Skills and Post-16 Education Bill [Lords]

(Limited Text - Ministerial Extracts only)

Report stage
Monday 21st February 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Education (Alex Burghart)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 1—Apprenticeships for prisoners—

“Notwithstanding any other statutory provision, prisoners in English prisons may participate in approved English apprenticeships, as defined by section A1 of the Apprenticeships, Skills, Children and Learning Act 2009.”

The aim of this new clause is to ensure that prisoners can start Apprenticeships while they are serving their sentence.

New clause 2—Provision of opportunities for education and skills development—

“(1) Any person of any age has the right to free education on an approved course up to Level 3 supplied by an approved provider of further or technical education, if he or she has not already studied at that level.

(2) Any approved provider must receive automatic in-year funding for any student covered by subsection (1), and supported by the Adult Education Budget, at a tariff rate set by the Secretary of State.

(3) Any employer receiving apprenticeship funding must spend at least two thirds of that funding on people who begin apprenticeships at Levels 2 and 3 before the age of 25.”

This new clause would provide for education and skills development up to a Level 3 qualification for any person of any age supplied by an approved provider if they have not already studied at that level.

New clause 3—Amendments to section 42B of the Education Act 1997—

“(1) Section 42B of the Education Act 1997 is amended as follows.

(2) After subsection (1) insert—

“(1A) In complying with subsection (1), the proprietor must give a representative range of education and training providers (including, where reasonably practicable, a university technical college) access to registered pupils on at least three occasions during each of the first, second and third key phase of their education.”

(3) After subsection (2) insert—

“(2A) The proprietor of a school in England within subsection (2) must—

(a) ensure that each registered pupil meets, during both the first and second key phase of their education, with a representative range of education and training providers to whom access is given, and

(b) ask providers to whom access is given to provide information that includes the following—

(i) information about the provider and the approved technical education qualifications or apprenticeships that the provider offers,

(ii) information about the careers to which those technical education qualifications or apprenticeships might lead,

(iii) a description of what learning or training with the provider is like, and

(iv) responses to questions from the pupils about the provider or technical education qualifications and apprenticeships.

(2B) Access given under subsection (1) must be for a reasonable period of time during the standard school day.”

(4) After subsection (5)(a), insert—

“(aa) a requirement to provide access to a representative range of education and training providers to include where practicable a university technical college;”

(5) In subsection (5)(c), after “access” insert “and the times at which the access is to be given;”

(6) After subsection (5)(c), insert—

“(d) an explanation of how the proprietor proposes to comply with the obligations imposed under subsection (2A).”

(7) After subsection (9), insert—

“(9A) For the purposes of this section—

(a) the first key phase of a pupil’s education is the period—

(i) beginning at the same time as the school year in which the majority of pupils in the pupil’s class attain the age of 13, and

(ii) ending with 28 February in the following school year;

(b) the second key phase of a pupil’s education is the period—

(i) beginning at the same time as the school year in which the majority of pupils in the pupil’s class attain the age of 15, and

(ii) ending with 28 February in the following school year;

(c) the third key phase of a pupil’s education is the period—

(i) beginning at the same time as the school year in which the majority of pupils in the pupil’s class attain the age of 17, and

(ii) ending with 28 February in the following school year.”

This new clause is intended to replace Clause 14. This clause will ensure that section 2 of the Technical and Further Education Act 2017, commonly known as the Baker Clause, is legally enforceable.

New clause 4—Green Skills Strategy—

“The Secretary of State must, before the end of the period of 12 months beginning with the day on which this Act is passed, publish a Green Skills Strategy, setting out a plan to support people to attain the skills, capabilities or expertise through higher education, further education or technical education that directly contribute to, or indirectly support, the following—

(a) compliance with the duty imposed by section 1 of the Climate Change Act 2008 (United Kingdom net zero emissions target),

(b) adaptation to climate change, or

(c) meeting other environmental goals (such as restoration or enhancement of the natural environment).”

This new clause would require the Secretary of State to publish a national green skills strategy which would set out a plan to support people to attain skills which will directly contribute to or indirectly support climate change and environmental goals.

New clause 5—Universal Credit conditionality review—

“The Secretary of State must review universal credit conditionality with a view to ensuring that adult learners who are—

(a) unemployed, and

(b) in receipt of universal credit

remain entitled to universal credit if they enrol on an approved course for a qualification which is deemed to support them to secure sustainable employment.”

This new clause is intended to ensure greater flexibility for potential students in receipt of universal credit to take up appropriate training that will better equip them for employment.

New clause 6—Skills levels in England and Wales: review—

“(1) Within one year of the passing of this Act, and each year thereafter, the Secretary of State must prepare and publish a report on overall levels of skills in England and Wales and their economic impact, including regional and demographic breakdowns.

(2) The report under subsection (1) must in particular examine—

(a) cohort sizes and compositions of all qualifications from entry level to level 8,

(b) cohort skill achievement rates, in terms of result breakdowns,

(c) cohort placement success rates, in terms of numbers in further qualifications or new employment within 12 months after achieving each qualification,

(d) job retention and labour market turnover,

(e) labour productivity, and

(f) job satisfaction and fulfilment.

(3) The report under subsection (1) must be laid before both Houses of Parliament.”

This new clause would require the Secretary of State to publish an annual report on overall skills levels and economic output across England and Wales.

New clause 7—Lifetime skills guarantee—

“(1) All persons have the right to study a fully-funded approved course for a qualification up to level 3 supplied by an approved provider of further, higher, or technical education if they—

(a) do not currently hold a level 3 qualification, or

(b) currently hold a level 3 qualification and would benefit from re-training.

(2) The Secretary of State must prepare and publish a list of approved courses for the purposes of subsection (1).

(3) The Secretary of State must consult on the list of approved courses to ensure that they are compatible with national levelling up and skills strategies.

(4) The Secretary of State must review the list of approved courses at least every six months with a view to ensuring that they reflect the skills needed as the economy changes.”

This new clause places the Government lifetime skills guarantee on a statutory footing, ensuring that those without an A-level or equivalent qualification, or who hold such qualification but would benefit from reskilling, are able to study a fully funded approved course.

New clause 8—National Strategy for Integrated Education —

“(1) The Secretary of State must, before the end of the period of 12 months beginning with the day on which this Act is passed, publish a National Strategy for Integrated Education.

(2) A strategy under this section must—

(a) support the creation or development of courses offering integrated academic and vocational content, or a range of academic and vocational modules which can be combined into hybrid qualifications, at levels 4 to 8;

(b) support the creation or development of institutions offering courses under paragraph (a);

(c) set out a role for training programme providers in designing courses under paragraph (a).

(3) The Secretary of State must consult the Institute for Apprenticeships and Technical Education, Ofqual, and Quality Assurance Agency on any strategy to be published under this section.

(4) The Secretary of State must make regulations within 24 months of the passing of this Act to provide for such elements of the strategy as require enactment through statutory provisions.”

New clause 9—Integrated compatibility of modules and accreditation—

“(1) The Secretary of State must publish a National Accreditation Framework for Modular Learning. A framework must include guidance on—

(a) the unbundling of modular components of courses and qualifications;

(b) the stacking of modular components of courses and qualifications; and

(c) the transfer of modular components between institutions,

for the purposes of ensuring—

(a) (i) transparency;

(ii) mutual recognition of qualifications across academic, vocational and integrated further and higher education institutions; and

(iii) clarity on the options available to learners for unbundling or stacking modules into an overall qualification which meets the needs of their own professional development, and skills gaps within the national labour-market.

(2) The Institute for Apprenticeships and Technical Education, Ofqual, and Quality Assurance Agency must assist in the preparation of any framework under this section.

(3) A framework under this section must set out a role for the Institute, Ofqual and the Quality Assurance Agency in ensuring the effective operation of the framework.”

New clause 10—Role of employers in employee reskilling—

“(1) The Secretary of State may make regulations for the purpose of ensuring that employers provide—

(a) a minimum number of hours per year for in-work training and skills development for employees; and

(b) a minimum number of hours of retraining support for courses chosen at the discretion of former employees who have been made redundant, as part of an employer’s redundancy package.

(2) The minimum numbers of hours under section (1)(a) and (b) are to be set by the Secretary of State.

(3) In this section, “employer” has the same meaning as in section 4.

(4) The Secretary of State may, by regulation, establish a skills tax credit, for the purpose of—

(a) making allowance for funding the provision of time and training under subsection (1); and

(b) incentivising and rewarding employers for investing the skills development of their employees.”

New clause 11—Transition to 16+ education—

“(1) The Secretary of State may make regulations requiring local authorities to fulfil the function of an admissions authority with regard to admissions to further education courses provided within their administrative jurisdiction, for the purposes of ensuring admission to further education is allocated in an open and fair manner.

(2) Regulations under this section may require local authorities to run admissions processes in relation to further education in a manner comparable with the processes set out in Part III of the School Standards and Framework Act 1998 in so far as they relate to the admissions processes for primary and secondary education.

(3) In this section, “further education” has the same meaning as in the Education Act 1996 (see section 2 of that Act).”

This new clause would allow the Secretary of State to require local authorities to run admission to further education in a manner comparable to admissions for primary and secondary education.

New clause 13—Access to Sharia-compliant lifelong learning loans—

“(1) The Secretary of State must make provision by regulations for Sharia-compliant student finance to be made available as part of the lifelong learning entitlement.

(2) Regulations under this section are to be made by statutory instrument, and a statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”

This new clause allows the Secretary of State to make provision for Sharia-compliant LLE loans.

New clause 14—Recognition of skills in the energy sector—

“(1) Within six months of the passing of this Act, the Secretary of State must publish an Energy Sector Skills Strategy, for the purposes of—

(a) achieving cross-sector recognition of core skills and training in the offshore energy sector, including the oil and gas sector, and the renewable energy sector; and

(b) ensuring training and training standards bodies within the offshore energy sector adopt a transferable skills and competency-based approach to training.

(2) The strategy must target all workers, whether directly or indirectly (sub-contracted or agency) employed, or engaged through day-rate or self-employed contract models.

(3) When producing the strategy, the Secretary of State must consult with—

(a) workers within the offshore energy sector;

(b) unions within the offshore energy sector;

(c) energy companies; and

(d) training standards bodies relevant to the offshore energy sector.

(4) The Secretary of State must implement the strategy within 12 months of the passing of this Act. The Secretary of State may make regulations to provide for such elements of the strategy as require enactment through statutory provision.”

This new clause would facilitate cross-sector recognition of skills and training between the oil and gas sector and the renewable energy sector.

New clause 15—Retraining guarantee for oil and gas workers—

“(1) The Secretary of State must guarantee access to training, grants, resources and other support facilities to workers in the oil and gas sector, including—

(a) assessment of existing skills and training;

(b) understanding of skills matrices for careers in the offshore energy sector, including renewable energy and oil and gas;

(c) advice on alternative green energy jobs; and

(d) funding to complete training relevant to the green energy sector;

for the purpose of proactively supporting oil and gas workers wishing to transition to careers in the green energy sector, regardless of their current contract status.

(2) Support under this section must be made available to—

(a) all workers, whether directly or indirectly (sub-contracted or agency) employed, or engaged through day-rate or self-employed contract models; and

(b) workers who have recently left the oil and gas sector.”

This new clause would establish a retraining guarantee for oil and gas workers seeking to leave the sector, supporting them in transitioning to green energy jobs.

New clause 16—National review and plan for improving levels of adult literacy—

“(1) Within two years of the passing of this Act, and every two years thereafter, the Secretary of State must review adult literacy levels in England, for the purpose of improving adult literacy levels.

(2) A review under this section must identify the number of adults with literacy levels—

(a) below Entry Level 1,

(b) below Entry Level 2,

(c) below Entry Level 3,

(d) below Level 1, and

(e) below Level 2.

(3) The findings of a review under this section must be published in a report, which must be laid before Parliament.

(4) A report under this section must include a breakdown of the levels of adult literacy by local authority area.

(5) When a report under this section is laid before Parliament, the Secretary of State must also publish a strategy setting out steps the Government intends to take to improve levels of adult literacy in England.”

This new clause would require the Secretary of State to, every two years, review levels of adult literacy in England, publish the findings of that review and set out a strategy to improve levels of adult literacy in England.

New clause 17—Availability of humanities, social sciences, arts and languages courses—

“(1) The Secretary of State must review the availability of humanities, social sciences, arts and languages courses at Entry Level through to Level 4 in a specified area to which a local skills improvement plan relates.

(2) The outcome of a review under this section must be—

(a) provided to the relevant employer representative body for a specified area; and

(b) laid before both Houses of Parliament.

(3) Where a review under this section identifies inadequate availability of courses in a specified area, the Secretary of State must take steps to remedy this inadequacy, to ensure courses are available in all specified areas.

(4) A review under this section in relation to a specified area must be conducted each time the Secretary of State approves and publishes a local skills improvement plan for that specified area.”

This new clause requires the Secretary of State to review the availability of humanities, social sciences, arts and languages courses at Entry level to Level 4 in areas to which an LSIP applies. It would also require the Secretary of State to take steps to remedy inadequate availability of the courses.

Amendment 2, page 2, line 36, after “authority” insert

“and further education providers in the specified area”.

This amendment would provide for employer representative boards to develop local skills improvement plans in partnership with local further education providers.

Amendment 18, page 3, line 6, at end insert—

“(ba) draws on responses to a public consultation conducted by the relevant local authority for the specified area on the education and training that should be made available in the relevant area, and”

This amendment would require the Secretary of State to draw on responses to a public consultation run by the relevant local authority, when publishing a local skills improvement plan for a given area.

Amendment 16, page 3, line 10, at end insert—

“(d) lists specific strategies to support learners who have or have previously had, a statement of Special Educational Need or an Education and Health Care Plan into employment, including but not limited to provision for supported internships.”

This amendment would require local skills improvement plans to list specific strategies to support learners who have or have previously had, a statement of Special Educational Need or an Education and Health Care Plan into employment, including but not limited to provision for supported internships.

Amendment 14, in clause 2, page 3, line 15, after “England” insert

“with the consent of the relevant local authority, Local Enterprise Partnership (LEP) and, where relevant, Mayoral Combined Authority”.

This amendment provides for local authorities to give consent in the designation of employer representative bodies, to ensure employer representative bodies are representative of the areas they cover.

Amendment 4, page 3, line 20, after “employers”, insert

“and any relevant community, education, arts, faith and third sector organisations”.

Amendment 5, page 3, line 41, at end insert—

‘(6) The functions of the Secretary of State under this section may also be exercised by a relevant mayoral combined authority in England, where the designation relates to an area within their administrative jurisdiction, provided that education and skills are within the relevant authority’s devolved competence.”

Amendment 17, page 3, line 41, at end insert—

‘(6) Representative bodies which are employers, and employer organisations which are members of employer representative bodies, must sign up to the Disability Confident employer scheme within six months of being designated, or becoming a member of, the employer representative body.”

Amendment 6, in clause 3, page 4, line 18, at end insert—

‘(5) The functions of the Secretary of State under this section may also be exercised by a relevant mayoral combined authority in England, where the designation relates to an area within their administrative jurisdiction, provided that education and skills are within the relevant authority’s devolved competence.”

Amendment 12, 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 considering whether 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.

Amendment 15, in clause 7, page 10, line 37, at end insert—

‘(2A) Subsection (2) does not apply to the withdrawal of level three courses for the period of four years beginning with the day on which this Act is passed.”

This amendment seeks to reintroduce the Lord’s amendment (amendment 29), preventing IfATE from withdrawing approval of established level 3 courses including BTECs for four years.

Amendment 1, page 17, line 28, leave out clause 14.

This amendment is consequential on NC3.

Amendment 8, in clause 14, page 17, line 28, at end insert—

‘(A1) Section 42A of the Education Act 1997 (Provision of careers guidance in schools in England) is amended as follows—

“(d) is provided by a person who is registered with the Career Development Institute, and who holds a level 4 qualification.”’

Amendment 13, page 18, line 5, at end insert—

“(aa) ensure that each registered pupil receives two weeks’ worth of compulsory work experience,

(ab) ensure that each registered pupil receives face to face careers guidance, and”.

This amendment would require every school to provide face to face careers guidance for every pupil and two weeks’ worth of compulsory work experience for every registered pupil.

Amendment 7, page 19, line 1, at end insert—

‘(9B) Local Authorities shall have oversight of the provisions in subsection (2A) and subsection (5), for the purposes of ensuring the provision of careers advice is consistent and high quality.”

Amendment 3, in clause 15, page 20, line 29, at end insert—

‘(3) After section 22(2)(c) of the Teaching and Higher Education Act 1998 insert—

“(ca) for the establishment of a system of means-tested financial grants, for the purpose of ensuring that financial hardship is not a dissuading factor in the take-up of higher education or further education modules or courses.”’

Amendment 11, in clause 34, page 40, line 20, at end insert—

“(e) Sections [Recognition of skills in the energy sector] and [Retraining guarantee for oil and gas workers].”

This amendment is consequential on NC14 and NC15.

Government amendments 9 and 10.

[Alex Burghart]

It is a pleasure to open the debate on Report of the Skills and Post-16 Education Bill. We had a very good debate in Committee, and I look forward to contributions from Members from across the House today.

I rise to speak to new clause 12 and amendments 9 and 10 in the name of my right hon. Friend the Secretary of State. The Government announced their intention to table new clause 12 in Committee last November. It inserts three new sections into the Higher Education and Research Act 2017, and will give the Office for Students, the higher education regulator in England, an explicit power to publish information about its compliance and enforcement activity in relation to higher education providers.

It is important that the OfS is able to publish such information in the form of notices, decisions and reports, and it is in the public interest that it should be transparent in its work, particularly when it is investigating providers for potential breaches of the registration conditions placed on them by the regulator. Publication by the OfS regarding its compliance and enforcement functions will demonstrate that appropriate actions are being taken by the regulator, and that will ensure that the reputation of higher education in England is maintained, and that we bear down on poor provision.

Members can be reassured that this power will be discretionary, as there may be reasons why the OfS may not consider it appropriate to publish certain information. The new clause provides, in proposed new section 67A(5) of the Higher Education and Research Act 2017, various factors that the OfS must take into account when deciding whether to publish, including the public interest, but also whether publication would or might seriously and prejudicially affect the interests of a body or individual. The OfS should be transparent about such work, showing the sector, students and the public that it is intervening when necessary, and consequently providing confidence in the regulatory system.

New clause 12 also includes provision in proposed new section 67C to protect the OfS from defamation claims when, for example, it announces the opening of an investigation or publishes regulatory decisions. This protection provides qualified privilege, meaning that there is protection unless publication is shown to have been made with malice.

Other regulators, such as the Competition and Markets Authority, Ofsted and the Children’s Commissioner, have similar powers and protections. We are seeking a power and protection in this new clause to ensure that the OfS has what it needs for the purpose of transparency, and note the need to be as consistent as possible across the statute book. We believe there will be little material impact on the sector as a result of this change, as it simply allows more transparency about what the OfS is already doing.

Publication of notices, decisions and reports will become increasingly important as the OfS scales up its work on driving up quality in higher education and on protecting freedom of speech and academic freedom under the Higher Education (Freedom of Speech) Bill.

Amendment 9 brings new clause 12 into force two months after Royal Assent, and amendment 10 amends the long title to cover new clause 12. I hope the House will support these amendments.

[Mr Toby Perkins (Chesterfield) (Lab)]

I rise to speak to amendments 12 to 16. I start by saying how much I welcome the interest among right hon. and hon. Members in improving this Bill. It is disappointing that the Bill was scheduled for debate on the first day back from recess, when the Government could have predicted that there would be a considerable number of other important statements, and so the House has less than two and a half hours to debate the 35 amendments before us. The further education sector has often been described as a Cinderella service and has often felt that its crucial role as the economic heartbeat of this country is undermined; there is nothing in the scheduling of this Bill or today’s debate to contradict that view.

Notwithstanding that, it is always a great pleasure to debate further education policy. Our country’s Government have presided over a productivity crisis, created a cost of living crisis because they are a high-tax, low-growth Government, and serially under-funded and undermined the institutions that are key to addressing those failings. Yet there is widespread recognition of the need for change, so there was considerable anticipation when the Government announced they were bringing forward a skills Bill to address a generation of failure.

We all remember that the White Paper that preceded the Bill was described as a “once-in-a-generation reform”, but Ministers seem determined to resist any substantive changes to the skills Bill. I wish those Conservative Members who have proposed amendments to the Bill well, but I am not hopeful that the Government are of a mind to allow their Bill to be improved.

We have a skills Bill here that is silent on apprenticeship reform. Our disappointment about the omission of apprenticeships from the Bill is compounded by the absence of any recognition that the apprenticeship levy has, according to the Chartered Institute of Personnel and Development, “failed by every measure”.

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[Wera Hobhouse (Bath) (LD)]

Further education should be about creating a workforce that meets the needs of our national and local economies. It should be about lifelong learning that gives everyone the power to follow the path that best suits them. It should especially be at the front and centre of our covid recovery and, last but not least, it should help us with the transition to net zero.

There was plenty of room to improve this Bill when it was introduced, and there still is. I regret that, so far, the Government seem to be missing this opportunity, but it is never too late. I favour new clause 4, which would require the Secretary of State to introduce a green skills strategy for higher, further and technical education. There is a key opportunity for further education in our effort to reach net zero, but less than 1% of college students are on a course with broad coverage of climate education. I commend the work of the excellent Bath College, which is already making strides to embed climate education in its curriculum, but the Government should step up, too.

We all know how important it is to manage the transition to net zero, which brings me to new clauses 14 and 15 and amendment 11 tabled by the hon. Member for Brighton, Pavilion (Caroline Lucas). The offshore training regime is a barrier to offshore oil and gas workers transitioning their skills into the renewables sector. A new offshore training scheme is needed to facilitate cross-sector recognition of core skills and training in the offshore energy sector and to provide a retraining guarantee for oil and gas workers who wish to transition to careers in the green energy sector. What a missed opportunity it would be if we did not help people working in such industries, which will soon no longer be in place, to transition to a career in industries such as the renewables sector.

The Government say this Bill will transform opportunities for all, so why have they reversed changes that could significantly improve the accessibility and flexibility of qualifications—we have heard some powerful contributions on this—especially those aimed at learners with special educational needs and disabilities? Over a quarter of all 16 to 18-year-olds in further education have a learning difficulty or a disability, and I pay tribute to Project SEARCH, a partnership run by Bath and North East Somerset Council, Bath College and Virgin Care.

Nationally, too, many disabled people face huge difficulties in accessing employment after leaving school. Our disability employment gap stands at 30%.I therefore add my support to amendment 16, which would require local skills improvement plans to list specific strategies to help into employment those learners who have or have had an education, health and care plan. Again, this seems to be another missed opportunity to help those in society who face the biggest disadvantages to access employment, which is what they want. Whenever we talk to disability groups, what they want is employment; helping these groups into employment should be at the core of this Bill.

Although I will support the Bill on Third Reading, I am disappointed that the opportunity to transform further education has been so entirely missed.

[Alex Burghart]

With the leave of the House, I will speak to some of the amendments that have been discussed this evening. It has been a real pleasure to have been involved with this Bill on Second Reading, in Committee and on Report this evening. I feel the strength of feeling across the House for the skills agenda. This is an extraordinarily exciting time for skills, as my right hon. Friend the Member for Harlow (Robert Halfon) made clear. Never in my lifetime has there been such a hunger for skills in the economy, and that is a hunger that this Government will feed, because we are building a system in which qualifications, co-designed with employers, will give students the skills the economy needs. We will see good opportunities, allowing everyone to take a step forward in their life and career, and qualifications, backed by employers, that feed the needs of the economy.

In the time I have, I want to get through as many of the amendments as I can. First, I will address new clause 1, which stands in the name of my right hon. Friend the Member for Harlow, the Chair of the Education Committee. I pay tribute to his fight for the cause of apprenticeships for prisoners; I am delighted that my right hon. Friend the Deputy Prime Minister and Lord Chancellor made an announcement to this effect on 11 January, and I am happy to put on record that my right hon. Friend the Member for Harlow was instrumental in driving this forward. We do not need to accept this new clause because we have seen that this can be done in secondary legislation, and that changes to primary legislation are not needed.

I turn to new clause 2, also tabled my right hon. Friend, and to new clause 7, tabled by my right hon. Friend the Member for Kingswood (Chris Skidmore), who did sterling work when he was on the Front Bench. Those provisions both seek to place a level 3 entitlement on a statutory footing. The Government are delighted by the enthusiasm of Members on both sides of the House and in both Chambers for our free courses for jobs offer and the lifetime skills guarantee that the Prime Minister announced last April. As the House will know, it gives adults who do not have a level 3 qualification the opportunity to get a qualification in high-value subjects for free, regardless of age. That major step forward will transform life chances. We do not think it is right to put this offer into legislation; that would constrain the Government in how they allocate resources and make it more difficult to adapt the policy to changing circumstances, including for adults most in need. For example, only last November, the Secretary of State announced that from this April, the offer will expand to include any adult in England who is unemployed or earns below the national living wage annually, regardless of their prior qualification level.

New clause 2 also includes a provision requiring any employer who receives apprenticeship funding to spend at least two thirds of that funding on people who begin apprenticeships at level 2 and 3 before the age of 25. We fully respect what the new clause is trying to do, but we point to the great progress we are already making on this score. In the first quarter of last year—the most recent one for which we have figures—62% of apprenticeship starts were for people under the age of 25, and level 2 and 3 apprenticeships accounted for 71% of all starts. That is wonderful stuff. Also, during the recent National Apprenticeship Week, I met a huge number of young and not-so-young people studying level 6 apprenticeships, which are making an enormous difference to their life, giving them huge opportunities in a way that is a greatly respected by employers. I do not wish to see arbitrary levels fixed in legislation.

Amendment 12, tabled by the hon. Member for Chesterfield (Mr Perkins), seeks to require a review of the operation of the apprenticeship levy, particularly at level 3 and below. We discussed this issue at some length in Committee. I reiterate that the Government have already radically reformed apprenticeships to put employers at their heart, increasing investment and improving quality. As I just said, we are starting to see major improvements at levels 2 and 3.

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20:56

Division 187

Ayes: 154

Noes: 298

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21:12

Division 188

Ayes: 154

Noes: 298

Clause 14

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21:24

Division 189

Ayes: 158

Noes: 291

Clause 35

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[The Secretary of State for Education (Nadhim Zahawi)]

I beg to move, That the Bill be now read the Third time.

One year ago, the Government published their White Paper titled “Skills for Jobs: Lifelong Learning for Opportunity and Growth”. We set out our ambition to deliver landmark reforms to post-16 education and training. For too long, this sector has not received the attention it deserves. We do not have enough people with the skills needed for important sectors such as engineering—one that is close to my heart—and health and social care. In many ways, that has held back our economy and prevented people from fulfilling their potential.

We must continue on our road to recovery as a nation from the coronavirus pandemic and transition it to endemic, as we witnessed today with the Prime Minister’s statement to the House. We also need to adapt our economy and society to meet our commitment to net zero by 2050 and maintain our global leadership on climate change following COP26, with all the opportunities that there are in those new and emerging sectors for the economy.

I am glad to say that our economy is in a strong position to respond to these challenges, with the highest growth rate in the G7. On jobs, we have a record 1.2 million vacancies to fill; that is 59%—almost 60%—higher than pre-pandemic levels. Unemployment is falling and is now just 4.1%, and youth unemployment, especially, is at a record low.

As Education Secretary, and in my previous roles on the vaccine roll-out and as a Business Minister, I have met countless employers who tell me about the progress that their businesses could make if they could only hire people with the right skills. I have also met young people and adults whose lives have been transformed because they had the chance to upskill or learn a new trade. That is why I am so focused on—some will say obsessed with—delivering an ambitious skills agenda to transform the prospects of people up and down our great country.

Higher skills lead to higher productivity, which in turn leads to higher wages, ensuring that we remain globally competitive and creating the economic growth—that dynamic economy—needed to pay for our world-class public services. As part of that, we are quadrupling places on skills bootcamps, with intensive courses from coding to construction. Recent data shows that more than 54% of the 2,210 adults who completed skills bootcamps went on to secure a new role or a promotion. Apprenticeships have bounced back to pre-pandemic levels, with more than 130,200 apprenticeship starts between August and October last year. We are delivering the roll-out of T-levels, with a plan for up to 100,000 T-level entrants by the end of the spending review period, supported by our £3.8 billion investment in skills over this Parliament.

The Bill and our wider skills reforms are our opportunity to tackle the challenges and unlock the full potential of our people and the productivity of our economy. We have heard how the Bill will deliver essential reform to further education and skills in our country. Today, we are taking a significant step towards that goal.

For learners, the Bill will provide much-needed flexibility. I have seen for myself the flexi-job apprenticeships at the brilliant Pinewood Studios, which is making the films of the future. We are enabling people to study or retrain at any stage of their life with the reassurance that the skills they gain hold genuine currency with employers in their area. As many right hon. and hon. Members have said today, we want to see greater parity between further and higher education, no longer pushing students towards a one-size-fits-all, three-year, full-time degree.

For employers, the Bill will solidify and anchor their critical position at the heart of the skills system and give them a vital role in shaping local skills provision in partnership with providers. That will ensure that post-16 education and training is directly aligned to the skills that employers actually need to grow, now and in future, and will help employers to get the skilled workforce that they need to compete internationally.

For the FE sector, the Bill will increase confidence in the standard of qualifications, thanks to a package of measures that will help to drive up quality standards across the technical education system. In taking forward the Bill, we recognise the huge importance of the FE sector to our economy and society and its role in upskilling our workforce and creating access to opportunities, no matter someone’s background.

Alongside our wider skills reforms, the Bill will deliver on our plans to level up across the country. People will be able to get the quality education and training that they need for work at any stage of their lives in all communities across the country, ending the perception that the only way to get on in life is by moving to London or another big city. From 2025, our lifetime loan entitlement will give people access to loan funding to gain qualifications at levels 4 to 6, whether they are an 18-year-old leaver from Bradford, a 40-year-old career changer from Plymouth or a parent in Newcastle looking to return to paid work after a career break.

We want our reforms to work for everyone. Several colleagues spoke about learners with special educational needs and disabilities, who make up a significant proportion of our student population; looking ahead, they will be supported by the publication of our SEND review. Pupils in schools, when thinking about their future choices, will have access to high-quality careers advice to help them to decide the best route for them—I heard the comments of my right hon. Friend the Member for Harlow (Robert Halfon) about his new clause 3. FE teachers will be supported through high-quality initial teacher training that helps them to deliver excellent skills provision. That is what the Bill delivers.

I thank hon. Members across the House for their contributions over the past few months. I believe that the Bill will leave this place in a much improved state, with amendments that have enabled us to fine-tune the measures in it and make it much stronger. The debate on technical qualifications has been particularly passionate and robust. I hope Members will be reassured that measures in the Bill will improve the quality of such qualifications for all learners, whatever their background or career ambitions. We have listened to concerns about qualifications reform. That is why, on Second Reading, I announced an extra year before the implementation of our reform timetable to allow more time for all involved to prepare for the changes.

The Minister for apprenticeships and skills, my hon. Friend the Member for Brentwood and Ongar (Alex Burghart), has led the Bill through its passage with great dedication, and has spoken passionately at each of its stages. My predecessor, my right hon. Friend the Member for South Staffordshire (Gavin Williamson), had the vision to bring forward this transformational Bill; he could never have done it without my hon. Friend the Member for Chichester (Gillian Keegan) by his side, and I know that skills and further education remain an area of great personal commitment for her and for him. I thank my right hon. Friend the Member for Harlow (Robert Halfon), the Chair of the Education Committee, for his support for the Bill. He has raised many important issues, tonight and every night, including skills and training for prisoners. I hope that he is reassured by my words today, and by our clear commitment to making apprenticeships available to prisoners.

My thanks also go to the Whips; to my Parliamentary Private Secretary, my hon. Friend the Member for Wantage (David Johnston); and, of course, to my officials, who have worked so hard and have been so dedicated to the delivery of the Bill. As for the Opposition, the hon. Members for Chesterfield (Mr Perkins) and for Warwick and Leamington (Matt Western) have engaged constructively at every stage of the Bill, and I am grateful to them both for their work in challenging us to ensure that it was the very best it could be.

I am also grateful to the Committee for its work in scrutinising the Bill, and I am indebted to my right hon. Friend the Member for Basingstoke (Mrs Miller) and the hon. Member for Eltham (Clive Efford) for chairing it. I pay tribute to my hon. Friends on the Committee: my hon. Friends the Members for Great Grimsby (Lia Nici), for Mansfield (Ben Bradley), for Warrington South (Andy Carter), for Bassetlaw (Brendan Clarke-Smith), for Loughborough (Jane Hunt), for Ipswich (Tom Hunt) and for Guildford (Angela Richardson), all of whom brought considerable experience and expertise in further education, which benefited the Bill enormously.

I am, of course, hugely grateful to noble Lords for their contributions in the other place. The issues that they raised have helped us to improve the Bill, but I hope they will understand why it was not the right place for all their amendments. Finally, I thank the Clerks and officials for their diligent work in supporting the Bill’s passage through Parliament. It is an honour to lead the great Department that is delivering this transformational Bill. I look forward to the benefits that it will bring for learners, employers and the economy, and I commend it to the House.

[Several hon. Members rose—]