Happy New Year! With Christmas and New Year it has been a while since my last Report at the end of November.
Unusually this week even Central London saw some fairly thick snow, prompting Mayor Boris to cast doubt on climate change theories. To be fair, he still voiced support for measures such as insulation on fuel economy grounds, but he does not seem to have understood the difference between ‘climate’ and ‘weather’.
This month we have had a lot of talk about referenda on Scotland and Europe. January was also the month when the Chancellor hoped he had sprung a trap for the opposition on benefits and tax credits uprating. More on both below.
The quirks of questions
Sometimes you spend a long time trying to craft the perfect question to a Minister in one of the Departmental question sessions, only to find you are not called, and even if called , that no-one takes any notice. On Wednesday 18th December I stayed in the Chamber after PMQs to hear the Defence Secretary’s Statement on Afghanistan. Defence and foreign affairs are not areas I have chosen to specialise in, and while they are extremely important it is sensible to focus one’s energies at Westminster. However being there, I decided to ask a question, about womens’ and girls’ rights and education. Being a statement, if you ‘stick it out’, exercising by jumping up and down between each question and answer, you generally get taken – last on our side in this case. But my more spur of the moment question featured in the Independent’s report of the session!
I seem to have had a very ‘dry’ spell in terms of getting questions in the various ‘ballots’ for Oral Questions in the last few weeks, not for want of trying. But I’ve had a bit of success in ‘bobbing’ (the ‘technical’ term for trying to ‘catch the speaker’s eye even if you haven’t been drawn for a question). Here’s some I have had:
1. I had my first PMQ in several months on 5th December asking the Prime Minister a question about tax relief on pension contributions.
“Q11.  Sheila Gilmore (Edinburgh East) (Lab): Whatever announcements the Chancellor makes on pension tax relief shortly, is it not a fact that when this Government came to power, they made changes to pension tax relief that gave a tax cut of £1.6 billion to people earning more than £150,000? [Interruption] I see that the Chancellor has to give the Prime Minister his crib sheet.
The Prime Minister: I am afraid the Hon. Lady is wrong. We inherited a plan to raise £4 billion in taxes from the wealthiest people, and we raised that further. My Right Hon. Friend the Chancellor will make some further announcements in a moment.”
The point behind this question is that when Labour introduced the 50p tax rate, they made a change to pension tax relief so that people paying that higher rate of tax did not also automatically get 50p tax relief on every pound put away in a pension. On taking office, the Coalition Government changed this so that ‘full’ relief was given to higher rate tax payers. As so often happens at PMQs the Chancellor had to lean over to whisper an answer to the PM (hence the comment about crib sheets). See p11 http://bit.ly/WdlAAz.
2. 5th December was a particularly busy day as I had a Select Committee meeting in the morning, met with a constituent who had been on a tour for a rather brisk cup of tea, then asked my PMQ. I also had been drawn for a short debate in Westminster Hall on ESA issues (see below) and in between was the Chancellor’s Autumn Statement, where I asked the Chancellor a question about figures the Government keeps quoting for job creation (more on jobs figures later). See p35 http://bit.ly/WdlAAz.
3. On 6th December I had a question to the Department of the Environment, Food & Rural Affairs (DEFRA) on low energy lighting – a most unsatisfactory response. (more later on this issue) http://bit.ly/Wdp3Pi and the same morning DWP minister Steve Webb made a formal statement on benefit uprating where I had a chance to put a question to him (see p32 http://bit.ly/Wdp3Pi)
4. Monday 10th December was the day for DWP questions. I wasn’t drawn but I was called on a question about the Work Programme which is the Government’s flagship employability scheme. The first published statistics had been published about 10 days before this, and showed that the scheme had not met the targets the Government had set for its first year. For nearly 18 months we had been told that no information could be given about outcomes until the first results had been statistically verified. However, the Government didn’t like its own statistics they accompanied them with unverified reports from some of the programme operators stating that actually some 200,000 people had ‘started’ jobs. My question was about this. See p13 http://bit.ly/WdpeKF.
Following this session, the Disability Minister (Esther McVey) was called to answer an Urgent Question about further redundancies at Remploy Factories. After the initial question and answer other people have an opportunity to ask questions, and I asked the Minister to stop the process given that most of the people in the first round of redundancies hadn’t been found jobs. See p32 http://bit.ly/WdpeKF.
5. The following day I got in another question about the Work Programme, this time at Treasury Questions. See p6 http://bit.ly/WdpeKF.
6. I don’t often ask questions on local government (because it is devolved) but housing remains a passion of mine and I asked a Christmas themed question on 17th December:
Sheila Gilmore (Edinburgh East) (Lab): There are 2,000 households with children in bed and breakfasts, 880 for more than six weeks. There is room at the inn, but no cooking facilities for Christmas, and the price is an increase in housing benefit. What do the Minister’s colleagues in the Department for Work and Pensions say about that?
Mr Foster: The Hon. Lady fails to acknowledge the significant reduction in the number of children in those circumstances under this Government. I nevertheless accept it is important that we do everything we possibly can to assist these families. That is why we are taking action with the relevant council and why we are making £390 million available to assist with the changes in welfare benefit, which her Government never did.
(The point of course, is that the £390m – called Discretionary Housing payments – is only necessary because of the cuts being made and will in no way make the ends meet. The Labour Government didn’t need discretionary payments because it wasn’t making such cuts in the first place. The trouble with oral questions like this is that you don’t get in for another bite at the cherry even when you believe the Minister to be wrong! See p5 http://bit.ly/Wdmv3G.
7. On 8th January I asked the Deputy Prime Minister whether he would support the 60,000 people who have signed ‘Pat’s Petition’ asking for a ‘cumulative impact assessment’ to be carried out of the effects of all the various welfare reform measures on disabled people. His response was to repeat the DWP line ‘when did the Labour Government carry out such an assessment’ – but the real issue is that at no time did the Labour Government carry out such a raft of changes over a limited period. See p9 http://bit.ly/WdmcpH.
The Wintry Autumn Statement
The Chancellor’s Autumn Statement slipped back to 5th December this year. It wasn’t only the weather that was cold by then, so was the economy. Growth has been much slower than predicted in 2010 when the Coalition announced its Emergency Budget and Comprehensive Spending Review (June and October 2010 respectively).There are conflicting views as to why this happened, nevertheless it is a fact the economy is flatlining. The Office of Budget Responsibility report of the Pre-budget predicted growth would be 2.5% in 2011 and 2.75% in 2012, (based on the policy initiatives of the previous Government).
The Government has made a lot of the ‘deficit’ having been reduced by a quarter but this has to be viewed in the context of their original plan to eliminate the deficit by 2015. To achieve this, the reduction by now would have had to be closer to one half. The target has now been pushed back to 2017.
As a result of this, government borrowing is rising faster than predicted. In the run up to the Autumn Statement many commentators pointed to a big hole opening up in Government finances which could involve drastic further spending cuts. (For anyone wanting to follow up on these arguments a report called Fiscal Fallout published in November 2011 by the Social Market Foundation and the Royal Society of Arts is a good place to start).
In the event, the Chancellor deliberately put off a decision about further departmental spending cuts to the next spending review, but he found savings by limiting the uprating of benefits and tax credits by 1% over the next three years.
Since the autumn statement prospects haven’t improved much. Just this week we have the news that GDP fell by 0.3% in the last three months of 2012.
Employment Figures and the Work Programme
When criticised on the economy the Government points to the fact that unemployment has been falling and that ‘1 million’ new private sector jobs have been created since the General Election. One of their justifications for cutting back the public sector was that this would ‘free up’ the private sector to grow. These figures are causing considerable comment among economists and business commentators, since usually a recession and low growth is accompanied by reduced employment.
I have been pursuing this issue with both the Prime Minister and other Ministers at question sessions and in debates over the last year. By the beginning of 2011 the Prime Minister claimed 500,000 new private sector jobs had been created since the election. Arguably many of these were the result of the stimulus measures of the Labour Government. The 1.2 million quoted towards the end of 2012 include that earlier 500,000 which suggests growth in jobs has actually slowed up. ONS statistics show that around 170,000 of these result from a reclassification of FE college jobs as private rather than public sector. Given the increase in tendering out of public sector functions to the private sector, it is possible that there are other jobs like this. More recently, the Guardian newspaper published an analysis which showed that of the 500,000 new private sector jobs appearing in the statistics for the year to November 2012, at least one fifth appeared to be unpaid work experience placements. See The Guardian data blog: http://bit.ly/XG7NOy.
Many of the new jobs are part time jobs. I have always been a great advocate of part time and flexible working but there appears to be increasing numbers of people who are not choosing this, rather it is a necessity. Part of the explanation may be down to structural changes in business and the labour market which may not change anytime soon. Retail has moved from the old 5 and a half day opening to a seven day week with extended hours. The amount of ‘footfall’ does not increase in line with the hours, so the workforce gets spread over the time, with ‘flexible’ hours matching busy times. One result of this increase in part time work is more workers must claim tax credits and housing benefit, so explaining the ‘shocking rise’ the Government made much of in the Uprating Debate (see more below).
When asked what it is doing about unemployment the Government refers to its ‘flagship’ employability service, the Work Programme. This was to bring together all previous types of employment support into one for those unemployed for 12 months or more (less for young people and those coming off Incapacity Benefit). This we were told would be the biggest, the cheapest and the best such programme ever. For the first 18 months DWP Ministers refused to give any interim outcome data on the ground that it had to be properly verified first (and forbade the providers from doing so either). Shortly before Christmas results revealed the first year target had not been met after 14 months of ‘outcomes’. Early days, said Ministers, and anyway there had been some 200,000 job starts, conveniently announced by the ‘trade association’ for the providers. But why should we now suddenly be expected to believe such unverified data when we were told before how misleading that could be?
Employability programmes of course do not create jobs and in many sectors of the economy there isn’t increased demand for more staff. The Government is very keen to talk about how cheap its employability programme is, but that is the underlying problem. This may seem an odd thing to say given that the programme overall is a huge ‘spend’, but the amount being paid per person (and that only after a job is sustained) is actually relatively low. The Work & Pensions Select Committee is carrying out an investigation into what actually is happening with these programmes. We were promised these would be highly personalised and intensive, but this seems far from the experience of some constituents I have spoken to. If anyone has experience of the Work Programme or knows someone who has, I would be pleased to hear from them.
Or is it ‘referendums’? Apparently the latter is now accepted as correct, just as these have now moved from ‘rare’ in our constitution to fairly frequent. This month the Westminster Parliament debated and passed the order necessary to pass referendum holding powers to the Scottish Parliament on the basis of the ‘Edinburgh Agreement’.
On Wednesday 23 January David Cameron was welcomed into PMQs by cheering and Tories waving order papers, following his much trailed Europe Speech promising a Referendum, probably in 2017 if the Tories win the 2015 election. However the cheers were more muted whenever Cameron indicated that he was hoping to be able to campaign for a ‘staying in’ vote. If the Prime Minister hoped his speech could ‘park’ the issue for a while, that is certainly not the case.
Welfare Reform Debates
I have taken part in several debates on this subject over the last couple of months. The biggest was the Welfare Uprating (Make Labour Look like the Party for Skiving Fat Slobs) Bill (Andrew Rawnsley’s words in the Observer). This was announced by the Chancellor in the Autumn Statement now infamously, introduced by another reference to people heading off to work watching their non-working neighbours with the blinds drawn. The Chancellor, as well as saving money, saw this as a trap for Labour. The big justification was that ‘benefits’ had risen 20% since 2007 while wages had risen only 11%. Over a longer timescale, a different picture emerges with unemployment benefit having fallen from 21% of average earnings in 1979 to under 11% now. Two thirds of those affected turned out to be people in work (through the impact on tax credits, housing benefit, maternity pay and statutory sick pay). Nor had those on tax credits benefited from the 5.2% benefit increase last year (based of course on very high inflation that year) because for the last two years they haven’t been increased in line with inflation. Despite all the talk of making work pay tax credits had already been squeezed. Clearly stung by the criticism that the 1% uprating was hitting people in work, Iain Duncan Smith launched an attack on the whole idea of tax credits (despite the fact that his Universal Credit will be doing a similar thing, if less generously) and quoted figures for increases in spend which were shown to be wholly wrong by Channel 4’s FactCheck. Despite this, Ministers went on quoting these wrong figures throughout the debate.
Actually in my case, it was less a matter of taking part in the debate as ‘waiting to speak but not being called’. Numbers wanting to speak on this exceeded time on both days given for debate. I posted my notes for the speech I would have made on my website: http://www.sheilagilmore.co.uk/the-welfare-uprating-debate-and-what-i-would-have-said/.
ESA Reassessments – Westminster Hall – 5 December
I had secured a half hour debate on the frequency of people being reassessed for Employment & Support Allowance. These short debates are basically 15 minutes to put a case and then 15 minutes for the Minister to respond. They are good for making a more detailed critique of a particular issue, which is very difficult in the bigger ‘set piece’ debates in the main Chamber. Sometimes – although not on this occasion – you can even extract a promise of change or at least investigation on the part of a Minister. See from p99 http://bit.ly/WdlAAz.
Disabled people and carers – Westminster Hall – 18 December
This was again a much oversubscribed debate, on the Opposition side anyway. This was a 90 minute debate, but speeches of backbenchers (other than the MP who had obtained the debate) were limited to 4 minutes, with only two Government backbench speakers. This debate covered a wide range of issues around the changes being made to benefits for disabled people and for carers. See from p99 http://bit.ly/Wdln0c.
Atos Work Capability Assessments
On Thursday 17th January a three hour ‘backbench chosen’ debate took place on the assessments for Employment & Support Allowance. This is an issue which I have been doing a lot of work on. Not a voting or decision making debate but one which I think demonstrated the wide range of concerns there are about a system which is placing too many people in the wrong category. Significantly those Government backbenchers who spoke were critical too. Only the Minister defended the process. Speeches again were severely time limited but at least I got my few minutes worth. See p37 http://bit.ly/WdjTTy.
Bedroom Tax – 23rd January
Yet another heavily subscribed 90 minute debate. This time not a single Government backbencher came in to listen or speak. Most speakers could have spoken for far longer than we had the chance to do (another 4 minute limit). Although this change was considerably debated a year ago, it is only recently that it has become ‘real’ to those affected as letters are now being sent by council and housing association landlords to affected tenants. Most MPs are getting a lot of constituent enquiries about this, and most are astonished that even people with adapted houses or disabilities aren’t exempted. But as I said over a year ago, it’s not just such extreme cases that need attention; why should a spare room be seen as an unreasonable luxury? The amount many constituents will lose puts the 1% uprating in the shade (although virtually all will be affected by that as well!) One constituent I’ve spoken to with a second ‘single’ bedroom will be losing £50 a month. Even if a move could be found, moving itself is a costly business. I think, perhaps more than any other measure, this one is bringing it home to people that the Government’s welfare ‘reforms’ are hitting lots of ordinary people. Read my speech from p99 http://bit.ly/WdhvMy.
Personal Independence Payment Regulations
In December the Government announced the final draft Regulations for the new benefit which will be replacing DLA. The Minister also announced a slowing of the move for existing claimants. Originally scheduled to start in spring 2014 the majority of current DLA claimants will not be assessed for PIP until after October 2015. Around 500,000 existing claimants will be reassessed before that date, for instance if their renewal date falls in this period, or their circumstances change. The Government’s own figures show that 170,000 people are expected to lose benefit by 2015 and 450,000 by 2018. The Minister was in front of the Select Committee on 21st January for over two hours talking about the regulations, and confusingly told us we should ignore the projections for after 2015 because they were ‘speculation’ – despite having been published by her Department. You can view the session at http://bit.ly/Wz4CZB and I have put more information about PIP on my website http://www.sheilagilmore.co.uk/welfare-reform-and-its-impact-on-disabled-people-and-carers/.
January also saw the publication of the delayed White Paper on proposals for a new flat rate state pension to start from 2017 (this could be a busy year!). The Work & Pensions Select Committee will be scrutinising the draft Bill next month, so I will report more then. One big question is whether the Pensions Minister has managed to ‘square the circle’ of producing a fairer system within the current spending projections (as the Treasury apparently demanded). If you have questions or views on this please get in touch.
Last week I did a video for Pensions Week on the government’s proposals for private pensions. In particular I talked about why its risk-sharing scheme design would need its own legal framework and how that might affect employers. To watch the video go to http://bit.ly/Wdtlq2.
Low Energy Lightbulbs
Sadly the constituent who originally brought this issue to my attention died suddenly just after Christmas. My condolences go to her husband, family and friends who will miss her terribly. The best tribute I can pay is to continue the campaign, and ensure that her calls are answered.
On 22 January the City of Edinburgh Council’s new Petitions Committee heard its second petition from Dumbiedykes residents calling for a public transport link from the area to the Southside. In November I met with residents to discuss the absence of a suitable service and suggested that they establish the petition which has now been heard. Due to the steep gradient out of the ‘Holyrood Valley’ residents in the area face a 45 minute journey via George Street to get to the Southside to visit the doctor’s surgery, pick up some messages, or access community facilities. Needless to say this causes great difficulty for the elderly, people with mobility problems and parents with small children. Many families in the area maintain strong links with the Southside, having moved from the area when Dumbiedykes was built.
Social isolation has increased since the area lost its direct link a few years ago. Councillors also heard that new student accommodation is being built in the area increasing the need for a connection to the south of the city.
The Dumbiedykes community organised a strong campaign and worked tirelessly to get this matter heard. Their hard work has paid off with Councillors calling on officials to explore all options and produce a series of reports due before the next two meetings of the Transport and Environment Committee. Officials must now think creatively (and economically) to provide a service – either by establishing a new route altogether, or work with Lothian buses to divert existing services.
Santa Comes to Craigmillar Books for Babies
On the Saturday before Christmas I popped in to the new Craigmillar Library to see the Christmas Books for Babies event. It was packed with babies & toddlers and mums & dads. Santa came with his sack – full of books of course! This was the third such event in the week which were all packed out! (Future school planners please note there seems to be no lack of babies in the area!)
If you haven’t been to the new Library it is well worth a visit. The library is equipped with plenty of computers, a fantastic collection of books and audio books for all ages. The addition of a new cafe and comfy public seating area means that you can take a moment to enjoy a quick break. Buses 2, 14, 21, and 30 stop just outside so the new library is easy to get to whether you’re coming from Newcraighall, or Prestonfield. The 42 stops nearby providing connections from Duddingston and Northfield.
I was rather impressed to be told that registrations were up 20% in the first three weeks of opening the library. Details of the library can be found at http://bit.ly/Wz43z6.
On Saturday 5th January I was delighted to meet the City of Edinburgh Basketball Club and watch their senior men’s match against Glasgow Rocks. The team is based in Portobello. Along with MSP Kez Dugdale, Councillor Maureen Child, Council Leader Andrew Burns, and Portobello High Head Teacher Peigi McArthur, we saw an exciting match where the local team ran the Glasgow professional team very close (61-72). The match was the culmination of a one day ‘Basketball Festival’. The Club has a whole range of activities from the ‘Sunday Hoops’ (8-10 years) upwards. To join in, or find out about future matches go to http://www.cityofedinburghbasketball.net.
Swap Starbucks for Serenity
Boycotting Starbucks for their tax and employment practices? Likely to be near the Canongate? I strongly suggest you try the Serenity Cafe in Jackson’s Entry, running between the Canongate and Holyrood Road (near the Tun). Serenity Cafe is a social enterprise set up as part of a project for people recovering from addictions. As well as the cafe it’s a base for a large number of drug and alcohol free activities, including music and art. If you are looking for a place for a relaxing coffee or snack give it a try – and know you are helping a small bit of the real ‘big society’.
Castlebrae High School
The formal consultation on the closure proposal ended on 7th December and you can see my submission on my website at http://www.sheilagilmore.co.uk/castlebrae-community-high-school-consultation-response/.
The Council meeting which will make a decision on this takes place in March and the campaign is far from over. Save the Brae have been meeting with Councillors, several of whom, from all parties, have been on visits in the last few weeks. The campaign also sent a very good presentation to all Councillors which clearly showed the important links between the regeneration of Craigmillar and the need for a school.
Portobello High School
The consultation on whether the Council should take a ‘private bill’ to the Scottish Parliament to allow the new school to be built on a part of Portobello Park closes on 31st January. There have been several exhibitions, and two large public meetings of over 300 people each, showing the strong interest there is in the issue. If you haven’t yet made your voice heard, depending when you are reading this, there may still be time to respond, whatever your view is. If you haven’t completed the survey, please do so before 5pm on Thursday, 31st January.
http://bit.ly/VPCfIi. You can see my submission on my website at http://www.sheilagilmore.co.uk/portobello-high-school-private-bill-the-school-must-be-built-on-the-park/
The new developers have stated that they will be responding to the consultation which took place before Christmas, and will be bringing forward their new proposals for the southern part of the site in March – so watch this space.
Hillcrest Housing Association held a public exhibition/consultation on their plans for part of the former Eastern General hospital site. Developing this site has been slower than anticipated and current plans differ in layout from those previously granted consent. I went along to see the plans on Thursday 24th January. There will be a small number of properties for sale, but most will be for rent (the balance between ‘low’ and ‘mid market’ rent is still to be agreed) My initial view is that there are too many flats, but that is possibly not a material planning consideration, and is driven largely by the cost issue in a climate where the amount of money coming from the Scottish Government to housing associations has reduced. I will be making some comments and will post my letter on my website when I do so.
Dates for your Diary
5pm, Thursday 31st January – deadline to submit comments to the City of Edinburgh Council proposal to take a Private Bill to the Scottish Parliament – complete the survey at http://bit.ly/VPCfIi.
From Wednesday 6th February – Bridgend Growing Communities: An introduction to growing your own food – for full details contact Hollie on 0131 664 0555 or email@example.com