HL Deb 26 January 1998 vol 585 cc1-4

Baroness Gardner of Parkes asked Her Majesty's Government:

Whether, as an aid to the creation of more jobs, they have any proposals to treat domestic employment, particularly of those providing care for the elderly, the sick, the disabled or children, as fully tax-deductible positions for those employers in need of this assistance.

Lord McIntosh of Haringey

My Lords, decisions on tax are a matter for the Chancellor of the Exchequer's Budget, but the Government are committed to helping people into work and making work pay.

Baroness Gardner of Parkes

My Lords, I thank the Minister for his Answer. Is he aware that when they introduced this type of system in France they created hundreds of thousands of new jobs? Further, does the noble Lord agree that it would quite probably be revenue neutral because most people who employ someone on that basis at present are just paying cash in hand?

Lord McIntosh of Haringey

My Lords, as regards the noble Baroness's second point, I am not sure that I should respond about what is, after all, law breaking. Those who are paying cash in hand and not paying tax, or not encouraging their employees to do so, are breaking the law. I do not believe that we can calculate on the basis that any such change would be "revenue neutral". The problem with the change proposed by the noble Baroness is that it would very much help the better off rather than those most in need. because it would only be accessible to those who can afford to pay the gross costs of employment.

Lord Gainford

My Lords, does the Minister see a possibility of using the situation to enhance the trade of domestic service? I ask that question because servants are no longer considered to be menial; indeed, they are highly valued, especially in households where the husband and wife have professional qualifications. I have an indirect interest in the matter. A daughter of mine, who lost her executive job, went into domestic service and now runs her own housework and gardening business.

Lord McIntosh of Haringey

My Lords, I congratulate the noble Lord's daughter on her enterprise. Of course, I have the greatest respect for the honourable profession of caring, especially for disabled people and children. However, there is a risk that much domestic service, other than the kind to which I and the noble Lord referred, would be relatively short term, without qualifications and might not lead to full-time permanent employment.

Baroness Masham of Ilton

My Lords, with the serious lack of nurses, would this proposal not help to provide carers for the community. especially for very severely disabled people? Indeed, caring is very expensive to provide.

Lord McIntosh of Haringey

My Lords, I thought that the noble Baroness was going to refer to the nurses' need for childcare. I do not believe that the noble Baroness meant quite that, although, if I may anticipate questions on that point, the whole of the Government's New Deal proposals for getting young people into work and for after school childcare ought to help nurses, as well as others. As regards the noble Baroness's other point, there is of course a gross shortage of skilled nurses and our welfare-to-work proposals ought to assist in tackling that problem.

Lord Campbell of Alloway

My Lords, if the Minister accepts that there is a desperate shortage of nurses—and indeed there is—and suggests that the welfare-to-work proposals will help, can he say how they will do so? Must not something be done as a matter of urgency right now to enable these nurses to have a respectable recompense and to get the National Health Service running again as it should be?

Lord McIntosh of Haringey

My Lords, the noble Lord will not expect me to anticipate the findings of the review body or, indeed, the Government's response to them. I must apologise for shortening my answer too much when I referred only to welfare-to-work proposals. Indeed, a number of other government initiatives will help with the problem with regard to nurses; for example, the 10 pence starting rate of tax, the forthcoming minimum wage, reform of national insurance contributions and working families tax credit. All of those projects operate in the same direction to encourage this kind of work.

Lord Campbell of Alloway

My Lords, is the Minister aware that I am not interested in these reviews? I am interested in what is going to be done now in a desperate situation to give a fair deal to nurses.

Lord McIntosh of Haringey

My Lords, the noble Lord has repeated his question. I must also repeat that he will not expect me to anticipate the report of the review body or, indeed, the Government's reaction to it. I fully agree with the noble Lord that a shortage of 8,000 nurses is a very serious problem for the National Health Service.

Lord Dean of Beswick

My Lords, is not the Minister aware—

Baroness Robson of Kiddington

My Lords—

Lord Dean of Beswick

My Lords, it is the turn of this side.

The Lord Privy Seal (Lord Richard)

My Lords, I think there is enough time for both the noble Baroness and my noble friend. Perhaps the noble Baroness will go first.

Baroness Robson of Kiddington

My Lords, I support the Question asked by the noble Baroness, Lady Gardner of Parkes. The Minister said that we do not have enough qualified people and there is a risk that people who are not qualified will take up these jobs. Does he agree that at the moment the Government are planning to spend money to create more childcare facilities for working mothers? He must agree that it is wrong to double tax people. If we implemented the measure we are discussing, that would provide great opportunities to reduce unemployment and would also teach young people how to run a home and how to look after a family. There is no reason why we should not set certain standards for these people before they are employed.

Lord McIntosh of Haringey

My Lords. I believe that I have already given sufficient indication of the Government's policies, including the childcare policies to which the noble Baroness referred. Those policies will help to get people into work, which is what we must be concerned with above all. However, I must repeat that the suggested relief would benefit the relatively well-to-do, who can afford to employ a carer in the home. It would be expensive to provide relief at a marginal rate on the gross salary cost of the carer and it would, of course, mean a windfall for those who already have domestic help.

Lord Dean of Beswick

My Lords, is the Minister not aware of some of the more savage financial penalties that were inflicted on those in the nursing profession by the previous government in the steep rises in the cost of accommodation that were inflicted on nurses without their having any say in the matter? I refer to rented accommodation.

Lord McIntosh of Haringey

My Lords, I do not disagree with my noble friend's analysis of past problems.

Lord Marsh

My Lords, on a slightly wider point, does not the Minister agree that it is now government policy that we should move away from these incredibly wasteful across-the-board benefits and move to benefits focused much more closely on need?

Lord McIntosh of Haringey

My Lords, much as I would like to answer that question, the noble Lord is going a good deal wide of the original Question on the Order Paper.

Baroness Trumpington

My Lords—

Lord Richard

My Lords, I am sorry to rise so early but I believe that we have spent eight minutes on the first Question. I think that perhaps we should move on.

Back to