Oral Answers to Questions

Karen Buck Excerpts

Monday 27th October 2014 Commons Chamber

[Nicky Morgan]

I thank the hon. Gentleman for his question. I am always happy to meet hon. Members about their schools. If I cannot do it, one of the Ministers certainly will meet him to hear about those issues.

[Ms Karen Buck (Westminster North) (Lab)]

Hon. Members and local authorities across the country have expressed concern about the shortage of school places. Why, then, does the Minister think that Westminster city council had 235 empty primary school places this summer and has suffered a 16% drop in applications for primary schools since 2011?

[Mr Laws]

As the hon. Lady will have heard, we have allocated £5 billion in basic needs funding across this Parliament and we have fully reversed the massive decline in primary school places that took place under the last Labour Administration.

National Minimum Wage

Karen Buck Excerpts

Wednesday 15th October 2014 Commons Chamber

[Mr Umunna]

That is right. On that 38% figure, I must say that I have a similar situation in parts of my constituency. I agree with my hon. Friend but I would add that I think so much of our economic debate takes part around the GDP figures, statistics and data, and of course that is right—we should look at the data—but the question is the lived experience of people in this country: do they think they have never had it so good? When we listen to the rhetoric from Government Members, that is often what we would be led to believe.

[Ms Karen Buck (Westminster North) (Lab)]

Has the Conservative party not got it completely the wrong way round? Is not strong economic growth dependent upon strong earnings growth, which in turn will help us to make sure we have a sustainable recovery that is shared among all the people?

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[Ms Karen Buck (Westminster North) (Lab)]

Three important pieces of news frame our debate on the minimum wage today. First, we heard the good news about the continuing fall in unemployment. Our politics, like those of most hon. Members, are motivated by wanting to see people in work, and any fall in unemployment is therefore extremely welcome. However, we also heard that the squeeze on incomes is continuing. Alongside that, we saw the data released by the End Child Poverty campaign, which mapped child poverty figures in every constituency in Britain. The figure for my central London constituency of Westminster North—of all places—confirms that 43% of all children there are now living in poverty.

Those three pieces of news are all connected. They show us what happens when people’s housing, energy and travel costs, along with all their other costs, go up but their incomes do not. Pay has been squeezed for years at every level in this country, except the boardroom. Only last week we also heard that FTSE chief executives enjoyed a 21% increase in their incomes over the past year, at the same time as the average increase in all pay and bonuses was a mere 0.7%. I do not begrudge those of great skill and entrepreneurial talent a good reward for their labours—I really do not. However, I do not see how it is possible to justify a 21% increase at the top end of the earnings scale when in my borough we had to fight to get recognition for carers—people carrying out the most intimate and personal care and support—of elderly and disabled people. These carers were not even guaranteed the minimum wage for their labours because, unfortunately, their travel time between care appointments was not counted in their earnings and therefore they were not able to enjoy the basic statutory protection for low wages. That is truly shocking.

The big story of events in the past few years is the shift to working poverty, which is when a job simply does not pay enough to lift someone over the poverty line. Some 6.7 million people who are in poverty, or half of all those in poverty, live in a family where at least one person is working. Scandalously, that figure rose by half a million in the past year. The proportion of jobs that are low paid also rose and although it is popularly supposed that that burden falls on the young—and they have had a particularly hard time in recent years—60% of all low-paid people are over 30. This is not just a phenomenon affecting the young.

[Richard Fuller]

Many of the employees on those low incomes are obtaining tax credits, which increases the amount of money they have at their disposal, with the companies therefore benefiting from the subsidy those tax credits provide. What is Labour’s policy on tax credits?

[Ms Buck]

I will talk about tax credits in a moment, because they are extremely important, but, as we have heard from Labour Members, there is no excuse for tax credits being a substitute for employers paying a decent wage.

The number of people paid below the living wage rose in the past year from 4.6 million to 5 million, so we have seen that problem getting worse. I want to talk a little about London, because this vastly successful city, which includes a massive concentration of wealth and some of the best paid people in the country, has a scandalous problem with low pay, and it has been getting worse. Almost one in five jobs in London are low paid and the number of low-paid jobs—those below the London living wage—increased by 45,000 last year to 600,000. The number of low-paid people in London has increased from a total of 420,000 just before the global economic crisis. In 2013, almost one in five London jobs were low paid. That figure has risen from 12% in 2009, so we have a worsening problem of low pay in London.

That problem is not spread equally across people or across all sectors. We know there is a particular problem in the retail and wholesale sector and that one in five low-paid jobs are in the hospitality sector—in hotels and restaurants. Together those two sectors account for nearly half of all low-paid jobs in London—again, that proportion has risen since 2010. We know that low pay particularly affects those working part-time, particularly women. The number of women working part-time on low pay in London has increased by 67,000 since 2009-10. Women are particularly at risk of being trapped in low pay.

Worryingly, we know that there is a particular crisis of low pay affecting black and minority ethnic communities. The Bangladeshi and Pakistani communities are at particular risk of being low paid, and that is also true of black African workers in the capital. We also know that low pay has spread from inner London, which has historically had some of the worst concentrations of poverty, out into the suburbs. They have seen the fastest increase in low pay, with the proportion of low-paid jobs being highest in boroughs such as Harrow and Bexley. They were traditionally regarded as among the more affluent communities in London, so the whole pattern is changing and, unfortunately, in the past few years it has not been changing in a good way.

What does all this actually mean? It means three things, one of which is that people are worse off. We know that, on average, working people are worse off by £1,600 a year. Paul Gregg, of Bath university’s institute for policy research, said in a report that the wages of Britain’s working people are almost 20% lower than they would have been had trend wage continued at its level before the global economic crisis hit us.

[Mr McKenzie]

My hon. Friend makes a good point about the £1,600 that people find themselves down each year in real-terms pay. That £1,600 would be spent in the local economy, thus promoting more jobs and sustaining more business.

[Ms Buck]

My hon. Friend is absolutely right about that. We know that the £1,600 fall in income in cash terms and the fact that wages are 20% lower than they would have been if wage growth had been consistent with its level before the global economic crash—before 2008-09 and beyond–—means several things for the wider economy. Obviously, low-paid people invest their money in the local economy; they spend it, and that has a beneficial effect on the shops, services and communities where they live. It also means that some of those people who would have been paying tax are no longer doing so, which has a beneficial effect for low-paid people coming out of tax but means that total tax revenues are undershooting dramatically, as the Office for Budget Responsibility has confirmed. Indeed, the problem of low pay and tax revenues is a contributing factor to not being able to reduce the deficit, which of course the Conservative party told us would be completed by the next financial year. That has been a complete public policy failure, with a reduction of only a third compared with a target of almost total elimination.

Other issues arise from low pay. It damages work incentives, and we hear a great deal from the Conservative party about those. It is as if it were the party that discovered the idea of work incentives and making work pay. In fact, we all want to see work pay and for that to be an incentive for people going into work. Let us accept that that is universally shared. The trouble is that the worsening scandal of low pay, including in cities such as London, means that work simply does not necessarily guarantee a route out of poverty and it traps people on benefits. That is partly because wages have fallen, as we have heard, but also because they have fallen, particularly in places such as London, relative to soaring housing costs and rising rents. The rise in rents in London means that many households simply cannot work enough hours at the kind of pay that is being offered to get free of benefit tapers. That is particularly true for lone parents and couples with children.

Let me return to the question I was asked by the hon. Member for Bedford (Richard Fuller) about tax credits. It is very important to put on the record just how crucial they are, because whatever one does about the tax threshold and taking people out of tax completely, it simply will not be enough to make sure that people with children are earning enough to make ends meet. The tax credit policy is not a substitute for tax thresholds; it is an essential complement to them, particularly for parents.

[Richard Fuller]

The hon. Lady rightly says that tax credits are a necessary policy addition to tax thresholds We are clear what the Government’s policy is on tax credits, but can she tell us what Labour’s policy is on them for the next five years?

[Ms Buck]

We heard from the Chancellor at the Tory party conference about what he wanted to do in that area. We are yet to have any specific proposals brought to this House and we will consider them when they are put in front of us. When we were asked to vote in favour of a freeze on tax credits—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The hon. Members for Bedford (Richard Fuller) and for Streatham (Mr Umunna) should listen to the hon. Lady.

[Ms Buck]

When we were asked to consider what the Government’s freeze on tax credits was going to do in the earlier part of this year, we drew attention to exactly that fact and opposed the Government on that particular freeze for this year because we knew it would hit working people. We hear all the rhetoric from the Conservatives about work incentives, but we do not hear what impact that has on low-income working people.

[Richard Fuller]

I am trying to try to find some common ground. Does the hon. Lady agree that when we are talking about what to do with incomes for the low-paid, it is important that we do not try to sell them this idea that an increase in their wage will necessarily lead to an increase in their full income unless we are clear about what the policy will be on tax credits?

[Ms Buck]

I think I understand the point. We will consider, and make a decision on, those proposals that are put in front of us. They will not necessarily be the proposals that have been put in front of us by a Conservative party conference. It is extremely important to look at tax credits in the round as well as at other changes to the tax system to ensure that we are helping not just those on low incomes through tax thresholds but those who have children so that they have a chance of a decent standard of living too.

Another related point is that low pay has caught people in in-work benefits and added to the benefit bill. The low-wage economy has led to an enormous increase not only in the number of working people claiming in-work benefits such as housing benefit, but in the total expenditure. For example, we have seen a £4 billion increase in housing benefit— that is despite the fact that the Government have made cuts to the total level of housing benefit—as more people are forced into making claims to make ends meet. Indeed, the number of working households needing housing benefit has already increased by 22% and is expected to double over the coming years.

To ensure that we have a sustained recovery and that we tackle the cost of living crisis, help people on low pay and cut the benefits bill, we need to do something about low pay. That is why I so warmly welcome what my hon. Friends on the Front Bench have said about tackling the minimum wage, delivering the “make work pay” contracts, and helping and supporting employers to pay the London living wage, which was set at £8.80 in 2013-14. That will ensure that Londoners can enjoy the full fruits of economic growth as it now belatedly returns.

Where possible—we know that this will not apply to every single sector of the economy—employers should be able to pass on the benefits of the recovery to employees, and in so doing ensure that the additional costs of in-work benefits are offset, so that we can make a contribution to the Treasury. We know that the minimum wage is only one component in a package that will do something to end the cost of living crisis. I welcome the proposals that will ensure rent stability for London renters who have been dealing with this enormous burden of increased housing costs, and the measures to tackle energy costs that have so burdened low-income households over the past few years. The minimum wage may be only one component of the package, but it is a vital one. I very much welcome today’s motion and look forward to voting for it.

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[Heather Wheeler]

I completely agree with the hon. Lady. All work should be worth doing and worth paying. There is no difference between us on that. How depressing would it be if ever, God forbid, Labour got into power? That is what its mantra is about. Ours is not about that; ours is about sunny uplands.

[Ms Buck]

Does the hon. Lady not accept the fact that the number and proportion of people in low pay has increased since her party has been in government? It is all very well telling people to lift their horizons, but in fact the crisis of low pay has intensified over the past four and a half years.

[Heather Wheeler]

I will have some difficulty in accepting that. The point is that 1 million fewer people are unemployed. There are more people in employment now than ever before. There are more women employed than ever before. I want people to understand that getting a job and looking after their family is their No.1 priority, and that is happening.

Obviously, I have looked at the statistics for South Derbyshire. Fewer than 7% of workers in South Derbyshire are on the minimum wage. That is because we have made a real effort to get manufacturing in South Derbyshire and to get a supply chain for the manufacturers. We have made a real effort to get apprenticeship training schools in South Derbyshire. We have worked like—let me find a nice phrase for this. We have worked very hard to ensure that people do not just say, “Do you know what, I do that because my dad and my grandfather used to do that.” It is about lifting horizons.

I totally agree that we need all our public services to ensure that we have clean streets, bins that are emptied and street lights that stay on. People should understand the value of working. I find it so depressing that all we ever get from Labour is this business of layering on regulation and doom and gloom. The right ideas that we heard at conference include raising the tax threshold to £12,500. The horizon of my hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) is to raise it to more than £14,000. We are not talking about people being grateful that we are only going to tax them at 10%. We want everybody lifted up out of that level. It is outrageous that people should even contemplate that that might be in a Labour manifesto.

--- Later in debate ---

[Heather Wheeler]

The difficulty that the hon. Gentleman slightly skates around is the fact that this would be such a burden for companies that are not doing well. That is where we have the problem. We need our companies not to have regulation, to have aspiration and to have 20% corporation tax, so that they can pay their employees well.

[Ms Buck]

By that same logic, does the hon. Lady think the cost of in-work benefits, which is soaring because of the rise in the payment of low wages and because of falling wages, is a burden on the taxpayer?

[Heather Wheeler]

I want to turn the whole argument the other way around. I feel that companies need to understand that we expect them to look after their employees. We need only to think about what has happened with the taking on of pensions. It has been a huge success. Again, all the naysayers said that nobody would take it up and it would not work, but it has been one of the best successes because good employers have loyal employees who stay and work for them. That is what I want to see in the future for our country. Goodness forbid that Labour get in next May. I do not want that to happen because I feel that the economy is just turning around, as people are understanding that we are manufacturing so much more than we ever used to and that that is the way forward. It is about aspiration, education, apprenticeships, good living and good wages. I see all of that in South Derbyshire and I do not want it to be put under threat.

Oral Answers to Questions

Karen Buck Excerpts

Monday 16th June 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Education (Elizabeth Truss)]

Last year’s results from the progress in international reading literacy study—PIRLS—showed that the number of children in this country who are reading for enjoyment is going up; it has resumed considerably over the past few years. We have fantastic schemes to encourage students to read, such as the summer reading challenge. This year’s challenge is the mythical maze, which will challenge children to find their way around a labyrinth and introduce them to fantastical creatures from the world of legend and mythology.

[Ms Karen Buck (Westminster North) (Lab)]

T4. Further to his somewhat unilluminating response to the question from my hon. Friend the Member for Cardiff West (Kevin Brennan), will the Secretary of State tell the House—and if necessary write to me—on how many occasions his former special adviser Dominic Cummings has visited the Department for Education since he left the Secretary of State’s employment, and whom he met on each occasion?

[Michael Gove]

I will consider carefully, as ever, the hon. Lady’s question, but it is instructive that with many educational challenges in her constituency, she chooses once again to disappear down the rabbit hole of Whitehall process, rather than seeking to stand up for her constituents.

Child Care (London)

Karen Buck Excerpts

Wednesday 19th March 2014 Westminster Hall

[Ms Karen Buck (Westminster North) (Lab)]

I congratulate my hon. Friend the Member for Lewisham East (Heidi Alexander) on securing this important debate, and on laying out so clearly, as other Members have done, some of the issues to do with the high cost of child care in London. I am pleased with anything that secures additional resources for child care in London and goes towards meeting that child care gap, and one thing that can be said about the additional money going into the child care tax relief is that it will, to some extent, help those middle-to-higher earners facing extraordinary costs at the sharp end, particularly in such places as my constituency in central London.

That money is welcome, as is the Government’s recognition of the need to improve the child care offer within universal credit. The organisations campaigning on behalf of low earners were enthusiastic about that recognition. Will the Minister let us know the extent to which that welcome additional assistance for low earners will benefit Londoners proportionately? Historically, the child care tax credit—I am obviously a fan of that investment in tackling working poverty—never benefited London to anything like the same degree as it did other regions of the country. I need to be sure that the universal credit child care offer will benefit London as much as it should.

That speaks to the central point, which is that the investment in child care announced yesterday—welcome as every penny put into child care is—raises a question about whether that marginal pound is best spent in the way that the Government propose. As we know, £750 million of that offer is likely to go to higher earners, with only £200 million going to lower earners. I suggest that the balance of that investment probably does not meet the level of need. We have heard about the cost of child care in London, but it is also important to recognise that not only do we have a supply-side problem, but Londoners are disproportionately likely not to have networks of informal care, so they will need formal child care more than people outside London. Obviously, lower earners are disproportionately more likely than higher earners to rely on informal care. That needs to be addressed if we are to help parents into work, as well as provide an important child development experience, which is what investment in child care should always be about.

One thing that alarmed me—and, I think, a number of organisations—about the universal credit investment is that the money has been identified as coming from elsewhere in the universal credit budget, although as yet we do not know where. I am anxious to know the answer to that, because the one thing we do not want is for support for working parents within universal credit to be taken from the other ways of supporting low-income families. Universal credit is already likely to disadvantage London as the child care tax credit once did, because it does not properly reflect higher costs there, particularly the higher cost of housing. I think that Londoners will lose, proportionately, under universal credit, or will not gain to the same extent as people elsewhere. We need to ensure that the resources do not come from the individuals who are affected by that.

In the couple of minutes that I have left, I want to talk about the extent to which the investment that the Government announced yesterday will help with supply. There is a risk that there will be the child care equivalent of Help to Buy, which helps with buying, not building. The risk is that the announcement will help to increase demand for child care, but do relatively little to increase supply, particularly because major child care providers’ costs are already squeezed. I know that the Minister is familiar with the London Early Years Foundation, which started as the Westminster Children’s Society, and which I hold in high regard. It tweeted about the child care offer for two-year-olds, which is a critical way of increasing supply:

“The challenge of expanding the two year old programme…is whether we can do this for £5.09 in London? How?”

It is a social entrepreneur project, providing child care at the lowest possible cost, yet it wants to know how it can provide that quality offer within the envelope.

[The Parliamentary Under-Secretary of State for Education (Elizabeth Truss)]

I wanted to point out that £5.09 is a national average. The average London rate is higher, because the offer for two-year-olds is adjusted for salaries in each area. It is more like £6 for London.

--- Later in debate ---

[Ms Buck]

I am grateful for that clarification. I shall be interested to know why the London Early Years Foundation, probably the major child care provider in London, does not know that. I shall have to have that conversation. Even allowing for what the Minister said, which I accept in good faith, the principal point still applies: as we know, child care workers are disproportionately employed on the minimum wage, and there is cost pressure in the sector because of the cost of providing premises and so forth.

I am concerned, also, about the interaction between the investment and the expansion of the offer for two-year-olds. Councils are being given nursery education grants to expand their places, but the interaction between that investment in expanding places and the money that the Government are putting into increasing supply is leading to interesting anomalies. In my local authority, the child care plan for the coming years states that 400 new places for two-year-olds are needed; 886 families have been identified as entitled, leaving a shortfall of 384. Those places must be provided, and the Government want them to be provided.

What is happening within the cost envelope that we have been given? Guess what: the nurseries in my area have just sent a letter—I saw it today—to all Westminster councillors. It says that Westminster has just announced that it is cutting full-time provision in all its nursery classes and nursery schools in September 2015, so that it can meet the entitlement. It is an extraordinary situation: the day after the Government’s announcement of a boost for child care, Westminster city council is happily telling parents that they will lose their full-time places, on which many people rely to be able to work, so that it can expand the offer. My constituents, and parents looking for provision, will be asking themselves tough questions about the Government giving with one hand and taking with the other. There is much more to say, but I know that other hon. Members want to speak.

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[Lucy Powell (Manchester Central) (Lab/Co-op)]

I congratulate my hon. Friend the Member for Lewisham East (Heidi Alexander) on securing this important debate and on its timely nature. It is slightly humbling to have such a wealth of experience on these matters on the Benches behind me. I cannot possibly make a contribution on this important topic that will match those made by so many hon. Members over the years, but I will attempt to do so in my winding-up remarks.

The issues facing families in London are the exacerbated version of what families around the country face. Child care costs in London, as we have heard, are much greater than in the rest of the country. For example, a full-time under-twos’ place in London is on average £2,500 a year more expensive than it is in the rest of the UK. We have also heard that the supply of places in London is much more difficult than in the rest of the country. London has the lowest take-up of child care in the country. Given the extent of the growing economy in London, and the vibrant economy that we have always had here, it surprises me that take-up of child care should be that much lower here.

That has a direct impact on London’s maternal employment rates, which I was surprised to see are the lowest in the UK—there is a big gap in the rates—especially given the number of lone parents and other factors in London. That low rate has an impact on individuals, who are not able to fulfil their lives or provide for their families as they would like, and on the London economy, because so many women are out of the labour market. That has an immediate effect on gender pay gaps. It is shameful, or should be, that last year the gender pay gap increased for the first time in 15 years. Women suffer the pay and status penalty for taking time out from work. That should drive us all forward continuously to address fundamental issues to do with child care costs and provision, especially here in London.

The issues are not new. I will not lay all this at the door of the Government. These are long-standing problems that we have tried to address over many years. We have to recognise, however, that some of them have got more difficult over the past few years than they needed to, or than they were. If I may, I will use some of my time simply to ask the Minister questions about Government policy, since we have the opportunity to do so.

Many Members have talked about the two-year-olds offer and its impact, but the take-up of the offer in London is the worst in the country—only 51% of eligible children take up the offer, compared with 75% of eligible children in the country as a whole. What is the Minister doing about that? She has earmarked some new money— £8 million was announced last year—but what will it be used for, and how does she envisage that that will increase places and capacity in the system? Does she feel that the money is enough?

We heard about some unintended consequences of the two-year-olds offer from the hon. Member for Enfield North (Nick de Bois). We strongly feel that provision and planning of nursery and early years places should be decided locally, and put in place in the context of a longer-term strategy. His Government made a mistake in taking those responsibilities away from local authorities.

The new scheme was announced a year ago, but was revitalised yesterday and in today’s Budget. As others have said, Labour Members welcome any new money or investment in child care, because families are desperate for that help, but we must see this in context. On average, families have lost more than £1,500 a year in child care support over the term of the Government, through loss of tax credits and child benefit. Over the same period, nursery and child care costs have gone up by 30%. Taking those two figures together, families are more than £2,000 a year worse off when it comes to meeting their child care costs than they were in 2010. The scheme and the money are welcome, but they will only get parents back to where they were in 2010.

The issue raised by my right hon. Friend the Member for Dulwich and West Norwood (Dame Tessa Jowell) about the Australian model is critical. Will the Minister tell us today what assessment she or her colleagues in the Treasury or other Departments have made of the scheme and whether it will affect price inflation? Will parents feel the benefit of the scheme in the amount that they have to pay?

It would also be fairer of the Government to be absolutely clear about who will benefit from the full amount of the scheme. An average parent tuning in and out of yesterday’s news coverage might be forgiven for thinking that they were going to get £2,000 a year per child for help with child care costs. In fact, the figure is nothing like that. The Government have allocated £750 million a year to the scheme; they say that 1.9 million families will benefit, although in the small print they estimate that the figure will be nearer 1.3 million. Whatever way we do the maths, even the Government’s own figures suggest that the average amount per family on the scheme is somewhere between £400 and £500 a year, which is a far cry from the £2,000 per child that the broadcasters and newspapers were reporting yesterday. Will the Minister confirm that there is no new money for the scheme since what was announced a year ago, which was £750 million, even though the scheme is being extended? Those are the main points that I ask her to cover today.

On the universal credit announcement, as other colleagues have said, we absolutely welcome the plugging of that major gap in the scheme. We have been calling for that for many months. We have to be realistic, however: families on tax credits have seen a huge reduction in their child care support, from 80% to 70% under this Government, and the increase to 85% will not come in until universal credit comes in. We do not even know when universal credit will come on stream for families; it could be 2017 or 2018, and families will have faced a seven or eight-year gap with significant reductions. Will the Minister tell us what steps are being taken to help those families who are struggling with their costs now? Does she recognise that it was a mistake to reduce the rate from 80% to 70% in the first place?

[Ms Buck]

We have not talked about the early intervention grant and children’s centres. On take-up and participation in the offer, certainly in my constituency, a number of parents come through the experience of children’s centres, where they learn to deal with child care, build confidence, and develop their labour market skills. The early intervention grant, however, has been cut by 49% in Westminster. The lights are on in our children’s centres, but no one is home—the tumbleweed is blowing through them, and the services have all been closed—and that is unfortunately impacting on other areas of child care.

[Lucy Powell]

My hon. Friend makes a good point, and I suggest that she tries to secure a separate debate on that issue because of its importance. We welcome yesterday’s announcement, but it needs to be set in context. A remaining real challenge for families is to face these critical issues, which have a real impact on maternal employment rates and the gender pay gap, and that is something the Government should be worried about.

[The Parliamentary Under-Secretary of State for Education (Elizabeth Truss)]

I congratulate the hon. Member for Lewisham East (Heidi Alexander) on securing this debate on an extremely important topic. The Government’s various announcements this week, from three different Departments—the Treasury, the Department for Education and the Department for Work and Pensions—show how seriously we take this issue. We have announced that parents will get up to £2,000 per child towards their child care costs. Parents on low incomes will get 85% of those costs paid.

I want to challenge some of the things that have been said in the debate. Under this Government, spending on child care and early intervention has gone from £4 billion to £4.5 billion. I am happy to supply hon. Members with statistics for their local authorities. It is worth making the point that we spend as much money on this, as a proportion of GDP, as countries such as France and Germany. We have to try to get better value from the money we spend. That is the intention of a lot of the Government’s work.

Many Members have pointed out that the problem has not arisen overnight. Child care costs have been rising steadily for the past 15 years. However, this year’s Family and Childcare Trust survey showed that costs in England are starting to come down for the first time in 12 years. In England, costs of nursery care are frozen in nominal terms and have fallen once inflation is taken into account. In Wales, the cost of equivalent nursery care has gone up by 13%, and in Scotland, by 8%.

The use of child care in deprived areas has gone up by 16% in the past year. We have also seen an increase in maternal employment rates and the number of women in work. That is because the Government have made an effort to streamline the complicated child care system we inherited. Whereas there were multiple bodies inspecting child care providers, Ofsted is now the sole arbiter of quality. We have also announced a single child care register that all child care providers should be on.

The right hon. Member for Tottenham (Mr Lammy), who is not in his place, made an important point about older children. The Secretary of State has recently announced that for our next manifesto the Conservatives are looking at the idea of enabling and funding schools to open for longer hours to give an integrated offer to parents. The issue is not just about child care but about education.

[Ms Buck]

I raised the fact that councillors are being asked to support our local nurseries and nursery classes, but are being told that they have to cut places from full time to part time because of the funding pressures of the offer. Does that meet the Minister’s objective of providing longer hours of care?

[Elizabeth Truss]

I am about to come on to the issues that are specific to London, and will address that point then.

We are absolutely passionate about quality and improving outcomes, which we know have previously been issues. There is an 18-month vocabulary gap between children from low-income and high-income backgrounds. That is a problem for all of us, because it means that children start school in different positions. We have improved the standards for early years teachers, so that they now have to meet the same standards as primary school teachers. We have seen a 25% increase in the number of early years teachers enrolling on courses in the past year. We are also raising the standards for early years educators. This week, we announced an early years pupil premium for three and four-year-olds, which means that there will be extra money for the most disadvantaged children aged three and four.

We have improved the Ofsted framework, so it now looks at the qualifications of staff in nurseries and is much more focused on outcomes. We have introduced Teach First for early years teaching, to make sure that we are getting the best and brightest graduates into that vital sector. Most importantly, we are working on a coherent framework for the teaching structure from the ages of two to 18, so that early years provision is not seen as an afterthought but as a core part of our education system.

I recognise that there is a greater challenge in London. That is why I launched an £8 million fund with the Mayor of London at the end of last year. That aims to unlock the £1 billion that the Department for Education spends on early years provision in London.

I very much agree with the comments on increasing flexibility. A lot of school nurseries offer parents three hours, five days a week. That does not fit with many people’s working patterns. It also does not use our school nursery resources very well. In London, 45% of early years places are in school nurseries, which are generally open only between 9 am and 3 pm. If those school nurseries were all open between 8 am and 6 pm, that would give 66% extra child care hours. It is not a question of building more facilities but of using our facilities better. Those nurseries could open for two five-hour sessions a day, offering multiple hours.

Apprenticeships

Karen Buck Excerpts

Tuesday 12th March 2013 Commons Chamber

[Ms Karen Buck (Westminster North) (Lab)]

We have two tasks to fulfil today and I believe that we have fulfilled them. The first, arguably the most important, was to celebrate national apprenticeship week and apprentices. We have had speeches from Members on both sides of the House doing exactly that. From the Opposition Benches we had strong speeches from my hon. Friends the Members for North Tyneside (Mrs Glindon), for Inverclyde (Mr McKenzie), and for Bolton West (Julie Hilling). They spoke of their constituency experiences and praised those involved in delivering apprenticeships, whether SMEs, large employers, training agencies, and colleges.

Further education colleges do not get the attention and praise they deserve in this House. They are central to the delivery of the skills agenda in respect of apprenticeships. Apprenticeships deliver £3.4 billion of value to the economy, so they are not only good for the people undertaking them; they are also good for the wider economy. We have given them the praise that they deserve today, and I hope people will pay attention to the fact that there is cross-party consensus on the value of apprenticeships.

Our second task, however, is to draw attention to what more needs to be done and to what we can do better—and there is a great deal that we can do better. The BIS Select Committee Chair, my hon. Friend the Member for West Bromwich West (Mr Bailey), mapped out the Committee’s important recommendations and drew attention to the core tasks we all face in raising the status of apprenticeships: the task of acquiring parity of esteem for people going through the apprenticeship pathway; and the importance of increasing capacity and the role procurement can play in that. Some Members may remember the Monty Python sketch involving a summary of Proust. My hon. Friend managed to summarise his Select Committee’s recommendations even more quickly, as I think Monty Python allowed a little longer than six minutes.

Opposition Members have critiqued the Government in a variety of ways, including by drawing attention to the worrying fall in the number of places for young people, especially those aged between 16 and 18. We have talked about the growth in apprenticeship numbers—there has been significant growth, which started well before 2010—but they include places that were rebadged, such as adult training schemes originally provided under Train to Gain. The abolition of Train to Gain may have led to the loss of as many as half a million training places, and included in the quarter of a million increase in the number of apprenticeships are a substantial number of adult apprenticeships that would previously have been classified as adult training. Adult training is important and valuable, but it is not the same as apprenticeships, as the Richard report makes clear.

We have a long way to go to deliver the quality and range of apprenticeships, particularly for young people, that the Richard review recommended. The Association of Colleges says:

“Currently there are insufficient apprenticeships available for those who want one, particularly for 16 and 17 year olds. Despite incentive programmes such as the Youth Contract, employers remain reluctant to employ ‘untested’ young people, preferring those with more experience.”

The National Apprenticeship Service has also drawn attention to the fact that there are 10 applications for every apprenticeship, so the level of unmet need is clearly significant.

We also need to take a careful look at the balance of available apprenticeships across sectors. That point was made in powerful speeches by my right hon. Friend the Member for Tottenham (Mr Lammy) and my hon. Friends the Members for Islwyn (Chris Evans) and for Birmingham, Northfield (Richard Burden). Welcome though apprenticeships may be in the fields of office work and administration, health and public services and retail and commercial enterprises, they account for 71% of all 19 to 24-year-old apprenticeship growth. There has been a recent fall in the number of construction apprenticeships and relatively modest growth in areas such as engineering. We will need greater growth in those vital sectors if we are going to help young men as well as young women and address some of the crises in youth unemployment and unemployment among black and minority ethnic communities.

There are other anxieties as well. Why in 2011-12 did achievement rates fall across all groups for the first time? The Minister must address that. How effective is the new careers advice and guidance regime in ensuring that the apprenticeship pathway is seen as a valued option for young people? The Association of Colleges says:

“As a flagship Government policy, apprenticeships must be effectively promoted. The general lack of awareness and understanding of apprenticeships amongst young people and the wider public is a serious issue.”

Several speakers on both sides of the House have mentioned the survey that found that just 7% of young people are able to name apprenticeships as a post-GCSE option. The Government must urgently address that.

Labour has a clear vision for vocational education and apprenticeships. We will introduce a technical baccalaureate at 18—a gold standard in vocational education, held in high esteem, that will command the confidence of business, parents and pupils. Through the measures outlined today we will confront head on the shortage of high-quality apprenticeships for young people. We will put business in the driving seat on skills and apprenticeships. Our taskforce, led by Professor Chris Husbands, will bring forward recommendations on apprenticeships and skills for 14 to 19-year-olds, a joined-up approach to the education and skills challenges we face as a country.

We need a stronger voice for business in delivering the skills agenda we need to compete in the global race. We need a system that is more responsive to the needs of local economies and that will drive forward the generation of new opportunities. Government procurement is one means to that end. We are confident that the procurement measures set out in our motion will do exactly what we expect them to do and will not fall foul of European rules or others.

We are looking at how to improve the quality of advice given to young people, following the shake-up of careers advice and guidance, which was heavily criticised by, among others, the Education Committee. We want to review the impact of the removal of the work experience requirement at key stage 4, which a number of Members have mentioned today. I want schools and colleges to provide apprenticeship taster days to teenagers. If pupils can take a few days out of the classroom to visit universities, I do not see why the same principle should not apply to apprenticeships. Young people from age 14 should be able to get the opportunity to visit companies that offer apprenticeships to see what is involved in the programme and understand the training and career opportunities available. That is Labour’s plan for apprenticeships, putting them at the heart of a new vision for vocational education in this country.

In this national apprenticeship week we want to see a commitment to using the powers of Government to boost apprenticeship numbers and, especially, to meet the needs of a young generation facing almost unprecedented challenges in the workplace. It is simply not good enough that just 7% of young people see apprenticeships as a post-GCSE alternative. It is not good enough that two thirds of large companies do not provide an apprenticeship programme. It is not good enough that the message on the ease of delivery of apprenticeships has not got through to nine out of 10 small and medium-sized employers. We must do better at making sure that the barriers in their way are removed.

It is simply not good enough to ignore the potential of the procurement process as an effective lever for opening up opportunities, particularly for young people, and particularly in the skills and trades that most of us recognise as being at the heart of an apprenticeship programme and that will enable us to compete in the modern economy with the developed countries that, in many cases, are providing apprenticeships at three, four or five times the rate available in this country. That is why the Opposition have put forward a motion that praises the culture of apprenticeships, wants to see more of them provided and wants to see equality of status for them. That is why I urge Members to support the motion.

Oral Answers to Questions

Karen Buck Excerpts

Monday 4th March 2013 Commons Chamber

[Matthew Hancock]

I know the scheme well and it is both simple and effective. It also takes value for money into account. I was talking to a permanent secretary about it only this morning and I shall be doing far more of that.

[Ms Karen Buck (Westminster North) (Lab)]

I welcome investment in pre-apprenticeship training and preparation, but is the Minister not concerned about the accelerating decline in the number of apprenticeships available to 16 to 18-year-olds, which is down 7% from last year’s figure alone, and that the funding providers found a shortfall of £61 million in expenditure on that group last year? It is right and proper to invest in pre-apprenticeship training, but does he not agree that the bigger crisis is in whether those young people will have an apprenticeship to go on to?

Oral Answers to Questions

Karen Buck Excerpts

Monday 21st January 2013 Commons Chamber

[Michael Gove]

I am absolutely delighted that business, not only in my hon. Friend’s constituency but elsewhere, is playing an increasingly positive role in supporting work experience in schools and promoting an understanding of the world of work among the next generation. In particular, I have been delighted to be able to work with Business in the Community, an outstanding organisation supported and established by the Prince of Wales, that has done much to ensure that business plays its part in encouraging our young people to aspire to achieve more.

[Ms Karen Buck (Westminster North) (Lab)]

This morning, the Under-Secretary of State for Skills tweeted his support for the Policy Exchange report on vocational education, but that report and Tim Oates’s report for Cambridge Assessment were both heavily critical of the Government’s approach, including of their move away from immersion in the workplace for young people. Will the Secretary of State tell us how many schools have now withdrawn provision for work experience for 14 to 16-year-olds, and whether he wants that provision to be ended completely?

[Michael Gove]

It is for each school to decide what is appropriate for its own students, but Alison Wolf’s report, which was welcomed across the House, clearly underlined the importance of high-quality work experience after the age of 16. That position was supported by the CBI and by the Labour party at the time, and our reforms to the funding of post-16 education now facilitate that provision.

Oral Answers to Questions

Karen Buck Excerpts

Monday 3rd December 2012 Commons Chamber

[Michael Gove]

There are few in the Government keener than me on encouraging enterprise among young people—in fact, there is one: the Under-Secretary of State for Skills, my hon. Friend the Member for West Suffolk (Matthew Hancock). However, I would be wary of treating the curriculum as though it were Santa’s sack—as though we could shove into it everything that we wanted and it would magically expand. If we are to ensure that teachers are free from unnecessary prescription, we need to ensure that great teachers can build the curriculum they want with a proper balance between what we expect centrally and what they determine locally.

[Ms Karen Buck (Westminster North) (Lab)]

Ian McNeilly, the head of the National Association for the Teaching of English, has said of the Government’s new English curriculum:

“It is fantastic that Mr Gove has acknowledged that English as a subject needs to move into a different century. Unfortunately for all concerned, he has chosen the 19th rather than the 21st”.

I am sure that the Secretary of State will regard that as the highest praise, but does he agree that that is almost certainly not what was intended? Will he therefore reflect again on the omissions from the curriculum—particularly in areas such as writing, analytical and listening skills—that have been invoked by our friends in the CBI?

[Michael Gove]

I do not see anything wrong with having the 19th century at the heart of the English curriculum. As far as I am concerned, Jane Austen, Charles Dickens and Thomas Hardy—not to mention George Eliot—are great names that every child should have the chance to study. As for the National Association for the Teaching of English, I am afraid that it is yet another pressure group that has been consistently wrong for decades. It is another aspect of the educational establishment involving the same people whose moral relativism and whose cultural approach of dumbing down have held our children back. Those on the Opposition Benches have not yet found a special interest group with which they will not dumbly nod along and assent to. I believe in excellence in English education. I believe in the canon of great works, in proper literature and in grammar, spelling and punctuation. As far as I am concerned, the NATE will command my respect only when it returns to rigour.

Oral Answers to Questions

Karen Buck Excerpts

Monday 29th October 2012 Commons Chamber

[Matthew Hancock]

I am in favour of sandwiches and in favour of people who learn skills in apprenticeships in all sorts of different sectors. I pay tribute to my hon. Friend, who held a jobs fair last week. I will be copying what he did in my constituency. I hope he, like me, will go to the meeting on Wednesday to discuss what Members on both sides of the House can do to promote apprenticeships in their area.

[Ms Karen Buck (Westminster North) (Lab)]

I welcome the Minister to his post. He has large shoes to fill because his predecessor was a passionate advocate for the brief, but I am sure he will do splendidly. Unfortunately, however, recent figures show a 2% drop in the number of apprenticeships for 16 to 18-year-olds for 2011-12. Given the concerns that we share about long-term youth unemployment and the number of young people not in employment, education or training, does that figure show that the Government are failing in their own terms?

[Matthew Hancock]

On the contrary, not only is youth unemployment on the latest figures falling—thankfully—but in the last year, we have moved to make apprenticeships higher quality. For instance, 11,000 apprenticeships had no job attached. Is it not far better to have high-quality apprenticeships and sell them to employers to ensure that as many as possible engage, so that we can get the numbers and the quality going up at the same time?

Oral Answers to Questions

Karen Buck Excerpts

Monday 3rd September 2012 Commons Chamber

[Tim Loughton]

My hon. Friend makes a pertinent point. We share the same local authority—West Sussex—where there is some innovatory practice in youth services, provided not just by the local authority but in partnership with punchy voluntary organisations which know what young people want and can engage with them and make sure that they are engaging with useful services that will aid their well-being, which is what youth services are all about.

[Ms Karen Buck (Westminster North) (Lab)]

We already know from parliamentary answers that youth services have suffered a disproportionately large cut in public expenditure, but last month the National Association for Voluntary and Community Action released a report which found that its members had experienced a drop of around a fifth of total expenditure, 40% of them making redundancies, and that children’s and young people’s organisations were being disproportionately hit. As the Minister has expressed concern about local authorities disproportionately cutting youth and children’s services, what precise steps is he taking to make sure that local authorities and the voluntary and community organisations that he rightly praises are not targeting youth services for a larger share of cuts?

[Tim Loughton]

The hon. Lady makes my point. I have expressed my concern about the disproportionate effect—in some cases— on youth services that some short-sighted local authorities have exercised. That is why we consulted on and revised the statutory guidance which we issued back in June, and why also, at the core of Positive for Youth—the most comprehensive policy, which her Government never even attempted—are those best placed to have a voice and scrutinise the value of their youth offer: young people themselves. That is why I am about giving a voice to young people and making sure that they have a place at the top table in the town hall—something that her Government never gave young people.