Skills and Post-16 Education Bill [ Lords ] (Third sitting)
Thursday 2nd December 2021
(3 years ago)
Public Bill CommitteesRead 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 Amendment Paper: Public Bill Committee Amendments as at 2 December 2021 - (2 Dec 2021)
The Committee divided: - Ayes: 6 / Noes: 8 - Question accordingly negatived.
The Committee divided: - Ayes: 6 / Noes: 8 - Question accordingly negatived.
Mr Toby Perkins (Chesterfield) (Lab)
I beg to move amendment 43, in clause 2, page 3, line 27, leave out “as the Secretary of State considers appropriate” and insert—
“, including—
(a) the requirement for the local skills improvement plan to give due regard to relevant national and regional strategies, including in respect of the Decarbonisation Strategy,
(b) a requirement for employer representative bodies to publish a conflicts of interest policy for all those involved in approving plans or allocating funds which records actual or perceived conflicts of interests, and
(c) anything else the Secretary of State considers appropriate.”
This amendment sets out conditions for employer representative bodies. The amendment would require that employer representative bodies publish a conflicts of interest policy and give regard to national strategies (including the Decarbonisation Strategy).
It is a pleasure to serve under your chairmanship again, Mr Efford. We will try not to give you any unpleasant surprises this time.
This is a relatively small but important amendment, which has three aspects to it. Given the exemplary cross-party work undertaken in another place on local skills improvement plans and climate change, we believe that the Bill can go further to ensure that, as a nation, we meet our commitment to the natural environment. It is therefore crucial to ensure that LSIPs give due regard to the decarbonisation strategy and that employer representative bodies produce plans with due diligence given to committing to ensuring that we have green skills for the future across local labour markets.
If we are to meet the UK’s emissions target of net zero even by 2050—we already know that to be a challenging and potentially insufficient commitment—it is essential that green jobs are created and that that is a key focus of the local skills improvement plans in every single area across the country. One reservation expressed in our previous debates is that the different chambers of commerce and employer representative bodies will have different priorities. The amendment, in the first paragraph, seeks to ensure that, whatever the priorities of the chamber of commerce, it addresses the decarbonisation strategy. If it does not have the expertise itself, it needs to avail itself of that to ensure that the plans move us towards net zero. Once again, this demonstrates the need to align skills policy with national strategies across Departments—in this case the Department for Business, Energy and Industrial Strategy—so that LSIPs do not become silos.
The second paragraph of the amendment would require employer representative bodies to publish a conflicts of interest policy for all those involved in approving plans or allocating funds, to record actual or perceived conflicts of interest. This is an incredibly important proposal, because the Bill places responsibilities and duties on—predominantly, we expect—chambers of commerce in a statutory fashion. I think that is unlike anything we have expected them to do before—unless the Minister wants to draw my attention to something. Chambers of commerce are not statutory organisations, but they are now taking on a role that appears to have statutory status.
Many people at senior levels are involved in chambers of commerce. They are in there because they want to make their local economies better and to improve the opportunities for businesses in their local area. It is also perfectly possible, however, that they will have an agenda about the industry that they are in or represent. Therefore, if they are to take on a more statutory-looking role, it is important that we are aware of what their conflicts of interest might be. If a local skills improvement plan suddenly features policies to do with a certain industry, we need to know who put the plan together so that we can consider why they might have done so. It would therefore be basic best practice for a local skills improvement plan to include a declaration of any interests or potential conflicts of interest.
Rachel Hopkins (Luton South) (Lab)
It is appropriate that I declare an interest again: I am a vice-president of the Local Government Association and a governor of Luton Sixth Form College. Many local authorities have third-party declarations, where councillors have to declare any potential conflicts of interest regarding the funding decisions that they are making, even if a partner works for a charity that is getting a council grant. It should be the same with regard to employment representative bodies and their members, so that we have a clear and transparent understanding of where funds may be allocated, and where there are potential or perceived conflicts of interest.
Mr Perkins
Precisely—I could not have put it better myself. In fact, I do not think that I was putting it better myself. If a chamber of commerce has, for example, a tree surgeon as its chair, and the local skills improvement plan has policies on attracting skills in tree surgery and no other does, people might consider that an agenda has been driven. There are all kinds of other examples. There is nothing negative about tree surgery—we all know how important it is—but people would need to understand why it was in the policy and whether there were any other factors to consider. In recent weeks, there have been real concerns about the allocation of Government funding, who was getting it and on what basis, who was talking to who, who was donating to who, who was signing up to who, and who was the best pal or a publican of a friend of who. In that context, it is important to ensure that local skills improvement plans are not mired in the murk that we have seen from the Government recently.
Kim Johnson (Liverpool, Riverside) (Lab)
As we know, eight trailblazer ERBs were set up in July this year, with £4 million. Does my hon. Friend agree that we need to find out how beneficial they have been before we decide to roll them out and have chambers of commerce leading on them?
Mr Perkins
My hon. Friend makes an excellent point. It is feature of the Government’s approach, particularly to skills, that they set up pilots and then reach a conclusion before it is completed, as we saw on T-levels. We are debating the creation of something when the pilot is still at a very early stage. It was commented on, on social media and elsewhere, that the Minister said on Tuesday that it does not have to be a chamber of commerce; it could be any kind of organisation. When I asked him how many other organisations there are, he said, “Well, none.” It is better if we are straight and honest about what we are talking about. The anticipation is that chambers of commerce will do it in the vast majority of cases. Other organisations may come forward, and we look forward to seeing that emerge, but clearly the legislation was written with chambers of commerce in mind, and they are taking on the trailblazer role. My hon. Friend makes a valuable point. Why not find out how these things are working before we rush ahead and do them?
Matt Western (Warwick and Leamington) (Lab)
To amplify that point, I am sure that Members on both sides agree that we need greater transparency. All we are asking for is openness in the process, so that people cannot seek to influence decisions. To take one simple example, not very far from me there was a local enterprise partnership, the chair of which happened to be a huge landowner who was seeking to steer future business decisions towards that parcel of land. That is why this is really important. Of course, it could come from any direction; I just happen to use that example. Whether it is the cronyism that my hon. Friend referenced earlier, or the chair of the Office for Students, these things have to be out in the open and as transparent as possible.
Mr Perkins
Absolutely. That is particularly important because organisations such as local enterprise partnerships, the Office for Students and others operate on a statutory level, with expectations around that. From a governance perspective, they are kind of arms of Government. The chambers of commerce are independent of Government. The Government are outsourcing responsibility for a function that they have created. It will be delivered as a function of Government, but they are expecting a private organisation to deliver it. It is therefore important that that private organisation operates in a way that a statutory organisation would.
Rachel Hopkins
My hon. Friend is making a very interesting point about transparency and the outsourcing of a Government function to a private entity. Does he agree that, given that a freedom of information request cannot be placed on a private entity, this is another reason why it is vital that these conflicts—or potential conflicts—are raised early doors and up front for transparency?
Mr Perkins
My hon. Friend makes another incredibly important point. It is something that people should naturally accept. I will be very interested to hear the Minister’s response. That was another important intervention from my hon. Friend, and I appreciate the interventions both she and my other colleagues have made—if any Conservative MPs want to involve themselves in the debate, they would be very welcome to do so. It is important that everyone gets to know what is being said, who is saying it and on what basis it was said. That is the reason for the amendment. We do not need to continue describing it, but I am very interested to hear what others have to say on it.
The Parliamentary Under-Secretary of State for Education (Alex Burghart)
It is a pleasure to serve under your chairmanship again, Mr Efford, and I look forward to making even more rapid progress today, as we continue with clause 2 of our 39-clause Bill. I rise to speak to amendment 43, tabled by the hon. Members for Chesterfield and for Warwick and Leamington, regarding specifying certain conditions for the designation of employer representative bodies. It is obviously right that a designation may be subject to terms and condition, such as the terms and conditions that the hon. Member for Chesterfield has set out. However, the precise terms and conditions need to be flexible, and may change over time in the light of wider circumstances. They also need to be tailored to the specific employer representative body in question. That is why the specifics should be set out by the Secretary of State in a notice of the designation, which can be modified from time to time, rather than in the Bill.
Mr Perkins
I thank the Minister for that very brief response—the Opposition have heard it. It is important that there is clarity about where people are able to find these conditions. We are once again being asked, “Vote for it now, and we will let you know what it means tomorrow.” It sounds almost like the coalition agreement. I believe that a commitment at this stage to having those aspects in the Bill would have been useful. I do not believe the Minister touched upon decarbonisation at all in his response, which seemed quite an omission, but we are of the view that a decarbonisation strategy should play a central role in these LSIPs. For that reason, we will seek to test the mood of the Committee by pressing the amendment to a vote.
Question put, That the amendment be made.
The Chair
With this it will be convenient to discuss new clause 3— Report on the performance of employer representative bodies—
“(1) Within six months of the passing of this Act, and every twelve months thereafter, the Secretary of State must publish a report on the performance of employer representative bodies and lay it before both Houses of Parliament.
(2) Each report must contain a statement setting out—
(a) the role of employer representative bodies,
(b) the accountability of employer representative bodies,
(c) the cost of employer representative bodies,
(d) the number of employer representative bodies in England and the areas covered,
(e) the number of employer representative bodies that have been removed and the reason why.
(3) Each report must contain an independent assessment of the impact of each employer representative body on—
(a) the development of local skills improvement plans, and
(b) local rates of participation in further education.”
This new clause requires the Secretary of State to publish and lay before both Houses of Parliament an annual report on employer representative bodies to allow for scrutiny of their role and performance.
Alex Burghart
Clause 2 is important for placing employers at the centre of the local skills system, shaping post-16 technical education and training so that it is more responsive to local labour market skills needs. It gives the Secretary of State the power to designate genuine employer representative bodies to lead the development of local skills improvement plans, working closely with employers, providers and local stakeholders. Employer representative bodies will be well placed to give a credible articulation of local skills need and drive greater employer involvement in local skills systems.
The Secretary of State will designate employer representative bodies based on criteria. They must be satisfied that a body is capable of performing the duties of developing and keeping under review a local skills improvement plan in an effective and impartial manner, and that it is reasonably representative of employers in the area. The body must also consent in writing to being designated. Designated bodies should draw on the views of a wide range of employers of all sizes, as well as other relevant employer representative and sector bodies, to inform the development of those plans. This should ensure it is as easy as possible for employers, especially small employers, to engage and have their voice heard. The success of the plans will depend on sustained and effective engagement between employers, convened and represented through the designated bodies, and providers.
Clause 2 requires the Secretary of State to provide written notice of the designation detailing the designated body, specified area, effective date, and any terms and conditions the employer representative body will be subject to. Introducing this power to designate is crucial to ensuring there is an effective employer-led body in place that is capable of leading the development of a robust local skills improvement plan for an area, working closely and in co-operation with relevant providers and stakeholders.
New clause 3, tabled by the hon. Members for Chesterfield and for Warwick and Leamington, is concerned with the performance management of employer representative bodies. It proposes a requirement for the Secretary of State to periodically
“publish a report on the performance of employer representative bodies”.
We agree that employer representative bodies need to be accountable for their leadership of local skills improvement plans, and the Bill already provides a framework for this. The Secretary of State must be satisfied that an eligible body is capable of developing a local skills improvement plan in an impartial manner before they are designated. The Secretary of State can then specify terms and conditions to which a designation is subject and modify them as necessary. In its role, the designated employer representative body will be accountable to the Secretary of State, and the Department for Education will monitor and review its performance.
If a designated employer representative body does not have regard to relevant statutory guidance—as we were discussing last time—or comply with any terms or conditions of its designation, or if it ceases to meet the criteria for which it was originally designated, the Secretary of State may well decide not to approve and publish the local skills improvement plan, and has the power to remove its designation. If that power is exercised, the Secretary of State must publish a notice, which must include the reasons for the removal. The Secretary of State is already accountable to Parliament, and Members can of course raise questions on this issue if they wish.
Mr Perkins
With regard to clause 2, we remain of the view that without amendment 37, which the Committee decided to vote against on Tuesday, the Government will be introducing a good idea badly. As such, local skills improvement plans will not enjoy the holistic representation or offer the breadth of experience they could have done, which is hugely regrettable. I do not propose to repeat all of the arguments we made last Tuesday, or even any of them, but it remains our view that not incorporating amendment 37 in the Bill will fundamentally undermine local skills improvement plans.
New clause 3, which we have proposed,
“requires the Secretary of State to publish and lay before both Houses of Parliament an annual report on employer representative bodies to allow for scrutiny of their role and performance.”
We think it is essential that there is proper scrutiny and oversight of employer representative bodies, that they enjoy the confidence of elected representatives at local and national level, and that local communities, local businesses and, crucially, learners—who are so absent from the Bill—can see how an employer representative body has performed and assess the quality of the plans they have produced. Given that employer representative bodies will control much of the adult education and skills budget and their direction through the formation of these local skills improvement plans, due diligence and accountability will be vital. All we ask for is an annual report to Parliament that will enable Members to analyse the performance of employer representative bodies and ensure they are doing the role they are intended to.
Alex Burghart
I want to clarify a point regarding something the hon. Gentleman just said. It is important for us all to realise and recognise that employer representative bodies will not be commissioners. They do not control budgets; they set out plans that local providers of education then have to respond to. He may not have meant that, but I just wish to clarify that point.
Mr Perkins
I am grateful to the Minister for clarifying that. I did understand that. When I used the phrase “control much of the adult education and skills budget”, I meant that the direction in which that budget ends up being spent will be informed—in fact, legally, will have to be informed—by those local skills improvement plans. While they might not be writing out the cheques, they will very much be responsible for the pathway that that funding takes. I thank the Minister for his clarification, but I do not think it alters the point that I was making.
Matt Western
Clearly, the new clause is quite simply about, as my hon. Friend is saying, ensuring that there is scrutiny of the actions and the role of these bodies and that they are actually serving in the way that they are intended. The change being introduced is quite significant; while we see some of it as being positive—although perhaps not very well formed, as we have articulated previously—that is why it is important that there should be scrutiny. The Government should take interest in that. This is just another example of there not being enough scrutiny in our governance.
Mr Perkins
Absolutely, and the Government have been accused of treating Parliament with contempt. What we ask for here is an important change that would lead to an annual report to Parliament and ensure that the Secretary of State would come to Parliament and answer to that once-a-year report.
The Minister spoke about the accountability of ERBs to the Secretary of State, but said nothing about the accountability of ERBs to Parliament, or of the Secretary of State to Parliament. It is not good enough to simply say “Well, there will be a responsibility to the Secretary of State, and if you want to ask him a question, you can.”
It is not asking too much to say “Once a year, provide a report. Members of Parliament expect a statement to be produced alongside that report, and any MPs with particular concerns have a tiny section of their parliamentary year to ask questions about employer representative bodies, and at least have those on the public record.” That was the purpose of our new clause 3. I think that it is a very sensible one, and that it would be useful if the Government ensured that they were open to that scrutiny.
Matt Western
It is a pleasure to serve under you in the chair again, Mr Efford. I will just add a simple point. I appreciate that it is always difficult in these situations for a Minister, but I would urge him—I am sure my hon. Friend the Member for Chesterfield would agree—to reflect on this very constructive new clause. While it may not be successful today, perhaps in days to come, the Government will reflect on that and look to introduce it at a later stage. I think that would be a very positive thing for the Government to do.
Question put and agreed to.
Clause 2 accordingly ordered to stand part of the Bill.
Clause 3
Removal of designations
Question proposed, That the clause stand part of the Bill.
Alex Burghart
Clause 3 is an important accountability mechanism, which gives the Secretary of State the ability to remove an employer representative body’s designation in certain conditions. Hopefully, that will not be required, but we need to be clear on when such circumstances may arise, and ensure there is a process—
Mr Perkins
On a point of order, Mr Efford. I do not think we have dealt with new clause 3. Did we?
The Chair
The new clauses are dealt with at the end of the proceeding. So we will deal with all of the new clauses and any votes then. You will move new clause 3 formally at that stage and we will vote on it.
Alex Burghart
As I was saying, we need to be clear when such circumstances may arise and ensure that there is a process for taking appropriate action, which will be through a published notice.
The ability to remove a designation is needed for a range of important reasons, for example in the event that an employer representative body does not comply with the term or condition of their designation, or does not have regard to relevant guidance on carrying out their role. This clause helps to ensure that the employer representative body designated for an area remains representative, and capable of delivering and keeping under review a local skills improvement plan in an effective and impartial manner.
Mr Perkins
This clause is obviously necessary, given the votes that have taken place already. It outlines the circumstances in which the Secretary of State can remove the designation of an employer representative body.
It would be useful to get clarification from the Minister about the reasons why the Secretary of State would look to replace an employer representative body, such as the performance of that body; any representations made by anyone within the body, be it further education colleges or other institutions; representations by other employer representative bodies that perhaps did not consider that the body was being consistent or was properly declaring interest; or any other criteria that might require an employer representative body to be replaced.
The other real concern is that the Secretary of State has awarded himself huge powers. He will be the person who will decide who to appoint; he will be the person who approves the local plan; therefore, he becomes the person who decides whether it is right policy for Bishop Auckland, or for Bishop Stortford, or for anywhere in the country—the Secretary of State is the man who decides whether or not a plan is the right one. If he then decides, “Oh, well, I don’t really like this plan”, or, “I don’t like the way the employer representative body is carrying out its business”, he can choose to get rid of the employer representative body as well.
The Secretary of State is taking a lot of powers under the guise of devolution to set policy in individual local areas. Although we understand the purpose of the clause and do not intend to vote against it, it would be useful to hear from the Minister a little more about the criteria that will be used. It is also important for these employer representative bodies to have clarity and that it is not just a case of, “Look, if you annoy the Secretary of State, he might get rid of you”, and that instead we have a proper process and proper criteria.
Andrew Gwynne (Denton and Reddish) (Lab)
We have to legislate for the worst case scenarios as well as for the best case scenarios. Given that there is little democratic oversight, particularly outside areas with metro Mayors, in this whole process, does my hon. Friend think that we perhaps need parliamentary scrutiny of any decision that the Secretary of State makes in respect of who the representative bodies are and are not at any one particular time?
Mr Perkins
That is an important point. Obviously part of my hon. Friend’s constituency comes within the Greater Manchester Combined Authority. He and his colleagues in the Greater Manchester area have a very strong sense of the priorities for their local area. They might have worked very closely with an employer representative body and come up with a plan that they liked. However, the Secretary of State might not like that plan and might decide, “Well, I’m overruling that”’; the Secretary of State is sat there in Stratford-on-Avon, but he thinks he knows better than my hon. Friend what Greater Manchester needs. Some kind of process that just explains on what basis the Secretary of State will make these decisions would be very valuable.
This reminds me of what was happening around the time of the second coronavirus lockdown, when we know that the Government and the Secretary of State were very angry with Andy Burnham, the Mayor of Greater Manchester, for not complying with their strict demands and edicts. If it was an employer representative body that was angering the Secretary of State, goodness knows whether or not he would cite this clause and say, “Well, we’ll have to get rid of you, because you haven’t done what we said”.
When the Secretary of State awards himself such powers—and we understand that there is a need to put in place a clause to replace ERBs, on occasion—some kind of parliamentary scrutiny is needed of those concerns and the desire to remove the designation.
It would be useful to hear more from the Minister about how that process will take place. Who will be able to make representations around the replacement of an ERB? What weight will be given to the representations of alternative employer representative bodies, FE colleges and independent training providers? The worry is that the plans may mean that independent providers that play an important role in individual sectors are overlooked and are not seen within the employer representative bodies or the local skills improvements plans. Who will be able to make representations on all that, and what level of scrutiny will there be? Those are important questions, and we look forward to the Minister assuring us on those matters.
Alex Burghart
I have listened carefully to the hon. Member for Chesterfield, and I refer him to clause 3. The Secretary of State will set out terms and conditions for each employer representative body, and those terms and conditions will be public. Statutory guidance to govern how employer representative bodies behave will also be public. In the event that a Secretary of State wishes to remove the designation of an ERB, he or she will have to do so in writing. Under the terms of clause 3(3)(a), he or she will have to
“include reasons for the removal of the designation”.
Obviously, the Secretary of State is accountable to Parliament. I imagine that there would be further urgent questions on the matter, and that Select Committees might want to look into it. I believe that our mechanisms for parliamentary accountability are sound and good—particularly when they are overseen by noble Chairs such as yourself, Mr Efford. With that, I resume my seat.
Question put and agreed to.
Clause 3 accordingly ordered to stand part of the Bill.
Clause 4
Interpretation
Amendments made: 11, in clause 4, page 5, line 35, after “institution” insert “in England”.
Amendments 11, 12, 13 and 14 ensure that a relevant provider, to whom the duties in clause 1(4) apply, must be in England. This amendment ensures that, for an institution within the further education sector to be a relevant provider, it must be in England.
12, in clause 4, page 5, line 38, leave out “a” and insert “an English”.
See the explanatory statement for Amendment 11. This amendment ensures that a higher education provider will be a relevant provider only if it is an English higher education provider.
13, in clause 4, page 5, line 40, after “provider” insert
“whose activities, so far as they relate to the provision of post-16 technical education or training, are carried on, or partly carried on, in England”.
See the explanatory statement for Amendment 11. This amendment ensures that an independent training provider is a relevant provider only if the provider’s activities that relate to providing post-16 technical education or training are carried on, or partly carried on, in England.
14, in clause 4, page 5, line 41, at end insert “in England”.
See the explanatory statement for Amendment 11. This amendment ensures that the only schools that can be relevant providers by virtue of regulations under clause 4 are schools in England.
15, in clause 4, page 6, line 9, leave out “in respect of which amounts are”
and insert
“funded, wholly or partly, by amounts”.
This amendment, together with Amendments 16 and 17, ensure that education or training is treated as English-funded where amounts are paid directly to providers of the education or training in accordance with regulations made by the Secretary of State (as, for example, where payments are made by the Student Loans Company).
16, in clause 4, page 6, line 10, leave out “by the Secretary of State”.
See the explanatory statement for Amendment 15.
17, in clause 4, page 6, line 11, after “made” insert
“by the Secretary of State”.—(Alex Burghart.)
See the explanatory statement for Amendment 15.
Question proposed, That the clause, as amended, stand part of the Bill.
Alex Burghart
Clause 4 is important in providing clarity as to the providers who will be subject to the duties relating to local skills improvement plans and the employer representative bodies eligible to be designated to lead them. It also gives the Secretary of State the ability, through regulations, to include additional providers.
The clause enables the Secretary of State to specify further types of providers that deliver English-funded post-16 technical education and training in England to be encompassed in the future. However, those regulations would be subject to annulment in pursuance of a resolution in either House of Parliament. I hope members of the Committee agree that this is an important aspect of the LSIP provisions.
Mr Perkins
We are moving at such breakneck speed, Mr Efford, it is hard to keep track.
The clause is an interpretation clause, clarifying what is meant by the various terms of eligible body, employer, training provider and so on. We have no reason to vote against it. Amendments 11 to 17 have just been made. It would be useful if the Minister could inform the Committee what the consequence of the proposals on local skills improvement plans will be for the Barnett consequentials. How may they be considered by the Scottish Government, Welsh Assembly and Northern Irish Assembly?
Alex Burghart
I thank the hon. Gentleman for his support for the clause. My understanding is that there are no Barnett consequentials as a result of this measure. If that turns out to be incorrect, I will let him know at the first available opportunity.
Mr Perkins
Given the amount of money that is being spent on local skills improvement plans and the initial budgets towards the trailblazer, I am slightly surprised to learn that there is no equivalent expectation for Scotland, Wales and Northern Ireland. I will take the answer that the Minister has given me as the one that will stand for now, and forever into the future, unless I hear otherwise.
Question put and agreed to.
Clause 4, as amended, accordingly ordered to stand part of the Bill.
Clause 5
Institutions in England within the further education sector: local needs
Question proposed, That the clause stand part of the Bill.
Alex Burghart
There is strong agreement on the importance of the provision of high-quality technical education and training that is responsive to local needs. For many colleges, the delivery of technical education is a key part of a wider curriculum that responds to different local needs.
The wider curriculum can include, for example, academic provision for students hoping to move on to university, English or maths provision for adults, or high-needs provision for learners with an education, health and care plan. Colleges also need to deliver other functions that support education delivery, such as careers education and advice, support for students with special educational needs and pastoral support.
We will only achieve our goal of provision that is responsive to local needs where there is effective strategic curriculum planning within every college. Such curriculum planning needs to reflect both the priorities set out in the local skills improvement plan, and the needs of different groups of learners.
The clause therefore places a duty on governing bodies of institutions within the further education sector to periodically review their provision against local needs and to consider changes that might improve the way those needs are met. The duty applies to further education and sixth-form colleges, and to institutions designated under section 28 of the Further and Higher Education Act 1992. That reflects the importance of those institutions in many local communities and the breadth of their curriculum offer.
In carrying out the review, the governing body must have regard to any guidance issued by the Secretary of State. A draft of the statutory guidance has been published by the Department. The guidance sets out the principles that should be followed when carrying out reviews and how reviews should be conducted, including working with different stakeholders and other governing bodies.
While the new duty builds on the existing good practice within the sector, there are also cases where improvement is required. That might include, for example, cases where intense local rivalries have led institutions to prioritise the needs of one group of learners over another, even if that is at the expense of learners in the local area as a whole. By putting in place a legal duty requiring reviews to be published, we are strengthening transparency and accountability around decisions on provision that are vital for local communities. When carrying out reviews, colleges will need to be mindful of their other relevant statutory obligations, including those in relation to learners with special educational needs and disabilities.
The clause strengthens the legal framework in which colleges, working both individually and in collaboration with each other, regularly review their provision to identify how it can be improved. That will help to deliver more responsive further education provision and will benefit local communities in all parts of England.
Mr Perkins
Clause 5 sets out the duty for institutions such as colleges to review provision in relation to local needs. The review must be published on the institution’s website and must be conducted in line with the Secretary of State’s guidance. The Opposition do not propose to divide the Committee on the clause. I am grateful to hear from the Minister specific mention of special needs. He will be aware that we are very concerned that that area should be reflected in local skills improvement plans, so I appreciate his reference to it. It is important to ensure that the review takes into account local circumstances and has the broadest possible base. We support the clause.
Question put and agreed to.
Clause 5 accordingly ordered to stand part of the Bill.
Clause 6
Functions of the Institute: oversight etc
Mr Perkins
I beg to move amendment 32, in clause 6, page 7, line 23, at end insert—
“(2A) The Institute shall perform a review of the operation of the apprenticeship levy, paying particular regard to ensuring that sufficient apprenticeships at level 3 and below are available.”.
This amendment would require the Institute to perform a review of the operation of the apprenticeship levy, and would require the Institute to pay particular regard to ensuring that sufficient apprenticeships at level 3 and below are available.
The debate on this amendment is the only opportunity that the Committee will get to talk about apprenticeships in the skills Bill, and that is pretty remarkable. The amendment would require the institute to perform a review of the operation of the apprenticeship levy and to pay particular regard to ensuring that sufficient apprenticeships at level 3 and below are available. Apprenticeships are the gold standard in vocational opportunity. Every single one of us is aware of apprenticeship providers and employers that have excellent apprenticeship programmes in our constituencies, and we have met people whose lives have been changed by their apprenticeships. However, we also know that for many of our constituents—particularly our younger constituents—apprenticeships remain elusive. There are far fewer apprenticeship opportunities than there should be.
A Labour Government will be committed to increasing the number of apprenticeship opportunities and addressing the calamitous collapse in new apprenticeship starts at levels 2 and 3. We will promote apprenticeships as the No. 1 vocational opportunity for young people who are not attending university, and we will seek funding for them ahead of schemes such as kickstart, which is more costly and less well defined, demands less commitment from employers and makes less impact on learners. It is a vivid demonstration of the Government’s complete failure to address key issues that while they preside over their failure on apprenticeships, they introduce a skills Bill that almost entirely fails to touch on the reform needed to salvage these crucial career opportunities.
Andrew Gwynne
I am grateful to my hon. Friend for raising this important point, because it is, quite frankly, flabbergasting that in a skills Bill there is very little mention—in fact, almost none—of apprenticeships. For so many, apprenticeships could be the route to developing the skills for the jobs of the future. When I talk to local employers, they now appear to be using the apprenticeship levy funding to upskill their own workforces, rather than using the money to skill up the next generation.
Mr Perkins
Absolutely, and that speaks to the heart of the amendment. The apprenticeship levy has, remarkably, led to a steep decline in those aged under 25 taking on entry-level apprenticeships. In fact, it must be the first policy—well, that is probably not true, but certainly it is one policy—that set out with a particular objective, only to achieve the polar opposite. We have an apprenticeship policy that has drastically reduced the number of apprenticeship opportunities, and it is worth reflecting for a moment on the scale of that failure.
Kim Johnson
My hon. Friend makes some important points about apprenticeships and the fact that the number of them has reduced. Does he agree that some of that is down to the lack of information and career guidance available in schools for many of our young people?
Mr Perkins
I absolutely agree. There are a huge number of causes, but my hon. Friend is right that one is the abandonment of careers guidance that happened in 2010, when this Government came to power and scrapped Connexions—got rid of many of those—and the statutory responsibility for careers guidance.
To give a scintilla of credit to the Government, they have at least realised to an extent that the decision made back in 2010 was catastrophic and made an attempt to rebuild some kind of careers service. We have many criticisms of their approach, but at least there is a recognition that simply getting rid of face-to-face careers guidance and going towards a purely online service was disastrous. My hon. Friend the Member for Liverpool, Riverside is absolutely right about the number of people not doing apprenticeships. We will have an opportunity later in proceedings to discuss careers guidance in more detail—it is a priority for the Labour party.
Without in any way undermining what my hon. Friend said, it is also important to make the point that there is a real shortage of opportunities out there; it is not purely that people do not want apprenticeships. I went to a training academy for construction on the south coast and I was told, interestingly, that there were about 100 applicants for every one of its apprenticeship opportunities. In an area with relatively low levels of unemployment, kids are still fighting to get hold of those opportunities. They recognise the value of apprenticeships. The importance of promoting apprenticeships is a strong point to make, but there is also a huge amount more to be done on supply.
To return to what I was saying a moment ago, it is important to understand the scale of the collapse in the number of apprenticeships. The number of apprenticeships going to 19 to 24-year-olds declined from 142,200 in 2016-17 right down to 95,500 in 2019-20, so there was a fall of almost 33% over that period. The levy was supposed to boost employer investment in training—my hon. Friend the Member for Denton and Reddish was in this place when the apprenticeship levy was announced, and he will remember that we were all told it would boost the amount that employers would invest in training—but that has declined, with £2.3 billion less spent in 2019 than in 2017.
The current funding arrangement particularly fails small businesses, which are a real priority for the Labour party. Especially in communities such as Chesterfield, small businesses are the prevalent providers of employment, and the fact that they have been shut out of the apprenticeship regime so dramatically with the introduction of the levy has had a massive impact. In 2016, 11% of businesses with less than 50 employees had apprentices in their organisation. I think 11% was probably not enough, but it was something. By 2019, there had been a 20% reduction in the number of small businesses with apprenticeships.
It is no wonder that the Chartered Institute of Personnel and Development described the apprenticeship levy as having “failed on every measure”. It says that the levy will continue to
“undermine investment in skills and economic recovery without significant reform”.
Where is the opportunity to provide significant reform to apprenticeships and the apprenticeship levy, if not through a skills Bill? Yet the Government have chosen to leave apprenticeships out of it. Where is the reform? What are the Government doing about this failure, and do they even acknowledge that it exists? The starting point for addressing a problem is to accept that there is one. We have been forced to shoehorn an amendment into this skills Bill in order to even talk about apprenticeships.
Let us take construction as an example. The Construction Industry Training Board estimates that we need 217,000 new entrants to construction by 2025 to prevent growth from being slowed. The Government have for 11 years presided over a low-growth, high-taxation economy. Without an increase in the construction workforce, that growth will continue to be stilted.
Andy Carter (Warrington South) (Con)
The hon. Gentleman seems to have forgotten that up to 2019, this country had the highest level of employment in history. He is being very selective with the information he is providing.
Mr Perkins
The hon. Member talks about high levels of employment, but I have people in my constituency who are doing three jobs at once and still cannot pay their bills. The truth is that under this Government, we have a low-wage, low-growth economy. People are paying the highest level of taxes since the 1950s. He might not think it makes much sense, but to people in my constituency it absolutely does.
The Chair
Order. The interventions are straying a little bit away from the amendment. I would be grateful if we could return to the subject of the amendment, exciting though that exchange was.
Tahir Ali (Birmingham, Hall Green) (Lab)
Compare high unemployment with the youth unemployment in core cities. The opportunities and pathways available to those young people are almost non-existent. Where local authorities, such as Birmingham, have worked tremendously hard to bring down youth unemployment, it has been reversed as a direct result of the actions taken by Government. In Birmingham, for example—
The Chair
Order. Interventions should be a lot shorter than that. I am sorry to interrupt the hon. Gentleman, but we must keep to the point. I will allow him one sentence to finish his intervention, then we will go back to Toby Perkins.
Mr Perkins
Absolutely, and I thank my hon. Friend for that point. It is precisely the motivation behind the amendment, which we will get the opportunity to vote on. I think his point is incredibly important. Many young people in cities such as Birmingham look at the future and find that jobs are very thin on the ground. Even thinner on the ground are careers, rather than jobs. I am talking about opportunities to develop skills and get involved in a long-term career, as opposed to a casual job where they go to work, come home and are still living in poverty. That is why skills are so important, and why this investment is so important.
Brendan Clarke-Smith (Bassetlaw) (Con)
I thank the hon. Gentleman for being so generous with his time. To go back to a point that has been made in previous interventions, does he recognise that although getting younger people into employment will always be an issue, the fact that this country’s rates are so low compared with those of many of our neighbours on the continent, such as Spain and Italy, represents a roaring success story?
The Chair
Order. I will not allow you to answer that, Mr Perkins, because it takes us wide of the issue, which is the review of the levy and ensuring that there are sufficient apprenticeships. Can we get back to the amendment?
Mr Perkins
I appreciate your iron grip on the debate, Mr Efford. I will confine my contribution to the amendment, as I was doing before I was so rudely interrupted. There is a link between youth unemployment and apprenticeships, and it is precisely that link that the amendment, which I tabled with my hon. Friend the Member for Warwick and Leamington, seeks to address. The current funding arrangements are failing small organisations. It is important that the Government acknowledge that and take steps to recognise that problems exist. We are not seeing anything that suggests that they realise that there is a problem with the apprenticeship levy.
Lia Nici (Great Grimsby) (Con)
Does the hon. Gentleman not see some irony in his speech? The reason why the Bill introduces LSIPs, and so on, is that we want employers to take control and understand more about apprenticeships, because there are lots of jobs and apprenticeships available, unlike when Labour was last in Government and we had 25% youth unemployment.
Mr Perkins
I do not see a lot of irony in my speech, but I saw quite a bit in the hon. Lady’s intervention. The truth is that we have had 11 years of a Government that told us that every single reform that they took was about putting employers in charge, and yet, at the same time, apprenticeships have fallen. I will not repeat the figures.
Mr Perkins
Let me destroy the intervention that we have just had before I take another. If we accept that there is real value in apprenticeships, surely—given the fall in the number of apprenticeships, and the 11 years of reforms intended to put employers in the driving seat—anyone would think that continuing to do something that keeps failing is the definition of insanity. That is why we have tabled amendments to address that.
Lia Nici
I extend an open welcome to the hon. Gentleman to join a meeting of the apprenticeship diversity champions network, where we have more than 100 employers—more are joining—who are doing fantastic things with apprenticeships. I assure him that he will be able to hear lots of positive stories from them.
Mr Perkins
I would be delighted to attend that, and I look forward to receiving the invitation. I have already seen many examples of great apprenticeship programmes. I do not for a second decry those that exist, and I always enjoy seeing employers, in my constituency and elsewhere, who offer good apprenticeship programmes. It is because I recognise their value that I am so angry that apprenticeship starts have fallen from 494,000 in 2016 to 322,000.
One of the things that really concern me about the Government is that they operate by anecdote. They see something great, and it convinces them that everything is all right with the world. Actually, although there are superb apprenticeship programmes around and a lot of employers are committed to them, overall the numbers are going down. The number of them at levels 2 and 3 is going down. The number of small businesses offering apprenticeships is going down. The availability of apprenticeships in crucial sectors such as construction is going down, and so is the availability of people to get on to them, particularly in smaller towns that do not have major employers. That is what we are trying to address with amendment 32.
Matt Western
My hon. Friend is making, as ever, some very important and powerful points. The wording of the amendment is very simple and, I would have thought, pretty honest and straightforward. It is about better governance and better operation of any attempt to improve skills delivery in education and across our economy. The amendment simply says:
“The Institute shall perform a review of the operation of the apprenticeship levy”.
I have spoken to many businesses in my constituency and elsewhere, and they are really concerned. They see the apprenticeship levy as having simply become a tax on business, with £250 million returned to the Treasury in 2020-21 and £330 million in 2019-20. Does my hon. Friend share my concerns?
Mr Perkins
I absolutely do, which is probably why I teamed up with my hon. Friend to table the amendment. He is absolutely right. We do not oppose the apprenticeship levy, but it is really important that we explore the point he has made. The apprenticeship levy is a significant tax and it falls on 2% of all businesses, as the former Chancellor George Osborne told us when he announced it. At the same time, he completely withdrew the Government’s own funding for apprenticeships and replaced it with this funding.
George Osborne did something unique: he created a tax that businesses get to decide how to spend. When we send a cheque or BACS payment for road tax, as all drivers do, we do not do so with an accompanying list of the potholes that we want to be repaired. When we pay our overall road tax, we get to drive and the Government and councils decide which potholes will be fixed and which road improvement programmes will be carried out. What happened here, however, is that the Government isolated a tiny fraction of all employers and said, “You’re paying this tax. This is the only contribution to apprenticeships that is going to be made and you get to decide what it is spent on.” All the other 98% of businesses, which are not levy payers, therefore have no funding for apprenticeships.
It is hardly surprising that we have seen a dramatic collapse in the number of small businesses that are able to offer apprenticeships, because they have been excluded from the system. They heard a very powerful message back in 2015: apprenticeships are something that big businesses do, and they are not for small businesses any more. All kinds of measures were put in place, in terms of the bureaucracy around apprenticeships, and that really reduced the opportunities available. Many small businesses that had up until then been successfully involved in apprenticeships got the message and got out of that environment.
Matt Western
That is the point. I am sure it was not by design that the money got lost in the Treasury, but it is a real tragedy that the money intended for delivering apprenticeships to small businesses has been lost. Therefore, the really important parts of our economy—the small businesses that might be working in our supply chains, our service sectors or whatever—are not getting the money they need in order to train the next generation.
Mr Perkins
My hon. Friend is absolutely right. Regardless of whether it was by design or not, it was absolutely foreseeable that that was what would happen, and many such criticisms were made at the time. The reality is that the Government set up the apprenticeship regime on the basis of successful programmes at organisations such as BAE Systems and Rolls-Royce. They thought, “That is what we want for everyone,” so they created an apprenticeship regime that was designed around major businesses, without recognising that those major businesses are simply not available in many of our constituencies. If young people in my constituency wanted to do an apprenticeship, they were doing it at their local hairdressers, construction firms or other small businesses. A successful regime would support small businesses in accessing apprenticeships in the same way as large businesses. The Government need to recognise that the scheme’s bureaucracy is simply pushing businesses away and preventing them from taking part unless they have large training, HR and personnel departments.
I have a level 3 apprentice in my office. MPs’ offices are effectively small businesses, with very small numbers of people working in them, and that apprenticeship involves significant bureaucratic requirements. A very helpful independent training provider is supporting me on that apprenticeship programme and has worked through the paperwork with me, but high-quality apprenticeships should not have to be linked to bureaucracy and funding arrangements that drive small businesses away.
There is one legitimate question that has not yet been asked by the Government, but I will save them from having to do so by asking it myself. They talk about reform, but what should that reform look like? We want an apprenticeship regime that supports access for small businesses, ensures quality, and recognises that the majority of the apprenticeship levy should be spent on level 2 and level 3 apprenticeships. There is absolutely a role for degree apprenticeships—for people who aspire to get level 6 qualifications—but that should be about a journey, not organisations doing what they are currently doing in many cases, which is saying, “We’ve got this levy. What are we going to spend it on? Well, we’ll let the finance director do his MBA—he’s always fancied that.” That is what apprenticeship funding is currently being used for in so many cases. I am never going to advocate against continuous professional development—of course it is important—but it is also really important to recognise that that is what is happening, and that it needs to be addressed.
The amount of money going back to the Treasury is actually worse than the figures given by my hon. Friend the Member for Warwick and Leamington. During the back end of this year, we got an answer to a parliamentary question showing that last year a total of £2 billion of apprenticeship levy funding had been sent back to the Treasury unspent. A huge amount of this funding is not being spent, which to me is the very definition of a failing system.
Matt Western
I thank my hon. Friend for giving way; he is being very generous with his time. Regarding that £2 billion figure he has just cited and his earlier point about the construction industry, surely the amendment’s proposed review could give direction for the delivery of courses. For example, the construction sector needs to undertake recladding exercises up and down the country, and ensure that they are delivered on time.
Mr Perkins
Absolutely: construction is a great example. As I have said, there are 217,000 too few construction workers. Anyone who has tried to get serious construction work done at their house—an extension or similar—will know how tough it is to find a builder who has time to do it. Our country is losing huge amounts of growth and we are also facing a housing and homelessness crisis, because we simply do not have enough workers in the construction industry. It is incredibly important that these issues are addressed.
We would have liked to propose more specific reforms to the apprenticeship levy. More specific amendments would have sought to rectify years of neglect by this Government, particularly of SMEs and sectors that are crying out for a pipeline of apprenticeships. However, we were told that such reforms were outside the scope of the Bill. Nevertheless, we are proposing that the IATE introduces a review of the current operation of the levy, particularly in relation to ensuring that sufficient opportunities are available at level 3 and below. That is essential to ensuring that opportunities exist for young people who are seeking to step on to the first rung on the ladder, as well as adults who are seeking to retrain, particularly in sectors such as care and others that I have referred to. It is vital that levy funds are used to train up the next generation.
Within the scope of what already exists, the Government are attempting to do things that I think are positive, supporting businesses that pay the levy to allow their supply chain to use those funds, thereby benefiting more small businesses. However, this is still about trying to correct a wrong that was there in the first place: a better apprenticeship reform would be about making sure that more of that funding actually goes to small businesses and is used in every single community in the land. It would be about more people doing level 2 and level 3 apprenticeships, more opportunities for 16 to 19-year-olds, and the careers regime that my hon. Friend the Member for Warwick and Leamington referred to, which would give young people opportunities early in their school career to follow the apprenticeship path. It would allow young people to go into a level 2 apprenticeship at the age of 16 and to work their way through to a degree at 25 or 26, after having been paid all the way there. That is the kind of future that a Labour Government would get us to.
Andrew Gwynne
It is a pleasure to serve again under your chairmanship, Mr Efford. I rise to support the Opposition amendment—a modest amendment that simply asks for a review of the apprenticeship levy, paying particular regard to ensuring that sufficient apprenticeships at level 3 and below are available. This is really important. My hon. Friend the Member for Chesterfield has set out in great detail why we believe the apprenticeship levy is not working in the way in which the Government promised. The intention of the apprenticeship levy is a good one, but the practice of it in our constituencies is not working. We can see that in all the data and all the facts that my hon. Friend has laid out. The professional bodies responsible for training also support that view.
If the Minister has not already read the House of Lords Youth Unemployment Committee report, I encourage him to do so because it is very clear about the failings of the levy and the negative impact it has had on apprenticeship opportunities for younger people. It acknowledges that there has been an increase in higher-level apprenticeships, which is good, but drilling down into the data we see what the Opposition have already outlined—employers ensuring that their existing workforce are trained up to higher levels. That is good, and continuous improvement in the workplace is something we should support, but I do not believe the apprenticeship levy should pay for something that has always been paid for by employers. It goes against the ethos of the apprenticeship levy. Why do I speak so passionately about apprenticeships? I want to take the Committee back to 1990 when we had a Tory Government. We were in the 11th year of Baroness Thatcher’s premiership.
Andrew Gwynne
I know how to warm up a Committee. It was also the year that 16-year-old Andrew Gwynne left Egerton Park High School in Denton with a clutch of good GCSEs, but I did not know what I wanted to do. All I knew was that I did not want to go to college, so I took the rather unusual decision, given how it was painted at the time, of applying to go on youth training, the successor to the old YTS—the youth training scheme. I was very fortunate in the opportunity that youth training gave me. As I say, I had a clutch of good GCSEs and could have gone on to study A-levels, but I did not want to do that. I wanted to go down the vocational route.
I had to have a job interview at ICL—International Computers Ltd, now part of Fujitsu—in West Gorton in Manchester. I got my new suit from Burton and got on the 210 bus, nervous as anything. I had my job interview and got the two-year placement. When I think of the real responsibilities that they gave that 16 to 18-year-old, I look back in horror because I am not sure that I would have given 16 to 18-year-old Andrew Gwynne those opportunities—[Interruption.] I can see you staring at me from the Chair, Mr Efford—I do not think you would have given 16 to 18-year-old Andrew Gwynne those responsibilities either.
Alex Burghart
I could listen to that all day. What a heart-warming story of great education and training achievement under a Conservative Government. Although I do not agree with all the detail given by Opposition Members, I echo their sentiment. We all care deeply about apprenticeships, and the good news is that we will get more of them, because the Chancellor committed to spending a great deal more money on apprenticeships, taking their budget to £2.7 billion a year by the end of the spending review period.
I am pleased that the amendment was tabled because it gives us an opportunity to go over some of this ground and talk about the great work that we have been doing on apprenticeships. Alas, we lack the time to go into all the detail raised by the Opposition, but I remind them that although there have been changes in the numbers of people doing apprenticeships, that has happened for a reason. It has happened because when the coalition came to power, there was a need to review the quality of apprenticeships in our country. The Richard review—a famous and widely respected review—found that apprenticeships were not giving employers the skills that they needed, and that one fifth of apprentices reported receiving no training and one third of apprentices did not know that they were on an apprenticeship. That is why we decided to go for quality, and that quality is now paying off.
I was lucky enough to be at the national apprenticeships awards last night—I was sorry not to see Opposition Members there—and it was a fantastic evening. We saw many people—some young; some not so young—who were doing apprenticeships at all levels, and fantastic employers, from big companies and small schools to the Royal Navy, which is a fantastic provider of apprenticeships at all levels. It was a real celebration of the new landscape of high-quality apprenticeships to provide young people, and not so young people, with the skills that employers need.
I recognise the points made by the Opposition about level 2 and level 3 apprenticeships, of which I also want to see more. However, in 2020 and 2021, those levels made up 69% of apprenticeship starts. The majority of employer-designed standards are still at levels 2 and 3—345 out of 630.
It has been this Government, during the pandemic, who have paid employers and providers £1,000 when they take on apprenticeships for young people aged 16 to 18. More than 80% of 16 to 18-year-olds were participating in education or an apprenticeship at the end of 2020, the highest number on record.
More than one third of apprenticeship employers are still SMEs. We will see that number increase as the excellent levy transfer scheme continues to go great guns. Already millions of pounds are being transferred by large employers to smaller employers in their supply chains and beyond. Some of the case studies I have seen so far are wonderful. I do not know whether they are in the public domain, so I cannot talk about them, but we are seeing providers pass their money on in really creative and interesting ways.
We must almost remember that 95% of the costs of training and assessment for smaller employers are still covered. The figure is 100% for the smallest employers who are taking on young people.
Mr Perkins
Someone listening to the hon. Gentleman who did not know about the subject might well think that he was talking about a record of success. The figures that I have referred to, and which the CIPD described as having “failed on every measure”, are the reality of apprenticeships. It is one thing for the Government to say there is a problem here and they are seeking to address it, but the Minister seems to be talking as though everything is going well as the result of this policy. Is there any sense that this Government believe that the levy needs reform or that there is anything they are going to do to increase the number of opportunities for young people?
Alex Burghart
We are increasing the number of opportunities. We got an excellent settlement in the spending review. We are going to have more apprentices at every single level. This is a Government who believe in apprenticeships, who back them and who put their money where their mouth is. Listening to Opposition Members, one could be forgiven for thinking that apprenticeships in this country were worthless. That is not a picture I recognise. It is not a picture that providers I meet recognise. It is not a picture that the apprentices I meet recognise.
Matt Western
No Opposition Member has said that apprenticeships are worthless—quite the opposite. We really value them. I think the frustration is that businesses are saying that the system is not working, whether that is large businesses paying in and not getting any return, or the smaller businesses not getting any gain. The money seems to be being lost to the Treasury, as my hon. Friend the Member for Chesterfield said.
Alex Burghart
If the hon. Gentleman had been at the awards ceremony last night, he would have struggled to find any provider saying that they were not getting any gain from the scheme, which is what he has implied—in fact, not implied; it is what he said explicitly. Equally, the small and medium-sized employers who were there were getting a great deal of gain from it. The people who are on the apprenticeship schemes are getting a great deal of gain. Where we absolutely agree is that there is a need for more apprenticeships. This Government are going to provide more apprenticeships. We have already provided more apprenticeships at a higher quality than we have ever had before. We are going to see that continue.
Matt Western
Just to be clear, I do not think I implied that at all. What I am saying is that, speaking to businesses, including some major businesses in and around my constituency that I talk to regularly, as I do with Warwickshire College, one of the largest colleges in the country, they have been saying that, while the programme is good and the apprenticeship levy had good intent, it is not working. That is why we tabled the amendment. We want to be constructive and help the Government make it work better.
Sadly, I was not invited to the awards last night. I will check my email, but I do not believe I was. I very much look forward to coming next year.
Alex Burghart
I very much hope that the hon. Gentleman is invited next year. I look forward to seeing him.
Alex Burghart
The hon. Member for Birmingham, Hall Green suggests I take the hon. Member for Warwick and Leamington as my guest. I was myself a guest. I am sure those organising will have heard his appeal for a ticket.
We want more apprenticeships. We have a great many fantastic employers in this country, providing wonderful opportunities for people at all levels at the moment. We are going to see that increase under the commitment that the Government have made. It is for the Government to consider when might be the right time for a review of apprenticeship reforms, through consultation with stakeholders. For now, we want to focus on improvements to apprenticeships to make them attractive to employers in more sectors. We want to focus on making apprenticeships relevant in new and changing occupations, and on improving quality.
Mr Perkins
That was a very disappointing contribution. To describe the Labour party’s view—that apprenticeships are the gold standard—as that we think apprenticeships are worthless, is beneath the Minister. I hope he will reflect on that. We absolutely do not think they are worthless; we think they should remain the No. 1 opportunity. We think far more young people who are not going to university should be going on to apprenticeships; we think that far more people who are going on to apprenticeships should use those as a vehicle towards university. We see them as one of the most important ways of tackling social mobility—they are a huge priority for us. It is precisely because they are a priority that we are so frustrated with this Government’s failure. I do not recognise the way the Minister represented the Opposition’s opinions on this.
I will return to the point that independent organisations, such as the CIPD, have described the apprenticeship levy as having failed on every measure. Everyone will have heard that we have a Government with no intention to reform the levy. If young people want more opportunities, if they want a Government that will invest more in 2025 than they did in 2015, which this Government will not be doing—even by 2025 they will not reach the amount that was contributed toward apprenticeships in 2015—and if young people want a Government that will change that, they will have to vote Labour. That is the message that is coming out of this debate today. There is one party that believes the apprenticeship levy could be a route to reforming and creating opportunities for young people, and one party that thinks that the apprenticeship levy is working just fine the way it is. That is what this next vote is all about.
Question put, That the amendment be made.
Skills and Post-16 Education Bill [ Lords ] (Fourth sitting)
Thursday 2nd December 2021
(3 years ago)
Public Bill CommitteesRead 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 Amendment Paper: Public Bill Committee Amendments as at 2 December 2021 - (2 Dec 2021)
The Committee divided: - Ayes: 9 / Noes: 6 - Question accordingly agreed to.
The Committee divided: - Ayes: 9 / Noes: 6 - Question accordingly agreed to.
The Committee divided: - Ayes: 6 / Noes: 9 - Question accordingly negatived.
The Parliamentary Under-Secretary of State for Education (Alex Burghart)
It is good to be back, as we cross the halfway point in Committee proceedings for the Bill. Clause 6 provides an important oversight duty for the Institute for Apprenticeships and Technical Education. It will ensure the overall coherence of the system of technical education and training, and will help to ensure that we have the right balance of provision to meet the skills needs of the economy. That includes apprenticeships, technical qualifications and other types of technical education, and training across all 15 technical routes.
Those routes underpin the institute’s occupational maps. They are the groupings for occupations in relation to which apprenticeships and technical education might be approved by the institute. Routes include hospitality and catering, construction, creative and design. The clause places a duty on the institute to keep under review the technical education and training within its remit and, through that review, to consider the impact of its activity on the range and sufficiency of that technical education and training. That means that different types of technical education, such as apprenticeships and qualifications at different levels, will not be looked at in isolation.
The institute will consider whether there is anything further within its powers that should be done, or that should be done differently, to safeguard the coherence and sufficiency of the technical education and training in its remit. The institute may provide the Secretary of State for Education with reports on the range and availability of apprenticeships, qualifications and other technical education and training in the system, raising any matters that arise during its review.
In addition, the clause brings into the institute’s remit other technical education and training that supports entry to occupations that are published by the institute in its occupational maps. That will allow the institute to play a role where education and training links to employer-led standards but does not lead to a qualification—for example, traineeships and skills bootcamps. That role might include, for example, advising or publishing guidance to support alignment with employer-led standards.
Aligning that type of provision to standards, where it is appropriate to do so, will create a joined-up system. It will benefit learners by supporting progression into skilled jobs, as well as further technical training. The institute is best placed to have oversight of the system as a whole because it has oversight of the occupational maps that bring together the occupations for which technical education is appropriate. It guarantees that the employer voice is at the heart of our skills system.
Mr Toby Perkins (Chesterfield) (Lab)
We do not oppose clause 6. We tabled amendments on apprenticeships, but we are not opposed to the role of the institute in itself. It was an interesting debate, with some really valuable contributions from some of my colleagues. We also had another Conservative who enjoyed himself at a party, and another lesson about the importance of who we invite to our parties. It was very much in keeping with the debates of this week, but we do not oppose the clause.
Question put and agreed to.
Clause 6 accordingly ordered to stand part of the Bill.
Clause 7
Additional powers to approve technical education qualifications
Mr Perkins
I beg to move amendment 47, in clause 7, page 10, line 37, at end insert—
“(2A) Notwithstanding the provision in subsection (2), the Secretary of State will appoint by regulations a body other than the Institute to withdraw approval of a technical education qualification at Level 3.”
This amendment requires the Secretary of State to appoint an alternative body to the Institute to approve the withdrawal of technical education qualifications at Level 3.
The Chair
With this it will be convenient to discuss amendment 48, in clause 7, page 11, line 19, at end insert—
“(10) The Secretary of State must publish criteria to define what is meant by ‘high quality qualifications’, which can be used as a framework for future deliberations about any defunding of qualifications.
(11) Any future defunding of qualifications must be reviewed by an appointed independent panel of experts, against the criteria set out in subsection (10).
(12) The Secretary of State must publish the proposed list of Level 3 vocational and technical qualifications which are proposed to be defunded, based on the criteria as set out in subsection (10), within 3 months of this Act receiving royal assent.”
This amendment would require the Secretary of State to publish the criteria for what they consider to be high quality qualifications worth funding and to set up an independent panel to determine this.
Mr Perkins
The Government have decided to continue with Ofqual as a regulator of academic qualifications in England, and new powers are granted in the Bill to the institute to approve technical qualifications in the future. It is vital that both public bodies have the necessary statutory underpinning to carry out their roles effectively, and to ensure that there is no conflict of interest. We consider that the clause is insufficient, as it does not clearly define the roles of Ofqual and the institute in law to ensure a single regulatory framework, where all qualifications are regulated and treated in exactly the same way.
The Bill proposes a two-tier system of regulatory approval for qualifications, with Ofqual approving and regulating academic qualifications and the Institute for Apprenticeships and Technical Education approving technical qualifications. We are worried that that may reinforce the apparent low public confidence in technical qualifications. Ensuring that technical qualifications have parity of esteem with academic ones has been a challenge for successive Governments, and it is precisely one of the things that T-levels set out to address. We are therefore concerned that Ofqual is established as the independent regulator for what are seen as the academic qualifications, with a different organisation for the technical qualifications. We believe that that creates an artificial divide between the two routes.
The roles to be played by Ofqual and the institute in regulating technical qualifications need to be clarified, because the Bill indicates that it will bring about a dual regulatory system. Ofqual is established as the independent regulator under the Apprenticeships, Skills, Children and Learning Act 2009. That legislation introduced an independent regulator following a period of scandals and instability in the regulation of the qualifications and examination system.
There are worries that the Bill will introduce material conflicts of interest, because the institute will be the owner and provider of T-levels, as well as the regulator, with powers to decide which other technical qualifications might compete with T-levels and should be approved or withdrawn. For funding purposes, the organisation that owns T-levels will decide what happens to the other qualifications that exist. Our amendment seeks to address that and to give greater clarity on the different organisations and bodies.
I turn to amendment 48. It is essential for the Government to unveil what they deem to be useful qualifications before the Bill is passed. As with so much in the Bill, the Minister leaves a great deal to the imagination or to future clarification. Conservative Members have been remarkably trusting of what the Government have told them so far and have not told us a huge amount about what they think, with the honourable exception of the hon. Member for Great Grimsby. When it comes to the votes, however, we have seen that those Members are persuaded that the Minister will deal with everything later.
Amendment 48 would require a panel of experts to determine what a high-quality qualification is, ensuring that if qualifications are abolished, it will be left to those experts—working to criteria set by the Secretary of State—to understand whether that has been done because the qualifications lack the necessary qualities. There is a real concern in many people’s minds that the Government are undermining BTECs and other level 3 qualifications by setting out to defend T-levels, on which they are getting small numbers of people, and trying to get rid of all the alternatives.
If the reason for getting rid of BTECs is, as the Government say, that the qualification is not of the necessary quality, let us see the evidence for that. Let us have a team of experts look at all the factors—people’s ongoing progression routes, whether they get jobs after the qualifications, whether they can access universities and whether they are able to perform when they get to university—and let us see the criteria for establishing whether qualifications are of high quality. So far, the approach seems to have been pretty much of the back-of-a-fag-packet kind.
The Minister’s and the Secretary of State’s predecessors initially stood at the Dispatch Box and said, “We’re scrapping BTECs because they are of low quality.” Then they said, “We’re not going to get rid of them all, just some of them. We will get rid of the poor-quality ones.” We say, reasonably, “All right, but people studying those qualifications today want to know whether what they are studying is of high quality or not.”
Tahir Ali (Birmingham, Hall Green) (Lab)
Does my hon. Friend agree that a quality BTEC qualification would lead to skills and jobs? We should be focusing on BTECs, which have a good history, rather than getting rid of them and replacing them with something that is nowhere near as established.
Mr Perkins
My hon. Friend makes an important point. I know from what he said on Second Reading that this is a matter of significant personal interest to him because of his own and his son’s history with BTECs, which he outlined. I am in exactly the same position. My son did a level 2 and a level 3 BTEC, having not done particularly well in GCSEs. He subsequently went on to university, completed his bachelor’s degree and is now in the process of completing his master’s. The BTEC provided a pathway and a bridge from—not to put too strong a point on it—failure in mainstream schooling to academic success. We know that BTECs have a history of turning around the lives of people up and down the country. This needs to be handled extremely carefully before decisions are taken that undermine those qualifications.
Lia Nici (Great Grimsby) (Con)
I appreciate the hon. Gentleman allowing me to intervene. Do he and his colleagues not understand that BTEC is just a brand name of the Pearson group? Those high quality qualifications, those outcomes and those assessment criteria will go into things such as T-levels. They will just have a name change. Importantly, they will be led by employers and they will include essential work placements. We talk to members of the public about BTEC, but the only reason we do so is because BTEC is a brand name that has been out there for a very long time. Vocational and technical education will continue to be important.
Mr Perkins
What an interesting intervention. If the hon. Lady is saying that T-levels are simply a rebranding of BTECs—
Lia Nici
With respect, I did not say that. I said that BTECs are an overarching brand name. We have Cambridge Nationals, City & Guilds and so on, but what is important is the content of those qualifications. I am sure that what is of high quality in BTECs will be included in new qualifications such as T-levels.
Mr Perkins
I accept the clarification, and the hon. Lady makes an important point. If she is saying that not all level 3 qualifications are BTECs, I understand that, and I will come on to that when I speak to other amendments. There are many other important qualifications that are not BTECs, but BTECs make up the largest number of them, which is why many of us identify them in those terms. Both BTECs and T-levels are overarching brand names, if we want to put it in such terms. I have no objection to the brand names. If it is felt that T-levels will eventually be viewed with more regard by the public than BTECs—having the word “level” in them makes them sound more like a A-levels—I am fine with that, but the Government initially trashed the BTEC qualifications without telling us which ones they thought were good or bad.
Mr Perkins
If I may, I will respond to my hon. Friend, who makes an incredibly important point. Even more worrying is the fact that the Government initially went out there and said, “This qualification is broken and we are going to replace it,” but when the sector more generally—86% of respondents to their consultation—said, “This is a huge mistake”, the Government said, “Okay, we will only get rid of some of it, not all of it.” When we ask which bit they will get rid of, they say, “The low-quality bit,” but when we ask which bit that is, they say, “We do not know; we are going to do a review.” That is no way to do policy. It needs to be done the other way around. Identify which of the qualifications are not working, do all the research, find out where people are not getting on to the courses and then start talking about why we are getting rid of the qualifications.
Mr Perkins
That is an important point, and the amendment seeks to push the Government on it. They need to identify what those high-quality qualifications are, and quickly.
This is a point of real importance. The Government have started to undermine BTEC qualifications. It makes me genuinely angry, because people are studying for those qualifications now, and they are being told, “That thing you are doing may be pretty worthless and it might not take you anywhere. We don’t know yet, because we haven’t done the review, but we generally think that BTECs are not that great.” At the same time, employers out there are saying, “Well, I have trusted this qualification over many years and I think it is okay.” The Government are performing a review over three to four years. Students will be going on to the qualifications not knowing whether they will be undermined.
The Government really need to show us the evidence; do the research, if they have not yet done it; and come back with a list of the qualifications and what is going to be taken forward. That is what the amendment is designed to achieve.
Lia Nici
On the point about quality and outcomes, we want employers to lead this initiative, along with partners from training and education, because, as the hon. Gentleman has stated in his eloquent and long speeches, we want to ensure that people are trained in skills that are relevant to jobs. We know that we have a huge skills mismatch. We want our employers to be able to lead on that and say, “These are the training areas we want, now and in the future.”
Mr Perkins
I do not disagree with that sentiment, but when the vast majority of employers responding to the Government’s consultation say, “Don’t get rid of BTECs”, how does the hon. Lady arrive at the position that we are getting rid of them because that is what employers want? That is not what employers are saying. I agree that we must make sure have qualifications that are relevant, but parroting that does not alter the fact that employers say they support BTECs.
Jane Hunt (Loughborough) (Con)
I ought to declare that one of my children has a BTEC level 3 extended diploma and went on to university, and the other has a level 3 apprenticeship. I suggest that it is the hon. Gentleman who is undermining BTECs, because he is the only one who has made that point in our debates. The Minister said on Second Reading that we are reviewing BTECs only where they cross over with T-levels, because we do not want duplication of work.
Mr Perkins
It is a strange representation of my position to say that because a Minister stands at the Dispatch Box and describe something as poor quality, I am undermining that thing by referring to what the Minister said. I am trying to defend what in many cases is a valid and trusted qualification. As the hon. Lady knows, my children have had a similar experience to hers. It is for precisely that reason that I seek to defend the qualifications.
More important than defending the qualification per se—there probably are some good ones and some bad ones—is to say that the Government should not undermine it until they know what they are talking about. That is the most important point here. They should do the research and then come back and tell us what the policy is, not the other way around.
The Government have set us on a path towards T-levels by undermining the alternatives—I guess because their T-levels have not so far had huge take-up—and they have done so without actually knowing what they are talking about. The hon. Member for Loughborough says that all they are looking to do is prevent duplication. That is absolutely not the case. In so far as there is duplication and reason to believe that a T-level is a better path than an existing qualification—a BTEC, a Council for Awards in Care, Health and Education qualification, or anything else—I have no problem with that, but clearly the Government have set out to rubbish the existing level 3 qualification in order to promote their T-levels. They cannot now row back and say, “Oh, we’re only interested in duplication.”
Andrew Gwynne (Denton and Reddish) (Lab)
We really do not need to get drawn into the merits of T-levels against BTECs—that is a false choice. For many young people in particular in this country, BTECs are their route through the education system. I have BTEC levels 3, 4 and 5. Does my hon. Friend recognise the 2018 research by the Social Market Foundation, which showed that 26% of university applications are from young people with a BTEC? It is a significant route into higher education.
Mr Perkins
I recognise that point, but this is an area of real worry for me. The Government have said explicitly that they want to reduce the number of people doing university degrees that they consider to have low value. Again, they have not told us which ones. A disproportionately high number of learners from deprived communities are doing BTECs rather than A-levels. I strongly suspect that seeking to reduce the number of people doing certain university degrees will disproportionately affect the cohort who do BTECs. Although my hon. Friend is right that a lot of students, such as my son, the child of my hon. Friend the Member for Birmingham, Hall Green, and the child of the hon. Member for Loughborough, have gone to university via BTECs, I fear that the number will reduce under the Government’s expressed strategy to reduce the number of students doing university degrees that they do not think have value.
Kim Johnson (Liverpool, Riverside) (Lab)
My hon. Friend has identified that young people from disadvantaged communities are likely to suffer. There will also be a disproportionate impact on both black students and students with special educational needs who use that route into education and higher education.
Mr Perkins
I am glad that my hon. Friend made that incredibly important point. She is right that BTECs, and the further education sector in general, have a far higher proportion of black and ethnic minority students than mainstream schools. They are incredibly important routes, and it is important that they are spoken up for, and that that difference is raised. Different students study in different ways. The Government have a real bias against anything that is not largely exam focused. They believe that only an exam focus gives someone a real qualification, and BTECs have been much more based on a student showing what they have learned over a two-year course, rather than just in a couple of weeks at the end of June.
Such qualifications have been a route for many people to improve their social mobility. That is why the campaign to defend them is so strong. We will talk about BTECs in more detail under future amendments, but amendment 48 seeks to provide that the Government
“must publish criteria to define what is meant by ‘high quality qualifications’, which can be used as a framework for future deliberations about any defunding of qualifications.”
It states:
“Any future defunding of qualifications must be reviewed by an appointed independent panel of experts, against the criteria”
that the Secretary of State has set out. It continues:
“The Secretary of State must publish the proposed list of Level 3 vocational and technical qualifications which are proposed to be defunded, based on the criteria set out…within 3 months of this Act receiving royal assent.”
That amendment would make an important difference. First, the Secretary of State would tell us by what criteria he will continue to fund, or to defund, qualifications. Secondly, to ensure that the decisions are based on academic considerations rather than political ones, it would ensure that the independent panel of experts applies the criteria that he has put in place. Thirdly, it would ensure that the process for level 3 qualifications does not drag on endlessly.
The Government have started the process of undermining the qualifications by describing them as of low quality. That should not go on forever—within three months, we could have a list to say, “This is high quality, this is what you should study in future and this is what, under the criteria set out by the Secretary of State, we will no longer fund.” I find it hard to understand why people would vote against such an amendment. It is widely supported and I am interested in what response we will get from the Minister and others to the amendments.
Andrew Gwynne
I support the amendments because, as I alluded to earlier, I feel passionately about the role that BTECs can play. The way in which the Government have handled the whole withdrawal of BTEC qualifications is a lesson in how such things should not happen.
I therefore support including in the Bill that the Secretary of State should appoint, through regulations, a body other than the institute to withdraw the approval of technical education qualifications. It is important that, before moves such as those we have seen on BTECs, we have a proper and thorough assessment of the qualifications, in particular when they are well known and respected by not just the general population, but academia and employers. That is the whole point of BTECs: everyone knows what a BTEC is and people know what the different levels relate to. BTECs are accepted as a standard qualification in academia and in employment.
Lia Nici
I am concerned that the Opposition are concentrating on BTECs. BTEC is a brand—it is a commercial brand. In ordinary parlance, we might use it as a throwaway term for level 2 or level 3 qualifications, but I am concerned that the Opposition are supporting one brand when we have a multitude of brands. I wonder whether they have been pushed by the brand owner’s lobbying—why are we talking constantly about BTEC and not about other level 2 and 3 providers as well?
Andrew Gwynne
I find that quite offensive—to suggest that Opposition Members have been lobbied by Pearson to support a qualification. It was not always Pearson’s. The hon. Lady talked about a brand, but it was Edexcel before Pearson, and before that it was the Business and Technology Education Council, which is where the term BTEC comes from. The reason that I am standing here to defend BTECs is that I have BTEC levels 3, 4 and 5.
Andrew Gwynne
I am not giving way to the hon. Lady, because I am still answering her. I have BTEC qualifications at levels 3, 4 and 5. I am proud to have gone through the BTEC route, and I want to ensure that the next generation of young people and, indeed, adults have the opportunity to go through the BTEC route, which is well respected and recognised by academia. I think only one university in the whole of the United Kingdom does not accept students with BTEC qualifications. I tell the hon. Lady that any lobbying I have had has come from the local colleges in my constituency, because they are incredibly concerned that withdrawing the qualification completely takes away a route to university for many people.
Andrew Gwynne
The hon. Lady can shake her head, but I invite her to Ashton Sixth Form College and Stockport College, and she can get into the real world.
Tahir Ali
I take great exception to the word “brand” being used for the BTEC. The BTEC is not a brand; it is a qualification achieved by those who do not want to pursue an academic route. If BTEC is a brand, GCSEs are a brand, A-levels are a brand, BSc is a brand, masters degrees are a brand. It is nonsense, and it is abhorrent to even refer to BTEC as a brand. The only brands Government Members are interested in are the ones that cost a lot of money.
Andrew Gwynne
From a sedentary position, the hon. Lady says that it is a brand. It is not a brand; it is a qualification. I took BTEC qualifications when they were managed by the Business and Technology Education Council. The gown that I proudly wore at Stockport College’s graduation ceremony in Manchester Cathedral was my BTEC higher national diploma gown—exactly the same gown that BTEC HND graduates wear today, even though it is a Pearson qualification.
Andrew Gwynne
We have heard enough from the hon. Lady. If she has nothing positive to add, I will not give way to her.
Matt Western (Warwick and Leamington) (Lab)
I would like to think that the hon. Lady does have something positive to contribute. I say that as an act of decency, really. Like many Members in this room, I am sure, I found inappropriate the accusation that myself and other Opposition Members could have received money for making claims in favour of—[Interruption.] Or that we were being lobbied to speak positively—
Lia Nici
On a point of order, Mr Efford. That is not what I said at all. However, there are other level 2 and 3 providers. We constantly hear about BTECs. There are high-quality providers of other qualifications. We want to move towards T-levels. That is what this is all about.
The Chair
That is not a point of order. However, if the hon. Lady wants to make a contribution on that point, she can catch my eye. Have you completed your intervention, Mr Western?
Matt Western
I simply urge the hon. Lady to retract what she said in her point about Opposition Members being lobbied by Pearson.
Andrew Gwynne
I agree with my hon. Friend. That is what I said in answer to the hon. Lady when she made the assertion. I will happily give way to her if she will withdraw those remarks.
Lia Nici
Thank you very much for allowing me to intervene. I reiterate that Pearson is the owner of the BTEC brand, and because BTEC was being used again and again, I suspected that lots of lobbying was going on. I did not say that any money was changing hands or that anything corrupt was going on. I did not say that.
Andrew Gwynne
I will accept the half-hearted withdrawal from the hon. Lady if she says that she now accepts that we have not been lobbied by Pearson in the way that she implied. She makes the very real point that there are other qualifications at this level. I have a City & Guilds qualification and a Royal Society of Arts qualification at those levels. She is absolutely right that other really good qualifications are available to people to study at levels 2 and 3, and beyond. However, the main and most respected set of qualifications at this level is currently BTECs. I get that the Government want to introduce T-levels, and I support the concept of T-levels, but the hon. Lady and other Government Members must understand that there are some young people for whom T-levels will not be suitable but for whom BTECs are. Having the opportunity to study at BTEC level will allow them to progress to higher education or employment. To take those choices away is a retrograde step.
We are not here to debate the rights and wrongs of what the Government want to do. We are here to debate a sensible amendment that would ensure that, if the Government want to change the framework of qualifications in the way that they say in respect of T-levels and BTECs, there is a thorough assessment of the need to do that.
Andrew Gwynne
I will come to the hon. Lady in a minute. There may be a duplication of some qualifications where one of them is no longer required. In that case, it may well be the right decision to withdraw funding from the BTEC qualification and put it into the T-level qualification. There may well be, however, two qualifications with a similar outcome—BTECs and T-levels, for example—but with different routes that are suitable for different sets of young people, meaning that although they get to the same end point, their starting point is very different. We should not be denying that choice.
Frankly, there will be some qualifications where a BTEC is the only game in town and it excels in providing those qualifications. Those should be retained. We are talking about ensuring that there is a proper assessment when Ministers seek to make academic changes. I will give way to the hon. Lady and then to my hon. Friend the Member for Chesterfield.
Jane Hunt
That is very kind; I thank the hon. Member. He seems to be agreeing with the Minister this afternoon. To quote from Hansard,
“Our qualifications review is vital to ensuring that what is on the market is the best it can be. I am clear that T-levels and A-levels should be front and centre of the level 3 landscape, but I am convinced that we need other qualifications alongside them, many of which exist now and play a valuable role in supporting good outcomes for students. It is quite likely that many BTECs and similar applied general-style qualifications will continue to play an important role in 16-to-19 education for the foreseeable future.”—[Official Report, 15 November 2021; Vol. 703, c. 385.]
I wonder what the hon. Member has to say on that.
Andrew Gwynne
I fully agree with the intentions, and I have just said as much. From speaking to colleges that serve my constituency, the reality is that, although they want to, they will not be able to continue with a whole string of BTEC qualifications. That is the point. Moving away from the rhetoric to the reality, college principals are saying that this will be a retrograde step. Amendment 48, which my hon. Friend the Member for Chesterfield spoke to, is about ensuring that there is a proper mechanism to assess these changes. When we are putting through big changes to a well-established sector, we need to make sure that we do not throw the baby out with the bathwater.
We must ensure that we do not undermine opportunities for young people. We must not undo the well-respected and long-standing route of a BTEC qualification. If there is such a decision, we need a proper, detailed assessment. It might not be BTECs next; it might be that somebody decides that City & Guilds is no longer required or that the RSA no longer needs to provide qualifications, and so on. The assessment would need to go through the process that my hon. Friend the Member for Chesterfield set out in an independent and considered way. Ministers and, ultimately, Parliament would then make a sensible decision about how the higher education framework should look.
Mr Perkins
My hon. Friend was talking a minute ago about different qualifications and cases where a BTEC is the only show in town. The hon. Member for Great Grimsby was saying that we should recognise that there are other level 3 qualifications. Does my hon. Friend agree that an example at level 3 is the CACHE qualification, which is undertaken by people who want to work in the early years sector? The CACHE qualification has a big work experience element, and there are many reasons why early years students might be more likely to choose it over a T-level. The Government seem to have decided that T-levels are the answer and that they should decide what else can fit around them, rather than the other way around, which would be to identify where the holes are and to introduce T-levels to replace them.
Andrew Gwynne
My hon. Friend is absolutely right. That is why it is sensible to have a mechanism to assess these things properly, impartially and in the round and present that information to Ministers and Members of Parliament.
I have not yet heard any argument about what useful qualifications are. Is my BTEC national certificate in business and finance a useful qualification? Is my BTEC higher national diploma in business and finance a useful qualification? I do not know. The Minister has not set out what a useful qualification is. Whether these things could be done through T-levels or whether the BTEC option is a useful qualification—none of that has been set out. I want it set out independently, which is why I think it is really important that we get a mechanism in place that is independent and offers sound advice to Ministers and MPs.
As I have mentioned before, more than a quarter of higher education applicants—26%—come through the BTEC route. That is not insubstantial. I want to make sure that more young people and more adults come through an appropriate vocational route into higher education. If that is T-levels, great—let us get more people through T-levels into appropriate higher-level qualifications—but for many it will still be BTEC. It needs to be BTEC.
As my colleges are saying, we cannot undermine the ability to provide BTEC courses. At the moment, it is all T-level, T-level, T-level. BTEC is becoming an afterthought—and not necessarily a funded afterthought at that. That is my real concern, and it is why I am pleased to support my hon. Friend’s very sensible and modest but very practical amendments.
Matt Western
I do not want to rehearse points that have already been made, but I highlight the fact that BTECs are written into the Bill, which refers on page 10 to
“BTECs, AGQ or a Diploma”.
When we refer to BTECs, we are referring to them very honestly. There is no preference for any provider or qualification; they just happen to be a significant part of the skills agenda and, as I say, are written into the Bill.
Alex Burghart
May I make a small point of clarification? The hon. Gentleman says that BTECs are written into the legislation. They are, but only because of a successful amendment tabled by Lord Watson in the upper House. They are not in the Government’s original drafting of the Bill.
Matt Western
I take the Minister’s point, but that decision was reached and agreed across the parties in the House of Lords. The Lords accepted that BTECs are a qualification, along with AGQs and diplomas. As a point of reference, that is a pretty honest point made by noble Lords, and we agree. I just clarify that we are not favouring one provider or qualification over another; we are simply using the parlance of the FE sector.
As my hon. Friend the Member for Chesterfield mentioned, the issue is about criteria. I am really concerned, having spoken to colleges and universities in the higher education sector about the associations between FE colleges and universities. There are so many young people who may struggle through school and the normal academic process, but who have the chance to do a BTEC and rediscover learning and what is right for them. Qualifications such as AGQs and BTECs have provided a real opportunity for those young people. That is why we believe it is important that, rather than pursuing T-levels almost exclusively, as the Government have done, we should make a much more open choice available to young people. We are concerned about the move towards assessing the quality of level 3 courses and about what will be taken into account—hence our amendment.
Alex Burghart
Let us get to the amendments themselves. Amendment 47 would require the Secretary of State to appoint an alternative body, rather than the Institute for Apprenticeships and Technical Education, to determine whether approval should be withdrawn from technical qualifications at level 3. The Government think this amendment is unnecessary. Institute approval is a mark of quality and provides currency with business and industry. It shows that employers demand employees who have attained the qualification, and that it delivers knowledge, skills and behaviours needed for particular occupations. Approval would be withdrawn when a qualification no longer meets the criteria against which it was approved and no longer delivers the outcomes that employers need.
It is entirely appropriate that approval and withdrawal of approval decisions based on the same set of criteria should be made by the same body. That body should undoubtedly be the institute. It is best placed to manage our system of technical qualifications and will actively involve employers when making approval and withdrawal decisions, including through its route panels of employers, who hold national sector expertise and knowledge of occupational standards. To be clear, the institute does not have the power to make funding decisions about qualifications. Those powers rest with the Secretary of State. However, we want to fund technical qualifications that hold currency with employers; institute approval will provide a robust basis for this.
Amendment 48 has three elements to it. The first is that the Secretary of State must publish criteria defining what is meant by “high quality” when it comes to deliberations around the defunding of level 3 vocational and technical qualifications. The second is that an independent panel of experts be appointed to review the defunding of any qualifications in accordance with these criteria. The final one is that a proposed list of qualifications in line to have their funding removed is published within three months of this Bill achieving Royal Assent.
On the first point, the Secretary of State was clear on Second Reading that the removal of funding for level 3 qualifications that overlap with T-levels will be based on the extent to which they overlap with T-levels. High-level criteria for the removal of funding for technical qualifications that overlap with T-levels were published in the summer alongside the response to the consultation. Further detail about those criteria will be published in the near future, alongside a provisional list of qualifications in scope for funding removal in 2024. These will include grounds for awarding organisations to appeal against the provisional decisions made the Department for Education.
On the second point, both Ofqual and the institute will play an important role in approving new and reformed qualifications independently from the Department, and the institute’s approval will be a necessary pre-requisite for funding decisions taken by the Department. There is no need for any further independent body being built into the system. On the third aspect of the amendment, we want to have transparent processes for the removal of funding for qualifications and the approval of new ones. I have already made it clear that we will shortly publish the first list of technical qualifications that are in scope for the removal of funding because they overlap with T-levels. The funding of new and reformed qualifications will be based on strong quality standards, to be published next year, and decisions based on approvals involving two expert and independent organisations.
Mr Perkins
That was an interesting contribution from the Minister. On the first aspect of amendment 48, which calls for the Secretary of State to publish criteria to define what is meant by “high-quality qualifications”, he seemed to be saying that, effectively, that has already been published—although there will be more to be published in future. This is so obviously a moving situation; the Government are desperately trying to recover from the position that the previous Secretary of State has put them in. I think amendment 48 is a constructive way of supporting them to get out of the situation they are in.
It appears from what the Minister says that he does not need to vote for the amendment because that will happen anyway. If it will happen anyway, what is the problem with voting for the amendment? Having specific criteria to define what is meant by high-quality qualifications —removing the case-by-case approach and any political agenda, and once again enabling decisions to be made according to academic and, one might almost say, evidence-based criteria, which is what the Secretary of State told us he would be all about—would be entirely sensible, so I do not understand why the Minister will not vote for the amendment.
On the second part of our amendment, the Minister suggested that we do not need an independent body because we have IATE. The whole point about amendment 47 is that an organisation having ownership of a qualification and also being the referee on other qualifications is a pretty complicated and worrying situation. It is a bit like saying that Toyota, which makes electric cars, can also say whether everyone else’s electric cars meet the criteria.
Alex Burghart
It is worth bearing in mind that there really is not a conflict of interest here. The institute is not a market participant. Toyota manufactures and sells cars. The institute will not sell T-levels.
Mr Perkins
The Minister says that there is no conflict of interest. People in the sector believe that there is. Clearly it is a matter of opinion, but the perception of a conflict of interest exists. That is why we tabled the amendment, and I suspect it is why we were asked to do so.
The Minister suggests that he will vote against proposed subsection (12) of amendment 48, but at the same time he says, “Don’t worry. We’re going to publish it shortly. We don’t want to be committed to three months, but it will be shortly.” I do not know what the definition of shortly is if three months is too short. I understand that we are only in a position to press one of the amendments to a vote. We have not been given any encouragement by Government Members that they will support amendment 47, so even though we remain of the view that it would have been sensible, on advice I will withdraw it, but we will seek to divide the Committee on amendment 48. I beg to ask leave to withdraw the amendment.
Amendment, by leave withdrawn.
Alex Burghart
I beg to move amendment 18, in clause 7, page 10, leave out lines 38 to 40.
This amendment leaves out subsection (3) of section A2D6 (approved technical education qualifications: approval and withdrawal) to be inserted into the Apprenticeships, Skills, Children and Learning Act 2009. The subsection was inserted at Lords Report.
Alex Burghart
Amendment 18 removes an amendment from the Opposition Benches of the Lords that sought to delay the withdrawal of public funding from level 3 qualifications until 2026. The Lords amendment is not needed. We listened to the issues raised in the other place and, as such, the Secretary of State announced an extra year before public funding is withdrawn from qualifications that overlap with T-levels, and before reformed qualifications that will sit alongside T-levels and A-levels are introduced. Our reform programme is rightly ambitious, but we know that it would be wrong to push too hard and risk compromising quality. I believe that that additional year strikes the right balance between giving providers, students and other stakeholders enough time to prepare while moving forward with our important reforms.
The changes are part of reforms to our technical education system that will be over a decade in the making from their inception, building on the recommendations in the Sainsbury review, published in 2016, which itself built on the findings of the Wolf review of 2011. Both reviews found that the current approach is not serving learners or employers well. It fails to incentivise the active involvement of business and industry in technical qualifications, whereas our reforms will place employers at the heart of the system. We need to ensure that we get this right, but it is also important that we act quickly to close the gaps between what people study and the skills that employers need.
T-levels are a critical step change in the quality of the technical offer. They have been co-designed with over 250 leading employers and are based on the best international examples of technical education. We have already put in place significant investment and support to help providers and employers prepare for T-levels. By 2023, all T-levels will be available to thousands of young people across the country, and over 400 providers have signed up to deliver them so far.
We have learned from past reforms that, for T-levels to embed successfully, we should not continue to fund all competing qualifications alongside them. That is what we did when we moved from apprenticeship frameworks to apprenticeship standards: the frameworks were removed. Apprenticeship standards are the same employer-led standards on which T-levels and higher technical qualifications are based, and soon there will be a broader range of qualifications as part of our ambition for a coherent system in which employers play a leading role throughout the technical qualifications landscape. The Government’s amendment will allow those vital reforms to be implemented so that more young people and employers can benefit from a high-quality technical offer, with one extra year to help providers and other stakeholders to prepare. That extra year does not require legislation.
Amendment 19, which also stands in my name, seeks to reverse another amendment from the Lords. That amendment said that no student would be deprived of the right to take two BTECs, an applied general qualification, or a diploma or an extended diploma. All learners should be able to attain the skills they need to succeed in higher education or progress into skilled employment. A-levels and T-levels will be the best academic and technical options for most 16 to 19-year-olds, and we want as many young people as possible to benefit from them. However, that does not mean that we are removing all applied general qualifications. We see a valuable role for such qualifications in the reformed landscape where there is a need for them and where they meet our new quality and other criteria. I assure Members that we recognise that there is a need for other qualifications —ones that provide knowledge and skills that are not covered by T-levels, or are less well served by A-levels.
In our response to the level 3 consultation in the summer, we set out the qualifications that we intend to fund alongside A-levels and T-levels. They include large academic qualifications, such as BTECs or similar, as a full programme of study in areas that do not overlap with T-levels and are less well-served by A-levels: performing arts or sports science, for example. Students will continue to be able to study mixed programmes, with applied general-style qualifications alongside A-levels, where there is a need and where they meet our new other criteria. That includes areas such as engineering, applied science and IT, in which T-levels are also available.
Successive reviews have found that the current approach has led to a complex and confusing market that is variable in quality, which does not serve students or employers well. Streamlining the qualifications landscape will help to simplify the market and provide students with both quality and clarity of choice. I therefore commend these amendments to the Committee.
Mr Perkins
This is a really important moment in the passage of this Bill, because Government amendments 18 and 19 seek to remove two of the most important amendments that were secured in the House of Lords. The Minister described the first of those as an Opposition amendment, but we should remember that it only passed because of the votes of Conservative peers, as well as Labour, Liberal Democrat and other peers. Indeed, the Conservatives who voted for that amendment included such renowned and respected peers as Lord Willetts, former Minister of State for Universities and Science, who was largely seen as one of the pioneers of policy in this area during his time in government; Lord Clarke, former Conservative Chancellor of the Exchequer; and Lord Howard, former Conservative party leader. These are not people who often vote against the Government—well, Lord Clarke did quite a bit. [Laughter.] On the whole, they are not people who regularly vote against the Government. They do so only with the greatest of regret and the greatest of persuasion, so when people such as Lord Howard, Lord Willetts and Lord Clarke say that this is a moment for the Government to pause before they get this wrong, then joking aside, they should be listened to seriously.
Mr Perkins
Lord Baker made his support for this approach known. I think he was absent from the vote, but he very much supported the move towards protecting this. In fact, he described the Government’s approach as
“an act of educational vandalism”.
The Government have made an important concession. It is not in the Bill, but the Secretary of State has agreed to an additional one-year moratorium on the defunding of level 3 qualifications. That is important, and I have two points to make on that. First, it means that level 3 qualifications will not be defunded in this Parliament. If anyone out there wishes to ensure that level 3 qualifications—they offer real student choice, are respected by the sector and understood by employers—are defended and maintained in the future, they will have the opportunity: they will be able tao vote Labour in a general election. The fact that level 3 qualifications will not be defunded in this Parliament is an important concession. The opportunity to save the Government from that folly will be there in a general election, and we will push that argument very strongly.
Secondly, the clause that the Government are attempting to get rid of stated that there would be a four-year moratorium. We have heard that they are not having the four-year one, but they will have a one-year moratorium. Why not replace the words “four years” with “one year” in their amendment? At least then it would exist in the Bill. It seems churlish for the Government to say, “We will give you an assurance that we will do that, but we are still not going to have it in the Bill, even though we are offering you this commitment.” It is deeply disappointing that the Government have removed an amendment that enjoyed cross-party support in the other place. There are real concerns that the number of students currently doing alternative level 3 qualifications will not be well served going forward.
The hon. Member for Great Grimsby was frustrated that Opposition Members kept referring to BTECs rather than recognising the variety of different level 3 qualifications, but it is important to say that BTECs are the largest number of those level 3 qualifications. Last year 230,000 students did a level 3 BTEC. The Government have an aspiration that in four years’ time there will be 100,000 students doing T-levels. It remains to be seen whether they will be successful in that. If they are, there will still be 130,000 students in four years’ time who will not have access to that qualification if those BTECs disappear, and that is why it is so important that we ensure those ladders of opportunity are not removed.
As our next amendment will show, when I will go into more detail, we need a lot more scrutiny of the success of T-levels before BTECs are defunded. We are still in the pilot phase. I will talk more about T-levels when we debate the next amendment, but before Members vote on this one, they need to understand that we are still only in the second year of the very first intake for those qualifications. Only three of the qualifications were actually started 15 months or so ago. Some of them are in the first weeks of being studied, and already the Government are making decisions about what will happen to the alternatives before the pilot has even taken place. It is like getting rid of a ship because you are in the process of starting to invent an aeroplane. It is an unreasonable way to operate.
There are real concerns around the narrow pathways devised for T-levels. BTECs are often a route to university for those who have chosen not to go down the A-level track.
On Government amendment 18, we believe that the House of Lords was correct to introduce the four-year moratorium, and the Government should respect that. If they do not, and they want us to believe that we can trust them that there will be a one-year moratorium, instead of a four-year one, why not put that in the Bill?
Government amendment 19 restricts additional opportunities for studying level 3 qualifications for people who have already got one. When the Prime Minister announced the lifetime skills guarantee at Exeter College, he talked about the need for people to retrain. It was at the height of the covid pandemic, and he said that some people are in areas that might not have a future, and that we need to allow them to retrain. The whole principle of the lifetime skills guarantee was around people retraining—perhaps they are in travel, tourism or hospitality, and we will move them to health and social care or engineering. However, when it comes to the guarantee, they cannot do that, because people are only guaranteed to do one level 3—if someone gets their level 3 at 19 and then wants to retrain at 40, they will have to pay for it. That will definitely be a barrier for people.
The Lords, very sensibly, introduced an amendment saying that
“no student would be deprived of the right to take two”
level 3 qualifications. We sometimes hear from Government Members about these perennial students who, if allowed to do these funded qualifications, would do qualification after qualification—although I do not believe such people really exist in any serious number. Whether someone in their 50s might do a degree as a matter of interest is a different matter, but no one does a level 3 vocational qualification just for the banter—they do it because it is a route to a job.
Even if that was true, and we accepted that there must be a limit on it somewhere, the peers did introduce a limit. They simply said that for a lifetime skills guarantee to be worthy of the name “guarantee”, we have to let people do a second qualification if they need to retrain at some point. The Government are getting rid of that. We have just heard from the Minister; I would be very interested to understand why he thinks that someone who did a level 3 qualification 10 or 15 years ago and now wants to do a different level 3 should not be able to do that. He is proposing Government amendment 19, which scraps the right for people to do a second qualification, without, as far as I can recall, referring to it in any sort of detail whatever. People will be pretty disappointed with that.
More than 9 million jobs are currently excluded from the lifetime skills guarantee, which we will go into in more detail later. When whole sectors such as tourism and hospitality have been left out, it is a misnomer and a misrepresentation to call it a guarantee. It is an aspiration and nothing more.
I strongly oppose Government amendment 18, which removes the very sensible moratorium to protect level 3 qualifications, until the Government have worked out what the hell they are doing. I also oppose Government amendment 19, which removes the assurance that a student who has done a BTEC or any kind of level 3 qualification will be able to access a second one if, in the future, they need to.
Rachel Hopkins (Luton South) (Lab)
I support the points made by my hon. Friend the Member for Chesterfield on the Front Bench. Yet again, I find myself agreeing with the Lords in their amendments, which, as a republican, is sometimes quite tricky. However, as my hon. Friend said, these eminently sensible amendments were put forward with cross-party agreement.
I find it fairly odd that Government Members want to restrict competition. For a party that seems to have market competition at the heart of many of its policies, I find it strange that they are trying to narrow it and not allow students to have choice.
Mr Perkins
I slightly challenge my hon. Friend’s idea that this is a party that is in favour of market competition. We know it is in favour of a short list of one, devised by who knows the relevant Minister. They claim to be interested in market forces, even if their policies often do not follow that idea.
Rachel Hopkins
I thank my hon. Friend for that intervention. It is a pity that the cameras are not in this Committee room or he would have seen my wry smile in response to his comments. The reason behind wanting to ensure that applied general qualifications—BTECs—are still available for a longer period of time, in greater breadth, is all about student choice. Ultimately, this is a Bill about skills and post-16 education, which should have students at its heart. That is why I want to make the case to retain those Lords amendments and the case against the Government’s proposed amendments to take them out of this Bill.
On retaining the moratorium for four years before any change to the breadth of BTECs, I want to query a point that the Minister made, which I hope he can clarify. He referred to the Wolf report and the Sainsbury report. The briefing I have received from the Sixth Form Colleges Association, which I have worked with as the governor of a sixth form college, rightly flags up that the Wolf report says that BTECs are
“valuable in the labour market, and a familiar and acknowledged route into higher education”.
The Sainsbury report did not consider BTECs or A-levels as
“reform of this option falls outside the Panel’s remit”.
So, the Department’s case for scrapping BTECs rests on one report that rated them highly—
“valuable in the labour market”—
and another report that did not look at them at all. I would be grateful for some clarity on that point in the Minister’s subsequent comments.
On the second part, around being able to study for a second level 3 qualification, the case was made very well by my hon. Friend the Member for Chesterfield. As only a recent entrant to this place, I have spent my whole career in the workplace with people who want to better their careers. Looking at the pace of change of within the workplace over the last 10 or 20 years, many staff I worked with may have had some sort of qualifications—BTECs or whatever—but they needed to up their digital skills to become managers and to start leading teams. This amendment would mean that they would not have been able to do that if they wanted to take their career further. I think that shows a complete lack of understanding of what the world of work can be like for many people.
If people do not have money or savings, they will not be able to do that, which goes against everything that I want to see for people and social mobility, so that poor working class people in my town can get on and they are not held back by the short-sighted, narrowing of opportunities that these amendments from the Lords sought to prevent. The Government are seeking to narrow opportunities in the Bill.
One point made by my hon. Friend was that some areas are not included in these proposals. In Luton South, we have the town centre, which has lots of retail, hospitality, pubs and hotels, particularly linked to Luton airport, but the area would not be included. That is so narrow and makes me think, “Well, what is this all about?” Is it all about a two-way street, where someone who is poor will go and do technical qualifications, and someone who is able and has connections can go and do A-levels? The gap will not be filled by many of the applied general qualifications, which reflect the workplace.
It is not just about the qualification at the end; it is also about how the assessment takes place throughout the course of the qualification and the different assessment methods. I want to see that recognition. The point was raised earlier that it is not just about some exams at the end of two years, regardless of whether people are following a technical or an A-level route.
I would be interested to hear from the Minister about some the requirements around the T-levels with regards to employer placements, and the spread and availability of them. We appreciate that we are in the pilot phase of some of those T-levels, but that is why it is so important to ensure sufficient review of how T-levels have rolled out and how the success of the students taking them has manifested itself.
Will there be sufficient placements for students? That is one question and, to link back to much of the debate we had on Tuesday about the formation of the skills plans, another is how will students travel to those placements? When education maintenance allowances were taken away from many students, they could not afford a bus fare. To be aspirational for many of our students, they might have to travel out of area—I speak as someone who represents a town, but other colleagues have talked about smaller towns, villages and other areas—but how will they travel and get about?
Andrew Gwynne
My hon. Friend is touching on something that is important, but often overlooked about BTECs. Yes, they can be done as full-time qualifications, but many people do them on day release. People are already in employment, and they are released on a day to get a level 3, level 4 or level 5 qualification to make progress. Do we not absolutely have to keep that in the system?
Rachel Hopkins
Absolutely. My hon. Friend makes a fantastic point. That is so vital, in particular for people with more flexible arrangements in the workplace. The pandemic has shown that people can work more flexibly through need, as much as through preference. For many, that day release is important. Many further education colleges work with local employers in their areas to ensure that the qualifications and the day releases meet the need. We must ensure that that can continue. We must not—as the phrase goes—throw the baby out with the bathwater. I hope that the Minister will address my points in his closing remarks.
Andrew Gwynne
I rise to support the Opposition’s quest to retain their lordships’ amendments to the Bill. As my hon. Friend the Member for Chesterfield said, the amendments are common sense. As someone who grew up in the 1980s and 1990s, the very figures he mentioned, who now sit in the other place, were leading lights of the Governments of the late Baroness Thatcher and John Major. They have huge knowledge in these areas—whether I agree with them or not politically.
No one can deny that Lord Baker was an Education Secretary of some standing. He knows what he is talking about. No one can say that Lord Clarke is not a man of great knowledge and understanding in these areas. Other former Ministers of those Administrations and a former leader of the Conservative party know what they are talking about when it comes to these issues.
Matt Western
So many senior experienced educationalists from previous Administrations over the decades—notably on the Conservative side, but also the likes of Lord Blunkett—came together. They understand the sector, and the fact that they have concluded and agreed on why such qualifications need to be retained is most telling.
Andrew Gwynne
My hon. Friend is absolutely right. I was going to come on to the Labour support in the House of Lords for the amendments. It is absolutely right that, when it comes to replanning a whole part of the further education sector, we should get that cross-party unanimity as far as possible. We want these changes to succeed, to last and to live through the current Government and future Administrations, as BTECs have done.
Mr Perkins
To reinforce my hon. Friend’s point, he talks about Lord Howard, the former leader of the Conservative party, who voted for the amendment. For once, actually, I am thinking what he is thinking.
Andrew Gwynne
I can see what my hon. Friend did there. For once, I agree not only with my hon. Friend—I always agree with him—but with the noble Lord Howard. Of course, he did not need to be asked the question 46 times to give the answer that we wanted.
I went through the BTEC route. For the Committee’s benefit, I will not go into all that again, but I believe that it is still a viable route for so many people—young people in particular but also adults—who want to better themselves and pursue a new career. To take away some of these options in the way in which the Government seek is regressive. My hon. Friend the shadow Minister is right that if the Government will not accept a four-year moratorium—even though they should—they should place the one-year moratorium in the Bill so that that is clear. I support their lordships fully on this issue.
I get what Ministers are saying about the risk of compromising quality, but nobody has ever made the case to me that the BTECs at my local colleges—Stockport College, Tameside College and Ashton Sixth Form College —are compromising quality. They give young people and adults some of the best opportunities to better themselves and reskill themselves.
Rachel Hopkins
The point about the quality of these qualifications has already been made. So many young people get to really good universities on a BTEC qualification, and surely those universities would not accept qualifications that were not up to scratch.
Andrew Gwynne
My hon. Friend is absolutely right. I believe that just one university in the whole of the United Kingdom does not accept BTEC qualifications, and it is not Oxford or Cambridge—they do. If these qualifications are good enough for Oxbridge, they obviously set the standard that academia wants to see.
It is more than that. BTEC is about more than reaching the same standards in theory as A-levels or years 1 and 2 of an undergraduate degree. There is also the experience and opportunities that BTECs bring to the people studying them, which academic qualifications—and possibly even T-levels—cannot.
I want the Minister think about the fact that some colleges are requiring GCSEs in English and maths to be considered for a T-level qualification That is fine, but what about those who do not have those qualifications but do have a whole string of other GCSEs at the equivalent of grade C and above, in old money? Do we really want to hold back our young people and keep them doing resits until they can get on to a T-level qualification, or do we want them to progress through T-levels and possibly study for English or maths resits at the same time? That really concerns me. I see colleges in Greater Manchester suggesting those entry requirements for T-levels, even though that is not necessarily the Government’s intention. We must look at that.
With BTEC, students who did not have GCSEs had the opportunity of going through a BTEC first before progressing to BTEC national and BTEC higher national. It is really important that we do not take opportunities away from young people. We should be increasing opportunities.
Andy Carter (Warrington South) (Con)
I just want to be clear that, on Second Reading, the Secretary of State indicated that the requirements for maths and English were being removed. I just want to make sure that the hon. Gentleman has not misunderstood that or is trying to suggest otherwise.
Andrew Gwynne
No, and I said clearly that that is not the intention of Ministers, but it is already happening de facto on the ground. Although colleges do not need to consider whether someone has English or maths qualifications, some are saying that they want people to have them. We have to ensure that that does not happen. At this early stage, the Minister can use his influence to ensure that colleges stick not only to the spirit of what was said on Second Reading but to the letter of what we want, which is no young person missing out on the opportunity to follow the BTEC further education route, as is currently the case.
Lastly, I will talk about depriving people of the right to take two BTECs, AGQs, diplomas or extended diplomas. In the good old days, when someone left school and went to work in what was likely to be their job for the entirety of their working life before they retired, these things did not matter. Today, the workplace and employment market are incredibly fluid. We cannot guarantee a job for life in 2021, and we certainly cannot guarantee that there will be a job for life in a decade’s time, or even two decades’ time. People going through college now cannot be guaranteed that they will remain in one job for the whole of their career. The reality is that they will have lots of jobs. The world of work will change, the challenges for people in the workplace in the future will change, and the way we work will change, so the way we learn about advances in technology and new job opportunities has to change as well. It may well be that somebody is currently employed in an area that will not exist in 10 years’ time. Are we seriously going to deny them an opportunity to reskill in a whole new area of work that is currently unforeseen but might develop? Are we really going to be so rigid as to say that somebody cannot go back to college to do a qualification at the same level as the one they got 20 years ago but is no longer relevant to modern-day work?
I support the Lords amendment. It is absolutely sensible for the future, because we do not know what the future holds. Are we really going to hold back a proportion of the workforce who might have to retrain or start literally from scratch and do another level 3 qualification in a whole different area because the level 3 qualification they did 20 or 30 years ago is no longer relevant to the modern world of work? That is absolutely crazy.
Lia Nici
It is a pleasure to serve under your chairmanship, Mr Efford. I have been bobbing up and down a lot. I feel that I need to bring a little bit of balance to proceedings. I am concerned that people listening to the debate will be full of fear and dread about what may be happening. My concern is that the mantra has been that BTECs are going, it will be terrible, it will hold everybody back and working-class young and older people will not be able to do anything. That really is not a proper representation of what is happening.
We have had A-levels in our education system for many decades. They are not a brand. They are a qualification. T-levels will mean that vocational qualifications will be better understood. Not only will they be high quality, but they will have been shaped in part by our LSIPs and employers.
Tom Hunt (Ipswich) (Con)
Is it the case, like it is for me, that when my hon. Friend talks to employers in her constituency they often say, “We’ve got the jobs, but haven’t got the skills locally”? The Bill will play a big part in changing that.
Lia Nici
My hon. Friend is right. A huge number of jobs are available. What we need to do now, and the Bill will enable us to do it, is pivot on an axis to ensure that employers are fully involved. We have some very good education providers in post-compulsory technical that work with employers, but a lot more work needs doing. When I go to see employers in my constituency, they all say that they have jobs available but cannot get people with the right skills. We have to do something about that, not only for our employers and our economy but for our constituents.
My constituency of Great Grimsby is the most wonderful place to live, but our skill levels are not where they need to be, for people in and out of work. If we are to level up for everybody across the country, particularly in my home town of Great Grimsby, T-levels will be a fantastic way for us to move forward. Apprenticeships are also extremely valuable, as people can earn while they learn. I am extremely concerned that we seemingly have a moral panic to try to get headlines to worry young people. I say to young people, and older people who are looking to train to level 3 qualifications, that it is not the disaster that it is being portrayed as for the sake of headlines.
There is a reason we do not want a long moratorium on such things as BTECs, which the Opposition are mentioning over and over again. I have worked in further education for 22 years. I have taught secondary school students and lectured at higher education level, and I happen to have a diploma at level 3, level 4 and level 5—a higher national diploma—one of which happens to be a BTEC. We want to ensure that education providers know exactly what is happening with a deadline. They are now ready to pivot on that. I have been talking to my biggest provider, Grimsby Institute of Further and Higher Education, and its experience of T-levels so far is utterly outstanding.
Lia Nici
I thank the hon. Member for his intervention. Great Grimsby has a history of fishing. Actually, it was the Icelandic cod wars and joining the EU that ended our fishing industry. We still have a very important fish processing industry that employs around 5,000 to 6,000 people in the town directly. I am working with the fishmongers’ association, Seafish, and my local colleges and industry to look at new apprenticeships and T-levels, so he is right: I am working on that. It is extremely important, because we have lots of people in our communities who are working at extremely high levels and have no qualifications. We need to consider not only people who are new into the workplace but those who are working and are specialists in their field. I see them every week when I am out and about. They talk passionately and are very knowledgeable—to level 5, 6, 7 and beyond—and they worked their way through. We need to ensure that qualifications can do that as well.
Andy Carter
My hon. Friend mentioned the importance of engaging with colleges and employers. Does she agree that it is also critical that we engage with young people and hear their experiences of T-levels? Priestley College in my constituency was one of the first in the UK to undertake T-levels, and one of the best visits I have had in my almost two years of being the Member for Warrington South involved sitting with T-level students and hearing their experiences of going out into the workplace and learning in a very different way from what they expected. We have been able to gather a tremendous amount of insight, and we can build on that. My hon. Friend made the point earlier that Opposition Members’ suggestion that vocational qualifications are moving in a direction that is perhaps not advantageous for young people is simply unfounded.
Lia Nici
I thank my hon. Friend for making that extremely important point. I speak to T-level students who are absolutely and utterly convinced that this is the way to go forward. I spoke earlier about my career in education and did a quick tot up of how many young people I have put through diplomas at level 3. I think about 45,000 students have been through my classrooms, studios and workshops, and they now work all over the world in a whole range of different roles within their specialism. It is really important to say that we do not want to put people in an absolute state of panic, because there are really good qualifications and jobs out there.
I will make a couple of points before I finish. The hon. Member for Denton and Reddish said that the Conservative party does not like competition, but I think there is a misunderstanding here. T-levels are not a brand; they are qualifications. All those different organisations, such as Cambridge, Pearson and the City and Guilds, will all be able to feed in and offer T-levels.
I want to pick up the point about the Wolf report, which said that BTECs are high quality. The Wolf report came out in 2011, so I would be cautious about looking at something that was published 10 years ago.
Andrew Gwynne
I am grateful to the hon. Lady for giving way. I want to quiz her on the assertion that BTECs are a brand. I studied for a BTEC national certificate in business and finance, and I qualified in 1992. Is that a qualification or a brand?
Lia Nici
Actually, the hon. Gentleman has a diploma, which happens to be accredited by the examining board of BTEC. That is what I am trying to explain. Although this has been a very interesting debate, I felt that I had to stand up and say something because there was some misrepresentation and some panic being put into this, which I really do not think is a positive thing for young people and their parents and carers, or for more mature students who are looking to do level 3.
The Chair
Order. Could we come back to the amendment? We have dealt with whether T-levels and BTECs are brands—we have been around that circuit already. I do not think we need to repeat that part of the debate.
Lia Nici
Thank you, Mr Efford. People will still be able to study on day release and part time. I know that everybody is passionate about this issue, but we need to be balanced. We all want our young people and older people to be able to study for qualifications that are high quality and that will help them to go on to further education or to get good-quality jobs, and I believe that the Bill will do that.
Mr Perkins
It is a great pleasure to follow the hon. Lady, whose contribution I did not entirely agree with. However, it has been so rare in our debates to have contributions from Conservative Back Benchers, so I do not want to discourage them when they take place.
There are a few things that I want to say. First, the hon. Member for Great Grimsby says that she is interested in providing qualifications that employers will value, but 86% of those who were consulted on the Government’s review agree with the amendment that the Lords put in and disagree with the Government’s intention to take it out. If her purpose is to do what employers want, she should be voting for the Lords amendment rather than against it. She says it was her belief that the BTEC was simply a brand, but it is clearly a qualification. To “other” BTECs as if they are somehow lesser than A-levels and T-levels is a considerable mistake. The amendments are very much undermined.
Matt Western
I want to draw attention to the points that have been raised by the Social Market Foundation and Universities UK on how important qualifications such as BTECs have been. There is a fear that T-levels will not allow for the same degree of social mobility as has been possible in the past, particularly for those from disadvantaged backgrounds, students with SEND and BME pupils.
Mr Perkins
I agree with my hon. Friend. The hon. Member for Great Grimsby said she speaks to employers in her constituency who say that they are not able to attract employees with the skills they need. We have all heard that refrain. That is precisely why introducing a reform that could see 130,000 students without the qualification they are currently getting is a hugely retrograde step.
The hon. Member for Great Grimsby says that she is concerned that people watching this debate will be misinformed. I have to say to her that the only people watching the debate know the sector very well indeed—there is not widespread competition for the number of viewers that “Coronation Street” gets. Those watching this debate already understand the sector. They are precisely the people who have responded to that consultation in great numbers—86% of whom have said that we should support this Lords amendment rather than get rid of it. I think that her worries about people in the sector being misinformed are very much out of line. Actually, it is the sector that is coming to us and saying, “Slow down. T-levels may well have real value, but we don’t yet know. Before you chuck the baby out with the bathwater, take it steady. Let’s support the Lords amendment and vote against the Government one.”
Alex Burghart
This is another interesting debate. It is another opportunity for the Opposition to fawn over former Conservative Secretaries of State and to think back to the wonderful childhoods they had under Baroness Thatcher—[Interruption.] There are some great opportunities for 16-year-olds in Greater Manchester, it would appear.
I appreciate that there are cross-party points to be made. I do not need to remind the Committee that a lot of this work originates from the pen and mouth of Lord Sainsbury, who in 2016 put together the review that would ultimately lead to the design of T-levels, which he has been intimately involved in. I imagine that most members of the Committee have received communication from his lordship in the run-up to this debate, in which he has made it very clear that the reason we needed T-levels was because there was a need at level 3 for large qualifications, designed by employers, that met the needs of employers and offer serious work placements, and that this would enhance the level 3 offer immeasurably.
Lord Sainsbury is a very strong Labour advocate for this policy. On his advice, we have designed a new suite of qualifications at level 3, designed with 250 employers, with nine weeks of work experience put in. It was wonderful to hear a speech from my hon. Friend the Member for Great Grimsby, because I have had the same experience. I have had the pleasure of doing this job for 11 weeks or so now, and I have travelled across the country meeting T-level providers. The level of enthusiasm among staff, pupils and employers who are providing the work placements is enormous. It is an electric moment in education.
I fully respect the serious point that the hon. Member for Luton South made about capacity for work placements, an issue that the Department is taking very seriously. My officials have absolutely busted a gut during the pandemic to make sure that young people on T-levels at this uniquely challenging time do not miss out on their work placement. I am pleased to say that the vast majority of young people who started their course in September 2020 have found a work placement, though a few have not, and we are working very hard to make sure that they do. It is a promising sign that even during a pandemic, we managed to do that, but we know that we will have to work hard on this issue, and we do not take the challenge lightly.
Rachel Hopkins
I hope that the Minister will appreciate my concern. There are 10,000 students in the T-level pilots. He says that the Government are almost there on work placements, but nearly 250,000 people are studying for level 3 BTECs, so there would need to be a significant transition. I hope that he accepts those concerns about placements.
Alex Burghart
The hon. Lady makes a serious point of which we are mindful, but obviously there are lots of areas where there are no T-levels at the moment, and there are great opportunities for work experience; we are already engaging with employers and colleges.
Access has come up repeatedly. There is absolutely no good reason why a young person at 16 to 19 who is ready to study at level 3 should not do a T-level. The idea that large numbers of young people aged 16 to 19 will be shut out of studying at level 3 because of T-levels is simply wrong. There was a potentially serious obstacle in the English and maths exit requirement, which is why we removed that. I say in all seriousness to the hon. Member for Denton and Reddish that if there are colleges out there still using an English and maths entry requirement, I would like to know which ones they are—I will happily speak to their principals. I do not expect him to put that on record in Hansard, but I would be grateful if he supplied me with that information.
Andrew Gwynne
I am grateful to the Minister for that, because as I said, we really need to bottom this out. We absolutely need to make sure that we apply not just the spirit of what the Minister said on Second Reading, but the letter of it. I will certainly supply him with that information.
Alex Burghart
I am grateful to the hon. Gentleman for that undertaking, because this is about creating more and better opportunities. On the point about destinations, a number of MPs here have said that BTECs have led to higher education. That is excellent. There is no reason at all why T-levels should not do the same thing. Many universities have already come forward to say that they will recognise them, and we are very confident that the number will increase.
The hon. Member for Chesterfield raised a point about capacity. I am afraid that he may have got his figures slightly confused. In steady state, there is absolutely no cap on the number of people who can do T-levels. I think one estimate was that each cohort could be 100,000 people. There is plenty of space for anyone who is at the right level to do a T-level.
The Government are moving at pace, but over quite a long period. This process started in 2011, and was boosted by the work of Lord Sainsbury in 2016. We introduced our first T-levels in September 2020, and we will not begin defunding until 2024. We are taking proportionate steps to introduce a new generation of level 3 qualifications that will present great new opportunities to students, providers, employers and the economy.
Question put, That the amendment be made.
The Chair
With this it will be convenient to discuss new clause 6—T-levels: Duty to review—
“(1) Two years after the date on which the first T-levels are completed, the Secretary of State must perform a review of the education and employment outcomes of students enrolled on T-level courses.
(2) No qualifications may be defunded until the Secretary of State’s duty under subsection (1) has been undertaken.”
Alex Burghart
I rise to speak in support of clause 7. Much of the debate so far has centred on the level 3 qualifications that will be funded for young people in the reformed landscape. This is an important matter, and one that we have consulted on extensively as part of the post-16 qualifications review. We are making changes based on feedback. We are allowing that extra year before implementing our reform timetable, and we are removing the English and maths exit requirement from T-levels, bringing them more in line with other level 3 study programmes, such as A-levels.
However, I would like to bring us back to the specific purpose of this legislation, which is focused on the approval and regulation of technical qualifications. For the majority of technical and vocational qualifications, little scrutiny is applied to the content before they enter the publicly funded market under existing arrangements. That is in contrast to the more rigorous arrangements in place for general qualifications such as A-levels, and we do not think that it is right. We want students and employers to be confident that every technical qualification is high quality and holds genuine labour market currency.
Clause 7 introduces powers to enable the Institute for Apprenticeships and Technical Education to approve a broader range of technical qualifications than it is currently able to, with a particular focus on alignment with employer standards. Standards are developed by groups of employers and are managed and published by the institute. They set out the knowledge, skills and behaviours that are essential for a person to be competent in an occupation. Apprenticeships, T-levels and higher technical qualifications are based on those standards. T-levels have been co-designed with more than 250 leading employers and raise the quality bar of the technical offer at level 3. We want to ensure that all technical qualifications are high quality and meet the skills needs of business and industry. Extending the institute’s role will make it certain that the majority of technical qualifications available in England are based on standards and deliver the skills outcomes that employers have told us they need.
This clause places a duty on the institute to regularly review the qualifications that it approves, upholding quality over time and ensuring continued labour market currency. It will give the institute the power to manage the number of qualifications in targeted areas—by issuing a moratorium on the approval of new qualifications—if the institute judges that there is a risk of inappropriate proliferation. Furthermore, it will enable the institute to charge fees for the approval of qualifications, subject to regulations published by the Secretary of State.
As the Sainsbury review found, the current approach is not working, with over 12,000 qualifications at level 3 or below. It has led to a complex and bloated landscape of qualifications, which is confusing for learners and does not serve them or employers well. Our reforms to technical qualifications will set a new quality bar, where the content of qualifications lines up with the skills needs of the workplace.
New clause 6 would place a duty on the Secretary of State to undertake a review of the education and employment outcomes of T-level students two years after the first cohort has completed the programme. It would also prevent the removal of funding from qualifications until the review has been carried out. T-levels are a much-needed step change in the quality of the technical offer for 16 to 19-year-olds, based on the same employer-led standards as apprenticeships. Their design draws on the best international examples of technical education.
A number of mechanisms are already in place to keep T-levels under review, including the institute’s arrangements for reviewing T-level technical qualifications in live delivery. We are working closely with students, providers, employers and universities to ensure that stakeholders are clear on the range of progression opportunities that T-levels present. From 2024, we will publish statistics on the attainment of the T-level technical qualification and the employment outcomes of T-level graduates. That is set out in the technical guidance of the 16 to 18 accountability measures.
In addition, the Bill already provides for the review of approved technical qualifications. New section A2D8 under clause 7 places a duty on the institute to regularly review the qualifications it has approved. That includes T-levels, higher technical qualifications and the other qualifications it will approve as part of our reforms. I therefore do not support the inclusion of new clause 6 in the Bill.
Mr Perkins
Labour welcomes T-levels in principle but has concerns about their implementation. The current cohort of pupils in the first year is pretty small, and there is insufficient evidence to assess the success, or otherwise, of the qualifications at this stage. We have real concerns about the work experience element of T-levels. My hon. Friend the Member for Luton South spoke about whether there are enough employers able to offer work experience, whether that work experience will be relevant and meaningful, and how it will be assessed. What safeguards will be in place to ensure that the work placements are relevant? Will there be a way of pupils failing their work experience other than by not attending?
We are also concerned that the amount of work experience required will restrict the number of institutions that are able to offer a broad suite of these qualifications. We think the failure to achieve the amount of work experience placements might mean that not enough of the qualifications are available at different institutions. A lot of students are finding that if they want to do the T-level that would take them towards the career they want, they might have to travel a very long way, because there will not be the same availability nearby.
The Government are attempting to trash the reputation of alternative and established level 3 qualifications in the minds of employers, students and their parents, while the T-levels are still standing on shifting sands. They were announced initially as a vocational route to take 18 to 19-year-olds towards the world of work. When a study in September 2020 showed that Russell Group universities were not willing to take T-levels as entry qualifications on to science and engineering degrees, the Government were entirely sanguine, describing them as ladders to work, not to university. Yet the Secretary of State’s current favourite anecdote is of a student he met at Barnsley College called Greg, we are told, who now believes that he has the pick of universities because he is studying T-levels, so the outcome destination for T-level students in the Government’s mind seems to have shifted overnight from the workplace to university, without any evidence as to why that is.
Just like the Minister, I recently visited a college to meet students and lecturers on T-level qualifications—I went to Derby College last week. I also met students who were doing other level 3 qualifications. I asked the 14 students doing the science qualification at Derby, “How many of you are pleased that you did this qualification?” Fourteen hands went up. They were very pleased with the qualification. They had been doing it for only a couple of months, but they were really encouraged. I went on later to meet students doing a BTEC level 3 qualification in digital technology, working towards gaming. I asked them the same question, and once again every hand went up.
Matt Western
I want to clarify a point—really just for my own clarification. What number of GCSEs are people supposed to have, and at what grade, before they are eligible to take a T-level, and how does that differ from a BTEC, an AGQ or other forms of diploma?
Mr Perkins
As I understand it, from what the Secretary of State has said, going forward there will not be the need to have a maths or English GCSE before a student does a T-level. In the future, it will be similar to how it is currently, but last year’s cohort—the first cohort—did have to have GCSEs in maths and English before they were allowed to do the qualification.
Alex Burghart
To clarify the point that the hon. Gentlemen are discussing with each other, there was never an entry requirement for T-levels—there was an exit requirement. Someone could start their T-level without any GCSEs at all, but up until Second Reading it was not possible for them to get their T-level certificate unless they had by that stage passed their English and maths. They could have spent their education at 16 to 19 getting their English and maths; they would have it at the end. That is no longer the case. In the same way as a person does not need to have GCSEs in order to do A-levels, they no longer need to have GCSEs to do T-levels. We obviously encourage all students to improve their English and maths at 16 to 19 years old.
Mr Perkins
We all encourage them, absolutely. I am interested in what the Minister says. I had the impression that a GCSE in maths and English was being used as an entry-level requirement, but I hear the Minister’s point, and if institutions were to take a different approach, I dare say I would find out about them. I appreciate the Minister’s comments.
Matt Western
So the point would be, as the Minister just described, that someone could have been very good at the T-level subject that they had chosen to do, but unless they got through—okay, the Government have changed their position just recently; whether they hold to that decision long term, we do not know—they would not get that qualification, even if they retook English and maths countless times. They may have spent years trying to get it, and they would still be a failure.
Mr Perkins
As I understand it—from what the Minister said, and from my understanding—it was previously an exit-level requirement. We were arguing against that for some time and we are glad that we have managed to persuade the Government of that argument. The important point here is that the Government are learning, visibly and in plain sight, but they have already made the decision on what the conclusions are going to be, while they are still working out what they are doing with the qualification that is working.
It is essential that Ministers get this right, to ensure that T-levels enjoy the confidence of employers, FE professionals and young people and their families. The amendment would offer oversight and ensure that the quality and standards of T-levels are assessed thoroughly, and that conclusions are drawn about any improvements or observations made in that review. It is absolutely fundamental that the Government should review after they have established what the T-level students have done, as things settle down. Qualifications originally planned to be T-levels are still being cancelled. We may well find in a year’s time that further qualifications have not had enough take-up and they also start being cancelled. Let us see what is happening before any decisions are taken to defund alternative qualifications.
Alex Burghart
I do not wish us to keep treading over the same ground. I am very pleased to hear of the many happy students at Derby College, and that they are enjoying their courses. The key question before us is whether we want a system at level 3 that prioritises qualifications designed by employers and that offer a substantial element of work experience. I think we do. It is good for students, good for employers and good for the economy at large. We are designing a system of technical education, whereby a lot of students will go into level 3 technical and do T-levels. They will progress to apprenticeships and to work; some will progress to university. We will also have students at 16 to 19 who do level 2 and go into apprenticeships or traineeships, or work. There will be routes for everyone at 16 to 19 in our reformed system, but everyone will ultimately be doing a qualification that was designed with employers in the room, and many people will be doing a qualification with a serious workplace element.
We are advised to be cautious and careful, and I understand that; these are big reforms. Ten years have passed since we started this process, and it is five years since the Sainsbury review. By the time the first qualifications are defunded, four years will have passed.
Alex Burghart
Sorry, I have finished.
Question put and agreed to.
Clause 7, as amended, accordingly ordered to stand part of the Bill.
Clause 8
Functions of the Institute: availability of qualifications outside England
Question proposed, That the clause stand part of the Bill.
Alex Burghart
The clause is an important first step in allowing qualifications such as T-levels to be made available outside England by the relevant bodies. To date, the Institute for Apprenticeships and Technical Education has not collaborated with bodies outside England for that purpose. The clause makes the power explicit.
We know that many qualifications taken in England are also taken by students elsewhere, both in the other nations of the UK and beyond. Those arrangements will remain unchanged for many qualifications. However, there are some qualifications for which the institute owns the intellectual property, such as those forming part of T-levels. If other nations decide that they want to offer T-levels, the clause would allow the institute to engage with relevant bodies, such as regulators or education authorities, as appropriate. That engagement would enable all parties to work together to consider the arrangements that might be needed for programmes of education such as T-levels to be taken by students outside England.
Hon. Members
Hear, hear.
Question put and agreed to.
Clause 8 accordingly ordered to stand part of the Bill.
Clause 9
Technical education qualifications: co-operation between the Institute and Ofqual
Question proposed, That the clause stand part of the Bill.
Alex Burghart
The clause recognises and supports effective joint working between Ofqual and the institute. Under existing legislation, the two bodies share statutory responsibility for oversight of technical education qualifications. Their respective functions and professional expertise are vital in safeguarding the credibility and integrity of technical qualifications. In particular, the institute ensures that qualifications are relevant to employers and deliver the skills they need, while Ofqual’s regulatory role is vital to maintain educational standards and the consistency of technical qualifications.
Despite the close relationship between the two roles, the two strands of existing legislation governing them are currently separate. The clause fills the gap by reinforcing the co-operation that is necessary between the two bodies to ensure that they can each perform their respective functions effectively. The two bodies already work together. They have developed an administrative framework for co-operation. The clause, together with clause 10, will align the legislation with key elements of the framework that they have agreed. Clause 9 writes mutual co-operation clearly into their respective statutory remits, as well as their working relationship. The clause also empowers each of the two bodies to provide advice and assistance to the other and ensures that each will have regard to such advice. These provisions will reinforce the long-term stability of their relationship. In particular, they will reduce the potential for the two organisations’ priorities, systems and processes to drift apart over time.
By working together effectively, the two bodies will minimise the scope for confusing, duplicated and overlapping processes. That will support the setting of clear, demanding quality standards for the qualifications. It will minimise the potential for confusion and unnecessary bureaucracy that could burden awarding bodies if Ofqual and the institute do not co-ordinate their requirements, systems and processes.
Mr Perkins
Throughout the Bill we have been calling for greater clarity and understanding of the roles of various operators within the sector, so we are pleased to see that that is the case with clause 9.
Question put and agreed to.
Clause 9 accordingly ordered to stand part of the Bill.
Clause 10
Application of accreditation requirement in relation to technical education qualifications
Mr Perkins
I beg to move amendment 49, in clause 10, page 14, line 17, leave out paragraph (a).
This amendment would ensure Ofqual remains able to make a determination under subsection (1) in relation to accreditation requirements relating to approved technical education qualifications.
Amendment 49 is brief and would ensure that Ofqual remains able to make a determination under section 138(1) of the Apprenticeships, Skills, Children and Learning Act 2009 in relation to accreditation requirements relating to approved technical education qualifications. The Bill hugely centralises power in the Secretary of State’s hands, and it is important that an independent organisation can ensure that our technical education framework remains based on evidence and academic excellence, rather than on political priorities. For that reason, we would look to leave out paragraph (a) and ensure that Ofqual remains able to make such determinations.
Alex Burghart
The amendment aims to retain Ofqual’s power to accredit technical education qualifications that are also subject to the institute’s approval processes. These two functions are very similar, so the amendment would undermine the intention to clarify the statutory approval process for technical qualifications.
By creating a single approval gateway managed by the institute, the Bill removes duplication in the processes for these qualifications and so ensures that the system is as efficient as possible. If we were to accept the amendment, awarding organisations might be subjected to two overlapping and very similar approval processes. The mutual co-operation requirements of clause 9 ensure that although Ofqual cannot decide to accredit technical qualifications, it will continue to play a key role in their approval. Ofqual will continue to exercise its regulatory functions in live delivery.
I should draw the Committee’s attention to the comment by Jo Saxton, the Chief Inspector of Ofqual:
“The Skills Bill heralds the acceleration of a unified system of technical qualifications based on employer-led standards, in which Ofqual has a pivotal role, providing students and apprentices with high quality qualifications…The Bill cements our close working relationship with the Institute, drawing on the strengths and expertise of both organisations, with our statutory regulation of technical qualifications continuing to underpin this system”.
I think we can take it from that comment that Ofqual is very happy with the Bill as it is drafted.
It is more appropriate that the institute leads on the approval process, because its work is essential in ensuring that both the content and the outcomes of technical qualifications are aligned to the skills that employers have told us they need.
Mr Perkins
I heard what the Minister said. This was a probing amendment to try to understand a little more about how Ofqual’s role would operate in the future. However, having heard what the Minister has had to say, I beg to task leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Alex Burghart
Clause 10 is needed in addition to clause 9 in order to clarify the roles of the institute and Ofqual in the approval of technical education qualifications. Under the existing legislation and the provisions of the Bill, the institute has specific responsibility to ensure that technical qualifications meet the skills needs of employers and different employment sectors. In parallel, Ofqual has the discretion to decide that individual types and classes of qualification should be subject to an accreditation requirement before they can be taught in schools and colleges. The purpose of the two processes is similar—to ensure that qualifications meet a high-quality bar before they enter the market. Therefore, the current legislation means that individual technical qualifications could be subject to two similar and unhelpfully overlapping approval processes. That would be unnecessary double regulation.
Clause 10 will remove the potential for overlap and duplication by creating a single approval gateway for all technical qualifications. Taken together with the mutual co-operation provisions in clause 9, it enables the two bodies to work together to provide a clear single approval pathway for technical education qualifications. It will remove the potential for duplication and additional bureaucracy both for the two bodies themselves and for the awarding organisations whose qualifications are subject to approval.
Mr Perkins
Given the concerns that we have raised with regard to the creation of the division between Ofqual and the institute, and the fear that that may lead to a two-tier approach and a sense that the investigations into academic qualifications that are seen with A-levels and other qualifications under Ofqual are different from those under the Institute for Apprenticeships and Technical Education and the technical qualifications, this is an issue that the Government need to be very careful about in future. They should ensure that there is real confidence that the technical qualifications are robust and subject to the same processes, and the same checks and balances, as other qualifications.
That is the key point that we make to the Government. We do not intend to oppose clause 10 stand part, but we seek reassurances that there will not be too much of a sense that the different pathways are of different merit.
Question put and agreed to.
Clause 10 accordingly ordered to stand part of the Bill.
Clause 11
Information sharing in relation to technical education qualifications
Question proposed, That the clause stand part of the Bill.
Alex Burghart
The clause supports a critical aspect of the joint working needed to ensure that the whole technical education system works together to deliver the skills that employers need. It does so by ensuring that Ofqual can exchange information with the other bodies that have important roles in this framework. Under existing legislation, the institute can exchange information with other bodies to support its own functions and those of the other body involved. At present, similar powers do not apply to Ofqual. Ofqual’s explicit information-sharing power allows it to share information only with other qualifications regulators in the UK to enable or facilitate the performance of the qualifications functions of that regulator. There is no explicit function allowing it to share information to support the functions of other types of bodies.
Mr Perkins
Could the Minister clarify a little more the kinds of information that he anticipates will be relevant under this clause?
Alex Burghart
It is part of that long day you were talking about, Mr Efford. The purpose of the clause is to ensure that whatever information the institute and Ofqual want to share with each other, they can. It is open-ended, and is there to serve their purposes.
Alex Burghart
I will make some progress. The clause tackles that limitation by providing Ofqual with information-sharing powers in relation to technical education qualifications that correspond with those that already apply to the institute. Specifically, the clause enables each organisation to share information either to support its own functions, or to help other bodies in their own roles. For example, it would allow Ofqual to share information that it already gathers from awarding body organisations with other bodies, such as the institute, to avoid other bodies needing to duplicate data-gathering exercises. That approach of “collect once, use multiple times” would help reduce administrative load. Hopefully, that answers the question that the hon. Member for Chesterfield asked.
The clause plays an important role in supporting coherent, efficient joint working between Ofqual and other relevant bodies, and will help to secure high quality across the technical education system as a whole.
Mr Perkins
There are always concerns when it comes to this Government and information sharing. There have been many examples in which there has been real concern about the approach that the Government have taken to this sort of thing, which is why I was asking about the scope of these powers. We entirely understand sharing information about specific qualifications, but if it gets more granular than that—if it gets more into the area of personal data—there will be real concern. At future stages of the Bill’s passage it would be good to get a more detailed understanding of precisely what information the Government are seeking powers to share. Notwithstanding that, on the basis that these information-sharing powers mirror the current arrangements with regard to the institute, we do not intend to oppose clause stand part.
Question put and agreed to.
Clause 11 accordingly ordered to stand part of the Bill.
Clause 12
Technical education qualifications: minor and consequential amendments
Question proposed, That the clause stand part of the Bill.
Alex Burghart
The clause sets out minor and consequential amendments to the Apprenticeships, Skills, Children and Learning Act 2009 and other legislation as a consequence of the other provisions contained in chapter 2 of the Bill. That includes amendments that result from extending the powers of the Institute for Apprenticeships and Technical Education such that it will be able to approve a wider range of technical qualifications. These amendments are necessary to ensure that the statute operates effectively.
Mr Perkins
They certainly are.
Question put and agreed to.
Clause 12 accordingly ordered to stand part of the Bill.
Clause 13
Renumbering of provisions relating to technical education qualifications
Question proposed, That the clause stand part of the Bill.
Alex Burghart
The clause sets out changes to the numbering of existing sections to the Apprenticeships, Skills, Children and Learning Act 2009, allowing for new and existing provisions to be sequenced and numbered in a logical manner. This is a technical but necessary consequential change to the legislation, resulting from other provisions in this chapter of the Bill.
The Chair
We are all grateful for that clarification.
Question put and agreed to.
Clause 13 accordingly ordered to stand part of the Bill.
Ordered, That further consideration be now adjourned. —(Michael Tomlinson.)