Credit Unions (Modernisation)

Tessa Munt Excerpts

Tuesday 10th July 2012 Commons Chamber

[Mrs Moon]

I thank the hon. Gentleman for his intervention. Of course scale has benefits, and I recognise that, but we must not kill off small credit unions that are going to grow—and perhaps the publicity campaign will help them to grow. We must not say, “Credit unions cannot expand; we are only going to service the large ones and stick with them,” otherwise unions in countries such as Wales, where they are growing, will find themselves isolated and unable to meet the growing needs of those who want the low-cost credit that they offer.

[Tessa Munt (Wells) (LD)]

The critical thing, which the hon. Lady mentioned a moment ago, is that credit unions should not take up just those who really need the help that they offer. It is important that people with funding are able to invest in credit unions, so that there is a much wider investment base for those who can afford to place their money there, and so that unions do not just soak up the difficult situations of people in difficult circumstances.

[Mrs Moon]

The hon. Lady is right. I gave the example of 3,000 members in Bridgend Lifesavers, with a balance of £1 million and loans of £500,000. Such membership and a balance of £1 million shows commitment and what can be achieved by even small credit unions, and that is why it is important that we continue to support them and allow them to expand.

I should like the Minister to provide more details of how his Department, perhaps working with colleagues in the Treasury and in the Department for Business, Innovation and Skills, intends to address the issue of awareness. Will he commit to working with credit unions to develop a national marketing campaign?

Another way to help credit unions is by linking them to the post office network, which would help them to raise awareness and to achieve a boost in revenue. Consumer Focus, in its report “Credit where credit’s due—The provision of credit union services through post offices”, highlighted the potential value of that link-up and how it could be achieved. People trust and value the Post Office brand, and there are 12,000 post office branches—more than bank and building society branches combined—which would offer a nationwide, visible platform for credit unions and greatly increase the availability and diversity of services.

Looking at what needs to be done, the report suggests that credit unions would need to develop shared back-office functions with Post Office Ltd and shared banking platforms. Credit unions might also be required to pay a fee to Post Office Ltd. That idea has widespread support, but it is a big step for all concerned, so will the Minister elaborate on what role his and other Departments will play in facilitating it, and on the stage that has already been reached in making it a reality?

The feasibility study suggested that long-term financial sustainability could be achieved if the interest rate ceiling of 2% that credit unions can charge on loans is lifted to 3% on reducing balances. The modelling included in the study suggests that the 3% loan rate would need to apply only to loans below £1,000. The 3% rate would make credit unions more sustainable, but at the same time they would not lose one of their biggest attractions—affordability. That is important, because this is often about the small purchases of essential items such as cookers and freezers that families need. That is borne out by what Brian Rees of Bridgend Lifesavers said to me:

“A regulation for 3% maximum interest would be very helpful. As you appreciate, lending very small amounts of money is very expensive and we presently don’t cover costs below £500. 3% is nowhere near ‘a door step rate’ but it would help us to sustainability.”

I understand that the Government are planning to consult on this measure, and I hope that the Minister will listen to those concerned about the pros and cons of adopting it. Should it be decided that it offers a short-term solution, I hope that legislation can be brought forward as soon as possible. Credit unions can achieve what we want them to achieve, and they themselves want to achieve, only if they are given the capacity to do so.

Finally, I turn to the demand for credit unions to develop a broader skills base and, by extension, better qualifications for their staff and directors. The Association of British Credit Unions, which is a great supporter of the all-party group on credit unions, has identified that as a challenge to the sector. Some progress has been made, but while the feasibility report suggests that for credit unions to demonstrate that they are worthy of Government support they need to have appointed a director to work with their board, it does not offer much detail on the time scale or how it expects that to be achieved. I would be grateful if the Minister could furnish us with further details.

Credit unions offer a ready-made solution to many of the problems that we are facing, but in supporting and enabling them to grow and expand services we must not lose sight of what they stand for and their value to the communities they serve. I, and the many Members who support their local credit union, look forward to hearing the Minister tell us about the support that can ensure that these valuable community-based sources of financial aid are encouraged to grow, develop and prosper.

Oral Answers to Questions

Tessa Munt Excerpts

Monday 25th June 2012 Commons Chamber

[Maria Miller]

The hon. Lady will know that today we have announced a £15 million scheme to put in place the sort of support that I know she would want for separated parents, so that they can work together more effectively. I do not agree with her that our proposals will do anything other than make life better for children in separated families by ensuring that more money is flowing to them, whether that is inside the statutory system or outside it.

[Tessa Munt (Wells) (LD)]

To return to the point made by my hon. Friend the Member for Dover (Charlie Elphicke), does the Minister agree that it is essential that children automatically have access to both their parents, and that should not be the case only when it is proven to be unsafe? Up until now, the Government’s wording has been that it should happen when it is safe, but it should be only when it is unsafe that it should not.

[Maria Miller]

My hon. Friend is absolutely right. There should be a presumption of a meaningful relationship with both parents post-separation, and the proposals we are working on for child maintenance will underline that by helping parents to realise that it is their responsibility to work together to support their children, whether they are in a relationship together or whether they are living apart.

Oral Answers to Questions

Tessa Munt Excerpts

Monday 5th March 2012 Commons Chamber

[Steve Webb]

The previous Government put those restrictions in place for a good reason—to try to make sure that NEST focused on the bottom end of the market. NEST has had a positive effect and new entrants have come into the market, but we are continuing to look at that issue because we are determined to make sure that people have a choice of good-value, low-cost pension providers.

[Tessa Munt (Wells) (LD)]

T5. My constituent Gillian Reeves is actively looking for work and is expanding her skills, knowledge and experience by volunteering for local voluntary organisations and charities in Somerset. Will the Secretary of State give some clarity to those who are keen to be out of the house and busy doing something useful but are advised by their jobcentre that they must limit their volunteering to 16 hours a week or lose their jobseeker’s allowance?

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We now actively encourage people to volunteer. I prefer to see people out of the house and doing things. They have an obligation to keep up their job search while they do so, but I shall happily discuss this specific case because it certainly is not our intention that people’s volunteering opportunities should be limited.

Oral Answers to Questions

Tessa Munt Excerpts

Monday 23rd January 2012 Commons Chamber

[Mr Duncan Smith]

The reason is that we will be talking full time, all the time, to local authorities. We receive a huge amount of information from them, so we are not talking about stand-alone assessments being made; rather, the functioning of universal credit requires that, at its best, it should be done in one location. However, we will be in constant contact with local authorities about the needs in their areas, and we will be with them all the way through in the way this is applied.

[Tessa Munt (Wells) (LD)]

May I press the Secretary of State a little further on the matter of paying housing benefit directly to landlords? A number of my constituents have found that when they are overdrawn or beyond their overdraft, the bank snatches the money, leaving them still unable to pay their rent, so that they get into worse and worse difficulties. Will he reconsider?

[Mr Duncan Smith]

I recognise that, and the point is that although the vast majority of those who receive local housing allowance make their payments on time, there is always a group that does not. The way to deal with that is to recognise that we need to help landlords by not allowing those kinds of people to get away with it—for example, by paying a little bit at the two-month point, which sets the clock back to zero. We can make adjustments that way, and we can also deal with those who have difficultly by assisting them and, where necessary, making direct payments. However, those payments should always be the exception, to try to help people manage their budgets.

Pensioners and Winter Fuel Payments

Tessa Munt Excerpts

Tuesday 22nd November 2011 Commons Chamber

[Mr Dodds]

It is a combination of all these factors. The winter fuel payment does play an important role, as the Government and the Minister have acknowledged. The Government made it very clear in the coalition agreement that they would maintain the payment. The hon. Gentleman is right to say that benefit take-up is extremely important, and we should all be doing more to encourage it. Back in Northern Ireland, the Executive have also taken steps to try to encourage benefit take-up. The winter fuel payment plays an important role in tackling this issue.

[Tessa Munt (Wells) (LD)]

Does the right hon. Gentleman support the scheme that was proposed initially by Somerset Community Foundation whereby the winter fuel payment, because it is a universal allowance, could be distributed through community foundations, with the assistance of the Department for Work and Pensions, so that people who are less fortunate and less able to heat their homes could take some or all of the winter fuel payment that is given by those who are a little wealthier ?

[Mr Dodds]

There has been a debate on that very issue over the past few days. I commend those who decide that because they do not need the winter fuel payment themselves, they wish to distribute it to those more in need. I welcome the initiative that the hon. Lady mentions.

Funeral Payments

Tessa Munt Excerpts

Tuesday 26th April 2011 Commons Chamber

[Steve Webb]

I am grateful for that question. I will clarify the point about the scope. The idea is that local authorities would respond in a way that is tailored to their local circumstances. That is why some local authorities will adopt a particular local response, perhaps if their area is strongly rural. We also think it important, however, to give people the possibility of a face-to-face encounter. I will get back to the hon. Gentleman about whether the scope will be extended to include Northern Ireland. I am certainly aware that we are talking about the whole of Great Britain, but I will write to him about the applicability to Northern Ireland. The idea is that local authority folk can, to use the jargon, “wrap around” other support services at this important time. The DWP is concerned with bereavement payments and funeral payments, but obviously people may want or need a host of other services at the time of a bereavement. We want to ensure that local authorities can provide all the support that people need through a single point of contact. That can be done face to face, but we will also deal with specific DWP issues through the bereavement service.

My hon. Friend mentioned the Alice Barker Trust, and we are grateful for its input. It has worked closely with Ms Evans on the wording of the forms. We will certainly continue to consider its suggestions, although I do not want to give the impression that all the existing literature is rubbish. We carry out surveys and ask people what they think of the literature that they were given. We have, for instance, asked people—at an appropriate time—what they thought of a leaflet called “What to do after a death”, of which many Members will have heard. We found that 97% of people considered the leaflet to be very or quite helpful in answering their questions, and 95% agreed that it was easy to find the information that they wanted in it. There is good material out there, but I accept that more can always be done.

My hon. Friend asked about the way in which information was communicated to his constituent. Obviously I cannot comment in detail on what happened five years ago, but it is clear that the £300 was not paid because it was not claimed, and it was not claimed because exclusive right of burial was not part of the funeral. I hope that I have explained how we will try to ensure that people understand that they can claim the full amount, and that the unfortunate thing that happened to Ms Evans will not happen again.

Let me say something about funeral payment law. We provide general information, and, as my hon. Friend said, SB16 contains encyclopaedic guidance to the social fund as a whole, but we also provide leaflets which, inevitably, cannot be exhaustive. We have tried to strike a balance. Although a leaflet that covers every possible combination of circumstances is very useful, it may be off-putting for people who do not receive the key messages that they need. On the Directgov website we have tried to provide a wide range of information on what to do following a death, including arranging a funeral and registering a death. The site also lists organisations that offer help and advice following a bereavement. My hon. Friend mentioned the big society. We want to “signpost” people towards the many charities and voluntary organisations that provide effective support for people at this difficult time.

[Tessa Munt (Wells) (LD)]

If local authorities are to be involved, might it be suggested that the electoral register should be altered automatically? On Saturday I knocked on a door and found someone who had lost her husband three or four months earlier. She was still receiving letters addressed to her husband, because she had completely forgotten to let the district council know that he had passed away. Altering the register automatically would save a great deal of distress to people like that lady.

[Steve Webb]

My hon. Friend is right. I think that we have all encountered such examples when canvassing because the electoral register is out of date. We may have written letters to deceased people, and perhaps caused distress to relatives. The “tell us once” system would deal with that. I do not think that local authority electoral services are explicitly part of the process, but I will convey what my hon. Friend has said to our right hon. Friend the Deputy Prime Minister, who I believe oversees electoral matters.

We have come a long way. The Department’s bereavement service was fully rolled out in March 2011, and we have recently surveyed customers who have used it. They have ranked it

“above many other well known organisations that customers have to deal with when reporting a death”.

One customer said:

“I ...was surprised that a Public Service was that good and sympathetic and the staff were well trained. It really made a difference to something I was dreading. I was treated like a human being”.

Another said:

“I was impressed that it was all done in one call, it was also a huge sigh of relief for me”.

Let me give one final quote:

“We spoke about help with funeral costs and she completed the form there and then for me. I couldn’t have done this on my own.”

I am most grateful to my hon. Friend the Member for Milton Keynes South for raising this set of issues. They are clearly vital and all our constituents will face them at one point or another in their lives. Ms Evans faced a very difficult and tragic situation five years ago, which was not helped by her dealings with the Department for Work and Pensions or other Government bodies. I pay tribute to her for taking the issues forward in such a constructive way, and I hope I have reassured my hon. Friend that we have listened and responded.

Question put and agreed to.

Housing Benefit

Tessa Munt Excerpts

Tuesday 9th November 2010 Commons Chamber

[Tessa Munt (Wells) (LD)]

I shall raise three quick structural points, which I hope the Minister will consider in his response and in his proposals going forward.

I come from rural Somerset, where house prices are high. There has been a great rise in house prices over the past 10 years, but people still have low incomes. The average income is £18,500 and many of the workers are part-time workers, with many jobs which they tack together, and seasonal workers.

I have three questions. First, once the existing housing is rented out, will the Government give housing associations the flexibility to build brand-new homes and let them out at the traditional social rents, or will all the new homes have to be charged at 80% of the market rent, which is high? The problem for tenants in my constituency is that they have very little capacity to save money towards their own housing, as such a large proportion of their income goes on housing costs.

The next two points are similar to those raised by the hon. Member for Hampstead and Kilburn (Glenda Jackson). Can the Minister clarify the situation for tenants who have mental health issues? There are two gentlemen in my constituency who use private rented accommodation. Because of their age—they are in their early 30s—they may be asked to move into shared accommodation. Will they be able to access that discretionary housing allowance? Those payments would ensure that they were able to remain in their existing housing, rather than having to move out for a year, two years or three years and into shared accommodation, such as a flat. I want to ensure that they are protected in some way against the disruption of a move, particularly when that might be extremely detrimental to their mental health.

My third point is about the alarming and increasing practice in one district council area of my constituency, where homes that have a dining room are classified as having an extra bedroom. Therefore, a three-bedroom house with a dining room becomes a four-bedroom house, a four-bedroom house becomes a five, a five-bedroom becomes a six, and so on. As a result, families, who are the only ones able to obtain such housing, end up with no living space. People normally retreat to their bedroom if that is the only space that they have in the house, but such a loss of family space is extremely detrimental. That of course has a subsequent impact on the private rented market, because the example that the local authority sets becomes custom and practice throughout the housing sector in my area.