The Minister for Apprenticeships and Skills (Anne Milton)
I thank the hon. Member for Hackney South and Shoreditch (Meg Hillier) for securing the debate. I can assure her that I will not resort to smoke and mirrors. That is not really my style. I will not necessarily be able to give her all the specific details about the money that I think she will want to hear, but I will respond to a couple of her points.
The Secretary of State is extremely mindful of the problems involved in asking schools to do more. He is determined to ensure that we do what we can to help them to manage their budgets and their workload. The hon. Lady mentioned high needs. An additional £250 million will be invested in 2019-20, and we are looking at some of the perverse incentives that currently exist, especially considering that first £6,000 that schools are asked to pay. The hon. Lady raised the issue of asbestos exposure and capital budgets. The impact of asbestos in buildings on health, and the changes and challenges that it poses, are quite complex, but I welcome her comments about the schools survey that we have undertaken. The Department has established an asbestos working group, which includes the Health and Safety Executive, to address some of those problems.
A total of £23 billion has been provided for capital spending over five years—between 2016-17 and 2020-21 —and we are on track to create 1 million new school places during the current decade. That will be the biggest expansion for two generations, and it contrasts with the loss of places between 2004 and 2010. Between 2010 and 2017, 825,000 additional places were created; that includes 90,000 in 2016-17 alone. I should add that 97.7% of families received offers from one of their three top primary school choices, and 91% received offers from their first choices. Those are important figures, because that is what matters to parents.
I will respond to some of the most pressing points that have been raised, but I should first point out that in 2018-19 the Department’s resource budget is about £79 billion. Of that, £18 billion is for higher and further education, £55 billion is for early years and schools, and £0.3 billion is for social care, mobility and disadvantage.
I welcome the contribution of the Education Committee, and the work of the Chairman, my right hon. Friend the Member for Harlow (Robert Halfon), has been particularly valuable. He is right to remind the House that putting in more money does not necessarily equate to better outcomes. It is not as simple as that. Good outcomes are what matter, but good outcomes in themselves are not enough. We want excellent outcomes not only for those at school, but for those for whom school did not work. Many of them need a second, a third or even a fourth chance. I am, of course, delighted that my right hon. Friend raised the issue of further education, and I thank him for his kind comments.
My right hon. Friend talked about the importance of plans. It will certainly not be before time that we articulate a vision for further education, which is so often squeezed between the noises surrounding schools and universities. As my right hon. Friend rightly says, reducing inequalities in education has a wide impact, not least on people’s health—those who are better educated have better health—and it can also enable people to become socially mobile.
I was extremely pleased that the hon. Member for Wolverhampton North East (Emma Reynolds) reiterated the need to reform all education, highlighting further education. I assure her that we are very aware of the issue of maintained nurseries. I am aware that their need to know the situation is very pressing.
Anne Milton
I do not have much time, so if my right hon. Friend will forgive me, I will not.
My hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) raised the issue of exclusions. We are not complacent, but I should point out that the number of exclusions reached a peak in 2008. The hon. Member for Oxford West and Abingdon (Layla Moran) raised a specific issue about local schools and academies. I think it is a mistake always to blame structures, but I understand her underlying point about accountability, which is so important.
My hon. Friend the Member for East Worthing and Shoreham (Tim Loughton)—although he was corrected slightly by the hon. Member for Hackney South and Shoreditch (Meg Hillier), the Chairman of the Public Accounts Committee—raised the important issue of children’s social care. He drew attention to the key role that early years education and care play in the eventual outcomes for young people. He made a predictably powerful speech. I worked with him when I was in the Department of Health, and I am extremely pleased to see him continuing his excellent work, albeit from the Back Benches. I know he has also been a champion for his local schools and their funding, as indeed has my hon. Friend the Member for Colchester (Will Quince), who reiterated similar issues. He raised one thing that has long been a bugbear of mine: the need for more certainty in budgets. He mentioned three-year rolling budgets, but whatever it is we are talking about something that gives organisations certainty.
I have already met the hon. Member for Bristol South (Karin Smyth) and she raised the issue of inequality and social mobility and the importance of local industrial strategies. She, like the Chairman of the Public Accounts Committee, highlighted the need for us to have an articulate and adequate clear vision for further education. I am sure she is aware that Bristol is one of the five cities in our “5 cities” project trying to increase diversity in apprenticeships. I met a woman recently in Bristol who demonstrated exactly what can be achieved through apprenticeships. [Interruption.] She was a single parent, and I am sorry hon. Members on the Opposition Front Bench find this amusing, but I found it very moving: she had been unemployed for 10 years and had a small child, and because of that project she had got a level 2 apprenticeship and was really proud of what she had achieved, and proud that her daughter was now proud of what her mother was doing.
My hon. Friend the Member for Gloucester (Richard Graham) has been a huge champion of further education and rightly pointed out the need for much greater emphasis on levels 4 and 5; we are looking at that at the moment. He also recognised the need to increase the number of people undertaking qualifications at that level.
I know the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy) always tries to be helpful and it is always a pleasure to hear her contribution, and she rightly pointed out the inequalities that exist from those with sharp elbows fighting those tribunals.
We are investing an additional £1.6 billion in schools this year and next over and above the funding confirmed at the 2015 spending review. This significant additional investment means core funding for schools and high needs will rise from almost £41 billion in 2017 to £43.5 billion in ’19-20.
We recognise the cost pressures that schools, nurseries and further education are under, but the Government have achieved a huge amount since 2010: 1.9 million more children are being taught in good or outstanding schools; the attainment gap between rich and poor pupils has shrunk by 10%; a record proportion of disadvantaged students are going to university; and we now have a truly world-class technical education offer through T-levels and high-quality apprenticeships. There is massive reform in apprenticeships which has a life-changing impact. There has also been £100 million into the national retraining scheme, a partnership between the Government, the TUC and the CBI.
I am a lucky Minister to be able to contribute to debates that are often so well considered and passionate and I will never cease to be grateful to all those involved in education at every level. We all want the same thing: that whoever you are, wherever you are born and whoever you know, everyone has the chance to get on in life, and get a rewarding career and a job.
We on the Government Benches will not play party political games with education, but put children, young people and adults and education first and foremost, and we will not shirk the difficult decisions sometimes needed to make sure we achieve that end. Party political rhetoric has no place in a debate like this; it is, as many Members have said, the outcomes for those we serve that matter.
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
It is a pleasure to respond to this debate—a vital discussion on how this Government, and our Department in particular, support people across society. I wish to pay tribute to the hon. Member for High Peak (Ruth George). We have not always agreed on every single issue, but it is clear that she is a tireless campaigner in this area. Her speech was particularly measured. She highlighted some genuine concerns that she has been pushing on in the years since she was elected. She should be proud that, in some of those areas, she has already effected change, and I know that she is an incredibly valuable member of the Work and Pensions Committee. I had the pleasure of joining her for about four weeks. Securing this debate is a tribute to her efforts.
There have been some very good speeches. In the limited time that I have, I will not be able to cover all of them, but I and my ministerial colleagues have taken note of everything that has been said and, where relevant, we will make direct contact.
Last year, the Department supported 20 million people—more than half of the adult population. We spend somewhere in the region of £190 billion, slightly more than a quarter of Government spending, and the equivalent to the GDP of Portugal. We have always been proud to share the proceeds of our growing economy with, often, some of the most vulnerable people in society.
My hon. Friend the Member for Brentwood and Ongar (Alex Burghart) made a powerful point about the impact on workless households and what an enormous difference that work can make. My hon. Friend the Member for Bexhill and Battle (Huw Merriman) said that, probably, the Government’s greatest achievement is our record on employment. Since 2010, the employment rate has increased to a joint record high. Youth unemployment has almost halved; the female unemployment rate is at a record low; and nearly 1 million more disabled people are in work than in 2013.
Last year, wages grew at their fastest rate in a decade at 3.4%. We are going further to support those in work, with the introduction of the national living wage, which is worth £2,000 a year. The changes to the income tax threshold are worth £1,200 a year. We have seen the doubling of free childcare and the extension of childcare cost support through universal credit. Money being spent on childcare support has risen from £4 billion in 2010 to £6 billion today—a 50% increase. However, this jobs miracle is not a given. Our labour market is outperforming many other developed countries: more people have moved into work in the UK since 2010 than in France, Spain, Ireland, the Netherlands, Austria and Norway combined. What a stark contrast that is to the previous Labour Government, and every other Labour Government who have always left office with higher unemployment.
Many of the speeches have understandably focused on universal credit. We are creating a welfare system in which it pays to work. It simplifies a complex legacy benefits system that too often thwarted opportunities to work. I was heartened that my hon. Friend the Member for Bexhill and Battle highlighted the huge amounts of great work done by individual work coaches. One thing that most impresses me when I go on visits to jobcentres is the enthusiasm that work coaches have for universal credit, giving them, for the first time in a generation, the tools to provide personalised and tailored support. For the first time, claimants have a named work coach who helps them navigate the support for housing, training and childcare, leaving up to 50% more time for them to find work. In addition, they get the support of universal support partnerships, which responds in real time. This contrasts with the legacy benefits, which were hugely complex, with six different benefits across three different agencies: Her Majesty’s Revenue and Customs, DWP and local authorities. We saw from our own pieces of casework just how some of the most vulnerable people fell through the system. It is estimated that £2.4 billion of financial support was left unclaimed a year.
Justin Tomlinson
I will not take interventions just yet, as I need to make a bit more progress. A total of 700,000 of some of the most vulnerable claimants have missed out, on average, on £230 a month. These are some of the people where £5 either way makes a real difference. We have removed the 90% tax rate for some, and the hated 16, 24 and 36-hour cliff edges.
However, it is right to say that improvements are needed. Many of the Members who have spoken powerfully today have helped to change universal credit since its inception. There is still much more to do, but we all welcome the additional £4.5 billion-worth of investment into universal credit set out over the last two Budgets, which means that we will be spending £2 billion more on universal credit than under the legacy benefits.
Justin Tomlinson
I will give way shortly.
We have seen changes to advanced payments. We introduced the two-week run-on for housing benefit for existing claimants and, in April 2020, an additional two weeks for ESA, JSA and income support claimants as they migrate over. We have scrapped the seven waiting days. Rightly, the Secretary of State is putting a real focus on looking at alternate payments, whether that is paying direct to the landlord or paying more frequently. We have increased the work allowance by £1,000, worth £630. We have extended the exemption for the minimum income floor for the self-employed. We are continuing to listen to these debates to make further improvements.
Chris Bryant
I have constituents who were housed by Rhondda Housing Association. They were on the old benefits, but because they have been moved by the housing association to new properties, still with the same housing association, they have been moved by the DWP on to universal credit and have to start from the very beginning. The bulk payment system and the payment directly to the housing association means that they have lost out on 11 weeks of housing benefit and, consequently, are suddenly in arrears having done nothing wrong. Will the Minister please make sure that this is put right for my constituents?
Justin Tomlinson
The hon. Gentleman is absolutely right—we have to make the transition as smooth as possible, where possible sharing data and working with support organisations.
That brings me neatly—this is why I was right to take the hon. Gentleman’s intervention at that point—on to the key point. Many of the people who will be in the benefits system are incredibly vulnerable. They do not have the family support—the network—that can help them to deal with life’s challenges as they come towards them. My ministerial colleagues and I work closely with charities, stakeholders, Members from all parties, and the Work and Pensions Committee. We also work with those with genuine, real-life experience, because they will not only raise, with their experiences, what needs to be improved, but can help with the training and guidance of our frontline staff.
Maria Eagle
I know this is a small point in the overall scheme of universal credit, but I mentioned my constituent Antony Hamilton and the issue he has in doing his A-levels while being a bit older because of his special educational needs. I would be grateful if the Minister could confirm whether anything could be done to help Antony.
Justin Tomlinson
The hon. Lady made a powerful point about Antony, and the relevant Minister will contact her to discuss it further.
The key for us is partnership working. On domestic abuse, we are rightly working with Women’s Aid and Refuge to help with training and guidance, and to strengthen our ability to identify, refer and support. We are working with organisations such as Barnardo’s and the Children’s Society to strengthen opportunities for care leavers. Ex-offenders are working closely with the Ministry of Justice to make sure that their universal credit claim is in place before they leave prison so that no people are falling between the gaps. On homelessness and rough sleeping, we are working with a number of organisations. Only today, Crisis said that over the past two years the Government have been showing drive and energy.
Justin Tomlinson
I am sorry but I do not have time to give way. The duty to refer change that was brought in in October will be addressing the points that the right hon. Gentleman made.
This party is committed to supporting the most vulnerable. Household incomes have never been higher. Income inequality has fallen. Risks of low income and material deprivation for children and pensioners have never been lower. The incomes of the poorest fifth are up by £400 in real terms, with 300,000 fewer children in absolute poverty. We are now spending £50 billion a year in supporting those with disabilities and long-term health conditions—£4 billion higher than in 2010. We, as a Government, are determined to help the most vulnerable. This is what drives me and many Members across the House who are here today. This Government are determined to get it right for the people who need the most support.