Oral Answers to Questions

Julia Lopez Excerpts

Thursday 1st October 2020 Commons Chamber

[Mr Speaker]

I welcome Minister Lopez on her first outing at the Dispatch Box.

[The Parliamentary Secretary, Cabinet Office (Julia Lopez)]

Thank you, Mr Speaker. This Chamber has changed in many ways since I went on maternity leave, but I am glad to say that the atmosphere has markedly improved for the better thanks to your warmth and good humour.

The Government are committed to levelling up opportunity in every corner of the United Kingdom, including as we respond to the economic impacts of covid-19. This work has many strands, from the winter economy plan to protect jobs and businesses to the lifetime skills guarantee and the investment we are making in major regional infrastructure. In the Cabinet Office, we are playing our part through our Places for Growth strategy, locating more high-quality civil service jobs beyond the capital so that the Government are better connected to all the communities we are here to serve.

[Paul Bristow]

I welcome my hon. Friend to her place on the Government Front Bench.

The Government plan to bring decision making “close to people”. Peterborough is a city just 50 minutes from London. It is on the east coast main line and has a bustling hospitality and retail sector and a hard-working and skilful population, and a university is coming. Can my hon. Friend think of a better place for a civil servant to work than Peterborough? Will she consider the city in the latest round of civil service moves?

[Julia Lopez]

I thank my hon. Friend for his passionate pitch for his city. We completely agree with him that Peterborough, with its fantastic transport links, entrepreneurial people and broader economic offering, would be a great place for a new Government hub. That is why we are locating one at Fletton Quays, where I hope to visit next week to demonstrate our commitment to locating more civil service roles in the regions and nations of the UK.

[Antony Higginbotham]

Constituencies such as mine have for too long been left behind, with London taking the lion’s share of infrastructure and small and medium-sized enterprise finance. That means that good, viable businesses in Burnley are left to grow at a slower speed than if they were elsewhere in the country. Does my hon. Friend agree that development banks, which are such excellent mobilisers of capital, could prove a solution to that problem?

[Julia Lopez]

My hon. Friend has been a fantastic champion of Burnley’s small businesses since his election. The Government are determined to reduce imbalances in access to finance for smaller firms. Some 83,000 SMEs outside London have already benefited from programmes run by the British Business Bank, which is the UK’s Government-owned economic development bank. Infrastructure is also central to our economic plan, providing opportunities for SMEs throughout the supply chain. We will publish a national infrastructure strategy, including our ambitions on levelling up across the whole UK, later in the autumn.

[Mark Logan]

Pubs and restaurants in Bolton have been harder hit than those in nearly any other of the UK’s 650 constituencies, largely due to an unfairly enforced economic lockdown. Will my hon. Friend assure me that the Government are doing everything they can to support businesses in Bolton? I urge the Government to align our restrictions with those in the rest of the region.

[Julia Lopez]

I thank my hon. Friend for his question. It is an incredibly challenging time for constituents in Bolton North East and in many other areas of the country, and I know they will appreciate his advocacy. Local lockdown decisions are determined following advice from national medical experts, local leaders and directors of public health, in accordance with data provided by the Joint Biosecurity Centre. We consider case rates, trends in the data and causes, but also local geography, before making judgments about whether restrictions are needed. We of course keep all these measures under constant review.

I share my hon. Friend’s concern for the hospitality sector, and I have spoken to the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Sutton and Cheam (Paul Scully), about the taskforce he is setting up as Business Minister to work through some of the issues for the night-time economy in particular.

[Joy Morrissey]

In Beaconsfield, many of my constituents work in aviation or other sectors directly affected by covid-19. What steps are the Government taking to ensure that anyone who finds themselves unemployed due to businesses having to adapt or close because of covid-19 can find the education and qualifications they need for the future?

[Julia Lopez]

The new Member for Beaconsfield is another very refreshing change in this Parliament, and I thank her for her question. She might wish to point her constituents to the Chancellor’s plan for jobs, which is designed to help unemployed people find work through training to develop their skills. That support includes incentive payments for employers to hire new apprentices and funding to triple the uptake of traineeships. The Prime Minister also set out his commitment this week to lifelong learning. As part of that, adults who do not have a full level 3 qualification will be able to take level 3 qualifications in high-value subjects for free from next April.

[Paul Howell]

I also welcome the Minister to her place. Economic growth in the regions will be maximised by the public and private sectors working in partnership. Currently, there are 92,000 civil servants in London, 56,000 in the north-west and only half of that in the north-east—and two thirds of those are in Newcastle, leaving negligible numbers in Durham and the Tees Valley. Does she agree that any relocation of Government Departments to the regions can be a critical lever and that it is important that they do not all now just move to another metropolitan centre? It is imperative that Departments such as the Department for Transport and the Ministry of Housing, Communities and Local Government consider locating to areas such as Sedgefield, which sits on the intersection of the Tees valley and County Durham and has all the rural challenges, but also has excellent connections to London.

[Julia Lopez]

I thank my hon. Friend for his question. He also makes a passionate pitch for his constituency. The Government are committed to levelling up across the UK, ensuring that this Administration is much less London-centric. The Places for Growth programme is working with Departments on their relocation plans ahead of the spending review and continuously exploring opportunities to build clusters of civil servants across the whole UK. I welcome my hon. Friend highlighting what Sedgefield has to offer, and I am sure the north-east will benefit from the relocation of civil service roles.

[Matt Vickers]

There is an amazing world of opportunities, talents and skills outside London, and nowhere more so than in Teesside. We are on the up. Our airport is reborn. We are leading the green technology revolution. We have the brightest and best entrepreneurs, manufacturers and exporters. We are fighting for a freeport and gagging for growth. Could my hon. Friend confirm not if but when civil service jobs from Whitehall will make their way to Teesside?

[Julia Lopez]

Another very passionate case—perhaps a bit too passionate. It is incredible to see how firmly Teesside has been put on the map over the past few years because of its Mayor and hon. Friends in this place, and it is great to see my hon. Friend the Member for Stockton South (Matt Vickers) join their number. The Government are committed to relocating 22,000 civil service roles out of central London within the next decade, with the majority going to other regions and nations of the UK. We will continue to engage with the Mayor and others to ensure that the north-east benefits from our ambitions.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

What assessment he has made of the adequacy of (a) supplier performance and (b) value for money achieved under Government contracts issued in response to the covid-19 outbreak.

[Ian Byrne (Liverpool, West Derby) (Lab)]

What assessment he has made of the adequacy of (a) supplier performance and (b) value for money achieved under Government contracts established in response to the covid-19 outbreak.

[The Parliamentary Secretary, Cabinet Office (Julia Lopez)]

The private sector has played a vital role in the Government’s response to the covid-19 outbreak, such as delivering over 15,000 ventilators in under four months to support the NHS and changing production facilities so that by December we expect that UK manufacturers will be meeting 70% of the demand for personal protective equipment, compared with just 1% before the pandemic. Being able to procure at speed has been critical in providing that response. However, we have been clear that all contracts, including those designed to help tackle coronavirus, must continue to offer quality public services and achieve value for money for taxpayers.

[Debbie Abrahams]

The Minister’s response says more about the Government’s failure to implement the recommendations of Operation Cygnus than it does about their ability to implement an effective response to the pandemic. The Government have bypassed the NHS, outsourcing billions of pounds-worth of contracts in back-room deals with their mates that then failed to deliver—failed to deliver PPE that fits on time, failed to deliver the testing capacity that is needed and failed to deliver a national tracing programme that contacts everyone affected. The Government’s actions are not just incompetent; their failure to comply with transparency obligations is potentially unlawful. Therefore, will they stop wasting more taxpayers’ money defending the indefensible and provide my lawyers with the information on these contracts that my co-complainants and I have requested?

[Julia Lopez]

The DHSC has procured over 32 billion items from UK-based manufacturers and international partners—an incredibly difficult task at an incredibly difficult time. We received over 24,000 offers of help from 15,000 individual suppliers, and all were prioritised according to volume, price, clinical acceptability and lead time, meaning the time from an offer being accepted by the DHSC to a supplier delivering the items. Of course I am happy to look into any offer of help from a business that was found wanting, but I refer the hon. Member to the view outlined by the Chair of the Public Accounts Committee, the hon. Member for Hackney South and Shoreditch (Meg Hillier), who praised the Department’s response to procurement.

[Ruth Cadbury]

Track and trace services, when led by experienced public health teams, have been more effective, and at lower cost, than the outsourced system in NHS England. In Wales, the contact rate for track and trace is over 90%, whereas in England, it hovers at a little over 70%. When will the Government recognise the importance of value for money and redirect their multimillion-pound procurement towards long-established local health networks?

[Julia Lopez]

It has been an extremely challenging time, as I have said, and the private sector has been a valuable partner in everything we have done. The contracts awarded have been extremely valuable in ensuring that we can deliver capacity at pace. If the hon. Lady has any concerns, I am happy to look into them.

[Ian Byrne [V]]

The Minister will be aware that the Competition and Markets Authority is now investigating the proposed merger of two outsourcing giants in the facilities management industry: Mitie and Interserve. Given that both companies hold Government contracts worth over £2 billion, what steps is she taking to review the implications of the merger, considering the clear risk to public funds, as well as to the terms and conditions and future employment of over 80,000 workers?

[Julia Lopez]

I am afraid that the Competition and Markets Authority is not within my remit, but I am happy to look into any concerns, because contracts and procurement performance are within my remit, and I want to ensure that we receive value for money for the taxpayer in everything we do.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I understand that the Government’s contract with Sitel for test and trace is renewed on an eight-week basis, with a two-week notice period. The next deadline for renewal is this Sunday, 4 October. Will the Minister publish all the renewal dates for Sitel and Serco’s contracts, and will she explain what justification the Government could possibly have for continuing with the failed privatised, centralised model of test and trace, by contrast to the effectiveness of local councils and public health teams, who are denied the full funding that they require?

[Julia Lopez]

As I have said, without the private sector, we would have struggled to deliver the testing capacity that we now have. Serco and Sitel are approved suppliers on the Crown Commercial Service’s contact centre framework, and they gain their places through fair and open competition via Official Journal of the European Union procurement. Value for money and capability were part of the assessment criteria. But if there are other suppliers that would bid well for the contracts, we are happy to look into that.

[Helen Hayes]

Government spending on consultants has risen sharply in recent years, up by around £1 billion since 2016, with contracts worth at least £56 million awarded without competitive tender during the covid crisis. Does the Minister agree with her colleague Lord Agnew that the Government are reliant on consultants who are providing poor value for money because of their vastly inflated cost when carrying out services that could be conducted more efficiently in-house? If so, can she tell the House when the review into current controls and spending limits will begin, and when it will report?

[Julia Lopez]

Consultants play an important role in what the Government try to achieve on particular projects, but the hon. Lady is right: we have concerns about the cost of those consultants and whether we are too reliant on them, and we are actively reviewing that. I am working with my colleague Minister Agnew on these matters.

[Sir George Howarth (Knowsley) (Lab)]

What recent discussions he has had with his counterparts in the EU on visa arrangements for British workers at the end of the transition period.

Public Bodies 2019 and Public Appointments Data Report 2019

Julia Lopez Excerpts

Wednesday 22nd July 2020 Written Statements

[The Parliamentary Secretary, Cabinet Office (Julia Lopez)]

My noble Friend the Minister of State for the Cabinet Office (Lord Agnew of Oulton) has made the following written ministerial statement:

I am pleased to announce the publication of Public Bodies 2019 and the Public Appointments Data Report 2019 and will today be placing copies in the Libraries of both Houses.

Public bodies play a vital role in the delivery of public services for all our citizens, covering wide-ranging functions. Well-governed, effective and efficient public bodies enable the Government to deliver their priorities.

Public Bodies 2019 is an annual directory that provides a single transparent source of top-level financial and non-financial data on all Executive agencies, non-departmental public bodies and non-ministerial departments across Government.

The public appointments data report provides a breakdown of the diversity of public appointees who were in roles covered by the governance code on public appointments on 31 March 2019 and those appointed to such roles between 1 April 2018 and 31 March 2019. The latter data is a subset of the information published in the Commissioner for Public Appointments’ annual report.

[HCWS425]

Early Parliamentary General Election

Julia Lopez Excerpts

Wednesday 4th September 2019 Commons Chamber

[Anna Soubry (Broxtowe) (IGC)]

It is very important in this debate that we are all very mindful of the language we use. It has been concerning that right hon. and hon. Government Members, including our Prime Minister, have chosen to use the words “frit” and “frightened” of those of us who believe that the last thing this country needs is a general election. Given everything that has happened in the past few years, there are a number of people in this place who could not be accused of being frightened. In fact, it has taken a lot of courage for some people.

If Government Members are not familiar with courage, they might want to talk to some of those hon. Members they have just booted out of their own party—decent, long-serving and hugely loyal members of the Conservative party who last night and again today chose to put their constituents and their country first. The price that they have paid is to see the end of their parliamentary career, and this House is right to commend each and every one of them for the considerable courage that it took.

I am in no doubt whatsoever that it is not just the people of Broxtowe, but the people of this country who are thoroughly fed up to the back teeth with Brexit, and that is why I have the very firm view that the matter of Brexit must be brought to a conclusion. There are people in this place who will know, from the many cross-party conversations that we have had—I am proud that we have worked together across parties, putting aside our normal differences, again, in the country’s interest—that my view is that any extension should not go beyond certainly January and maybe February next year, because of the profound need that we must bring this matter to a conclusion. That is one of the reasons why I do not believe that a general election is the answer at all, because it will not solve the Brexit crisis.

[Julia Lopez (Hornchurch and Upminster) (Con)]

The second part of the Bill that the right hon. Lady just approved handed power to the EU to dictate whatever extension it wanted—[Interruption.] That is what this says.

[Anna Soubry]

I am so sorry to tell the hon. Lady, but she has obviously been reading something completely different from the rest of us because it most absolutely does not. The Bill has been carefully drafted, and properly so, to make sure that it is in the interests of our country that we take no deal off the table, because that is the best thing for this country. [Interruption.] I am quite happy to take an intervention, rather than have her just shouting at me. The Bill is all about not stopping Brexit, as many of us would like to, but stopping no deal for all the reasons that have been explained.

European Council

Julia Lopez Excerpts

Thursday 11th April 2019 Commons Chamber

[The Prime Minister]

I stand by what I have consistently said in relation to no deal being better than a bad deal, but we have a good deal. I have voted on three occasions in this House for us to leave the European Union with a deal. All Members of this House who wish to deliver on leaving the European Union need to think about how we can come together and find a majority that enables us to do just that. I have voted to leave with a deal; I hope the right hon. Gentleman will want to vote to leave with a deal in the future, too.

[Julia Lopez (Hornchurch and Upminster) (Con)]

Since the first defeat of the deeply flawed withdrawal agreement, the Government seem to have focused on how to make all other options worse rather than how to make the agreement better. Given that that narrow strategy continues to fail and cross-party talks may not bear fruit, what assurances and outline did the Prime Minister give our EU friends on her plan B, such that this latest extension becomes one with a purpose?

[The Prime Minister]

My hon. Friend is absolutely right—the point was made earlier about the European Union expressing that it wanted a purpose for any extension. I was clear with it about the approach we are taking, the talks we are having with the Opposition and, as I made clear in my statement last week, that if we cannot come to an agreement with the Opposition such that there would be a proposal that would meet a majority across the House, we would move to a means of ensuring that this House was able to vote on options and come to a decision as to its preferred option of what would be able to get a majority across this House. The extension is there to enable us to put that process into place.

Leaving the European Union

Julia Lopez Excerpts

Tuesday 26th February 2019 Commons Chamber

[The Prime Minister]

No. We have considerable detail in the political declaration—more than many people thought it would be possible to achieve at this stage. It is not possible to have a legal text, but the EU cannot agree legal texts with us until we are outside the EU. People are focusing on an issue at the heart of the future negotiations, which is the question of the balance between alignment with rules on goods and agricultural products and checks at the border. The spectrum is identified in the political declaration, because the UK Government’s clear position is that we are aiming for and want to work towards frictionless trade, and the EU is concerned about the impact of that on the single market. It is that discussion between the UK and the EU that is at the heart of the political declaration.

[Julia Lopez (Hornchurch and Upminster) (Con)]

In seeking to limit us either to an agreement that ties us to the EU without a clear end, an extension of this corrosive period of limbo, or a second public vote, does the Prime Minister share my profound democratic concern that Members of this House are contriving to deny those whom we serve any option that honours the referendum result?

[The Prime Minister]

As I have said on many occasions, I am clear that we should honour the result of the referendum. I believe that the deal we put before the House, which was rejected by the House, did that. The deal that we will bring back will reflect the work that we have done with the European Union in response to concerns that have been raised by this House. I expect and hope that I will be able to bring back a deal that Members across this House will see is the best way for us to leave the European Union.

Oral Answers to Questions

Julia Lopez Excerpts

Wednesday 19th December 2018 Commons Chamber

[Helen Goodman (Bishop Auckland) (Lab)]

5. What progress his Department has made on further voter ID pilots.

[Julia Lopez (Hornchurch and Upminster) (Con)]

10. Whether the Government plans to conduct further voter ID pilots; and if he will make a statement.

[Andrew Rosindell (Romford) (Con)]

12. Whether the Government plans to conduct further voter ID pilots; and if he will make a statement.

--- Later in debate ---

[Chloe Smith]

Yes, I do; the design of the pilots acknowledges that and makes sure that a free-of-charge alternative will be available.

[Julia Lopez]

My previous experience as a Tower Hamlets councillor highlighted to me the significant vulnerability of poorer, more diverse communities to electoral fraud. How can my hon. Friend improve democratic education across all communities so that we can make the electoral system more robust?

[Chloe Smith]

I thank my hon. Friend for bringing her experience and her voice to this debate; it is very important that we hear that. I also thank the hon. Member for Poplar and Limehouse (Jim Fitzpatrick), who also represents Tower Hamlets, for his cross-party support for this policy. It shows how important that is. It is essential that electors are aware that their voice is theirs alone. That message was promoted through various channels in May this year, including work with the Electoral Commission, Crimestoppers and the police, and we will do more to spread that message.

Oral Answers to Questions

Julia Lopez Excerpts

Wednesday 14th November 2018 Commons Chamber

[The Prime Minister]

What we have seen under this Government is absolute poverty reducing to a record low. We have also seen, as I referenced earlier, a significant reduction in the number of children in workless households. When we look at the figures, we see that actually three quarters of children are taken out of poverty when their household moves from being a workless household to a household with work, which is why the changes that we are making, to ensure that our benefit and welfare system encourages people into work and makes sure that work pays, are the right changes.

[Julia Lopez (Hornchurch and Upminster) (Con)]

Former New Zealand high commissioner and experienced trade negotiator Sir Lockwood Smith told our International Trade Committee:

“If you remain bound into the EU regulatory system you will not be able to have a significant global trade strategy”.

Will my right hon. Friend advise whether this might be one of the prices to pay for her Brexit deal?

[The Prime Minister]

No, it is not one of the prices paid that my hon. Friend refers to. We will still be able to strike those deals around the rest of the world. I am pleased to say that not only are a number of countries expressing an interest in that, but, as we have seen and as I saw two or three weeks ago, countries including Japan, Vietnam and Australia are keen that we should talk to them about joining the comprehensive and progressive agreement for trans-pacific partnership. We specifically looked at our ability under the proposals we put forward to strike those trade deals around the world, and we will have an independent trade policy—we will able to strike those trade deals.

Oral Answers to Questions

Julia Lopez Excerpts

Wednesday 11th July 2018 Commons Chamber

[Mr Lidington]

The Information Commissioner’s report has only just been published, and the Government will want to consider its recommendations in detail before responding. However, I think that the hon. Gentleman’s point focused on the possible commission of criminal offences. We are in a country in which, rightly, it is not for Ministers either to initiate or to stop criminal investigations or potential prosecutions. When there is evidence, it should be drawn to the attention of the police and the prosecuting authorities, and then let the law take its course.

[Julia Lopez (Hornchurch and Upminster) (Con)]

Q14. I do not consider myself to be a Brexiteer, but two years ago, when asked to make a choice about the future direction of the country that I love, I voted to leave the European Union, knowing that thatwould be difficult but believing that our nation could make it work. I was not alone, and I have now been joined by those who voted remain and wish to respect our democracy. Does my right hon. Friend agree that across our continent people are feeling dangerously ignored, and that if democracy is to mean what we all thought it did, tomorrow’s White Paper will show that we in Britain, at least, will not deny the instruction that our people have given us?

[Mr Lidington]

My hon. Friend is right. I think that those of us who campaigned on the remain side need to respect the decision that the people of the country took, and to ponder the damage that would be done to what is already fragile confidence in our democratic institutions were that verdict to be ignored. I am confident that when my hon. Friend reads the White Paper tomorrow, she will see that we have a vision for a future relationship that will meet the vote that the people delivered.

Oral Answers to Questions

Julia Lopez Excerpts

Wednesday 13th June 2018 Commons Chamber

[The Prime Minister]

The hon. Lady raises a number of aspects of this issue. The domestic violence and abuse Bill will be published in draft first. We have been taking our time, through the consultation, to work with those involved in working with victims of domestic violence and abuse, and to hear from victims and survivors, because we want to ensure that, as we bring this legislation together in the new Bill, we are getting it right for people. She refers to the issue of abortion. I believe it is absolutely right that a woman should have the right to a safe and legal abortion. As regards Northern Ireland, I believe that the best way—and my preferred way—is for that decision to be taken by the elected politicians in Northern Ireland, because it is a devolved matter. As regards votes on abortion in this House, they have always been treated as conscience matters and they will therefore be subject to a free vote.

[Julia Lopez (Hornchurch and Upminster) (Con)]

This month, the National Institute for Health and Care Excellence—NICE—will decide whether to fund a new treatment for neuroblastoma, a vicious childhood cancer that is affecting my constituent, Isla Caton. Will the Prime Minister encourage NICE and the drugs companies to do a deal to provide new treatments for children in Britain, so that their families do not have to fundraise for them to receive those treatments in America?

[The Prime Minister]

I know that my hon. Friend has raised this issue on behalf of her constituents; I believe that she has a constituency case involving the issue. NICE is developing guidelines for the NHS on the use of dinutuximab beta—I am not sure if I pronounced that correctly—for the treatment of high-risk neuroblastoma. It has not been able to recommend the drug as a clinically and cost-effective use of resources in its draft guidance, but it has consulted stakeholders on its draft recommendations. This is an ongoing NICE appraisal, and it is not for the Government to intervene in that, but NICE will obviously take all comments into account in its final guidance. I think that the manufacturer of the drug is currently making it available to some NHS patients through a compassionate use scheme, and has agreed to continue the scheme for patients who are currently receiving the treatment.

Public Sector Pay Policy

Julia Lopez Excerpts

Tuesday 5th June 2018 Westminster Hall

[Chris Stephens]

It is an entirely false economy. According to research by the Scottish Trades Union Congress, 70p in every pound of public sector money ends up in the private sector economy. It would follow that pay restraint in the public sector harms not only public sector workers and their wages, but spending power in the private sector economy. I hope the Government will look at that.

Will the Minister publish the percentage of employees in each UK Government Department who are in receipt of tax credits? I am sure I am not the only Member of this House who will want to know how low civil servants’ pay is across the country. If we had an indication of the percentage of civil servants in each Department who are in receipt of tax credits, we would find out exactly how low pay is in the public sector.

Hon. Members have mentioned the views of public sector workers. I want to list just some of the comments received by the PCS union from across these isles. Fiona works in the Department for Work and Pensions, and this is how she felt:

“The government is seeking to divide us into deserving and undeserving. Our colleagues in universities are seen as deserving, but those who work for government are not. It’s atrocious. If the government expects us to go into the civil service, they can damn well pay us for it.”

Neil, in the Office for Students, said:

“We need to get back to where we were. The cost of living is not waiting for us to catch up.”

Tracey, at HM Revenue and Customs, said:

“We are not getting paid enough to keep up with increases in the cost of living. People are doing the same job as colleagues but they are being paid less because there have been no incremental pay rises.”

Wilfred, who works for the Ministry of Justice, said:

“Civil servants are overworked and do the most important jobs for society. In the MoJ we work for judges and deserve respect for the jobs we do. Our skills should be reflected in our remuneration.”

Nicole, who works for the Department for Work and Pensions, said:

“The question should be ‘Why don’t I deserve a pay rise?’ We deserve a better quality of life. DWP is still one of the lowest paid government departments. The fact that we are office workers doesn’t make it less important that we can't afford to live.”

Richard, who works for the Marine Management Organisation, said:

“I’m now earning less money than I was 17 years ago. Prices have gone up but wages have not kept up.”

Susy, who works for Ofgem, said:

“We work hard to achieve results, otherwise what’s keeping us going? There has to be more than job development - we are not shown respect.”

Gordon, who works for the Department for Work and Pensions, said:

“Since the pay cap was imposed my standard of living has fallen every single year. We are falling behind the private sector and people are leaving the department because of low pay.”

Scott, who works in DES Student Loans, said:

“We provide a vital service to students. The cost of living is not in line with our wages. We want a fair day’s pay a fair day’s work.”

Those are the real concerns of civil servants who work across the UK Government Departments.

There are other concerns, too. Some Departments have been reshaping their services, resulting in office closures and staff moving to other locations. Will the Minister confirm that not all those Departments compensate civil servants for office moves? Does he appreciate that some civil servants experience a double whammy of a 1% pay rise and an office move that causes additional travelling costs?

As the Member of Parliament with a higher percentage of public sector employment among those in work than in other constituencies in these isles, I have campaigned vigorously for the public sector pay cap to end. I listed many reasons for that earlier, such as the fact that 70p in every pound goes into the private sector economy. Increasing pay for civil servants will boost the whole economy and increase spending power. We cannot go on with a system where the Government advocate pay restraint but then spend money propping up low pay in the public sector via the benefits system.

[Julia Lopez (Hornchurch and Upminster) (Con)]

Is the hon. Gentleman aware of how much private sector employees get in his constituency? There is a risk in certain parts of the country, where the public sector is so dominant, that the relative spending power of public sector workers will make it difficult for private enterprises to flourish, because they cannot attract the correct employees to their business.

[Chris Stephens]

I take the opposite view. In areas of high public sector employment, public employees’ spending power keeps the private sector economy alive. They keep jobs going in the private sector with the money they spend, so I am afraid I do not agree with the hon. Lady’s analysis.

It is an honour and privilege to speak on behalf of millions of people employed in the civil service on these islands. I look forward to the Minister responding positively to the issues raised today.

--- Later in debate ---

[Julian Knight (Solihull) (Con)]

It is a great pleasure to serve under your chairmanship, Mr Owen. I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing this important debate.

Let us first get something straight about the British civil service in devolved Administrations and in England and Wales. According to the international civil service effectiveness index, this country is fortunate to have the finest civil service in the world. Sometimes in our surgeries we have little problems come to us, but we have to realise that for every situation we see, things might not be so bad and there are thousands of cases that civil servants get right and the decisions made are in many instances spot on. Compared to many other countries, as we travel around the globe and become involved in political discussion with people from other nations, the UK civil service is incredibly honest and has a code of ethics that is an example to the world. It is important to recognise that fact here today.

Over the past decade both Labour and the Conservatives have had to make difficult decisions about how to prioritise public spending while reducing the deficit. However, we are now in a position to lift the pay freeze and make the investment needed to help the service maintain its world-leading position.

According to the Treasury, roughly £1 in every £4 of public spending is spent on pay. After the crash, therefore, politicians of all parties, including Labour and the Scottish National party, recognised that restraints on public sector pay had a necessary role to play in bringing the deficit under control. That was absolutely the correct choice to make at that time. We have to put this into context. A GDP debt of 11% is enormous. We can cope with that for a year or two, but not for a sustained period. We have to get it under control. If we do not, the markets go against us, the country ends up borrowing at far higher rates of interest, and we end up going down the road of Greece and Spain where we have seen public sector pay actually cut: I do not mean in real terms, but actually cut by up to 40%. People’s old-age pensions and fixed pensions were cut at the most vulnerable time.

[Julia Lopez]

Will my hon. Friend give way?

[Julian Knight]

I will give way, although I am conscious of the time.

[Julia Lopez]

I thank my hon. Friend for giving way. I totally agree with him. Although there has been a public sector pay cap over the past years, that does not tell the whole story. Does he agree with me that across much of the public sector during those years, pay increased automatically with every year served because it had been contractually agreed before the cap came into force? Also, staff could move between bands, so it is not the case that there was completely flat pay. It is more nuanced.

[Julian Knight]

My hon. Friend makes a fair point, but it is right and proper that the Government now take into due consideration the independent pay review bodies so that the 1% cap is dispensed with over time. However, I take my hon. Friend’s point in its entirety.

--- Later in debate ---

[Oliver Dowden]

I thank my hon. Friend for that helpful intervention; I am absolutely sure that he is correct.

Inequality was also raised, but again let us look at the actual figures. Income inequality is down since 2010, and is lower than at any point under the last Labour Government, so let us start with the facts of the situation. Not only that, but we have helped the lowest paid. For example, when the freeze was introduced, we ensured that anyone earning under £21,000 received at least a £250 increase in their pay.

In addition, as many of my hon. Friends have mentioned, we introduced the national living wage, the effect of which has been to benefit more than 2 million people, leaving them more than £2,000 better off since its introduction. As a result, figures from the last two years show that the lowest paid in our labour market received pay rises almost 7% above inflation, and many of those who benefited were our lowest-paid civil servants. Indeed, the overall picture shows the salaries for junior grades of civil servants remaining comparable to private or public sector equivalents, and in total remuneration both administrative assistants and administrative officers—the lowest paid in the civil service—are paid more than their private and public sector equivalents in London.

[Julia Lopez]

My hon. Friend is making a strong case for the reasoning behind the Government’s decisions. However, many of us are concerned that we are now seeing false economies. For instance, restraining public sector pay is leading to increases in agency costs and a loss of talent, which has reduced productivity in some sectors. We now need to look at what those costs are. What analysis has he done of those costs versus the costs of increasing pay?

[Oliver Dowden]

My hon. Friend is absolutely right, and in a moment I will come to the fact that we have actually lifted the 1% pay cap across the board.

However, I will make one further point on the measures the Government have taken to help the lowest paid—and, indeed, all workers. I am referring to the increase in the personal allowance. When we came to power in 2010, the personal allowance—the tax-free allowance—stood at £6,475. It now stands at £11,850. That is near enough a doubling, and it means that any basic rate taxpayer will be more than £1,000 better off compared with 2010. Through a combination of ensuring that we have a national living wage and tax cuts, we have ameliorated many of the impacts of the necessary public pay constraint, which we had to introduce. In addition, we have frozen fuel duty, saving the average driver £850 compared with pre-2010 plans.