Childcare: Affordability and Availability

Stewart Hosie Excerpts
Tuesday 20th December 2022

(1 year, 5 months ago)

Westminster Hall
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Tanmanjeet Singh Dhesi Portrait Mr Dhesi
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Thank you, Mr Hosie, for your expert chairing of today’s debate. I thank all the Members who have participated for their excellent interventions. I particularly want to thank the hon. Member for Ruislip, Northwood and Pinner (David Simmonds), especially given his knowledge and expertise of the area as a former elected councillor and cabinet member for children’s services and, like me, as a parent. He highlighted the various technical issues that need to be addressed.

I thank the Minister for her promises to parents, and also the shadow Minister, my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), for the first-class work that she is doing to hold the Government to account and for highlighting the increased importance of the role that grandparents and family members play as they try to plug the gap to help parents, and in particular for helping to delineate the problems of the recruitment of nursery staff.

We have heard in today’s debate how important affordable and high quality childcare is, and about the difficulty that families face today in accessing childcare and all the consequences that follow on from that to children, parents and businesses. Fixing the problems with childcare provision should be far more of a priority for the Government than it appears to be, so I look forward to seeing what the Minister implements to support families in the coming year.

This is the last day of the school term for many, just as it is for parliamentarians here today, so I want to put on the record my thanks to all nursery nurses, daycare centre staff, breakfast club providers, teachers and everyone else in the childcare sector for the really important work that they do for our children.

Finally, as this is the last Westminster Hall debate of 2022, I want to put on record my thanks to all the staff of the House who support these important debates. I wish all the staff of the House and everyone here a very merry Christmas. I look forward to seeing everyone in the new year.

Stewart Hosie Portrait Stewart Hosie (in the Chair)
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Merry Christmas, everybody.

Question put and agreed to.

Resolved,

That this House has considered the affordability and availability of childcare.

Further Education Funding

Stewart Hosie Excerpts
Wednesday 4th November 2020

(3 years, 6 months ago)

Westminster Hall
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Gill Furniss Portrait Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
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I beg to move,

That this House has considered funding for further education.

It is a pleasure to serve under your chairpersonship, Mr Hosie.

The question before the House today is one that has been considered many times over recent years, which is testament to its importance. I am grateful to hon. Members for participating in this vital debate. Indeed, the debate might never have been so necessary because, as for all aspects of society, coronavirus has shone a light on the devastating impact of austerity and the rampant inequality in our society. That is particularly apparent in the further education sector.

Education is potentially the most powerful tool for lifting people out of poverty, with further education presenting unique opportunities to do just that. Not only does FE prepare many school leavers for higher study and provide them with the skills for meaningful employment, but it allows many adults to learn, whether that means new skills or building on existing ones. The FE sector and the many colleges and sixth forms within it have proven an accessible source of further and higher education, providing opportunities for learning to students who are disproportionately from more deprived areas and disproportionately from black, Asian and minority ethnic backgrounds. It is of note that the 16 to 19-year-old students in colleges are twice as likely to claim free school meals as those in schools or sixth forms.

Given the deep cuts that the sector has experienced in recent years, it has attracted many nicknames. I agreed with the Secretary of State for Education when, in what can only be described as a total lack of self-awareness, he came up with one more, saying that the FE sector stood for “forgotten education”. I am sure that many other Members have reminded him that he has voted for cut after cut to the FE sector since 2010 but, in case they have not, I will take this opportunity to detail briefly the impact that forgetting the sector has had.

The Government have started talking up further education and skills, but colleges and sixth forms continue to have to deal with the lingering reality of austerity, with grave concerns about the prospects of many colleges in the future. As schools and colleges began to return, the Association of Colleges estimated that colleges face a £2 billion shortfall this academic year, despite the Government investing an extra £300 million for the year. An assessment by the Institute for Fiscal Studies found that to bring spending in the FE sector to 2010-11 levels would cost a total of £1.1 billion. The citing of such vast sums from the AOC and IFS shows as plainly as possible the enormity of the challenges that face us.

I do not doubt that the Government want to see the potential of the further education sector utilised fully. Time and time again, however, it feels like the issues that have arisen because of prolonged underfunding are papered over, instead of addressed fully. A report from the National Audit Office found that although there were strong measures to prevent colleges falling into financial difficulties, they were extremely costly. Many colleges remain in financial difficulty.

I agree with the assessment of the Select Committee on Education which, in its report on a 10-year plan for school and college funding, said that the post-16 education sector had not moved on following the financial crash in the same way that other sectors had, that political decisions had created the lag in post-16 education and that that had a detrimental impact on outcomes while undermining efforts to tackle social justice. Without delving into the lack of lack of funding for managing estates, and the additional costs incurred by colleges and sixth forms, the further education sector clearly needs serious investment, not only to survive in the long term but to deliver the widespread upskilling that our country needs to see as we come, I hope, to the end of the coronavirus pandemic.

I cautiously welcome the Prime Minister’s announcement of a lifetime skills guarantee. With such significant job losses across the country, people need the opportunity to learn new skills or improve existing ones. I also welcome the devolution of funding for adult education, such as the £36 million that Sheffield city region is set to take responsibility for. Local leaders understand the needs in their area best and are most connected to those who will benefit from these funds. However, I do not believe that these funding streams are a fix-all that addresses the serious need for a financial overhaul of the further education sector, which must come from a national approach.

The skills package fails to address the key skills challenge and the 68% drop in qualifications for health and social care workers since 2010. Funding for Sheffield city region is not available to be used until August 2021. While its promises seem bold, I fear that it is too little, too late. For all the talk of ambition, the plans coming forward are too slow and not bold enough in what they hope to achieve.

The Association of Colleges has once again highlighted the enormity of the task at hand. It has called for an extra £3.6 billion to upskill those at greater risk of the economic impact after the coronavirus pandemic moves on—whenever that will be—as well as ensuring quality places for every 16 to 18-year-old and expanded traineeships and apprenticeships. That is echoed by the Association of Employment and Learning Providers, which goes further, calling for a one-off skills package of £8.6 billion and urging Government to allocate £4.5 billion of that to address the serious underfunding of adult education.

The coronavirus pandemic has highlighted and exacerbated the digital divide in the country. When schools and colleges are shut, students have to adapt to online learning overnight, which requires access to good quality IT equipment and reliable broadband. However, many students from low-income backgrounds, who did not have access to a laptop or PC at home, and had until then relied on using library computers, were left unable to complete remote learning or had to work from a unsuitable device, such as the small screen of a phone.

During the lockdown, I had a Zoom call with the Red Cross, which works very successfully with hard-to-reach learners. I was told that many of those learners’ parents only had a pay-as-you-go phone. If they were to take part in the Zoom call and get the support they needed, their data could be gone in minutes, because a mobile phone is not a way to try to learn. That makes it even harder for young people to access the learning that their better-off peers can.

The Government have made clear that they expect colleges and sixth forms to use existing funds, namely, the 16-to-19 bursary and the adult education budget, to purchase IT equipment. There is concern among the industry that further education providers may struggle to meet this cost, and that the provision of pre-16 schemes should be extended to the further education sector.

Students without access to effective equipment are at real risk of being left behind if the Government do not step in to ensure that every further education student has the tools that they need to complete their education in these challenging times. Funding for colleges to supply students with this equipment has fallen short of what is necessary. Although colleges have welcomed back students, many are moving once more to online learning.

The Government announced, at the 11th hour, changes to the criteria for schools to receive laptops, a decision that the NASUWT says has meant schools receiving up to 80% less than promised. With many pupils and students having to self-isolate, remote learning will be a feature of our educational system for a long time to come. The issue is, therefore, still pertinent, and it is not too late for the Government to step in and fix it while the academic year is still quite new.

We are at a crossroads. The country has faced and continues to face one of the greatest challenges in living memory. After the second world war, our leaders knew that we could not go back to business as usual and, in the wake of such destruction, rebuilt our country. The economic challenge we will face in the months and years to come cannot be overcome by bringing public funding back to 2010 levels. We must go further to meet the challenges that lie ahead, and that takes vision; I know that the Minister has that vision, but I fear the Treasury does not share it.

I am looking forward to hearing the contributions in this debate, and hope that the Minister will listen to the wide range of voices in support of the FE sector ahead of the publication of the White Paper. I hope that when it is published, it will finally provide the funding the sector has been calling for, year in and year out, and that this funding will allow it to play its part in rebuilding our economy. I hope that our people, young and old, will be supported by the Government to face a very different post-coronavirus world in which they will thrive, and I urge the Minister to ensure they are not abandoned to a future without hope.

Stewart Hosie Portrait Stewart Hosie (in the Chair)
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Before I call the next speaker, I want to start the summings-up at around 3.38 pm, but given that we are slightly sparse, I am not going to put on a time limit at the moment, even an informal one: just ca’ canny.

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Gill Furniss Portrait Gill Furniss
- Hansard - - - Excerpts

I thank everyone who participated in the debate, because at the moment this issue of the utmost importance. I pay tribute to the Sheffield College, where I worked and was also a governor. A big shout-out also to Longley Park Sixth Form, which I am immensely proud of, because that sixth-form college is only there because of a Labour Government. One of my predecessors, David Blunkett, ensured that our constituency, our area, where there are low-income families, got a fantastic facility. I was at the opening, which the then Prime Minister, Tony Blair, attended. That was some years ago, and during the time that that sixth-form college has been there, it has transformed people’s lives. It has enabled people from non-traditional backgrounds, who would not be expected to get to university, to get to university, including two of my own children, who attended as well. We can never overestimate the part that such a facility can play in regenerating that sort of society.

As I am from Sheffield, and Sheffield is obviously associated with steel, I used to be the shadow Minister for steel. In the late 1970s, the steelworks were, very sadly, closed. That was when I first went to work in FE, and there were some fantastic schemes whereby the steelworkers were brought into college on nine tenths of their salary. It was a construction college, and they learnt different trades in order to get over that bump in their lives and move on to a better future. That is what I would like the Minister to ensure is there for people today—more and more of them, as each day goes by, finding themselves in circumstances they never expected.

Stewart Hosie Portrait Stewart Hosie (in the Chair)
- Hansard - -

Order.

Motion lapsed (Standing Order No. 10(6)).

Enterprise and Regulatory Reform Bill

Stewart Hosie Excerpts
Wednesday 17th October 2012

(11 years, 7 months ago)

Commons Chamber
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Jo Swinson Portrait Jo Swinson
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It has properly been considered. It is important to repeat that the protection is for conversations relating to a settlement agreement. A settlement agreement, by definition, is a negotiation, so it is unlikely to be a case of take it or leave it. The measure is about starting that conversation and enabling people to say, “We think this is an issue. Is this working out?” I think that enabling employers and employees to have those conversations without the fear described by many within the business community will improve management and not lead to the consequences the hon. Lady fears.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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I understand what the Minister is saying but I think a little honesty here would be helpful. If an employee behaves badly, they can be sacked. If a business is in trouble, an employee can be made redundant. It is no-fault dismissal by the back door when the conversation and what she describes as a negotiation, with such an imbalance of arms, means that contractual terms of redundancy can be diminished by an offered settlement to go with no fault. That is what this is really about.

Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

I do not appreciate the hon. Gentleman’s implication. The provision is about making sure that those conversations can take place. Legal advice will have to be sought and given to the employee at that point, before any agreement is reached. Guidance will be given—as I said, we are consulting on that. We are building on and improving the existing procedure for compromise agreements, which have worked well in many cases. We are taking a provision that has been in employment law for many years and improving it.

Enterprise and Regulatory Reform Bill

Stewart Hosie Excerpts
Tuesday 16th October 2012

(11 years, 7 months ago)

Commons Chamber
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Matt Hancock Portrait Matthew Hancock
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On the contrary, although I share the hon. Lady’s concerns to ensure that health and safety legislation is regarded and reasonably interpreted throughout work forces, whether in industry, agriculture or offices, and although such legislation is an important part of the modern workplace, it is unhelpful when health and safety becomes a byword for regulations that get in the way and stop businesses competing or, for instance, children from being taken on school trips once reasonable precautions have been put in place, and instead bring the whole system into disrepute. That is what the Government are trying to stop. The key defence of negligence ensures that if people breach health and safety rules or have not acted reasonably, that will—of course—be taken into account under the system, and the new clause will not change criminal health and safety procedures. We must, however, ensure that unreasonable claims, and the existing perception of health and safety legislation, do not get in the way of Britain’s ability to compete.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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The Minister is pushing the point about perception. He is right: businesses do respond to perception, and sometimes go further than is legally required. However, if they respond to perception in one direction, they may well respond to a new perception in another direction and do less than is required. If that is the case, how many injuries or deaths will it take for the Minister to be back at the Dispatch Box rewinding some of the changes?

Matt Hancock Portrait Matthew Hancock
- Hansard - - - Excerpts

If businesses behave unreasonably and are negligent, they will be caught by the system. That proves the point about why we have to strike a good balance between a health and safety system that everybody supports and under which employers—and others—have to behave reasonably and take reasonable precautions, and a system in which the test of having acted reasonably is not a defence in civil law. That is the change being made; it will help to free up business, and I commend the new clause to the House.

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There is no limit on how many and what type of questions can be asked, and employers are at risk if they do not respond to them. Based on a sample survey, we estimate that some 9,000 to 10,000 businesses complete the forms each year, in each case taking, on average, five to six hours, at a cost of about £160.
Stewart Hosie Portrait Stewart Hosie
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The Minister is describing an onerous list of questions, so perhaps she can tell the House how few need to be answered in order for the information to be provided so that someone can get proper redress.

Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

This is a procedure about obtaining information. There are clearly differences between different cases. However, it is also clear from the consultation that this is being used as a sort of fishing expedition whereby additional questions are asked in order to produce an undue burden on business and perhaps sometimes to encourage the idea that the process might be seen to be far too burdensome and that a settlement should therefore be reached instead, even where there may not have been a breach by the employer.

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Stewart Hosie Portrait Stewart Hosie
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The Minister has said that this onerous, form-filling, information-gathering exercise costs £1.4 million, but she went on to say that the information can still be requested, verbally or in writing. Presumably a great deal of time will still be required by the employer to provide the information. So what net saving across the whole of business does she envisage? Is it a third of that figure—is it just over half a million pounds? What is the quantum in this?

Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

As the hon. Gentleman says, there will clearly be some taking into account of and familiarisation with the new procedures, which will have a cost attached. The impact assessment therefore suggests that £800,000 is what business will save on an annual basis, and that is still a significant sum.

New clause 17 relates to cases where an employer has been found to have broken equal pay law or to have discriminated between women and men in non-contractual pay. It introduces a power to make regulations to require employment tribunals to order such an employer to carry out an equal pay audit. The pay gap between men and women stubbornly persists. In 2011, it was still more than 20%, having fallen only five percentage points in the previous eight years. That is why we are acting under the coalition commitment to promote equal pay. We have followed the lead of the previous Government in introducing a voluntary initiative, “Think, Act, Report”, to encourage employers to have more transparency about pay and other issues. More than 50 of Britain’s leading employers, covering hundreds of thousands of employees, are now supporting this initiative. They include Tesco, which publishes details of its gender pay gap, and household names such as BT, IBM, Fujitsu, Morgan Stanley and Unilever, which are all taking steps towards greater transparency. For those companies, which are doing the right thing, a voluntary approach is appropriate. I would argue that it is also often more likely to be successful, because of the genuine buy-in from senior management.

At the same time as we pursue that voluntary, positive action, we still think that it is right to introduce stronger legislative sanctions for cases where employers have been found to have broken the law. We know that many businesses agree with this approach. For example, in response to the “Modern Workplaces” consultation, a large organisation told us that equal pay audits could be an effective way to increase transparency where the law was seen to be breached. Representatives of one small and medium-sized enterprise said:

“For the sake of all those employers who do make huge efforts to have a fair pay system, if others can ‘get away’ with discrimination and generally provide women with lower pay, this is anti-competitive and a burden on ‘good’ employers. So a compulsory audit is entirely appropriate”.

Any regulations made under this power would affect only employers who are found to have broken the relevant laws. These regulations will: set out the content of an equal pay audit; outline the procedures for verifying that an equal pay audit meets an agreed standard; set out to whom and how an equal pay audit should be published; and specify the non-criminal sanctions that should apply where an employer fails to comply with an equal pay audit order.

I remind the House that the regulations will not be applied to micro and start-up businesses during the moratorium on new rules, which will apply until 2014. I assure the House that we will consult further on the practical detail before any regulations are introduced, and that they will be subject to an affirmative resolution of both Houses of Parliament.

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Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

I appreciate that Opposition Members are exercised about this issue, but it is not something that the organisation itself is exercised about, as is evidenced by the quotations from the general counsel in the Committee hearing.

A range of organisations responded to the consultation and gave their views on the change in the general duty. The Association of Chief Police Officers said that the general duty is

“broad in nature, open to wide interpretation and is more in the nature of a vision statement”.

The CBI said that it is

“too vague and creates unrealistic expectations”.

The Gender Identity Research and Education Society said:

“There is no essential specific legal function”.

I particularly like the way in which we managed to unite two organisations that are not usually in agreement—Stonewall and the Evangelical Alliance. The Evangelical Alliance said:

“It’s impossible to achieve and could lead to all kinds of unsatisfactory political interpretations”.

Stonewall said:

“We are not clear that the Commission has made a sufficient case for the retention of Section 3.”

I accept that many Opposition Members think that this change means that the sky is falling in, but the EHRC and its stakeholders do not concur with that viewpoint.

We are reducing the frequency with which the commission is required to publish reports.

Stewart Hosie Portrait Stewart Hosie
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Will the Minister give way?

Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

I am sorry, but I want to make some progress. I have taken many interventions.

Stewart Hosie Portrait Stewart Hosie
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rose

Jo Swinson Portrait Jo Swinson
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As a fellow Scot and in this week’s spirit of compromise and co-operation, I will give way.

Stewart Hosie Portrait Stewart Hosie
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I am not sure about compromise and co-operation. The Minister spoke about the repeal of section 3, but it is also the repeal of section 10 of the Equality Act 2006. Although it makes sense to make the EHRC more efficient and cost-effective, I am curious to know how removing the specific duty to promote good relations between different groups makes any sense, given her declaration that she wants the organisation still to function and do the good things it was doing.

Jo Swinson Portrait Jo Swinson
- Hansard - - - Excerpts

The hon. Gentleman does not need to worry about that because under existing duties in sections 8 and 9 of the 2006 Act, the EHRC still has all the requirements and focus it needs. In the consultation, a range of stakeholders spoke about the repeal of the good relations duty in section 10, and whether it was the Association of Chief Police Officers stating that a greater emphasis on its responsibilities in regulating the new public sector duty is broadly supported, or Stonewall saying that the need for the good relations function has not been sufficiently demonstrated, a wide range of stakeholders did not seem to think that there was a problem.

We are reducing the frequency with which the commission is required to publish a report on progress from every three years to every five years, and by allowing a longer time scale between reports, we believe the commission will be able to capture more meaningful change over time. We accept, however, that seismic societal changes or developments do not always happen conveniently every five years, and there is no reason why the commission cannot report more frequently if it wishes.

I know that many Opposition Members have concerns about the repeal of the good relations duty in section 10 of the 2006 Act, but we are clear that a separate mandate is not necessary. The commission’s most valuable work in this area—for example its inquiry into disability-related harassment—can be carried out under its core equality and human rights functions, which we are not amending. That view is supported by the evidence I have outlined that was provided to the Public Bill Committee by the EHRC’s general counsel and other stakeholders.

We are repealing the power associated with the good relations duty in section 19 of the 2006 Act because other organisations gather the information that that legislation permits the commission to monitor. For example, since 2011, police forces in England and Wales have been required to collect data on suspected hate crime relating to race, religion or belief, disability, sexual orientation and gender reassignment. The commission will retain the ability to review and use those data under its existing equality and human rights duties which—I repeat—we are not amending. In Scotland, where the EHRC’s human rights remit is limited, the Scottish Human Rights Commission will be able to use its powers accordingly.

On the power to make arrangements for the provision of conciliation in non-workplace discrimination disputes, as set out in section 27 of the 2006 Act, unfortunately the commission has consistently failed to deliver a well-targeted, cost-effective service. The free conciliation service funded until March 2012 by the EHRC offered poor value for taxpayers’ money. Average costs were more than £4,000 per case, compared with £600 to £850 when going through the Ministry of Justice website, “Find a civil mediation provider”.

A good and effective conciliation service should—of course—be available to those who need it, to help people resolve disputes without recourse to the courts. Good quality, accessible and effective mediation is readily available at reasonable cost throughout England, Wales and Scotland through the MOJ’s website that provides access to a full range of civil mediation council-accredited mediators at set fees, and in Scotland through the Scottish Mediation Network’s “find a mediator” website. For that reason, we are repealing the commission’s power to make provision for conciliation. The new Equality Advisory and Support Service, launched at the beginning of this month, will signpost individuals with discrimination disputes to those alternative, more cost-effective, mediation services. In evidence in Committee, the general counsel of the commission agreed that it is not

“particularly important for us to provide the service for conciliation.”––[Official Report, Enterprise and Regulatory Reform Public Bill Committee, 19 June 2012; c. 79, Q175.]

Contrary to accusations from the Opposition, these legislative measures do not represent an attack on equalities or undermine the commission’s important role. On the contrary, we believe that they will help the commission to become more effective in delivering its core functions of promoting equality of opportunity and human rights, and creating a fair environment for jobs and growth. I am therefore unable to support amendment 56, and I commend the Government amendments to the House.

Oral Answers to Questions

Stewart Hosie Excerpts
Thursday 13th January 2011

(13 years, 4 months ago)

Commons Chamber
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Mark Prisk Portrait Mr Prisk
- Hansard - - - Excerpts

My travel diary is beginning to grow a little, but west London is a little closer and I would be happy to meet my hon. Friend and the businesses in her area.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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In my Dundee East sorting office, the deployment of the Royal Mail’s “Way Forward” system has been described variously as shambolic and chaotic. Hundreds of people have complained directly through my office. Even this morning, one constituent was waiting on parcels sent on 6 December, which is quite unacceptable. Is the Minister aware of this problem? What has he done and what discussions has he had with Royal Mail? Will he assure the House that the “Way Forward” system will not be implemented in any other large sorting offices until each and every one of these problems is resolved?

Ed Davey Portrait Mr Davey
- Hansard - - - Excerpts

I am grateful to the hon. Gentleman for raising this point, of which I am aware. Royal Mail accepts that there were initial problems with establishing the new delivery system in the Dundee East delivery office and I am sure that it will learn from them. Following a review, a recovery plan was put in place, but I am afraid that the severe weather hindered it. Royal Mail has apologised for the disruption to services and taken a range of measures as a matter of urgency to ensure that households and businesses in Dundee East receive all their mail. For example, 70 extra staff and managers have been drafted in to help the recovery following a major push last weekend. I hope that the hon. Gentleman will be able to report back to me that his constituents and businesses are seeing an improvement.

Oral Answers to Questions

Stewart Hosie Excerpts
Thursday 3rd June 2010

(13 years, 11 months ago)

Commons Chamber
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Lord Vaizey of Didcot Portrait Mr Vaizey
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As the hon. Lady knows, we are currently in Budget purdah, but in opposition, I was on the record as supporting a video games tax break long before the Labour party converted to that. Indeed, for most of the last 13 years, the only time the Labour party ever talked about video games was when the right hon. Member for Leicester East (Keith Vaz) condemned them for all sorts of misdemeanours.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
- Hansard - -

I am glad the Minister mentioned Abertay in Dundee, as the video games sector is hugely important there. Although it was disappointing that the last Labour Budget contained nothing on tax breaks for the games industry in this financial year, and although he is in Budget purdah, will he and his colleagues take excellent representations from TIGA, the games trade body, to understand precisely why tax breaks are required to fend off the competition from jurisdictions where tax breaks are already in place?

Lord Vaizey of Didcot Portrait Mr Vaizey
- Hansard - - - Excerpts

When I was the Opposition spokesman, I had a close relationship with TIGA, which is an excellent trade body representing the video games industry—it put together an excellent submission on games tax relief and many other video games sector issues—and I am very happy to continue to meet TIGA representatives to discuss this important matter.

Education and Health

Stewart Hosie Excerpts
Wednesday 2nd June 2010

(13 years, 11 months ago)

Commons Chamber
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Michael Gove Portrait Michael Gove
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Lots of teachers are asking what the purpose of the GTCE is; they have been asking that question for years. I must ask the hon. Gentleman to reflect on where the resources should go. Should they go to quangos or to the front line? He listens to teachers, and I listen to teachers. They want resources on the front line, in the classroom, raising attainment; they do not want them spent on the bureaucratic bodies that have for too long siphoned money from where it needs to be spent.

Critically, I know that many hon. Members will want to ask why we are not honouring their commitment to spend £250 on the child trust fund. Let me take that question head on. When the Labour Government left office, they ensured that every single child was paying £23,000 of debt every year in order to deal with our deficit. Why is it progressive politics to saddle children with £23,000 of debt in order to give them a financial product worth just £250? That is not progressive politics; it is Maxwell economics. Instead of seeking to defend its financial mismanagement, the Labour party should apologise to the House and to the next generation for saddling them with a national debt so huge that it undermines our capacity to make progress.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
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The Education Secretary is right about the level of debt that the Labour party left behind: £1 trillion of national debt is a huge amount. However, to use that as a justification for doing away with the child trust fund is wrong. The child trust fund is the only savings product I can think of with a 71% voluntary take-up rate and, given that savings ratios in this country were so low for so long and that the fund goes directly to help children when they leave school, it is a false economy to butcher the scheme, notwithstanding the chaos and mayhem that the Labour party left the economy in.

Michael Gove Portrait Michael Gove
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The hon. Gentleman answers his own question: the Labour party did leave chaos and mayhem, and the tough decisions that it relentlessly avoided now have to be taken. By refusing to state exactly how it would deal with the public spending mess that it left behind, the Labour party is placing itself outside the European mainstream—[Interruption.] In every major European country, including Ireland, Italy, Germany and Spain, steps are being taken to deal with the deficit. The right hon. Member for Morley and Outwood was a noted Eurosceptic, when he was at the Financial Times and when he was at the Treasury. I note that he is now taking a similarly Eurosceptic position by refusing to join the European consensus that we need to deal with our sovereign debt crisis by bringing down public expenditure. The longer the Labour party is in denial, the longer it will consign itself to irrelevance and the longer it will stay in opposition.