The Parliamentary Under-Secretary of State for Schools (Lord Hill of Oareford)
My Lords, like other noble Lords, I congratulate my noble friend Lord Willis of Knaresborough on securing today’s debate and setting out the issues, which he did quite clearly. I know he cares passionately about supporting young people to continue their education, a passion that everyone here today obviously shares. I also congratulate my noble friend Lord Fink on his speech. He said, rather movingly, that he was taught to speak again after he had a brain tumour. We are all extremely glad that the noble Lord was taught to speak again and we hope that we hear him speak again on many occasions in your Lordships' House.
I shall try to respond to the main themes raised today. There were some specific questions which, if I may, I shall follow up if I do not respond to them all in the time that we have. Like the noble Baroness, Lady Hughes of Stretford, I want to start briefly by setting some of this in a broader context.
I start with the question of why 16 to 18 education matters. It matters for the economy because to compete internationally we need a well trained and well educated workforce. It matters financially for the young people concerned because better-qualified people earn more in their working lives. But, above all, it matters educationally because, regardless of any financial benefits, education is a good in itself. It enriches lives and opens the doors of opportunity. For all these reasons, this Government, like the previous one, are committed to reaching full participation in education, training or employment for all young people up to the age of 17 by 2013 and 18 by 2015.
In difficult financial circumstances we have secured funding for 1.6 million places for 16 to 18 year-olds in education or training, which includes 230,000 apprenticeship places, for 2011-12. Total funding for 16 to 18 participation in 2011-12 is over £7.5 billion, which is a record. I recognise that there are concerns, which have been perfectly fairly spelled out by the noble Baroness, Lady Hughes of Stretford, but overall it is important to emphasise that the commitment to full participation and the funding for 1.6 million places as well as the increase in the number of apprenticeship places—and I shall respond to the noble Baroness’s point on the guarantee—are all there. I do not pretend for one moment that this means that there will not be financial challenges for schools and sixth forms—there will be—but at a time when many other budgets are facing heavy cuts, it is a reflection of the priority we attach to 16 to 18 education.
We know we have challenges to overcome. Despite the best efforts of the previous Government, we have a wide gap in attainment between rich and poor. Half of our 16 year-olds fail to secure five decent GCSEs, including English and maths. As Professor Alison Wolf has shown in her recent report on vocational qualifications, too many of them, sadly, do not seem to be respected by employers and colleges.
I agree very much with my noble friend Lady Walmsley that it is important that we listen to employers. I also agree that some of the soft skills that she talked about—employees turning up on time, for example—are as important as some of the academic qualifications if they are going to get on in life. We also know that we have a group of 16 to 18 year-olds who are not in education, employment or training, although I am glad to say that in the last quarter the number of NEETs in that age group fell by 15,000.
What are we doing to raise standards and increase participation? We know that the biggest determinant of whether students stay on is their attainment at 16, and specifically whether they secure good GCSEs in subjects that universities and employers value. Therefore, we have introduced the pupil premium to try to tackle disadvantage from the earliest years and narrow the attainment gap. The funding for that will grow to £2.5 billion by 2014-15. We have announced a new focus on reading at age six; we have increased our emphasis on tackling under-performing schools; we have rolled out our academies programme; and we have introduced the English baccalaureate.
I take the point made by my noble friend Lady Walmsley about the disengaged. That is why we are also seeking to increase the number of studio schools, which I think can play an important part in engaging children who have not been turned on by what goes on in the classroom. By learning some practical skills—for example, how to lay a wall—they also learn about angles and measurements, so there are many benefits there too. We have announced a review of vocational qualifications and more funding for technical academies and UTCs. We have expanded the apprenticeships programme for 16 to 18 year-olds from 116,000 last year to 131,000 in 2010-11 and 133,000 next year. Given that we are dependent on employers to provide those apprenticeship places, we are not able to give a guarantee on their behalf. If employers will not make the places available, we cannot offer such a guarantee. However, I share my noble friend’s commitment to apprenticeships. I also agree with everything that she said about the importance of securing high-quality places, and we will need to work at that.
We have also switched more funding to tackle disadvantage post-16, building on the pupil premium. Therefore, within the overall budget of £7.5 billion that I mentioned, £770 million is being spent on supporting the education of disadvantaged 16 to 18 year-olds. That is £150 million more than would previously have been available to schools and colleges, and it is specifically for the education of the most disadvantaged 16 to 19 year-olds.
Perhaps I may say a few words to try to pick up the questions raised about the end of the education maintenance allowance and its replacement by the 16 to 19 bursary fund. Clearly, we want young people to stay on in education and training and not to be discouraged for financial reasons. The education maintenance allowance was used by the previous Government to provide an incentive for young people to stay on and I recognise that it led to an increase in overall participation. I do not accept the picture painted by my noble friend Lord Willis of Knaresborough and the noble Baroness, Lady Hughes of Stretford, about the research into the impact of the EMA. This was not research conveniently commissioned by the new Government; it was commissioned by the previous Government to be carried out by a number of different research bodies. It seems that it was found that some 10 per cent of those in receipt of the EMA said that they would not have participated without it, yet it was paid to almost 45 per cent of young people at a cost of around £560 million. It is also the case that since it was introduced—and I recognise the argument that it was an incentive payment when it was introduced—we have moved further and further towards compulsory participation post-16. Therefore, the case for an incentive payment is, I think, reduced.
Rather than paying nearly half of all students an incentive to stay in learning when it is becoming compulsory, we argue that we should concentrate our resources on removing the barriers to learning which are faced by the poorest. Therefore, last week we set out our proposals. We have consulted extensively to ensure that we support those most in need, and we are grateful for the work that Mr Simon Hughes has done in helping us to refine our proposals. In response to the question raised by my noble friend Lord Willis of Knaresborough and the noble Lord, Lord Watson of Invergowrie, I can confirm that there is new money from reserves at the Treasury exactly as was described.
As a result of that additional funding and the funding that we have found from within the DfE budget, 12,000 students—those in care, care leavers and those receiving income support—should receive an annual bursary of £1,200 if they stay on in education. That is only slightly more, I accept, than they received under the EMA. Asylum seekers are not caught by the category of entitlement that my noble friend Lady Walmsley raised, but they would be eligible for support through the discretionary fund which schools and colleges would have at their disposal.
We want those most in need who are currently in receipt of the EMA to be protected. All those young people who began courses in 2009-10 and who were given a guarantee by the previous Government that they would receive the EMA will still receive their weekly payments. Young people who started courses in 2010-11 and received the maximum weekly payment of £30 should now receive weekly payments of at least £20 until the end of the next academic year. In addition, those students will be eligible for support from the new post-16 bursary scheme. That can help to cover the costs of travel, food and equipment, particularly for poorer students and those in rural areas where transport is an issue. One hundred and eighty million pounds will be available for that bursary fund.
Reference was made to the £800 figure in relation to those eligible for free school meals. That was intended as an illustrative figure, to demonstrate the amount of the money, rather than saying that those in receipt of free school meals would be eligible for £800.
Baroness Hughes of Stretford
Can I be absolutely clear? The Minister said that money has come from the Treasury reserves as well. Is the £130 for transitional protection coming from the Treasury? In other words, will the £180 million earmarked for the whole scheme be used exclusively for the two purposes of the bursary scheme and a discretionary pot?
Lord Hill of Oareford
Because the figures are complicated and time is short, I am very happy to set out the position as clearly as I can subsequently. The contribution from the Treasury is to help to cover the steady state of the scheme, and the other costs will be found from within the department, but I will clarify that for the noble Baroness.
Schools and colleges will have the freedom to decide on the allocation of the bursary because, as my noble friend Lady Walmsley said, they are best placed to know the specific needs of their students. We are consulting on the scheme. That will take eight weeks. I know how important it is that young people know what is happening, but it is also important that there should be a consultation.
I am grateful to my noble friend Lord Willis for his ambitious and imaginative proposal. It is probably career-limiting for me to respond in detail to his point, but I know that it is a discussion that he will continue to pursue in his terrier-like way.
In these difficult economic times, we are trying to prioritise the reform and investment that we need, particularly for those aged 16 to 18. We want all children to have the chance to benefit from education or training post-16. We believe that our package of measures and reforms, starting with the pupil premium, working through school, increasing the number of apprenticeships, funding post-16—which has increased—and providing a targeted package of support for 16 to 18 year-olds, will help to bring that greater participation about.