Universities
Baroness Warwick of Undercliffe Excerpts(1 month, 1 week ago)
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Baroness Warwick of Undercliffe
That this House takes note of the findings and recommendations in the Universities UK report, Opportunity, growth and partnership: a blueprint for change, published on 30 September.
Baroness Warwick of Undercliffe (Lab)
My Lords, as a former chief executive of Universities UK, I appreciate the interest of this House in debating the findings and recommendations of its recent blueprint. It is good to see so many speakers from all sides of the House. The report sets out a stark question in which we all have a stake: how can we ensure that our universities are in a stronger position in 10 years than they are today?
Universities are one of our great national assets. They are a source of real strength in the UK. They provide opportunities for individuals from an ever-wider range of backgrounds. They are essential to our current and future economic success, to strong public services and to flourishing towns and cities in all parts of the United Kingdom. As the report argues, the success of our universities and our country are intertwined. Neither can be said to be in the most robust health today. It says forcefully that as a nation we have a choice. We can allow our great universities to slide into decline or we can act together to ensure that they take a different path and thrive in the next decades.
Our higher education sector makes a £265 billion annual contribution to the UK economy. This means that for every £1 of public money invested in higher education across the UK, £14 is put back into the economy. Universities play a critical role in supporting public services, with more than 191,000 nurses, 84,000 medical specialists and 188,000 teachers expected to graduate between 2021 and 2026. The Government have set out a number of missions. Universities have a central role to play in achieving each of them. They will play a foundational role in the industrial strategy and continue to be a source of competitive advantage to the UK in our position on the global stage. They are a major source of export earnings and attractors of foreign direct investment. In short, they are engines, which we need to be firing on all cylinders.
We all know that our universities are facing enormous financial challenges. This is also true of students, of course, who struggle to make ends meet as costs rise and maintenance loans fail to keep pace, an issue to which I shall return. However, the blueprint sets out to be about much more than funding. It considers the central missions of the university sector and what the country needs of it. It asks what is working well and what could be better. It is consciously self- critical.
In putting together its contents, Universities UK asked a set of commissioners—some of them from this House—to act as critical friends and to hold a mirror up to the universities to allow for a thorough examination of what needs to change in the future. I commend that approach. I am pleased that the noble Lord, Lord Willetts, as the commissioner for chapter 6, is contributing to the debate today. The commissioners were largely but not exclusively drawn from outside the higher education sector to give fresh and more objective inputs, drawing on their diverse range of expertise. Universities UK also consulted closely with its 141 members and with stakeholders such as the CBI, and with related sectors, to hear and input their views.
The blueprint advocates five shifts: to expand opportunity, to improve collaboration across the tertiary sector, to generate stronger local growth, to secure our future research strength and to establish a new global strategy for our universities. Chapters on each of these topics address where performance is strong and where it could improve, generating recommendations for universities as well as for government on how we go about that. The blueprint also sets out three foundational areas where change is needed: putting universities on a firm financial footing, streamlining regulation, and improving how the impact of universities is assessed. Throughout the report, there is a lot of emphasis on what universities can do themselves. As the president of Universities UK, Professor Dame Sally Mapstone, says in her foreword, it is “consciously reform-driven”. Happily, it anticipates many of the same areas for reform that the Education Secretary, the right honourable Bridget Phillipson MP, set out in her recent statement to the other place, to which I will return.
Each chapter generates practical proposals for change, which I hope will provide a foundation on which the Government can build in determining their own approach to university reform. I have said that the blueprint is not exclusively about funding. However, it also puts forward very clear proposals in that area and about student support.
I believe it is widely understood in this House that the funding of universities across the UK is structurally unsustainable. In England, the most recent Office for Students report on the financial sustainability of the sector indicated that 40% of providers expected to be in deficit in 2023-24, and a rising number of universities reported low net liquidity days. Does my noble friend agree that joint efforts from the Government and the sector are of the utmost importance to ensure that higher education returns to a stable financial footing?
University research and development activity is world leading, but the current system relies on a disproportionate and growing cross-subsidy from universities to make this activity viable. Given the financial deterioration of universities, this has produced a huge gap in funding and renders this vital activity exposed. Fees from international students currently make up some of this shortfall, but I think we all agree that this is not a robust or sustainable solution. An ambitious and long-term approach is needed to ensure that the UK retains its international competitiveness and continues delivering on the Government’s ambitions for economic growth. I hope the Minister will comment on this.
For students, rising living costs in England have coincided with below-inflation increases in loan funding for many years. The removal of grants was, in my view, a retrograde step that I would like to see reversed. The blueprint argues that both fee and loan levels should be linked to inflation on an ongoing basis, and that grants should be restored. It proposes a two-phased solution to the sector’s funding challenge. The first phase is to be focused on stabilisation, and the second on an enduring solution that puts universities on a path to longer-term sustainability.
The new Government should be congratulated for their swift action on the first goal in the recent announcement on tuition fees and maintenance loans. The decision to end the near 10-year freeze in tuition fees cannot have been easy for the Government, but it is the right thing to do. The financial sustainability of the university system is not a challenge that can be ducked. Inflation has eroded the real value of student fees and maintenance loans by around a third, which has proved unsustainable for both students and universities. Last week’s announcement was a hugely important and courageous act, but only a first step. This inflation linking must become automatic each year.
Alongside this—and I congratulate my noble friend the Minister on her personal contribution to this—the Government have sought to stabilise international recruitment through efforts to communicate to international students that they are welcome and appreciated, and that the Government wish to support their ambitions. I ask my noble friend to go one step further and confirm that the graduate route is here to stay, and that action will be taken, at long last, to ensure that international students are properly presented as largely temporary visitors in migration statistics.
On the research side, we look to the Government to reverse the long-term decline in QR funding—a feature of all four nations of the UK.
The decision to index-link tuition fees and maintenance loans for one year cannot, as I have said, be the end of the matter. We need to carve a path for a second phase to transform the sector’s finances longer term, through a package of reforms. This is where universities must work with the Government to ensure that the Treasury is utterly convinced that investment in the university sector will assist in fostering stronger growth, getting more people into high-wage jobs, reducing social inequalities and supporting our national ambitions, through both a better skills system and our industrial strategy.
The five priorities for reform set out by the Education Secretary last week speak to these challenges. The blueprint shows that universities are ready to answer the call and are primed with ideas about how they can deliver. However, we should be clear that linking fee income to inflation does not solve the sector’s financial problem. It just stops the real value continuing to decrease. It seems churlish to mention that this one-year uplift will be more than offset by increased national insurance contributions, but that is the fact of the matter. As we approach the comprehensive spending review, there is a clear case for an injection of further public funding to go beyond stopping the slide to equip universities adequately to meet the Government’s reform priorities. This will also allow for rebalancing the way that we fund higher education with a fairer balance between public funding and graduate contributions, reflecting the fact that universities deliver both public and private benefits.
I am a firm believer that universities have to be architects of their own solutions. Universities UK has committed to leading a transformative programme of work that will bring universities together to share learning and good practice in efficiency, transformation and income generation. The work will also build on the sector’s rich tradition of finding efficiencies through collaboration by exploring the appetite for additional regional or national shared services. Universities UK’s transformation and efficiency taskforce is leading on this work. It will be established by the end of 2024 and will report in summer 2025.
I stress that across the university sector a huge transformation is already under way. As many noble Lords will be aware, universities in all parts of the country and of all types have been trying to balance shrinking budgets against rising costs. I am sad to say that a staggering number of jobs have been lost. Huge changes in the way that many universities organise themselves have been accompanied by changes to course offerings, reducing module options and, in some cases, cutting whole programmes of study. Some of these changes will be good and necessary, but many do us great damage, such as the worrying loss of modern foreign language programmes. There is an urgent need to act. Universities can and must take this head-on, as they are doing, but the Government must act too. It is in all our interests to do so.
Ahead of this debate, I consulted Hansard. In the past five years, there have been 44 references to “world-leading universities” across this House and the other place. There is great commitment and willingness across parliamentarians, the sector and wider partners to sustain and better our world-leading universities, but there is a clear choice. Our world-leading university sector can be allowed to slide into decline, or institutions and the Government can work together to ensure that the sector delivers for the nation into the 2030s. I hope the Minister will confirm that this is the path that they will take. I beg to move.
Baroness Warwick of Undercliffe (Lab)
My Lords, I thank the Minister for her constructive, positive and comprehensive response to the debate and for her commitment to work with the sector and to resolve the dangerous financial instability of universities. I am delighted that she will engage with the sector on that.
At this stage, I will not attempt to cover the very wide range of contributions. I think that everybody acknowledged the expertise around the House and the amazing number of ideas that have come out of the debate. All I will add is that the blueprint from Universities UK has provided an invaluable catalyst for a degree of consensus across the House on the issues which were powerfully raised in the report and which universities will need to take seriously when they look both at this debate and at their continuing dialogue with the Government and other stakeholders about the way forward. This is the start of a process, as Universities UK clearly says, and there were so many valuable suggestions, recommendations and, to some extent, remonstrations for the sector, which all need to be taken very seriously.
I thank all noble Lords for making such wonderful contributions to the debate. I am absolutely delighted that so many people right across the House were prepared to make a contribution on a Thursday afternoon, going on until almost 6 pm.
Higher Education Funding
Baroness Warwick of Undercliffe Excerpts(3 months, 1 week ago)
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Baroness Warwick of Undercliffe (Lab)
My Lords, looked at objectively, the crisis facing universities seems inevitable, given that the two key elements of their income have been undermined. Government grants have been cut by 78% over the last 12 years, and the level of fees paid for tuition in 2012 has not been revalued since then, so inflation has reduced £9,000 to £5,942 in real value. It is scarcely surprising that the sector regulator expects at least 40% of providers to be in deficit this year. As the noble Lord, Lord Krebs, and others have highlighted, research excellence is also at risk, as the funding method for our universities’ world-class research has been undermined as well.
Fees from international students, who pay the full cost of their tuition, have been the mechanism for trying to bridge these ever-increasing gaps in funding, and this helped while the numbers remained buoyant. But the numbers are inherently unstable and subject to, among other things, political changes in immigration policy. The drop in numbers this year reinforces this. I hope that the Minister today will undertake to change the previous government rhetoric on international students to restore confidence that the UK will be an open and welcoming place for them.
Recent independent scenario-planning shows that a significant proportion of universities are vulnerable to reductions in international student numbers, increased expenditure, and reduction in growth of undergraduate students—what UUK has called “a perfect storm”. At the same time, it is important to recognise that students, too, have been directly hit. Frozen household income thresholds and inadequate maintenance increases mean that the maintenance loan falls £582 short of covering living costs every month. Pressures on staff are leading to demands for pay increases to mitigate rising living costs.
Universities have not yet sunk under these pressures. Most have introduced restructuring and efficiency programmes. Some very unpalatable course closures have been made, which will inevitably restrict student choice; estates are being neglected; and carbon reduction plans are stalled. This cannot continue without irreparable damage being done. I am glad to say that our Government have recognised this; they have said that they are committed to a sustainable funding model which supports high-value provision. They are not short of suggested approaches as to what that funding model should look like, including from Members of this House.
The Secretary of State has said that she intends to “reform the system overall”, which may be eminently sensible, but it will inevitably take some time, possibly considerable time. In the meantime, all the pressures on higher education will continue, to the detriment of students, institutions at risk, and
“powering opportunity and growth and meeting the skills needs of the country”,
to quote Minister Janet Daby.
I urge the Secretary of State urgently to talk to Universities UK to ensure that her longer-term ambition does not mask the need to stabilise the system now. UUK has proposed measures that will
“create … space for a wider review of university financing”,
and I hope that my noble friend will ensure that the Government respond speedily.
I have focused on universities, but we have received some telling evidence from the FE college sector, where higher education is a relatively small but strategically important part of the provision. It, too, is facing increasing financial pressures. I refer specifically to the fact that demand in key areas such as construction, engineering, and health and social care is outstripping the funding that it has available to provide them. I hope that my noble friend the Minister will refer to this in her response as well.
Higher Education: Arts and Humanities
Baroness Warwick of Undercliffe Excerpts(7 months, 3 weeks ago)
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Baroness Barran (Con)
We absolutely agree with the noble Earl that high-quality provision across a range of subjects in the arts and humanities is critical both for our cultural enrichment as a society and for our workforce. That is why we require the Office for Students to at least maintain funding for those high-cost subjects at the current level of £16.7 million. As the noble Earl is also aware, we have dedicated funding for both our world-leading cultural institutions and other performing arts institutions.
Baroness Warwick of Undercliffe (Lab)
My Lords, the cap on student fees has meant that funding for students is at its lowest level in over 25 years. There is a £1 billion hole in domestic teaching funding, which will inevitably mean some very difficult decisions, as my noble friend indicated. Does the Minister agree that arts and humanities graduates have the creative and critical thinking essential for problem solving, which will be crucial to support businesses to get the most out of AI tools?
Baroness Barran (Con)
As the noble Baroness knows, the Government strive to create a sustainable student finance system that both remains responsive to the needs of the wider economy and of the labour market, which she referred to, and is fair to students and taxpayers. As she remarked, those with creative and critical-thinking skills in relation to AI are of course important, but so are students with STEM skills.
Russell Group Universities: Foreign Student Admissions
Baroness Warwick of Undercliffe Excerpts(10 months, 3 weeks ago)
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Higher Education: Financial Pressures
Baroness Warwick of Undercliffe Excerpts(1 year, 8 months ago)
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Baroness Warwick of Undercliffe (Lab)
My Lords, like others I pay tribute to my noble friend Lord Knight for securing this timely debate. It is quite clear from it that a great deal is expected of our higher education institutions: excellence above all, in teaching and research, and certainly in providing students with a life-changing experience. Successive Governments have also wanted them to be engines for economic growth, to provide the skills needed for the economy, to be leaders and stimulators of innovation and a means of social mobility by widening access to opportunities for graduate jobs, to be anchors in their communities, and to be flexible in their response to changing needs while embracing new technologies, among lots of other things.
Not all can respond to all these demands and one of the hallmarks of the UK system is its variety. However, to provide all of these things and more, financial security is essential. To maintain what everyone agrees is our worldwide reputation for excellence, stability in policy-making, as well as resourcing, is fundamental. Universities UK has listed some of the sector’s achievements, as noble Lords have in this debate. They are certainly impressive: its £95 billion contribution to the economy; its outstanding international reputation for teaching, as we are the third most popular destination for international students globally; its excellent teaching and world-leading research. This debate has forced us to ask: are we in danger of throwing away this hard-won international reputation for excellence?
In a 2022 report on the financial sustainability of the HE sector, the House of Commons Public Accounts Committee expressed concern that the proportion of providers with an in-year deficit has increased in each of the last four years—from 5% to 32% in 2019-20, and that number is expected to increase. Fees are a key factor. They have been stagnant, with the £9,250 headline fee for English universities now worth £6,585 to them. The fee income available in Scotland, Wales and Northern Ireland is even lower. Yet England and Wales also have the highest domestic undergraduate fees in the OECD, including the semi-privatised US system. Looking at our international competitors, the UK has the lowest share of public funding in tertiary education among OECD member countries.
English universities have, so far, managed shrinking income
“through sensible and prudent financial management”,
according to the Office for Students. Part of this has come from generating income from other streams—particularly, although not exclusively, recruiting international students. It is clear, however, that under increased funding pressure and rising costs, as UUK has said, universities will be faced with
“compromises in teaching or research, damaging our hard-won international reputation and putting pressure on students and staff.”
This of course compounds other pressures on students. Just as the cost of living crisis is hitting students, their maintenance package in England is at its lowest value in seven years. Students are now also eligible for much lower maintenance loans than when the system was first designed. Under recent changes, more students will repay their full loan than under the 2012 system, with the highest earners paying less than before and low and middle earners paying more. On research, the HE sector provides the skills, talents and facilities that drive the UK’s capabilities in science and technology, yet without long-term and stable investment the UK is bound to fall behind.
Universities are having to use teaching funding to shore up a lack of investment in research, or to reduce or stop research activity altogether. Our universities generate growth and opportunity across the UK. They bring jobs, investment and facilities to our local communities, as we have heard right across this House, and they will be at the heart of addressing economic and social disparities. Yet increasing financial pressures are affecting universities’ capacity to engage.
I sit on the board of Nottingham Trent University, which has made superb efforts to maintain its financial stability. While the finances of some universities are stable in the short term, that cannot last. As this debate has made clear, many are now facing huge financial pressures, which will not be addressed without impacting significantly on the student experience and the capacity to undertake research and innovation. Many are located in the very communities where students need the most support to acquire the skills they need, and where companies most need research and innovation to grow. Given the long-standing freeze of fees for home undergraduate students, most universities are relying on increased international student numbers to deal with inflationary pressures, and any moves to restrict these would have a further major impact on the viability of the sector. Can the Minister confirm the Government’s commitment to both the graduate visa route—a real attraction to international students—and the international education strategy?
All these factors need to be addressed if universities are to be able to respond to the positive steps the Government are taking—for example, the lifelong loan entitlement, which could transform the adult education landscape in England. I hope the Minister can give the sector some reassurance that its excellence is valued, and that they recognise the vital importance of long-term investment.
Children: Bereavement Support in Schools
Baroness Warwick of Undercliffe Excerpts(1 year, 10 months ago)
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Baroness Warwick of Undercliffe
To ask His Majesty’s Government what assessment they have made of the adequacy of support for bereaved children in schools.
The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)
My Lords, losing a loved one is a devastating loss for any child. Schools can play an essential role in supporting a pupil through grief and preventing longer-term emotional distress by providing effective pastoral support and ensuring there is a supportive school culture. It is for individual schools to decide what pastoral support each pupil needs. We have invested £10 million in senior mental health leads training to help schools put informed support in place, drawing on specialists and working with families as needed.
Baroness Warwick of Undercliffe (Lab)
I thank the Minister for that helpful and sympathetic reply. There is clearly a lot of good practice. But recent research has found that bereavement support in primary schools is varied and inconsistent. My own family experience reinforces that. There are long waiting times for counselling, and how schools deal with anticipatory grief is particularly neglected. One in every 29 children will be bereaved of a parent: that is one in every classroom. The research shows that teachers and schools are crying out for guidance and training. Is it not time for DfE to have national bereavement policy, including a mandatory requirement for each school to have such a policy? Will the Minister agree to meet the Ruth Strauss Foundation and other charities who are doing such formative work on this issue?
Baroness Barran (Con)
The noble Baroness will be aware that there is a cross-government bereavement working group. This issue, as the noble Baroness understands well, cuts across both education and health, as well as other government departments—hence our cross-government group. I would be delighted to meet with the Ruth Strauss Foundation and hear about its work. This is something we take extremely seriously, hence our focus on ensuring that schools provide a truly compassionate culture for whatever is going on for the children within them.
Children in Care
Baroness Warwick of Undercliffe Excerpts(2 years, 2 months ago)
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Baroness Barran (Con)
The Government absolutely agree with the noble Lord about the importance of stability. There is clear evidence of a link between changes in care placements and a decrease in outcomes at key stage 4. Seven out of 10 children in care have one placement a year, although the noble Lord is right to focus on the three in 10 who have multiple placements. We are using data to inform our policy, and next month will publish our stability index. I would be delighted to meet with the noble Lord and other noble Lords who are interested in this important issue, to go through that data.
Baroness Warwick of Undercliffe (Lab)
My Lords, the latest Department for Education figures indicate that only 13% of care leavers actually go on to higher education. That figure has not changed in five years. Many universities are already improving their offers to care leavers, but the figures have remained stubbornly low. Can the Minister tell us what the main barriers are, and what the Government are doing to improve these vital opportunities for care leavers?
Baroness Barran (Con)
The noble Baroness raises a very important point, and she will be aware that, sadly, some of those figures are mirrored during a child in care’s educational experience. We are working very hard with virtual school heads to support children in the care system throughout their education, and we have support for them beyond. The noble Baroness will be aware that over half of these children have a SEND diagnosis, which also has an impact, obviously, on higher education.
Schools: Citizenship Education
Baroness Warwick of Undercliffe Excerpts(2 years, 5 months ago)
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Baroness Barran (Con)
The Government share the noble and right reverend Lord’s aspiration, and the aspiration of the committee to which he refers. We want our children to leave school with the knowledge, skills and values that prepare them to be active citizens, and good citizenship education obviously can help to achieve that. We look forward to the report and acting on it when we receive it.
Baroness Warwick of Undercliffe (Lab)
My Lords, will the Minister accept one of the specific recommendations of The Ties that Bind and reinstate bursaries for citizenship teachers for the 2023-24 academic year? Will she further consider keeping these bursaries in place until there are sufficient numbers to ensure that there is at least one trained specialist in every secondary school?
Capita: Turing Scheme Contract
Baroness Warwick of Undercliffe Excerpts(2 years, 10 months ago)
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Baroness Barran (Con)
I cannot comment on my noble friend’s final point but it is important that we look at the data and the evidence of what happens. As my noble friend has pointed out, the evidence is extremely encouraging.
Baroness Warwick of Undercliffe (Lab)
My Lords, will the Government guarantee adequate funding for Turing beyond the 2022-23 academic year?
Baroness Barran (Con)
I have stated that the Turing scheme is extremely important. It is a real priority for us; obviously, we will look at future funding as part of future SR agreements.
Vulnerable Children
Baroness Warwick of Undercliffe Excerpts(7 years ago)
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Baroness Warwick of Undercliffe (Lab)
My Lords, I thank my noble friend for giving us the opportunity to highlight these shocking figures. I hope by doing so that we can support the Children’s Commissioner in her determination to track and address child vulnerability in all its forms.
This report is, indeed, shocking in the sheer numbers it identifies, but it is shocking that these figures are often only estimates. So when we are told that more than half a million children are so vulnerable that the state has to step in and provide direct care, intervention or support, 800,000 children aged five to 17 suffer mental health disorders, 119,000 children are homeless or living in insecure or unstable housing, or that nearly 12,000 children are living with an adult in drug treatment, we know that the actual numbers of children living vulnerable or high-risk lives could be even greater.
My concern and profound dismay at these figures echo what is felt by everyone who has already spoken. I want to focus on two of the 32 categories of vulnerability outlined in the report. I mentioned the 119,000 children who are homeless, or living in insecure or unstable housing. For children to thrive from their earliest years, they need a secure home environment. I should declare an interest as chair of the National Housing Federation. We know that families in persistent poverty are often struggling with high living costs. Often the only option available to them is low-quality and insecure housing. Pressure on local authority housing lists means that families are stuck in temporary accommodation, often unsuitable for children, and tensions rise over housing allocations.
We can do something about this. We know that the right housing and the right support enables vulnerable families to break chaotic patterns of living and gain the benefits of settled accommodation in the longer term. When this happens across communities it has a multiplier effect—creating safer neighbourhoods, boosting social capital and reducing demands on acute health and care services. The case for investing in affordable housing is overwhelming. Can the Minister tell us what progress is being made on meeting the targets for increasing our affordable housing stock, and how will the Government ensure that these homes will meet the needs of families on waiting lists?
I also want to highlight the 800,000 children who are suffering mental health difficulties, as many other noble Lords have done. We know that childhood and the teenage years are when patterns are set for the future. A child with good mental health is more likely to develop healthy relationships, to do well at school, and to grow up to be able to take on adult responsibilities and fulfil their potential. So for these vulnerable children, early intervention is crucial. Yet recent government policies have made such intervention much harder to achieve: funding for the early intervention grant has been cut by almost £500 million since 2013, and it is projected to drop by a further £183 million by 2020. Central government funding for local authorities to spend on children’s services fell by £2.4 billion between 2010-11 and 2015-16, while a four-year freeze on support for children under universal credit is expected to reduce the value of key children’s benefits by 12% by the end of the decade. Councils are facing a £2 billion funding gap for children’s services by 2020, while demand continues to grow. Every day last year saw 90 new children entering care and 500 child protection investigations. Can the Minister give any assurance that this funding gap will be addressed in the forthcoming local government finance settlement?
While I wholeheartedly welcome the Government’s consultation on children and young people’s mental health provision, particularly its focus on earlier intervention and prevention—it is long overdue—I ask the Minister whether he thinks its proposals go far enough. Aiming to have new mental health support teams linked to schools and colleges in,
“a fifth to a quarter of the country”,
five years from now seems a very modest ambition, given the scale of the problem. We need to be able to provide support to children, young people and their families when they start to struggle, not 18 months after they are referred for treatment. That is how we will avoid the costly and intense suffering that entrenched mental illness can cause.
I am haunted by the invisible children not captured in these statistics because they haven’t been reported to services, or because of gaps in available data. I hope that this report does indeed help us to count more accurately and to arrive at a system which better identifies the vulnerable child. I echo my noble friend’s plea for an urgent cross-departmental response championed at the highest level of government, so we can offer those vulnerable children the help and support that they need.