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The Chairman: It is not a question of moving new clause 2. If it were to be moved, it would be at a later stage. You will see from the selection list that the debate takes place now. The debate is on clause stand part, and new clause 2 is considered as part of that debate.
Mike Penning (Hemel Hempstead) (Con): On a point of order, Mr. O’Hara. I was intending to speak on new clause 5, not new clause 2.
The Chairman: The hon. Member for Eddisbury spoke to new clause 2. I was explaining that he was not moving it but simply speaking to it. You may now speak to new clause 5.
Mike Penning: Thank you, Mr. O’Hara.
New clause 5 would give notification to Parliament of the impact of quality accounts on the NHS. It would give Parliament an opportunity to scrutinise the implementation of quality accounts within three years of their coming into force. The Secretary of State would be required to make a statement, written or oral, to the House or to the excellent Health Committee, on the demand for quality accounts from patients. He will need to make it clear what improvements have taken place in NHS bodies in those three years and what impact the policy objectives of the quality accounts set out in the impact assessment, which has already been published, has had on the NHS. Finally, the Secretary of State will need to show how these documents reflect the health care needs of patients served by these bodies and the NHS.
Mr. Mike O'Brien: I am concerned that the hon. Member for Eddisbury was worried about tired chief executives cutting and pasting things. Let me assure him that there will be no dodgy cut-and-paste dossiers from this Government—[Interruption.] I thought I would get that in before another Committee member did.
New clauses 2, 5 and 7 would oblige the Secretary of State to carry out an impact assessment of quality accounts and make a report to Parliament, covering the manner of publication, impact on services and demographic, social, economic and geographical factors. That is a worthy objective, but we do not need primary legislation to obtain it. It is worth emphasising that the quality of the care offered to patients is fundamental to the delivery of health care. High-quality care is better for patients and offers better value for money for the taxpayer. Despite that, historically the quality of health care has not been as high on the agenda as the discussion of the performance and operational efficiency of the NHS. That brings me back to the narrative that I gave of the development of the NHS, moving from dealing with underfunding, the need to get targets in, to the need to restructure it and now the need to move on to a new, higher agenda that is basically about bringing quality into the NHS as the focus of its activities.
Where elements of quality have received significant attention—for example, in respect of health care-acquired infections or reduced waiting times—we have seen significant improvements. Quality accounts enable quality improvement by promoting local accountability and transparency. They should enable clinical teams to open up dialogue with their community, which means that a large element of the quality accounts will be for local determination. That is why I am a little bit concerned about the requirement for overall reviews that would be brought in under the amendment.
The legislation as drafted provides a broad framework with broad principles, with the details to be determined later and set out in regulations and guidance. The current engagement in the testing processes is shaping these products. We will consult on our regulatory proposals later this year. It is clear at this point that the data required for a quality account are simply the existing service quality data that providers already report to Department of Health commissioners or the regulators. The legislation therefore sets out minimum requirements. There is no added burden on the NHS beyond the cost of preparing the document; all other work is or should be happening already.
The ambition is to make quality accounts a vehicle for quality improvement. That is why we are working closely with stakeholders in designing the format. More than 1,000 stakeholders have been consulted so far, including NHS managers, clinicians and patients. We will, of course, be implementing and developing ideas through secondary legislation. The process obliges us to present evidence of the real-world impacts resulting from our policies. So the sorts of data and information that the Opposition are currently seeking will need to be provided to Parliament, in any event, during the course of developing the detail of our policies on the quality accounts agenda.
The current testing process is the key to what we want to achieve. We have already started evaluating it. The first report will be available in the next eight weeks and will enable us to move to the detailed design phase. Thus, by autumn we will have firm proposals, strong evidence of their likely impact and an engaged and informed provider community waiting to implement them.
2.45 pm
The Chairman: It is not a matter of withdrawing them as they were not moved. To be clear, should the Opposition wish to press the new clauses, they would be moved formally later, as they have been debated.
Question put and agreed to.
Clause 9 accordingly ordered to stand part of the Bill.

Clause 10

Regulations under section 8
Mr. Stephen O'Brien: I beg to move amendment 122, in clause 10, page 6, line 34, leave out ‘annulment’ and insert ‘approval’.
Thank you, Mr. O’Hara. We move to clause 10, which deals with more regulations under clause 8. The premise of amendment 122 is simple: the House should be given the opportunity to debate the regulations proposed in clause 8 regarding the form and content of the quality accounts. Presently, the regulations will be introduced into the Bill by way of a statutory instrument that the House will have the opportunity to annul. If we were given the chance to debate the regulations through approval of the secondary legislation rather than annulment, the Government could benefit from the views of the House on the scope and content of their regulations.
Without sight of the regulations, it is impossible to ascertain whether quality accounts will be rigorous and objective enough to paint an accurate picture of a trust’s services, or indeed the quality of those services. Although we endorse the notion and principle of quality accounts, we have not yet been given the opportunity to scrutinise the detail of the proposal. The regulations would raise a number of issues for debate, such as the circumstances in which the Secretary of State might exempt a trust from producing a quality account and the extent to which the regulations provide for an objective account of quality based on outcomes. In previous debates, we have certainly touched on the former, and the Minister, in responding to a previous proposed amendment, stated that the Secretary of State would have the power to exempt a trust from producing a quality account.
As with so much of the Bill, we do not have the draft secondary legislation or the proposed detail of the quality accounts. We have some examples, but the Minister rightly observed that that is not what is expected in the final iteration and analysis. The amendment would therefore be helpful in giving the Government, and indeed the House, the opportunity to take a view on whether the approach is working well, rather than simply using the process of annulment.
Mr. Mike O'Brien: Our original proposal was to use the affirmative route on the first occasion and the negative route thereafter. We amended the Bill in the other place to address recommendations by the Select Committee on Delegated Powers and Regulatory Reform that the negative route would suffice in this case. We have responded to that by taking our present position. Of course, we will want to engage extensively with external stakeholders on the design of the rules for quality accounts. We have already heard the views of more than 1,000 interested parties, and we want further consultation when appropriate before bringing things forward.
I do not see that much would be added by using the affirmative route for approving these often detailed regulations and procedures. We need to ensure that the various stakeholders are engaged; if they have concerns, they will doubtless bring them not only to our notice but to that of Opposition Members. The stakeholders will therefore be able to ensure that appropriate discussions are held should regulations prove controversial. However, we envisage that the development of the regulations would not usually be a matter of considerable controversy.
The hon. Gentleman said that we must not create a process under which various organisations can get out of providing quality accounts, and I agree with him. We need to be careful how the exceptions are used. That is why we want to consult on their detail, and when we should use them and when not. We do not want to impose unnecessary burdens on small organisations or small providers of limited services; but we want to be sure that if there is an issue about the quality of service that a patient may receive, there is an opportunity to consider whether quality accounts ought to be delivered. That may well be the outcome of the consultation on the particular providers of equipment that the hon. Gentleman mentioned.
I hope that the hon. Gentleman understands why we took the route that we did in our approach to statutory instruments, which was in response to the suggestions by the Select Committee on Delegated Powers and Regulatory Reform in the other place. We have taken that view on board and responded to it. To some extent, I believe that we deserve credit for having done so.
Mr. Stephen O'Brien: I recognise how the position reached in the Bill came about, but it was necessary to probe to obtain that confirmation. The intent is clear and I agree with it. The main thing is to ensure that there is no opportunity for misunderstanding. That exchange, in itself, should suffice. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 10 ordered to stand part of the Bill.

Clause 11

Direct payments for health care
Mr. Stephen O'Brien: I beg to move amendment 186, in clause 11, page 7, line 7, leave out
‘securing the provision to a patient of’
and insert
‘enabling a patient to secure’.
We are forging rapidly through the amendments, and we have reached clause 11. The Minister will recognise that we are likely to find ourselves engaged for a while, as we have reached the subject of direct payments. It is known across the House to be an extremely important development in health policy. However, it raises a number of concerns because it relates sensitively to some of the most vulnerable people in our society—be they the elderly in need of care, or those with long-term conditions who need the confidence of knowing that their care packages will be sustained and that they will receive them in a quality way.
The amendment addresses the heart of the principle behind direct payments. The substantive question is whether the Secretary of State is still in charge, or whether patients are truly empowered to commission their own care. We would argue that the Government have come somewhat late to the party on direct payments; we have been calling for them since 2004. The Government rejected them as recently as 2006, when we debated the White Paper entitled “Our health, our care our say”. The then Secretary of State for Health—there have been several—the right hon. Member for Leicester, West (Ms Hewitt), called them a
“revival of the patient’s passport”.—[ Official Report, 30 January 2006; Vol. 442, c. 29.]
She could think of nothing ruder. Can the Minister explain his party’s change of heart?
In fairness to the Minister, the Government are going only as far as piloting direct payments. I think that that is a way of saying that they are the right thing to have, but I also think that they have been concerned about a number of issues that have been raised with them, not least by those on the Government Benches and some people outside the House who represent groups of interests.
Given that we know where the two major parties stand on the issue, it will be useful, in the course of this process, to have equal clarity from the Liberal Democrats. I know that there are a number of amendments to the clause that the Liberal Democrat spokesman will be leading on. I have been concerned that perhaps we have not been completely as one in our approach to direct payments, which has always struck me as being absolutely in the line of Hobbes and Hume. I would be very surprised if the Liberal Democrats did not support this, but we shall see as the debate proceeds.
The point is about enabling the patient—the person who needs the care—to be empowered and, as the expert in their own care, to be in charge of the care with which they are provided. In addition, we should not forget that often the family and friends who are their carers are equally expert.
It is interesting to note that the former Health Minister, Lord Warner, said in Committee in the House of Lords:
“I have often thought that the NHS, which, as a Minister, I sometimes found a somewhat inward-looking organisation, is rather slow to learn from local government, which has often been much more innovative”.—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC212.]
I hope that the Minister will agree with his noble Friend’s assessment of our NHS, that we can now move rapidly to much greater clarity and expansion of the principle of making direct payments, and that that will become much more central to Government policy. As we shall develop the point through succeeding amendments, I shall not take up the time now, but we need to ensure, in relation to the patient being in charge, that we have the ability to make direct payments effective and move beyond the current pilot stage to something more full-blown.
 
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