The Minister of State, Department for Education (Mr Nick Gibb)
Let me start by congratulating my hon. Friend the Member for Birmingham, Yardley (John Hemming) on getting so much into such a short speech. I know that he has a long-standing commitment to family justice, and it was clear from his speech that he shares the coalition’s commitment to ensuring that children in this country are able to enjoy safe, happy and carefree childhoods—an ambition that is shared across the House, as is our desire to give every child the chance to achieve to the very best of his or her abilities. In responding to my hon. Friend’s excellent speech, I want first to make the point that this Government recognise the importance of keeping families together. The law is clear: children should live with their parents wherever possible and, where necessary, families should be given extra support to help keep them together.
John Hemming
The difficulty is that it does not appear that the law is being followed. Will the Department establish an ombudsman scheme to review individual cases and see why the law is not being followed?
Mr Gibb
I know that my hon. Friend is meeting our hon. Friend the Under-Secretary of State for Education on 12 January, and I am sure that he can raise that with him at that meeting.
In most cases—indeed, the vast majority of cases—the extra support enables children to remain with their families. However, we are equally clear that there has to be balance in the system, so that where a child is suffering or at risk of suffering significant harm, the local authority has a statutory duty to take action to safeguard and promote the child’s welfare. However, it is important to remember that local authorities cannot remove children from their parents’ care—unless it is with the parents’ consent, of course—without first referring the matter to a court. Similarly, local authorities cannot—again, without the parents’ consent—place a child for adoption with prospective adopters without a placement order made by a court. Needless to say, adoption can be a highly emotional time for the child, the parents and those adopting, but we know that outcomes—certainly in educational attainment and health—are as good for children who are adopted as they are for children growing up with their birth parents.
John Hemming
Given that about a quarter of adoptions are disrupted, and the children are returned to care, does my hon. Friend take on board the point that any statistical test of the effect of adoption should include the effect on those for whom it fails?
Mr Gibb
The figures are based on comparing the overall statistics for children in care with those for children who are adopted.
Although we recognise that adoption will be suitable for only a relatively small number of children, it is none the less important that we get things right and help more children who need adoption to find secure and happy homes with adoptive parents. We believe that one of the best ways of achieving that is through more collaborative working with voluntary adoption agencies, so that adoption services are enhanced and families are found for the most difficult-to-place children. We also want to see improvements in adoption practice, particularly in the matching of black and minority ethnic children with prospective adopters. Race should not be a barrier to a successful placement. What matters is a loving and stable family environment. That is why my hon. Friend the Under-Secretary has written to all directors of children’s services and lead members to ask them to do everything possible to increase the number of children appropriately placed for adoption, and to improve the speed with which decisions are made.
John Hemming
The Minister said that adoption is suitable only for a small number of children. The difficulty is that a majority of under-fives in care are adopted.
Mr Gibb
I am not sure whether those statistics are right, but, again my hon. Friend can take that up with the Under-Secretary at his meeting. My hon. Friend the Under-Secretary has set up a ministerial advisory group on adoption, to provide expert advice on a range of practical proposals to remove barriers to adoption and reduce delay, but I understand the concerns that my hon. Friend the Member for Birmingham, Yardley has raised.
Bill Esterson
The Minister made an important point about the involvement of voluntary sector agencies in adoption—indeed, I have been pleased with all his comments on the subject. However, does he accept that it is important to ensure both that proper financial resources are in place for the adoption process and that no short cuts are taken? That is where things can go horribly wrong.
Mr Gibb
Of course financial resources are always important, but the hon. Gentleman must appreciate the financial circumstances in which we find ourselves. That was noticeably lacking both from his speech and those of his hon. Friends.
I understand the concerns of my hon. Friend the Member for Birmingham, Yardley. We need to ask hard questions about child-protection arrangements and court processes. That is why we have the review by Professor Munro, which is looking at safeguarding, front-line practice and transparency. I listened to my hon. Friend’s speech carefully. We are concerned that the number of children in care adopted in the past year has decreased by 4%, to 3,200. The real question that we should be asking is not whether too many children or, indeed, too few are in care, but simply whether the right children are in care. I know that my hon. Friend the Under-Secretary is extremely concerned that, by not understanding that point, we risk undermining the work of the many excellent professionals on whom we rely to keep vulnerable children safe—or, worst of all, that we risk damaging the chances of many children who would greatly benefit from a second chance of a stable family upbringing.
I would like to turn to the points raised by the hon. Members for Liverpool, Wavertree (Luciana Berger), for Sefton Central (Bill Esterson) and for Nottingham South (Lilian Greenwood). The speech by the hon. Member for Nottingham South took the theme of “A Christmas Carol”, and perhaps if the previous Government had learned a little from the accounting techniques of Ebenezer Scrooge, this country might not now have the worst budget deficit of all the G20 countries. I listened carefully to the hon. Members, but not one suggested how we should try to find £0.5 billion of savings from the public sector, let alone the £81 billion for the structural deficit that we have to close.
We face an unprecedented budget deficit, under which we are spending £156 billion a year more than we receive in tax revenue, and a global economic environment in which the sovereign debt of nations running unsustainable deficits is leading to major financial crises for those countries. Those crises are preventing and delaying economic recovery, and we do not want this country to be in that position. Every element of public spending is therefore subject to scrutiny, and programmes that cost £0.5 billion a year cannot be exempt from that scrutiny.
We need to ensure that the young people who need support to continue their education receive it. In the current climate, however, those who need it cannot be regarded as 45% of the whole cohort, and the money needs to be better targeted. That is why we are introducing a different system of student support that will allow schools and colleges to provide help to those young people who genuinely need it in order to stay in education.
The education maintenance allowance has been in existence for about six years, having been rolled out nationally in 2004 following a pilot. In its early years, it was successful in raising participation rates among 16-year-olds from 87% in 2004 to 96% this year. As a consequence, attitudes among 16-year-olds to staying on in education have changed. When the National Foundation for Educational Research questioned recipients of EMA, it found that 90% would have stayed on in education regardless of whether they received the allowance, although the £30 a week received by the majority of EMA recipients is a helpful sum for a young person.
Lilian Greenwood
Does the Minister accept that, even if 88% of young people would have stayed on in education anyway, the EMA encourages better attendance and allows learners to enjoy more study time, because they do not need to take on part-time work? It has therefore been important in improving the success rates for that disadvantaged group.
Barbara Keeley
I made a point earlier about young carers. I fail to see how a discretionary fund can help when young carers are so hidden. College principals and head teachers often do not know when their students are also carers, so how will they know how to target the funding? They will not.
Mr Gibb
The hon. Lady raises a wider issue about young carers. The coalition Government are concerned about young carers generally, not just in sixth forms and in colleges but in schools, and we are identifying those young people to ensure that they have the support and help that they need. When they attend college and seek help, however, the funds should be targeted at those who are in genuine need, including young carers.
In reaching the decision to reform the system, we were concerned that the 10% of recipients who according to the evidence would be put off from staying in education but for the money from the EMA might then drop out of education. We felt that a payment designed as an incentive to participate was no longer the right way to ensure that those facing real financial barriers to participation got the support they needed. So we decided to use a proportion of the £560 million to increase the value of the discretionary learner support fund. Final decisions about the quantum of that fund have still to be taken, but we have spoken of up to three times the current value of the fund, which now stands at £25.4 million.
A fund of that size would, for example, enable 100,000 young people to receive £760 each year, and 100,000 students is about 15% of the number of young people currently receiving EMA, which is more than the 10% about whom we are particularly concerned might not stay on in education. The £760 is more than the average annual EMA of £730 paid in 2009-10, and only slightly less than the £813 paid to 16-year-olds receiving the full £30 per week. We have not yet decided, because we are still consulting on it, how the money will be paid, to whom and for what purposes.
Luciana Berger
Liverpool community college currently pays out £1.7 million in education maintenance allowance to 90% of its students, who are in receipt of the full £30 a week because their household incomes are less than £20,800. In addition, the college disbursed £192,000. If the Minister is saying that he will multiply the current figure by three, that is still only a fraction of what goes to those most deprived households at the moment. How on earth is that going to help those students who desperately need help to get to college, to eat and to pay for the materials that they need to do their courses?
Mr Gibb
By definition, if students at that college constitute the 15% most deprived young people, in terms of their access to income, they will receive more than the amount the hon. Lady says is currently being received by the discretionary learner support fund.
To help schools and colleges to administer the fund, and to ensure that those young people who really need support to enable them to continue their education or training post-16 get access to the new fund, we are working with schools and colleges, and with other key organisations such as the Association of Colleges, Centrepoint, the Sutton Trust, the Association of School and College Leaders, the National Union of Students and the Local Government Association to develop a model approach that schools and colleges can choose to adopt or adapt, to inform them how to distribute the funds, and to whom.
Bill Esterson
The Institute for Fiscal Studies is clear that, even taking into account the deadweight effect of the 12% who might carry on attending without EMA, the costs of the scheme are outweighed by the benefits. I quoted a college principal in my speech, and colleges are clear that they will be unable to work out who would stop attending if EMA were withdrawn. I would therefore be interested to hear from the Minister how the new system is going to work. He says that he is talking to the colleges, but how will he ensure that the new fund reaches the right students?
Mr Gibb
On that last point, the colleges are already experienced in administering the learner support fund. We are simply increasing the value of that fund, and the same college principals and head teachers will be administering it. We are talking about a significantly higher sum, however, and we will allow more discretion in the disbursement of the money, which is why we are talking to the Association of Colleges and others about how to administer it more fairly. Also, 5% of the fund will be available to cover the cost of administration.
The hon. Member for Sefton Central talked about the IFS research, as did other hon. Members. The IFS study says that the cost of the EMA scheme would have been recouped in the long run by helping to raise wage levels as a result of higher staying-on rates. I understand that argument, and I do not disagree with it. However, the IFS, in evaluations carried out with the Centre for Research in Social Policy, has previously said that EMA would increase participation by 4 percentage points, and up to 9 percentage points for young people from the poorest backgrounds. So the IFS’s own findings are consistent with the Department’s findings, and with the NFER’s conclusion that 90% of young people receiving EMA would have continued in education regardless of the payments. For those who really do need help to participate in post-16 education—
Mr Deputy Speaker (Mr Lindsay Hoyle)
The House is well aware that we have tried to keep Ministers to 10 minutes, but we have now drifted over the 15-minute mark. I am sure that the Minister will have taken that on board, as he now comes to the end of his speech .
Mr Gibb
I apologise to my hon. Friend the Member for Wellingborough (Mr Bone) and to the House. I have probably taken too many interventions. I just want to cover one more point before I finish, and that is the point raised by the hon. Member for Liverpool, Wavertree about transport.
Local authorities have a statutory duty to ensure that no young person in their area is prevented from attending education post-16 because of a lack of transport, or support for it. If that duty is not being met, young people and families need to raise it with the local authority. Young people were never expected to use a significant proportion of their EMA to cover transport costs. Under the current arrangements for discretionary support funding, it cannot be used routinely for transport to and from college because local authorities have that statutory duty. However, we will consider introducing flexibility to that restriction as we develop the arrangements for enhanced discretionary learner support funding.
In today’s economic climate, we have a particular duty to ensure that we continue to invest where investment is needed and to obtain the best possible value for taxpayers’ money. In those circumstances, it is difficult to justify spending over £560 million a year on an allowance when 90% of its recipients would have stayed in education without it. That is why we have thought again about the most effective way of helping the most vulnerable young people to stay in education.
I wish all Members, and officials from the Department, a very good Christmas and a successful new year.