Football Index Collapse

Jessica Morden Excerpts

Tuesday 7th June 2022 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I congratulate my hon. Friend the Member for Blaydon (Liz Twist) on securing a debate on a scandal that has caused much hardship. Constituents in Newport East have been among those who lost life-altering sums of money when Football Index collapsed last year. Some £124 million-worth of bets that were placed by customers in full trust with a company that was licensed by a UK regulator have all but disappeared. The scale of this loss is nothing like the sector has seen before. Hon. Members were right to say that individuals have been driven to the brink of suicide, marriages have collapsed, families have been affected, and life savings for weddings, houses and retirements have vanished. Over a year on, they are still dealing with scars on their mental health and finances, which has been reflected to me by constituents.

My hon. Friend the Member for Blaydon was right to stress that Football Index was not an ordinary gambling firm. It modelled itself as an investment package, and in an utter failure of regulation by the Financial Conduct Authority and the Gambling Commission, customers felt wrongly assured that their long-term investments in the index were secure. The Gambling Commission was aware that these investments were more risky than customers thought. The Sheehan review said that it was an “exceptionally dangerous pyramid scheme”. One constituent pointed out that Football Index took in a significant amount of capital at the beginning of the pandemic, and that its aggressive use of capital and failure to maintain a liability reserve to meet those investment obligations led to the rapid deterioration of the business.

The distinctive nature of Football Index also meant there was confusion, as has been mentioned, as to whether it was a gambling product under the remit of the Gambling Commission or a financial product under the FCA. The fact that there were unresolved discussions between the two authorities about co-regulating Football Index shows that there are still gaps in the framework, which seemingly enticing new business models can fall through. The Government need to iron this out.

There are serious questions for the FCA to answer. It twice stated that the product fell within its regulation, yet seemingly changed its mind. The Government should now look at the feasibility of a compensation scheme for the victims, using the precedent set by the collapse of London Capital & Finance, as well as securing proper redress for those who have lost so much. The Secretary of State should also ensure that the alarming regulatory failings that allowed this to happen are never repeated.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 26th May 2022 Commons Chamber

[Chris Philp]

Yes, I can categorically give that assurance. There has been some misinformation around this issue. First, there is nothing at all in the Bill that requires social media firms to censor or prohibit speech that is legal and that is harmless to children. Reports to the contrary are quite simply untrue. In fact, there is express provision in the Bill: clause 19(2) expressly provides for a new duty on social media firms to have regard to free speech. Such a provision does not currently exist.

[Jessica Morden (Newport East) (Lab)]

5. What assessment she has made of the implications for her policies of the recommendations on the financial sustainability of football clubs in the fan-led review of football governance; and if she will make a statement.

[The Secretary of State for Digital, Culture, Media and Sport (Ms Nadine Dorries)]

The fan-led review of football governance identified financial sustainability as a core issue affecting the game, which is why the primary focus of the new independent football regulator will be to improve clubs’ financial sustainability, to protect them now and in the future. Further details will be set out in the White Paper in the summer.

[Jessica Morden]

Newport County AFC is a leading Fair Game club and a great example of how supporter ownership can bring about sustainable financial and governance structures and excellent community engagement; it is certainly true in the County’s case. With that in mind, will the Minister meet Fair Game to discuss its proposal for a sustainability index, which would overhaul the parachute-payments system and reward responsible clubs that demonstrate that they put their supporters first?

[Ms Dorries]

The regulator will be tasked with improving how clubs are financially and operationally run. Improving corporate governance and financial oversight will greatly reduce the likelihood of financial distress and make football much more resilient and sustainable for the long term. [Interruption.] The Under-Secretary of State for Digital, Culture, Media and Sport, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), who is the Minister responsible, has just whispered to me that he would be happy to meet the hon. Lady.

Independent Fan-led Review of Football Governance

Jessica Morden Excerpts

Thursday 25th November 2021 Commons Chamber

[Nigel Huddleston]

I thank my right hon. Friend for his comments; he is absolutely right. There are, understandably, recommendations in the report on the owners and directors test, which is also right. There is an inherent instinct for not really liking too much regulation, but in this case, with football being so unique and so special, because it has shown itself to be incapable of reforming itself, we have to move, albeit reluctantly. Ideally we would not have had to take these measures. He is also right about the huge success and the important economic value of football to this country. A report recently came out that said, for example, that inbound tourism of people going to football matches was worth £1.4 billion alone to the UK economy, with 1.5 million people coming to the country just to watch our football matches. We really do appreciate that value and want to make sure that football is even more successful in the future because it is so pivotal to our communities but also our economy.

[Jessica Morden (Newport East) (Lab)]

I thank the hon. Member for Chatham and Aylesford (Tracey Crouch) for her work on this. Newport County is a club run by and for the fans and a stellar example of the benefits that supporter ownership can bring on and off the field. As part of the Minister’s response to this much-needed review of football governance, will he look at the Newport County model of community ownership as an example of how the game should be run—from the ground up?

[Nigel Huddleston]

We should be playing a game of football bingo today and see how many clubs we can tick off. The hon. Lady is absolutely right. I am sure I speak for the author of the report and everybody else in saying that we do not want to give the impression that all of football is bad. There are many, many examples up and down the country of incredibly well-run clubs and models of engagement with fans that are admirable and that we really need to applaud. Indeed, we would like to see more of these successful co-operative models adopted in other parts of the country. She is absolutely right to point out the positives as well.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 18th November 2021 Commons Chamber

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Chris Philp)]

I thank the hon. Member for his question. We are taking this very seriously. As I said on an earlier question, a detailed review by a QC is being conducted already to make sure that the regulatory action—whether by the Gambling Commission or, in different circumstances, the FCA—is appropriate. It is important that these gambling firms are looked at very carefully, and it is our intention that the Gambling Commission do that.

[Jessica Morden (Newport East) (Lab)]

Can I reiterate the earlier question from my hon. Friend the Member for Blaydon (Liz Twist) about the collapse of Football Index, and reiterate the need for Ministers to look at the issues of better redress and the failings in this case, on behalf of my constituents affected?

[Chris Philp]

Yes, it is being looked at extremely carefully, and I can assure the hon. Lady that that work is going on.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 20th May 2021 Commons Chamber

The Attorney General was asked—

[Jessica Morden (Newport East) (Lab)]

What steps he has taken to increase the number of prosecutions relating to domestic violence.

[Rachel Hopkins (Luton South) (Lab)]

What steps he has taken to increase the number of prosecutions relating to domestic violence.

[Jessica Morden]

The criminal justice system is facing unprecedented backlogs, with survivors of domestic abuse and sexual assault forced to wait more than a year for their day in court. The Queen’s Speech was an opportunity for the Government to address these failings, but it was an opportunity missed. Labour’s “Ending Violence Against Women and Girls” green paper was announced this week and is ready to go. Will the Attorney General support it?

[The Attorney General]

I thank the hon. Lady for her question, which focuses on an extremely important issue of domestic abuse, which is one that I and the entire Government feel strongly about. In fact, I am sure everybody in this Chamber does. It is this Government who introduced the Domestic Abuse Act 2021. In a recent case that I conducted myself in the Court of Appeal, the offender’s sentence for extremely violent domestic abuse was increased from nine years to 15 years on my application. That is how seriously we take domestic abuse, and that is how seriously it is taken in terms of punishment and the crime. The point that the hon. Lady makes is that we should prioritise domestic abuse in the criminal justice system, and I can confirm that we do that. It is a very high focus for this Government and for the criminal justice system.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 4th February 2021 Commons Chamber

[The Solicitor General]

My hon. Friend asks a good question, and his constituents should feel confident. I was heartened to hear of the overwhelming number of legal professionals across the country who have stepped forward to offer assistance during the pandemic. It is a true testament to the very nature of pro bono; as a tool, it is there to give back and help those most in need. I heard from members of my pro bono committee in September about the impact of the pandemic on their services, and the resilience and flexibility that they have shown in the face of such adversity is very impressive and much appreciated.

[Jessica Morden (Newport East) (Lab)]

What steps she is taking to increase the number of prosecutions for domestic violence.

[Alex Cunningham (Stockton North) (Lab)]

What discussions she has had with the Crown Prosecution Service on (a) identifying and (b) publishing the reasons for the change in the rate of prosecutions relating to domestic abuse in the last 12 months.

[The Solicitor General (Michael Ellis)]

The Government take tackling domestic abuse extremely seriously, as shown, of course, by the introduction of the landmark Domestic Abuse Bill. I am absolutely committed to ensuring that justice is delivered in such cases. In fact, I personally successfully presented the first unduly lenient sentence case of its kind at the Court of Appeal last year on coercive and controlling behaviour. The CPS is working hard to deliver justice and protect the public, and has recently published an ambitious 12-month domestic abuse programme to help narrow the disparity between the reporting of these offences and criminal justice outcomes.

[Jessica Morden [V]]

About a fifth of crimes reported in lockdown have involved domestic abuse, and there is real concern that the number of specialist domestic violence courts seems to be reducing. Will the Minister commit to strengthen the system and increase the number of specialised courts, so that we can support the hard work of the police and support victims at trial?

[The Solicitor General]

That is a very good question. We are always looking at ways in which we can support those engaged in this important work. The Government have recently announced several funding packages linked to domestic abuse, including funding to deal with the effects of the covid-19 pandemic on domestic abuse. During the pandemic, the CPS has continued to prioritise domestic abuse cases. In addition to the interim charging protocol, a memorandum of understanding on the subject of domestic abuse was agreed in June across the whole criminal justice system. It supports multi-agency pre-hearing case progression for domestic abuse cases that are listed for trial.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 10th December 2020 Commons Chamber

The Attorney General was asked—

[Jessica Morden (Newport East) (Lab)]

What steps she is taking with (a) the CPS and (b) partner agencies in the criminal justice system to help reduce the backlog of cases as a result of the covid-19 outbreak.

[The Attorney General (Suella Braverman)]

Morning, Mr Speaker. The criminal justice response to the pandemic has been truly collaborative, and I thank all frontline staff for their incredibly hard work. The Crown Prosecution Service is working closely with partner agencies to reduce the backlog of cases in courts. That includes introducing internal measures to manage larger, live caseloads and working to ensure maximum throughput of cases at court. I am pleased to say to the hon. Lady that Newport and Cwmbran magistrates court is now listing cases in line with pre-covid timescales.

[Jessica Morden]

The backlog of cases has meant a serious delay in the ability to access justice. As the Law Society has pointed out:

“Investing in legal aid for early advice and legal representation will ensure judicial time is used as efficiently as possible in cases which do go to court.”

What is the Attorney General doing with the Lord Chancellor to ensure that legal aid and early advice are funded properly to help tackle the backlog?

[The Attorney General]

I am grateful for the question from the hon. Lady. I am working with the Lord Chancellor and with all Government Departments to support publicly funded lawyers. At the beginning of the pandemic, the CPS, for which I am mainly responsible, made changes to its system for paying fees to advocates to help support them during this difficult time. In August, the Government invested a further £51 million into the criminal legal aid fee scheme to better reflect the important work that publicly funded barristers provide.

Oral Answers to Questions

Jessica Morden Excerpts

Thursday 9th July 2020 Commons Chamber

[The Attorney General]

I share the hon. Gentleman’s commitment to justice for Belly Mujinga and her family here. The matter is still being considered, and the Crown Prosecution Service has requested that the British Transport police obtain further information on further lines of inquiry. As the review is still ongoing, I am unable to provide further information at this stage, but I am sure there will be an announcement in due course.

[Jessica Morden (Newport East) (Lab)]

What estimate she has made of the additional resources required by the CPS to tackle the potential increase in domestic abuse prosecutions as a result of the covid-19 lockdown.

[The Solicitor General (Michael Ellis)]

The Government take cases of domestic abuse extremely seriously. Despite the challenges generated by the covid-19 pandemic, the CPS has shown its determination to bring perpetrators to justice and provide victims with the greatest possible protection from repeat offending. I have to say those cases are among the highest priority for the Crown Prosecution Service and the highest priority being dealt with by the criminal justice system.

May I take this opportunity to commend the superb work of the Duchess of Cornwall on the issue of domestic abuse and her leadership in this area?

[Jessica Morden [V]]

There has been an 83% increase in domestic abuse related crimes in Wales since 2015. The £85 million promised by Government to the CPS will go nowhere near the £225 million cuts made by the Government. What assurances can the Attorney General and Ministers give victims that the resourcing is sufficient for their cases to be dealt with effectively?

[The Solicitor General]

I thank the hon. Lady for that important question. The Government have recently announced a number of funding packages that are linked to domestic abuse post covid, including £16.6 million announced by the Ministry of Housing, Communities and Local Government to go to 75 local authority projects for delivery of support to victims of domestic abuse and their children; £3.1 million from the Home Office for specialist services for children who have been directly and indirectly affected; and £28 million for a package of support for survivors of domestic abuse and their children from a fund from the Chancellor of the Exchequer. A lot of money is, rightly, being directed to that area.

Oral Answers to Questions

Jessica Morden Excerpts

Monday 27th April 2020 Commons Chamber

[Robert Buckland]

I thank my hon. Friend. He of course knows that the GEOAmey contract in Scotland is managed entirely by the Scottish Government, but we recognise how vital it is for all frontline staff to be supplied with PPE. Arrangements are in place, for the management and movement of any prisoner who is suspected or confirmed as having covid-19, to make sure that PPE is available for those responsible. In England and Wales, HMPPS is supporting GEOAmey in its procurement of PPE, and PECS—prisoner escort and custody services—contractors are able to access the various HMPPS hubs around the country to collect additional equipment, as required.

[Jessica Morden (Newport East) (Lab) [V]]

Gwent police are hard at work, I know, in tackling criminality, including domestic violence, but with the lockdown added to the existing backlog in our court system, the people they arrest now might not be brought to court for many months and may go on to commit other crimes, so will the Secretary of State be specific about how we are going to speed up the justice system?

[Robert Buckland]

I thank the hon. Lady for that question. She will be glad to know that daily work is going on between my officials and Her Majesty’s Courts and Tribunals Service, the senior judiciary and the senior magistracy to make sure that we can progress more cases through both the magistrates and the Crown courts. Of immediate importance are magistrates court hearings: I want to see more of them come forward. We can do a lot of them virtually, and I know that the work being done by my hon. Friend the Minister for Crime and Policing, together with my Department, will help improve the speed of the delivery of these important cases.

BBC

Jessica Morden Excerpts

Monday 15th July 2019 Westminster Hall

[Jessica Morden (Newport East) (Lab)]

I too will speak in support of the petition for the restoration of TV licences for the over-75s. Like many other hon. Members, I was deeply concerned by the announcement that the TV licence concessions for the over-75s would now be linked to pension credit. As many hon. Members have said, this is a problem of the Government’s own making. Ministers cannot hide behind the BBC, because it was their decision to outsource responsibility for TV licences, despite the manifesto pledge to maintain the benefit. As my hon. Friend the Member for Warrington North (Helen Jones) said, they have been devolving the blame.

Some 3,770 households in Newport East are set to lose their licences under the changes, and across the wider Gwent region that rises to 23,450 households, with a total annual cost across all households of over £567,000. As other hon. Members have said, TV licences are an important benefit for older people, who suffer disproportionately from isolation and loneliness. As the excellent Age Cymru has said, for millions of over-75s the TV is not just the box in the corner; it is their constant companion, their window on the world and their main form of company.

TV is also an essential source of information for people who are not online, and it plays a crucial role in their ability to be an active citizen in our democracy. Research from Age Cymru shows that only 29% of over-75s in Wales use the internet. The shift to information being online has already made it more difficult for older people to keep informed and to access key services. Removing the entitlement to a free TV licence would add substantially to these difficulties.

Linking the concession to pension credit is also hugely problematic. Estimates by the Department for Work and Pensions suggest that two in every five people eligible for pension credit are not claiming the benefit. In Newport East alone that is almost £5 million of unclaimed pension credit that is not reaching the people who need it each year. Until the Government act to ensure that everyone who is entitled to pension credit receives it, a huge number of older people risk losing out on two benefits at once if the TV licence proposals go ahead. That is the problem with it not being universal.

As Age Cymru has highlighted, there are many reasons why older people do not claim pension credit: they may not know the benefit exists; they may feel they are not entitled to any help; they may be put off by the process of claiming; they may struggle on alone, assuming that others are worse off than them; or they may be living with dementia, as other hon. Members have mentioned. In practical terms, there are serious questions to ask about how the BBC will ensure that people with dementia will be able to pay their licence fee and, if they do not, how non-payment will be enforced. It does not bear thinking about. Age Cymru has said that there may be 850,000 people affected by that.

I want to finish by citing an example from my constituency. In the week that the licence fee proposals were outlined, candidates in the Conservative leadership election began to outline their plans to cut taxes for the wealthiest in society. Days later I was contacted by the neighbour of an 86-year-old armed forces veteran in Newport who is set to lose his TV licence under the new proposal. I know that Defence Ministers are concerned about that. The contrast underlines and amplifies the fact that the Conservative party has a serious question to answer about where its priorities lie and the kind of country it wants us to live in. I echo the calls from campaigners and charities such as Age Cymru for the UK Government to take back the funding and administration fee for the free TV licence scheme and let the BBC focus on its job of being a brilliant national broadcaster. TV licences are a social benefit that should not have been outsourced.