The National Statistics annual report for 2004–05 is being published and laid before the House today. Copies are available in the Libraries of both Houses. The report can also be obtained free on the National Statistics website.

I have today placed in the Libraries of both Houses copies of updated guidance to officials from Government Departments and agencies on "Departmental Evidence and Response to Select Committees". The Government are grateful to the Liaison Committee for their contribution to the updated guidance.

I have today laid before the House a copy of the planning inspectorate's annual report and accounts for 2004–05. Copies of the report have been made available in the Libraries of both Houses.

The report gives an overview of the performance of the inspectorate and demonstrates the importance of a credible, accessible planning tribunal service which is open, transparent and impartial. It also highlights the ways in which it is contributing to the Government's planning reform agenda.

I have also agreed with Carwyn Jones that, for 2005–06, the Inspectorate's targets for its main areas of casework should remain unchanged.

Following the outcome of our financial modelling, I am now able to confirm household income thresholds for the new maintenance grant, which is to be introduced to help low income students enter and continue in higher education from 2006–07. Those students with household income of £17,500 or less will receive the full £2,700 maintenance grant. Students with household income between £17,501 up to £37,425 will receive a partial grant. We therefore anticipate that around 30 per cent. of new, full-time students will qualify for the full £2,700 grant, with 50–55 per cent. qualifying for a full or partial grant in 2006–07. Furthermore, the element of the new grant which is to be paid in substitution for the maintenance loan has now been set at £1,200.

I can also confirm that student loan rates in the 2006–07 academic year will be as follows:

Full year rates:

Students living at home: £3,415

Students living away from home, in London: £6,170

Students living away from home, outside London: £4,405

Final year rates:

Students living at home: £3,085

Students living away from home, in London: £5,620

Students living away from home, outside London: £4,080

This honours the commitment on loan rates made to the House by my right hon. Friend the Member for Norwich South (Mr. Clarke), in his statement of 8 January 2004.

These arrangements will be enacted in Regulations which are expected to be laid before Parliament in January.

My noble Friend, the Lord Bach, has agreed to the future direction of DEFRA's laboratory strategy, which aims to deliver a long term sustainable future for DEFRA's laboratories: the Central Science Laboratory (CSL), the Veterinary Laboratories Agency (VLA) and the Centre for Environment, Fisheries and Aquaculture Science (CEFAS).

DEFRA's laboratories have an international reputation for excellence. They play an important role for DEFRA by providing scientific capacity and the evidence base for policy development. DEFRA will continue to rely on the support they provide, so it is important that the strategy delivers a sustainable future for their work. A new group, the "Laboratories Strategy Group" (LSG) has been formed to develop and oversee the programme of work necessary to take the strategy forward. The LSG is chaired by Lynton Barker (non executive) and reports to DEFRA's management board.

As part of the laboratory strategy, DEFRA is working with the Biotechnology and Biological Sciences Research Council (BBSRC) on a joint study to consider the future relationship between VLA and the Institute of Animal Health (IAH). Objectives of the study are to achieve financial sustainability, exploit synergies between the two organisations and ensure the continuation of critical research and other scientific services.

The 2004–05 annual report and accounts for the Veterinary Medicines Directorate will be laid before Parliament today. Copies will be available in the Library of the House.

I am pleased to place copies of the reports by the Environment Agency and that collated by the Government Office for the North-West in the Library of the House.

I welcome these reports on how the flooding in Carlisle and across the north of the country in January was handled. I hope that they will provide people in Carlisle in particular with a picture of how local services coped and the lessons they have taken away.

A major storm produced exceptional amounts of rain over a 36 hour period, leading to overtopping of defences and flooding of some 3,000 properties. Two lives were lost and many residents were evacuated. I had the opportunity to see for myself the floods' devastating effects.

These reports show how flooding came from both the rivers and from surface water routes. This combination can result from very heavy, localised rain falling over short periods of time—it was also a feature of recent flooding in North Yorkshire. In our new strategy for flood risk management, "Making Space for Water", we have announced our intention to undertake some integrated urban drainage pilots to investigate how these complex issues can be better managed in the future.

The conditions as experienced in January also make the provision of timely warnings extremely difficult, for example in some parts of Carlisle where flooding from surface water sources preceded overtopping of the river defences. Nevertheless, the Environment Agency is reviewing with other bodies involved what improvements can be made to warning systems.

For our part we are taking forward the recommendations in these reports on strengthening resilience to flooding events through improved cross government and agency co-ordination under a new flood emergencies capability programme, which will look at the key issues that local responders have identified as needing further attention. The reports identify a number of areas where the local emergency services and other responders can themselves build on the experiences of January this year and it is important that we should take on these lessons more widely, so building our overall capability for managing flood emergencies in the future.

It is also important that all services, utilities, business and householders who are at risk should do what they can to strengthen their resilience to flooding, especially as we are likely to see a greater frequency of such events in future years given the expected impact of climate change.

In addition, the Environment Agency has already announced plans to promote a flood defence scheme for Carlisle. The agency has revised the plans it had in mind before the flooding occurred in the light of the events of January, and start of work on the new defences is scheduled for spring 2006.

I have today arranged for the annual reports of the Life Sentence Review Commissioners and the Sentence Review Commissioners to be laid in the House. Copies of the reports have been placed in the Libraries of both Houses.

The police ombudsman for Northern Ireland's annual report for 2004–05 is published today. Copies will be available in the Libraries of both Houses.

The targets, which have been set for 2005–06, are based on the strategic aims and objectives of the agency as set out in section 4 of its corporate and business plan. The targets are in line with the Department's policy of seeking to improve the service provided to the agency's clients in terms of both quality and value for money and I am satisfied that they present a demanding challenge for the agency. A copy of the corporate and business plan will be placed in the Libraries of both Houses.

The targets are as follows:

Quality

1. 95 per cent. of the service provided by the agency's client support staff to external clients to be regarded as satisfactory, of which 35 per cent. of the service to be regarded as either very good or excellent.

2. 95 per cent. of the service provided by the agency's project management staff to external clients to be regarded as satisfactory, of which 35 per cent. of the service to be regarded as either very good or excellent.

3. 95 per cent. of the service provided by the agency's trust consultancy support staff to external clients to be regarded as satisfactory, of which 35 per cent. of the service to be regarded as either very good or excellent.

4. 95 per cent. of the service provided by the agency's specialist engineering staff to external clients to be regarded as satisfactory, of which 35 per cent. of the service to be regarded as either very good or excellent.

Throughput/Service Delivery

5. Complete testing against health service guidance and relevant British and European standards and issue test reports to the authorised person in respect of 98 sterilisers and washer disinfectors by 31 March 2006, based on 98 machines in operation at 1 April 2005 and on a testing resource of four fully qualified decontamination testing staff being available over the target period.

6. Issue all medical device/equipment alerts with an "Immediate Action" level of urgency designation initiated by the Medicines and Healthcare products Regulatory

Agency (MHRA) within three working days on receipt of final MHRA alert (provided that no further consultation is involved).

7. Issue all medical device/equipment alerts with an "Action" level of urgency designation initiated by the Medicines and Healthcare products Regulatory Agency (MHRA) within five working days on receipt of final MHRA alert (provided that no further consultation is involved).

8. Develop and issue for consultation an environmental cleanliness strategy, cleaning specifications and an assessment tool by June 2005 and undertake an independent assessment of environmental cleanliness based on the cleaning specifications by October 2005.

Financial Management

9. Ensure that the agency lives within its running cost allocation for the year.

10. Demonstrate that the full costs of the agency are recouped, on a notional basis, through the service level agreement with the Department.

The annual report of HM Crown Prosecution Service Inspectorate has today been published and laid before Parliament. Copies have been placed in the Libraries of both Houses.

Today I am launching our consultation on draft regulations that will for the first time outlaw age discrimination in employment and vocational training. The 17 October 2005. Subject to parliamentary approval we intend that the legislation should come into force on 1 October 2006, implementing the final strand of the European Employment Directive (Council Directive 2000/78/EC).Coming of Age consultation will end on

Age discrimination prevents people of all ages from realising their full potential in the workplace. This in turn prevents employers from getting the best performance out of their business and delivering the best service to their customers. We have consulted over a number of years on our plans for legislation in this area. We have said throughout that tackling age discrimination is good for business, good for individuals and good for society.

Age discrimination legislation has far-reaching consequences. It touches on every aspect of the employment relationship either directly when there are specific age-based practices, or indirectly when length of service is involved. It ranges over recruitment, promotion, pay, employment conditions, dismissal, retirement, and occupational pensions. We believe that the policies reflected in the draft Employment Equality (Age) Regulations ensure that individuals benefit from important new rights and opportunities, whilst allowing business to operate productively but fairly.

In December 2004 we announced how we would be implementing the legislation in relation to retirement ages. For many businesses this will require a considerable adjustment. Those that set their retirement age below the default age of 65 will have to justify it or change it. We announced also that employers would have a new duty to consider requests from employees to continue working longer. We are confident that this will have the same success as the existing right that parents have to request flexible working, and that it will further change the retirement culture in this country.

Retirement should not come as an unexpected surprise. The new duty to consider procedure, therefore, will include new requirements to facilitate planned retirement. Employers will be required to notify employees—at least six months in advance and in writing—of the intended date of retirement and that they can ask to work beyond it. This will avoid uncertainty over retirement and ensure that employees can consider their options in advance, allowing them to plan properly for what is a significant change in their lives.

However, growing numbers of firms are already successfully planning their work force without fixed retirement ages, and in the longer term the Government's aim is to move to a position where business does not need to rely on a default retirement age. In 2011 we will review whether the justification for having a default age of 65 still stands. As we said when we announced the retirement age decision last year, failing to provide for a default age could have adverse effects on occupational pensions and other benefits, and many businesses need it for work force planning purposes. We made it clear that the review will be firmly grounded in evidence. It will look at, among other things, the evidence on longevity, and employment patterns of older workers. If the evidence shows that we no longer need the default retirement age we will abolish it.

We will also extend employment rights by removing the current upper age limit for unfair dismissal and redundancy rights. This means that older workers will get the same rights to claim unfair dismissal or to receive a redundancy payment as younger workers. However, retirement will not constitute unfair dismissal if it is on or after 65 (or a lower retirement age, if justified) and the employer has followed the duty to consider procedure. We will also be taking steps to gauge stakeholder opinion on changes to the method of calculation of statutory redundancy payments.

Many rules in occupational pension schemes are age-based and necessary for their proper operation. The regulations will effectively exempt most age-related rules. Scheme managers will be able to retain age-related rules for which we have not made specific provision, provided they can objectively justify them. The aim is to ensure that age discrimination legislation does not undermine the provision of occupational pensions, or interfere unduly with their normal operation, whilst at the same time ensuring that unjustified age-related practices do not continue.

Length of service is often used as a criterion for pay, and for non-pay benefits. This could amount to indirect discrimination if some age groups were more likely to have the necessary length of service than others. Such an approach to pay and other benefits is used widely to motivate staff, reward loyalty, and recognise experience. In those circumstances, therefore, such benefits are likely to be objectively justified. Our aim is, as far as possible, to ensure their continuation, while making plainly unjustified practices open to challenge. The regulations, therefore, provide for exemptions as far as possible—with a specific exemption for length of service requirements of five years or less, and a general provision for longer periods. Length of service requirements that mirror similar requirements in statutory schemes will also be allowed—for example, a contractual redundancy scheme based on length of service but with more generous entitlement than required by law.

An age-based approach in respect of other employment practices will be lawful only if the employer can satisfy the stiff test of objective justification. Decisions about recruitment, selection and promotion, for example, should normally be based on candidates' skills and abilities, but there might be exceptional circumstances when an employer can justify age requirements. The legislation will allow for this.

The Coming of Age consultation document that accompanies the draft regulations explains what the regulations will cover, why we have taken the approach that we have, and what the legislation will mean in practice. This will help businesses, providers of vocational training, and individuals to prepare for their new responsibilities and rights.

I have arranged for copies of the consultation paper and other related documents to be placed in the Libraries of both Houses.

On 7 and 8 July, my right hon. Friend the Secretary of State for Work and Pensions hosted a meeting of EU employment and Social Policy Ministers in Belfast, to discuss how member states might raise employment levels and improve social inclusion. The event, which launched our six-month presidency of the Employment, Social Policy, Health and Consumer Affairs (ESPHCA) Council, used a mix of workshops, plenary sessions and visits to promote exchange of ideas and sharing of best practice.

My right hon. Friend stressed how Ministers, in the context of demographic change, had a shared interest in raising employment rates and improving social inclusion. This formed part of the wider debate on how to modernise the European social model. Ministers and the commissioner welcomed the opportunity to share best practice.

Ministers visited one of two sites in socially disadvantaged parts of Belfast: a jobs and benefits centre on the Shankill Road and the Springvale training centre. Ministers learnt about the practical steps the UK was taking to tackle the problems of unemployment and social exclusion. Ministers attended one of three parallel workshops looking at practical measures to raise employment levels and improve social inclusion for a particular target group: young people, older workers and the economically inactive.

In the workshop and plenary discussions there was general agreement on foundations of the European social model and with my right hon. Friend the Prime Minister's view that the social model needed to be modernised. There was also agreement about the importance of Ministers getting together to share best practice and committing to action at the European level.

As is customary, the meeting of Ministers was preceded on 7 July by a meeting between the Council Troika (Ministers from the current and next two presidencies, Austria and Finland), the social partners, the Commission and the European Parliament, which discussed the same theme. I deputised for my right hon. Friend the Secretary of State as chair at those discussions, which also voiced broad support for the Prime Minister's wish to modernise the European social model.

The Industrial Injuries Advisory Council report (Cm 6553) has been published. After careful consideration I have accepted all the recommendations. Amending legislation will be laid before Parliament.

In brief the changes are as follows. In the case of Prescribed Disease D8 primary carcinoma of the lung the following easements are introduced:

Prescribed Disease D8 is extended to include lung cancer where no asbestosis is present but where there is evidence of substantial occupational exposure and the requirement to demonstrate pleural thickening is removed. Where the disease is diagnosed and the occupational criteria are met claims will be paid at 100 per cent. from the outset;

the diagnosis of diffuse pleural thickening for Prescribed Disease D9 is modified to make diagnosis easier.

The report has been placed in the Library, and copies are available to hon. Members from the Vote Office.