Universities

Baroness Barran Excerpts

Thursday 14th November 2024 Lords Chamber

[Baroness Barran (Con)]

My Lords, I join other noble Lords in congratulating the noble Baroness, Lady Warwick of Undercliffe, on securing this important and excellent debate. I thank all noble Lords for their insightful and varied contributions.

I welcome the blueprint prepared by Universities UK and its distinguished commissioners. The breadth of the report makes it hard to draft a succinct speech, but it underlines the scale, complexity and opportunities that our universities offer. I also welcome the outcomes that the blueprint aspires to: expanding opportunity, improving collaboration across the tertiary sector, generating stronger local growth, securing our future research strength and establishing a global strategy for our universities.

I am grateful to my noble friend Lord Lucas for being the first and possibly only Member to suggest that the report could have been a bit more self-critical. I would have been fascinated to hear more about how technology in general, and AI in particular, will in future shape our degrees, our teaching, our research and the university experience overall—but that is perhaps for another document. I also absolutely agree with my noble friend about transparency on costings and the differential impact from different universities and institutions—that would be really welcome.

This debate comes hot on the heels of that led by the noble Lord, Lord Krebs, recently on the sustainability of the university sector. The blueprint covers the funding picture in detail, in all its aspects. The blueprint argues that there are two phases to achieving the outcomes to which it aspires. The first is about more funding for teaching, student maintenance and research, and the second phase relates to the transformation agenda, which is set out in the document to be led by universities and supported by government. Both are then underpinned by improved regulation and better measurement of impact. I wonder what the Minister thought when she read that and whether she shares my concern that the two phases need to be linked and that the transformation must be in parallel with any additional funding; otherwise, the delicate balance between what is paid for by the taxpayer and what is paid for by the graduate might tip too far towards the taxpayer.

Similarly, what are the Minister’s thoughts about fees increasing in future in line with inflation? As noble Lords have pointed out, the increase in employers’ national insurance contributions has, in effect, wiped out the increase in fees which her right honourable friend the Secretary of State spoke about earlier this month. If fees will increase in line with inflation in future, does the Minister agree that this must be mirrored by an increase in the quality of degrees as it relates to high-skilled employability? As the blueprint itself states, higher earnings are clearly not the only reason to go to university, but they are an important one which should not be dismissed and without which we will not achieve the faster economic growth that we all aspire to.

Does the Minister agree with what the Institute of Fiscal Studies said in an article published in September this year, in which it talked about potential changes to the fiscal rules? It said:

“Another issue is that departments may also face new incentives to design policies that create financial assets (e.g. student loans rather than a graduate tax to finance higher education) purely”—


I emphasise “purely”—

“because of differences in how the accounting treatment affects ease of compliance with a”

public sector net financial liabilities target. How will the Minister ensure that policy in this area, which is so important, is not distorted and other options for reform are not rejected because of this potential conflict of interest?

My noble friend Lady Bottomley talked about room for more radical and innovative approaches. The blueprint rightly raises important questions about cross-subsidisation of different subjects and of research and, indeed, describes this as “not fit for purpose” and “unsustainable”. I would be grateful for the Minister’s thoughts on that.

The blueprint also raises the thorny issue of the affordability of the teacher pension fund for universities. What is the Government’s attitude to giving universities more flexibility in relation to pensions?

The blueprint sets out an ambitious vision for research in our universities, and Universities UK rightly focuses on the importance of R&D and of full cost recovery. I confess that I am concerned at the prospect of having a target for R&D spend as a percentage of GDP and would rather focus strategically on the areas of research that yield the highest social and economic impact. The data in the report clearly shows that full economic cost recovery is highest in the most research-intensive universities, at 74%, compared with below 50% for the less research-intensive ones, although I totally accept the point made by the noble Lord, Lord Krebs, about the absolute size of the shortfall in our largest research institutes. I wrote in my notes that I am to make “jam” points, and then could not remember what I meant, but I think this is about spreading the jam, which he mentioned. I do not know whether there were recovery percentages by subject in the report, but it would be interesting to understand where we should focus for maximum impact and affordability.

In the debate that the noble Lord, Lord Krebs, led recently, there was a discussion about increased specialisation in our universities, and the noble Lord, Lord Rees of Ludlow, raised the subject again today. Does the Minister have more to say about the Government’s view on moving to more specialisation between research and teaching universities, particularly in a world where the giant tech companies have more to spend on research than all our universities combined?

Despite having more time than other noble Lords, as ever my speech is too long. I am going to skip ahead to the section on local growth. I was glad that the noble Baroness, Lady Prashar, highlighted the impact of Royal Holloway, in financial terms and the partnership that it has created. The report highlights the regional disparities that all of us across the House recognise and which so urgently need to be addressed. I remember when I was academies Minister visiting schools in some of the most deprived areas of England, where those children had exactly the same aspirations as their fellows in London and the south-east but a fraction of the opportunities. On the moral purpose, it is an area where universities do, and can do more to, make a huge contribution. I am really grateful to universities with active outreach programmes in those areas of the country for the work that they do.

Finally, in wrapping up, I echo the questions to the Minister from other noble Lords about the Horizon programme and what work the Government are doing to engage and shape its framework. On regulation, we were delighted and slightly horrified—delighted by the calls to streamline regulation but horrified by the diagram on page 107 of the report showing the extent of regulation in the sector. We remain concerned about the delays in the implementation of the freedom of speech Act.

As ever, it has been a privilege to listen to the points made. I look forward to the Minister’s remarks.

Higher Education Reform

Baroness Barran Excerpts

Tuesday 5th November 2024 Lords Chamber

[Baroness Barran (Con)]

My Lords, after relative silence in the Budget about the higher education sector, we on this side very much welcomed yesterday’s Statement from the Secretary of State for Education, but it raises a number of questions. I appreciate that the noble Baroness may want to write on some of them, but I hope that others require just a yes or no.

In the Statement, the Secretary of State talked about being “crystal clear” with students that their monthly repayments, once they graduate, will not increase. She was less than crystal clear about the fact that their total repayments will typically go up over the life of the loan. Can the noble Baroness confirm that I have understood that correctly? Have her officials calculated how much more the average student will repay once they have graduated?

The Secretary of State also talked about how she will

“secure the future of higher education so that students can benefit from a world-class education for generations to come”.

In his recent blog, Nick Hillman of the Higher Education Policy Institute took figures from the Institute for Fiscal Studies on how much the income of universities will increase as a result of the changes announced yesterday and the increase in the national insurance contributions they will need to make as a result of the changes announced in the Budget, as calculated by the Universities and Colleges Employers Association. He estimates that the net benefit to universities will be about £18 million, or £45,000 per institution.

The noble Baroness said earlier today that we on this side of the House need to understand that you have to raise money to fund public services. I assure her that we understand that very well, but the serious point is whether the two decisions the Government have made in recent days will make a material difference to universities or not. It would be helpful to be clear on that. There is also the impact of cutting fees for foundation-year courses. Is there a figure for the impact of that? Can she clarify what this means for undergraduates who have already started their course, as there was some confusion in Wales when fees were increased recently and it played out differently in different institutions? It would be helpful to know whether this will be applicable to those already part-way through their studies. The Statement was also silent on how this impacts postgraduate student fees and the disabled students’ allowance. It would be helpful to understand those changes.

In the Statement, the Secretary of State spoke of her ambition to spread opportunity to disadvantaged students, which every part of this House will firmly agree with. However, she then asserted that:

“The gap between disadvantaged students and their peers in progression to university … is the highest on record”.


I looked at the data that the department helpfully published recently and, while she might technically be right, the spirit of what has happened and the reality for disadvantaged students is very different. I am not quite sure why she chose to use free school meals as the definition of “disadvantaged” rather than the POLAR4 quintiles. Leaving those technicalities aside, if we look at what has happened in access to higher education between 2013-14 and 2022-23 for disadvantaged students using the Secretary of State’s definition, there has been a 43% increase in the percentage going to higher education compared to 25% for their peers. For high-tariff universities, the numbers for those on free school meals are up 109% compared to 48%. The percentage of more advantaged students is much bigger than that of disadvantaged students, but opportunities for disadvantaged students, which we all care about, have really improved. I hope the noble Baroness will acknowledge that.

The Secretary of State talked about a “renewed drive for efficiency” and said that the Government will not accept “wasteful spending”. We agree in principle, but can the noble Baroness give the House a sense of where the Government see waste in the sector and whether they have an estimate of what it amounts to. Can she reassure us that this will not threaten the independent status of our universities?

The Secretary of State talked about an uplift of £414 on maintenance loans. I would be grateful if the noble Baroness could confirm that this was calculated on a maximum loan for a student studying and living in London and that the average will be closer to £223 per student or 61p per day.

Looking to the future, the Secretary of State promised a policy paper on HE reform. Can the noble Baroness confirm what colour it will be—white, green or neither? Can she give the House any sense of the Government’s thinking on improving access to universities for those who have worse access today? Will it be a positive focus on particular groups or through new penalties?

Given the delay in the introduction of the lifelong learning entitlement, it would be good to hear that the Government remain committed to that, and to the work on sharia-compliant finance.

As my remarks have shown, the Statement left many unanswered questions, and I hope we see more in the forthcoming policy paper. However, despite the rhetoric in the Statement, the bottom line is that the net financial impact is hard to see for universities, so the policy paper will need to come quickly and tackle the real issues they face.

[Lord Storey (LD)]

My Lords, we welcome the Secretary of State’s Statement on universities in the Commons yesterday. Labour introduced student loans, and in opposition Keir Starmer wanted to abolish them. No doubt he cannot because of the £22 billion black hole.

We know that in 2015, the Liberal Democrats paid the price for making a pledge on tuition fees that we could not keep, but our reforms at least made the system fairer by giving more support to pupils on low incomes and ensuring that the least well-off graduates repaid the least.

Now, our universities are crying out for government to look at their funding, which has remained frozen for eight years. The Conservative Government, while espousing their importance, did nothing but abolish the maintenance grant, so that living costs became a barrier to university learning for disadvantaged students. The previous Government also cut the repayment threshold to £25,000, so that today’s students have to repay hundreds of pounds more per year than older graduates on the same salary. They lengthened the repayment period from 30 to 40 years, so today’s students will still be paying back their loans in 2066.

Does the Minister agree that the crisis in funding must be addressed, and have the Government considered how to support universities without raising fees? Will the Minister look at the benefits of international students and give universities stability in this area of policy? Finally, will the Minister look at how universities spend their allocation of £10,000 per student, so that students get value for money and a good university education experience, and the money is spent as efficiently as possible?

[The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)]

My Lords, first, I welcome the positive response to yesterday’s Statement and announcements. I think we all understand that this country is blessed with a world-class university sector whose teaching, research, contribution to the staffing of our public services, international reputation, earning and impact are significant and something we want to defend and ensure continues into the future.

Sadly, on coming into government we feared that the crisis in the funding of higher education put all these things at risk. That was the reason for taking the action we announced yesterday: to increase tuition fees by 3.1% and to reflect the challenge that students have faced, particularly from the cost of living, by increasing maintenance loans as well. We were also very clear that alongside that increase in investment that students will make in our higher education sector, we also expect to see considerable reform, which I will come on to in a moment.

Let me respond to the points raised by the noble Baroness, Lady Barran. First, on repayments, she is right that the way in which both tuition and maintenance loans are repaid means that no student will pay more per month. Of course, no student pays anything, up to £25,000-worth of annual income. The total amount a student pays depends on whether they repay within the 40-year time limit for the loan. Any student who currently would not repay within the 40 years—because they were on a low income or had gaps in work—will not pay any more with the increase in tuition fees. It is of course right that anybody who would have repaid during that time period will now have a larger debt to repay; but to reiterate, that is no cost upfront and no higher repayment per month after graduation.

On the impact of both the national insurance contributions and the changes to foundation degrees, we will publish an impact assessment alongside the statutory instrument that will bring about the increase in the fees, and we will spell out the analysis at that point. Regarding students who have already started, the intention is that the tuition fee increase will apply to new and existing students, but that could depend on the contract and arrangements made between the university and the individual student. We will make further announcements on the changes to postgraduate support and the disabled students’ allowance in due course.

The noble Baroness also raised the issue of the gap in respect of disadvantaged students. I think she conceded, as my right honourable friend stated yesterday, that this year the gap between those who are more advantaged and those who are more disadvantaged has widened. Although there are more students, both advantaged and disadvantaged, going to university now, it is not good enough to rest there: not only have we been incapable of closing that gap, but it has widened in the last year. That is why, as the first of the elements of the reform programme, we will undertake serious work with the sector, with those who support students in applying to higher education and with schools, and think about what more we can do to support anybody who could benefit from and wants to take part in higher education, so that they can access it.

We are determined to close—

[Baroness Barran (Con)]

Before the Minister moves on, first, I would be grateful if she could confirm that since 2013-14, the percentage of disadvantaged children going to university has grown faster than the percentage of those from advantaged homes. Secondly, while the free school meals measure has shown an increase in the gap, if we take the POLAR4 quintiles—I am sorry to be, as the noble Baroness, Lady Sherlock, would say, a wonk about this—the gap has decreased. Does the Minister agree with her department’s data on that?

[Baroness Smith of Malvern (Lab)]

I am sure that my department’s data on that is correct, but I stick with the point made yesterday, which is also correct: if we take the free school meals measure in the most recent year, in contrast to what happened previously, we have seen the gap widen. My broader point was that, frankly, it does not matter which measure you take, we have not seen a sufficient closing of that gap. It is still wrong that students from disadvantaged backgrounds who could benefit from higher education are not getting that benefit. That is why we will take action, alongside the sector and others, to make sure that we can improve both access to higher education and the measures of continuation and progression out of higher education. In those figures, we have seen a differential between those who are disadvantaged who come into higher education and those who are advantaged. Not only is it more difficult to get in but it is more difficult to continue in their courses and to succeed. That is where we need to take action to improve the situation.

On efficiency, we are absolutely clear that providing additional funding for higher education brings with it a responsibility for the sector to spend that money as efficiently as possible—to provide the quality of experience that students have the right to expect, and in a transparent way—and we can use appropriate metrics to measure that. We will want to do that work alongside the sector itself, but we are clear that we need to see improvements in efficiency in exchange for the increase in investment, and that that is non-negotiable.

On the maintenance loan, the important point is that the maximum loan for any student will be going up by 3.1%.

On the other areas of reform, access is very important, but we have also made it clear that universities need to play a crucial role in the Government’s growth mission. We need to see them working alongside Skills England. We need to work with them to see what more they can do to contribute to growth in the economy. They already play a crucial civic role; we want to see that strengthened so that all those who argue for universities in their areas—quite rightly, because they understand the social, cultural and economic benefit—will see that maximised. We recognise the quality of what is provided in English higher education, but we want to ensure that where there are pockets of bad quality that is tackled, and that everywhere there is an emphasis on improving the quality of teaching provided for our students.

On the alternative financing mechanism, we will make progress on that, building on the work of the previous Government and the noble Baroness in particular—she knows that we are reconstituting the working group on that because she will be invited to be a member of it, so she will share in the responsibility for the progress that I hope that we are going to make.

The noble Lord, Lord Storey, asked whether other methods of funding universities had been considered. We have given considerable thought to the options for how we can help to bring some stability to the financial position in HE and to support students. Given the current financial situation and the constraints on spending, this was the most appropriate way to provide some additional income and certainty for HE. As a matter of principle, it is right that students who benefit from higher education—it is still the case that a degree or a qualification through a university will give you on average higher lifetime earnings—make a contribution to that through repaying their loans, alongside the contribution made by the taxpayer and the Government more broadly, particularly for those students who do not end up paying off all their loans, and the strategic priorities grant and other forms of support for higher education.

I agree with the noble Lord and hope that he has seen a very different tone towards international students from this Government than was the case previously—universities tell me that they have seen that. We will continue to welcome international students, not only because of the finance that they bring but because of the benefits to students and our role in the world that come from that. I think I have already covered the point about value for money, which we are absolutely committed to ensuring.

Education: Early Years Attainment Gap

Baroness Barran Excerpts

Tuesday 5th November 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The noble Lord is right. The first years of a child’s life, where they depend on their parents, are fundamental. Supporting parents to be able to take on that job—he is quite right that it is not always easy and does not necessarily come naturally—is really important. Evidence has shown that high-quality parenting programmes, alongside wider integrated support, can be really important. That is why the Family Hubs and Start for Life programme includes funding to improve the parenting support offer, including evidence-based parenting programmes. It is why we will work to ensure that there is further awareness of the importance of parenting in childhood development. We will consider how, through the development of family hubs, we can provide further support for parents, precisely because, as he says, it is good for children and saves money later on in life.

[Baroness Barran (Con)]

My Lords, could the Minister confirm that the Government’s childcare funding rates will be increased to absorb the increase in employers’ national insurance contributions?

[Baroness Smith of Malvern (Lab)]

We have increased the rates this year, but we will be looking at the implications of national insurance contributions for the early years sector.

Unregistered Children’s Homes: Fees

Baroness Barran Excerpts

Monday 28th October 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The right reverend Prelate raises an important point. In the development of private children’s homes, we have seen a growth: for example, it is possible to get hold of accommodation more cheaply, but that does not necessarily mean that such homes are where children need them. Some 25% of all homes nationally are in the north-west, despite only 16% of children who need to be looked after in residential care coming from the north-west. That is why there has been investment to support local authorities to improve existing provision and to create additional placements; and it is why, through the children’s well-being Bill and in other ways, we will work to ensure that, wherever a child needs care, there is high-quality care that does not involve them having to travel or the local authority facing excessive costs.

[Baroness Barran (Con)]

My Lords, the noble Baroness, Lady Tyler, raised the issue of the costs associated with some unregistered children’s homes, but I want to ask the Minister a more basic question. We know from Ofsted’s 2023 guidance that it is illegal to send a child, even a child with a deprivation of liberty order, to an unregistered children’s home, yet the case to which the noble Baroness referred, as I understand it, was about a year later. What are the Government doing to make sure that children do not go to unregistered homes at all, whatever they cost?

[Baroness Smith of Malvern (Lab)]

The noble Baroness identifies the absolute difficulty and the challenging circumstances that directors of children’s services and others find themselves in. For example, on a Friday afternoon, when faced with having to find a placement for a child urgently, they have no other option, because of a failure to provide sufficient places, than to place a child in an unregulated home. This is so unsatisfactory for everybody, and that is why, through the provisions we will bring forward in the children’s well-being Bill and through appropriate investment in increasing the number of places, we will try to ensure that that happens far less in the future.

Special Needs Schools

Baroness Barran Excerpts

Thursday 24th October 2024 Lords Chamber

[Baroness Barran (Con)]

My Lords, I congratulate my noble friend Lady Monckton of Dallington Forest on securing this important debate, on the truly dignified way in which she made her remarks and on combining such practical examples with deep expertise and understanding of this topic.

This has been an excellent and wide-ranging debate. We have heard from across the House that every one of your Lordships wants an education system that helps all children and young people with special educational needs and disabilities to thrive, fulfil their potential and lead fulfilling lives, whether they are in special schools or mainstream education. We recognise the important role played by our special colleges, which support young people with special educational needs both academically and in order to make the transition to more independent living, to reduce isolation, as the noble Baroness, Lady Morris of Yardley, pointed out, and indeed to remove stigma, as we have just heard from the noble Lord, Lord Addington.

We have heard this afternoon that, as we knew before we came into the Chamber, this sector faces many challenges. Perhaps the most immediate that we heard in the debate, from all noble Lords, is the rising demand for specialist provision and the pressures that places on funding. It was in recognition of that growing need that the last Conservative Government increased the high-needs budget to £10.5 billion in 2024-25, which was a 60% increase on the figure in 2019-20. To help to increase capacity, £2.6 billion is being invested from 2022 to 2025 to fund new specialist places and improve existing provision. When complete, that investment in special schools will provide an additional 60,000 places.

As we all know, though, the level of need continues to outstrip that, with real consequences for parents who are looking for a place for their children, and for their children. It was the lack of consistent support and outcomes that led to the development of the SEND and Alternative Provision Improvement Plan that we published last year, which was designed to ensure high-quality early support for every child regardless of where they live. At its core was an attempt to deal with the feeling that too many parents are having to battle with the system to get help, that too many parents have lost trust in the system, that we are not offering them the confidence that their children can realise their potential and, as my noble friend Lord Jamieson said, that the system needs to be on a financially sustainable footing.

There are two key areas within that, so that children can get the right support in the right place and at the right time. One is about having a national system with national standards to deliver consistent, clear and early support. The second is about moves to improve the timeliness and quality of education, health and care plans by adopting a standardised and digitised template to deal with some of the burden and stress that parents face, as we have heard, when they try to make those applications. It would be reassuring if the Minister could just comment on whether the Government plan to continue with those two initiatives, particularly given the level of consultation that underpinned those decisions.

The pressures that we are seeing on special schools, many of which we know are operating over capacity, also make the Government’s proposal to impose VAT on independent schools from 1 January 2025 even more misguided. We know that around 100,000 children and young people without an EHCP receive specialist SEND support in independent schools. Putting VAT on their fees risks disrupting their education, particularly as it is being in brought part-way through the school year.

As the Minister knows, on these Benches we think the Government should drop this policy in its entirety or, at the very least, delay it. But I suggest the Government should look at a particular area: the position of the 130 specialist FE colleges that provide training for young people with complex needs. As the noble Baroness, Lady Wolf, and my noble friend Lady Monckton pointed out, all of their students are publicly funded through the high needs system. If these colleges are required to charge VAT, the purchasing local authority would simply reclaim it, resulting in no actual financial benefit to the public purse but considerable bureaucracy. I would be grateful if the Minister would consider reviewing that.

We know that our special schools and colleges perform a crucial role but it is also the case that the relationship between special school and mainstream provision is important, as we heard in particular from the right reverend Prelate the Bishop of Lincoln. We are concerned that the demand pressures that have built up in recent years, which were also highlighted in the National Audit Office report today, are leading to other impacts, including a worrying increase in the number of home-educated children with special educational needs. I know that the noble Lord, Lord Storey, who is not in his place, and the Minister have plans for legislation in this area. I look forward very much to those debates.

We support the principle of assuring that all children receive a suitable education. More broadly, we look forward to hearing more from the Government in the coming months about how they will improve their use of data in this area, as also recommended in the NAO report, in predicting changes in demand for special educational needs and disability provision, and how they will build on some of the excellent work which officials had already started, to ensure that expansions in capacity are done in the right place.

There is one topic which I think has not come up in your Lordships’ debate this afternoon, which is alternative provision. The previous Government intentionally brought together our strategies for children with special educational needs and disabilities with those in alternative provision, given the very high incidence of special educational needs among those children. In fact, my first visit as a Minister was to a school near Bristol for children who had been excluded from other schools. Some were as young as five and it was clear that they needed many things from the system, but two stayed with me.

First, for very young children, it seems obvious that they need a clear route to return to mainstream education. All children should have access to integrated care teams so that all their wider needs can be met and again, where possible, they can return to mainstream. My understanding is that there were some encouraging results from the DfE’s specialist task force pilot—only the DfE could come up with that name—where there was a multiagency response for those children. I would encourage the Minister to consider continuing with that.

To conclude, there is unity in this House about the desire to ensure that the SEND system works better and provides the support and outcomes that children and people with special educational needs and disabilities deserve. I think we are also in agreement that this is one of the hardest areas of policy to get right—although I was encouraged by my noble friend Lord Jamieson’s remarks in this regard. I would like to reassure the Minister that, in opposition, we will work constructively with the Government to try to get this right for children and their families.

Special Educational Needs

Baroness Barran Excerpts

Thursday 24th October 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The right reverend Prelate makes an important point about the experience of looked-after children, which I also discussed in an Oral Question earlier this week in response to the noble Lord, Lord Laming. We have to get to a system where there are fewer bureaucratic processes to enable children and young people to get the support that they need. The point about moving from authority to authority is very important, and I will certainly take it back to my colleagues in the department. This strikes me as an additional piece of bureaucracy. While it is obviously important that, in every context, children’s needs are properly understood—and that provision through an EHCP, for example, is properly put in place—that should not be a bureaucratic process that prevents children getting the support they need when they need it.

[Baroness Barran (Con)]

My Lords, can the Minister confirm whether the Government are committed to continuing the reforms that the previous Government set out in the SEND and AP plan to set national standards and to digitise the process, so that EHCPs are much clearer and speedier, removing a lot of stress for parents and their children?

[Baroness Smith of Malvern (Lab)]

The Government are committed to doing everything we can to ensure that the process of going through an education, health and care plan—even now, only 50% of parents get them within 20 weeks of applying for them—is made much easier. I am sure that there are ways that we can build on work from the previous Government to ensure that that happens. Fundamentally, the problem with the system, which we also inherited from the previous Government, is that too many parents feel the need to go through this arduous process alone, because they do not have the support in the rest of the school system and do not get identification early enough. That is what, more fundamentally, we need to put right, and that is what the Government are committed to doing.

Schools: Absenteeism

Baroness Barran Excerpts

Tuesday 22nd October 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The right reverend Prelate is right to identify that. The data shows that those on free school meals are far more likely to be absent from schools than those who are not. That is why we need a wide-ranging approach to ensure that we provide both the school action and the home backgrounds that will enable children to attend school and learn. My right honourable friends the Secretary of State for Education and the Secretary of State for Work and Pensions are working hard on the cross-government childhood poverty strategy precisely to address some of those issues.

[Baroness Barran (Con)]

What is the Minister’s assessment of the National Parent Survey 2024 published by the charity Parentkind, which showed that three in 10 parents are now more relaxed about school attendance? This aligns with the department’s excellent data, which shows a big rise in that group since the pandemic.

[Baroness Smith of Malvern (Lab)]

My assessment is that it is concerning that parents, for whatever reason are becoming relaxed about their children’s attendance at school. As the noble Lord suggested, this has partly been linked to the pandemic. We know that each day of lost learning can do serious harm. Days missed can add up quickly. There is a link between absence and attainment, and pupils who are persistently absent are less than half as likely to achieve good GCSEs as those who attend every day. We need to give that message loud and clear to parents who, in being relaxed about their children’s attendance at school, are fundamentally damaging their future prospects.

Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [HL]

Baroness Barran Excerpts

2nd reading
Tuesday 22nd October 2024 Lords Chamber

[Baroness Barran (Con)]

My Lords, as I rise to speak at Second Reading, I say first how much I enjoyed the maiden speech of the noble Lord, Lord Beamish. I look forward to the insights he will bring to your Lordships’ House.

The goal of improving our skills system and meeting skills gaps is not a new one. Indeed, today, as my noble friend Lady Finn said, it is an international one. Under successive Governments, we have seen work to simplify the system, achieve parity of esteem with academic qualifications, place employers at the heart of the system and improve the quality of skills-based qualifications. In their manifesto, His Majesty’s Government committed to establishing a new body, Skills England, to deliver their skills strategy, but unfortunately this Bill merely abolishes the Institute for Apprenticeships and Technical Education and transfers its functions to the Secretary of State; in effect, absorbing them into the Department for Education. We have no details on the plans for Skills England itself, nor on how the Government’s proposed changes to the funding of skills-based qualifications will work in practice.

On these Benches, we have three main concerns. First, we do not believe that the proposed machinery of government changes are likely to make the difference that the Government hope they will. In the last 50 years, there have been no fewer than 12 skills agencies, or 13 including Skills England. If the creation of a new body was alone enough to address our challenges in this area, surely one of the earlier iterations would have been the answer. Secondly, as we have heard across the House, we believe that the powers of the Secretary of State created by this Bill are too wide-ranging, have little accountability and will risk directly damaging the status of these qualifications. Thirdly, we have real concerns that these changes will lead to harmful delays in addressing some of the most important strategic issues in skills development that the Government face and have set out.

Given that all noble Lords want the most effective approach to developing our skills system, it is important to recognise the achievements of the last Government and the key challenges that remain so that the new Government benefit from the institutional memory of this House and avoid repeating any past mistakes. The last Government delivered on a major simplification of the system in relation to T-levels, higher technical qualifications and apprenticeship standards. We raised the value of skills-based qualifications in the minds of students and employers, particularly in relation to apprenticeships, which we put on a statutory footing for the first time.

The noble Baroness, Lady McGregor-Smith, spoke eloquently about the importance and effectiveness of putting employers at the heart of the system, which IfATE brought as well as the creation of local skills improvement plans, which linked employers and providers for the first time. We improved the quality of qualifications across the board, including for the missing middle which your Lordships have referred to, and we laid the foundations for lifelong learning through the skills Act and the lifelong learning Act of 2023 so that options for training and retraining were available at every stage of a person’s career. I hope the Minister will confirm that the Government will not discard the progress of the past 14 years but build on it and focus on the key challenges of the future.

If we look at the challenges of improving our skills system, I am genuinely baffled as to why one would start by creating a new agency within the DfE and abolish IfATE. I am not sure how this helps build demand for newer and less well-established qualifications such as T-levels and HTQs. I am not sure how it addresses the workforce pressures in further education or the decline in investment in training by employers or how it will help the Government realise the potential of the lifelong learning Act. How does it quickly set out the plans for the new growth and skills levy which the Government promised in their manifesto, so that we avoid a hiatus in skills development and investment, as alluded to in their impact assessment? Can the Minister explain why the Government could not have achieved their goals of co-ordination with the industrial strategy council and the Migration Advisory Committee through IfATE rather than placing Skills England within the DfE, with all the time, cost and reorganisation that would have avoided?

If we had a blank sheet of paper—in the words of the noble Lord, Lord Hampton, perhaps a sheet of paper that was nimble, agile and other good adjectives—and had to choose between an independent, employer-led body and an internal team within a government department to create the best skills system, I am pretty sure that most people would naturally assume that the former would be more effective. It would help if the Minister could give the House examples of where such centralisation of power has actually delivered on the Government’s aspirations.

We are also really concerned about the powers of the Secretary of State and expect to come back to these in Committee. In the King’s Speech, the Government committed to creating a new body, Skills England, but as noble Lords have noted, the Bill does not do that. Far from simply replacing the institute, the Bill abolishes it, leaving the Secretary of State in control. We now understand that Skills England will not be on a statutory footing and therefore will unquestionably be less independent than IfATE.

The Bill gives the Secretary of State sweeping powers to prepare apprenticeship standards and plans, either personally or by commissioning others. Clauses 4 and 5 make it possible for the Secretary of State to bypass industry groups and employers entirely. In her opening speech, the Minister helpfully set out some examples to reassure the House about some of the limitations on how those powers might be used, but can she explain what the barrier is to putting them in the Bill if the Government are clear on what those limits are?

Secondly, we should be concerned about the potential impact on the quality of technical qualifications. Clause 6 removes the requirement for reviews of technical education qualifications, standards and apprenticeship assessment plans to be published at regular intervals. What will the arrangements be to do this in future, and why has the duty to publish been removed? This flexibility is supposedly to align qualifications with employers’ needs, but we know that without rigorous and independent oversight, standards can slip. Can the Minister tell the House how she plans to ensure that we have standards that are recognisable and high, without that regular independent review?

There is the further risk of dilution of quality via Clause 7, which removes the requirement to have a third-party examination of a standard or apprenticeship assessment plan before approval, leaving the power for the Secretary of State to appoint one if she sees fit. What should we expect from this? How often does the Minister expect this power to be used and under what circumstances? It would also help if the Minister could clarify under what circumstances the Secretary of State would use her powers set out in Clause 8 in relation to Ofqual.

Clause 9 is also of concern, as my noble friend Lady Evans of Bowes Park pointed out, quoting the Attorney-General. Through regulation made by statutory instrument, it allows for the Secretary of State to make provision that is consequential on other provisions in the Bill. This is a very broad Henry VIII power, applying to existing and future legislation passed in this Parliament. I would be grateful if the Minister could give an example of how Clause 9 would be used. Perhaps she could commit to listing the existing legislation where Clause 9 will apply.

The assumption of power by the Secretary of State reverses the reforms of the Enterprise Act 2016 and risks severely eroding the parity of esteem between academic and technical qualifications. Imagine the outcry if A-level standards were directly controlled by the Education Secretary—I hope your Lordships see the point I am making. Yet the Bill gives ministerial control over all technical qualifications, which risks undermining their credibility and status.

Leaving the specifics of the Bill, we are genuinely concerned that Skills England will not achieve its goals. The Government are actually creating not one but three new bodies with an interest in skills: Skills England in the DfE, the Labour Market Advisory Board in the DWP and the new Industrial Strategy Advisory Council. How will these three—or four, if we include the Migration Advisory Committee—potentially competing bodies work together?

This approach raises so many questions. Can the Minister reassure the House about the level of seniority the head of Skills England will have? How will Skills England, sitting in a corner of Sanctuary Buildings, have the authority to influence other government departments? How will it work with the devolved Administrations and the mayoral combined authorities? How will it interact with the Office for Students? It is of great concern and regret that the objectives and limits of the new body are not clearly set out in statute, and we will seek to gain as much clarity as possible on these points during the passage of the Bill. I ask the Minister again: where is the evidence that such an approach has ever worked in this country before and will be successful now?

My belief is that, if His Majesty’s Government were serious about progressing quickly with the urgent strategic issues around skills reform, they would build on the success of IfATE, rather than dismantling it. The real risks here are, first, that the Government will unwittingly create confusion, lower standards and erode trust in technical qualifications; and, secondly, that the time and cost involved in creating yet another overcentralised agency in the DfE delays addressing the big opportunities and challenges that need to be grasped in this area and leaves us with an unwieldy, unaccountable and ineffective approach.

The Bill threatens to undo much of the progress made under successive Conservative Governments in building a world-class apprenticeship and technical education system. I have no doubt that the Minister wants the best for our skills system and those who learn and work in it, but I have grave doubts that this Bill will deliver the system that the country needs and that she wants. I hope very much that the Minister will listen to these concerns and act to address them when the Bill reaches Committee.

Early Years Provision: Bell Review

Baroness Barran Excerpts

Monday 21st October 2024 Lords Chamber

Asked by

[Baroness Barran]

To ask His Majesty’s Government whether they plan to publish the main findings of Sir David Bell’s review of early years provision, commissioned by the Labour Party in October 2023.

[The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)]

The early years sector is facing shortages of places and workers, and it will be challenging to deliver the entitlements promised by the previous Government. Sir David Bell’s review, undertaken for the Labour Party prior to the election, considered how to ensure all children have access to high-quality early years education. The Government are considering how to reform the sector and will set out further information next year. Sir David’s findings will inform that work.

[Baroness Barran (Con)]

My Lords, when in opposition, the Secretary of State for Education repeatedly said that childcare was her No. 1 priority, but she also said that she was unable to set out her plan until Sir David Bell had completed his review. Given that the Government have now committed to roll out the previous Government’s childcare plan to increase entitlements, can the Minister confirm whether or not Sir David recommended continuing with the Conservative Government’s plan, and did he agree to the levels of fees we had published? If so, it is really puzzling that the Government will not publish his recommendations; if not, I think there is a greater reason to know what they are.

[Baroness Smith of Malvern (Lab)]

Importantly, having made it clear that we want to deliver the entitlements set out by the previous Government, this Government have started the hard work to put in place the action necessary to do that. It will not be easy; I am afraid that we inherited a pledge without a plan to deliver it. Having ensured that 320,000 children have been able to take up this year’s additional entitlement, the Government’s focus is to make sure we have the places and workforce to enable the growth of that entitlement, which we will try to deliver in September 2025. However, it will be a difficult task, made more difficult by the planning failure of the previous Government.

Government’s Childcare Expansion

Baroness Barran Excerpts

Monday 21st October 2024 Lords Chamber

[Baroness Barran (Con)]

I welcome the Statement made in the other place last week on the Government’s childcare expansion, although I note that it might have been more constructive had the Minister acknowledged the transformation in childcare provision implemented by the previous Government and I hope the Minister can acknowledge that for the House today. I remind your Lordships that there were five major stages of that expansion. In 2010, we extended the entitlement for three and four year-olds, commonly taken as 15 hours a week for 38 weeks of the year. In 2013, we introduced 15 hours a week of free early education for disadvantaged two year-olds. In 2017, we built on that by doubling the entitlement for three and four year-olds to 30 hours a week and then in 2023 we announced measures to give working parents 30 hours a week of free childcare from nine months until the child starts school, building up over two years. This constituted the biggest expansion of childcare by any UK Government in history.

I would like to ask the Minister a few questions. First, the previous Government, now on this side of the House, are delighted that the Government have committed to continuing our expansion of childcare, but I was concerned that the tone of the noble Baroness’s comments when answering an earlier Question on this subject sounded like a pitch-rolling to cut the offer and I wonder whether she could just reassure the House that that is not in the Government’s plans and set out the Government’s commitment. Certainly, there was a sense that the communications around this September’s rollout were perhaps more muted than we had expected. It is obviously critical that parents are aware of their future entitlements.

If I may, I will try to ask the Minister again whether Sir David Bell did recommend in his review of early years to continue with the previous Government’s approach to childcare and whether she could confirm when the Government will publish the early years workforce strategy. Also covered in the Statement were the Government’s plans for implementing breakfast clubs and that the Government were taking a test-and-learn approach. I was puzzled by that, given that the previous Government already had a national school breakfast programme that was active in almost 2,700 schools and, as the Minister knows, many primary schools offer breakfast clubs already, I wonder what particular aspects the Government feel they need to test and learn from.

Finally, in relation to school-based nurseries, can the Minister give the House a sense of how confident she feels about the Government’s target of opening the first school-based nurseries by September 2025, with the new funding? It looks like quite a short period to turn that around. Also, what assessment has been made of the impact of the imposition of VAT on the nursery provision of independent schools that have that provision?

[Lord Storey (LD)]

My Lords, we on these Benches welcome the proposals; they are very much in line with our manifesto at the last election. I believe that all three parties, in perhaps slightly different ways, have a real desire to develop childcare provision. I want to tease out from the Minister the most important thing for early years childcare provision: the quality of the staff and the staff feeling valued. That means not just the salary but the training opportunities they get.

Over the last decade or more, we have seen staff in nursery and early years settings feeling that they are there just as glorified helpers. One nursery nurse said to me, “I could get more stacking the shelves at Lidl than I get in my job in a nursery”. If we want brilliant early years education, we need staff who feel motivated and want a career in that line of work. I had a 100-place nursery in a primary school and I remember how the staff were absolutely devastated when their names were changed from “nursery nurse” to “NVQ level 4”. They hated that. There had been no consultation with them at all; it just happened as part of the skills agenda. That is my first point.

My second point is that, while we welcome the commitment on top-up charges, we have also to recognise that the income generated in private nurseries sometimes caused real problems for them; but doing away with top-up charges is absolutely correct.

I like the notion that we increasingly put nurseries in primary schools, where there is capacity. Why? Because the primary school can provide all the other things that are available there: advice on special educational needs, and a whole host of other opportunities.

I am pleased about childminders—although I do not actually like the title “childminder”. They do not just mind children; they develop children. They get them to play, to interact, to talk, to learn and to discover. They do more than just minding—but I suppose we are stuck with that title. Childminders were very concerned several years ago when there was a movement towards doing away with single childminders; they had to be part of a company or a group. I thought that was wrong. So I recognise and welcome the proposals on childminding. It should not be a sort of privatised provision. Anybody who has the qualifications and experience should be allowed to do it.

I want to make a final point. There is an aspiration to go to 30 weeks’ provision, but that provision does not cover a full calendar year. Nurseries—particularly private nurseries—find it very difficult because, at the end of the 30 weeks of provision, some parents, especially those from deprived communities, cannot pay the additional money, so they withdraw their children for that period. The nursery or early years setting then finds it difficult to financially survive. So, we need to look at how we ensure that there is equity for the provider as well.

[The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)]

I thank the noble Baroness and the noble Lord. I am very happy to accept that there has been an enormous transformation in the country’s attitude to childcare and in the extent of childcare available. When I entered the other House in 1997, following a considerable period of Conservative rule, we in Worcestershire were infamous for having the worst childcare provision across the whole of Europe. I am glad that people have seen that childcare and early years provision is important for people’s ability to go to work and, at this moment in time, to support people with the cost of living, but I think that the additional area where we need to focus more attention is that good early years provision is absolutely fundamental for children’s development and giving them the very best possible start in life.

The noble Baroness suggested that the Government are pitch-rolling away from the pledge to entitle working parents to 30 hours of childcare a week from 2025; that is absolutely not the case. The Government are committed to providing that, but we are being transparent and honest about the challenge it will bring. As we said last week, it will mean another 75,000 childcare places and over 30,000 more staff will be necessary; that is a big challenge that needs a plan, not just an aspiration.

I am sorry that the noble Baroness thought that the comms at the beginning of the school year were a little on the quiet side; I did a whole morning media round on this and shouted it from the rooftops. I am pleased that we were able to celebrate 320,000 more parents getting their childcare entitlement this year, but there is certainly more that we need to do. That is why we will work to look more strategically at what we need to do to develop the early years sector and have undertaken to develop a strategy, which I expect us to publish and bring to this House next year.

The noble Baroness asked about breakfast clubs. A few weeks ago, we were able to announce the 750 trailblazing breakfast clubs that will be open by next year, which will build on previous work to get breakfast clubs into schools. However, we are also making a stronger commitment both to providing these free for all primary school pupils and to ensuring that the childcare element of the breakfast club is also in place—that is a very important way that we get children to school early and ready to learn, which does not necessarily happen just if you have a breakfast club, despite the excellent work those breakfast clubs are doing.

On school-based nurseries, the noble Baroness is right that we announced last week £150 million of funding which schools can bid into, so that we can develop up to 300 school-based nurseries as part of our objective to have 3,000 of those over the course of this Parliament.

The noble Lord is absolutely right that, if we are to achieve quality early years provision, we need to develop even further the brilliant staff who are working in early years and childcare. That means we need to reset our relationship with the childcare workforce, ensure that there is appropriate status for that role and think about training. We have already begun to provide, for example, more guidance around how to identify special educational needs, and we will want to continue that work.

We are taking action on ensuring that mandatory extra top-up charges are not levied on parents who take up government-funded childcare places, and we will be working with the sector and with parents in order to make sure that we strengthen that guidance.

Childminders do excellent work, but we have seen a halving of the numbers of childminders over recent years. The flexibilities, including the additional flexibilities announced last week, will help to ensure that childminding remains an important element of the childcare environment.

The noble Lord raised a point about flexibility for school holidays. It is already the case that quite a lot of childcare provision, including that provided around schools, continues into the school holidays. However, in thinking about our overall development of provision and our strategy, we will certainly want to think about how we can ensure that that is as flexible and well supported as possible for parents to be able to use all year round because of the enormously important impact that it has on those parents and, more importantly, on children’s best start in life.

[Baroness Barran (Con)]

Before the Minister sits down, I wonder if she could clarify something. I heard her say that there was a £150 million capital pot for nurseries, but I think I read in the Statement that it was £15 million. If she cannot confirm that now, maybe she could write to us.

[Baroness Smith of Malvern (Lab)]

I apologise. The noble Baroness is absolutely right. I have been overambitious on the Government’s spending plans and I will be in big trouble for that. The figure is £15 million for up to 300 new or expanded nurseries. I thank the noble Baroness for allowing me to correct that.