Mark Francois MP: speeches

Speeches

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  Is this another brief intervention?

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  The hon. Gentleman makes a good point. I do not have the NAO report in front of me, and that is my fault—forgive me—but from memory, it made the point that this was a nationwide problem. The scale of the problem was such that it did not just affect region or another; it touched pretty much everywhere. I think the NAO focused mainly on England and Wales, but certainly in those two nations this was a big problem, and I have nothing to lead me to believe that it is not a problem in Scotland or Northern Ireland. On childcare, I should add that one result of “Stick or Twist?” was that the then Defence Secretary, Ben Wallace, managed to use the report as ammunition to persuade the Treasury to invest quite a lot of money in childcare facilities for armed forces personnel. The Minister will know how difficult that can be. It included improving childcare facilities at a number of military installations around the country and, in some cases, extending the hours to something more akin to wraparound childcare. For the record, if only for that, the report was worth writing. I think we have given this issue a good go, and I know my hon. Friend the Member for Spelthorne wants to raise another, so I will leave it there. I am sure the Minister understands the spirit of this clause stand part debate, and I very much hope that he can give us some good news in this area. I am sure that the whole Committee, as well as the armed forces and their families, would welcome that.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  In a moment. My hon. Friend the Member for Spelthorne is a former commanding officer of the Scots Guards, and he knows the challenge that all commanding officers face in retaining personnel, particularly experienced personnel. It is part of that stick or twist decision, which is why we believe that the Armed Forces Commissioner should be able to look at it. The amendment would remove any doubt that they had the ability to do that, while—to come back to the point made by hon. Member for Broxtowe—in no way precluding their being able to look at anything else.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I understand the hon. Lady’s argument, but—

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I am grateful to the Minister for what he has said; it is very gracious of him. I do not think it is to betray a confidence to say that he and I have threatened to sit down and have a cup of coffee several times to talk about the accommodation issue, in particular. I thought I would take this opportunity to remind him of that—perhaps we can do that early in the new year.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  The Minister mentioned the devolved Administrations point, and that is encouraging. I gave an example of someone who moved from Tidworth garrison to Catterick garrison. Is it now the case that they could port their EHCP from Wiltshire to Yorkshire, as if they had got it from Yorkshire in the first place? Have we got to that stage yet or not?

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  No. On that basis, I intend to press the amendment to a vote. Question put, That the amendment be made.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  If I may, Mr Betts, that was clearly the voice of experience. Question proposed, That the Chair do report the Bill to the House. Question put and agreed to. Bill accordingly to be reported, without amendment.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I only have two points to make. First, if it reassures the hon. Lady, I did read into the record that she had a conflicting appointment downstairs in the main Chamber and that that was why she was not here. I am not so sure about her colleague, the hon. Member for Tunbridge Wells (Mike Martin), but I did place it on the record that she had to be downstairs. As I understand it, recruits would be subject to service law once they have taken the oath and joined the armed forces. If one takes that as one’s handrail, they should already be covered by the Bill. None the less, I understand the point the hon. Lady is making, so perhaps the Minister could kindly clarify whether my understanding is correct.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I take no umbrage at all at what the Minister said about Tuesday—Her late Majesty herself famously said that recollections may vary. I think the point has been made. Could he give the Committee one last commitment before we end the clause stand part debate? Could he assure us that when he gets back to the Department, he or one of his fellow Ministers will chase this up in a timely manner with his colleagues at the DFE, in the hope that we can secure the kind of progress he was intimating at, including on the IT front? It would be a shame if this very pressing issue was held up because of a software glitch between computer A and computer B in two different local authorities. Could he give us his word of honour, which we would take, that he will go back to the Department and press on this to try to get some good news in the new year?

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  In a moment. Having raised this issue with the Minister, who has a look on his face that says, “This wasn’t in my folder,” I very much hope that he will, being an artful chap, seek some inspiration and extemporise by saying something encouraging so that we do not feel it necessary to press the amendment. I was going to conclude my remarks there, but I do not want to be accused of curtailing the debate, so I will give way first to the hon. Lady and then to the hon. Gentleman.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  My hon. Friend and I are grateful for that clarification. None the less, we need to put down a marker. We need to make very plain to the Government—not just the MOD, but the Treasury, because it will be a Treasury consultation and it is a Treasury tax—that we regard this point as very important and that we hope and believe that the Government should reverse this measure.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I beg to move, That the clause be read a Second time. As we come round the final bend, hopefully the Committee will recall something that cropped up quite a lot in Tuesday’s public evidence session. A number of witnesses mentioned veterans, and there were quite a few questions, so we thought it appropriate to table a new clause to facilitate a debate on this subject, and specifically on how the Armed Forces Commissioner might, if at all, be able to engage on issues of veterans’ welfare, including with the existing veterans commissioners. There is concern within the veterans’ community about the incoming Government’s decision, first, to remove the Veterans Minister from Cabinet and, secondly, to roll the Office for Veterans’ Affairs into the MOD, whereas previously it was at least independent from that Department, if not wholly independent from the Government, when the OVA lived in the Cabinet Office. I am not imagining that this is a matter of concern. I have a letter here that was written to the Minister for Veterans and People, dated 30 July 2024, co-signed by the Scottish Veterans Commissioner, the Veterans Commissioner for Wales and the then Northern Ireland Veterans Commissioner. The letter highlights very well the issue of genuine independence from the MOD. For the avoidance of doubt, the letter’s tone is in no way personally critical of the Veterans Minister, whose military service we fully acknowledge and salute this afternoon; the nub of the issue is the fact that the OVA has been moved. The letter says: “Firstly, as a junior minister you have no seat in Cabinet. We understand that SofS will represent veterans at this level but his responsibilities are broad and he is not focusing daily on veterans’ affairs; nor will you, with your entire MoD people portfolio… Secondly, the subordination of the OVA under your control”— that is, the MOD’s control— “whilst tidying-up the government wiring diagram, also concerns us. The major factors that impact on veterans, such as health, housing, employment, education and social care are not MoD controlled. As such, locating the OVA in the Cabinet Office made sense, to best coordinate and cajole other departments into taking veterans’ needs into account.” I have now kept my word to the hon. Member for North Durham, who challenged me to talk about this—I have done my best. The letter from the three veterans commissioners goes on to say: “Veterans have little faith in the MoD leading on veteran policy and delivery. This attitude has been entrenched through the perception of adversity and neglect that many veterans have experienced in their dealings with the MoD. It is a tough message, but one that we are duty bound to deliver.” The previous Government cannot be blamed for this one, because we created the Office for Veterans’ Affairs and deliberately gave birth to it, as it were, in the Cabinet Office and not the MOD. Much of today’s debate has been about the independence, or otherwise, of the Armed Forces Commissioner. Well, here are three veterans commissioners collectively expressing their “concern” about the Government’s decision to take the OVA and roll it back into the MOD, where the risk is that the Department will end up marking its own homework. Veterans clearly preferred it when the OVA was at least semi-independent under the Cabinet Office, and when Johnny Mercer was an extremely proactive member of the Cabinet pushing very hard on a range of these issues.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  The clue is in the name: the shadow Cabinet is there to shadow the actual Cabinet. If there is not a Veterans Minister in the actual Cabinet, it is not necessarily axiomatic that there would be one in the shadow Cabinet. To be clear, the decision to take the Veterans Minister out of the Cabinet and the Cabinet Office, and roll them in under the Ministry of Defence as—no disrespect—a junior Minister, was a decision taken by the Labour Government— [ Interruption. ] Excuse me—one at a time! I hear my hon. Friend the Member for Hamble Valley to my left—dare I put it that way—saying that the Prime Minister promised he would not do that. It was a decision taken by the Labour Government. I have read out the comments from the commissioners, who are there to represent the interests of the veterans’ community; I am not imagining it. The community are clearly very concerned, so perhaps we could hear the Minister’s reply.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  “He”!

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  On a point of order, Mr Betts. If I could record for posterity that neither of the two Liberal Democrats assigned to the Committee are here at the moment. In fairness, one has a conflicting obligation in the Chamber; the other has a reason we do not know—it could be a family reason. For the record, the Liberal Democrats were not here to vote on this.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I thank the hon. Gentleman for his very pithy intervention. He pays me a back-handed compliment. How outrageous that His Majesty’s Opposition should try to raise a difficult issue in the middle of a Bill Committee; if I were to go back through the annals of Hansard down the centuries, I am sure there would be some precedent for that. This was a timely opportunity, if I can put it like that, to table the issue. There is a consultation coming up, and I suspect, looking at his face, that the Minister was not really au fait with this issue—I am not being rude to him—but he is now, and I will be very interested to hear what he has to say. The key point here is that death in service benefits have traditionally been payable if someone dies while in the armed forces or in the service of the Crown, whether or not they were on active service. A person who died back at home with their family would still qualify for the money. Under the armed forces pension scheme, they would still qualify if they had a regular partner. Under the Bill, however, because we are now dealing with the inheritance tax rules, unless the individual is married or in a civil partnership the exemptions do not apply. That is the critical point. I suspect the Ministry of Defence had not picked up on it. The Forces Pension Society, which exists for exactly this kind of eventuality, has done what it says on the tin and raised an issue that could materially affect armed forces pensions. In some ways, I am acting as their factotum this afternoon in tabling the issue.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I am trying to wind up, but I will give way if the hon. Gentleman wishes to make a point. This is an important topic.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  The hon. Gentleman anticipates me, because if he looks down the list of amendments, he will see that new clause 2 talks specifically about veterans’ commissioners. Perhaps at that point he might want to intervene on me again, as long as it does not mean Mr Betts misses his train. I hope that I have made my point. I shall be interested to hear what other Members in the Committee think, and particularly what the Minister’s view is.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I think it is. Those who have left the service, are by definition no longer subject to service law; they are subject to the laws of the country like any other civilians, as that is what they have become, albeit they are civilians with the special status of being a veteran, which we should respect. But they are no longer serving in His Majesty’s armed forces. The amendment would allow the commissioner to expand their remit little bit in order to look at pension-related issues, which are something that armed forces personnel regard as part of their general service welfare. When they are taking that stick or twist decision, weighing up the pluses and minuses of whether to stay or leave—particularly if they have been in the service for some years and have accumulated a reasonable pension pot—that is definitely something that they will take into account.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  During the public evidence session, several of our witnesses—including those from the three service families federations—raised the question of special educational needs provision for the children of armed forces personnel. That provoked a number of questions to witnesses from members of the Committee, including some from me. I gave the Minister and the then Chair notice that I would seek to provoke at least a brief debate on education, and on special educational needs in particular. Having taken advice, I seek to do so under clause 4 stand part. I will try to summarise the issue succinctly. Because of the nature of service life, service families often have to move locations, for example from one Army garrison to another or from one RAF airbase to a different one. Not only are their partners encouraged to “follow the flag”, as the old saying has it, but their children are expected to do so as well. As the witnesses highlighted, including the two generals, as I like to call them—Lieutenant General Sir Nick Pope and Lieutenant General Sir Andrew Gregory—that often presents a number of challenges, not least for spousal employment. Partners of armed forces personnel sometimes find it challenging to pursue careers of their own if they are asked to move frequently. It can present other issues as well, such as access to medical and dental services, with people having to register and re-register as they move from one military patch to another. Here I hope I am keeping my word to the hon. Member for Broxtowe and raising a number of issues aside from pensions. [ Interruption. ] She smiles benevolently at me in return, and I thank her. However, there is a particular issue regarding children’s education. It is not my purpose this afternoon to provoke a major debate on VAT on school fees and the continuity of education allowance, although I note in passing that some witnesses raised that on Tuesday. Having seen the uplift in CEA rates, which I think was published on Tuesday, I fear that it will not be enough to compensate for the 20% increase in school fees. That may have a detrimental effect on armed forces retention, not just for officers but for senior NCOs in particular. I cite one brief example. When I was doing the “Stick or Twist?” study about five years ago, I spoke to one RAF senior warrant officer who said to me: “If you screw around with CEA, Sir, I am off, and so is my husband, who is in the service too. It is really the one thing that keeps us both in—we are doing it for the education of our children.” I wanted to highlight to the Minister and the Committee the potential effect on retention of not fully compensating armed forces personnel for the increase. Having done that, I move on to SEN. As many Committee members know from their constituency casework, in the civilian world, if a child is diagnosed with special educational needs, it can take up to two years to achieve an education, health and care plan—what was in old money a statement of special educational needs—from the relevant local education authority. For the avoidance of doubt, that can be the case under Conservative, Labour and other administrations. The issue is not particularly confined to local councils of one party colour or another; the process is just very complex and time-consuming.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  On the point about recruitment, I hope the Minister, who is fair-minded, would be prepared to attest that in the previous Government, when I was on the Back Benches, there was no fiercer critic of Capita than me. I wish the previous Government had done something about their poor record and I invite the new Government to do something about that—the sooner the better.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I am grateful to the hon. Lady. She will know, not least from her service on that important Committee, of what is called the statutory override. In a nutshell, local authorities must produce a balanced budget each year, but, because of the very great pressure on local authorities that are also LEAs, they have been allowed to overspend on SEN for several years because it is such a big pressure. Bluntly, it would have bankrupted some of them otherwise. She may be able to update us, but I understand that the default position is that the statutory override is due to expire in March 2026. In other words, when local authorities are planning their new budgets for the ’26-’27 financial year, those budgets will have to balance. I served on the Public Accounts Committee for a couple of years in the previous Parliament. About a month ago, the National Audit Office produced a report, which I am sure the Education Committee will look at, basically saying that the current system is unsustainable. This will be a challenge for the new Government. I am not trying to make a partisan point here, but it was a challenge for the previous Government and it will be a challenge for the new Labour Government, too. I mention that just to drive home the scale of the SEN challenge. There is no evidence that armed forces personnel are proportionately more or less likely to have a special needs child than members of civilian communities, so statistically it is a big problem for them, too.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I thank the Minister for his compliment about my “artful cheekiness”. I am rather hoping that the Whip will have written that down. Again, quoting from Larisa Brown’s article, “It is understood that inheritance tax would apply to service personnel who are killed while off duty, for example if they are driving to and from work.” She also includes a comment from a spokesman from the Forces Pension Society, who said they believed it was an “unintended consequence”— we are trying to be fair to the Government—but added, “For the military, death is an occupational risk, so we also believe this is a breach of the armed forces covenant, which says that service personnel should not be disadvantaged by virtue of their service.” I understand what the Minister has said, and I know there is a technical consultation, but this is important not just to us and to the Forces Pension Society; it will genuinely concern armed forces personnel and their families.

• 12 Dec 2024 · Armed Forces Commissioner Bill (Fourth sitting) · Hansard source

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  I beg to move amendment 12, in clause 4, page 2, line 35, at end insert— “(2A) A ‘general service welfare matter’ may include issues relating to the provision of pensions and other related benefits to serving and former members of the armed forces.” This amendment would enable the Commissioner to include matters relating to pensions and other such benefits in their investigations of general service welfare matters. It is a pleasure to serve under your chairmanship, Mr Betts. I hope we shall not inconvenience you too much with regard to your journey back. The purpose of amendment 12 is to confirm in the Bill that pensions would be among the topics that the commissioner can investigate under the heading of “general service welfare matters”. This is obviously a matter of keen interest to service personnel and their families, and having good pension provision for serving in the armed forces has always been an aid to both recruitment and particularly retention, especially for non-commissioned officers and officers as they progress in their careers. I have often felt—and I include the time when I served as a Minister in the Ministry of Defence—that we have not really done enough to successfully market the value of military pensions as part of the wider service offer in order to convince people to join and then remain in the armed forces. In my experience, even many armed forces personnel did not appreciate that they had one of the few pension schemes across the entire public sector that was effectively non-contributory. In other words, their employer paid a contribution into their pensions, but they did not. In comparison, the last time I checked, most serving police officers pay something like 14% of their salary into their pension, whereas serving personnel still do not have to pay anything. Historically, the pension has always been—certainly as people become more experienced, get older and think more about their pension provision, much like the rest of the population—a vital tool in keeping people in. I would like to raise with the Minister one particularly pressing pensions matter, which provides a classic example of the sort of issue that the Armed Forces Commissioner should be empowered to investigate. In essence, it relates to the potential liability for inheritance tax, relating to death in service lump sum payments. This follows on, unfortunately, from the IHT changes announced in the Budget. I will refer to a briefing that was recently provided to me by Major General Neil Marshall OBE, the chief executive of the Forces Pension Society, which, I hope the Minister and Committee will accept, is the absolute gold standard expert on any matter relating to forces pensions—the sort of Office for Budget Responsibility of armed forces pensions. The AFP note summarises the issue as follows: “Death in service benefits affect those who die prematurely. While benefits pay to spouses or civil partners will be unaffected by IHT, we understand that under the Government’s proposals, death in service lump sum payments for service personnel who die in the service and are not married or in a civil partnership would be liable to IHT. This would lead to military personnel being disadvantaged compared with their civilian counterparts”, not least because their civilian counterparts would be “able to place such benefits in trust and therefore outside of the deceased’s estate.” The note continues to say that the introduction of the armed forces pension scheme 2005 and subsequently the armed forces pension scheme 2015—AFPS 05 and AFPS 15, as they are colloquially known— “saw eligible partners recognised as dependents and therefore eligible for benefits.” Under AFPS 05 and AFPS 15, personnel do not need to be married; they need to have an established partner. The note continues: “This was in addition to married couples and those in civil partnerships. This was a welcome reflection of societal changes over the past 30 years or so; introducing a potential inheritance tax charge on death in service benefits for those military people who are not married or in a civil partnership is at odds with the extant policy.” To put in this in layman’s English, because in my experience anything to do with pensions does tend to be quite complicated: if Corporal Thomas Atkins of the 1st Battalion the Lone Shire Regiment were walking down his high street tomorrow—not on active service—and unfortunately dropped dead of a heart attack, even if he had a long-term partner and perhaps three children but was not married or in a civil partnership with that partner, then his family would be liable for a potential inheritance tax charge on his death in service benefit. Not only is there the risk of the financial penalty—I will come on to a case study in a moment to illustrate the dilemma—but the bureaucracy could result in payouts from the estate being delayed while the liability for IHT is being calculated. The Forces Pension Society summarise the issue in its very good briefing note as follows: “At a time of extreme vulnerability, these lump sums need to be paid promptly, as they currently are. If death in service benefits become subject to IHT there will be a delay to the benefit being paid both while the estate is assessed for IHT and while the amount of IHT attributable to the DIS [death in service] benefit is assessed and the scheme administrator (Veterans UK) pays the tax charge.” As the briefing note then goes on to explain: “Many who would not previously have been caught with an IHT liability will find themselves in a very bureaucratic process that will slow down the already lengthy process of sorting out the financial affairs of an individual at what is a very difficult time.” The Forces Pension Society gave several examples of how this could affect personnel in practice. For the sake of brevity, I will just give one, which I hope is sufficient to illustrate the point. Take the case of an OR-9 equivalent—a senior warrant officer at the top of the non-commissioned rank structure. This individual has a partner to whom they are unmarried, and on death leaves an estate worth £400,000 and death in service benefits of £248,292—four times their salary of £62,000. They would pay 40% inheritance tax on the non-pension assets, resulting in an IHT liability of £30,000, but after April 2027, if the DIS benefits were included in the estate, that would increase the estate’s value to £648,292. The IHT liability will therefore increase accordingly to £129,316. That represents an increase of around 330%. In fairness, we on the Conservative Benches suspect that this is an example of the law of unintended consequences in action. We do not believe that the Government deliberately brought in these changes with the specific intention of targeting armed forces personnel. There is a debate about farmers and other groups in society, but I am focusing today on armed forces personnel and their families. To be clear, we are not saying that the Government did this deliberately in order to damage those people’s interests. Nevertheless, the default position is that they would suffer in the ways I have just outlined, unless something is done. Indeed, the Forces Pension Society summed up the problem as follows: “We believe the Government has made an error and would not knowingly implement a policy that runs counter to the spirit of the armed forces covenant. The situation is recoverable should they act now.” We on the Conservative Benches support that plea. I hope that when the Minister replies, he will assure us that, following the consultation on these proposals—which will be overseen by His Majesty’s Treasury, not by the MOD, because it is a consultation on the IHT changes in general—he is confident that armed forces personnel and their families will be exempted from any potential inheritance tax liabilities on death in service payments, whether or not those armed forces personnel die in active service. I hope that I have managed to explain that in terms that the Committee can follow.