Skills and Post-16 Education Bill [HL]

Lord Aberdare Excerpts

Committee stage
Monday 19th July 2021 Lords Chamber

[Lord Baker of Dorking (Con)]

My Lords, I warmly support the amendment moved by my colleague and noble and learned friend Lord Clarke of Nottingham. We are both members of the House of Lords Select Committee on Youth Unemployment, as are the noble Lord, Lord Layard, who is a supporter of this amendment, and the noble Lord, Lord Storey, who speaks for the Liberals. We are exploring all ways in which we can improve skills training in our country, which is pretty dismal at the moment and compares very badly with many European countries.

One aspect that the Government boast of is the lifetime guarantee. This affects in particular those people who do not have A-levels and decide in their 30s, 40s or 50s that they would like to take an A-level course. To do that they will have to pay a course fee of about £5,000 to £6,000 a year, for which they may require a loan. As they are studying, they could not apply for the minimum wage or universal credit so, if they are unemployed, they would almost certainly have to take out a maintenance loan of another £6,000 or £7,000. So we would be asking unemployed people to pay £12,000 to acquire an A-level qualification that, had they stayed at school, they would have got for free. It is simply outrageous and unacceptable, and it makes a complete farce of what a lifetime guarantee is.

I am very hopeful that the Government will accept this amendment. Why am I hopeful? Well, about four weeks ago, the Government announced a skills fund on which they are going to spend about £2.5 billion. They suggested four items on which the fund could be based, the first of which was £93 million for free A-levels. They have now said that they want to go into consultation on the skills fund, which means that those original four proposals are on ice. I suggest that they should think very carefully and put the first item back in. That would be a way for the Government to fund this. Can the Minister tell us whether the four items of expenditure on the skills fund are on ice? They have spent most of the £2 billion among them.

I would go further than my noble and learned friend has done. If you go to an FE college at 18 and you get to level 3, you will want, if you are able enough, to go on to level 4, the higher national certificate, or level 5, the higher national diploma. This is where the main skills gap in our country is. If you analyse the skills gap in digital, in engineering or in the creative industries, you see that it is greatest at levels 4 and 5. These are two qualifications just below degree level—you would describe those taking them as high-quality technicians—and we have a huge skills gap in that area. We should be promoting levels 4 and 5.

A course at level 4, which currently costs about £6,000 or £7,000, should be free. If an unemployed person is doing that, they will not be able to claim the living wage or universal credit, so they will need a maintenance grant of probably £6,000 or £7,000. So someone who wants to study at level 4 today for whom the alternative is unemployment has to find a loan of £12,000, which by the time they finish will be £15,000. I do not think that is at all reasonable. Strangely enough, neither did the Department for Education about nine or 10 months ago, because it put to the Treasury the proposal that level 4 should be free for unemployed youngsters, as should level 5, the higher national degree, which is just below level 6—a degree. The Government should consider this proposal and I hope our Select Committee will consider it as well. We have to stimulate real growth at levels 4 and 5. If we do not, our country will fall behind technologically.

I am sure the Government will accept my noble and learned friend Lord Clarke’s proposal today because it would be totally illogical and unfair not to accept it, but I hope they will think a little wider and broader because we have to upskill our country and catch up with Germany, Austria and the Netherlands. We are so far behind. This is a moment at which we can make significant changes for generations of young people to come.

[Lord Aberdare (CB)]

My Lords, I support both amendments in this group. I put my name down mainly to speak on Amendment 76, which has been so powerfully moved by the noble and learned Lord, Lord Clarke of Nottingham, and to focus on Section 3, about apprenticeship funding for young people before the age of 25, which is badly needed.

The question I am asking myself is, how will this affect the overall funding of apprenticeships and how will it help to deliver, as stated by the noble Lord, Lord Baker of Dorking, a stronger focus on levels 4 and 5 as well? Where are those apprenticeships going to come from, and what is going to persuade employers to provide those opportunities? Many employers, of course, have limited capacity to take on new staff, particularly young people coming directly from education without previous working experience, however much they might wish to do so if they could. The result has been that those employers tend to use their levy funds to upskill or reskill existing employees—although, as I have mentioned before, even that may use up only a limited proportion of their available levy funds. That creates yet another incentive for them to recast what training they need in the form of apprenticeships where they can.

So, I strongly support the amendment. My question is, where are those apprenticeships going to come from and what impact are they going to have on the ability of employers to focus on reskilling and upskilling at the same time? I suspect that a significant number of apprenticeships for young people are likely to come from SMEs, yet many are put off from offering apprenticeships because of the bureaucracy involved and a lack of time and resources to manage the process, despite the generous incentives available. I encourage the Government to look at offering specific, more generous incentives to SMEs to take on young people aged 25 or under for level 2 or 3 apprenticeships, including help with their administration and simplified arrangements for fee-paying employers to transfer part of their levy funds to SMEs for this specific purpose. There are such arrangements but they do not seem to be as effective as one might hope.

I always fail to understand why there cannot be more specific support and encouragement for apprenticeship training agencies to run apprenticeship programmes for SMEs, perhaps as a specific element of the local skills improvement plan for a particular area. That would seem a useful way in which an LSIP could contribute to the take-up of apprenticeships in its area, specifically among SMEs and new entrants to the job market, and maybe with a slight slightly broader applicability of the apprenticeship levy than it currently has.

I very much support the provisions in Amendment 80 putting the lifetime skills guarantee on a statutory footing. One of these days, I look forward to hearing an explanation of why the skills guarantee is “lifetime” and the learning entitlement is “lifelong” and what the difference may be; it would make many lives much easier if we just used one term. I hope the Government will accept the amendment of the noble and learned Lord, Lord Clarke, in particular and explain how they want to achieve a better balance between younger apprenticeships and level 4 and 5 apprenticeships, for example.

[Baroness Greengross (CB) [V]]

My Lords, it is an honour to speak in this group with many noble Lords who have made an enormous and outstanding contribution to the education system in this country. I support both Amendment 76, tabled by the noble and learned Lord, Lord Clarke of Nottingham, and Amendment 80, tabled by the noble Lord, Lord Watson of Invergowrie. Both amendments seek to provide skills training for those who do not hold level 3 qualifications, and I thank both noble Lords for tabling these important amendments to the Bill, which I believe really enhance it.

The amendment of the noble and learned Lord, Lord Clarke, would ensure that a person of any age has the right to free education on an approved course up to level 3, supplied by an approved provider, if they have not already studied at that level. The amendment of the noble Lord, Lord Watson, has a similar intention but would provide this training only to people between the age of 19 and the state pension age. Given the number of people who continue to work over the state pension age, and given that the Equality Act 2010 makes age discrimination illegal, I prefer the wording of the amendment of the noble and learned Lord, Lord Clarke. I also support the work of the noble Lord, Lord Baker, on level 4 qualifications.

The issue of skills training at all ages is important in our changing economy. It is estimated that 35% of current jobs are at high risk of being replaced by automation by 2040, if not earlier. This impacts on workers of all ages, but we must understand that for people who have been made redundant the situation is very difficult. According to figures from the Centre for Ageing Better, over 1 million people between the age of 50 and state pension age are not working but would really like to. One in four men and one in three women in that age group have been out of work for over five years. Many older workers find it very difficult to participate in skills training, and much more so if they left school without gaining qualifications. We must do all that we can to support older workers to participate in training.

The other component of the amendment of the noble and learned Lord, Lord Clarke, is that an employer receiving apprenticeship funding shall spend at least two-thirds of that funding on people who begin apprenticeships at level 2 and 3 before the age of 25. This specifically encourages the training of younger workers at a time when we know that the youth unemployment rate is 13.2%, compared with 4.7% for the whole population. Many young people struggle in our school system and, at the age of 16 and 17, may not yet be in the right mindset to complete their level 2 or 3 qualifications. A few years later, when doing an apprenticeship in an area where they are interested and see the potential to progress their career, is a much better time to gain the qualifications that they were unable to get at school.

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[Lord Patel (CB) [V]]

My Lords, I am delighted to follow the noble Lord, Lord Baker of Dorking, and I support his amendment. If he has to bring it back, I will support it and join him in the Lobby.

I will speak to Amendments 83 and 84, which would ensure that there is always an up to date careers advice strategy in England. I referred to this in my short Second Reading speech, saying that simply offering more further education and training courses alone, although clearly important, will not deliver on the levelling-up agenda and improve the UK’s skills picture. I made the point that advice and guidance on how to access courses and the pathways into certain careers are central to the Government’s ambitions and to the ambitions of the Bill.

In 2017, the Government published a careers strategy, which acknowledged that careers advice had for some time been unevenly distributed across the country, hindering opportunities for some groups to gain insights into different career options. Its aim was to make Britain a fairer place and promote social mobility by ensuring that everyone, regardless of their background, has the opportunity to build a rewarding career. It also promised to assess the breadth and effectiveness of current careers provision in schools and colleges on STEM subjects, and test new approaches if necessary.

The strategy provided a central role for the Careers & Enterprise Company—CEC—tasking it with co-ordinating support for schools and colleges across all the Gatsby benchmarks. It asked schools and colleges to meet the standards set out by the eight Gatsby benchmarks, and introduced the National Careers Service. Assessments of the impact of the careers strategy to date have highlighted the progress made in terms of careers provision in schools and colleges in England as a result of the strategy, and the impact it has had on young people.

A recent report published by the Careers & Enterprise Company, which looked at the impact of schools following the Gatsby benchmarks on post-16 destinations, found that there is a positive relationship between schools using Gatsby benchmarks and where young people end up post 16. The report asserts that improvements made in relation to the Gatsby benchmarks have led to fewer young people becoming NEET—I agree with the noble and learned Lord, Lord Clarke, that that is a terrible acronym—saving the Government about £60 million a year in lifetime NEET costs alone.

A different report, by EngineeringUK and seven other STEM and careers organisations, and the Royal Academy of Engineering report, which I mentioned at Second Reading, also highlighted the importance of good careers provision in schools and colleges in England in the drive to encourage more and more diverse groups of young people to choose a career in STEM, and in particular engineering. For example, it praised the positive impact that careers hubs have had on STEM careers provision in schools and colleges. I will come back to that point in relation to Amendment 84. However, the report from the Royal Academy of Engineering also highlights some of the challenges that still persist. It shows that Covid-19 has had a profound impact on how schools can—and do—deliver employer engagement, for example, and it draws attention to the capacity and funding issues hampering the ambition to provide insights into the kinds of careers on offer in the STEM sector to all young people, rather than a select few.

For the Government to succeed in making the UK a science superpower, to achieve net zero and to experience economic success, they need young people and adults to know what careers are on offer and how to get there. As it stands, many pupils leave school unaware of the exciting career opportunities available to them, for example, in the STEM sector. A misunderstanding of STEM professions among many young people and a lack of awareness of the pathways that can be taken into STEM careers mean that many pupils, particularly those from disadvantaged backgrounds, still do not visualise themselves being successful in these roles. In order for the Bill to succeed, we need to sort out the loans system, and make sure that the lifetime skills guarantee is truly that—but we also need to make sure that young people and adults have access to information, advice and guidance and are inspired to go into the careers that this country needs.

The 2017 careers strategy came to an end in 2020 and there is as yet nothing to replace it. Although the White Paper implies that the Government will continue with this strategy, I would like to know from the Minister what the plans are. My amendment aims to ensure that careers provision will continue to be considered an important piece of the education and skills puzzle, and will have the status and funding it requires to succeed. The noble Lord, Lord Baker, also mentioned schools and, although my amendment does not include schools or secondary education for skills advice, I think that should be included.

I will now move on very briefly to Amendment 84, which follows on from Amendment 83. The proposed new clause looks to ensure that all further education providers in England—and, through that, by default, all secondary education providers—will be able to access the support, training and guidance that careers hubs can offer. As defined on the CEC website, a careers hub is a group of between 20 and 40 secondary schools and colleges in a dedicated area which work together to deliver the Gatsby benchmarks. Collaborating with business partners, the public, education and voluntary sectors, they help deliver the Gatsby benchmarks and improve careers outcomes for young people.

As I mentioned in my earlier contribution, career hubs play a pivotal role in the careers provision landscape. Schools and colleges that are part of a careers hub generally perform better in the Gatsby benchmarks. They also fare better on certain aspects of STEM careers provision than those not in the hub. For example, among schools and colleges in careers hubs recently surveyed by EngineeringUK, 80% said their pupils received at least one STEM employer encounter every year, compared with 53% among schools and colleges not in the careers hubs. The Skills for Jobs White Paper, which predates the Bill, made a commitment to continue with the rollout of careers hubs in England. However, the White Paper was much less clear on timelines and the extent to which the network will be expanded. The Bill itself makes no mention of careers hubs, so I ask the Minister: is it the Government’s intention to continue with the careers hubs, and will they support the CEC in rolling out this programme? Will it be rolled out by the end of 2022?

[Lord Aberdare (CB)]

My Lords, I have added my name to Amendments 83 and 84 in this group, from the noble Lord, Lord Patel, and it is a pleasure to follow him. I will also speak in support of Amendment 78, in the name of the noble Lord, Lord Storey, and Amendment 82, in the name of the noble Lord, Lord Baker. My approach tends to be the opposite of that of the noble Lord, Lord Baker; I tend to start with a written speech and then have to try to update it in line with what people have said before—which sometimes results in a greater degree of incoherence than might otherwise have been the case.

A comprehensive, well-informed and properly funded system of careers information, advice and guidance for people of all ages and stages should be an integral part of our education and skills system. Such a system needs to be based around professional advisers who, firstly, have a very good awareness and information about the opportunities and skills available in their area and, therefore, should be properly engaged in the local skills improvement plan process; and, secondly, are capable of giving personal advice to the individuals they work with. That means, firstly, being able to understand the interests and abilities of those individuals and, secondly—by no means the lesser part—understanding the different pathways and approaches to pursing those interests and achieving the aims that the individual seeks.

The Bill is designed to create the framework for the post-16 education system going forward. As the noble Lord, Lord Addington, said, it would seem extraordinary if such a framework made no reference to careers guidance. The four amendments in this group seek to ensure that the proposed new arrangements under the Bill include essential provisions relating to careers guidance. The one I would perhaps add to those—or at least to the planned guidance on LSIPs—is a requirement for careers guidance professionals to be fully involved in the development of local skills improvement plans, along with the other partner organisations.

Amendment 83 would introduce a duty to publish a careers strategy for England, with updates every three years. As my noble friend said earlier, the careers strategy launched in 2017, which expired at the end of last year, has played an important part in improving the quality of careers guidance over recent years, largely through the efforts of the Careers & Enterprise Company, the National Careers Service and other bodies, including LEPs, careers hubs and the Career Development Institute, representing careers professionals. One of the key elements of that was including a requirement for employer engagement and workplace experiences, which again links to the Bill’s aims.

Careers guidance nationally is now less patchy than it was, and schools are making steady progress towards achieving the eight Gatsby benchmarks of good career guidance. I hope the Minister will indicate in response how that momentum will be maintained, with a careers strategy that properly integrates national and local needs and provides the resources and professional support to schools and colleges to deliver careers guidance in line with those needs.

Local careers hubs have been a central feature of the strategy and currently cover 45% of secondary schools and colleges in England, with a focus on areas of disadvantage. As the noble Lord, Lord Patel, mentioned, they have proved highly effective in careers education delivery, with results better than those in areas that do not have careers hubs, and should be available to all education providers across England, as required by Amendment 84.

Other aims of a new careers strategy might include ensuring lifelong availability of personal, face-to-face, professional careers guidance for everyone who needs it; boosting the pipeline of qualified careers development professionals to provide that personal guidance—the Government have put resource into the National Careers Service, but other professional advisers need funding as well; increasing co-operation between the Careers & Enterprise Company and the National Careers Service—I would be interested to hear when we are going to hear some of the results of the work that Sir John Holman is doing in that area; and including the role of careers guidance in initial teacher training, so that new teachers are fully aware of the importance of that role.

Of course, the strategy would also need to ensure that there is adequate funding so that schools and colleges can access the support they need to deliver high-quality careers guidance. A while ago it was the responsibility of schools—it still is—but they do not have all the resources or skills they need to deliver it.

Amendment 78 would require Ofsted to take into account the careers advice provided by FE colleges in conducting its inspections, and further would make it impossible for a college to receive a good or outstanding rating unless its careers advice were also rated good or outstanding. This would provide an important incentive for colleges to give proper focus to their careers guidance efforts. I hope the Minister will either accept it or at least explain what other mechanisms the Government might use to ensure that careers guidance in colleges meets required standards.

Finally, Amendment 82 from the noble Lord, Lord Baker, provides another vital brick in the construction of a strong careers guidance system. As he said, the Baker clause inserted into the Technical and Further Education Act 2017 is honoured more in the breach than the observance, so Amendment 82 would make it a statutory duty for secondary schools to provide such access and is more specific about the precise form it should take.

The great majority of apprentices I encounter still have not learned about apprenticeship opportunities from their schools. This amendment could make a real difference in making more young people aware of the technical education, training and employment opportunities available to them, including apprenticeships, and I strongly support it. I look forward to hearing from the Minister how the Government will ensure that high-quality career guidance will be an integral part of the system created by the Bill.

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I think that Kickstart is not over yet, but it needs to be reviewed. I hope the Bill and this probing amendment might make us think again about how it can be improved, expanded and give real opportunities.

[Lord Aberdare (CB)]

My Lords, I am a believer in the value of the Kickstart scheme and would like to see it extended in the manner suggested by Amendment 87, in the names of the noble Lords, Lord Storey—Lord Storey-cum-Addington—and Lord Shipley, following a review of its operation and experience to date.

My own former employability training business was involved some years ago in the delivery of the Labour Government’s Future Jobs Fund, which, like Kickstart, enabled employers to take on young people for six months, with their salary paid by the Government. Many of the young people involved had never worked before and faced significant challenges in entering the job market, including lack of work-readiness and employability skills, poor educational attainment, lack of funds for travel or even suitable clothing, chaotic lifestyles, lack of aspiration, substance abuse, and records of offending and imprisonment. A period of six months’ employment, with employers willing to make initial allowances for their circumstances and much personal support from the organisations delivering the programme—including Barnardo’s and Nacro, by which we were contracted—was enough for many of them to acquire the skills and behaviours needed to become reliable and useful employees, often with those same employers they had been with for six months. This is not a low-cost approach and not for everyone, but I believe it is an effective way of enabling many young people in these specific circumstances to make a successful transition into work.

Kickstart has got off to a rather bumpy start, as we have heard from other noble Lords, with delays and difficulties both in employers being accepted on to the programme—initially through the gateway process, which has fortunately been removed, but there are still quite a few hurdles to get over—and, more particularly, in recruiting candidates through the rules of the Jobcentre Plus scheme. But I believe it offers the right approach for the young people in the target group I have described. I hope the Minister can tell us what plans the Government have to review the scheme so far and to consider whether, and in what form, it might be further extended to perhaps meet the specific needs of the most challenging young people within the overall skills system created by the Bill.

[Lord Lucas (Con) [V]]

My Lords, I too am a fan of Kickstart, and I hope that the Government will consolidate and build on it. A review, as proposed in this amendment, seems a timely suggestion. I support a lot of what the noble Baroness, Lady Fox of Buckley, said, and I would add only two emphases. First, there are certainly some occasions when a Kickstart six-month placement ought to be combined with a course of training. For instance, if we employed Kickstarters to do environmental work, it would not do them much good if they had not achieved their chainsaw certification and other necessary qualifications to enable them to continue in the industry. Sometimes the Kickstart placement ought to be bundled in with training, and that ought to be made easy.

Secondly, £1,500 for looking after a Kickstarter is really not much. You have to have spare employee time substantially beyond that value to make good use of a Kickstarter and to give them a really good experience. I hope the Government will review people’s experience on that front and consider what it would take to really recompense employers—particularly small employers, who often do not have a lot of spare capacity—for the effort they are making, day to day, looking after a Kickstarter.