NATIONAL CITIZEN SERVICE BILL. Memorandum concerning the delegated powers in the Bill for the Delegated Powers and Regulatory Reform Committee

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1 NATIONAL CITIZEN SERVICE BILL Memorandum concerning the delegated powers in the Bill for the Delegated Powers and Regulatory Reform Committee A. INTRODUCTION 1. This memorandum has been prepared for the Delegated Powers and Regulatory Reform Committee to assist with its scrutiny of the National Citizen Service Bill ( the Bill ). The Bill was introduced in the House of Lords on 11 October This memorandum identifies the provisions of the Bill that confer powers to make delegated legislation. It explains in each case why the power has been taken and explains the nature of, and the reason for, the procedure selected. B. SUMMARY OF THE BILL 2. This Bill is intended to support the delivery of the Government s commitments, as set out in the Conservative Party Manifesto 2015, to expand the National Citizen Service ( NCS ). 3. The Bill, together with the Royal Charter that establishes the body for which the Bill makes provision (the Charter ), seeks to achieve this by creating a new legal framework for delivery of the NCS. The Charter creates a new body responsible for providing the NCS called the NCS trust (the Trust ). The Bill and the Charter make provision to ensure proper oversight by the Government of the Trust s management of public funds and that the Trust is accountable to Parliament. The Bill should be read alongside the Charter. 4. The Bill is divided into two parts. 5. Part 1 (to which Schedule 1 relates) makes provision about the Trust, including the transfer of assets to it from the community interest company that currently delivers the NCS ( the Company ) 1, and its finance and accounting arrangements. It also confers on HMRC a function to send information about the Trust and its work to young people (and their parents and carers) and invite them to take part in NCS. 6. Part 2 contains general provisions. In addition, Schedule 2 makes consequential amendments to other enactments. C. ANALYSIS OF DELEGATED POWERS BY CLAUSE 1 The NCS is currently delivered by a community interest company called the NCS Trust C.I.C. (company registration number ). 1

2 7. The Department for Culture, Media and Sport ( DCMS ) believes that the delegated powers in the Bill deal with matters that, in the circumstances, cannot be otherwise addressed. Clause 2 and Schedule 1: transfer schemes Power exercised by: administrative scheme Parliamentary procedure: none Context and purpose 8. Clause 2 introduces Schedule 1, which confers power on the Secretary of State to make a scheme providing for the transfer of the staff, property, rights and liabilities of the Company (its assets ) to the Trust, in accordance with the provisions in Schedule 1. This allows for a comprehensive scheme transferring the assets of the Company to the Trust, in order to ensure the continuity of the business. Paragraphs 1 and 2 of Schedule 1 define the scope of the power to make such schemes, and paragraph 6 details the procedure for doing so; the Secretary of State must consult those likely to be affected and have regard to the results of the consultation. Paragraph 4 allows the scheme to include supplementary, incidental, transitional and consequential provisions. 9. The delegated power is needed because it is not possible to list exhaustively in the Bill the employees and assets that will need to be transferred at the time a transfer scheme is made. For example, staff numbers may change, as could the contracts of which the Company has the benefit. A delegated power is commonly used in such circumstances, for example in Schedule 6 to the Children and Families Act 2014 and sections 300 to 301 of the Health and Social Care Act DCMS considers a parliamentary procedure unnecessary for the use of this power. Transfer schemes are frequently made administratively; see for example the two Acts mentioned in the previous paragraph. 11. Moreover, the transfer powers in this case are tightly defined by the specific parameters set out in, for example, paragraph 1(2) of Schedule 1. These provide precise, targeted powers to achieve specific outcomes, and as such the Government considers that there is no need for further parliamentary scrutiny of the scheme. 2

3 Clause 4(2): form of accounts Power exercised by: directions parliamentary procedure: none Context and purpose 12. Subsection (2) of clause 4 confers a power on the Secretary of State to give directions to the Trust as to the form of the accounts it must prepare each financial year by virtue of clause 4(1). This enables Government to ensure that the Trust s accounts continue to follow best practice and general Government accounting procedure as these evolve. 13. The power will be used to specify the details of how the NCS Trust s accounts are to be presented, taking account of changes in accounting practice and Government guidelines from year to year. Taking a delegated power is the only practical method of dealing with evolving standards in the field of accounting. 14. The effects of exercising the power are confined to a single legal person and concern matters that are administrative in nature; moreover they have no indirect consequences for the position of any third party. It is common not to require parliamentary procedure for the issuing of directions about accounts, for example: paragraph 11(2) of Schedule A1 to the Apprenticeships, Skills, Children and Learning Act ; paragraph 7(2) of Schedule 1 to the School Standards and Framework Act 1998; and section 78 of the Local Government and Housing Act Similarly, the Government considers that no parliamentary procedure is necessary in relation to this power, which concerns only the form of accounts and is therefore narrow. Clause 12: transitional provisions Power exercised by: regulations parliamentary procedure: none 2 To be inserted by paragraph 9 of schedule 4 to the Enterprise Act 2016 (date to be appointed). 3

4 Context and purpose 15. Clause 12 confers power on the Secretary of State to make transitional, transitory or saving provision in connection with the coming into force of any provision of the Bill. 16. This power is necessary to make transitional provisions that would be too detailed to appear on the face of the Bill in connection with the commencement of any of the Bill s provisions. 17. For example, if the Trust is incorporated two weeks before the beginning of a new financial year the power could be used to make a one-off dispensation of the requirement on the Trust under clause 6 to provide an annual report on its performance during the previous financial year, which in that case would amount to two weeks. 18. Similarly, the power might be used to create an exception to the requirement under clause 7 to notify the Secretary of State of any of the events listed in subsection (2) of that clause, where the event in question had already been notified by the Company to the Secretary of State prior to incorporation of the Trust. 19. This is a standard power to enable the changes made by the Bill to be implemented in an orderly manner. Such powers are often included as part of the power to make commencement regulations and, as such, are not subject to any parliamentary procedure on the grounds that Parliament has already approved the principle of the provisions in the Bill by enacting them (see the next section). Although it is drafted as a free-standing power on this occasion, the same principle applies and accordingly the power is not subject to any parliamentary procedure. Clause 14: commencement Power exercised by: regulations Parliamentary procedure: none 20. Subsection (2) of clause 14 confers a standard power on the Secretary of State to bring provisions of the Bill into force by commencement regulations. Subsection (3) permits the appointment of different days for different purposes. 4

5 21. As usual with commencement powers, regulations made under this clause are not subject to any parliamentary procedure. Parliament has approved the principle of the provisions to be commenced by enacting them; commencement by regulations enables the provisions to be brought into force at a convenient time. Department for Culture, Media and Sport 11 October