Grand Committee
Arrangement of Business
The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)
My Lords, the hybrid Grand Committee will now begin. Some Members are here in person, others are participating remotely, but all Members will be treated equally. I ask Members in the Room to respect social distancing. If the capacity of the Committee Room is exceeded or other safety requirements are breached, I will immediately adjourn the Committee. The time limit on the first debate is one hour.
Climate Change Act 2008 (Credit Limit) Order 2021
(3 years, 6 months ago)
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Lord Callanan
That the Grand Committee do consider the Climate Change Act 2008 (Credit Limit) Order 2021.
Relevant document: 3rd Report from the Secondary Legislation Scrutiny Committee
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, I beg to move that this order, which was laid before the House on 13 May 2021, be approved.
The question of how we act on climate change is perhaps one of the most pressing issues of our time. Climate change is here—this Government absolutely accept that and are determined that the UK play its part in upholding the Paris Agreement and driving down our own greenhouse gas emissions. This Government are committed to decarbonising the UK economy while of course, at the same time, driving economic growth, and to meeting our ambitious targets for net zero emissions by 2050. We were the first major economy in the world to set a legally binding target to reach net zero carbon emissions across our economy by 2050, and we have shown that rapid progress on decarbonisation is possible alongside a thriving economy. Our emissions are down by almost 44% across the last 30 years and our economy has grown by 78% during the same period. We are currently in the process of reaching a significant milestone in approving legislation to enshrine the UK’s sixth carbon budget in law, proposing a target that would reduce greenhouse gas emissions by 78% by 2035, compared to 1990 levels. This is a huge commitment and one which the Government are working flat out to achieve.
Turning to the topic of today’s debate, under the Climate Change Act 2008 the Government must set a limit on the number of international carbon units that can be credited to the net UK carbon account for each budgetary period. These carbon credits represent the reduction or removal of greenhouse gas emissions overseas. The legislation we are debating today sets a limit on the net number of international carbon credits that may be used to meet the fourth carbon budget, which runs from 2023 to 2027. The Climate Change Act, passed with near unanimous support in this House, allows for the flexibility of using carbon credits to meet a carbon budget. The order will set the credit limit for the fourth carbon budget at 55 million tonnes of carbon dioxide equivalent, which is about 2.8% of the total carbon budget. This is the same amount of flexibility as the House agreed for the second and third carbon budget credit limit orders. However, I highlight that this legislation does not commit the UK Government to buying international credits: as we have witnessed with previous carbon budgets, the Government have a strong track record of delivering clean growth and have not used any of our allowances on other budgets to date.
We continue to put forward ambitious plans to meet future carbon budgets, including through our bold sector strategies, and are committed to meeting our world-leading targets through domestic action. Noble Lords should be aware that the credit limit set through this legislation excludes any net use of credits that result from the operation of the European Union Emissions Trading Scheme. The exclusion is required because, while the UK Emissions Trading Scheme replaced the UK’s participation in the EU ETS on 1 January 2021, Northern Ireland electricity generators continue to participate in the EU ETS and will therefore receive EU ETS allowances within the fourth budgetary period.
The role of the Climate Change Committee in providing independent expert advice to government on climate change mitigation and adaptation is widely accepted as global best practice. The Government’s net zero target covers the whole of the UK, and all four parts of the union have an integral role to play in delivering the Government’s carbon budgets leading up to 2050. As such, we of course also work closely with our partners in the devolved Administrations in order to achieve our climate goals.
In determining the appropriate credit limit for the fourth carbon budget, which is the subject of the present discussion, the Government have considered the advice of the Climate Change Committee and the views of the devolved Administrations. All parties agree that the purchase of international credits should not replace domestic abatement when delivering our net zero target. While the Climate Change Committee and the devolved Administrations recommended a zero-credit limit, the Government have concluded that it is best to maintain a small amount of flexibility over the fourth carbon budget period.
As a Government, we have undertaken our own robust analysis to validate our position and have considered the range of factors required by the Act, including the economic, fiscal, social, scientific and international circumstances. We judge that this flexibility will continue to ensure that the Government can best deliver our carbon targets more effectively and be resilient to unexpected changes in future emissions.
We are extremely grateful to our independent advisers for their expert analysis and advice, and to the devolved Administrations for their valuable ongoing engagement. We look forward to working closely on the fundamental decisions that we will need to take over the coming years in order to drive forward this progress.
The Government recognise the significant advantages that the net zero transition can bring, in addition to the essential benefits of ending our contribution to global warming. Now is the time to double down and decrease our emissions further and faster. Ahead of COP 26, we will bring forward further bold proposals, including our net zero strategy, to cut emissions and create new jobs and industries across the whole country, going further and faster towards building a stronger, more resilient future and protecting our planet for this generation and those to come.
As for the legislation for debate today, the Government’s sustained drive ensures that we are on track for the fourth carbon budget. However, as we have outlined, in our view it is still prudent to allow ourselves a small amount of flexibility in the future in order to manage the uncertainty in emissions projections and to continue to deliver emissions reductions in the most prudent and fair manner for the whole of the UK. I therefore commend this order to the House.
Lord Bradshaw (LD) [V]
My Lords, the Government are to be congratulated on the progress they are making so far and on not drawing down credits from abroad. However, the going might get tougher now. We have probably taken into account quite a lot of the low-hanging fruit, and getting nearer to the target will demand more and more effort.
The resistance of the transport industry to economy in CO2 is notorious. Interestingly, in a referendum this weekend the Swiss voted not to take on board some of the tougher decisions that need to be made if people really are going to economise in the use of transport. Economy is particularly needed in air transport and in diesel and petrol-fuelled motor transport.
The Minister said that we are keeping some overseas credits at our disposal, but could he venture to suggest whether this will really happen? If we undertake to plant 2 million acres of forest in the United Kingdom, we can be fairly certain that that will be done and measured. If we are relying on other countries to take carbon-hungry technologies or practices out of commission, it will be much more difficult to monitor whether they actually do so and whether the climate in fact ends up benefiting.
So, it is good to see that we will rely more on ourselves, because that is only prudent for an economy that prides itself on being at the forefront in this regard. However, if the going is to get harder and as decisions become more difficult—for example, if there are to be restrictions on how and when people use their cars—we will come up against resistance. The Government will need great resolve if they are to stick to their guns and make sure that we secure the anticipated carbon reductions.
Lord Bourne of Aberystwyth (Con) [V]
My Lords, it is a great pleasure to follow the noble Lord, Lord Bradshaw, who has such a breadth of knowledge in this area, particularly in the realm of transport.
I thank my noble friend the Minister for setting out the effect of this order. Before I turn to it, I congratulate the Government on adopting the sixth carbon budget from the Climate Change Committee, covering the five-year period from 2033 to 2037. Doing so will set in law the ambition of slashing emissions by 78% by 2035, based on 1990 emissions levels. Also, significantly, this carbon budget will incorporate the UK’s share of international aviation and shipping emissions for the first time; that is most important. Indeed, this was an issue at Paris and since. I warmly welcome this.
The budget keeps us on track with the Paris Agreement goals. It is important to acknowledge the progress that has been made. We have overachieved against the first and second carbon budgets, and we are on target to outperform against the third. In the light of the significant cuts in greenhouse gases across the economy, in industry in particular and in the power sector, it is worth pausing to congratulate the Government on the success we have had. It is heartening, too, to see the G7 in a better place on this following strong leadership from President Biden and others—including, indeed, our own Prime Minister.
The order relates to the fourth carbon budget, from 2023-27. It limits the net use of carbon units for this budgetary period to 55 million carbon units or 55 million tonnes of carbon dioxide. That sounds concerning, but it follows the approach taken in previous budgets, and we have not used those carbon units at all. I understand that—it provides headroom for flexibility; the only danger, of course, is that it sends out a slightly contrary signal. On the other hand, it is most important that Governments are judged by what they do. Judged on the actions, we have a good story to tell, although more needs to be done.
The Minister and the Government have announced that they do not intend to use this facility, intending instead, as in previous budgets, to draw solely on domestic action to fulfil the ambitious budgets that have been set. I accept totally that this is the Government’s intention, and they are likely to achieve that aim based on past action. I support that flexibility. I accept that there is an argument about the signal sent, but it is more important that we have that flexibility.
Ahead of COP 26, can the Minister please seek to ensure positive action in other areas, in particular promoting electric cars, buses and other forms of transport, and battery storage and production? That is important for achieving our climate change aims, but it would also boost the economy. This follows on from the Stern report during the 2000s, and subsequently it has become clear that it is possible to achieve positive growth at the same time as reducing emissions, as the Government have demonstrated. But it is important that we press ahead with the electric transport market and the battery storage market in particular, in which we can be world leaders.
I want to ask the Minister about two issues. He touched on both but I want to push him a little further, if I may. First, when will we receive the carbon budget for discussion in the House, with a view to ensuring that it is put into legislation? Are we still going to get it by the end of June, as originally intended? If not, when can we expect it? Secondly, will Northern Ireland, to which the Minister referred, continue to be treated separately? I was both an Energy Minister and in the Northern Ireland Office, so I know that the Northern Ireland market is separate. Will a separate position for Northern Ireland present any particular challenges regarding the EU ETS system?
In conclusion, I am keen to encourage the Government to take stronger action ahead of COP 26. We are in a strong position but clearly, more needs to be done. Overachieving in this area is certainly not a bad thing. I strongly support the order before us.
Baroness Jones of Moulsecoomb (GP)
That was a very interesting introduction from the Minister. I would like to explain the whole concept of urging economic growth when we live on a planet with finite resources, but I will have to leave that for another day. I would like to tackle quite a lot of what the noble Lord, Lord Bourne, said. The noble Lord, Lord Bradshaw, said that making reductions is going to require more effort, which is absolutely true. He also asked whether we can trust other countries’ measurements—that is a perfectly true point—and talked about a stronger, more resilient future. I would argue that this Government do not have a clue how to get us to that future. It is going to take government resolve, the noble Lord said. Resolve is not something this Government are very good at. They are very good at making promises—and at breaking them.
The noble Lord, Lord Bourne, congratulated the Climate Change Committee on its budget and said that the Government had overachieved. They overachieved by cheating, essentially, by not including shipping or aviation. That is how they cut carbon emissions. Of course, they have now included those, so we might actually get some more accurate figures. The noble Lord also mentioned the G7 and said how wonderful the Government were. The most leaderly thing I saw at the G7 was President Macron telling the UK to honour its treaty promises. Let us hope that the Government will do so.
For me, this statutory instrument is nothing more than an accounting trick that takes us further away from tackling the climate emergency and runaway global heating. The Government should be ashamed of themselves for not listening to the Committee on Climate Change, which said that these credits should be set at zero, as the Minister said. However, the Government knew better and instead of listening to what the Minister called “independent, expert advice” from the committee, chose to do their own “robust analysis” of the situation and came up with a different answer. Which part of government did that robust analysis? I would really like to know, so that I can target my comments a little more closely.
So, instead of following the advice, which was to set these limits at zero, the Government have allowed for an additional 55 million tonnes of CO2 to be spewed into the UK atmosphere and then bought back from other countries. Essentially, the Government are like a fire brigade that says, “We’re going to let these 55 houses burn to the ground, but it’s okay because we’ve paid for 55 houses in other countries to be saved—and it’s cheaper anyway”. That is the most appalling way to run a country and an even worse way of trying to deal with runaway climate change, which is what we are facing. It is absurd to try to trade these things when we should all be racing towards net zero across the world.
The Government talk about showing global leadership, but then they create loopholes to avoid doing much of anything. I accept that they have made moves in the right direction, including adding shipping and aviation when counting CO2 emissions, but how are other countries going to look up to this Government on anything to do with climate change when they will not listen to their own Climate Change Committee, which gives them independent expert advice? Quite honestly, the Government are cheating the system, and I think it is appalling. Each time I get a glimmer of hope that this Government understand the real emergency we are facing and the damage it could do to all of us, the rest of the planet and every economy worldwide, my hopes are dashed by statutory instruments such as this.
Lord Oates (LD)
My Lords, I thank the Minister for his introduction to this statutory instrument, which could not have been clearer. Its clarity is the reason I oppose the order. It is clear that it is unnecessary, ill-advised and sends precisely the wrong messages about what we as a nation will do when the going gets tough on meeting our climate change targets. As the noble Baroness, Lady Jones, and other noble Lords have said, and as the Minister pointed out, it is opposed by the Climate Change Committee, the Government of Scotland and the Government of Wales.
The Government have two arguments that they deploy in favour of these 55 million credits. First, they say they are on track to meet the fourth carbon budget, but they need to have flexibility just in case they do not. The Minister told us that 55 million credits were in place for the second and third carbon budgets. While I think there should be zero credits, in line with the views of the Climate Change Committee, the least the Government could have done is to begin to ratchet them down as a proportion of the budget. The Minister said that they represented 2.8% of the budget; he could have brought that down to 1% or 1.5%, but he and the Government have chosen not to do and are sending very worrying signals about what they will do.
The Minister said, as the Explanatory Memorandum points out at paragraph 7.5, that the UK is currently projected to meet the fourth carbon budget. The Climate Change Committee says that the Government are not on track to meet the fourth or the fifth carbon budget, so I wonder whether he can explain that discrepancy and who is advising the Government on their projections to meet the climate change budget.
The second argument that the Government use is:
“The ability to purchase credits could also enable the UK to support mitigation action in developing countries. A purchase of credits would contribute to the development of a global carbon market, which would reduce the global cost of action on climate change.”
This is of course an utterly spurious argument. Nothing would prevent the Government, if they set the credit limit at zero, purchasing credits and contributing to supporting developing countries in this way. This measure is a “get out of jail free” card for the Government when they start finding things difficult, and it is clear that things are going to be much more difficult politically if we are to meet our targets. We all know that. We know that the decarbonisation of our economy to date has been driven largely by the decarbonisation of the power sector. Although that has had impacts on the public, they have been indirect, and they are very different from what will happen as we move forward.
We absolutely need a signal of resolution from the Government and not a signal that they have a way out of this, not least because we are talking here about the fourth carbon budget, which, as I have said, the Climate Change Committee says we are not on track to meet. The fifth and sixth carbon budgets are much more demanding. If the Government are giving themselves wriggle room already on these budgets, it sends a very worrying signal.
There is an Arab proverb which I often quote in the context of climate change, because it is very apposite: commitments are cloud, but implementation is rain. This Government are extremely good at making commitments; they are extremely poor at bringing forward the actions needed to implement them. Not only are they bad at acting to implement them; they often do the opposite. Whether it is air passenger duty, coal mines or in other areas, not only do they not act but they do not signal the action that is needed. I hope that we can retain the cross-party consensus that existed when we set these targets, so that we can act to meet them. But we all need to work together and show absolute commitment to doing that, and we must not give ourselves wriggle room to get out of the commitments we have made.
Lord Grantchester (Lab)
Once again, the Committee meets to consider important matters concerning climate change. I thank the Minister for his explanation of the order before us. It follows the well-worn pathway of setting credit limits for the first three carbon budgets of 55 million metric tonnes of CO2 equivalent as flexibility insurance in meeting the UK’s legal obligations. As we have seen, there has been no need to utilise these credits for the first two carbon budgets, and the UK is on target to meet the third carbon budget. The Government are to be congratulated on that. They are also to be congratulated on accepting the advice of the Climate Change Committee on setting the carbon budgets. Last week, the committee approved a sixth carbon budget for the years 2032 to 2037. This CCC advice was endorsed also by the devolved Administrations.
However, there, the congratulations must end. It has not been generally accepted, as the noble Lord, Lord Oates, queried, that the Government are on course to meet the fourth and fifth carbon budgets and they have had to have a reset, with additional targets, to get back on track, as we discussed last week. The Government have gathered in the low-hanging fruit from earlier years, referred to by the noble Lord, Lord Bradshaw, and done the least development possible, paring back the budget and policies from necessary support for climate action.
The Government have now responded on the realisation of the climate emergency by setting net-zero targets for 2050 in accordance with the Paris Agreement to limit global warming, but they continue with self-congratulatory rhetoric, setting targets without clear action plans. As we discussed last week, they must come forward with policies, plans and strategies and engage in meeting these budget commitments.
It must be recognised that this order, which sets the traditional credit limit, goes against the advice of the Climate Change Committee, which was again endorsed by the devolved Administrations. That advice was to set a nil credit limit—that is, not to allow the purchase of carbon credits from overseas. Yes, none has been required in the past, but the CCC is right in its determination that the UK must meet its carbon emissions reductions domestically. It recommended that international emissions credits should not be allowed to be used to meet the fourth carbon budget and, furthermore, that any surplus from the third carbon budget should not be carried forward.
It is recognised that the UK Government intend to meet the new NDC and the 2030 target without the use of international credits. Inventory uncertainty projections and forecast inaccuracies are also recognised —they have always existed—but it is now time for clear actions, real leadership and determined signalling that the UK is meeting its obligations entirely through its own domestic obligations, as well as now taking the lead on international aviation and shipping.
I have just one question on the future development of policy. One necessary priority must be the development of batteries and energy storage; the noble Lord, Lord Bourne, identified this in his appreciation of this order. Can the Minister outline where and in which strategy and plan this priority will be answered by government plans, among the many opportunities they have identified?
The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)
I call the Minister. Oh—my apologies.
Lord Grantchester (Lab)
I am nearly finished.
The reasons given in the Explanatory Memorandum for continuing with budgetary insurance are no longer convincing. Sufficient flexibility must be managed through domestic commitments; offsetting is not a sustainable way forward. Unforeseen circumstances cannot provide a justification, and the UK has not previously contributed to the development of the global carbon market with any impact. The opportunity to purchase credits will only diminish as the world steps up with commitments to decarbonise. Consider the damage that would ensue should the Government need to go ahead with a carbon credit. They must self-insure and develop robust policies and plans to meet all the carbon budgets with clarity and certainty.
This is a missed opportunity that the Government could have taken as a decisive step, in this decisive decade, toward emissions reductions. This conclusion was also recognised by the noble Baroness, Lady Jones, in her remarks. The 2030 NDCs submitted at the UNFCCC last December should have set the tone. The sixth carbon budget will require more ambition and the pace of change to accelerate over the coming years. The confidence that could have been set by a zero-credit limit in this order needs to be corrected by the determination and announcement of policy developments before COP 26 later this year. I look forward to seeing the UK outperform and deliver. Labour understands the size of the task. The challenge is set.
Lord Callanan (Con)
First, I thank all noble Lords for their extremely valuable contributions to this debate.
This year, we in the UK find ourselves in the privileged position of being the president of the G7 and the host of COP 26. We are determined to use these key international moments, as noble Lords saw at the G7 earlier this week, to promote ambitious action to deliver the transformational change required by the Paris Agreement. In line with this, it is imperative that we continue to be bold and ambitious in not only our commitments but our actions, as the noble Lord, Lord Oates, pointed out, to deliver progress against climate change.
To reiterate what I said earlier, our position remains that the Government intend to meet all our targets through domestic abatement. International credits merely afford us a potential flexibility to ensure a cost-effective approach to reducing carbon emissions when managing uncertainty in historic and future emissions.
As usual, we have had a very interesting debate. I will pick up on some of the points raised. We acknowledge the progress pointed to by the noble Lord, Lord Bradshaw, and other noble Lords, including my noble friend Lord Bourne, and the success we have had so far in decarbonising the UK economy to date. Many developing countries plan to sell credits in future, but my noble friend is absolutely right that these must be of the very highest quality. We are using our international climate finance to ensure that developing countries have the capacity to meet this bar and access finance through the carbon market.
On the action that the Government are taking to decarbonise transport, which my noble friend Lord Bourne also asked about, we recently announced that the UK is embarking on a comprehensive transport decarbonisation plan. This will be a bold, ambitious programme of the co-ordinated action needed to end the UK’s transport greenhouse gas emissions by 2030 and, at the same time, ensure that the transport sector plays its part in delivering our legally binding carbon budgets. The plan will think in terms of not only modes of transport but technology and places. Part 1 of the plan was published in March 2020, with part 2, containing policies and proposals, expected to be published shortly.
We will also commit to communicating our public engagement approach to our net-zero strategy to generate widespread awareness, and, hopefully, acceptance, across the UK, because achieving the net-zero target will be a shared endeavour requiring action from everyone in society—people, businesses and government. Therefore, we are increasing our work on public engagement on net zero, both in communicating the challenge and in giving people a say on shaping future policies.
I have addressed a number of my noble friend Lord Bourne’s questions, but I am sorry to tell him that he missed the debate on the most recent carbon budget. It was debated in this House last week; the noble Lords, Lord Oates and Lord Grantchester, were present, with a couple of other Peers. It still has to go to the House of Commons, but I am afraid that my noble friend has missed his opportunity to contribute to that one.
On Northern Ireland and the emissions trading scheme, Northern Ireland power plants have remained in the ETS under the Northern Ireland protocol, but all other emissions in Northern Ireland remain under the UK Government’s coverage.
The noble Baroness, Lady Jones, asked why we chose not to set a credit limit at zero tonnes, as was recommended by the Climate Change Committee. I can tell her that the Government intend to meet our net-zero target and our interim carbon budgets through cutting our domestic carbon emissions. As I said earlier, we are simply choosing to maintain the limited tools that we already have under the Climate Change Act to ensure that we can deliver on our carbon targets at the lowest possible cost, including the option of using international credits. Our internal analysis reaffirmed that this level is suitable to account for any potential uncertainties.
The noble Lord, Lord Oates, implied that we could have sought to deliver a lower level for the credit limit order. Again, I remind him that our analysis indicates that any lower level might not provide sufficient flexibility to manage the uncertainty associated with the inventory using only credits.
The noble Lords, Lord Oates and Lord Grantchester, asked whether the Government are on track to meet carbon budgets 4 and 5. We are taking decisive action to ensure that we deliver on both. Ahead of COP 26, we will set out our ambitious plans across key sectors of the economy, such as the energy White Paper and the industrial decarbonisation strategy. These will build on the strong recent progress that we set out in the 10-point plan and will culminate with the net-zero strategy later in the year.
The noble Lord, Lord Grantchester, asked about future carbon budgets. I remind him that this current legislation only concerns carbon budget 4, of course. We will consider the limit for carbon budgets 5 and 6 at the appropriate times in the future, using analysis that is relevant to the context at the time.
The noble Lord also raised the use of other flexibilities in the Climate Change Act 2008. In response, I want to make it clear that we have no intention of using any other flexibilities afforded to us through the Act and we intend to meet our ambitious targets purely through domestic action.
I conclude by saying that, as I mentioned in my opening speech, this statutory instrument effectively continues the status quo, setting the same credit limit that we have held but not used for carbon budgets 1 to 3. This status quo has allowed the Government to deliver world-leading emissions reductions and encourage similar ambition in other countries across the world. I therefore commend this draft order to the Committee.
The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)
The Grand Committee stands adjourned. I remind Members to sanitise their desks and chairs before leaving the Room.
Arrangement of Business
The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)
My Lords, the hybrid Grand Committee will now resume. Some Members are here in person, others are participating remotely, but all Members will be treated equally. I ask Members in the Room to respect social distancing. If the capacity of the Committee Room is exceeded or other safety requirements are breached, I will immediately adjourn the Committee. The time limit for the following debate is one hour.
Conformity Assessment (Mutual Recognition Agreements) and Weights and Measures (Intoxicating Liquor) (Amendment) Regulations 2021
(3 years, 6 months ago)
Grand CommitteeRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Callanan
That the Grand Committee do consider the Conformity Assessment (Mutual Recognition Agreements) and Weights and Measures (Intoxicating Liquor) (Amendment) Regulations 2021.
Relevant document: 2nd Report from the Secondary Legislation Scrutiny Committee
The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)
My Lords, I beg to move that these regulations, which were laid before the House on 12 May 2021, be approved.
The statutory instrument we are debating today implements important aspects of international trade agreements within the Government’s trade continuity programme, ensuring continuity for UK businesses. This includes certain mutual recognition agreements that have been signed with the USA, Australia and New Zealand along with a free trade agreement with Korea that contains relevant conformity assessment provisions. The UK-Japan Comprehensive Economic Partnership Agreement and the UK-Canada Trade Continuity Agreement also include protocols on the mutual recognition of conformity assessment. From hereon in, I will refer to the mutual recognition elements of all of these agreements as MRAs.
These MRAs support trade in goods between the UK and its partners by reducing technical barriers to trade. Importantly, they do so in a way that protects the UK’s robust product safety system. The UK’s product safety legislation requires certain products to be assessed to ensure that they meet requirements in that legislation; sometimes, this assessment is required to be done by third parties. MRAs can reduce barriers by allowing this conformity assessment to be undertaken by a body based in the UK for export to the relevant country. We make the same arrangements for our partners under the agreement so that procedures carried out by recognised overseas CABs are accepted for our domestic regulations.
This SI also implements one aspect of the UK’s free trade agreements in the broader trade continuity programme. As part of the UK-Japan Comprehensive Economic Partnership Agreement, we will give greater flexibility to importers of a traditional Japanese spirit called single-distilled Shōchū. The SI amends specified quantity requirements applying in Great Britain so that bottles of single-distilled Shōchū may be placed on the market in Great Britain in one of the traditional Japanese bottle sizes of 900 millilitres.
Let me now address each of these areas in more detail, starting with the measures we are taking both to recognise overseas bodies and to appoint UK bodies under these MRAs before moving on to the measures we are taking for single-distilled Shōchū bottle sizes.
To begin, let me address provisions for goods in scope of the UK’s MRAs that are assessed by UK conformity assessment bodies for export overseas. This SI provides for the Secretary of State to designate CABs as competent to assess that certain goods comply with the regulatory requirements of our partners under the MRAs as set out in a schedule to the SI.
For example, this means that where a UK-based CAB would like to be recognised by the Australian authorities as capable to assess goods under Australian machinery requirements, the body can apply to UKAS, the United Kingdom Accreditation Service, to be accredited as fit to test against those Australian requirements. The Secretary of State may then designate the body under the UK’s MRA with Australia to assess machinery for export to Australia. As a result, a UK manufacturer that uses the services of that UK CAB can now use the same body to do its accreditation for the Australian market and does not need to identify and start contracting with a CAB actually operating in Australia. Therefore, manufacturers are able to place products on the Australian market more cost-effectively, potentially passing those savings on to consumers.
I now move on to consider provisions for goods coming into the UK. Under the MRAs, the UK recognises the results of conformity assessment procedures carried out by recognised overseas CABs against domestic regulations. This SI makes it clear that assessments carried out by a recognised body based in one of our partner countries should be treated as equivalent to those carried out by a UK-approved body when relevant products are sold in Great Britain. These regulations do not change the detail of the requirements for third-party assessment, nor do they amend any requirements related to a product’s specifications. This means that the UK will maintain its robust product safety protections while continuing to reduce barriers to trade with our partners. The benefits are potentially significant here: trade with our MRA partners in radio equipment alone amounted to nearly £2 billion in 2019, although, of course, not all of these products will have required conformity assessment by a third party.
The regulations also provide for the Secretary of State to create a register of CABs that the UK recognises under the MRAs, defined as MRA bodies. This is communicated via the UK Market CAB database, a publicly available resource that can be used by businesses and regulators to verify quickly the status of CABs. These regulations also provide for Canadian accreditation bodies recognised by the UK under the UK-Canada Trade Continuity Agreement to be listed on the Government’s website.
This SI also provides that the Secretary of State, or a person authorised to act on their behalf, may disclose information to the other party to an MRA where required by an MRA. For example, we may communicate information regarding goods from the USA which have been suspended by UK enforcement authorities, as part of our co-operation commitments in the MRA with the USA. Disclosure will be made in accordance with data protection legislation.
This SI provides for a product known as single-distilled Shōchū, a spirit which is single distilled, produced by pot still and bottled in Japan, to be placed on the market in Great Britain in an additional bottle size, 900 millilitres. Prior to the UK-Japan Comprehensive Economic Partnership Agreement, single-distilled Shōchū bottled in Japan had been permitted in Great Britain, but only in quantities of 720 millilitres or 1,800 millilitres, in addition to the usual specified quantities for prepacked spirits. Providing for sale of this traditional bottle size was very important to Japan during negotiations of the UK-Japan Comprehensive Economic Partnership Agreement. This artisanal product is already on sale across the UK in other bottle sizes, so this change should not have a significant impact on consumers in Great Britain.
I shall now speak to the territorial scope of these regulations. For some provisions, the regulations will make amendments for Great Britain only, while others extend to the whole of the UK. Regulations 4 and 5, relating to recognition of conformity assessment by relevant overseas CABs, extend to Great Britain only. Northern Ireland will continue to recognise the results of conformity assessment procedures done under the mutual recognition agreements between the EU and the relevant third country. This is in accordance with the terms of the Northern Ireland protocol to the withdrawal agreement. Regulation 6, relating to the Secretary of State’s power to designate UK-based bodies under these agreements, will extend to the whole of the UK. CABs across the UK can therefore be designated under the MRAs.
Regulation 7, relating to information sharing, will also extend to the whole of the UK, to enable the Secretary of State to share relevant information required under the MRAs. Regulations 8 and 9, amending the permitted bottle sizes for single-distilled Shōchū, extends to Great Britain only. In accordance with the Northern Ireland protocol, single-distilled Shōchū will continue to be permitted on the Northern Ireland market in 720-millilitre and 1,800-millilitre bottle sizes, in addition to the usual specified quantities for prepacked spirits.
In conclusion, we are introducing these regulations to give effect to provisions which keep our barriers to trade low with some of our significant trading partners. As I have said, we do this while preserving our robust protections for product safety, as a responsible Government. This SI will provide certainty on the UK’s approach to recognising and designating CABs for certain products under the MRAs, as well as making necessary amendments to allow the 900-millilitre bottle size of single-distilled Shōchū to be placed on the market in Great Britain. I therefore commend these regulations to the House.
Lord Lansley (Con)
My Lords, I am glad to follow my noble friend the Minister, who set out the purposes of these regulations fully and clearly. First, I draw attention to the register of interests in that I am the UK co-chairman of the UK-Japan 21st Century Group. As that may imply, I wish to speak only to Part 3 of these regulations, which relates to Shōchū.
I raised an issue relating to this towards the conclusion of the passage of the then Trade Bill—now the Trade Act 2021—because of the implications of timing. Before I get to that, my noble friend explained Shōchū, which is a distilled liquor that is stronger than sake but not as strong as whisky. As he said, it is an artisanal product in Japan. The bottles in which it is prepared and sold there are an integral part of its overall presentation, so I completely understand why this was something that our Japanese friends particularly wanted to see made available in this country in the same way as it would be sold and marketed in Japan.
For those who are of a certain turn of mind, I realise that I have 10 minutes but I promise not to take up all the time available. One of the perversities of our Hybrid Sittings is that the less you have to say, the more time you have to say it. Last week, I had to talk about the carbon budget in seven minutes, but by contrast I now have 10 minutes to talk about Shōchū. Such is life.
Those with an interest in the media may recall the 1956 American film “The Teahouse of the August Moon”, with Marlon Brando and Glenn Ford, which looked in a whimsical way at the American occupation of Japan after the war. Of course, the teahouse in fact purveyed not tea but sweet potato Shōchū—and a successful film it was, too.
The question that came up in the Trade Bill debates was that, in the UK-Japan Comprehensive Economic Partnership Agreement, the relevant Annexe 2-D—for the benefit of those who want to go and look for it, it is on page 693 of the agreement—makes it clear that the United Kingdom is obligated to make the traditional bottle of five gō available in the United Kingdom; one gō is 180 millilitres, so five gō is the 900-millilitre bottles. The relevant footnote to that obligation says:
“The United Kingdom shall expeditiously take necessary steps to ensure the fulfilment of this obligation and shall notify Japan no later than 90 days after the date of entry into force of this Agreement of the completion of its domestic procedures necessary for the fulfilment of this obligation.”
The point at issue then was that the Trade Bill was going beyond 90 days. In the event, the 90 days were up on 30 March this year, the Trade Bill did not receive Royal Assent until 29 April, these regulations was laid on 12 May and we are approving them on 15 June. I think no harm is done, and our Japanese friends have been entirely understanding at each stage that we have trespassed beyond the 90 days and of why we have done so. For the benefit of those writing trade agreements in future, it would probably be best if they put timetables in and related them to the completion of the parliamentary procedures rather than the entry into force because the entry into force was done under a provisional application prior to parliamentary scrutiny.
The only other point I want to make is that, as my noble friend said, there is a different territorial aspect to this. By virtue of the Northern Ireland protocol, we cannot in this agreement, which is a continuity-plus agreement, vary the rules as they apply in the European Union single market, so the traditional five-gō bottle will be available in Great Britain but will not be available in Northern Ireland. As it happens, this is not strictly consistent with the text of the UK-Japan Comprehensive Economic Partnership Agreement, which states:
“Single distilled shochu … produced by pot still and bottled in Japan, shall be allowed to be placed on the market of the United Kingdom in traditional bottles of four go … five go … or one sho.”
One shō is 1,800 millilitres. There is a discontinuity between the text of the agreement, the treaty as such and what we are able to fulfil in our domestic procedures. That is a pity. Given that this is the first time we have had a continuity-plus agreement implemented into legislation, it has in a very modest way illustrated the complexity of the problems that we will have to encounter if the Northern Ireland protocol continues to impose these kinds of distinctions between the Great Britain market and the Northern Ireland market.
Lord Lennie (Lab) [V]
My Lords, I am grateful to the Minister and the noble Lord, Lord Lansley, for their contributions thus far to this debate.
As we have heard, these regulations give effect to mutual recognition agreements between the UK and the USA, Australia, New Zealand, Canada, South Korea and Japan. The regulations also allow specific products assessed by those bodies in countries recognised under MRAs to be placed on the market in Great Britain and enable the Secretary of State to designate and monitor UK conformity assessment bodies to assess products against the other party’s requirements.
The Secondary Legislation Scrutiny Committee noted that these regulations are the first use of the power to implement free trade agreements under Sections 2 and 4 of the Trade Act 2021. As the noble Lord, Lord Lansley, commented, the instrument also implements Annexe 2-D of the UK-Japan Comprehensive Economic Partnership Agreement by allowing single-distilled Shōchū to be placed on the market in the UK in the new quantity of 900 millilitres. I recognise that this an important statutory instrument for both businesses and consumers, with continuity and certainty even more important now as we look ahead to 19 July and our hopes for the beginning of the end of the current restrictions. I would therefore be grateful if the Minister could provide some clarity on a few areas.
In relation to UK policy on conformity assessment and accreditation of the situation under EU law as it applies in NI, the regulations set out the requirements for the accreditation of market surveillance as it applies in EU law to the Northern Ireland protocol. That continues to be the basis for accreditation policy. If there are any changes to the UK policy in future, will they require an assessment of the implications of any trade barriers between Great Britain and Northern Ireland, and how is that being considered?
In respect of registers of MRA bodies, the statutory instrument states:
“The Secretary of State may … compile and maintain a register of … MRA bodies … their MRA body identification numbers … the activities for which they have been designated; and … any restriction on those activities”.
Can the Minister confirm where he has outlined, or whether he will outline, the activities for which MRA bodies have been designated and what restrictions there are on those activities? The Secretary of State will also be able to designate a conformity assessment body—CAB—to assess products against other countries’ requirements. What criteria will the Minister use to consider whether the body is capable of fulfilling those functions and to ensure that it meets the requirements of a designated body? What parliamentary oversight will that body have?
The statutory instrument states:
“To the extent that these Regulations contain provision in the areas of the protection of human or animal life or health or environmental protection, the provision is consistent with maintaining UK levels of statutory protection in that area.”
However, in Section 2(7) of the Trade Act, UK statutory protection also extends to
“plant life or health … animal welfare … employment and labour”.
Do these regulations not cover those areas?
The Explanatory Memorandum states:
“The main direct cost to business will be the familiarisation cost associated with these Regulations; these are a one-off cost, estimated at £205,000.”
Does this fall equally on large companies and SMEs?
On divergence, the UK MRAs replicate the previous EU MRAs in substance, with the only substantive divergence from the EU being in the permission to allow the additional bottle size for single-distilled Shōchū. This poses the broader question of whether the UK could take a different approach to conformity assessments in future.
On 1 January 2021, the UK introduced its own product safety mark, which broadly mirrors the EU’s CE mark. According to the law firm Bird & Bird, the UK conformity assessment regime
“follows essentially the same principles as the previous CE marking regime, but with the safety and compliance standards, authorised representative/responsible person and notified body requirements all now being valid for the UK only.”
Despite being a UK ask, the EU-UK deal did not include an agreement on the mutual recognition of conformity assessments. This means that most goods produced in the UK that require certification for sale in the EU will have to go through a secondary conformity assessment in the EU in order to be eligible for export, resulting in extra costs to trade with our main trading partner. A lack of MRAs is unusual for comparable deals such as those between the EU and Japan, Canada and Switzerland, which all have MRAs. Even countries such as Australia and the US, which do not have trade deals with the EU, have MRAs. Does the Minister regret not having an MRA in the TCA? Will the UK continue to share information on CABs with the EU? I look forward to the Minister’s response.
Lord Callanan (Con)
My Lords, first, I thank both noble Lords for their valuable contributions to this debate.
It is clear from what I said initially and from the contributions that this SI will maintain our robust product safety framework at the same time as reducing barriers to trade with some of our key trading partners. It does this by providing for the recognition in Great Britain of overseas conformity assessments for certain products under an MRA, while overseas bodies will be recognised in Northern Ireland under their country’s MRA with the EU; providing for the Secretary of State to designate UK CABs to assess against the requirements of our trading partners for certain products under an MRA; and amending rules in Great Britain to allow a traditional Japanese spirit to be imported in a 900-millilitre bottle size. In supporting this SI, we keep our trade restrictions low so that our manufacturers and consumers benefit from arrangements to minimise the duplication of conformity assessments.
My noble friend Lord Lansley noted with regard to Part 3 of the regulations, on Shōchū, that that amendment has been delayed beyond 30 March. As he pointed out, we let the relevant Japanese Ministries know that we were unable to implement the obligation by 31 March. As a fellow parliamentary democracy, Japan understood that it was important that the UK Parliament be able to appropriately debate the Trade Bill before we could introduce that provision. On my noble friend’s question about the distinction between Great Britain and Northern Ireland, he is correct that 5 gō bottles of 900 millilitres may be placed on the market only in Great Britain. I can tell my noble friend that there is express provision in the UK-Japan CEPA that applies in the event of inconsistency between the CEPA and the Northern Ireland protocol.
The noble Lord, Lord Lennie, asked whether changes in accreditation policy would affect Northern Ireland trade. The Secretary of State will consider the UK body’s competence against the partner country’s legislative, regulatory and administrative requirements. In making this judgment, he will of course consider the expert advice of the UK’s national accreditation body. The Trade Act provides for product safety and labour recognition, et cetera, and are they captured, to answer his other question. He noted that there are specifications in the Trade Act, and this SI maintains UK statutory protection. Where the specified regulations relate to protection of human health, human life, animal health or environmental protection, foreign CABs must assess against our existing domestic requirements. This is in accordance with our previous approach to MRAs.
The noble Lord also asked whether the UK could take a different approach to conformity assessments in future. In relation to MRAs, this SI is all about providing continuity for businesses. The UK is able to make its own policy decisions on conformity assessment and accreditation now that we have left the EU. Any future changes would be based on the UK’s best interests, with due consideration, of course, of any impact on the UK’s internal market. The noble Lord asked about the trade and co-operation agreement with the EU. Despite the UK ask, the EU-UK deal did not include an MRA. This is regrettable and will result in an extra cost to trade. As he noted, the UK sought such an agreement, but we were unable to secure it there.
I hope that that answers all noble Lords’ questions on this legislation, and I therefore commend these draft regulations to the Committee.
The Deputy Chairman of Committees (Baroness Healy of Primrose Hill) (Lab)
The Grand Committee stands adjourned until 4 pm. I remind Members to sanitise their desks and chairs before leaving the room.
Arrangement of Business
The Deputy Chairman of Committees (Baroness Pitkeathley) (Lab)
My Lords, the hybrid Grand Committee will now resume. Some Members are here in person, others are participating remotely, but all Members will be treated equally. I ask Members in the Room to respect social distancing. If the capacity of the Committee Room is exceeded or other safety requirements are breached, I will immediately adjourn the Committee. The time limit for the following debate is one hour.
Common Organisation of the Markets in Agricultural Products (Fruit and Vegetable Producer Organisations, Tariff Quotas and Wine) (Amendment etc.) Regulations 2021
Baroness Bloomfield of Hinton Waldrist
That the Grand Committee do consider the Common Organisation of the Markets in Agricultural Products (Fruit and Vegetable Producer Organisations, Tariff Quotas and Wine) (Amendment etc.) Regulations 2021.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, this instrument applies to retained EU law relating to the common agricultural policy, including the common organisation of the markets, or CMO. It uses powers in the European Union (Withdrawal) Act 2018 to correct deficiencies in retained EU law and enable functions to be exercised by UK public authorities.
First, the instrument fixes an error relating to the commencement of Part 4 of the Agriculture (Payments) (Amendment, etc) (EU Exit) Regulations 2020. There is doubt as to whether the amendments made by Part 4 of that instrument came into force, as intended, at the end of the transition period due to the error in the commencement provision of the instrument. To put this matter beyond doubt and ensure that the retained EU legislation has been amended as intended, this instrument revokes and remakes the amendments that Part 4 of the Agriculture (Payments) (Amendment, etc) (EU Exit) Regulations 2020 purported to make. Those amendments concerned fruit and vegetable producer groups, fruit and vegetable producer organisations and notifications of agricultural market information to domestic authorities. The instrument also revokes and remakes some provisions made by the Common Organisation of the Markets in Agricultural Products (Producer Organisations and Wine) (Amendment etc.) (EU Exit) Regulations 2020 concerning fruit and vegetable producer organisations that may not have taken effect due to the commencement error in Part 4 of Agriculture (Payments) (Amendment, etc) (EU Exit) Regulations 2020.
Additionally, this instrument remakes amendments to EU regulations relating to the fruit and vegetable and processed fruit and vegetable sectors and the fruit and vegetable producer organisation aid scheme, including, among other things, activities that can be funded under the scheme, the amount of aid that can be claimed and the requirements that the producer organisation must meet to be eligible for funding. No policy changes are made through these amendments; they simply minimise any ambiguity in the rules, which will apply to this legacy scheme in the UK until it is switched off in England.
The instrument also amends retained EU legislation to make specific provision for transnational producer organisations implementing an ongoing operational programme to continue to receive aid in respect of all their members based in the UK and the EU until the end of their ongoing operational programmes. These amendments are required to prevent the retained EU legislation being operationally deficient as a result of the application of Article 138 of the withdrawal agreement to ongoing operational programmes.
The instrument also remakes amendments to EU Regulation 2017/1185 to ensure that Defra and the devolved Administrations can continue to obtain certain production and price data from economic operators. The information is used for market management purposes. Defra and the devolved Administrations intend to maintain the collection and use of this information in the UK.
I turn now to the provisions that concern the administration of tariff rate quotas. The specified EU law relevant to this instrument sets out broad provisions on the administration of export tariff quotas that result from international agreements. The instrument seeks to make operability amendments, which are needed to give the Secretary of State the power to make detailed provisions in a future instrument for the administration of export licences for UK goods imported into third countries under tariff rate quotas, such as UK cheese imported into the United States. This in turn will allow UK exporters to continue to benefit from preferential market access, although other powers will be needed to ensure that traders in the Crown dependencies can access such quotas.
These amendments replace references to “EU” with “UK” and remove references to the administration of import tariff rate quotas, as these are covered by regulations made under the Taxation (Cross-border Trade) Act 2018. No policy changes are made by these provisions.
I turn now to the provisions concerning wine. We have included a minor change to entry 1 of the table at Annexe 9A of retained Regulation 1308/2013. This change will make it clear that the established wines referred to are those recognised as
“established protected designation of origin”
and “established protected geographical indications” of the type referred to in Article 107(2) of retained Regulation 1308/2013.
I hope I have assured your Lordships that this is a simple instrument needed to correct remaining inoperabilities in retained EU law to create an operable legislative framework to manage and administer many aspects of agricultural policy. I beg to move.
Lord Moynihan (Con)
My Lords, I am grateful to my noble friend the Minister for that clear explanation—a fascinating defence of correcting an error. It is in the spirit of recognising that she has clearly done a lot of work on this that I simply want to ask a few questions and draw her attention to a number of issues relevant to the statutory instrument.
I should add that my interests in the wine trade elements of the statutory instrument stretch back to being a member of the Select Committee of your Lordships’ House that looked into the wine trade in the UK and Europe, as well as to my membership of the Haberdashers’ Company wine committee. It is in that context that I wish to ask my noble friend the Minister a number of questions. I do so in gratitude to the WSTA, which has provided some very good briefings over recent months, as we have returned to this subject in the space of just two months to correct the error that my noble friend has kindly brought to the attention of the Committee.
The most significant change from leaving the single market has been the introduction of wine export certificates for English and Welsh wine exports to the EU. While the TCA has introduced a simplified certification regime that can be self-certified by producers without the need for costly laboratory analysis, which would have been the default outcome had the TCA not been agreed, the simplified system is still in my view—and in the view of many in the industry—paper-based but unnecessary. No other category of alcoholic drink is required to have an additional import certificate when entering the EU or the UK. I see no reason to maintain the requirement for wine coming into the UK.
The UK and the EU should surely agree on the forms that should now be scrapped completely for movements of wine between the two but, failing that, there is provision in the TCA to develop an electronic system, which we have debated in previous Committees on this subject. I would be very grateful if the Minister could confirm that that is being developed as a matter of urgency, hopefully by the end of the year.
The second item I want to raise—I am sure that the noble Baroness, Lady Ritchie of Downpatrick, will also raise this when she follows me—is the moving of goods into Northern Ireland. This is still a significant issue, as is well known to the Committee and the House. The Northern Ireland protocol requires goods sold in Northern Ireland to have a Northern Ireland or EU 27 food business operator identified on the label, but UK excise rules require an excise duty stamp as proof of payment of excise duty. This means that English producers must either produce specific labels for Northern Ireland or “oversticker”, which is costly and bureaucratic. Of course, there is a solution: get rid of excise stamps for spirits, since no other category of alcoholic drink requires proof of payment of excise duty.
Attached to the statutory instrument were a number of documents which the Government have published, technical notices which helped people prepare for the end of the transition period. In the spirit of removing ambiguities, I close by gently pointing out that, on the food and drink labelling changes, there is a guidance note on completing the wine exports self-certificate, which everyone now has to complete. It says with regard to box 7:
“Only complete this section if the place of unloading is different from the consignee’s address you entered in Box 2.”
However, box 2 is for the serial number. Perhaps officials could have a little look at that to make sure that the next edition of that form, which is now required, is corrected. But in the spirit of thanking my noble friend for bringing this statutory instrument to the attention of the Committee and removing ambiguities that had otherwise existed, I confirm that I support the statutory instrument and I think that both he and his officials have done some excellent work in clearing up the uncertainty—not necessarily an error, but an uncertainty—that has led to this statutory instrument.
Baroness Ritchie of Downpatrick (Non-Afl) [V]
I thank the Minister for his explanation of these regulations. It is a pleasure to follow the noble Lord, Lord Moynihan, on this issue. I note that this instrument, which is subject to the affirmative procedure, would amend several retained EU regulations relating to the common agricultural policy and the common organisation of agricultural markets for the fruit and vegetable producer organisations aid scheme. Basically, in my humble opinion, they seem to deal with marketing operating measures. I further note that, according to some research, this SI and previous related regulations are essential to prevent significant disruption at the end of the transition period.
The Minister stated that the regulations would not introduce new policy but would preserve the regime for supporting rural development, as well as updating other aspects of retained EU law to reflect amendments made by the EU in 2019 and 2020. In fact, the Minister in the other place, Victoria Prentis, made referrence to that fact and stated it directly as part of her contribution to that debate in the other place. Before moving to the actual SI, which I know is striving to remove those ambiguities as we proceed on the path following our exit from the EU, it is important that economic stability is created within the farming sector. For the landowners, the tenant farmers who are the producers, for the wider rural network and then for the processers, retailers and consumers, it is important that this legislation allows that to happen.
I hope the Minister can provide assurances to the Committee that this will underpin our agricultural and agri-food industry. Maybe she can provide an update on this issue in tandem with the implementation of the Agriculture Act of last year. Only last week, we had a debate in your Lordships’ House on the Hungry for Change report, where we discussed the need for the Government to be working with charitable organisations and other bodies in both the central and local government sectors to ensure greater accessibility to environmentally sustainable food for all at a reasonable cost. I am in no doubt that we all need to work together to develop a food system that becomes resilient to shocks in our system and to safeguard all our communities and people. Will the Minister indicate that this SI will enable us along the road to do just that? Will she provide assurances to that effect?
Moving on to the SI, I note that the regulations contained therein will fix an error relating to the commencement of Part 4 of the Agriculture (Payments) (Amendment etc.) (EU Exit) Regulations 2020. Will the Minister elaborate on the nature of the error, why it has to be corrected and how this correction will contribute to the marked importance of agricultural products to the rural and wider economy?
The noble Lord, Lord Moynihan, referred to the Northern Ireland protocol, the attendant issues that have arisen out of Brexit and the difficulties for products being imported into Northern Ireland from GB because Northern Ireland will still have to adhere to EU rules. Therefore, with the operation of the Northern Ireland protocol, where agri-food products are governed by this instrument, what is the relationship between it and the protocol? I presume that Northern Ireland will continue to be governed under the original EU rules.
We do not want any trading barriers between Northern Ireland and GB and vice versa. Therefore, could the Minister indicate whether, in negotiations with the EU, the Government will pursue a Swiss-style arrangement with it, which would eradicate a large proportion of the problems for SPS?
Furthermore, will this instrument ensure that Defra and the devolved Administrations continue to obtain certain production and price data from economic operators, and how will this manifest itself? What will be the intersection between this statutory instrument and the common frameworks for agricultural support; food labelling and compositional standards; plant health and varieties; and seeds? I indicate my interest as a member of the Common Frameworks Scrutiny Committee. Can the Minister provide an update in relation to this matter as well?
It is worth noting that many of these SIs, which deal with EU exit matters, coincide with many of the issues of divergence that are covered by common frameworks. It is further interesting to note that a large proportion of these frameworks relate to Defra and are at very early stages. Perhaps the Minister will be kind enough to indicate when we will receive the final frameworks for scrutiny. Why are they being held up? Perhaps she could write to me on those particular issues—I look forward to that.
Baroness McIntosh of Pickering (Con)
I am grateful and delighted to follow the noble Baroness, Lady Ritchie. I commend my noble friend for so eloquently introducing the regulations before us today and correcting, in her inimitable way, the earlier error, which we appreciate greatly. I always hesitate when any noble friend responding to these debates claims that these are technical not policy changes: there is one policy change that I hope that my noble friend will look favourably on when these regulations possibly come before us again.
I have a number of questions for my noble friend. Paragraph 10.2 of the Explanatory Memorandum states:
“Defra has engaged with the Devolved Administrations on its approach to CAP legislation under the European Union (Withdrawal) Act 2018”.
My first question is: what has the nature and exact form of that consultation and engagement been? I do not just refer to the devolved Administrations: what representations have been heard by, or consultation had with, the relevant agricultural representatives covered by the regulations?
My noble friend said that the existing regulations will eventually be switched off. What will the timeframe for the regulations be? Is it bound by the new reforms that we are currently looking at in the form of ELMS and replacing the CAP provisions? It would be interesting to have that confirmed.
Like my noble friend Lord Moynihan and indeed as my noble friend the Minister encouraged us to do yesterday, when she so wittingly and carefully looked at this—I have taken a leaf out of her book and am grateful to her for making this suggestion—I have taken the opportunity to look at some of the technical notes. I particularly looked at those on the UK transition —I am not sure whether I am entirely the wiser as a result—and the food and drink labelling changes.
My first question relates to the provision for honey. The guidance states that GB honey is no longer to be called EU honey but a “blend of EU honeys”, a “blend of non-EU honeys” or a
“blend of EU and non-EU honeys”.
Can my noble friend make a guesstimate of the cost of this? I note that paragraph 12.3 of the Explanatory Memorandum says that no impact assessment has been prepared and that the department is
“confident that the changes … fall below the £5m per annum threshold for net direct costs to business”.
However, if it applies to honey—I will come to the wine industry in a minute—it could be a sizeable cost. It would be interesting to know why no impact assessment has been done.
Assuming that there is a cost to having these labelling provisions, because one label will be prepared for the EU/Northern Ireland market and another prepared for the British market, could these costs not be extinguished if we signed up to the SPS provisions of the EU? If the Government felt unable to do that, could we not sign up to the less onerous provisions agreed under what I call the New Zealand version, as a deal has been done between New Zealand and the EU with what I understand are less onerous provisions than the SPS provisions of the rest of the EU? A lot of producers would like to know why, if they are good enough for New Zealand and the EU, they are not good enough for British exports to Northern Ireland and the EU.
I will briefly come on to wine—and who would not want to? It is interesting to note that the original reason many people were persuaded to join the European Union was to get cheaper wine. Now we are told that we should embrace the UK-Australia free trade agreement because we will get cheaper wine. I hope we will get more exports of Scotch whisky to Australia by the same token. With reference to the requirement for different SKUs for the different markets—which for wine means different labels, provisions and costs—which I am sure my noble friend will recall we discussed when this matter was last debated some weeks ago, a very simple provision could be introduced which would require a UK address on the label, as is currently allowed for food and drink, making one UK label acceptable for both the UK and the EU market.
I respectfully ask my noble friend why we cannot do this for wine. I know that my honourable friend the Minister in the other place, Victoria Prentis, has met the wine industry and warm words were exchanged. While warm words are welcome, we need hard action. I hope my noble friend will look favourably on the suggestion which, I repeat, has been made on a number of occasions by the wine sector and would save it an awful lot of bother and cost. We could simply make that provision in the new label.
Lord Bhatia (Non-Afl) [V]
My Lords, this instrument, which is subject to the affirmative procedure, would amend several retained EU regulations relating to the common agricultural policy and the common organisation of agricultural markets, which is a fruit and vegetable producer organisation aid scheme. It fixes an error relating to the commencement of Part 4 of the agriculture payments EU regulations 2020.
This instrument remakes some amendments made by the common organisation of the markets in agricultural products regulations relating to fruit and vegetable producer organisations that did not take effect due to the commencement error outlined previously. It makes amendments relating to transnational producer organisations taking part in the fruit and vegetable producer organisation aid scheme. It amends legislation relating to trade provisions to allow for the administration of tariff quotas for agricultural products.
There was an error in the previous instrument. The error included in the regulations led to doubt as to whether the provisions included in Part 4 took effect on the implementation period’s completion date. If Part 4 did not commence on the implementation period’s completion date as intended, it could have a knock-on effect for some provisions included in the regulations. This instrument puts this matter beyond doubt and ensures that there is legal certainty that the retained EU legislation has been amended as intended.
Finally, the Agriculture Minister has stated that the regulations were essential to prevent significant disruption at the end of the transition period. The Minister also stated that the regulations would not introduce new policy but would preserve the regime and support development. Can the Minister explain who made this error and what it has cost?
The Deputy Chairman of Committees (Baroness Pitkeathley) (Lab)
The noble Baroness, Lady Gardner of Parkes, has withdrawn, so I call the noble Baroness, Lady Jones of Whitchurch.
Baroness Jones of Whitchurch (Lab)
My Lords, I thank the Minister for her helpful introduction to these regulations. They are, as she says, broadly technical in nature, correcting, in that now familiar phrase, “errors and deficiencies” in previous SIs. While I cannot claim to have reread all the previous SIs that are corrected here, I looked back at the Common Organisation of the Markets in Agricultural Products (Producer Organisations and Wine) (Amendment etc.) (EU Exit) Regulations 2020 (S.I. 2020/1446), as the EM suggested in paragraph 7.5 that they should be read in conjunction with each other. Then I discovered that the earlier SI was correcting errors and deficiencies in a previous SI. Now we seem to be correcting errors and deficiencies in previous errors and deficiencies. It makes one wonder how the organisations affected by these changes ever keep abreast of the layers of these amendments. I am sure that the Minister will agree that this is far from an ideal situation.
Given where we are, I have a few questions to follow up. Some of them have been raised by other noble Lords in the debate. First, the Explanatory Note states:
“There is doubt as to whether the amendments made by Part 4 of those Regulations came into force, as intended, on IP completion day”.
Further on, it states that part of the earlier SI
“may not have existed due to the error in the commencement provision”.
Again the Minister explained this in her introduction. What has been the impact of these errors? Have businesses or producer organisations been adversely affected by the fact that these regulations have not been watertight and might not have been introduced in a timely way? Is there any recourse to compensation when errors are found to occur in this way? For example, has there been an occasion when the fruit and vegetable aid scheme might have been invoked because of market failure but payments were unable to be made?
Secondly, this SI seems to require the head office of a producer organisation to be sited in the nation where the majority of its marketed production takes place. Does this change the provision for transnational producer organisations that we have previously discussed? Will they still be able to access funds in the UK even if their head office is elsewhere?
Thirdly, I shall pick up an issue raised by other noble Lords about the market for established wine designations and GIs for UK wine, particularly the implications of the trade and co-operation agreement which was signed in December after we had agreed the previous SI. Do we now have an established UK process for approving new designations and retaining the reputation of UK wines, which was envisaged at that time? In the previous debate, the noble Lord, Lord Gardiner, said:
“Our aim is to ensure that imports of third-country wines continues unaffected while continuing to increase domestic wine production.”—[Official Report, 18/11/20; cols. GC 710-11.]
Do UK wines now have the flourishing market in the EU and third countries unhindered by tariffs and red tape that was envisaged at the time by the Minister? Have the Government now reached an agreement with the Wine and Spirit Trade Association, which at that time was very unhappy with the certification process for shipments of EU wines into the UK, which it felt to be overburdensome? That point was raised by the noble Lord, Lord Moynihan, and the noble Baroness, Lady McIntosh. I look forward to the Minister’s response.
The Deputy Chairman of Committees (Baroness Pitkeathley) (Lab)
The noble Baroness, Lady Bakewell, has scratched, so I call the Minister, the noble Baroness, Lady Bloomfield.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, I thank all noble Lords for contributing to this short debate. I agree with the noble Baroness, Lady Jones, that this situation is far from ideal. However, to put it in context, since July 2018, Defra has laid 340 SIs subject to parliamentary procedure, 216 of them relating to EU exit. Current estimates are that we have at least as big a programme in mind for the current year. The 340 instruments Defra has laid since July 2018 represent nearly one-quarter of the UK’s entire EU exit and transition period SI programme. I am afraid that some errors were always going to happen given that volume of work.
I was asked specifically by the noble Baroness, Lady Ritchie, and the noble Lord, Lord Bhatia, what the error was. It was a drafting error in the commencement provisions of the Agriculture (Payments) (Amendment, etc) (EU Exit) Regulations 2020. There is some uncertainty as to whether Part 4 of that SI, the amendments that relate to retained EU legislation, came into force as intended on IP completion date as that part of the SI was stated to come into force immediately before IP completion date. That resulted in Part 4 of the SI purporting to amend retained EU legislation that did not exist immediately before IP completion date. I hope that that answers the question.
My noble friend Lord Moynihan asked a number of questions to do with wine, as did my noble friend Lady McIntosh and the noble Baroness, Lady Jones. The Government have met the Wine and Spirit Trade Association. Defra Ministers had useful discussions with Miles Beale and his team at WSTA. The WSTA was keen to press its concerns about VI-1s and raised a few other issues, including labelling and electronic certification, which officials are actively looking into.
On my noble friend Lord Moynihan’s questions, the UK wine sector prepared well for Brexit, with the result that trade has continued largely unaffected by the new arrangements. However, like some other food sectors, wine has encountered ad hoc problems with exports to certain EU member states in terms of customs arrangements and wine certification. We have worked with the companies involved, their agents, the Foreign, Commonwealth & Development Office and the member states concerned to resolve immediate issues and to establish what can be done to ensure that the matter does not reoccur on future shipments. Leaving the EU gives the UK Government scope to review and change policies so that they may better suit the needs of our people and businesses, so there may be the opportunity to review the need for VI-1 certification for imports. We keep all these areas of retained EU wine law under review to ensure that they meet the needs of consumers and the trade and are generally fit for purpose. It is possible to transmit wine certification via electronic means. We will consider all aspects of the process and transmission as a matter of urgency.
My noble friend Lady McIntosh asked about stakeholder engagement. The SI was drafted in active consultation with policy officials from all devolved Administrations, who were given the opportunity to comment at each drafting stage. Affected fruit and vegetable producer organisation stakeholders are aware of and engage with Defra’s plans for the sector. Defra has proactively engaged with transnational producer organisations affected by the UK leaving the EU and the operability amendments that that requires.
I think that I have already answered the question about wine importer labelling, but I should add that the Government have introduced an easement that allows an EU importer or bottler to be displayed on wine marketed in the UK until 30 September 2022. Similar arrangements are made for food products and are designed to support the industry’s transition to new rules. In the intervening time, we continue to work with industry to review the current wine labelling arrangements and replace them with something more practical if that is possible.
The noble Baroness, Lady Ritchie, asked a number of questions about Northern Ireland trade, some of which I will answer in writing if I am unable to do so here. In terms of trade disruption, the UK has always been clear that implementing the protocol had to respect Northern Ireland’s place in the UK customs territory. We have protected and respected that important principle. Through the UK trader support scheme we are ensuring maximum continued ability for Northern Ireland businesses to export both to the EU and to GB and therefore keep disruption over the next few years to a minimum. In the long term, the prosperity of Northern Ireland will depend on the whole set of economic measures that the Government implement, of which agriculture and agri-food is only one part. I should add that agriculture is, of course, currently devolved, but we are very keen to work with all the DAs because we all want the same thing: an environmentally sensitive, sustainable food system.
Turning to the questions asked by the noble Baroness, Lady Jones, on the impact on the food and vegetable producer organisations aid scheme, there is actually no impact on this scheme. The UK continues to follow EU legislation as it applies to EU member states for the duration of the current operational programmes implemented by producer organisations. They have continued to implement their approved operational programmes and receive all payments due. The retained legislation, as amended by this SI, will apply to any new operational programmes implemented by UK POs. This is likely to be from 1 January 2022 onwards. We hope to begin negotiations shortly with the EU to agree to switch to retained legislation before the end of the current programmes, but this SI will be in force before that happens. This means there will be no gap between legislation, and therefore no impact on producer organisations.
The noble Baroness, Lady Jones, also asked whether there were occasions when fruit and vegetable producer organisation legislation could have been invoked if the relevant amendments had been in force. The answer is that they could not: EU legislation continues to apply to existing operational programmes. She also asked about requirements about where head offices are sited, whether they change the position for transnational producer organisations and whether they can still access funding. As we are continuing to follow EU legislation for the duration of current operational programmes, transnational producer organisations can continue to receive funding in respect of all actions carried out by their members, no matter where in the UK or the EU they are based. If we switch to retained EU legislation following agreement with the EU, this SI will mean that UK transnational producer organisations will continue to receive aid in respect of all their EU-based members for the remainder of their current programmes.
The noble Baroness, Lady Jones, also asked whether the market for wine has recovered following the transition period. The UK market saw a slowdown at the beginning of the year, as many companies had moved supplies of wine as a contingency for a no-deal Brexit. Similarly, the hospitality sector has been hit at a global level due to Covid, which has also impacted on transport costs. We are seeing the sector recover now, and the opening up of the hospitality sector will help. In answer to the question about whether the UK has a fully functioning GI scheme, the UK has a fully functioning GI scheme covering food and drink, wines, spirits and aromatised wines. We also have a new logo for products protected under the UK scheme to use, which I recall was dealt with in an earlier SI when we met one another. On third-country wine imports and exports, we have taken steps to ensure that wine products can be imported and exported freely. We have recently extended the easement whereby any wines arriving from the EU will not need to have associated wine certification to 1 January 2022. This will provide time for the sector to adjust to the new trading arrangements, including those set out under the UK-EU Trade and Cooperation Agreement.
Lastly, I reiterate that we are in continual discussions with the Wine and Spirit Trade Association. I think I have now answered most of the questions, barring those from the noble Baroness, Lady Ritchie, which I will answer in writing. I apologise to my noble friend Lady McIntosh that I am unable to answer her specific questions on honey, which I recall was also covered by a previous SI: I fear that the honey team is not in its hive today. I will look at Hansard in case there are other points I have missed. In the meantime, these regulations are worthy of your Lordships’ support, and I commend this statutory instrument to your Lordships.
The Deputy Chairman of Committees (Baroness Pitkeathley) (Lab)
My Lords, the Grand Committee stands adjourned until 5 pm. I remind Members to sanitise their desks and chairs before leaving the Room.
Arrangement of Business
The Deputy Chairman of Committees (Baroness Pitkeathley) (Lab)
My Lords, the hybrid Grand Committee will now resume. Some Members are here in person, others are participating remotely, but all Members will be treated equally. I ask Members in the Room to respect social distancing. If the capacity of the Committee Room is exceeded or other safety requirements are breached, I will immediately adjourn the Committee. The time limit for the following debate is one hour.
Public Procurement (International Trade Agreements) (Amendment) Regulations 2021
(3 years, 6 months ago)
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The Minister of State, Cabinet Office (Lord True) (Con)
My Lords, this instrument will ensure domestic public procurement regulations give legal effect to the UK’s international procurement obligations, specifically those covered in the UK third party international trade agreements signed with non-EU countries that had an agreement with the EU before exit day on 31 January 2020. Therefore, when contracting authorities carry out public procurements, this could be covered by an international agreement. If so, suppliers from those countries are required to be treated no less favourably than suppliers in the United Kingdom. It also means that UK businesses will continue to benefit from access to public procurement markets overseas.
We have agreement with the devolved Administrations that this instrument will be laid on behalf of Wales, Scotland and Northern Ireland. This will ensure legislative efficiency and consistency across the four nations.
We are implementing this change because the UK Government, following our exit from the EU, have, as far as possible, committed to providing continuity in existing trade and investment relationships with our existing international partners. We have already helped to ensure a continuation of global procurement through the World Trade Organization’s Agreement on Government Procurement, following the UK’s accession to the agreement as an independent member, and we have laid separate legislation to implement that.
Without this instrument, the United Kingdom would not be able to implement its international procurement obligations in trade agreements with third countries. This would leave the UK Government open to legal challenge and damage our reputation as an international trading partner.
This instrument will be made using powers set out in Section 2 of the Trade Act. The instrument will create a new schedule within existing procurement regulations, listing the international agreements signed by the United Kingdom. It will be limited to UK trade agreements with countries that had a preceding agreement with the EU before exit day. Of those agreements in effect, those with substantive procurement provisions to be listed in the schedule are Albania, the Andean countries, Canada, the CARIFORUM states, central America, Chile, Georgia, Israel, Japan, Kosovo, Mexico, Moldova, North Macedonia, the Republic of Korea, Serbia, Singapore, the Swiss Confederation, Ukraine and Vietnam.
The instrument is, I believe, uncontroversial, each of those agreements having already been scrutinised via the procedure set out in the Constitutional Reform and Governance Act 2010. Furthermore, parliamentary reports have been voluntarily laid alongside each continuity trade agreement. They explain our approach to delivering continuity with each partner as the United Kingdom left the EU. If we have made any significant changes to the trade-related provisions of our existing agreements through entering into the new ones, we have explained them in those reports.
Moving forward, further affirmative statutory instruments will need to be laid, using the powers in Section 2 of the Trade Act, each time the UK signs a new trade agreement with a third country or any of the agreements mentioned here are updated, to give them legal effect. Future trade agreements with countries where there was no free trade agreement with the EU before exit day—which could include Australia and New Zealand—are not covered in the Trade Act and will require separate legislation.
I commend the regulations to the Committee and beg to move.
Lord Haskel (Lab) [V]
My Lords, this is a difficult time. We are faced with difficult political, social and economic problems, including the pandemic, Brexit, climate change and a sense that the economy is failing many people. We keep hearing from the Government about their ambition to build a better future by building in more resilience so as not to return to the same world as we knew it. They can do this through legislation. I would have thought that this is so pressing that no legislative opportunity would be lost. After all, it is actions that count, not words. In this regard, the Government have a big chasm to cross.
It seems to me that, with these regulations, the Government have an opportunity to act. Admittedly, the regulations deal only with public procurement, but it is a start. They deal with our place in the world of public procurement after Brexit and confirm that we will stick to the same rules as we did when we were members of the European Union regarding transparency, non-discrimination and the equal treatment of all suppliers and contractors in countries that, like us, are members of the Agreement on Government Procurement.
When we were members of the European Union, we did well in winning contracts for public procurement but, as with the rest of our European business, we are being disadvantaged by increased bureaucracy. Could we not use these regulations to help us win public procurement contracts in Europe with the same minimal bureaucracy as we had when we were members? After all, we are agreeing to the same rules as we had before we left. This would be one small step towards cutting bureaucracy when dealing with our European neighbours.
Could we not do better? Could we not introduce an element of sustainability in these public procurement deals? This element is being introduced more and more. It is becoming a feature of financial markets with ESG investment and the Bank of England is monitoring the record of our banks and major companies on sustainability by having them report on responsible investment. This is all part of the developing relationship between business and government to achieve social objectives by arguing for resilience over efficiency. Indeed, this was mentioned at the CBI climate conference yesterday.
In a way, we have set a precedent for this with British Standard 95009, which was introduced in 2019. This standard, which is becoming more and more widely used, specifies how an organisation can demonstrate that it is a suitable provider for the public sector. Could we not extend this standard to the UK’s legal obligations under the Agreement on Government Procurement so as to include sustainability and other social and economic objectives?
I understand from what the Minister said that further regulations are being drafted to give effect to our procurement obligations under WTO rules. If it is too late to include these points in these regulations, can they be considered for those in preparation? The Government have come in for a lot of criticism recently, being accused of bias in the awarding of public contracts. Enlarging these regulations in this way could be a way of deflecting that criticism.
Lord Lansley (Con)
My Lords, I am glad to follow the noble Lord, Lord Haskel, although, unlike his interesting and wide-ranging remarks, I am afraid that that I am going to be very specific and quite pedantic. This is not in any particular spirit of criticism of these regulations; in introducing them, my noble friend was clear about their purposes. They are indeed entirely noncontroversial and, to a large extent, much anticipated and much welcomed to implement the continuity agreement so far as government procurement and access to public procurement in the United Kingdom is concerned.
I want to make two points. The first is for those who are often prone to saying that it is our Government’s intention to expose the National Health Service to competition pressures. Whether or not they think that is detrimental, I will not argue; the point is that, here, as in other public procurement measures, the Government have taken the opportunity to make specific exemptions for clinical healthcare services, which indeed they did in the EU-UK Trade and Cooperation Agreement. So those who talk about the exposure of the NHS to competition should look at that and recognise that the Government have, if anything, moved in the opposite direction.
The pedantic point I want to make is that, in introducing the instrument, my noble friend reflected what is said at paragraph 7.2 of the Explanatory Memorandum, which may have been the intention when it was written:
“This instrument will only affect trade agreements that have already been scrutinised via the procedure set out in the Constitutional Reform and Governance Act”—
that is, CRaG. This is almost entirely true, but it is not true in relation to the agreement with Serbia. The Serbia agreement was signed on 16 April using powers under Section 2 of the Trade Act, which was given Royal Assent on 29 April. This statutory instrument was created and laid on 13 May. The Serbia agreement was laid under CRaG on 11 May and, I understand, was provisionally applied on 20 May; the Secondary Legislation Scrutiny Committee and the Joint Committee on Statutory Instruments looked at it on 25 and 26 May. It might have been anticipated that the CRaG scrutiny period would have ended by now but it has not because the Whit Recess intervened and the CRaG scrutiny period expires on 23 June. The International Agreements Committee, of which I am a member, will examine the UK agreement with Serbia tomorrow. So there is an exception to this point.
Does it matter? I think the short answer is that it does not. The provisional application is in place, as one would expect in order to minimise any discontinuity in our trading relationship with Serbia because we have been operating on quasi-WTO rules since the turn of the year and the provisional application was quite right. So it does not matter but there is a point here: if instruments are laid with Explanatory Notes, the timing and sequencing need to be very clear. In this case there is, I think, no controversy, but if there were controversy, and if we were in a position where the House was being asked to put in place implementing legislation in circumstances where the CRaG scrutiny had not concluded, that would be regrettable. I just want to note this because we are all finding our way with all these processes but I hope that care will be taken to understand the sequencing for future occasions.
Baroness McIntosh of Pickering (Con)
My Lords, I am grateful to my noble friend for the opportunity to debate these regulations, which I presume are the first that we are looking at under the Trade Act 2021. I welcome that agreements have been reached with such a wide range of countries—I particularly note Vietnam, Japan and Singapore. Could my noble friend again confirm the limit to the public procurement under the global procurement strategy to which he referred—it was the equivalent of €100,000 or $100,000? Like my noble friend Lord Lansley, I welcome the fact that we have not gone down the path of opening up competition to the National Health Service.
As my noble friend Lord True will recall, when we debated these issues earlier, my one regret was I had hoped that, now that we have left the European Union, our farmers and producers in particular would benefit from selling their produce—meat, fruit or vegetables—and being a source of more domestically grown produce for our public institutions, such as hospitals, schools and others. That being the case, and given the fact that the cost of exporting to many of these countries, and the carbon footprint, would be quite large, does my noble friend envisage that there may be opportunities for our agricultural producers and horticulturalists to export to some of the countries covered by this agreement?
Paragraph 7.2 of the Explanatory Memorandum says that the instrument specifically does not apply to future trade agreements, as my noble friend set out so eloquently—he specifically mentioned Australia and New Zealand—and that separate legislation will be required. I understand that we are only entering into the finer details of our negotiations with Australia, but when does my noble friend expect that legislation to come before the House in that regard?
I will follow up the point that my noble friend Lord Lansley raised about the CRaG procedure. Obviously, there is an issue that the Select Committee should have the earliest possible opportunity to consider the detail of future trade agreements. I add to that my concern: my understanding is that the Trade and Agriculture Commission has not yet been appointed as a new body —it has no chairman or members—yet we are proceeding apace with existing rollover continuity agreements and proceeding to negotiate new ones. Does my noble friend have an idea of, and timetable for the appointment of its new chairman and members?
I reiterate the point made by the Trade and Agriculture Commission’s outgoing chairman, Tim Smith, in the report that it submitted: he specifically states that the timing is absolutely key and that, in exactly the same way as the Select Committees on international agreements of both Houses, the Trade and Agriculture Commission should have the earliest possible opportunity to look at these agreements. Will my noble friend confirm that the new Trade and Agriculture Commission will not be presented with a fait accompli in the case of a trade agreement with Australia, New Zealand or the United States, but rather that it will be able to do the work that we are asking it to do and will—if it will not be consulted on the negotiating mandate, which I would prefer—have the earliest possible notice or sight of it?
My noble friend will be all too familiar with the fact that, in part 1 of the National Food Strategy report, the government adviser Henry Dimbleby and all those who served in producing it made these points very eloquently and forcefully. I understand that, regrettably, the Government have responded privately to part 1, and it would be helpful if we could all see the contents of that reply. With those few remarks, I welcome the opportunity to have debated these agreements, and I look forward to reviewing further ones.
I have one final question. Paragraph 6.2 of the Explanatory Memorandum states:
“The section 2 power is in place for five years from IP completion day, and can be extended for a further five-year period by Parliament, subject to the agreement of both Houses.”
If it were to be extended, would we have the opportunity to look at these regulations again, or is this a one-off? I also note that paragraph 10.1 states:
“There has been no consultation on this instrument.”
From what my noble friend Lord True said at the outset in so ably moving these regulations, I understood that the Government have the authority to work on behalf of the devolved Administrations of Wales, Scotland and Northern Ireland. What was the forum giving that consent?
With those few remarks, I am delighted to support these regulations.
Baroness Hayter of Kentish Town (Lab) [V]
I thank the Minister for his introduction, but I am afraid the main question I would like to put to him—to which I fear I cannot expect a reply—is whether all those arch- Brexiteers really did all that campaigning just to spend time on a sunny summer afternoon on SIs which simply put in place exactly the same rules that we had before exit day? I do not expect him to answer that.
However, that is what this looks like, as a result of rolling over EU agreements, some large, some small, as the Minister mentioned, with Chile, Switzerland, Israel, the CARIFORUM states, Colombia, Ecuador, Peru, central America, Singapore, Korea, Georgia, Kosovo, Ukraine, Japan, North Macedonia, Canada, Mexico, Vietnam, Albania and Serbia—I look forward to the Minister’s response to the noble Lord, Lord Lansley, on that one, given that it does not appear to have gone through CRaG. These regulations simply seem to retain our public procurement rules, in line with those the EU already has with these countries and which therefore applied to us before we left. We are going through all this just to maintain what was there beforehand.
As the Minister said, the Trade Act 2021, which authorises these regulations, covers deals with countries which have trade agreements with the EU—in other words, the ones they are rolling over—so we just continue as before. As he rightly says, we have to agree this to honour the existing deals we have chosen to continue to operate, and to ensure that any UK relevant public authority treats the suppliers of services or economic operators in the countries listed no less favourably than home competitors.
We are where we are, and we are just continuing it. But the interesting question—to which I would prefer an answer over my tease at the start—is that posed by my noble friend Lord Haskel: if, as we keep hearing, the whole point of Brexit was to give us the freedom to sign our own deals, why not add into these a requirement that all public procurement from domestic or overseas suppliers includes sustainability clauses, fairness to SMEs, worker protection and consumer rights?
I do not want the Minister to have given up his nice sunny afternoon in vain, so some thoughts on how the Brexit freedom can be translated into our public procurement would be enlightening. Even as I absolutely signify our acceptance of these uncontroversial regulations, as he called them, it would be interesting to know whether the Government will be a little more ambitious than it appears from this.
Lord True (Con)
I thank all noble Lords and noble Baronesses who have spoken for their general welcome for this measure. Some of it was slightly tempered, but in the docile environment of a statutory instrument Grand Committee upstairs, I shall not let my temper be provoked by it. I simply say that, having been called an arch Brexiteer, I would rather describe myself as an arch musketeer now on behalf of the British interest. That operates come rain or shine. Part of the context which has not been referred to—it was referred to by my noble friend Lady McIntosh of Pickering but not by the noble Baroness, Lady Hayter—is that the sun was certainly shining in Downing Street earlier today, when my right honourable friend the Prime Minister and Mr Scott Morrison announced exactly the kind of way forward to a better future which both the noble Lord, Lord Haskel, and the noble Baroness were asking for. This Government are ambitious on behalf of the national interest and of all those who work and produce in our country. We remain unashamedly of the opinion that free trade is an enormous boon to mankind. Over the decades and centuries, it has contributed to the raising of the condition of the people in nations across the world. That is as far as I will go on the political element of the discussion.
On the specific points on which I was asked, my noble friend Lord Lansley raised an important issue in relation to Serbia. These are not minor points; parliamentary scrutiny is obviously of fundamental importance—I think that we all agree on that. I do not think that there has been any attempt to do anything untoward, but I shall undertake to write to my noble friend on the detailed point that he has raised, if he will accept that as a response.
On the specific point raised by the noble Lord, Lord Haskel, about the WTO—which I referred to— perhaps my remarks were slightly infelicitously set, because I gave the impression that there was a forward-looking element here. As for the WTO, a separate statutory instrument, the Public Procurement (Agreement on Government Procurement) (Amendment) Regulations 2021, was made and laid under the negative procedure on 12 May 2021 using powers in Section 1 of the Trade Act. That has given effect to the UK’s independent membership of the Agreement on Government Procurement, which is a WTO function and institution.
My noble friend Lord Lansley, with his immense experience in this area, reminded us that the Government are not involving the National Health Service. These continuity agreements will ensure that the transition of existing FTAs will not impact on how the UK currently delivers healthcare services or standards of care in the NHS. No trade agreement has ever affected our ability to keep public services public, nor has one ever forced us to open up the NHS to private providers. We have always protected our right to choose how we deliver public services in trade agreements and we will continue to do so. I came armed to give longer reassurances on that point and could expand further, but I think my noble friend picked that out accurately from the documents before us.
I agree with my noble friend Lady McIntosh that there are opportunities for agricultural producers, our own producers, as free trade is extended. I do not think we should always see issues as incoming; there are opportunities outgoing as well. I believe that that will be widely seen and acknowledged in the years ahead. My noble friend asked when specific legislation will come forward in relation to the Australia provision announced today by the Prime Minister and the Secretary of State, Liz Truss, who I believe deserves enormous credit for the extraordinary effort she is making on behalf of the country. I cannot advise specifically on timescales for that, but I can assure my noble friend that there will be full scope for the kind of parliamentary scrutiny she is seeking.
My noble friend also asked about the timing of appointments. I cannot at this point advise her on that, but I will try to give her some better guidance outside this discussion.
I am grateful for what has been said. It is a warm afternoon but the musketeering never stops, and I pay full credit to noble Lords who have taken the trouble to take part in this debate to secure the future of British trade and, yes, steps towards the kind of better future that the noble Lord, Lord Haskel, challenged us to work for in his opening remarks. I must tell him that I have slightly more confidence than he has about the prospects for the future, and we will work to disabuse him of any doubts he has. I was very grateful for his input into the debate and that of all noble Lords.
The Government have committed to providing continuity as far as possible in existing trade—we make no apology for that—and in investment relationships with non-EU countries now we have left the EU. I repeat that, for this reason, we think that, as others have said, the instrument is uncontroversial, allowing for the continuation of current procurement practice. That has been the sense of your Lordships’ committee. I hope I have answered noble Lords’ questions. I have undertaken to respond to a couple which are very detailed. I hope I have clarified the implications of the amended legislation and I trust that noble Lords will, as they said, support the statutory instrument. I am grateful to them for that.
House of Lords
Arrangement of Business
The Lord Speaker (Lord McFall of Alcluith)
My Lords, the Hybrid Sitting of the House will now commence. Some Members are here in the Chamber and others are participating remotely, but all Members will be treated equally. I ask all Members to respect social distancing and wear face coverings while in the Chamber except when speaking. If the capacity of the Chamber is exceeded, I will immediately adjourn the House.
Oral Questions will now commence. Please can those asking supplementary questions keep them to no longer than 30 seconds and confined to two points? I ask that Ministers’ answers are also brief.
Children with Genetic Conditions: Specialist Support
(3 years, 6 months ago)
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Lord Farmer
To ask Her Majesty’s Government what steps they intend to take to ensure that children with (1) 22q11 deletion syndrome, and (2) other genetic conditions, receive specialist support to address and prevent any loss of (a) learning, or (b) social skills, due to the disruption of their education during the COVID-19 pandemic.
Baroness Eaton (Con) [V]
On behalf of the noble Lord, Lord Farmer, and with his permission, I beg leave to ask the Question standing in his name on the Order Paper.
The Parliamentary Under-Secretary of State, Department for Education and Department for International Trade (Baroness Berridge) (Con)
My Lords, we are committed to help all children, including those with genetic disorders, to recover from the impact of lost learning during the pandemic. Following the most recent announcement on education recovery on 2 June, we have now allocated over £3 billion to children and young people. We are targeting those resources to support those in greatest need; for example, special and alternative provision schools will receive additional funding to ensure one-on-one tutoring for their pupils.
Baroness Eaton (Con) [V]
I commend the Government on their growing support for family hubs. The original Breakthrough Britain report recommended these, high- lighting their role as a one-stop shop for families with disabled children, which would greatly help those with often very debilitating genetic conditions. Can my noble friend the Minister advise the House of what plans there are to expand the remit of family hubs to include this?
Baroness Berridge (Con)
My Lords, a number of family hubs are already in operation but the department has just finished procurement for a national centre for family hubs as part of the £14 million allocated to this. Part of that role will be to ensure that best practice is spread across England. The noble Baroness is correct that these centres should be a hub of voluntary, statutory and other services for families, including those with special educational needs and disabilities.
Lord Watson of Invergowrie (Lab)
My Lords, the head of Ofsted has highlighted that children with special educational needs and disabilities have incurred some of the biggest learning losses from schools closing, noting:
“Many have genuinely gone backwards in basic skills, language, numbers”.
This is because too many seriously ill children did not receive—and in some cases are still not receiving—adequate support for their disability or medical condition through health services or school, despite having education, health and care plans. What consideration have the Government given to the need for a therapies catch-up plan for children who have regressed or plateaued in their speech, communication, physical development or social skills due to the pandemic, as called for by the Disabled Children’s Partnership?
Baroness Berridge (Con)
My Lords, it is indeed correct that some of the learning lost has been greatest for those with special educational needs and disabilities. That was one of the reasons why, during both of the lockdowns when schools were closed, places were still available for many of those young people. They should now be accessing all the therapies and additional support that the plan says they should receive. The recovery package has the flexibility that some of the money is per-pupil and, therefore, schools can buy in the additional specialist support that the noble Lord outlines.
Lord Shinkwin (Con)
My Lords, the absence of a diagnosis or late diagnosis of 22q11 deletion syndrome means an inevitable impact on children’s educational support and outcomes during their school years. Can my noble friend the Minister shed some light on work that she may be doing with the Department of Health on the Government’s plans to increase the number of conditions included in newborn screening for specialist support, in line with other countries, and what consideration has been given to the inclusion of 22q11?
Baroness Berridge (Con)
My Lords, as I understand it, this is the second most prevalent genetic disorder after Down’s syndrome. I will take back to colleagues at the Department of Health the request as to whether it is included in screening. This disorder apparently has a wide spectrum of effects, so some of those children are never identified during their school career, but the education, health and care plan should support them if they do exhibit a need for extra support. Diagnosis is not a precursor to having an EHCP; many are diagnosed, some within mainstream provision in schools and some in specialist provision.
Lord Austin of Dudley (Non-Afl)
My Lords, will the Minister hold a meeting to listen to representatives from the National Society for Phenylketonuria and young people with the genetic condition PKU so that the Government can learn more about the impact this has on children, their health and education, and consider what more the Government could do to help them? Would she be good enough to invite her counterpart from the Department of Health to join such a meeting as well?
Baroness Berridge (Con)
My Lords, noble Lords are wanting to put me in touch with my colleagues at the Department of Health today. I will take back that request, but I repeat that one of the key visions behind the 2014 reforms was that when a child exhibits a need for support they do not wait for diagnosis or any of that: schools or the family can get an EHCP and get the support in place that the child or young person needs.
Baroness Brinton (LD) [V]
Over the last year, children with genetic conditions that give them severe physical and/or learning disabilities and who are extremely vulnerable to Covid have often had no school, no carers coming into their homes and no short breaks or respite. Education, health and care plans are designed for the whole child, so does the Minister agree that short breaks and respite are vital for children in order to address high levels of family exhaustion? Has the department made an assessment of whether local authorities and CCGs are able to sustainably fund them?
Baroness Berridge (Con)
My Lords, the noble Baroness is correct that during the periods of lockdown the pressure on these families was immense. Parliament has passed legislation—in 2011, I believe—putting a statutory requirement on local authorities to look at the provision of short breaks for children with those needs and their families. We have given support during this period, particularly to families of those with special educational needs, and through Family Fund for those families on low incomes, amounting to around £27 million. Obviously, part of recovery and catch-up for schools is helping precisely the children the local Baroness outlines.
Baroness Stuart of Edgbaston (Non-Afl)
My Lords, catching up with lost learning will require the support of not just professionals but volunteer organisations and families. Will the Minister therefore make sure, together with her colleagues at the Department of Health, that organisations such as Max Appeal, which care particularly for children with 22q11, get the support that is tailored to their very specific needs?
Baroness Berridge (Con)
My Lords, the department funds a range of voluntary organisations through the £42 million that helps, for example, to deliver whole-school SEND, as well as providing support through the Family Fund, but I will ensure that the noble Baroness’s request is taken back to the department to ensure that we are aware of the full range of voluntary organisations. Of course, during this time local authorities have also had £6 billion of unring-fenced money to support the kind of organisations that the noble Baroness outlines.
Lord Hunt of Kings Heath (Lab)
My Lords, I would like to add to the list that the Minister is going to take to the Department of Health and Social Care. This is about CAMH services. Clearly, the last 12 months have been very difficult in terms of providing CAMH services, but there is evidence that for some of the children involved this has now become a very urgent need. I wonder if she could discuss that matter with her colleagues.
Baroness Berridge (Con)
My Lords, we work closely with them because of the nature of the work involved in EHCPs, and we cannot underestimate the effects of this period. During Mental Health Awareness Week, we announced £17 million that should allow 7,800 schools to have a lead mental health practitioner within the school to provide the kind of support needed. By making school places available during lockdown, we allowed school leaders to identify vulnerable children who needed to come into school for all kinds of reasons, including mental health issues.
Lord Wigley (PC) [V]
My Lords, I draw attention to my registered links with Mencap. The Disabled Children’s Partnership, which has been mentioned, has estimated that almost half of disabled children have lost confidence in communicating because of a disruption or delay to speech and language therapy during Covid, a factor not adequately addressed in the Government’s education recovery plan. Will the Government, as a matter of urgency, please adjust the plan to meet the complex needs of such children and their families?
Baroness Berridge (Con)
My Lords, the noble Lord is correct that early years and language development were greatly affected during the lockdowns. That is one reason why early-years settings were kept open—because of the nature of that education provision. We have allocated £18 million to early-years language development, including £8 million to the Nuffield Early Language Intervention, and I believe that the majority of primary schools have signed up for that. We are funding the initiatives that we help believe can help those children to catch up.
The Lord Speaker (Lord McFall of Alcluith)
My Lords, all supplementary questions have been asked.
Private Landlords: Tenants with Pets
(3 years, 6 months ago)
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Lord Black of Brentwood
To ask Her Majesty’s Government what steps they are taking to encourage more private landlords to allow responsible tenants to keep pets in their rented properties.
The Minister of State, Home Office and Ministry of Housing, Communities and Local Government (Lord Greenhalgh) (Con)
I draw attention to my residential and commercial property interests as set out in the register. The Government want to improve life for tenants and recognise the importance of pets in people’s lives. Earlier this year we published the revised national model tenancy agreement, the Government’s suggested contract for assured shorthold tenancy in the private rented sector. We revised it to encourage landlords to allow responsible tenants to keep well-behaved pets in their home.
Lord Black of Brentwood (Con) [V]
My Lords, during the difficult and often lonely days of lockdown, pets have been a vital source of companionship, well-being and love for many people across the UK, especially the vulnerable. However, is my noble friend aware that, according to Cats Protection, 1 million households that would like to have a cat cannot do so because they live in a rental property? I welcome the changes made to the Government’s model tenancy agreement, which my noble friend mentioned, meaning that consent for pets will be the default position for any landlord using it, but not all landlords use the agreement as it is voluntary. What action will the Government take to encourage landlords to use the model tenancy agreement to allow all those who want to have a pet in their rented property the chance to do so?
Lord Greenhalgh (Con)
My Lords, I am aware of the issue that my noble friend raises. The model tenancy agreement is the Government’s suggested contract with which to agree a tenancy and is freely available online. We will continue to work with landlords and other stakeholders to ensure its wider adoption for use in the private rented sector.
Baroness Wheeler (Lab)
My Lords, I understand from the excellent briefing from Battersea Dogs & Cats Home that tenants’ housing problems resulting from people moving to a property that does not allow pets are the second most common reason why dogs are given to Battersea for rehoming. Battersea helped to develop the model tenancy agreement but key areas, such as defining what constitutes a reasonable excuse for landlords to turn down a pet request or how any appeals process might work, are still to be addressed. How do the Government plan to take these issues forward?
Lord Greenhalgh (Con)
My Lords, it is fair to say that Battersea Dogs & Cats Home has been involved in the development of this agreement. Indeed Peter Laurie, the Battersea Dogs & Cats Home interim chief executive, welcomed the announcement that demonstrated the clear continued commitment to improving access to pet ownership for renters as well as helping to support and promote responsible pet ownership. The purpose of the agreement is to ensure that there is no blanket ban on pets and to consider each pet on a case-by-case basis, and to accept a pet where they are satisfied that the tenant is a responsible owner and the pet suitable for the premises.
Lord Lexden (Con)
Does my noble friend recall the importance that Winston Churchill attached to his pets, which included budgerigars that flew around his bedroom, to the discomfort of visiting Ministers? Would not the great man have been distressed that so many landlords are denying their tenants the affection and companionship that loving pets provide? Perhaps my noble friend can hear a famous voice muttering those words, “Action this day”, to get those new tenancy agreements widely applied, so important in this context, and to bear down on the landlords who are not using them at the moment.
Lord Greenhalgh (Con)
I am grateful to my noble friend for pointing out the views of the great man. We recognise that domestic pets bring joy, happiness and comfort to people’s lives. We have seen that particularly in the pandemic. We also recognise that the model tenancy agreement is a step forward. We need to see its wider adoption, which is why we will work hard to ensure that landlords adopt it as often as possible.
Lord Berkeley of Knighton (CB) [V]
My Lords, I endorse the purpose of this Question. I declare my interests as set out in the register, which inform these comments that I hope are constructive. Is the Minister aware that it is possible to have conditions such as that if pets become a problem, the offer is rescinded—and also that it is possible to put in a clause stating that money must be charged for cleaning, especially where hairs become a problem. So there are ways that could help landlords give permission if they were encouraged to do so.
Lord Greenhalgh (Con)
My Lords, I am aware that measures are in place to facilitate wider pet ownership in the private rented sector, and I encourage landlords to work with tenants to ensure that there is a solution that works for both parties.
Lord Goddard of Stockport (LD)
I draw Members’ attention to my interests as set out in the register. The Government recognised the importance of pets and made changes to the model tenancy agreement. However, not all landlords use that model agreement and it is voluntary, so some landlords can still say no to pets. Animal welfare charities, including Cats Protection, have helped tenants find lots of properties and use a cat’s CV—a template that outlines details about pets and shows responsibility of ownership. Will the Government encourage wider use of pet CVs to allow more responsible pet owners to keep their pets in rented accommodation?
Lord Greenhalgh (Con)
My Lords, we are happy to look at any ideas that encourage wider pet ownership, and I will certainly take that back to the department to consider.
Baroness Jones of Moulsecoomb (GP)
The Minister keeps talking about encouraging flat owners to do the right thing and allow pets, but he did not answer the question put by the noble Baroness, Lady Wheeler: what are you actually doing to encourage this?
Lord Greenhalgh (Con)
My Lords, we have set out a model tenancy agreement that encourages wider pet ownership. It also ensures that the landlord must give a clear reason why they will not accept a pet. This agreement strikes a balance between making it easier for responsible tenants to keep pets and ensuring that landlords are not forced to accept them.
Lord Young of Cookham (Con)
My Lords, last week the Public Services Committee took evidence from a rough sleeper in Birmingham who was full of praise for the Everyone In campaign, which helped him and other rough sleepers into safe accommodation last year. However, he told us that rough sleepers with dogs were now at risk because hostels would not accept them. Is my noble friend aware of this problem and does he have a solution?
Lord Greenhalgh (Con)
I am aware of the issue that my noble friend raises. We know how important pets are to many people, particularly rough sleepers. That is why we have supported a number of local schemes enabling people to find accommodation that will also accept pets. Housing authorities need to be sensitive to the importance of pets to some applicants, particularly rough sleepers, and I thank my noble friend for raising this.
Lord Singh of Wimbledon (CB) [V]
My Lords, depression and loneliness have an adverse impact on health and cost the country millions. Having someone or a pet to look after takes us out of ourselves, and pets have undoubtedly helped mitigate the enforced isolation of the pandemic. Does the Minister agree that a more collaborative approach between landlords and tenants in keeping tenants happy and keeping property in good condition would benefit both?
Lord Greenhalgh (Con)
My Lords, we agree that it is precisely that which has required a collaborative approach that landlords and tenants can work through to find practical solutions and ensure wider pet ownership in the private rented sector.
Lord Flight (Con)
My Lords, I much agree with the comments of the noble Lord, Lord Berkeley of Knighton, and the noble Lord, Lord Singh. It is very important, particularly for single older people, to be able to have a pet. Some ideas to perhaps consider are that, if landlords could render a modest additional rental for pets, it might be more attractive to them, and it might be worthwhile requiring insurance policies to be taken out by tenants. It might also be an idea to have a system of interviewing tenants and choosing tenants who seem to be responsible with regard to pets.
Lord Greenhalgh (Con)
My Lords, I thank my noble friend for coming up with practical suggestions for how tenants and landlords could work together to ensure wider pet ownership. It is of course for the landlord to consider each case on its merits.
Baroness Gardner of Parkes (Con) [V]
My Lords, pets have done much to help those recovering from medical incidents. This cannot be overestimated. Following the updating of the Government’s model agreement for shorthold assured tenancies in January, to encourage landlords to allow pets, what will the Government do to help allay landlords’ concerns over the inadequacy of a five-week deposit to address any pet damage at the end of the tenancy? Are there plans to allow for a larger deposit to be taken at the outset or, alternatively, a monthly sum to be added to the rent to pay for damage that is refundable at the end of the tenancy to the extent that it is not required? I declare my interest in rental property as in the register, but I have no tenants who have asked to have a pet—although some have them quietly without mentioning it.
Lord Greenhalgh (Con)
My noble friend is right to point out the impact of the Tenant Fees Act 2019. The Government recommend that the rental deposit of five weeks is a maximum rather than a default. Charging a deposit of four weeks’ rent would provide leeway to expand it to five weeks for such things as pet ownership and also to take up some of the suggestions that we have heard today around insurance or potentially looking at rent levels to accommodate wider pet ownership.
The Lord Speaker (Lord McFall of Alcluith)
My Lords, the time allowed for the Question has elapsed. We now come to the third Oral Question.
Armed Forces: Transition to Civilian Life
(3 years, 6 months ago)
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Baroness Sherlock
To ask Her Majesty’s Government what assessment they have made of the support provided by the Department for Work and Pensions to members of the Armed Forces in their transition to civilian life.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Stedman-Scott) (Con)
My Lords, the vast majority of veterans are able to make a successful transition to life outside the Armed Forces; 84% of veterans are employed within six months of discharge, and these rates compare very favourably with the wider population, where 76% are in employment. The DWP provides support to veterans in a number of ways, including through the early voluntary entry to the work and health programme, and support from its network of Armed Forces champions.
Baroness Sherlock (Lab) [V]
My Lords, in 2019 the Government committed up to £6 million to fund more than 100 Armed Forces champions. They are there to provide personnel, veterans and families with specialist support to find work and transition to civilian life, and they are a key part of the Government’s commitment to the Armed Forces covenant. The Minister has now told me in a Written Answer that they now aim to hire only 50 champions and have a record low of just 34 in post. So why have the Government abandoned this commitment to our Armed Forces, and how much of that £6 million has actually been spent?
Baroness Stedman-Scott (Con)
The department’s top priority during the pandemic has been to focus on processing claims and paying people quickly. As a result, the planned recruitment for the Armed Forces champion in April 2020 was paused. During that period, there was a lot of liaison with stakeholders and various interested parties and a new model was devised and got real support from all stakeholders. We now have, for the first time, middle-management lead roles and direct customer support for the 50 Armed Forces champions, and this combined support is well supported. In addition to these people, of course the veterans got the full service of all the work coaches in the DWP network.
The Lord Bishop of St Albans [V]
My Lords, in the UK it is estimated that former Armed Forces personnel are eight times more likely to develop gambling problems than civilians. They suffer from higher rates of mental health issues and alcohol problems, factors which may feed into the higher rate of problem gambling. Will Her Majesty’s Government commit to surveying the gambling habits of serving personnel so that we can better provide for our military as they transition to civilian life?
Baroness Stedman-Scott (Con)
The right reverend Prelate raises a serious issue that people are well aware of. I would like to offer a meeting with him just to get some more detail from him, and then I will of course take that back to the department.
Baroness Fookes (Con)
My Lords, I will not disguise my anger and frustration at the recent refusal of the Government to restore war widows’ pensions to those few ladies who lost it on remarriage. Can my noble friend use her considerable powers of persuasion to find a way forward other than by using the name “pension”, which I understand frightens the life out of the Treasury? Could the widows not receive some form of compensation, hardship payment or the like?
Baroness Stedman-Scott (Con)
To be asked not to frighten the Treasury is quite a challenge—I will think about that one for now. Of course, the Government recognise the unique commitment that service families make to our country and remain sympathetic to the circumstances of those who remarried and cohabited before 1 April. I understand my noble friend’s points, and I will do my best.
Lord Ramsbotham (CB) [V]
My Lords, can the Minister please tell the House whether the Department for Work and Pensions has carried out any assessment of the usefulness of Armed Forces employment to civilian employers?
Baroness Stedman-Scott (Con)
An important point is that when people leave the Armed Forces, they have really good skills that are very attractive to employers in both the public and private sectors, and work is done to make sure that all opportunities are made available to those leaving the service.
Baroness Janke (LD) [V]
Can the noble Baroness say what specific support is provided for families—particularly children—of members of our Armed Forces to enable their transition, given that many of them will have spent time in different schools and different locations and may find it difficult to transition after their families leave the services?
Baroness Stedman-Scott (Con)
The effect on children living in different parts of the country and the world, and the number of schools they have attended, is well known. It is for the MoD to carry out this activity in its resettlement programme. I will ask my friends in the Ministry of Defence to write to the noble Baroness with more detail.
Lord Lancaster of Kimbolton (Con)
My Lords, it was an enormous honour to serve as the Minister for Veterans, probably the most rewarding job in government. While that is the only ministerial job to have the word “veterans” in its title, it is important to remember that all Ministers have responsibility for veterans. One of the challenges they face is access to information, which is why we created the Veterans’ Gateway. Can my noble friend simply reassure me that her department engages with that portal?
Baroness Stedman-Scott (Con)
I am happy to confirm to my noble friend that the department engages with the portal. We put veterans and their families in touch with the organisations best placed to help them, and the portal, through the national provision tool, is an absolutely vital part of the service.
Lord McCrea of Magherafelt and Cookstown (DUP)
My Lords, I recognise the many challenges faced by the members of the Armed Forces in the transition to civilian life, whether it be need for housing or professional care because of physical or mental incapacity through conflict. Can the Minister assure me that all former members of the Armed Forces are equally provided for across the United Kingdom, including those in Northern Ireland?
Baroness Stedman-Scott (Con)
I am pleased to be able to respond to the noble Lord to say that the Armed Forces covenant legislation is specifically designed to cover equality of service. It covers health, education and housing, and the MoD has worked with closely with the devolved authorities in implementing that.
Baroness D’Souza (CB)
My Lords, the Government have a duty of care to look after those who have served and a moral responsibility to pick up the tab. That said, will the Minister say what combat-related trauma support is available to women veterans who are actively seeking employment?
Baroness Stedman-Scott (Con)
I would need to write to the noble Baroness about trauma support because I will need to get the information from the MoD. However, I can give comfort to her and to the whole House: women do very well when it comes to employment after their service. They have good specialist skills such as transport, logistics and medicine, and the support that the DWP gives takes account of individual circumstances and is individually tailored.
Lord Sharpe of Epsom (Con)
My Lords, Dr Hugh Milroy, the CEO of the exemplary military charity Veterans Aid, tells me that the current resettlement system is out of touch with the cost of living today and that he has seen this cause genuine hardship for people with otherwise good prospects. I was surprised to find that the individual resettlement training costs grant available to all leavers with six or more years’ service and all medical discharges is set at £534. Does my noble friend the Minister agree that it is time to modernise the system by providing access to an innovative financial empowerment model, perhaps like the student loan system?
Baroness Stedman-Scott (Con)
I am happy to tell my noble friend that while the grant is set at just over £500, the training that it can purchase can be worth thousands of pounds. The Career Transition Partnership contract-funded courses are prepaid by the MoD and it offers other courses as well. Other financial support schemes, such as the enhanced learning credits scheme, can provide up to £3,000. Further financial support of up to £175 per year can be made available through the standard learning credit scheme and the publicly funded further education/higher education scheme provides service leavers with all sorts of support for up to 10 years to a value of up to £9,000. If we need to repackage that, I will be happy to take it back to the department.
Baroness Smith of Newnham (LD)
My Lords, the integrated review envisages cuts to the regular forces of around 10,000. What work has the DWP done, alongside the MoD, to assess the possible implications for service personnel and their families who will be leaving the forces perhaps rather more unexpectedly than envisaged?
Baroness Stedman-Scott (Con)
The services offered by the DWP through the plan for jobs and other activities with the Department for Education on skills are wide-ranging, and I know that the Ministry of Defence and the DWP will work in partnership to provide the most relevant services to the people who the noble Baroness rightly says will need help.
The Lord Speaker (Lord McFall of Alcluith)
My Lords, the time allowed for this Question has elapsed. We now come to the fourth Oral Question in the name of the noble Baroness, Lady Randerson.
BA and Ryanair: Customer Refunds
(3 years, 6 months ago)
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Baroness Randerson
To ask Her Majesty’s Government what discussions they have had with representatives of the international travel industry about the impact of the action being taken by the Competition and Markets Authority against BA and Ryanair regarding refunds for customers.
The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)
My Lords, the investigation by the Competition and Markets Authority into British Airways and Ryanair is ongoing. It would be inappropriate for the Government to comment on an ongoing investigation by an independent regulator, but we have been clear that the rights of consumers and the obligations of businesses remain unchanged. It should not be unduly difficult for customers to receive a refund when they are entitled to it.
Baroness Randerson (LD)
One struggles to think of another product where customers pay such a high price so far in advance of receiving a service. Yet some airlines have, as the Minister has indicated, avoided making refunds when they could not deliver that service. This has left not only passengers out of pocket but has had a disastrous impact on travel agents who often have to refund their customers without receiving the fare money back from the airlines. Have the Government investigated any of the proposals from Which? that passengers who have paid in advance for their flights should have their payments held safely in trust and disbursed to airlines at the time of the flight? Does the Minister agree that a resolution to this problem is long overdue and that the actions of a small number of airlines are damaging the industry as a whole?
Baroness Vere of Norbiton (Con)
The Government are taking a keen interest in this issue, but it should be noted that refund issues between airlines and travel agents are a contractual matter between those two businesses. The Civil Aviation Authority does not have a role in enforcing such contracts. On the action we are taking on behalf of consumers, the CAA has reviewed airlines’ compliance on refunds. The authority did this last summer and it has since worked collaboratively with airlines to improve their performance. I am pleased to say that most airlines are now paying refunds within seven days.
Lord Balfe (Con)
My Lords, I declare an interest as someone who is owed money by both British Airways and Ryanair. I ask the Minister whether this system could be changed because there is a legal liability which is clearly not being followed. Indeed, these companies are using every trick in the book not to pay customers back. Will the Minister at least agree that this will be borne in mind when they queue up for loans and money from the Government?
Baroness Vere of Norbiton (Con)
I cannot comment on my noble friend’s circumstances, but the regulations already set out that if a consumer’s flight or holiday has been cancelled by an operator, that customer is entitled to a refund within a reasonable timescale. We are also asking businesses to make sure that they interact with their customers on a fair and responsible basis because that is important for the future of the travel industry. I hope that my noble friend will get his refunds, if they are due, as soon as possible.
Lord Berkeley (Lab)
My Lords, this issue of refunds applies to holiday lets as well as airlines and other travel providers. Does the Minister agree that if members of the public book a service in good faith and the Government subsequently change the law so that using the service becomes illegal, surely the Government should compensate those who are out of pocket—or is it only for those who have shouted loudest?
Baroness Vere of Norbiton (Con)
I think we can all agree that the travel industry has been fundamentally changed by the Covid pandemic. There is no doubt that travelling now is very different from what it was a year ago. We are encouraging all consumers to be as flexible as possible. They must read the terms and conditions because in certain circumstances, guidance from the Government may change and a refund may not be due. However, as I said previously, if something is cancelled, a refund should be given.
Baroness Foster of Oxton (Con)
My Lords, the aviation sector has spent the past year trying to second-guess government policy, with route cancellations being announced at the drop of a hat causing mayhem, as outlined by my right honourable friend Theresa May last week. As a key architect of Regulation 261/2004 on passenger rights, I would normally take a hard line, but not today. Will my noble friend remind those in BEIS and the DfT that force majeure includes a pandemic, and that perhaps the Competition and Markets Authority might better focus its attention on reminding Ministers and civil servants of their responsibilities across departments before resorting to possible legal action?
Baroness Vere of Norbiton (Con)
As noble Lords will know, the Government are not taking this legal action themselves. The CMA is a non-ministerial department. It believes it has found some evidence that businesses are failing to comply with the law and it is taking reasonable steps to take appropriate enforcement action. It could be that this does not go to court and that the CMA reaches an appropriate agreement with British Airways and Ryanair, if there has been any wrongdoing. But I agree with my noble friend that we have to do everything that we can to get the travel industry back on its feet. That is our focus: we want British consumers to be able to travel once again and with certainty.
Lord Razzall (LD)
My Lords, following the Minister’s last response, while this is important, clearly it is only the tip of the iceberg for the aviation industry and its customers, as she acknowledges. Does she accept that a lengthy continuation of the green/amber/red system will have a devastating impact on the industry and its customers? Will she confirm that, when restrictions are fully lifted, barriers to flights will be removed, thereby removing this issue? Will she also confirm that it is not the Government’s policy, as some fear, to stop people travelling abroad, so as to boost the UK economy?
Baroness Vere of Norbiton (Con)
I point out to the noble Lord that the Government are taking a cautious approach to international travel. We realise that circumstances will change in different countries, at different times. The traffic light system in place works as well as it can, in the circumstances; it looks at case rates, positivity, genomic surveillance and the risk from variants of concern. I also make the noble Lord aware that lifting restrictions domestically does not necessarily mean changes to international travel.
Lord Rosser (Lab) [V]
It was not clear from the Minister’s response whether the Government were supportive of the suggestion put forward by the noble Baroness, Lady Randerson, which came from Which?, about payments for fares being held in a trust. Perhaps we could have a direct response to that. On this whole issue of refunds, the rights of the consumer seem to be protected somewhat tardily. I am not clear, but are the Government satisfied with the speed at which consumer rights to refunded fares during lockdown were fully addressed and, where applicable, enforced? Surely all are equal under the law and all are bound by the law, whether a financially strong airline not offering a refund or a financially stretched passenger in need of a refund.
Baroness Vere of Norbiton (Con)
As I have said numerous times, consumers are getting their refunds back and this is happening more quickly than it was earlier in the pandemic, as policies and practices have been put in place at the behest of the CAA and the work that it has done with UK airlines. I did not respond to the question raised by the noble Baroness, Lady Randerson, because we are considering it among many other suggestions about how to get our international travel industry back on its feet. The Government also have ongoing work on airline insolvency following the Thomas Cook insolvency in the year before last.
Baroness McIntosh of Pickering (Con)
I welcome the action taken by the CAA. I completely understand the difficulties set out by the noble Baroness, Lady Randerson, and others; airlines and airports are suffering at the moment. But surely it is in the interests of airlines to ensure that they give passengers the best care and attention that they can. Like my noble friend Lord Balfe, I am due a voucher from Ryanair. Could the Minister address the issue of vouchers, which seem to disappear into the ether? Is there not a policy to remind passengers that they have a voucher and that it has to be used before its expiry date?
Baroness Vere of Norbiton (Con)
The same policy applies to vouchers as to cash payments if a flight is cancelled, but of course I cannot go into the detail of my noble friend’s circumstances. It is worth pointing out that, on 17 May, the Government published the Passenger COVID-19 Charter. It sets out what customers can expect, and what their rights and responsibilities are, when booking and travelling internationally. On the other side, we set out the reasonable expectations on the industry to be flexible. We did this to give both customers and the industry a firm footing, as we try to reopen international travel.
The Lord Speaker (Lord McFall of Alcluith)
My Lords, the time allowed for this Question has elapsed.
Arrangement of Business
Lord Ashton of Hyde (Con)
My Lords, I would like to make a short statement about a change to our business tomorrow. Following the Prime Minister’s announcement that there is to be a four-week pause at step 3 of the Covid road map, new health protection regulations have been made and laid before Parliament today. To give the House the opportunity to debate these new regulations before they come into force, and following discussions through the usual channels, we will take that debate as our last business tomorrow, after the Second Reading of the Animal Welfare (Sentience) Bill. A speakers’ list is open now and noble Lords will have until 6 pm this evening to add their names. We will also arrange for a copy of this information to be sent to Peers by email.
Age of Criminal Responsibility Bill [HL]
Tuesday 15th June 2021
(3 years, 6 months ago)
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Modern Slavery (Amendment) Bill [HL]
Tuesday 15th June 2021
(3 years, 6 months ago)
Lords ChamberRead Full debate Modern Slavery (Amendment) Bill [HL] 2021-22 View all Modern Slavery (Amendment) Bill [HL] 2021-22 Debates Read Hansard Text
Lord Alton of Liverpool (CB)
My Lords, I declare a non-pecuniary interest as a trustee of the charity Arise Foundation, which combats modern-day slavery and human trafficking.
Ethiopia
(3 years, 6 months ago)
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Lord Collins of Highbury (Lab)
My Lords, the new data from the World Food Programme has shown that a total of 350,000 people are suffering from catastrophic levels of hunger in Tigray. WFP is mounting emergency food assistance, but some areas are difficult to reach. What steps are the Government taking to support humanitarian access? On the peace process itself, last week the US representative to the UN called for the Security Council to meet publicly to discuss the crisis. What steps is the UK taking within the Security Council to help bring the conflict to an end?
The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)
My Lords, first I welcome my noble friend Lord Gardiner of Kimble, the Senior Deputy Speaker, to the Woolsack. It is testimony to his punctuality that today we saw him arrive a tad early. It is great to see him on the Woolsack—it is certainly the first occasion on which I have done so—and we all wish him well.
I will come on to the substance of the question from the noble Lord, Lord Collins. On the second point he raised, about the UN Security Council, we have certainly been among a few countries calling for an open debate. I am sure that he acknowledges that we made a specific statement on this during our presidency. We have made sure that we keep tabling the issue under any other business, to keep the focus of the Security Council. On his earlier question, we are working with UN agencies on the ground, including supporting additional funding to ensure that the likes of OCHA have access. We are also working with key organisations such as UNICEF on the ground.
Lord Chidgey (LD)
My Lords, Ethiopia has made huge strides as a developing nation, in which relationships with the UK have played a significant part. Today I am wearing the tie presented to me when at the African Union in Addis Ababa by the chairperson of the African Union Commission, Dr Dlamini-Zuma. We are all shocked to see the images of starving people, and reports of civilians being murdered or displaced—reminiscent of the appalling war and famine in the 1980s. We have donated £16.7 million in response to this crisis, but how does this relate to the huge cuts in UK aid? Will Ethiopia’s elections next week offer a solution? They will not be held in Tigray, the EU has withdrawn its observation mission, and the team of American senators has called for elections to be postponed. What is the Government’s view?
Lord Ahmad of Wimbledon (Con)
On the noble Lord’s first question about support from the UK, we have actually given £47.7 million since the start of the crisis. My honourable friend the Minister for Africa announced an additional £16.7 million yesterday. On the political crisis, the noble Lord is right of course—there is an election due. The challenge remains that many parties from within the region impacted are not participating. We continue to use all diplomatic levers to ensure access for full-party participation during the elections. I think there will be little movement on the political settlement until the election has been held.
Lord Robathan (Con)
My Lords, I last visited the beautiful country of Ethiopia about 18 months ago, just before the pandemic. Now we find a third of a million people at risk of famine. Billions have been given in aid by the UK taxpayer, including some money via the Conflict, Stability and Security Fund. How much influence has our huge aid programme had in encouraging peace and stability in the region? Did our aid allow any money from the Ethiopian Government to be diverted into armaments from health and education?
Lord Ahmad of Wimbledon (Con)
My Lords, on my noble friend’s second point, of course there are stringent measures in place to ensure that development aid support is for the purposes intended. I believe it has had an impact on the ground, as 1.2 million children have gained a quality education. Of course we continue to have a positive impact; we support aid programmes in-country but, equally, the political situation is dire and we need to reassess what level of support we can give over the longer term to ensure opportunities for the people of Ethiopia.
Lord St John of Bletso (CB) [V]
My Lords, this is clearly a manmade crisis that can be solved only by political negotiation and compromise, rather than a military solution. What is the African Union doing to foster a rapprochement between the TPLF and the Ethiopian Federal Government?
Lord Ahmad of Wimbledon (Con)
My Lords, we are working with all key partners, including key players in Africa. The Minister for Africa has discussed the situation in Tigray with the AU’s peace and security commissioner. The Foreign Secretary has also discussed the situation with President Kenyatta of Kenya and PM Hamdok of Sudan, and will continue to work with African partners as well as others to bring about a resolution of this conflict peacefully.
The Lord Bishop of St Albans [V]
I wonder if the Minister would comment on whether Her Majesty’s Government have been able to validate allegations that white phosphorus was used against civilians in Tigray, despite the categorical denial of the Ethiopian Government.
Lord Ahmad of Wimbledon (Con)
The right reverend Prelate raises an important point. We are awaiting, and certainly support, the full investigation. Various UN agencies, including OCHA and the UNHCR, are working to establish the facts of that very incident.
Baroness Goudie (Lab) [V]
My Lords, we know the effect that malnutrition has on babies and children—from a baby’s gestation right through to the child turning three. It affects their lungs and it affects their life for the future, and it will affect the livelihood of that country. What are we doing to ensure that the food on the ground is the correct food, particularly for babies, toddlers and pregnant mothers?
Lord Ahmad of Wimbledon (Con)
Our UK aid is focused on that very issue, among various priorities, and 5.6 million children under five, women and girls continue to be reached through nutrition-related interventions on the ground in-country.
Lord Balfe (Con)
My Lords, I see from the UN report that the special rapporteur on human rights in Eritrea has been unable to get into the country. What are the Government doing to try to get things sorted out on the ground? Seventy-five years of independence in Ethiopia seems to have left just a tragic mess, and we appear to be on the point of a failed country and continent. What do HMG think they can do to help?
Lord Ahmad of Wimbledon (Con)
My Lords, I will not agree with my noble friend on the fact that it is a failed continent. I think there are many successes across Africa but, as I alluded to earlier, we are working with key partners and through UN agencies both on the ground and through political engagement to ensure that we bring about a peaceful resolution of this conflict.
Lord Alton of Liverpool (CB)
My Lords, I declare an interest as co-chair of the All-Party Parliamentary Group on Eritrea, which will be addressed this afternoon by the United Nations special rapporteur on Eritrea and will focus on Tigray. How do the Government intend to respond to his findings of appalling human rights violations by Eritrean militias in Tigray? Did the Minister discuss it when he met the Secretary-General of the United Nations last week? Are we working with Ireland, which is proposing to raise this in the Security Council this week? Are we considering joining Belgium, which is using universal jurisdiction to bring prosecutions for war crimes and crimes against humanity?
Lord Ahmad of Wimbledon (Con)
My Lords, yes, I did discuss this with the UN Secretary-General António Guterres last week when I met him. We are awaiting a full report of that joint investigation by the UN Office of the High Commissioner for Human Rights and the Ethiopian Human Rights Commission, which is currently under way. We will continue to work with key partners on the UN Security Council, including Ireland, to find further resolutions and we continue to lobby for a full debate at the UNSC.
Lord Anderson of Swansea (Lab)
My Lords, looking longer term, in the view of the Government, which of the outside bodies is best placed to play a peacebuilding role—the UN or the EU? Does the Minister agree that the causes of instability in conflict must be tackled and that these include the insupportable population explosion from 18 million in 1950 to about 110 million now, and projected by the UN to be 190 million by 2050 and 250 million by the end of the century? Does our aid include family planning?
Lord Ahmad of Wimbledon (Con)
My Lords, I agree with the noble Lord that the issue of population growth must be addressed, not just in the region we are currently talking about but across the world. We believe that prioritising girls’ education for 12 years is part and parcel of finding that long-term resolution. We are working with all agencies to find a resolution and the African Union, as well as the UN, has an important role to play.
Baroness Helic (Con) [V]
My Lords, yesterday in the other place the Minister for Africa stated:
“a high level of sexual violence is being directed at children”—[Official Report, Commons, 14/6/21; col. 41.]
in Tigray. This comes on top of the report about barbaric gender-based violence unleashed against the Tigrayan population as a whole. Can my noble friend tell the House, eight months later, how many of the UK team of experts set up to collect evidence of sexual violence, in precisely these kinds of situations, have been deployed to Ethiopia or to neighbouring countries to ensure that evidence is collected and perpetrators are eventually brought to account?
Lord Ahmad of Wimbledon (Con)
My Lords, I apologise as I did not catch the whole of my noble friend’s question because of the connection, but I picked up the main gist. As the Prime Minister’s special representative on PSVI—preventing sexual violence in conflict—I can assure her that we have prioritised this. On identifying personnel from our team, we are currently looking to formally deploy directly on the ground in the coming weeks. We have been working with agencies on the ground, including UNICEF, Red Crescent and the Ethiopian Red Cross Society. Thus far, although the situation is dire, we are currently supporting 545 survivors— 542 women and 3 men— directly with case management services. The proportion of people impacted internally and through allegations of sexual violence is far greater, so there is further work to do and this is a key priority for me as the Prime Minister’s special representative.
The Senior Deputy Speaker (Lord Gardiner of Kimble) (Non-Afl)
My Lords, all supplementary questions have been asked.
Covid-19 Update
(3 years, 6 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Thornton (Lab)
I thank the Minister for this Statement. These Benches agree with Mr Speaker; in the statement he made prior to the Secretary of State’s Statement last night, he expressed a deep frustration on behalf of all parliamentarians about the Government’s conduct. The announcement yesterday was both predictable and, sadly, predicted. I sigh, because the Prime Minister is now referring to 19 July as “terminus” day instead of freedom day, which has probably brought eye-rolls everywhere. When will the Prime Minister learn that caution and the use of data means also being cautious about how you express these matters?
The Minister will know that on these Benches we support the Government’s decision to delay the move to the next stage of the road map, but do so with a deep sense of anger, if not despair, that this should be necessary. Since the delta variant of coronavirus, first discovered in India, was detected in the UK in April, cases have surged across the country, with the variant now making up 96% of new infections. Experts confirmed last week that the variant is 60% more transmissible than the alpha variant, first discovered in Kent in 2020. Scientists at the Wellcome Sanger Institute have used genomic sequencing to produce maps which show how rapidly the delta variant has taken over in England, and I commend them to noble Lords. They are alarming in that they show the rapid spread to almost the whole country by the end of last week. It is doubling week by week—still with small numbers now, but that will change if this doubling continues.
There were warnings of a new variant in India on 25 March. It is reported that Ministers first learned that the delta variant was in the UK on 1 April. I must ask the Minister: is that true? The Government red-listed Pakistan and Bangladesh on 9 April, but did not red- list India until 23 April, by which point 20,000 people had arrived from India. As my right honourable friend Jon Ashworth said yesterday in the Commons,
“Our borders were as secure as a sieve, and all because the Prime Minister wanted a photo call with Prime Minister Modi.”—[Official Report, Commons, 14/6/21; col. 77.]
On 20 April I said to the Minister:
“With regard to protecting our borders, this week Hong Kong identified 47 Covid cases on a single flight from Delhi.”
We were closing our borders on 23 April, and I asked him:
“there will be hundreds of people arriving on flights from India. Is this not very risky?”—[Official Report, 20/4/21; col. 1769.]
I now return to that question. How many people arrived from India carrying the virus during the period from when the Government were aware of the variant at the beginning of April to 23 April, when India joined Pakistan and Bangladesh?
It is unforgiveable that Ministers have consistently promised to take control of our borders and conspicuously failed to do so, particularly at the very moment when it mattered most: when we were succeeding in the vaccination rollout and the gradual loosening up. The Prime Minister not only opened the back door to this variant; he failed to take measures to suppress it when he could.
There has been growing prevalence of this variant among school-age children, yet mandatory mask-wearing has been abandoned in secondary schools. I have raised this with the Minister at least once before. He has to explain why this has happened, despite being repeatedly asked in both Houses. We also know that isolation is key to breaking transmission yet, 16 months on, people are still not paid adequate financial compensation to isolate themselves. When asked about this at the Select Committee last week, the Secretary of State claimed that people would game the system. Does the Minister believe that this is true? After all the sacrifices and rule-following of the public, does the Minister have the same low opinion of our fellow citizens as his boss?
Yesterday, the Prime Minister and the Secretary of State supported extending restrictions by pointing to plans to go further on vaccination. But even after extending the doses as outlined in the Statement, large proportions of the population will still be left unprotected —having had one dose or none—and exposed to a variant that, if left unchecked, will accelerate and double every week. That would mean more hospitalisations, more long Covid, more disruption to schools and more opportunities for variants to emerge. What will happen under these circumstances? Will the Prime Minister still lift the restrictions?
My reading of this announcement and the terms in which is it couched is that the science points to us being in a very dangerous position. We could lose the battle that is going on between the vaccine and the virus. Will there be vaccine surges to counter this in areas where the virus is most prevalent? What is the plan to bring down infections and extend vaccination rates in hotspot areas? We have learned that in some places—Leicester, Chorley, Tameside, Salford and Wigan —the dose numbers have gone down. Has vaccination surging been abandoned in those hotspot areas? Will the Government bring forward accelerated second doses, and how are they working further to overcome vaccine hesitancy?
The Chief Medical Officer said last night that we would be lifting restrictions were it not for the delta variant. The Prime Minister should have moved at lightning speed to prevent the delta variant reaching our shores. Instead he dithered, and today he is responsible.
Baroness Brinton (LD) [V]
My Lords, we on these Benches echo the support of the noble Baroness, Lady Thornton, for the Commons Speaker’s statement yesterday on the Government’s continued abuse of Parliament.
We repeatedly warned the Government that sending out mixed messages about lifting restrictions on 21 June would cause problems. Even in March, the Prime Minister made it evident that he wanted us out of restrictions “irreversibly”—his word—by next Monday. What is worse is that we are now in a fourth Covid wave because of his desire to visit President Modi in India in mid-April. The resultant dangerous dithering about putting India on the red list contrasted sharply with the TV news. Every evening, we saw that the then delta variant was scything through India. Even then, Indian epidemiologists were talking about a much faster transmission. We on these Benches have repeatedly asked why India was not added to the red list on 2 April.
At yesterday’s press conference we were warned that the current delta variant wave will likely peak in mid-July, as cases, hospital admissions and patients needing ICU increase steadily. Even if vaccines mean that hospitals are not being overwhelmed, there is an increase. The UK now faces continuing restrictions entirely because of the Prime Minister’s delay.
The academic paper Estimating the Failure Risk of Hotel-based Quarantine for Preventing COVID-19 Outbreaks in Australia and New Zealand, published in February this year, calculated the risks and likely seeding of variants in the light of infection control and surveillance used locally. It now provides an essential baseline to assess seeding of cases coming from abroad. Devan Sinha of Oxford University and other UK scientists have used this to look at the seeding of the delta variant in the UK. He noted that 96% of the seeding of the delta variant occurred after 2 April—that is, after Pakistan and Bangladesh were added to the red list but India was not. He estimates that putting India on the red list on 2 April would have delayed the current wave by a further four to seven weeks. That four to seven weeks would have meant that all over-40s had had access to a second dose and, at seven weeks, most over-30s. He said that the wave would have been
“much smaller and mostly neutered”.
What have the Government learned from this delay? Why did it take so long for the delta variant to be moved from a variant of interest to a variant of concern? Despite MPs, Peers and scientists all asking in early April, Matt Hancock told the Commons that it would be listed as a variant of concern on 20 April. In fact, it was not listed until 7 May. Even worse, surge testing did not start until May either. If it was serious enough for India to be added to the red list by 23 May, why was it made a variant of concern only on 7 May? Was the delay with PHE or with Ministers?
The necessary continuation of restrictions at the current level means that a number of support schemes are now out of kilter with the restriction levels. These include lifting the embargo on evictions, the reduction in furlough support while people are still being asked to work from home if possible, and other business support mechanisms. Please can the Minister say whether they will be extended until we know that we are lifting restrictions completely? When, oh when, will any of these Statements or communications make it clear to the clinically extremely vulnerable and their families and friends what they are expected to do?
The Statement lists the areas where restrictions are to be lifted, many of which will be welcome, especially the 30-person limit on attending weddings, receptions and commemorative events, and out-of-school residential visits in bubbles of up to 30. But I ask again about mask wearing in schools, given the continuing increase in delta variant cases among children. Will there be specific guidance for these events, including lateral flow testing before and after, so that any outbreaks at a wedding could be tracked and managed? What level of new Covid cases per day would change the pilots on large events with higher capacities, especially the ones planned at full capacity?
It is good to see the removal of enforced quarantine for care home residents after trips out of homes. I never did understand that one, given that staff and visitors did not have to self-isolate.
It was good to hear the emphasis in the statement from Professor Whitty and Sir Patrick Valance on the importance of the second dose. I repeat my regular plea that all Ministers use this as a reference point. Far too many only ever use the number of people having had the first dose. With the delta variant, it is even clearer now that two doses are essential.
Why on earth did the Prime Minister say yesterday that 19 July is definitely the terminal day for restrictions? We all hope that he is right, but if he and Ministers are led by data, how can he say that?
Finally, the Statement refers to surge testing in areas where the variant is also surging, but maps show such a steady rise in cases across the country. Can the Minister confirm that there are enough test, trace and isolate staff to manage effectively this fourth wave of Covid?
The Parliamentary Under-Secretary of State, Department of Health and Social Care (Lord Bethell) (Con)
My Lords, I am enormously grateful to the noble Baronesses, Lady Brinton and Lady Thornton, for such thoughtful and searching questions.
Lord Bethell (Con)
As ever, I am also grateful to my own Benches for their support in these difficult times.
This Statement from the House of Commons has been reflected on very thoughtfully and accurately, as shown by some of the questions. I remind noble Lords that the rollout of the vaccine is happening at pace, but it deserves to have a breath and the space to be seen through, all the way, before we make categoric steps towards opening up. I emphasise in reply to these questions that the supply of the vaccine has stepped up. Pfizer’s forecasted supply in June will be 30% more than in May; in July, it will be 80% more than in June; and we hope to have that sustained level in August. By the week commencing 19 July, we will have offered all adults a first dose, as well as a second dose to those aged over 40 who have had their first dose by mid-May.
This rollout will be absolutely transformative. It will mean that we overtake an important inflection point: the numbers of those who have had their second dose, and who are therefore, as statistics show more and more clearly, highly resistant to this virus, and certainly to severe disease and death. This variant is undoubtedly much more transmissible, by between 50% and 80%. It is therefore completely proportionate and reasonable that we take this moment to delay step 4 and give the vaccine rollout the space that it needs.
I will build on the point from the noble Baroness, Lady Thornton, about the work done by the Sanger Institute on genomic sequencing. It is only because of enormous investment, and the skills and expertise of those in genomic sequencing in the UK, that we understand as much as we do about the variant. In her comments on India, the noble Baroness, Lady Brinton, spoke about the process of analysing VOIs and VOCs. She is entirely right to allude to the fact that this is an extremely complicated matter. This analysis is down to the scientific judgment of those who have a copy of the variant. It took a very long time to get a physical copy of the variant from India, or even to have a digital sequence of it. That is why these things can take some time.
This demonstrates why we need to tidy up and invest in international systems for surveillance. An enormous amount of energy went into the G7, and I can report to noble Lords that, during the health track, we made great progress in the pandemic preparedness work stream in setting up an international scheme for exactly this kind of surveillance. It is imperative that we know what is happening in communities all the way around the world, because we are all touched by the mutations of this virus, wherever they happen. We continue to invest in the national variant assessment platform, which is our offer to the world to genomically sequence any variant sent to the Sanger, so that we can share that data with countries around the world.
We have also invested enormously in the control of our borders. Through both its red list and its amber list, the managed quarantine service has done an enormous amount to stop the transmission of new variants into this country. I pay a huge amount of tribute to Border Force and those in MQS, who have done a terrific job of bringing in this completely new infrastructure and this service that has done a huge amount to keep out variants—including the Manaus variant, the South Africa variant and others—through the red-listing process.
The noble Baroness, Lady Thornton, asked about school-age children and mask wearing. It is important that we keep a balance. Even though the infection rate is creeping up among school-age children, we need to protect the life they have in schools. In areas of enhanced response, the wearing of masks is now a recommended option for those who seek to take it up. That is a proportionate response in areas of rising infection. But across the estate, we think it is proportionate to step away from that at the moment.
On isolation payments, I can share with the noble Baroness that we are putting £2 million of funding into an agreed pilot across the Greater Manchester area, testing ways to encourage people to comply with self-isolation rules. The pilot will include support and engagement teams who will work with households within 24 hours of a positive test. The pilot is expected to reach 13,000 people over 12 weeks, and I am hopeful that it will guide the way forward in this area.
The vaccination surge is absolutely working. We saw a dramatic change in the vaccination uptake among the community in Bolton in particular. That is one area of Britain where the infection rate is coming down, which demonstrates the effectiveness of both the vaccination surge and the testing surge. We are now focused very much on accelerating second doses, particularly for over-40s. Millions of over-40s have had their first dose; some have an appointment for their second dose and some do not. It is very much the focus of our efforts to ensure that we get those people over the line and finish the job, to protect them and the ones they love.
This is an important development in our steps programme. It is frustrating, but there is an enormous amount to be optimistic about and it is in that spirit that we have made this decision.
The Senior Deputy Speaker (Lord Gardiner of Kimble) (Non-Afl)
We now come to the 30 minutes allocated for Back-Bench questions. I ask that questions and answers be brief so that I can call the maximum number of speakers.
Lord Forsyth of Drumlean (Con)
My Lords, what is the point of this Statement? It was briefed to the newspapers over the weekend and the contents were given to members of the press for scrutiny. So Laura Kuenssberg has done the job and there seems to be little for us to do—which may account for the grumpiness I see around the Chamber. Has my noble friend seen the excellent report of the Constitution Committee of this House published on 10 June, entitled COVID-19 and the Use and Scrutiny of Emergency Powers? It is damning of the Government’s use of secondary legislation without proper consultation—of which today we have yet another example. Will the Government mend their ways and accept the recommendations in this excellent report?
Lord Bethell (Con)
My Lords, I absolutely pay tribute to the Constitution Committee. It was generous enough to have me appear in front of it, and I gave several hours of evidence. I am glad to see that my noble friend read the report; I hope he enjoyed my evidence in it as well. In that evidence I made it absolutely crystal clear that the Government work with the laws at our disposal; that is what we have to hand. There may be a time when Parliament chooses to review those laws. Now is not the time, but when it is we will do it.
Baroness Masham of Ilton (CB) [V]
My Lords, is the Minister aware that many people would like to know whether, having had two vaccinations, they have antibodies? Is this possible? Also, there has been a shortage of the Pfizer vaccine. How can this be increased worldwide?
Lord Bethell (Con)
My Lords, I agree with the noble Baroness that many are curious about whether they have antibodies, but I warn her that the presence of antibodies does not necessarily correlate with immunity. Some people have strong immunity and no antibodies, and some have antibodies but not immunity. This is one of the mysteries of the body’s response to the disease and one of the reasons why it has been such a confounding disease to fight. But if anyone does want an antibody test, they should ask their GP and it can be arranged.
Lord Clark of Windermere (Lab) [V]
My Lords, very bluntly, we are facing this unpalatable Statement today because of the Prime Minister’s inability to take decisions. The Government learned of the arrival of the Indian variant as early as 25 March, yet took no action for 30 days, allowing 20,000 people to enter the UK. The result is that they put the public’s health at risk. As a consequence, we now face a further four weeks of restrictions, with accompanying hardships. Have the Government learned their lesson?
Lord Bethell (Con)
My Lords, I am not sure whether I accept the characterisation presented by the noble Lord. We have worked incredibly hard to bring in a managed quarantine system that is a novel, new introduction into the UK. We have done extremely well in fighting off many of the variants that have come to our shores, including the Manaus variant, the South African variant and others. We have strong links with Pakistan, India and Bangladesh, which means there is a lot of traffic between our countries. I am not sure whether it would ever have been possible to prevent this variant making landfall in the UK at some point. But we have done an enormous amount in the UK to delay and prevent the arrival of these variants, and for that I am enormously grateful to those involved.
Lord Scriven (LD)
My Lords, following the data is the Government’s mantra. Using the Government’s own test and trace data, for the two weeks prior to Bangladesh going on the red list it had a positivity rate of 3.7%; India’s was 5.1%. Of all variants entering the UK, including the delta variant, more than 50% of cases came from India and fewer than 5% from Bangladesh. So if the Government were following the data on 2 April, why was Bangladesh put on the red list and not India?
Lord Bethell (Con)
The noble Lord is enjoying the benefit of hindsight very much indeed; we can all use the retrospectoscope. The data he refers to was not available to us at the time. We did not know that the variant now known as India 2 was a variant of concern. We did not know that it was going to be the most transmissible one. There were three variants in India; we did not know at that point which of them would present the most problems. It is extremely easy to sit here, look back and say that one person should have done this and another should have done that. I ask the noble Lord to try to sit in the seat of those who made the decisions at the time.
The Lord Bishop of Leeds
My Lords, regardless of matters of hindsight, does the Minister agree that prolonging the restrictions might be justified for certain reasons? I do not demur from that, but the prolonging of inconsistencies is a serious impediment to public adherence to the rules. You do not have to look very far to see where the discipline broke down a long time ago. For example—this is not special pleading; it is just at the forefront of my mind—you can sing in a pub but not in a church. This is what brings the rules into disrepute, and therefore people do not agree with them.
Secondly, can the Minister say something in response to Michael Gove’s reported comments about acceptable death rates? We have learned to live with acceptable death rates from flu and other seasonal diseases. Will the Government do some work on what might be an acceptable death rate from Covid in future and be up-front with the country as to what that might be? I think we can take it.
Lord Bethell (Con)
I hear loud and clear the frustration of many noble Lords on the question of singing in churches; it is enormously frustrating to those who have a passion for singing. But I would be pretending to be other than I am if I did not level with the right reverend Prelate and say that this is an airborne, aerosol disease. It is breathed into buildings at huge risk to those inside, and there is a direct correlation between infection rates, that aerosol and that kind of singing. The decision has been made with huge regret and not without a huge amount of scientific analysis, and those who have made their case have been heard loud and clear—but we have to fight this virus and prevent people getting sick.
I do not accept the right reverend Prelate’s view that discipline has broken down. Quite the opposite: I am astounded by the British public and their adherence to voluntary guidelines and arrangements. I pay tribute to the British public, and I do not think that the right reverend Prelate does any favours when he suggests that discipline has broken down.
Lastly, I really do not accept the concept of an acceptable death rate. That is not how we play the health system in this country. We are here to save lives; that is our priority. There is a balance between the economy, freedom and lives, but as a Health Minister my starting point is to save lives.
Baroness Sugg (Con)
My Lords, it is great to see the data on the efficacy of vaccines against the delta variant, but we know that that might not always be the case in the future. The announcement from the Prime Minister that we will share 100 million of our excess vaccines is a welcome first step, but the G7 failed to achieve its 1 billion target, let alone the 11 billion that the WHO says is needed. Does my noble friend the Minister agree that variants present one of the greatest threats to the unlockdown here in the UK and that the pandemic is not over here unless it is over everywhere? What are the next steps to ensure that low-income countries are vaccinated as soon as possible? Given the success of our vaccine programme, will the UK take a leadership role in this, as we continue our G7 presidency?
Lord Bethell (Con)
Yes, I entirely agree with my noble friend on this matter: we are of course only safe when we are all safe. As chair of the G7, we have done an enormous amount to try to show leadership in this area. The G7 committed to share at least 870 million doses directly over the next year and to make these doses available as soon as possible. But the numbers involved are absolutely enormous: 870 million is an astonishing figure, but it is not near to the 8 billion that we ultimately need. At the end of the day, we need manufacturing in all the regions of the world. That is why, as the supporter of the AstraZeneca vaccine, which is made on a profit-free basis and on extremely generous terms to manufacturers of the world, Britain has given an enormous benefit to the world. I very much hope that the manufacturing can ramp up to meet that need.
Baroness Meacher (CB)
My Lords, I welcome the small but vitally important concession to care home residents in the Statement. However, the Prime Minister has left in place the cruel and unnecessary controls over care home visits. Even visitors who have had two vaccinations and a negative test before visiting must wear PPE and maintain social distancing—no hugging, for example. This is inhuman, particularly for people with dementia, and the risk must be close to zero. Will the Minister plead for immediate changes to those really unnecessary rules? They are well overdue.
Lord Bethell (Con)
The noble Baroness makes the case extremely well, and I agree with her sentiment that the rules are extremely tough. I have heard loud and clear the many noble Lords who have made this case, and we look at it very carefully and thoroughly. At the beginning of the pandemic, one of the most alarming images—and one that has always stuck in my mind—was that of care homes in Spain in Italy, where so many of the residents had died. What we know for sure is that, even with the vaccine, the virus can spread through a care home at great pace—typically half of residents will be infected the moment the virus arrives in a care home. Even with the vaccine, we still have to step carefully, and that is why these measures are still in place. I very much hope that they will be lifted, and I will celebrate that along with all noble Lords who have made this case to me in the past.
Lord Campbell-Savours (Lab) [V]
My Lords, following the comments of the noble Baroness, Lady Sugg, when Gordon Brown called the G7 summit an “unforgivable moral failure”, was he not right? With potentially billions to vaccinate, the West has miserably abandoned the moral high ground on vaccine supply, leaving it to the Chinese and Russians to win new friends and secure influence worldwide. Has not Prime Minister Johnson, with his short-sighted, unimaginative approach, damaged our credibility across the world? We should have been a major worldwide vaccine distributor-producer; we failed, and we failed miserably.
Lord Bethell (Con)
No, I am afraid the noble Lord completely overstates the case; I do not accept the characterisation he has made at all. The challenge is enormous, and he is right to feel that this is one of the most important tasks for humanity in the round—I cannot emphasise that enough. But the practicalities are that, in Britain, we make hardly any vaccine at all. It is not for us as a nation to manufacture the vaccine. Where we have contributed is, first, through the science—particularly the AstraZeneca vaccine—and, secondly, through global leadership. The Prime Minister, through the G7, has sought to use that post as much as he can, in order to promote the vaccine. I do not accept that China and Russia have in any way contributed anything like the West has done; the numbers simply do not support that. We are working extremely closely with the regions of the world—with Africa, South America and beyond—in order to set up the kind of manufacturing that those countries need to provide their people with the safety from the virus that they deserve.
Lord Dodds of Duncairn (DUP)
My Lords, urgent decisions on Covid restrictions are needed elsewhere in the United Kingdom as well. Does the Government accept, however, that decisions that are for a devolved Government to make must be that devolved Government’s responsibility, and their responsibility alone? For Westminster to impose its will on the Assembly on devolved matters would be totally unacceptable and would lead inevitably and inexorably to a collapse of confidence in devolved institutions.
Lord Bethell (Con)
I am enormously grateful to all the devolved authorities for the work that they have done with the vaccine and in healthcare. Generally, it has been a very close collaboration, and one that I hope continues.
Lord Hussain (LD)
My Lords, in early April, when the Government put Pakistan, along with Kenya and the Philippines, on the red list, they gave us reasons which many people believe did not add up—but I am not going to argue with that. What we did not know, and still do not know, are the criteria for those countries to be taken out of the red list, as there are millions of people affected by that. In April, in Pakistan, new cases were running at over 6,000 a day. That has now been reduced to just over 1,000 a day. Pakistan has made a huge improvement in reducing the number of Covid cases. Will the Minister tell the 1.4 million British people of Pakistani origin living in this country when the Government plan to take Pakistan off the red list, and what are the criteria?
Lord Bethell (Con)
The noble Lord is entirely right to ask about the route out. That is exactly what we hope to be thinking about very soon. The criteria will include how much vaccination we have here in the UK and the efficacy of that vaccine against all the variants present in the world. They will also include the presence of variants in the other countries; there is a stepped process for analysing that. Lastly, they will include the infection rates in those countries. We hope to be able to take concrete steps on that shortly. The treaties necessary to have mutual vaccine recognition are being discussed at a high level as we speak.
Lord Cormack (Con)
My Lords, my noble friend will not be surprised if I ask him whether he can guarantee that, by 19 July, all care home workers will have been vaccinated. But could he also answer this question? Why is he allowed to go down to his local pub and sing “Roll Out the Barrel” but he cannot go into his local church and sing “Guide Me, O Thou Great Redeemer”?
Lord Bethell (Con)
I completely accept the challenge. These anomalies exist and he is entirely right to beat up the Minister for this kind of stuff. It is unbelievably difficult to write guidelines that touch so many different parts of life, and I would not pretend for a moment that there is 100% consistency in everything that is done. But I have made the point emphatically: these things are done to save lives and protect people from infection. They are done with a heavy heart, having looked at the scientific evidence, with a sense of regret that we are letting down those with a passion for singing and religious worship, and in the hope that we can get rid of them very soon. We are taking concrete steps as quickly as we can to deliver the vaccines. In terms of care homes, as he knows, there is a consultation in process and that consultation is working its way through.
Baroness Prashar (CB) [V]
The Prime Minister rightly says that we have to learn to live with Covid. Therefore, does the Minister agree that, while vaccinations provide protection and effective test and trace is essential, it will continue to be necessary to take sensible precautions for self-protection if we have to learn to live with this virus and its variants? Does he also agree that there is a need for continuous public education and clear, consistent guidance to explain why these precautions are necessary? If so, apart from the effective rollout of vaccinations and test and trace, what plans do the Government have in the longer run for promoting a public education health programme?
Lord Bethell (Con)
I am enormously grateful for the question from the noble Baroness. She gives me an opportunity to lift my head for a moment and think about a brighter future, because she is entirely right. One of the possible benefits from this awful virus is a different approach to public health that is much more effective in fighting contagious diseases, where we have much more effective tests for everything from flu to RSV to things like Covid as well, and where we can get therapeutic drugs to people the moment they test positive so that they do not fall sick. We can use this investment in public health to help level up some of the health inequalities that have beset this country so heavily.
Lord Hunt of Kings Heath (Lab)
My Lords, is there not a problem in looking for a different approach in the future? The precedent set by the Government’s attitude to Parliament fills one with a great deal of concern about the way our parliamentary democracy is going to work. Can he simply tell me why the Prime Minister did not make a Statement to the Commons last night?
Lord Bethell (Con)
My Lords, the Secretary of State was there. I thought he presented the steps regulations extremely clearly and did a great job.
Lord Roberts of Llandudno (LD) [V]
Can I ask the Minister what we have learned from the treating of this pandemic to help us face the future? We have learned very clearly how much countries depend upon one another. Our first vaccines came from Belgium. Can we make sure we do not build walls, but build bridges, as we look forward to the future?
Lord Bethell (Con)
My Lords, I am extremely touched by the noble Lord’s words, and I completely endorse his meaning. It was awful last year when we saw multilateralism and global co-operation fracture and decay. We had to look to our friends and resources within our own borders to answer the pandemic. That did not work and will not work. The noble Lord is absolutely right. From a pragmatic point of view, we depend upon global supply chains for the benefit of global science. From a personal and human point of view, we depend upon the solidarity of humankind to get us through these awful moments. I completely endorse the noble Lord’s point.
Baroness Altmann (Con) [V]
My Lords, I commend my noble friend for all his work helping fight this dreadful pandemic; I know his dedication is second to none. I hope he will forgive me for asking: what is the endgame? He has said today that we must prevent people getting sick, but that seems to mean just getting sick with one illness: Covid. What about the suicides, heart attacks and cancers that are being missed because of lockdown? Covid is responsible for less than 1% of deaths right now. Can we not trust the British people to be sensible and choose the risks they are willing to take, along the lines the noble Baroness, Lady Meacher, said, using the example of the Government banning hugging for care home residents? I find this intrusion in our private everyday lives deeply frightening.
Lord Bethell (Con)
My Lords, I absolutely forgive my noble friend because that is an extremely sensible question. I take it on board completely. The endgame is to end a contagious disease that has exponential growth. As she knows, R is currently between 1.2 and 1.4. If it goes unchecked, this disease will spread pretty much through the whole population. The vaccine is excellent at keeping people out of hospital, but not everyone. It is excellent at preventing deaths, but not for everyone. It is good at stopping the disease, but only half of the disease. We must get enough vaccine out there so that the disease will not run through the entire population and lead to the deaths of thousands, tens of thousands, or more. That is the endgame of this project.
Lord Trees (CB)
My Lords, will the Minister confirm that the Covid cases reported daily in the media are not clinical cases? They are not sick people but positive results of the PCR test. Given that the PCR test is incredibly sensitive and can detect tiny numbers of virus particles, what proportion of positive tests is likely to develop clinical disease?
Lord Bethell (Con)
My Lords, the PCR test is very sensitive. Most people who take the test are presenting a symptom, so a very high proportion of those positives are people who have the disease when they take it. Of course, there are many who have the disease and do not take a test at all, so there is more disease in the population than accounted for in the positive tests. There is a very small proportion of people who might have shreds of the virus from a previous infection who then test positive, but it is thought that that proportion is very small.
Lord Robathan (Con)
My Lords, yesterday the Prime Minister said that this extension of restrictions will
“save many thousands of lives”
and he was backed up by the Health Secretary. Since 18 May, the weekly average number of deaths per day from Covid has been in single figures—almost all of whom will have had underlying health conditions—while each day about 450 people die from cancer. Will the Government publish, or will my noble friend give Parliament the opportunity to see, the evidence and research behind the “many thousands of lives” saved?
Lord Bethell (Con)
My Lords, I completely understand the point. There is a lag to the deaths. At the moment, we are seeing the infection rate go up, which is leading to a small increase in hospitalisations. As my noble friend quite rightly points out, that increase has not been seen in deaths yet, and thank goodness for that. We do not know for sure what proportion of infections will lead to severe disease or death. We know it is a percentage; we do not know exactly what percentage. But should the disease spread through millions in the population, which is entirely possible without the NPIs we have in place, then the number of deaths will be very significant—possibly as many as we have seen already.
Baroness Hoey (Non-Afl)
I do not think the Minister should dismiss so lightly the questions about inconsistencies in the regulations. This really does get home to whether the public are going to believe in and carry out those regulations. Can I give him one example? Wimbledon is going to be full to capacity with singing, clapping and cheering—yes, outside—but how on earth then can weddings and outside receptions not be allowed to sing, cheer and do all the things that happen at weddings? These inconsistencies do not make common sense. The Minister needs to understand that.
Lord Bethell (Con)
I hope that the noble Baroness will accept my apology if I have in any way suggested that I am flippant about inconsistency—I am not. What I have in my mind is the huge amount of work that is done by policy officials in order to try to be as consistent as possible. I pay tribute to the colossal human effort that goes into trying to make sure that everything we do is aligned. It is a monumental and very difficult task.
The noble Baroness is right to say that Wimbledon is a big event pilot, quite different in its ambition and its tone to some of the other events—for instance, the care homes that the noble Baroness, Lady Meacher, referred to. What we are trying to do is to take fairy footsteps out of the pandemic. Wimbledon, for instance, will account for many hundreds of thousands of tests as we use very rigorous testing procedures to try to protect the rate of infection in that big event. If it is successful, it will help us lead our way out of this horrible arrangement.
Lord Rooker (Lab) [V]
At a personal level, I feel very sorry for the Minister. He must realise that there are considerable doubts across both Houses about the Prime Minister’s sincerity and truthfulness. Have we been told the whole truth and nothing but the truth about the delay over dealing with India?
Lord Mackenzie of Framwellgate (Non-Afl) [V]
My Lords, in this pandemic, as always, the difficult judgment that has to be made is between lives and livelihoods. Decisions have been taken to protect lives by retaining the existing measures for a further month. The Minister will no doubt appreciate that I and other noble Lords have been extensively lobbied by musicians, independent workers in the hospitality and entertainment sectors, who have fallen through the cracks with no support. Does he not agree that it is reasonable to argue that an equitable balance now would be to provide targeted financial support to those self-employed and freelance workers who have not had a fair deal throughout this crisis?
Lord Bethell (Con)
My Lords, having worked in the music industry for 15 years, I absolutely identify with the challenge he describes. However, I remind him that we have been emphatically forthcoming in trying to support workers through this difficult pandemic. We have provided £70 billion for the furlough scheme and £33 billion for the self-employment income support scheme, which would touch many of the musicians to whom he refers. We have stepped forward financially in a very big way and will continue to do so until the end of this awful situation.
Baroness Fox of Buckley (Non-Afl)
The Minister has said several times that there are grounds for optimism. Does he not realise that this delay has caused despair? The Minister urged opponents to sit in the seats of decision-makers. Can I urge him to sit in the seats of the trashed events industry today and those likely to lose their jobs in hospitality, sport, theatre and so on? I appreciate that many people and the public remain nervous of living with the virus, despite the wonders of the vaccine. However, is it not the job of the Government to lead with courage, to reassure people not to be unduly frightened or succumb to fatalism, and to protect the unquantifiable non-Covid-related social fabric of society, which they are tearing up?
Lord Bethell (Con)
My Lords, I sympathise with those in the events and hospitality industry. As I said a moment ago, it is an industry I have a huge affection for. I worked in it for many years and I know through my friends and family who work in it how hard hit it has been, in particular for those who work on a casual basis and enjoy it from an aesthetic point of view as well as needing work of a casual nature. But these decisions are tough and hard. It would have been easier, perhaps, to have given ground in areas where we have been pressed and lobbied, but we have, where necessary, made the tough decisions based on the science and the advice that we have from clinicians in order to protect both life and the economy. At the end of the day, we do not have an economy if we have a pandemic running through our society. We do not have trust and we do not have people going out and about and enjoying normal lives if there is disease. That is one important reason why we have backed the decisions we have made.
Skills and Post-16 Education Bill [HL]
Tuesday 15th June 2021
(3 years, 6 months ago)
Lords ChamberRead Full debate Skills and Post-16 Education Act 2022 View all Skills and Post-16 Education Act 2022 Debates Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State, Department for Education and Department for International Trade (Baroness Berridge) (Con)
My Lords, first, I thank those who contributed to the debate following Her Majesty’s gracious Speech, when we first discussed this Bill. I also thank noble Lords who attended the recent briefing with departmental Ministers. For the benefit of noble Lords contributing remotely, I note that the Parliamentary Under-Secretary of State for Apprenticeships and Skills is physically present with us in the Chamber today. I also look forward to hearing the maiden speech of the noble Baroness, Lady Black of Strome, and it is wonderful to see the priority given to the Bill by the noble Baroness, Lady Wilcox, who is speaking today on her birthday. I am glad to see a common desire to look at skills reform and further education. I look forward to the debate that we will share, and I welcome the scrutiny that the Bill will be placed under.
We can all agree that skills and post-16 education needs its moment in the spotlight, both in Parliament and in communities across the country. We talk about the forgotten 50% of people who do not go to university; today, we are giving this policy and the people it affects the attention they deserve. We can see today the vast challenges facing the nation. Covid-19 has significantly impacted the economy and shown us how urgently we need a resilient, highly skilled workforce. We all see the clock ticking towards 2050, when we have committed to reaching net-zero carbon emissions, and we are all aware of our need to succeed as an independent trading nation, following our departure from the European Union.
This is also the perfect opportunity to think about what constitutes our nation. Is it one big city, or a couple of big cities? No, it is a diverse set of communities, families and individuals, with different ambitions and potential. This means that we need to match opportunities with the talent that we know can be found across the country. We need to ensure that people can succeed without feeling that they have to move to one of the big cities. This past year’s extraordinary transition to flexible working for many has only proved this further. We have a duty to make sure that the skills provision offered in people’s home towns meets their needs and ambitions and that of employers, so that everyone has the opportunity to realise their full potential and find success, wherever they live and whatever their background.
The evidence is clear: we have a problem in the balance of education. Only 4% of young people achieve a qualification at higher technical level by the age of 25, compared to a third who get a degree or above, yet 34% of working-age graduates are not in high-skilled employment. No wonder more parents would now prefer that their child gain a vocational qualification than a degree. University is a great option for some but not the best option for everyone, and it should not be seen to be the only pathway to success. My honourable friend, the Parliamentary Under-Secretary of State for Apprenticeships and Skills often tells me how inspired she is by the learners she meets on visits to colleges and further education institutions—people who have found their vocation and their way of success through technical education.
Philip Augar’s 2018 Post-18 Review of Education and Funding made the call for parity of esteem between further and higher education. I take this moment to offer my congratulations on his recent knighthood in the Queen’s Birthday Honours List. The review set out the case very clearly for a genuine choice, for everyone, beyond the fantastic opportunities offered through our world-class university system. I also pay tribute to the noble Baroness, Lady Wolf, who served on the review’s panel. The Government have listened to this call; the Skills for Jobs White Paper, published earlier this year, set out our vision to reform post-16 education and training. We will prioritise flexibility, accountability and quality, and we will put employers at the heart of the system, building on what we have done with apprenticeships and T-levels, so that individuals can know what their qualification leads to, and employers can have confidence in them. Given that 80% of the workforce of 2030 are already in work today, it is essential that we have a flexible system for adult retraining which supports people to progress in their careers.
We want our reforms to work for everyone, which is why we are working with noble Lords, including the noble Lord, Lord Addington, to ensure that we support those with special educational needs to access the improved skills training and education that our reforms aim to deliver. I take this opportunity to thank the noble Lord for his dedication, challenge and advocacy on this issue, as well as our other FE ambassadors, who have brought a breadth of knowledge and enthusiasm to our discussions.
The chair of the Education Select Committee, the right honourable Robert Halfon, called the White Paper a “sea change”. The Association of Colleges noted that it
“recognises the vital role that colleges and further education will play in levelling up for people and places whilst tackling long standing concerns about stagnating productivity”.
Employers such as the Co-op welcomed our reforms.
We know that to deliver the reforms successfully requires funding. That is why we have backed up the White Paper with £2.5 billion towards the national skills fund, £1.5 billion to improve the college estate, and £650 million extra into further education for 16 to 19 year-olds. The White Paper sets out our comprehensive programme for reform, and the Bill before us will provide the necessary statutory underpinning for change.
The Bill is divided into three sections that support the principles of the White Paper. First, it aims to provide a framework for ensuring that skills and post-16 education leads people towards a great job. That is why we are creating a statutory underpinning for local skills improvement plans, which we will shortly be trailblazing in some local areas. By putting employers and their representative bodies at the heart of the post-16 skills system, we are focusing on meeting local skills gaps and prioritising training in growth sectors. This will ensure that employers have the skills they need to drive growth in local areas; it will support opportunities for learners to get good jobs and help the existing workforce to retrain. This will help us get rid of the idea that career success can be found only in a big city.
Relevant providers will need to have regard to these plans when considering their technical education and training offer. These changes will also be supported by a new duty on further education institutions to review their provision to ensure that it meets local needs. In addition, the Bill supports the provision of the advanced technical and higher education skills the country needs by creating a strong link to employer-led standards. The Bill will reform the technical education system so that it is high-quality, stable and coherent. It does this by giving the Institute for Apprenticeships and Technical Education powers to approve new categories of technical qualifications, simplifying a system in which there are currently over 12,000 qualifications. The Bill also gives a statutory footing to the collaborative relationship between the institute and Ofqual.
Perhaps the major plank of the Bill is that it supports the introduction of the lifelong loan entitlement, as part of a flexible lifetime skills guarantee. This measure will be rolled out from 2025 and will give all adults access to the equivalent of four years of student loans for higher-level study at levels 4 to 6. The loans will be able to be used flexibly, full time or part time, for modules or full qualifications and for provision in colleges or universities. At the moment, maximum amounts for funding are set in relation to an academic year. The Bill will make it clear that maximum loan amounts can be set in other ways. The Government will consult on the details of the lifelong loan entitlement, including on how best to support students with the living costs of study, and whether equivalent and lower qualifications restrictions should be amended to support retraining and stimulate provision.
The ambition is to replace the two existing systems that offer government-financed loans to learners studying at levels 4 to 6 with the single LLE system. These two existing systems of higher education student finance and advanced learner loans provide funding support for different types of courses. The lifelong loan entitlement aims to create a simpler and clearer system, but it will require extensive operational changes to the student finance system and the types of course available, which is why it will be rolled out from 2025. It is the step change in the system that will give people the opportunity to upskill, retrain and reskill, providing the alternative to the notion that a standard three-year degree is the only route to success and giving people the flexibility to change their future.
Of course, it is important to ensure that there is sufficient provision for lower-level qualifications. That is why, separate from the Bill, the Government’s adult education budget will continue to fully fund courses in English and maths up to and including level 2 for adults who have not previously attained a GCSE grade C or, in new currency, grade 4. The national skills fund funds adults to complete their first level 3 qualification alongside the new skills boot camps.
These reforms mean very little if education or training provision is not of the highest quality. That is why the second part of the Bill proposes powers to make regulations to improve and secure the quality of FE initial teacher training by shaping the market for that provision. This power will be used only if these improvements cannot be achieved through working collaboratively with the sector. The Bill will also make it clear that the Office for Students has the ability to make assessments by reference to absolute student outcomes. This will give confidence that the same standard can be applied across all higher education providers and for all students, while continuing to take into account context and individual circumstances.
The third part of the Bill aims to ensure there are sufficient protections in place for learners. It will allow the Government to introduce a list of post-16 education or training providers. To be on this list, providers will need to meet conditions aimed at protecting learners against the negative impacts of potential provider failure. This issue, which relates particularly to independent training providers, was raised in this House during the passage of the Technical and Further Education Bill in 2017. I am glad to bring a solution to this issue back to the House today. This section of the Bill also gives powers to the Secretary of State, who took his place on the steps of the Throne as I began, to intervene in the statutory further education sector where local needs are not being met, or to direct mergers or structural change where that is the best way to secure improvement. Alongside the final part of the Bill, it will improve the efficiency of the FE insolvency regime. One of the strengths of the FE market is the flexibility of its provider base. These measures will give the impetus for this flexibility to be used to protect learners and provide education and training that has this clear path towards the labour market.
I am delighted that this Bill is before us today. We have an opportunity to begin the process of transforming opportunities for young people and adults. Events of the past year have shown us how important skills and further education will be to our recovery as both an economy and as a nation. As noble Lords have often said, this has been the Cinderella of the sector for too long. This reform is long overdue, but is only one step on a longer journey. We will work to ensure that the 50% of people who do not go to university will no longer be called “forgotten” and stuck in what are wrongly called “forgotten towns”. Instead, we will make skills and jobs available to everyone, wherever they are. This Bill will help provide those learners with high-quality provision, protection and the skills and education that can transform their lives. I beg to move.
Baroness Wilcox of Newport (Lab)
I thank the Minister for her kind wishes—a year older and, hopefully, a year wiser in the company of your Lordships.
I am opening this debate from the Opposition Front Bench, and I am able to do so after a lifetime of working with young people, developing their skills and encouraging lifelong learning. In recent years I was able to use that experience as the local government education spokesperson for Wales, specifically with a skills agenda as the lead portfolio holder in the Cardiff capital region, which covers 52% of the Welsh population. The regional skills partnership showed me that, by working together with all interested parties, real progress could be made to promote strategic and collaborative decision-making. Representatives from business, further and higher education training providers and national and local government joined together to share their knowledge and understanding of the sectors they represented, to ensure the region was able to respond to a demand-led approach to developing skills and talent. The lack of that level of shared collaboration across all sectors is a significant area of concern on the face of the Bill as it stands.
While wholesale changes to the way we support FE skills, adult learning and part-time HE are long overdue, this Bill remains inadequate to tackle the scale of the skills challenges that have resulted from years of neglect and austerity, exacerbated by the pandemic. As furlough ends, no community will be untouched by unemployment. It is vital, therefore, that a joined-up, place-based employment, skills and careers system offers adults and young people the recovery they deserve, by providing access to quality education and training opportunities. A range of choices and opportunities should be central to any reform, and changes to the post-16 education system should allow for progression and pathways between technical education, apprenticeships and existing further and higher education qualifications.
Among others, local government has an important role. Councils have direct functions to plan post-16 skills, support young people with specific needs and deliver adult and community learning and other related functions. Mayoral combined authorities have devolved responsibility for the adult education budget, which they have used to reshape the local further education offer, working with employers, FE providers and constituent local authorities.
There is, however, an overt emphasis in the Bill on an employer-led approach to develop local skills improvement plans alongside training providers. We offer that MCAs and local authorities should be strategic partners—and on the face of the Bill. Their wide-ranging knowledge and expertise on this agenda are currently missing, and we will be seeking amendments to develop collaboration, away from the overarching employer-led approach that currently dominates.
Therefore, can the Minister explain why metro mayors and combined authorities, many of which have democratic accountability for local skills and economic regeneration, have been excluded? How do the Government envisage LSIPs relating to existing local and regional economic strategies, especially where funding may be directly linked to delivery against them? And why are local enterprise partnerships not covered in the Bill?
Furthermore, the Bill does not provide support for any qualifications below level 3, despite lower-level qualifications offering many adult learners key progression routes. Nor does it support subjects outside a narrow band of technical disciplines. Labour is concerned that nearly 1 million priority jobs will be excluded from the LSG in sectors facing a skills shortage.
The Bill also appears to omit reskilling and second level 3 qualifications. So can the Minister confirm that the LSG does not cover subsequent level 3 courses? Does she agree that all adults should be eligible for retraining, given the impact of the pandemic and changing market needs? Is it not now time that the Government put the LSG on a statutory footing?
We are concerned that the detail of the lifetime loan entitlement is yet to be confirmed. It appears that it will only cover tuition costs for higher-tuition courses. Labour believes the system of loans, and in particular means-tested grants, should be extended to support adult learners’ living costs, and that universal credit conditions should be reformed so that the people who would benefit from attending college or accessing training while unemployed or in part-time employment do not lose out.
The planned introduction of the LSG in 2024 and the LLE in 2025 should also be brought forward by several years. Can the Minister assure the House that the Government will introduce these LLE amendments in Committee and ensure that they are not tabled at the 11th hour?
There is concern that many adults will be unable to take advantage of the opportunity to gain level 3 qualifications if they lack a level 2 qualification. The Bill omits the value of qualifications below level 3 in creating progression pathways for students. Recent Department for Education data has shown the return on investment of these qualifications and concluded that the present net value of qualifications below level 2 is higher than for level 3.
Another clear omission is funding for adult learners to take a second level 3 qualification. Many adult learners will have achieved their first level 3 many years ago and may have used it to pursue a career that is no longer viable. With the economic turmoil that has come from this pandemic, many adults will want and need to reskill rather than upskill—to switch sectors and enter new careers. Support for second level 3 qualifications could facilitate this.
Every area in the UK needs a mix of provision specific to their local context—to their community and sub-economy. However, the Bill is not explicit in certain features of the LSIP, including what constitutes “local”. Is it a specified area, or is the scope of further education provision included? Does the Minister believe that the definition of “local need” should incorporate a broad range of outcomes related to health and well-being, community participation and other social and economic outcomes that can be linked to community adult learning?
The Bill does provide for a statutory basis for LSIPs, with the Secretary of State gaining powers to designate employer representative bodies. I am pleased to see that he is here to hear it directly from me. But we are concerned that the Government’s desire for employers to take the lead in skill reform lacks clear structure and transparency and will render providers passive recipients of LSIPs. We will seek to amend the Bill to empower metro mayors and combined authorities to coproduce the plans, in recognition of the crucial they have to play.
We will seek to extend LSIP consultation to student representatives, trade unions, local and devolved government and other relevant agencies. We also intend to probe further how ERBs will be held to democratic accountability and the degree to which providers meet local needs. We are concerned that the Secretary of State has the power to select or sack ERBs, sign off on all LSIPs, dictate whether colleges fulfil these requirements, and to merge or replace colleges without recourse to local circumstances. The first port of call for approving local plans and remedying poor local performance should be local and not the centralisation of taking back control to Westminster. The Secretary of State’s powers must be narrowed to apply only in clearly defined, exceptional circumstances.
The Bill gives the Institute for Apprenticeships and Technical Education—a non-departmental public body directly accountable to Ministers—the ultimate sign-off power for the approval and regulation of technical qualifications. We are concerned that this handing back, day to day, of political control of technical qualification regulation would undermine the independent status of Ofqual and risk a cumbersome new dual regulatory approval system. We will seek to amend the Bill to ensure that Ofqual remains the sole body.
We further believe that the failure to link this Bill to the apprenticeship levy is a missed opportunity, given that the underspend could be used to provide quality training, education or employment opportunities. It is especially disappointing that supported internships, which can play a huge role in supporting learners with learning difficulties to prepare for and enter the world of work, are missing from the Bill.
We urge the Government, in tandem with the introduction of the Bill, to prepare and publish a cross-departmental 10-year national strategy for education and skills to deliver on a wide policy agenda. Consultation must be wide so that the strategy and oversight of meaningful collaboration, as I outlined at the beginning, can be carried forward towards a better tomorrow for the people who have done so much during this past year to demonstrate the dependence we have on their skills and their hard work in running our services and industries.
Lord Storey (LD)
My Lords, I too wish the noble Baroness a happy birthday. I also look forward to hearing the maiden speech from the noble Baroness, Lady Black.
We are finally getting there, are we not? There is the work that the noble Baroness, Lady Wolf, has done and now she has been promoted to advising the Prime Minister on this area. There is Philip Augar’s report, which was so important. There is the Technical and Further Education Act, which the noble Lord, Lord Johnson, was part of; it is good to see him taking part in this debate. There seems to be a sort of sea-change taking place, which I very much welcome. I suspect that many of us will repeat the same issues.
I consider this the most important education Bill that your Lordships have considered in certainly the last 20 years. The skills and vocational education Bill arrives when we face huge skills shortages, high rates of youth unemployment and the uncertainties of the post-Brexit, post-pandemic world. Yet opportunities are there, not least the green revolution. The Bill must be about the education system that we want for our children and young people.
Many young people are being denied the opportunities that their academic peers have always received. We have an educational ethos in our country that celebrates and rewards the academically minded and treats the rest as second best. For most parents and, indeed, society, the hallmark of a successful education is passing the required number of GCSEs to progress into the sixth form and then getting good A-level grades to secure a university place. However, research tells us that an academic and knowledge-based curriculum is not suitable or worth while for 50% or so of our school pupils, yet we persist in putting these pupils in an academic straitjacket. Instead, we should provide a vocational education as good, respected and celebrated as the academic one. Would it not be uplifting to see banners outside school gates praising not only the A-level pass rate but the vocational success of our students?
The other key ingredient must be first-rate careers guidance and education. Every pupil should be given regular face-to-face support by a qualified careers teacher or officer to understand the pupil’s abilities, interests and passions, and to clearly let the pupil see the opportunities available and not try to push them into the sixth form. It might be more appropriate for them to go to a further education college or a UTC or to undergo an apprenticeship. By doing this, we will gradually change the mindset not just of pupils and parents but of society itself, so that vocational education is regarded as the right route for a large number of our students.
The Bill is an important beacon for changing attitudes and perceptions. It gives us the opportunity to realise that education should be an opportunity for life, so whether you are a mum who is now ready to go back and study or someone who wants to retrain so that they can improve their job prospects, that opportunity is freely available. There should be no barriers to learning. Everyone, no matter their circumstances, should be encouraged to have lifelong learning opportunities. Indeed, as our Prime Minister said:
“These new laws are the rocket fuel that we need to level up this country and ensure equal opportunities for all … I’m revolutionising the system so we can move past the outdated notion that there is only one route up the career ladder, and ensure that everyone has the opportunity to retrain or upskill at any point in their lives.”
They are passionate words from the Prime Minister. We must ensure that the Bill captures his rhetoric. I am sure there will be a large number of amendments that enable this to happen.
If we really mean lifelong learning opportunities for all, a number of areas need clarification and probably amendments. The lifetime loan entitlement would open up tuition fee loans for people taking level 4 and level 5 qualifications, which are especially important for unlocking higher technical skills. Many adults will be unable to take up these opportunities because there is no support for living costs while they are taking a course. Thus these people will be prevented from transforming their life chances and being part of the skilled workforce that the country and the economy need. We also need to look at the entitlement rules for those people who are unemployed and on universal credit and would benefit from attending college. The 16-hour rule is a barrier to those NEETs who could be upskilled or retrained.
As we have heard from the noble Baroness, Lady Wilcox, the Bill offers no support for those students below level 3. Surely it is important that we recognise that this is part of the educational landscape. Many adults achieved their level 3 many years ago and maybe want to pursue a new career or reskill. Support could facilitate this. Should we not be making funding available for these learners?
I want to raise two other considerations, perhaps minor ones but important ones. Some people of faith, including Muslims, do not feel able to take on an interest-bearing loan. The Government identified this as a barrier to participation. What progress has been made on a sharia-compliant loan system? Students from disadvantaged backgrounds or those on universal credit struggle to get the technology they need. Will the Government consider making IT support available for these students? While we are talking about barriers, what progress has been made on the issue of 16 year- olds who are denied the opportunity to take part in the Kickstart programme because they are on universal credit?
Apprenticeships were one of the flagship policies and achievements of the coalition Government, but sadly we have seen the number fall 18% year on year, so that in 2019-20 it was down by 319,000. We know that any business with a payroll of more than £3 million has to pay 0.5% in a levy, but businesses are often unable to use all their levy, so it gets clawed back by the Treasury. A recent survey by Energy & Utility Skills received responses from 22 companies which employ 100,000 people, with over 4,000 apprenticeships, and found that half the levy they paid was going back to the Treasury. Could we not be imaginative and start using that levy in different ways? Some businesses are already being imaginative and using the levy to provide courses for their existing staff. At the Youth Unemployment Select Committee today, we heard one of the witnesses say that the apprenticeship scheme was in danger of becoming an adult learning scheme. That is a sad indictment of our high hopes for apprenticeships.
I reflect that a significant number of employers are concerned that young people entering apprenticeships and vocational training programmes do not have a sufficient foundation in practical skills and work readiness to enable them to progress as quickly as they might; often the shortcomings are not academic. Would it not be imaginative to use some of that levy which has to be returned to the Treasury to fund local employment engagement, perhaps with local schools?
If the Minister has time, perhaps she would be kind enough to write to me about regulation. The Bill will transfer powers from the independent regulator, Ofqual, to the less independent, non-government body, the Institute for Apprenticeships and Technical Education. It is responsible for introducing its own T-levels while also regulating the broader qualification market. Is there not a risk of a real conflict of interest? The Bill would allow it to charge fees for the approval and accreditation of new qualifications already regulated by Ofqual. There is no information about how these fees will be regulated. The relationship between Ofqual and the IfATE needs detailing. The current proposals have the potential to cause overlap and confusion.
We have seen how other European countries, notably Germany and Switzerland, have valued the importance of vocational education and, as a result, have done far better than the UK in providing the skills that their economies need. Let this Bill, wisely amended, give every person the opportunity they need, as well as what the country and the economy need, to be successful.
Lord Bichard (CB) [V]
My Lords, I welcome the Bill because it acknowledges the importance of skills and vocational learning to the economy, productivity and, let us not forget, the capacity of people to fulfil their personal potential. I hope it will be a significant step towards reversing the huge decline in adult learning we have experienced in recent years which, as some of us believe, is overdue. But whether it is successful in doing that will depend not on bold ambitions and warm words but on the detailed delivery. In particular, it will depend on some issues which are either not covered at all in the Bill or referred to only in outline. I want to touch on one or two of those today.
The first is advice and guidance. The White Paper for skills and jobs rightly says that we need:
“Clear and outcomes-focused careers information”
and that it is
“fundamental to the success of our reforms.”
The White Paper says:
“We need impartial, lifelong careers advice and guidance available to people when they need it, regardless of age, circumstance, or background.”
I would also say that we need a system in which the Careers and Enterprise Company and the National Careers Service are working more effectively together to create an all-age careers system better able to support learners seeking to navigate what will be a much more complex system following the implementation of this legislation. I would also like to see us providing more face-to-face coaching, not just a better digital information bank. I think that will be especially important as we exit the pandemic. I know that Sir John Holman has been appointed to advise on all of this, but we still await his recommendations, and it is unfortunate that it has not been possible to incorporate them in the Bill. Perhaps the Minister can update us about where these recommendations are, when they will be published and how they will sit alongside the Bill.
The second issue is the lifelong learning entitlement. The Open University has pointed out that this is presented in the Bill as a bolt-on, creating a separate funding system for modular study. A more ambitious reform would have been to create a unified credit-based system for learning that does not distinguish between different modes of study. But leaving that to one side for the moment, Clauses 14 and 15 leave some very important questions unanswered—questions which I have raised before in the House in debates on lifelong learning. For example, will people be able to use their entitlement to study at an equivalent or lower level to their previous studies? The local skills improvement plans might well encourage them to do so. I know that this is subject to consultation, but could we not take action on this earlier? What will the repayment terms be for any loan? Will we continue—perversely, I think—to penalise students who choose to study at a distance? How exactly will the credit transfer arrangements work between providers?
Then there is the cost of study itself, including living costs. This is not addressed in the Bill; it is another matter for consultation, but it is key to the successful implementation of these reforms. The Welsh Government recently introduced reforms to tackle this by extending maintenance support, including means-tested grants, to all students, regardless of the mode of study. Importantly, they also introduced lower tuition fees for part-time study. As a result, they have been rewarded with a huge increase in participation, which is what we all want. Will the Minister tell us whether the Government are thinking along similar lines?
I agree with the principle of having the employer’s voice heard clearly in the skills system and for skills providers to be responsive to, and accountable to, local employers for their provision. Actually, some older Members will remember that this was one of the reasons why we once had a department for education and employment. Some colleges and independent training providers have too often focused on offering courses and programmes which generated much-needed funding but were not necessarily relevant to local employment needs. What I struggle with, though, is why this is being piloted with chambers of commerce and other representative bodies when they are not resourced for the task and sometimes do not have very strong membership bases. We already have skills advisory panels that bring together employers, providers and funding agencies and are supported by learning and enterprise councils, so do we really need to introduce additional complexity? Why not build on the existing skills advisory approach and make a more inclusive way of providing advice on employers’ needs?
Finally, as I suspect others may not raise it, I shall say a word about independent training providers. The Bill rightly focuses on supporting colleges and further education, but independent training providers at their best can be more fleet of foot and more responsive to employer and local skill needs. In my local area here in Gloucestershire, many providers feel that the skills Bill could make their existence more perilous. They recognise the importance of offering high-quality provision and being sustainable businesses, but many feel that they will be disadvantaged by, for example, not being able to bid into the skills accelerated development fund and being seen as second-tier providers for various contracts. During the passage of the Bill, we need to ensure that it is possible for independent training providers to continue to provide their best and to strengthen in the future.
Lord Willetts (Con)
My Lords, I warmly welcome the Bill. I begin by declaring my interests as chancellor of the University of Leicester, a visiting professor at King’s College London and a member of the boards of Thames Holdings Ltd and UKRI.
The principles and objectives of the Bill are very welcome. It is absolutely right to want to do more for further education colleges, to focus on technical and vocational skills, and to try to do more on lifelong learning, but there is a lot to do to flesh out those principles in practical legislation. The Government have several important consultation exercises under way at the moment, which will help them see how they intend to apply those principles. I hope the Minister can assure the House that we will have ample opportunity to review and revise this legislation as it goes through both Houses of Parliament in the light of the outcomes of their consultations.
While I welcome the principles, the really important matter is what they mean in practice. Here, I have to say that I am concerned about a deep confusion—an artificial conflict, perhaps—between “vocational” and “academic”. In her opening speech, the Minister herself referred to parents preferring that their child should have a vocational qualification rather than a degree. I am familiar with the research, published by the Social Market Foundation, on which that statement rests. I find it very hard to make sense of the question that was put to people in that opinion survey. I talk to universities, which tell me that 70% of their students are studying on a course accredited by an employer or an employer organisation; they are doing courses that are a licence to practise. The White Paper rightly refers to the need for nurses and engineers. These courses are also delivered by universities—are they academic or vocational? It is a false distinction, which should not be used to create conflict between higher and further education when both have an important role to play. You can do academic courses in further education colleges and vocational courses in universities. If distinctions are used to create conflict between these two parts of our education system—both very important—the cause that the Minister rightly supports will be put back rather than advancing.
I have met a young man at a workbench making a bit of kit to be launched on to a satellite as part of his doctoral training. It is an old Oxbridge mindset, the belief that universities are for the liberal arts—for gentlemen—while vocational courses are for training colleges, and that if a university dares to provide vocational training it must mean that it is a bad university. That model is one of the reasons we have the skills crisis that we worry about now; it is the wrong mindset for trying to tackle this problem. I very much hope, therefore, that the Minister will be able to assure us that she fully understands that universities—especially some of the less prestigious universities, whose origins are often as colleges of advanced technology and which have not lost sight of their original mission—are one of the instruments that she can use to fulfil her objectives.
This is also very important, and will be tested, in the Minister’s admirable objective of tackling the anomalies of level 4 and 5 funding—a peculiar feature of the system, going back to provisions in the 1992 Act. Augar was right to say in his report that we need a more flexible regime for levels 4 and 5. I pay tribute to the noble Baroness, Lady Wolf, for her campaign on this. We do need a better funding arrangement for levels 4 and 5. At the moment they are niche, essentially nursing diplomas for women and engineering courses for men; I do not say that with any endorsement of the stereotypes but it seems to be the origin of the widely cited figure for earnings for some at levels 4 and 5. We need to make it easier and more flexible, but can the Minister assure the House that funding for levels 4 and 5 should be institution-blind? It should be delivered by FE colleges but could also be delivered by higher education institutions.
The new loan scheme is an exciting initiative. I confess to this House that, looking back on my record in government, one of the things I most regret is the decline in adult learning during my time as Minister. There are many complicated reasons for that. One was that we tried to apply the same funding model to adult learning as to 18 year-olds going to university. For an 18 year-old, taking on a loan when they are at a big fork in the road does not, thank heavens, put them off going to university. For adult learners, however, taking out a loan may be a very different decision and far more worrying. So, one lesson I learned from what we went through was that a single funding model may not work as well for adult learners as for younger people en route to university. I hope the Minister will reflect on that as the Government design this new single scheme.
I wished to comment further on the role of employers and the importance of individuals, but I see that time has passed. I just say to the Minister that while, of course, employers have an important voice, we should not forget the individual learner. He or she may be inspired to shape their life around a course or an occupation, and it might not be for a big industry in the area where they live; it might be in something exciting on the horizon for which there is not currently an employer. I very much hope that, in the course of our debate, the Minister will say that the individual shaping his or her destiny matters as much as the employer and the education institution.
The Lord Bishop of Leeds
My Lords, I strongly endorse the previous speech, particularly as it notes the crazy distinction between vocational and academic study. On these Benches, we welcome the commitment from the Government to the further education and skills sector as set out in the Bill. It is particularly pleasing to see that the Bill builds on the practical reforms outlined in the Skills for Jobs White Paper. In this context, I also strongly commend to the House the Church of England’s new vision for further education report, published at the end of April, which also recognises the key role that FE plays in driving individual, community and societal transformation.
I wish to make three points. First, how might learners be enabled or incentivised to upskill or reskill, particularly those such as the long-term furloughed or people heavily reliant on welfare payments, who have been particularly impacted by the pandemic? The Bill outlines structures and organisations required for delivering training but does not suggest how such people actually get to the training in the first place. Clearly, the welcome commitment to a reintroduction of maintenance grants is a significant part of this, yet the need, already referred to by other speakers, to cover basic living expenses while studying is an immediate and powerful potential barrier to learning. This could be an opportune time to reconsider the 16 hours-a-week work rule for those in receipt of universal credit, with proper safeguards in place to prevent abuse of the system. Great training is pointless if the people who need it are not incentivised to access it.
Secondly, how do the Government plan to ensure that local SME voices are heard and not overpowered by larger employers, which typically find it easier to meet expectations from Government? Over 80% of the UK economy is driven by the service sector, which is dominated by small and medium-sized employers. SMEs play a central role in levelling up, as they are typically more likely to employ those from disadvantaged groups with lower employment chances. This lies behind Wakefield Council’s launch, in March, of its new strategy to become a “Learning City and District”, one of the four pillars of which is to:
“Provide an inclusive jobs market for residents to find and sustain well paid employment, by ensuring access to learning is available for all levels and to all ages with increased participation from hard to reach/disadvantaged communities.”
An employer-centred focus is crucial to the success of the skills reforms. However, equally crucial is the development of longer-term thinking about the future skills needs of society. This means that meeting present perceived needs locally must be balanced by an appreciation of longer-term changes in future skills demand, particularly if we are to join up local and national provision.
Thirdly, colleges play a vital role in providing for students with specific learning difficulties and disabilities. According to the Association of Colleges, such students make up 17% of the overall intake, a figure which rises to 23% of 16 to 18 year-old learners. In 2019-20, local authorities placed over 64,000 students with education, health and care plans in colleges—90% of them in general FE colleges and the rest in specialist institutions. The funding regime does not provide support for students in FE who do not have EHCPs to anything like the degree required, yet the Bill makes no specific reference to such students, although we welcome the promised Green Paper due in the summer. It would be helpful if the Minister could consider how the appropriate degree of priority could be given to this diverse cohort of learners in policy and funding terms, and how that might best be reflected in the Bill, as it passes through the House.
Lord Puttnam (Lab) [V]
My Lords, I congratulate the Government on bringing forward a Bill to address an area which, for more years than I care to remember, has resisted every attempt to implement a coherent long-term employment policy. I am no fan of Dominic Cummings but, during his recent evidence to the Select Committee, he was precisely on the money in pointing out the lamentable record of successive British Governments to learn lessons from countries such as Norway, Finland and New Zealand —the noble Lord, Lord Storey, added Germany and Switzerland—which have successfully created well-thought-through skills and apprenticeship programmes. These policies have allowed many of them to race past us in offering appropriate pathways and opportunities for skilling and reskilling those for whom higher education was either unavailable or simply not all that attractive.
I have never been able to establish whether this is as a result of arrogance or ignorance but, either way, many sectors of our economy have been allowed to atrophy as a result of inattention and neglect. This has not been for lack of announcements, speeches or data; it is more to do with an inexplicable failure to follow through, fund and deliver. This Bill, if enacted with imagination and commitment, could prove a watershed. If the Government are serious about levelling up, they can be credited for at least giving themselves the legislative opportunity to prove it.
The Bill has the potential to become a vehicle for broadening and deepening apprenticeship schemes, for example by taking account of the mobility of freelance employment, but that should be the beginning of its ambition, not the end of it. While I broadly agree with the employer-led concept, a potential Catch-22 situation needs to be considered, whereby established incumbents find themselves favoured over those wishing to take advantage of new business opportunities, most especially in areas with diminishing growth prospects. I am sure the extension of things such as maintenance provision, as a counterbalance to embedded regional inequalities, is something the Minister will want to touch on in her response.
While well-intentioned, I am concerned that this Bill and the White Paper on which it is based are nowhere near imaginative enough in their interpretation of what future employment patterns might look like. Regrettably, when it comes to implementation, we invariably seem to find ourselves working from a 10 year-old playbook. I cannot have been the only person dumbfounded that “creativity”, having featured in the Secretary of State’s introduction, failed to reappear in either the Bill or the Skills for Jobs White Paper that preceded it. When she responds, could the Minister please explain this omission or possibly tell me that I need my glasses tested?
Creativity is an entirely sustainable asset—one the UK has proved to have in abundance. In my judgment, it will prove the great differentiator among ambitious, competitive nations in the digital world. Surely it needs to be incorporated into every aspect of the way that we think about skills and training for the future. For example, far too little thought has been given to how we cultivate greater agility in the workforce by encouraging transferrable skills across sectors. The White Paper described the need to develop
“higher-level technical skills in Science, Technology, Engineering and Maths”.
Of course, STEM and digital skills should be at the forefront of how we plan for the future, but they have to walk hand in hand with creativity if we are serious about developing a truly successful economy.
A good example of this thinking comes from Demis Hassabis, the founder of the AI company DeepMind. He put it this way:
“Some of the most interesting areas of science are in the gaps between … subjects… What I’ve tried to do in building DeepMind is to find ‘glue people’, those who are world class in multiple domains, who possess the creativity to find analogies and points of contact between different subjects. Generally speaking, when that happens, the magic happens.”
The successful growth of companies such as DeepMind should serve as a warning regarding the dangers of a purely employer-led focus, because history suggests that incumbents are a lot less likely to spot where the next big opportunity will come from.
I find it unsurprising to learn that, in 2018, the US National Academies of Sciences, Engineering, and Medicine recommended that education in these subjects should include the humanities, arts, crafts and design. That recommendation has now been rolled out right across North American universities. For example, 100% of undergraduates at MIT, one of the world’s leading technical institutes, study the arts, humanities and social sciences. In fact, those subjects now account for 25% of their overall class time.
Collaboration between a variety of talents and skills has to be the right way, possibly the only way, to ensure the success of a balanced competitive workforce—the kind of workforce that the Bill seeks to create. There will also be an overwhelming need for departmental collaboration. Can the Minister assure the House that the transition of support from the DWP into this new skills framework will be made as uncomplicated as possible? It will need to be if the Government’s levelling-up ambitions are to be fully realised.
Finally, on this vital issue of collaboration, the idea that improved provision for further education can be resourced only at the expense of higher education is to totally misunderstand the challenges of the global economy. Far from being in competition for resources, these two sectors should be encouraged to move in lock-step, as never before. This point was powerfully made by the noble Lord, Lord Willetts, and I completely support what he said. In my view, ensuring a successful partnership between further and higher education represents exactly the type of approach that is needed to make this legislation a success. I do not see this as a political Bill so, given a thoughtful Committee stage and a listening Government, we have the opportunity to send a valuable and uncontentious piece of legislation for ratification in another place.
Lord Shipley (LD) [V]
My Lords, I thank the Minister for her introduction to the Bill which, in many respects, I welcome very strongly. It has a sense of direction; the Government have clearly been listening to the advice of employers and the education sector. I very much look forward to hearing shortly the maiden speech of the noble Baroness, Lady Black of Strome.
I cannot recall a time when there has not been a skills shortage or a skills crisis. This is inevitable because the needs of our economy are constantly changing. However, there is a substantial difference today: the needs of our labour market, post Brexit and post Covid, are changing quickly. As an example, we do not have enough technicians or engineers, and there is a need to develop greater strength in digital skills at all levels. As a further example, the pandemic has resulted in a reduction in the number of apprenticeships available. There are not enough generally, nor at degree level.
The lifelong loan entitlement could be a boost to both individuals and employers, but I hope that, as the noble Lord, Lord Bichard, said, the Government will not try to bolt it on to the current system of funding and will instead make it part of a reformed system of financial support. The Government’s forthcoming consultation should reflect the fact that loans by themselves may not be an attractive proposition to some adults, as indeed the noble Lord, Lord Willetts, pointed out a few minutes ago.
Recent government policy towards the FE sector and part-time higher education has led to both being treated as the poor relation of traditional academic learning. Funding per student has been lower in FE for too long. There has been a very worrying drop in participation rates in part-time higher education in recent years, caused by funding cuts and the HE loans system. It is vital that the silos between higher, further and adult education and apprenticeships are reduced. Further education and higher education should not have to compete against each other for resources. The ambition should be a unified skills system with expansion of the FE sector, apprenticeships and part-time higher education, with parity of esteem between these and traditional full-time, non-vocational academic routes.
I would like to make a point about progression routes. I welcome national skills funding to help adults have free access to level 3 qualifications through some 400 courses, but there is no mention of any qualifications below level 3, yet it is these which promote progression to higher levels. Six million adults were identified in the Augur review as not having qualifications at level 2, yet the total number of adult learners has been falling in recent years. If we want people to reach level 3 and above, more of them need to achieve level 2. I wonder if the Government have a plan.
The Government’s ambition to put employers at the centre of skills development is welcome. But the test of the new approach will come in how effective the forecasting of future requirements is for industries that are in the early stages of development. Long-term investment in the green economy, for example, will require new skills sets at all levels. As the Bill progresses through the House, I hope we can examine whether the Government are putting in place structures that will effectively identify skills needs five years and 10 years ahead and how our education system as a whole should adapt to deliver them.
I spoke earlier of the lifelong loan entitlement, and I understand that a consultation will start this summer, but secondary legislation can be expected only in 2024, with implementation in 2025. Given the impact of the pandemic, what is happening over the next four years to ensure that all those who need to access training can get it, in addition to meeting the needs of employers post Brexit? Does it have to take so long—four years—to effect this change?
The lifelong loan entitlement may be a crucial part of future plans, but a lot more detail is needed on the extent of entitlements, on the funding of modular systems, on repayment terms, on whether modular study will be permitted for all subject areas or just those defined by the Government, on whether students can get the same support for their costs irrespective of their method of study, and on whether existing graduates can use it to retrain.
Finally, I hope that we will take a close look at how local skills improvement plans will work in practice. It will not be the first time that such planning has been localised. That said, I wonder if the Government have a plan for bringing together the information from all the local skills improvement plans to shape national workforce planning? It will be extremely important to do so.
The Deputy Speaker (Baroness Garden of Frognal) (LD)
I welcome the maiden speech of the noble Baroness, Lady Black of Strome.
Baroness Black of Strome (CB) (Maiden Speech)
My Lords, it is a great honour to have been appointed to your Lordships’ House and to speak here today for the first time. I draw the attention of the House to my current employment in higher education. I am sure that most noble Lords will remember only too clearly how they felt in those first few days and how grateful they were for the generosity of spirit shown to them by others. That paying forward of grace is a testament to the strength of community in this House and its all- embracing welcome, and I am both grateful and humbled to be a beneficiary.
There are so many who deserve my unreserved thanks for their kindness, from the justifiably legendary doorkeepers to the police officers and Black Rod, and indeed all staff and departments—including those in digital services, who have been unbelievably patient with the shortcomings of this technological dinosaur. I also wish to extend my thanks to Garter, who was somewhat relieved when I chose the simple “Strome” as my territorial designation, rather than the more complex Gaelic, “Tomnahurich”. I am so very grateful to the noble Baroness, Lady Valentine, and the noble and learned Lord, Lord Judge, for their support and guidance when introducing me to the workings of the House, and to my noble friend and mentor Lord Patel, who has always held my deepest respect and gratitude for the kindness shown to me in the 15 years that we have known each other. I recognise that I still have much to learn from his vast experience in this House, but I hope that I may contribute on matters within my domain, which might include science, justice, education, death and dying, anthropology, child protection and forensic investigation.
Many of our skills are transferred and learned from those closest to us, whether they are family, friends, teachers or mentors, and we cannot predict which will stand us in the best stead. Arguably, my most practical life skill was acquired at the age of 15, when I studied for an O-grade in secretarial studies. It was a class comprised exclusively of girls, who were all taught to touch type. I could never have predicted the benefits that an average of 95 words a minute would bring in the digital world that now dominates our lives.
A second skills set was taught by my father when preparing the rabbits, deer and pigeons that he would bring home for my mother to cook. It led me comfortably to my first job as a teenager, working in a butcher’s shop, and then to honing the dissection skills required by a human anatomist and to the practical skills and strong stomach required by a forensic anthropologist, whether working to identify the deceased in the aftermath of the war crimes in Kosovo or processing the mass fatalities of the Asian tsunami.
A third skills set was developed in the meeting rooms of the Women’s Institute, the Rotary and the Round Table, learning how to convey science to the public in a manner that was concise yet understandable. This served me well in the UK and at the International Criminal Court, where I have given evidence as an expert witness to assist juries in their deliberations.
My current role as Pro-Vice-Chancellor for Engagement at Lancaster University affords me the great pleasure of working closely with our further education colleges, universities and civic partners, to embed the value of education in our local and regional communities. Operating as we do in an area of multiple deprivation, the partners are acutely aware that the lifelong acquisition of skills is critical to the development and future workforce placement of our young people.
I am supportive of this Bill in raising and promoting the quality and place-based relevance of post-16 skills provision, although I inwardly flinch at the partitioning of education into traditional age and sector-based silos. In my experience, education can be an effective route out of poverty, but it requires all parts of the ecosystem to work in progressive collaboration. We sometimes forget that our life habits and ambitions may be hard-wired long before we even enter secondary school, yet the discussions about “workplace” and “skills set” still come towards the end of that educational pipeline. Perhaps that is too late to have any realistic hope of breaking the educational poverty cycle that has become a generational and geographical norm for many.
Perhaps I may share a brief example. The Morecambe Bay Curriculum is a 25-year, educational, place-based community commitment. It is a civic collaboration between local residents, pre-school, every primary and secondary school in the region, Lancaster & Morecambe College, the universities, the local city authority, the NHS, the LEP, the chamber of commerce, businesses, employers and the Eden Project North. Many young people from this region come from homes with no prior experience of formal post-16 education and no experience of regular paid employment that leads to skilled jobs. If we wish to break that cycle, we need to sow the seeds of change much earlier.
Children as young as five will undertake little work experience placements with local businesses, developing a sense of pride in both belonging, and contributing, to their “place” while learning that each aspect of their own educational journey can evolve seamlessly into the next. We aim through that programme to make post-16 education and the concept of a “skilled job” the norm.
The role of early intervention in the success of the uptake of skills-based learning, its translation into the local workforce and then into regional economic growth and regeneration requires sustained commitment from all component parts. It will take the combined will of a joined-up community ecosystem to break the current cycle and educate those young people into skilled jobs.
I would simply request that, as we progress this Bill and focus, as we inevitably will, on a particular sector of our education system, we are mindful of changes that may need to be effected elsewhere if we are to maximise success. We will all benefit from a holistic approach, because strength and success lie with all our educational components working together seamlessly as an ecosystem—not just the colleges in isolation, but in genuine partnership with the schools and the universities.
In conclusion, it is an honour and a privilege to be a Member of this House and to be permitted to participate in its work.
Baroness Coussins (CB)
My Lords, it is a huge pleasure to follow such an outstanding maiden speech by my noble friend Lady Black of Strome. I am sure that all noble Lords will, like me, be in awe of her distinguished career and achievements. As a forensic anthropologist she has pioneered techniques of human identification both in the UK and worldwide which have helped bring people to justice. In the UK, her work on the sexual abuse of children marked a step change in the ability of the criminal justice system to identify paedophilia, and internationally, her work in Kosovo after the atrocities there, in Thailand after the tsunami and in Iraq have brought her work worldwide renown.
Glancing through her illustrious career, I have to say that I was pleased to discover one small thing we had in common: we both took Saturday jobs at the age of 12. I was a humble shelf stacker but, as we have heard, my noble friend had the foresight to get a job in a butcher’s shop, where she clearly learned things that would be useful in her later career in forensic anatomy. I know that my noble friend will bring her insight, knowledge and experience to this House and that we will all benefit from hearing from her. She is most welcome in your Lordships’ House and I congratulate her once more on her excellent maiden speech.
On the Bill, I declare my interests as co-chair of the APPG on Modern Languages and vice-president of the Chartered Institute of Linguists, and I hope that the Government and employers will take advantage of the opportunities this Bill offers to act on what they know about the importance of language skills—namely, that the UK’s deficit in foreign language skills damages the economy and inhibits recruitment and employability across all sectors and at all levels. Languages are not just an academic discipline but a vital technical skill that can boost export growth and social mobility. Foreign language skills are in particularly high demand in finance, IT, transport, fashion and hospitality.
There are marked regional disparities in the UK’s skills base. Regional weaknesses in the take-up of foreign languages correlate with regions of poor productivity and low skill levels. In the north-east in 2016, for example, only 43% of pupils sat a GCSE in a language, compared with 65% in inner London, and this gap has been widening year on year. Employers say that they are unhappy with the foreign language skills of school leavers and graduates in the UK and are increasingly forced to recruit from overseas to meet their needs. If the Government are serious about social mobility and levelling up, a boost to language skills would be a jolly good place to start.
We need the business community to step up and be very clear when it comes to its input in shaping the new local skills improvement plans to insist that language skills are needed and must be included. Research suggests that the UK economy is losing out on well over £50 billion a year in lost contracts because of a lack of language skills in the workforce. Viridian Solar, an SME based in Cambridgeshire that makes solar roofs, told me:
“Foreign language skills are important”
for “global export growth.”
Another Cambridge company, i-Teams, helps the next generation of science-based entrepreneurs develop business skills and has so far helped 90 start-ups. Its founder told me that
“language skills are a key advantage”
and said that innovators
“need to be able to communicate both through language and across cultures. It cannot be assumed that all the people with whom they must work … can speak English.”
And Alchemie, a large company specialising in sustainable technology for dyeing fabrics, has found:
“Language and cultural knowledge is very important to Alchemie in its expansion into China. A basic knowledge of Chinese for business purposes would be really useful for staff members. Further training or coaching in that is really important.”
New research released only last month by Aston Business School confirmed that language skills are a key driver for SME export success, revealing that firms making use of language capabilities are 30% more successful in exporting than those that do not. Export sales, growth and profits are all significantly increased by hiring people with language skills and cultural intelligence, language training for existing staff and investing in professional translation services.
Employers’ organisations and sector groups are also on board. The CBI’s chief UK policy director has said that better foreign language skills are
“critical to increasing the UK’s global competitiveness and to ensuring young people have the high level of cultural awareness that supports a successful career.”
The tourism sector trade association UKinbound asked its members what barriers they faced when recruiting a British national and 60% responded
“insufficient skills for the role”,
including foreign language skills. Some 23% of respondents to a British Chambers of Commerce survey said that German and Mandarin will be important to their business in the next five years, and 20% said French and Spanish. The BCC says the extent of our languages deficit is sobering, with the biggest language barriers in the fastest-growing markets. It wants to see commercial export skills at the heart of business education in both further and higher education, with fully integrated foreign language skills as part of that, as well as in schools and workplace training.
Finally, the Bill refers to FE colleges, but local skills improvement plans should also seek to build links with university-based training opportunities, and university language centres rather than modern language faculties are the best place to make connections with community colleges. So will the Minister ensure that no regional language skills gaps remain as a result of the new improvement plans and say what, if any, oversight or indeed override the DfE will have to correct any such gaps? Are the Government prepared to provide leadership and encouragement to local business communities to follow through on all the surveys, research and sector examples I have quoted today, perhaps by using the power the Bill will give the Government to issue guidance to support the development of the plans in order to ensure a place for language skills? Will the Minister also spell out how the DfE will be working with BEIS on this, given that department’s international remit and extensive networks, and experience of language skills? I very much look forward to her reply to this and my other questions.
Lord Johnson of Marylebone (Con)
My Lords, I too congratulate the noble Baroness, Lady Black of Strome, on her extraordinarily fine maiden speech. I am looking forward to learning a lot from her in a lot of different areas.
I too welcome this Bill. It is an important bit of legislation, possibly the most important for the levelling-up agenda in this Parliament. I have a few reservations and would appreciate reassurance on a couple of points from the Minister. I declare my interest as a visiting professor at King’s College London, a senior fellow at Harvard Kennedy School and chair of two private education companies Tes, and Access Creative College, a provider of further education training for the creative industries.
There is a huge amount to welcome in this Bill, but for me there are two features in particular: the lifelong loan allowance, which is being put on a statutory footing; and the introduction of modular funding, which a long-overdue reform that will bring valuable flexibility into our student funding system. However, I have some concern that the Treasury may water down the rocket fuel of the promised skills revolution. A number of noble Lords have already hinted at where this might arise. One of my concerns is around the rigidity of the current system that prevents people from studying at an equivalent or lower level than an award that they already have, as the noble Lord, Lord Puttnam, said in his excellent speech. To my mind, that makes a nonsense of the lifelong loan entitlement. I appreciate that the Government are consulting on it. I hope that the results of that consultation come out the right way, because if we stick to it, it will prevent people from reskilling effectively.
My other area of concern is around what I see as the Treasury’s persistently flawed conception of how to measure value for money in post-16 education. The idea that you can measure the worth of a course by the proportion of the student loan that ends up being repaid is far too reductive. If we stick with it, it will stop us from properly funding what are socially useful and valuable but lower-earning professions and paths in life. We already see hints that this is the prevailing view and that it will continue to be the prevailing view in the list of some 400 qualifications that are eligible for funding in the lifetime skills guarantee. That list of 400 qualifications is still too restrictive. As far as I can see, it does not include any creative arts courses, for example.
My concern, as this Bill makes its way through this place and the other place, is that when the section lands on the new student finance system, the Treasury uses this legislation’s fine print to further defund those areas of provision that have lower rates of repayment associated with them, through a mix of potential policy tools, including student number controls by subject, higher minimum entry requirements by subject and a variety of others, most notably the potential for much lower fee levels for those courses.
Those are all big risks as this Bill makes its way through this place. I would appreciate any reassurance that the Minister can give on that front. I am particularly concerned about what it would do for the provision of creative education courses. It is highly likely that, if we go down that path and defund courses on that basis, it will starve the supply of talent into some of our most promising industries as an economy—performing arts, creative design, creative computing, music technology, music performance and so on. That would be a sad outcome for us as a society and it would also be an economic nonsense. These were industries that were growing at five times the rate of GDP before the crisis, and we should not do them the disservice of starving them of talent as we come out of it.
My sense is that if the Treasury wants to save money, and I understand that it wants to invest money in other areas or education systems to support catch-up elsewhere, which is entirely understandable, I recommend that it looks at lowering the repayment threshold on the student loan as a far more sensible source of much larger sums of money. The Higher Education Policy Institute, for example, has calculated that lowering the repayment threshold to just below £20,000 from the current level of £27,295 would save £3.8 billion and reduce the proportion of the student loan that is not repaid to one-third, from current levels of over one-half. That seems a very sensible and more fruitful area of reform for the Treasury to look at.
Time is running out, but I welcome this Bill. It is a really important Bill. I congratulate the Minister and the Secretary of State for bringing it to Parliament. I will certainly be supporting it. However, it is clearly something of a down payment on a much bigger set of changes that, ultimately, we will need if we are going to have a joined-up system of post-16 education and skills. We have a rather bewildering array of regulatory and funding bodies out there in the landscape: the OfS, the Education and Skills Funding Agency, the Institute for Apprenticeships and Technical Education, and so on. The time is surely coming, now that through this Bill we are introducing much more flexible systems of funding, for us to move to a joined-up system of regulation and funding for all post-16 education.
Baroness Stowell of Beeston (Non-Afl)
My Lords, like other noble Lords, I welcome this Bill and endorse the Government’s decision to give technical education the profile and priority that it deserves.
Unlike other noble Lords contributing to today’s debate, this is not an area on which I am a policy expert, but I hope to make a relevant contribution as someone who chose a technical education at the local FE college after leaving school at 16, and who, armed with that technical training, professional pride in my skills and an aptitude and enthusiasm to keep learning on the job as I progressed in my career, became Leader of your Lordships’ House. I have had the great privilege of working for and alongside, and of being supported by, some brilliant people with high academic credentials, and together we have been an effective team. I endorse the plea of the noble Lord, Lord Willetts, not to create new divisions or false distinctions between people who are talented and gifted. I feel I must put on record that I love highly educated people. I am not looking to do anybody down here, least of all the noble Lord, Lord Willetts.
However, one of my concerns about the consequences of successive Governments prioritising university and getting a degree as pretty much the only route to an increasingly narrow definition of success is the lack of diversity in leadership roles across politics, Whitehall, the public sector more broadly, business and the media. In other words, we have the rather conflicted situation now where those in positions of real power or influence, regardless of where they may have started in life, have all followed the same university path and therefore tend to define success in their own image. Therefore, while I welcome this Bill and applaud all that the Government are doing in this area to promote skills and further education colleges, those of us who make decisions which affect everyone else still have work to do in how we think about technical education or those who do not go to university.
As we consider this legislation and look beyond it, I will highlight three big traps that we must avoid falling into. The first is seeing technical education as a consolation prize for those who, in the minds of graduates, do not have the potential to be like them. Some people learn to know; some of us learn to do. Some of us learn best by observing and absorbing rather than by studying theories. Non-graduates are often more strategic in their thinking because they rely on what they can see to understand and identify the problem that needs fixing for things to work better. Therefore, it is important that we recognise the value from this difference to achieving our collective goals if we are to see results which benefit all of us.
The second trap we need to avoid is assuming that anyone who follows a technical route is not ambitious, or to dismiss as unimportant what some people might see as modest ambition because it does not involve holding power over other people’s lives. We are all different. What is important in my mind is encouraging pride and professionalism in doing a job well, whatever it is, and showing respect for that when we see it.
The final trap is assuming that people who follow a technical route, or indeed anyone who does not have a degree, cannot become senior leaders in business, politics, the public sector or anywhere else. We have to get out of this mindset that somehow leadership is all about knowledge—it is not. It is about being able to understand and see the bigger picture and to communicate in bold strokes. That does not come from having a degree; it comes from experience, and a desire to engage and understand the world through the eyes of people who see it differently from us.
As one of your colleagues who is technically trained, who started out with modest ambitions and who has grown in confidence and ability as I have gone from job to job, I offer that perspective, with all due respect to those who have followed a different path and those who will be charged with implementing the results of this legislation. In addition to what the legislation seeks to achieve in improving technical education, I hope that through our scrutiny and debates we as parliamentarians change our perception of the potential of those for whom not going to university is the best route to their own definition of success, and that we aim to achieve much greater diversity in positions of power.
Lord Blunkett (Lab)
My Lords, I congratulate the noble Baroness, Lady Black. In this House, we always enthusiastically congratulate those who have made their maiden speech. On this occasion I thought hers was absolutely excellent, and I would like her to develop the origins of why she and I are technical dinosaurs—because I am, and she declared her objection to technology as well.
I strongly welcome the Bill, and the fact that the Secretary of State and the Parliamentary Under-Secretary have joined us. I welcome it because it shows a genuine commitment to further education, adult learning and the development of the technical education and learning process for the future. I fear, however, in the very short time I have, that I am going to have to concentrate on the things that worry me, rather than the things I am enthusiastic about such as the lifelong guarantee, the commitment to professional development in further education and private providers.
The reason I am concerned is that the opening speech by the Minister highlighted divisions. She was clearly following the script, if I might put it that way, because she is not like that at all. The divisions that grew up five years ago on the back of the referendum are almost embedded in our politics. The divide described this afternoon between town and city does not really exist. The divide between further and higher education does not really exist. The divide between the academic and technical does not really exist. I am very self-assured, as you all know, so there are rarely times in my life when I hear a speech and think I could not do better than that. This afternoon, however, the speech by the noble Lord, Lord Willetts, was much better than the one I am making. It made many of the points I would have wished to have made.
Let me very quickly touch on my journey, as the noble Baroness, Lady Stowell, touched on hers. I got my qualifications at evening class and day release and eventually, after six years, went to university. I did a vocational qualification on day release, and my A-levels in the evening. I saw no difference between those; I saw no reason why we should divide them. I see no reason why we should not be in favour of T-levels but strongly in favour of retaining BTEC national diplomas, which got my eldest son to Liverpool University and later to a master’s degree.
I see no reason why we should not learn from our own history. In metallurgy in Sheffield, it was the factory worker and the researcher who put their heads together. Now we have advanced apprenticeships with the Advanced Manufacturing Research Centre at Sheffield University; I should have declared my interest in it. We have the commitment of Sheffield Hallam University with the Sheffield College and other colleges in South Yorkshire, and Huddersfield University with Barnsley college of technology—where I once taught in further education, and where many people, like my elder sons, got their education through FE. There is no divide: it is an artificial concept which I think is extremely dangerous. Please do not let us go down that route.
T-levels are one thing, and organising for people will not go down one route for life is another. This is why the appeal by the noble Lord, Lord Puttnam, in relation to what is happening with artificial intelligence and robotics is so important. These are not qualifications for life any more. There are no jobs for life. We need to return to learn on a continuing basis. I tried to instil this in the learning-age policy paper over 20 years ago when I was Secretary of State, when we set up learning and skills councils at local level that were designed to engage employers, colleges and individuals. Unfortunately, my own Government then centralised that and eventually killed it off. We have been around this road before. Some areas have very strong chambers and employer engagement. Some lack the capacity to do it. That is why what the noble Baroness, Lady Wilcox, said at the beginning of this debate is so important—that we draw people together to be able to do the job well.
In the meantime, do not defund courses that are valuable to learners, do not claw back money from further education as is happening at the moment, and do not defund or claw back money from residential colleges such as Northern College in South Yorkshire. Instead, let us join together—because we can on the Bill—to make this a really exemplary piece of legislation. Let us go forward in unity to offer people the education that they need at the time that they need it, and do so on the basis that they will progress through life in very different ways from where they started.
Lord Addington (LD)
My Lords, this is one of those debate where I feel a degree of sympathy for the Minister, not only because she was nice about me when she started speaking, but because she may acquire a sore neck from having to turn around to answer people on her own Back Benches.
The noble Lord, Lord Willetts—he has clearly had enough now and is running away; I could not resist that, sorry—set a very high bar for us. He also made many of the points that I would have started with before my main point here, which is about special educational needs. The primary one is that we are going through part of a continuum, and that we are putting in place artificial barriers for further and higher education. That does not really work. Secondary school education cannot be seen as removed from this as well; it is part of a continuum. Where people start and how they go through is affected. The original block of their educational experience is going to affect the way they come through this. As my noble friend Lord Storey started by saying, if they do not get better career guidance, they will carry on with the same types of intervention, powers, hierarchies and activities they have always had, because that is the way you do it—that is the way you carry on. No doubt that is an important factor.
If we are to build up T-levels at levels 3, 4 and 5, replacing the status this sort of thing had a few years ago—or a few decades ago; I forget how old I am getting—we have to make sure that parents know they are career choices that will get people employed and make them a valid and interesting career, and we have to guide them through it. That will require real investment in those giving that advice. They have to be in the secondary schools, or in the initial phase that connection has to be made. It does not matter what is being given; if something becomes a secondary option, it is downplayed —end of.
To declare my interests, I am chairman of the company Microlink, which deals with assistive technology. I am president of the British Dyslexia Association. I am dyslexic and a user of assistive technology. I have not misspelled a word in years, but I have occasionally put the wrong one into many a message via voice technology and then not checking it. Many here will have suffered hearing that, I am afraid.
If we are to get the best out of all our students, we have to start dealing more coherently with special educational needs. At the moment we have a savage fight to get identification. Quite a while back, councils stopped putting £100 million a year into contesting people who wanted to get education, health and care plans. They lost 85% to 90% of those cases. We have a ridiculous system where the graduated approach we are supposed to be bringing in with the plans is not working. People are not getting identified because of the system.
What the Bill can do for the majority of those with special educational needs is make sure that those with moderate needs or those who are not identified are being picked up and offered the support that is easily available to them. Everybody’s phone, effectively, does voice recognition, so why do we not use voice recognition as a perfectly valid way of getting through an English test for those with dyslexia, dyspraxia or one of the other conditions? It is established in our lives. But no: someone who cannot do this has to take a spelling test.
I refer back to the hours I have inflicted on this House on the English test for apprenticeships. If you want to read all of it, then masochism is probably a part of your life, but this is something we should be adapting. There is a clause in the Bill on teacher training; we need to ensure that teachers can spot these conditions. Dyslexia is only one of the ones available: ADHD, dyspraxia, higher-functioning autism—they are all there, and that is just neurodiversity. How are we going to spot these conditions for people where it is not an absolute and who do not have the tiger parent to get it identified? Are we going to make sure that we can do this to get these people through the system?
We have a model to support this for level 4 and 5 qualifications requiring independent skill. It is called the disabled students’ allowance, and it has all the institutions that go with higher education, such as information capture—the sort of stuff we are doing now, which is being recorded by people using this for Hansard—which is now a given in higher education. Most of the colleges that run higher education courses will run through levels 4 and 5. Can we make sure they are all integrated—it is not that big an ask—so that somebody who cannot take notes from a lecture given as part of a course is presented with the information they need to study? If it is in an electronic format, they can get it into a verbal format. Voice to text and text to voice are very old hat now: how many people read books in the form of audiobooks?
We are not asking for the world here. These sorts of changes help, and they also help those who do not have these problems or are not on these spectrums. Can we make sure that this is integrated into our approach? If it is not, we will make life needlessly difficult. Please let us not get sucked into the idea that only higher needs need to be paid attention to, because that is a small group. It is those who are just failing and continue to fail that we should be giving some thought to.
Lord Patel (CB) [V]
My Lords, it is a pleasure to follow the noble Lord, Lord Addington. It is an enormous pleasure to add my congratulations to my friend, the noble Baroness, Lady Black of Strome, on her brilliant maiden speech. She is undoubtedly a world leader in forensic science and its use in the criminal justice system, and in forensic anthropology. I have known her for many years. “Tenacious” and “determined” are words I associate with her. She tried to recruit me once to help raise funds for a new mortuary in her department. I declined, so she set up a competition between 10 crime writers: the first one to raise £1 million from their readers would have the mortuary named after her or him. She raised over £2 million. Her newly unveiled portrait in the Scottish National Portrait Gallery in Edinburgh will, I wager, become the most talked about portrait among viewers for three reasons: its size—it is big—it’s title, “Unknown Man”, and the various images within it. I have little doubt that the noble Baroness will make a huge contribution to the House, and I wish her well.
I declare my interests as Professor Emeritus at the University of Dundee and as a former Chancellor there. I support the principle of the Bill and congratulate the Government on bringing the legislation. I am also pleased that the noble Baroness, Lady Berridge, is taking the Bill through your Lordships’ House. I say this because I witnessed her passion for and commitment to improving the lives of disadvantaged young people through creating opportunities for education and skills training when she was a member of the House of Lords Select Committee on Social Mobility.
My comments mainly relate to the need for education in STEM subjects. The Bill sets out government plans to produce a skills revolution and to introduce flexible loans, and a promise to strengthen jobs. The intention is to drive up opportunities, reduce ethnic disparities and narrow pay gaps, all of which is welcome.
Simply offering more further education and training courses alone will not deliver on the levelling-up agenda. Young people need clear advice and guidance on how to access courses, what it will cost them and what is on offer. They will need to be able to see at first hand what kind of jobs are available. Key to all this is the need for high-quality careers advice for young people and adults—an area where the Bill has very little to say, despite the acknowledgement in the Skills for Jobs White Paper that careers provision is an important element of the overall education system.
EngineeringUK, together with seven other STEM and careers organisations, highlights this in its recent report, Securing the Future: STEM Careers Provision in Schools and Colleges in England. It finds that schools and colleges struggle to deliver STEM careers provision to many of their young people. Time and funding are cited as key barriers by careers leaders surveyed for the report, with 70% saying that staff time was an issue and 46% saying lack of funding was a barrier.
The report also finds that the digital divide that has affected young people’s learning throughout the United Kingdom since the start of the pandemic has also affected STEM careers activities in schools and colleges. The report found that 68% of schools with above average free school meals eligibility said that a lack of access to technology and the internet was a barrier, compared with 36% of schools with below average FSM. I hope that my noble friend Lady Lane-Fox might say more regarding the digital divide following her committee’s fantastic report on the subject.
Going back to a lack of careers advice, will the Government commit to publishing a fully funded careers strategy alongside the Bill to help unlock the skills reforms in the Bill and build on the Skills for Jobs White Paper? It sets out the Government’s blueprint for reshaping the technical skills system to better support the needs of the local labour market and the wider economy, with local skills improvement plans being the key component. Clause 1 encapsulates the Government’s plans to deliver on the above. With a fast-evolving labour market, effective local skills planning is important to identify specific skill needs across the country, including demand for skill needs in the engineering sector, the wider STEM-based industry and the economy.
Real-time labour market data is important for ensuring policy reforms to education and skills and emerging sector needs. I would welcome more clarity about how the local skills improvement plans proposed in the Bill will feed into national workforce planning, as has already been mentioned. How will DfE and BEIS work together to ensure a strategic approach to addressing the skills gap? How will information within local skills improvement plans help shape and inform national industrial policy and workforce planning? How will the Government use the reforms in the Bill to identify and respond to low-density regional skills needs important to the overall strategic direction of the UK, such as specialised engineering skills?
I realise that the Minister may not be able to answer all my questions today; she may agree to write. I look forward to the Committee stage of the Bill.
Lord Taylor of Holbeach (Con)
My Lords, I had a good education; what I have made of it is perhaps a different matter. Sixty years ago, I was taking my A-levels and S-levels. At 17, I left school and went to work. I have said that I have no regrets about that, but I would not recommend it.
It is perhaps relevant to agree with the delightful maiden speech by the noble Baroness, Lady Black of Strome, regarding the great advantage my wife had—along with my noble friend Lady Stowell—in getting secretarial skills. How I miss the ability to take shorthand and to type. How I miss the digital tools that many noble Lords feel embarrassed by not having to hand and that the current generation has. But it will please the noble Baroness, Lady Coussins, that I did go and work in Holland and learn Dutch.
I am a fan of this Bill. I am grateful to my noble friend the Minister for introducing it and for us to be able to talk about it. It obviously derives from the Skills for Jobs White Paper, and we all know that there is—and I am not given to hyperbole—a real crisis in skills in this country. It is having an effect on productivity in our industries and service industries, and at every level.
In my view, localism is the key, and the Bill draws on that. We know that resources for further and technical education vary enormously at local level. I believe that the employer-led LSIPs are an important factor in addressing this problem, and I disagree with the noble Baroness, Lady Wilcox of Newport—I am sorry to see that she is leaving the Chamber at this moment, as I disagree with her. I believe that employers will guarantee that the resources, the buildings and the trainers and teachers are in the right place. This whole strategy will have a huge benefit from employer participation in deliberating on the employment of assets.
Perhaps I can deal with practical aspects of the Bill; I will concentrate on my own experience as an employer. It will not surprise noble Lords—knowing that I am a horticulturalist and a farmer in intensive horticultural production—to learn that many people working in that industry, in both the field and the packhouse, are seasonal workers. The whole business of Brexit has revealed the flaw in this strategy and the need for a skills base in horticulture and intensive agriculture. We need skills training and skilled workers, and we need automation in the field and the packhouse because we can no longer rely on this skilled workforce. Who speaks for these people? Who speaks for seasonal workers in getting skills? That is why this Bill is important in giving employers the opportunity to make sure that they have these opportunities.
I also have another interest in that I am the group leader on the visitor economy section for the Midlands Engine APPG. This is another area in which seasonal work is very much the rule. Take the seaside strip of Lincolnshire—Skegness, Mablethorpe, Cleethorpes and that area—where as many as 40% of people are, in some way or another, employed in the seasonal economy based on recreation and leisure. There is no harm in that—there is nothing wrong in it—but we ought to realise that they too need opportunities to train and to find alternative out-of-season employment, which might well be to their advantage. Who speaks for them? I like to think that at least I do so, here today.
If we are to build back better, we need bricklayers, plumbers and engineers—all the practical people whose absence from our daily lives has only to be witnessed by anybody trying to get any construction work done in their home or factory. The need for training in these basic skills, which have largely been forgotten, is essential.
Baroness Morris of Yardley (Lab)
My Lords, I first join others in congratulating the noble Baroness, Lady Black, on her maiden speech. Not only was it an excellent speech but she gave us a glimpse of her background, which is so fascinating that, had I been in charge, I could have let her go on for ages and listened to more of it. I know it will be a very good background for the contributions she will make to our debates in future, and I wish her well.
I also join others in generally welcoming this Bill. A lot of people have said that we have not done enough about skills before; that is why we welcome the Bill. We need to be really careful about this. We have tried to do a lot about skills, but we have never got it right—there is a big difference. Over the last 30 years, 70 pieces of legislation or government interventions have tried to make our skills provision and training better than they are. Anyone here who was a Minister would possibly say, as I do when I look back on my time in office, that they are not satisfied with what was able to be done on the skills agenda. Doing something for the first time is good but it is different from trying to get it right this time. That is how I will approach my contributions to this issue as we go through.
Two things have been done wrong in the past, and they were referred to by my noble friend Lord Puttnam. One is a lack of persistence: Governments have started along this track, then dropped it. Secondly, it has never been a priority for money; they have given some money but never enough, and lessons can be learned there as well.
I want to say briefly—this has been touched on by my noble friend Lord Puttnam and the noble Lord, Lord Johnson—that the division between creative and technical is a false one. If ever in our history there was a time when we could separate creative subjects and the humanities from technical subjects and the sciences, it is not now. We need to drop that language and those thoughts, because success will lie with the people who can bring those things together. That goes to the argument about the lifelong loan entitlement, which I broadly welcome. I have two questions on that. The first is that I am not sure for which subjects the grant will be available. I hope it will not exclude creative subjects, because that would not be good for the agenda before us.
I welcome modular learning with some caution: it is not as easy to organise or do as linear learning. Something we have done wrong in the past with vocational studies is to make it modular but not give students and learners the opportunity to link one module with the other. The joins are where it goes wrong, so my advice to the Minister is: watch the joins and mind the gap. We have to make sure that people can move from one module to the other.
I want to spend my time on the local skills improvement plans, which I gather are going to be called LSIPs, so that is how I will refer to them. The Government have said that employers and businesses are at the centre of the creation of local skills improvement plans. I cannot disagree with that; I cannot say that they should not be at the centre or not be listened to. They are important, but I am worried about how much emphasis the Government are placing upon the leadership of employers and businesses at the centre, at the heart, or in the driving seat of these LSIPs, depending on which words you choose to use. Although they are important to this plan, so are others.
Learners are at the centre of what we want to do, as are providers and our locality and its needs. The local economy in that area is also at the centre, and whoever can guess what the skills of the future will be also needs to be at the centre of these LSIPs. It is a more complicated Bill than just being about putting employers and businesses in the driving seat. At the moment, I am not sure that the Bill really recognises that complexity or gives some indication of which route the Government will wish to take. That is what the Committee and Report stages will be about. I hope that we will have the opportunity to flesh it out then.
We are asking employers to become partners in the education process, and that is a big ask; it is not their core job. It is not what they worry about in the middle of the night or get up in the morning thinking about. We are asking them to become educationalists while they have other worries, especially now; they have other things to prioritise. I am not sure what happens and what powers the Government will have when it goes wrong: when the businesses do not lead us in the right direction or take a back rather than a front seat.
The challenge here is to get the partnership right between the providers and employers. I worry that the Bill is written almost as a customer/provider relationship. There is an invitation to employers to lead the show and a legal obligation on the providers to provide the learning courses. The Government will be taking a power to sack colleges or hit them over the head if they do not deliver on the local plans. It is not imaginative or creative, or the sound basis for a meaningful partnership, so I want to look at that as we go through the Bill.
I know that having too many people in the driving seat can lead us nowhere; I understand that, and that leadership is important. But we want partnership with a purpose in which everyone has a role and a responsibility, and everybody needs to be held accountable in that. How we write that into the detail of the Bill will be vital in making sure that the wish across this House for the Bill to be a success comes to fruition.
Baroness Janke (LD) [V]
I too offer my congratulations to the noble Baroness, Lady Black, on her impressive and extremely entertaining maiden speech. I am sure that we are all looking forward to her contributions to our work.
Like other noble Lords, I welcome many of the proposals in the Bill, particularly to make it easier for adults and young people to study more flexibly, allowing them to space out their studies, transfer credits between institutions and take up more part-time study. As the noble Baroness, Lady Morris, has just said, the principle of colleges and employers working together underpins much of the Bill. It rests, too, on the leadership of employers. My experience leads me to agree very much with the issues she identified. Yet it is important that this is a co-operative and fully accountable partnership. Will the Bill create a duty on schools and universities to collaborate with colleges and employers in the development of skills plans, so that the training on offer meets the needs of local areas and of the national economic strategy?
As a former council leader, I have seen that the actual experience can be very patchy: stronger in some areas than others. In sectors where there are many SMEs the employers’ input can be limited, for a variety of reasons. As the noble Lord, Lord Blunkett, said, sometimes employers are not well represented by particular employer organisations which vary in strength in different areas. There needs to be better accountability and understanding of the difficulties involved. The present system gives no incentive for proper co-ordination. Instead, it focuses on delivery of qualifications rather than on the long-term strategic priorities.
I would welcome a better understanding from the Minister as to how she sees this working. As the noble Baroness, Lady Morris, also said, I am sure that we will want to explore this area during the passage of the Bill. I also emphasise that local authorities should be key players in any future collaboration. Many people face great difficulties in accessing education, whether part-time or full-time. They may be care leavers or have special educational needs, as my noble friend Lord Addington mentioned, or not in education or training. They may be long-term unemployed people. They face difficult barriers and would need access to a whole range of local services to help them to be ready for work or training.
Local authorities are of course essential in providing these sorts of services. They link with adult education provision and other support, such as mental health, housing, debt management, support for parents and childcare. Their involvement will be essential to prevent those most in need of support and training being left behind. As a former adult learning tutor, I know that the role of local authorities in adult and community provision has been a bedrock, providing many adults with opportunities to train and upskill. For many adult learners, adult education is the first step that they take. It gives them confidence and so often inspires people to take up further learning opportunities. The current budget has been halved; I very much support the LGA proposal to reinstate this budget as a fundamental building block in the provisions of the Bill.
It is also important that financial support is considered essential if poorer students are not to be penalised. Flexible and part-time learning is essential for potential learners. My own experience is that, although I went into higher education when I left school, I subsequently took a degree with the Open University. I experienced for myself the great difficulties that one has in trying to keep up the commitment to learning while either bringing up a family or working and needing to prioritise earning a living. These can really undermine the motivation of people who are trying and gain qualifications or skills or, indeed, add a new dimension to their lives through study. I underline here the need to revisit the benefits system so that those acquiring new skills will have their needs fully taken into account and not be excluded from benefits.
I also emphasise the importance of longer-term strategic goals. Anyone involved in education over the last 20 years has experienced constantly shifting grounds in how the system operates, in its objectives, and in the local and national priorities. We need to recognise some long-term objectives and ensure that our training and education objectives and skills acquisition link fully to the economic strategy and its requirements. In recent years, many of us have found the unhelpful element of competition in post-16 provision counterproductive, with an overemphasis on delivering qualifications rather than focusing on strategic and local long to medium-term priorities.
So I hope the Bill will ensure that the providers of post-16 education and training are aligned and not preoccupied with short-term expediency and quick fixes that do not really take us further forward. We certainly welcome the Government’s interest and ambitions for skills and lifelong learning, in particular the strong collaboration of cross-providers. The new lifelong learning entitlement is a huge step forward, but there must be access to all, and we must address the skills shortfall of so many citizens if we are to face the challenges of the future. We support much of the content of this Bill and look forward to taking forward these issues through its passage.
Baroness Penn (Con)
My Lords, it may be worth noting that the Back-Bench advisory limit of six minutes per speaker will allow us to finish at around 8 pm this evening.
The Deputy Speaker (Lord Faulkner of Worcester) (Lab)
The noble Baroness, Lady Lane-Fox of Soho, is appearing remotely. We can see her but we cannot hear her.
The Deputy Speaker (Lord Faulkner of Worcester) (Lab)
We will go to the noble Baroness, Lady Morgan of Cotes.
Baroness Morgan of Cotes (Con) [V]
My Lords, I am very sorry that we have not been able to hear the chair of the Covid-19 Committee, the noble Baroness, Lady Lane-Fox. I hope we will be able to hear her contribution at some point during this debate.
I draw the House’s attention to my role as a director of the Careers & Enterprise Company. I am also delighted to be one of the FE ambassadors that my noble friend the Minister mentioned earlier on. I congratulate the noble Baroness, Lady Black, on her excellent maiden speech. I am entirely in agreement with her that one of the most useful skills I have ever been taught is to touch-type.
I welcome the Bill, as other noble Lords have done, and also the White Paper on which it was based. It has confirmed and elevated the importance of further education, and it is a clear commitment not only to boost skills but to strengthen our economy and increase individual productivity. In the time available I will focus on the involvement of employers in skills needs and, if there is time, say a little bit about the lifelong learning entitlement.
The involvement of employers in identifying skills needs, which is in Chapter 1 of the Bill, I entirely support—and there is wide support for this, as we have heard—the aim for there to be a more strategic relationship between employers and further education and training providers. However, I have spoken to Loughborough College locally, which is already working with more than 700 employers—and I am sure that many other colleges would say the same. So there is a feeling that perhaps what is being asked is not always new but is being pulled together in one place for the first time.
Other noble Lords have mentioned the local skills improvement plans, which will obviously be very important. But, as my noble friend the Minister said, they are really only being piloted in certain areas now. I hope that I can prevail on her, and through her to the Secretary of State and to the skills Minister, that in the course of rolling out the local skills improvement partnerships, we should not undo what is already there.
As the noble Lord, Lord Patel, said, careers education is of critical importance. It gives a strong underpinning to the Bill; although it is not mentioned in the Bill, it was mentioned in the White Paper, where there was a commitment to careers hubs. Careers hubs have improved careers provision by 92% in the two years since they were started. They are a central plank of the White Paper, they are set up and delivered through the Careers & Enterprise Company and they are designed to bring together employers, schools, colleges, apprenticeship and training providers and others aligned to national skills and local jobs. They have already established themselves as anchor institutions in local areas, not just as careers programmes in schools and colleges but also as the link with the local economic strategy, because they are tailored to be responsive to local economic need.
I hope that Ministers are aware that careers hubs offer the Bill three things. The first is that they are the key route for local businesses of all sizes into schools and colleges. I know from my time both as a local Member of Parliament and as Education Secretary that that is often the missing link. Schools and colleges want to work with local employers and businesses but are unsure how to make those connections. I entirely take the points made by the noble Baroness, Lady Morris of Yardley, that those who run businesses are not educationalists—but many of them obviously have a great interest in working with young people and learners locally. But again, bridging that gap into schools and colleges is often tricky, and that is where the careers hubs come into force.
The second way in which careers hubs can underpin the Bill is by renewing the emphasis on vocational and technical learning and building the right level of skills into our economy—hubs can be an enabler for these reforms—and the third way is by helping the Government’s levelling-up agenda. So I am pleased to see that employers and providers are being directed to work with the Careers & Enterprise Company’s network and careers hubs when establishing local skills improvement plans. Can the Minister say in her remarks at the end how the Government intend to keep careers hubs at the forefront of their thinking as they develop trail-blazing local strategic improvement plans and roll them out across the country?
I turn briefly to the Bill’s definition of “employer representative bodies”. It would be helpful now—or certainly in Committee—for Ministers to explain who they think the employer representative bodies are. This ties in with the future role of the LEPs and what their responsibilities will be. Clause 2 of the Bill talks about an employer representative body as being
“reasonably representative of the employers operating within the specified area”.
“Reasonably representative” is very broad, and I wonder who will decide how the members of an employer representative body are indeed reasonably representative.
I also draw attention, as others have done, to the local need point. Of course, exactly as my noble friend the Minister said in her opening remarks, we want people to stay in their local areas, to have jobs and to improve their prospects locally. There is also a need to identify future jobs—particularly in relation to future technologies, for example, or industries such as the growing industry around green jobs—and emerging skills needs and to see those on a national level too. Again, I hope that the Minister will be able to clarify how the local skills improvement plans feed into a national overall skills strategy and how that is then communicated back to the colleges and providers.
Briefly, on lifelong learning entitlement, as others have said, it seems somewhat confusing. We recognise that many people will have several careers now. The Bill is trying to address the long-held policy ambition of helping people to reskill throughout their working lives. A big argument advanced by the Association of Colleges is that level 3 should also be eligible for the lifelong loan entitlement. So can my noble friend say what the process will be for determining which courses will be eligible for the lifelong loan entitlement?
We welcome this Bill across the House, I am sure, and I hope that we will be able to enhance it as it goes through future stages.
The Deputy Speaker (Lord Faulkner of Worcester) (Lab)
I hope that I can call the noble Baroness, Lady Lane-Fox of Soho.
Baroness Lane-Fox of Soho (CB) [V]
The irony clearly weighs heavy when I have wi-fi issues. I apologise, but the internet completely collapsed in my home—fingers crossed that it works this time. You would think that I would have been able to crack it, but I appreciate that I am the least qualified person, perhaps, in many ways.
I too commend the noble Baroness, Lady Black, on her maiden speech. She is an absolute heroine to many of us. I can still see in my mind’s eye her visceral explanation of cutting into flesh for the first time, which may haunt me to my later days. In fact, she might have tempted me to swap careers had I not already become a Member of your Lordships’ House. That is one important dimension of this interesting and important Bill that I shall talk about as part of my role as chancellor of the Open University.
As noble Lords will know, because many in the House today are graduates of the OU as well as honorary graduates—we even have a wonderful ex-chancellor in the noble Lord, Lord Puttnam, as well—the OU is the largest university in the UK. It provides part-time learning through all people’s lives and careers. Perhaps less known to people is the fact that 70% of OU learners are also in full-time work, which is why this Bill is so important in unlocking the relationship between work and vocational technical training and between employers and study.
Furthermore, as I referenced in declaring my own interest in perhaps changing careers, there are some concerns from the Open University about the way in which this is constructed—particularly, as the noble Lord, Lord Bichard, mentioned in his earlier remarks, there are concerns about the lifelong learning entitlement and how it is structured. The OU would be extremely keen to see it structured in the most creative and imaginative way possible to prevent too much rigidity around learning requirements and to make sure that we really allow for part-time learners who may be in work who may want to go sideways in their career. It is unclear yet to me whether, if I became a forensic anthropologist as a Member of the House of Lords, that would be down, up or sideways. But jokes apart, we must make sure that people are enabled to take sideways and forward leaps and, potentially, upgrade their skills but slightly downgrade what might be seen as their natural career prospects. The Open University has concerns around the LLE requirement and how it is structured, and I would be very keen to hear the Minister’s response on this.
Similarly, the OU, as will be known to many Members of your Lordships’ House, has seen a collapse of more than 67% in part-time learners—not just for the Open University but in those going into higher education over the last decade. The Government themselves have recognised that this is cataclysmic for our economy, and we must make sure that we build back the capacity for part-time learning right at the heart of this Bill and put at the heart of it the importance of part-time learners for the economy and wider society.
I always joke in the OU degree ceremonies that part-time learners are no such thing at all. Normally, they are double-time learners, holding down a family and making sure that they also study. It can sometimes take five or even 10 years but, in all my interactions with OU students, they have been people dedicated to improving their learning through their career and the various ducks, dives, weaves and twists that life takes. We want to be clear at the Open University that this Bill will represent part-time learners very clearly—and, as I say, without too much rigidity about requirements, particularly in Clauses 14, 15 and 17. I would be interested to hear the Minister’s response to that.
The Open University is one hat that I wear very proudly, and I am thrilled to be its chancellor and champion of all the types of learning that it represents. I have also recently chaired the House of Lords Select Committee on the long-term implications of Covid. As other noble Lords have alluded to, particularly my noble friend Lord Patel, we have done work recently to look at the hybrid nature of our world right now. As some noble Lords may know, I have a long-standing interest in digital skills and, surprise surprise, that came out very clearly from our work. So I am pleased to see a recognition that we need these technical skills in this Bill, but I hope that it goes far enough and fast enough.
As I think the noble Lord, Lord Willetts, very articulately declared, we cannot design for the here and now; we need to look ahead to the next decade and think about what those skills will constitute and look like. We have found consistently that not only is there a lack of skills right now for employers, there are also huge concerns among employers about what skills will be available in the next decade to take on the challenges that we have not yet even managed to quantify or think about. We in our committee report called for a closer partnership between government and employers to tackle professional qualifications and digital skills to help, for example, a nurse or anybody dealing with any kind of front-line service to have a deeper understanding as part of their professional development. I hope that we take again an imaginative and creative view of what that looks like.
I end by reiterating the point made by my noble friend Lord Puttnam about Demis Hassabis and the importance of creativity and imagination. I am always struck by the words of Sugata Mitra, the great tech entrepreneur, who did a huge amount to open up learning and access, who said that learning is the new skill, and imagination, creation and asking questions should be at the core of skill. We must bear that in mind as we take this Bill forward; we must not get too stuck in rigid ways of thinking about skills, as they will shift immeasurably over the next decades. It may be best to equip people with the ability to ask questions that they want answered and equip them with the ability to personalise their studies through their whole lifelong journey.
Lord Knight of Weymouth (Lab) [V]
My Lords, what a pleasure to follow the noble Baroness, Lady Lane-Fox, particularly in her last comments, as part of what has been a really interesting debate, with an excellent maiden speech in it. I remind noble Lords of my interests in the register relating to education, particularly my work with my clients, Purpose and 01-Edu.
There is of course much to welcome in this Bill but, sadly, as my noble friend Lord Blunkett said, time prevents me from dwelling on those elements. However, it is welcome that the Government are prioritising adult skills and to hear the Minister stress the need to focus on the needs of those not going on from school to university but going on to learn other skills. The combination of globalisation, new technology and climate change mitigation means continued rapid changes in the demand for skills. The World Economic Forum projects that almost half the skills needed for employees to work effectively will change in just the next four years—so deskilling is rampant. It is therefore the urgent responsibility of every Government around the world to transform their skills infrastructure so that it is highly flexible and to anticipate as well as react to the needs of the labour market, as the noble Lord, Lord Willetts, said. Skills policy is now as much about changing in-work skills as it is about helping those at the start of their working lives, which appeared to be an assumption in the Minister’s opening speech.
Here in the UK, decades of underfunding of an overly complex skills system, persistent low productivity, Brexit uncertainty, and widening regional prosperity gaps make an emphasis on this all the more important. The Institute for the Future of Work’s recent report, The Amazonian Era, highlights recent trends, with worker management platforms rapidly deskilling people, from the warehouse floor to hollowing out supervisor roles—deskilling by algorithm. Yet this Bill seems to assume that skills qualifications act like a ratchet and that, once you have got a level 3, the only way is up, to level 4 and beyond. But skills are not like a platform computer game moving up through the levels; they are less Super Mario and more Snakes and Ladders. Personally, I would advocate the development of individual skills accounts over the loan system advocated in this Bill, using a mix of funding from the Treasury, employers and individuals, rather than what is being proposed.
In my remaining time, I want to focus on the diverse needs of three very different groups: the deskilled, the always reskilling, and the perennial professionals. On the deskilled, can the Minister confirm that the local skills improvement plans will fully integrate with welfare-to-work provision? In 2009, when I moved as a Minister from the DfE to the DWP, I struggled to get effective integration of skills and welfare policy—perhaps my weakness. But one department measures success in qualification outcomes while the other does so in job outcomes—and they work to very different timeframes. That has to be fixed through changes to the universal credit regime.
We also need an all-age careers advice service—and I enjoyed the speech of the noble Baroness, Lady Morgan —that aligns with a business advice service. For example, the move to a net-zero economy will create huge opportunities as we transition to new ways of living in our homes and at work. We will have new skills systems and businesses growing to meet those opportunities and anticipate these changes rather than just reacting to them. The fact that Wrexham College only recently became the first FE college to offer training in electric vehicle maintenance is truly shocking. For this group—the deskilled—the qualification ecosystem needs to be more dynamic.
Then there are those sectors, especially in the digital economy, that will always move too fast for qualifications to keep up. I am currently working with Nicolas Sadirac and 01 Founders, which is opening its first school in London later this year to train full stack software engineers. This proven system does not charge tuition fees, is a two-year course and has virtually a 100% employment rate at an average starting salary of over £40,000.
This model—no prior attainment, applying by playing an online game, no teachers and no qualifications—freaks out policymakers because it explodes all the foundations of what we understand about good education, but employers are desperate for this talent because it works. It has a highly dynamic curriculum and does not wait for qualifications to adjust to labour market demand. What is this Bill doing to support more innovative skills training like this, which is hardwired to deliver the shortage skills we need to grow successfully across the country? Does the Minister foresee funding skills measured by job outcomes as well as qualification outcomes?
Finally, I must say something about the training of professionals and here I will focus on teachers. The Government are currently engaged in a review of initial teacher training. Last week they quietly published a document titled Delivering World-Class Teacher Development, which does not mention universities once. It is part of a move that appears to be one of statist centralisation where they want to control the content and method of teacher training to fit Ministers’ judgments on what is best.
This is a grotesque attack on the academic freedom of universities that may destroy the very system supplying teachers into our schools. It betrays a view that teaching is little more than a craft skill, rather than a profession that needs both continuous academic and practice-based development. Can the Minister reassure me, and the many ITT providers I am talking to through the All-Party Parliamentary Group for the Teaching Profession, that there will always be a place for universities like Oxford, UCL and Sunderland in teacher training? Our adult skills infrastructure must meet the needs of great professions like teaching, as well as traditional trades and emerging jobs. In doing so, it must fully respect the role of academic vocational training.
This is a really important Bill, but it is no more than a start. I look forward to trying to help improve it and I hope that Ministers are listening to the real-world reality of change and reflecting that policy thinking needs to change to take account of rapid deskilling and the diversity of needs we all face.
Baroness Wolf of Dulwich (Non-Afl)
My Lords, I add my congratulations to the noble Baroness, Lady Black, for a fantastic and fascinating maiden speech. Secondly, I need to declare rather a list of interests. As the noble Lord, Lord Storey, kindly pointed out, I have become an adviser on skills to the Prime Minister. I was a member of the Augar panel, which reported to the review of post-18 education and funding, and I am also a professor at King’s College London.
I am delighted that the Government are introducing this Bill. A system which offers all adult citizens the chance to obtain high-quality education and training is not just fundamental to our economy; it is central to our future as a country committed—I hope—to opportunity, second chances, openness and making the whole idea of shared citizenship a reality. I believe that the measures incorporated in this Bill are an important step towards creating such a system.
I have argued for many years that our post-18 education and training system is indefensibly lopsided. The gap in spending and the tension between higher education and vocational provision has widened and become even more entrenched. But the Prime Minister last year announced reforms in which two concrete objectives were set. I think these are fundamental, and this Bill will contribute to meeting them. They are about the need to bring higher and further education closer together, and about tackling the great divide which has opened up between the well-resourced and well-signposted opportunities for young people leaving school to go into full-time higher education, and the world of part-time and adult retraining—an area in which we used to be global leaders. As other noble Lords have already pointed out, the last decades have seen us go backwards in a way that it is vital we correct.
When the Augar review reported two years ago, the first recommendation we made was:
“The government should introduce a single lifelong learning loan allowance”
for adults. The Government accepted this and consequently are working quite hard to transform the whole student higher education funding system. The clauses in this Bill are only part of what will be needed to deliver the new system, but they are fundamental foundation stones for what I hope—and I know other noble Lords also hope—will genuinely transform the system of higher and further education in this country in a way that will be good for everybody.
As well as a very divided system of post-18 education, we have managed in this country to create an extraordinarily complicated one. This is reflected in the Bill, which contains a number of specific reforms designed to clarify and simplify. In my remaining time, I would like to comment on two in particular: the regulation of post-16 education and training providers, and the clauses which deal with education and training for local needs.
In 2017, along with other noble Lords, I was quite involved in the passage of the Technical and Further Education Act, which included provisions to protect students in the event of college failures. However, there were no equivalent provisions in the Act for independent training providers. The need to protect all students, trainees and apprentices has been evident for a long time. While the independent training provider sector contains many truly excellent, innovative and effective organisations, that part of our system and its overall reputation have been bedevilled by regular failures and scandals. In 2017, the Government declared they were unwilling to amend the Act then and there but would consider the issue. The mills of government grind slow, but they have considered, and what we now have proposed is a single unified system of protection for learners which I hope other noble Lords will join me in welcoming.
I will comment very briefly on the proposal to create local skills improvement plans. These have attracted a lot of attention this afternoon and I look forward to further comment and discussion. As many noble Lords will be aware, our college network was in large part created by local businesses and employers. Colleges therefore responded very directly to changing local business needs because they talked all the time to individual local employers.
Over the years, those organic links have in many places withered away. Of course, there are a number of fantastic colleges, but it is very much individual principals and employers who make them as excellent and responsive as they are. Far too often, colleges—for very good reasons —spend most of their time and energy focusing on their relationships with public funding bodies and not with local employers. The White Paper’s fundamental goal of bringing employers right back in and making this part of the infrastructure seems to be absolutely correct.
Clearly, just creating LSIPs is not going to revolutionise everything; there are other important reforms in the White Paper which will, for example, give colleges far more autonomy. But putting employers in the system in a structured way—not via other public bodies where members are selected and appointed centrally, but as a group of local employers—is a necessary part of creating that responsive system we all need.
It has been an enormous pleasure to speak today. I hope that the Bill and our discussions on it will take us forward into a new era and we will look back on this as an important and major part of what this Government have done for the skills, education and future of this country.
Lord Stunell (LD) [V]
My Lords, I start by congratulating the noble Baroness, Lady Black, on her outstanding maiden speech. I look forward very much to meeting her face-to-face very soon.
This country’s skills deficit is enormous, and it hits a wide range of sectors and industries. Despite periodic reforms, practically every employer in each sector says that those who complete their formal training are still not job ready. At the same time, there is a huge pool of people of all ages with ambition and drive who would love to have the opportunity to develop their skills and transform their employment chances, and who are frustrated that there is no suitable route for them to follow. While I sincerely hope that this skills Bill will succeed at last in joining up the supply and demand, noble Lords will perhaps forgive me if my hope is not entirely matched by my expectations.
I want to outline the dire gap that there is between ambition and reality by its application to the construction industry. The construction industry is strategic for the delivery of practically every government policy. Whether it is free ports, new prisons, 300,000 homes a year, or 40 new hospitals; whether it is a mighty levelling-up agenda, or simply the vital overhaul of 20 million existing homes to make them fit for zero-carbon Britain in 2050; none of that can happen without a flourishing construction industry to deliver them. The ambition is there, but the capacity is not. I hope that this Bill will go some way toward bridging that gap.
Construction faces a desperate workforce and skills crisis. The Construction Industry Training Board says that an extra 217,000 people will need to be recruited in the next four years to deliver on the ambitious targets set before it. This is not about hod-carriers but about skilled tradespeople, professionals at all levels, and a range of completely new skills, some of which your Lordships might never have heard of before.
After the outflow of EU 27 workers from the industry post Brexit, we needed to at least double the output of new entrants simply to plug that gap. On top of that, however, we also need to train for the new skills required to deliver zero-carbon homes and to retrofit 20 million existing homes. We will need completely new roles, ranging from heat-pump installers and air-pressure testers to retrofit co-ordinators and energy managers. Your Lordships may never have heard of those job titles, but all of them were major bottlenecks in the delivery of the ill-fated green homes grant fiasco last winter. Now, the forthcoming building safety Bill will ratchet up another shortage, this time of fire safety engineers.
I am indebted to the CITB for sharing figures that show that, at present, about 100,000 people take up construction-related courses in the further education sector each year. The problem with that is that only 24% directly enter the industry, while another 16% take up construction-related apprenticeships. The remaining 60% of further education construction starters do not reach the construction workforce at all. It is even worse than that, as many of those apprentice starters do not finish their training, and by some accounts up to half of them also leave the sector. Therefore, out of every 100 trainee starters in further education, only around 30 finish up working in the industry.
And who exactly makes it through the training to the workforce? Some 84% are men. The industry has the most unequal gendered workforce in Britain, and only 6% of that workforce is BAME, about half the national proportion. There is plenty of evidence of the industry’s consequential problems: low skills at every level of activity. The stark evidence emerging from the Grenfell Tower inquiry shows that it is not just a shortage of good bricklayers that is the problem but capacity and competency from top to bottom. Poor productivity, consistently the worst of all our major industries, and very low investment in research and innovation, leads to a depressing spiral of poor quality, low profitability and multiple business failures.
I simply say to noble Lords that, in the construction industry, there just has to be a total rethink of the training provision, and that should include but certainly not be limited to: who actually provides the training; what that training is; who is going to foot the bill for the training; and how to make it attractive to young BAME people and to women. Those questions have to be answered first by the Government. This skills Bill has to be the next step towards putting training in the industry, for the industry, at the top of the agenda. Otherwise, every other policy target and best wish of the Government will certainly be missed.
Lord Baker of Dorking (Con) [V]
My Lords, I declare my interest as chairman of the Baker Dearing trust. I have four comments on this Bill. First, I welcome its proposals to create a skills plan for each town in the country. Secondly, it has missed the opportunity to revolutionise digital skills, which are the weakest part of our present education system. Thirdly, I am very concerned that this Bill could lead to the separation of technical education from academic education, a concern shared by the noble Lord, Lord Blunkett. Fourthly, I will move an amendment to make the Baker clause a statutory duty, rather than dependent upon ministerial advice.
First, I am glad to see that skills plans will now emerge for every town in England, reflecting the needs of the local medium and small-sized businesses. These plans will reveal the skills that the FE colleges will need to teach. It will certainly put industry at the heart of education. This is exactly what university technical colleges have been doing for the last 10 years. The governing body of a UTC is controlled by the local businesses and the local university. The university comes in to teach, and the local businesses bring in projects for the students to work on in teams. I thank the Government for adopting the UTC principle of combining technical and academic education.
Secondly, all the evidence that we are getting in the Select Committee on Youth Unemployment reveals that there is a dramatic shortage of digital skills. Businesses, students and even the unemployed all say that they suffer from not having digital skills. In a survey of 1,000 companies big and small, ranging from nuclear to pubs, 76% said that they lack digital skills, notably data analysis with AI, and this restricts their growth and reduces their profits. We have also been sent evidence—and this I find totally surprising—that, since 2015, in schools for 11 to 16 year-olds, 40% fewer students are being taught about computing than six years ago. That is a staggering statistic in the digital age; it beggars belief. What the Government need to do is to provide all students with a laptop and an internet connection; computing should be taught from the age of 11 for at least one hour a week and that should grow each year. GCSE computing science should be a compulsory subject. There are 75,000 computer GCSE entries: it sounds a lot, but it is 1.5% of the total and fewer than those who take Spanish GCSE. This will need a revolution in teacher training, for all teachers should be expected to acquire digital skills.
Thirdly, I fear that this Bill will separate technical education from academic education, so that there is virtually no connection between them when they should be going hand-in-hand. At 16, school leavers can go to FE colleges, start apprenticeships or go to a provider of technical education where their training will reflect the needs of local employers, and that is good. However, less than a quarter of young people who start at an FE college at 16 will progress to level 4, a critical age where the skills gap really begins, and an insignificant number will then start a higher or degree apprenticeship.
Most students at 16 will stay on in the sixth forms at their schools, and the heads of those schools will tell them that the only way that they can get into university is to stay in school and study academic A-Levels. There are no engineering A-levels and very few technical ones. Technical education between 16 and 18 barely exists because the courses are costly and the teachers are few, so it is not surprising that many 18-year-olds leave with no employability skills. No wonder that 16 to 18 unemployment is now 14.4% and likely to rise.
Evidence presented to the Select Committee on Youth Unemployment is that employers do not want just exam results but employability skills, such as having worked in teams, made things with hands, designed things on computers and engaged in problem-solving. They are looking for adaptability, creativity—which the noble Lord, Lord Blunkett, mentioned earlier today—and imagination. This will not happen if technical and academic education are separated in two separate silos—one marked “technical and vocational” and the other “academic”. What happens then to the parity of esteem? The Government should act to ensure that this educational apartheid does not come about.
Baroness Greengross (CB) [V]
My Lords, I would like to start by congratulating the noble Baroness, Lady Black, on her interesting and fascinating maiden speech, from which I personally learned a great deal, and, equally, by saying how proud I am to follow the noble Lord, Lord Baker, because his ideas and what he has achieved in education policy are also very interesting and have taught me a great deal.
For many years, I have been heavily engaged in the lifetime learning debate, which is increasingly important because of the longevity of our population and the impact that technology is having on employment. Added to this, we have just lived through a pandemic which has caused considerable disruption to the labour market, resulting in changes that are going to be very long-lasting.
I want to congratulate the Government on the reforms to post-16 education that this Bill seeks to implement. As the noble Baroness, Lady Berridge, has already outlined, this Bill will give employers greater input into skills development and ensure that there is stronger regulation and consistency of qualifications. This Bill also responds to the current skills gap in the economy and places duties on education and training providers in specific areas to co-operate with designated employer representative bodies to develop, review and revise plans.
We live in a society where people are living longer and a great many of us are working much later in life than previous generations were able to do. It is projected that someone entering the workforce today will change careers five to seven times during their working life. We know that many jobs may significantly change or become obsolete because of technology change. It is also likely that many children born this year will eventually end up in careers that, at present, do not exist. There needs to be significant investment in lifelong learning and a fundamental rethink of the way we deliver education. Our current school system, where compulsory education finishes at 16, increasingly does not prepare pupils for modern life in a labour market that is changing so rapidly. In the future, we will need most people of working age to participate—perhaps more than once and perhaps many times—in further education to keep up with labour market changes.
It is, therefore, disappointing that in the last 10 years there has been a 26% fall in the total number of people in England of all ages accessing undergraduate higher education. This has been driven by a significant decline in part-time higher education. Now, there are 67% fewer part-time undergraduate students in higher education than a decade ago. The Government have acknowledged that this is a problem, and this Bill is an important start in trying to reverse this trend.
However, in its current form, the Bill does not go far enough in reforming our education sector. There is an opportunity to ensure that the education system provides equal access and support for learners, regardless of where the learning takes place. Rather than creating a unified, credit-based funding system, the Bill creates separate funding systems for those who study module by module compared to those who study a full degree. Education of technical skills or qualifications should be given the same level of importance and respect, and there should be one funding system that does not separate them. Our society needs people to gain degree qualifications, and it is crucial that the Government do not undervalue our universities; apprenticeships and other technical qualifications are different and they teach different skills, but they are just as valuable and should be given equal status.
In a world where an 18-year-old leaving school today will likely work well into their mid-70s, or even later, and where the labour market is likely to go through significant change, investment in lifelong learning is crucial. This Bill makes an important start, and I support what it aims to achieve. However, much more needs to be done to support the lifelong learning education system that we are going to need in the future. I look forward to being a participant in this Bill, which aims to do just that.
Lord Layard (Lab) [V]
My Lords, we should really welcome this Bill, because, as we know, our country does a pretty good job with its graduates but a much less good job with the other 50%. If we are looking for reasons for the difference in the treatment of these two, we should look immediately at the different ways in which they are funded. If you are going down the academic—the route to university—the funding automatically follows the student. Any sixth form or university, therefore, has total freedom to put on a course and admit students, because it knows that if it attracts students, they will be funded, student by student. This system has produced one of the most dynamic learning systems in the world. The non-university route is totally different. The FE college or other provider has to contract, with the Education and Skills Funding Agency, for its budget year by year. The total budget is capped, and it is the Government, therefore—not the students or providers—who decide how many places there are in the sector.
Over the last 10 years, the result has been quite extraordinary. In the 10 years before Covid, the further education budget for people over 18 was cut, in real terms, by 50%. Even if you add in the funding for apprenticeships, the cut is over a third, while, at the same time, university funding has soared. The difference is just incredible. This situation and this system cannot be allowed to continue. Elementary fairness requires that we provide automatic funding for every qualified person, whether they go down the route to university or the route through further education.
This is the moment to make the change, because the Government have, to their great credit, announced that they plan a lifetime skills guarantee, which provides free education up to level 3, independent of age. The guarantee would be a historic landmark if it were put in the Bill, which it has to be. But there needs to be a mechanism to make sure that the guarantee can be implemented, because you cannot implement such a guarantee with the existing system of funding, which has no mechanism for reflecting the demand from the students.
The Bill therefore needs two more clauses: one to put the lifetime skills guarantee in law, and a second to state that by, say, 2025, all colleges and other approved providers should receive automatic in-year funding for any student covered by the lifetime skills guarantee. That is my main proposal.
I will end on the subject of apprenticeships. In the year before Covid, nearly one-third of all 18 year-olds were not in any form of education or work-based training. That is amazing—what a disaster. In my view, most of them should have been on a level 2 or 3 apprenticeship, or on a pre-apprenticeship course, but currently, there are simply not enough apprenticeship places to meet the existing demand from young people. It is not a cultural problem; it is a problem with the supply of places. Yet at the same time, half of all apprenticeship starts are not for young people but for people aged over 25, many of them long-standing employees getting top-up training that should be paid for by the employer. In addition, as the department’s own research shows, the benefit-cost ratio for apprenticeships for those aged over 25 is barely half what it is for apprenticeships for those aged under 25.
Many more of our apprenticeships have to be directed at young people. In my view, the state’s prime duty in education is to get every young person a proper start in life and a proper skill. Until we have done that, there should not be any apprenticeship money—or nearly none—for the over-25s. At the very least, there should be a legal requirement in the Bill that, by 2025, no more than, say, one-quarter of apprenticeship funding goes to people over 25.
This is a Bill with enormous potential to transform people’s lives and to improve our economy, but I believe that it needs at least three additional features. First, if it is to mean anything, the lifetime skills guarantee should be in the law; secondly, there should be automatic in-year funding for every student exercising the lifetime skills guarantee; and, thirdly, there should be a maximum limit of, say, one-quarter on the share of apprenticeship funding going to people over 25. I hope the Minister will be able to consider and support these proposals.
Baroness Sheehan (LD)
My Lords, I add my congratulations to the noble Baroness, Lady Black, on her excellent maiden speech.
I rise with some trepidation, as this is the first time that I have spoken in an education debate. My reason for doing so is to raise issues about what is not in the Bill. Although the Minister mentioned the green revolution in her opening remarks, she failed to note that there is not a whisper of reskilling to meet the challenge of climate change in the Bill itself.
Like others, I welcome the Bill. For far too long, lifelong learning has been seen as being a bit quirky. It must instead become an acknowledged norm. We must make it easier for people to upskill or reskill, so that they can redirect their efforts to where there are going to be opportunities in future developments as we reshape our economy to meet the challenges of the Covid-19 pandemic, climate change and threats to our natural world.
This Bill should represent a pivotal moment for supporting UK efforts to move to a prosperous zero-carbon economy and society. It could help with building public understanding and confidence and the behaviour change needed to meet net zero and to protect our finite natural resources. It could offer impetus for green jobs and the competitiveness benefit that comes with them. However, it does none of those things. It is silent on the massive skills shortages in sectors that will be crucial to building a greener economy. There is no provision to embed climate and sustainability considerations into the post-16 framework, despite strong evidence from business, educators and learners on the need to do so.
Given that there is unlikely to be further legislation in this area for some time, this Bill is where these gaps must be addressed. The Government are well aware of this, which makes it rather puzzling that there is a lack of even a signalling of their intent to address how they will join up their strategy to achieve net zero with the planned reforms of the post-16 and skills system.
The Government have a 10-point plan for a green industrial revolution, which highlights the opportunity to unlock hundreds of thousands of jobs in the transition from a fossil-fuel-based economy to a more sustainable one—one that will support a just transition for workers. They have the Green Jobs Taskforce, set up jointly by BEIS and the Department for Education, whose remit is to support the UK to transition to a net-zero economy and deliver a green recovery by developing recommendations for an action plan for government, business, education institutions and trade unions to support 2 million good-quality green jobs and the skills that will be needed by 2030. The taskforce finished its work in April this year and has not yet reported. How do the Government plan to incorporate the task force’s findings?
Is it indeed the case that local skills improvement plans would be prepared without reference to strategic objectives such as the net-zero targets or the associated sector-specific strategies, such as the industrial decarbonisation strategy, the transport decarbonisation strategy, the energy White Paper, the nature strategy and the heating and building strategy? Can the Minister reassure me that these crucial underpinnings of how we build back better—in the Government’s own words—will be taken into account in LSIPs? If so, how will that happen?
It is unclear how the Bill will offer support to workers transitioning from industries such as oil and gas, or to fossil fuel heating engineers who will require retraining and reskilling. Current policy plans mean that workers transitioning out of high-carbon sectors who already possess level 3 qualifications would not be able to access the lifelong learning entitlement. Maybe the lifetime skills guarantee level 3 entitlement could be put on a statutory footing and extended to include subsequent qualifications where relevant.
The interrelated climate, biodiversity and Covid challenges have intensified questions from students, teachers and parents about the purpose of education. The learning approaches and analytics they need and want are those that are necessary to tackle global and local crises. This Bill is an opportunity to embed climate and sustainability aspects in both non-vocational and vocational 16 to 19 provision, as well for older adult learners. I hope that the Government, in later stages of the Bill’s passage through your Lordships’ House, will address the green gap within it.
Baroness Wyld (Con)
My Lords, I add my warm congratulations to the noble Baroness, Lady Black of Strome—I am in awe. I also slightly wish that I had had my first job in a butcher’s shop, rather than packaging up the pear drops in the newsagent, then I too could have been an international high-flyer. It was a brilliant maiden speech.
I need to declare a few interests. I am a non-executive board member at Ofsted, from August I will serve on the Court of Newcastle University, and I had a temporary role on a committee at Ofqual towards the end of last year.
I of course welcome this Bill. As it so happens, my dad was an FE lecturer in Tyneside until his retirement. I remember very well when I was growing up meeting some of his students. We would bump into them in town or they would come round and thank him. A lot of them had come to education later in life and would talk about how their confidence had been transformed, so I am particularly pleased to speak on this issue today.
In my own maiden speech four years ago, I said that the pace of the technological revolution meant that the Government must use the tools they have to ensure that the labour market can adapt as nimbly as possible to an unprecedented pace of change. The Bill is certainly a step in the right direction, although there are areas I want to probe.
The Government are clearly passionate in their determination to level up and to ensure that we see a tangible link between skills and retraining and local jobs, and there is a very clear rationale for the local skills improvement plans. I agree that employers should be at the forefront of this. I am sure that my noble friend the Minister is aware that the pace of change in work- places means that we must think beyond the immediate jobs requirements of local employers, because we need to ensure a long-term employment market in which all can thrive according to their talent and hard work.
It is with this in mind that I gently ask my noble friend whether she can reassure me that we are definitely going far enough to empower local communities. Voters across the UK have just given a big vote of confidence in local leadership—for example, in re-electing local mayors. How will local leaders, with their in-depth understanding of demographic trends, existing skills, market trends and local infrastructure, be involved in the plans? Although I was unable to speak in the Queen’s Speech debate, I read it all back, and several noble Lords across the House expressed concern at a sense of “Whitehall knows best”. My noble friend absolutely has my sympathy, as she knows—this is an age-old dilemma for Governments who want to grip an agenda—but I would be grateful for some reassurance.
Like others, I turn now to lifelong learning. The Government are to be commended for the funding for level 3 qualifications, but I share concerns about those who could, in effect, be frozen out because they have an existing qualification. Does this not contradict the principle of retraining? As far as the loan entitlement provided for in Part 1 is concerned—the Government can consult on it—again, in principle all is good. It is absolutely right that we disrupt the status quo away from a one-size-fits-all approach, but I want to be sure as the Bill progresses that we really understand how gaining skills and/or retraining can work in practice, and do not make an assumption that policy and legislative change translates into easy decisions for, for example, a cash-strapped, time-poor 45 year-old.
There are lots of points on the detail that will need to be worked through, but there are immediately some glaring questions which others have raised and I share concern about, particularly regarding the equivalent or lower qualification rules, which my noble friend mentioned in her opening speech. Surely the pace of change we have discussed at some length today means that those with all sorts of qualifications will find themselves in need of retraining; again, I go back to the need for a nimble system.
More broadly, I support the Government’s optimistic message on lifelong learning and retraining but, ultimately, it is not me they have to persuade. We do not need a huge leap of imagination to understand how daunting the thought of taking on a loan in order to train or retrain can be to those who, through no fault of their own, have lost their job or have effectively been frozen out of the jobs market as a result of childcare pressures or caring responsibilities. Therefore, I urge the Government and employers—because I do not think government can or should solve every problem—to prioritise the social infrastructure that will enable more people to realise their ambitions and be part of a sustained recovery.
The Government acknowledge that the funding and loans system is complex. The more complex the system, the greater the need for clearer signposting. There is a lot of work to be done to develop a consumer- friendly system, particularly for the hard to reach. We are talking about lifelong learning, so we need to match that with a genuine understanding of the factors that affect decisions and resilience at every stage of life. But for all the challenges I have highlighted, I am absolutely confident that there is a way through. I look forward to working with the Government, who have my full support as they take the Bill forward.
Baroness Blackstone (Ind Lab)
My Lords, I welcome a Bill which focuses on lifelong learning and is committed to enhancing skills among the many young and indeed older people who do not go to university. I also welcome a Bill which aims to enhance the further education sector and support outstanding teaching as well as emphasising collaboration between employers and education and training providers, with the provisos made by my noble friend Lady Morris of Yardley. Lastly, I welcome a Bill which seeks to correct the injustice of considerable financial support for students in universities against negligible financial support for students studying in FE colleges.
We undoubtedly have serious skills gaps compared to other OECD countries, with shortages of skilled employees in many sectors and low levels of productivity. This reflects too little investment by government and employers in alternative qualifications to university degrees. This has been particularly apparent in the last decade, when the coalition Government and the Conservative Government who followed them slashed further education, cutting colleges’ incomes by 50%.
Having welcomed the aims of the Bill, I turn to some of its limitations. As a piece of legislation, it is short on detail; it is a skeleton with too little flesh on it to allow us to understand how it will work in practice in key areas. This perhaps explains the long timescale for implementation, which will not be until 2024-25 for core proposals. The Bill reads a bit like a work in progress rather than the end of a detailed policy-making approach culminating—rather than beginning—with a piece of legislation. In a post-Covid world, action will be needed urgently and cannot be delayed for four years. This is especially true of training and educational support for the unemployed after furlough ends.
As others have said, the Bill’s implementation is also dependent on a large injection of resources, both in the short and the longer term. The Institute for Fiscal Studies has questioned whether these resources will be forthcoming and whether detailed calculations of the costs entailed have been undertaken. What is the total price of the Bill when implemented, and when will the Government start injecting new resources?
Let me illustrate this with respect to FE colleges. Their funding has been insufficient. They need more, and they need longer-term funding settlements. This much was recognised, as the Minister knows, in the White Paper. It becomes even more salient when their funding is compared with that of schools and universities —as my noble friend Lord Layard has already mentioned—since they are much less well off in funding per student. Recent research by the IPPR found that to keep up with demographic pressures and inflation, over the last 10 years we would have had to invest £2.1 billion more per annum in adult skills and £2.7 billion more in 16 to 19 year-olds in FE. The Government must provide for future needs and redress the long-standing past underinvestment. Are the Government committed to starting the process in the next spending review, and will they move to long-term, multiyear simplified funding? Without this, the colleges will not be able to develop their curriculum and the range of courses needed to meet the outcomes of discussions with employers on local skills needs, nor will they be able to pay the salaries needed to attract high-quality lecturers to develop and teach new programmes.
I want to pick out one important area for new courses that may not emerge from locally based identifications of skills needs but requires a national scheme. This concerns the green economy. The Government’s commitment to net-zero carbon emissions by 2050 requires a big shift to education and skills training to stall climate change. The Bill is a lost opportunity as it fails to link the Government’s goals on decarbonisation in energy, transport, and buildings, sustainable land management and carbon sequestration. Not only will those entering the labour force for the first time need to be prepared for green jobs, but many who currently work in fossil fuel sectors will need retraining. Why does the Bill make little or no reference to net zero? Should there not be a requirement for skills improvement plans to refer to national objectives on the green economy?
Lastly, I want to touch on the lifetime skills guarantee, on which the Government are still consulting. I am really glad that the gist of the Augar report’s recommendations on student support has been accepted, but the Government must provide more detail on eligibility, whatever the level or type of course the student is training in. Who will be eligible in terms of the range of subjects? I hope the range will be very wide and not narrow. They also need to consider, as others have said, how to support the maintenance needs of students from disadvantaged backgrounds—or are the Government just going to ignore this? There will be a great deal of work to be done in Committee in this area and, I fear, in many other areas too.
Lord Curry of Kirkharle (CB) [V]
My Lords, I too welcome the noble Baroness, Lady Black of Strome, and congratulate her on an impressive maiden speech. I very much welcome this Bill, as it is clearly appropriate to revisit how current legislation is meeting the needs of students, employees, potential employees and employers, in a rapidly changing world. Let me declare my interests: I have been actively involved in encouraging the establishment of the institute for agriculture and horticulture, TIAH, which is under way, to help improve the image of the sector, provide signposting to quality-approved courses and CPD opportunities, and establish a national register. The support of Defra on this has been very welcome. I am also a fellow of City & Guilds.
The key objectives of the Bill are laudable and very welcome. Putting employers at the heart of post-16 skills policy has been the intention of previous policies. That is easily stated but more difficult to apply in practice. To devolve responsibility to local level, to have local skills improvement plans and employer representative bodies, must be the correct approach. What is unclear from the Bill is how this intention links to national skills priorities for each industry sector, how this relates to regional priorities—in particular, the involvement of local enterprise partnerships—and whether local employer representative bodies to be designated by the Secretary of State are intended to represent all industry sectors within a given local area.
Too often in the past, employer representative bodies have been dominated by large industrial employers and new high-tech sectors regarded as sexy and attractive. Other sectors, which are crucial but fragmented and characterised by SME employers, are sometimes not recognised and therefore not included. This is particularly true of the rural sector and agri-food businesses. They are not identified as sectors with skills gaps in the White Paper but are hugely important and provide exciting opportunities for those choosing a career. I hope the Minister can provide reassurance on this point and, in doing so, give a definition of “local”. Is local a county or parish definition, or something else?
The need to facilitate and encourage lifelong learning is vital; even more so as we emerge from the Covid experience, when many who have been furloughed or made redundant may have wished to retrain. A lifelong loan entitlement is an interesting concept and we await the consultation with interest. However, to wait until 2025 before this loan becomes available is regrettable. In my view, we will miss an important window, when such a facility would be very helpful. I hope that the Government have learned lessons from the student loan experience in determining the thresholds and timetables for repayment. I support the comments of the noble Lord, Lord Willetts, in this respect.
I will now comment on the changes to the regulatory framework proposed in the Bill. In my view, there is potential for significant confusion, as referenced by other Peers in this debate. Government support for vocational training and skills development, with T-levels et cetera, is very welcome. The ability of students to achieve degree-level qualifications as an alternative to attending university, with all its associated costs, must be correct. There is, however, some concerning potential overlap among the regulatory bodies. The Bill must be clear about the relevant roles of the Office for Students, the Education and Skills Funding Agency, Ofqual and the Institute for Apprenticeships and Technical Education—particularly the latter two bodies. Unless I have misinterpreted the wording, it appears that the new roles envisaged would create a two-tier and rather cumbersome regulatory approval system. The last thing we need is confusion, duplication and an additional load of bureaucracy. Within this new framework, it is essential that the authority of Ofqual and its accountability to Parliament are not diluted.
We also need to be aware of the administrative costs of regulatory oversight. I speak as a former chair of the Regulatory Policy Committee. Every new or amended regulator adds a new level of cost. The total cost of the suite of regulators in this space will be substantial.
I fully appreciate the need for nationally recognised industry standards. It is important that statutory control, as proposed in the Bill, particularly the role and influence of the Secretary of State, does not lead to overcentralised control or inhibit competition on skills provision in the marketplace.
I conclude by raising a concern about rural and land-based education. The Minister will be aware of the deep concern in the north of England about the proposed closure of Newton Rigg College in Cumbria. The failure to find a solution so far, and the possible loss of this geographically important college and its unique role in serving the needs of the uplands sector, as well as woodland and forestry management, is, I hope, not a signal that the Government do not regard rural as important. I left school aged 15 and the only formal education I received afterwards was in Northumberland, in what is now called a land-based college, very similar to Newton Rigg. As it was for the noble Lord, Lord Blunkett, this was through evening classes and day-release courses.
As has been stressed a number of times today, we must ensure that young people and those who wish to retrain are well informed on course availability, including rural, land-based and agricultural courses, and have every opportunity to choose a career as a consequence. In the light of climate change, our net-zero ambitions, the importance of food security and opportunities within the rural economy, I hope the Government continue to regard this sector as important. I fully support the comments of the noble Lord, Lord Taylor of Holbeach, on the need for seasonal workers in the agricultural and horticultural sectors.
Lord Cormack (Con)
My Lords, it is a great pleasure to take part in this debate. I begin, as many others have, by paying a tribute to the noble Baroness, Lady Black of Strome, who made a fascinating and somewhat gruesome maiden speech. I look forward to hearing her again on those subjects and in more detail. I long for the day when this Chamber is full again, when we can have a proper debate, without too many colleagues Zooming in.
I will concentrate on one issue in particular, which is an aspect of the construction industry, about which the noble Lord, Lord Stunell, spoke with some passion and deep knowledge. I declare my interest as the founder and chairman of the William Morris Craft Fellowship programme and the first vice-president of the Heritage Crafts Association.
As many of your Lordships know, I am passionate about restoring buildings, particularly this one and Lincoln Cathedral, which I look at from my home every time I am back on the weekends or in recess. I am acutely conscious that great buildings, such as this one, Lincoln Cathedral and churches around the country—often focal points of their local communities—are in greater danger than they have been for many a long year. It is partly a consequence of the pandemic: many churches have been shut for months and have deteriorated. Many are bat-infested, which is a real problem that I have talked about in your Lordships’ House before. We owe these buildings to craftsmen and, more recently to crafts men and women, through the ages. One evening every month in Lincoln Cathedral, when we generally pray for those who have been benefactors or achieved great things, we pray for the unknown by name who created that great building. It is the same here and in every parish church in the country.
We founded the William Morris Craft Fellowship, named after that great pioneer—also a great socialist, but I will not talk about that—in the 19th century because of his dedication to the arts and proper restoration. We sought to find mainly young crafts men and women around the country who showed enormous potential but who had all been through a long apprenticeship. I say in parenthesis that one of the things that disturbs me about the Bill is that it does not confront “apprenticeship” properly. The word has been too loosely used in recent years, even attached to flower-arranging courses that last nine months—although I say nothing against flower arranging.
To master a craft is a long, arduous and challenging business. We were looking for those who had done so, who had shown great interest in kindred crafts—because you cannot be master of your own unless you understand others—and who showed the potential to be able to take charge of important sites. Over the last 35 years since we founded this fellowship, we have chosen well over 100 mainly young men and women who have gone on to do all manner of things, including writing notable books about the subject.
That is why I am so much in sympathy with my noble friend Lord Willetts when he talked about not having an artificial distinction between the academic and the vocational. I am a great believer in vocation. I consider that those of us in this place, and in the other place where I had the honour to serve for 40 years, are following a vocation to public service. It is desperately important that we encourage more and more young people to realise that by working with their hands they are also using their brains and helping to create or preserve things of great beauty.
I mentioned the other day, when we were we were talking about the Environment Bill, the importance of constructing buildings of quality today—I cited the Prince of Wales on Poundbury—but the noble Lord, Lord Stunell, was right: there are not enough who have mastered their crafts. I share the concerns of the noble Baroness, Lady Blackstone, about the delay in the implementation of aspects of the Bill, but I hope there will be a real emphasis on encouraging young people to embrace real crafts and to help to create or preserve those buildings of beauty in which the history of our country is embodied and will continue to be built.
Lord Liddle (Lab)
My Lords, it is a pleasure as always to follow one of the interesting speeches of the noble Lord, Lord Cormack. However, on this occasion it is an even greater pleasure to congratulate the noble Baroness, Lady Black of Strome, on her maiden speech. I have a bit of history with her: her current position is pro-vice-chancellor for engagement at Lancaster University, and when I was chair of the council I—along with others on the panel—appointed her. It was the easiest appointment I have ever made in my life, and that does not reflect on the quality of the other applicants. Sue is tremendous and she will make a great contribution to this House.
We are talking today about a very serious subject: that of decades of public policy failure on Britain’s part in education. We have made multiple efforts: the technical schools of the 1944 Act that never happened; the training boards that Labour established in the 1960s but were then thought unsatisfactory; and the learning and skills councils established by my noble friend Lord Blunkett but then abolished. There has been no stability of approach and no stable institutions, and we have huge problems.
I first came across this issue when I worked with my noble friend Lord Mandelson at the Department for Business, Innovation and Skills at the fag end of the Labour Government. We suddenly realised, based on the work of my noble friend Lord Sainsbury and his Gatsby Foundation, that we were facing a real crisis in technicians: if we were not able to have sufficiently highly qualified technicians, how could we be a successful economy working at the frontier of knowledge? We have heard today from the noble Lord, Lord Baker, about the lack of training in digital skills and computing. Another worry is construction. This Government, rightly, have huge ambitions for public investment—we are raising it from something like 2% to 4% of GDP—but if we do not have the workers how are they going to fulfil those ambitions?
I welcome the Bill. I would not say that the present Secretary of State for Education was one of the Conservatives whom I most admire—I admire many Conservatives, by the way—but I praise him for taking up the cause of further education. I hope his efforts will have more success than the past decades of failure.
One of the most shocking things that I have learned in this debate is from my noble friend Lord Layard, who had enormous influence over the policies of the Blair and Brown Governments, when he said that today we are in a situation where one-third of 18 year- olds are not in any form of education or training. That is a recipe for a low-pay, low-skill economy with massive inequalities for decades to come. It is a recipe for social disaster in the world of knowledge, advanced technology, artificial intelligence and all that which we are moving into. We have to do something about it.
The funding of lifelong learning, the introduction of modular courses and efforts to secure greater employer involvement are all admirable. However, there are a couple of matters about which I worry. First, I worry that the whole approach is too centralised. I have always been very sceptical of the Skills Funding Agency, which holds the whole system in an iron grip and does not allow for local flexibility and initiative. I would like mayors and combined authorities working with employers to develop skills improvement plans on a localised basis in England. Secondly, the education system needs collaboration, not polarisation. I saw this at Lancaster, a very good university, where we had a very good partnership with Barrow’s college of further education to train graduate engineers for the Vickers yard.
Such collaboration between colleges and universities should be strengthened; we should not be trying to force the systems apart. That is very important. I worry that we are allowing ourselves to think that university expansion has reached its limit. We in this country are supposed to admire places like Asia. Well, in places such as South Korea something like 70% of children are going to university, so do not let us have any artificial limits.
I shall make a final point. We must be prepared to put public money into this. We can make choices about it, but I think personally that my own party’s commitment to abolish tuition fees is ridiculous, given the amount of money that we have to spend on other aspects of education. On the government side, the Conservatives have to recognise that further education and apprenticeships have been an area of massive underfunding. We need a joint commitment to create stable institutions and to provide the funding that will lead to a transformation in this field.
Lord Bilimoria (CB) [V]
My Lords, the Skills and Post-16 Education Bill represents an opportunity to create a more agile and jobs-focused skills system that is underpinned by local collaboration between further education, higher education and business. Strengthening collaboration with business can help us to identify and respond to skills demands through providing short courses that support employment and provide a talent pipeline for job creation.
For local skills improvement plans to be successful, they must leverage the input and strengths of businesses, along with further and higher education providers. Partnerships between colleges and universities can build clear pathways for people to learn new skills and support employers to recruit and upskill their workforce across the different stages of education and training. Local strategies should complement the work of LEPs and combined authorities in skills planning and harmonise the efforts of regional actors. A fragmented approach across different geographies risks confusing employers and leaving gaps in coverage.
The Government must go faster to support adult learning, ahead of the introduction of the lifelong loan entitlement. The CBI, of which I am president, in its Learning for Life report found that, by 2030, nine in 10 people will need to upskill or retrain in order to prevent skills gaps emerging in the UK. Covid-19 has thrown this challenge into even sharper focus, with an urgent need to respond to increasing unemployment. The introduction of a lifelong loan entitlement is a positive step to enable more adults to acquire the skills they need to flourish. However, the 2025 timeline needs to be accelerated in order to support the reskilling that our economy demands. In the interim, the Government should work with further education and higher education providers to incentivise and upskill through more flexible, modular and bite-sized courses.
To build on the Bill and deliver on the priority of boosting adult education, the national skills fund must also provide support for individuals facing the biggest barriers to learning, thus supporting those with the greatest retraining needs. This will be essential to mitigate the job displacement being caused by the pandemic and will help the UK to seize the benefits of an increasingly digital and green economy. We need a levelling-up of opportunity for people to build their skills, but that will require significant business investment. Realising the Government’s ambitions for this Bill will require fundamental levy reform. Addressing skills gaps in our economy and giving everyone access to the education and training they need will cost approximately £130 billion over the next decade. That is what the CBI has estimated. The Government must create the right incentives to unlock business investment in every town, city and region.
In its current form, the apprenticeship levy serves as a barrier to investment in skills. It is distorting investment as firms try to make training fit awkwardly into an apprenticeship. Many firms are also reticent about investing in further skills support until they have spent their full levy fund. A flexible skills and training levy could unleash business investment in both people and workplaces, and could capitalise on the increase in employer demand for the more modular, skills-based provision that the Government are proud of. Does the Minister agree with that?
The Government have also taken steps to make it easier for employers to transfer funds to SMEs in their supply chains. While levy payers are keen to help smaller firms invest in apprentices, that does not overcome the wider challenges, including those faced by SMEs. The fundamental issue is that employers are being forced to address all their training needs via the apprenticeship route, leading to most levy payers underspending their pot of funds. We have reached an impasse with the Government, with the Department for Education pointing the finger at Her Majesty’s Treasury. Will the noble Baroness the Minister clarify the situation?
The Open University has said clearly that the Bill is a key opportunity to reverse the calamitous decline in part-time students in higher education in England. I hope that the Minister will agree that it is essential that this is not missed. I was proud to be the youngest university chancellor in the country at the time, from 2005 to 2010 at the Thames Valley University, now the University of West London. I saw at first hand the amazing number of mature and part-time learners, but that has sadly declined hugely now.
Professor John Holford, who was a fellow commissioner on the Centenary Commission on Adult Education that reported in November 2019, has made some really important points. He says that a Bill which focuses on skills and productivity is important, but post-16 education is also vital for many other reasons too. For example, it can help individuals and communities who are struggling to counteract loneliness and isolation in the wake of Covid. We need to recognise the wider educational role of the further education sector.
Schools and universities celebrate learning for vocational qualifications, but they also teach philosophy, ethics, art and music, which are the tools needed for active citizens. Further education alone is denied that breadth. Educational breadth is needed so that adult education can engage with those who are most in need. Education has often not worked for them in the past. They do not see education as a route to earning more. Adult education needs to be able to offer the kind of learning that will enthuse and engage people. Does the Minister agree? Very often, this will build their confidence so that they can go on to study further for a qualification to progress towards better work, improved health and well-being, along with other outcomes that benefit themselves and their communities.
This Bill offers no new support for students studying below level 3. That pathway is vital to the post-16 educational landscape. Without adequate support in the adult education budget for lower-level qualifications, many students will not be ready and able to take up the level 3 offers that are included in the Bill. Does the Minister agree with this?
The preparation of local skills improvement plans must involve wide consultation not just with employers but with professionals, including community adult education providers such as the institutes for adult learning, general further education colleges and local authority community adult learning representatives.
In conclusion, I am proud to be chancellor of the University of Birmingham. Earlier on, my fellow chancellor, the noble Lord, Lord Willetts, made such an important point in this debate. Far too often, people have a mindset that further education equals technical and vocational, while university education equals academic. Universities are also proud to offer vocational training and qualifications, whether that be in filmmaking or engineering.
The Deputy Speaker (The Earl of Kinnoull) (CB)
The noble Lord, Lord Flight, has withdrawn, so I call the noble Baroness, Lady Whitaker.
Baroness Whitaker (Lab)
My Lords, I join in the congratulations to the noble Baroness, Lady Black of Strome, for a most interesting speech. I welcome this ambitious Bill and the lifetime skills guarantee, both for filling our skills gap and for the personal fulfilment it offers for many who were ill-served by secondary education or need to change direction. I declare interests as a former chair and current fellow of the Working Men’s College, chair of the Department for Education’s stakeholder group for Gypsy, Traveller and Roma education and other positions as listed in the register. I am also grateful for the extensive guidance sent to us on the working of the new plans.
While I very much support expanded provision of higher-level technical education, whose dearth has so much impaired our competitiveness and domestic standards for so long, I want to focus on provision for that large number who need a second chance by widening access to further education.
The fact is that, in 2019, 34.1% of students—over one-third—failed to get a standard pass at grade 4 in GCSE maths or English, the gateway to almost all forms of further education, and that is without counting the number who drop out of education long before the GCSE years. The noble Baroness the Minister will be aware that many Gypsy and Traveller children do this because of the relentless bullying and prejudice which many schools seem unable to eradicate. I am indebted to the Education Policy Institute and the excellent report, The Forgotten Third, for its analysis of the reasons for inadequate attainment. It shows the dismal outcomes in unemployment and low-level crime for this deplorably large proportion of our school students. Needless to say, lack of innate ability does not feature. These are young people who are in the main capable of earning a living and making a contribution to society. They need enhanced access to a second chance.
So, I have a series of questions. How will lifelong entitlement work for them? It seems to be available only for study at higher technical and degree level. How will skills acceleration and local skills improvement plans work for them? In relation to the obligation on colleges and designated institutions to make regular assessments of local needs, how will the colleges take account of school dropouts and school leavers not equipped for available work? It should be said again that there is no evidence that these young people are all lacking in intelligence, although some may have limited aspirations. What account will the proposed government intervention process take of these factors?
In principle, my points all concern access to vocational qualifications. The basic question is: what scope is there for funded initial or foundation courses to enable access to traineeships, apprenticeships and the rest of further education for non-achievers in English and maths? What provision is there for tutoring and mentoring, which are particularly important because of the Covid-related gaps in education, and how will careers advice and guidance on these and other access arrangements be made available? According to the Traveller Movement, Gypsies and Irish Travellers in 2017-18 obtained only 40 traineeships out of 17,700 and 180 apprenticeships out of 216,000.
It is also important for improved teacher training to include the cultural backgrounds of students, including the culture and heritage of that large group of minority ethnic students, not least Gypsies, Travellers and Roma children, who appear prominently in the numbers failed by the system. There have been many incidents of ethnicity-based bullying and prejudice in the further education sector for those few Gypsies, Travellers and Roma students who have surmounted the obstacles to getting in, and it may be similar for other students from minority ethnic backgrounds. Such training would not only be just but would increase the effectiveness of teaching. The same applies to the Office for Students. What assurances can the Minister give us on that point?
In conclusion, as it stands, this potentially useful Bill has little to contribute to levelling up. It is rightly aimed at strengthening the economy but misses the opportunity to include the many who need, and deserve, a fairer chance.
Baroness Verma (Con)
My Lords, I join all noble Lords in thanking my noble friend the Minster for the way she introduced this very important piece of legislation today. I also join them in congratulating the noble Baroness, Lady Black of Strome, on her maiden speech.
The Bill highlights areas that in my view have for far too long not received the government attention that reflects their importance. If we are to be an outward-facing global country, the development of skills permitted by the Bill will be critical. The key areas that I want to address briefly today concern the lifelong learning that should be available to all if we are to become that global, competitive country. There is no such thing as “a job for life” anymore. We live in a world where all jobs are expected to be fluid and interchangeable, and to have technology and digital skills at the centre of their roles. Whether it is in construction or in the new emerging economy, our future job roles will need all those skills, from basic technology to intricate digital mapping and AI skills.
Therefore, access to skills training and opportunities to move across sectors will be critical for an agile and quick-reacting economy such as ours. As others have said, will my noble friend ensure that there are no barriers to accessing new qualifications, even if people have already benefited from entry-level qualifications? Lifelong learning must mean exactly that. Employment needs are changing at pace and we must not stop at entry-level roles, as that in itself stops employment development.
I also place a strong emphasis on the importance of language skills. So many times we hear of people from minority communities being exploited in poorly paid roles or, sadly, in some instances being subject to modern-day slavery simply because they lack language skills. It is not good enough to have funding provided to local authorities without clear evidence of how that funding provides tangible, measurable results. The pandemic has shone a light on the fragility of communities in their struggle to protect themselves from not just the pandemic but abuse. They lack access to educational tools and support for families in multigenerational households. We need to address the poverty of learning. I say to my noble friend that these are deeply embedded, long-standing problems that have been ignored for decades.
I will also touch on life skills and experiences. Like many noble Lords, I have participated in educational political surgeries with schools. I recently did one with a high school in Gloucester. There, I was really encouraged to hear the thoughtful and pragmatic approach students had to the world around them. The key points that stuck in my mind included whether focusing on exams at the end of a year was an outdated approach to measuring a student’s potential. Some are great at sitting exams, but many are not. They want a true reflection of their abilities to be measured, rather than just leaving it to the end of the year. Real life does not exist in vacuums, so why should the student experience?
The students also wanted greater exposure to real-life skills such as financial literacy, budgets, and debt management. I thank one particular student called Rose, who made the point so beautifully that I realised how poorly qualified I had been when I left school to manage the businesses I manage now. They were incredibly sensible and practical asks for those thinking about the future jobs market.
Careers advice needs to be delivered by a combination of factors, with technical, business and academic-informed provision. This does not stop or start with young people, but should be available for everyone. Employment will undoubtedly change many times over in our working lifetimes, but people in their mid-40s upwards who might lose their jobs because of the pandemic will need skills to meet the new and current requirements of the jobs market today and in the future. We cannot airbrush these groups out because they do not make a loud noise. Their past experiences mean they need the new skills. I therefore urge my noble friend to make support easily accessible to these groups. Please do not forget that we have a pool of people who will feel that they have been left behind.
Finally, let us celebrate alternative routes to top jobs. Let us treat alternatives to degrees with parity. I have raised this in the House on many occasions: how are the Government monitoring career progression across the Civil Service and Whitehall, where we see less and less inclusion and diversity as we go higher up the organisation? Will my noble friend go back to looking at the levelling-up agenda being not just for the private sector but for all sectors where education and skills play a huge role, so we reach the large pockets of the population who remain on the edges of communities, without hope or help? Let this important Bill be the real game-changer for those communities with untapped potential, such as those in my city of Leicester, that will need ongoing support, particularly after the pandemic.
Lord Bradley (Lab) [V]
My Lords, I join in the congratulations to the noble Baroness, Lady Black of Strome, on her excellent maiden speech. I declare my interests in the register, particularly my position as chair of council at the University of Salford. I am particularly interested in the provisions in the Bill in respect of bringing together the higher and further education sectors, and providing greater parity of esteem between the various routes, academic and vocational, that one can travel down to secure a quality job. That blurring of the lines between academic and technical education is at the heart of the University of Salford’s mission. Its founding institution was the Royal Technical Institute of Salford, which was established in 1896 to train the workforce of the industrial revolutions.
Over 125 years later, the university is dedicated to powering the fourth industrial revolution. Today, academics are working hand in glove with employers, both public sector and private sector, to transform higher education. The university offers industry-focused degrees, designed with employers and with real-world experience baked in from day one, alongside new routes such as higher and degree apprenticeships. It is this legacy that the university is now building on, with its ambitions to develop an institute of technology. This innovatory project will bring together, in partnership, employees and further education colleges across Greater Manchester, to offer a range of level 4 and 5 courses, higher technical qualifications across digital, engineering and data, to plug the missing middle skills gap that we know employers are so desperately crying out for.
Turning to the legislation itself, I will focus on two areas. Of course I welcome the principle of the lifelong loan entitlement. Access to funding for training and retraining throughout one’s life will be a critical foundation for any aspiration to build a vibrant economy after the coronavirus, However, despite the positive mood music on the lifelong loan entitlement, the Government are leaving us hanging on for the detail. I look forward to seeing the specifics in due course, but I would like to outline two broad principles that I hope the Government will keep in mind when they decide this funding scheme, and perhaps they will respond to them today.
First, parity of esteem between further education and higher education cannot be achieved by simply increasing the funding going to further education at the expense of higher education. Colleges and universities working in partnership to deliver pathways that are right for the individual learner is how we achieve their ambitions, not by promoting further competition between these parts of the education and skills sector, as colleges and universities race to secure limited resources. The funding system, along with the regulatory system, across further and higher education needs to promote collaboration and co-operation, not competition. It is also worth stating that meeting our country’s economic aspirations is not just about more people choosing to do higher technical qualifications rather than going to university. It is about making sure that people go on to further education rather than stopping their learning at level 2 or 3. Our main challenge is not too many people going to university, but that too many people finish education too soon.
The cost of fees is only part of the issue when it comes to securing greater numbers of adult learners through further and higher education. We know that mature students are more debt-averse and cost-conscious than maybe school and college leavers. We have seen this in the sharp decline in mature students, following the raising of tuition fees and the ending of maintenance grants in recent years. Alongside the lifelong learning entitlement, the Government need to consider what maintenance and cost of living support can be provided, especially for adult learners who might have to reduce their hours to enable them to work and study part-time, and for a block period of shorter time-intensive courses. Again, I would welcome a response from the Minister on that today.
I quickly turn to the second matter, the OfS. I have grave concerns about the Government’s plan to allow the OfS to set minimum baselines on quality that do not have regard to students’ background, institution type, subject or location. This move seems at odds with the aspiration to level up access to education and training. It could well also have unintended consequences. There is a real risk that universities will be disincentivised from increasing access to further and higher education to those from the most disadvantaged backgrounds and from introducing more flexible modes of study.
I conclude with another word of caution to the Government on the Bill. Where collaboration is already taking place in local areas between many local actors—including colleges, schools, universities, businesses, local government, the NHS, elected mayors and combined authorities, as we have in Greater Manchester—support it to flourish. In my area at the University of Salford, we are already leading a consortium of employees and colleges to develop new technical qualifications to meet local skills needs. The university and college sector has already committed to working together. Where structures are in place for joint working, do not seek to replace them for the sake of it. Work with those places to deepen and enhance those structures, recognising the unique needs, strengths and challenges of individual places.
The Earl of Shrewsbury (Con)
My Lords, I warmly welcome the Bill, which I believe is absolutely key to the recovery of our industrial and commercial base post Covid and post Brexit. I join other noble Lords in congratulating the noble Baroness, Lady Black of Strome, on her maiden speech. I shall be very brief and make just a couple of observations.
Last year, in a debate in your Lordships’ House on the economy, I flagged up the case of an exemplar skills, training and retraining centre: the Marches centre in Bridgnorth, Shropshire. It was experiencing funding issues, and I tried to connect it with government. I was unable to obtain any real sort of response at all from Treasury officials, so I advised the business that I would connect it with the Mayor of the West Midlands, Andy Street. His office was extremely sympathetic, but unfortunately no success was achieved. The training business has survived but in a much reduced way.
It occurs to me that part of that problem was that neither Bridgnorth nor Shropshire and the Welsh Marches benefits from the same level of training and skills education support enjoyed by the large West Midlands conurbations. With this Bill, such a situation must not be allowed to happen.
I have two questions for my noble friend on the Front Bench. How closely are the Skills Ministers and Business Ministers working together to ensure that the Bill is supported and inputted to by business? It is vital that business takes the lead in skills training; it knows exactly what the needs are at the coalface. Secondly, with many training providers facing cash-flow issues due to reduced and considerably leaner numbers from Covid restrictions, what support will those providers be given? Without training providers, the Bill’s deliverables will not be met.
The Bill is an excellent opportunity to provide and enhance the skills of our national workforce, and I welcome it.
Baroness Henig (Lab)
My Lords, I congratulate the noble Baroness, Lady Black, on her outstanding maiden speech, and welcome her to the House of Lords. I know she has made a huge contribution to the higher education sector, most recently and presently at Lancaster University. Her expertise and experience will be of great value in our future debates. I look forward to working with her on this Bill in the forth- coming weeks.
Who could argue with the principal aims of the Bill—to transform post-16 education and training, to boost skills and productivity, to involve employers more closely in course planning and provision, to get more people into work and to launch a new lifetime skills guarantee? What is there not to like? But let me just stop there a minute. We are learning that this Government speak in headlines—ringing headlines that are echoed in the press and social media—but then frequently there is little or no follow-through.
It is important to make it clear that to deliver the transformation that is needed in post-16 provision, a transformation which it is quite clear from the debate so far that we all support, to deliver the objectives of this Bill, we must acknowledge that significant changes are needed, changes to structures, attitudes and funding. On these crucial areas, the Bill is largely silent.
I have been involved in post-16 education in various ways, having served as a governor of an FE and an adult education college. Post-16 education, especially 16-19 education, is incredibly fragmented. There are 11-18 grammar schools, faith schools, 11-18 academies, comprehensives, sixth-form colleges, FE colleges and, very occasionally, tertiary colleges. Perhaps the Minister can confirm that putting employers at the heart of the post-16 skills system relates to their relationship with the local FE college only, but what of the other units providing post-16 education? Will adult education colleges be involved? Will other education providers be drawn into collaboration and, if so, how will this happen?
To be successful, local plans must bring together all schools and colleges in an area, as the noble Baroness, Lady Black, so vividly reminded us in her story about the schools working together with the college in the Lancaster area. Employer groups need to include such major employers as the NHS, local government and local universities. Can the Minister clarify the intentions here because unless there is significant collaboration in local areas across the area, the aims of this Bill will never be achieved?
There is also a huge issue around parity of esteem, and the Minister pointed this out in her opening remarks. Parental choices and student preferences have not changed that much in the past 50 years. Leaving aside public schools—although they cast a long shadow—grammar schools and 11-18 faith schools remain very popular with parents, followed by 11-18 local academies and sixth-form colleges. I regret to tell noble Lords this, but in the local areas that I know well, students are not clamouring to go to the local FE college, even when they want to pursue courses in computer games technology or basic health skills.
I was talking to my 18-year old grandson about this issue recently. He attended a sixth-form college in the north-east. I asked him whether any of his former schoolmates went to the local FE college. His reply was swift and telling: “Only if they couldn’t get in anywhere else.” That showed me that attitudes and perceptions have not changed very much. We all know the problem, dating back to the Education Act 1944, that technical schools and technical education never developed as envisaged, and that in the past two decades all the emphasis has been on getting a university place, not on developing practical technical expertise or getting technical qualifications.
The noble Lord, Lord Baker, has been working incredibly hard in recent years to change this situation, but the difficulties that he has encountered show the magnitude of the problems that we are still facing in this area. It will take great effort and a huge transformation of technical provision throughout the country to change perceptions. It is something that we must do, but it will not be easy, and it requires long-term investment.
The Bill is silent for the most part on funding issues, yet we know that one reason why FE colleges have struggled in recent years and have had to cut courses and narrow curriculums is lack of funding and constant cuts to budget. Post-16 education funding is at present not fair and not rational for all the competing institution. My noble friend Lord Layard pointed this out very clearly.
If the Government mean what they are saying about wanting to improve opportunities and boost skills, particularly among disadvantaged students, they must commit to long-term funding, not just for post-16 FE colleges but in a whole range of social welfare provision, to enable poorer, more disadvantaged and unemployed individuals to access courses, train and retrain and become more skilled.
Among the briefings sent to me for this debate was a sobering statistic that 13 million adults in this country—that is nearly one in four people over 18—lack level 2 qualifications, equivalent to GCSEs. Some 9 million adults lack functional literacy and numeracy skills. The Bill has a lot of heavy lifting to do, and it will need major investment over many years if it is to be more than aspirational. We want it to be successful, and I await the evidence in Committee that the investment will be forthcoming.
Baroness Hollins (CB) [V]
My Lords, I am proud to be a fellow of City Lit, the leading adult education college in the country, which, alongside other institutes of adult learning, works hard to ensure that all adults, whatever their age or stage in life, can receive high-quality education and learning throughout their lives. However, during this stage of recovery from the pandemic, many people may not yet be ready for retraining or reskilling and will need to rebuild their confidence first, for example, people with a lower level of formal skill, those with long Covid or people who have been in the same sector for decades and are still unprepared for a career change.
The Bill introduces a new duty for further education providers to review how well the education or training provided by the institution meets local needs, with new powers for the Secretary of State to intervene where providers are not meeting local needs, as seen through the lens of the needs of local employers. There is also a focus on technical qualifications and on careers in certain sectors at level 3 and above. However, surely the definition of local needs should incorporate a broader range of outcomes, for example, progression into work for students taking non-accredited courses or qualifications below level 3. Indeed, recent Department for Education data has shown that the return on investment for qualifications below level 2 is higher than that for level 3. As my noble friend Lord Bilimoria and others have emphasised, without adequate support for these lower-level qualifications, many students will not be ready and able to take up the level 3 offers which are featured in the Bill. The Government response to a recent consultation on these qualifications is promised later in the year, and I suggest that this consultation will need to be properly considered alongside the provisions in the Bill. I look forward to the Minister’s thoughts on these points.
Education institutions across the country have been impacted by the pandemic but throughout lockdown have continued to deliver high-quality provision by accelerating the development of online courses, retaining many of the strengths of venue-based provisions, such as interaction with tutors and other students, and the ability to draw on learning resources in a range of media. Now that social distancing restrictions are gradually lifting, institutions will look to blend online with in-person provision to offer a range of courses which have greater flexibility than ever before. This is a key time to codesign some of this future provision with local employers and other local stakeholders. However, colleges and providers will be unable to maximise this without an increase in infrastructure, support and investment.
A core purpose of lifelong learning has always been to give people purpose through new experiences and knowledge and by connecting them with other like-minded individuals. We have some amazing institutions that work hard to ensure that everyone is enabled to learn and improve themselves as well as to hold roles within their communities. These institutions provide pastoral support on top of meeting the educational needs of their students. What have I learned during my life about the skills that all citizens need for an uncertain but exciting future, especially during and after a pandemic? First, more traditional approaches to further and higher education are in need of a rethink. In further education there is an aspiration to develop close links between education, business and the cultural and creative sectors. I want to see educational institutions become inclusive places that allow each and every person to find personal fulfilment—places which fully understand the ethical underpinning that enables equality of opportunity, where people can learn from each other, across traditional disciplines, learning to fuse arts, science and humanities to enrich them all. If we do not support the next generation to do this, we will be failing them.
To me, the pandemic launched a cultural revolution which has left some people feeling out of their depth and others thriving because of the resilience and adaptability for which their life experiences and education to date has prepared them. We can learn from their differing experiences. It is becoming clearer that being a digitally competent and confident communicator who is able to work anywhere and manage one’s own time is more important than being a compliant worker who clocks in and out on time. Being able to balance one’s work and personal life is critical too. Some people have perhaps not developed emotionally and in other ways that enable them to manage these boundaries well enough.
We need to be careful not to put all learners in one box, which the Bill and White Paper are at risk of doing. My own interest is to make sure that adults with learning disabilities are not left behind, and that this future strategy ensures that individuals who need high-quality education but may experience significant barriers to accessing it are better catered for. Institutions such as City Lit, offering world-leading provision for adults with learning disabilities, the deaf community and people who stammer or struggle with communication issues, must be able to continue this invaluable work. As we consider the Bill, let us ensure that no one is left out.
Lord Jones (Lab) [V]
I congratulate the noble Baroness, Lady Black, on her speech.
Over half a century in Westminster’s Houses, I have seen countless Bills, presented by successive Governments— Bill after Bill—and today we have the noble Baroness’s Bill. Britain is still striving to find the holy grail of skills and it is truly a worthy, welcome and urgent objective. One recollects the embattled Chancellor Denis Healey exhorting Britain’s manufacturing companies to drive down unit costs. Today’s Chancellor, Mr Sunak, urges British industry to raise its productivity—not much change over 45 years as Britain struggles to hold on to her manufacturing base.
The Federal Republic of Germany is a mighty industrial presence in Europe, a formidable competitor, a huge exporter, and renowned for engineering skills. Did not Chancellor Bismarck forge a lasting technical skills template in the 19th century? How can we persuade more school leavers to compete to take up apprenticeships? How can we persuade more young women to enter this crucial field? Female entry is woefully low but a successful apprentice in our blue-chip companies might find that the world is her oyster. In the Times the noble Lord, Lord Baker, revealed that the big engineering, motor and aircraft companies pay their apprentices salaries of £12,000 to £20,000 per year, and some even more.
Does the Minister agree that parents of high-school leavers should be told formally and in a timely fashion about these salaries, prospects and activities? Should not head teachers encourage their students to apply for apprenticeships in the most positive manner, as a priority? Do we envisage in the future school tables for apprenticeships gained? It is far-fetched, perhaps, but how better to spur matters forward for the national future?
Ultimately, so much depends upon the head teacher. Today, young women are storming the rugby pitches, soccer fields, cricket squares and the boxing ring. A far better place might be the aerospace shop floor where excellent apprenticeships lead to salaries of £25,000 per year and much more, consequent upon qualification, bonus and shift work. Overall, the modern shop floor is spotlessly clean, well policed by health and safety and complete with pension and holiday. The current industrial playbook demands high-quality housekeeping in today’s factory environment. Rolls-Royce, Nissan, Tata and Airbus all have close, local links with their adjacent FE colleges.
Take, for instance Airbus—the register refers to my interests—which furnishes a splendid example in north-east Wales, my homeland and one-time constituency. It is a 6,000-strong establishment of world-class skills, a reservoir of unbeatable technical prowess and the equal of any comparable factory in the world. It makes the wings that fly the unsurpassed Airbus fleet. Each year a large cohort of able apprentices enter mainstream production. This company earns many billions in exports for Britain and has outstripped its mighty competitor, Boeing. It is the jewel in the crown of Welsh industry and the foundation of its famed advance is leadership, fine apprenticeships, FE and business collaboration, and skills excellence.
The FE college in this renowned mix is Coleg Cambria, which is near the factory runway. It has British awards and competition wins aplenty. The paramount requirement in post-16 education is always the leadership skill of the principal, the CEO. This establishment had fine leadership from Wil Edmunds OBE and David Jones OBE. These able professionals always liaised with head of plant, the professional acknowledged throughout Europe, Mr Paul McKinlay—a brilliant leader. The business world of north-east Wales is the customer for skills. Skills training fails if the business world is shut out. I am keenly aware that unions make up this global and local success in aerospace.
To conclude, in the helpful Explanatory Notes in annexe A on page 23 on provision, there is reference to
“the competence of the Senedd”.
Will the Minister expand on this? How and when was there consultation on the Bill with Senedd Ministers and officials? There may not be time for the Minister to answer; if so, will she please write on the points I have raised?
Lord Lucas (Con) [V]
My Lords, I declare an interest as a council member of City & Guilds. I am very much looking forward to Committee. It has been a pretty challenging Second Reading so far and I am confident that we can do some things to improve this Bill. My own suggestion will be that we should broaden the definition of outcomes in Clause 17 to cover mental health in higher education.
Going into HE is a huge step change for most children. In JCB’s apprenticeships provision, which is pretty remote and therefore provides the facilities a university might, it goes to immense lengths to look after the mental and general well-being of their apprentices. To my mind, universities fall well short of that standard.
When I tried a few years ago to see whether it might be possible to persuade universities to rely more on teacher recommendations to pick out students who were underperforming for reasons of background but might turn out to be extremely good students none the less, they said that they could not do that as they never got to know their students well enough over the course of three years to evaluate whether the teacher recommendations had been accurate enough.
Universities can be lonely, frightening, isolating places. The NHS mental health provision can take some long while to catch up with the move from home to university. I am sure that many of us have stories of friends or relations who have had a mental health crisis at university. In my case, a colleague of mine had a son at a Russell Group university, who happened to be on a course where there did not seem to be much social life revolving around it. He was going back to his student accommodation, where there was not a lot of social life, and it was a chance telephone call from a fairly distant university friend to this child’s mother that prevented the suicide.
It really is not acceptable these days that we allow these sorts of things to go on, when we know they are happening and we know we can do something about it. Universities can and should come up to speed. I do not think that we should find ourselves in a situation where we are giving universities a bad mark—it is something that they can all do well enough and come up to speed on, given a bit of oversight, so that they know they will be watched on it and that this is something they have to do. Clause 17 gives us an opportunity to make some serious progress in this area.
On local skills, I am very much in the same camp as my noble friend Lord Willetts. This is a matter of our children, not just businesses; it is not just the interests of the businesses that matter but what our children are and could become. It is ridiculous to imagine that all children in Eastbourne, where I live, are destined to become either waiters or brickies. I am sure that there are just as many musicians, programmers and engineers in our cohort as there are in the middle of some well-provided city. We are a town of 100,000 people, with no academic state sixth-form provision. It would be very sad if that same attitude of provision was to be extended to vocational education as well.
There is a big role in this area for a national input on skills, on what is needed and on where the jobs are going to come from over the next 20 years. Not all employer groups have good coverage of industries, good skills and good cohesion; not all know what they need in a changing world. We have to support the local structures that we are going to build with a very strong understanding of what is happening in the world outside, and therefore an understanding of how to support those of our children whose destinies are not to work in the local economy.
In that context, I very much hope, along with the noble Lord, Lord Bilimoria, that we will do something serious about careers information, advice and guidance. There is an opportunity in this Bill to embed that in a structure that can truly nurture it, to build on the current but much divided successful institutions and provide something that will be part of someone’s lifelong education, which they can turn to whenever they need, and to build on a flexible and modular education that they will receive. Perhaps it will move out of schools, where it really struggles, and into the world of FE, making it much easier for people to obtain the information that they need when they think that they want to change a career.
Lord Parekh (Lab) [V]
My Lords, the problem that the Bill addresses has been with us for a very long time. Our education system has long been guided by a single model of human excellence: you start your education in a school and keep progressing until you get to a university degree. If you are smart enough and have the resources and inclination, you might do post- graduate work and end your education with a doctorate. But that is not important; what is important is that you must have a university degree—you must be certified by the university to have acquired a certain body of knowledge and skills. If you are not good enough to go to university, what do you do? You turn to technical education, to the polytechnic, and if you cannot make that, you walk out of the education system altogether.
In short, there has been a deep divide between university and technical education, between higher and further education, and between successfully negotiating the obstacles to higher education and failing to do so. This divide has had some profound consequences for our society and economy. Since university education is the only marker of success and the basis of individuals’ self-respect, everyone wants to go for it, with the result that there is inflation in the pursuit of degrees. Secondly, just as a GP thinks of himself as a failed consultant, the person who fails to make it to university thinks of himself as a failed university graduate. This leads to a tremendous amount of bitterness and sadness, and a lack of self-worth on the part of the individual. The system also means that practical intelligence, being good with one’s hands and mechanical skills are treated as inferior and not valued at all.
Obviously, there is no movement from university to technical education; they are parallel universes and you are confined to one or the other. This has been our problem for the last 150 years. Various attempts have been made to tackle the problem; this Bill is a very sincere and profound attempt to do so. It has some very good ideas—I do not need to spell them out—and the idea that individuals who are interested in higher education would have lifelong access to resources is one that levels up opportunities and is to be greatly welcomed.
Before ending, I want very briefly to point out three or four limitations of the Bill, and I very much hope that the Minister will take account of them. First, it concentrates on technical education and treats it as wholly separate from university education. As in the present system, there is no movement from one to the other; each is encapsulated in its own little stream.
Secondly, and this worries me even more than the first point, technical education is seen and justified almost entirely in instrumental terms. There are skills that a society or region needs, and the question is how you persuade students to go for those skills. What is now suggested, therefore, is a kind of industrial fodder—like parliamentary fodder perhaps, but in the case of industrial fodder students will become not so much respectable individuals trained in the art of thinking for themselves but rather individuals who are masters of certain skills, which they are able to sell.
This has a very important consequence, which I must emphasise, on the regional or local orientation of the education system. Each locality, area or region must indicate its employment needs, but how is this to be done? By employer representative bodies providing a list of skills. That, in my view, is to give employers an enormous amount of power and influence. They will suggest which skills are to be produced, and we know what the limitations of that will be. They are not democratically elected, and so the result will be that you create almost a kind of corporate state, where the state works hand in glove with large employer organisations. I fear the consequences of that.
Finally, in order to execute a system of this kind, the state obviously has a tendency to become heavily bureaucratic. This is one noteworthy feature of the Bill that many of your Lordships has pointed out. It gives the Secretary of State the power to indicate which employer representative bodies to recognise and which to withdraw recognition from, and to ask whether the sector is functioning properly and which provider institutions are not satisfactorily run. Again, this gives the state an enormous amount of power in the field of education, the like of which we have not seen in this country before—not even under Mrs Thatcher. So, while the objectives are valuable, I very much hope that the means to realise them will be just as civilised and humane.
Lord Aberdare (CB)
My Lords, I, too, strongly welcome this important Bill. Skills are fundamental to our future well-being both as a nation and as individuals. In order to succeed in an increasingly complex, competitive, technologically driven, net zero-targeting world, we need the right skills in the right places for the right people at the right time. The Bill includes many proposals to enable that. Most of what I wanted to say has been more eloquently expressed by other noble Lords, so I will confine myself to questions in three areas that I believe may need some further thought, relating to small businesses, independent training providers and careers education.
The Bill rightly focuses on ensuring that skills are relevant to local needs, mainly through local skills improvement plans, created and managed by local partnerships and led by employer representative bodies. The Government play a central role through designating the employer representative body for each local area and then through approving the actual plans. This sounds to me more like a top-down, centrally driven approach than a truly local one.
So how will LSIPs engage smaller businesses, particularly in areas with few major employers, where most employers are small? How will the Government ensure that LSIPs are not dominated by the views of larger, better-resourced employers in determining local skills needs and allocating available funding? How will LSIPs build on and work with existing local partnerships, such as LEPs, careers hubs, skills advisory panels and local digital skills partnerships?
On independent training providers, I have a rather different perspective from my noble friend Lady Wolf, who I am rather relieved to see is no longer in her place. ITPs provide a substantial proportion of skills training, including in the great majority of apprenticeships and traineeships. They are an essential and valuable part of the system. Many are small, but they bring much-needed responsiveness, innovation and competition to the skills training marketplace. Yet the Bill seems focused on constraining them through requirements to meet potentially onerous conditions for inclusion in the list of relevant providers.
Before joining noble Lords, I ran a small independent business providing employability training for young Londoners. Our work was commissioned by bodies such as the former London Development Agency, Barnardo’s, Nacro, schools, colleges and local authorities. These provided stringent supervision and oversight. But, as a small business focused on service delivery, we would have struggled to meet the sorts of conditions suggested in the Bill—for example, for insurance cover against possible cessation of training. Such a sledge- hammer approach risks penalising all ITPs for the failings of a few.
So how will independent training providers be more positively engaged in the development and delivery of local skills improvement plans? Will the Minister commit to ensuring full consultation before details of the register of training providers and of the conditions ITPs have to meet are finalised?
Many noble Lords have emphasised the importance of impartial, independent, expert and personal information, advice and guidance, including the noble Lord, Lord Lucas, just now. Careers education and guidance have improved significantly in recent years, helped by the careers strategy launched in 2017, which ended last year. But there is still some way to go to ensure that everyone has access to high-quality careers advice, that its provision covers all ages and circumstances and that it is provided by well-trained, highly qualified professionals with an understanding of the skills scene, both locally and nationally, including pathways for acquiring skills in areas such as creativity—as we heard from the noble Lord, Lord Puttnam—and entrepreneurship, which we have heard rather less about. Yet the Bill makes no reference at all to careers information and guidance.
Will the Government consider including a right to professional careers guidance as part of the lifetime skills guarantee? Will the provision of good careers education be made a formal requirement for colleges to achieve high Ofsted ratings? Finally, will the Minister commit to producing an updated careers strategy to support the aims of the Bill, including the extension of career hubs to cover the entire country?
I support many other suggestions made by noble Lords, including the desire to see the Baker clause given statutory force and a more flexible apprenticeship levy. I fervently hope that the Bill, when it leaves this House, will be even better crafted to create the skills system we so badly need. I like the description of the Bill by the noble Lord, Lord Johnson, as a “down- payment”. Will the Government complement it with a comprehensive, overarching, cross-departmental, long-term education and skills strategy, so that the Bill will prove to be much more than just another of the regular reorganisations of our education and training furniture that have so signally failed to deliver in the past?
As my new noble friend Lady Black of Strome suggested in her splendid maiden speech, we need to create an education ecosystem that brings together the talents and energy of all participants in delivering the skills we need, including SMEs, ITPs and careers professionals.
Baroness Stroud (Con) [V]
My Lords, I speak today to add my support for this Bill and to congratulate the noble Baroness, Lady Black, on her maiden speech. The United Kingdom stands at a reset moment. It has delivered on the vote for Brexit, is forging a new trading relationship with our European allies and is charting a course towards global Britain. While the UK was among the hardest hit by Covid-19, it is now finding a way out of the global pandemic, emerging as a world leader in the design, development and distribution of effective vaccines. But if we are to make the most of this reset moment, we will need to unlock the talent, prosperity and potential of our regions, communities and people. In order to do this, there needs to be a real focus on developing the skills required not only for a 21st-century skills revolution but to create the economic powerhouse that will drive the United Kingdom forward. We will need every element of British talent.
In many ways, the UK is well positioned to do just this. We are one of the most prosperous countries in the world, with an open and vibrant economy. Our national institutions are robust and our people are among the most educated in the world. But there are also clear challenges. While levels of prosperity in the UK remain much higher than other nations and increased further during the first half of the 2010s, in more recent years this prosperity has been stagnating. One of the key drivers of this stagnation has been declining enterprise conditions, including skills shortages and barriers to doing business. England, for example, has three times more low-skilled people among those aged 16 to 19 than the best-performing countries such as Finland, Japan, Korea and the Netherlands. In many ways, this was less visible while we had unrestricted immigration. But now that we can feel the impact of more controlled migration, we can see the need to really focus on upskilling our own people. This is a good thing, and one that we should hugely welcome.
So why is this Bill so welcome, and why has our existing approach to skills development simply been insufficient? For the past 20 years, the UK poverty rate has shimmied at around 20% of the population. In the Labour years, just about every income transfer that could be thrown at this challenge was thrown, and the level still shimmied at or around 20%. In the coalition days, just about every employment intervention was thrown at this challenge, and the level still shimmied at or around 20%. If we have learnt anything in the past 20 years, it is that we cannot solve poverty through income transfer alone, or through supporting people into low-paid work alone.
The poverty data shows that if you are on the national living wage, it takes all adults in a household working full-time to lift a family out of poverty. Even then, 10% of such households are still in poverty. These families cannot work any more hours. They need to increase the value of each hour they work. To do this requires increased skills.
The way to ensure that families who are doing everything right are out of poverty is to invest in their skill level and enable them to be able to earn more for each hour they work. This Bill is therefore hugely important as part of an anti-poverty strategy, but to actually level up requires us to develop those with the lowest levels of skills at a faster rate even than those who are already skilled. This will require opportunity, so there is one area where I would specifically like to probe a little on this matter.
The current welfare system is not really designed as a support mechanism for those on low incomes to upskill. It is designed as an anti-poverty tool and to support people as they transition into work and up their hours. So I ask my noble friend the Minister: what changes are the Government considering to universal credit conditionality to support their excellent approach to skills development?
But this Bill is important not only as an anti-poverty tool; it is also hugely important for employers. Many businesses report a deterioration of local conditions for enterprise, including skills shortages and barriers to doing business. Assessments of adult skills generally point to skills mismatches and many employers report that a lack of skilled workers is a major and increasing bottleneck for their operations, affecting their capacity to innovate. On average, 26% of vacancies are generated by skills shortages within businesses. This is as high as 36% in, say, the south-east. Across a range of sectors, there is a growing employer demand for the skills that higher technical education provides.
The White Paper highlights the need for technicians, engineers and health and social care professionals to meet the many vital challenges we face as a society. Investing in these skills at both a local and a national level is critical to improving our productivity and international competitiveness. Our skills system has been very efficient at producing graduates but has been less able to help people get the quality technical skills that employers want. A stat that we have heard quoted today is that 4% of young people achieve a qualification at higher technical level by the age of 25, compared with the 33% who get a degree or above. Just imagine if we could have a society where 33% achieve higher technical level qualifications as well as 33% getting a degree.
I am delighted to be supporting a Bill that will enable people to invest in their ability to earn more for each hour they work, that will enable employers to develop their businesses using the incredible talents of the British people and that will enable us to compete on the world stage at this critical moment of transition for us as a nation.
Lord Rooker (Lab) [V]
My Lords, I agree very much with a lot of what the noble Baroness, Lady Stroud, has just said. But I shall be listening to the Minister respond—I hope—to the questions from the noble Lords, Lord Willetts and Lord Puttnam, and to the point that the noble Lord, Lord Layard, made about the cuts.
Of course, I must welcome what was—no doubt about it—an awesome maiden speech from the noble Baroness, Lady Black of Strome. I fully admit that I had read about her in the past and was in awe of what she was doing and what she had achieved. Her speech was absolutely magnificent.
First, I declare my interests—no, let us do the Lords’ interests. At present, there are about a dozen ex or current university vice-chancellors in the Lords and, last time I checked, over 40 university chancellors. I am unaware of any leader or ex-leader of further education being in the Lords. The noble Lord, Lord Layard, made the point about the cuts to FE. If that had happened in higher education, there were 40 chancellors waiting in the Lords to pounce on Ministers.
In 12 years in government, in several departments, I never met a civil servant who had further education experience and, as far as I am aware, no one in the Cabinet has been through further education. It is a bold claim, of course, but I doubt that many Members of the House have had actual FE experience as a student—and as for the Commons, such experience today would be a rarity. This makes the Bill even more important. It is concerned with important aspects of life that policymakers and lawmakers have no hands-on experience of. Those are not quite the criteria to get it right.
I left secondary technical school in 1957. There were two such 13-plus schools in Birmingham, one specialising in engineering at Handsworth and the other in Bournville specialising in construction. It is amazing: these are of course two of the sectors where there are skills gaps existing now that this Bill is supposed to address, but there were only ever two technical schools in Birmingham. I did three years day release in further education while I was doing my indentured apprenticeship for a mechanical engineering Ordinary National Certificate, and two nights a week to get my endorsements in electrical and English—although I suspect I never really made it in the latter.
In the FE college at the time, there was abundant adult education, as there was in some secondary schools. For many years in the period 1972 to 1997, I served on the board of an FE college, so I was aware at first hand of the changes from pure technical skill to a more comprehensive range of courses, and the change from local authority control. I think our first action on the board, post local authority, was to change the name of the college so that people knew where it was. This was far more important than it sounds, by the way, from a marketing point of view.
In some ways, I missed the phase where colleges became more competitive and aggressive, and indeed remote from their communities—although I was shocked, when taking over from my friend the late Lord Corbett of Castle Vale as chair of the local community organisation, by the negative approach of a city centre further education college to a campus at Castle Vale. That was caused purely by remoteness.
I freely admit I am now more out of date, but I want the Government to succeed in this endeavour for the good of the country—as the noble Lord, Lord Puttnam, said, this is not a political Bill. But I fear a further narrowing of the existing provision and curriculum. It appears the educator voice is missing, which cannot be a surprise given my introductory remarks, and there is clearly no accountability to communities. I am not, however, fearful of employer involvement in courses. This was very strongly the case in the 1950s and 1970s, but employers are not the same. Today they are more “here today, gone tomorrow” than in the days before our deindustrialisation. Some strategic stability is required and therefore a partnership with educators is vital—and I have to say that I think this should include professional organisations such as the chartered institutions. I do not think anybody has referred to those today. They were crucial in FE, in awarding certificates, along with the old Ministry of Education.
The range of courses has got utterly out of control due to the market. But we need to be careful about classifying qualifications that have so-called “low economic value” and therefore restricting choice and flexibility. Low economic value to one can be the salvation for another new enterprise or product. We have an unequal nation where levelling up is not I hope intended to make us all the same, but we need to ensure that the Bill works for more diverse, non-traditional cohorts of students.
Further education, unlike higher education—I have a mixed experience of a sandwich course at a college of advanced technology and then, after a 10-year gap, post-graduate work—can be more transformative. It can help build the alert democracy and support the aspirations of all, going well beyond skills preparation for jobs. For some, it may be the only route to any qualifications they ever obtain, but there needs to be LA involvement, maybe through the mayors. We ignore our local capacity at our peril. Indeed, I once read that a nation’s greatest asset was the capacity and willingness of its people to work. This Bill must improve our human asset base.
Baroness Bennett of Manor Castle (GP)
My Lords, following on from the noble Lord, Lord Rooker, I feel I should declare my FE experience, which was shorthand at Wagga Wagga College in Australia and a very brief, and perhaps best glossed over, experience of farm mechanics a long time ago.
I will start with some older history, however: human history, or rather prehistory. Some 400,000 years ago, in the East African Rift Valley, the human species faced a huge threat: a massive ecological change. The very foundations of their world had shifted. Archaeological evidence shows that those ancient humans—individuals just like you and me—developed new skills and technology, and used their creativity to develop new forms of communication, all remarkably quickly. That is an account drawn from a major study in the journal Science Advances, published last year. I hope your Lordships’ House will see the parallels with what we face today.
We face a climate emergency, the state of our nature is dire and our current growth-driven economic model has left us in a crisis of poverty and inequality. Massive change is needed—yet, for all the Bill’s talk of the future and the need for transition, neither it nor the policy summary make any mention of climate or nature. There is only a brief mention of them in the impact assessment. Your Lordships’ House has found itself in this situation with multiple recent Bills, and other Bills have left here only after the addition of at least some reference to climate and nature. I hope that we can do that again. As the country that is the chair of COP, with a Government who like to attach the words “world leading” to “green”, it is quite astonishing that we should find ourselves in this position again.
I point noble Lords to the excellent Peers for the Planet briefing on these issues, which goes into far greater depth than I have time to do today. However, I will tick off some points. First, the global economy has to be green, and, even in the Government’s own terms, there is a significant competitive advantage in enabling UK workers to upskill in green areas. Secondly, the Government have, or are promising, a whole range of sector-specific strategies, but we see no sign of how these will be joined up with the local skills improvement plans. Thirdly, we get from the Government a very narrow idea of what future skills are needed—there seem to be a lot of hard hats involved and, of course, the ubiquitous digital skills. Of course we need a huge amount of improvement in those areas, but equally urgent are skills in sustainable land management, nature-based solutions and ecosystem management—hard-toed boots perhaps, but caked in healthy life-rich soil rather than hard concrete. Fourthly, we see no way in which the Bill feeds into the need for a just transition for individuals and communities, as the noble Baroness, Lady Sheehan, powerfully illuminated.
Young people are demanding that their education include far more information about climate and sustainability. They understand that it is central to every part of their future life—so why are the Government not able to consider this in every part of education in our society? The sustainable development goals to which the Government signed up and the systems thinking that underlies them should be in every part and level of education.
That brings me to some points about what is in the Bill. I begin with the expert remarks of the noble Baroness, Lady Wilcox of Newport. I would associate myself with everything that she said but focus particularly on one point: she said that the local skills improvement plans need to be coproduced by communities, politicians, educators, students and businesses. From the Government, we are hearing very much a sole focus on business, and we know that the loud business voices are likely to be the big ones, which are not the major part of our economy. As the excellent University and College Union briefing on this Bill notes, the educator voice is missing from the Government’s plans. I want to focus on and extend the noble Baroness’s point about students, for if students are not at the heart of designing courses, they are unlikely to meet their needs, not just for a narrow set of technical competencies but for life in a fast-transforming world.
We now come to the big issue: what is education for? The majority of today’s speakers have focused on employment, but we all need lifelong learning and continuing education in varying forms and fitting various places in the Government’s classifications, from level 2 upwards. We need to function in society as community members, voters, parents and, as the noble Baroness, Lady Verma, noted, users of the financial sector. In a society with an epidemic of mental ill-health, we should not underplay the value of learning new skills, finding new places in society for public health, as the noble Lord, Lord Bilimoria, noted.
The Minister said in her introduction that 34% of working-age graduates are not in high-skilled employment. I really hope she will acknowledge that that does not mean they are not using the skills they obtained from that education. Employment is not the only place those skills are needed. That is where I find myself, considerably to my surprise, in agreement with the noble Lords, Lord Willetts and Lord Johnson. Setting further and higher education against each other, even in opposition to each other, and suggesting that funding should not be available to those with higher qualifications for so-called lower-level courses further hardens what is already an extraordinarily hierarchical system.
I fear that the Minister, in response, may say I am drawing the brush too widely, that these are matters for other Bills and other days. I go back to the first words of the Bill:
“A Bill to make provision about local skills improvement plans; to make provision relating to further education”.
Education is not and cannot be just about jobs or serving the economy.
Lord Triesman (Lab) [V]
My Lords, I declare my interests as a board member of the Capital City College Group and chair of the advisory board of Learning Development Training, a private further and higher education provider. It is a pleasure to follow the noble Baroness, Lady Bennett, who raised some important issues. I add my congratulations to the noble Baroness, Lady Black, and look forward to hearing more about her life.
FE and skills were described by the Minister, and many others, as a Cinderella service in education. However, Cinderella did actually get to the ball: FE rarely has. This is not new; we have a record of neglect. In his history of the loss of British influence, Corelli Barnett set out a two-centuries’ long failure to foster a coherent skills base, which equipped us so poorly as an industrial power before each world war and then again afterwards. Yet we routinely say that the Government must do better, and despite efforts in FE and some exceptional colleges—I pick just one, Bridgwater & Taunton College—the Government themselves routinely do no better. This legislation is a major opportunity for more than 2.2 million students per year currently to develop career opportunities. I welcome that, but the devil is in the detail.
The noble Baroness, Lady Wilcox, set out an extensive set of details we will need to amend, especially given the extent of cuts in recent years. The Bill faces a world of profound social and cultural change. Work is restructuring and sometimes vanishing at an unprecedented rate. AI will accelerate the change. Personal and group identities and aspirations are changing, and I believe there is a concomitant acceleration of social fragmentation. Access to information and knowledge is unparalleled, and with changing technologies has come a growth in personal demand for choice—an insistence on personal choice which will not be amenable to strict direction.
The world of skills providers is no longer the traditional rationalist, calculative, instrumental and depersonalised one. It still demands expertise, not least because of its complexity, but it is now more characterised by being networked, information-based, personal, risky and often post industrial. There is a demand for new competences, the capability to withstand more competition, to deal with faster technical and environmental change and to know that there are no jobs for life. They flow from the structural changes in industry and occupations, and all these changes in the nature of workplaces, work/life balance, and the dreadful fact that some households have people now in the third generation of unemployment —truly left behind—pose a great challenge. This must surely focus us on enabling personal aspiration wherever the aspiration can be met in the UK.
The Bill has to achieve vital goals. First, it must overcome chronic poor productivity against the background I have tried to describe. It must ensure high skill levels are achieved and geographically distributed, but allow for enhanced personal mobility. That means far more lifelong learning and far better literacy and numeracy. Raising skills would drive the UK to being a high-supply, high-demand economy and away from low productivity but, if it is to succeed, the financial support of students must be far more explicit than it is in the Bill, especially up to level 3 and as people change career course.
Secondly, the Bill has to respond to the need for work readiness. The better the qualifications of students, the better employers say their applicants are prepared. It is right to focus on employability, but experience shows that employers are not always expert at reading the runes about the future rather than identifying their immediate needs. If the Bill is to succeed, there will need to be serious consultations about developments in business demand. With the best will in the world, that cannot rely exclusively on employers. There is a significant role for government industrial strategy, for skills advisory councils and certainly for individual students.
Next, a third of adults engage in no formal learning whatever after leaving school, yet they live in a world which is changing rapidly and constantly, so the Bill must address the motivational barriers from early learning onwards. This is not just a matter for colleges, sixth-form colleges or indeed the many entities in this space. They need to work collaboratively; it is a whole-society issue. It is fundamentally an issue of economic and social resilience for the United Kingdom, and we must learn the lessons of the last couple of years. Perhaps our most valuable asset is our ability to co-operate.
Finally, a simple switch between university and skills funding, as several noble Lords have said, is surely misconceived. To prosper in a world of rapid technological change and innovation, and with the growing importance of creativity, including the arts, in our economy, it is essential to develop people who can work through the challenges of fundamental rethinking. A significant proportion will have to be able to deal in conceptual analysis, and this has been a central example of progress in history. Professor Robert Reich’s huge influence on boosting the competitiveness of the United States economy was built on this thought. In short, higher education provides the necessary condition for education-led prosperity, as it is also a wide basis for vocational qualification. Yet we must also meet the needs of the sufficient conditions, and that is where the skills agenda and this Bill can be transformative. This is the foundation of meaningful parity of esteem. Let us not embark on a turf war between HE and FE funding—that can never help. We, and the Bill, will be tested on the promotion of an all-through co-operation, not on robbing Peter to pay Paul.
Baroness Young of Old Scone (Lab) [V]
My Lords, I declare my interest as chairman of the Royal Veterinary College and former chancellor of Cranfield University and my various environmental interests. It is really great to be number 50 on a speakers’ list; everything that could be said has been said, but unfortunately I have not yet said it, so I will try to be brief.
I welcome the Bill in principle for its provisions on technical skills education and lifelong learning opportunities for all, but it misses a real opportunity that has already been raised by a number of Peers. The twin challenges of climate change and biodiversity decline are the biggest existential threats globally; the Bill needs to respond to that and to take an ambitious approach to developing the wide range of skills to meet our global climate and nature goals and to exploit new UK and global markets and jobs that these goals are already creating.
We need to move to a prosperous zero-carbon economy and society with the help of the Bill. It should be a catalyst for building the wider public understanding and behavioural change fundamental to meeting net zero and reversing biodiversity loss, such as in the case of those challenges driven by our rising consumption across the globe. This is not just my view—businesses, educators and learners have all expressed their views and provided strong evidence that climate and sustainability considerations need to be embedded into our post-16 framework.
Local skills improvement plans have been raised by many noble Lords; they must not just be driven by local employers but take account of government priorities and strategies, such as the industrial decarbonisation strategy, the energy White Paper, the nature strategy and the heating and building strategies. This Government appear to have quite a lot of strategies. With skills for nature-based solutions, ecosystem management, drainage and even tree planting, we will need to think of the future. A child starting school this summer will leave in 2035 and will move into labour markets that will be largely zero carbon. The Bill also needs to offer support to workers transitioning out of high-carbon sectors or intensive agriculture who already possess level 3 qualifications but will not be able to access the lifelong loan entitlement. That needs to be changed.
Along with many other noble Lords, I want to voice my comments about the mood music around higher and further education at the moment, which might well impact on this Bill and on post-16 education. I agree with the noble Lords, Lord Willetts and Lord Johnson, that there should not be a false conflict between further and higher education; they should work in collaboration and not compete for resources. Ensuring parity of esteem is important, but it should be by investing in further education, not by taking funds away from higher education and levelling down.
At times, the Government are almost hostile to higher education, with the result that courses are being judged on student outcomes defined partly by getting degree-level jobs, whatever they are, and earning appropriate incomes. It seems to be obligatory at this point to declare your education, so here I go: I have an MA in Classics from Edinburgh University, a highly relevant degree, but not exactly job orientated in some people’s views. For reasons best known to myself and a complete mystery to my mother, I took a job as a secretary for two years post graduation, which would have screwed up Edinburgh’s outcome measures, had they existed 50 years ago.
I believe that we need careful scrutiny of Clause 17 on quality assessment for higher education. Metrics of quality need to take account of contextual factors, if they are not to jeopardise widening access for the less advantaged. They must take account of how students define their success and the flexibility that they will need in the fast-changing job market.
Baroness Garden of Frognal (LD)
My Lords, this has been an extraordinarily wide-ranging debate. I thank the Minister for her co-operation and for having meetings with us beforehand. I add my congratulations to the noble Baroness, Lady Black, on a brilliant maiden speech. I noticed all the Lancaster connections, with the noble Lord, Lord Liddle, and the noble Baroness, Lady Henig, being Lancastrians; my daughter and her husband met at Lancaster 30 years ago, so it has fond memories for me too. I hope we shall hear much more from her in the future, whether it is on the living or the dead.
Given all the very many briefings we have received from far and wide, I start by asking the Minister what discussions the Bill team had with stakeholders before drafting the Bill. Did they take advice from the Association of Colleges, the Open University, City & Guilds—I declare my interest as a vice-president, having worked there for 20 years—or from the Federation of Awarding Bodies, which held a discussion this morning that threw up some interesting questions that I had not thought of, or from independent training providers? We heard from the noble Lords, Lord Bichard and Lord Aberdare, about the importance of independent training providers, and other awarding organisations. If so, did the Government take their advice or, given all the amendments that we seem to be throwing up, did they proceed without reference to those whose professional lives have been devoted to skills, colleges and adult education?
I am also involved in the Professional Qualifications Bill, where the Minister keeps telling us he will “assuage” us, as he attempts to convince the Committee that all is well with that Bill. Will the Minister hope to “assuage” us this afternoon, I wonder?
Of course, we are all delighted to have a skills Bill; as we know, skills and further education are too often overlooked. Like the noble Lord, Lord Rooker, I blame it in part on the fact that almost all officials and politicians have gone the university route. They have had little or no contact with work-based, vocational qualifications, nor indeed with further education, as they have followed the gilded path of academia, often regarding trade, if they regard it at all, as another less privileged world. How wonderful that the noble Baroness, Lady Stowell, is a shining example of how very mistaken that view is.
The growth in apprenticeships is beginning to erode the divide and curiously, one outcome of Covid may be that university experience with no face-to-face teaching, socialising or drunken raves may be looking less inviting to the young school leavers. So we approach this Bill with high hopes and expectations but, having read the myriad briefs, those hopes and expectations are not as high as they might be.
If I am one of the winders, I like to namecheck, but I am afraid I will have to apologise this time. I have listened to everyone, including when I was doing my duty on the Woolsack—I am quite capable of multitasking —but time will not permit me to acknowledge all the insightful contributions we have heard today.
I am sorry the noble Lord, Lord Johnson, is not in his place. I welcomed his piece in yesterday’s Times, with his well-reasoned arguments for abandoning the ELQ rules whereby you cannot get funding for studying for an equivalent or lower-level qualification than one you already possess, even in a completely different subject area and when it could open doors to other employments. I hope the Government will look at this again, because it really is very detrimental.
We welcome the lifelong learning entitlement, although we Liberal Democrats regret that it is in the form of a loan. We heard the reasons why from both the noble Lord, Lord Willetts, and the noble Baroness, Lady Wyld. Many adults will be reluctant to incur debt when, mid-life, they have responsibilities to families, so pursuing their own improvement could seem selfish. We wish to see this as a grant, a skills wallet, which we are sure would pay for itself as the recipient’s earning power and self-esteem increase.
Like the noble Baroness, Lady Wilcox, and the noble Lord, Lord Bilimoria, we are also anxious not to lose sight of the value of levels 1, 2 and 3 qualifications. Level 1 can often be the stepping stone for those who have never passed any exams to gain new confidence and the desire to continue to learn. We saw this many times with NVQs at level 1, derided by the snobbish press as “not very qualified”. Actually, they applied that to all the NVQs, which just shows how ignorant and prejudiced some journalists can be. At City & Guilds we saw non-learners grow in stature when awarded a national qualification—a national certificate—and given a real incentive to continue. The Minister says that they do not feature in this legislation because they are catered for elsewhere. Perhaps she could clarify that.
All the questions I would have asked have, of course, by now already been asked—just not by me, as the noble Baroness, Lady Young of Old Scone, said. I will concentrate on a handful of areas in which we would really like to hear the Minister’s reply and hope to be assuaged. The first is the relationship between Ofqual and IfATE, which has already been raised. The Minister said this would be collaborative. Will it be collaborative? Will it duplicate? Will it make things much more complex? The fear is that these two organisations will make the situation more complex.
The noble Lord, Lord Baker, talked passionately about enforcing the Baker clause. When the technical education Bill was going through, this was the only amendment the Government accepted. Of course, it was a Conservative amendment. All our brilliant Liberal Democrat amendments got thrown out. Then an election was called so we were not even able to have ping-pong. The Baker clause is a very valuable thing whereby people have to go into schools, at an early enough stage that the youngsters still have decisions to make, to tell them about UTCs, colleges and all the other possibilities.
This leads us on to the whole business of careers information and guidance, which a great number of noble Lords brought up, including the noble Lords, Lord Knight and Lord Lucas, and my noble friend Lord Stunell in connection with the construction industry particularly. It is vital that young people are shown the possibilities at a very early stage. There is evidence that youngsters at the age of six or seven have already gender-stereotyped particular jobs. This is not good for them, the economy or anybody.
Schools need to collaborate with colleges. Schools have all sorts of incentives for wanting to hang on to their pupils and to make them do GCSEs and A-levels. My noble friend Lord Storey asked: would it not be wonderful if schools celebrated their apprenticeships? I remember, in the balmy days of coalition government when I was in the DfE, saying to Michael Gove: “For goodness’ sake, get the schools to celebrate their apprenticeship leavers. If they’re putting up a placard outside the school saying, ‘These kids have all gone on to university’, put up another one saying, ‘These ones have gone on to apprenticeships’.” He said, “What a very good idea, Sue”, and did absolutely nothing about it—but there we are.
If we are to work with the colleges, one of the inequities that needs to be redressed is the difference in pay between college teachers and schoolteachers. It really is not right, so will the Minister please take that away and try to do something about it?
One of my major concerns when the technical education Bill was going through was that T-levels were technical—just “technical”. As we have heard from the noble Lords, Lord Puttnam, Lord Johnson and Lord Cormack, and the noble Baroness, Lady Lane-Fox, a whole range of craft and creative industry qualifications really deserve their place. Not only are they good for careers and economy but, by goodness, they increase our quality of life. Yet this emphasis all the time on technical qualifications rather implies that craft does not matter; it does, and we need to do something about it.
I had another bit of paper somewhere; I have just a couple more things. We fully endorse funding for modular and short courses. That is absolutely essential, but why not until 2025? As we have already heard, that really needs to come forward. We need it as soon as possible.
We also notice with concern the sad drop-off in part-time learners from both the Open University and Birkbeck, but I also read that there has been a 26% fall in undergraduate higher education in the last decade. Where are all our young people going? What are they doing? This really is not good enough. We need a full-time push to try to get skills and education back on the agenda. If this Bill can be the catalyst for that, that will be terrific.
I have a last bit of paper somewhere, except that I have lost it. No, here we are. We have too much paper in this place. I have to say that, when you sit for six hours in the Chamber with a mask on, some of your rationale does disappear.
We have had an absolutely wonderful variety of speeches. All of us in the Chamber are committed to skills and education, and to the Bill going through and improving skills and education opportunities for everybody, but we have also heard major concerns that it really does need amendment. I feel sure that we shall all be prepared to work cross-party to try to ensure that we improve the future for young people and adults, and that the Bill ends up as a major contribution to the economy and the well-being of all of us. I look forward to the Minister’s reply and to Committee.
Lord Watson of Invergowrie (Lab)
My Lords, this has been a fascinating and in many ways stimulating debate. Perhaps that was inevitable given that participants included four former Secretaries of State for Education. For more than an hour, we had the company of the current holder of that post, which does him some credit. Four former Education Ministers also spoke.
As my noble friend Lord Rooker pointed out, in his typically forthright style, many noble Lords referenced positions held in higher education institutions. To the best of my recollection, the noble Baroness, Lady Hollins, was the only Member to declare a position as a board member of an FE college, far less a school. That is another aspect of the divide that we need to bridge if our calls for parity of esteem are to have the ring of authenticity.
I am pleased to wish the noble Baroness, Lady Black of Strome, a warm welcome to your Lordships’ House. I add my congratulations on her remarkable maiden speech. I do not know the noble Baroness, but I certainly know of her. She was a professor at the University of Dundee, my home city, so I was aware that she had created the Centre for Anatomy and Human Identification there. It has now gained an international reputation.
This Bill has been a long time coming, because it is the first piece of government education legislation laid before Parliament for almost five years. That is so far in the past that the noble Baroness, Lady Morgan of Cotes, was then the Education Secretary. We are now on her third successor.
The data shows that 16 to 19 education in England has suffered a huge funding squeeze, as my noble friends Lady Blackstone and Lord Layard stated. Between 2010-11 and 2018-19, real-terms funding per student in sixth forms and colleges fell by 16%. Technical students received 23% less funding than academic students. Recent additional funding of £400 million announced by the Government focused on technical education will, I am afraid, reverse only a quarter of these cuts.
The Bill does not deal with fundamental resourcing issues, but these have to underpin any serious attempt to transform post-16 education and training, which the policy summary notes claim is the main aim of this legislation. The impact assessment identifies the huge decline in adult education, apparently without appreciating the irony, given that the adult education budget has been slashed by half in real terms, which has led to a sharp decline in adult learners and particularly in workplace learning. The Government’s recent pettiness in axing the Union Learning Fund showed that Ministers are more interested in playing politics than supporting workplace learners. None of the Bill’s objectives will be achieved if these issues remain unaddressed.
The Bill covers only FE providers and sixth-form colleges. It makes no reference to schools, yet they play a vital role in equipping young people with the skills they need to thrive in life. The White Paper stressed the importance of good careers education in schools, a point made in today’s debate by the noble Lord, Lord Storey, and the noble Baroness, Lady Morgan of Cotes, yet the Bill does not mention that either. A significant number of schools deliver technical qualifications —some have been accepted to pilot T-levels —and it is difficult to understand how a meaningful local skills strategy can exclude post-16 provision in schools.
One of the main planks of the Bill is the introduction of a lifetime skills guarantee, albeit, as many noble Lords have said, with a rather narrow focus within the technical disciplines that it will support. Almost 1 million priority jobs will be excluded from the lifetime skills guarantee in sectors facing a skills shortage. What about Wednesbury Woman who wants to retrain as a computer programmer, or Mansfield Man who wants to go into hospitality? What is in the Bill for them? Inexplicably, hospitality—a sector desperate for new staff and suffering terribly from the effects of lockdown—is excluded.
One significant barrier for adult learners is the cost of study, an issue not included in the Bill despite being highlighted in its impact assessment. Perhaps the Minister can explain that conundrum. While provisions are made for a lifetime loan entitlement, it is unfortunate that its details are yet to be revealed. The effect of this is that they cannot be scrutinised by noble Lords today and must be delayed until Committee.
Lifelong learning must mean just that, as many noble Lords have said. People should have access to training and reskilling throughout their lives, but there remain concerns that the LLE may see participants being saddled with substantial debts, especially if the Government fail to deliver on the recommendation of the Augar review that maintenance grants should be reinstated for people from low-income households, as advocated by the noble Lord, Lord Bichard. We are told this is an issue on which the Government will consult. I have to ask: why? Wales has shown that these grants attract many into training, so why yet more delay?
The question of delay also concerns the LSG, which will not be introduced until 2024, and the LLE a year later. The Minister referred to complexities in this regard involving the modular system, but the many people facing unemployment in the coming weeks and months needs access to courses now to help them to retrain and upskill. What does the Minister say people should do in the interim while this is being developed?
The Government say that their main focus is on helping the country recover from the pandemic’s damage to the economy and spreading opportunity more evenly across the regions—worthy aims. Local skills improvement plans are identified as the means of achieving that, but the employer representative bodies in the legislation seem designed to be creatures of direct ministerial control; several noble Lords have registered their concern about that. While it is right that our skills system should be better at identifying and meeting the skills needs of employers, designating them the exclusive drivers of technical education, as my noble friend Lady Morris said, gives them too much power. Employers certainly have a contribution to make, but to suggest that no other bodies have anything to offer is surely wrongheaded, not least because employers do not have a great track record in training their employees for future patterns of work and developing skills demands. After all, the Government introduced the apprenticeship levy specifically because encouragement had failed.
The noble Earl, Lord Shrewsbury, referenced the West Midlands metro mayor. I wonder what Mr Street’s reaction is to being completely sidelined, along with other metro mayors, combined authorities, local enterprise partnerships and universities. We will bring forward amendments that empower these bodies to co-produce local plans in recognition of their own vital roles.
The Minister has important questions to answer here. Top of the list is to explain the membership, functions and central government control of employer representative bodies. How will they undertake their planning, particularly when starting from scratch? How will ERBs be held to account, and how will the extent to which providers are meeting local needs be measured and assessed? What will happen if a metro mayor disagrees with the ERB? What role is envisaged for local enterprise partnerships, which are not mentioned in the Bill at all? Yesterday’s issue of the Local Government Chronicle carried an article claiming LEPs were to be evolved rather than abolished. Can the Minister confirm that, and whether such evolution will be the subject of consultation?
My noble friend Lady Wilcox made the important point that supported internships, which can play a major role in supporting learners with learning difficulties to prepare for and enter the world of work, must be added to the Bill. The noble Lord, Lord Addington, also spoke passionately of the need for the inclusion of supported internships, which should be an integral part of local skills plans. This is sure to be addressed in Committee.
The Bill’s centralising theme also extends to two aspects of further education. It hands the Secretary of State powers of intervention if he does not like what a particular college is teaching, even if the quality of that teaching has been shown to be good. The Secretary of State can dismiss the local leadership team if the college is deemed not to be following the LSIP. Independent training providers will also be cowering at the thought of being targeted by Ministers for the same reason—a warning we heard issued by the noble Lord, Lord Bichard.
That seems draconian, but the Bill also gives Ministers the ability to regulate initial teacher training for further education. Such a system did exist; it was introduced by the Education Act 2002 but abolished by the Deregulation Act 2015. I ask the Minister what has led to the need for change just six years later. It seems the intention is to introduce standards for ITT in further education and to accredit providers to deliver them. On the face of it, there is nothing wrong with that, but it sounds like the politicisation of initial teacher training—something that, as my noble friend Lord Knight highlighted, is already happening in ITT for schools, as a result of Ministers’ commitment to a particular educational ideology.
In opening the debate, the Minister referenced the Augar review’s call for parity of esteem, and many noble Lords followed her lead. If one theme has dominated the debate, it is the need to end the division between academic and technical routes, which, as the noble Lord, Lord Willetts, rightly said, is a false one. He illustrated that by reminding us that academic courses are offered at FE colleges, while technical subjects can be studied in universities. The divide was characterised by the right reverend Prelate the Bishop of Leeds as a “crazy distinction”. While my noble friend Lord Puttnam stressed that this is not a zero-sum game, my noble friend Lord Liddle called for “collaboration, not polarisation”. I echo these sentiments and very much hope that the Bill will at least begin to bridge that divide.
While we welcome the Bill’s aims, there remain many areas of detail—some not in the Bill, as drafted—that require extensive scrutiny and testing. We look forward to engaging with both Ministers in Committee, with a view to enabling the Bill to achieve a joined-up system of education, including regulation and funding.
Baroness Berridge (Con)
My Lords, I thank noble Lords for their contributions today; I appreciate the expert knowledge that they bring and the many passionate speeches. As the noble Baroness, Lady Garden, said, I hope I have retained some of my rationality during this interesting debate.
I begin by giving a special thanks to the noble Baroness, Lady Black, for her maiden speech. Like my noble friend Lady Morgan, I am the beneficiary of a touch typing course, which has stood me in good stead. I was fascinated to hear of the career of the noble Baroness, Lady Black, in forensic anthropology—but, as one of the more squeamish Members of your Lordships’ House, I do not need to know anything further. I wish her well, and hope that she enjoys her time in this House as much as I do.
I turn now to the points that noble Lords have raised. But given that there have been 50 speakers, as was outlined by the noble Baroness, Lady Young, I am afraid that the department will be writing some letters after I have concluded.
Before I turn to the specific questions, many of your Lordships followed the lead of my noble friend Lord Willetts, including the noble Lord, Lord Blunkett, and my noble friends Lord Baker and Lord Cormack. I am the beneficiary of the wisdom of previous holders of junior and Secretary of State positions in the department, in that my homework has been corrected: there is no artificial distinction between vocational, technical and academic—no sense that one is better than the other. We are trying to achieve a system where they all have parity of esteem, where the institutions that teach these qualifications have parity of esteem and where the quality of all those qualifications is there.
The reforms in the Bill are aimed at bringing the system closer together and the lifelong loan entitlement, for instance, will bring together all the funding support for learners—that is, level 4 to level 6—wherever you might be studying that. One can also look at the system at the moment and see that there is not a conflict or a battle between FE and HE—the Government do not desire that at all. We recognise the collaboration there is. When we look at the recent introduction of institutes of technology, we see that they have been a collaboration; the university technical colleges of my noble friend Lord Baker have also been a collaboration, as have been the recent specialist maths sixth-form colleges, with universities involved in 16 to 19 provision. So the system is not even that twofold—just FE and HE. We will also fund T-levels, A-levels and other high-quality academic and technical qualifications for young people and adults at level 3. This will ensure that, whatever option learners choose, they will have a pathway to success.
A few noble Lords mentioned being disqualified from access to LLE. If you want the funding for level 4 and you are accepted by the institution to study that, it does not matter if you do not have level 3 or level 2. That is how universities have operated for a while: they sometimes have different access routes. Therefore, although obviously we have the funding situation for levels 1 and 2, you will have that entitlement. If you get accepted on a course at level 4, you will be in the lifelong loan entitlement pot. There is no prerequisite that you have to have level 3. However, of course we recognise the value of those qualifications, as many noble Lords have said, and therefore the advanced learner loans will still exist for level 3 courses that are not the 400 courses that we are currently funding if you do not have the full entitlement or if you have the full level 3 entitlement and want to do something different. I hope that clarifies that everyone will have that lifelong loan entitlement between levels 4 and 6.
On the measures in the Bill on local skills improvement plans, I agree with my noble friend Lord Taylor on the importance of localism. The local skills improvement plans are putting employers at the heart of the skills system in a way similar to the apprenticeship situation and the T-levels that we have designed. Many noble Lords talked about that tension: someone has to be in the driving seat here. There cannot be a cast of thousands but there needs to be appropriate consultation. So the Government have decided that these will be employer representative groups. To clarify to the noble Baroness, Lady Bennett, we did not define them as businesses but as employers. That might be the big local hospital, or a university might be an employer for that purpose rather than just being the provider. They are well placed to have that convening role, including of course the SMEs, in their local area. As the right reverend Prelate the Bishop of Leeds highlighted, their involvement is crucial.
My noble friend Lady Morgan asked what the Government envisage ERBs to be. We consider them to be independent bodies designated by the Secretary of State to develop local skills improvement plans. They are capable of developing that plan in an effective and efficient manner and many noble Lords talked about the future—the noble Baronesses, Lady Morris and Lady Lane-Fox. The plans have to be dynamic and will include not just existing skills but what the future for the local area looks like. I want to reassure the noble Baronesses, Lady Coussins, Lady Janke, Lady Henig, and the noble Lord, Lord Watson, that in Section 4 the relevant providers are not just FE and HE; they include the schools that are delivering post-16, as well as the independent training providers. So the educators are included, and it is supposed to be a dynamic relationship between the employer representative body and the relevant providers that, as I say, we have outlined.
On a point raised many hours ago by the noble Baroness, Lady Wilcox, the mayoral combined authorities will be engaged in developing the local plans. The White Paper talked about the fact that they will be consulted on this and, as I mentioned, we have these trail-blazers that we have recently procured, so we will know the particular areas where we will be starting there. They will help to shape the local plans.
However, one reason to have local skills improvement plans is the gaps we have at the moment. The noble Earl, Lord Shrewsbury, referred to this position for parts of Shropshire, in such a dynamic region as the West Midlands. There will be a local skills improvement plan across the country and it is obvious to state, but perhaps I need to say it, that not everyone has a mayoral combined authority. As noble Lords have often said, we do not have a settled, defined geography out there for many things—our police authorities, our local government—so this is where “local” will be defined by the local employers coming forward. Many of the current trailblazers have come with the endorsement of local government or, where relevant, the mayoral combined authority.
The noble Lord, Lord Patel, the noble Baroness, Lady Coussins, and the noble Lord, Lord Triesman, asked how the local skills improvement plans will interact with national strategies. They will be informed by the national skills priorities, as highlighted by the Skills and Productivity Board; that will remain. The board will undertake expert analysis of the national skills that we need to inform government policy.
The noble Baroness, Lady Morris, asked what powers the Government have should businesses take a back seat and rest on their laurels. If the ERB does not comply with the set conditions, the Secretary of State may not approve and publish its skills improvement plan and could remove its designation. Obviously, it goes without saying that all the powers of the Secretary of State are subject to criteria for judicial review. These powers must be used in a proportionate manner, et cetera; they are obviously not an absolute power.
The noble Lord, Lord Stunell, and the noble Baronesses, Lady Sheehan, Lady Young and Lady Bennett, talked about the importance of green jobs and net-zero carbon. We expect the LSIPs, led by the employer-represented bodies with that link to the national strategy, to look at what future green jobs are in the area. An element will be national because of what needs to happen with household boilers, as I think the noble Baroness, Lady Bennett, mentioned, so there will be an interconnection there.
The noble Baroness, Lady Wilcox, and the noble Lord, Lord Curry, raised questions on local needs. It is about the needs of the learners and the employers in a local geographic area served by the college. The noble Lord, Lord Bradley, questioned the centralisation here, but what we are saying here is that we are allowing “local” to define itself. We have not said that it has to be the local authority area, the MCA area or the LEP area. There is a dynamic here to areas being able to say, “This is the area that we, as employers, need to look at.” The plan will be an important point of reference.
As the noble Lord, Lord Curry, spoke, I mouthed “Newton Rigg”. I am aware that there have been issues in relation to the provision of land-based education in that part of Cumbria. I regularly see questions about it, so I will happily engage with him if I can offer any further assistance.
I reassure the noble Lord, Lord Storey, the noble Baroness, Lady Garden, and other noble Lords that the purpose of the section of the Bill dealing with technical educational qualifications, which includes a lot of hospitality within that sector, is to simplify the approach to regulations between the institute and Ofqual. The two bodies already work effectively together. They are effectively collaborating; we are embedding, or perhaps futureproofing, it so that they carry on working in the way that they do at the moment. In the legislation, we are extending the technical qualifications that IfATE can regulate but Ofqual will continue to have independent regulatory oversight of technical qualifications in live delivery. The legislation will bring the treatment of technicals more in line with A-levels and GCSEs, where the content is subject to regulatory scrutiny. Obviously, we have been talking to Ofqual during preparation of the Bill.
Extending the institute’s power will raise the quality bar and ensure that the majority of these qualifications, like apprenticeships and T-levels, are aligned to employers’ standards. This will place the employers’ voice at the heart of the system. We are creating a clear progression pathway for learners and there will be an opportunity for Parliament to consider the details of the regime when the regulations are laid.
It has become clear today that a lot is happening around this legislation; this is the statutory underpinning to the skills White Paper, but we also have the consultation that has just finished on level 3, the call for evidence on level 2 and the consultation on the details of the lifelong loan entitlement. Turning to that, I confirm to the noble Baroness, Lady Wilcox, that it is our intention, as outlined in the Explanatory Notes, to bring forward amendments to the lifelong loan entitlement ahead of Committee. I can also confirm to the noble Lord, Lord Bichard, that the LLE will be available to be used from levels 4 to 6. The noble Baroness, Lady Wilcox, also mentioned the funding of level 3. As I have outlined, that is covered by the national skills fund and there are now the boot camps—flexible courses for up to 16 weeks. As I have said, that is in addition to the availability of the ALL and bursary support fund for level 3 qualifications.
Many of your Lordships, including the noble Lords, Lord Bichard and Lord Watson, and my noble friend Lady Wyld, raised questions on the detail of the LLE ahead of the upcoming consultation. We will do that as soon as possible during the passage of the Bill. I am not able to give a clearly defined timeline on this, but the consultation will cover questions on, as the noble Lord, Lord Watson, mentioned, maintenance credit transfers; the noble Baroness, Lady Garden, and many other noble Lords mentioned the ELQ rules, which will also be within the consultation. I am happy to ask officials to set up briefing sessions with noble Lords once the consultation has been launched.
Many noble Lords, including the noble Lords, Lord Shipley and Lord Curry, my noble friend Lord Cormack, and the noble Baroness, Lady Lane-Fox, asked about the introduction date of the LLE. As well as the consultation, we have got a lot of work to do with the Student Loans Company to co-design a system capable of delivering the required operational changes, and we will introduce secondary legislation to enable the LLE to function. This, as I have outlined, is the whole pot for level 4 to level 5, so there will of course be changes. Once you release the maximum loan amount for the academic year, that has a knock-on implication for that which it already funds—mainly the level 6 undergraduate degree. We have got to get this right operationally and, unfortunately, it is going to take more time than we would ideally like.
The question of part-time study was raised by the noble Baronesses, Lady Lane-Fox and Lady Greengross. I have to say, having been to a graduation at Birkbeck university, I was overcome by emotion seeing people getting their degrees, many with their families and children there. The decline in part-time study and adult education is a great shame, and I thank my noble friend Lord Willetts for his humility in accepting that it is something that we are seeking to put right. One of the main purposes of this is to ensure that the loan entitlement enables that modular, part-time learning to begin again. But I accept the questions raised about how adults access loans, as opposed to young people; I am sure there are behavioural scientists looking at how we get people to take these loans up.
In response to my noble friend Lord Willetts and the noble Baroness, Lady Stowell, the LLE will be available regardless of where you study—it will be “institution blind”, as I think another noble Lord said. It will be based on the level of qualification you are studying, not which institution you have selected to study in.
On the parts of the Bill that relate to initial teacher training, as I have outlined to the noble Lord, Lord Watson, the powers we are taking are to deal with the small part of the market that is not producing the quality that it should for initial teacher training for FE. Once we have worked in collaboration with the sector, if we still need that power, we will use it, but we want to make sure that the quality is there.
I believe the questions raised by the noble Lord, Lord Knight, relate to the current review of the ITT market for school-based training, and so I will ask officials to write to him, as that is outside the scope of this Bill.
On that note, there were other matters, as this Bill sits quite narrowly within a framework of a lot of other interconnected issues. I will deal with a few of those in the time I have left.
I am very grateful again to the noble Lord, Lord Addington, and the right reverend Prelate the Bishop of Leeds for highlighting the importance of special educational needs and of using the assistive technology to support FE learners with SEND. This is an important part of the Bill. Obviously, the figures for those with SEND show that a higher proportion of them go into technical or vocational qualifications or into FE institutions.
The noble Lord, Lord Storey, asked about alternative student finance. We are considering a student finance project that is compliant with Islamic finance principles in parallel with the post-18 review of education and funding. That review is due to conclude alongside the next multi-year spending review, so we will provide an update then. I know that that is an issue that has been talked about for a number of years.
Of course, many noble Lords raised questions about apprenticeship funding. Again, apprenticeship levy funding is not part of the scope of the Bill, but £2.5 billion is available this year and the funds available to levy-paying employers are available to be transferred down the supply chain. We are working on the apprenticeship levy to ensure that it is meeting those needs. Most employers who pay the levy might not spend all of their funding, and they can fund apprenticeship starts in smaller employers. We will make improvements to support employers offering more apprenticeships and to make them more flexible through accelerated front-loading and flexi-job apprenticeships and making transfers easier. We also have a specific piece of work on the sector that the noble Lord, Lord Puttnam, is in—that is the creative industries—where apprenticeships have been difficult because there is not one employer and people are going from project-based work.
The importance of careers advice was mentioned by many noble Lords, including the noble Lords, Lord Patel, Lord Addington and Lord Bichard, the noble Baroness, Lady Garden, and my noble friend Lady Morgan. Obviously, that is not within the Bill, as far as I am concerned, because we do not need statutory underpinning for that. However, I recognise that the Bill is sitting in this wider framework of connected issues, and we have given £100 million to the National Careers Service and the Careers & Enterprise Company this year.
On the perennial issue of cross-government working, which was mentioned by many noble Lords—particularly the noble Lords, Lord Puttnam and Lord Patel, and the noble Baroness, Lady Coussins, and my noble friend Lady Stroud—and also came up in one of our meetings in advance of today’s Second Reading, we are looking to answer those questions, so I will write to noble Lords about the interconnection of this with the benefits system. It is not straightforward to answer in a Second Reading debate how we can ensure that it connects properly, but I will write to noble Lords.
In relation to the specific question on the Kickstart scheme, I am told here that universal credit claims are eligible if the claimants are aged 16 to 24 and meet the relevant conditions. We are working with DWP to turn those as well into apprenticeships when it is right for the employer and that young person. I hope that answers the specific question posed by the noble Lord, Lord Storey, but if it does not, I will write further to him.
Obviously, I have read the concerns of the noble Lord, Lord Johnson, in the Times, which I think were more properly addressed to the Treasury in relation to the finances. The issue was also raised by the noble Baroness, Lady Blackstone, and that will also be passed on.
In conclusion, I wholeheartedly agree with the statement by the noble Lord, Lord Puttnam, about the importance of the Bill. The imperative is the need now for us to follow through, to fund this and to deliver it. I beg to move.
Bill read a second time and committed to a Committee of the Whole House.
House adjourned at 8.09 pm.