Citizens Advice Bureaux (Birmingham)

Jack Dromey Excerpts

Wednesday 9th February 2011 Westminster Hall

[Jack Dromey (Birmingham, Erdington) (Lab)]

Thank you, Mr Sheridan, it is a pleasure to serve under your chairmanship.

This is a debate of immense importance for the people of Birmingham. The Birmingham citizens advice bureau is the oldest and largest in the country, dating back to 1939. Progressively, the Birmingham CAB opened five offices in Birmingham to meet great and growing demand. Last year, the Birmingham CAB provided advice and support to 56,000 people. For those who find it hard to access mainstream services, it also provides a comprehensive web of outreach services in, for example, GP practices, children’s centres, hospitals, dementia advice projects and Macmillan Cancer Support.

The Birmingham CAB employs 100 full-time staff, who work with a dedicated army of 166 volunteers, including the excellent Paul Ballantyne who is here today and who is the chair of the trustees, and the excellent John Orchard, a volunteer for the CAB. Both have both devoted many years’ work to the CAB in support of the most vulnerable people in Birmingham. And vulnerable they certainly are; in Kingstanding, in my constituency, we have a CAB in one of the poorest and most deprived wards in Britain—much cherished by the people who live in the ward.

Birmingham has been hard hit. The west midlands has the highest unemployment anywhere in Britain. Just when the people of Birmingham need somewhere to go for support and advice, the generalist advice services of all five citizens advice bureaux will close. Why? On the one hand, it is a combination of the callous cuts being made by the Government to local government services in Birmingham, where £170 million will come out of the budget next year alone; and on the other hand, the cruel incompetence of the council.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I do not know if my hon. Friend saw the Prime Minister’s very helpful comment in The Sunday Telegraph, when he said that councils should look to reduce their chief executives’ salaries before they cut citizens advice bureaux. Given that the chief executive of Birmingham is one of the highest-paid in the country, should he and some of his senior officers not take a cut before the CAB?

[Jack Dromey]

My hon. Friend makes a powerful point. The last thing that should be cut is advice to the people of Britain from citizens advice bureaux. If there are to be reductions, they should start at the top in Birmingham city council.

The CAB had been planning for some council cuts for some time, going back to March 2010, but suddenly, out of the blue, the bureaux were told in December just before Christmas that they would lose all their funding from March 2011. The CAB then made repeated approaches to the council to try to find a way forward. What have they been told? “Sorry, you will have to close by March, but you can reapply for a fresh funding stream in August this year.” That means that the CAB’s generalist advice services will close down for five months, with no certainty whatever that there will be support afterwards.

[John Hemming (Birmingham, Yardley) (LD)]

Does the hon. Gentleman not accept that the city council is in fact offering interim funding to maintain the service, and that the CAB had not actually made proposals for any savings whatever?

[Jack Dromey]

rose—

[Richard Burden (Birmingham, Northfield) (Lab)]

This is an intervention on my hon. Friend, but before I start it I think the answer to the question asked by the hon. Member for Birmingham, Yardley is no.

Would my hon. Friend comment on the fact that in the other place, Baroness Wilcox said:

“Central Government has not been notified of the closure of any citizens advice bureaux since the spending review settlement 2010. The Government are aware that local authorities that fund citizens advice bureaux are facing tough decisions but do not expect them when making those decisions to pass on disproportionate cuts to other service providers, especially in the voluntary sector.”—[Official Report, House of Lords, 26 January 2011; Vol. 724, c. WA166.]

Would my hon. Friend join me in inviting the Minister, when he responds, to tell us what it means, other than just words, if the Government let happen what looks like happening in Birmingham?

[Jack Dromey]

My hon. Friend is absolutely right. It is proof positive, once again, that the Government are simply out of contact with the consequences of their actions. What is happening in Birmingham is clear beyond any doubt. The question that we will be asking today is what Ministers intend to do about it.

On the point about the council, the hon. Member for Birmingham, Yardley asked whether the CAB had explored alternatives. It has explored alternatives repeatedly. I have seen the correspondence going backwards and forwards. The CAB has tried to find a way forward, but what has it been met with? Among other things, abuse from the cabinet member concerned, Councillor Ayoub Khan. Just when the CAB was looking for a co-operative approach to try to find a way forward, including making economies consistent with protecting the service to the community, it ran up against a brick wall.

[John Hemming]

Earlier, the hon. Gentleman claimed that there was no proposal for any funding from April onwards. In fact, there is a proposal to make interim funding available. That, to be fair, is something that I have discussed with the CAB.

[Jack Dromey]

There will be a crucial meeting on Monday next week. As things stand, the CAB will have no alternative but to close down its generalist advice services—no alternative. If, as a consequence of today, the Government say, standing by previous statements, that they mean what they say and that CAB should not close, and if the council sees sense, not only will the CAB celebrate, so too will the people of Birmingham.

If there is no change, let us bring home what the consequences will be for the people of Birmingham. All Members who represent Birmingham can give examples—the kinds of problems that my hon. Friend the Member for Coventry South (Mr Cunningham) sees as well—but I shall give the House three. First, a quote:

“I didn’t know what sort of help to get regarding family difficulty with breach of custody agreement. I was terrified that I may lose my son to a hostel and wouldn’t know who to go to about my rights as a father if it wasn’t for the CAB.”

That difficult family problem was successfully resolved.

Secondly, a client of the CAB, disabled and living alone in an empty flat on a low income with no furniture, had no idea about the support available—social tariffs for utilities, community care grant or budgeting loans for furniture. Thanks to the CAB, that disabled woman now lives in comfort and is properly supported. Thirdly, there is the case of a client with cancer, who without the help of the CAB would not have been able to challenge successfully a decision not to award her benefits.

The consequences for people like them, and for the people of Birmingham more generally, will be severe indeed. Where will they turn at their time of need, and just at a time when demand is increasing?

[Jim Shannon (Strangford) (DUP)]

The issue for a great many of us as elected representatives and as MPs is that we recognise the good work that CAB do, but we also recognise that with the changes the coalition Government are putting forward on benefits, demand for CAB services will increase and concerns will increase. Homelessness, loss of benefits and loss of income will be critical issues over the next four to five years.

[Jack Dromey]

The hon. Gentleman makes a very powerful point indeed. I suspect that all Members of Parliament, let alone advice agencies, are seeing the same trend of growing demand for support from us: advice on housing, advice on homelessness, advice on benefits and advice on debt. A whole range of issues is coming to us because there is growing demand when the economy is in difficulties and at the same time the Government are cutting back vital services to the people of Britain and Northern Ireland.

[Yvonne Fovargue (Makerfield) (Lab)]

Does my hon. Friend agree that CAB and other advice agencies are facing a double whammy because of the cuts? The closure of the financial inclusion fund will leave 100,000 people who were served last year with nowhere to turn in the future, and more than 500 skilled and trained advice workers are currently serving their notice.

[Jack Dromey]

My hon. Friend is absolutely right. She brings to this debate the wisdom and experience of her many years in the CAB. Her contribution is welcome, and she is right to bring home once again the consequences of what the Government are doing.

On the folly of the cuts, interesting independent academic research has demonstrated that every £1 invested in advice yields a return of up to £10 because early intervention produces the best results. What will happen—it is as simple as this—is that the CAB and other advice services will be run down and closed, and there will be greater risk of debt, homelessness, poverty, mental health problems and relationship breakdown simply because tried and tested services upon which people depend at a time of need have gone.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

Does my hon. Friend, as a fellow Birmingham MP, share my experience? The two agencies that I rely on most heavily when constituents come to my advice surgeries are the CAB and the Immigration Advisory Service. The CAB is a source of reliable, independent advice, and there is no alternative. If we lose it, our people will lose.

[Jack Dromey]

My hon. Friend speaks from her great experience in Birmingham, Edgbaston. She is absolutely right: these services, including the one for immigration, are vital. The question then arises—Ministers will have to answer it—of where people will go if the fabric of our advice services is torn apart. As I shall say in a moment, it is not just the CAB; a total of 13 services will close in Birmingham.

[John Hemming]

I agree with the hon. Gentleman that the CAB is a vital service, but does he agree that it should not take an all-or-nothing approach but be willing to compromise with the city council and aim to maintain a service at a lower cost?

[Jack Dromey]

The hon. Gentleman is, to be frank, wrong. The CAB has made it consistently clear that it is prepared to do precisely that, but dialogue with Birmingham city council has proved to be a dialogue with the deaf. If he will speak out today and call on Birmingham city council, and join the Labour MPs of Birmingham in hoping that good sense will break out next Monday, that would be very welcome indeed.

[John Hemming]

I have been working with the city council on funding proposals to maintain a substantial part of the CAB service, so that has been happening.

[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

Will my hon. Friend give way?

[Jack Dromey]

I will give way to my hon. Friend.

[Mr Mahmood]

The hon. Member for Birmingham, Yardley (John Hemming) is not dealing with the real issue. I have two CAB in my area—one in my constituency and one just outside—which serve some of the most deprived people in the area. Those people have real issues in respect of health, housing and mental health. An organisation called COPE: Black Mental Health Foundation, which provides advice on mental health issues, will close in the next two months because the city council is not providing any support. The Asian Resource Centre is also closing. As my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) says, there will be huge issues around support for the most vulnerable in our society, but there has been no dialogue at all with the city council on that.

[Jack Dromey]

My hon. Friend is, of course, right; it is not just the CAB. Some of the 13 organisations that are threatened are the Afro-Caribbean Millennium Centre, Age Concern in Birmingham and Perry Barr, the Birmingham Asian Resource Centre, the TUC Centre for the Unemployed and the Chinese Community Centre. A whole range of advice services catering for the needs of the various communities of Birmingham are all facing closure. In total, between 80,000 and 100,000 people seek advice from those 13 advice services each year. That is one in 10 of Birmingham’s citizens, or one in four families. Such is the scale of need that those admirable institutions meet at present.

It would appear that the cuts are not just cruel and callous; they may be unlawful as well. The National Council for Voluntary Organisations, an admirable organisation, has written to Birmingham city council to raise concerns over the legality of the cuts in relation to consultation and equality impact assessments. Many of us will give evidence in any proceedings that are held because we know from our experience that there was no proper consultation in advance, and that no serious impact assessments were conducted. The council made the decisions just before Christmas, and it has gone hell for leather to implement the next stages without proper consultation or impact assessments.

It is essential that the Government and the council act. If a solution is to be found that will secure the long-term future of these admirable organisations, there will need to be at least interim funding while we seek a long-term solution.

[Andrew Percy (Brigg and Goole) (Con)]

I thank the hon. Gentleman for his comments. The situation is the same across the country. In my constituency, the CAB in Goole is facing a similar threat. I want to reinforce the point that he has just made. There has to be a long-term solution, because this is not something that has not happened before. CABs are constantly battling for various funding streams, but what we really need is something that puts their vital service on a proper, long-term footing. I entirely agree with what he has been saying.

[Jack Dromey]

I am grateful to the hon. Gentleman. He makes a powerful point based on his experience. The current arrangements mean that this admirable institution, the CAB, lives from hand to mouth, never quite certain that it can count on the next funding round or stream, which makes it difficult to plan. John and Paul, who are here today, are outstanding at doing precisely that, but it is impossible for them to plan if they are told in December that they will have to close in March but they might or might not get money in August. That is, to be blunt, an absolute farce and something that requires urgent action by the Government to put right.

Let me close on exactly those points. Clear views have been expressed on both sides of the Chamber that we need action by Ministers. I say this with the greatest of respect to the Minister: Ministers cannot wash their hands of responsibility. If the big society means anything—they proclaim that the CAB and advice agencies are a key part—what do the Government intend to do about the situation? Will they call on Birmingham city council to think again? That is precisely what we hope for—that Birmingham city council will think again—when the meeting takes place on Monday next week.

I pay tribute to Citizens Advice. It is an outstanding institution with outstanding employees and volunteers. It needs to be able to serve the people of Birmingham well for the next 70 years, as it has for the past 70.

--- Later in debate ---

[Mr Davey]

I agree that funding from local authorities can be critical to how citizens advice bureaux plan budgets, so I do not disagree with the point that the hon. Lady has made.

[Jack Dromey]

We are getting close to the end of the debate, and it is of the highest importance that a clear message be sent to the people of Birmingham. A meeting is scheduled for next Monday and we hope progress will be made. In the event of progress not being made next Monday, will the Minister be prepared to meet a delegation from the Birmingham CAB—the admirable people who work for it, the admirable people who volunteer and some of the people who depend upon it?

[Mr Davey]

I would not want to prejudge the meetings that will happen over the next few days. It is up to individual councils such as Birmingham to work with partner organisations to sort out some of the difficulties. I understand that Birmingham city council has reviewed advice provision within the whole city and will be moving towards a new commissioning process in the summer. All the independent advice providers will be eligible to apply, and that will, of course, include the bureaux.

I also understand that the council recognises that there may be short-term problems for some of the independent advice providers during the period until new contracts are awarded. I believe that it has a transition fund, to which my hon. Friend the Member for Birmingham, Yardley referred, which might be used to help those organisations through that period. The meeting, scheduled for Monday, will focus on discussing that.

Those are positive developments, which the hon. Member for Birmingham, Erdington did not touch on in his speech, and it is worth putting them on record because I hope they will result in a successful outcome. I am concerned that hasty decisions taken by councils now could lead to the unnecessary loss of important CAB services not only in Birmingham, but in other areas. I trust that, when local authorities work carefully with their citizens advice bureaux to strike up the strategic partnerships I talked about, that will not happen.