Skills and Post-16 Education Bill [HL]

Baroness Penn Excerpts

Committee stage
Wednesday 21st July 2021 Lords Chamber

I realise that this falls between departments. If this were a DWP Bill, I would not be surprised if the Minister got up and said, “It’s not the job of the benefits system to fund full-time students. That’s what student finance is for”. Since the Minister responding is from DfE, it would be interesting to hear her take on how her department thinks people should be funded to acquire new skills. Above all, government departments need to work together. I look forward to the Minister’s reply.

[Baroness Penn (Con) [V]]

My Lords, this group of amendments broadly seeks to enable individuals studying at level 3 and below to claim universal credit. It may be helpful to noble Lords if I set out the work already under way in this space, as was noted by several participants in the debate.

Officials at the Department for Education and the Department for Work and Pensions are working together—I hope that the noble Baroness, Lady Sherlock, will be reassured by that fact—to mitigate the barriers to unemployed adults taking advantage of our skills offers. In April, an extension to the flexibility offered by universal credit conditionality was announced for a trial period of six months. The noble Baroness, Lady Janke, made a point about the eight-week cap for full-time training for those on universal credit. As a result of the trial under way, adults who claim universal credit and are part of the intensive work search programme can now study full-time for up to 12 weeks, or up to 16 weeks as part of a skills bootcamp in England. This builds on the eight weeks for which claimants were already able to train full-time. Such measures are helping to ensure that universal credit claimants are supported in accessing training and skills that will improve their ability to gain good, stable, well-paid jobs.

Amendment 90A, moved by the right reverend Prelate, and Amendment 93, tabled by the noble Baroness, Lady Janke, have a similar thrust so I will take them together. Section 4(1)(d) of the Welfare Reform Act 2012 sets out that one of the basic conditions of entitlement to universal credit is that the person must be “not receiving education”, which can be defined in the regulations made under subsection (6). Financial support for students comes from the current system of learner loans and grants designed for their needs. Where students have additional needs that are not met through this support system, exceptions are already provided under Regulation 14 of the Universal Credit Regulations 2013, enabling those people to claim universal credit.

However, universal credit is not intended to duplicate the support provided by the student support system. Furthermore, the sub-paragraph of Regulation 14 referenced in Amendment 93 provides an exception to the requirement that a person must not be receiving education to be entitled to universal credit. That is designed to support care leavers aged 18 to 21 who wish to catch up on education that they may have missed when they were younger, and to make welfare support available to them. We therefore feel it would be of benefit to maintain this regulation to continue to support this group of adults.

On Amendment 98, tabled by the noble Baroness, Lady Sherlock, and the point raised by the right reverend Prelate and the noble Baroness, Lady Janke, that it is not possible to take advantage of the lifetime skills guarantee while on universal credit, I point out more broadly that an adult undertaking a course up to level 3 may still be entitled to universal credit. This is provided that their course is compatible with work-related requirements agreed with their work coach. Where the course is work-related and will give the person the best chance of securing work, the work coach may consider it a suitable work preparation activity. In such cases, time spent on the courses will be deducted from the amount of time the person needs to spend looking for work.

To answer the questions from the noble Baroness, Lady Sherlock, on this principle, she is right in noting that those on universal credit should not restrict their availability for work in favour of the course that they are undertaking. They might need to be prepared to give up or, more suitably, adjust their course in order to take up work, for example by moving to a part-time basis. The noble Baroness’s second question was on the pilot that we introduced for full-time training to last up to 12 or 16 weeks. We will evaluate the impacts of that extension before making a decision on its future. As the noble Baroness noted, the pilot runs until the end of October and then we will look at its effects.

I hope I have set out that the Government are already taking steps to ensure that the benefit system works better for those who need to undertake training to improve their prospects of finding work. As such, I hope that the right reverend Prelate is able to withdraw his amendment and that the noble Baronesses will not move theirs when they are reached.

[The Lord Bishop of Durham [V]]

My Lords, I thank the Minister for her reply and thank all colleagues for their comments on all three of the amendments in this group. I am very grateful for all the insights that were offered. Thank you, Minister, for outlining where work is already under way. That is reassuring, and it is also reassuring to hear that the DfE and the DWP are working together to help mitigate barriers—I trust that will continue and deepen—and to hear of the greater flexibility already under trial.

On reflection, listening to the complexity with which the Minister cited sections, subsections and so on from different Acts to explain the system does not give me great confidence for the poor person trying to do a level 3 qualification and decide whether they can get some financial support through universal credit. I understand that the complexity of the law is a bit different from the way that a work coach might approach it, but she illustrated one of the difficulties for young and older people seeking to find their way through this system. At this stage, of course I will withdraw my amendment, but I hope that on Report there will be evidence of further joint working with the DWP and further consideration of where this might be eased for those for whom access to universal credit would make a complete difference to their upskilling for the future.

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[Baroness Wilcox of Newport (Lab)]

My Lords, we welcome this probing amendment, introduced by the right reverend Prelate the Bishop of Durham and supported by the noble Lord, Lord Addington, and my noble friend Lady Morris. It is an opportunity to discuss the Government’s plans to introduce a longer-term funding settlement for further education, because the White Paper recognised that further education funding has been wholly insufficient.

Alongside increased funding, there is a need for, as alluded to by the noble Lord, Lord Addington, simpler, longer-term funding settlements that allow colleges to deliver on long-term strategic priorities. Their funding compares extremely unfavourably with university and school funding. Annual public funding per university student averaged £6,600, compared with £1,050 for adults in further education. Recent research from IPPR has found that if further education funding had kept up with demographic pressures and inflation over the last decade, we would be investing an extra £2.1 billion per year in adult skills and £2.7 billion per year in 16 to 19 further education. The result of this underfunding is that colleges have had to narrow their curriculum and reduce the broader support they offer to students—including careers advice and mental health services—and 16 to 19 funding for catch-up has also been woefully insufficient.

To deliver on the skills agenda, it is imperative that the Bill is backed up by long-term, multiyear, simplified funding. It will require redressing the long-standing underinvestment of the college sector in the upcoming comprehensive spending review with serious long-term funding—otherwise it will simply not be deliverable. But this must not come at the expense of HE funding. We want FE and HE to collaborate rather than compete for resources, because destabilising university funding, cutting courses or capping numbers will deny students the brilliant education and experience that our world-class institutions in the UK have to offer. Denying young people opportunities must not be the legacy of this Government’s approach.

Ensuring parity of esteem between different post-16 routes is enormously important, but it is best achieved by investing in FE and not by taking funds away from HE and levelling down. Having an ability to access further and higher education, with investment that matches that ambition, is the only way that the country can meet its skill needs and provide pathways into good careers today, as well as jobs for the future.

[Baroness Penn (Con) [V]]

I thank the right reverend Prelate the Bishop of Durham for tabling his amendment. Based on the substance of the debate we just had, I am not sure that there is much disagreement between the Government and noble Lords.

The Government are committed to transforming further education so that everyone can access high-value provision relevant to labour market needs and job opportunities. As noble Lords noted, we published the Skills for Jobs White Paper in January, setting out the future policy direction in this area.

Over the past two years, we have invested significantly in post-16 education. In the 2019 spending round, we increased 16 to 19 year-old further education funding by £400 million, followed by a further £291 million at the spending review 2020, so the direction of travel for policy has been matched by the direction of travel for funding.

In addition, we are investing £325 million of the £2.5 billion national skills fund this year to support adult skills and retraining. We are continuing our investment in the £1.3 billion adult education budget and the £2.5 billion apprenticeships budget. We are also continuing our £1.5 billion multiyear capital investment in the FE capital transformation fund. This funding is helping to deliver on the commitments made in the Skills for Jobs White Paper and the lifetime skills guarantee. Noble Lords have rightly made the point about longer-term funding. However, funding beyond 2021-22 will be considered as part of the wider spending review later this year.

In addition, we have launched an extensive government consultation on reforms to the further education funding and accountability system to address many of the points made by the noble Baroness, Lady Wilcox. This consultation is a first step towards a funding and accountability system that will maximise the potential of further education and help us to build back better. We want to use the consultation to start a dialogue with the sector, employers and other interested parties on how government funding can be administered more simply and effectively so that colleges and other providers can focus on supporting learners to develop the skills they need.

Similarly, in the Interim Conclusion of the Review of Post-18 Education and Funding, we committed to consulting on further reforms to higher education, including on future funding. We continue to consider the recommendations made in Sir Philip Augar’s report, supported by an independent panel, and will conclude that review in due course.

Furthermore, to address the points made by the noble Lord, Lord Addington, we want all children and young people, no matter their background or special educational needs or disabilities, to reach their full potential and receive the right support. That is why we are allocating significant increases in high-needs funding—an additional £780 million in 2020-21 compared with 2019-20 funding levels, and a further £730 million in 2021-22, bringing the total support for young people with the most complex needs to over £8 billion.

In addition, the national funding formula for 16 to 19 year-olds includes extra funding for disadvantaged students. This is provided to institutions specifically for students with low prior attainment or who live in the most disadvantaged areas. Last year, the Government allocated more than £530 million in disadvantage funding to enable colleges, schools and other providers to recruit, support and retain disadvantaged 16 to 19 year-olds and to support students with special educational needs and disabilities. We also apply disadvantage uplift through the element of the adult education budget distributed by the Education and Skills Funding Agency to provide increased funding for learners living in deprived areas. The adult education budget also provides funds to providers to help adults overcome barriers to learning. This includes learner support for those with financial hardship and learning support to meet the additional needs of learners with learning difficulties.

As outlined in the Skills for Jobs White Paper, we will ensure that those with special educational needs and disabilities continue to gain direct work-related skills alongside maths and English to increase their employability. The noble Lord will know that the cross-government SEND review is identifying the reforms needed to improve support for children and young people with SEND, including those in post-16 provision, by working with system experts to design a SEND system fit for the future drawing on the best evidence available.

The breadth of measures already in train—some noble Lords may say that is a long list—contain many elements of a concerted strategy that is moving in a consistent direction on the back of a number of reports and reviews that have sought to look at this on a long-term basis, whether we go back to the Sainsbury review or the more recent Augar review. While I completely agree with the need to take a long-term and strategic approach to this issue, I am not sure that a further review supported by an independent panel at this time is the right way to knit this all together rather than the progress that we are making on delivering the important outcomes of a number of those reviews already undertaken. I therefore hope that the right reverend Prelate is able to withdraw his amendment.

[The Lord Bishop of Durham [V]]

My Lords, I thank the noble Lord, Lord Addington. I knew I could rely on him to pull out the specifics around special educational needs and the reasons for the need for long-term support and development. I thank the noble Lord, Lord Aberdare, for his support for the amendment.

I am very grateful to the Minister for her long and full answer which I will need to read carefully in Hansard to get the full breadth of all she outlined. I thank those who work with her for producing such a comprehensive list at this point. I will need time to look at and reflect on the length of the answer to determine whether there is enough guarantee or whether to pursue the possibility of this being in the Bill.

I wish the Minister well and hope she will have a safe and joyous delivery and much joy in her new child and family life. I beg leave to withdraw the amendment.

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[Lord Watson of Invergowrie (Lab)]

My Lords, we are very much in favour of Amendment 90C. I endorse the remarks of the noble Baroness, Lady Bennett, in moving it and those of the noble Lord, Lord Aberdare.

The life skills set out in the amendment are all essential building blocks in a developed, compassionate and forward-looking society. Many of these categories would fall under the heading of “social solidarity”, a concept that is, I have to say, anathema to many in the Conservative Party who still hold to the infamous, and utterly fatuous, claim by Prime Minister Thatcher that

“there’s no such thing as society.”

If the past 17 months show us anything, they have graphically described how society has pulled together in ways that perhaps we have not seen before out of wartime. I should make it clear that I have seen no evidence that either of the noble Baronesses looking after this Bill fall under that heading, and I am perfectly happy to do so.

Not to accept that these life skills are necessary in ensuring that there are as few local skills gaps as possible once the locals skills improvement partnerships are developed would be, at best, to leave the Ministers open to the charge that they do not attach sufficient importance to them. In reply, the Minister will no doubt say they are unnecessary, but I believe that what this Government regard as necessary does not correspond with what most people have a right to expect in a civilised, advanced society.

Sadly, yesterday provided the latest example of that, with proposals for severe cuts to arts and creative subjects in higher education confirmed by the Office for Students. The Government claim that they want to redirect funding for high-cost STEM subjects, as well as medicine and healthcare. Nobody is denying that these are important subjects—indeed, priority subjects—but that does not mean that arts and culture subjects are not important themselves. They should not be abandoned.

Almost one in eight businesses are creative businesses. Some 2 million jobs in the UK as a whole are in the creative sector, worth a staggering total of £111 billion a year to the economy, and yet this Government of philistines are prepared to ignore those huge numbers and to seriously undermine the creative industries, which include much more than the arts—themselves a form of social solidarity, of course. Yes, film, TV, animation, video games, children’s TV, theatres, museums and orchestras are all included, but so too are advertising and marketing, design, graphic products, fashion, architecture and much more.

The damaging cuts will halve the high-cost funding subsidy for creative and arts university subjects—not next year but as soon as September this year, at the start of the new academic term. That is likely to threaten the viability of arts courses in universities and lead to possible closures, which may well be the Government’s ultimate aim. The universities most vulnerable are those with a higher number of less well-off students, so this will deny young people the kind of opportunities that my noble friend Lady Wilcox mentioned during the last debate.

The attack on culture seems to be just the latest example of the Government’s rather pathetic culture war strategy over recent months. I cannot imagine that the Minister, the noble Baroness, Lady Penn, as someone who served at the heart of Theresa May’s Government, would countenance such deliberately divisive nonsense.

The Bill should oblige local skills improvement partnerships to consider the role played by the creative industries locally and ensure that they are central to skills development plans. Equally, they should cover the life skills specified in the amendment. For that reason, we are fully in support, and I look forward to hearing the Minister’s reply.

[Baroness Penn (Con) [V]]

My Lords, the Government appreciate the importance of all forms of education in improving life chances, both through employment and through meeting broader social goals. For example, recent research from the Workers’ Educational Association, a leading adult provider, found that 22% of its students took part in activities to improve their local community as a result of their course.

Many of the skills mentioned in the amendment are particularly associated with community learning provision. The objectives of community learning provision are to develop the skills of adults to help them improve their health and well-being, develop stronger communities and progress towards formal learning or employment. Since 2019-20, a significant part of our £230 million funding for community learning has been devolved to mayoral combined authorities and the Greater London Authority. In line with their strategic skills plans, those authorities are shaping education and skills provision, including supporting adults in developing new skills to improve well-being in their local communities. In May 2021, we announced that up to 7,800 colleges and schools will be able to access senior mental health lead training by March next year, as part of the Government’s commitment to offer this training to all colleges and state schools by 2025.

We are also supporting community participation elsewhere in the education system through the teaching of citizenship, which is in the secondary school national curriculum. The programmes of study are to direct teaching towards the core knowledge of citizenship to help prepare pupils to play a full and active part in our society. At key stage 4, pupils will be taught about the different electoral systems in and beyond the United Kingdom and how citizens influence decisions locally, nationally and beyond.

Pupils in the school system also currently receive financial education through the maths and citizenship curricula. To reassure the noble Lord, Lord Aberdare, first aid and CPR are included in the national curriculum and are therefore compulsory in maintained schools and a benchmark in academies and free schools.

Improving the responsiveness of provision to the skills needs of local learners and potential future learners is already a key part of the proposals in the Bill. I do not accept that the Government artificially separate employment skills from social or life skills. The new duty set out in Clause 5 would require colleges and designated institutions to review how well the education or training they provide meets local needs and to consider what action might be taken to address any local skills gaps.

As described in our draft statutory guidance, the needs covered by a review would cover the whole of the institution’s education and training offer, including wider social needs of the kind currently addressed through community learning provision. The Government’s view is that decisions on how effective provision is in meeting local needs is a judgment best reached at a local level, by providers working in partnership with both employers and the wider communities they serve. This duty strengthens that process by establishing a legal framework that will help ensure transparency and consistency, and which promotes accountability around decisions on provision that is vital for local communities.

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[Lord Watson of Invergowrie (Lab)]

My Lords, this is the final group today and I see that I am the only speaker, other than the Minister.

Clause 22 creates a power for the Department for Education to intervene in cases where a college is failing to meet local needs as set out in a local skills improvement plan. The Minister may not be aware that this is the eighth time that the DfE has amended its intervention powers in the past 25 years.

The effect of the amendment would be to prevent the Secretary of State’s intervention powers from automatically coming into force two months after the Act is passed. That would allow time for local skills improvement plans to be developed and for providers to have the opportunity to respond appropriately. There is no obvious reason—at least, not to me—why those powers would be needed so soon, given that the trailblazers have only just been announced and are not due to report until next year. It will then take time to develop the local skills improvement plans and for colleges to action them. The DfE surely needs to allow time for the new arrangements to take effect and should focus on supporting colleges to deliver on long-term strategic priorities and engender trust across the system. Moreover, the system should act to develop the authority, autonomy and accountability of colleges to deliver on long-term strategic priorities.

The Minister will also be aware that we are concerned by the nature of these powers themselves. Intervention should be reserved to cases where it is really necessary, and the legislation should clarify a limited set of circumstances where the DfE would use intervention powers to require compliance with a local skills improvement plan. In January, the DfE proposed to make its intervention rules more targeted, following the finding in a 2020 National Audit Office report that almost half of colleges were in early or full intervention. I hope that the Minister can update the Committee on that progress, too.

I hope that my description of the amendment is clear. I beg to move.

[Baroness Penn (Con) [V]]

The noble Lord has set out his amendment clearly to the Committee. As he said, the measures in Clause 22 strengthen existing intervention powers under the Further and Higher Education Act 1992. They will enable the Secretary of State to intervene where the education or training provided has failed to meet local needs. They will also enable the Secretary of State to direct the governing body to make structural changes. This should help to resolve the most serious cases of college failure more quickly, where other intervention steps have not secured improvements.

As the noble Lord said, the effect of his amendment would be that Clause 22 would not automatically come into force two months after the Act is given Royal Assent. The measures in Clause 22 fit within the package of reforms concerning local needs in Clauses 1 to 5. They also enhance the existing statutory framework that underpins intervention activity undertaken through administrative arrangements, which we are strengthening. For those reasons, the Government’s view is that Clause 22 should be commenced at the same time as those other measures, two months after Royal Assent.

I would stress to the noble Lord that there is not an intention on the part of the Government to make early use of the new intervention powers. Our main focus will remain on supporting colleges and designated institutions in their response to the reforms supported by the measures in the Bill. I re-emphasise that use of the powers should only ever be a last resort, where it has not been possible to secure improvement by other means.

I completely understand the noble Lord’s point about the time that it will take to deliver local skills improvement plans, based on the outcomes of the trailblazers and other elements of colleges and FE providers meeting local needs. However, we see these reforms as part of an existing single package, and Clause 22 also contains powers to intervene to make structural changes to FE colleges. Although I re-emphasise that it is not our intention to make early use of these powers, we see these as a single set of reforms, which we would like to commence together.

As this has been such a short and sweet debate, I would like to take a moment to address a bugbear that came up in a previous group, when the noble Lord, Lord Addington, reacted to my reference to “higher needs”. I have, I hope, completely heard the noble Lord’s points throughout this Committee stage to the effect that, for many students, this is not about higher needs but about something much more on the margins, so that they have not been identified previously but do need to be identified when they reach further education. A lower-level intervention could make all the difference to those students’ education and their success, so I completely take the noble Lord’s point.

As this is the last time I shall be speaking, I thank noble Lords for their good wishes—and I hope that the noble Lord, Lord Watson, will feel able to withdraw his amendment.

[Lord Watson of Invergowrie (Lab)]

There has not been much of a “sweet debate”, as the Minister described it, to reply to, but I would like to address one or two details in what she said. She said that there is no intention on the part of the Government to make early use of the powers. I accept that: I am sure that is what she believes, and that that is the case at the moment. But such things can change. She also said that the powers would be used only as a last resort. Again, every other attempt should have been made to bring about improvement, and this is a backstop—but that is not likely to happen within two months of the Bill becoming law.

The Minister did not explain why the powers would be needed before the trailblazers had reported. Trailblazers are important; she talked about them herself, and we have all put a bit of faith in them to inform us where we should go in the early years of the effects of the Bill. My point has not been answered, but I do not think there is much further I can take it.

I will conclude by saying that it is usual at the end of a Bill for noble Lords to thank those who have contributed at various stages and at various levels. Of course, at this stage we are only at the end of Committee, which is just finishing now. But for the noble Baroness, Lady Penn, this is the last of her involvement with the Bill. So I certainly want to join in the good wishes from other noble Lords, including the right reverend Prelate the Bishop of Durham, who revealed that—for those noble Lords who do not know—the noble Baroness, Lady Penn, is with child.

We have not only enjoyed her contributions, but I think it is appropriate to say that, to some extent—I am not sure whether she has considered this—she is the personification of the trailblazers whom she herself has talked about today and on other days, because she is the first ever serving Lords Minister to go on maternity leave. Like all other noble Lords, we on these Benches wish her very well and look forward to seeing her back in the new year.

In the interim period, I should also say that, up until now on the Government Benches, it has been very much a case of, in the words of the late, great Aretha Franklin, “Sisters doing it for themselves”. So we await the new ministerial team, when we reassemble in a few weeks’ time on Report. But for the moment, I beg leave to withdraw the amendment.