Financial Inclusion: Young People
Will the Minister give way?
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Financial Inclusion: Young People
But we have half an hour.
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Financial Inclusion: Young People
It is a pleasure to serve under your chairmanship, Sir John. You have launched an unfortunate trend of people fessing up to their first jobs; however, it gives me the opportunity to make a point about the context in which we are debating the financial inclusion of young people. My first job—probably illegally, at the age of about 10—was a Saturday job helping out a milkman on the milk round. I then had a Christmas holiday job helping the Royal Mail to deliver Christmas letters, and a summer job packing electric parts, all of which I did in Bedford. The key point, which relates to financial inclusion, is that a lot of what this Government are doing is turning employers away from being able to offer those job opportunities to young people. I really hope that they will rethink that, because as we have heard, the number of young people out of employment is going up quite considerably. I congratulate the hon. Member for Hertford and Stortford (Josh Dean) on securing this debate. I also thank him for the tone and the insights with which he opened it, which all subsequent Members reinforced, and would like to refer to some of the points made. The first was from the hon. Member for Hertford and Stortford, who recommended more action to support small sum lending and spoke about the beneficial effects that that can have on credit track records; I will reinforce that point a little later in some questions to the Minister. My hon. Friend the Member for Keighley and Ilkley (Robbie Moore) raised a point that the hon. Member for Ilford South (Jas Athwal) spoke about from a different angle, which is that young people make quite an important decision that affects their financial wellbeing: university versus apprenticeships. At the moment, it seems that both paths lead to potentially detrimental effects on young people’s financial wellbeing. They spoke about the decision to take out a student loan at a young age, and whether people get the right advice about what that might mean for their long-term financial wellbeing. My hon. Friend the Member for Keighley and Ilkley made a really interesting point about the potential disparity in how young people who decide to take an apprenticeship are treated in terms of access to financial resources, versus those in full-time employment, so perhaps the Minister can also say something about that. The hon. Member for North West Leicestershire (Amanda Hack) used her experience on the APPG for debt and financial inclusion to talk about the excellent work undertaken by Young Enterprise to improve young people’s understanding of money. That is quite timely, because My Money Week, which Young Enterprise started to try to teach young people in schools about finance and expand their knowledge, has just concluded. I echo the hon. Member for North West Leicestershire in saying that it would be good to extend that level of involvement beyond the age of 16 to young people more generally. The hon. Member for York Outer (Mr Charters) used his experience to echo a point made in an intervention by the hon. Member for Kettering (Rosie Wrighting) about how young people are turning to social media as their source of understanding. Turning to social media for anything is usually not good for one, which is one of the reasons why the Government have come around to banning young people from social media. When it comes to getting advice about finances, young people are already at risk through a lack of knowledge and understanding. Social media is a very dangerous source of information that can undermine what they might learn from their parents or schools. I also echo the point made by the hon. Member for West Dorset (Edward Morello): familiarity with technology is not the same as access to financial services, although there is an opportunity for us to do something with financial technologies. Financial inclusion for young people is a passion shared between my party, the Liberal Democrats and the Labour party. This is one of the areas where we are all looking to make progress. Under the last Conservative Government, we made financial education for 11 to 16-year-olds compulsory in the curriculum. I think the evidence shows—the Minister may confirm this—that we were not getting all schools doing what they should be doing, or at least that the results were not as we would have wished. However, it was the right step and the Government are moving now to make that compulsory in primary schools. That has to be a positive step. The last Government also made progress in improving student attainment in mathematics. In the PISA—programme for international student assessment—ratings for mathematics in 2009, England, as education is a devolved matter, was ranked 27th; by 2023, it was ranked 11th. That is good progress and is part of ensuring that young people understand numbers and can therefore get to grips with things. In the Government review by Professor Becky Francis, she commented on life skills and talked about the importance of young people learning about budgeting, interest, mortgages, pensions and financial planning. One thing that young people have to their advantage—the hon. Member for York Outer also mentioned this point—is the beauty of compounding interest. If they get the right start at a young age and are able to put some money aside, by the time they get to my age—perhaps even to your youthful age, Sir John—people will find it remarkable how compounding interest has worked on the savings that they have put aside. On the other hand, if they fall into debt, compounding interest can drive them the other way and into a much worse situation. It is absolutely crucial that we teach people the power of compounding, both positive and negative. Let me move on to my questions. As I did not have a chance to advise the Minister of my questions in advance, I would be happy to receive a reply in writing afterwards. First, ironically, I want to ask about cryptocurrencies. What assessment have the Government done of the potential for cryptocurrencies to promote financial inclusion? I am sceptical, but there may be potential benefits as well as risks; cryptocurrencies can provide an easier way in than financial institutions and have lower transaction costs. I am interested in the Government’s view. Secondly, I echo the point that the hon. Member for Hertford and Stortford made about microfinance. What assessment have the Government made of the use of microfinance platforms targeted at young people, to enable them to take the first steps in building up a credit record or potentially being small-scale entrepreneurs—another great thing that young people could do? Thirdly, what is the Government’s view of the merits of leapfrogging traditional financial systems in favour of educating young people on emerging fintech platforms? Is that something that might raise young people’s engagement with financial education, and that might ultimately be in their best interests? I have a small point on “know your customer” rules—I am not too familiar with this point, but the Minister may have a view. Is the Minister satisfied that the way the “know your customer” rules currently work is effective for maximising young people’s access to basic financing and banking facilities? Finally, I am sure that the Minister and I agree on the need to ensure that schools are teaching financial inclusion at both primary and secondary level. How satisfied is she that schools are complying with the compulsory rules on financial education? What can we do collectively, as constituency Members of Parliament, to ensure that schools are delivering the quality of financial inclusion and financial education that we would all like to see?
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Women’s Prison Estate: Biological Males
15. How many biological male prisoners are held in the general women’s estate.
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Women’s Prison Estate: Biological Males
We have just heard from my hon. Friend the Member for Aberdeen South (Douglas Lumsden) that the Supreme Court has clarified the meaning of sex in the Equality Act 2010 and that Scotland has taken the relevant steps. The Minister responded to my hon. Friend with a fairly vague answer about what needs to happen in England. We know that there are women who are not biological females in the women’s estate in England and Wales. When will women get the same protections as in Scotland?
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Defence Investment Plan
I have asked before about the future of the amphibious fleet and the replacements for HMS Bulwark and Albion, and Ministers reassured me that the multi-role strike ships were forthcoming and that the Government would recapitalise the Royal Navy’s amphibious fleet, with these new vessels ready to replace existing RFAs by 2033. The DIP implies that they are no longer being pursued. Is that the case? If so, does this change in plan mean delayed delivery and a capability gap for our amphibious forces?
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High Street Regeneration and Unlawful Storefronts
It is a pleasure to serve under your chairship, Ms Vaz. I congratulate my hon. Friend the Member for Bromsgrove (Bradley Thomas) on securing this important debate. I pay tribute to the invaluable work of Opportunity Bromley and Your Bromley in my constituency to support big and small local businesses. I particularly want to single out Your Bromley, which works tirelessly to make sure that Bromley’s high street is an attractive and enjoyable place to visit and shop. In just the past week it held its Floral Fest, which transformed Bromley high street with colourful planter displays inspired by this year’s theme, “Growing Together”. I look forward to continuing to work with them to support the high street in the weeks and months ahead. Bromley and Biggin Hill needs its high streets to thrive. Some 21.5% of my constituents are employed in the hospitality, retail and leisure industries, but our high streets, like many across the country, have suffered under this Government’s constant attacks. The business rates hike alone, which was forced on local high streets by the Treasury, has faced some high streets with average rateable value increases of up to 82%, meaning thousands of pounds in extra costs. The Conservatives have a real plan to back our high streets, starting with the introduction of a permanent 100% business rates relief for the retail, leisure and hospitality sector in England. That relief would benefit 250,000 businesses, including many in my constituency, and deliver substantial savings that could be reinvested in better premises, more staff and lower prices, as well as lifting thousands out of business rates altogether. We need our high streets. They are the centres of our communities, but if the Government do not see the pain that they are inflicting on businesses up and down the country, they will ensure the death of the high street. I will always stand up for the small businesses that are the backbone of our economy in Bromley and Biggin Hill.
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Antisemitism: University Campuses
The hon. Member is making an incredibly important speech. As someone who has visited the site of the Nova music festival, I have sensed some of the horrific slaughter and how awful that must be for those generations who are living with it. Referring to what the lecturer said, what powers should universities have to discipline members of staff who make such outrageous statements?
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Draft Wireless Telegraphy Act 2006 (Directions to OFCOM) (Revocation) Order 2026
Sorry if this is slightly parochial: I welcome the release of spectrum, but what guidance will be given to Ofcom to help with the roll-out in semi-rural areas such as Biggin Hill in my constituency?
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High Street Regeneration and Unlawful Storefronts
It is a pleasure to serve under your chairmanship, Ms Vaz. I welcome the new Minister to her place; I know that she has a background in these issues, and I look forward to working with her in the weeks, months or years ahead. I also thank my hon. Friend the Member for Bromsgrove (Bradley Thomas) for securing this debate. He is a great champion for his community. This issue is close to his heart, and given his previous career in local government he is very knowledgeable about it. I welcome the opportunity to contribute to this debate. My hon. Friend mentioned a range of topics, which shows how much he is involved in his constituency and community, ranging from flaws in the banking hub criteria to the aesthetics of our high streets. I know that that comes from his time as leader of a local authority. I am also his Whip; after this morning, he can be guaranteed a good mention in dispatches later. We have heard some entertaining and knowledgeable speeches from my colleagues. My hon. Friends the Members for Bromley and Biggin Hill (Peter Fortune), for South Shropshire (Stuart Anderson), for Chester South and Eddisbury (Aphra Brandreth) and for Keighley and Ilkley (Robbie Moore) and my right hon. Friends the Members for Aldridge-Brownhills (Wendy Morton) and for South Holland and The Deepings (Sir John Hayes) have shown their in-depth knowledge of the challenges in their constituencies. Traditionally, high streets have been seen as indicators of the health of our economy, with the British Retail Consortium calculating that retail generates nearly £500 billion in annual sales and nearly 3 million jobs. According to the Office for National Statistics, around 4.4 million people work in businesses located on British high streets, which represents roughly 14% of all employment in the UK. The contribution of the sector to the UK economy is vital to any Government seeking economic growth, especially regionally driven growth, which I have reason to believe the incoming Prime Minister, the right hon. Member for Makerfield (Andy Burnham), is enthusiastic about. This growth will be much better able to sustain communities and help them thrive. It will empower local people, business owners and decision makers to improve the areas they know and love better than any centrally planned project ever could. As I have said in previous debates, however, the high street is more than a place where cash, services and goods change hands. It is at the heart of our communities—a place where people can come together to catch up over a coffee or a beer, have a natter in the nail bar or have a quiet read in the local bookshop. The value of our high streets cannot be quantified by simple sums of money, or by the business rates or council tax that they generate for the Treasury and local government. They are so much more than that. As has been outlined this morning, however, there is a sad story of decline on our high streets. Many factors explain that, and colleagues from across the House have touched on many of those, including the rise of online shopping, cost of living pressures, economic stagnation, high taxes on businesses, planning issues, poor local transport links and stretched public services. There are many causes of the problem, and many people lose out from dying high streets. Perhaps the greatest tragedy is the impact on young people. Retail has always been one of the UK’s great entry-level employers. It has given generations of young people their first job, taught customer services skills, teamwork and responsibility, and provided a pathway into management and business ownership. As Members will be aware following the publication of Alan Milburn’s report, youth unemployment stands at a staggering 16.2%—an increase of almost two percentage points on last year; at the same time, youth employment has fallen. More than 3 million 16 to 24-year-olds across the country are unemployed and economically inactive. We should ask ourselves a simple question: how many of those young people have been pushed out of work, or denied work in the first place, by the continuing decline of our high streets? Increases to the minimum wage, the surging cost of employer national insurance contributions and council tax hikes are just a few of the burdens heaped on to businesses, which have been pushed to the wire. In 2024 alone, more than 13,000 high street stores closed, and over the last two years the retail sector has lost almost 250,000 jobs. Every shop that closes represents not just another empty unit but another lost opportunity for someone hoping to take their first step into employment. If we genuinely care about tackling economic inactivity, we cannot ignore what is happening in our town centres and high streets. The picture is no better for Britain’s pubs. At this point, I had better declare an interest: I like being in pubs quite a lot. Changes to employer national insurance contributions have added around £7,200 a year to the wage bill of the average pub, which employs eight people. Layer on top of that business rate reforms, which were presented as a lifeline but for many businesses have proved to be anything but, and it becomes easy to understand why so many publicans are questioning whether they can continue. The consequences are stark: across Britain, two pubs close every day. At the 2024 autumn Budget, the Chancellor promised to “permanently lower” business rates for retail, hospitality and leisure businesses, telling Parliament that this would help to level the playing field for our high streets. That ambition was welcome, but when the detail emerged many businesses concluded that the reforms would do the opposite. Rather than providing certainty, the changes have raised serious concerns that many larger retailers and hospitality businesses—the so-called anchor tenants that attract shoppers to our town centres—could face significantly higher costs. Those businesses generate footfall for everyone else. When a department store, a supermarket, a major retailer or a large hospitality venue closes, it is not just the business itself that suffers; small independent retailers, cafés and local shops lose passing trade.
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High Street Regeneration and Unlawful Storefronts
I agree entirely with my right hon. Friend. That is something that this Labour Government have never got to grips with. Businesses already operating on tight margins face £40 billion of tax rises, including substantial increases in national insurance contributions, which will place further strain on them. I am delighted that colleagues on the Opposition Benches mentioned the Leader of the Opposition’s pledge to abolish business rates for most high street businesses. Alongside the economic challenges facing our high streets, we must also confront an uncomfortable truth, which many Members have mentioned: our constituents are increasingly concerned that some high street premises are being used not as genuine businesses but as vehicles for tax evasion, money laundering and organised crime. Those concerns are frequently raised in relation to certain cash-intensive businesses, including some barber shops, nail salons, mini-marts and vape shops. The overwhelming majority of those businesses are of course honest, hard-working enterprises that serve their communities and deserve our support, but the ones that are not undermine legitimate traders, distort competition and damage public confidence in our town centres.
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High Street Regeneration and Unlawful Storefronts
The hon. Member is absolutely right. As I will come to, we welcome the Government’s early actions to tackle those businesses, but we think they could do more, and we offer our support in that. The Government introduced the economic crime levy, which we support, ensuring that those operating within the regulated financial sector contribute towards tackling money laundering and wider economic crime. It reflected the principle that protecting the integrity of our economy is a shared responsibility. However, there is clearly more to do. Without properly resourced investigations, effective intelligence sharing and robust action by enforcement agencies, there is a risk that the powers will exist only on paper. Trading standards, local authorities, HM Revenue and Customs, the police, immigration enforcement and the National Crime Agency all have a crucial role to play, but they need the resources and capacity to act. Evidence from trading standards professionals is particularly striking: 96% had encountered serious organised crime groups in their work. My time is fast approaching. I hope there is cross-party agreement on how we can tackle such businesses on our high streets, but there is more work to do. The Conservative party has put forward a platform to enable our high streets to thrive. This Government’s economic policies have damaged them. Maybe that will change when we have our new Prime Minister, but I sincerely doubt it.
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Culture, Media And Sport
I thank the Chair of the Culture, Media and Sport Committee, my hon. Friend the Member for Gosport (Dame Caroline Dinenage), for her work, for her impressive speech and for securing the debate today. I pay tribute to her and all the members of the Select Committee from all parties for conducting the review on community and school sport that forms the basis of today’s debate. I also thank everybody for their contributions today. This important report has highlighted the concerning reality that England’s community and school sport system is not currently delivering either the opportunities that people want or the benefits that we know sport can provide. All too often, the Department for Culture, Media and Sport and the sectors it oversees are dismissed as “nice to haves” or a bit fluffy, when in fact they are pivotal—indeed, essential—to our economy and society. DCMS sectors—sport, culture, tourism, film, TV, music, heritage, civil society and much more—enrich our lives and make them more fulfilling, while supporting over 5 million jobs in the UK and generating well over £220DCMS’s total expenditure fell 3.3% from 2023-24. The Government have chosen to abolish the National Citizen Service, to undermine horseracing and legitimate gambling, and to cut spending on tourism promotion, on business events, on listed places of worship and even on school sport, while implementing policies that are loading up costs on DCMS sectors, especially through tax rises. The business rates and national insurance rises are decimating DCMS sectors, depriving tens of thousands of young people of their first job opportunity and causing unemployment. Of the nearly 200,000 job losses since Labour came to power, over half were in tourism and hospitality and many of them involved young people. I respect the Minister, and have a lot of time for her, and many of those things were not her Department’s decisions, and that must be intensely frustrating. We all understand the benefits of an active population. When children are active from an early age, they develop confidence, resilience and social skills, and are more likely to enjoy better mental health, improved wellbeing and healthier lifestyles. If we fail to give every child the opportunity to be active, we risk storing up significant challenges for the future, from rising obesity and poorer mental health to greater pressure on our NHS. Allowing even more development on sports fields and playgrounds is clearly not going to help. The evidence is clear that there is strong public demand for sport provision, but as the report highlights, fragmented policy, inadequate investment and poor cross-Government co-ordination are preventing sport from delivering its full potential—whether improving health outcomes, supporting children’s development, strengthening communities or contributing to economic growth. There is also a gender dimension to this issue, as the Chair of the Select Committee outlined and as a recent report by Sky demonstrated. Investment in sport delivers some of the clearest returns of any area of public spending: Sport England estimates that every £1 invested in community sport and physical activity generates more than £4 in social and economic value. The Government announced in January that they were investing £85 million to build and upgrade grassroots sport facilities across the country as part of a £400 million boost for grassroots sport facilities by 2030. However, the £400 million figure is the same amount that we announced when we were in government, so thanks to inflation, it is a real-terms cut. There is also little detail on who will receive the money and when. Many sports governing bodies, including those for cricket, swimming and tennis, say that they have plenty of projects that are ready to go, but without clarity on funding, they cannot pull the trigger on key projects across the country. I have particular concerns about school sport, where there has clearly been a bunfight between the Department for Health and Social Care, the Department for Education and DCMS about funding. The Government announced £1 billion for school sport over the next three years, but the devil is in the detail. The Department for Education announced that the £320 million annual PE and sport premium for primary schools will be scrapped in favour of a new partnership network. Let us be clear: that is a cut. In fact, it leaves schools around 22% less well off in terms of annual funding than the current scheme. As the report outlined, we need structural reform, sustained investment, clear accountability and a joined-up national strategy. The Government have committed to publishing a national plan for physical activity later this year, and we look forward to scrutinising it. Sport and physical activity cannot solve every challenge facing young people, but they can be one of the most powerful tools for improving health, building confidence, developing skills and strengthening communities. Investment matters—of course it does—but we also need a long-term plan and structural reform. The Committee has provided Ministers with a road map; the challenge is whether the Government have the ambition to follow it.
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Jury Trials
The Justice Secretary and his ministerial team say that the attack on jury trials is needed to deal with the backlog in the courts. When the right hon. Member for Makerfield (Andy Burnham) takes over and scraps the policy on jury trials, does the Minister predict that court backlogs will get worse?
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Jury Trials
I listened carefully but do not think the Minister answered my question—[Interruption.] We will see, won’t we? I am replying to the Justice Secretary’s comment from a sedentary position. I think the Minister has just made it very difficult for herself to stay in the Ministry of Justice when the right hon. Member for Makerfield takes over. The Government are continuing to say that the attack on jury trials is vital and there is no alternative, but we know that is not what the next leader of the Labour party thinks. He has made it clear that he is going to scrap the policy, so will the Minister spell out what this means? She is saying that the right hon. Member for Makerfield is wrong, isn’t she?
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Topical Questions
The Government referred the sentences of the teenage gang rapists who attacked two schoolgirls to the Court of Appeal as unduly lenient, but the Government also say that they want to increase the age of criminal responsibility, and the Bar Council has said that age should be 14. That is one year older than the age of one of those rapists—proof that young criminals can commit terrible crimes. Will the Justice Secretary rule out increasing the age of criminal responsibility to 14?
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Defence Investment Plan
Secretary of State, it is good form to let the Speaker’s Office know if one is going to speak for more than the allocated time. I will now have to give extra time to the other Front Benchers as well. I call the shadow Secretary of State.
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Defence Investment Plan
I call the Liberal Democrat spokesperson.
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Defence Investment Plan
I call the Father of the House.
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Defence Investment Plan
I call the Chair of the Defence Committee.
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Defence Investment Plan
Order. Is there a question?
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Defence Investment Plan
I call the Chair of the Treasury Committee.
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Defence Investment Plan
Just a yes, Secretary of State.
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Culture, Media And Sport
Order. I call Andy MacNae.
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Department of Health and Social Care
Order. You mean “the hon. Member”, not “you”—I do not need to go anywhere. I ask the hon. Member please to wrap up as soon as he can, because we have many speeches to get in.
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Department of Health and Social Care
I will give Front Benchers a heads-up: we are not going to have a huge amount of time, so please edit your speeches accordingly.
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Department of Health and Social Care
I call the Liberal Democrat spokesperson, who I thank for agreeing to make a very short speech.
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Department of Health and Social Care
I call the shadow Minister.
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Department of Health and Social Care
Order. Very quickly, shadow Minister. Ten seconds.
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Department of Health and Social Care
Order. We are running out of time. Minister, please respond as briefly as you can.
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Department of Health and Social Care
I call Layla Moran to wind up the debate briefly, in under a minute.
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Department for Work and Pensions
I call the Chair of the Work and Pensions Committee to open the debate. As we are very short of time, I would be incredibly grateful if your speech was short.
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Department for Work and Pensions
It gives me huge pleasure to invite the new MP for Aberdeen South to make his maiden speech.
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Department for Work and Pensions
It now gives me huge pleasure to invite the new MP for Arbroath and Broughty Ferry to make her maiden speech. I call Lara Bird.
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Department for Work and Pensions
Back Benchers now have a time limit of two and a half minutes.
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Department for Work and Pensions
That is the end of the Back-Bench contributions, so we now come to the Front Benchers. I call the Liberal Democrat spokesperson.
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Department for Work and Pensions
I call the shadow Minister.
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Department for Work and Pensions
Order.
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Business Without Debate
I thank the right hon. Member for giving notice of his point of order, which, as he knows, is not a matter for the Chair. He may wish to consult the Table Office on means of pursuing his concerns further.
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Domestic Abuse and Public Life
Order. I know the Minister is new to the Dispatch Box, but no “you” and “yours” because it is not my story. To help, she must look into the microphone and speak through the Chair.