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As the noble Baronesses, Lady Barker and Lady Greengross, suggested, however, government, whether national or local, does not employ the majority of social care staff. About a third are employed by local councils, but the majority are in the private and voluntary sector, from which councils commission services. Care homes are private businesses. Owners must take their own decisions about their business in the framework of standards applying to the sector. In considering the issues of vacancies, turnover and pay, one must bear in mind that we are now talking about a more diverse sector than has traditionally been the case.

I was interested in the views of the noble Baroness, Lady Verma, on some of the challenges facing providers. I have some sympathy with what she said. I was also interested in her views about the changing requirements on care home staff and her desire to make sure that the training programme available is meeting their developing needs. The Leicester pilot sounds very interesting, and I would be interested in hearing further about it.

The issue of pay is clearly important. The noble Lord, Lord Low, and the noble Baroness, Lady Barker, particularly drew attention to it. There is a perception that recruitment and retention issues are linked to pay and rewards. I am not going to stand here and say that pay is not a factor; of course, it is. It is not the only factor because there are many wonderful people who are extremely motivated to work in the social care sector. In addition to pay, many employers have been able to tackle recruitment and retention problems by offering good support and good training programmes so that people feel supported when they work in particular parts of the sector. My noble friend Lady Pitkeathley mentioned the importance of good management in this area. I agree with her.

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I was interested in the proposals of the noble Baroness, Lady Greengross, and I will arrange for officials in my department to have a further look at them. They sounded very interesting.

I cannot avoid talking about money. The noble Earl, Lord Listowel, and the noble Baronesses, Lady Barker, Lady Shephard and Lady Scott, particularly focused on issues to do with resources. Resources are clearly a challenge. Noble Lords would expect me to remind them that there has been an increase in resources. I also acknowledge the improvements in efficiency that local authorities have made, which have increased resources for them to use and enabled them to increase the range of services they offer. However, it is a challenge for local authorities to balance priorities. I fully understand the inter-relationship between health and social care and that the actions taken in one sector can have a knock-on effect in another. All these matters have to be taken into account. I read with a great deal of interest the Local Government Association report Without a Care?. It identifies some of those issues from the point of view of local government. About as much as I can say about that is that we are working with the LGA and others, including Sir Derek Wanless and the Association of Directors of Social Services, to understand financial needs for the next spending review.

My noble friend Lady Pitkeathley and the noble Baroness, Lady Shephard, also mentioned the report from the Commission for Social Care Inspection, which was also very interesting. It is not all doom and gloom. It clearly identified some areas of concern, but it stated that for the fourth successive year the number of providers meeting national minimum standards had increased and that there was a welcome improvement in performance. However, it also mentioned the pressures on the commissioners and providers of services. In view of the comments made by the noble Lord, Lord Ramsbotham, about commissioning, the report stated that too many local authorities are still commissioning the same traditional services and that local authorities need to move towards commissioning that supports the independence and choice of service providers. It stated that local authorities need to involve other stakeholders and focus on commissioning for good quality outcomes. I say to the noble Lord, Lord Ramsbotham, that while I do not think I can comment on Orchard Lodge, I think that diversity of provision is a good idea and can bring greater innovation into the provision of services, but it depends on effective commissioning. My experience with the health service is that effective commissioning is difficult. There is no doubt in my mind that to make it work we must do everything we can to help enhance the skills of commissioners so that we get the advantage of commissioning, and not some of the downsides mentioned by the noble Lord, Lord Ramsbotham.

In a sense, that brings us to the core of today’s debate, which is about the workforce, how it can be supported and its training. I do not share the doubts of the noble Lady, Lady Saltoun, about the quality of the writing of the report, but perhaps I have read too

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many government White Papers to be able to make an independent assessment of its quality. The noble Earl, Lord Listowel, was right to say that it represents an excellent opportunity to set out a strategy in the long term for the entire social care workforce. It has a clear vision, sets out priority areas for improvement and draws on experience of what works, so I believe that it is practically based, which is essential if we are to make the most of this opportunity. The Government are considering how to take it forward. It cannot be divorced from the overall funding available so it is part of the discussions in relation to the Comprehensive Spending Review process. I was interested in the comments of the noble Lord, Lord Low, about the content of training. I shall certainly feed them into the consultation process and make sure that officials who are taking the work forward see a full copy of the debate.

It is clear that the role of government in relation to the social care sector and its workforce is different from its role in the health service. Although government can provide policy direction, legislate and set standards, because it is not the bulk employer of social care staff, it is necessary to make sure that what is being proposed is also owned by the many providers of social care services. I am very keen to make sure that that happens.

I was interested in the comments of the noble Lord, Lord Northbourne, in relation to the children in care Green Paper. He was right to identify it as having a cross-government approach. In order to succeed, it clearly has to embrace many different government departments and local statutory and voluntary agencies. We see that as being at the heart of the Government’s programme to tackle poor outcomes and social exclusion for the most vulnerable groups in our society. I was interested in the noble Lord’s comments about the need for earlier action to help the parents of children. I very much agree with that. A lot of the Government’s programmes are designed to do that. I shall feed his views into the Green Paper process—it is a Green Paper, so we are ever open to ideas—and we would be very interested in further discussions with him on this area.

The noble Lord, Lord Hylton, mentioned foster care. That is an important matter. The noble Lord will know that the Green Paper seeks to address recruitment and improve the capability of foster carers. We see national minimum allowances as important in getting rid of the inconsistency that has been apparent and which he mentioned. As the noble Lord knows, in care matters it introduces a tiered framework of qualifications for foster carers. He made a valid point on the question of allegations. I can assure him that we are working with fostering networks to improve support for carers who are subject to allegations. A key thing is to improve the support that carers get from local authorities. We fund an advice line for carers and we are producing materials for local recruitment campaigns. I can assure the noble Lord that we agree with him about the importance of foster carers.

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I want to come back to an interesting comment made by the noble Lord, Lord Low, who referred to the experience of his wife and a possible changed perception of social care workers over the years. I was brought up in Oxford. My father was a social worker in Oxford at the time when Lucy Faithfull was the director of social services there; I think that she was children’s director before that. I do not pretend that there was then a golden age, when social workers were regarded as the most brilliant professionals around. Yet they were held in more respect then than they are today.

There is no question that, given the challenges that the whole social care sector faces, the one thing we can do to improve the condition of its workforce and services is to raise the image of the profession itself. The degree is a start and many other things need to be done. We are keen in Government to do what we can to support a programme and the Secretary of State, Patricia Hewitt, has asked Dame Denise Platt, chair of the Commission for Social Care Inspection, to report by the end of this month on a plan to improve the public image of social care.

To conclude, the people who work in the social care field are a hidden army in many ways; people who provide an essential backdrop to many other well-known services such as the NHS, the police, education and housing. They are well over a million people—a huge number, who provide essential support for some of the most vulnerable and needy people in our society. In concluding this debate, I echo the remarks of noble Lords in thanking those people for everything that they do. Our job is to make sure that the framework, conditions and foundation of how they work are as sound as possible. There is no question that the issues that the noble Earl, Lord Listowel, and other noble Lords have raised today on training and support are critical to that, so I very much hope that we can build on the progress that has already been made.

2.02 pm

The Earl of Listowel: My Lords, I know I must be brief. I thank all of your Lordships who have taken part in this debate. I particularly thank my Cross-Bench colleagues for their strong support. The noble Baroness, Lady Pitkeathley, has been so helpful with her vast experience and responsibilities in this area.

Now that I know that the Minister’s father was a social worker, it helps to explain why he has made such a difference to children in care with the legislation he has taken through this House in the past, which has introduced a right to independent advocacy and raised from 21 to 24 the age of protection for looked-after children leaving care. I understand now why he was so passionate about those matters.

I also want to thank the noble Baroness, Lady Verma, for emphasising the need for stable relationships for children in care. It is not easy to measure the value of those things, but they must not be overlooked because of that. My noble friend Lord Ramsbotham drew attention to commissioning. We have talked about diversity of provision. I respect and

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acknowledge the importance of diversity in terms of competition and innovation but it adds complexity. If we acknowledge that we have not got the basics right, then the Government—whose instinct will be to increase diversity—need to think carefully about adding another degree of complexity at this time. The Minister had no time to reply to my specific concern about the newly-qualified social work status, but I am sure that we can discuss that further.

Again, I thank all noble Lords who took part in the debate and absolutely join in acknowledging the huge contribution that all of those working in social care make in this country to the welfare of vulnerable children and adults. I beg leave to withdraw the Motion for Papers.

Motion for Papers, by leave, withdrawn.

BBC: Licence Fee

2.04 pm

Lord Davies of Oldham: My Lords, with permission, I shall now repeat a Statement made in another place on the future funding of the BBC. The Statement is as follows:

“Over the past three years, the public, industry and Parliament have all had many opportunities to put forward views about the BBC’s future shape and funding, as has the BBC itself. I am now in a position to announce what the funding settlement will be over the first part of the new charter period. “The settlement will be for six years, with annual increases in the licence fee of 3 per cent for the first two years and 2 per cent in years three, four and five of the settlement. There will be an increase in the sixth year (2012-13) of up to 2 per cent, depending on a further review nearer the time. I have written to the BBC Trust today setting this out. “These are cash increases, so licence fee payers can have certainty on the price of a colour TV licence, which will rise from its current level of £131.50 to £135.50 from 1 April this year, reaching £151.50 in 2012. Based on the Treasury forecast of the consumer price index—the Bank of England’s inflation measure—this will be either above or in line with inflation for each year of the settlement. It will enable the BBC to deliver its new public purposes set out in the new charter, and as digital technology transforms the media world, it will enable the BBC to take a leading role in making the most of it. Investment in high-quality content—the driver of creative industry and what audiences value most of all—will remain high. This settlement will enable the BBC to do all that. “It will also allow the BBC to move key departments, including children’s, sport, new media and learning, to Salford, in the north-west of England. I welcome the trust’s confirmation, due later today, that this important project will happen. This is a vital opportunity for the BBC to widen its geographical spread, making better use of the creativity and talent that exists across the UK and bringing huge benefits for the regional

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economy, estimated at £1.5 billion and 15,500 jobs. This will allow the BBC to maintain all of its current services and, depending on the level of efficiency it achieves, will provide up to £1.2 billion for investment in new activities. “The people of the United Kingdom spend more money on the BBC than any country in the world spends on public service broadcasting, except Germany. The new BBC Trust must ensure that licence-fee payers get the best possible value for that investment, so we will expect the trust to ensure the efficiency of the BBC. “Based on independent evidence from our consultants PKF and others, we believe that the BBC can realise up to 3 per cent cash-releasing savings annually from 2008. A separate report by the National Audit Office, published today, confirms that our judgment is based on adequate evidence. It will be the trust’s responsibility to set specific targets and hold the BBC management responsible for meeting them. “The BBC has been given a leading role in digital switchover for the delivery of this broadcasting revolution. In particular, the licence-fee settlement will fund the £600 million scheme we are putting in place to help the elderly and disabled people make the switch. The Government’s expectation is that the BBC will lead the delivery of the scheme. We respect the independent status of the trust and there are clearly details of the scheme still to be discussed. “The BBC will also pay for the £200 million public communications campaign being run by Digital UK to ensure that people are properly prepared and informed about switchover. These sums will be ring-fenced within the settlement and will not impact on the BBC’s core budgets and services.“We are giving the BBC a 12.5 per cent increase in its borrowing capacity to help deliver this commitment. We will ensure the BBC's services are protected from any cost increases in the help scheme, above our existing estimates. “In last year's White Paper on the BBC, we also noted that Channel 4 was likely to face major financial challenges in the future. Ofcom is currently assessing the potential scale of this. We said we would consider potential forms of help, including asking the BBC to help towards meeting its capital switchover costs, and possible access for Channel 4 to some of the BBC's digital TV capacity. Ofcom's review of Channel 4 is looking in detail at its financial prospects and is expected to report towards the summer. I am therefore keeping open, within the licence fee settlement, the possibility that we may require the BBC to contribute to the first six years of Channel 4's switchover costs. This will be no more than £14 million in total. “I also welcome the BBC's conclusion that, in principle, it can make available some spare digital terrestrial capacity—amounting to a TV slot in England and three radio slots—at switchover. Under the BBC agreement, I can direct the BBC to

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make capacity available to another public service broadcaster where it is in the interests of public service broadcasting in the UK. I shall decide whether and how to use that power in the light of Ofcom's review. “The settlement I have set out for the BBC provides stability and certainty over the next crucial period of digital switchover. The sixth year will, in effect, also form the first year of the following settlement. This will allow us to undertake a further review of the licence fee level in the run-up to the mid-charter point, taking account of the wider review of public service broadcasting, consistent with our commitment in the White Paper.“A strong, independent BBC, accountable to the licence payer, valued by the public and providing the highest public value, has been our fundamental goal throughout this long process. It is now complete and the BBC, along with all the other broadcasters, can now plan and prepare for digital switchover, the next great revolution in television, ensuring that the most vulnerable are protected and the fundamental principle of universal access to public service broadcasting is secured. I commend this settlement to the House”.

My Lords, that concludes the Statement.

2.13 pm

Lord Howard of Rising: My Lords, I thank the Minister for repeating the Statement made earlier today by his right honourable friend the Secretary of State for Culture, Media and Sport. It is regrettable that, yet again, an important announcement such as this has been so comprehensively leaked. It shows a disgraceful lack of respect for Parliament when business is conducted in this way.

The BBC is a national institution, but to be given a guaranteed income for so long a period is a luxury for which anyone else in the media industry would be extremely grateful. It would enable them to adjust their costs according to their income. Let us hope the BBC will do that. Let us also hope that, in the absence of the discipline of market forces, the National Audit Office will be allowed to give the BBC the thorough examination which spending more than £3 billion a year of public money merits and ensure that the 3 per cent annual savings identified by PKF are implemented.

Included in the Statement is a sum of £600 million to assist the elderly and disabled to switch to digital television. Has the BBC Trust agreed to take on the role of delivering this assistance? Will the £600 million be sufficient, or does the comment contained in the Statement—that,

“We will ensure the BBC’s services are protected from any cost increases in the help scheme, above our working estimates”—

mean that there is already concern that the costs will go far above the initial estimates, as with so many other projects undertaken by the Government? These costs would then be paid for by the increased BBC borrowings, which must ultimately be paid for by the public.

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It is stated that the move to Salford will create 15,500 jobs. How many jobs will be lost at the same time?

Will the Minister ensure that it is made clear on TV licences how much of the cost relates to the cost of the digital switchover? When we receive our council tax bills it states how much is allocated to various bodies—parish councils, the police and so on. A similar statement on TV licences would enable the public to know when they have finished paying for the digital switchover.

2.16 pm

Baroness Bonham-Carter of Yarnbury: My Lords, I, too, thank the Minister for repeating the Statement. I declare an interest in that I used to work for the BBC and am presently an associate at an independent production company.

For more than 80 years the BBC has been the envy of the world. It has a reputation for setting the gold standard for TV and radio. Does the Minister acknowledge that the extra burdens the Government have placed on the licence fee this time mean that this below-inflation increase will put at risk that reputation, and that it will be a huge disappointment to many people? Does he accept that a survey commissioned by the Government showed that the vast majority of licence fee payers are willing to pay more in real terms for improved quality? Last year, Mark Thompson, director-general of the BBC, said at the end of two years of public debate which was much heralded by the Government that the BBC must be given the finances to deliver the mission that emerged out of that consultation. He referred to,

“this piece of settled public policy”.

Why are the Government setting their face against the views of the majority in this country?

The BBC is being asked to run far more than its existing services and to shoulder costs that should be borne out of general taxation. Can the Minister explain why the licence fee is being used to pay for the Government’s policy of switching to digital and for the social costs of helping the vulnerable and elderly involved in the switch? How do the Government come to the view that a targeted assistance programme is a broadcasting cost? It is not a broadcasting cost but a social cost, and it is not appropriate for the licence fee to be used to pay for a social cost. In effect, this is a new tax collected in the disguise of the licence fee. As the noble Lord, Lord Howard, said, what happens if it costs more than the £600 million which the Government predict? Will the Government fund the extra, or will the BBC have to make further cuts in its programme budgets?

The disagreements which have marked the process of this licence fee settlement—apparently both within government and between government and corporation—and the damagingly late date on which the settlement has been reached underline the flawed nature of the system for agreeing the settlement. Why is the process not more transparent? Why do negotiations take place behind closed doors at White City and Whitehall?

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The BBC should publish its revised figures, and in future the setting of the licence fee should be open to proper scrutiny involving greater parliamentary oversight.

Bearing in mind the obvious conflict of interest, will the Minister assure the House that the Government have not been influenced in any way by lobbying from Rupert Murdoch’s News Corp in determining the settlement? The one person who we know will be cheering the Statement is Rupert Murdoch.

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