Equality and Human Rights Commission

Debate between Sandra Osborne and James Brokenshire

Tuesday 24th April 2012 Westminster Hall

[The Parliamentary Under-Secretary of State for the Home Department (James Brokenshire)]

I congratulate the hon. Member for Ayr, Carrick and Cumnock (Sandra Osborne) on securing this debate, and on her commitment to equality. I apologise for the fact that the Minister for Equalities is unable to be in Westminster Hall this afternoon to respond directly to the debate.

I know of the hard work done by the hon. Member in chairing the all-party group on equalities, and how rigorous that group is in its approach to equality and fairness. Although we may have differences in relation to a number of the issues that she has raised today, the Government welcome the group’s rigour because we are unequivocal in our commitment to equal treatment and equality of opportunity. That is why we have taken a number of significant steps since we were elected to tackle the barriers to equal opportunities and social mobility. Although there will be differences between us this afternoon, I think that there is common recognition of these important issues.

However, on our own the Government will only ever make limited progress. If we are to stamp out prejudice and give everyone the chance to achieve their potential, we need concerted action by individuals, businesses and voluntary organisations across our communities. We also need a strong and effective equality body and national human rights institution to monitor our progress, make recommendations about how we can do better and ensure the law is working as intended.

Although I recognise the EHRC has struggled with a number of issues over the past few years, I pay tribute to several of its ordinary members of staff. However, the commission has struggled with its remit and to demonstrate that it is delivering value for money. As the hon. Lady highlighted, its first three sets of accounts were qualified, attracting criticism from the Public Accounts Committee. Its helpline and grants programmes were found to be poorly administered and poorly targeted. Its conciliation service was not cost-effective, costing almost £5,000 per case—almost 10 times more than those of other mediation providers.

[Sandra Osborne]

I share the Minister’s disappointment that the Minister for Equalities is not here. She sat with me in the Committee that considered what became the Equality Act 2010. No matter what the previous Government wanted to do, she wanted to go further—how things have changed. However, will the Minister confirm the costs I mentioned, as well as the costs the Government have paid for consultancies?

[James Brokenshire]

We will no doubt come on to consultancy. One challenge the commission has faced relates to its use of interim staff, which has caused it some real issues. Over 2009-10, it spent almost £9 million—almost a third of its total pay bill—on an average of just 85 interim staff, or just 16% of its total work force for that year. There is nothing fair about that for the taxpayer.

That is why our Government-wide review of non-departmental public bodies concluded in October 2010 that the EHRC should be retained, but substantially reformed. At the same time, we announced in the spending review that we would more than halve its budget, from £55 million to £26.8 million. I know those cuts are a source of significant concern for the hon. Lady, but she will recognise, although perhaps not agree, that the Government have had to deal with real challenges as a result of the budget deficit left by the previous Government. Difficult decisions and reforms are needed to reduce that deficit.

Moreover, it is clear that even after the budget cuts, the EHRC remains well funded compared with similar bodies in other countries. As an arm’s length body, it is for the EHRC to decide how to manage the budget reductions. The location of the EHRC’s offices and the number of staff it employs at them are operational matters for the board and the management to decide after consultation with staff. If the EHRC is to deliver maximum value for taxpayers’ money, however, it must focus on its core remit—the areas where it alone can add value.

[Sandra Osborne]

Does the Minister think it is for the EHRC to decide completely to withdraw a service from Scotland and Wales? Surely, that is something the Government should be interested in.

[James Brokenshire]

The hon. Lady will be aware of the statutory functions imposed on the EHRC, as well as the duties it has in relation to devolution as a consequence, and it has underlined that it will continue to engage with local partners. Decisions on the deployment and location of staff are obviously operational matters for the EHRC, but it has specific legislative responsibilities in relation to the devolved nations, such as the requirement to have specific decision-making committees for Scotland and Wales. It remains committed to working with local stakeholders.

The hon. Lady will know that in March 2011 we set out detailed proposals to reform the EHRC to achieve the focus on its core remit by clarifying its remit; stopping non-core activities and, where appropriate, making alternative provision where those activities can be done better or more cost-effectively by alternative providers; and strengthening its governance and systems to provide greater transparency, accountability and value for money. We received almost 1,000 responses to the consultation. While I recognise that she is impatient for the Government’s response, it is right that we take the time to consider the views expressed before announcing a way forward, and we hope to respond to the consultation shortly. A number of non-legislative reforms are, however, already under way.

I am aware of the hon. Lady’s concerns about the closure of the EHRC’s helpline and the ending of its grants programmes, and I will respond to them directly. I can reassure her that people will be able to receive expert advice and support on discrimination, which is tailored to their individual circumstances, from the new equality advisory and support service that we are commissioning. She challenged me on whether there is a preferred bidder. No, there is not a preferred bidder. The procurement process for a new equality advisory and support service is continuing and no preferred bidder has been selected. The intention is that the process should be completed in May, with the new service becoming operational in September.

Central Government funding for legal advice on discrimination will continue to be available through legal aid to ensure that limited public funds are targeted on those who need it most—the most serious cases in which legal advice or representation is justified. On conciliation, the Ministry of Justice website provides information on, and links to, good quality, accessible and effective mediation for individuals in England and Wales. In addition, a means-tested service for those who cannot afford the fees is available through LawWorks. The hon. Lady will be pleased to know that similar provision is also available in Scotland.

We have sought to impose tighter financial controls and to stop waste. The operational independence of the EHRC—a publicly funded body—should not be a justification for financial indiscipline. In March, a new framework document clarifying the relationship between the EHRC and the Government was agreed between the Home Office and the EHRC board. The new framework document makes it clear that the EHRC will comply with Government-wide rules on managing public money, and with public expenditure controls, where they do not interfere with the EHRC’s ability to perform its statutory functions. In addition to establishing tighter financial controls, the new framework document sets out how the EHRC and Government will work together to increase the EHRC’s transparency to Parliament and the public about how it operates.

There have been signs of progress following action by the Government. The EHRC has reduced its dependence on interim staff and now has fewer than 20 in post. It plans to have no interim staff by 1 April 2013. It is moving swiftly to deliver significant reductions to the cost of its corporate support functions through agreeing arrangements to share back-office services with other organisations. It has set out plans to rationalise its accommodation in the next 12 months, including moving out of its expensive central London offices, which will result in further savings of more than £3 million a year. In November last year, there was a significant sign of progress when its first satisfactory set of accounts were laid before Parliament.

On the telephone helpline, the hon. Lady asked whether there had been an equality impact assessment. An equality policy statement was published by the Home Office in December, and the new service will provide a better service for people from disadvantaged groups than the helpline it is replacing. We want the EHRC to become a valued and respected national institution. To do so, it must focus on the areas in which it alone can add value, and it must be able to demonstrate value for taxpayers’ money. We will respond to the consultation shortly. We will also appoint a new chair shortly. I hope that hon. Members in all parts of the House will support our plans.[Official Report, 10 May 2012, Vol. 545, c. 1MC.]