16-to-19 Education Funding

Adrian Bailey Excerpts

Thursday 7th September 2017 Westminster Hall

[Nic Dakin (Scunthorpe) (Lab)]

I beg to move,

That this House has considered 16 to 19 education funding.

It is a pleasure to see you in the Chair, Mr Hanson. I am pleased to move this debate and to see so many hon. and right hon. Members here on a Thursday afternoon to show their interest in this important subject. Let me start by declaring my interest in and passion for 16-to-19 learning.

I have worked in post-16 education most of my life and seen a multitude of times how high-quality learning transforms the life chances of young people. When elected to serve as Scunthorpe’s MP, leaving my job as principal of John Leggott College, post-16 education was in a pretty good place with a relevant, dynamic, personalised curriculum and relatively decent funding to support a broad and balanced education with appropriate extra-curricular activities, guidance and support. Education maintenance allowance acted as a significant driver of ever-improving student achievement and social mobility.

Sadly, in the seven years I have been in Parliament, the challenge for post-16 leadership has become significantly greater, driven by huge, ongoing and accelerating financial pressures. The cuts to 16-to-19 education funding introduced in 2011, 2013 and 2014 have proved particularly damaging. The average sixth-form college lost 17% of its funding before inflation. If John Leggott College, which celebrates 50 years of providing outstanding education to the young people of north Lincolnshire this year, was funded at 2010 levels today, it would have £1.2 million more in this year’s budget. That is astounding.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I congratulate my hon. Friend on securing this debate. Does he agree that not only has 16-to-19 education been affected by cuts in funding for that particular cohort but past and current Government cuts in adult learning and English for speakers of other languages impact on further education colleges and other education institutions in providing the sort of curriculum and resources necessary to teach 16 to 19-year-olds as well?

[Nic Dakin]

My hon. Friend is completely right. Cuts elsewhere in further education budgets make life even more difficult and challenging for people leading those institutions and delivering not only for adults but for 16 to19-year old learners.

Alongside these funding cuts, inflationary pressures have continued to bite and costs have continued to rise. Employer contributions to the teachers’ pension scheme increased from 14.1% to 16.4% in 2015, employer national insurance contributions rose from 10.4% to 13.8% in 2016, and business rates increased in 2017.

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[Mike Kane (Wythenshawe and Sale East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hanson.

I thank my hon. Friend the Member for Scunthorpe (Nic Dakin) for securing this debate. He has a long track record—it began long before he came to this place —in governing and managing further education institutions. And just look at the turnout that he has got today. It shows the respect in which he is held, particularly on this subject.

I pay tribute to my local college leaders: Lesley Davies at Trafford College and John Thornhill at Manchester College. They run absolutely fantastic colleges, but they face the same pressures as all college leaders up and down the country.

In July, the Local Government Association published a report warning the Government about the failure to address the lack of skills in the UK, which is the fundamental point of this debate. That lack of skills could cost our economy £90 billion a year. The LGA estimates that by 2024 there will be a lack of more than four million highly skilled people to meet the demand for high-skilled jobs. We will have to change.

In Greater Manchester, we are trying to plug the skills gap; I look forward to the discussions that the Department for Education will have about the section 28 designation of the college in the area. Hopefully, the Minister will approve the exciting new plans in the weeks and months ahead.

Those plans need to be approved. With Brexit looming, and frankly a remarkable lack of clarity from the Government on the reciprocal rights of EU workers, there is an urgent need to face up to the skills gap. I normally cover the schools brief. In this country, we have 16,000 school teachers who are EU nationals. We already have a crisis in teacher recruitment and retention, which will only be exacerbated in the future, yet although there is an urgent need to upskill our workforce, since 2010 there has been an overall reduction of £1 billion in the funding for 16 to 18-year-olds. As was highlighted in the debate, the funding for a young person drops by 25% when they reach the age of 16.

According to the Institute for Fiscal Studies, education for 16 to 18-year-olds has been the big loser from education spending changes over the last 25 years. I disagree with my hon. Friend the Member for Scunthorpe: the Government did announce £1.3 billion before the rise of the House, but they have not told us how that money will be spent, and it will not even touch the sides of what is required, given the funding cuts hitting schools. For many years after 1990-91, spending per student was nearly 50% higher in further education than in secondary schools, but by 2015-16 it was 10% lower.

According to the IFS,

“spending per student in 16-18 education is set to fall further”.

This funding gap becomes even starker when we consider the impact on teaching hours and make a comparison with other countries, as the hon. Member for Waveney (Peter Aldous) quite rightly pointed out. The former Secretary of State for Education, the right hon. Member for Surrey Heath (Michael Gove), wanted to compare our education system with that of other countries, as set out in the programme for international student assessment. However, as the hon. Member for Waveney said, pupils in Shanghai receive twice as much teaching and face time as pupils in England. That has to change. How can we expect our children to reach the skills level of Shanghai children when we give such limited time to our young people in college?

Despite the Chancellor’s announcement in the Budget of plans to invest £500 million in technical education, that money will cover only around 25% of those in education and it will not be fully in place until 2021. It does nothing to impact on the cuts that have already been implemented.

Colleges also face confusion over the apprenticeship levy. The levy puts employers in the driving seat when it comes to funding, and we do not know whether moneys will be passed on to colleges in the future.

[Mr Bailey]

An issue that has been brought to my notice is that colleges have to make two applications: one for levy work and one for non-levy work. The tendering process is incredibly complex and very difficult for colleges to plan for, and there is also the fear that small and medium-sized enterprises will be put off by it. Does my hon. Friend have any comments to make on that?

[Mike Kane]

I have, and I am grateful to my hon. Friend for that intervention. There is a huge reconfiguration of training going on, and it has not been properly thought out. That puts additional burdens on colleges. He is right to highlight the point.

There is also confusion about students between 16 and 18 who do not hold a GCSE grade A* to C—or 9 to 4 with the changes that have come in this year—in maths or English. In future allocations, these students have to study maths and English as a condition of funding. Therefore, on top of other funding pressures, there is a risk that colleges will fall off a precipice. That is where we are at, and that is why there are so many Members here today. In May 2015, the Skills Funding Agency suggested that there were around 70 financially unstable colleges.

In the few minutes that I have left, I was going to talk about area-based reviews, but the former Minister, the right hon. Member for North Norfolk (Norman Lamb), spoke very eloquently about the issues we have had with them up and down the country. In Greater Manchester, the process was ably led by the Conservative leader of Trafford Council, Sean Anstee, but these area-based reviews really had no teeth, because colleges have gone away and done their own deals with the Department for Education, even though we have gone through a huge area-based review system up and down the country. The Minister really needs to get a grip on this issue and take a good look at it, as well as taking advice about it from fine council leaders and councillors up and down the land who have struggled to do the right thing but found that the review process just did not work out.

In conclusion, post-16 education faces a perfect storm: low levels of funding per pupil; no acknowledgement of inflationary or cost increases by the DFE, as was ably pointed out by my hon. Friend the Member for Scunthorpe; the unknown impact of the apprenticeship levy; the maths and English funding condition; and a costly and potentially failed review of post-16 education. If we truly want to meet the challenges of Brexit and address the problems it will create for our economy, we must face up to the country’s skills shortage. We cannot do that by undermining our post-16 sector.

I pay tribute to every Member who has contributed today. I am afraid that I have not got round to mentioning them all, but all of them—from all parties in this House—have ably stood up for their colleges; well done to them for that.

--- Later in debate ---

[The Minister of State, Department for Education (Anne Milton)]

It is a pleasure to serve under your chairmanship, Mr Hanson. I have been silenced by the Whips Office for five years, so this is quite an exciting moment for me. Thank you for reminding me to allow the hon. Member for Scunthorpe (Nic Dakin) a minute at the end of the debate to sum up. I congratulate him on securing this debate and for his kind comments about me; I can perhaps reassure him by saying that the feeling is entirely mutual.

I have been inspired by the commitment of leaders and staff throughout the sector, and I am acutely aware of their concerns surrounding funding; I worked in the public sector for 25 years and I am truly conscious of these concerns. I am also aware that today the hon. Member for Scunthorpe has not touched on the issue of underspends, which he has tabled many parliamentary questions about. As a former principal at John Leggott College, he has particular expertise in this area.

The hon. Gentleman sent me a message today via my officials asking me not to go on about all “the guff” on apprenticeships and technical levels, or T-levels. Time probably prevents me from going on too much about those issues, but I will mention them, not least because a number of hon. Members have talked about preparation for work and acquiring life skills. These two opportunities —apprenticeships and T-levels—will provide exactly those things.

Nevertheless, I assure the hon. Gentleman that I am tenacious—I am like a dog with a bone—and his words have not fallen on stony ground. I did not go to university; I had the opportunity to do what we would now call an apprenticeship. I will certainly not be anything but a champion for this sector and the further education sector.

The hon. Gentleman is quite right that education transforms the lives of young people, but education must start at the beginning of their life—at a young age—to provide the basis for post-16 education. Funding pre-16 education is critical, but it is important to recognise that post-16 education is not just an opportunity for young people to carry on; it can give a second chance to those for whom the formal education sector did not work.

A number of Members spoke about the inequality between pre-16 and post-16 education funding and the issues of young people with special needs. Providers of 16-to-19 education were allocated £300 million, and for students on large study programmes—those containing four or five A-levels—there is additional funding, attracted through the funding uplift. Additional support for disadvantaged students amounted to £540 million in 2016-17.

My hon. Friend the Member for Waveney (Peter Aldous) spoke about the excellence of his local results and good local initiatives, but rightly pointed out the issues with revenue. He is right that colleges are a great British success. My hon. Friend the Member for Eastleigh (Mims Davies) mentioned female participation in science, technology, engineering and maths subjects and, as Minister for Women, I particularly join her in welcoming that. As an afterthought, we have had a hugely significant increase in the number of A-level entries in STEM subjects, from slightly more than 225,000 in 2010 to 270,000—an increase of nearly 20%. That is progress. It does not go far enough—particularly with regard to young women—but it is progress. The figures from my hon. Friend’s college on the number of people from disadvantaged backgrounds going to university is testament to the hard work of such colleges.

The right hon. Member for North Norfolk (Norman Lamb) raised the issue of area reviews. I am certainly happy to see him and the hon. Member for Luton North (Kelvin Hopkins). I do not want to see good educational establishments wither and die. The area reviews have been important, but it is important that we respond to some of the local anomalies—for want of a better word—that crop up. My hon. Friend the Member for Yeovil (Mr Fysh) raised financial issues, and I would be happy to discuss them with him.

I am, however, going to include a word about technical education—the hon. Member for Scunthorpe cannot get away without it—because following Lord Sainsbury’s review, the significant changes to the skills system will be very important. The hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) mentioned breadth and depth, which are extremely important. The changes we are making are intended to grow home-grown talent and fulfil our potential.

Brexit, as we have mentioned, will be critical. A huge amount of work is going on to make sure that we have the skills in this country that we need. That work is not only for the country—we always talk about the country and the economy—but actually for individuals. It is important that they fulfil their potential. Additional funding, rising to more than £500 million per year, has already been announced to enable the delivery of T-levels when they roll out, and the first £50 million will be available to the sector in 2018 to help institutions build their capacity. I should also mention the improved work placements, which are about the breadth and depth of young people’s experience. It is a clear indication of our commitment—it is money going behind policy.

Redesigning the skills system to respond to change and to address the needs of employers and individuals is critical. Many hon. Members referred to gaining work experience, and that will be a key part of the T-levels. The apprenticeship levy is also important. It is amazing to look at some of the apprenticeships that are being put together, and to talk to apprentices. Very often they are young people for whom school did not work, who did not want to go to university or did not get the grades to go. We will be spending double what was spent in 2010-11: £2.5 billion, which is not a small amount of money.

[Mr Bailey]

Will the Minister give way?

[Anne Milton]

I am terribly sorry; I know the hon. Gentleman spoke, but I do not have time to give way.

The crucial word is quality. Technical education must be a strong alternative to traditional academic routes. I know funding is difficult on the academic side, and I have noted the recommendations in the document in support of our sixth-form colleges, but I was also pleased to see the results in the reformed A-levels last month, which continue to maintain high standards and improve students’ readiness for the demands of higher education. Curriculum and qualifications reforms that decouple AS-levels will allow more time to be spent on teaching and, I hope, learning—teaching is only half the story; pupils have got to learn it, too—as it allows flexibility for schools and colleges.

Education and training for 16 to 19-year-olds is one of my top priorities. The fact that a record number of young people are now participating in education or apprenticeships says much about changing attitudes to education, but I recognise that finances in colleges are significant. We often talk about funding, but possibly more important are the cost pressures in the system. The additional £500 million funding will mean more hours per student, and will provide support to secure those work placements. That will take technical courses to more than 900 hours a year, which is an increase of more than 50% on the current 600 hours.

The additional funding will benefit FE colleges, which provide most of the technical programmes, but many sixth-form colleges and some school sixth forms will also benefit. At a time when public finances are under considerable pressure, that represents a significant commitment to the 16-to-19 age group, in the context of the wider pressures on finances. I will not spill out political rhetoric, but a strong economy is important and we have had some difficult decisions to make. Our commitment to maintain the 16-to-19 base rate for all types of advisers at current levels until 2020 is important. We have done that, but the Government will keep funding under consideration. As I said at the beginning of my remarks, my job will be to be a champion for the sector. Pre-16 school education is crucial in the success of students post-16, which is why pre-16 schooling must be a funding priority, but it does not end there.

The hon. Member for Keighley (John Grogan) mentioned the contributions from Members on my side, which I noted. I know that although money and results do not always follow each other, money does matter. I got into some trouble at my university hustings for talking about the sector and forgetting to answer the questions that they asked, but I assure the hon. Gentleman that, as someone who did not go to university, and for whom perhaps the school system did not work terribly well, this will be my opportunity to make sure that every young person in this country gets the opportunity they deserve, and an opening.