Non-geographic Telephone Numbers

Debate between Nick Hurd and John Healey

Wednesday 26th June 2013 Westminster Hall

[The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)]

It is an enormous pleasure to serve under your chairmanship, Mr Brady, for the first time, at least in this Chamber.

I congratulate the hon. Member for Birmingham, Northfield (Richard Burden) not only on securing the debate, but on how he presented his argument. I extend those congratulations to the right hon. Member for Wentworth and Dearne (John Healey), because they have together done an excellent job. They have taken a forensic approach to using the parliamentary question process to expose some, frankly, awkward and inconvenient truths about a system that, as Ofcom has said, clearly does not work for anyone at the moment. It is quite right to raise that substantive issue.

The right hon. Gentleman, who was a distinguished Minister, will recognise that I feel, in coming to this for the first time, that this is one of those situations in which Departments have been allowed to do their own thing, without very much effective co-ordination from the centre, over many years and during different Governments. We have reached the point at which we have to acknowledge that the current system does not work for anyone. Ofcom was quite right to make that point, and it is also right that the National Audit Office should look at the issue. My congratulations are therefore quite genuine.

The hon. Member for Birmingham, Northfield mentioned that the Cabinet Office previously had a role, but it has not been directly involved in recent years. We are now reviewing whether there is a case for central control to play a more proactive role. The reason for that is straightforward: we see ourselves as champions, first, of transparency across Government—there is a failure of transparency here—and secondly, of the taxpayer in ensuring that those who supply services to the Government and the public deliver best value.

Through the Efficiency and Reform Group, we take great pride in ensuring that historical contractual arrangements with large corporates are much less cosy than they were. I refer the right hon. Gentleman and the hon. Gentleman to its recently published report, which demonstrates that, through a much more rigorous and robust process, we saved the taxpayer £10 billion last year—this is serious money—by doing things that we consider to make hard commercial sense but had not been applied. For both those reasons—as champions of transparency and of driving a hard deal with the taxpayer and the public—we are taking an increasing interest in this area.

The timing of the debate is slightly awkward in the sense that we are all waiting for the NAO report. As a former Minister, the right hon. Member for Wentworth and Dearne will know that Ministers sometimes read a brief that is not quite what they want to have to say, and this is one of those moments. Having looked at what is happening, I sense that there is frankly a substantial problem, as I have said. It is not just about the cost, which is real and of course massively relevant at a time when our constituents are very stretched; there are also big issues around complexity and transparency, and the system does not work.

There is clearly a real problem, but I see some encouraging signs of movement and transition. It probably needs to go further and faster, but there is clearly movement in some areas. One area is around transparency, which matters a lot because it is the great disinfectant. The Ofcom policy proposals are all about simplifying the matter and making it less complex and more transparent. Responding to those proposals is now under way.

I also see progress in the action taken by Departments to reduce costs. The hon. Gentleman did not mention this, but we should recognise that HMRC, which is a hugely important Department in the context of this debate, has already moved two of its helplines, the tax credit and Welsh language helplines, from 0845 numbers to 03 prefix numbers to reduce the cost to callers. It is also committed to moving all of its personal tax, expenses and benefits helplines to 03 numbers by the end of the summer, which was welcomed by the Public Accounts Committee and the voluntary sector in particular. Clearly, there has been movement both on transparency and to reduce costs.

Another area, which was mentioned by the hon. Gentleman, is about reducing the need for the public to use the phone in engaging with the Government. He makes a fundamental point that we will always be in a situation in which a proportion of the population will not be online or comfortable with being online and will need what we call in our clunky Government language “assisted digital”. The Government will shortly announce plans to invest taxpayers’ money in a radical, ambitious process to go digital by default, which will ensure that no one is left behind and which should transform the experience of dealing with Government—online as often as possible and practicable. We all know the benefits of online communication, and success on that mission will mean that we reduce the need for people to use the telephone and be exposed to some of the vagaries, complexities and costs that we are debating here now. It is important for that to be registered, because the Government digital strategy, which was published last November, sets out how we intend to redesign digital services to make them straightforward and convenient so that all who can use them will choose to do so while those who cannot are not excluded. That channel shift, as we call it, will result in a reduction in the use of call centres, telephones, post and in-person centres, thereby reducing the problem of higher non-geographic phone charging, which is the subject of this debate.

[John Healey]

I am grateful to the Minister for the way in which he is responding to this debate. I am intervening before he returns to his brief, because his response so far has been genuine, open and welcome. He recognises that there is a significant problem, which is very welcome. He says that the Government are now reviewing the area, which is also welcome. He talks about a problem of timing. May I perhaps help him with that? The NAO has indeed now agreed to carry out a cross-Government review of the use of non-geographic numbers, some of which have these rip-off rates. The Comptroller and Auditor General tells me that he expects that report to be completed next month, in July, so the Minister may not have to wait long before he considers action. I invite him to tell the Chamber how he intends, from the centre of Government, to respond to that NAO report and the findings that it may have.

[Mr Hurd]

I am grateful to the Opposition for any offer of help, but I approach such offers with some wariness, and my instinct was right on that one. The right hon. Gentleman is right to say that the NAO report is imminent; I do not have an exact date, but July seems to be the month. My awkwardness comes from trying to give the hon. Gentleman and the right hon. Gentleman as robust a response as they would like. None the less, we must wait for that report and its recommendations to see to what degree they encourage a higher level of central co-ordination and control, which both Members are instinctively calling for.

We will also have to wait to see whether the NAO gives the Cabinet Office some sense of mandate to play a more proactive role in this exercise, which is a move towards not just greater rigour and transparency, but a great deal of commercial awareness when it comes to conversations with the suppliers of services, who, as the hon. Gentleman has said, might have benefited disproportionately in the past with regard to the charges that they have effectively made to the public. The point that I was labouring is that we now have a real body of experience that is saving billions of pounds of taxpayers’ money in negotiating and renegotiating, often in flight, these contracts with suppliers to ensure that the taxpayer gets a better deal.

What I am asking of hon. Members is patience. Let us see the NAO report and what signals it sends in terms of the deficiencies of the current system and the need for a bit more central control, and then the Cabinet Office will respond. We are now a great deal more interested in this subject than in the past because we recognise that the system is not working for anyone. I just hope that I can reassure the hon. Gentleman and the right hon. Gentleman on that.