Contribution
There is a deafening silence. I turn to group six and the amendments, all in the name of the noble Baroness, Lady Barran, which concern Clause 13: Amendments 138D, 138E and 139A. They seek to exclude natural persons from the provisions relating to the issue of monetary penalties. Clause 13, as drafted, gives Ofsted an additional power to issue monetary penalties to providers that have breached requirements set out in, or under, the Care Standards Act, including operating a children’s home without registering with Ofsted, which they could also prosecute as a criminal offence.
Ofsted will also be able to issue a monetary penalty to provider groups for failure to comply with new requirements set out in Clause 12 of the Bill. This measure will ensure Ofsted has a full range of enforcement powers so that it can act proportionately and at pace, which will act as a deterrent. This includes individuals who operate children’s homes, other establishments or agencies. It is difficult to see why a natural person running a children’s home, other establishment or agency should not be subject to the same enforcement powers as a partnership or organisation when they have breached the law, and where Ofsted could prosecute that natural person for the relevant breach.
Furthermore, based on data from Companies House, these amendments would result in Ofsted being unable to fine 10 individuals who currently operate children’s homes if they breached the law, compared with the 2,738 companies that operate children’s homes. Ofsted have told me directly that it strongly opposes any amendment that would exclude natural persons and limit who financial penalties can be imposed on for illegally operating children’s homes without being registered. Individuals will—and do—gain financially from illegally operating children’s homes without being registered, and should not be excluded from the potential consequences of doing so. All the discussions in Committee have been about protecting children and making sure that they are safe. We have to make sure that, in this area, in spite of the comments made by the noble Baroness, children and their safety are at the forefront of our minds. It is also worth noting that it is common in legislation for natural persons to be subject to financial penalties in the same way as operations and companies.
For example, the Tenant Fees Act 2019 enables fines to be imposed on landlords, who may be natural persons, for breaching the ban on letting fees being charged, and the Data Protection Act 2018 enables the Information Commissioner to impose fines on persons, including natural persons, who have failed to comply with various notices issued by the ICO.
I have already stated the reasons for the need and intent of these additional powers. However, I add that the clause ensures that Ofsted has an alternative to prosecution where that is currently the only enforcement action. Ofsted will not be able to impose a monetary penalty on a person for the same conduct where criminal proceedings have been brought against them in relation to that same conduct. Further, and importantly, to act as a deterrent and to ensure transparency for the public, the clause gives the Secretary of State the power by regulations to require Ofsted to publish details about the monetary penalties it has issued. Ofsted must also notify local authorities when a monetary penalty has been issued, as it is currently required to do in relation to other enforcement action it takes. A monetary penalty may be used by Ofsted as grounds for cancellation of registration.
I assume it will come as no surprise to the noble Baroness that I will have to write to her on the financial assessment and the other questions she raised on the specific requirements in place. I am more than happy to do that, and to share it with any interested parties. Therefore, for the reasons I have outlined, I kindly ask the noble Baroness not to press her amendments and that the clause stand part of the Bill.