Sure Start Children’s Centres

Sharon Hodgson Excerpts

Wednesday 2nd March 2011 Commons Chamber

[Mr Stuart]

The hon. Gentleman is right to pose this question about the right response, and we need a clearer steer. While making claims about localism, will the Government in fact quietly put pressure on councils and say, “You must keep these centres open”? I recognise why the hon. Gentleman says the last Government put all these things in place and the new Government are threatening to dismantle them while denying doing so, as that is an understandable line to take in opposition, but rationalising these centres could be the right thing to do. It could be that, after sober analysis and assessment of the needs of its local community, a local authority decides that its children’s centre buildings are not working well enough and it cannot get the teams to deliver in the right way but thinks it will be able to find a better way of providing these services. I would like to know how fixated we are going to be on children’s centres per se, rather than on delivering the outcomes for young people.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

rose—

[Mr Stuart]

Perhaps the hon. Lady, who is her party’s Front-Bench representative, will explain the Labour party’s position on that.

[Mrs Hodgson]

I am grateful to the hon. Gentleman for giving way. I too served on the Select Committee with him in the last Parliament, and I think he is doing a sterling job as Chair of the new Select Committee. I am also pleased that we are having this debate today.

I can assure the hon. Gentleman that the Opposition are not fixated on the buildings. Our priority is that the provision should still exist. We still believe it should be a universal provision targeted on those most in need. It is not about the buildings; it is about ensuring that there is a service within them. When the Sure Start children’s centres were first introduced the aim was that everybody would be within a pushchair push of one of them. If a local authority decides to have just one or two such centres, people are not going to be within a pushchair push of their nearest one, and they will therefore not be used by those who need them most.

[Mr Stuart]

I thank the hon. Lady for her intervention. She makes a fair point, but service delivery is the key and there is enormous variation in that between children’s centres across the country. In the last Parliament, the National Audit Office investigated the cost-effectiveness of centres at our behest, and it concluded that

“it remains very difficult to examine and compare centres’ cost effectiveness.”

It also said:

“Where we have been able to calculate unit costs we found wide variations. Together with other evidence this suggests that there is still scope for improving cost effectiveness.”

That suggests that there could be savings. The Government reasonably say that reductions in budget should not necessarily lead to closures. Children’s centres could, perhaps, be improved and operate on a lower budget.

The NAO also said:

“There is qualitative evidence of improvement; for example, some local authorities and centres are developing and implementing means of managing children’s centres to make more effective use of skills and resources. And most centres and local authorities have made substantial improvements in their monitoring of performance since our 2006 report.”

There is progress, therefore.

I ask the Minister to set out the Government’s vision, and explain to what extent they wish the existing infrastructure to be maintained, or whether, in the spirit of localism and the tailoring of services to meet local needs, they want local authorities to make up their own minds, which might lead to great discrepancies. It could certainly lead to the loss of a national entitlement to children’s centres, but that might be an improvement. A true localist looking at the analysis of the results so far may conclude that a more localised and differentiated approach would be better.

I went on a Select Committee trip to Finland two weeks ago. Learning lessons from Finland is hard, and I know my predecessor as Chair of the Select Committee, the hon. Member for Huddersfield (Mr Sheerman), hated any mention of Finland. I do not think he ever explained why, but I guess it was because of the difficulty of applying its experiences and contexts to our experiences and contexts. There was one thing I did learn from Finland, however. Someone in its central department of education said, “We’ve been trying to achieve a particular outcome, but although we’ve been working at it for 10 years, we haven’t really made as much progress as we want, so we’re going to work harder and carry on trying to make it happen.” That is very different from the way things are done in our country, where, typically, 18 months into a new initiative new Ministers arrive and throw it overboard because they decide it does not work, and they stop doing the long, hard, grinding work that leads to the improvement of existing services.

I would hate the groundwork that has been done by children’s centres across the country to be dismantled, not because they are universally successful but because it takes a long, hard slog to improve performance and management, to bring on more leaders, and to learn what certificates they should sit for so that we have higher quality staff who can identify the areas that are brilliant and share that practice, and identify the areas that are poor and need to be challenged. I would rather we did that than what this country seems to do, which is just throw everything up in the air again when a new set of Ministers come into office.

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[Mrs Hodgson]

My hon. Friend the Member for Westminster North (Ms Buck) has talked about the services that the centres will provide. Does my hon. Friend the Member for Liverpool, West Derby (Stephen Twigg) not agree that it is all very well keeping the buildings open, but that that will not be much use if the services have been scaled back to a point at which they are unrecognisable?

[Stephen Twigg]

My hon. Friend is absolutely right. I am not familiar with the details of what has happened in Medway, so I do not know whether that has happened there, but that is precisely what is happening in other parts of the country, as my hon. Friend the Member for Westminster North (Ms Buck) has said. In Liverpool, the day nurseries attached to two of the centres in my constituency, at Croxteth and Knotty Ash, are closing down. Keeping centres open is an important indicator, but it is not the only one. What matters is what goes on inside the centres and the services and outreach that they provide.

Liverpool city council is seeing the greatest cuts of any authority in England. Birmingham council, a Conservative-Liberal Democrat council, has produced a fascinating graph showing the relationship between the cuts in Government grant and the average level of need in an authority. There is a remarkable relationship between how deprived an area is and how big the grant cuts are. Liverpool is right up at the very top with the biggest cuts and the highest levels of deprivation. We accept the need for cuts, but we do not think that they need to go as far or as fast, and even if the quantum of cuts can be justified, their distribution between different authorities absolutely cannot be.

In that context, Liverpool city council, which has placed a strong emphasis on children’s services over the past decade under Liberal Democrat and now Labour control, is having to cut children’s centres. It is not cutting them on the same scale as Bromley, but, of our 26 centres, four are earmarked for closure, which is four more than I want to see. It is also four more than my hon. Friends the other Liverpool MPs want to see, and four more than all the parties on Liverpool city council want to see.

One of my first engagements as the new MP in West Derby last May was to attend the opening of the West Derby children’s centre. A week ago, I went back there to attend a meeting to discuss its proposed closure. It is heartbreaking for the children, the parents and the people working at the centre to see that fantastic new facility, which was created for that community, facing closure. Even at this late stage, I am working with people at the centre and councillors to consider every possible option for safeguarding it, even if it takes a different form in the future. My hon. Friend the Member for Huddersfield talked about mutualisation and social enterprise options. There might be options for at least some of the services at that children’s centre to be retained, but it would have been much better to keep the whole centre open. It opened only a year ago to provide all those services for the local community, and what is happening now is a direct consequence of Government cuts.

I also visited the Knotty Ash nursery last week, and I want to mention a woman whom I met there. Lisa Dempster is the mum of a child at the nursery, and she is happy for me to mention her. She left school when she was 16, which was 24 years ago. Throughout those 24 years, she has been in work. She has never claimed unemployment benefit, and she has paid her tax and her national insurance. She has two teenage children and a toddler. Both her teenagers want to go to university, so that they can get on in life. Her daughter, who is in the first year of the sixth form, is losing her education maintenance allowance this year, and her son, who starts sixth form this September, will not receive EMA at all. Her children are losing their bus passes, and they fear that they will face enormous debts in the future. On top of all that, her little one’s nursery place is going to be lost. She is a good example of someone who has been very badly let down by this combination of policies from the Government. The latest blow for her and her family is the closure of her local nursery.

I apologise again that I might not be here to listen to the Minister’s response to the debate, but I shall read the Hansard record. I urge her to think again, in two respects. First, I really believe that the ideal would be for the Government to re-impose the ring fence for Sure Start children’s centres. That is the best way for us to ensure that there is a universal entitlement, which goes hand in hand with local decisions about how that entitlement is implemented in each community. If she cannot agree to that today, or thereafter, I ask that she, her colleagues in the Department for Education, and particularly her colleagues in the Treasury and the Department for Communities and Local Government look again at the unfairness of the distribution of the cuts, which are hitting children’s centres in some of the most deprived areas of the country much harder than those elsewhere. All those who have contributed to the debate agree that Sure Start has achieved some amazing things over the past decade. We also all agree that a focus on the areas of greatest deprivation must be at the heart of Sure Start in the future. I fear, however, that the broader picture of the cuts will undermine all the Minister’s personal good intentions.

--- Later in debate ---

[Mr Slaughter]

I am grateful for that. The Minister has said in previous debates that she has concerns about what is happening in Hammersmith. Her view—she has expressed it both in answer to parliamentary questions and in debate—is that there is sufficient money in the early intervention grant to preserve the network of Sure Start centres. I am sure she will repeat that view today, in spite of a cut of about 13% coming from central Government—certainly my Conservative council has said that the cut in Sure Start funding through the early intervention grant is 12.9%.

Given that we are talking about what are already pretty lean organisations, as my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger) said, we could argue about whether even a 13% cut can sustain the current professional network. However, the Minister has set out her stall on that, so I will address the issue locally, because even on the basis of the cut of about 45% that we are facing—a cut that has been revised slightly downwards—the preservation of Sure Start in Hammersmith is demonstrably unsustainable.

Without going into too much detail, there are one or two points from my local examples that bear analysis, because similar things may be happening elsewhere in the country.

[Mrs Hodgson]

Before my hon. Friend moves on, I would like to get some clarity on the assertion, which we keep hearing, that the early intervention grant is being protected in cash terms. When we look at the technical note, which I continually refer to—I even carry it round in my handbag, to have it handy at every opportunity—we see a £311 million in-year cut for 2010-11. It looks as though the grant is being protected in cash terms, but a £311 million in-year cut is being taken off the bottom, so it is not protected in cash terms at all. When we bear that in mind, we see that we are talking about a 20% cut over three years.

[Mr Slaughter]

Indeed, and with a 13% cut in the first year for my area. However, if my hon. Friend does not mind, I want to leave her and the Minister to debate that point, which is a valid one. We heard a disingenuous speech by the hon. Member for West Suffolk (Matthew Hancock), who implied that there was no need to make cuts of that order and that the Government were in some way protecting Sure Start. On the figures that my hon. Friend has given, that is not true around the country. However, if she does not mind, I will leave that point because, from my perspective, we would be grateful for a 13% cut—if I can put it that way—rather than what is actually happening.

--- Later in debate ---

[Mr Slaughter]

I am grateful to my hon. Friend, but I shall now try to make some progress.

On or about 27 December—a time when we are all assiduously reading Government and council documents—my local authority published a report on family support, indicating what funding would be available over the next financial year. The report addressed Sure Start—not directly, but obliquely—first by rubbishing Sure Start provision, saying that although the centres were

“clearly popular with families, and seem likely to have some preventive impact, we have much less clear evidence about the degree of impact this has—including on the ultimate number of children falling into child protection”,

and that

“early studies showed no clear evidence of impact on early school results”.

That might come as a surprise to Members on both sides of the House, given that we heard my hon. Friend the Member for Liverpool, Wavertree earlier quoting the Prime Minister and Deputy Prime Minister—certainly before the election—expressing their strong support for Sure Start. However, those rather vague and grudging comments were used as the basis for reducing Sure Start funding by over 50%, with the council report saying:

“However, it is not likely under this scenario that LBHF could continue to directly fund more than 6 Children’s centre teams. In any case we would no longer seek to directly run centres”,

adding that it aimed

“to maintain some provision at most centres, through small amounts of pump-priming funding.”

In the financial section of the report, however, no money whatever was provided for such pump priming; money was provided simply to keep the remaining six centres open.

Perhaps unsurprisingly, by the time report came to committee and was due to be dealt with on 10 January, there was what might be called “a row on the town” in that a large number of people were concerned about it and turned up at the meeting. Indeed, my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) was one of them, so she might want to comment further in her own speech. At that meeting, the authority, faced with great popular disapproval, told people that they had misunderstood the position as no centres were going to be closed, and had misunderstood that the decision had already been taken as consultation was about to be launched. That is what we were told. That would have sounded quite good, save for the fact that the report was then passed in its entirety, including the 50% cut to the budget. We were in the peculiar position of being told one thing when a decision had been taken that was entirely contrary to it. The situation became even more complicated when, later in the same week and rushed out in response to public demand and other factors, a consultation paper was published, with an extra £19,000 slipped in, which turned out to be the pump-priming money—the £19,000 that was going to the Sure Start centres under threat of closure.

Leaving aside the fact that this was shambolic, chaotic and no way to run anything, let alone a local authority, we need to reflect on the reasons for this process of decision making. There were three. The first was connected to public relations. By putting £19,000 into centres that previously had no money at all, the authority could say to the general public and the media, who by this time were taking a strong interest in the issue, that it was not closing the Sure Start centres. Secondly, the consultation was done quite successfully, but it confused the parents and users of those centres, who were told that the centres were not closing but staying open as a result of this £19,000. Thirdly, and perhaps most importantly, somebody had bothered to look at the regulations, so a scrutiny report was published at the same time, making the observation:

“Local authorities have duties under the Childcare Act 2006 to consult before opening, closing or significantly changing children’s centres, and to secure sufficient provision to meet local need”.

The authority realised that it would be subject to judicial review if the consultation process did not happen. I suspect that it will still be subject to judicial review because consulting after the decision has been made is not the best option.

[Mrs Hodgson]

I read that same paragraph in a copy of a letter from the hon. Member for Mid Dorset and North Poole (Annette Brooke), which was a response to a letter to the Minister of State, Department for Education, the hon. Member for Brent Central (Sarah Teather), from the all-party Sure Start group. I was curious because I thought it sounded like closing the stable door after the horse had bolted. Once the budget cut has been made, the consultation does not matter, because if the consultation showed that people wanted to keep the centres, where would the money come—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. We need much shorter interventions, as there are more Members wishing to participate in the debate.

--- Later in debate ---

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

I thank the Chair of the Education Committee for securing this timely debate. We served together on the Children, Schools and Families Committee in the previous Parliament and he is already making a name for himself. Although I am very grateful to him for securing the debate, I doubt that the Minister will be quite so grateful given the opportunity it has created for colleagues to air their experiences of the impact on the front line of the decisions that she and the Secretary of State have taken about funding and the removal of ring-fencing.

The debate is timely for several reasons, but primarily because many local authorities are taking decisions that they do not particularly want to take on the future of children’s centres. That is especially true of Liverpool. Contrary to some of the disgraceful comments that have been made in the past week and even in this debate, those decisions are not politically motivated. Liverpool is having to take them because of the terrible settlement it has received, which is one of the worst in the country even though it is the most deprived local authority in the country.

The debate is also timely because it fortuitously follows a seminar on Sure Start that was hosted in Parliament this morning by my right hon. Friend the Member for Leigh (Andy Burnham), as well as the 4Children conference at which the Minister of State and my right hon. Friend the Member for Birkenhead (Mr Field), who is not in his place, also spoke. I understand that she thanked them this morning for their constructive criticism, so I hope that she will take my remarks in the same spirit.

If the Minister had been able to come to the seminar, I am sure she would have found it very useful. We heard from a number of parents and others involved in children’s centres about what services mean to them and their communities and about the impact that budget cuts could have and are having. We heard from everyone, including some of the Minister’s colleagues, whom we were pleased came along. We heard, as we have heard in this debate, about the difference that good children’s centres can make to the lives of children and parents. We heard from Willie Wilson, whose children attend the Pen Green centre in Corby. He told us how being involved in its Sunday dads group had helped him to overcome his mental health issues and how much his children enjoyed using the centre. He said:

“Everything good in my life in the last five years has been down to Pen Green Children’s Centre”.

Those sentiments were echoed by a young mum who told us how her local centre had helped her and others to get over post-natal depression. Pen Green is facing big cuts to its funding and might have to cut services. I understand that the Minister’s colleague, the hon. Member for Corby (Ms Bagshawe), has said that that will happen over her dead body. I do not know whether the Minister just caught that but I think the Secretary of State did and I hope that they will talk to the hon. Lady about that, as such comments are not necessary.

The panel at the seminar agreed with something that the Minister will have heard at her engagement this morning: the ring fence to Sure Start funding is key to the stability of the service on the front line. It also agreed that it is no good keeping centres open if they are not providing a good quality service.

We learn, as we have today from Hammersmith and Fulham, the Prime Minister’s favourite council, that centres that are apparently being kept open will have to survive on a budget of £19,000 a year. No doubt the Minister will agree that that will not go far. It is hardly enough to pay for a caretaker, let alone the running costs and a work force. If we want good results from centres, they need the funding and the stability of funding to employ qualified staff and provide quality services. Cuts and the removal of ring-fencing will not help.

The Minister has been conspicuous by her absence from the past two meetings of the all-party Sure Start group, although we were pleased that the Under-Secretary of State for Education, the hon. Member for East Worthing and Shoreham (Tim Loughton) was present. The hon. Lady recently got round to replying to a letter sent from the group in December, to which I referred earlier. Given the Minister’s absence from the meeting as she was ill, I was surprised to receive, during the meeting, a Google alert informing me that she had published a local media release that very afternoon criticising her local Labour council in Brent for closing or downgrading

“10 out of 20 children’s centres”.

Apart from that not being strictly true—I have checked—I thought it was a bit rich that the hon. Lady should be criticising her local council, which is having to deal with a real-terms cut to its budget for early intervention of almost £10 million over three years, or 18%, according to figures that I have from the Library. That is a cut that she handed to the council, and a decision that she made. She even had the sense of humour in that press release to portray that as a rather good deal. I doubt whether many of her constituents will see it that way, even if Brent council manages to protect the majority of front-line services.

We keep hearing the refrain that there is enough money in the early intervention grant to maintain the children’s centre network. We heard it from the Prime Minister earlier, and a couple of weeks ago he even said that funding for that grant is going up. Both those statements are misleading to the public. The early intervention grant might be increasing by a small amount between 2011-12 and 2012-13, but from the baseline—the budget that councils originally had for services that will now be provided by that fund—there is a significant cut. The EIG covers more than 20 other funding streams, as well as children’s centres, and according to the Department’s publications it is being cut by a total of almost £1.4 billion over three years in cash terms. In real terms, Commons Library research shows that that will be more like 18%, with the worst-hit areas seeing cumulative cuts of more than 22%.

Funding for children’s centres is not ring-fenced within the early intervention grant, which itself is not ring-fenced from the rest of the local authority’s budget, so there is nothing to stop that money being used to fund things entirely separate from what it is supposed to be for. There is therefore no way in which the Minister can realistically tell us today that she is protecting Sure Start. She will call it localism, no doubt, but I call it naiveté in the extreme. Why be a Minister if all she can do is cross her fingers and hope for the best?

I am sure that very few local authorities want to cut budgets for children’s centres or other early intervention schemes, but given the scale of the cuts to their budgets across the board, many of them will have no choice. If not children’s centres, do they cut breaks for disabled children, programmes to combat teen pregnancy, family intervention or targeted mental health in schools, all of which save money in the long term, which is the purpose of early intervention projects? We all know the old adage about a stitch in time saving nine. In short, cutting early intervention funding is ill thought out and will create long-term problems for the sake of short-term savings.

[Mr Graham Stuart]

I am grateful to the hon. Lady, all the more so after her kind words. It is early days and, as I said in my remarks, I hope we do not see the dismantling of a service that is still embryonic. It is not about buildings or budgets, but about outcomes. How does she think we can best ensure that it delivers the outcomes we want? Would she support a movement to payment by results, for instance?

[Mrs Hodgson]

I would support a return to the ring fence, if not for the whole early intervention grant, then specifically for the Sure Start element within it. [Interruption.] The hon. Gentleman wanted my opinion and I have given it. The proposals are also contrary to the considered views of the Select Committee, which he now chairs, of my right hon. Friend the Member for Birkenhead and of my hon. Friend the Member for Nottingham North (Mr Allen).

The Minister of State seems to be continually distracted and keeps missing important points I am making. She has already had to ask the Secretary of State about my comment on the hon. Member for Corby, and I would not like her to miss anything else I say.

As I said, my right hon. Friend the Member for Birkenhead and my hon. Friend the Member for Nottingham North, whose opinions the Minister actively sought, have both championed the prioritisation of early intervention schemes such as children’s centres.

[Michael Gove]

The hon. Lady says that she would ring-fence funding for Sure Start but has not made it clear that she would increase the early intervention grant. The right hon. Member for Morley and Outwood (Ed Balls) has recently proposed a tax cut by not going ahead with the VAT increase on fuel. If she would ring-fence Sure Start and cut taxes on fuel at the same time, where would the money come from to support the other important services that she was generous enough to list earlier?

[Mrs Hodgson]

As I am sure the Secretary of State is aware, I am not shadow Chancellor; my right hon. Friend the Member for Morley and Outwood (Ed Balls) is. I will not be tempted to go outside my remit—[Interruption.] All I have said is that I would ring-fence the Sure Start element within the early intervention budget, as the leader of the Opposition said today. We have heard the Secretary of State say so many times that he has given councils enough money to maintain their current network of children’s centres—that comes from a direct quote—so if they have enough money within the early intervention grant, why should we be afraid to ring-fence the Sure Start element in it? It is not a spending commitment.

[Michael Gove]

The hon. Lady was kind enough to mention earlier that by her own calculation ring-fencing Sure Start within the current early intervention grant envelope would mean that other services would have to go. How will she protect those other services? Will she raise taxes, cut spending elsewhere or, as she said earlier, simply cross her fingers and hope for the best?

[Mrs Hodgson]

It is Ministers who are crossing their fingers and hoping for the best, not me. By making that comment, the Secretary of State has admitted that the early intervention grant is not big enough for the sum of its parts and that all 22 funding streams that feed into it cannot all be met. He has made that admission on the Floor of the House, and I am sure that Opposition colleagues are grateful for it.

[Bill Esterson]

Surely the point is more about what the Government should be advising local councils to do. Will the Government now come clean and give guidance to local councils on which services they should protect in the early intervention grant and the other restricted Government grants that go to local government, or will they continue to say that it is nothing to do with them and down to local councils?

[Mrs Hodgson]

That is a key point, and I am sure that the Minister will refer to it in her closing remarks.

The Minister has said on several occasions that she wants children’s centres to be paid by results. That does not necessarily seem a bad thing, until it is considered that, nine times out of 10, improving results will need up-front funds, or at least guaranteed budgets. I completely accept that we need to ensure the best value for taxpayers’ money and that outcomes are what matter, but if payment by results means holding significant chunks of money back from budgets, centres will have to concentrate more on managing their funding, which detracts from the quality of service they can provide with reduced funds.

I hope that the Minister will be able to tell us something about payment by results. In the letter to the hon. Member for Mid Dorset and North Poole (Annette Brooke), which I referred to earlier, the Minister said that she would do so in early 2011. Now, when I look at a calendar, I see that it is definitely early 2011. It is actually March 2011, so I look forward to hearing about payment by results.

The Minister will no doubt tell us that that funding is targeted at those who need it most, but Library research shows the opposite. The brunt of the cuts to the early intervention grants seem to be borne by local authorities with the greatest number of children living in poverty, as my hon. Friend the Member for Liverpool, Walton (Steve Rotheram) just said with regard to Liverpool city council. Local authorities such as Knowsley, Sefton, Wirral and Sunderland, which covers my constituency, are all in the top 10 for cumulative cuts, while authorities such as Cambridgeshire, Richmond upon Thames and Hampshire—all sounding leafy and suburban—are among those that come off best. Can the Minister explain the difference between her words and actions?

There is so much more that I would like to say, but I want to hear from the Minister. To echo the former chief executive of the Daycare Trust, in speaking to the Select Committee, Sure Start

“has been not just a step in the right direction but thousands of steps”.

Every closure, every child whose provision deteriorates, every parent who misses out on the help to improve their parenting, and every early years professional forced to abandon the sector because the jobs have disappeared represents another step backwards from the creation of a society in which every child has the best possible start in life.

I should like to believe that the Minister and her colleagues think the same, but in so many other areas the warm words that we heard before the election, from the Prime Minister, the Deputy Prime Minister and others, and since have not matched the actions of this Tory-led Government. Promises to protect Sure Start have been broken—plain and simple broken promises. Cash-starved councils are being forced to make unpalatable decisions that look set to deprive many thousands of families of the services that they value highly and, in many cases, rely upon, because of a decision that the Minister and her colleagues have made.

[The Lord Commissioner of Her Majesty's Treasury (James Duddridge)]

Two minutes over.

[Mrs Hodgson]

I did give way a number of times to Government Front Benchers.

Not only that, but many areas with the greatest need are seeing the biggest cuts. The rhetoric does not match the reality, so the Minister needs to make a decision: she should either be honest about her failure to protect children’s centres or take action to make good her words.

[The Minister of State, Department for Education (Sarah Teather)]

I thank my hon. Friend the Member for Beverley and Holderness (Mr Stuart), the whole Select Committee and, indeed, the previous Chair of the Select Committee, the hon. Member for Huddersfield (Mr Sheerman), for the important report that we are debating today, and for giving the House the opportunity to discuss the future of Sure Start children’s centres.

The report has been timely and helpful as the Government develop their approach to early years. The debate has on the whole been very good and constructive, with focused speeches about the future direction of policy, but the report demonstrates the extent of the all-party support for children’s centres as vital hubs of excellence in delivering integrated services to families, particularly those who most need support and advice. I have listened with interest to Members, and I shall try to address as many issues and concerns as I possibly can, as well as picking up on the key areas of our response to the Select Committee report. I am mindful, however, that I now have very little time left in which to speak.

The start of the debate was particularly important, because the right hon. Member for Birkenhead (Mr Field) reminded us why we are debating the matter. Early years are the foundation for life. High-quality early intervention has the potential to turn around life chances, and poor experiences in early years, such as those to which the hon. Member for South Northamptonshire (Andrea Leadsom) referred, can actually change the physical nature of the brain. The failure to develop relationships of attachment can affect a child for ever, not just in the first few years of life. That is precisely why the Government have prioritised spending in this area, as the hon. Member for West Suffolk (Matthew Hancock) discussed.

I was struck by the comments of the hon. Member for Washington and Sunderland West (Mrs Hodgson) about the importance of Sure Start in providing other support for families, not just for children. Let me be clear about this from the start. The coalition Government see Sure Start as vital to their work on social mobility: it is a key priority. Sure Start has proved itself to be a programme that has the capacity to be life-changing, and we want to build on its success. The Chair of the Select Committee said that he hoped we were not going to rip everything up. That is exactly what we are not doing. We are building on the good aspects of Sure Start, but, as the right hon. Member for Birkenhead said, trying to develop it to ensure that we focus, particularly with more evidence-based programmes, on the families and children who need our support most. We believe that the best way to do this is through greater local decision making and accountability, more involvement of organisations that have proven expertise in service delivery, and, specifically, more use of evidence-based programmes.

Our response to the Committee’s report clearly states that, in our view, the main purpose of children’s centres is to ensure that families get help when they need it and to tackle issues early to prevent costly problems from emerging later. We want children’s centres to provide the foundation for stronger early joined-up working offering universal services for all families and targeted services focused on the neediest of those families.

Several hon. Members spoke about the need for evaluations, so let me pick up on a few of those points. The Government have commissioned an evaluation of Sure Start children’s centres in England that runs until 2016 alongside the national evaluation of Sure Start, which is evaluating a wide range of children’s centres. A report on the cost-effectiveness of the earlier Sure Start local programmes will be published later this year. I hope that that will be very useful information, for which the Chair of the Select Committee, in particular, asked.

The introduction of payment by results will incentivise better local evaluation of the impact of centres on children’s outcomes. In response to the hon. Member for Liverpool, Walton (Steve Rotheram) and the Opposition spokesperson, I point out that when we begin trialling payment by results, some additional money will be going in to help us to do that. We will then learn from those trials to find the most effective way to roll out payment by results in future to ensure that we can incentivise children’s outcomes.

[Mrs Hodgson]

Will the Minister give way?

Oral Answers to Questions

Sharon Hodgson Excerpts

Monday 7th February 2011 Commons Chamber

[Sarah Teather]

In some areas, local authorities are very good at making full use of the assets, which are often fantastic buildings, but in other areas they are not as good. I hope that providing the flexible fund will mean that local authorities start to think more creatively about how they can join services together and perhaps provide support for older children. By providing that kind of flexibility we enable local authorities to make the right decisions for their areas.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

Recent research by the Daycare Trust and 4Children shows that, despite promises made by the Prime Minister and his deputy, 250 children’s centres are expected to close within the year, with hundreds more at risk of closure or big cuts in the services they provide. Hundreds of thousands of parents across the country are deeply worried about this, but all we get from the Minister is glib indifference. I read this morning that the Secretary of State has announced that funding for music will be maintained, so, incidentally, the Government feel that that is worth ring-fencing whereas Sure Start is not. To paraphrase my right hon. Friend the Member for Birkenhead (Mr Field), does the Minister not think that parents deserve much more than having to listen to the Secretary of State playing his fiddle while Sure Start burns around him?

[Sarah Teather]

That was a long rant and I struggled slightly to find the question in it. The important thing to say about the survey that 4Children did is that it is about people’s concerns and not about decisions that have been taken—decisions have not yet been taken. We are saying to local authorities that we want them to focus on outcomes for children and families. We are trying to encourage them to do that by holding back some money for payment by results and we are developing that scheme with the sector at the moment. Good local authorities that make sensible restructuring decisions will be able to benefit from that, but if they make decisions that jeopardise outcomes for children, they will not be able to benefit from it.

Financial Support (Students)

Sharon Hodgson Excerpts

Wednesday 15th December 2010 Westminster Hall

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

I congratulate my hon. Friend the Member for Erith and Thamesmead (Teresa Pearce) on securing this important and timely debate. I also congratulate my hon. Friend the Member for Wigan (Lisa Nandy), who has had to leave. I know she has been trying for some time to secure the debate, together with our hon. Friend.

Both hon. Friends are proven great champions of young people from low-income backgrounds. I look forward to the Minister’s response to the strong arguments that we have heard today. My hon. Friend the Member for Wigan is also a prolific tabler of parliamentary questions, and I commend her for her persistence on this issue; I only wish that Ministers would get into the spirit of open democracy and answer some of the questions more promptly.

This has been a good-natured and high-quality debate, considering the passion that the subject evokes, especially in our party. The debate is not yet over, so perhaps I should not speak too soon. However, I will try to stay within that spirit. We have had some strong speeches, although probably not as many as we would have liked, as a number of hon. Members have not been able to speak. I hope the Minister will take that on board and perhaps ask whether this matter should be debated on the Floor of the House in Government time.

Those who have spoken include: the hon. Members for York Outer (Julian Sturdy), for Stourbridge (Margot James) and for North Cornwall (Dan Rogerson); my hon. Friends the Members for Kingston upon Hull East (Karl Turner) and for Hyndburn (Graham Jones); and the hon. Member for Totnes (Dr Wollaston), who was very brief, as was my right hon. Friend the Member for Wythenshawe and Sale East (Paul Goggins). There were some excellent contributions and I am sorry that I do not have time to go through them all in detail.

We have had a lot of debate on EMA this week, including the “Save EMA” national campaign day in Westminster and around the country, when 60,000 young people sent a clear message to the Government that this policy is unfair. Yesterday, we had an extremely embarrassing report from the Institute for Fiscal Studies—referred to by some hon. Friends—which laid bare the ridiculously weak evidence base the Government use to support their position.

[Nic Dakin (Scunthorpe) (Lab)]

In mentioning the IFS, my hon. Friend draws attention to the fact that the Government spent a lot of time insisting on the NFER study, which focuses only on participation. EMA, does she not agree, has four main purposes—participation, attendance, attainment and supporting the well-being of people from disadvantaged backgrounds in education? Those things have not been evaluated properly, though the IFS study reported yesterday started to do so.

[Mrs Hodgson]

My hon. Friend makes a valuable point, one which I hope the Minister and Government will consider before coming forward with an announcement in this regard.

This morning we had a very good seminar in the Boothroyd room, at which young people, teachers and administrators from across the country—including Becky, Codie, John and Jordan from Hylton skills campus in my constituency—talked to politicians about what scrapping EMA will mean to them. It was a shame that the Minister could not be there. With respect to all hon. Members who have contributed to this debate, it would have been much more valuable for the Minister to have heard first-hand what young people and those who work with them say to those of us willing to listen, about how much impact this choice will have on the lives of people from the poorest backgrounds.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

I wanted to put that question to the Minister, had I had the opportunity to speak. How many colleges have the Government spoken to about this policy? I spoke recently to staff from Newcastle college, which carried out a survey of all its EMA recipients, 85% of whom use it for transport costs. I was alarmed to hear it stated in this debate that EMA is regularly and widely abused. That is not the experience of colleges that I have spoken to.

[Mrs Hodgson]

That was definitely not the experience that Members heard from students this morning. We heard some powerful and at times very moving contributions. Many students told us how EMA is barely enough at the moment to cover their travel costs and their lunch. A young man called Luke told us of his peers who could not eat before or at college because their money did not go far enough. How many more will be in that position when EMA is removed? We know that eating well leads to better attainment. Even though the Minister and his colleagues scrapped the extension to free school meals, he must acknowledge the scientific evidence.

We heard from the principal of Lambeth college that EMA had led to a rise in participation and achievement and a fall in drop-outs. We heard from Cath and Alex, who had brought the young people all the way down from my constituency in Sunderland, that EMA helps young people with financial planning, which reduces the likelihood of their getting into debt in later life. We heard from a student who had dropped out of school in year 8, but was now studying towards GCSE-level qualifications because of EMA. We heard from a young single mother, who could only attend college and take her child to the crèche because of EMA. We also heard from all the staff that EMA was helping young people.

The most poignant moment was a comment from John, who with his peers had got up at 4 am to come down from Sunderland for the meeting. He sat there until the end, then said:

“Sharon said on Friday that I should follow my dreams. EMA gives me the chance to follow my dreams, and if you take it away, I don’t know what I’ll do.”

[Lilian Greenwood (Nottingham South) (Lab)]

I will be brief. I wanted to share an example from my constituency. Kyle Simpson is a young Olympic hopeful training alongside Rebecca Adlington. He says EMA makes such a difference. His mum contributes to his training fees, and EMA enables him to go to college and have a little bit of money for transport, food and something of a social life, when he is not training and competing in swimming competitions.

[Mrs Hodgson]

That is another very good example. Many of the young people I met today were in their first year of study, and had undertaken to stay on in the sixth form or college on the understanding that that support would remain for the full two years. Why would they think otherwise?

After all, the man who painted himself as a modern, trustworthy leader of the Conservative party went around telling people that EMA was safe. In March, the current Education Secretary told the Guardian—in the nicest possible terms, as is his way—that his predecessor was a liar for suggesting that a Conservative Government would scrap EMA. In June, the very Minister sent here today to defend this policy put his commitment to the future of EMA on the parliamentary record.

Imagine the surprise of these young people at finding out that a promise from any of these men is not worth the paper it is written on. If the Minister and his colleagues in the Conservative party were as committed as they say they are to the principle of helping working-class kids access further education, why have they now turned their backs on them?

In the last debate on this subject, I heard the Government and the Minister, as well as some Government Back Benchers here, repeatedly trot out the line that 90% of EMA recipients are what they call “dead-weight”. We might hear it again in the Minister’s response—I hope not—despite the fact that we have heard plenty of contradictory evidence over the last hour. They should not be referred to in that manner.

I have a lot of respect for the Minister but, frankly, I find it disgusting to hear him and his colleagues talk about ambitious but poor young people as dead-weight. Never mind the fact that without EMA they might have to work every evening and weekend just to afford bus fares, food and books, because they want to better themselves. Because they want to better themselves, he believes that they are undeserving of support.

I do not know about the Minister, but I have actually bothered to go to my local colleges, as have hon. Friends to theirs, and speak to young people who receive EMA. The Minister says that nine out 10 of them would fall into the category of dead-weight, but I can inform him that the young people whom I visited are very much alive and working hard to better themselves, and they are angry with him. Some of them are around today, and they might try to catch his ear as he leaves. Perhaps he should prepare a response.

The Minister will undoubtedly be aware that the Hylton skills campus is part of the City of Sunderland college. Its excellent principal, Angela O’Donoghue, e-mailed me yesterday to tell me that the cuts would have a massive impact on her college. Some 70% of her students receive EMA, and 90% of those receive the full £30. How many of those young people would the Minister say are undeserving of help?

I shall bring my remarks to a close because we want to hear what the Minister has to say. I have done loads of sums—I know that people like to hear about my calculations—but I may have to save them for another day. However, I might write to the Minister and pass the benefit of those sums to him.

Richard Thorold, the principal of Gateshead college, which my son attends, wrote to me. He said:

“Whilst I accept that these are difficult times financially, I believe that financial support for young people continuing their education and training is a valuable investment towards creating a sustainable future for us all.”

The key question for the Minister is why do the Government not think so?

--- Later in debate ---

[Mr Gibb]

I shall come to that point in a moment.

The fact is that 90% of recipients of EMA would have stayed on in education regardless. Given that evidence, the fact that we have a major budget deficit crisis and the fact that the programme costs so much each year, it was clearly going to be a candidate for major reform.

[Mrs Hodgson]

Will the Minister give way?

[Mr Gibb]

I am sorry, but I cannot give way as I have only four minutes left.

In reaching the decision to end EMA, we were of course concerned that the 10% of recipients whom the evidence said would have been put off from staying in education but for the money might then drop out of education. We believe that a payment designed as an incentive to participate—a point hinted at by my hon. Friend—is no longer the way to ensure that those facing real financial barriers to participation get the support that they need. That point was made well by my hon. Friends the Members for Brighton, Kemptown (Simon Kirby) and for York Outer (Julian Sturdy).

We therefore decided to use a proportion of that £560 million to increase the value of the discretionary learner support fund. Final decisions about the quantum of that extra funding still have to be taken, but we have already spoken of increasing the value of that fund by up to three times its current value, which stands at £25.4 million. A fund of that size would enable 100,000 young people to receive £760 each year. Those 100,000 students represent about 15% of those young people who receive EMA, which is more than the 10% about whom we are particularly concerned who might not stay on in education. The figure of £760 is more than the average annual EMA paid in 2009-10 of £730, and only slightly less than the £813 paid to 16-year-olds who received the full £30 a week, or the £796 paid to 17-year-olds receiving the full £30 per week.

We are erring on the side of doing all that we can to assist the poorest, as sought by my hon. Friend the Member for Stourbridge (Margot James). However, the Government will not set expectations on how much young people should receive from the enhanced discretionary fund. It will be up to schools and colleges to determine which young people should receive support under the new arrangements, and what form that support should take. In answer to a question, I can tell the House that colleges can use 5% of the fund for administration.

To help schools and colleges administer the fund, and to ensure that those young people who really need support to enable them to continue their education or training have access to the new fund, we are working with schools and colleges, and other key organisations such as the Association of Colleges, Centrepoint and the Sutton Trust, to develop a model approach that schools and colleges can choose to adopt or adapt.

In the remaining minute, I shall try to answer some of the questions raised during the debate. Many hon. Members asked about transport. Under current arrangements, discretionary support funding cannot be routinely used for transport to and from college. It is local authorities that have the statutory responsibility for making the necessary transport arrangements. However, we will consider that restriction as we develop the arrangements for enhanced discretionary learner support funding. The House can be assured on that point.

I have dealt with the question about administration. The hon. Member for Erith and Thamesmead asked about the sum of £174 million. That is the estimate of what will be spent on EMA in the 2011-12 financial year, the payments being made during the 2010-11 academic year. However, it will not be available in the next academic year.

Oral Answers to Questions

Sharon Hodgson Excerpts

Monday 15th November 2010 Commons Chamber

[Sarah Teather]

I thank the hon. Lady for raising this very important issue at this very important time. The Government take it very seriously, and we will speak much more about it, including about homophobic bullying, in the forthcoming White Paper.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

It was good to hear the Minister reciting the successes of the previous Labour Government in providing free nursery places and a network of more than 3,500 Sure Start centres. The fact that Lib Dem Ministers feel the need to resort to claiming credit for our ideas shows how few they are getting from their partners in government.

Despite what the Government spin merchants would have the public believe, Sure Start was far from protected in the spending review. By freezing the grant, removing the ring fence, cutting children’s services budgets and removing around £40,000 of the budget from every children’s centre to pay for health visitors, the Government have put the Sure Start network under severe pressure. I therefore have a simple question for the Minister: can she guarantee that no Sure Start children’s centre will close as a result of choices made by this Government?

[Sarah Teather]

We will be announcing more details about the funding for Sure Start children’s centres shortly, in line with the settlement for local government. Yes, we have removed the ring fence, but we are trying to encourage local authorities to look rationally at what they want to do locally to ensure that they prioritise early intervention. We have rolled this into an early intervention grant, because they tell us how strongly they want to prioritise early intervention. However, every area will be different. Unlike the previous Government, we want to give local authorities the freedom to make decisions on the ground on what matters for them.

Higher Education

Sharon Hodgson Excerpts

Wednesday 3rd November 2010 Westminster Hall

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

Thank you, Mr Betts. I am grateful for this opportunity to speak under your chairmanship on this important topic, and I congratulate my right hon. Friend the Member for Tottenham (Mr Lammy) on securing this important debate. If there were ever any doubt that he cared passionately about the future of higher education, and the future of children from estates such as his, mine and those of other hon. Friends here today, his speech will have proved his passion and commitment—long may it continue.

I wish to discuss what the Government’s plans will mean for many of my constituents. In a Liberal Democrat press release during the election campaign, Nick Clegg said:

“If fees rise to £7,000 a year”—

[Mr Clive Betts (in the Chair)]

Order. The reference should be to the Deputy Prime Minister.

[Mrs Hodgson]

I apologise, Mr Betts. The Deputy Prime Minister stated:

“If fees rise to £7,000 a year, as many rumours suggest they would, within five years some students will be leaving university up to £44,000 in debt. That would be a disaster.”

I have to say this, Mr Betts: this is one of the few occasions on which I agree with Nick.

Even if most universities charge the minimum of £6,000, it will still be a disaster, and if most of the more prestigious ones charge £9,000, it will be an even bigger disaster. If I were a 16 or 17-year-old working-class girl from Gateshead—not too much of a stretch of the imagination, as I once was—looking at my options for the future, a potential debt of £44,000 would make me think seriously about whether I should go to university, especially if I were the first in my family to do so. It was not a journey that I was ever able to make personally because of cost constraints, and having to go out to work to help support my mam, who was on benefits, and two younger brothers.

If I were desperate to go to university, I would probably have to go to one of my local universities to avoid the extra living expenses, rather than the best university that would accept me based on my ability and grades. That seems to be what the Secretary of State for Business, Innovation and Skills intends people from my constituency to do. I would also most likely have to take a significant amount of paid part-time work, reducing the amount of time that I could dedicate to my studies, and consequently my attainment.

Even then, when I had struggled through three years and racked up a debt of £15,000 to £20,000 for the privilege—assuming that I had received some of the grants that the Minister of State outlined—my debt would continue to grow at a rate far above that at which my earnings would be likely to grow. An interest rate of 2.2% plus RPI, which would currently be 6.8%, does not compare favourably with a typical increase in median income of 3% to 4%. By that logic, somebody finishing university this year with £20,000 of debt would see that debt grow by more than £1,300 in a year and would need to find a job paying more than £30,000 just to keep up with paying that off. Today, though, we have heard that someone earning £30,000 could be liable to pay even more interest. That will mean millions of young people never paying off their loans and quite a number of those loans—not just the odd one—probably being written off after the end of the 30-year period. The thought of being 16 or 17 and realising that I would still be paying for my education in my 50s would definitely put me off higher education.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Unfortunately, I am one of those Members of Parliament who are still paying back their student loans, even though I left higher education more than a decade ago. Does my hon. Friend share my concern that no one in government seems to consider the aggregate effect of people having these levels of debt for so long, when house prices are rising, mortgages are hard to obtain and contributions to the pension system will have to be higher? No one seems to look at the fact that the sheer amount that people pay out on their loans every month diminishes their capacity to spend their money on other things, which is detrimental to family life and their prospects.

[Mrs Hodgson]

I certainly agree. We should also remember that some of the young people being burdened with huge debts will be from families that have no other mechanism to support them in making further life choices, such as getting into the housing market, or in paying unexpected bills. Having large elements of their earned income tied up for the next 30 years will be more of an ask for those young people than it will be for young people from a more middle-class background, but that has not been taken into account. For people from some of the backgrounds that we are talking about who might want to strike out and go to university, such factors will have a big detrimental impact on the decision that they take.

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

Following on from the intervention from my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), will my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) join me in asking the Minister to comment on the impact of today’s announcement on undergraduates who want to go on to postgraduate education? We heard nothing about that impact in today’s statement, and it would surely be useful to hear whether those from lower-income backgrounds who have heavy loans to pay back will be deterred from going on to postgraduate study.

[Mrs Hodgson]

That is an important part of the debate, but it has not been discussed yet, and I certainly hope that the Minister will refer to it in his closing remarks. Even during my time as an MP, I have seen a change among the people who have applied to work for me as a researcher, with those who apply now having chosen not to do postgraduate qualifications for the reason that my hon. Friend sets out. Degree-level qualifications will therefore probably be the maximum attainment for some children from working-class backgrounds.

I want now to touch on the education maintenance allowance. At the same time as the current changes are being made, the Government are planning to overhaul the EMA system, which has been instrumental in ensuring that talented young people from less well-off backgrounds get the necessary qualifications to apply to university in the first place. There was a debate on this subject in Westminster Hall yesterday, which was secured by my hon. Friend the Member for Glasgow North West (John Robertson). He is a great advocate of the EMA, and I see from Hansard that he put the case for its retention impeccably, so I will not repeat it.

My hon. Friend has plenty of evidence to back up his case. The evaluation of the roll-out of EMA showed that it reduced the level of those not in education, employment or training and encouraged those receiving it to work harder. Indeed, Institute for Fiscal Studies research showed that attainment among recipients has increased by 5% since the introduction of the EMA. If the Government remove something that encourages less well-off children to stay in further education and to aim higher, and they couple that with huge disincentives to apply for higher education, applications from that group will almost certainly drop significantly, particularly to the better universities.

[Paul Farrelly]

In his intervention, the Minister talked about the importance of encouraging further applications. When I was growing up, I was one of those people whose family encouraged them to go out to work at 16. The EMA, which I argued for in my maiden speech in 2001, has been really important in changing that, but the Government gave us no indication of the implications of scrapping it when they announced the changed regime today.

[Mrs Hodgson]

My hon. Friend makes a good point. I always tell people that the EMA would have been the one extra thing that would have given me the confidence to resist the push to go out to work, because I would have had just that little bit of money that was mine.

I note from Hansard that the Minister who answered yesterday’s debate tried to shift the blame for the decision to remove the EMA on to the previous Labour Government, much as I expect the Minister, unfortunately, to do today. The fact is that there are alternatives to those choices that have been made—ones that would have put more of the burden on the people who caused the situation that we are in, rather than on a generation that has had nothing to do with it.

The Minister for Universities and Science is not representing the Government here today, but he is apparently the author of an interesting book called “The Pinch”. I regret to say that I have not had time to read it yet, although perhaps a friend will be watching the debate and get me a copy for Christmas—if they do, I will be sure to pop along to the office of the Universities Minister to request an autograph. In his book, he argues that his generation—it is not quite my generation, because I am not that old—has benefitted from all the things that it is now unwilling to fund for the current generation and the next generation, including subsidised higher education. Does he not think that the Government’s reforms enforce that attitude, which he clearly sees—or saw—as hugely detrimental to young people?

I have a copy of today’s statement by the Universities Minister; he spoke of introducing a progressive system. The only progress that I can see between when he wrote his book and his speech today is a kind of backwards progress, which is, I believe, an oxymoron—a bit like his claim that the Government’s changes are progressive.

Speech Therapy Services (Children)

Sharon Hodgson Excerpts

Wednesday 3rd November 2010 Westminster Hall

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

I am delighted to serve under your chairmanship, Mr Streeter, and to make my first contribution to a Westminster Hall debate as a shadow Minister.

I congratulate the hon. Member for Blackpool North and Cleveleys (Paul Maynard) on securing this important debate. I compliment him on his well-informed and impassioned speech. Mrs Williams, his speech therapist, taught him not to rush, but to slow down, and a lot of us—especially me—could benefit from following that advice when making our speeches, even given the time constraints. I am delighted that so many Members are in the Chamber to contribute to this important discussion. They have raised many questions, which I hope that the Minister will answer today.

Many Members will know that I have a personal interest in this topic. I did not have speech therapy myself, but my son required it from the age of two and a half. I have put on record the problems we encountered when we moved around the country, and my hon. Friend the Member for Gedling (Vernon Coaker) mentioned a lot of similar issues when he talked about the case of Dylan. My son’s speech therapy stopped when he was seven, because we had moved from Gateshead to London, and we were told that speech therapy was not given to children over the age of five. Incidentally, when we moved back to Gateshead, local professionals said, “We know he’s 14, but he could really still benefit from speech therapy.” Members can imagine how I reacted to that, when he had missed out on seven years of possible speech therapy because of where I lived.

A lot of Members have spoken, and I want to give some quick tributes. My hon. Friend the Member for North West Durham (Pat Glass) gave a very intelligent and thoughtful speech, showing her immense knowledge from a long and successful professional career in the education and SEN sector. She is a true asset to the House, especially on this issue, and the Minister would be wise to pay particular attention to her contributions.

The hon. Member for Mid Dorset and North Poole (Annette Brooke) always speaks with good wisdom and great analysis on SEN matters, and that was evident once again today. My right hon. Friend the Member for Coatbridge, Chryston and Bellshill (Mr Clarke) is a long-standing campaigner on this issue, and I wish that he could have spoken for longer. The hon. Member for Gillingham and Rainham (Rehman Chishti) gave a short, concise, but important contribution.

My hon. Friend the Member for Gedling gave a very knowledgeable speech, as we would expect, and raised the important case of Dylan in his constituency. I hope that the fact that he has done so will lead to a change in Dylan’s situation. The hon. Member for Southend West (Mr Amess) and my right hon. Friend the Member for Oxford East (Mr Smith) also made excellent contributions.

I regret that I was unable to attend the reception in the Commons a couple of weeks ago to mark the launch of “Hello”, the national year of speech, language and communication, which ties in with this debate, but I look forward to hearing what is planned for 2011. If the Minister can give an assurance that departmental funding for that important initiative will survive the cuts that the Chancellor chose to make, it will signify a commendable commitment to the campaign.

The national year is, of course, one of the 40 recommendations of the Bercow review, an excellent and thorough piece of work, which was welcomed by everyone on both sides of the House. No one was more receptive to those recommendations than the former Secretary of State for Children, Schools and Families, my right hon. Friend the Member for Morley and Outwood (Ed Balls). Together with the Health Secretary at the time, he published an action plan and pledged £12 million to ensure that all the Bercow recommendations were put in place.

It is important to pay tribute to that commitment, as well as to the work of Mr Speaker, who will be keeping a keen eye on the debate. I am sure that commitment is shared by the Minister, and the debate gives her a good opportunity to give us an update on what progress has been made since the election on carrying on the good work that has been done.

The Government have, of course, recently consulted on an SEN and disability Green Paper, and I certainly look forward to reading the responses to it and scrutinising the conclusions that the Minister draws from them. One concern that has been raised with me is that work on the Green Paper is going on while the education and health systems are going through fundamental changes. I hope that the Minister will be able to confirm today that she meets Department of Health Ministers regularly to ensure that when children need support from NHS professionals, as is the case with the children we are discussing, the Government’s reforms will not have a negative impact on the provision of such support.

In that respect, my main concern is that the Green Paper should focus purely on improving services for young people with differing needs and not on reducing the money spent on such improvements. There is real concern in the sector that the results of the comprehensive spending review will force the Minister to do just that. If she could confirm that the funds for statemented children with speech, language and communication difficulties and other needs will be entirely on top of any pupil premium funding that they may attract, I think a lot of people’s fears will be put to rest.

When we include in the equation significant cuts to local government budgets, and the wholesale restructuring of the NHS, which employs the vast majority of the professionals such as Mrs Williams who help children with communication difficulties, we are left with inevitable pressure on funding for supporting those children—unless the Minister can tell us otherwise this morning. I look forward to her speech.

Concerns have also been raised, especially by the National Deaf Children’s Society, that budget cuts to existing Building Schools for the Future projects will mean that new facilities do not meet the standards set for acoustics. I would welcome comments from the Minister on how those effects can be mitigated.

The hon. Member for Blackpool North and Cleveleys described in his maiden speech how without speech therapy at an early age he might never have had the ability to be in the Chamber talking to us. He is a great example of early intervention reaping huge dividends. I am sure that if Mrs Williams is watching today she will be enormously proud of her work—and his.

One of the better things to be announced in connection with the CSR was that the Government are to go ahead with Labour’s plan of extending free nursery places to disadvantaged two-year-olds. Although I am slightly dubious about whether enough money has been committed to achieve that, I hope that doing so will present an opportunity for earlier identification of more children with speech, language and communication needs. Earlier intervention is important in tackling the problems that those difficulties can lead to later in the child’s school career. In some deprived areas, as we have already heard, 50% of children begin school with language delay already obvious. As they get older about two thirds of them will have behavioural problems. Because they are often not recognised as having difficulties that may be causing their behaviour, it leads to exclusion and the problems that go with that. It is no surprise, then, that well over half—probably more like two thirds—of young offenders are said to have those difficulties. With early intervention, I am confident that those depressing figures could be reduced, and I shall welcome any measures set out in the Green Paper to that effect.

I believe that the Government are committed to universal screening for two and five-year-olds, and I would be interested to hear from the Minister how that will be implemented. If we are to have early intervention, it will of course require funding for the extra cases that it brings to light. Training all teachers to spot risk factors at all stages of a child’s school life will require yet more funding. Again, I am not sure where all that funding will come from, and I think that pretty much takes my remarks full circle.

I think that hon. Members who have taken part in the debate are in unanimous agreement that action is needed to ensure that children get the right support. I am sure that the Minister shares that view. I realise that much of what constitutes future Government policy on speech and language therapy will rest on the outcome of the consultation for the Green Paper, so she may not be able to give too much away today; but I hope she can offer some reassurance to Members, as well as to the many parents, professionals and their advocates who will have a keen interest in this debate, that providing the best possible facilities and support for children and young people with speech, language and communication difficulties, as well as other special educational needs, will be a matter of principle and not of price.

Oral Answers to Questions

Sharon Hodgson Excerpts

Monday 11th October 2010 Commons Chamber

[Sarah Teather]

My hon. Friend is correct to say that many families feel that they have had to battle to get their child’s needs recognised, let alone catered for. That is very much why we will produce the Green Paper later this year. We are looking at how we can make the system less adversarial and how we can focus more, for example, on outcomes, and how to make the process more transparent. I hope that any parents of SEN children in her constituency who have strong views will respond to our call for views. They can go to the Department’s website and submit them now to help to ensure that we frame the questions in our Green Paper correctly.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

Thank you, Mr Speaker. I am delighted to address you from the Dispatch Box for the first time.

I welcome the Minister’s commitment to SEN provision. However, there is significant feeling among the SEN community that the whirlwind pace of change within the Department for Education has left little time to consider the effect that the changes will have on SEN provision, and particularly the effect that academies and free schools will have on funding from local authorities. Will she reassure the House that those ideological experiments will not take money away from council budgets for providing support to the one in five children with SEN?

[Sarah Teather]

May I begin by congratulating the hon. Lady on her promotion? It will be a great pleasure to debate these issues with her. I am aware that she has a long-standing interest in special educational needs—she was responsible for the passage of the Special Educational Needs (Information) Act 2008. I am sure she will be a knowledgeable opponent over the next few months, which I look forward to.

On the hon. Lady’s specific question—[Interruption.] I am being heckled when I am trying to pay a compliment. Labour Members cannot even let me be nice to Opposition spokesperson. Goodness gracious! They should wait till next week—[Interruption.] There’s always a last time. I should like to answer the hon. Lady’s question. On academies and free schools, she would be aware, if she had been in the Chamber for the debate on the Academies Act 2010 before the summer, that an advisory group is looking specifically at funding issues.

Free School Meals

Sharon Hodgson Excerpts

Wednesday 30th June 2010 Westminster Hall

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

I am pleased to have secured this debate on free school meals because it allows me to highlight a shameful decision by the coalition Government. Despite the current financial situation facing our country, an extremely strong case can be made for the provision of universal free school meals. The fact that the Government are choosing to limit and cut that provision instead of widening it seems to be a step in the wrong direction, not just because of the provision’s health and educational benefits to pupils, but because of its the financial benefits for the least well-off in society.

My involvement and that of my hon. Friends in the Chamber started in 2006, not long after I was elected to the House. My hon. Friend the Member for City of Durham (Roberta Blackman-Woods) and I, with around a dozen other hon. Members, went on a fact-finding visit to Sweden, primarily to find out more about the Swedish health and education systems, and particularly free schools. While in Sweden, my attention was captured not by free schools, but the country’s school meals policy. Free school meals have been available there to all children for several years. The take-up is approximately 85%, and we were amazed to see children not only tucking into a healthy, nutritious meal, but serving themselves from a buffet and working together to help to clear away plates and wipe the tables. Those children were seven.

Pupils and teachers eat together as a class on a rota system so that there are no huge crowds at lunch time, which is an important part of the day for continued learning and socialising, not only with one other, but with the teacher. The system provides an opportunity for teachers to have time to themselves—they spend 40 minutes in the staff room when the children go out to play—and the children do not load up on sugary snacks and then sit down to afternoon study while metaphorically swinging from the lampshades. It was interesting that although my hon. Friend and I returned from Sweden excited and convinced of the benefits of universal free school meals, the new Secretary of State for Education returned from his visit to Sweden considerably more excited about free schools.

Since 2005, there has been a sea change in our attitude to the healthiness of school meals, thanks partly to the high-profile campaign by Jamie Oliver. The changes since then have been crucial. The food provided to children who choose school meals is, more often than not, fresh, nutritious and locally sourced. That is a far cry from the profit-driven mentality that previously dominated school meal provision and led to children eating such monstrosities as turkey twizzlers. That was only the first part of the necessary change, and when we had made school food healthy, it was our duty to ensure that as many children as possible ate it.

[Lyn Brown (West Ham) (Lab)]

Does my hon. Friend agree that eligibility is a key issue? Newham is fourth highest on deprivation indices for child poverty. Around 46.9% of our children live below the poverty line, but only 29% are entitled to free school meals.

[Mrs Hodgson]

Exactly. I shall come to that, and it is why I call for universal free school meals.

Last week, an Ofsted report found that although the quality of school meals had increased, the take-up of free school meals by those entitled to them remained low because of stigma, complexity and some families’ constant movement in and out of entitlement. I received free school meals from the day I started school until the day I left, so I can speak about the stigma from personal experience. Even today, a significant stigma is attached to receiving free school meals, and expanding access to all is the fairest way of eradicating that stigma.

One in five children who are eligible for free school meals do not receive them. In addition, a swathe of forgotten children is not entitled to them, although they definitely live in poverty. A healthy packed lunch might be too expensive for their parent or parents, who might be in a low paid, full-time job and rushing about doing their best to look after their children. Universal free school meals are undoubtedly the best way to address all those problems, but they would do more than that; they would ensure that all children had a healthy meal during the school day. Some parents may be able to shop at Waitrose or Marks and Spencer, but it does not follow that their child’s lunch box is healthy. A ready meal from Marks and Spencer may cost more than a ready meal from Asda or Tesco, but it is still a ready meal, and we should not assume that all children go home to healthy food just because they have an upmarket postcode.

That is why my colleagues and I have campaigned so strongly on the matter for the past four years. We have lobbied incessantly. We lobbied the Child Poverty Action Group to take up the cause, and I am delighted to see my hon. Friend the Member for Stretford and Urmston (Kate Green) in the Chamber today and look forward to hearing her valuable contribution to the debate. Believe it or not, the issue was not always popular. There were objections even in my own party to rolling out free school meals regardless of household income. However, it remains the fairest way to ensure that all children below the poverty line, however that is measured, receive a healthy meal during the school day.

I chased Cabinet Ministers through the voting Lobby to try to convince them of our crusade to such an extent that they pre-empted me before I had even said a word by telling me that the matter was still being considered, and eventually to tell me that it was with my right hon. Friend the Member for Doncaster North (Edward Miliband), who was writing our manifesto. I need not say what happened next, as I am sure that hon. Members can imagine, but I became his shadow and was always ready to extol the virtues of universal free school meals.

The first big success for our campaign came at the Labour party conference in 2008 when my right hon. Friends the Members for Normanton, Pontefract and Castleford (Yvette Cooper) and for Kingston upon Hull West and Hessle (Alan Johnson) announced the introduction of three pilots for free school meals, all to be local authority match funded. Two pilots were for universal free school meals; Durham and Newham bid for them and were lucky enough to secure them. My hon. Friends the Members for City of Durham and for West Ham (Lyn Brown) played a great part in that. The further pilot involved raising the threshold to the agreed poverty line to ensure that more children in poverty qualified for free school meals, and that went to Wolverhampton.

Those pilots have been under way for nearly a year. They have been hugely successful, especially those involving universal free school meals in Newham and Durham, where take-up is 75% and more than 80% respectively. The majority of primary school pupils in those boroughs therefore receive a hot, healthy, nutritious meal instead of the sugary, additive-laced snacks that some children are given in their packed lunches.

[Kate Green (Stretford and Urmston) (Lab)]

Has not the research also shown that extending entitlement universally leads to not only increases across the board—that is obvious—but increases among those who would have been entitled anyway, as demonstrated in the 2006 Hull experiment?

[Mrs Hodgson]

My hon. Friend is right, and I will come on to the Hull experiment.

The quality of packed lunches is usually dependent on cost, but do not take my word for that, Mr Weir. Research by Professor Derek Colquhoun of the university of Hull showed that it is not always possible for families to access, let alone afford, fresh food for their children. The alternative of paying for school meals may cost almost £20 a week for a family with two children—money which those still living below the poverty line do not have.

I look forward to hearing more about the success of the Durham and Newham pilots from my hon. Friends the Members for City of Durham and for West Ham. Unfortunately, due to the recession, universal free school meals did not make it into our manifesto, but our party gave a commitment in the 2009 pre-Budget report to extend the universal free school meals pilots to at least one in every region and permanently to raise the access threshold everywhere else to £16,190 to enable a further 500,000 children to have a free, hot and healthy lunch every day. That approach would also lift a further 50,000 children out of poverty, which was welcome news as far as my colleagues and I were concerned. Such a measure would also be an important first step on the way to universal entitlement, and I welcome it as still affordable, even during a recession.

[Rachel Reeves (Leeds West) (Lab)]

Does my hon. Friend agree that it is even more important to extend that entitlement during the recession? In my constituency, the average income is £16,000 a year, which means that the average family is living in poverty. However, if someone works and earns £16,000 a year, their children are not entitled to free school meals. It is harder for those families to go back to work because they lose the entitlement, which for many is equivalent to about £600 a year. If the coalition Government want to get more people back to work—although the forecast from the Office for Budget Responsibility showed that their Budget will put 100,000 more people on the dole—one important measure would be to extend the entitlement to free school meals so that parents who go back to work can claim it for their children.

[Mrs Hodgson]

My hon. Friend raises an issue that I was coming to—I fear that she makes the point better than I would have done. A lot of hon. Members in the coalition Government are not getting that point, but hopefully the contributions that my hon. Friends and I make today will put paid to that.

Confusingly, although the new Government committed themselves to meeting the child poverty targets set by the previous Government, the Secretary of State for Education announced on 9 June that the coalition Government would not be going ahead with the additional pilot schemes, or the extension of schemes to include more low-income families. That is devastating news for the families concerned. The extension would have eased the transition into work for many parents—my hon. Friend has just spoken about that—and supported the Government’s wider drive to improve educational and health outcomes among the least well-off in our society. It seems that the Education Secretary wants to follow in the footsteps of a former Conservative Education Secretary, who became well known—indeed infamous—overnight with the tag of “milk snatcher”. Today’s Education Secretary shall for ever more be known as the “meal snatcher”.

Entitlement to free school meals usually ends when a family moves off benefits and into low-paid employment. That gives rise to an extra cost of around £300 a child per year, just when families are trying to make themselves better off through work. Furthermore, 60% of children in poverty have at least one parent in work, so the majority of children who live in poverty today do not benefit from free school meals. That is a shocking statistic, but it is true.

The decision announced by the Government is spectacularly short-sighted and I urge the Minister to reconsider it as a matter of urgency, particularly considering that the coalition’s stated aim is to decrease the number of people on benefits and increase the number of people in work. That is a laudable goal, but it will never be reached with such poorly thought out policy decisions.

A measure that would have raised 50,000 children above the poverty line has been scrapped, thereby exposing the Government’s claims to promote fairness as nothing but empty rhetoric. How can increasing the number of children living in poverty in 2010 help the Government to meet their 2020 target for eradicating child poverty, especially after a Budget that, as the Institute for Fiscal Studies shows, disproportionately affects the very poorest? I was even more disturbed to see a leaked memo suggesting that money that would have been directed to the poorest families for free school meals is now being redirected to help the middle classes to parachute their children out of mainstream schools and into free schools. That is a particularly galling example of money being directed away from the disadvantaged towards the comfortably off and away from a scheme that would have lifted children out of poverty to one that will do nothing of the sort but will pander to middle-class parents who still bemoan the loss of grammar schools in leafy London boroughs.

Following this debate, and with the successful campaign that is being led by my right hon. Friend the Member for Morley and Outwood (Ed Balls), the Government will choose to reinstate the changes to free school meal provision that were announced by the previous Labour Administration. That would be welcome news, but I would like the Government to go even further and seriously consider the case for universal free school meals. It is all too easy to dismiss the argument by saying, “We haven’t got the money to do it”. Tough spending decisions should be a matter of prioritising, not slashing budgets for ideological reasons.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I congratulate the hon. Lady on securing this debate and her cogent argument for universal free school meals. Does she agree that an additional spin-off effect would be that if each child was able to access a free, nutritious and healthy meal, it would help in the battle against childhood obesity? Tackling that was a target of the previous Government, and hopefully it is shared by the present Government.

[Mrs Hodgson]

That well-made point is another that I was about to come to. I am sure that hon. Members from all parties agree that the education and health of our children is of utmost importance. That more than justifies the admittedly considerable spending commitment that such a policy would entail. It is estimated that obesity costs the NHS £3.5 billion a year and the figure is set to rise, so this is a cost worth paying to save money in the long run.

Even at a time when the deficit needs to be cut, we cannot forget the social implications of the decisions that are made by the Government—by a coalition Government no less. They are a broad church that goes from left-leaning Liberal Democrats to right-leaning Thatcherite Conservatives through all colours in between. One would think that a coalition with the right hon. Member for Twickenham (Vince Cable) at its heart would produce fiscally sound social policies and that the last thing that it would do would be to increase child poverty. Alas, I fear not. One only has to look north towards Hull to see that the Liberal Democrats have form on such matters.

In 2004, the Labour council in Hull introduced universal free school meals. It had to get a dispensation from the then Labour Government to do so as that took place prior to the passage the Education and Inspections Act 2006 which, by changing “shall” to “may” in a line of legislation, made it possible for universal free school meals to be introduced by any local authority anywhere in England.

That first pilot scheme was a huge success. Those successes were chronicled by a number of academic papers, the most notable of which is the work I mentioned earlier by Professor Derek Colquhoun from the university of Hull. If I started to go into detail about how positive that evaluation was, there would be no time for anyone else to speak in the debate. I will therefore not do so, but I strongly suggest to the Minister that he look it up—it is a very good read.

What happened next? Sadly for the children of Hull, Labour lost control of the council after three short years to the Liberal Democrats, who promptly and savagely, and without remorse, scrapped the free school meals initiative. Once again, there was a charge for access to the lovely hot and healthy school meals to which the city’s children had become accustomed. That was greeted with outrage from local parents, who had not realised that that was what the Liberal Democrats would do. Does not this all sound strangely familiar? Lo and behold, here we are again. What happens as soon as they are in government? The Liberal Democrats, aided and abetted by their Tory masters, are at it again. Time and again, they are literally taking food out of the mouths of society’s poorest children.

[Kate Green]

Will my hon. Friend give way?

[Mrs Hodgson]

I am just about to finish.

I notice that no Liberal Democrat Member is present in the Chamber to try to defend their part in this atrocity. I hope that the Liberal Democrats are proud of themselves and of the fact that such policies are what they seem to have come into politics for—they do it time and time again. I hope that their ministerial salaries and cars are worth it and that all the hard-working people up and down the country who voted Liberal Democrat are happy with the decisions that their elected representatives are taking on their behalf. In future, the mantra will not be, “Vote Lib Dem, get Tory”; it will be, “Vote Lib Dem, increase child poverty”. I look forward to hearing the Minister’s explanations.

Industry (Government Support)

Sharon Hodgson Excerpts

Wednesday 16th June 2010 Commons Chamber

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

I am thrilled to be able to welcome you to the Chair, Madam Deputy Speaker. I congratulate the hon. Member for Bracknell (Dr Lee) on his very fine maiden speech. Humour is welcome in the Chamber, especially today in such a serious and important debate, and I am pleased to be able to contribute to it.

People often talk about the north-east of England as the industrial engine room of Britain, or at least they used to. The 1980s put an end to that, unfortunately. A whole generation of workers were left without jobs by a Conservative Government who did not even see fit to try to reskill them, and told them that their “unemployment was a price worth paying”. That is fine and well when you are not the one paying it.

We were not “all in it together” when I was growing up in poverty in the north-east in the 1980s, just as again we will not be all in it together if the Prime Minister and his Lib Dem hatchet men wield their axe with impunity, as the north-east and our constituents will once again suffer the most. It took time—13 years of a Labour Government in fact—to put my own region, the north-east, back on the map as the place to be if someone wants to do business, to innovate and to manufacture—so much so that, just as the north-east led the industrial revolution of the 19th century, it is also now leading the new green revolution of the 21st century.

I want to talk about the successful industries in my constituency and the wider region that are fine examples of that. It is clear that there are three reasons why we have a success story to tell. The first is the tenacity, skills and determination of the work force. The second is the co-ordinated work that has been done by the RDA, One NorthEast, and the ongoing commitment to the region by major manufacturers such as Nissan. The third is the support of the Labour Government for the steps taken to establish the region as a green economic zone.

Members do not just have to take my word for it. The North East Chamber of Commerce said only last week when talking about the north-east and exports that

“this simply emphasises the importance of continued Government support for new and existing exporters, even in the face of large scale public sector cuts.”

Therefore, I am hoping that today the Minister will be able to assure me that my constituents are not going to lose the level of strategic support from the Government and from One NorthEast, in particular, that our economy needs to stay strong and to carve out its own niche in the economy of the 21st century.

I was delighted to hear in Prime Minister’s Question Time last week that Nissan will still receive the grant—the Secretary of State for Business, Innovation and Skills confirmed it today—which will enable it to build the new LEAF car at its Washington plant in my constituency. I was also grateful to my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) for using both her opportunities two weeks running at PMQs to raise that issue not only on behalf of me and my constituents, but on behalf of all right hon. and hon. Members in the north-east. She was able to force an answer from the Prime Minister at the earliest opportunity. This issue has major implications for all north-east Members, as we all have constituents who rely upon Nissan for their jobs, businesses and livelihoods.

The motor industry creates over £1 billion a year in value for the north-east economy and the 260 companies in the sector are estimated to employ 26,000 people across the north-east. The production of the Nissan LEAF will bring investment of £420 million to the economy and will maintain about 2,250 jobs at the plant. However, Nissan is not the only low-carbon motoring success story in my constituency. When Tony Blair visited my constituency in February 2007 and opened the Smith Electric Vehicles new production facility in Washington, he said:

“This will be a company that will really make its presence felt not just in the North East, but actually throughout the world”.

I am very pleased to say that he was not wrong. The company has worked with major car manufacturers such as Ford on concept vehicles, and has repeatedly secured business from companies such as Sainsbury’s and TNT. The company has weathered the recession, and is now making further inroads into Europe, with new product launches all the time.

There can be no doubting the importance of low-carbon vehicle engineering and its central role to the economy of Washington and Sunderland West. It is estimated to contribute over £500 million to the wider regional economy. Without Nissan, we would have struggled to attract businesses in the supply chain, many of which have set up a manufacturing base in the north-east. The company is estimated to provide around 13,000 manufacturing jobs in total in the supply chain. Although I am pleased that the Government will go ahead with the grant to Nissan, I cannot help but wonder why they ever thought about taking it away in the first place. The grant for Nissan to produce the new LEAF in Sunderland was delivered thanks not only to the company’s commitment to the region, but because One NorthEast pushed for ultra low-carbon vehicle manufacture across the region.

A cursory look at the latest edition of The Sunday Telegraph makes it clear that plans are afoot to scrap all nine regional development agencies. That has been confirmed by the Government today. That is despite us being told just a few weeks ago that where RDAs work they would remain. In yesterday’s edition of The Journal—today we have had it clarified—I read that the RDAs will be scrapped but that a new body will be formed in regions where they can be justified, such as, I would imagine, the north-east. What is the point of that—dismantling one body that is doing the job perfectly well and replacing it with another, just so that it can have a different name? Talk about bureaucracy and wasting time and resources.

Whenever I speak to local politicians, business leaders and entrepreneurs in the north-east, I am told the same thing, which is that One NorthEast is working well as it is. During my time serving on the North East Regional Committee—that is another thing that the coalition Government have decided to scrap—I heard glowing reports in our evidence sessions from a diverse range of individuals and organisations about the valuable work of One NorthEast. The only reason that I can see for it to be scrapped is an ideologically driven one; this is about a commitment to making cuts, regardless of whether or not those cuts are needed.

The case I am making is not just bluster from those of us in the north-east who believe that the region needs a strong voice, because PricewaterhouseCoopers estimates that for every pound invested by regional development agencies the return for the economy is £4.50—I reckon that the differential is even greater for One NorthEast. We know, too, that One NorthEast has played its part in the creation of more than 160,000 jobs. It is also vital to note that when jobs have been lost in the north-east, One NorthEast has led the response and taken the initiative to get people back into work as soon as possible. Therefore, the Government are not only taking away a proven job-creation scheme at a time of public sector cuts, but scrapping one of the most effective means of support that newly redundant workers have.

There is no reason why we cannot continue to improve the long-term prospects of the region’s manufacturing base, but it seems clear that removing the strategic level of planning and support that One NorthEast provides would be counter-productive. I wanted to say a lot more today, but our time has been curtailed so I shall merely say that I look forward to hearing the Minister’s response.