Monday 9th January 2017
(7 years, 10 months ago)
Commons ChamberTechnical and Further Education Act 2017 View all Technical and Further Education Act 2017 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 9 January 2017 - (9 Jan 2017)
20:10 - The House divided: - Ayes: 186 / Noes: 274 - Question accordingly negatived.
20:59 - The House divided: - Ayes: 183 / Noes: 278 - Question accordingly negatived.
Gordon Marsden (Blackpool South) (Lab)
I beg to move, That the clause be read a Second time.
Mr Speaker
With this it will be convenient to discuss the following:
New clause 2—Representative panels—
‘(1) The Institute for Apprenticeships and Technical Education shall establish—
(a) a panel of persons undertaking approved English apprenticeships; and
(b) a panel of persons undertaking study towards approved technical education qualifications.
(2) A panel under subsection (1)(a) shall be established by 1 April 2017 and shall advise the Board of the Institute on all matters concerning approved English apprenticeships.
(3) A panel under subsection (1)(b) shall be established by 1 April 2018 and shall advise the Board of the Institute on all matters concerning technical education qualifications.’
This new clause would establish representative panels of apprentices and of learners in technical education who are not doing apprenticeships.
New clause 4—Careers education: duty to publish strategy—
‘(1) The Secretary of State shall publish a strategy for the purposes of improving careers education for persons receiving education or training—
(a) in the course of an approved English apprenticeship;
(b) for the purposes of an approved technical education qualification; or
(c) for the purposes of approved steps towards occupational competence.
(2) The strategy shall be laid before Parliament.
(3) The strategy shall specify provisions under which the Secretary of State will seek to—
(a) ensure that persons receiving education or training under subsection (1) receive information, advice and guidance relating to their future careers, and that such information, advice and guidance is delivered in a way which meets each person’s needs and is impartial;
(b) ensure that such information, advice and guidance may be taken into account by relevant authorities and partners to meet the needs of local or combined authority areas;
(c) ensure parity of esteem between technical, further and higher education; and
(d) monitor the outcomes of such information, advice and guidance for recipients.
(4) The provisions specified in subsection (3) shall have specific regard to particular needs of different groups of persons receiving education or training under subsection (1), including—
(a) persons with special educational needs;
(b) care leavers;
(c) persons of different ethnicities;
(d) carers, carers of children, or young carers, as defined by the Care Act 2014; and
(e) persons who have other particular needs that may be determined by the Secretary of State.
(5) The strategy shall include guidance for the purposes of improving careers education, to which the following bodies shall have regard—
(a) the Office for Standards in Education, Children‘s Services and Skills;
(b) the Institute for Apprenticeships and Technical Education; and
(c) the Office for Students.
(6) The Secretary of State shall by regulations designate relevant authorities and partners for the purposes of subsection (3)(b).
(7) The Secretary of State may by regulations designate—
(a) further groups of persons under subsection (4)(e); and
(b) further national authorities or bodies under subsection (5).
(8) Regulations made under this section—
(a) shall be made by statutory instrument; and
(b) may not be made unless a draft has been laid before and approved by a resolution of each House of Parliament.
(9) For the purposes of this section, “careers education” means education about different careers and occupations and potential courses or qualifications to attain those careers and occupations.’
This new clause would establish a statutory requirement for the Government to produce a strategy on careers education, which shall be taken to be the “Careers Strategy”.
Amendment 4, in schedule 1, page 21, line 13, at end insert—
‘(4) The Institute for Apprenticeships and Technical Education in performing its functions must have regard to the need to promote equality of opportunity in connection with access to, and participation in, education or training provided in a form specified in subsection (6).’
This amendment would ensure that the Institute for Apprenticeships and Technical Education must have due regard for widening access and participation.
Amendment 5, page 21, line 13, at end insert—
‘(4) The Institute for Apprenticeships and Technical Education in performing its functions must co-operate with the Apprenticeship Delivery Board on progression into, and delivery of, apprenticeships.’
This amendment would ensure that the Institute has a duty to co-operate with the Apprenticeship Delivery Board.
Amendment 6, page 21, line 13, at end insert—
‘2A After section ZA2 (general duties) insert—
“ZA2A Expenditure by the Institute
In the discharge of its duties and functions under this Chapter, the Institute shall in any one year expend a sum no less than the sum projected to be raised under the Apprenticeship Levy in that year.”’
Amendment 7, page 22, line 2, after “to” insert “state-funded”.
Amendment 8, page 22, line 23, at end insert—
‘(1A) In making determinations under subsection (1)(a) on occupations relating to apprenticeships, the Institute shall attach particular importance to the needs of apprentices aged between 16 and 24.’.
This amendment would ensure the mapping of occupation groups has particular regard for people aged 16-24 taking apprenticeships.
Amendment 9, page 23, line 2, at end insert—
‘(2A) Outcomes under subsection (2)(b) shall include recognised technical qualifications.’.
This amendment would ensure that all apprenticeship standards include a recognised technical qualification.
Amendment 10, page 28, line 6, leave out “course document” and insert
“standard or technical assessment design specification”.
Amendment 11, page 28, line 9, leave out “another person” and insert “other persons”.
Amendment 12, page 28, line 10, leave out “another person” and insert “other persons”.
Amendment 13, page 28, line 12, leave out section A2IA(4).
Amendment 14, page 28, line 17, after “education” insert “route”.
Amendment 15, page 28, line 28, after “education” insert “route”.
Amendment 17, page 28, line 30, leave out section A3A(2)(c).
Amendment 16, page 28, line 32, after “education” insert “route”.
Amendment 18, page 28, line 39, after “Ofsted” insert “, the QAA”.
Amendment 19, page 29, line 1, after “Ofsted” insert “, the QAA”.
Amendment 20, page 29, line 3, after “England,” insert
“including those offered by Higher Education Institutions,”.
Amendment 21, page 29, line 13, at end insert—
‘“QAA” means the Quality Assurance Agency for Higher Education.’
Amendments 18, 19, 20 and 21 would ensure that the QAA would be included in the list of organisations required to share information and that degree apprenticeships were fully covered by this requirement.
Gordon Marsden
Mr Speaker, may I, on behalf of everybody in the Chamber, wish you, the Deputy Speakers—one of them is taking your place as I speak—and all your officials a very happy new year, and the same to all Members of the House?
The issue we are pursuing this evening is whether this will be a happier new year for apprentices and the new Institute for Apprenticeships and Technical Education. The Government will know that the Opposition have been broadly supportive of the process that they are bringing forward, although it was somewhat forced upon them when their original mechanism, which was to get many of these things through in the academies Bill, was shipwrecked—the academies Bill mark 2 proved to be no more popular with some of their Back Benchers than the academies Bill mark 1. We therefore got a fairly rapid notice of the Technical and Further Education Bill before Christmas.
Having said that, we had a good Committee stage and I want to pay tribute to the Minister for his conviviality and the constructive way in which he responded to us. Of course, as the old saying goes, fine words butter no parsnips, but I hope that by the end of this evening we will have at least a few parsnips buttered.
Kelvin Hopkins (Luton North) (Lab)
My hon. Friend and I, and indeed other Members, tabled a number of amendments in Committee that the Government do not appear to have taken on board. They were not pressed at the time, but we had hoped that the Government would bring some of them forward as their own amendments. Is he somewhat disappointed by that?
Gordon Marsden
I am always slightly disappointed when intimations of progress in Committee are not met with specifics on Report. Of course, the Government have the opportunity this evening, in commenting on our amendments, to do something about it, and indeed to accept some of them in principle. If they think that the amendments are defective but the basic principle is fine, they should take them on board.
David Rutley (Macclesfield) (Con)
I know the hon. Gentleman feels passionately about the subject, but does he not also agree with the fact that the Government have an overarching approach to careers advice, notwithstanding the Careers & Enterprise Company? It could be difficult to put arrangements that only apply to technical education into this Bill when there is a much broader issue at stake that the Government are tackling at a strategic level.
Gordon Marsden
I hear what the hon. Gentleman is saying. It is true, of course—but this is outwith the discussion that we are able to have this evening—that careers advice and education in this Bill does not start at 16 or at the remit of the DFE. It starts much earlier. If the hon. Gentleman is saying that that is an argument for doing nothing within the limited scope of the Bill, I do not agree. We need to do something. I would like to see the overarching structures that he mentioned but, unfortunately, at the moment I would be quite happy to see a limited overarching structure for the area that we are discussing. The challenge for the Minister is to talk about the £90 million that the Government have allocated to the Careers & Enterprise Company over the course of this Parliament, how it will be spent, how it is being distributed and whether it is adequate.
There are some damning statistics in the report produced by the Institute for Apprenticeships under the aegis of Semta. As the Minister knows, the proportion of respondents saying that their careers advice and guidance was poor or very poor has remained high across all sectors in all surveys from 2014 to 2016. The report says:
“Worryingly, this year 94 survey respondents, 6% of the total, said they had not received any careers IAG at all.”
When we discussed the matter in Committee, those were the sorts of statistics that were available to us. I said—perfectly fairly, I thought—that, although the Careers & Enterprise Company was beginning to make progress, I did not believe that it was yet able to do the necessary coverage because it is heavily reliant on volunteers. Early in December, we learnt that the company does not cater to every college in the country, including the whole of London. There are not just a few cold spots, but whole cold areas. There is a postcode lottery for FE coverage, with 15 local enterprise partnerships not covered and London completely absent.
The chief executive of the CEC, Claudia Harris, confirmed that the company did not work with any of the capital’s 44 FE and sixth-form colleges. During an interview with FE Week, she blamed the lack of coverage on “ramp-up”—I think that is what lesser mortals would call the rolling out of pilots, but I await a definition from the Minister. Now, I am not laying the blame at the door of the Careers & Enterprise Company; the Government are expecting it to do too much with too little, and they should probably also think again about having a company that is so heavily reliant on volunteers to carry out these tasks.
Rob Marris
I apologise somewhat for interrupting my hon. Friend’s magnificent speech. Part of the problem with the apprenticeship levy is that the Government are all over the place on it. I talked to a major supermarket chain that has employees in Scotland and whose payroll is of sufficient magnitude that it will have to pay the apprenticeship levy, but because of devolution there is no guarantee that, in Scotland, its apprenticeship levy funding will in fact be used for apprenticeships. That may be the case in Wales and Northern Ireland as well—I know not. This may go some way towards explaining the gap that my hon. Friend has put his finger on very acutely about where the money is going. The reason is that it is matter for the Treasury, which has not yet got to grips with devolution.
Gordon Marsden
My hon. Friend, as usual, makes a very interesting and succinct point. If I were not constrained by talking about this amendment, we could have some very interesting conversations about how the devolution situation is panning out, but I need to stick to my last.
The other point that is germane to this amendment is the coming Budget. We now know that the Budget will be in the first week of March, so issues about what the rate and the threshold of the apprenticeship levy might be after its first year obviously come to mind. The former Chief Secretary to the Treasury, after much prompting and questioning during the previous Administration of David Cameron, said that
“the government will keep the apprenticeship levy under review.”
So, as we all know, it could go up and of course, theoretically, go down. The level at which it is set, and how much companies get back from it, will be crucial in deciding whether it is a success or a flop. Given that it is only eight weeks until Budget day, what conversations has the Minister had with the Treasury to make sure that it gets the balance right? The more we hear—I said this in May and say it again today—about how the levy will now need to fund the top-up, the devolved Administrations, English and maths at level 2, disadvantaged learners, incentive payments and non-levy payers, the more it seems inevitable that the Government will end up increasing it.
Rob Marris
I am a little bemused by this amendment, although I think I understand it. It seems to me that it would be desirable, certainly within England, if not within the United Kingdom, to have a national framework of standards such that the framework should not simply apply to qualifications that were obtained through a state-funded institution but be spread more broadly. Perhaps my hon. Friend could say a little more about his approach.
Gordon Marsden
My hon. Friend is right to raise the issue of a national framework. Various research reports over many years indicate that the privately funded training market has been exceeding the publicly funded one by considerable amounts, and that includes specialist management training, IT vendor qualifications, and project and programme management. The Government may need to look a bit more carefully at how this process is going to move forward. I absolutely agree about the need to have an overarching national framework, which we do not currently have.
Amendment 8 would ensure that the mapping of occupation groups had particular regard to people aged 16 to 24. This is crucial, because many apprenticeship training providers are reporting that, under the new levy system, employers are deciding to choose apprentices aged over 19 rather than 16 to 18-year-olds, particularly with regard to the new standards. Employers say that there is very little incentive left for them to take on younger learners, especially in the higher funding bands where a £1,000 employer incentive is a small fraction of the overall funding available. As the Minister will know, the Association of Employment and Learning Providers, which has, up until now, predominantly delivered apprenticeships to 16 to 18-year-olds, is seeing the majority of its business switch from this age group to older individuals.
If one looks at Lord Sainsbury’s comments and the skills plan commentary in relation to the changes in funding giving parity to older learners, one can see that the majority of apprentices in this age band are already 18, with little effort to change that through careers support. Perhaps that is the Government’s plan. If so, the Government need to be honest and to tell us that; if not, something needs to change as otherwise we are in danger of ending up with fewer apprenticeship opportunities for 16 to 18-year-olds.
I want to quote to the Minister some recent remarks of JTL, a training provider. About the new system, it says:
“Our employers say that under the new system when the traditional age differentials in funding rates are removed, they would sooner employ young people aged 19 and over. Some 16- and 17-year-olds aren’t allowed on site due to health and safety rules, and many of them have yet to pass their driving test, but the present funding makes it still worthwhile to take them on. Remove the incentive and employers will switch back to recruiting older apprentices.”
It went on to say—I hope the Minister will give this point careful thought, given the emphasis on STEM—that the
“so-called £1,000 incentive for employers to recruit 16- to 18-year-olds simply doesn’t work for STEM sectors. Our level three apprenticeships typically last four years, meaning the incentive equates to a mere £5 per week, which is of no interest to employers given the additional challenges of younger employees.”
That is a timely new year reminder to the Minister that the concessions he made after the Save Our Apprenticeships campaign, with which our party was very pleased to be involved—as he knows, the campaign involved a very broad range of people, whom he met and to whom promised changes—have not solved the problem. The concessions applied a temporary sticking plaster to the problem, and it remains to be seen how long it will stick. Coming on top of the continued lack of certainties about the new structures for apprenticeships and the delayed consultation, there must be concern about the fragility of the Government’s performance in the 16-to-18 area. In FE sectors, such as mine in Blackpool, we desperately need to get such young people skilled apprenticeships, which means looking for them now.
As I am sure the Minister knows, the AELP has raised the issue that a framework of only 15 routes across technical education might create an elitist system of education that denies many young people a work-based route to level 2 or 3. We remain concerned about that, given that so many young people in the service sector are not likely to be automatically covered. I know that there have been conversations saying that this is not really about apprenticeships, but about technical education. Whether it is about apprenticeships or technical education, however, young people in Blackpool and everywhere else need good training, whether from the service sector or the manufacturing sector. I would have thought that focusing on that would make a major contribution to this Government’s social justice agenda and even, arguably, to anticipating the impact of Brexit if controls on migrant labour are introduced. It is important to have a skills strategy that is inclusive, and this is a perfect opportunity to create such a coherent, inclusive strategy that covers a wide range of different abilities and aptitudes and that strives for excellence. That is what amendment 8 intends to do.
I want to talk briefly to amendment 9, which is about all apprenticeship standards needing to include a recognised technical qualification. As the Minister will know, it is not only we who have been concerned about this; a range of organisations—most recently, AELP—has been concerned about the omission of qualifications from some of the new standards. The investment in time and resource is leading to employer fatigue in some areas, and there is a lack of engagement. According to AELP, just under 50% of the current standards released still do not include a mandatory qualification. One alternative solution is our proposed amendment, which would make the whole apprenticeship, rather than simply its components, into a recognised qualification.
I want to move on to amendment 10, which I will group with amendments 11 to 16 and, indeed, amendments 18 to 21. Amendment 10 is about the need to change the title of “course document” to
“standard or technical assessment design specification”.
That would ensure that copyright was acquired only at a level equivalent to apprenticeships. It is argued that underpinning occupational standards and technical assessment design specifications that are the equivalent of assessment plans is all that is needed for Crown copyright. City and Guilds has specifically raised with us the issue of the imposition of acquired copyright in evidence, as have other groups.
We have tabled the amendments because there is concern that imposing acquired copyright is one of the most significant risks to the future vitality of the technical education market in the UK. I accept that this is a complex and technical area, but the Minister needs to look at it carefully. It is not simply a question of existing providers wanting to set in stone a form of protectionism; it is about intellectual property, and where intellectual property starts and ends. The concern of many providers is that there has been a degree of mission creep in that respect in the way in which the Bill has been drafted. From a pragmatic point of view, I must say that if the broader definition of what the institute has to do on copyright remains in the Bill, even more resources may be required to police it, and I have already mentioned that there is a lack of such support. We need to look at these important issues.
The concern that each technical level will have only one awarding organisation has been raised by both the Centre for the Study of Market Reform of Education and NCFE. NCFE has said that, as currently set out, with some of the technical levels going to only one awarding organisation, having one would be unfortunate, but—to misquote Oscar Wilde—to have two might be beneficial. That would provide competition and enable providers to switch quickly in the event of problems, without the multiplication issues that have caused problems and difficulties elsewhere. NCFE has said, more in sorrow than in anger, that the
“current proposals do not seem to recognise the great expertise in designing and assessing Technical and Professional Education qualifications that already exists within Awarding Organisations.”
Our amendments 11 to 16 are consequential on amendment 9. Under an exclusive licensing model, the licence holder for a particular qualification may assume a quasi-monopoly position for the duration of the contracts. That is one of the reasons why the proposals are designed to move away from that principle. It seems to us that the principle should be that there needs to be a rationalisation of the operations of awarding organisations, but not necessarily to the point of having single operators on a licence, given the monopoly and single point of failure issues alongside all the intellectual property rights and Crown copyright ones. I repeat to the Minister that this is a complicated area and I appreciate that it is not easy to get the balance right, but I urge him to think very carefully about some of the representations that have been made and, if he is not able to do anything about them tonight, to at least bring forward solutions in the other place.
The final area on which I want to comment briefly—I have talked about routes and all the rest—is the Quality Assurance Agency for Higher Education. Amendments 18 to 21 would ensure that the QAA was included in the list of organisations required to share information, and that degree apprenticeships were fully covered by such a requirement. Ofsted should have the authority to inspect every apprenticeship. We welcome the growth in degree apprenticeships and expect many more under the levy, but some are not genuinely work-based learning and are a rebranding of more vocationally biased degrees. Stricter monitoring is therefore needed. We argue that the involvement of the QAA is very important in this respect. It is vital that apprenticeships are just that: proper apprenticeships, with which Ofsted and Ofqual need to be well and properly engaged.
I am aware that the Opposition amendments have had to be discussed in considerable detail and some are technical, but the broad thrust of what we are trying to do is: first, to ask the Government to act on their commitments in Committee; and, secondly, to go further than that and make the rhetoric around social mobility and widening participation a reality. The only way to do that is to improve the Bill with the amendments we have tabled this evening.
The Minister for Apprenticeships and Skills (Robert Halfon)
I think this is the first time that a lapel microphone has been used in this way—I appreciate that. I wish the House, and the many apprentices who worked over Christmas and the new year, a very happy new year. I thank you, Madam Deputy Speaker, for chairing the debate. I am grateful to the hon. Member for Blackpool South (Gordon Marsden) for his amendments—as ever, very thoughtful.
I will start by discussing new clause 1, but I just want to make the point that the hon. Gentleman talked about the completion of apprenticeships. Some 70% of apprentices complete and 90% get either employment or further training. We have nearly 900,000 apprentices, an all-time high and a record in our nation’s history, so we are making good progress. He talked about NEETs. He will know that between 2014 and 2015 the proportion of 16 to 18-year-olds in education or work-based learning increased to 90%, which is the highest on record. The percentage of NEETs fell to 6.5%, the lowest rate since records began. He talked about the Institute for Apprenticeships and Technical Education appointments and went on, yet again, about Christmas. I have to say that IFATE is not just for Christmas, it is for life and we want to get it right. We want to ensure that the appointments we make are the right ones and are not made in haste. He sometimes says that we are doing things too quickly and at other times he says that we are doing things too slowly.
On new clause 1, as I explained in Committee, the institute will be required to report on its activities annually under schedule 4 to the Enterprise Act 2016, and the report must be placed before Parliament. That provision will also allow the Secretary of State to ask the institute to report on anything else she thinks appropriate, such as the information requested in the amendment. We think it would be an unnecessary and significant duplication of effort, as the information is already collected and published by the Secretary of State on the performance of the FE sector, which includes apprentices—I gave the hon. Gentleman some of the figures only a moment ago.
Much of that information goes far beyond the role of the institute. The institute’s core role from April 2017 is to oversee and quality assure the development of standards and assessment plans for use in delivering apprenticeships. Under the reforms in the Bill, college-based technical education cannot be held wholly responsible for, for example, job outcomes and wage rates of apprentices once they complete their apprenticeships. It is essential that the institute is aware of the impact it is making. We would expect it to make good use of the data on the outcomes made available to it through these public data sources and surveys, and to explain in its annual report how it has deployed them.
Rob Marris
I am grateful to the Minister for the work he does. He is very committed—whenever I see him he is wearing an “A” on his lapel to show his support for apprenticeships. Will he clarify one point in relation to new clause 1(2)(e), which would include in the report the satisfaction rates of employers? He will be aware that there is some concern that to reach the 3 million target there will be dilution. I am not saying there will be, but that there is concern that there might be. Is the satisfaction rate of employers currently collected —not for every employer, but through sampling—and published? If it is not, it would be very important for it to be published, so that the concerns about a dilution of standards could be somewhat allayed.
Robert Halfon
I thank the hon. Gentleman for his kind comments. It is published. I think, if I am not mistaken, employer satisfaction is near 90%; it might be 88% or 85% or something like that. I am very happy to provide him with the information if he so requires.
I agree with the hon. Member for Blackpool South that the institute needs to consider the views of those who take an apprenticeship or a course in technical education. I am confident that it will do that. He will know—he pointed it out—that last week we published draft strategic guidance for the institute. In this document, which is now open for consultation, we set out that we expect the institute to establish an apprentice panel that will report directly to the board. I am pleased to say to the hon. Gentleman that it will be ready by April 2017, but the wider point is that we should not rush things. We need to get it right. The apprentice panel will be made up of apprentices from different occupations and experience. The panel will decide for itself which issues to focus on, and will challenge and make recommendations to the board. I am sure it will be a success. It will ensure that the views of apprentices are fed directly into the institute’s governance. It might not be exactly the right model in practice. I want to see how it works. I believe that the institute, particularly in its infancy, should have the flexibility and the freedom to decide the best way of gathering the views of an apprenticeship on an ongoing basis. Whatever model it adopts, I would expect the institute to do something similar for technical education students when it takes on this responsibility, but I want to see how the apprentice panel pans out.
Gordon Marsden
I thank the Minister for giving way with his customary courtesy. I just want to be absolutely clear about the implications of the wording of the document. Is he giving an assurance on the Floor of the House that the panel will be set up by April, that he will review the panel’s progress and whether it has the right form and structure, and that if he thinks it does not have the right form or structure he will replace it with something equally valuable in representing the views of apprenticeships to the board of the institute?
Robert Halfon
I am pleased to give the hon. Gentleman that guarantee. The panel will be set up by April. I believe it would be pointless to have an Institute for Apprenticeships and Technical Education without proper apprentice representation, but I want to see what the best format is. I am sure it will work and be a success, but I just want, as I said, to see how it pans out. We expect the institute then to do something similar for technical education students.
I agree with the motivation behind the amendment, but I am concerned about enshrining the establishment of panels in legislation. I do not want to put the institute in a constant straitjacket of legislative red tape that reflects every good idea there may be on how best to fulfil its responsibilities. I therefore think the amendment is unnecessary and would undermine the institute’s power to regulate its own governance and perform its duty.
On new clause 4, the hon. Member for Batley and Spen (Tracy Brabin) made a remarkable speech in Committee on a careers strategy. She cares passionately about this, as I do, but I think we do have meat on the bones. It is not just words. The hon. Member for Blackpool South talked about budgets. We are spending £90 million, which includes the work of the Careers & Enterprise Company. A separate £77 million is being spent on National Careers Service guidance just this year. I am going further. I am looking at a careers strategy from the beginning to ensure that we address our skills needs, and to look at how we can help the most disadvantaged. I am looking at how we can ensure widespread and quality provision, and how that leads to jobs and security. I will set out my plans on careers over the coming weeks.
On the investment in the Careers & Enterprise Company, the hon. Gentleman seemed to suggest that there was no activity in London. I have been to a school in east London supported by the Careers & Enterprise Company and the local enterprise partnership. It is doing remarkable work. Some 1,300 advisers are connecting schools and colleges. They are slowly creating a way to connect with 250,000 students in 75% of the cold spots around the country. There is also money for mentoring. He talked about a famine. I would not say there is a feast, but substantive and serious funds are going in. I could spend a lot of time listing the different moneys, but if he looks at this carefully and fairly, he will see the work that the Careers & Enterprise Company is doing.
We will monitor carefully the impact of our work. In January 2017, destination data will be included in national performance tables for the first time, ensuring an even sharper focus on the success of schools and colleges in supporting their students. Before my time, we legislated to ensure that schools gave independent careers advice on skills and apprenticeships—that was done by my predecessor. Work is being done in schools. I welcome the hon. Gentleman’s thoughtfulness in proposing the new clause, but it is my view that it is not necessary because of the action we are taking, the careers plans I am developing and the money that is being spent, which I have highlighted.
As the hon. Gentleman said, amendment 4 would require the institute to have regard to the need to promote equality of opportunity. I welcome the opportunity to debate that. I know why he tabled the amendment and why it is important. It is crucial to widen access and participation, and to ensure that apprenticeships and technical education are accessible to all, which is why I was glad that, for this year, we have our £60 million fund to help to encourage apprenticeships in the most deprived areas of our country.
I reassure the House that the Institute for Apprenticeships and Technical Education will have to have due regard to widening access and participation. We carried out an equalities impact assessment before publishing the post-16 skills plan, which concluded that the reforms are likely to have a positive impact on individuals with protected characteristics, in particular those with special educational needs or disability, those with prior attainment and those who are economically disadvantaged. The economic assessment concluded that all learners would benefit from the proposed technical education reforms, which will give people access to high-quality technical education courses.
I believe that the need to promote equality of opportunity in connection with access to and participation in further and technical education already exists in legislation under sections 149 and 150 of the Equality Act 2010. It is expressly set out in section ZA2 of the Apprenticeships, Skills, Children and Learning Act 2009 that the institute must have regard to
“the reasonable requirements of persons who may wish to undertake education and training within”
its “remit”. The Secretary of State has the power to provide the institute with further guidance under that section. I hope that that explanation gives the hon. Gentleman confidence. I am committed to ensuring that people of all backgrounds have equal opportunities. As he will know, over Christmas we removed the need for apprentices who have serious hearing difficulties to do functional English—they can do sign language instead. That is an example my commitment, as is the extra funding we are giving to employers and providers to get more apprentices who are disabled.
Mims Davies (Eastleigh) (Con)
Will the Minister confirm that bringing together oversight of apprenticeships and technical education in one place will bring coherence into the system, which will ensure and protect diversity and equal opportunity because there will be clearer guidance on all opportunities for career progression?
Robert Halfon
My hon. Friend, who campaigns a lot on diversity and equality, is absolutely right. The proposal will benefit the people who need it most. Many people from disadvantaged backgrounds and with disabilities are prominent in further and technical education.
Amendment 5 addresses the Apprenticeship Delivery Board. The hon. Member for Blackpool South was a little unkind about the board. The board’s representatives include the chief executive of Channel 4, the Compass Group, the City of London, Barclays bank, Sunmart Ltd, Fujitsu, Wates construction, the Ministry of Defence and a significant retail sector member. As he said, there are three women on the board. They are doing important work. They advise the Government and work with businesses to encourage them to have apprentices. As far as I am aware, those people are not being paid. They do not have to do it; they do it because they want to serve our country. They have helped the Apprentice Ambassador Network. The chair, David Meller, is doing important work on that and running the board. I pay tribute to the board. I mean this kindly, but I would not be obsessed with whether or not the Prime Minister has an apprenticeship adviser. As far as I am concerned, the Prime Minister’s advisers are the Minister for Apprenticeships and Skills, which is me, and my boss the Secretary of State. A new adviser for the Prime Minister will not change the course of history for apprentices in our country.
Rob Marris
Most of us would see the Minister as a journeyman or time-served Minister rather than as the Minister for Apprenticeships and Skills. He will forgive me for not researching this earlier, but I did not notice in the list he read out any trade union representation. Unusually for Conservative Members, he is an active trade unionist—or he was. Does he agree that it would be desirable to have trade union representation on that board to get buy-in from the workforce side?
Robert Halfon
The hon. Gentleman will be pleased to know that I am still a trade unionist. That is a good idea. The board is independent, but I will suggest it. I am very impressed and supportive of the work that Unionlearn does, which is why we have agreed to fund it by £12 million. It works to promote training and apprenticeships.
The institute will consult the Apprenticeship Delivery Board and other bodies but, as I have said, we do not need to straitjacket the institute with so much red tape that we stop it from being independent. The delivery board is not intended to have any special legislative standing or corporate identity. It would be unusual to name it in legislation, but the institute will consult the board along with others.
Amendment 6 would require the institute’s expenditure in any one year to exceed that raised by the levy. It is important to clarify that the institute will not have responsibility for the apprenticeship budget, which resides with the Secretary of State for Education. Although the institute is not a funding body, it will be asked to advise on the pricing of apprenticeship standards and allocation to funding bands. The institute’s operations will be funded by my Department and not from the levy funds. It follows that the institute should not be obliged to spend funds raised under the levy.
On devolution, which the hon. Member for Blackpool South mentioned, it will be up to the devolved authorities how they spend the money. If we were to tie the spending explicitly to the levy receipts, there could be adverse funding consequences for the programme as a whole. The budget for spending on apprenticeships in 2019-20 for England and the devolved Administrations totals in excess of £2.9 billion, whereas the projected levy income is £2.8 billion. Having certainty over the funding for apprenticeship training is preferable to linking the funding on a year-by-year basis directly to the wider performance of the economy.
Mims Davies
Eastleigh College, which is the third-largest college providing apprenticeships in England and trains over 9,000 apprentices, is particularly interested in how the funding formula for the institute will work and how that will support its work with communities, so the Minister’s clarity today around the levy, the funding criteria and how it will be delivered is very welcome.
Robert Halfon
I thank my hon. Friend. It is brilliant that her college is providing such training, and I would be pleased to come and see its training programme when I am next in the area. That it is doing this means that it will also be receiving significant funds. I congratulate the college on the work it is doing on apprenticeships.
Amendment 7 would limit the power to confer new functions on the institute to “state funded” apprenticeships and technical education. All the institute’s current functions in part 4 of, and schedule 4 to, the Enterprise Act 2016 and in schedule 1 to the Bill apply to all reformed apprenticeships and technical education qualifications, not just those that are state funded. We would therefore expect that any new functions the institute is required to carry out should also apply in the same way, to ensure that they are fully effective and do not treat some apprenticeships and technical education courses differently in accordance with how they are paid for. We want to ensure that as many people as possible can undertake an apprenticeship or technical education course, and we would not want this to be restricted to those that are state funded purely because the institute’s functions have been limited.
On amendment 8, it is important that the institute considers what apprenticeships might be appropriate for 16 to 24-year-olds. We know that apprenticeships are incredibly important to school leavers and are making sure that anyone from the age of 16 will have an offering of either an academic or technical education or an apprenticeship. The occupational maps that the institute will put together and which will guide apprenticeships and technical education qualifications will be based on information about the skills needs of the country. They will focus on occupations that can help to increase the UK’s productivity and meet the needs of employers. Putting any constraint around the development of the maps and the occupations included, such as by focusing on a particular group of the population, could damage this overall aim.
My Department runs a number of highly successfully promotional and advice services to help to ensure that young people access the right apprenticeship for them. A significant number of 16 to 18-year-olds take up STEM subjects.
Vernon Coaker (Gedling) (Lab)
On STEM subjects and the advice given to young people, successive Governments have tried to effect change, and the Bill, which is well meaning, will make a positive difference in many respects, but is not the real problem the fact that successive Governments have failed to persuade people that the vocational route is as good as the academic route? Is this not a cultural problem that has bedevilled our country for decades?
Robert Halfon
The hon. Gentleman is completely right. When I talk about my priorities for skills and education, one of the first things I mention is transforming the prestige and the culture. As he says, this is regardless of what party is in government, and it is not just about Governments either; businesses have also underinvested. Vocational training has always been seen as a so-called—I hate the term—Cinderella sector. The whole purpose of the Sainsbury reforms and the levy is to change behaviours and give apprenticeships and skills and technical education the prestige they deserve.
Vernon Coaker
The question for the Minister, as it was for me and others here when we were schools Ministers, be we Conservative, Liberal Democrat or Labour, is this: why will it be different this time? The Minister is absolutely right in what he has said, but why will it be different this time from all the times that have gone before?
Robert Halfon
Unlike the hon. Gentleman, I was not around for all the other times that have gone before. We have our differences, of course, but there is much cross-party consensus on the Sainsbury reforms, for example. Moreover, the apprenticeship levy is a fundamental reform to change behaviours—it is not just about raising money; it also changes behaviours. I believe that there is a new national conversation about apprenticeships and that things are changing, but the proof of the pudding will be in the eating. I think we are on the tip of something special, but a lot more work needs to be done.
Because of time, I will speak only briefly on some of the other amendments. On amendment 9, the hon. Member for Blackpool South raised some important points, but we feel that the amendment is unnecessary. The important feature of approved English apprenticeship standards is the move away from a reliance on a series of small and pre-existing qualifications making up an apprenticeship and towards a single end-point assessment. By not mandating qualifications in standards unless they meet one of these criteria, we are ensuring that individual employers have the freedom and flexibility to determine how to train their own apprentices to ensure they gain full competency. It is expected that the institute will continue with this approach.
The provisions on education copyright are very complicated, and I understand why the hon. Gentleman has raised them, but we do not think that the proposed provisions are necessary. Some of the concerns are covered by existing legislation, but we believe that the institute should have the right of copyright, and the bodies working with the institute will know that. We do not agree with the word “route” either because it could be confusing for employers. I want this form of training to be prestigious, and so I want the words “technical education”. I do not like the term “tech levels” either because it dumbs down a very important qualification.
Amendment 17 is on the power to charge for technical education certificates, and I should say that we also have a duty of care to the taxpayer. The institute will not make money out of this provision. It is all about giving it the power to do so if it so chooses and about having a duty of care to the taxpayer. It is for that important reason that we do not support the amendment.
On the Quality Assurance Agency for Higher Education and amendments 18 to 21, the organisations named in the provisions will all have an important role. The omission of the QAA reflects in part the changes being introduced in the Higher Education and Research Bill, which is currently in the other place. Amendment 20, which specifies that the term “apprenticeships” should include those offered by higher education institutions, is not required. I am clear that the term “apprenticeships” includes all apprenticeships offered at all levels, regardless of the training provider.
In conclusion, I thank the hon. Member for Blackpool South for his thoughtful new clauses and amendments on technical education and I thank other hon. Members for their contributions. I hope that my responses have reassured the hon. Gentleman and the House on their underlying concerns. I therefore ask that he withdraw new clause 1 and not press his other amendments.
Rob Marris
If you will allow me a little latitude, Madam Deputy Speaker, I would like to place my remarks on the amendments in context. I was recently speaking to someone who made a very good point about who is fitting all the kitchens and bathrooms in Poland. This person had experienced very good electricians from Romania working in this country. Our conversation was about Brexit and the skills shortage in the United Kingdom. Whichever side of the debate hon. Members supported, Brexit provides our country with an opportunity to try to address the skills shortages that we have had for decades and have relied for filling on importing workers.
Kelvin Hopkins
My hon. Friend is making very thoughtful points. He may be aware that there is now a fairly successful political party in Lithuania that is against emigration, not immigration, for that very reason.
Rob Marris
I am not surprised about that. In the last Parliament but one, I had the joy of visiting Lithuania with what was then the Trade and Industry Committee, and that was the sort of issue we talked about. In those days, Lithuania was already starting to import labour from Moldova—outside the European Union—because so many Lithuanians had come with their skills particularly to the United Kingdom and Ireland to ply their respective trades, and I specifically mean trades.
What my hon. Friend the Member for Blackpool South (Gordon Marsden) has sought to do from the Labour Front Bench is to beef up the Bill in two ways. One is to introduce even greater confidence in the new system that we will have, and part of that confidence building means moving towards national standards. This partly addresses the issue raised by my hon. Friend the Member for Gedling (Vernon Coaker) about parity of esteem. We talked earlier this afternoon about parity between mental and physical health, but in this case, we are talking about parity of esteem between the vocational and the academic.
Having been a semi-skilled worker for a number of years as a professional driver and a bus driver, I faced a fork in the road. Was I going to go down the vocational route—I had my eye on being a plumber—or was I going to go down the academic route with an eye to being a lawyer? I went down the academic route and I became a lawyer. I do not regret that at all. One reason I did so related to esteem or lack thereof, and another reason was that lawyers get to work indoors whereas plumbers sometimes have to work on building sites outdoors—and I do not like the cold. I am talking about quite a while ago, and the money was better in law than it was in plumbing. I am not sure whether that remains the case nowadays.
We live in a capitalist society. Part of what needs to be done to move towards parity of esteem in a cultural sense is the sort of thing that the Minister has attempted to do during his tenure of office and through this Bill; and, frankly, in a capitalist society, part of it is about paying people more. If we want parity of esteem, we should start paying people equal amounts of money—and pay plumbers as much as lawyers. Given that we live under capitalism, we are moving towards that because of skills shortages.
On new clause 1, I quite understand the Minister’s point that some of the information is already published as a result of the Enterprise Act 2016, but I believe that building this into the Bill as my hon. Friend the Member for Blackpool South has proposed, would be helpful for sending out the right message about confidence. It is the same with new clause 2, so that the representative panels can become more representative when they are put in place. I welcome the Minister’s assurance this afternoon that those panels will be in place by April, and I hope they will have a breadth of representation that should, I think, be built into the Bill. I asked the Minister a similar question in a slightly different context about the involvement of trade unions. This is not just a tit-for-tat along the lines of “You have the bosses there, so we have to have the workers there,” although that is important; it more about getting buy-in to the new regime from all sections of our society to build towards addressing the skills shortages that we will face, as I have said, under Brexit.
Under Brexit, there is no mistake about it: the price for staying in the single market would be free movement of labour and people; and the UK population has said that it is not up for that and does not want free movement of people or labour. We will therefore not be in the single market, but we will not have free movement either, because there will be restrictions—whether Members like it or not. We should use these circumstances in a positive way, so that local people can train up for jobs and so that we do not keep poaching skilled people from abroad—whether from Lithuania, as my hon. Friend the Member for Luton North (Kelvin Hopkins) mentioned, or elsewhere. For that, we need national standards.
When it comes to confidence, we need proper advice. Careers advice in England has certainly been, to say the least, patchy over the years. I remember when my Government set up Connexions, which was not exactly a resounding success—certainly not in the west midlands. I urge the Minister to think again about new clause 4, which is all to do with building confidence. That is particularly clear in paragraphs (b) and (d) of new clause 4(3). These highlight the fact that the Secretary of State should seek to
“ensure that such information, advice and guidance may be taken into account by relevant authorities and partners to meet the needs of local or combined authority areas”
and to
“monitor the outcomes of such information, advice and guidance for recipients.”
It is part of confidence building that we have a regime that is sensitive to local labour markets, which will change greatly from April 2019 when we are out of the European Union.
This Bill is part of the Government—surprisingly, given what is not happening in other areas—showing a bit of foresight, on which I congratulate the Minister. If only we had such foresight about Brexit ramifications for other areas of public endeavour; we do not, but this Bill is a step forward and part of that jigsaw. I am not saying that this is why the Minister has sought to introduce the Bill, but I do think we should look on it positively in that way, and I think that new clause 4 would help to build confidence in the new system, by ensuring that it would be reflective and flexible.
In referring to amendment 9 and others that my hon. Friend the Member for Blackpool South said were in a sense under its umbrella—amendments 10 to 16—the Minister talked about employers having freedom and flexibility. Amendment 9 deals with “recognised technical qualifications” and these are connected, certainly for England as I said, with national standards. We need those standards as part of the confidence-building measures, but also to make sure that we get the right people with the right skills—in a sense, workforce planning.
This country is pretty poor at workforce planning. The one area where we could have excellent workforce planning because the number of employees is so enormous and they almost all work for the state is in healthcare delivery, yet it is absolutely appalling. We do not have enough doctors trained here; we do not have enough dentists trained here; we certainly do not have enough nurses trained here; we do not have enough professions allied to medicine—whether radiographers or phlebotomists and so forth—trained here. Yet this is the one area of workforce planning that the Government could get right. I do not mean that only this Government have singularly failed. Under the coalition Government, things went backwards when some nurse training places were shut down. Figures on the number of employees working in the NHS in England alone are so huge that we could take social trends into account and do some pretty good workforce planning on the kind of skills that will be needed in five years or the 10 years that it takes to train a doctor, and so forth.
Arguably, we have been absolute rubbish at this since 1948. Having national standards is important not just for confidence, but for workforce planning. That is why I again urge the Minister to have another think about the import of amendment 9, if not its wording. It is all very well having flexibility and freedom for employers. These were the sort of words that the Minister used—he will correct me if I am wrong—when he explained why he thought amendment 9 was unnecessary and invited my hon. Friend the Member for Blackpool South to withdraw it. In my view, however, the Minister should have another think about that, because I believe that national standards are important. Again, I draw on my own experience. When I qualified as a lawyer, I took a national exam that had to be taken by all those seeking to become solicitors in England and Wales. For most of us, if we passed, that led to what was, in a sense, the equivalent of an apprenticeship. It was called “articles of clerkship”, and it involved two years in a solicitor’s office. What had been a national exam taken by everyone who wished to be a solicitor in England and Wales then became a moderated Law Society final exam. My hon. Friend the Member for Cardiff Central (Jo Stevens) will remind me what it was called. [Hon. Members: “Legal practice course.”] Yes. It became a legal practice course, and standards went down. I say that having talked to people in post-secondary institutions at the time and having trained articled clerks who had experienced the later system when national standards no longer existed.
National standards are not, of course, a guarantee of quality output, but they can be used by any Government, legitimately and properly, to ensure that we have confidence in the system and to ensure that those who undergo an apprenticeship process and emerge from it fully qualified have a qualification that is worth their having as individuals, and worth our society having.
Robert Halfon
Qualifications may be mandatory in an apprenticeship standard if that is a mandatory requirement set by the regulator. They include qualifications that are recognised as a legal requirement—that is, licence to practise—that are required for professional registration, or that are used in a hard sift when apprentices are applying for jobs in the occupation related to the standard and would be disadvantaged in the job market without them.
Rob Marris
I thank the Minister for that clarification. In a sense, he has made my point for me. There will be some national standards in certain fields of endeavour, which he has helpfully specified. However, I think that there is a contradiction in his position, a contradiction from which I do not think I suffer.
Amendment 7, tabled by my hon. Friend the Member for Blackpool South, would insert the words “state-funded”. I found the Minister’s argument persuasive when he explained why he thought that the amendment should not be passed. I may have misunderstood what he said, but he seemed to be saying that he wanted a more overarching model that would encompass privately obtained qualifications. I agree with him. I merely suggest that, if amendment 7 is not accepted, it would be logical to accept something along the lines of amendment 9, which would not limit the requirement to state funding but would provide for national standards, not just in the broad but restricted field defined by what the Minister helpfully read out a moment ago, but more widely. I think that that would be better for confidence, better for our economy and better for the people—many of whom will be young—who will acquire those qualifications. I therefore ask the Minister to think again.
A similar issue is raised by amendments 18 to 21, which relate to the involvement of the Quality Assurance Agency for Higher Education. They, too, seem to me to relate to the ability of employers and prospective apprentices—and, in the case of young apprentices, their families—to feel confident that the system will deliver a qualification that our country needs and that involves enough training to ensure that those apprentices are likely not only to end up with jobs but to contribute to society as we would like them to. That returns me to the workforce planning issue to which I adverted earlier.
The Minister and the Government ought to think again about those amendments. They may not want to accept the exact wording, but I should like them to include the Quality Assurance Agency for Higher Education in the list of agencies that will have a role to play in the planning, the maintenance and perhaps even the raising of standards. That would be desirable.
Justin Tomlinson (North Swindon) (Con)
I was a member of the Bill Committee, which was very constructive and involved much cross-party support. The Minister has a real passion for, and depth of knowledge about, this issue, and the shadow Minister, the hon. Member for Blackpool South (Gordon Marsden), also demonstrated a genuine interest.
I want to focus on a specific issue raised by the shadow Minister in connection with his desire to promote equality of opportunity. I think that that should include people with disabilities, and specifically those with learning disabilities. The Government have made great progress—they have helped some 600,000 more disabled people to obtain work in the last three years, which is fantastic—but those with learning disabilities still find it extremely difficult to benefit from the opportunities of work. The proportion is about 6%.
Andrew Bingham (High Peak) (Con)
I commend my hon. Friend for the work that he did as Minister for disabled people. Does he agree that we also need to help employers? Does not dealing with people with learning difficulties or mental health issues, about which the Prime Minister has talked today, require a great deal of support for the employer as well as the apprentice?
Justin Tomlinson
Absolutely. That is at the heart of the points that I am going to make. People need time to develop the necessary skills, and employers need to be able to provide suitable opportunities for individuals with learning disabilities. All Governments, in all generations, have tried their best to give opportunities to people with learning disabilities. The proportion has stayed rigidly at about 6%, which is the worst percentage involved in any disability and therefore presents us with the largest challenge.
When I was Minister for disabled people, I visited Foxes working hotel in Bridgwater. I was incredibly impressed by the fact that it had managed to get 80% of its young students into work. Its three-year course involved two years in a working hotel, where the students learned how to acquire independent living skills and how to work towards obtaining jobs once they had finished. They were acquiring skills that were needed for their local towns, involving restaurants, hotels and care homes. We all have our own skills gaps in our constituencies, so the skills would be adapted accordingly.
The students spent their final year continuing their learning directly in the workplace. My hon. Friend the Member for High Peak (Andrew Bingham) mentioned employers. That final year gave employers an opportunity to receive support. Foxes academy provided training and advice for employers, and for the staff with whom they would be working. Young lads and ladies were able to learn their skills patiently over the year, which seemed to me to constitute an apprenticeship: they were learning skills on the job.
I invited the team to my Department. I said, “This is amazing: why can we not increase numbers?” I was told, “We could increase numbers, but that final year is so expensive, because we have to support the employer, that we have to cap them.” I think that if we could rebadge the system as an apprenticeship, we could access the funding that is being created through the apprenticeship levy, and bring about a huge number of additional opportunities. I met the then Minister for Skills, my hon. Friend the Member for Grantham and Stamford (Nick Boles), who agreed with me, and we set up the Maynard review. I am delighted that the Government have accepted every one of its recommendations, and I pay tribute to both Mencap and Scope for the huge amount of proactive work that they did, as part of the review, in helping to shape real, tangible opportunities.
Having spoken personally to the Minister, I know of his passionate desire to see all that through. We touched on the issue in the Bill Committee, but let me urge him now to crack on with those pilots. Every young adult will seize the opportunities which—as I know, having met hundreds of young people with learning disabilities—they are desperate to be offered. I ask the Minister to continue to make this a priority, and, in his summing-up, to explain where we are, what is the timetable, and what more we can all do to raise the issue with local employers.
Kelvin Hopkins
It is a great pleasure to speak in this important debate. I, too, was a member of the Bill Committee, and I am somewhat disappointed that Government amendments have not been introduced at this stage reflecting some of the points made in Committee, especially as they seemed to be accepted at the time, in broad terms, by the Minister. I therefore hope that amendments will even now be brought forward in another place to reflect some of the discussions we had in Committee, and, indeed, some of the points made this evening, particularly by my hon. Friend the Member for Blackpool South (Gordon Marsden) on the Front Bench, who made a tour de force speech introducing all his amendments. It is surprising that there are no Government amendments or new clauses on Report; that is very unusual.
All the amendments and new clauses have been introduced by my hon. Friend on behalf of the Labour Opposition—and they are all splendid and I support them all. The lack of Government amendments is disappointing, even though there is a degree of agreement on the value of this legislation, and we all know we have to do something about improving apprenticeships and training our young people for the future. As my hon. Friend the Member for Wolverhampton South West (Rob Marris) said, we have to train our own rather than just poach people from abroad.
New clause 1, requiring the Institute for Apprenticeships and Technical Education to report annually, is specifically about the outcomes of completed apprenticeships; it is about the quality of apprenticeships, not just other, broader measures of success. The quality of apprenticeships is vital, to ensure that they lead to the development of skills for quality, long-term jobs after their completion. Young people who complete their apprenticeships must be desirable to their own and to other employers; they must be able to command good jobs for the long term and to look forward to relatively high pay and advancement in those jobs. It is very important to make sure that apprenticeships are high quality not just in words, and that apprentices can do the things they are required to do after they have qualified.
I remember the days, many decades ago now, when we had full employment. I taught in further education during that era, and in many ways it was a better and happier period than we are in now. Everybody who wanted a job got a job, and teaching in further education was a sheer joy. It has been more painful and stressful since then, I have to say, and less well paid, and the conditions of employment are less good than when I was teaching. But that was several decades ago, back in the early 1970s. We also had large companies, mainly in the manufacturing sector, and the giant public utilities, which were then in public ownership, employing thousands of apprentices every year. They had to train their own and they wanted to make sure they were good. Some of those they trained moved off to other jobs, of course, but it was nevertheless beneficial to those doing the apprenticeships and to wider society.
Our society did well because we were training our own, but we have failed to do that in recent times; we have left things to the market, and the market does not always work well in these matters. A degree of Government intervention is required, and it is significant that the Prime Minister has used a phrase not used by any Government for a long time: she has talked about the need for an industrial strategy. I absolutely support that, and we had a debate on industrial strategy just a few weeks ago, which the hon. Member for Warwick and Leamington (Chris White) led very well.
The subject we are discussing now is part of that industrial strategy. We have to train these people, to make sure we rebuild industry. We do not produce enough any longer, particularly in the manufacturing sector; we do well in services, but not in manufacturing. We have a gigantic trade deficit because we cannot produce enough and we have to buy in from abroad. We must rebuild the manufacturing sector, not so that it becomes the dominant force necessarily, but at least so that it produces sufficient to have a sensible trade balance, which we do not have at present.
Apprenticeships have always been insecure in recent times because companies are much smaller now than they were and they are less secure because of economic crises. I have many anecdotes from my own experience. Just after the 2008 crisis, I was being driven to Heathrow for a parliamentary visit and the driver had an apprenticeship in the construction sector, but the company he had been with had collapsed and he finished up being a cab driver, which he could have done without doing an apprenticeship.
I have heard of fears, too, such as small companies training apprentices who are then poached by larger, more financially lucrative companies. That is particularly the case in the motor trade, where there are skilled small companies training their own people who are then poached by large companies that do lucrative insurance repair work, which can pay a lot more.
Robert Halfon
I thank the hon. Gentleman for, yet again, making a thoughtful speech. I do not have the figures to hand, but the evidence suggests that apprentices in companies are more loyal to that company than those on any other training scheme or in work experience or doing early-career jobs, and that they tend to stay with the companies they do their apprenticeships in.
Kelvin Hopkins
I am sure the Minister is right in the majority of cases, but for some there is pressure to move on—for instance as a result of what is happening with house prices at the moment, as one can imagine. Certainly in Luton I know of companies, such as small motor repair firms, that employ apprentices who are under pressure to get a home, and if they can earn a few thousand pounds more at a larger company nearby to help them get on the housing ladder, they will do that. I agree that loyalty is important and many of them want to be loyal, but if the financial pressures on their lives are such that they have to move, they will in the end move.
I particularly want to support the point made by my hon. Friend the Member for Blackpool South about the need for a strategy for improving career education and new clause 4. We must ensure that when young people are at school or in further education they are aware of the enormous range of opportunities out there and they do not just look at a narrow field. In Luton too high a proportion of students want to get into the legal profession, for example; they want to be professionals and do not appreciate that there are highly paid, highly skilled jobs in manufacturing industry.
Vauxhall Motors still has a plant in Luton, and almost all its senior executives started as apprentices, leaving school, doing apprenticeships and going up the ladder, eventually doing higher qualifications such as higher national certificates and higher national diplomas and becoming highly paid senior executives in the company. Those opportunities are out there, and young people must be made aware of them. We must have a careers strategy making sure that every young person knows about all the thousands of different roles they could assume in life, rather than just going into the professions, or, indeed, just going into a local company; there are lots of things young people can do.
Life can be very exciting, and it is important that all of us do something we enjoy. I am very fortunate in that I was fascinated by politics in my early life and I finished up in Parliament where I wanted to be; I do not regret a moment of it. But sometimes people are not aware of the enormous range of possibilities in life. Having a powerful careers advice strategy is vital not just for young people’s lives, but for the economy. If people are happy in their work, they will work better and the economy will work better, and the world will be a much better place.
I have one more story that explains something tragic that has happened in Luton. We were a town that trained thousands of apprentices, and I know many of them personally. Recently I visited a small manufacturing company that makes components for Formula 1 and Jaguar. It could not find one toolmaker; it wanted one toolmaker from a town of over 200,000 people that used to be dominated by manufacturing, but could not find one. It is a disgrace that we have failed to train sufficient numbers of people in these areas.
There are many other things I would like to say—I could speak for an hour unaided, I am sure—but as others want to contribute, I will leave it there. I hope the points I have made are of interest.
Vernon Coaker
I was not a member of the Committee, but I know that the Technical and Further Education Bill has generated a lot of really good debate and positive views on how we might achieve what we all want, which is an improvement in the technical and vocational education in this country and in apprenticeships. The fact that there is no division between us on that was illustrated by the contributions from the Minister and my hon. Friend the Member for Blackpool South (Gordon Marsden), among others.
Tracy Brabin (Batley and Spen) (Lab)
New clause 4 deals with careers education provision in technical and further education, and I want to build on the words of my hon. Friend the Member for Wolverhampton South West (Rob Marris). As the Minister knows from our time spent together on the Bill Committee, this issue is of particular interest to me, and I would like to thank him for the courtesy that he has extended in explaining what the Department is doing in this area, and for introducing me to the Careers & Enterprise Company. I also thank him for his keen interest in improving careers education. After due consideration, however, I feel that the new clause is necessary and that it will complement the work that is already under way. There have been a lot of warm words and verbal support, but not including careers education provision in this legislation is an enormous missed opportunity.
The Bill will shake up the technical and further education sector considerably, and accepting the new clause would show how important career planning is to the House and to the Government. During private meetings before the Bill went into Committee, real concerns were raised with me about the lack of careers education provision in our colleges. It has been stressed that the lack of advice available is such that, without explicit legislation on careers guidance, the matter will be nudged even further towards the back of the priorities queue. Resources in our colleges are overstretched, and I was disappointed to hear that in one institution a receptionist with no specialist qualifications or training had been asked to give careers guidance. The problem of a lack of careers guidance is stark. It has been brought to the attention of the Department by the co-Chairs of the Sub-Committee on Education, Skills and the Economy. In its report, the Sub-Committee states:
“Ministers appear to be burying their heads in the sand while careers guidance fails young people, especially those from disadvantaged backgrounds, and exacerbates the country’s skills gap.”
It is clear that we cannot rely on warm words and reassurances alone. We must have provisions in writing and in legislation, because we have an obligation to our learners. As we know, the world of work that our young people are entering is changing really fast. The sector in which an apprentice starts their learning will have transformed enormously by the time they reach their last year. Access to guidance and advice should not be left behind when they step into a career. It should be more agile and responsive to the skills and experience they are picking up. It is those opportunities that new clause 4 would seize, including an opportunity for a strategy to be laid before the House that was specialised for further and technical education, that was ongoing, and that provided parity of esteem between technical, further and higher education, using the expertise of the new Institute for Apprenticeships and Technical Education. This is a huge opportunity that is too good to miss.
Gordon Marsden
I thank all those who have spoken. I particularly thank the Minister for confirming that the implications of what we asked for in new clause 2 will be satisfied by the Government, which is an important concession or confirmation, depending on how he wishes to look at it. Whatever it is, we thank him for it.
I will withdraw new clause 1 but, as shown not least by the powerful speeches by my hon. Friends the Members for Gedling (Vernon Coaker) and for Batley and Spen (Tracy Brabin) and others, it is a huge missed opportunity that the Government are not including the strategy in the Bill. I mean no disrespect to the Minister and his personal qualities, but we believe that the strategy needs to be embodied for the foreseeable future in the Bill. On that basis, we will be pressing new clause 4 to a vote.
I beg to ask leave to withdraw the clause.
Clause, by leave, withdrawn.
New Clause 4
Careers education: duty to publish strategy
“‘(1) The Secretary of State shall publish a strategy for the purposes of improving careers education for persons receiving education or training—
(a) in the course of an approved English apprenticeship;
(b) for the purposes of an approved technical education qualification; or
(c) for the purposes of approved steps towards occupational competence.
(2) The strategy shall be laid before Parliament.
(3) The strategy shall specify provisions under which the Secretary of State will seek to—
(a) ensure that persons receiving education or training under subsection (1) receive information, advice and guidance relating to their future careers, and that such information, advice and guidance is delivered in a way which meets each person’s needs and is impartial;
(b) ensure that such information, advice and guidance may be taken into account by relevant authorities and partners to meet the needs of local or combined authority areas;
(c) ensure parity of esteem between technical, further and higher education; and
(d) monitor the outcomes of such information, advice and guidance for recipients.
(4) The provisions specified in subsection (3) shall have specific regard to particular needs of different groups of persons receiving education or training under subsection (1), including—
(a) persons with special educational needs;
(b) care leavers;
(c) persons of different ethnicities;
(d) carers, carers of children, or young carers, as defined by the Care Act 2014; and
(e) persons who have other particular needs that may be determined by the Secretary of State.
(5) The strategy shall include guidance for the purposes of improving careers education, to which the following bodies shall have regard—
(a) the Office for Standards in Education, Children‘s Services and Skills;
(b) the Institute for Apprenticeships and Technical Education; and
(c) the Office for Students.
(6) The Secretary of State shall by regulations designate relevant authorities and partners for the purposes of subsection (3)(b).
(7) The Secretary of State may by regulations designate—
(a) further groups of persons under subsection (4)(e); and
(b) further national authorities or bodies under subsection (5).
(8) Regulations made under this section—
(a) shall be made by statutory instrument; and
(b) may not be made unless a draft has been laid before and approved by a resolution of each House of Parliament.
(9) For the purposes of this section, “careers education” means education about different careers and occupations and potential courses or qualifications to attain those careers and occupations.’” —(Gordon Marsden.)
This new clause would establish a statutory requirement for the Government to produce a strategy on careers education, which shall be taken to be the “Careers Strategy”.
Brought up, and read the First time.
Question put, That the clause be read a Second time.
Gordon Marsden
I beg to move amendment 1, page 8, line 4, at end add—
‘(3) Before an education administrator may perform functions specified in subsection (2), they must ensure an appropriate assessment is made and published of the impact of performing such functions, including, but not restricted, to—
(a) the impact on the quality of education provided to existing students of the further education body;
(b) the capacity of another body or institution to undertake any additional functions or provide education to additional students;
(c) the infrastructure of the local area, in particular transport;
(d) the ability of students to travel to another body or institution; and
(e) any financial impact on those students, including the cost of travel by students to attend another body or institution, and steps to mitigate those impacts.
(4) The Secretary of State shall make regulations to specify suitable bodies for making the assessments at subsection (3).
(5) Regulations made under subsection (4)—
(a) shall be made by statutory instrument; and
(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.”
This amendment would ensure that an appropriate assessment is made of any potential impacts on students and their education, if an education administrator puts a further education body into “special administration” and takes action such as transferring students to another institution or keeps an insolvent institution open for existing students. This amendment would also require the Secretary of State to specify suitable bodies to perform such assessments.
Mr Deputy Speaker (Mr Lindsay Hoyle)
With this it will be convenient to discuss the following:
Amendment 2, in clause 18, page 9, line 15, at end insert—
“(e) suspend the Office for Students protection action for students.”
This amendment would give the court the power to suspend Office for Students’ student protection action for the period of insolvency in which the education administrator has responsibility for the management of an FE body .
Amendment 3, in clause 28, page 13, line 2, at end insert—
‘(1A) Sums guaranteed under subsection (1) shall include statutory pension obligations payable to staff employed by a further education body subject to an education administration order.”
This amendment would ensure that staff employed by an FE college continue to accrue statutory Teachers Pension Scheme and Local Government Pension Scheme pension obligations? during an education administration.
Amendment 22, in schedule 2, page 30, line 39, at end insert—
“3A The education administrator may not transfer assets of any further education body to a for-profit private company where he or she considers that more than half of the funding of the acquisition of the asset came from public funds.”
This amendment would ensure further education bodies with a track record of accruing assets publicly, could not be transferred to a for-profit private company.
Gordon Marsden
May I wish you a happy new year, Mr Deputy Speaker?
We turn to the extremely important part of the Bill, which is one of the reasons why the Bill is in the form it is. I shall deal with that in a moment or two when discussing amendments 2 and 3. First, I wish to focus on the importance of clause 14 and of the Government’s welcome introduction into the Bill of the role of the education administrator. Although we welcome that, we want to probe, as we did in Committee, just how it is going to work in practice, and that is the purpose of amendment 1. It is extremely important to remember the end product we are all aiming at. We hope—and I believe, as I am sure the Minister does—that the number of occasions when the detailed insolvency provisions laid out in the second part of the Bill will be required will be as few as possible. Shortly, I will suggest why I think they are particularly necessary and deal with some of the related issues.
This amendment would ensure that an appropriate assessment is made of any potential impact on students and their education if an education administrator puts a further education body into special administration and takes action such as transferring students to another institution or keeps an insolvent institution open for existing students. It would also require the Secretary of State to specify suitable bodies to perform such assessments. The amendment has been tabled at the urging of the National Society of Apprentices and it touches on an area where the Minister and I have common ground: the importance of understanding what the end product of this new education administrator is all about. He or she is there to provide protections and support that would not be available in a traditional insolvency process. That is extremely important in terms of the position of young people, particularly those who might be at college as part of their apprenticeship or of other training.
I wish to speak particularly to the proposed new subsections 3(c), 3(d) and 3(e) set out in our amendment. One thing that the NSOA’s research has shown—this was in 2014 and the figure may well have increased since—is that apprentices spend, on average, about £24 a week on travel, which equates to a quarter of the salary of an apprentice earning the apprentice national minimum wage. Additional research has indicated that some young people were choosing the apprenticeships they could afford to get to, rather than those they were keen to do. In the light of the area review process in England and the creation of fewer, more resilient colleges, we are concerned about the impact on those potential apprentices in terms of their travel time between provider, employer and home. We have had our disagreements with the Government over that review process and will doubtless continue to probe them strongly on it.
The Opposition believe it is important that the Institute for Apprenticeships and Technical Education takes a clear and early lead role in encouraging local authorities and transport companies to ensure that all young people, including apprentices, are covered by travel concessions. Without a high-profile champion for their needs, apprentices can too often be excluded from such concessions, because apprenticeships are perceived as employment rather than education and are excluded from the relevant definitions. The crux of the amendment is to ensure that the entitlement that the Bill gives to students to continue their education works in practice. The ambitions of the provisions on special administration are noble; the amendment is intended to be a safeguard against any unintended consequences.
Rob Marris
My hon. Friend is much more familiar with the Bill than I am. On the clarity that he seeks to introduce by this amendment, does he share my concern—perhaps he does not, because he knows the Bill better—that it is not clear in the Bill what an education administrator is? I know that he or she will be an officer of the court and that they will carry out certain functions. Training is central to what we are talking about on the Bill, yet I cannot see anything that says there has to be certain qualifications for an education administrator. It is a bit fuzzy.
Gordon Marsden
As usual, my hon. Friend is perceptive. If we had the time and if it was within the scope of this amendment, I would acquaint him with the debates in Committee during which we discussed that matter at some length. Although we have not moved any more specific amendments in that area—obviously, this is something for the other place—the Minister needs to reflect further on what, if anything, needs to be put in the Bill to answer perfectly legitimate and important questions such as the one my hon. Friend has just asked.
There are a number of effects that the invocation of these education administration powers may have on students, but that is precisely the point of the amendment: to ensure that whatever impacts these powers have in practice, they are assessed within the local circumstances of the colleges in which those changes are needed.
Let me turn now to amendment 2, with which I hope the Minister will have some sympathy. Again, if he not happy with its structure, perhaps we can juggle with it. The amendment would give the court the power to suspend student protection action by the office for students for the period of insolvency in which the education administrator has responsibility for the management of an FE body.
The Association of Colleges is particularly keen to see amendment 2 addressed. It is concerned that the insolvency regime is being introduced at the same time as a separate protection regime takes place in higher education under the control of the new office for students—that Bill has entered its Committee stage in the other place only today. We have some sympathy with its belief that the Government have missed an opportunity to introduce a joint legal regime, covering both further and higher education corporations. However, we are where we are, and that is the basis on which this proposal is being put tonight, so this Bill needs to be amended to remove duplication between the HE intervention regime and the FE regime. This affects colleges that want to maintain or develop their HE provision, which is an important part of the system and which involves up to 150,000 students. I feel strongly about this because it affects my local college, Blackpool and the Fylde College, which has up to 1,000 students.
We have two Government Bills creating two separate control systems with two sets of obligations on colleges. Ministers will say that special administration and the OFS powers will be used only in exceptional cases, but, inevitably, colleges will have to prepare for the worst. If they have higher education provision, they will need to boilerplate—double insulate—their finances to satisfy the organisations with which they deal. This could make it a lot more expensive to run HE provision than it needs to be. The purpose of the amendment is to confirm that the OFS regime will be suspended during a special administration.
I wish to speak briefly to amendment 3, which addresses the need to ensure that staff who are employed by an FE college continue to accrue statutory teachers’ pension scheme and local government pension scheme obligations during an education administration. This issue has been raised not just by the Association of Colleges, but by the University and College Union. Colleges employ large numbers of staff and not all of them are teachers. In addition to caretakers, catering staff and cleaners, they employ learning support assistants, IT technicians and administrators. On Second Reading, we made a point of emphasising that, just as with universities, it is not simply teachers, administrators and bureaucrats who keep these institutions going. The same is true of FE colleges. We would be appalled if, as a result of any of these issues, people’s pension rights or their potential pension rights were affected.
We believe that there are more than 70,000 people in colleges who are not teachers and who are eligible in law to membership of the local government pension scheme. There is some evidence that the Bill has raised concern among those running local government pension schemes and that it is already resulting in additional financial demands on colleges. We do not think that it is the Government’s intention to use the process to renege on debts to the LGPS, because that would simply pass on the costs to all the other employers, including councils themselves, but colleges have no choice in law about whether to offer LGPS membership. The fact is that they do provide access to decent pensions for 70,000 people, and the purpose of the amendment is simply to clarify that staff employed by an FE college continue to accrue those obligations and that the Government will ensure that any additional debt accrued is covered. That would ensure that statutory TPS and LGPS pension obligations are suspended but that employed staff can continue to accrue entitlements, but that that does not result in penalty interest, which is written into TPS and LGPS rules once they recommence.
In case the Minister thinks that this is only a hypothetical issue, it is worth making the point—the UCU has done so—that there are already real concerns about pension scheme deficits in certain colleges, and that the regulation, if the issue is not addressed, could cause alarm with lenders and raise interest rates, which could of course negate the stated aim for the introduction of insolvency regulations and preclude the increased confidence in the insolvency scenario that the Government and we are very keen to see.
Rob Marris
May I assure my hon. Friend that the Minister is well aware of that scenario, because my local college, the City of Wolverhampton College, has a big pension problem, and when I have discussed it with him he has been extremely helpful in trying to resolve it?
Gordon Marsden
I am grateful to my hon. Friend for that intervention, because he has provided a specific example of precisely the issue that has led us to table the amendment.
Amendment 22—I give notice that we will be pressing it to a vote—would ensure that further education bodies with a track record of accruing assets publicly could not be transferred to a for-profit private company. We had a significant discussion about that in Committee. For the benefit of those who were not in Committee, and indeed those who were, I will try to summarise it as briefly as possible, because I think that the principle is extraordinarily important.
The current situation raises some significant questions about what would happen to the transfer of assets. The information states that assets should be transferred only to charitable bodies, and it is on that point that I wish to focus my remarks. Where the bodies are not charities, assets must be transferred in accordance with the charitable purpose of the trust. It then links to a list of prescribed bodies to which assets could be transferred, including sixth-form colleges and governing bodies. The point that I am making is that it is expected that all transfers should be made to charitable bodies, but that is not the same as saying that that is required.
When colleges were incorporated in 1992, it took them formally outside the aegis of local authorities. My hon. Friend the Member for Luton North (Kelvin Hopkins) spoke eloquently about that in Committee. We have to take into account that the asset base in many cases was built up with local authority support and funding over 20 or 30 years. I reminded the Minister in Committee about my own local college, Blackpool and the Fylde College, which he has visited. He went to the Bispham campus, which has buildings and elements that go right back to the 1950s and ’60s. When the Building Colleges for the Future process took place in 2000, we did not get the new college that we hoped we would for a variety of reasons to do with where we were in the food chain. Nevertheless, I am illustrating that the estates of many buildings we are talking about have been accrued either on an active financial basis or by the ceding of land by local authorities and other organisations.
Catherine West (Hornsey and Wood Green) (Lab)
Does my hon. Friend agree that there is a particular issue in higher value areas, where it may be tempting to build some more flats on public land that should actually be used for the common good?
Gordon Marsden
My hon. Friend has a double qualification to speak on the subject: as the Member of Parliament for the constituency she represents and through her previous career as a distinguished local government leader in London. She knows whereof she speaks and she is absolutely right that the problem is accentuated in those areas.
Money has come in over the years including pre-1992 and in the major Building Colleges for the Future programme that the Labour Government introduced in the 2000s. Then, of course, significant sums of money were put in by regional development agencies and sometimes through regional growth fund developments and offshoots of European structural funding. As I said, FE colleges deliver not just FE, but higher education. If 10% to 12% of total HE provision is being delivered by FE colleges, it is really important that we do not lose that position.
I do not want to rehearse—indeed, we do not have time to tonight—the arguments that were made in 2011 about the private for-profit sector training coming in and being involved with various equity funds whose investment platforms were very much focused on a broad area. However, I would say, as many in the sector would, that although the private equity funding sector can be extremely profitable and useful, it is based on a relatively short-term view of providing management and initial capital to buy other companies and then taking them off the public share markets. It is entirely reasonable for us to be concerned about the possible disposal of lands with significant amounts of public assets. The question is not simply whether it is a good thing to transfer a significant number of public sector assets to a private provider, but what the financial guarantees are. More importantly, there are issues regarding the nature of the body and the guarantees to the students and the people employed there if such organisations use the insolvency to take on those colleges.
Ministers may talk about guarantees for staff under TUPE, but I am sure that hon. Members realise that TUPE does not offer protection forever and a day. I have had significant experience of that in my constituency in Blackpool over the years with people who have been outsourced from the civil service and TUPE-ed into other organisations that have then passed on to someone else, at which point those people’s automatic rights and security of tenure have almost become extinguished. Those are our concerns and they are not irrelevant. They are concerns of pragmatics and of principle. It is not as though there have not been concerns in the area previously.
In December 2014, the Public Accounts Committee severely quizzed officials from the Department for Business, Innovation and Skills, which then had responsibility for the matter, about why private providers were allowed to engage in untrammelled expansion without proper quality checks. In February 2015, the Committee published a report that said that BIS has repeatedly ignored advice from the Higher Education Funding Council for England about vast sums of public money going to for-profit colleges without due process and consideration. There is the potential, as Martin Doel, the former chief executive of the Association of Colleges, said, for private organisations to
“asset strip colleges’ buildings and facilities”
or “pick” assets.
So, for the avoidance of doubt, we are not saying that we would oppose any private sector takeover of a college in any circumstances; we are saying that the education administrator will have to make a judgment. We are also saying that, without the protection in this amendment, the potential for the things I have described to happen would be very high, and that is why we are determined to press the amendment this evening.
Robert Halfon
I thank the hon. Member for Blackpool South (Gordon Marsden) again for his amendments. I will begin by discussing amendment 1, which affects clause 14. I have to stress that, in the unlikely event that an FE body becomes insolvent, we want to ensure that any disruption to students’ studies is avoided or minimised as far as possible. It will be for the education administrator to deal with that, and according to the relevant clause in the Bill, they will be an insolvency practitioner—they are likely to come from one of the bigger companies and to have education experience. It will be the same system as with insolvent companies.
The education administrator will decide how the special objective will best be achieved. Clause 14(2) does no more than suggest ways in which that might be done. The education administrator will need to consider the specific circumstances of any insolvency and then determine the most appropriate approach. It is inconceivable that they would draw up proposals for achieving the special objective without having had discussions with a wide range of stakeholders, such as the Further Education Commissioner, student bodies and others, and without considering a wide range of pertinent issues.
Our expectation is that that will include discussions with the key stakeholders, local authorities and others. Where appropriate, it may also involve—I brought this up in Committee—a conversation with the care leaver’s personal adviser. We discussed in Committee the additional personal and pastoral support that care leavers might need. I undertook to consider the matter further, and I hope the hon. Member for Luton North (Kelvin Hopkins) will be pleased that we are keeping the promise we made in Committee. We will ensure that the guidance to local authorities on their corporate parenting responsibilities, being introduced through the Children and Social Work Bill, includes advice on the role of personal advisers in the event of a college insolvency affecting a young person for whom they are responsible.
We expect the education administrator, in developing their proposals, to take account of the quality of alternative provision and, if it is necessary for students to complete their studies in other locations, to consider the impact of travel distances. The hon. Member for Blackpool South will be aware that we provide funding to colleges to support disadvantaged and vulnerable young people. In addition to the disadvantage funding for post-16 places—£550 million in 2016-17—which can be used to subsidise college buses, there is also the 16-to-19 bursary fund and the fund for the particularly vulnerable. Colleges will be able to offer this funding to eligible students who transfer to them under a special administrative regime. There may be scope for the education administrator to set up a scheme to cover some or all of the additional travel costs if students do have to travel to another location.
In Committee, the hon. Gentleman said:
“We do not want this to become”
a
“long-winded, time-consuming process”—[Official Report, Technical and Further Education Public Bill Committee, 1 December 2016; c. 174.]
I share that view. It is in the interests of students and staff to have certainty as soon as possible about what will happen. Requiring formal assessments to be carried out in the way proposed by the amendment would lengthen the process and reduce the education administrator’s discretion to find the best way of achieving the special objective. That is not to say that we do not agree that these issues are important, but I have shown that they are at the front of the education administrator’s mind.
On amendment 2, I understand the issue about double protection and why the hon. Gentleman has tabled the amendment. The amendment is unnecessary because the court, on hearing an education administration application, already has the discretion to make any interim order it thinks appropriate. If it is necessary or appropriate to make an order relating to an existing student protection plan, the court has the power to do that under the Bill.
On pensions, we have followed as far as possible the provisions of the ordinary administration regime that exists for company insolvencies. We propose to adopt similar provisions for college insolvencies, which, as I say, will be very rare indeed. As with any administration, once the administrator has adopted the employment contracts of the staff they decide to keep on, they are personally liable for the costs of those individuals, such as their salary and their pension contributions. They would take on the appointment only if they were confident that sufficient funds were available to meet the costs. Some pension contributions will continue to be made and benefits accrue. Some staff may be made redundant, whether at the start of the education administration or subsequently, but this will of course be in accordance with statutory employment rights. For these staff, contributions to the pension fund will end once they are no longer employed by the body, but this is no different from the position of any other person leaving their employer’s pension scheme. It is important to be clear, however, that the benefits individuals have accrued in the scheme prior to the end of their employment will not be lost.
I accept that the hon. Gentleman feels very strongly about the transfer issue. FE colleges are statutory corporations with very significant freedoms to deal with their own assets. A solvent college is free to transfer property to any person or organisation it chooses. In order to benefit, the college would of course expect to receive value when transferring an asset to a third party, and in general this would mean transferring at market value, although this depends on the nature of the transaction as a whole. In this case, however, we are talking only about a situation where a college has failed financially and is insolvent—an extreme case.
I need to make it clear to the hon. Gentleman that there are four vital protections that act as a quadruple lock to safeguard assets that belong to the college, which may well have been paid for with money from the public purse but have to be dealt with because the college is insolvent. First, unlike solvent, operational colleges that wish to transfer property, if the education administrator decides to make a transfer scheme, they are restricted as to whom they can transfer the assets. These bodies are prescribed in the secondary legislation made under section 27B of the Further and Higher Education Act 1992. They are public sector bodies with educational functions. In addition, transfers can be made to private companies, but the company must be established for purposes that include the provision of educational facilities.
Secondly, just as with any other action of the education administrator, any transfer scheme must be for the purposes of achieving the special objective of avoiding or minimising disruption to students’ studies. Thirdly, creditors have a general right to challenge should they consider that the education administrator is selling things “on the cheap”, for example. Finally, the Secretary of State or Welsh Ministers must approve the proposed transfer scheme. Any approval will include, among other matters, consideration of whether it is for the purposes of achieving the special objective. I believe that the quadruple lock answers the hon. Gentleman’s concerns.
I thank the hon. Gentleman for his amendments, and thank other hon. Members for their contributions to the debate. I hope that my response has reassured him, and the House, on his underlying concerns. I therefore ask that the amendments are not pressed to a Division.
Gordon Marsden
I have listened carefully to what the Minister has said and taken note of his views and the proposals he has made. On that basis, we are prepared to withdraw amendment 1.
On amendments 2 and 3, I heard the reassurances that the Minister has given, but when the Bill reaches the other place there needs to be a further examination of the very important issues around the pension schemes. I am not entirely convinced that the assurances, which I am sure have been made in good faith, will actually do the business.
As regards amendment 22, I thank the Minister for his explanation of what he described as the quadruple lock, but I am afraid, not least because of seeing past practice, that we have to plan in this Bill not for the best circumstances but for the worst. This is also a really important issue of public policy that we should establish within the Bill. On that basis, we wish to press amendment 22 to a vote. I beg to ask leave to withdraw amendment 1.
Amendment, by leave, withdrawn.
Schedule 2
Education administration: transfer schemes
Amendment proposed: 22, page 30, line 39, at end insert—
“3A The education administrator may not transfer assets of any further education body to a for-profit private company where he or she considers that more than half of the funding of the acquisition of the asset came from public funds.”—(Gordon Marsden.)
This amendment would ensure further education bodies with a track record of accruing assets publicly, could not be transferred to a for-profit private company.
Question put, That the amendment be made.
Mr Deputy Speaker (Mr Lindsay Hoyle)
I will now suspend the House for no more than five minutes in order to make a decision on certification. The Division bells will be rung two minutes before the House resumes. Following my certification, the Government will table the appropriate consent motions, copies of which will be shortly available in the Vote Office and will be distributed by the Doorkeepers.
Mr Deputy Speaker (Mr Lindsay Hoyle)
I can now inform the House of my decision about certification. For the purposes of Standing Order No. 83L(2), I have certified clauses 2 to 38 of, and schedules 2 to 4 to, the Technical and Further Education Bill as relating exclusively to England and Wales and within devolved legislative competence, and clause 1 of, and schedule 1 to, the Bill as relating exclusively to England and within devolved legislative competence. Copies of my certificate are available in the Vote Office.
Under Standing Order No. 83M, consent motions are therefore required for the Bill to proceed. Does the Minister intend to move the consent motions?
Robert Halfon
indicated assent.
The House forthwith resolved itself into the Legislative Grand Committee (England and Wales) (Standing Order No. 83M).
[Mr Lindsay Hoyle in the Chair]
The Chairman of Ways and Means (Mr Lindsay Hoyle)
I remind hon. Members that if there are Divisions, only Members representing constituencies in England and Wales may vote on the consent motion for England and Wales, and only Members representing constituencies in England may vote on the consent motion for England. As the knife has fallen, there can be no debate
Motion made, and Question put forthwith (Standing Order No. 83M(5)),
That the Committee consents to the following certified clauses of the Technical and Further Education Bill:
Clauses certified under Standing Order No. 83L(2) as relating exclusively to England and Wales and being within devolved legislative competence
Clauses 2 to 38 of, and Schedules 2 to 4 to, the Technical and Further Education Bill.—(Robert Halfon.)
Question agreed to.
The House forthwith resolved itself into the Legislative Grand Committee (England) (Standing Order No. 83M(4)(d)).
Motion made, and Question put forthwith (Standing Order No. 83M(4)(d)),
That the Committee consents to the following certified clauses of the Technical and Further Education Bill:
Clauses certified under Standing Order No. 83L(2) as relating exclusively to England and being within devolved legislative competence
Clause 1 of, and schedule 1 to, the Technical and Further Education Bill.—(Robert Halfon.)
Question agreed to.
The occupant of the Chair left the Chair to report the decisions of the Committees (Standing Order No. 83M(6)).
The Deputy Speaker resumed the Chair; decisions reported.
Pete Wishart (Perth and North Perthshire) (SNP)
On a point of order, Mr Deputy Speaker. I am sure that the House was greatly entertained by the farce that we have just witnessed. I hope that during the adjournment, you had the opportunity to take advantage of the facilities here and even make yourself a nice cup of tea, Mr Deputy Speaker, because it was a completely and utterly pointless waste of time.
Because of the way in which the programme motion has been designed and because of the lack of time available, it has not been possible for the Legislative Grand Committee to consider all these important English-only measures. Given that English votes for English laws is supposed to be of paramount importance and one of the main innovations of this Parliament, is it not disappointing that English Members have not had the opportunity to lend an English—
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I think the hon. Gentleman and I both know, first, that that is not a point of order and, secondly, that an important debate took place today, and it was regarded as important to have a special debate on health as well. The fact is, however, that time has gone. The House agreed to the rules and they have now been applied. Going over all that is not going to change anything. I thank the hon. Gentleman for raising the point of order and he has now put his point on the record. The bottom line is, however, that these are the rules that the House has chosen, as he well knows. That is the end of it. We move on to Third Reading. Perhaps time for a cup of tea. [Interruption.] Order. If you have a problem, Mr Wishart, you should pursue it through the usual and proper channels. The fact is that you did not raise a point of order, as you well know. I know it was not a point of order and you know it was not, which was why you raised it. The bottom line is this: if you do not like it, go and get your cup of tea while the House gets on with the business.
Robert Halfon
I beg to move, That the Bill be now read the Third time.
I want to give my special thanks to all the individuals who have shared their time and knowledge during the Bill’s passage through the House, to the officials who have worked so hard to bring it before Parliament and to those providing written and oral evidence. I would like to thank members of the Committee for their diligent approach and careful consideration of the practical implications of the Bill, and Members who have already spoken today.
I am clear about the priorities that we want to see in apprenticeships, further education and skills, creating a ladder of opportunity for all. These include a transformation of prestige and culture; widespread, high-quality provision; a system that addresses our skills needs; social justice; and job security and prosperity. The Bill seeks to build those priorities into our system, bringing to life the fundamental reforms needed to ensure that we have a skills and education system that rivals the best in the world.
For too long, technical education has been overly complex, overlooked and undervalued. Putting employers at the heart of these changes, as demonstrated through the current apprenticeship reforms and as recommended by Lord Sainsbury’s independent report, we can provide a clear route to employment for our young people. The changes in the Bill will support the achievements of those young people from difficult backgrounds, such as those with special educational needs or disability. In response to what my hon. Friend the Member for North Swindon (Justin Tomlinson) said earlier, we are doing a lot to implement the Maynard reforms, we are spending £2 million to help apprentices with mental health difficulties, and we announced over Christmas that apprentices with severe hearing problems will be able to do sign language instead of English as a functional skill.
We expect individuals with SEND to be over-represented on technical education routes: 23% of those who access technical education routes will have some form of special educational need compared with 7% of those taking level 3 academic qualifications, and 20% of those in the cohort as a whole.
The measures in the Bill will drive up the productivity of our country, turning us into an apprenticeship nation and providing the skills we need for our country to thrive. That is why the CBI has said:
“Businesses have long called for a vocational route…so today’s proposals are a real step forward.”
David Rutley
I thank my right hon. Friend for the incredible work he has done in taking the Bill forward and I commend him for his efforts. Does he agree that one of the most important factors is engaging businesses in these apprenticeships and making the route to skills more relevant for business so that this will not only help to address the productivity challenges that he has mentioned, but improve life chances for the young people involved, too?
Robert Halfon
My hon. Friend, whom I thank for his work on the Committee, is absolutely right. We introduced the apprenticeship levy to change behaviour and involve businesses in supporting apprenticeships, we have created the institute and the employer panels, and we are giving huge financial incentives to businesses, especially small businesses, to ensure that they hire apprentices.
The Bill also introduces an insolvency regime for the further education sector that will, in the unlikely event of a college insolvency, provide clear-cut protections for learners to minimise disruption to their studies as far as possible, while offering certainty to creditors. During oral evidence, we heard from representatives of the Association of Colleges, Collab and others, who supported the insolvency regime and the protections that it includes for learners. Although there were issues about which the banks had questions, many spoke in support of the clarity provided by the proposed measures. Santander told us that it was keen to lend more to the further education sector, and said:
“On the Bill and the proposed insolvency regime, we are actually supportive of the clarity that they provide.”––[Official Report, Technical and Further Education Public Bill Committee, 22 November 2016; c. 38, Q41.]
Kelvin Hopkins
As the Minister will remember, I suggested in Committee that all colleges should have professionally qualified members with financial skills in both management and governorship, so that skilled eyes would be trained on the finances to ensure that at least mistakes were not made internally.
Robert Halfon
I accept the hon. Gentleman’s premise, but, as I think I said in Committee, I do not want to put a straitjacket on colleges. The principal of Blackpool and The Fylde College acknowledged that there might be different requirements for different colleges. Nevertheless, there should be as much financial expertise as possible in further education colleges. When there is real financial leadership, those colleges will always be in good financial health whatever the funding pressures.
We forecast that, by March 2017, we will have spent a total of about £140 million on propping up colleges facing extreme financial difficulties. That money should have been spent on education and training priorities. While we envisage that only a very small number of colleges will ever find themselves insolvent, providing protection for learners and clarity for creditors is a crucial part of what we are trying to do, and of our responsibility to support the sector.
Since the Committee stage, we have been in a position to publish for consultation the Secretary of State’s draft strategic guidance. Following our conversations about the importance of incorporating the views of students in the running of the institute, it will come as no surprise that the guidance sets out our firm expectation that the institute will establish an apprentice panel by April this year. The panel will report directly to the board, ensuring that the learner voice—the apprentice voice—is at the heart of the institute. I am glad that the hon. Member for Blackpool South (Gordon Marsden) is encouraged by our approach. We also intend to publish for consultation, before the institute becomes operational in April, an operational plan for the institute which will set out in more detail how it intends to carry out its functions.
As for the insolvency elements of the Bill, we discussed in Committee the protections given to students through the special objective, and the possible ways in which the education administrator could ensure that disruption to students’ studies was avoided or minimised. In particular, we discussed whether the particular regard that the education administrator must have to the needs of students with special educational needs and disabilities should be extended to any other groups. I also recognise the importance of taking account of the needs of care leavers, recognising that they may need additional personal or pastoral support to deal with any uncertainty or upheaval should their college ever be subject to insolvency. Such support is best provided for each individual by a local authority-assigned personal adviser. As I said earlier, we will take steps to ensure that the guidance being produced for local authorities on their corporate parenting responsibilities includes advice on the role of personal advisers in the event that the young people for whom they are responsible attend colleges that enter education administration.
There is much to be proud of in our current system, given that 71% of FE colleges are good or outstanding and more than 50% are in good financial health, the proportion of 16 to 18-year-olds in education or taking up apprenticeships is at a record high, the reforms made following the 2011 Wolf review have raised the quality of qualifications, and 88% of students were recorded as having a sustained education destination in the year after key stage 5.
We know that high-quality further education can have a truly transformative impact on young people. That is why we announced as part of the spending review that we will protect the 16-to-19 national base rate of £4,000 per student for the duration of this Parliament. By 2020, if we include the adult education budget, the 19-plus apprenticeship funding and advanced learner loans, more funding will be available to support adult further education participation than at any time in England’s history.
The measures in this Bill will build on the key priorities, enabling students to make better choices about their future, with the opportunity to gain qualifications valued by employers that will secure their future prosperity and that of our nation.
Rebecca Pow (Taunton Deane) (Con)
In my constituency we are very fortunate in having Richard Huish sixth-form college, which has just been shortlisted as one of the six best sixth-form colleges in the country for The Times award. It runs apprenticeship courses, but there are concerns that it cannot get enough students to apply for some of the business admin courses. There is a real demand from business for those students, yet there are loads of apprentices doing courses where business does not really have jobs for them. Does the Minister agree with me and the principal of the college that provisions in this Bill to develop the synergy between education, apprenticeships and business are welcome, and indeed vital in addressing the skills shortage in this country?
Robert Halfon
I thank my hon. Friend for her intervention, and she is absolutely right: everything this Government are doing—the apprenticeship levy, this Bill, FE and technical education reform, the drive up of standards, the encouragement of apprenticeships, the money we are putting in with £2.5 billion that will be doubled by 2020—is designed to solve the problems she has talked about.
The OECD has said about the skills plan that
“the UK has a promising plan to advance technical education from a last resort to a first choice.”
Colleges, too, have spoken highly of the plan, including the principal of my own Harlow College, who said:
“As colleges we are not just about courses, we are about careers—we therefore believe that any reform that brings us closer to employers means our students gain higher skills and better jobs.”
This Bill is a Ronseal Bill: it does what it says on the tin. It transforms the prestige and quality of apprenticeships and technical education in our country, addresses the skills deficit, protects students in the event that colleges face extreme financial difficulty, and ensures that the most disadvantaged are able to climb the ladder of opportunity. The Bill underlines the Prime Minister’s commitment to a country that works for everyone. I commend the Bill to the House.
Gordon Marsden
May I associate myself with the Minister’s comments in thanking the officials and all Committee members? I particularly thank my Labour colleagues, who did sterling work in supporting us on the Front Bench in Committee. May I also commend the support that the Public Bill Committee gave to us? The role of the Opposition in challenging the Government on these matters is sometimes equivalent to that of David taking on Goliath; we do manage occasionally to get a few slingshots in, and I am grateful on this occasion they have not incapacitated the Minister concerned.
This is an important Bill with some important provisions, which is why we have not opposed it on Second Reading or on Third Reading tonight. However, that does not mean that we do not continue to have profound concerns about its implementation, process and progress. That was indicated in the excellent, although relatively truncated, debate we had on the amendments, in the contributions of my hon. Friends the Members for Wolverhampton South West (Rob Marris), for Luton North (Kelvin Hopkins), who is still here, for Gedling (Vernon Coaker), who gave an inspiring speech on the need for us to have vocational passions, and for Batley and Spen (Tracy Brabin), a relatively new Member of the House. All of them talked about practical issues such as implementation, about which we still have real concerns. This is not just a matter of formulae. For a long time—indeed, until it was almost too late—there were no links between higher education and further education in the way envisaged when the previous higher and further education legislation was brought forward.
I ask the Minister to reflect on a matter that is perhaps even more important. We have had a spirited discussion today about whether we need to have a strategy for careers advice in the Bill. We still believe that we do, and we think the Minister has missed a trick in that respect. The inclusion of such a strategy would have entrenched his position and his passion for careers advice, rather than diminishing it. The broader issue, however, is that the things that the Minister and everyone else would like to see happen are not solely a matter for the Department for Education. I know that he is as passionate about delivering traineeships as I am, but to do that we need to build structures and links between the DFE and the Department for Work and Pensions and to reach a concordance over the 16-hour law and other things. If the Government want to deliver careers advice, there will need to be a similar engagement and balancing act between the DWP and the Department for Business, Energy and Industrial Strategy. These things cannot just be left in one particular box.
I pay tribute to the Minister for the passion that he has shown on apprenticeships, but the fact is that apprentices are still handicapped by a number of things on which the Government have yet to prove their bona fides. That includes issues relating to GCSEs in English and maths. I have heard encouraging words on that from the Secretary of State and the Minister, but they have not yet nailed that issue down and it will not go away unless there is a satisfactory solution to the often soul-destroying requirement to retake GCSEs in those subjects.
Apprentices do not work and exist in a vacuum. The question of how their families are supported—through child benefit and in other ways—needs to be looked at, not just by the Department for Education but by other Departments as well. If that does not happen, there will be a real problem. Our new clause on this matter was ruled not to be within the scope of the Bill, but this is still a really important issue.
Mention was made in passing of devolution. I do not want to go into that issue much further tonight, but the Government need to think very clearly about it. They are going ahead with the devo-max process for combined authorities, yet the structures in the Bill do not reflect the reality of what the delivery of adult education, and possibly apprenticeships, will be like. Personally, I do not think that we can have a proper long-term skills strategy on a localised basis without taking apprenticeships into account as well as adult education. That point has not been addressed in the Bill.
The Minister has talked about insolvencies, and I associate myself with his view that it is a minority issue in regard to further education colleges. Let us pray that it continues to be so. However, it is worth remembering that the Bill is being introduced in the context of a period of profound funding cuts in the FE sector. The Government need to address the fact that that is the context in which they have decided to introduce this standalone Technical and Further Education Bill. The Minister also mentioned travel support. I note in passing that if the Government had taken up our proposals on education maintenance allowance, the process might perhaps have been speedier.
I want to return to the question of how the provisions will be delivered, and the timescale involved. It is three months until the apprenticeship levy funding kicks in. We still do not know who the new chief executive of the institute will be, and we do not know about the board. We have had some progress on those issues today, but we are told, for example, that the Skills Funding Agency will stay in charge of the new register of apprenticeships, which raises genuine bewilderment among many people out there—the Minister will have seen the comments made to FE Week in the past couple of days on this subject—as to why it is not Ofqual, if not IFATE, that is administering the register of approved apprenticeship assessment organisations. Is the real reason why the SFA is doing this because it is basically the civil service and that it would give a reserve power to Ministers to micromanage? It is not a question of what the Minister might do but what some of his successors might do.
Those important issues will need to be reflected on in the other place. Two key issues still remain. Will the funding and the staffing numbers that were dragged out of the Government when Peter Lauener spoke to the Committee be adequate for all the responsibilities? I would say that it is doubtful at this stage. How arm’s length or genuinely independent of judgment will the new institute be, or will Whitehall still be micromanaging the strings? Those are not just petty issues. They are issues that, if not resolved properly, will not gain the full-hearted consent of stakeholders, providers and all the people whom the Minister needs, and we all need, in order to meet the targets and to make his aspirations and my aspirations for apprenticeships for the next generation a reality.
Question put and agreed to.
Bill accordingly read the Third time, and passed.