Pensions Act 2011 (Consequential and Supplementary Provisions) Regulations 2014
Lord Bates Excerpts(9 years, 10 months ago)
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Lord Bates
That the Grand Committee do consider the Pensions Act 2011 (Consequential and Supplementary Provisions) Regulations 2014.
Relevant document: 3rd Report from the Joint Committee on Statutory Instruments
A further, and more detailed set of regulations, The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014, deal with consequent changes to secondary legislation. These were laid before Parliament on 3 July 2014. Both sets of regulations will come into force at the same time as the clarified definition in Section 29 of the Pensions Act 2011.
The clarified definition of money purchase benefits will ensure that only benefits which cannot develop a deficit in funding can be money purchase benefits. Noble Lords may be familiar with the decision of the Supreme Court in 2011, in the case of Houldsworth and another v Bridge Trustees Ltd, that certain benefits which could develop funding deficits or surpluses could still fall within the definition of money purchase benefits.
While this decision concerned two specific types of benefit structure found in a particular scheme, it created widespread uncertainty in the pensions industry. That was because the decision could also be interpreted as covering other types of benefits and place these outside the protection of the regulatory framework for benefits that are not money purchase, even though they had the potential to develop funding deficits.
Section 29 of the Pension Act 2011, which has retrospective effect, and the supporting regulations remove that uncertainty. Where in the past decisions have been made by schemes that are in keeping with the clarified definition, the retrospective effect of Section 29 will ensure they remain valid, despite the fact that those decisions may be incompatible with the Supreme Court’s judgment. Where decisions have been made that are inconsistent with the clarified definition there is transitional provision in the regulations so that schemes will not need to unpick past decisions. Going forward, however, it is important that the trustees and managers of schemes know what action they need to take in respect of benefits they have previously treated as money purchase, but which do not meet the clarified definition. That will ensure that their members are protected.
In particular, these regulations amend Section 84 of the Pension Schemes Act 1993 to provide an alternative method for trustees or managers to revalue certain types of benefits known as cash balance benefits. The cash balance method allows the sum available for a cash balance benefit for a deferred member to be revalued by any method that is applied to the benefits of active members where it cannot be calculated by reference to the salary.
The regulations also include decisions made by the board of the Pension Protection Fund that relate to benefits affected by the clarified definition as matters that are reviewable under Schedule 9 to the Pensions Act 2004. That will ensure that during the transitional period, where the board has exercised discretion as to whether to treat benefits as money purchase benefits, that decision can be challenged and subject to a formal review process.
The Government have worked closely with the pensions industry to identify the type and number of schemes that will be affected by the clarified definition of money purchase benefits. The majority of schemes will be hybrid schemes—that is, they will contain a mixture of money purchase and non-money purchase benefits. Hybrid schemes make up about 2% of the estimated 40,000 private occupational schemes in the UK which include money purchase benefits—that is, approximately 800 schemes.
I commend the Pensions Act 2011 (Consequential and Supplementary Provisions) Regulations 2014 to the Grand Committee and ask its approval to implement them.
Lord Bates
My Lords, a number of questions have been asked. I have counted 19, which compares to the five that were asked when these regulations were scrutinised in the other place. I am sure that that is a reflection of the quality and expertise, if not the viewing habits, of the members of the respective committees. I confess that at one point last night I was not sure whether the scoreline reflected the football match I was watching or the judgment of the Supreme Court which happened to be open on my lap at the same time.
Lord Bates
At half time.
There are many questions and I want to try to address as many of them as possible to get the responses on the record for people to scrutinise. First, my noble friend Lord Kirkwood asked how many schemes were affected by the clarified money-purchased benefits definition. It has not been possible to quantify the exact number of the affected schemes as trustees and scheme managers are only required to make detailed reports to the pensions regulator on benefits that they consider to be non-money purchase. Schemes are not required to provide detailed reports of benefits that they consider to be money purchase, so any information held by the regulator here is self-reported by the scheme on a voluntary basis.
We consulted extensively on this point, and the regulator has also tried to secure additional data. However, stakeholders have been unable to share with us the detailed scheme-level data because that information is sensitive and restricted. A small number of consultation responses indicated the size of the scheme and the potential costs involved. However, the information is not representative of all the schemes affected, and cannot be reliably used to produce an aggregate estimate. The DWP continues to work with the regulator to identify and communicate with effective schemes to establish more comprehensive data on how many schemes are to be affected.
My noble friend Lord Kirkwood also asked whether with the new definition the Government are adding costs and increasing the administrative burden on the schemes. I can assure my noble friend that that is not the case. Although the clarified definition is retrospective to 1 January 1997, in most cases the regulations modify the retrospective application of regulatory legislation so that schemes will not need to look back at events where benefits could fall into a category affected by the Bridge judgment or the clarified definition in Section 29. The clarified definition will mean that the member benefits are protected. The transitional measures will bring schemes into compliance, are proportionate and bear in mind the risks and the burdens on members, schemes and employers. We believe that that is the sensible approach, precisely because the Government want to minimise the additional requirements on schemes without jeopardising the protection of the scheme’s members.
My noble friend also asked why the Government insisted on a change of definition, and asked whether the Supreme Court decision was wrong. The Supreme Court judgment concerned two specific scheme benefit types: benefits which provided a guaranteed pot, otherwise known as cash balance benefits, and pensions in payment from schemes derived from money purchase benefits, both of which the court decided could be money purchase. The decision meant that some guaranteed benefits from outside the regulatory regime conflicted with the Government’s view of what constituted a money purchase benefit.
Why are the regulations not together? The department’s advice was that both sets of regulations would be debated together subject to the affirmative procedure. However, following comment from the Joint Committee on Statutory Instruments, the department decided to split the regulations. However, we expect that because both sets are closely linked together, the discussion will encompass transitional arrangements for both regulations.
I have addressed the question of why there are two separate regulations, but I will add one additional point. It has been necessary to divide regulations in that way because the primary legislation under which the regulations have been made—Section 33 of the Pensions Act 2011—provides a different parliamentary procedure for regulations which amend primary legislation. I appreciate that that procedural requirement has not made discussion and debate in this area easier, but I am happy for this debate to encompass both sets of regulations, as it has already done. On why the clarified definition of money purchase benefits is retrospective to 1 January 1997, the Government have decided on retrospection to that date so that the effect of the clarified definition coincided with the inception of key pension protection legislation. Provisions of the Pensions Act 1995 largely came into force in April 1997, hence the chosen date, but retrospection was set up on 1 January 1997 as the financial assistance scheme eligibility began for schemes which started winding up from that date. However, since the Pensions Act 2011 was passed, we have no evidence that any of the schemes in this position would have been affected by the Bridge Trustees judgment or Section 29.
The noble Baroness, Lady Drake, asked whether there was a pre-existing requirement to have benefits valued consistently with legislative requirements in the past. Some schemes may have valued in a way that was not consistent with those requirements. Evidence from the consultations showed that members’ benefits which here are affected by Section 29 and the regulations might have been revalued by the application of notional interest or investment return. It is possible that this would have been less than revaluation in accordance with statutory requirements. However, we had to balance the protection of members against avoiding administrative complexity for schemes. Evidence suggested that the cost of applying revaluation arrangements would outweigh the benefit to members.
The noble Baroness, Lady Drake, also asked what the new cash balance method was. The new cash balance method is based on an existing flat rate method, which requires deferred members to receive any increases that they would have received if they had still been active members of the scheme. She also asked why there is no requirement to revisit the scheme if it is wound up. If the scheme is still being wound up at the time that the regulations come into force and is underfunded, trustees will be required to revisit an employer debt before the regulations come into force. If the scheme has completed winding up when the regulations come into force, there is no scheme in existence to unwind; all the assets of the scheme have been dispersed. The regulations therefore do not require a scheme that has completed winding up to be unpicked.
A question was asked about why schemes newly eligible for the Pension Protection Fund will not be treated as such until 1 April 2015. That date marks the beginning of the first full levy year after these regulations are planned to be in force. The delay will allow the schemes time to correctly determine whether they are eligible for the fund and to carry out the necessary valuations on which the first levy bill will be based. It also ensures that schemes will not be required to pay the levy in respect of past periods. It would not be fair to other levy payers to provide protection for an earlier period for a scheme that has not paid any levy.
The noble Baroness, Lady Drake, raised the question of flipping. The department’s consultation exercise did not identify any scheme that will become newly eligible for the Pension Protection Fund that has a sponsoring employer likely to become insolvent in that small window of time. If such an event does occur, the Government will give consideration to the most appropriate way of protecting scheme members. It would therefore not be fair to other pension protection levy payers to protect the members of a scheme in respect of a period of time when the scheme had not paid into any levy.
The noble Baroness, Lady Drake, asked whether once the regulations are in force it would still be possible to change the scheme benefits without member consent from one form of non-money purchase arrangement to another with a lesser benefit promise. A change of this nature—a detrimental modification under Section 67 of the Pensions Act 1995—would still be subject to a requirement that the value of the members’ rights or benefits was not less than before the change. If this requirement were not met, the change would be subject to being made void by the Pensions Regulator.
The noble Baroness also suggested that there were insufficient data for the Government to be able to conclude that there will be a negligible effect. Section 67 will continue to apply except in very limited circumstances where schemes have changed benefits from cash balance to money purchase. This circumstance is catered for in the negative set of regulations, which require the actuarial calculation between cash balance and benefits collected in the money purchase schemes to be maintained. In addition, the trustee approval and reporting requirements must have been satisfied.
The point was made that retrospection makes these regulations too complex. The clarified definition, when in force, will be retrospective to 1 January 1997. Retrospection to January 1997 is needed to protect the position of schemes that had taken decisions in accordance with the clarified definition in Section 29—that is, not in accordance with the Supreme Court’s judgment—but for schemes that have acted in accordance with the judgment, these regulations modify the application of regulatory legislation with retrospective effect and for the transitional period where necessary. The regulations cover the many different types of pension arrangements that currently exist and which could have been affected by the judgment of the Supreme Court in respect of Section 29.
Baroness Drake
My Lords, this may be an appropriate moment to intervene because I want to push the Minister on a couple of points. I have been trying to anticipate when he would be coming to the end of his remarks.
Perhaps I may go back to two points. First, Section 67 rights under the 1995 Act are pretty important rights that get people rather excited. The concern I was trying to express was that this seems to set the precedent that you can provide retrospective protection for schemes that have breached Section 67 rights and obligations. What level of assurance can the Minister give that this is not a precedent that could be used for undermining the strength of Section 67 in the future by giving retrospective protection?
Secondly, in terms of how this retrospective protection applies where schemes have breached Section 67, I should point out that the Government do not know which schemes have done this. They have just heard about this from the industry, so they are giving a sort of blanket assurance without knowing the number and type of breaches of Sections 67. If they do not meet the actuarial equivalence terms, it is not clear whether they will have to go back and redo it.
Thirdly, if they did it inadvertently, they probably did not do any actuarial equivalence exercise at the time. Is it therefore being said that they can do one with hindsight now, and can look back and say, “Had that been applied at the time”? It is quite important to get clarity on this Section 67 point, because there are lots of disputes and case law around it. It tends to get people who are interested in members’ benefits quite excited if there is an attempt to compromise it in some way.
On the flipping schemes, which are not protected in terms of access to the PPF until April 2015, I note that, as was said, if you have not paid the levy then the liability if your employer goes insolvent should not go to other levy payers. However, the issue is that it is a government responsibility, because the Government are obliged under the EU directive. I was looking for as firm an assurance as possible that, if an employer with a scheme that has to flip from DC to DB goes into insolvency before or up to April 2015, the Government will not walk away from giving some kind of protection to those schemes with DB benefits the members of which may now be caught outside the protection regime; hopefully there are none or, if there are, they are very tiny.
Lord Bates
I am grateful for those additional points. Let me try to answer them as best I can. It might be helpful if I wrote to the noble Baroness and shared those responses with the Committee. I realise that they are important issues.
To respond to the specific issue of Section 67 rights, the appropriate regulation is Regulation 8(3)(b). The Government believe that the protection is not undermined, because there must have been an actuarial equivalence. If they do not meet the actuarial equivalence requirements, they will have to go back and unpick them. In fact, the regulations introduce a new protection for members, which underpins the benefits. However, as I said, I shall seek further guidance on that and write to the noble Baroness and other Members of the Committee.
These draft regulations make modifications to existing primary legislation to provide supplementary and consequential measures to support the coming into force of the clarified definition of money purchase benefits in Section 29 of the Pensions Act 2011. I hope that I have set out for the Committee the rationale for these regulations and have responded to the matters raised. I commend these regulations to the Committee.
Jobseeker’s Allowance (Supervised Jobsearch Pilot Scheme) Regulations 2014
Lord Bates Excerpts(9 years, 10 months ago)
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Lord Bates
That the draft regulations laid before the House on 4 June be approved.
Relevant documents: 2nd Report from the Joint Committee on Statutory Instruments, 2nd Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 1 July.
Jobseeker’s Allowance (Supervised Jobsearch Pilot Scheme) Regulations 2014
Lord Bates Excerpts(9 years, 10 months ago)
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Lord Bates
That the Grand Committee do consider the Jobseeker’s Allowance (Supervised Jobsearch Pilot Scheme) Regulations 2014.
Relevant document: 2nd Report from the Joint Committee on Statutory Instruments, 2nd Report from the Secondary Legislation Scrutiny Committee
Lord Bates (Con)
My Lords, these regulations were debated in the other place on 30 June 2014, and I am satisfied that they are fully compatible with our obligations under the European Convention on Human Rights.
With the labour market growing stronger and increasing numbers of companies able to hire workers, everybody who is able to should be able to share in this recovery by being supported to find, and stay in, work. Over the last four years, the Government have extensively altered the landscape of our employment support services, both in Jobcentre Plus and throughout contracted employment provision.
With the introduction of universal credit and the claimant commitment, there has been a cultural change in the expectations of claimants and a conscious shift towards full-time work search. It is right that we expect claimants to do all they reasonably can to find work, and this can be a full-time activity. At the same time, we are committed to doing what is best to support harder-to-help claimants to prepare for and find work. The Work Programme has been able to transform the lives of those furthest from the labour market. Performance is continually improving, and more than a quarter of jobseeker’s allowance claimants with sufficient time on the programme have spent at least three or six months in employment.
As part of our continuing commitment to supporting people off benefits and into work, the department is committed to continue testing what works best to assist jobseekers who are the hardest to help. This is why the Secretary of State for Work and Pensions announced the supervised jobsearch pilots in October 2013. These pilot schemes will test what works and what does not. We will ask providers to deliver the pilots in five areas across England from autumn 2014 until spring 2015 and will be testing how best to deliver extra support to those claimants who need it. The aim of the pilots is to explore the impact on claimants of daily attendance, supervision and support for job searching. In terms of outcomes, we will look at how different interventions affect jobseeker motivation and confidence, as well as measuring the impact on claimants leaving benefits and moving into employment.
Participants will be referred to a supervised jobsearch for 13 weeks. We expect participants to move off the scheme within this period as they find work, but it is important to consider that these are claimants for whom finding work may take significantly longer than for others, and 13 weeks will give providers a reasonable amount of time to work with them to ensure that the support is effective. This approach will have a positive impact on moving claimants closer to, or into, employment. It will also give us the opportunity to add to our evidence base of what works for those who are among the most difficult to help.
Currently, claimants not yet referred to the Work Programme receive the Jobcentre Plus offer: a flexible and tailored menu of support led by work coaches who can, among other interventions, refer claimants to outside training and provision to address barriers. Claimants at risk of becoming long-term unemployed are supported by contracted providers through the Work Programme. These providers provide support to claimants, making use of local provision and services, and using a “black box” approach, with payment by results for getting people into sustained employment.
We always knew that some people would be returning from the Work Programme. Those who have participated in it and remain on benefits afterwards then receive a period of more intensive support from Jobcentre Plus. Since June 2013, claimants have been referred to the mandatory intervention regime, where advisers have more time to spend with claimants with complex needs. From April 2014, we have rolled out the help-to-work package, which added two other elements of support, on top of the mandatory intervention regime, for Work Programme returners. These were daily work search reviews, which take place over a period of up to three months, and community work placements, where claimants undertake work of community benefit for up to six months. These additional measures have given the clear message that we will not write anyone off and will continue to provide increasingly intensive support the longer that someone is out of the labour market.
The supervised jobsearch pilots will complement these measures we have taken in the current journey by maintaining momentum and motivation at a critical point in the claim. Pre-Work Programme claimants will be referred when they are three months away from a two-year mandatory referral to the Work Programme. This will apply to post-Work Programme claimants following six months of intensive support.
These regulations will allow the department to select and refer certain suitable claimants to participate in the pilots. Claimants will then attend the pilots for 35 hours each week for a 13-week period. Claimants will have to attend for fewer than 35 hours per week if they have any restrictions agreed in their claimant commitment. During this time, they will receive expert support and supervision from providers. This might include help with jobsearch, job goals, covering letters, job application skills and interview techniques. However, the exact provision will vary depending on the claimant’s needs and the individual provider running each pilot scheme.
We already expect claimants to do everything they reasonably can each week to give themselves the best prospects of securing employment. This covers not just work search but a whole range of activity to improve employability. The pilots are in line with this but, of course, if an individual cannot work full time—for example, because of agreed caring responsibilities—then we would expect them to participate in supervised jobsearch only on a part-time basis. Those selected for these pilots will at all times have access to facilities and staff to encourage and guide them along their journey.
None of the claimants eligible for these pilots will be new to the benefits system and will have spent the months prior to referral having their jobsearch monitored and skills levels gauged by Jobcentre Plus work coaches before reaching the point of being considered suitable for this extra support. Everyone goes into a new activity with different skill levels and learning styles, and looking for work is no different. Some individuals will have just emerged from jobs feeling confident in what they need to do and having contacts in the right places. Others may need more comprehensive help, support and guidance in order to seek out opportunities and prepare to present themselves again to prospective employers. This is what we are looking to provide through the supervised jobsearch pilots.
In order to inform the design of the pilots, we ran a supervised jobsearch test bed in Wolverhampton Jobcentre from December 2013 to February 2014. The test bed explored some aspects to inform these pilots, including confirmation that Jobcentre Plus is able to support this system. As a result of what we learnt from Wolverhampton, we have incorporated several elements into the pilots’ design, including: induction sessions to set clear expectations and assess individuals’ abilities; basic IT training; integrating group sessions and one-on-one support to retain claimants’ concentration and engagement; and supporting participants to focus on tailored, quality job applications.
It is right to expect people who are able to work to do all they can to find a job. This Government are committed to supporting people in this ambition. We know that our programme of support works well for most people. Two-thirds of people leave jobseeker’s allowance within the first 12 months, which is the most common work programme referral point. The claimant count has fallen for 19 consecutive months. We know there was support for the very long-term unemployed trailblazer, which ran from November 2011 to July 2012, but for those who reach long-term unemployment and are among the hardest to help, increasing the intensity of support improves their chances of moving into work. We know that jobseekers see the switch to the claimant commitment, with its focus on full-time job search, as something that will genuinely increase their chances of finding employment, while at the same time taking into account their personal circumstances. These pilots will test what can be achieved if we bring this knowledge of what works—tailored support, intensity and full-time activity—together in a way that is sensitive to individual needs.
I conclude by saying that we believe these pilots have potential to improve the employment prospects of those who are struggling in their search for work. That can be done through increased jobsearching ability, heightened confidence, more effective interaction with others and improved punctuality and time-keeping. The scheme has the potential to help people into sustained work, enabling them to increase their independence and build better lives for themselves, their families and communities. I beg to move.
Lord Kirkwood of Kirkhope (LD)
My Lords, I am grateful to my noble friend for the lucid way in which he introduced these important regulations. I declare an interest as a non-executive director of the Wise Group in Glasgow, which works in JSA service provision.
I am grateful also to the Secondary Legislation Scrutiny Committee, which looked at these regulations. It does excellent work; it is hard to overestimate the value it brings to some of these very complicated schemes. The committee came to the conclusion that it was not impressed. There are two issues here: the policy behind the pilot and the structure of the pilot—whether that is worth the candle. I want to rehearse some of its concerns, because they are self-evident to anybody who has studied these things. Pilots are very useful; they have played an important role in the past in developing policy and I am sure the Scrutiny Committee accepts that. But how do we expect to get real value out of something that starts on 6 October and ends on 15 April, when we are dealing with the possibility and the opportunity that these regulations provide, as the Minister rightly described, in helping people into sustainable work? In my book, sustainable work is a 12-month contract, with support that a jobseeker can take advantage of from being on benefits into that sustained job outcome. I have severe doubts, as does the Scrutiny Committee, that we will get anything of value in what I think is insufficient time. Why are we stopping on 15 April? Obviously, there is an election. I can see that coming—I am not that stupid. However, it is more important to get this policy right than to have niceties about purdah or any other technicality of that kind. I have serious doubts about what value we will get from the shortness of the period of the pilot. Indeed, client groups of 3,000 are not that useful, either. Before the debate started the Minister helpfully handed us a long list of exclusions of clients who cannot be included.
We have a very limited pilot here, and I think we could have had a much more useful opportunity to test some of these things. We have very minimal information about what will actually happen. Jobsearch is something that, if people have been in the Work Programme, should have been deployed for two years—and intensively, I would like to have thought. Now we have supervised jobsearch, which comes six months after two years so it will be really intense. The new system of Universal Jobmatch—which I have seen; it is very good—takes only about half an hour to prospect for jobs across the United Kingdom, because it is so efficient. This is a full-time commitment. People are being mandated to come in for 35 hours a week. How many hours will they spend over a Universal Jobmatch machine? They can get the full value out of it in half an hour, in my experience. It would help me to understand the value of these pilots better if the Minister could flesh out what would be done over this extended period of 13 weeks at 35 hours a week. What on earth are they going to do? We are told at paragraph 7.19 that:
“On day one, the provider must: assess the claimant’s skills and experience”,
et cetera. Then we are told:
“In week one, the provider must: carry out a number of activities with the claimant … On an ongoing basis, providers must: review and update the claimant’s portfolio, CV and action plan”.
These are things that I always assumed would be taken account of in the Work Programme anyway. Now they are doing it full time, for 35 hours a week for 13 weeks. I am in favour of providing support for people, but I do not know how that intense job-searching activity will look different from what they are supposed to have been doing for the previous two years.
I am interested in the pre-Work Programme group, because I do not understand where it came from. There is a logic to involving people who have been in the Work Programme. In any commonsense view, if someone has been unemployed for two years despite being in the Work Programme, in which they get a lot of help, it would suggest that more than their CV needs fixing. I do not know if it is possible to translate those people into the Troubled Families Programme; I hate that term, but the programme is interesting. It takes a holistic view, going beyond the front door of the family home, looking not just at the CV but at everything that is going on. Somebody who has been unemployed for two years despite the Work Programme’s assistance has got some serious issues behind the front door of the family home. It would be much more sensible for some of these people to at least be offered the option of taking a different route from that of looking at a Universal Jobsearch machine for 35 hours every week. That would drive me crazy.
The Scrutiny Committee says that there is scant information about the cost-benefit ratio for this. We have been told that there is a cap of £5,000 per head. I understand that if this is to be competitively tendered for, the department has got to be a bit canny in determining costs for contracts which will be bid for. However, Parliament requires a little more information, particularly given the department’s straitened circumstances, with departmental expenditure being squeezed so ruthlessly.
In passing, the whole-time staff equivalent costs are being substantially reduced. I looked at the annual report which came out a couple of days ago. In 2012, there were over 100,000 whole-time equivalent staff in the DWP. It fell to 98,000 in 2013. It is now 88,000. We are laying extra layers of responsibility on to a smaller cadre of hard-pressed staff. These job coaches will have their work cut out to do the work they already do on top of this pilot. The Minister was helpful in his introductory remarks, but any more information we can have about what will actually be done during this intensive period of job searching would certainly help me a lot.
I am looking at the Autumn Statement 2013, where the Chancellor said that,
“the Government will invest £700 million over 4 years in a new Help to Work scheme”.
He went on set out what that would do. He said it would,
“require all JSA claimants who are still unemployed after 2 years on the Work Programme to undertake intensive, often daily, activity to improve their employment prospects”
Is this part of that? Is this part of the £700 million four-year programme that the Chancellor set out in the Autumn Statement? I would like to know about that because, if it is, it would make it possible to place this pilot in a wider context. I must sit down. I have just realised how long I have been talking for.
My view about conditionality and support for getting people off welfare into work is captured accurately in the study that Paul Gregg did in 2008 for the previous Government. If the Minister will promise to read it at the weekend, I will say no more about it. That is a deal that he had better accept because, otherwise, it will take me another 20 minutes to explain its detail.
There are some opportunities here. I understand that. I am not against sanctions. I think sanctions should be restricted to a much smaller band of people than the 800,000 or 900,000 that we are headed towards. I am prepared to look at this. I know the Explanatory Memorandum states that the results of the evaluation will be published. I hope the Minister will confirm that on the record because that would give it some solidity and be an assurance. I hope this pilot produces something useful. I have great doubts that it will, but I understand why the Government are taking the powers they are taking. I wish the pilot well and I hope it works.
Lord Bates
I begin by thanking my noble friend Lord Kirkwood and the noble Baroness, Lady Sherlock, for their scrutiny, which compared and contrasted interestingly to the sparks flying and a lot of heat and not much light that took place in the other place when it considered these regulations. I totally accept their spirit of genuine inquiry and the need to flesh out the important issues and details, which we need to get on to the record. At the same time, I ask them to recognise the fact that what we are bringing forward here is a pilot, which in its nature is going to have areas of ambiguity that will be resolved as it takes effect and is rolled out. So a tolerance of that would seem fair.
Another thing should be said and needs to be put on the record. I accept that there is criticism of the Work Programme—but the noble Baroness will accept that there was criticism of the New Deal and even of the Flexible New Deal. The IPPR report came out just last week; it is not normally a champion of government social policy, but it actually said some very positive things about the way in which the Work Programme is going. Of course, 294,000 outcome payments have been paid to providers on the scheme, which suggests that something is happening in the labour market. In addition, at the risk of slightly straying into the territory of the other place, we need to put it on record that there is a changing employment environment. We have employment at record levels in this country and we seeing the number of vacancies increase quite dramatically; it is up 100,000 at 600,000. We are seeing a lot of people getting off benefits and into work; unemployment is down 27%, while youth unemployment is down 33% and long-term youth unemployment is down 39%. So in the interests of balance, one ought to put that record out there, to say that what Her Majesty's Government are doing in trying to help people is not without effect. Therefore, it is progressing.
I turn to the specific points. First, I recognise the sterling work of the Secondary Legislation Scrutiny Committee, which looked at these regulations and commented in a fairly detailed way. It asked that the Explanatory Memorandum be enhanced and updated with a lot more detail, and the department did that. That Explanatory Memorandum was published last week ahead of the scrutiny which is now taking place in Parliament.
The noble Baroness raises a very interesting point about whether there ought to be a mechanism. Whether it is for the House or the Secondary Legislation Select Committee, there should be something that says that when a report makes a recommendation there should be some mechanism for ensuring that people who have a close interest in this—certainly, perhaps, the spokesmen of the respective parties or groups—are systematically made aware. I will take that back to the department, and we will certainly try to respond to it.
Many points were raised. My noble friend Lord Kirkwood and the noble Baroness, Lady Sherlock, referred to many of the same issues, and I will work my way down them. On why the power is for 13 weeks and whether that is too long or too short, this is a new initiative and that is why we are testing it. The evaluation will help inform us about whether it is the right length of time to refer claimants to this more intensive activity. The length of the programme gives sufficient time for claimants to adapt and benefit from the enhanced jobsearcher’s routine. It also gives providers a reasonable amount of time to work with claimants to ensure that the support is effective.
I was asked why claimants will be on the programme for a maximum of 13 weeks. We will track them for as long as it takes after they have left the programme, typically for at least six months, to establish the impact of the pilot. I confirm that the pilot is being run on a randomised control basis, which is regarded as the gold-standard methodology for evaluation. I confirm that we will publish the results of the evaluation.
At this point, I turn to my colleagues behind me because the noble Baroness made a very interesting point when she focused on selection and randomised control and asked about the predominant methodology. The pilot we are talking about is a randomised control trial. The type, category and number of individuals will be the overriding methodology that will be used.
Baroness Sherlock
Something is either a randomised control trial or it is not. I am going to try to help the Minister here. It is not impossible that what the department is trying to do is select people to go into the pool, and then people from that pool of those deemed to be eligible will randomly be chosen to go into the programme or a control group. If that is what the department intends to do, will the Minister explain how people get to be in the selection pool in the first place? If I have got that wrong, he will of course correct me.
Lord Bates
The normally impassive officials behind me are nodding sagely to say that that is indeed the methodology that has been adopted. Advisers will have discretion on those who are eligible for the pool. Let me make a little further progress and perhaps some further inspiration will be on its way.
I was asked how claimants can possibly look for work for seven hours a day and what a typical day will look like. The Select Committee, the noble Lord, Lord Kirkwood, and the noble Baroness, Lady Sherlock, all asked this. A typical day will be tailored to meet the needs of each individual participant. While there are generic skills that underpin jobsearch activity, participants will have tailored work plans that address their specific needs. They may include work on IT skills, interview techniques and job application skills, which do not just involve visiting the jobsearch website, looking at this person who has been on the Work Programme and has applied for up to 100 jobs without success for two years, and asking what are they lacking that would ensure that they get off benefits and into work, which is the outcome that we all seek. The Government have introduced the principle that looking for work is a full-time job, as has been said.
Lord Kirkwood of Kirkhope
One of the experiences driven into my brain while working with the Wise Group is that there is a huge amount of ignorance about what is happening to some of these claimants. Some of that is because the letters sent to them are couched in language that is difficult to comprehend. Will the noble Lord pay special attention to making sure that the Queen’s English is used and that people understand exactly what they are being invited or required to do, and the consequences? The group that the Wise Group works with in Glasgow is often completely at sea about what is happening to them.
Lord Bates
We can certainly look at that. One of the reasons why it needs to be tailored, rather than just having a letter generated, is that a lot of those people will have literacy or numeracy problems. They cannot comprehend it, whatever form of English it happens to be delivered in. Therefore the ability to talk that through with someone in person, so that they can explain it at the meeting while giving claimants the formality of the letter, would seem to be the right way to do that.
In terms of how we will ensure quality of service throughout the contract, the majority of the payment made to providers will be based on service delivery. The standards of service delivery will be monitored throughout the contract and payment will be related to providers consistently meeting the required minimum service levels outlined in the specifications. In terms of what will happen if the work coach ignores the claimant’s view that they are not suitable, at the point of referral claimants will be able to make representations if they feel that a pilot will not be appropriate for them. The work coach would take this into account before making a referral. Where the work coach decides that a referral should nevertheless be made, the normal appeal route will be open to the claimant who refuses to attend and is sanctioned as a result.
In terms of varying periods and whether they will all be 35 hours, everyone will be attending for 35 hours unless they are not able to do so because of restrictions. That is the point that was made earlier. We acknowledge that people are caring for other people; for instance, there are parents caring for young children and they might have other responsibilities that are entirely legitimate and need to be built around. Again, that is the reason why it is a tailored and individual approach.
Baroness Sherlock
I thank the Minister for answering a great many of my questions. I shall flag up one or two that I think he may have missed. One is the question of childcare and travel costs. Can he confirm that those will be available up front—that people will not have to find the money to pay for childcare and then reclaim it from the provider? On the same point, will the Minister clarify the answer he has just given to the noble Lord, Lord Kirkwood? Is he saying that an individual judgment will be made about whether somebody does not need to do 35 hours because they have other needs or responsibilities, or is he—as I suspect—saying that if somebody is not required to be available full time for work, in a comparable manner they will not be required to be available full time for this programme? Perhaps the Minister can clarify that for the record.
I do not think that he answered the point about whether somebody was engaged in doing something at the suggestion of the Child Poverty Action Group, or if somebody is already engaged in doing something that in fact makes it more likely that they will get a job. With that, can he clarify that anyone doing voluntary work will therefore not be covered by the programme, because that is what the list seems to say?
Finally, will he clarify his answer about the randomised control trial? One of the biggest problems that can befall a randomised control trial is if the selection pool from which people are chosen is itself biased. One of the difficulties in having what is essentially a subjective judgment made by coaches about referring people into the pool is that it does not matter how rigorous the randomisation is from the pool if entry into the pool itself is not biased. Can the Minister say whether the Government have been thinking that through? Do they have any concerns in that direction?
Lord Bates
I am grateful to the noble Baroness for saying that there are only one or two issues to cover, which suggests that I have worked my way through the list. I feel as though I am doing well, or, rather, the wonderful officials behind me are doing well.
The point about childcare is a serious one and I want to get my reply on the record. As regards childcare travel guidance, extra costs incurred by claimants will be provided. This is not currently published but has been stipulated in the terms and conditions. The provider is encouraged to consider claimants’ circumstances when awarding this and, if possible, to do this in advance. Good reasons are always considered before applying any sanction, and whether travel costs had been issued would be taken into account.
As regards how the randomised control trial will work, for the pre-Work Programme strand of the pilot, the Jobcentre Plus adviser will first identify suitable claimants, after which they will be randomly allocated to a treatment or control group. I think that I have mentioned that already. The 35-hour period is currently part of the claimant commitment, so that would apply.
As regards the Child Poverty Action Group’s view on charitable or voluntary work, perhaps the noble Baroness would be good enough to send us more information on that group’s recommendation on that.
Baroness Sherlock
That group simply asked whether, if somebody was already doing something that made it more likely that they would get a job than by going on the programme, that would do. I am sure that it was not thinking about work experience at a high-level cultural institution, for instance, but I give that by way of example.
Lord Bates
I thank the noble Baroness for that very helpful further intervention, which enables me to confirm that those engaged in voluntary work will not need to participate. A work coach will consider any other activity in which the claimant is engaged before deciding what action is taken. I again thank my noble friend Lord Kirkwood of Kirkhope and the noble Baroness, Lady Sherlock, for their scrutiny. I hope that this debate has been helpful. I believe that it will make a positive contribution to understanding how we can help some of the hardest to reach people in our society and give them employment, hope and a future.
BBC: EU Coverage
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Lord Bates (Con)
My Lords, I will respond initially to the last, important points made by the noble Baroness, Lady Jones, by reaffirming the Government’s commitment to the operational and editorial independence of the BBC. That should be reflected in everything that we do, including when responding to debates of this nature. Although it is tempting to get into the detail—about which we all have an opinion—that independence, objectivity and, indeed, the BBC’s charter obligation to deliver impartiality is the subject which is under debate here: whether it is actually fulfilling that commitment to impartiality under its charter obligation. I rather liked the introduction from the noble Lord, Lord Pearson, when he referred to bias being, like beauty, in the eye of the beholder. With the sweet coincidence of the ordering of the speeches, we then went from the noble Lord, Lord Pearson, to the noble Lord, Lord Teverson, and then to my noble friend Lord Borwick. I felt we got a wide range of the different perspectives that we have on this.
The noble Baroness, Lady Jones, raised another point about the thirst, particularly among young people, to learn more about the institutions and more about Europe. I think that point is particularly pertinent at the time when we are marking the 100th anniversary of World War 1. I certainly commend the work which the BBC is doing to highlight what was, in a sense, the genesis of the institution which we are now discussing.
The impartiality of the British media, particularly with regard to its coverage of controversial topics, has been a subject of great debate in recent years. We have talked about the report by the noble Lord, Lord Wilson of Dinton, which was published in 2005 and predicated on the basis that there was then going to be a referendum. The BBC wanted to engage with the issue of what its position should be if a referendum actually took place.
We know that a referendum did not take place. That deals with one of the points raised by the noble Lord, Lord Giddens, and others about the position of the BBC and whether it should have a role to play in a forthcoming referendum. The answer is that it most certainly should, and the form of that will need to be decided.
We should not diminish that record of impartiality. Opinion polls carried out by MORI show that 76% of adults regard BBC News output as accurate. That is not to be complacent, but it is a trusted source, and the reason that the BBC must take its duties incredibly seriously. It is also the reason why, I guess, the BBC Trust decided to ask the noble Lord, Lord Wilson, to undertake the review in the first place. It was followed up in June 2007 by the safeguarding impartiality review. In July 2011, there was a review of the BBC’s governance operations in relation to impartiality, and in July 2013 there was a review of breadth of opinion, which was raised by a number of noble Lords. As the centrepiece of the UK’s public service broadcasting landscape, the BBC bears a central responsibility for providing balanced accounts of such matters as part of its mission to “educate, inform and entertain”. This is an important element.
My noble friend Lord Borwick made an important point about competition. I am sure that it will not have been lost on the BBC that while in certain age groups it is gaining market share for its news services, among the young it has been losing market share. Part of that could well be the wide range of additional outlets and news sources, primarily social media, which are now available, and there needs to be a response to that.
The BBC’s fifth public purpose, as set out in the current charter, is,
“bringing the UK to the world and the world to the UK”,
by building global understanding of international issues and broadening UK audiences’ experience of different cultures. There is clearly a read-across here to balanced, impartial coverage of EU matters and the duty of impartiality. The noble Lord, Lord Borwick, raised an interesting fact about the newspaper preferences of the BBC, but it has an absolute duty. The charter review will provide the appropriate context to consider all aspects of the BBC’s scope, its purposes and its activities. The current charter expires on 31 December 2016, and the Government have yet to announce the process, timing and scope of the review.
In 2005, the noble Lord, Lord Wilson, led an independent panel to assess the impartiality of BBC coverage of the European Union and make recommendations for improvement where necessary. I accept the point made by my noble friend Lord Teverson that things have changed quite a lot since 2005. Indeed, there is no cross-party consensus about the future. That is not just a UKIP point but a Conservative point, a Liberal Democrat point and, I am sure, a Labour point too. Markedly different views are now being presented to the electorate, not least at the present time, about how Europe should progress.
My noble friend Lord Borwick asked about the licence fee and the BBC Trust’s role in securing value for money. The BBC Trust is directly accountable to licence fee payers. Among its duties is to exercise rigorous stewardship of public money. That is clearly a very important role which we expect it to take seriously in future discussions. That will certainly be part of the ongoing review.
The noble Lord, Lord Pearson, focused on three points raised by the noble Lord, Lord Wilson, who raised 12 points in his report. Overall, there was a view that the BBC had demonstrated some cultural and unintentional bias and that its coverage of EU news needed to be improved and to be more clearly impartial. To address this, the panel recommended that the BBC needed,
“a strategy, action and changes, led from the top”.
As part of those efforts to address the breadth of opinion cited in its EU coverage, the BBC appointed its first Europe Editor, Mark Mardell. That was a point that was raised and welcomed by the noble Baroness, Lady Jones, and the noble Lord, Lord Giddens. Mark Mardell was appointed in May 2005 to focus on the evolving role and nature of the EU and its impact on the UK. In an interview with the European Scrutiny Committee in November last year, witnesses from the BBC described the appointment of the Europe Editor as:
“The biggest single thing, which made a real impact on air”.
In addition to this, the BBC has introduced new training resources and a mandatory course for journalists on reporting Europe. It has also commissioned regular reviews of specialist subject areas. A number of noble Lords referred to the interest in the debates that took place between Mr Farage and my right honourable friend the Deputy Prime Minister, which were watched by more than 3 million people on the BBC. That was something that, again, sparked discussion and debate in the country, which must be welcomed.
I turn now to other reports on impartiality and European coverage. Since 2005, a multitude of other reports have been published by the BBC Trust and the European Scrutiny Committee to assess the progress on the BBC’s impartiality in EU coverage. Most recently, the review of the breadth of opinion reflected in the BBC’s output, commissioned by the BBC Trust and led by Stuart Prebble, was published in July 2013. I accept that the noble Lord, Lord Pearson, made some strong remarks about the direction of that report. I think that it is creditable to the BBC that it takes its responsibilities so seriously that it sets up these reviews from time to time. It was encouraging to see that an increase between 2007 and 2012 in the breadth of opinion provided on the UK’s relationship to the EU had been identified. I am sure it was not nearly enough for the noble Lord, Lord Pearson, but some progress had been made. Overall, the report noted that, although continuous improvements could be made,
“the BBC goes to great lengths to provide a breadth of opinion”.
This point about breadth was the point made by my noble friends Lord Dykes and Lord Teverson and the noble Baroness, Lady Jones; we should talk not just about breadth but also about the depth of coverage. That is a criticism which the BBC has accepted and is seeking to respond to.
The more literature we have in that area and the more views that we have, the better it will be. This includes contributions such as the book by my noble friend Lord Dykes. I have not yet read it, but given that it has now had a citation and endorsement from Professor Giddens—the noble Lord, Lord Giddens—we will all, of course, rush to the library to obtain a copy, although perhaps my noble friend will be wishing that we rushed to Amazon to do so instead.
Qualitative polling undertaken by Ipsos MORI on behalf of the BBC in May 2013 found that, when asked which source of news people would trust for being the most impartial, 49% would choose the BBC, compared with 14% for ITV and 3% for Channel 4. It is important to highlight as part of this debate the fact that, under the terms of the charter and agreement, the BBC must do all it can to ensure that controversial subjects are treated with due accuracy and due impartiality in news dealing with public policy or matters of political or industrial controversy. This is also in line with section five of the Ofcom broadcasting code. The BBC has an invaluable role in providing information to licence fee payers to enable them to form their own views about a particular issue. To “educate” and “inform” are two-thirds of the Reithian values that form the heart of the BBC’s mission.
In conclusion, I thank again the noble Lord, Lord Pearson, for raising this important issue, and all noble Lords who spoke in this debate. We have much to be proud of in the way that public service broadcasters in Great Britain cover news impartially and accurately. To date, this has allowed the UK to build arguably the best broadcasting industry in the world, bringing benefits to the UK public and across the globe. Given that the BBC is central to this broadcasting landscape, and the unique way in which it is funded, it is essential that the BBC retains the public’s trust as an impartial purveyor of news and programming and of balanced coverage of all matters. It is critical that it continues to do this.
Health and Safety Executive
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Lord McKenzie of Luton (Lab)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper and in doing so draw attention to my interest in the register.
Lord Bates (Con)
My Lords, Martin Temple’s triennial review of the HSE concluded that the functions performed by the Health and Safety Executive are required and that it should be retained as a non-departmental public body. He made recommendations concerning potential efficiencies and opportunities to raise income, and the Minister for Disabled People has asked the HSE to work on these. Other recommendations require further consideration, and we will respond more fully later in the year.
Lord McKenzie of Luton
My Lords, I thank the Minister for what I take to be a positive reply. The Minister will be aware that the report refers to the “nearly universal praise” for the HSE, which it considers a reflection on its,
“impartiality … independence … professionalism and technical competence”.
What assurances can the Minister give that any requirement placed on the HSE to increase its commercial income will not impair those vital attributes, and what more can the Government do to promote the excellence of the HSE and the UK health and safety system?
Lord Bates
I am grateful to the noble Lord for that question. I think that Martin Temple pointed out exactly that. He paid tribute to the work of the HSE, which it does day in, and day out, in maintaining safety standards. One reason why this country enjoys such high standards of health and safety in the workplace is because of the work of the HSE. It is of course necessary to ensure that its work is efficient and effective. For that reason, he suggested that the HSE focus its efforts on major hazard sites rather than those areas of relatively low risk. That is what it has been doing over the past couple of years.
Lord German (LD)
My Lords, one of the recommendations in the report is to delink the need to prop up the budget and fines for intervention. We have been here before with speed cameras, where there was a suspicion that police forces were increasing their budgets by overuse of speed cameras. How will my noble friend learn lessons from that, and from the recommendation in the report that fines for intervention should not be linked to propping up the budget of the HSE? What steps will he take to implement that?
Lord Bates
It is a good question. The point is that fines for intervention are where visits and inspections have taken place and problems have been found which have resulted in prosecution. In those circumstances, the view of the HSE and of the Government is that the taxpayer should not have to pick up the bill; the person who has not been fulfilling the obligation to implement the rules correctly should pay the price.
Baroness Donaghy (Lab)
My Lords, the Minister will be aware that the Health and Safety Executive played a key role on the Olympic construction site. Our country should be very proud that not a single person died as a result of that building work. Following on from the question of the noble Lord, Lord German, the independent report states that the link between funding of the regulator and income from fines is a “dangerous model”. How will the Minister ensure that the HSE’s integrity and independence will be protected?
Lord Bates
That is a very good point. I certainly endorse what the noble Baroness said about the Olympics. There were 46,000 people working on that site and to have not one fatality is exemplary. That gives me the opportunity to point out that that is one thing that the UK does extraordinarily well. Fatalities in the workplace are much lower in the UK, at 0.71 per 100,000 workers, compared to an equivalent rate of 0.81 in Germany, 1.57 in Italy and 2.49 elsewhere. That is an important record, showing that the HSE is working correctly with contractors in major projects, and this will ensure that that work continues in future.
Baroness Sherlock (Lab)
My Lords, one question raised in discussion of the review was the desirability of increasing commercial income for the HSE. Notwithstanding the Government’s view of that, will the Minister take this opportunity to assure the House that they have no plans to privatise the HSE?
Lord Bates
Yes, I can very quickly do that. There is absolutely no question of privatising the HSE, but Martin Temple, himself a businessman with a distinguished background in engineering and manufacturing, recognised that there were great opportunities, because the Health and Safety Executive is genuinely admired around the world. A lot of people are coming to look for good-will advice as to how to operate their systems, and I think it is absolutely right for the taxpayer that the HSE ought to be free to exploit those commercial opportunities to enable it to continue doing its excellent work around the UK.
Culture: Cinema
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Baroness Kidron (CB)
My Lords, I am a working film-maker, a former trustee of both the BFI and the UK Film Council, and a trustee of multiple arts organisations recorded on the register.
I want to address just three points. Last year, the arts community greeted with howls of outrage Culture Secretary Maria Miller’s assertion that we must focus on culture’s “economic impact”. She said that,
“there is no doubt as to the real social and educational case for public investment. But that is never going to be the argument that wins the day”.
She has continued to insist on privileging an economic measure. This value-driven approach misunderstands both the multiple values of art and how the sector operates. The creative economy is a complex ecosystem where the most valuable flowerings may gestate in long and very unpredictable ways.
No number of focus groups or spreadsheets could predict the mainstream success of strip-teasing steelworkers in “The Full Monty”, women’s football in “Bend it Like Beckham” or, indeed, the plasticine chickens in “Chicken Run”. Art seeks not to replicate that which has sold well in the past but to break new ground. Even the most commercial films rely on having actors, directors and technicians who have learnt their craft and rejuvenate their creativity by making subsidised art movies or working in other artistic mediums.
Misunderstanding cultural values, which are crucial to any development of the economic strength of the cultural or entertainment industries, risks undermining the very thing that the Culture Secretary is hoping to promote. The current crop of successes that saw the UK film industry dominate this year’s awards circuit were, of course, commissioned before the coalition was in power. Films take a long time to conceive, to write, to fund, to make and to get to the public. We will have to wait another decade before we can truly say whether the current policy has made the sector risk-averse or has undermined the original and non-commercial sparks that brought the likes of Steve McQueen, Danny Boyle, Alfonso Cuarón and Clio Barnard to prominence.
Last year in this Chamber my noble friend Lord Clancarty questioned the Competition Commission ruling on the Cineworld/Picturehouse merger. Again, by failing to recognise the distinction between an art cinema and a mainstream multiplex, the Competition Commission jeopardised art cinemas in Aberdeen, Bury and Cambridge, despite audience-building and supporting British and specialist cinema being key tenets of the review of the noble Lord, Lord Smith. It was an absurd decision in which there were no winners. Will the Minister now undertake to sit down with the Competition Commission to seek a way that allows the commission to attach a cultural measure when deciding on competition issues in the cultural industries? I am asking not for the Cineworld decision to be overturned, or for an inappropriate representation to an independent body to be made, but for Her Majesty’s Government’s convening power to be used to engage all stakeholders in a process that would deliver cultural breadth and depth of provision of British and specialist cinema right across the UK.
The Cultural Learning Alliance is just one of dozens of organisations to express dismay that for the first time in more than 20 years no mention of film has been made in the new national curriculum. It states:
“This is a real blow, and one that will make it extremely difficult to ensure that young people have the literacy skills to succeed in a world dominated by these forms of communication and expression”.
I am the founder of a charity that pioneered the educational use of film for school-age children, and I am now a founding trustee of Into Film, a new organisation charged with delivering the BFI’s 5 to 19 education offer in schools. We have a community of 8,000 clubs and the 300,000 weekly members are shown to have better communication skills, improved literacy, both verbal and written, and better educational outcomes overall.
We are a nation whose identity is inextricably bound up with the commercial films we produce, from James Bond and “Gregory’s Girl” to “Kes” and “Oliver Twist”. The noble Lord, Lord Stevenson of Balmacara, does not demand that we consider the value of the commercial industry, which of course contributes £4.6 billion to GDP and provides more than 100,000 jobs; he presents us with a more difficult question about how we might support cinema culture. Implicit in the Question is that culture is different from commerce and that we must support it.
Film is a meeting place of drama, music, literature, technical skills and art. It provides a gateway to other cultural experiences. It is a route for young people to discuss almost any subject. It comes in multiple languages from all corners of the earth, offering a window into our ever-more globalised world. In short, it delivers cultural and knowledge capital, which is desperately needed by the young. Ninety-two per cent of teachers running clubs say that they see the educational benefits, 99% of teachers say that it improves communication skills and 78% of teachers say that it positively impacts on reading and writing. Film is an explosive tool in educating the young. Head teachers need the imprimatur and explicit support of the Department for Education confidently to put film at the centre of the curriculum. Teachers need to be taught to use it effectively and creatively as part of their training. The educational success of using film as a key component of education, with its ability to improve literacy, behaviour and critical thinking, needs formal recognition and protection into the future. Young people are the citizens, audience and film-makers of the future. Her Majesty’s Government handsomely support the creative economy. They need both in voice and in deed now to support the cultural economy. They are not separate but synonymous.
Disabled People: Independent Living Fund
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Lord Bates (Con)
My Lords, first, like all noble Lords in this debate, I pay tribute to the noble Baroness, Lady Campbell of Surbiton. My noble friend Lord Cormack was absolutely right in his tribute to her as a shining example in this place, and he gave me the injunction to listen to her with care and respect. That is absolutely what we will do in the way in which we are responding to the debate, and in seeking to provide the assurances that are being sought.
We have heard about the valuable role that the Independent Living Fund has played and continues to play in enabling severely disabled people to live independently. The noble Baroness, Lady Campbell, talked from her personal experience, and the noble Baroness, Lady Grey-Thompson, referred to the feedback that she had received from people who had written to her. The reality is that the Independent Living Fund had been a significant success. The noble Lord, Lord Low, referred to the popularity of the fund when it was instituted in 1988. Over the past 26 years, the number of people whom it has helped has gone up from 300 to 20,000 at its peak, and now down to around 18,000. These changes mean that the features that have contributed to the ILF’s success are now, or very soon will be, available within the mainstream system across the UK. It is also the case that the ILF has always benefitted from the relatively small proportion of the severely disabled people who use the mainstream adult social care system, numbering about 1.3 million. Indeed, that broad care for disability is something that the noble Lord, Lord Kirkwood, referred to as coming from an enlightened Administration in the shape of the much missed Lord Newton. I served in that department as a PPS—although, I have to say in these times, not in a nefarious way at all—in supporting Nicholas Scott as he was taking forward that excellent piece of legislation, the Disability Discrimination Act 1995, which was really a sea change in the way that disabled people were treated and respected in our society.
On 6 March the Government announced the closure of the ILF on 30 June 2015. Funding will transfer to the English local authorities and the devolved Administrations. Local authorities in England will take direct responsibility for meeting the eligible care and support needs of ILF users. The devolved Administrations can decide how they wish to support ILF users in Scotland, Wales and Northern Ireland.
Significant points have been raised and we want to look at them very carefully. In relation to the reference group, which the noble Baroness, Lady Campbell, referred to, the ILF is committed to working in partnership with local authorities to ensure a smooth transition for users. The transitional arrangements now being implemented were developed from an extensive engagement between the ILF and a wide range of stakeholders, including local authorities across the UK, charities and other organisations representing disabled people, and ILF users themselves, 2,000 of whom responded to the consultation. Therefore, we feel that the consultation has been carried out and we do not think that such a group is necessary at this time.
The subject of visits was raised by the noble Lord, Lord McAvoy. Before June 2015 each user will be visited by the ILF, accompanied wherever possible by a local authority social care worker. These visits are designed to review the individual’s current support package to ensure a joint understanding of the outcomes being secured and to address concerns about transition. Once the programme of visits is complete, the ILF will contact local authorities to ensure that they have all the necessary information about every individual user in their area.
A number of noble Lords, particularly the noble Baroness, Lady Wilkins, mentioned the court case. Because of that uncertainty, a programme of visits to each and every one of the 18,000 people who are going to be affected had to be halted for a time as the closure of the fund was quashed. That has now restarted. There is no doubt that the level of anxiety understandably felt by those people who do not have a support plan begins to reduce once a plan is in place. We believe that that trend will continue as we move forward.
In terms of the essential nature of how we interact with the local authorities, a code of practice is now in place between the local authorities and the ILF. It has been drawn up with the Local Government Association. One of the reasons why—in fact, probably the reason why—we are now contemplating removing, in the words of the noble Lord, Lord Low, this anomaly and trying to bring it into the mainstream is that the quality of care provided at a local level by local authorities, on all the evidence I have seen, has risen dramatically over the past 25 years, to a point where that can be now considered. I will come on to the central part of that, which is the Care Bill. But there is that code of practice, which sets out the criteria for those visits to be undertaken with support and, crucially, that it is the duty of the local authority to ensure that the support plan is in consultation with a current member of the Independent Living Fund. If they are not satisfied with that, then it is also the duty of the local authority to signpost them in the direction of where they can receive advocacy and support in order to address their concerns and make sure that they actually get the help that they need, delivered in a seamless way.
I acknowledge the depth of concern shared by many users about how this decision could affect them. Some are concerned that they will not qualify for local authority support or that reductions to their care packages will mean that they cannot secure the independent living outcomes that they now achieve. This was a point raised by several noble Lords. It is right to address some of these issues in more detail. Local authorities already have a statutory duty to fund eligible care needs. The Care Bill will introduce a new national minimum-eligibility threshold for England in order to receive support from the Independent Living Fund. The two are very much part of the package.
The majority of current users, around 15,200, must have local authority funding of at least £340 a week. It is reasonable to assume that this group have support needs that mean that they will qualify for support from their local authority. In fact, that point, which my noble friend Lord Cormack raised, about having the minimum guarantee, I think is contained in that minimum eligibility and also in the code of practice. It is also right that the Government consider the position of all disabled people. The noble Lord, Lord Low, referred to the point about the slightly anomalous position about disabled people deciding about the Independent Living Fund—rather, the position of all disabled people when deciding how best to distribute the available resources—but does not believe that continuing with the current two-tier system is the right approach. It is becoming increasingly difficult to justify the present arrangements.
On the position for those who applied to the ILF before 1993, the noble Lord, Lord McAvoy, referred to group 1 and group 2 cohorts who are treated slightly differently. The position of those in group 1, ILF before 1993, some 2,800, is less straightforward. Some of this group may well have needs that fall below the new minimum threshold and will not therefore qualify for local authority support. Most of them, however, do have some local authority support, with almost 27% getting more than £600 a week. This suggests that many will be eligible for local authority support once the ILF closes. The noble Baroness, Campbell, and others mentioned the UN Convention on the Rights of Persons with Disabilities. We do believe that it is compliant with this and are taking great care and careful note of this. The noble Baroness also questioned why a spokesman for the Department for Work and Pensions was responding to the debate rather than the Minister for Health and Social Services. Of course, for historical reasons, the Minister for Disabled People—we talked about the late Sir Nicholas Scott—has always resided within the Department for Work and Pensions. He has, however, a collective role in co-ordinating all responses across Government for and in the interests of disabled people.
Legislation coming into force from April 2015 aims at promoting greater independence and will increase choice and control for disabled people. The Care Bill represents the most significant reform of social care in England in more than 60 years. Local authorities will be required to take individual well-being into account when making decisions about care and support, including the outcomes we want to achieve. The Bill will give users of the social-care system the right to a personal budget, which so many members stress as being critical and instrumental in giving a sense of independence and dignity to disabled people. Broadly similar legislation has come into force in Scotland, and will come into force in Wales in 2015.
I want to respond to the comments made by the noble Baronesses, Lady Hollins and Lady Wilkins, and others about funding. Social care expenditure has not fallen by 20%—£2.7 billion—since 2010-11; £2.7 billion represents the savings that councils have had to make to meet demand. Spending has been roughly flat in cash terms over the period, and the latest survey shows that councils are expecting a small increase in expenditure over the next year.
The noble Baroness, Lady Wilkins, asked about statutory guidance, as did the noble Baroness, Lady Campbell. The Government’s position on how local authorities manage their finances is clear: they should have the freedom to meet their statutory responsibilities flexibly and responsively in line with local priorities. I hear the point made about a postcode lottery. It is a phrase which rolls off the tongue, but I am sure that the noble Baroness, who knows these areas very well, would acknowledge that there are wide differences in the take-up of the Independent Living Fund between local authorities. For example, wide differences in take-up have always existed between England and Scotland. We believe that through establishing the code of conduct, through having those personal support plans and, most crucially, through instigating the minimum-eligibility criteria that the Care Bill upholds, these dangers will be minimised.
The noble Baroness, Lady Hollins, asked about monitoring and evaluation. We said in the equality analysis which took place following the court decision that we are committed to monitoring the impact of all policies relating to this area. I give a personal undertaking to relay to my colleagues at the Department for Work and Pensions the concerns raised by noble Members of this Committee today to ensure that we have the right monitoring system in place and that those who need this vital help continue to receive it.
Apprenticeships
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Lord Bates (Con)
I beg to move that the House do now adjourn for a further five minutes.
Employment
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Lord Bates (Con)
My Lords, I understand that, by convention, the mover of the Motion is given the opportunity to be uninterrupted and then can respond to questions in the wind-up.
Lord Freud
My Lords, that is three percentage points higher than the figure of 72.3% that was reported yesterday. That gives a feeling of the factors that we have been looking at over the past seven or eight years. As I said, that extremely challenging outcome implies that any employment strategy would need to target all of the inactive groups. Noble Lords will be pleased to see that, since 2007, the number of people on inactivity benefits has fallen by around half a million. The economy is now recovering and creating new jobs, making this a once-in-a-generation opportunity to help those who have been trapped on welfare to return to work. It is in that light that I would ask noble Lords to view the Government’s welfare reform ambitions. I beg to move.
Olympic and Paralympic Legacy Committee
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Lord Bates (Con)
My Lords, it is a great privilege and honour to respond to this debate on behalf of the Government. The report which we are looking at began on an extremely positive note. On page 1, it states:
“The hosting of the London 2012 Olympic and Paralympic Games was an outstanding success. The Games exceeded expectations and confounded sceptics by giving the world a spectacular example of what the United Kingdom is capable of doing, delivering a major event to time and to budget”.
That sense of optimism trickles down through the report, although not of course completely, all the way to the end. It was a great privilege for me—I declare an interest—to serve under the chairmanship of the noble Lord, Lord Harris of Haringey, whom I congratulate on securing this debate and on the extremely high quality of the report which he has produced and on the way in which he conducted that Select Committee. Whoever the PE teacher was who accused him of wilful lack of effort, all of us who served on that committee would never voice for a second anything other than to recognise his incredible hard work and the way in which he guided the committee through that process to come to some very robust and rigorous conclusions. I pay tribute to that.
During the debate this evening we have had some extraordinary talent and ability, with immense insight and understanding of the world of sport. I think of the contributions of the noble Baroness, Lady Grey-Thompson, and my noble friend Lord Holmes of Richmond, who, if they were countries, would between them probably top most of the gold medal tables at the Paralympic Games. There was also our distinguished Olympian, my noble friend Lord Moynihan.
I want to begin on that note, by paying tribute to the Winter Paralympic team members, who recently returned from their triumphant performance in Sochi. Their tally of six medals, including a gold for Kelly Gallagher and Charlotte Evans, represents the best ever performance by a team at the Winter Paralympics and took them into the top 10 of the medal table. That in itself shows that if the legacy of London 2012 is not alive and kicking then certainly it is alive and curling and skiing. That should hearten us. It also answers to a degree one of the points made by my noble friend Lord Stoneham, who wondered whether we could actually match or go beyond what was done in London. It suggests that perhaps our high expectations in Rio are not so unfounded because of the work that has been done there.
I also recognise that those of us who enjoyed so much the coverage of the Olympics and Paralympics in Sochi just recently did so by courtesy of the broadcasters, who conveyed that into mainstream terrestrial services. I particularly pay tribute to Channel 4—I know the strong connection of the noble Baroness, Lady King, there.
The recommendations in the report focused mainly on two of the five legacy themes, namely sport and healthy living, and the regeneration of east London. But it also touched on aspects of the other three, namely economic legacy, communities legacy and—cutting across each of the other four—the legacy of the Paralympic Games. The Government and Mayor of London gave each of the report’s 41 recommendations very careful consideration. Of course, I heard some criticism of the response from the Government and the Mayor of London as perhaps lacking in any sort of original or new statements, but restatement of a policy if it is there is not necessarily a bad thing.
Legacy has been at the heart of this project since the very day on which the bid was first submitted. It was all about legacy. Therefore, we should not be surprised, nor do ourselves down, because the structures and forethought that went into the Games also went into the legacy, and those processes are quietly continuing to deliver their results. The noble Lord, Lord Mawson, highlighted what the London Legacy Development Corporation is actually doing in delivering on the Olympic park as evidence of that. I will come back to some of his points.
Let me turn to some of the key points of the legacy as the Government see it. We made a strong start in that legacy. The progress includes 1.5 million more people playing sport regularly since the bid was won in 2005. The noble Lord, Lord Stevenson, made that positive point, as well as the cross-party point about raising the bar on the Paralympics and there being a fresh level of thinking and perception of those living with disabilities. We advanced the regeneration agenda and increased women’s participation. In that, the legacy is secure, but needs to go further.
Of course we want more people to participate in sport. My noble friend Lord Moynihan mentioned how participation in swimming and cycling has increased; but other sports, noticeably tennis, as the noble Baroness, Lady Billingham, said, have seen a decline. I am sure that the reasons for that are complex, but the point is that overall more people are playing sport on a regular basis since 2005, and that must be welcome.
Another positive thing that I want to highlight is that eight out of the eight retained venues on the Queen Elizabeth Olympic park have a secured future. That includes the Aquatics Centre, which is now open for community use, where the general public can pay £3.50 to swim in the wake or drift of the Olympic and Paralympic champions in the pool which made history. Very soon, the VeloPark will be open to cyclists and mountain bikers. Whatever the attractions of the Welsh mountains, which the noble Lord, Lord Wigley, mentioned, we can bring some taste of that mountain biking into the heart of the capital. I also note what the noble Lord, Lord Mawson, said, about the excellent proposed exhibition about the work of the London Legacy Development Corporation in east London, Walking on Water, which seems to be an appropriate title and I will be sure to go along to it. Those facilities are reopening.
The noble Lord, Lord Harris of Haringey, said that there was a diligent search for the white elephants, which always seemed to be in stark profile following previous Olympic and Paralympic Games. As he said, the committee found none because legacy was at the heart of the thinking going into the buildings’ construction and therefore is at the heart of their use thereafter.
So far, £11 billion of international trade and inward investment has been won because of the Games. The noble Lord, Lord Stoneham, referred to the boost to business. It has to be remembered that the Games were taking place when, in many ways, the economy was, if not on its knees, certainly struggling to its feet and some doubted whether this was the right place and time to invest that sort of money. Since then, it has perhaps inspired business and all of us with a level of confidence that is part of the reason why the UK economy seems to be coming out of the recession ahead of some of our competitors—which, in itself, is something to be welcomed.
Volunteering has increased from 65% in 2010-11 to 72% in 2012-13, reversing the steady decline since 2005. There was an 8% increase in the number of people volunteering regularly, up to 49%, and that followed a decade in which volunteering had flatlined. The Games changed that, with thousands volunteering to make the Games a success—of course, the Games makers were at the heart of that. My noble friend Lady Wheatcroft mentioned the UKTI and BIS “Britain is Great” campaign. That also contributed to the perception of Britain around the world. We soared to No. 1 in the Monocle magazine list of soft-power countries in the world. That is also a legacy of the Games, gaining a positive reputation for the UK. VisitBritain recently produced figures showing that visits to the country had increased by 16% over the past year—not just to the capital but beyond into the nations and regions of the United Kingdom.
The figures for disabled people playing sport have risen steadily since 2005. More than 350,000 more disabled people are taking part in sport now than when we won the bid in 2005. In many ways, I think of my noble friend Lord Addington’s injunction that young people and children need heroes, which is one of the arguments for elite sport. Perhaps behind that figure of 350,000 more disabled people taking part in sport are the likes of my noble friend Lord Holmes of Richmond and the noble Baroness, Lady Grey-Thompson.
There is a long way to go and the Government are absolutely at one with the committee in recognising that. The Mayor of London recently published a long-term vision for the legacy of the 2012 Games. I think one of your Lordships mentioned that there were too few areas where there had been a positive response or a change in thinking as a result of the report. However, one of them was very much in the mayor’s decision to publish an annual statement of where we were with the legacy and regeneration, which he will now do. That is part of the effort which we will come back to.
Several noble Lords, particularly the noble Earl, Lord Arran, referred to the need to have a clear voice from someone of Cabinet rank with responsibility for the legacy. Well, we do: it is my right honourable friend Maria Miller, who is the Secretary of State for Culture, Media and Sport. She is deputy chair of the Cabinet committee—deputy to the Prime Minister, that is—and chairs that work across government. Some 18 different departments are working on the legacy. Communicating and getting them working together, which my noble friend Lord Holmes raised a point about, is quite a challenge for any government Minister but the representation on that committee and the fact that it draws upon expertise from the noble Lord, Lord Coe, as the Prime Minister’s Olympic and Paralympic legacy ambassador is very important. I also pay tribute to the work of my noble friend Lord Holmes as an adviser to that committee on the legacy of the Paralympics.
In the time that remains, let me address some of the specific points raised during the debate. I shall try to get through as many as possible and, failing my doing that in the time allotted, I will of course follow up with a letter to the noble Lord, Lord Harris, and copy it to other members of the committee and those who have spoken in the debate. It is notable that of those who have spoken, virtually everyone at one stage either served on or gave evidence to the committee. Again, it should not surprise us that in the three hours of debate we have had on this very important matter, there have been such high-quality and thought-provoking contributions.
First, the noble Lord, Lord Harris, asked why the Government do not make public the content of the whole sport plans and report regularly to Parliament on progress with delivery. Sport England already publishes summaries of the whole sport plans on its website. In addition, the Minister for Sport, Tourism and Equality reports directly to Parliament on a quarterly basis on progress being made against a sports legacy action plan, including that on meeting sport participation targets.
I have already covered the points relating to how the legacy is dealt with across government and how different departments are getting going together on this. Of course, at this point it is always fashionable to say that we want joined-up government. Many of us on all sides of the House have been in government before and I think that the aspiration of every single Prime Minister is to get joined-up government. Somehow that has never quite been successful here or, I guess, abroad. However, the reality is that if we look at the 18 departments involved, across the piece, they are all going away and working on very important parts of this—be they the education department, the Department for Business, Innovation and Skills, the Cabinet Office with volunteering, the Department for Culture, Media and Sport, or the health department with its input in improving nutrition and exercise.
The noble Lord, Lord Harris, and the noble Baroness, Lady Grey-Thompson, referred to transport requirements and talked specifically about making greater use of Stratford International station for communication. This is a matter for the operator. I know that the committee took evidence from High Speed 1, which pointed out that one of the difficulties was having sufficient customs facilities at Stratford station to sustain the level of traffic. That is a consideration for it. Deutsche Bahn, in particular, is hoping to introduce services from Frankfurt through the tunnel to London from 2016 onwards. We understand that its intention is to run those services directly to St Pancras. Where it stops is a matter for the operator, but some strong cases have been made.
My noble friend Lord Holmes of Richmond asked about getting all national governing bodies to have targets for participation by disabled people. Currently 42 out of 46 do so. Sport England has taken this very seriously and it will no doubt form an important part of its regular discussions with those governing bodies.
Several noble Lords referred to the contribution of the National Lottery to funding and rightly paid tribute to Sir John Major for taking that initiative. This funding is the subtext to the transformation of our dismal performance in Atlanta into our stellar performance in London and Sochi.
I am grateful for the intervention of my noble friend and new employer—after the noble Lord, Lord Harris—the Government Chief Whip, who has instructed me that we are running close to the time limit.
Let me try to deal with the point relating to school sport, as that is something that all noble Lords talked about. The government are trying to focus attention on primary school teachers and club coaches through investment in primary schools, with £150 million a year for primary school sport for two years from September 2013. Many schools are using the funds to invest in professional development—which is exactly what my noble friend Lord Moynihan urged us to do—and to encourage high-quality coaches. Sport England is also investing more than £400 million in the 46 governing bodies to deliver whole-sport plans. The National College for Teaching and Leadership has already developed a new specialist primary PE course for trainee teachers.
In answer to the question from my noble friend Lord Arran, the figure I gave for participation includes 92,000 more young people aged between 16 and 26 who are now participating in sport. There are also more women playing sport, with more than 480,000 more women playing sport regularly than in 2005. My noble friend also asked what Ofsted is doing. Ofsted will be inspecting schools to ensure that the additional funding provided for physical education goes where it is intended to go.
With that I will draw my remarks to a close. In doing so, I once again pay tribute to the excellent report which the committee produced and thank noble Lords for their contributions to the debate this evening. I assure all noble Lords that the Government see this as a long journey in which we have made a positive start. It is vital that Parliament and the Government hold each other to account in ensuring that that legacy lives on in the future.