Skills for Jobs White Paper

Debate between Lord Storey and Lord Duncan of Springbank

Tuesday 26th January 2021 Lords Chamber

[The Deputy Speaker (Lord Duncan of Springbank) (Con)]

We lost the last part of those remarks, but I will call the next speaker, the noble Lord, Lord Storey.

[Lord Storey (LD) [V]]

I very much welcome the Statement and the Skills for Jobs White Paper. As the noble Lord, Lord Bassam, said, we have seen further education become almost the Cinderella of the education service, and it is really welcome that at long last we are now realising its importance in terms of capital investment in plant and sites and revenue investment. However, on the latter, I ask the Minister to consider the point made by Sir Ian Diamond’s commission: that colleges need three-year grant settlements to give them room to develop and that one year is not sufficient.

As a country, we face a whole host of challenges to do with training and skills—not least the climate emergency, the effects of Brexit and changes in the world of work—and of course a demographic time bomb is ticking away, with demand outstripping the supply of young people entering the labour market. We have already seen this in sections of our economy—the construction industry, for example. It is a sobering thought that by 2030 the number of people aged 65 and above is projected to increase by 42%, while the number of those aged 14 to 64 is forecast to grow by only 3%. It is clear that we need to be nimble in how we respond to skills shortages and skills development, and not get caught up in structures.

The ambition to open funding and finance to everyone throughout their lives is welcome. Many earners face additional barriers to accessing education, so we need to ensure that finance is available to meet those demands. Why are these loans are not being introduced until 2025—and why loans, not grants? We know that adults are more averse to taking on debt. We should review the limits on accessing education and training while in receipt of universal credit, with the principle that individuals should not be penalised for engaging in education and training.

The careers service, careers advice, careers education and careers guidance should be of high quality and given face to face, not micromanaged from the top. The proposed careers hubs have to have the support and expertise that is much needed. Can the Government ensure that we look also at building the skills that are needed for the green economy? They have focused a lot of support on people who do not have level 3 qualifications, but what about those who have not completed level 2? Do the Government not accept that they, too, will need support and help?

Finally, I am attracted to the suggestion by the Association of Colleges that the Government should form a cross-departmental ministerial task force to oversee a new government 10-year strategy for education and skills to drive industrial strategy and other priorities, working with employers and other key stakeholders.