Deregulation Bill

Chi Onwurah Excerpts

Wednesday 14th May 2014 Commons Chamber

[Chi Onwurah]

It is fitting that for the last debate in this Parliament we should be speaking of apprenticeships, as they are so important to the future of our country, and of data sharing, which is an increasingly important issue to many constituents.

Labour believes that the better use of data can reduce the costs of public services and improve them while making them faster, more efficient, more individual and more personal. In certain areas, such as health, data sharing could lead to new applications and innovative ways of predicting service need and supporting service provision, so we support data sharing in the public interest, but we must ensure that citizens are in control. As the Leader of the Opposition made clear in his Hugo Young lecture, information on individuals should be owned by and accessible to the individual, not hoarded by the state.

It is therefore deeply troubling that the Government have tabled a last-minute new clause to the Bill to authorise data sharing among the Department for Business, Innovation and Skills, Her Majesty’s Revenue and Customs and persons providing services to them when it comes to apprenticeships. This may be both necessary and useful—the actual data to be shared may be entirely harmless—but it should be done transparently, with the right safeguards and accountability in place, and it should be done as part of a coherent strategy. This is clearly not the case here. The “person providing services” could be anyone, from individual consultants to big multinational companies.

The Government have form on this. In February, their shambolic handling of care.data saw them take what at its origin was potentially a good idea, linking together our individual GP data to improve health care and support new treatments, and single-handedly destroy everyone’s confidence in it. In April, the Government announced that tax data would not only be shared but would be sold to private firms, causing real fear and further eroding public trust in the Government’s ability securely and safely to share our data. I shall come back to those two examples.

We therefore tabled amendment (a) to ask what information was being shared, with whom, by what process, with what accountability, and how it fitted into the Government’s data sharing strategy. If the Minister can answer all those questions, perhaps the amendment will prove superfluous. If not, why not?

Yesterday, in another example of Labour standing up for ordinary people, my hon. Friend the Member for Walthamstow (Stella Creasy) sought to amend the Consumer Rights Bill to create a framework allowing individuals to have more rights over their personal data. The aim was to empower individuals through access to data to have a better understanding of their finance, energy bills, health and shopping habits.

I mention the excellent work of my hon. Friend to make it absolutely clear where the Opposition stand. We believe in the potential of data sharing, we recognise the power of data, but we believe that that power should be with the people, not with big business or Government.

The substance of many of the proposals on apprenticeships is such that we support them, but this last-minute new clause needs further debate and probing. To begin with, even without the data concerns, why are the Government using the Deregulation Bill for this purpose. Is that how they see deregulation: making life easier for them, rather than for citizens and businesses? Around half the proposals in the Bill do just that.

Let us move on to our specific concerns. The Government hold significant data on individuals, companies and organisations in order to deliver services and meet statutory duties. Sharing data across different Government Departments, with local government and with third sector agencies could help improve services while reducing costs and the burden on service users. How many times have we been frustrated at having to give one Government Department exactly the same information that we have already given another? How many times have businesses complained about repetitive form-filling? Data sharing can help reduce the burden on individuals and businesses. Labour supports that. With regard to apprenticeships specifically, small businesses often complain to me about the perceived bureaucracy.

However, there are also legitimate concerns about privacy, individual rights and the risk that Government data stores might be targets of cybercrime. The Government have been heavily criticised for their handling of health data in the care.data project, in that it was difficult for individuals to opt out of sharing their health data, which could then be sold on to the private sector. That data-sharing project has now been paused. In April the well-known author and advocate of data sharing Ben Goldacre withdrew his support from the project, stating:

“a government body handed over parts of my medical records to people I’ve never met, outside the NHS and medical research community, but it is refusing to tell me what it handed over, or who it gave it to”.

Our shadow Health Minister, my hon. Friend the Member for Copeland (Mr Reed), said that the Government needed to do three things: make it easier for concerned patients to opt out of the proposals; ensure data are genuinely anonymous; and make the Secretary of State accountable for the use of patients’ data. Accountability, transparency and choice—that is what we were asking for, and that is what we are asking for in this amendment.

One might have thought that the Government had learnt from care.data, but it seems not. In April they were at it again, proposing to “sell off” some HMRC data to private sector companies. The right hon. Member for Haltemprice and Howden (Mr Davis), a former Minister, called the proposals “borderline insane”, while the Opposition sought urgent Government explanations. Incompetent handling of data sharing reduces people’s trust and makes it more difficult to implement data-sharing projects that genuinely and responsibly deliver a public good.

Our amendment also relates to HMRC data, so we are at a loss to understand why the Government have not learnt from their experience, or indeed from their own consultation, because last year HMRC consulted on data sharing. In December it announced:

“The Government has decided to proceed with the proposal to remove legal restrictions that currently limit HMRC’s ability to share general and aggregate information for public benefit… HMRC accepts that it will need to be clear and transparent on what is meant by ‘public benefit’. In addition, HMRC accepts that it will need to set in place comprehensive governance, policies and processes, including the evaluation of benefits, risks and costs of a disclosure, before any data is shared or published.”

Can the Minister explain where they are? In April, the Treasury said:

“We shall be consulting further on implementing the proposals for sharing anonymised data, and would only take forward specific measures where there was a clear public benefit and subject to suitable safeguards.”

Yet since the consultation in December we have seen no coherent, concrete proposals, only ad hoc policy, on-the-hoof announcements and this proposed legislation.

The Government deliberately confuse open data and data sharing. The Open Data Institute says:

“Data sharing is providing restricted data to restricted organisations or individuals….Open data is providing unrestricted data to everyone.”

As the chief technology officer of the Open Data Institute said a few days ago,

“confusion is understandable when the government tries to justify its data sharing as satisfying its wider open-data policy.”

With open data, everyone can see the data. However, the new clause is not about open data but about Government deciding to share potentially sensitive data with people they choose without explaining the what, why or who. The Minister talked about an “information-sharing gateway”, the definition of which I do not see in the Bill, and mentioned employers’ PAYE reference numbers and national insurance numbers as some of the information that would be shared. I think he will agree that that is potentially sensitive information. To comply with HMRC’s guidelines, he will need to set out the safeguards and processes, and how the data will be anonymised if appropriate.

The Open Data Institute says:

“Open data is not a ‘valuable revenue stream’ for government. It is a public good.”

Does the Minister agree? Will he guarantee that these data, as part of the “information-sharing gateway”, will not be sold off and will remain within the public sector? As part of Labour’s policy reviews of digital Government and the creative industries and digital, we are developing policies for a coherent data strategy that puts citizens in the driving seat. That is why we are asking the Government to report to the House in six months to explain what information is being shared, with whom, by what process, and with what accountability—and, crucially, how that fits in with the Government’s data-sharing strategy.

In fact, I have not yet been able to identify a Government data-sharing strategy, but perhaps the Minister can help. There is a data-sharing policy unit within the Cabinet Office, so I would have thought that some policy might be coming out of it. The unit recently met representatives of civil society, who have many concerns about data sharing, and agreed that it was necessary to map out the current data-sharing landscape, but we do not know how far they have got with that. This new clause, which is not set in the context of any data-sharing strategy apart from the Minister’s reference to an “information-sharing gateway”, suggests that they have not got very far at all.

Finally, I would like to share with the House an unfortunate occurrence that I recently suffered. My wallet was stolen, including my European health insurance card. Obviously, I was very upset about that, but I was pleased to discover that an automated line was available 24/7 through which I could replace it for free. I rang it up and heard the following message: “The NHSBSA has a data-sharing agreement with other Government agencies. By continuing this call, you signal your awareness and agreement to data sharing.” I was somewhat surprised by that. If this Government believe that all it takes to signal agreement to data sharing—or an information-sharing gateway—is a voicemail, why are they introducing primary legislation in order to enable it?

--- Later in debate ---

[Tom Brake]

It was perhaps remiss of me not to say how much I have enjoyed resuming our jousts across the Chamber on the Bill. I remind the House that the Bill will save businesses £300 million over 10 years, and that it will save the public sector £30 million. The Opposition say that it amounts to nothing, so in practice they are saying that £300 million of savings are not worth having. In our view, they are worth having.

I am glad that the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) has welcomed apprenticeships and the growth in their number. That is something on which we can all agree.

On to the issue of data sharing and the use of data, the hon. Lady underlined how, under the new Labour party proposals, citizens will be in control of their data. That is of course an interesting departure from what Labour Members did in government. With such things as identity cards, the retention of innocent peoples’ DNA, the massive database they wanted to create and indeed CCTV, they did the complete opposite of giving citizens control over their data.

The hon. Lady suggested that new clause 1 is a last-minute amendment, but of course it is not. It was flagged up in Committee, where we discussed the need for HMRC to share taxpayer information with the Department for Business, Innovation and Skills and others. I am therefore surprised that she was surprised.

[Chi Onwurah]

To be absolutely clear, the original Bill had a provision for the disclosure of information to the commissioners, but only for the purpose of arrangements made under clause 4(1), which very narrowly defines the purpose as being for payroll administration. However, new clause 1 is much broader, in that it is for anything

“in relation to…English apprenticeships.”

When the Bill comes back from the Lords, perhaps the provision will cover anything in relation to any BIS functions whatsoever. It is clearly being made wider and wider.

[Tom Brake]

I do not agree. The hon. Lady will find that the provision is quite tightly defined, and that should satisfy her.

The hon. Lady also referred to the need for safeguards. There will clearly be very significant safeguards for data exchange, and I will give some examples. For a new apprenticeship funding mechanism, as for any new system, the Skills Funding Agency will expect expert assessments of the information and security risks as part of the development on an ongoing basis. An action plan will be developed to address the risks identified, and the senior information risk owner will have to be satisfied that those risks have been sufficiently mitigated before any system goes live. There will be periodic system tests to see whether anyone can break into it. Staff duties will be segregated to protect information. All staff will complete annual training on protecting information, and any security breaches, including near misses, will have to be reported and acted on.

HMRC has a criminal sanction for wrongful disclosure of customer information. As I have stated, in providing its data to other Departments, the continuing protection of HMRC data is a vital safeguard that must remain in place. That is why the HMRC criminal sanction in section 19 of the Commissioners for Revenue and Customs Act 2005 applies to any wrongful disclosure by staff or contractors of a Department that receives HMRC information. In addition, while a legislative gateway may allow for the supply of information from HMRC to another Department, it is generally constructed so that the other Department is not permitted to pass on that information to another organisation, public or private, without recourse to HMRC, and that is the case with new clause 1.

The safeguards that the hon. Lady wants are therefore already in place. The data are secure, and any exchange of data will be done only under very tightly controlled procedures.

[Chi Onwurah]

The Minister’s words offer some reassurance on the systems to be put in place, but not on accountability. We have seen with universal credit that accountability for identity management and for the success of a project can be very diffuse. Who will own and therefore be accountable for this new IT system?

[Tom Brake]

I would love to be able to answer that question immediately, but, as the hon. Lady is aware, the consultation on the solution closed on 1 May, so the technical solution has not been devised. I am therefore not in a position to clarify precisely where the responsibility will lie, because the system is not yet specified. At the point of specification, I am sure we will be able to provide her with the clarity she needs.

I have provided examples, which the hon. Lady quoted, of the data that might be shared. As I have just said, the consultation closed on 1 May, so I am not in a position to give her an extensive list of the data that will be shared. I assure her that it will be restricted to the purposes for which it is required.

The hon. Lady asked why this matter is in the Deregulation Bill. One major thing that the Government are trying to deliver in the area of deregulation is to provide employers with a much greater say over the way in which apprenticeships are managed and the standards developed. We also want to ensure that employers have a greater financial stake in apprenticeships, because we believe that that will drive quality in apprenticeships. The Bill is therefore the appropriate vehicle in which to make the arrangements for the data sharing that we have discussed.

It is the Government’s clear objective to avoid, as far as is possible, any unnecessary exchange of data and any additional burden on businesses, especially small businesses, to provide information that they might already have provided to Government for other reasons. We want to minimise the need for businesses to provide additional information.

I hope that I have dealt with all the hon. Lady’s points.

[Chi Onwurah]

rose—

[Tom Brake]

Clearly I have not, so I will give way once more.

[Chi Onwurah]

I thank the Minister for being generous in this last debate. It concerns me that he implies that a system does not have an owner until it has been specified. It is the owner of the system that should be specifying it in order to avoid the car crashes in IT development that we have seen under the Governments of both major parties. Again, will he come back to me with who owns the specification of this information-sharing gateway or data-sharing system?

[Tom Brake]

I am not in a position to do that. Assuming that HMRC and the Department for Business, Innovation and Skills are involved, they will want to play a major role in providing accountability for that system. The hon. Lady and I both went to Imperial college London. I went on to work in the IT industry, so I understand perfectly the importance of having somebody who is accountable for a system. I am certain that the Government will ensure that someone or a particular Department is very clearly accountable, and that the lines of responsibility and accountability are very clear.

With that, I commend the Government proposals and urge the Opposition not to press amendment (a) to new clause 1.

Question put and agreed to.

New clause 1 accordingly read a Second time, and added to the Bill.

Clause 3

Apprenticeships: simplification

Amendment made: 5, page 2, line 22, at end insert—

‘( ) Part 4 of the Schedule contains transitional provision.’.—(Tom Brake.)

This amendment is consequential on amendment 35.

Clause 4

English apprenticeships: funding arrangements

Amendments made: 6, page 2, line 26, leave out from ‘of’ to end of line 28 and insert

‘apprenticeship payments.

( ) “Apprenticeship payments” are payments that may be made by the Secretary of State to any person—

(a) for the purpose of encouraging the provision of opportunities for individuals to complete approved English apprenticeships or to undertake work following the completion of such apprenticeships, or

(b) otherwise in connection with approved English apprenticeships.’.

This amendment is to ensure that the Secretary of State may make arrangements with HMRC for HMRC to administer payments that may be made by the Secretary of State to any person in connection with approved English apprenticeships.

Amendment 7, page 2, line 28, at end insert—

‘( ) The arrangements that may be made under subsection (1) include arrangements under which the Commissioners are responsible for recovery where an apprenticeship payment is made but the whole or any part of it is (for whatever reason) recoverable by the Secretary of State.’.

This amendment clarifies, for the avoidance of doubt, that arrangements made under clause 4(1) may include responsibility for HMRC to recover any apprenticeship payments which are recoverable by the Secretary of State.

Amendment 8, page 2, line 33, leave out ‘employers’ and insert

‘persons of a description specified in the regulations’.

This amendment is consequential on amendment 6.

Amendment 9, page 2, line 38, leave out from ‘with’ to end of line 39 and insert ‘approved English apprenticeships’.

This amendment is consequential on amendment 6.

Amendment 74, page 2, line 39, at end insert—

‘( ) The regulations may, in particular, also provide that, where the Commissioners are responsible for recovering the whole or any part of an apprenticeship payment from a person of a description specified in the regulations, they may do so by deducting the amount from any payments that they would otherwise be required to make to that person and that are of a kind specified in the regulations.’.

This amendment ensures that, for the purposes of arrangements under clause 4(1), HMRC may make regulations to enable them to recover apprenticeship payments from persons, who will be described in the regulations, by making deductions from payments that HMRC would otherwise have to make.

Amendment 10, page 3, line 1, leave out subsections (5) to (8).

This amendment is consequential on amendment NC1.

Amendment 11, page 3, leave out lines 27 to 29.—(Tom Brake.)

This amendment is consequential on amendment NC1.

Schedule 1

Approved English apprenticeships

Amendments made: 27, page 53, line 9, leave out ‘prepare and’.

This amendment removes the requirement that the Secretary of State must prepare apprenticeship standards. It is related to amendment 28.

Amendment 28, page 53, line 11, at end insert—

‘( ) Each standard must be—

(a) prepared by the Secretary of State, or

(b) prepared by another person and approved by the Secretary of State.’.

This amendment allows for any person, including employers, to prepare apprenticeship standards (as well as the Secretary of State). A standard must be approved by the Secretary of State if it is prepared by another person.

Amendment 29, page 53, line 19, leave out from ‘State’ to end of line 24 and insert

‘may—

(a) publish a revised version of a standard, or

(b) withdraw a standard (with or without publishing another in its place).’.

This amendment, which is related to amendment 30, allows for the Secretary of State to publish an amended version of a standard or to withdraw a standard (with or without publishing another one).

Amendment 30, page 53, line 24, at end insert—

‘( ) Revisions of a standard may be—

(a) prepared by the Secretary of State, or

(b) prepared by another person and approved by the Secretary of State.’.

This amendment allows for any person, including employers, to prepare revisions of apprenticeship standards (as well as the Secretary of State). A standard must be approved by the Secretary of State if it is prepared by another person.

Amendment 31, page 53, leave out lines 25 to 27.

This amendment removes the express provision for employers or their representatives to make proposals to the Secretary of State about standards. This is considered unnecessary in the light of amendments 28 and 30 which allow for an enhanced role for employers and other persons.

Amendment 32, page 55, line 25, at end insert—

‘1A (1) Section 100 of the Apprenticeships, Skills, Children and Learning Act 2009 (provision of financial resources) is amended as follows.

(2) In subsection (1), after “financial resources” insert “under this subsection”.

(3) After subsection (1) insert—

“(1A) The Secretary of State may secure the provision of financial resources to any person under this subsection (whether or not the resources could be secured under subsection (1))—

(a) for the purpose of encouraging the provision of opportunities for individuals to complete approved English apprenticeships or to undertake work following the completion of such apprenticeships, or

(b) otherwise in connection with approved English apprenticeships.”

(4) In subsection (3), after “subsection (1)” insert “or (1A)”.

(5) In subsection (4), after “subsection (1)(c)” insert “or (1A)”.

1B (1) Section 101of that Act (financial resources: conditions) is amended as follows.

(2) In subsection (2)—

(a) after “may” insert “(among other things)”;

(b) omit paragraph (b).

(3) Omit subsections (4) and (5).

1C In section 103 of that Act (means tests), in subsection (1) (as amended by paragraph 13C of Schedule 13) after “section 100(1)(c), (d) or (e)” insert “or (1A)”.’.

This amendment is to ensure that the Secretary of State may make payments relating to approved English apprenticeships under section 100 of the Apprenticeships, Skills, Children and Learning Act 2009 (provision of financial resources). It makes consequential changes to sections 100, 101 and 103 of that Act.

Amendment 33, page 56, line 17, leave out ‘employment’ and insert ‘service’.

This amendment, together with amendment 34, is to clarify that “apprenticeship training” in section 83 of the Apprenticeships, Skills, Children and Learning Act 2009 includes training provided in connection with any contract of service or contract of apprenticeship.

Amendment 34, page 56, line 18, after ‘agreement)’ insert ‘or contract of apprenticeship’.

See amendment 33.

Amendment 35, page 57, line 38, at end insert—

‘Part 4

Transitional provision

The provision that may be included in an order under section77(7) in connection with the coming into force of paragraph 1 of this Schedule includes provision—

(a) for work done by a person under an arrangement described in the order to be treated as work done under an approved English apprenticeship within the meaning of the Apprenticeships, Skills, Children and Learning Act 2009, where the person begins to work under the arrangement before the paragraph comes into force and continues to do so (for any period) afterwards;

(b) for a standard published by the Secretary of State before the paragraph comes into force, in connection with work that by virtue of provision made under paragraph (a) is treated as work done under an approved English apprenticeship, to be treated as if it were an approved apprenticeship standard published under section A2 of the 2009 Act in relation to the approved English apprenticeship.’.—(Tom Brake.)

This amendment provides that the Secretary of State may by order make certain transitional provision, in particular, provision for work to be treated as if it were done under an approved English apprenticeship where the work was done under other specified arrangements before paragraph 1 of Schedule 1 comes into force.

Schedule 13

Abolition of office of the Chief Executive of Skills Funding

Amendments made: 55, page 142, line 14, leave out paragraph 8 and insert—

‘8 Omit section 85 (provision of apprenticeship training etc for persons within section 83 or 83A).’.

This amendment repeals section 85 of the Apprenticeships, Skills, Children and Learning Act 2009 (which imposes a duty on the Chief Executive of Skills Funding to make reasonable efforts to secure employer participation in certain apprenticeship training) instead of transferring the duty to the Secretary of State.

Amendment 56, page 142, line 40, leave out paragraph 13 and insert—

‘13 (1) Section 100 (provision of financial resources) is amended as follows.

(2) In subsection (1)—

(a) in the opening words, for “Chief Executive” substitute “Secretary of State”;

(b) in paragraph (a), for “Chief Executive’s remit” substitute “Secretary of State’s remit under this Part”;

(c) omit paragraph (f).

(3) Omit subsection (2).

(4) In subsection (3)—

(a) in the opening words, for “Chief Executive” substitute “Secretary of State”;

(b) in paragraph (c), for “Chief Executive” substitute “Secretary of State”.

(5) In subsection (4), for “Chief Executive” substitute “Secretary of State”.

13A (1) Section 101 (financial resources: conditions) is amended as follows.

(2) In subsection (1), for “by the Chief Executive” substitute “by the Secretary of State under section 100”.

(3) In subsection (3)—

(a) in paragraph (a), for “Chief Executive” (in each place where it occurs) substitute “Secretary of State”;

(b) in paragraph (b)—

(i) for “Chief Executive” (in each place where it occurs) substitute “Secretary of State”;

(ii) for “the functions of the office” substitute “functions under this Part”.

(4) In subsection (6)—

(a) in paragraph (a), for “Chief Executive” (in each place where it occurs) substitute “Secretary of State”;

(b) in paragraph (b), for “Chief Executive” substitute “Secretary of State”.

13B (1) Section 102 (performance assessments) is amended as follows.

(2) In subsection (1)—

(a) for “Chief Executive” substitute “Secretary of State”;

(b) for “Chief Executive’s remit” substitute “Secretary of State’s remit under this Part”.

13C (1) Section 103 (means tests) is amended as follows.

(2) In subsection (1), for “The Chief Executive” substitute “For the purpose of the exercise of the powers under section 100(1)(c), (d) or (e), the Secretary of State”.

(3) Omit subsection (2).’.—(Tom Brake.)

This amendment transfers the funding powers of the Chief Executive of Skills Funding under sections 100 to 103 of the Apprenticeships, Skills, Children and Learning Act 2009 to the Secretary of State.

Bill to be further considered tomorrow.