Cost of Living

Dan Poulter Excerpts

Wednesday 16th May 2012 Commons Chamber

[Barbara Keeley (Worsley and Eccles South) (Lab)]

There was little, as we have already heard today, in the Queen’s Speech to do with the rising cost of living. We have recently had a Budget that helps millionaires with tax cuts while penalising pensioners and families, and throughout the country people are struggling with the impact of a double-dip recession made in Downing street, so the Government, whether in the Budget or in the Queen’s Speech, are offering little help to those working people or pensioners on modest and low incomes who are struggling to manage.

But I want to talk about the Government’s failure to introduce in the Queen’s Speech a Bill on the financial reform of social care, because it has implications for the cost of living of the millions of vulnerable people who need care. There is also a major effect on carers who drop out of work or reduce their working hours in order to care, because that has an impact on the economy.

First, however, I send best wishes for a speedy recovery to the hon. Member for Truro and Falmouth (Sarah Newton), who I understand has had a fall—an accident here—and is in hospital. She is the vice-chair of the all-party group on social care, and we work well together. This is a vital time for social care, so I am really sorry that she might not be with us for a few weeks, but I wish her well.

Every few weeks we see another article or report about the crisis in social care. The Association of Directors of Adult Social Services has reported cuts of more than £1 billion in local council budgets for adult social care since the general election, with a further £1 billion of cuts expected this year. Those cuts have led to service reductions and to substantial increases in charges.

We learned today from research by my hon. Friend the Member for Leicester West (Liz Kendall) that the number of vulnerable, older and disabled people who have home care services fully paid for by their local authority has fallen by 11% in England over the past two years, and a survey by the Care and Support Alliance also shows that services to 24% of disabled adults have been cut, even though their needs are the same or have increased.

Research by Age UK shows that cuts to council budgets mean increased fees for services. Two thirds of local councils are increasing fees for services such as meals on wheels, and fees have increased by 13% over two years. Almost half of all local councils are charging more or making new charges for home help or day care services, and my hon. Friend’s research shows that the average charge for one hour of home care has risen by 10% in the past two years, from £12.29 to £13.61. On average, older people pay for 10 hours’ home care a week when they are using it, so the annual bill for care has risen to more than £7,000, an increase of £680 since 2010. Yet, as we know as Members of Parliament, these services are a lifeline to many vulnerable people. The Age UK research also showed that one in six councils has reduced personal budgets for care packages and that almost half of councils have frozen the rates that they pay for residential care, leaving older people and their families who pay top-ups to absorb any price increases—and there have been price increases. Care homes have been increasing their fees. The fees for residential care have increased by 5% on average over the past year, taking the average up to £27,200 a year. Nursing home fees have risen by a similar amount and now cost £37,500 a year on average.

In addition, councils are raising or abolishing the caps on the care costs met by individuals who need care. Four out of 10 councils have abolished funding caps in the past two years, with another four out of 10 increasing the cap so that people now have to pay more, while rates charged for respite care have tripled in some parts of the country. My hon. Friend the Member for Leicester West is calling these increased care charges a stealth tax on the elderly and people with disabilities, and I agree. More and more people are footing the bill for care themselves, and that bill has grown. The need for care often starts suddenly and unexpectedly due to a medical event such as stroke or the sudden worsening of a condition such as Alzheimer’s or vascular dementia. That often leads to bills that are very hard to meet. A quarter of people are faced with care costs in their lifetime of over £50,000, with one in 10 paying £100,000. These care costs can be catastrophic. Indeed, more than 20,000 pensioners every year have to sell their homes to pay for residential care.

It is not just a question of care charges, which are bad enough. People needing care often tend to be disproportionately hit by increases in the everyday cost of living. People who are older and frail, or ill or with a disability, spend more time at home and need to keep warm, so increases in heating and electricity bills hit them hard. Besides paying more for care, they have had to cope with VAT increases, higher fuel and travel costs—this group of people spends a lot of time attending GP surgeries and hospital visits—and increased prescription charges. All these have increased the cost of living for people needing care.

Under this equation, reduced care services and increased costs for care ultimately mean that unpaid family carers take on heavier caring workloads. Carers UK has estimated that 1 million carers have given up work or reduced their working hours in order to care. Over two thirds of those who had given up work to care were more than £10,000 a year worse off as a result. Over 45% of the carers it surveyed were cutting back on essentials such as heating or food in order to make ends meet. Sadly, the cost of caring can push carers into debt. Almost half the carers surveyed by Carers UK had fallen into debt. While over half the younger carers had been in debt, for carers over 65 the debts were greater; 15% of them had debts of at least £25,000. Unsurprisingly, the stress of this financial hardship had affected the health of nearly half those carers.

We can therefore say that the need for reform of the funding of social care is urgent. In fact, it is so urgent that 78 charities wrote an open letter to the Prime Minister ahead of the Queen’s Speech reminding him that social care is in crisis. They said that without reform

“too many older and disabled people will be left in desperate circumstances”.

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

The hon. Lady is making a very good speech outlining many of the problems with caring for the elderly and the challenges that carers face. Will she accept, though, that while it is right to highlight these problems, the Labour party, when in government for 13 years, did nothing substantially to tackle these problems, many of which have taken a long time to manifest themselves and should have been dealt with under the previous Government when this country had more money?

[Barbara Keeley]

The hon. Gentleman was not here in the previous Parliament. As somebody who was here, I can say that we did take substantial steps. I have been speaking on these issues ever since I came into Parliament in May 2005. With cross-party talks, we came very close to achieving consensus until the Conservative shadow Secretary of State—now the current Secretary of State—walked out on those talks and did a lot of scaremongering in the general election with posters about a “death tax” featuring tombstones. I am sure that Members will remember that.

Moreover, we did not just have a draft Bill; we had the Personal Care at Home Bill, which went through Parliament. That would have helped the 400,000 people with the greatest needs, while 300,000 people with very substantial care needs, such as those with dementia, could have had personal care at home, and over 100,000 people would have been helped with reablement. I know from working with the hon. Gentleman on the Select Committee that he is very keen on dealing with issues such as reablement, for which support would have been provided. Those 400,000 people are now paying for that themselves. They could have been helped if this coalition Government had not got rid of that Bill, which they could have enacted, as it had gone through this House. It is not true to say that we did nothing on this; we did a lot.

[Dr Poulter]

It is wrong to say that Members who came into the House in the 2010 intake do not understand these issues, because many of us, including me, were working in the real world picking up the pieces of the broken care system. The hon. Lady is looking around for little bits and pieces that the previous Government may or may not have done to address the issue. The previous Government had 13 years to deal with these big challenges of elderly care, of better integrating health and social care, and of dealing with the funding crisis. They did nothing substantial to deal with those things; will she accept that?

[Barbara Keeley]

No, I absolutely do not accept that. In our 13 years in government, the first thing we did was to fix the health service following the mess that we inherited from the Conservative Government. We had a lot of other priorities in dealing with what the Conservative Government had done through privatisation. I am amazed that Members are arguing about bus fares and train fares. It was not a Labour Government who privatised these things. All the privatisations and reductions in services came about through Conservative Governments, not Labour Governments. We were tackling these issues.

We now have a Minister for social care who believes that there is no funding gap. He is arguing with all the directors of adult social care services, who say that £1 billion has gone out of adult social care in the past couple of years, with the loss of another £1 billion to come. The crisis that I am detailing as regards the cost of living impacts on individuals and their families is undoubtedly made hugely worse by the £2 billion that is going out of adult social care. However tight things were or whatever struggles were going on during the last Parliament, when I did a lot of work on this topic, it was never said that social care is in crisis, whereas now that is said every single week.

In the open letter to the Prime Minister ahead of the Queen’s Speech, 78 charities reminded him that social care is in crisis. As I said, they feel that older and disabled people will be left in desperate circumstances. There are 800,000 people with unmet needs, and that figure will possibly grow to 1 million. Some people will struggle on alone and do not even have an unpaid family carer to help them.

[Dr Poulter]

I do not always like to quote outside agencies or charities in this House. However, Age UK successfully put together a campaign, with a petition that was handed into Downing street, in which it acknowledged that the chance to tackle this issue was flunked by the previous Government and should have been better dealt with. That was an inherent part of that campaign. This is a creeping crisis that began and was manifested over a number of years, and it is very disingenuous of the hon. Lady to say otherwise.

[Barbara Keeley]

It is very disingenuous of a member of a Government who have just massively ducked this issue in the Queen’s Speech, causing huge disappointment across any organisation that is involved in social care, to talk about the previous Government.

--- Later in debate ---

[Mr Robin Walker (Worcester) (Con)]

It is a pleasure to follow the hon. Member for Worsley and Eccles South (Barbara Keeley), who made a thoughtful speech on the important issue of social care, about which people from all parts of the House feel strongly. I echo her good wishes to the hon. Member for Truro and Falmouth (Sarah Newton).

It is a pleasure to be called to speak in the debate on the Gracious Speech and to be able to mark, as MP for the faithful city of Worcester, the celebrations that will rightly take place around the country for the diamond jubilee of our sovereign. After the splendour and pageantry of last week’s Gracious Speech, this debate focuses on its grittiest elements—those that relate to the cost of living. I am constantly reminded on the doorsteps of Worcester and in my surgeries that the cost of living is a matter of prime concern for many constituents. I will first address the parts of the speech that relate specifically to the cost of living, before making a few broader points on the economy, which is referenced in the Opposition amendment.

There was much to be welcomed in the Gracious Speech on the cost of living. Contrary to the rhetoric that we have heard from Opposition Members, the speech is imbued with concern over the cost of living. It promises vital reforms that will make a difference to the price of the water and electricity in our homes and the food in our shops.

There are some things that I would have liked to have been included in the Queen’s Speech that were not present. In some quarters, the speech has been criticised for not doing more to tackle the issue of fuel duties or to spearhead vitally needed growth. I will return to the latter point at the end of my speech. On the former point, I have enormous sympathy for people across the country and from all parties who want to see a permanent shift in the balance of fuel duties. Although I am doubtful that a programme of legislation is the right place for such a move, I will continue to push for it in future Budgets and Bills. The price of petrol has become too high. It is a major cost to our economy and a driver of inflation. I hope that the Government will listen carefully to the many voices that have been raised—from Upper Bann and Belfast to Harlow—to call for more action on this front.

I want to see a Government who are resolutely focused on supporting the economic growth that will deliver better living standards. I am confident that we will see that, without the need for further legislation. The best weapon that we can wield against the cost of living is material prosperity for the many, not the few. In that regard, we should look at what has been done to help the lowest-paid workers stay out of tax and at the commitment in the Budget to extend the tax-free threshold to up to 2 million more lower-paid workers, which have been mentioned by my hon. Friend the Member for Bury St Edmunds (Mr Ruffley) and the hon. Member for Cambridge (Dr Huppert).

I do not accept the suggestion from some quarters that economic growth is the enemy of sustainability and that we should juxtapose the need to grow our economy with the desire to be green and efficient. Nor do I accept the argument so often heard from the Opposition that fiscal stimulus is the only path to growth. I believe that we can deliver greener, more diverse and more sustainable economic growth that will increase the wealth of our nation and provide individuals and families with the tools to overcome a higher cost of living. That does not mean that the Government can neglect the need to deal with the cost of living.

I am delighted that the Government are committed to major reforms in the provision of electricity and water to make those industries more efficient, to ensure that there are clean, secure and affordable supplies, and to ensure that prices are fairer over the long term. It is a shocking indictment of the last Labour Government that we inherited a situation in which a fifth of the UK’s energy generation capacity was due to be taken offline within 10 years, while electricity demand is to double in the next 40 years. We need to act fast to secure the £100 billion of investment that is necessary to keep the lights on.

I am glad that the Government are setting out detailed plans for an energy Bill to bring market reform. Winston Churchill said that energy security is energy diversity. The Bill must reflect that by supporting all technologies, whether nuclear, renewable or gas-based, that can make our electricity more affordable, more efficient and more sustainable. The introduction of a capacity mechanism will be vital to improve our security and to maximise the enormous potential for diversity that our island nation has.

The introduction of an emissions performance standard, alongside the Government’s earlier decision to look at carbon pricing, should ensure that we have cleaner, greener generation in the future. However, that must be carefully balanced, so as not to push costs too high.

I understand that the Government’s analysis shows that although some years might see higher prices as a result of the electricity market reforms, the overall impact will be to bring prices down. That is to be welcomed, but I urge the Government to recognise the need to do everything in their power to accelerate that trend. By 2020, it is expected that bills could be 7% lower than they would have been without the reforms. As the Secretary of State said earlier, over two decades, bills are expected to be 4% lower. I would like to see more progress and a greater impact as the Bill makes its way towards becoming an Act.

After months of drought followed by torrential rain, it might be suggested that water reforms would be best focused on regulating the weather. However, I am pleased to see a serious focus on that industry as well. It cannot be right that we have one of the lowest proportions of metered households in Europe, and that prices are rising so sharply for everyone, including the poorest in the country. The measures to encourage the water companies to introduce cheaper tariffs to support the most vulnerable customers are welcome. It is vital that the Government work to drive down water bills by increasing competition in the water industry.

Across water and energy, there is increasing pressure from a growing population for finite resources. As the right hon. Member for Croydon North (Malcolm Wicks) pointed out in a thoughtful speech, it is important that we do not just concentrate on the day-to-day minutiae of market structures and prices or on what is happening just within the boundaries of the UK, but that we raise our eyes and recognise that there are big strategic challenges for our management of energy and water supplies. In a world in which the population is growing fast and where the wealth of those who previously consumed the least is rising more swiftly than that of the formerly gluttonous west, we will face increased competition for all resources. Realistically, politicians of all colours have to admit that we cannot wave a magic wand and bring prices down every year for the resources we need. We have to face up to a far more competitive and far more volatile world and take on the long-term challenge of keeping costs under control and reducing consumption. Acknowledging that entails an ever greater focus on efficiency and on ensuring that resources are not wasted—itself a potential driver of growth for businesses such as Worcester Bosch, which makes energy efficient boilers in my constituency, or Vickers Electronics, which I visited recently and which has opened an office in Worcester to market its energy saving devices for factory heating.

There is an old saying, “Where there’s muck, there’s brass,” and we should ensure that where there is a waste of resources, there are opportunities for British businesses to get involved in reducing it. Previous actions by the Government, such as the green deal and the renewable heat incentive, are important elements of that, and I encourage Ministers to take those measures forward further and faster. The creation of the Green investment bank will provide vital investment for the sector and encourage its growth. That does not mean that the Government are wrong to be acting on prices and reforms, but action must be part of a bigger strategic approach to ensure that Britain is best placed to compete in the 21st-century world. In that respect, I recognise the enormous value of many of the initiatives discussed in yesterday’s debate on foreign affairs: the emerging powers initiative, the commitment to work with the Commonwealth, and the broad focus that this country is putting on maintaining our place on the world stage. Our energy and water resources will not be secured in isolation, nor can we feed our nation purely from the produce of our own shores.

Moving closer to home, I strongly welcome the introduction of a groceries code adjudicator to regulate the big supermarkets, ensure a better deal for our farmers, and put fairer food at the heart of our food system. The adjudicator must have strong powers to act on behalf of shoppers and suppliers and it must be prepared to take on some of the powerful vested interests that have dominated the sector hitherto. Diversity of production is as important in food as it is in energy and we must support diversity of supply so that there are more farmers markets, more co-operatives and more direct selling of food by growers or producers. Worcestershire has some fantastic food producers, whether it is our fruit growers and asparagus champions of the vale of Evesham, our dairies and sheep farmers across the county, or global brands, such as Lea & Perrins Worcestershire sauce, which is produced in the very heart of my constituency. I want all those producers to be able to get a fair price for their product and to market those products at a reasonable price to consumers. I believe that the groceries code adjudicator can play a key role in achieving that.

Keeping down the price of food would also be helped enormously by a reduction in the price of diesel, which is important both in the growing and harvesting of our crops and in their delivery to market. That is another reason why the Government should consider further action on that important issue.

[Dr Poulter]

My hon. Friend is making a very good speech. On the subject of the groceries code adjudicator, I am sure he agrees with me that it is important to have fair prices not only for consumers, but for producers, and that if we do not look after our food producers prices will go up for our consumers, because we will be far too reliant on food imported from overseas. Does he also agree that one of the key purposes of establishing the groceries code adjudicator must be to support producers better and ensure that we have a more sustainable food and agriculture sector in this country?

[Mr Walker]

I could not agree more with my hon. Friend.

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[Albert Owen]

I had many debates with my right hon. Friend when he was in office. I did not shirk that responsibility. He felt that increasing VAT was the best thing to do but was outvoted in Cabinet. It was not a Government decision. He wanted to increase VAT, but he was wrong. He also wanted to increase vehicle excise duty, but I argued and voted against that measure because it, too, was wrong. On those issues, he was wrong. He did many brave things. For instance, he introduced the 50p rate at the end of our time in office. [Laughter.] Government Members laugh. He did it at the end, but he did it because we were in a crisis and needed extra revenue. That was supported by a lot of people at that time, yet this Government have managed to reduce the taxation for the richest while putting VAT on businesses and as a result a tax on jobs.

[Dr Poulter]

Does the hon. Gentleman accept that the biggest tax on jobs would be if this country tried to spend its way out of debt, which is exactly what Labour would have us try to do?

[Albert Owen]

I understand what has come from the Government Whips—I have seen copies of it, and it says that all the time; indeed, it has probably got into the psyche. However, let us look at proper economics. When we have low interest rates—and we have had historically low interest rates—it is during a recession. That is what happens; it is a natural phenomenon. Since January 2009, interest rates have been at an historic low. That did not start when this Government came in; it started in January 2009. Gilts and bonds are low as well, which gives us a golden opportunity to borrow at lower rates. That is how we got out of recessions in the past across the world. Pure austerity measures have never worked. People should look at economic history. Austerity is part of the package, but unless we get growth and jobs, we will not get out of the double-dip recession we are in.

We sometimes get accused of being deficit deniers. I am neither a deficit denier nor a deficit extremist. It is extremism that gets us into trouble, and I have to say that there are many people in this House who are recession deniers—they are denying the fact that we are going down. Many people are paying the price, and that is why the cost of living is so important.

Let me move on to energy and electricity market reform. I support reform in principle, although we do not know the details, so it would be a little naive to support it fully until it is implemented. I am a member of the Select Committee on Energy and Climate Change, and we have looked at the principle of electricity market reform. We produced a report highlighting some of our concerns. There has been a White Paper for a long time, but we are only going to get pre-legislative scrutiny. We need to know what is in the Bill in order to deal with the issue properly and provide the certainty needed to invest in our infrastructure.

The Government have missed an opportunity in this Queen’s Speech. On one side, yes, there should be incentives for investment—that is very important—but there is very little protection for consumers. I have long argued in this House that Ofgem, the energy regulator, should have more teeth. It should be standing up. It is a damned cheek for the new Energy Secretary—whom I welcome to his place today—to try to claim some credit for the fact that energy companies are providing greater transparency in their bills. It is campaigns by the likes of Which? and Consumer Focus and so on that have highlighted the problems and embarrassed the energy companies, while the Government stood by and watched. Ofgem should have greater teeth. I make a plea to the Government to take that on board, because energy costs are hurting people, in peripheral areas in particular. Many are off the gas mains and off the grid. I want Ofgem, the regulator, to have the same powers to protect customers who are not on the gas mains as it enjoys in protecting those who are on the gas mains.

Finally, let me move on to the subject of transport. I welcome the concept of High Speed 2, but I want to see it up and running. The Transport Secretary is quoted as saying, “Well, we’re preparing for legislation.” The legislation is vital, so can she give some indication of when it is likely to be introduced? We have done the consultation and the matter has been agreed by this House, although it is not popular with certain sections.

Rural Bus Services

Dan Poulter Excerpts

Tuesday 11th October 2011 Westminster Hall

[Brandon Lewis (Great Yarmouth) (Con)]

I appreciate the opportunity to speak under your chairmanship, Mr Caton. It is clear that we all understand the importance of bus services to our constituents across the country, especially in rural areas, but the coalition Government’s necessary deficit reduction programme is having a marked effect on the ability to maintain a viable rural transport network.

Almost half of all bus operator revenue comes from public funding, making bus services particularly vulnerable to the pressure on public finances that we inherited from the previous Government after the recent economic crisis. Three main funding streams are available to public transport authorities, all of which were affected by the 2010 comprehensive spending review. Taken alone, those tough financial measures might have been bearable for the rural shire counties and the transport network, and two together would have made life difficult, but the three combined have created a triple whammy that threatens the existence of many subsidised routes in some areas.

The first funding stream is local authority revenue expenditure, which was cut this year by 28%. Local authorities use that pot of money to subsidise some transport routes. Changes were also made to the Department for Transport’s formula for concessionary fare reimbursements. The special grant that accounted for approximately 40% of funding for concessionary travel in Norfolk has been rolled into the formula grant due to the comprehensive spending review. In 2010-11, the funding available to Norfolk districts was £11 million. In 2011-12, the funding attributed through the formula grant was just £7.228 million. The impact is that Norfolk county council’s statutory payment will substantially exceed the allocation, by about £3.5 million. In total, Norfolk is £4.2 million worse off, or £4.4 million on some figures. After negotiations, the county council has done an excellent job of working with bus operators and other transport providers to find another £1.2 million, reducing the gap to just over £3 million.

The funding allocation method from April 2011 uses a standard formula to distribute all funding related to the statutory scheme via the revenue support grant. The formula considers factors such as population density, the number of people over 60 without a car and the proportion of residents on incapacity benefit. Under that formula, Norfolk does not fare well in the funding distribution; it has the second highest shortfall of all county councils for 2011-12. That is on top of figures published yesterday by the BBC showing that public expenditure for the eastern region is the second lowest in the United Kingdom, at £7,300 a head. The north-west receives £9,500, and Scotland receives £10,500. Norfolk suffers for being cast as part of the prosperous eastern region, but figures for the region are skewed by the wealth and prosperity of areas such as Essex and Cambridgeshire. Norfolk has pockets of rural deprivation and, in areas such as Great Yarmouth, severe urban deprivation as well.

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

My hon. Friend is making a good point. Even relatively affluent regions have pockets of deprivation, particularly rural deprivation, that need to be taken into account. A lot of people who live in more deprived rural environments, particularly older people suffering from fuel poverty, must travel a long way for key services. Is that not a point that he is trying to convey?

[Brandon Lewis]

My hon. Friend is absolutely right. His county of Suffolk has a shortfall of about £1 million. Rural areas are hardest hit, because people have the least opportunity to use public transport and the most need for access to it. I will come to that point in a moment.

Another funding stream is the bus service operators’ grant, which has been cut by 20% from 2012. That will have a huge direct impact on bus operators. The Select Committee on Transport report “Bus services after the spending review”, published in August, stated that bus operating revenue in England could be reduced by £200 million to £300 million. The impact of that reduction in rural areas must be understood in context: rural authorities already receive less Government grant per head of population than others. The Rural Services Network report by Local Government Futures found that urban authorities receive an average of £487 per head, compared with £324 in predominantly rural areas.

Councils are also exposed to more general increases in costs. Local transport authorities are exposed to the increased costs of providing the statutory concessionary fare scheme. To make up the shortfall, councils are diverting resources from elsewhere, such as previously available discretionary services. Interestingly, since this debate was granted, public discussion on the issue has widened to include concessionary travel more generally. I have been involved with that debate, as have the press in Norfolk. EDP 24 has covered it superbly and supported the Fair Fares campaign, and the BBC and Anglia TV have covered it as well. I will turn to concessionary travel in a moment.

The Transport Committee’s recent report noted that by June 2011 more than 70% of English local authorities had decided to reduce funding for supported bus services, and that the extent of the reductions varied considerably, although, in general, rural, evening and Sunday bus services were most affected, as is the case in Norfolk.

--- Later in debate ---

[Brandon Lewis]

My hon. Friend makes a very good point. In Great Yarmouth, residents from Lowestoft and across the Waveney constituency use the James Paget hospital and need transport to get there. However, there is a difference between that and the use of public transport for tourism. Legislation does give some protection in relation to that, but the system is so complicated that it is difficult to differentiate in some cases between tourism use and required local use. Were we to pursue that in the legislation, it might force the Government to become too deeply involved in the detail of a local system’s provision.

We need to consider, or at least discuss, the potential for reform of the system, so that it is targeted on our poorest or most vulnerable pensioners. We also need to discuss whether the concessionary fare pass should be issued at 60 or according to the retirement age. If we do not have reform, concessionary passes could end up being worthless. For many pensioners in rural areas, having a concessionary pass is useful, but only if there is transport to use it on. Some bus operators have already made suggestions, such as having a flat-rate 50p charge. In some areas, concessionary pass holders are already being asked to pay a voluntary fee and a flat-rate charge per journey.

[Dr Poulter]

I accept my hon. Friend’s point about the bus operators. Does he not also agree that the onus is on them to look at their services and proactively engage with local communities, particularly in rural areas, to make sure that they are more responsive to local needs? Far too often, certainly in Suffolk, the bus operators are not responsive to local needs. When a service is non-profitable, they cut the service and it is the frail elderly who lose out.

[Brandon Lewis]

There is an absolute need for operators to be looking locally and for local authorities to work with local communities and put further pressure on those companies. In Great Yarmouth, we have had examples of routes that have been considered for cancellation and, by working with the local authorities and the bus company, we have been able to restore a usable route that services residents. If a route is simply not economically viable, when money is scarce we need to consider alternative forms of transport that can provide the service that local residents need. That might not necessarily be a bus. We are talking about providing the transport service that is needed in a cost-effective way and that allows people to live their lives productively.

When I recently did an interview on BBC Radio Norfolk, I discussed the possibility raised by bus companies of having a 50p flat rate and an admin charge for getting a concessionary pass in the first place, and whether we should change the age of eligibility to retirement age rather than 60. I was pleasantly surprised because, despite expecting a barrage of criticism, we received some very positive responses. One resident said:

“In regard to the recent news of the deficit we are facing with the bus pass I heard you on Radio Norfolk and thought your opinions echoed mine and I am sure many more. I would be more than happy to pay 50p each trip which would more than cover the debt.”

Cornwall county council, for example, has called for legislative changes to allow pass holders to make a small payment for each journey. It has written to all the county’s MPs to ask them to lobby for such a change.

Oral Answers to Questions

Dan Poulter Excerpts

Thursday 23rd June 2011 Commons Chamber

[Mrs May]

I absolutely agree with my hon. Friend. That is precisely what our flexible parental leave proposals, on which we are consulting, will do. Crucially, they will not only allow the father and mother to share parental leave, but will enable them to take time off together in the early stages following the child’s birth, if that is what they want. It will be possible for fathers to be much more involved in the very early stage of their child’s life.

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

2. What steps she is taking to reduce the incidence of homophobia in sport.

[The Secretary of State for the Home Department and Minister for Women and Equalities (Mrs Theresa May)]

We are encouraging every club, team, player and fan to sign up to our new charter, “Tackling Homophobia and Transphobia in Sport”, and to work with us to put an end to homophobia and transphobia in sport. We are working with the top sports national bodies, Sport England and the London Organising Committee of the Olympic Games and Paralympic Games to tackle this issue. I am pleased to say that yesterday the Prime Minister hosted a reception in No. 10 to celebrate the good work that is under way to drive homophobia and transphobia out of sport.

[Dr Poulter]

Given our wish to get a lot of young people involved in sport, and with the Olympics happening next year, does my right hon. Friend agree that we need to break down homophobic attitudes among young people in particular and to ensure that young people can fully participate in sport? What will the Government do to facilitate that?

[Mrs May]

I agree with my hon. Friend that that is important. We want sport to be welcoming for everyone. Spectators and participants should feel that there is no barrier for them, and should not feel concerned about the sort of comments they might hear. It is important that young people are taught and shown the way forward. I think that our charter will help to do that.

We need to work on homophobia particularly in relation to football. Over time, football has not done enough to deal with this issue. Sadly, the terraces of football clubs are too often places where homophobic and transphobic comments are made. I am pleased to say that the Football Association was represented at the reception at No. 10 yesterday. Too often in the past there has been a reluctance among the football authorities to deal with this issue and frankly it is time that football got its house in order.

Oral Answers to Questions

Dan Poulter Excerpts

Thursday 22nd July 2010 Commons Chamber

[Mike Penning]

Not only are there 70,000 vehicles a day, but 20% are HGVs, which is 10% higher than the average in the UK. The project will cost between £86 million and £142 million. When the spending review is over, we will assess the problems that Kettering is having because of that huge amount of traffic.

[Dr Daniel Poulter (Central Suffolk and North Ipswich) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Transport (Mr Philip Hammond)]

Since I last answered departmental questions, we have announced a new framework for the economic regulation of airports; our south-east airports taskforce has commenced work; we have announced the sale of High Speed 1; and we have launched a £15 million fund to incentivise the purchase of low-carbon buses. I have also prepared and submitted a spending review bid to the Treasury.

[Dr Poulter]

I thank the Minister of State for her earlier answer in reply to my hon. Friend the Member for Waveney (Peter Aldous) in respect of recognising the importance of the East Suffolk line to the future prosperity of central and eastern Suffolk. Part of improving the infrastructure is a vital stretch of track called the Beccles loop, which would enable a future franchisee to run a full London to Lowestoft service. May we count on the Secretary of State’s support in pursuing the funding for that vital stretch of track?

[Mr Hammond]

Any future proposals for rail enhancements will be considered in the usual way in setting the output requirements for control period 5, which will define Network Rail’s investment programme from 2014 onwards.