Offender Rehabilitation Bill [Lords]

(Limited Text - Ministerial Extracts only)

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Tuesday 14th January 2014

(10 years, 3 months ago)

Commons Chamber
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Baroness Chapman of Darlington Portrait Jenny Chapman
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Yes, I do. All I am asking for is parity. A public sector provider of these services is subject to a certain level of scrutiny, not least in respect of freedom of information, and when we are spending increasingly vast sums on a small number of private sector providers it is not unreasonable to expect them to be subject to similar oversight. The hon. Gentleman will not be surprised to learn that the Government voted against all these measures in Committee, saying that the current arrangements offer enough protection and assuring us that any necessary safeguards would be included in the contracts.

I am afraid to tell the Minister, who is well respected in this House, that it is a little difficult simply to accept even his word on such important issues, particularly given that the Government’s record on outsourcing is so awful. We have already discussed the compelling example of the court translation services contract, and another example fresh in our minds is the running of Oakwood prison.

Jeremy Wright Portrait The Parliamentary Under-Secretary of State for Justice (Jeremy Wright)
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I am grateful to the hon. Lady for giving way and, as ever, for her kind words. I suggest, however, that I am not asking her to take only my word about the safeguards in the contracts. We will publish the contracts in draft so that the House can see for itself.

Baroness Chapman of Darlington Portrait Jenny Chapman
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Perhaps, then, if that is the Minister’s attitude, he will be minded to support our new clause 5. It is reasonably worded and if he reads it carefully he might find that he can support it.

Returning to HMP Oakwood, the Government have somehow managed to build a brand new, state-of-the-art prison that seems to be failing on every imaginable front. A surprise prison inspection last year found inmates reporting that it was easier to get drugs than soap on the wings, while the inspectorate report revealed that the inexperience of staff was visible everywhere, with staff unwilling to challenge bad behaviour and many being

“passive almost to the point of collusion”.

As the report continued, indicators of levels of violence were high, there were not enough activity places and the control and supply of medication was “chaotic”. The chief inspector of prisons called the state of the prison “unquestionably concerning”. The Secretary of State was disappointingly somewhat less firm in his criticism, largely dismissing these as “teething problems”. A couple of months later, inmates managed to stage not one, but two rooftop protests. As late as last week, six months after the inspectorate visited the prison, West Staffordshire police were notified of an incident lasting through the night, apparently involving an entire wing being barricaded by inmates.

Baroness Chapman of Darlington Portrait Jenny Chapman
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I will attempt to assist the hon. and learned Gentleman. The point is that Oakwood prison is run by one of the would-be providers of probation services.

Baroness Chapman of Darlington Portrait Jenny Chapman
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Perhaps the Minister knows more than I do—I hope he does—but nothing we have read suggests that G4S will not take part in any way in the provision of these services. A statement made on 19 December informed us that it would not be a lead bidder, but also indicated that it might be part of a consortium.

Jeremy Wright Portrait Jeremy Wright
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Perhaps I can help. The list of prime bidders has now been published, and Members may well find it worth their while to have a look at it. It is true that neither G4S nor Serco appears on the list, but a number of others organisations do, including 10 probation mutuals.

Baroness Chapman of Darlington Portrait Jenny Chapman
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But those are lead bidders, and I understand that none of the contracts will be taken on by one organisation alone. There is nothing to prevent G4S and others from being involved in the provision of probation services when the contracts are awarded. The other reason this information is relevant to probation is that it reveals that the quality of the supervision and enforcement of contracts by the Ministry of Justice is not quite what we would like it to be.

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Lord Garnier Portrait Sir Edward Garnier
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Is it St Francis I am reminded of: “Oh Lord make me pure, but not yet”?

Jeremy Wright Portrait Jeremy Wright
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St Augustine.

Lord Garnier Portrait Sir Edward Garnier
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St Augustine. I am so glad for that correction. The Minister is multi-talented.

I do not think I need to pursue my argument. I have made the point I want to make, and I understand the points the hon. Member for Darlington has made and I disagree with them. I suggest we get on and permit the arrangements to be advanced as soon as possible. I say that not out of party political animus; I say it out of a desire to see something done, having spent five years in opposition between 2005 and just short of 2010 taking an intense interest in the way in which we ran our prison system, our criminal justice system and our rehabilitation system. I also say it as someone who has sat for 12 or so years as a Crown court recorder and who had to deal quite regularly with the results of failure, and I think the time has come to stop that.

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Sarah Champion Portrait Sarah Champion
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I hear that point and I have heard it made for months now, but I do not agree that that is the only way forward and I am yet to hear the evidence that tells me that it is the best way forward. I would like to develop that point.

As we are not being presented with evidence, the only conclusion I can reach is that the policy is driven by ideology rather than facts. This is not a subject we should be playing with. We need to have evidence and proof. Even a pilot would give us time—that breathing space and that evidence. That is why I support new clause 4. The proposal is being rushed through. The system is over 100 years old and it has served us well in that time; we have been debating the proposal for only the past six months.

I would like to set the record straight once again on Labour’s position. We are not in any way opposed to supporting offenders who have had sentences of under 12 months. We actually tried to bring that support through but were unable to do so. We are very supportive of that, but we question the one way that has been presented to us in which it should be done.

Jeremy Wright Portrait Jeremy Wright
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The hon. Lady is right that the previous Labour Government set out exactly such an aspiration and she is right, too, that they came to the conclusion that they could not achieve it, but does she not accept that they came to that conclusion because they could not find a way of affording it? That is precisely why we have put forward these proposals—it is the only way we can see of affording that extra cost. So far, I have heard nothing to suggest that there is an alternative.

Sarah Champion Portrait Sarah Champion
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I support what the Minister says, but there are two points to make. First, we have not been presented with the costs, so we do not know whether it can be afforded. Secondly, I do not agree with the premise that that is the only way to go forward.

Although I would not choose it, we are not fundamentally opposed to commercial companies tendering for and running Government contracts, as long as they are proved to be the best provider. We are also not at any level against voluntary organisations being involved. Indeed, a number of such organisations are providing specialist services in Rotherham, and we want that to continue. I am sure that that is happening across the country. This is not an either/or situation.

I want to use this debate to challenge some of the Government’s reasons for this massive overhaul of our judicial system, in the hope that even just one person in the Chamber will listen to some of the evidence that we are putting forward and question the assumptions that are being made. The underlying assumption is that the existing system is not fit for purpose, yet the National Offender Management Service published a report in July 2012 that demonstrated that the quality of the probation service was either good or exceptional in every single probation trust. After the probation service as a whole won an award for excellence in 2011, the hon. Member for Reigate (Mr Blunt), who was Minister for prisons and probation at the time, said—

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Sarah Champion Portrait Sarah Champion
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Unfortunately, I cannot explain that, because the plans have not been put before us. I am therefore unable to scrutinise them or to change them to the degree that I would like. I am supporting new clause 1 because I would like the House to be able to debate those matters, but we are not being given the opportunity to do so.

Another assumption that is being presented to us is that probation trusts are failing to reduce reoffending rates, yet reoffending rates are falling. The latest statistics published by the Ministry of Justice show that the probation service reduced reoffending by a further 5% below the target figure. This continues the downward trend in reoffending rates witnessed over recent years, and reoffending by all adult offenders in the community subject to probation supervision is now at its lowest since 2007-08. The probation service has achieved that while making the considerable budgetary savings asked of it. In South Yorkshire, the figures are even better, at 12.77% lower than the target figure.

Reoffending rates are important, but they are not the only criterion for success in this area. The probation service can also boast that victim feedback has been positive in 98% of cases; that targets for completions on domestic violence interventions, and for court report timeliness, have been met and exceeded; and that completion targets were also met or exceeded on the vast majority of probation programmes. The probation trusts are doing a superb job, and they should be allowed to continue to do so.

Another assumption that keeps being mentioned in the debate is that the only way in which supervision for people serving a sentence of under 12 months can be afforded is through privatisation. However, the proposals will necessitate the wholesale reorganisation of the probation service and a lengthy and complex national tendering and contracting process, all of which will require significant investment before we even get to the meat of doing the job. There is huge concern over the lack of information on the cost of the proposals. We have asked for that information, but it has not been presented. Despite the publication of several impact assessments, the Ministry of Justice has yet to set out the cost of the reforms and the way in which they will be funded. This is a fundamental point. If we are expected to take this leap in the dark, at least we should be chucked a lifeboat so that we can get into it.

The current budget for probation is approximately £800 million a year, suggesting a 10-year budget of £8 billion. The House of Commons Library has broadly estimated that the 10-year value of outsourced probation would be between £5 billion and £20 billion. That is in addition to the budget for the remaining public sector probation service. That suggests that a significant increase in costs is being predicted, contrary to Ministry of Justice claims that the reforms are a cost-saving initiative. In addition, there would be the unknown percentage resulting from performance-related pay.

Now it starts to get surreal—not that it was not already. The Government say that the probation service cannot tender because of the performance-related pay aspect, so why do they not just drop that element? The probation trusts have been saying all along that they would like the opportunity to support people serving short-term sentences. They are clearly the best trained and most skilled specialist people to do that work, but they are not even being allowed to tender for it. I find it incredibly challenging that the main stumbling block to retaining the status quo in that area is that the Government will not drop the performance-related pay element.

I support new clauses 5 and 11, but other people want to speak so I shall not say any more about the companies that are tendering for the work. Nor will I go into the whole data protection issue that will result from state, private and voluntary organisations sharing information. My hon. Friend the Member for Darlington (Jenny Chapman) has already mentioned the logistics of reorganisation and the risks incurred during a transition period. Those risks are enormous. We are not talking about people not getting paid for a week. We are talking about people being out in the community without the necessary supervision, and the potential for the data to collapse around them so that we would not even know where they were.

In conclusion, new clause 1 would prevent the Government from being able to sell off or restructure the probation service unless their proposals had first been laid before, and approved by, both Houses of Parliament. The Government have not given Parliament any opportunity to scrutinise their plans to privatise probation, claiming instead that they can use existing legislation to push the plans through. The only time we have debated this topic is during Opposition day debates. That cannot be democratic. The way in which this has been handled has shaken me to the core.

Jeremy Wright Portrait Jeremy Wright
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Of course democratic accountability is important. The hon. Lady has mentioned the opportunities the House has had to debate these matters. She has mentioned the Opposition day debate, in which there was a vote and the House voted against her point of view. She has also mentioned the Second Reading debate, after which the House voted against her point of view. She was also in the Committee, where the Committee voted against her point of view. How much more democracy does she need?

Sarah Champion Portrait Sarah Champion
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Again, it would be nice to have the evidence; instead, we are debating in the dark. I find it shocking that we had to raise the issue in an Opposition day debate, rather than the Government presenting their findings to us.

For me, it is right and proper that this House should debate the privatisation of 70% of probation services; the fragmentation of the resulting services; the abolition of local probation trusts; the commissioning of services direct from Westminster; and the imposition of an untried, untested payment-by-results model. Instead, the Government are pushing ahead with their half-baked plans for probation privatisation by misusing existing legislation and avoiding parliamentary scrutiny. I can only assume that that decision is driven by political ideology, but this proposal will put the public at risk.

The chairs of the probation trusts of Derbyshire, Leicestershire and Warwickshire have written to the Minister to warn him of the dire consequences of rushing this reform through. Those experts say that

“performance is bound to be damaged and that public protection failures will inevitably increase”.

They go on to say that the fragmentation proposed by this Government would lead to

“more systemic risks and more preventable serious attacks and deaths”

and that the current timetable was

“unrealistic and unreasonable...with serious implications for service delivery and therefore increases the risk to public”.

I urge the Minister to listen to the people who know and understand the service best, and to support our proposal in new clause 1.

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Meg Hillier Portrait Meg Hillier
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I rise to support new clauses 1 and 4. I will not repeat the excellent arguments that my hon. Friends have made, but I am concerned about the impact that this big and sudden change to the probation service will have in my community and on offender rehabilitation, both of which are central to the aims of the Bill, which is why elements of it enjoy cross-party support.

I am not opposed to having specialist providers in the probation service. For example, there is a high incidence of mental health problems in my constituency, and in Hackney as a whole, and many of the people affected, if they get caught up in the criminal justice system, would benefit from more specialised services, so I am not opposed to the private sector or voluntary bodies coming in to provide certain aspects of probation.

However, the scale of this outsourcing, particularly when it is being done in such a hurry, poses a real risk. I believe that it will reduce standards. People will be taken on by large companies that have no track record in probation, and will be paid at much lower levels, as probation assistants, rather than full-blown and experienced probation officers. I call it probation-lite. Those people will be making very important decisions. They will decide, for instance, whether someone is a high-risk offender who needs to be transferred to a probation officer. There is a risk there.

Jeremy Wright Portrait Jeremy Wright
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It might help the hon. Lady if I clarified two points relating to what she has just said. First, in all contracts we will expect those taking on the work to employ properly skilled staff—not to do so will not be permitted. Secondly, those who decide whether someone is a high, medium or low-risk offender will be public sector national probation service employees, not contractors.

Meg Hillier Portrait Meg Hillier
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I thank the Minister for that clarification, particularly the first point, which is indeed good news. I was not a member of the Public Bill Committee and so might have missed some changes that have been made.

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David Hanson Portrait Mr David Hanson (Delyn) (Lab)
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I begin by echoing the comments of my hon. Friend the Member for Darlington (Jenny Chapman) about our late colleague Paul Goggins. I followed him as a Justice Minister, doing the job he did when he was in the Home Office and had responsibility for probation, and I know how well respected he was in the sector, by officials and the community at large. I also had the pleasure of sharing time with him as a Northern Ireland Minister, where he was also well respected. This is my first opportunity to put that on the record in the House. I will attend his funeral on Thursday, along with many colleagues across the House, to pay my final respects to Paul for all his work.

I wanted to speak in this debate for several reasons. Nobody disagrees with the Government’s general premise for dealing with offenders sentenced to 12 months or less in prison. They are often prolific offenders who go on to reoffend. They are often tomorrow’s serious offenders. It was an aspiration we had when I served in the Ministry of Justice to try to reduce their reoffending. We need to involve the voluntary and private sectors in supporting rehabilitation work for individuals who go to prison and come out within 12 months. Housing associations, voluntary providers and employers all have a role to play. That can be done in a positive way by the voluntary and private sectors.

Let us therefore not have a debate today on the difference between the Government and the Opposition on the need to involve some elements of the voluntary and private sectors. Instead, I want to raise my concerns about the issues addressed by new clauses 1 and 4. New clause 1 would ensure that we put a parliamentary brake on reorganisation, pending proper parliamentary scrutiny, and new clause 4 would put in place a pilot to test some difficult and serious matters in relation to which mistakes—they will be made, because that is the nature of the business the Minister deals with—will have a real impact on the community at large.

New clause 1, which I fully support, would prevent the Government from selling off or restructuring the probation service unless the proposals had first been laid before, and approved by, both Houses of Parliament. It is no secret that if the Government did that this year, they could put a Bill before Parliament and get it through before the general election. They could have it scrutinised and probably, because of the votes they have in this House, get their way. I object to the Government using the Offender Management Act 2007 to achieve that objective. I declare an interest, because I was the Minister who took that Act through the House. At the time I was pressed strongly by many Members on my own side, including my hon. Friend the Member for Hayes and Harlington (John McDonnell), on whether it meant the privatisation and break-up of the probation service. I was pressed very hard about whether it meant, in practice, the abolition, ultimately, of probation trusts.

I gave assurances during the Bill’s passage through the House and I want to repeat them today, not because they have not been heard here before, but because they support what my hon. Friend the Member for Darlington says in new clause 1 and are worthy of repetition. On 18 July 2007, I, as the Minister, said from the Dispatch Box:

“There will be a mixture of commissioning. Some will be at national level, because in certain cases and with certain contracts that will be the best way of securing a strong and efficient service. There will also be a strong role for those commissioning work at regional level. As my hon. Friend surely accepts, economies of scale will sometimes be necessary, and some services will be best purchased and commissioned at that level. However, there will also be a need for local probation trusts to act not just as service deliverers but as commissioners of services from the voluntary sector, or from others, providing a proper service to help prevent reoffending at local level.”—[Official Report, 18 July 2007; Vol. 463, c. 352-53.]

I said that in support of what my noble Friend Baroness Scotland and the then Lord Chancellor, my noble Friend Lord Falconer, said in another place when introducing the Offender Management Bill. I would be interested to hear what the Minister has to say about that. I am very pleased that the hon. and learned Member for Harborough (Sir Edward Garnier) is present, because I said it in response to a Lords amendment that he supported and that sought to do exactly what the Minister is seeking to do now to the probation service. We rejected it and I put it on record that the Offender Management Bill would not be used for that purpose.

I would be grateful if the Minister reflected on Pepper v. Hart from 1992. Legislation can be interpreted according to what a Minister said at the Dispatch Box about what they thought about a particular interpretation of a Bill. My assessment is that during our deliberations on the Offender Management Act, I, on behalf of the then Government, rejected from the Dispatch Box an amendment that sought to do what the Minister is now doing; supported the aspirations of my noble Friends Lord Falconer and Baroness Scotland; and spoke in support of retaining probation trusts to commission at a national, regional and local level. As my hon. Friend the Member for Hayes and Harlington has said, it is an abuse of this House for the Minister to try to use that legislation to secure his objective.

Will the Minister—just for me, so I can sleep easy in my bed—put on public record the legal advice he has received that says that he can do what he is doing, so that we can test his interpretation against the potential interpretation of lawyers outside the House under the terms of Pepper v. Hart?

Jeremy Wright Portrait Jeremy Wright
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I am not sure I will be able to help the right hon. Gentleman sleep easier in his bed. Equally, I do not want to pull rank on him, but I have to put to him something that was said by his then boss—the then Home Secretary and the now noble Lord Reid—on Third Reading of the Offender Management Bill in this House:

“I can therefore give an assurance today…that the core offender management tasks of the probation service—for example, offender report writing, offender supervision and breach proceedings—will remain in the public sector for the next three years.”—[Official Report, 28 February 2007; Vol. 457, c. 1024.]

Will the right hon. Gentleman explain why his then boss did not say “for ever” instead of

“for the next three years”?

David Hanson Portrait Mr Hanson
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I do not wish to upset the Minister, because he is a decent cove, as far as he can be with his brief, but the noble Lord Reid was never my boss. I have never served under him and he never line managed me in any way, shape or form. When I served as a Justice Minister, my noble Friend Lord Falconer and my right hon. Friend the Member for Blackburn (Mr Straw) were my bosses. What I said at the Dispatch Box at the time was said on their behalf. We supported a publicly supported probation service.

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Jeremy Wright Portrait Jeremy Wright
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I take the right hon. Gentleman’s point that I will have a chance to respond later and I suspect I will have quite a bit to respond to by then, but I wish to address this specific point. I apologise to him for my misunderstanding of the chain of command back in the days of his time in government. However, unless I misunderstand him, I do not think he is suggesting that the noble Lord Reid was not speaking for the Government on that occasion. On the question of whether I will publish legal advice, I can do better than that by referring the right hon. Gentleman to the Offender Management Act itself. Section 3(2) states:

“The Secretary of State may make contractual or other arrangements with any other person for the making of the probation provision.”

That is clear authority to do what we are doing, is it not?

David Hanson Portrait Mr Hanson
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This is the nub of the argument: I accept that the Minister believes he is acting in good faith under the Act, but what I am saying is that the interpretation I gave from the Dispatch Box, and that other Ministers gave in another place and in this House, was that the Act could not to be used for the Minister’s current purposes. My interpretation was that the Act could be used to contract the voluntary and private sector to deliver some services, but not the core probation service, which is what the Minister seeks to do. We can disagree about that—it is a matter of conjecture—and I think that the appropriateness of our comments could be tested under Pepper v. Hart.

If the Minister votes for new clause 1 he will have an opportunity to bring back new proposals and, as has been suggested, to pilot them so that we do not have to take a serious gamble and have an artificial split between public and private providers, or face the risk of cherry-picking and big companies hoovering up contracts. Moreover, we would not have the risk brought to my attention by a probation officer in my own constituency who corresponded with me this very week. She will remain anonymous because of her current status, but she said in her letter:

“This system is not tested. It’s just ideas and assumptions based on political ideologies. Knowing the work as intimately as I do I can’t tell you how risky this is.”

I know from my time in the Ministry of Justice that there will be risks and challenges in the management of offenders. One of the serious cases with which I had to deal as a Minister was when a low-level offender who was being supervised by the then London probation service broke into a property in Lewisham, close to the constituency of my hon. Friend the Member for Lewisham East (Heidi Alexander), undertook a burglary and, in doing so, murdered two individuals, set fire to them and burned the property down. The offender was given sentences of 40 and 35 years respectively and is, as we speak, serving them at Her Majesty’s pleasure. That was a low-level offender who committed a high-level offence. There is always risk.

I accept that that happened under the probation service—mistakes will happen; this is a risky business—but I am worried about the steps the Minister is taking without the pilot proposed by new clause 4 or the brake and proper parliamentary scrutiny proposed by new clause 1. That raises the risk even higher in a system that, by its very nature, is risky.

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Heidi Alexander Portrait Heidi Alexander (Lewisham East) (Lab)
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It is a pleasure to follow my right hon. Friend the Member for Delyn (Mr Hanson). He has great expertise in this matter, given his previous ministerial role. I am not sure that I will trouble the Minister with the same level of detail about the proposals. I want to make a short speech on some of the things I have learned about how the probation service operates in my area and about the need for us in Parliament to have a vote on whether the wholesale privatisation of the probation service should go ahead.

In recent weeks, I have visited Lewisham probation trust and met its staff. The Lewisham trust is very busy. It ranks fourth among London boroughs with respect to the complexity and risk of the cases with which it deals. A quarter of the cases it deals with involve young people aged between 18 and 25.

When I spoke to staff, they expressed very serious concerns about the plans to fragment and break up the probation service and, indeed, to privatise great chunks of it. They believe that the proposals actually endanger some of the important and innovative work they are doing. For example, they recently set up a specialist team to deal with the problem of young offenders, whereby staff time is split between the youth offending service and the probation staff so that the two services join up better. They told me that the proposals the Government wish to force through in the next year will lead to huge upheaval and massive duplication, and will make it less likely that the work that is so important in our community for reducing reoffending is moved forward and can bring about the outcomes we all want.

The management of the trust told me that instead of being externally focused on reducing reoffending and protecting the public, over the next couple of months their priority will be to support staff through the transition and to make sure that they move cases between the split services in a way that ensures that no cases are lost and no mistakes are made. That does not make sense to me. The priority for the management and those with experience should be to ask, “How do we reduce rates of reoffending out there in the community?”

What will happen when the case load is split? As I understand it, 70% of the cases will be dealt with by community rehabilitation companies and others will be left with the new national probation service. How will those really difficult decisions be made about the risk that such young offenders present? The people who work in the probation service tell me that such judgments, particularly those about young people, are very difficult to make.

Jeremy Wright Portrait Jeremy Wright
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The first point I want to make to the hon. Lady is that the proposals we are discussing do not cover young offenders, but only adults. The second point is one that I made earlier, but I am not sure whether she was in the Chamber at the time. It is that in relation to risk assessments and the judgments she describes—I accept that they are difficult—such judgments will be made by employees of the national probation service, who are public sector employees.

Heidi Alexander Portrait Heidi Alexander
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I fear that the Minister may have misunderstood me. When I spoke about young people, I meant those between 18 and 25. As I understand it, the proposals in the Bill relate to that age group.

Another point that has been made to me by probation staff in Lewisham is that one key to the reduction of reoffending relates is having stable relationships between probation staff and the individuals with whom they work, so that they can build trust and work together to achieve the things that will put those young adults on to a better path in life. If young people are transferred between different organisations because their risk fluctuates, I wonder how there can be that stability in such relationships that I am told is so crucial to the reduction of reoffending.

Some Government Members, particularly the hon. and learned Member for Harborough (Sir Edward Garnier), seemed to suggest that the Opposition have some ulterior motive for saying that we want to pilot the schemes and to have a vote in this House before these very significant proposals go ahead. I want to put it on the record that our interest in this debate is public safety, what is effective and what works. They ascribe to us motives that simply do not represent our position. We are advocating what is in the best interests of the public and asking how we can really get to grips with reducing rates of reoffending, which are far too high in our country.

Jeremy Wright Portrait Jeremy Wright
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May I begin by endorsing entirely what the hon. Member for Darlington (Jenny Chapman) and the right hon. Member for Delyn (Mr Hanson) said about Paul Goggins? Paul was the first Minister I went to see as a newly elected Back Bencher. I was struck not only by his command of the brief, but by his inherent kindness, his reaction to somebody who was not of his party and his willingness to give me whatever assistance he could. That continued throughout the time that I knew him in this House. As others have said, he will be missed on a personal level by a great many people on both sides of the Chamber. It is right for us to recognise today that he will be missed in debates such as this. The lack of his warmth and wisdom on these subjects and many others will make our debates all the poorer. I know that we will all miss him in the Chamber more generally.

We have had an interesting and informed debate on this group of new clauses. There is no doubt that the substantial burden of the debate on the Bill has been not about the contents of the Bill, which are broadly uncontroversial, but about the wider reforms that surround the Bill. I understand why that is. It might therefore be helpful if I spend a little time dealing with what is at the heart of the Government’s reforms to probation and why we believe they are so urgent. That will relate to the issue of piloting, which has been raised this afternoon.

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Baroness Chapman of Darlington Portrait Jenny Chapman
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If the Minister wants us to accept everything that he has said so far, will he explain why it was a good idea to cancel the trust probation pilots when he did?

Jeremy Wright Portrait Jeremy Wright
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The pilots that we cancelled were not sufficiently close to the proposals that we are making for us to learn as much as Opposition Members would like us to have learned from their conclusion. That does not mean that we learned nothing from their period of operation. The point has been made from the Opposition Benches that it is possible to learn from pilots even if they are not allowed to run to full term. We certainly have learned from those pilots and from other experiences of payment by results. I will return to that point in a moment.

The Government essentially had two options. We had to decide how to approach the task of tackling reoffending rates within our means. The hon. Member for Lewisham East (Heidi Alexander) is right that reoffending rates are too high. We could not allow that situation to continue without a response. We could simply have imposed further significant cuts on the 35 probation trusts without targeting our efforts on those with the highest reoffending rates, or we could have brought in innovative approaches to supporting offenders that would also be more efficient and that would allow us to reinvest some of the savings to target support through the gate on the under 12-month group. We chose the latter option. At the heart of our proposals is the aim of opening up the supervision of low and medium-risk offenders to a diverse range of new rehabilitation providers to bring in the best of all sectors to tackle reoffending.

The right hon. Member for Delyn discussed the Offender Management Act 2007. He was here at the time and witnessed the passage of the Act at first hand. He knows that what I have described was the policy of the Government at that time. The Opposition want to forget it now, but they have to be reminded that the powers for which they legislated and to which Parliament agreed in 2007 entirely underpin the reforms that this Government are making. I have explained what Lord Reid said when he was Home Secretary. He made the matter perfectly clear when he said:

“The Secretary of State…will be responsible for ensuring service provision by entering into contracts with the public, private or voluntary sectors. With that burden lifted, the public sector can play to its strengths while others play to theirs.”—[Official Report, 11 December 2006; Vol. 454, c. 593.]

Anne Main Portrait Mrs Main
- Hansard - - - Excerpts

The Minister is making a powerful case for why there needs to be reorganisation. However, will he help the staff who will be involved in the transition process by saying what the new organisations will look like? My constituents have told me that there is uncertainty about the new bodies that they will be obliged to work with and concern about what they will look like. Perhaps that would help to make the transition a little easier.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

I agree with my hon. Friend that it is important to keep existing staff informed about what is going on. We are trying very hard to do that. If there are specific issues in her area, I am happy to look at them. We are keen to ensure that staff are informed. If she will forgive me, I will come back a little later to the pace of the changes that we are making, which has been a substantial issue this afternoon.

Before I do that, I want to make a couple more points about the background to this point, and the issue of further parliamentary approval for what we are suggesting. I have already made the point that section 3(2) of the Offender Management Act 2007 states:

“The Secretary of State may make contractual or other arrangements with any other person for the making of the probation provision.”

In Committee, the Opposition were unable to dispute that the power that they legislated for is clear and unambiguous. The phrase

“contractual or other arrangements with any other person”

does not mean solely with probation trusts or trusts commissioning other providers, or solely with the public sector.

David Hanson Portrait Mr Hanson
- Hansard - - - Excerpts

I do not wish to take up too much time on this point, but the Minister will know that when that debate took place, the intention was that the national probation service and the Ministry of Justice could contract for unpaid work, for example, on a national basis, but that for core probation services the probation service locally would still be responsible for the lead provision under that Act.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

Again—I made this point earlier when I intervened on the right hon. Gentleman—I do not think that Lord Reid could have been any clearer on Third Reading. No doubt under considerable pressure from Back Benchers in his party, he undertook that those core functions, including two things that we do not propose to move from the public sector—advice to court and breach of proceedings—would remain in the public sector for three years. That was not in perpetuity, not as a matter of principle, but for three years which, conveniently enough, took him up to the date of the general election. I think we can all take from that a pretty clear understanding that the Labour Government were not promising that those functions would stay in the public sector for ever; they did it to take them up to the general election.

David Hanson Portrait Mr Hanson
- Hansard - - - Excerpts

Can we be clear? Lord Reid was not the Minister responsible when the 2007 Act was dealt with in these Houses of Parliament. I was the Minister of State, my boss was Lord Falconer, and the Minister in the other place was Baroness Scotland. Those were the three Ministers dealing with the 2007 Act in June 2007.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

I understand the right hon. Gentleman’s point, but it is pretty clear that Lord Reid was speaking on Third Reading of that Bill on behalf of the Government. If the right hon. Gentleman thinks that what Lord Reid was saying did not represent the Government’s position, he had better take it up with him. We have to go by what Hansard tells us.

Barry Sheerman Portrait Mr Sheerman
- Hansard - - - Excerpts

As someone who was present at that time, and who would count themselves as a reasonably good friend of Lord Reid, I think there is a different interpretation and that the Minister is taking this out of context. Lord Reid had no experience of the many private sector providers, such as Capita and G4S, that are being sought for this role but that now have a different focus and profile because they have failed. With that experience, do we really want to destabilise a wonderful profession and give it to companies such as those?

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

The hon. Gentleman is making a slightly different point. I am talking about what authority is given to this Government by the Offender Management Act and, more broadly, what the previous Government thought they were doing when they passed it. The case made by Labour Members is that we have in some way taken that Act and twisted its meaning. It has been taken wholly out of context, and we have a travesty of a representation of what that Act says and means. I have been saying to the right hon. Member for Delyn and his colleagues that what the Act says is very clear, and the Hansard that supports it is also clear. Not only did the previous Government anticipate that such a thing could happen, they chose not to rule out the possibility of its happening. They had every opportunity to do so but they did not take it. That is my point.

More to the point and in connection with further parliamentary approval, the Offender Management Act says nothing about requiring Parliament to approve the exercise of that power. By contrast, section 15 of the Offender Management Act provides that an order repealing or disapplying the restriction of certain functions, including advice to court, to the public sector, must be subject to parliamentary approval. If, when in government, the Opposition had wanted to ensure that the power in section 3 for the Secretary of State to enter into arrangements for probation provision was subject to the affirmative resolution procedure, they could have done so, but they did not.

What is more, the Labour Government were prepared to guarantee that the supervision of offenders more widely would remain in the public sector for only three years, as I have said. Let us be clear: the Labour Government’s position was that the supervision of any offender—not just medium or low-risk offenders—could at some stage be competed for outside the public sector. This Government are not saying that. We say that medium and low-risk offenders should be competed for. Secondly, the Labour Government’s position was that the only element of parliamentary scrutiny of the Secretary of State’s powers to organise the probation service relates to the relatively narrow concept of advice to courts, which this Government do not intend to alter. Thirdly, the previous Government’s position was that the public sector monopoly on providers would be guaranteed for only three years.

The hon. Member for Darlington now proposes a new version of the new clause. I am not convinced that new clause 1 does exactly what the Opposition want, because the word “national” next to the word “restructure”, which is designed to avoid the need for any small change of probation to be debated in the House, does not necessarily apply to the word “reform”. Therefore, we might end up being asked to discuss very minor changes to the probation service. Beyond that, the basic point is that the Labour Government were given the opportunity to ask for a further check in Parliament for the provision but did not do so. It is a little odd that Labour Members now say that they want one.

On the substance of the reforms, we have spoken about the establishment of 21 new community rehabilitation companies in England and Wales. In the first instance, they will be publicly owned for a number of months before we consider whether to transfer ownership to other organisations. It is open to organisations from the private, voluntary and community sectors, as well as organisations currently working in probation trusts, to bid for those first-tier contracts. Part of the payment of those organisations will be based on results, so that we incentivise a greater focus on tackling reoffending and achieving better value for the taxpayer.

A number of the proposals tabled by the hon. Member for Hayes and Harlington (John McDonnell)—he has tabled new clauses 9, 10 and 11—remain flawed, as they were in Committee. As drafted, they would apply only after a competition has concluded, and would not prevent organisations from bidding, which is what I believe he wants to do.

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - - - Excerpts

The Minister unsurprisingly comes up with technical reasons why those proposals are deficient, but he knows what my hon. Friend the Member for Hayes and Harlington (John McDonnell) is getting at. Will the Minister therefore confirm that he will not accept bids from any consortium that has, as a partner, G4S or any other organisation that is under criminal investigation by the Serious Fraud Office?

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

I entirely understand what the hon. Member for Hayes and Harlington is getting at, but I am afraid that I do not dismiss as lightly as the hon. Lady flaws in the proposals that we are being asked to support. If they are flawed, the House should not support them.

Let me reiterate the Government’s commitment to publishing contracts for the delivery of services to low and medium-risk offenders. That includes not just draft contracts, as I have said, but final versions of the future contracts for probation services. I hope that that is some reassurance to the hon. Member for Hayes and Harlington. Likewise, I reassure him that the Government will include within the contracts for rehabilitation services a provision that enables the National Audit Office to access private providers’ records and documents for audit purposes. Of course, the NAO might require access to the community rehabilitation companies’ financial systems when there is a need for public assurance. That will be reflected in the contracts. That also answers the point made by the hon. Member for Hackney South and Shoreditch (Meg Hillier).

The new clauses seek to limit who can bid for contracts by excluding certain organisations. For example, prime providers for the Work programme could be excluded. I am afraid that that would simply reduce the diversity of the market of rehabilitation providers. Many organisations are doing important work within the Work programme, including voluntary organisations working with disabled and disadvantaged people.

The hon. Member for Darlington made a point on fraud, which the new clauses tabled by the hon. Member for Hayes and Harlington address. Let me be clear that the Justice Secretary and I are determined to ensure the integrity of future contracts to deliver value for money for the taxpayer. The Ministry of Justice is currently following a proper procurement process and will do so in future competitions. It is that process that should rightly be used to determine who can bid for contracts and who the future providers of services should be. Procurement law permits consideration of issues that affect a bidder’s eligibility, such as fraud, only at the initial prequalification stage, and not after that stage unless a bidder’s circumstances have changed.

In respect of the current competition to identify the future owners of the 21 CRCs, the prequalification stage was completed in December. Even at that stage, we would not have been legally allowed to exclude a bidder on the grounds that they were under investigation for fraud. The grounds for mandatory exclusion under procurement law are that the bidder has, or any of its directors have, been convicted of fraud. The ongoing investigation by the Serious Fraud Office into the conduct of G4S and Serco—which, I remind the House, this Secretary of State initiated—in delivering the Government’s electronic monitoring contracts would not have provided a legal basis for excluding those organisations from the current competition.

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - - - Excerpts

I just want to be clear about this, so that colleagues on both sides of the House can be clear. Despite all the assurances that the Minister has given here in the past, he is saying that companies under criminal investigation by the SFO will be able to be partners in bidding for provision of services to monitor offenders in the community.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

The point I am making is that the rules, which pre-existed this Government by the way, are very clear: investigation is not the same thing as conviction. We have made it very clear, however, that we have initiated our own investigations. I have warned the hon. Lady before that she is sitting in a very large glass house and that she should think before throwing stones. This is a contract negotiated by her Government and substantially abused, it would seem, during her Government’s term in office. That abuse was discovered by this Government and acted on by this Government. She is hardly in a position to suggest that we have behaved in any way improperly. In any event, I remind the House that both organisations, Serco and G4S, are not on the list of lead providers.

The hon. Member for Hayes and Harlington raised the question of whether those organisations could act in a supporting role. The answer is that we will want to look very carefully not just at the process of corporate renewal those companies are undergoing at the moment but at the specific bids they are making. However, they are not on the list of lead providers. I remind Opposition Members that we were told not so very long ago that the proposals could never work without G4S and Serco, that no one would be interested in bidding. We have a list of 30 different bidders, comprising 50 different organisations at lead bidder level. The Opposition are simply wrong about the level of interest.

John McDonnell Portrait John McDonnell
- Hansard - - - Excerpts

I just want to get this absolutely clear and on the record. What the Minister is saying is that the two organisations that the Serious Fraud Office is investigating will be allowed to bid as part of a consortium for some of these contracts. In addition, I see that also on the list are A4E, which, if I remember rightly, was forced to hand back money to the Government as a result of its failure on contracts—in fact, some fraudulent activity on contracts—for the Department for Work and Pensions. We are opening up this whole network to a group of villains.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

The hon. Gentleman needs to be very careful with his language. He needs to understand that someone being investigated is not the same thing as someone being found responsible for poor conduct. It is important for a Justice Minister, in particular, to recognise that distinction. I assure him that in relation to each and every bid we receive we will look very carefully not just at the bid but at the organisations making the bid. He has heard me say on many occasions that we will not be awarding contracts to any organisation we think unfit to hold them.

Let me make the point, because it has been raised, that all the bidders on our list have experience of either working with offenders or across the wider criminal justice system. This is exactly the broad market that we want to see deliver these services. Below the community rehabilitation company level, we want to ensure that smaller organisations from the voluntary community and social enterprise sectors are able to play a key role in delivering rehabilitation.

Gordon Marsden Portrait Mr Marsden
- Hansard - - - Excerpts

I am grateful to the Minister for being generous in giving way, but does he not understand that the Secretary of State introducing these proposals is the same Secretary of State who did the same thing with the Work programme, from which those voluntary and third sector organisations are, more or less, entirely absent?

--- Later in debate ---
Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

I do not agree with the hon. Gentleman’s characterisation of the Work programme, and anyway, as he might have heard me say more than once, this proposal is not a clone of that programme. It is a different proposal, as it must be, because the criminal justice system is a different entity. It is important to recognise that.

On smaller voluntary organisations, about which people have understandable concerns, the House might be interested to know that along with the 30 lead providers that have passed the competition’s first stage, a further 800 organisations have expressed an interest in playing a role as part of the wider supply chain, with more than 550 voluntary sector organisations among them. In the process of contract management, we will want to manage properly the relationships between the larger and smaller players to ensure that those relationships are sustainable in the long term.

John McDonnell Portrait John McDonnell
- Hansard - - - Excerpts

Let me explain to the Minister why some of us feel strongly about this matter and why some of our language is strong. The Government awarded the contract for unpaid work in Greater London—so this affects our constituencies—to Serco. I will briefly set out some of the problems that have occurred: works shops have been closed, shutting down placements for women high-risk offenders; offenders recently complained to a probation officer in north-west London—my area—that no supervisors were available onsite; and rival gang members have been placed on the same scheme and transported in the same way. In addition, a known sex offender was alleged to be on the same placement as a victim. That is why we are angry.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

I understand the hon. Gentleman’s concern, but I do not agree with his characterisation of Serco’s contract. As he would expect, we have looked closely at its performance under the contract and, again, I assure him that we will look closely at all those who bid for this work. As with all competitions, the decision to award each contract depends on our being satisfied that bidders can meet our standards in respect of quality of service and price and, in this case too, on our being satisfied about the financial risk being taken to reduce reoffending and ensuring good value for the taxpayer. If we are not satisfied that overall bidders can meet our requirements, we will not award them contracts.

Hon. Members have raised the issue of the management of high-risk offenders, so let me make it clear exactly what will be involved. We are creating a new national probation service to manage directly all offenders who pose a high risk of serious harm and any sexual or violent offenders subject to multi-agency public protection arrangements. After an offender has been sentenced, the NPS will make an initial assessment of an offender’s risk of causing harm, and all offenders assessed as posing a high risk of serious harm will be the responsibility of the NPS. For low and medium-risk offenders, CRCs will be required to manage any risk of serious harm that the offender might present and to have appropriately trained staff and robust procedures in place for the management of cases where the risk of serious harm escalates to high during the offender’s supervision. They will also be contractually required to refer cases back to the NPS if they consider that the risk of serious harm might be escalating. In the end, the decision will be taken by the NPS.

New clauses 5 and 13 deal with reports by the Secretary of State to Parliament and the public on the impact of the reforms we intend to make. I want to reassure the House that the Government are already committed to acting in the spirit of those amendments. We are already considering how we can provide information about reoffending rates broken down by CRCs and the NPS. As Members will know, the MOJ already publishes reoffending statistics, not just annually but every three months, broken down by probation trust, prison and upper and lower-tier local authorities. I am happy to commit to the House that, in the future, the reports will break down reoffending rates for the different CRCs and the NPS. Indeed, as a first step, we have already published on the MOJ website a set of indicative figures to show what reoffending rates and cohort sizes in each contract package area would have looked like had the new structure been in place for the 2005-10 period. We are also piloting the justice data lab, about which I have spoken before, which will give providers the opportunity to match the performance of their cohort with something comparable.

On freedom of information, CRCs will be required in contracts to assist the MOJ in discharging its obligations under the Freedom of Information Act—very much along the lines of what my right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith), the Chairman of the Select Committee, outlined earlier, and in accordance with his Committee’s reports and conclusions.

On penalties, we are developing a performance framework that will include financial penalties for services not delivered to time or to quality. Contracts for CRCs will reflect that and, as I have said, the House will be able to see that this is the case when we publish those contracts in draft. I do not want to lose sight—nor should the House—of the major prizes here: first, expanding support for offenders released from short sentences and, secondly, developing a through-the-gate system for offenders released from prison. I think that that commands a broad measure of support.

That brings me to new clause 6, tabled by the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd). I want to reassure him that as part of our reforms there will be a new resettlement service provided in custody for all offenders before their release. This will be tailored to the individual’s needs, but is likely to include support in finding accommodation, family support, mentoring and financial advice. Services in custody will be underpinned by the changes to the way in which the prison estate is organised. That will mean that, in most cases, the same professional can work with offenders in custody and continue their rehabilitation work in the community.

As the right hon. Gentleman would expect, the Ministry of Justice and the National Offender Management Service are working closely together to ensure that the Prison Service is well prepared to implement these proposals. Right from the outset of these reforms, we established a joint working group on this topic that reports to senior officials and ultimately to Ministers. The working group has commissioned an analytical model of prisoner flows through the prison estate. That allows us to test the impact on prisoner flows and locations from implementing the resettlement prison allocation model. Furthermore, I can reassure the right hon. Gentleman that the Prison Service is undertaking a full review of facilities and staffing levels at all proposed resettlement prisons. Together all these things will ensure that the changes we are proposing are deliverable and sustainable, which I think is exactly his concern.

On new clause 4, I understand that the case of Opposition Members is that this is a huge leap in the dark and that no testing of what we are doing is or will be going on. That is not the case. Let me set out to the House the key elements that make up our reforms, what we are doing to test them and the steps we have built in to assess how effectively they are working at key stages of implementation.

First, there are the reforms at the heart of the Bill: the extension of licence and supervision to offenders released from short custodial sentences. There are lawyers among Opposition Members, and they will know, and ought to appreciate, that with a change to the sentencing framework of this magnitude, it cannot be desirable to introduce it one part of the country but not another. To do so would risk postcode justice, with some offenders getting different sentences from others.

To expand supervision to the under-12-month group, as we all say we want to do, we need to make the changes at a national level. That means funding those changes at a national level. The savings to fund the changes come from two sources; first, the efficiencies generated by competing supervision of low and medium-risk offenders and, secondly, the back office savings from moving to 21 from 35 CRCs, along with a single national probation service. Competing services in only one area of the country, if that is what is being proposed—I have heard little detail as to what sort of piloting is being proposed here—would extend supervision to short-sentenced offenders but, in every other respect, we are carrying out extensive local testing of the reforms in no fewer than 14 probation trusts. There is also the testing we are carrying out on the new operating model for the CRCs and the NPS. Those tests will enable us to inform how the new processes will operate once implemented. The first round of tests has already started and will continue over the coming months.

Secondly, there is the important fact that the 21 CRCs that we are creating will remain in public sector ownership for some months after their creation until the conclusion of the competition. This gives us further opportunities to carry on testing and to refine the system. Caseloads will not all necessarily transfer at the point the NPS and CRCs come into being, and we have made it clear to trusts that where there is a case for doing so, we will give greater latitude to allow for caseload transfer to operate more slowly than the people transfer process. That will avoid disruption and the type of dangers that that might create, which Opposition members have described.

Thirdly, there is the testing that we are carrying out of our approach to payment by results. We have consulted extensively on this and there are also pilots under way to test different approaches to payment by results. Opposition members would have us believe that there has been no piloting and that there is no piloting. Neither of those two things is true.

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - - - Excerpts

Will the Minister give way?

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

In just a moment. The pilots that we are already undertaking—HMP Peterborough and Doncaster—are providing significant lessons for our wider reforms. Not only that, but they are engaged in another aspect of the reforms—the move to a through-the-gate system supporting the transition from custody to the community. The difference between them and the other pilots referred to is that these are much closer to the model we seek to pursue.

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - - - Excerpts

I have a feeling that the Minister knows what I am going to ask him about payment by results. If he has done so much piloting and testing and has such confidence in this system, why has he repeatedly refused to tell us what percentage of a contract will be paid regardless of performance, and what percentage the reward element will be? We suspect that it would be very little.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

The hon. Lady keeps asking the same question and she is going to keep getting the same answer: that is called consistency. Let me tell her once again that she will have to wait until she sees the documentation on the invitation to negotiate. What she will see from it is that we are very interested not just in the initial figure, but in how those bidding for this work will develop the amount they are prepared to put at risk over time. That will assist precisely the type of organisations that Labour Members claim they are interesting in helping—voluntary sector organisations that might not be able to put a great deal at risk to start with, but might be able to build on it in the future. We think that is important, and I very much hope that the hon. Lady will support it.

Let me deal with the Peterborough pilot and what it does. It is worth making the point that the interim figures from the pilot—we have been told often this afternoon that there is no evidence for the changes we are making, so let me offer some up—show an 8% fall in reconvictions among offenders released from Peterborough between September 2010 and June 2012 as compared with the preceding period. Similarly in the Doncaster pilot, the sixth-month reoffending rate fell 5.7 percentage points compared with the preceding period. That clearly demonstrates that with targeted support and help aimed at the right people at the right time, we can divert more offenders from a return to crime.

We have built into our plans a set of our own business and system readiness tests, which will be carried out throughout the implementation process. There are therefore a number of things that we are doing to test these reforms—completely contrary to the characterisation of Opposition Members—and we are determined to implement them in a measured and orderly way to ensure that public safety is in no way impacted. That is why we are taking a structured approach to implementation, as I have set out.

Elfyn Llwyd Portrait Mr Llwyd
- Hansard - - - Excerpts

There is no clear read-across from Doncaster and Peterborough because those are voluntary schemes and what the Minister proposes is not voluntary. Those who know better than I do—and, with great respect, as much as he does—will tell him that the figures do not correlate precisely.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

I would say two things to the right hon. Gentleman on that. First, he and his colleagues have busily argued that we should have had more pilots, while some of the pilots we cancelled were less comparable to our reforms than were Peterborough and Doncaster, so he needs to be careful what he is arguing for. Secondly, he is absolutely right to say that the Peterborough and Doncaster pilots were conducted on a voluntary basis. That is because the law does not allow us to impose them on a compulsory basis. That is the law I am inviting the right hon. Gentleman to vote in favour of today, and I very much hope he will do so. Unless we have that law, we will never be able to impose those kinds of provisions on a compulsory basis.

Finally, on the issue of the pace of the reforms—an issue of which others have made much—I want to say two things. First, it is important that those who are employed by probation trusts—my hon. Friend the Member for St Albans (Mrs Main) made this point—understand where they stand. It does not benefit them for us to drag our feet at this point. We need to get on with it so that those people can understand what their own futures hold. Secondly, to reiterate a point made by my hon. and learned Friend the Member for Harborough (Sir Edward Garnier), I make no apologies for the urgency of these reforms: as long as we wait, there will be further cases of reoffending and further victims created. Some 600,000 offences are committed every year by those who are reoffending. That is the problem that everyone here has identified correctly and everyone says they want to do something about. The difference between the Government and Opposition Members is that we know how we are going to do it and they do not have the faintest idea. They do not know how they would pay for it, either. We know that the last Government set out to achieve this, but could not afford to do it within existing budgets. That option is out. We know how we will pay for this; they do not. They have not told us; they should certainly support what we propose.

Baroness Chapman of Darlington Portrait Jenny Chapman
- Hansard - - - Excerpts

The Minister talks of paying for the reform. We worked out that we could not afford it at the time, but he has not presented a single bit of evidence to show that he can afford it: we have been presented with no costings whatsoever.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

I have already explained to the hon. Lady that one of the commercial realities is that we do not disclose such information to those who we hope will bid under the amount concerned, because we want a better deal for the taxpayer. We are very interested in getting a good deal for the taxpayer, and we think that this is the way in which to do it.

The last Government intended to introduce these measures within existing budgets and without contracting out. The hon. Lady opposes contracting out, but we say that that is the way to pay for it. What does the hon. Lady say is the way to pay for it? Or is this, once again, the sort of opportunistic opposition that says “We like the idea, but we do not really want to do it”? I remember—and perhaps the hon. Lady does as well— that on Second Reading the shadow Secretary of State for Justice, the right hon. Member for Tooting (Sadiq Khan), said that if we will the ends, it is very important to will the means. It does not seem to me that the Labour party has done any of that since his Second Reading speech.

By my count, we have engaged in 21 hours of parliamentary debate, and there have been three votes on the principle of our reforms. Opposition Members lost every one of those votes, and they still ask for more parliamentary debate. I wonder how much more of it they feel that they need in order to be persuaded of something that they supported, and legislated for, when they were in government. Now, for reasons of sheer opportunism, they wish to walk away from, and leave abandoned, the victims and potential victims of crime whom our proposals would help.

Question put, That the clause be read a Second time.

--- Later in debate ---
16:06

Division 176

Ayes: 247


Labour: 229
Liberal Democrat: 7
Democratic Unionist Party: 5
Social Democratic & Labour Party: 2
Independent: 2
Plaid Cymru: 1
Alliance: 1
Green Party: 1

Noes: 313


Conservative: 269
Liberal Democrat: 42
Independent: 1

New Clause 2
--- Later in debate ---
Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

I apologise in advance to those who have participated in this interesting and useful debate, because I will not have the chance in the time that is available to go into the issues in the detail that I would ideally like.

Let me begin with new clause 2. I am grateful to the hon. Member for Darlington (Jenny Chapman) for what she has said about the nature of the amendments, and I hope that will curtail what I need to say about them. I pay tribute not just to the hon. Member for Barnsley Central (Dan Jarvis) but to the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) and many others across the House for the extensive interest they have shown in this matter. I know that they will want to interact with my hon. Friend the Member for Penrith and The Border (Rory Stewart) and express their expertise to him.

I agree that our armed forces do a difficult and dangerous job. We should also be clear—I know that no one has suggested otherwise in the course of this debate—that service in the armed forces does not inevitably lead to a life of crime following a return to civilian status. Undoubtedly, however, there are those who struggle with the transition, although, as my hon. Friend the Member for Penrith and The Border said, it is also true that those with a service background are less likely to commit offences than those who do not have such a background. We should also recognise the considerable support that the armed forces, as an employer, offer to those who are returning to civilian life.

The prison and probation services already work with ex-service personnel, and my hon. Friend will want to look at that and perhaps suggest further improvements. We are doing more in prisons to identify veterans as early as possible, and all prisons should now have a veterans-in-custody support officer to co-ordinate and assist in that task. The proposed probation reforms offer an opportunity to do better in that regard, and to encourage all sectors to work together to identify service personnel and offer the assistance that we can. I recognise entirely, as the right hon. Member for Dwyfor Meirionnydd and my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) have said, that a variety of organisations already do good work with offenders, but there is always an opportunity to do more. The review that my hon. Friend the Member for Penrith and The Border has been invited to lead will, I hope, give us that opportunity.

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

The hon. Lady will have to be brief.

Alison Seabeck Portrait Alison Seabeck
- Hansard - - - Excerpts

What I have to say is very pertinent. If there is no enabling clause in this Bill to bring forward any suggestions that come from the hon. Gentleman’s review, how long will it take for the necessary changes to be put in place, and is that something we should be considering?

Jeremy Wright Portrait Jeremy Wright
- Hansard - - - Excerpts

I want to come to the timetable. Without wishing to get into too much detail on these probing amendments, there are deficiencies within them that would require further legislation in any event. I understand the hon. Lady’s point, but I want to answer the question of the hon. Member for Darlington about what my hon. Friend’s review will be covering. First, we will ask him to consider the rehabilitation needs of ex-service personnel convicted of criminal offences and sentenced to a custodial or community sentence, and the current rehabilitation available to them. Secondly, we want him to consider the process whereby ex-service personnel are identified following conviction, and that goes very much to the point that the hon. Member for Blaydon (Mr Anderson) was making. Thirdly, we want him to consider best practice relating to the rehabilitation of ex-service personnel offenders, including evidence of effective interventions in other countries. Fourthly, he should consult with the cross-government military reference group, which already exists, and report to the Secretary of State within six months. That is an important time frame, because we want to ensure that our reforms are informed by what my hon. Friend and those working with him can tell us. We will publish my hon. Friend’s report and place it in the Library of both Houses so that it is available for all to see. If we were to wait for the conclusion of the Bill process, as the new clauses suggest, that would delay the beginning of the review. We do not want to do that as we want to get going as soon as possible and I hope that that will meet with the approval of the House.

In view of what the hon. Member for Darlington has helpfully said, I do not think that I need to go through the deficiencies we believe that there are in new clause 3. I recognise the intent behind it and we very much support that. We want to ensure that the review produced by my hon. Friend the Member for Penrith and The Border can assist us in producing solutions and suggestions that we can make use of in the course of our broader reforms.

Let me say something about new clause 12, tabled by the hon. Member for Hayes and Harlington (John McDonnell). He is right that it is hugely important to ensure that domestic violence is treated seriously and that the programmes he has described are implemented effectively. He knows that those at highest risk of serious harm will in any event be the responsibility of the national probation service, and the NPS will also manage all offenders who are subject to multi-agency public protection arrangements. That will include all offenders convicted of sexual and violent offences attracting a sentence of more than a year and all those whose offending leads them to become registered sex offenders.

On the specifics of the programmes that the hon. Gentleman described, I entirely agree with his enthusiasm for a consistency of approach. I hope I can offer him some reassurance, as such programmes would have to be accredited. Accreditation is overseen, as he will know, by the National Offender Management Service, which ensures that the programmes are evidence-based and have therefore demonstrated their effectiveness in reducing reoffending. The programme requirement will continue to be available to sentencers, and the NPS will have a key role in assessing offenders and providing advice to courts on their suitability for such programmes. CRCs will be mandated to deliver the sentence imposed by the court, and that will include the provision of accredited programmes. All offenders, whether they are managed by the NPS or CRCs, will be able to access accredited programmes and other interventions provided by CRCs.

I hope that the hon. Gentleman is reassured by those points. I understand that he would prefer all those programmes to be delivered by the public sector, but I think that he and I would agree that what is crucial is that the standards and quality of those programmes are maintained. We will achieve that by virtue of accreditation and, of course, the accreditation process will still take place within the public sector.

I am grateful for what the hon. Member for Darlington and others have said about Government amendment 5, which I will move at the appropriate time. I am also grateful to the hon. Lady for raising the issue initially in Committee. I also want to take the opportunity to pay tribute, as she did, to Paul Goggins and the contribution he made not only to the amendment but to the restorative justice agenda over a considerable period of time. There are few who can say that they have contributed more to the agenda than he did. I am grateful to the hon. Lady for her support, and I hope that there will support on both sides of the House for amendment 5.

The final amendment in the group is amendment 7, tabled by my hon. Friend the Member for Shipley (Philip Davies). As he has outlined, the amendment would remove clause 10, which was added in the other place, rightly, by the Government. I am sorry to disappoint him, but it would not be right to remove the clause at this stage. I know that he has a healthy disrespect for consensus, but the fact that almost everybody disagrees with him does not automatically mean that they are all wrong. In this case, I do not think that they are. We should recognise that this is not a sentencing question, as he says that it is—I agree that there is no justification for treating female offenders per se more leniently than male offenders. We are discussing not the sentencing process but the process of rehabilitation that takes place after sentencing. It seems to me that the evidence is clear that how one approaches rehabilitation for female offenders must be materially different, if one expects it to be successful, from how one approaches it for male offenders. That is what clause 10 sets out.

The experience of female offenders is different in a number of ways, whether that concerns the abuse that they might have suffered before committing offences or the rate at which anxiety and depression are suffered. As my hon. Friend said, female offenders have different rates of child care responsibilities from male offenders, so a one-size-fits-all approach will not, in all likelihood, be successful. Let me be clear again that this is not about advocating preferential treatment for women in the criminal justice system or a different sentencing regime for female offenders; it is about ensuring that our reforms remain responsive to offenders’ needs in order to ensure that we turn their lives around and end reoffending.

On that basis, I hope that my hon. Friend the Member for Shipley will see fit not to press his amendment and that Opposition Members will see fit to withdraw new clause 2 and not press their other amendments.

Baroness Chapman of Darlington Portrait Jenny Chapman
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I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

New Clause 4

Piloting of probation reform

‘The Secretary of State may not undertake a national restructure of the provision of probation services until the proposals have first been subject to an independently evaluated pilot scheme, and the results of that evaluation laid before both Houses of Parliament.’.—(Jenny Chapman.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

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17:56

Division 177

Ayes: 244


Labour: 225
Liberal Democrat: 7
Democratic Unionist Party: 5
Social Democratic & Labour Party: 2
Independent: 2
Plaid Cymru: 2
Alliance: 1
Green Party: 1

Noes: 315


Conservative: 268
Liberal Democrat: 44
Independent: 2

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18:10

Division 178

Ayes: 239


Labour: 225
Democratic Unionist Party: 5
Liberal Democrat: 3
Social Democratic & Labour Party: 2
Plaid Cymru: 2
Independent: 1
Alliance: 1
Green Party: 1

Noes: 318


Conservative: 268
Liberal Democrat: 47
Independent: 2

Clause 2
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Chris Grayling Portrait The Lord Chancellor and Secretary of State for Justice (Chris Grayling)
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I beg to move, That the Bill be now read a Third time.

I thank all right hon. and hon. Members who served in Committee and those who have spoken on Report. The Bill contained many excellent measures when it was introduced in the other place last May, but following the House’s scrutiny it returns there with important improvements.

Before I set out the detail of the Bill as it is now, and although words have already been said in the House on this, it would be appropriate to refer to the tragic loss of the Member for Wythenshawe and Sale East, who played an active role in the debate on the Bill. The news we heard at Christmas time was distressing for hon. Members on both sides of the House. He will be much missed. All involved in the Bill send our best wishes to his family.

On restorative justice, the Bill gives many more victims the means to bring home the impact that crime has had on them. On drug testing, the Bill provides for testing after release for a wider range of offenders whose drug abuse contributes to their offending. For offenders who enter the justice system as juveniles but leave as adults, the Bill gives the support they need, either from an adult probation provider or a youth offending team, whichever is best suited to their needs.

I commend the excellent work in Committee of the Under-Secretary of State for Justice, my hon. Friend the Member for Kenilworth and Southam (Jeremy Wright), who has responsibility for prisons and rehabilitation, and who has done a fine job of leading on the Bill to this stage. I pay tribute to those on the Opposition Front Bench for engaging in lively and constructive debate. We may not always agree on the detail, but this has been a constructive debate of the kind that does credit to the House. I also thank the Clerks and the Bill team in the Ministry of Justice for their advice and support.

For too long, the criminal justice system’s efforts to reduce reoffending have been hampered by a major gap in the law—the lack of any statutory supervision for offenders released from short prison sentences. As a result, the most prolific offenders have historically received the least support. The Bill will change that. It will put an end to offenders who cause havoc in our constituencies leaving prison with only £46 in their pockets and little or no support. It is not a surprise that about 60% of them go on to reoffend within a year. It is often easier for them to return to a life of crime than to sort their lives out. The Bill begins to address that huge problem.

The human cost of not providing support for that group is enormously high: 85,000 crimes every year, including hundreds of serious sexual and violent offences. The Bill will significantly reduce the terrible harm that that group of offenders currently causes to victims and communities. It will also help those people to turn their lives around.

The Bill will give 12 months of licence and supervision after release to every offender who is given a short sentence. That will give those working with them the time and professional discretion to deliver the rehabilitation necessary to provide proper mentoring support after offenders leave prison to help them turn their lives around. It will create a light-touch framework for dealing with breach of supervision that allows for sanctions in the community or a warning, as well as a return to custody. It will expand the group of offenders who can be tested for drugs after release from prison to tackle what is a major cause of reoffending, and it will make reforms to the community sentencing framework to create equivalent flexibility and discretion to what we are creating for post-release supervision and mentoring. All of those are sensible and long-overdue reforms. They will, I believe, make major inroads into the current reoffending rate of nearly 60% for short sentence offenders. They should command the unanimous support of this House.

It has been disappointing to see a long list of flawed wrecking amendments from the Opposition to our wider reforms to probation that are the polar opposite of policies that only three years ago they supported, and which they seek to undo even though they emanate from their own Offender Management Act 2007. What they have tried to undo are reforms to the supervision of offenders that will harness all sectors, bringing in the right expertise from the voluntary, community and private sectors to reinforce the work of the public sector. The reforms will bring new ideas and new approaches to rehabilitation and will deliver more for less for the taxpayer. Crucially, they will finally deliver a proper through-the-gate resettlement service for offenders leaving custody, so that support starts well before people leave prison and follows them through the gate in a seamless way. They will create a new, single national probation service dedicated to managing offenders who pose the highest risk to the public, working alongside 21 community rehabilitation companies drawing on the best of other sectors.

I am happy to say, too, that following intensive negotiations before Christmas, in principle an agreement has been reached with the trade unions on the terms and conditions for staff transferring to the new organisations. We are currently awaiting ratification by the formal probation collective negotiating machinery later this month. The unions have written to all their branches, making it clear that local trade disputes are suspended pending ratification, after which the disputes will be formally withdrawn.

The great irony of all this is that the Opposition’s approach to reducing reoffending when in government was very similar, recognising that organisations from a range of sectors have something to offer offenders. I remind the House once more of what Lord Reid said on this topic when Home Secretary:

“The Secretary of State, not the probation boards,”—

as they were then—

“will be responsible for ensuring service provision by entering into contracts with the public, private or voluntary sectors. With that burden lifted, the public sector can play to its strengths while others play to theirs.”—[Official Report, 11 December 2006; Vol. 454, c. 593.]

That is precisely what these reforms do. I could not agree more with him. That is why the Offender Management Act gave wide powers to commission probation services from across all sectors, yet only a few years on it is disappointing to see that the Opposition have returned to many of their roots and want to forget that they ever passed the 2007 Act.

In spite of that, the right hon. Member for Tooting (Sadiq Khan) said on Second Reading:

“we agree with the broad objectives of the Bill.”—[Official Report, 11 November 2013; Vol. 570, c. 671.]

I very much hope that this remains his position, and that right hon. and hon. Members on the Opposition Benches will join us in giving the Bill a Third Reading tonight. It is a Bill about giving rehabilitation to a group of offenders who desperately need it. It is about reducing the 85,000 crimes committed against individuals and communities across the country. It is about giving those working with offenders much greater freedom to pursue what works in stopping offenders, without all the constraints that can often exist within the public sector and without central diktat. It is about taking action for the victims of the 85,000 crimes committed by those short sentence offenders every year. Last but not least, it is a long overdue offer of rehabilitation to offenders who have been let down by the rest of society.

The Bill is designed, no more and no less, to fill a gap that is wholly unjustifiable in our criminal justice system. We cannot go on for year after year with people who are most likely to reoffend released from prison with £46 in their pocket, and with nowhere to go and no one to support and mentor them. More often than not, they simply return to the same streets and the same people, and reoffend all over again. The Opposition might not like our approach to these reforms, but in government they looked themselves at trying to do the same, and decided they could not. If they understand the importance of the step we are taking, they should at least give us credit for following a line that we believe could make the difference we have all sought for so long, and I urge the House to give the Bill its Third Reading tonight.

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Jeremy Wright Portrait Jeremy Wright
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The right hon. Gentleman is right that time was short, but I got the chance to say that it would take six months for my hon. Friend the Member for Penrith and The Border (Rory Stewart) to report back to my right hon. Friend the Secretary of State.

Sadiq Khan Portrait Sadiq Khan
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I am grateful to the Minister for setting out the six-month time scale.

No one can disagree with the objective of extending supervision and the accompanying help to all those released from prison. In this regard, I want to place on record our admiration for the massively important work that professional probation staff around the country do to rehabilitate some of the most troubled individuals while keeping the public safe. Much of the public do not realise the work of the probation service, and it is a sign of its success that the Government will leave to it the most high-risk offenders. It is welcome that offenders released from sentences of less than two years will be subject to at least 12 months of mandatory supervision in the community, but it is multi-national companies with no track record in this area that will be responsible for this, rather than the probation service, which we know can do the job very well.

It has always been an anomaly that short-sentence prisoners—the group with the highest risk of reoffending —are the ones left to their own devices when released from prison. As has been mentioned and the House knows, the previous Labour Government tried to address this with custody plus, but financial constraints prevented it from being implemented. The House also knows, from Paul Goggins’ Second Reading contribution, that by contrast the Government have no idea how much the extension of supervision to those serving 12 months or less will cost. Their impact assessment skirts around this, saying that

“the cost will be dependent on the outcome of competition”.

The Government have done nothing to update the House on this and so the plans remain uncosted.

The Justice Secretary and the Minister with responsibility for probation say that extending supervision will be paid for by privatising probation. But if that is the case, one would assume that the Justice Secretary and his officials must have figures to support it. It is hardly surprising that experts and others are suspicious about why the Government will not come clean on the numbers. The Justice Secretary has linked the cost of extended supervision to savings delivered by privatising probation, so the Bill is directly related to the wider probation privatisation plans. The two issues simply cannot be separated, which is one of the reasons new clause 1 was inserted by the other place.

The changes that flow from the Bill are untried and untested and will see supervision of serious and violent offenders fragmented. I must give credit to the Justice Secretary, whose plans have created an impressive coalition of those opposed to them: probation officers, chief executives and chairs of probation trusts, The Economist, his own officials and, most recently, the chief inspectors of both probation and of prisons, who questioned the system’s ability to cope with his plans. The chief inspector of probation warned that the plans would lead to

“an increased risk to the public.”

The Economist called the plans “half-baked.” The Ministry of Justice’s own risk register warns that there is an 80 per cent. risk of an unacceptable drop in operational performance, which when dealing with offenders can only lead to higher risks to public safety.

But still the Justice Secretary pushes ahead, with the same arrogance and dismissal of expert advice that led to the disaster that is the Work programme—a Work programme so bad that someone has more chance of still being in work after six months if they do not go on it.

Chris Grayling Portrait Chris Grayling
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We may be going slightly off track, Mr Speaker, but may I just point out that the Work programme is doing about twice as well as the predecessor programme that we inherited from the last Government?

John Bercow Portrait Mr Speaker
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That is totally irrelevant to the Third Reading of the Bill.

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Elfyn Llwyd Portrait Mr Llwyd
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I hope I do not suffer a sex change, which with this moustache would be awful to see!

When we enter the legislative processes, we usually start with a lot of unanswered questions. What distinguishes the process for this Bill is that we have almost as many such questions now as we had at the very beginning. The Justice Committee took evidence very recently, and experts in the field are asking some fundamental questions about how the procedure will work and how safe it will be. I do not know; obviously, I do not profess to know all the answers.

We have had an interesting debate or two during the Bill’s passage so far. I pay particular tribute to the Under-Secretary of State for Justice, the hon. Member for Kenilworth and Southam (Jeremy Wright)—he is the man steering the Bill through the House—for attempting to engage constructively with the process at all times. I am sure that, on occasion, that has been as difficult for him, as it has been for Opposition Members.

Let me also associate myself, warmly and sincerely, with the tributes that have been paid to our friend and colleague Paul Goggins. He played a large part in the Bill’s progress, speaking as he did with great knowledge.

I welcome the provisions for the rehabilitation of female offenders and for the extension of restorative justice. I also welcome the parallel process—if I may call it that—of over the weekend appointing the hon. Member for Penrith and The Border (Rory Stewart) to prepare a report on veterans. That is all to the good. Overall, however, I still feel uneasy, because there are a great many unanswered questions. I do not pose the following question in expectation of an answer today, but I should be pleased if the Lord Chancellor could respond to it in due course.

During our debates, including those that have taken place today, the Government have prayed in aid the Peterborough social impact bond pilot. The original published figure for crime reduction was 6%. The Under-Secretary of State said on Radio 5 Live that it was 12%. In Committee, the Justice Secretary said that it was 20%, and today, in the Chamber, the Under-Secretary of State said that it was 8%. All four figures cannot be right. It would not be a bad idea for us to be given a single figure, because that disparity underlines my unease about some of the facts and figures that have been cited. I do not think that we should be prodding around in the dark when it comes to such a potentially dangerous area of law.

Chris Grayling Portrait Chris Grayling
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I hope that I can help the right hon. Gentleman. Two sets of statistics have been published. The comparators are between the absolutely numerical reduction at Peterborough and the reduction among a comparable group at a prison elsewhere in the country. The 20% figure, which is the highest, refers to the number of further crimes committed by the cohort, while the lower figures show the overall reduction in the absolute rate of reoffending—the binary rate. I should be happy to write to the right hon. Gentleman and set out the figures in detail, but I can tell him now that the experience of mentoring at Peterborough has been very encouraging indeed.

Elfyn Llwyd Portrait Mr Llwyd
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I thank the Justice Secretary for his response, and I am sure that he is right about mentoring. I think he will find in due course, when the hon. Member for Penrith and The Border reports to him, that it is key to any improvement in dealing with the rehabilitation of ex-service people, and I am sure that that experience will translate into other forms of rehabilitation.

I do not want to elaborate on the position that I have taken, or, indeed, on the position that anyone else has taken. We have had a good-natured tussle over the past few weeks; I only hope that some of our worst fears are misplaced, for the sake of the British people.