them live with parent A, who is not working and claims benefits, and should pay child support to parent B for one child, while one lives with parent B, who is working and pays child support to parent A for three children. Parent A has not been paying child support to parent B. Parent B cannot deduct the payment from the child support she is paying to parent A, because they are considered to be two different cases and there is no linking up. Parent B is struggling and the CMS cannot seem to get its head around it. There seems to be a need for better co-ordination within the CMS, as well as with other departments such as the family courts, to access financial information when non-resident parents are actively seeking to avoid paying maintenance. Information sharing is key, and better IT is also needed to enable joined-up enforcement activity. All public services need to remember that they are dealing with people who are often struggling.

I attended a departmental briefing in November last year with the Minister, who outlined the work in train to increase enforcement action. I welcome the further steps to improve the CMS, including the liability orders consultation to speed up enforcement action, the removal of the £20 application fee and longer-term changes. The scrapping of the £20 fee to the CMS signifies a shift towards inclusivity and accessibility. The fee can deter parents, especially those in vulnerable situations.

All parents need to take financial responsibility for their children. It is not fair on the children if they do not receive the support that they are due for essential food, clothing, education and healthcare. Financial support is also vital to reinforce a child’s overall quality of life, and their sense of security, wellbeing and stability. Knowing that both parents care about them and for them fosters emotional wellbeing. The CMS process must not add delay or hardship. Streamlining processes, improving enforcement and going after parents who will do anything to get out of paying for their child will help create a fairer system and provide financial security for children and parents.

Social Security (Additional Payments) (No. 2) Bill

Sally-Ann Hart Excerpts

Committee stage
Monday 6th March 2023 Commons Chamber

[Mims Davies]

I thank the hon. Gentleman for making his points, and I simply do not agree with the point about punishment. Conditionality works on both sides, and I think it is important that people play their part. I will come on to further comments about that shortly.

[Sally-Ann Hart (Hastings and Rye) (Con)]

I welcome the additional payments, but Conservative Members know that employment is the best way out of poverty, and part of getting people back into employment is the conditionality of universal credit. One key benefit of universal credit is that there is a clear incentive for claimants to get into work, preventing them from becoming trapped in welfare, which then creates a dependency. I know the Minister will explain this to the Committee, but I want to stress the importance of this in Hastings and Rye where, at the moment, one in five people—20%—are on out-of-work benefits by choice. I reiterate the importance of conditionality in gaining employment.

[Mims Davies]

I thank my hon. Friend, and she makes the point extremely eloquently. This is much more about getting people into work and progressing; it is not about some punitive sanctions regime. This is about individuals being supported to best progress. On those people who engage with us during the qualifying period, as long as they attend, we will be supporting them if there is any particular reason that they cannot engage with us, if they have good cause.

Amendment 3 would extend the qualifying period for universal credit over two months rather than one. I understand the point made by my hon. Friend the Member for Amber Valley. Keeping the eligibility dates as close as possible to payment reduces administrative challenges such as out-of-date contact or bank details, and including two assessment periods extends the amount of time between eligibility and payment. [Interruption.] Sorry, but the hon. Member for East Dunbartonshire (Amy Callaghan) was speaking. In this time, individuals will have the opportunity to—

Child Support Collection (Domestic Abuse) Bill

Sally-Ann Hart Excerpts

Friday 3rd March 2023 Commons Chamber

[Sally-Ann Hart (Hastings and Rye) (Con)]

I thank my hon. Friend, the Minister for Social Mobility, Youth and Progression for moving these important Government amendments. I was delighted to co-sign them. These new amendments will allow for the provisions in the Bill to include Northern Ireland. That will mean that domestic abuse victims, not just in our English constituencies, but throughout the United Kingdom, will benefit from the measures in this Bill. I am sure that all Members here today can recognise the importance of that.

The Minister has assured me that officials will be working closely with legal colleagues and the other Administrations across the United Kingdom to ensure that the provisions are implemented effectively. I thank all Members for joining me here today and for their support of this Bill.

[Paul Howell (Sedgefield) (Con)]

I thank my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) for bringing this Bill before the House to address such an important issue. I expect that problems with the Child Maintenance Service and domestic abuse are some of the most universal and least partisan that my colleagues and I encounter in the course of our work.

As we know, domestic abuse is not limited to any particular group—anyone can be a victim. At the same time, it is helpful to recognise that the economic impact of domestic abuse is particularly severe for single mothers, who make up 90% of single-parent households, and whose opportunities to work may be limited by childcare. A study by the Institute for Fiscal Studies found that pre-pandemic, nearly half the children in single-parent households were living in poverty. Single parents are likely therefore to need childcare payments, because of the considerable costs associated with raising children, yet those who experience domestic abuse can find themselves still vulnerable to abusive behaviour through the structure of the CMS. Last year, the Public Accounts Committee concluded in its report on the CMS that the system is not—

--- Later in debate ---

[Sally-Ann Hart]

I beg to move, That the Bill be now read the Third time.

As many hon. Members heard me say on Second Reading, I emphasise that this Bill is an important measure for victims of domestic abuse who use the Child Maintenance Service. I am proud, delighted and grateful that it is being taken forward and has the support of the Government, as confirmed by the Minister for Disabled People, Health and Work, my hon. Friend the Member for Corby (Tom Pursglove) on Second Reading, and reconfirmed in Committee by the Minister for Social Mobility, Youth and Progression, my hon. Friend the Member for Mid Sussex (Mims Davies). I am pleased that she is here again today on behalf of the Government, and thank her profusely for her support and the support she has shown throughout the progression of the Bill.

Moving on to developments that have occurred since the Bill was in Committee, I am delighted that the independent review of the ways in which the CMS supports victims of domestic abuse has now been published, alongside the Government’s responses to its recommendations. Many of my hon. Friends highlighted that review on Second Reading and in Committee, so I am pleased that it has now been progressed. The Bill will strengthen support for domestic abuse victims by ensuring that victims of domestic abuse, who are overwhelmingly women, are able to avoid entirely any need to engage with the other parent if there is evidence of abuse, helping to make them as safe as possible when using the Child Maintenance Service. These proposals give victims of domestic abuse choice—another avenue to aid their escape and removal from an abusive partner or environment, while ensuring that victims have more protection than was previously the case.

[Wendy Chamberlain (North East Fife) (LD)]

I am delighted to be here today, as I was when the Bill was in Committee. As constituency MPs, I think we all know the issues that the CMS presents when domestic abuse is involved. Indeed, I have a constituent whose children are grown up, but who still has moneys outstanding as a result of the coercive control of domestic abuse, and her ex-partner still utilises that fact. I welcome my hon. Friend’s Bill, and hope very much that its provisions will help prevent those kinds of long-term abusive ongoing relationships.

[Sally-Ann Hart]

I thank my hon. Friend for her intervention, and completely agree with her. I am absolutely confident that the Bill will help prevent those sorts of long-term coercive and abusive behaviours that many women and children have had to put up with over the years.

I reiterate how pleased I was to see the independent review published during the Bill’s passage, which makes a recommendation to do just what this Bill is advocating. The Bill will amend primary legislation to allow victims of domestic abuse to use the collect and pay service where there is evidence of domestic abuse against the requesting parent by the other party to the case, who could be the paying or the receiving parent, or even against children in their households by the other parent involved in the case. I am pleased that MPs from across the House agree on the importance of this Bill, as it is a key move to help deal with a more masked form of domestic abuse: financial abuse and coercion. The Bill also removes the additional threat of emotional abuse that can occur if direct pay is used.

By way of a reminder, the Child Maintenance Service aids the payment process of child maintenance between separated parents who cannot reach an agreement on their own following a separation—a challenging job done in very difficult circumstances. I am sure we all recognise that for some separated parents, it will be really difficult to co-operate, especially where there might have been a history of abuse. Once parents are in the system, the Child Maintenance Service manages child maintenance cases through one of two service types: direct pay and collect and pay. For direct pay, the CMS provides a calculation and a payment schedule, but payments are arranged privately between the two parents. For collect and pay, the CMS calculates the maintenance payment and then collects the money from the paying parent and pays it to the receiving parent. Current legislation means that the default option is direct pay, unless both parents agree to collect and pay or the paying parent demonstrates an unwillingness to pay their liability. The Bill will extend the option of collect and pay without the other parent’s consent if domestic abuse is evident, regardless of the payment history.

I know that the CMS already has safeguards for victims of domestic abuse. It ensures that there is no unwanted contact between parents, and in order for parents to use direct pay safely, it provides information on how they can set up a bank account with a centralised sort code so that they cannot be traced to a specific location. I reiterate that I am pleased that the provisions in the Bill will now include Northern Ireland, so that domestic abuse victims throughout the United Kingdom will benefit.

Finally, I thank all the women in my constituency and throughout the United Kingdom who have emailed me describing the horror of the coercive and controlling behaviour that many of their former partners have shown towards them over the years. They wanted to pour out what had happened to them. I very much hope—indeed, I am confident—that the Bill will prevent many more women and children from going through the trauma of coercive financial abuse in the coming years. I hope that all hon. Members agree that the Bill is worthy of our support, and I look forward to seeing it progress through the other House.

[Mr Deputy Speaker (Sir Roger Gale)]

I apologise to the hon. Gentleman for calling him prematurely.

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[Sally-Ann Hart]

With the leave of the House, I will take this opportunity to praise and thank the Minister and hon. Members on both sides of the House for their work and support throughout the process. I extend my appreciation and huge thanks to the Public Bill Office and the officials from the Department for Work and Pensions for their guidance and support, for which I am truly grateful. The support on both sides of the House further proves the overwhelming necessity for the Bill. The need to continue the Government’s essential work to protect women and children, predominantly, from falling victim to domestic abuse is vital. Through the Bill, more protection will be given to some of the most vulnerable in our society.

I thank my hon. Friend the Member for Sedgefield (Paul Howell) for his moving contribution, including on the need for the CMS to keep a forensic eye on the paying parent’s earnings to stop them wriggling out of paying. I also thank my hon. Friend the Member for South Cambridgeshire (Anthony Browne), who highlighted his concerns.

I thank the hon. Member for Lewisham, Deptford (Vicky Foxcroft) for her kind words in support of the Bill. I agree that the 4% fee should be waived for victims, but I stress how important it is to get the Bill through Parliament unhindered as soon as possible. I am confident that that matter and the others that she raised are being considered by the relevant Departments and I welcome the Minister’s assurances on that. I thank my hon. Friend the Member for Barrow and Furness (Simon Fell), who stressed the importance of parents looking after their children financially, and my hon. Friend the Member for Great Grimsby (Lia Nici) for her contribution.

Getting children and families right—strengthening families—is vital for our communities, for my beautiful constituency of Hastings and Rye, and for our wider society. The Bill will strengthen the support that domestic abuse victims are offered when using the CMS by allowing them to decide what service type is best for their child maintenance case and their circumstances. I wish it success as it moves to the other House.

Question put and agreed to.

Bill accordingly read the Third time and passed.

Oral Answers to Questions

Sally-Ann Hart Excerpts

Monday 31st October 2022 Commons Chamber

[Mel Stride]

My hon. Friend is right to raise this very important benefit, pension credit. He will be aware that the Department has been fully engaged in encouraging pensioners who will qualify to take up this benefit, and it is important that they do, because it is worth more than £3,000 a year and it is a gateway benefit for other benefits in turn. I pay tribute to the Minister of State, my hon. Friend the Member for Hexham (Guy Opperman), who has done a great deal to push greater uptake, including a week of effort back in June when the uptake increased by 275% in that week.

[Sally-Ann Hart (Hastings and Rye) (Con)]

2. What steps his Department is taking to help reduce the number of people who are economically inactive.

[Daniel Zeichner (Cambridge) (Lab)]

3. What recent assessment he has made of the implications for his policies of the level of economic inactivity in the labour market.

--- Later in debate ---

[The Secretary of State for Work and Pensions (Mel Stride)]

The labour market has recovered strongly since 2020, with payroll employment up on the pre-pandemic level in all 12 regions of the United Kingdom. We have comprehensive support in place to help people to find, progress and stay in work, with additional support for groups we know are more likely to be inactive, such as those aged 50-plus and people with a disability.

[Sally-Ann Hart]

Work is the best route out of poverty, and it is concerning that claimants of, and public spending on, working-age benefits have increased significantly since 2019. There is more that the Government can do beyond the conditionality regime, so can the Secretary of State confirm that implementing universal support, which is designed to help those facing barriers to work and to overcome the complex challenges holding them back, will be considered?

[Mel Stride]

I agree entirely with my hon. Friend that work is the best route out of poverty, and in that regard I commend her for her private Member’s Bill, which the Department is pleased to support. Our low unemployment rate demonstrates our extensive support for those moving into work; universal support has been replaced, as she may know, by Help to Claim, which provides tailored support to individuals making a universal credit claim across England, Scotland and Wales.

Child Support Collection (Domestic Abuse) Bill

Sally-Ann Hart Excerpts

Friday 28th October 2022 Commons Chamber

[Sally-Ann Hart (Hastings and Rye) (Con)]

I beg to move, That the Bill be now read a Second time.

I am pleased that we have time today to debate this Bill, which is an important measure to help safeguard victims of domestic abuse who use the Child Maintenance Service. MPs from across the House will have experienced casework where constituents—predominantly women—who are struggling financially find it very difficult to make their former partner pay child maintenance and have to chase this through the CMS.

We have all seen the impact, mainly on women, and children, when abusers have made it difficult for their formers partners by using money as a means of controlling them. Although the majority of separated parents do all they can to make sure they financially support their children, we have all had casework on the non-payment of child maintenance. I praise in particular the work of Baroness Stedman-Scott, the Minister in the other place, for her focus and hard work on this issue, as well as the CMS staff. Chasing non-payers, even when victims sometimes just want to give up, lifts thousands of children out of poverty. Since 2019, more than £1 billion of child maintenance support has been collected and arranged each year through direct pay and collect and pay. Until fairly recently, financial abuse has been under-recognised as a form of domestic abuse, in which victims, predominantly female, are cut off from sources of money by their partner as a form of control. I therefore cannot discuss this Bill, which is concerned with a niche aspect of domestic abuse, without mentioning the work of consecutive Conservative Governments on this serious issue. The most recent piece of legislation against domestic abuse is the Domestic Abuse Act 2021, landmark legislation that significantly enhances protection for victims of domestic abuse.

Some 2.4 million people in England and Wales are estimated to have suffered some form of domestic abuse. In the UK, some reports estimate that one in eight adults—5.9 million people—experience economic abuse in their lifetime from a partner or family member. Some 4.2 million of them are women, and this financial abuse can leave women with no money for basic essentials such as food and clothing. Financial abuse also has an impact on children, who are real but all too often overlooked victims.

In my former role as a magistrate, I witnessed at first hand how perpetrators of domestic abuse can sit in a courtroom, lie, make sounds or move in a certain way that, to the victim, is terrifying. I have also witnessed those who try to use money or access to money as a means of control, leaving victims feeling worthless and powerless.

[Dr Luke Evans (Bosworth) (Con)]

My hon. Friend is making a powerful speech and I support her Bill wholeheartedly. She is right to point out how children are victims. In my former role as a GP, before coming to the House, I used to see the impact of domestic abuse on children, and not only when they were young but throughout their lifetime. The real key is to ensure that we clamp down on domestic abuse so that it does not have that long-term impact on the rest of someone’s life.

[Sally-Ann Hart]

I thank my hon. Friend for his incredibly good intervention. I absolutely agree.

Before I go into detail on the Bill’s aims, it may be helpful if I explain, for hon. Members who may not be aware of it, how the Child Maintenance Service operates. In an ideal world, the Child Maintenance Service would not be needed. It is certainly not a service that many people would want to use, but it is a safety net when parents who have separated cannot reach agreement on financial responsibilities, especially when one parent is deliberately trying to evade paying their share. It goes without saying that even when a relationship between parents breaks down, their financial responsibilities to their children continue at least until their children reach adulthood. It takes two to tango. Responsibility must be shared.

The purpose of the Child Maintenance Service is to facilitate the payment of child maintenance between separated parents who are unable to reach their own agreement following separation. It is a challenging job that is done in very difficult circumstances. Getting a maintenance arrangement in place for children improves their life and improves their chances in life. Ensuring that parents take responsibility for their children, including financial responsibility, means that they are giving them the best start in life.

Many hon. Members will have had some experience with the Child Maintenance Service. Some experiences will have been positive and some negative, but those who remember the Child Support Agency will know how much work has been done over the past few years to improve the system. I am sure all hon. Members will acknowledge that the Child Maintenance Service performs well—much better than previous child maintenance systems. Improvements include bolstering enforcement powers to tackle parents who refuse to pay what they owe, and moving more of the service online. Passports can be removed if a paying parent will not pay up, for example, and eight out of 10 new claims are now made online.

The Child Maintenance Service manages child maintenance cases through one of two service types: direct pay, and collect and pay. With direct pay, the Child Maintenance Service provides a calculation and a payment schedule, but payments are arranged privately between the two parents. With collect and pay, the Child Maintenance Service calculates how much maintenance should be paid, collects the money from the paying parent and pays it to the receiving parent. Under current legislation, direct pay is the default option unless the paying parent agrees to use collect and pay or demonstrates an unwillingness to pay their liability. The Bill aims to extend the collect and pay service to victims of domestic abuse, regardless of the payment history.

I know that the Child Maintenance Service already has safeguards in place for victims of domestic abuse. For example, it ensures that there is no unwanted contact between parents and provides information on how parents can set up a bank account with a centralised sort code so that they cannot be traced. I look forward to reading the independent review of domestic abuse support in the Child Maintenance Service, which was completed earlier this year and which I hope will be published as soon as possible. I am sure that we can all acknowledge that any situation where former partners have to co-operate is always going to be difficult for some people. That is particularly the case where there has been domestic abuse in the relationship.

These proposals are about giving victims of domestic abuse the choice to use collect and pay, so that they can decide what is best for their personal circumstances. Thus they can avoid entirely any need to transact with the other parent where that is appropriate, which will help them to feel as safe as possible using the Child Maintenance Service, particularly if the relationship with their former partner was abusive. That will protect them from ongoing coercion and abuse in their financial arrangements.

[Andy Carter (Warrington South) (Con)]

My hon. Friend is making a powerful speech. Can she just set out how the system will work? She mentions that she was a magistrate, and she knows that I also carry out that function. Would it be that, at the conclusion of a domestic abuse trial or sentencing, there would be a court order in place to ensure that the payments were made, or would it be some other way?

[Sally-Ann Hart]

This Bill represents the change to primary legislation, and I understand that there will be secondary legislation on how the system will work in practice, including what evidence of domestic abuse will be required and whether there will be a court order or some other mechanism, such as a finding in a fact-finding hearing. That will become apparent in due course through secondary legislation.

The Bill will amend primary legislation to allow victims of domestic to use the collect and pay service without the consent of the other parent where there is evidence of domestic abuse against the requesting parent—it could be against the paying or receiving parent—or even abuse against children in their household by the other parent involved in the case. As hon. Friends may be aware, there are collection charges for the use of the collect and pay service of 20%, on top of the maintenance liability for the paying parent and 4% of the maintenance received for the receiving parent. While the Minister is clear that charges are the right approach for current users of this service, I am grateful to him for indicating that he is willing to consider whether an exemption may be appropriate in these cases.

I want to thank the Minister and Department for Work and Pensions officials for all their help with the Bill, as well as all hon. Members in the Chamber for being here to debate it; I very much hope it will receive their support today.

--- Later in debate ---

[Sally-Ann Hart]

With the leave of the House, I wish to thank all hon. Members for their contributions today. I particularly thank my hon. Friend the Member for North Devon (Selaine Saxby) for highlighting the economic abuse in her constituency, which is suffered by men, women and children; my hon. Friend the Member for Southend West (Anna Firth), who highlights the importance of good law to protect women and children; and my hon. Friend the Member for Darlington (Peter Gibson), who highlights the work of Conservative Governments to address violence against women and girls, as well as the role of banks in helping to prevent or facilitate the continuation of economic abuse. I also wish to thank the shadow Minister, the hon. Member for Reading East (Matt Rodda), for his positive comments and support for the Bill, and the Minister and the Department for Work and Pensions officials for their advice and support.

There are areas to consider further, including the secondary legislation as regards evidence of abuse and the question of fees. I am also looking forward to the independent review, as discussed in the debate, being published as soon as possible. The Bill will strengthen the support that domestic abuse victims are offered when using the CMS by allowing them to decide what service type is best for their child maintenance case and their circumstances, and I hope that it will progress through the House with full support.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Public Bill Committee (Standing Order No. 63).

[Mr Deputy Speaker (Mr Nigel Evans)]

Congratulations.

Oral Answers to Questions

Sally-Ann Hart Excerpts

Monday 21st March 2022 Commons Chamber

[Dr Coffey]

I said the Opposition; the SNP might be the second Opposition party. The Labour Opposition did support the Bill until it came back from the Lords. There was a lot of support at the time, recognising the statistical anomaly.

[Sally-Ann Hart (Hastings and Rye) (Con)]

T4. The jobs of the future, especially in the green industries, require technical skills, and investing in people to improve their technical skills is vital to the Government’s levelling-up agenda, which is particularly important in beautiful Hastings and Rye. What steps is my hon. Friend taking to increase the technical skills levels of people who are already in work?

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

I thank my hon. Friend for that question, which I think will interest the hon. Member for Wirral South (Alison McGovern) as well. From April this year, our new DWP in-work progression offer will support working universal credit claimants to progress and increase their earnings. It will include better support to upskill and retrain, and low-paid workers are eligible for training funded by the Department for Education via skills boot camps in digital engineering and the green sectors.

Pension Schemes (Conversion of Guaranteed Minimum Pensions) Bill

Sally-Ann Hart Excerpts

3rd reading
Friday 25th February 2022 Commons Chamber

[Sally-Ann Hart (Hastings and Rye) (Con)]

I congratulate the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) on successfully bringing forward this well-considered Bill and for so excellently and comprehensively explaining why we need it.

When the Equal Pay Act gained Royal Assent on 29 May 1970, the House took an all-important step towards ensuring the equal treatment of the sexes in the workplace. It also sent a broader message about the United Kingdom’s societal values. Since the Act’s commencement in 1975, even greater strides have been taken towards ensuring gender equality. However, as I am sure colleagues agree, much work remains to be done to that end.

As lawmakers, we in this House all have a responsibility to strive continuously towards the goal of gender equality through legislation, whether modest, substantial or otherwise, and the Bill can rightly be seen as a means of doing that. Specifically, it will right a historical oversight by making crucial clarifications in relation to guaranteed minimum pensions equalisation and pension schemes.

Madam Deputy Speaker, you can see that I am holding a wonderful speech that I have criss-crossed out because I do not think I need to go through all of that detail—we also have other people who wish to speak and other Bills to consider. However, proposals and methodology brought in during 2016 and 2017 should be secured in relevant regulations, including the positive impact that they would have on the equality of outcome for the sexes. These concerns must be properly addressed in legislation, and that is what the Bill rightly seeks to do. It has also been welcomed by leaders across industry as covering key areas where clarification is most needed, which will make the important process of equalising benefits using GMP conversion easier.

Bearing that positive reception from industry in mind, and given the broader message that it sends about the importance of the equality of the sexes in legislative matters both significant and modest, I strongly welcome the Bill and offer it my wholehearted support.

Pension Schemes (Conversion of Guaranteed Minimum Pensions) Bill

Sally-Ann Hart Excerpts

2nd reading
Friday 26th November 2021 Commons Chamber

[Sally-Ann Hart (Hastings and Rye) (Con)]

Today, I welcome the private Member’s Bill introduced by the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier). It is very commendable. On 29 May 1970, the Equal Pay Act gained Royal Assent. With its passing, this House took an important and laudable step towards ensuring the equal treatment of men and women in the workplace and our society more generally. Since the Act’s passing and its later commencement in 1975, even greater strides, both de facto and de jure, have been taken towards gender equality, but as colleagues will know, much work remains to be done to that end. We all have responsibility as lawmakers to strive towards it continuously, through pieces of legislation substantial, modest or otherwise. The Bill can rightly be seen as a means to do that. Specifically, it will help right a historical oversight by making important clarifications in relation to pension schemes and guaranteed minimum pensions.

The historical oversight has been explained comprehen- sively —I will not go into that—but we see that it has its roots in the state earnings-related pension scheme that was introduced in April 1978, as well as the Pension Schemes Act 1993, which required GMPs effectively to be calculated on a fairly unequal and unfair basis. It has ultimately meant that the age at which GMPs could be calculated and the rate at which benefits built up were different for men and women. It is far from clear which sex received the greater total benefit as a result of this discrepancy, primarily as related advantages fluctuate over time. Whether it is men or women who benefit, such equality cannot be considered just.

There have been consultations over time about guaranteed minimum pension schemes and how equalisation in occupation schemes should be looked at. There was a consultation and proposal in 2012, and another in 2016-17. Compared with the 2012 consultation and methodology, the Department for Work and Pensions stated that there was broad agreement that the newer method was a distinct improvement and offered a relatively simple way to convert GMPs into ordinary scheme benefits, thus ensuring equality across the board and assisting the industry to deliver the change without policies being excessively onerous. That development was welcome, but concerns have continued to be raised by the industry that existing legislation is unclear in some areas, including, for example, that it fails to provide for circumstances in which the scheme’s sponsoring employer no longer exists and therefore cannot consent to a proposed conversion exercise as per the methodology.

For the full benefits of the 2016-2017 proposal on methodology to be secured in the relevant regulations, including the positive results for equality of outcomes for the sexes, these concerns must be properly addressed in legislation, and that is what the Bill seeks to do. As I understand it, the Bill will make it clear that the legislation applies to survivors as well as earners; provide for a power to set out in the regulations the conditions that must be met in relation to survivor’s benefit; provide for a power to set out in regulations detail about who must consent to the GMP conversion; and remove the requirement to notify and inform HMRC.

The Bill has been welcomed by industry leaders for covering key areas where clarification is most needed, which will in turn make the important process of equalising benefits using GMP conversion easier. With this positive impact on the industry in mind, and given the broader message that it sends out—that the equality of the sexes is important in all legislative matters, both significant and modest—I welcome the Bill, which is worthy of support from across the House.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

It is a privilege and an honour to address the House on behalf of the Government, and to set out our position on this small but very important Bill.

Let me first congratulate the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) on her success in the ballot, because without the ballot she could not have presented any piece of legislation. It is important for people to understand that. I also congratulate her on the massive support—of which the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) spoke eloquently—that she has managed to garner across the sector for a piece of amending legislation to address a small, discrete but genuinely important measure, and on the way in which she introduced the debate. She is right, and the hon. Member for Gedling (Tom Randall) is right: this is not simple stuff. It is technical, but it matters tremendously. She set out, with great eloquence and fairness, the background to the problem and how her three-clause Bill will address it. She brought to the attention of the House the need for schemes to make progress with the equalisation of scheme benefits to take account of the unequal effect of guaranteed minimum pensions. She set out why this issue is of paramount importance and how the House can help to clarify the legislation, and I can confirm that the Government will support the Bill.

As we all know, there are 13 days a year on which we consider private Members’ Bills. Some of those days are interesting, to put it charitably, in that the Bills will not necessarily be supported by the Government or even the Opposition on many occasions. Points of great importance are raised but the Bills do not go forward with the will of the House. However, that is not like today. Today is a very special day, and I cannot overstate the sense of genuine achievement that Members across the House should feel about the progress of the Down Syndrome Bill. Anybody who was in the Chamber to hear what was said will have been utterly moved and taken away by the wisdom and significance of the speeches and the differences that that Bill will make. We have now come to a very different Bill, but it is no less important.

I am now—I believe—on my fifth pensions Bill, Madam Deputy Speaker. As a former Pensions Minister, you were one of the architects of automatic enrolment, which my hon. Friend the Member for North West Durham (Mr Holden) so eloquently—

[Sally-Ann Hart]

Will the Minister give way?

[Guy Opperman]

Of course.

[Sally-Ann Hart]

My hon. Friend said that he is on his fifth pensions Bill. Is it right that pensioners are better off now than they were 10 or 15 years ago?

[Guy Opperman]

In a whole host of ways, the answer is yes. The state pension, by reason of the triple lock, is now £2,050 higher than it was prior to the introduction of the triple lock in 2010. There is automatic enrolment, and it would be fair for me to give a quick history of that because we have the esteemed former Minister in the Chair. Automatic enrolment was conceived by the Labour Government and the Turner commission. It was introduced by the coalition Government in 2012. Without a shadow of doubt, it has been utterly transformational. For example, 6,000 constituents of my hon. Friend the Member for North West Durham are saving the 8% thanks to the 1,580 employers in his constituency who support that. He made a very telling point about the 2017 automatic enrolment review, and given that he raised it—not for the first time— I will finish this point on automatic enrolment and the importance of this change before I go on to GMPs.

I am proud to say that the success of the provision now means that 10.5 million employees have been automatically enrolled into a workplace pension by more than 1.8 million employers. It was specifically designed by the Labour Government and brought in by various other Governments to help groups who historically have been less likely to save, particularly women, low earners and young people—this goes to the point made by my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart). It has helped many in those groups to begin to save into a pension for the very first time. Workplace pension participation among eligible employees has grown to 88% overall compared with 55% in 2012. The proportion for women and young earners was less than 40% in 2012; it is now above 80%.

There is more that we can do, and we very much hope we will, and we recognise that challenges remain. Our ambition, as my hon. Friend the Member for North West Durham set out in relation to the 2017 review of automatic enrolment, is to enable people to save more and start saving earlier. Abolishing the lower earnings limit for contributions and reducing the age for being automatically enrolled to 18 in the mid-2020s will benefit younger people, the low-paid and part-time workers as they will receive contributions from their employer from the very first pound earned. I want to stress that as a Government, we remain utterly committed to those measures. I have been clear that the implementation will be subject to the learnings that take place from the 2018 and 2019 contribution increases. That is significant and it is important that that is done.

Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill

Sally-Ann Hart Excerpts

Report stage & 3rd reading
Wednesday 22nd September 2021 Commons Chamber

[Kevin Hollinrake]

The Treasury deserves great credit for introducing this compensation scheme in the first place. It is a pity that the Minister responsible—my hon. Friend the Economic Secretary—is not on duty today, because he deserves personal credit for that, but the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman) is an excellent stand-in.

Warren Buffett once said that what we learn from history is that we do not learn from history. The key lesson that we have to learn from this sorry episode—a damning assessment of the Financial Conduct Authority’s capability as a regulator at the time—is the need for scrutiny of the regulator. As many Members know, I do quite a lot of work trying to hold banks to account in the all-party parliamentary group on fair business banking, but I still do not know how this place holds the regulator to account. I know that the Treasury has some direct influence, and the Treasury Committee can write reports and conduct inquiries, but I still do not know of a direct mechanism that can be used by this House to address regulation and regulations.

Now that we have repatriated the oversight function from the European Union, various different suggestions have been made as to how that might happen in this House. One of the most interesting proposals is for something along the lines of the Public Accounts Committee—a regulatory accounts committee, supported by a version of the National Audit Office, so that professionals would sit behind a parliamentary committee made up of elected parliamentarians. Whoever holds the regulator to account should be accountable to the public; they should not be an independent body of appointees. There must be a mechanism to make sure that the regulator does the right thing, makes good on its future commitments and ensures that episodes like this do not happen again.

The Gloster report, which led to the compensation scheme that we are putting in place today, made very damning criticisms of the then governor of the FCA, Andrew Bailey, who is now the Governor of the Bank of England. I have experience of dealing with the FCA and Andrew Bailey—I asked him four times whether he had followed the FCA’s own whistleblowing procedures when handling the case of Sally Masterton’s whistleblower complaint with HBOS Reading and Lloyds. He refused to answer that question, which I find horrendous. Both the FCA and the whistleblowing legislation were established by statute, yet we as parliamentarians cannot hold the regulator—which we put in place—to account. We need a better system of regulatory oversight.

[Sally-Ann Hart (Hastings and Rye) (Con)]

Residents in Hastings and Rye have been victims of London Capital & Finance. Does my hon. Friend agree that if people do something in good faith, get the right advice and the right system is in place, there should be measures in place to ensure that they do not end up on the back foot?

[Kevin Hollinrake]

As I said on Report, it is incumbent on investors to check out investments. If something is paying out 8% when they can get 0.5% from their bank, they must say, “Well, this is more risky than simply putting it in the bank.” We cannot lose sight of that principle. However, the least we can expect is a regulator that is proactive. In 2015, a number of people were raising concerns about LC&F, including an independent financial adviser who wrote in detail to the FCA to say what was happening at LC&F, but the FCA did nothing for four years, which is totally unacceptable. People deserve a higher standard of regulation.

On the Online Safety Bill, London Capital & Finance spent £20 million on Google advertising. It is clear that platforms are playing a role in this. This was not even seen as a scam. We can argue that it was a scam, but it was to some extent regulated by the FCA. UK Finance has released a report today saying that online scams are now a national security risk. We must take seriously its calls for more action to be taken. The Online Safety Bill must be the right place to legislate to require the platforms to at least establish whether the investment companies—the people who are advertising investments—are bona fide organisations, and not simply people impersonating them.

With that, I will conclude. I am keen to hear the Minister’s words in his summing up.