Equality Bill

I shall speak also to the other amendments tabled in my name in this group. We have tabled these amendments to question the Government about their policies regarding exceptions to the provisions surrounding age discrimination. I shall begin with a short description of the amendments. Amendment 22 prevents marketing or promotions targeted at a particular group of people being defined as direct discrimination. In the same vein, Amendment 57ZA means that age discrimination would be included under the provisions for a "defence of material factor" as long as the differences on the grounds of sex or age in the provision of goods or services was, ""because of a material factor which is a proportionate means of achieving a legitimate aim"." Amendment 126 is similar to Amendment 129, which was tabled by the noble Baroness, Lady Knight, and inserts a new clause stating that it is not a breach of the Equality Bill for holiday companies to place age limits on holidays, for financial products to be qualified by special age brackets or for insurance programmes to be based on age factors. We have also given notice that we intend to debate whether Clause 195 should stand part of the Bill in order to question the Minister more fully on this area. We fully appreciate that this issue has been debated extensively in another place and at Second Reading, where many concerns were raised. In all these areas, the Government have been more than helpful and, indeed, have tried to be very reassuring, and for that, I am thankful. The Solicitor-General assured the Committee in another place that there would be extensive consultation in this area and that there would be regulations to protect certain goods and services, such as those provided by Saga. She said that, ""we shall exercise the power so that exemptions from age discrimination are in place from the moment that the ban is in place".—[Official Report, Commons, Equality Bill Committee, 2/7/09; col. 675.]" We welcome that reassurance. However, on Report, she seemed to renege on that promise by stating that there would be secondary legislation or guidance. At Second Reading in your Lordships' House, the Minister, in response to concerns raised by my noble friend Lord Ferrers, was clear that, ""there will be a specific exception for age-related holidays, such as those offered by Saga".—[Official Report, 15/12/09; col. 1510.]" She then confirmed that the exception would definitely be in regulations, not guidance. We welcome the Government’s response to our worries in this area. It is most reassuring to see that the Government have taken on board our concerns and those of many noble Lords and have agreed to put the exception into regulations rather than guidance. I hope the Minister will be able once again to confirm that that is the case. That will be appreciated by businesses such as Saga, which is grateful to learn that its holiday business, which caters to the over-50s, will be allowed to continue. I do not need to declare an interest, as I have not, as yet, taken advantage of that holiday company. Nevertheless, when can we hope to see the draft regulations for this section? The Minister in another place stated that regulations would be in place as soon as the Bill is passed to allow these age-defined holidays to continue so that, ""things that are good can carry on happening without interruption".—[Official Report, Commons, Equality Bill Committee, 2/9/09; col. 675.]" It is important that businesses are made aware of these regulations as soon as they are available. Businesses cannot and should not be asked to operate in a climate of uncertainty, where it appears that a statutory provision will prohibit their entire market model. This is true at all times, but is even more true given the current economic climate. Saga is grateful for the assurances given by the Government in response to concerns expressed by many on these Benches. However, it remains concerned about the possible restrictions on financial services that it supplies to the over-50s. Amendment 129A was suggested by the Association of British Insurers in order to address this issue. The amendment would mean that insurance companies would use age as a factor of differentiation, as long as there was no demonstration of, ""significant detriment to the elderly or another age group"," and that if differentiation were not allowed there would be an adverse impact on other age groups. We have raised this concern because many insurance companies are worried that they have not had the same reassurance as the holiday sector. That is despite the fact that, when the Government released their Green Paper on discrimination, they said that they "probably" wanted to allow insurance companies to, ""continue to design and provide products for specific market segments"." Is this still the Government’s intention, and will insurance companies expect to see similar regulations relating to them too? Insurance companies are worried because they fear that, if they are forced to offer premiums to all age groups, they will become much less competitive in the specific age sector in which they are currently operating. Saga, for example, would not be able to offer its favourable rates to over-50s because it would also have to design packages for those under 50. These would have to reflect different needs and desires, so Saga would risk losing its reputation for specialism and expertise in the older market. Furthermore, much research has been undertaken to show that, even though many insurance companies may specialise in a particular gender or age bracket, ""there are no significant age-related segments of the market that are currently unserved"." Moreover, the ABI is developing a signposting system, which would mean that older people would be directed toward travel and motor insurance products that are suitable for their group. Saga has spoken very much in favour of this system as it would mean that companies that were unable to provide insurance for a particular set of people would be able to refer them on to an independently accredited service, which would be able to provide them with a list of companies that would be able to serve their particular needs. Will regulations also be brought forward to exclude insurance companies and other related services from breaching this Act? If so, when might companies reasonably expect to see these regulations? I also look forward to hearing the Minister’s comments on Amendment 128, which was tabled by the noble Baroness, Lady Coussins. This is just one example of many where there will be an appropriate case for making regulations to provide an exemption to this Act. How many regulations does the Government estimate will be needed to allow legitimate differentiation to continue? Do they expect to have all those in place for the moment the Bill becomes law? We argue that this is necessary for the stability of business and security of the many market models. I hope that the Minister will be able to provide some reassurance on all these matters. I beg to move.