Start-up Loans

Robert Halfon Excerpts

Wednesday 20th November 2013 Commons Chamber

[Matthew Hancock]

I encourage links between colleges and local enterprise partnerships, which can be strengthened a great deal by their governors and board members sitting on each other’s boards. There are schools around the country that bring in businesses and entrepreneurs, not only to talk to students, for example through the brilliant Speakers for Schools programme, but to help design the curriculum and motivate children to improve their performance in academic subjects. That is a great success when it is done well and I encourage more schools to do it.

[Robert Halfon (Harlow) (Con)]

Is my hon. Friend aware that Harlow has had the highest business growth in the United Kingdom according to a BBC and Experian survey? Will he congratulate Danielle Field, a young mother who from nothing set up an apprentice hairdressing academy with her partner thanks to a James Caan loan? That has been a tremendous success. Is this scheme not an example of the Government helping the lowest-paid to get back into work?

[Matthew Hancock]

I pay tribute to Danielle Field. I also pay tribute to my hon. Friend. I did not know that Harlow was the best place in the UK to start a business according to the statistics. That shows just how brilliant Harlow is, almost all of which is down to its brilliant MP.

Oral Answers to Questions

Robert Halfon Excerpts

Thursday 24th October 2013 Commons Chamber

[Vince Cable]

I thank the hon. Gentleman for his positive comments. He is absolutely right: for every £1 the UK Green Investment Bank puts in, something in the order of £4 of private funding goes in parallel with it. I agree that if we are going to get long-term investment in renewable energy there has to be stability in policy.

[Robert Halfon (Harlow) (Con)]

7. What changes he is planning to make to the national minimum wage.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

I am asking the Low Pay Commission to consider what conditions would be needed to allow the minimum wage to rise in the future by more than current conditions allow and without damaging employment.

[Robert Halfon]

As the Government are supporting hard-working people, does my right hon. Friend agree that we should help lower earners more by raising the minimum wage—by adding regional minimum wage top-ups, increasing the threshold for national insurance or taking people who get the minimum wage out of tax altogether?

[Vince Cable]

I commend the hon. Gentleman for the work he has done on low pay. Indeed, I think he is a member of the Prospect union and has campaigned for the work force in his constituency. I think that the best way forward is the one that we have chosen: lifting the personal allowance, which has so far taken 2.7 million people out of tax. As a consequence, almost 40% of adult minimum wage workers have seen real increases in their take-home pay since 2010.

Al-Madinah Free School

Robert Halfon Excerpts

Thursday 17th October 2013 Commons Chamber

[Mr Laws]

My hon. Friend makes a telling point about the educational challenges for this country and about the need to focus on educational failure from wherever it comes. It speaks volumes about the Labour party that it should choose to have an urgent question on this one individual school while across the country there are hundreds of other schools facing similar challenges in which it seems to have no equivalent interest.

[Robert Halfon (Harlow) (Con)]

Does my right hon. Friend agree that, despite the failings of this particular school, free schools, university technical schools and the pupil premium are transforming education in our country and that we should not use the failure of one school to become the enemy of choice for parents who want to set up their own schools?

[Mr Laws]

My hon. Friend is exactly right. The Under-Secretary of State for Education, my hon. Friend the Member for South West Norfolk (Elizabeth Truss), will publish information showing the progress made across the country in last year’s exam results—progress that, thanks to our reforms and to Ofqual, we can be assured is real progress and not simply inflated progress.

Secondary Schools (Accountability)

Robert Halfon Excerpts

Monday 14th October 2013 Commons Chamber

[Mr Laws]

Obviously we will be considering educational destinations, apprenticeships, and employment destinations with training. We need to ensure that we can collect all the information properly so that when schools receive it on their websites they recognise it, regard it as fair, and regard the Government as having captured accurately data which currently we do not possess in a single place, but believe that we can bring together.

[Robert Halfon (Harlow) (Con)]

Is my right hon. Friend aware that under the leadership of Helena Mills, Burnt Mill academy in Harlow has this year achieved 76% A to C grades in maths and English at GCSE, compared with a figure of just 27% a few years ago, by carrying out many of the measures that he set out and having a relentless focus on maths and English? Will he look at such schools to see examples of good practice and how the new accountability system works?

[Mr Laws]

I am delighted to hear from my hon. Friend about the success of his local school. We are always looking at what we can learn from examples of schools that do so fantastically well, and we hope that the new accountability regime will be welcomed by his local school.

Oral Answers to Questions

Robert Halfon Excerpts

Monday 9th September 2013 Commons Chamber

[Elizabeth Truss]

I congratulate the students and teachers at the school, and across Southend, on their excellent results. I hope that some of those students will be the upwardly mobile political giants that my hon. Friend wants in the House of Commons in future.

[Robert Halfon (Harlow) (Con)]

19. Does my hon. Friend agree that exam results would improve even more in Essex and across the country if further education college students who were eligible for free school meals, got them?

[Elizabeth Truss]

We are rightly ensuring that all students who do not achieve a C in English and maths at GCSE continue to study them at FE colleges and beyond, so that they get the results that they need for their future careers.

Oral Answers to Questions

Robert Halfon Excerpts

Monday 24th June 2013 Commons Chamber

[Mr Laws]

I am sure that either the Secretary of State or I would be delighted to meet a delegation from my hon. Friend’s constituency. Both the Secretary of State and I have been to his constituency a number of times, and I am sure that we will do so again.

[Robert Halfon (Harlow) (Con)]

Is my hon. Friend aware that 350 secondary school students in Harlow are eligible for free school meals, but because they go to Harlow FE college, they do not get them, whereas the kids who go to the one sixth-form school in the constituency do get them? Please will my hon. Friend remedy that anomaly and ensure that free school meals are available for all eligible students?

Vocational Education

Robert Halfon Excerpts

Tuesday 4th June 2013 Westminster Hall

[Robert Halfon (Harlow) (Con)]

Thank you, Mr Gray, for calling me to speak. It is a pleasure to serve under your chairmanship today.

I congratulate the hon. Member for Scunthorpe (Nic Dakin) on securing the debate. He is a complete expert on this issue, given his background, and I have been pleased to campaign with him on a subject that I will touch on later.

Part of the problem with debates on vocational education is that too often it is just seen in terms of its utilitarian value to the economy. We need to change that approach and see vocational education as a form of social justice. If vocational education is just subject to economic efficiency, it will always be subject to the whims of current economic policy. Vocational education should be integral to the national curriculum and the well-being of our young people. It provides a ladder away from poverty for the most disadvantaged.

The question we have to ask is why—despite all the initiatives begun under the previous Government—did youth unemployment rise to 1 million? Although this Government have stemmed the tide, youth unemployment remains a huge problem. To consider the issue holistically, we need a cradle-to-grave cultural change in vocational education.

Problems with youth unemployment do not just start when young people enter the job market; they start at home, with disadvantaged families. The problems carry on into our primary schools—such that one in five of our children still leave primary school unable to read, write or add up—and they continue into secondary school.

What can we do to change that situation? First, we must transform the reputation of skills and apprenticeships, which will require a sea change in our culture. Secondly, we must transform our vocational infrastructure. Thirdly, if—as I have argued—vocational education is about social justice, we need to ensure that resources are directed at the most disadvantaged. That means not only providing the ladders of opportunity, which the hon. Member for Scunthorpe mentioned, for those who want to get on, but reaching those who will not even take the first step.

For far too long we have talked about university, which has led to vocational education falling into neglect. Vocational education came to be seen as a second-class option, only suitable for those who did not want to do A-levels, rather than being seen—as it should be—as equal to university. If we are serious about tackling youth unemployment, we must ensure there is a parity of esteem between vocational education and traditional academia.

That is why I have been calling, since I have been in this House, for the introduction of a royal society for apprenticeships, which would work in a similar way to the Royal College of Surgeons and other such bodies. A royal society would dramatically increase the prestige and culture of apprenticeships, marking a sea change in how apprenticeships are viewed.

We also need to expand the range of jobs that vocational education can offer. Traditionally, people have assumed that if someone does an apprenticeship that means they must become a builder or a plumber. That assumption is wrong, which is why I took on Parliament’s first apprentice three years ago. I am now on my third, Aaron Farrell, who works in my office four days a week as well as studying for a level 3 apprenticeship in business administration. This experience has been good for Aaron and for my office, and I am pleased that other Members are beginning to do the same. Also, I pay tribute to the senior Clerk of the House of Commons for establishing the Clerk’s apprentices scheme. It is invaluable for a profession that is often seen as being closed off to those who are from a disadvantaged background.

We also need to make teachers aware of the benefits of apprenticeships. Edge has already been mentioned and according to that organisation two thirds of teachers regard their knowledge of apprenticeships as poor, and just one in four teachers recommend apprenticeships over higher education. Sadly, 23% of A-level pupils still say their school is far more concerned with “sending students to university”. That contrasts sharply with parents’ wishes. A clear majority of parents—78%—would support their child if they chose to take the vocational qualification route. Research from the Department for Business, Innovation and Skills shows that people who have a higher apprenticeship are 25% more employable than university graduates and that on average those with an apprenticeship qualification earn over £100,000 more throughout their lifetime than other employees.

I am glad that the Government are taking steps to address the problem of prestige and I welcome the technical baccalaureate, according to which vocational courses should have the same rigour and prestige as A-levels. However, we must go further. We need to encourage teachers to find out more about the benefits of apprenticeships and to promote those benefits directly to young people and their parents.

That can be done in simple but effective ways. For example, Harlow college, which I must remind the House is the No. 1 college in England according to the Department for Education, has a fantastic record of offering vocational education for young people and it recently held a very successful apprenticeship fair. Consequently, young people can make well-informed choices and apprenticeships can get the fair hearing that they deserve. A royal society for apprenticeships would offer rewards to apprentices in the same way that university students get graduation ceremonies.

However, this process is not all about changing the reputation of apprenticeships. We also need to provide the infrastructure to make it easier for businesses to take on people to gain vocational skills. To be fair to the Government, they have made good progress on that. I disagree with the hon. Member for Scunthorpe, who believes that the Government are only interested in academia. The Government have shown that they support vocational education by investing £1.5 billion in the sector in this financial year. As we know, since 2010 the number of apprenticeships in the country has increased by hundreds of thousands, and just last year in my constituency the number of apprenticeships increased by a phenomenal 78%.

[Gordon Birtwistle (Burnley) (LD)]

Does my hon. Friend agree that one of the problems with further education for young people is the lack of proper careers advice for them at the ages of 11, 12 and 13? That is the desperate situation that we have—young people are not given any professional careers advice, or they are only given very minimal advice, when they reach 12 or 13. That is the critical age, when such advice should be given.

[Robert Halfon]

I agree with my hon. Friend, but this issue is not just about careers advice. As I have said, children in school also need to be encouraged to do vocational education, which at the moment they are not.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

Now that careers guidance has been placed inside schools, does the hon. Gentleman believe that schools necessarily have an in-built producer interest to say to young people that their best interests are served by staying on at school because the money will follow the pupil, and that what we are seeing is exactly the fears about the lack of clear pathways into vocational education being realised?

[Robert Halfon]

Unless I misunderstand the hon. Gentleman, as I understand it the school leaving age has been extended to 18 anyway, which was something the last Government did. Given that, I think that if we change the culture in our country, schools will encourage their pupils to take vocational education over university. As I say, we need to change the culture and emphasise to pupils that the vocational qualifications that they will be encouraged to consider will be as prestigious as taking university degrees. On that basis, we should not forget that in this Parliament the Government are setting up 24 university technical colleges—in essence, pre-apprentice schools—and I am incredibly proud that Harlow is getting one, which will open next year. However, we must not settle; we should be aiming to set up at least a hundred such colleges.

We should also be encouraging employers to take on more apprentices. One major hurdle that employers face is the lack of basic literacy and numeracy skills among young people, and we must look at that issue. Recent figures show that 17% of 16 to 19- year-olds are functionally illiterate and that 22% of them are innumerate. It is essential that apprenticeships place a greater emphasis on these basic skills, so that young people are ready to join the work force.

As a country we must create the right climate to encourage businesses to hire apprentices. We have made good progress with this, creating the apprenticeship grant for employers, which gives employers who employ fewer than 1,000 people a grant worth £1,500. It is currently available to employers until 31 December 2013. We will know that the grant is successful if it boosts the uptake of apprenticeship programmes. A new charity called Access is encouraging young people, offering 10,000 youngsters work experience programmes. We need to look at and support such schemes.

Subsidising businesses to take on apprentices works. Essex county council has a groundbreaking apprentice scheme and its employability and skills unit saw apprenticeship starts increase by 87% in 2011, compared with a national average of 21%. The council provides a wage subsidy of up to 70% for businesses taking on new or additional apprentices. If possible, I would like that to be replicated across the country. I look forward to the successes in Essex, led by Councillor Ray Gooding.

I also welcome the idea of a skills tax credit, which would give employers a stronger incentive to hire an apprentice and would create a stronger relationship between the employer and the apprentice. That was recommended in the Richard review of apprenticeships last November. I urge the Government to consider it.

Parliament should lead the way, with clear apprenticeship career paths in Departments. The Minister knows, because I have spoken to him about this before, that I believe that all Departments should replicate the Department for Work and Pensions’ new model procurement contract, which encourages, but does not compel, their contractors to hire apprentices as at least 5% of the work force. That has resulted in the employment of nearly 2,000 extra apprentices who deliver goods and services to the DWP. It is revenue-neutral and should be extended across Whitehall.

As well as changes to incentivise employers to take on apprentices, there should be changes to encourage disadvantaged young people to participate in vocational education. There are currently 900,000 people aged 16 to 24 in England not in education, employment or training. This figure has increased by nearly 50% over the past 10 years and accounts for 14.5% of all young people in England.

We know that 90% of young people who complete their apprenticeship go on to further employment, but some obstacles actively discourage young people from vocational education, particularly if they are from disadvantaged backgrounds. For example, young people at further education colleges are not entitled to free school meals, even if they meet the criteria for them, whereas their peers at sixth form do receive them. The civil servants have said to Ministers that it is too expensive and that schools do not get direct funding for it, even though they are required to provide it by law. The Association of Colleges estimates the cost of extending the right to free meals to college students at around £38 million. I believe that this money can be found through efficiencies. If we are to support vocational education, we cannot say to students who attend FE colleges, which are primarily focused on vocational education, that they are not allowed to have a free school meal even if they qualify for one. That injustice cannot continue.

[Nic Dakin]

The hon. Gentleman makes an excellent point. He probably recognises, as I do, that FE colleges take a higher proportion of people from disadvantaged backgrounds than sixth forms in schools and that they are also a large provider of education to young people aged 16 to 18.

[Robert Halfon]

I am grateful to the hon. Gentleman, with whom I am pleased to have worked on this issue. We have only one sixth-form school in Harlow and the rest of the children go to a sixth-form college, where disadvantaged students are denied free school meals. That situation is untenable.

The Association of Colleges found that 79% of colleges thought that free school meals for 16 to 18-year-olds would encourage them to stay on in education. The principal of my local college says, “If I can get them through the door and we can give them a good meal, I know that I can turn their lives around.”

I would like to follow the lead of Essex council, which has an apprenticeship scheme that primarily helps disadvantaged young people, particularly single mothers. I was pleased that the Government replaced the education maintenance allowance with a bursary for 16 to 19-year-olds. That is good news, as it provides targeted support for those who need it most, but it is important that the Minister assesses what impact it is having and whether it is encouraging participation. The terms of the bursary must also be looked at. It should not operate in a similar way to the House of Lords, where you get paid just for turning up, but should reward students for their hard work, for example, if they meet or exceed their academic targets. It is right that we reward hard work, and doing so would proactively reward those who are in the most need and who are doing the right thing.

At the beginning of my speech, I said that improving apprenticeships is not just about economic efficiency, but is a necessary consideration. In 2012, youth unemployment cost the Treasury £4.8 billion. That is more than the total budget for 16 to 19-year-olds in England. According to a study by the Association of Chief Executives of Voluntary Organisations and the University of Bristol, the net present value of the cost to the Treasury, even looking only a decade ahead, is approximately £28 billion. So it is essential that in these tough economic times we take action quickly. But we must not forget that this is about social justice. Young people are our best defence against poverty. If we give them opportunities, skills and training, we get them off the street, give them stability and a real chance of a job in the future. The Government, in many ways, are taking the right decisions, but we must go further and faster. We need a conveyor belt of apprentices changing the culture, changing our schools, and changing how vocational education is perceived.

--- Later in debate ---

[Tristram Hunt]

I am delighted to agree with the hon. Gentleman. He is absolutely right. What we are interested in is a cast-iron commitment to academic and vocational parity, because although our focus in government on raising school standards and academic rigour, and on expanding our outstanding, world-beating higher education sector, left the education system in far better shape than we inherited, as my hon. Friend the Member for Scunthorpe said, we could have done more on vocational education. That is why the Labour party has placed vocational education not just at the heart of our education agenda but at the heart of our offer for the country in 2015, and it is why the leader of the Labour party made his call for focus on that forgotten 50% the heart of his recent party conference speech.

We disagree on the way the Government have pursued vocational education, however. Since they came to power, the Government have undermined careers guidance, which is a big issue for vocational routes. The recent report on that by the Select Committee on Education was absolutely damning. The Government have scrapped work experience and downgraded successful vocational qualifications such as the engineering diploma.

The Government have also made some bad mistakes on apprentices. When they came into power, they simply moved many of those on Train to Gain to apprenticeships. They were more interested in quantity than quality. We would like to think that there has been some rowing back on that recently, and we welcome the Richard review and all the hard work that the Minister is doing to try to enlighten the Secretary of State for Education on that, and we fully support him.

The Minister may now have persuaded his colleagues to hurry out their own version of a tech bacc, yet the difference between the Government’s technical baccalaureate and the Labour party’s original ur-version is that theirs is a performance measure whereas our ambition is for it to be a qualification that we want people to achieve. If some people are going to achieve it, other people are going to fail. If we want quality, it means some will succeed and some will not succeed. We want differentiation on the quality achieved.

As part of that, we need to raise the profile and status of vocational education to create a dual-track system that, as the hon. Member for Eastbourne suggested, genuinely gives no preference to either route. On vocational standards, that means having a clear line of sight both to work and to advanced, further or higher education, which means creating flexible and permeable pathways as a matter of importance. After all, young people are rightly wary of narrowing their options, and the whole ethos of a baccalaureate is to have a sense of broadness. Many see the option of gaining a degree or a gold-standard vocational qualification as part of their natural progression, irrespective of the route they choose at 18.

Furthermore, creating a genuine dual-track system also relies heavily on a deep-seated, collaborative ethos between institutions in delivering education and training. The countries that have enjoyed success in raising standards, such as Austria, Finland and Germany, all benefit from a system that has not only great career guidance but clearly defined roles for key stakeholders, with a great amount of time divested to building and maintaining institutional relationships.

If there is another criticism of the Government’s education policy, it is whether we are seeing the right degree of collaboration between atomistic, competitive schools, which are raising standards in certain situations but are not necessarily providing the kind of collaborative ethos that a local skills economy might need. That is some way from the institutional culture that the Government seem intent on inculcating with their slightly high-handed approach to the expertise of teachers and professionals, the lack of business involvement in delivering training and their focus on competition as the only measure of improving performance. If we want a proper industrial strategy, as the Secretary of State for Business, Innovation and Skills keeps urging, we need smarter local and regional collaboration.

Indeed, we only have to look at the shambolic execution of the Government’s careers guidance policy for a textbook display of encouraging perverse institutional incentives. In a tough funding climate, it will be a brave and outstanding school that advises its pupils not to stay on. In a recent conference in Westminster, we saw a very good example of that: a leading academy school that is part of a leading chain said that it had brought in outside careers guidance, exactly as it should be doing, but that it told the person coming in to give the careers guidance that they were not allowed to advise pupils to go to the college up the road. With in-house careers guidance, there is a producer interest in keeping kids along an easily understandable gold-path academic route, as it were, of GCSEs, A-level and university, rather than thinking far more creatively, which requires trained professionals with knowledge of local situations.

Perhaps the biggest problem we face in delivering a vocational education system for the future is the perverse and pervasive disconnect between the education system and local labour markets. All too often, skills policy is isolated from industrial and economic policy. That is why Labour’s technical baccalaureate would directly involve businesses in accrediting the quality of courses, and it is also why our tech bacc, unlike the Government’s tech bacc, would have a work experience requirement. Businesses have told our taskforce, the Husbands review, that that is absolutely crucial, which is why we would ensure that all vocational teachers spend time every year with local businesses and industry to keep their skills and experience fresh.

Those three measures would bring to education and training institutions a clear and realistic understanding of local labour markets. Closing the gap between employers and educators is vital if we are to develop a dual-track approach.

Of course, raising educational standards in vocational training does not mean that we weaken our focus on core subjects and on improving rigour. In vocational or academic routes, there should be no false division between theoretical knowledge in practical subjects. There is an interesting discussion to be had on where the journey begins for opening up pathways at 14 or 16. What have we learnt from the university technical colleges on the 14-to-19 parameter, rather than up to 16? Was the Wolf report 100% correct in saying that people should continue with the same totality of focus up to 16?

Fundamental to the Labour party’s education policy is a clear commitment to teaching English and maths to 18, irrespective of route, because although many further education teachers do an outstanding job, often in challenging circumstances—we have heard about the differences in funding and free school meals—we need to raise teaching standards in FE colleges in English and maths. Of the 40% of pupils who do not get a level 2 qualification at 16, only 20% go on to acquire one at 19 through the FE system. That needs to change if we want to upskill our country. The Minister should once again take his cue from Labour’s policy review, which is open and available to him, and from our one nation skills commission’s interim report, and commit to requiring all FE teachers to have at least a level 2 qualification in English or maths.

There are other problems with our system of vocational education, training and skills. We have acute skills shortages in crucial sectors such as engineering, too many young people who lack employment skills, low levels of employer involvement and a lack of good-quality advice for navigating the transition to work. Labour supports the proposals on traineeships that the Government are beginning to carve out. There is also a dearth of high-quality apprenticeships and a damaging divide between vocational and academic pathways.

However, I remain deeply optimistic about our ability to deliver on creating the skilled work force that we need. If we have problems with the manner of delivery, it is heartening that we have an element of cross-party consensus on the issue. We have a vast supply of dedicated, skilled, quality teachers who are willing to work with us to raise standards. If we get the system right, we can reverse the long tale of poor skills in this country and deliver a work force that can compete with the world.

We agree with the Secretary of State for Business, Innovation and Skills that there is no future in a zero-sum game of depressed wages and longer hours. That is the Conservative future outlined in the terrible book “Britannia Unchained”—I do not know whether the hon. Members for Harlow or for Suffolk Coastal (Dr Coffey) contributed a chapter—which depicted a grisly neo-liberal world in which the British are too lazy and too slow. I do not know whether that includes paternity leave; the Minister might be able to enlighten us later.

The solution to our competitive challenge is not a low-skill, low-wage economy or a divided education system—the only race that will win is the race to the bottom. Rather, we must and can compete on our own terms, which means using our competitive advantage in innovation to build a one nation economy based on high-level skills and dynamic, technologically sophisticated companies. That is what young people want, it is what businesses want and it is what the Labour party is committed to delivering. It starts with a dual-track education system and our rigorous technical baccalaureate.

[Robert Halfon]

On a point of order, Mr Gray. For the record, I did not contribute to the book mentioned by the hon. Gentleman.

[Mr James Gray (in the Chair)]

That is not a point of order.

Pupil Premium

Robert Halfon Excerpts

Tuesday 16th April 2013 Westminster Hall

[Sir Nick Harvey]

I strongly agree, and I welcome the suggestion from Ministers that they are working towards that objective. I also appreciate that, particularly in the current financial climate, it cannot be achieved overnight, but it would be a great pity if, during the five years in which the Conservatives and Liberal Democrats form a Government together, we do not see at least some tangible progress towards that object.

[Robert Halfon (Harlow) (Con)]

I am hugely grateful to my hon. Friend for giving way, and I congratulate him on securing this debate. Does he agree that a huge injustice is being done to students who are eligible for free school meals? If they go to school, they get free school meals, but if they go to a further education college, such as mine in Harlow that has 500 poor students who would otherwise be eligible, they are denied free school meals. Is that not something we need to reform urgently?

[Sir Nick Harvey]

My hon. Friend makes an interesting point. In a minute or two I will address the reforms that I think are necessary. Happily, the coming of universal credit gives the Government an opportunity to reform the system. Of course, universal credit has great potential for considering household income holistically, and I would like to believe that, at the end of the process, where a student is studying will have less to do with whether they receive free school meals and that their family’s circumstances will have rather more to do with it. I hope there might be a solution to that problem in the pipeline.

There are still significant numbers of children living in poverty who are simply not picked up by the free school meals measure, and therefore they and their schools lose out on the valuable support that the pupil premium could give to them. There are families suffering on cripplingly low wages of just above £16,000—those receiving working tax credits—and there are those for whom the stigma of claiming free school meals is still enough to deter them from doing so, although I do not think the significance of that should be exaggerated.

Receipt of free school meals is simply not an accurate proxy for poverty, so I question the logic of linking pupil premium funding to free school meals. In many constituencies, such as my constituency of North Devon, the link is simply not the way to address the underlying inequalities in children’s attainment relative to their socio-economic background.

Parents who receive income support, income-based jobseeker’s allowance, income-related employment and support allowance, support under the Immigration and Asylum Act 1999 or the guaranteed element of state pension credit are eligible to receive free school meals, as are parents receiving child tax credit so long as they are not also receiving working tax credit and have an annual gross income of no more than £16,190.

In its report “Fair and Square,” the Children’s Society found that some 700,000 children living in poverty are not entitled to receive free school meals, in the majority of cases simply because their parents are working. As six in 10 children in poverty live in working families, there is clearly an urgent need to address the situation of those children who do not happen to qualify for free school meals yet grow up in circumstances just as dire as many who do.

In my constituency of North Devon, an estimated 1,400 children in poverty—47% of whom live below the Government’s own poverty line—are missing out on free school meals not because they are not claiming them but because they are not eligible. North Devon has the 30th-lowest wages of all the mainland British constituencies, and the neighbouring Torridge and West Devon constituency is third in that dire ranking.

Pockets of rural deprivation are commonplace in the south-west. They are less easy to spot in small rural communities isolated from urban centres, and they are exacerbated by the high cost of living. Mothers have come to my advice surgery to tell me that they will not take up offers of employment because doing so would cost them their free school meals, as they would be in low-paid employment and in receipt of working tax credit. It does not seem right that, when the Government are doing everything that they possibly can to incentivise work, hard-working parents in need of help from the state to boost their terribly low incomes are deprived of help to feed their children.

The cash value of free school meals is estimated to be £386 a year for a child in secondary school. One can think how the cost will quickly stack up for mothers with several children who are exempt from free school meals, thanks to their low-paid jobs that entitle them to working tax credit. Barnardo’s has calculated that, for a workless single parent with two children, the cash value of their entitlement to free school meals is worth 5% of their income. That money would otherwise be spent on paying bills, financing the rising cost of living and, in rural areas such as North Devon, paying for high travel costs over some distance to and from work and possibly even school.

In summary, free school meals are a blunt measure that fails accurately to represent the extent of rural poverty in areas with traditionally low wages. All that is problematic enough in itself, but the fact that the Government have chosen to target the pupil premium at children receiving free school meals makes the implications go even further than just the immediate family situation.

Schools in areas with high rates of low-paid employment will receive lower pupil premium entitlements than they need to support children from disadvantaged working families. In Devon, where we already suffer with the six worst-funded schools in the country—this addresses the point made by my hon. Friend the Member for Redditch (Karen Lumley)—that is pushing to the brink the capacity of schools to support disadvantaged children. Surely, distributing pupil premium on that basis is widening the attainment gap between rich and poor. The distribution is certainly widening the funding gap because, if areas such as Devon are getting less pupil premium than the national average when, as the second-poorest county in the country, it would be expected to receive far more than the national average, a bad problem is being made worse, which is a terrible pity when the objectives of the pupil premium are so laudable and so widely supported.

The linkage of the pupil premium to free schools meals presents other problems. I have mentioned the residual, underlying problems of having some of the lowest school funding per child in the country. Every pupil in Devon receives £480 less each year for their education than the national average. In 2012-13, that has meant an annual loss in the county of some £49 million. I am not pretending for one moment that that is unique to Devon, and I am grateful to the F40 school funding group, which comprises some of the 40 lowest funded local authorities, for its work in raising awareness of these issues in political circles and specifically with Ministers. However, when small rural schools with a high proportion of children from low income, rural families are not receiving the pupil premium on the scale that they could reasonably have expected, the consequences are felt even more keenly.

What the pupil premium is spent on is also an important consideration because it has the potential to exacerbate the flaws inherent in its link with free school meals. Schools are rightly given a pretty free rein in how they spend the pupil premium allocation, but if they choose to spend it on individual tuition or personalised support, the gulf between children from poor working families and their contemporaries continues to widen even further.

A report by the Association of School and College Leaders published early this year also highlighted that the pupil premium in its current form represents an all-or-nothing approach to additional funding. The report expressed concern about low income families being ineligible for free school meals and called for greater sophistication in the pupil premium policy. No one doubts the clear benefits of the extra support that the pupil premium offers, but it is wrong for a significant number of children to lose out, while their families struggle to stay afloat financially.

What is the solution? Help may be at hand. The introduction of universal credit means that eligibility for free school meals must be revised. The criteria used to define who receives them will no longer exist and the system will have to change. We do not know whether or how free school meals eligibility will be determined with universal credit, but I hope that Ministers will seize this opportunity to improve both the entitlement to free school meals and distribution of the pupil premium. The Children’s Society estimates that if all families receiving universal credit were entitled to free school meals, registrations would increase to around 2.7 million with about 900,000 more children being eligible for the pupil premium than at present. In this financial year, each pupil premium payment is £900, and spreading the same money among more children would dilute the payment, but surely the rationale should be to extend the benefits of extra support to the maximum number of children who need it.

The Children’s Society has also calculated that, based on the 2014-15 allocation of some £2.45 billion, a rate of £918 for each child receiving the payment could be maintained, and would still be a little higher than this year’s figure. I understand why the Government are keen to see the headline rate of pupil premium rising, but there is no point ramping it up if many children who should receive that help miss out on it. Linking the pupil premium to universal credit would provide a more accurate picture of deprivation, so ensuring the inclusion of low income families and reflecting income relative to household need. That would offer greater sophistication and a more holistic view of family circumstances.

The flaws of basing the pupil premium on free school meals have not toppled out by accident, and many of us saw them coming in advance. When all three political parties started talking about the pupil premium or something akin to it back in 2008, I immediately received a telephone call from Devon county council saying, “For goodness sake, flag up to your colleagues that basing the pupil premium on free school meals will be a complete disaster and it will miss its target.” We are rightly proud that we have introduced the pupil premium, but we must take the opportunity of universal credit to adjust to whom it is targeted.

I hope that I have outlined today the case for change in the distribution of pupil premium. Using free school meals to target the payment excludes some of the children most in need of help. Some 1,400 children in my constituency alone, and many more throughout the country, should not suffer the consequences of this clumsy and inaccurate measure to define poverty. Schools with limited resources in some of the worst-funded areas should not be left to cope with the needs of deprived children who do not happen to meet the eligibility criteria. If left to continue in its current form, it will continue to mask inequalities and worsen the attainment gap. I appeal to my hon. Friend the Minister to find the best way to envelope free school meals into universal credit and to ensure fairer and more effective distribution of pupil premium to all who need it.

--- Later in debate ---

[Matthew Hancock]

The measure my hon. Friend refers to is one measure of poverty; it is not the measure of poverty. Crucially, however, the link between eligibility for free school meals and poverty is changing with the universal credit, as he said, and I shall come on to that in a second.

My hon. Friend set out what I want to put on record: the link between poverty of income, education or aspiration and the prediction of a child’s future life chances. The issue is important because disadvantage remains strongly associated with poor performance throughout school, a fact that provides the central driving mission of the reforms to education under this Government. We wish to close the attainment gap by improving the quality of education through a range of measures, not least the pupil premium; by improving schools through free schools and academies; and by improving the quality of teachers going into the profession, not only in schools in well-off areas but throughout the country. We in this Chamber agree on that central driver and on the many reforms that are taking place in order to achieve it. The link between free school meal eligibility and underachievement is strong. At every national level of educational attainment, pupils eligible for free school meals are at a lower stage than their peers.

[Robert Halfon]

Does my hon. Friend agree that that also applies to sixth-form students in colleges? Three times as many students at colleges are eligible for free school meals as students in maintained sixth forms. If we are serious about levelling the playing field, should we not concentrate our resources on those most in need, in particular those who go to sixth-form colleges?

[Mr David Crausby (in the Chair)]

Order. The Minister earlier referred to the absence of Opposition spokesmen, but I understand that “Erskine May” notes that these debates are personal to the Minister and the Member, so reference to the absence of Front-Bench spokesmen is not appropriate because they could not speak from the Front Bench in any case.

Oral Answers to Questions

Robert Halfon Excerpts

Monday 4th March 2013 Commons Chamber

[Matthew Hancock]

Of course, apprenticeships have been a huge success story and the number of 19 to 24-year-olds involved is rising sharply. We must ensure, too, that apprenticeships are rigorous and high quality, so we have taken steps to do that. I hope that the hon. Lady will join me next week, which is apprenticeships week, in celebrating apprenticeships. Every Member of this House has the opportunity to explain to everybody that apprenticeships are good for the apprentices, good for business and good for society as a whole.

[Robert Halfon (Harlow) (Con)]

23. Will my hon. Friend support the roll-out of the scheme initiated by the Department for Work and Pensions, which ensures that companies offering procurement contracts must hire apprentices? Will he ensure that the scheme, which has resulted in thousands more apprentices in the DWP, is rolled out across Government Departments?

[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.

Oral Answers to Questions

Robert Halfon Excerpts

Monday 21st January 2013 Commons Chamber

[Mr Laws]

We will certainly go on strongly supporting sixth-form colleges. I believe that an all-party sixth-form college group will be formed in the near future with the hon. Gentleman as its chairman. I will be more than happy to meet him in his capacity as chair of that group.

[Robert Halfon (Harlow) (Con)]

There is only one school sixth form in my constituency; the rest of the sixth-form students go to Harlow college. Will my right hon. Friend ensure that the poorest pupils going to sixth-form and further education colleges have access to free school meals, as school students have?

[Mr Laws]

As my hon. Friend will know, that is a long-standing injustice in how legislation treats students in colleges compared with those in schools. Obviously, resolving it would involve a considerable financial commitment, but I assure him that we are looking at it.