Post-16 Education Funding

Andy Burnham Excerpts

Monday 28th March 2011 Commons Chamber

[The Secretary of State for Education (Michael Gove)]

With permission, Mr Speaker, I should like to a make a statement on education after the age of 16.

Today’s statement builds on the work of my colleagues such as the right hon. Member for Yeovil (Mr Laws), the original architect of the pupil premium; the Minister of State, the hon. Member for Brent Central (Sarah Teather), who has secured additional funding for reform of early years and special needs provision; my right hon. Friend the Deputy Prime Minister, who has been leading the coalition’s radical programme of work on social mobility; and my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes), whose work as advocate for access to education has been driven by the ethical imperative of making opportunity more equal.

All of us know that an increasingly competitive world economic environment means that our children need to be better educated than ever. Sadly, however, we have been falling behind other nations in our educational performance. The OECD has reported that despite sharply rising school spending over the past 10 years, England has slipped down the international rankings from fourth to 16th for science, from seventh to 25th for literacy and from eighth to 28th for mathematics. Last month, in a new report, the OECD revealed that we have one of the most unequal education systems in the developed world. We have a system of education spending that is fundamentally inefficient, and we have an insufficient supply of high-quality vocational education.

The OECD’s challenge is underlined by the conclusions of Professor Alison Wolf’s report on vocational education. Professor Wolf has revealed that nearly half of school leavers never secure five decent GCSEs including English and maths, and that many of the qualifications that they currently secure are not respected by employers and colleges. The case for reform that she makes is unanswerable. We cannot carry on with a vocational education system that is broken, and we are determined to ensure that we have a technical education system that is among the world’s best.

Action has already been taken by my hon. Friend the Minister for Further Education, Skills and Lifelong Learning. The number of new apprentices taken on in the last quarter was 54,000, 8% up on last year, and I expect that number to rise further in the months ahead. More young people are being trained for work, and the number of young people between the ages of 16 and 18 not in education, employment or training actually fell by 15,000 in the last quarter of last year. However, we know that more needs to be done. In particular, action needs to be taken to reduce bureaucracy. That is why my hon. Friend will be working with me in the months ahead to make it easier for small and medium-sized enterprises to hire apprentices, so that we can ensure that the next generation enjoys opportunities that were denied the last.

Critically, we know that the biggest determinant of whether students can stay on is their attainment at the age of 16, and specifically whether they secure good GCSEs in subjects that universities and employers value. So to raise attainment, especially among poorer students, we have radically extended our academies programme, introduced a new, more aspirational measure of performance, the English baccalaureate, and are investing an additional £2.5 billion in the pupil premium for students who are in school to the age of 16. Today I can confirm that, building on the pupil premium, we will introduce additional funding for the education of students over the age of 16 who stay on at school and college.

We are already increasing funding for post-16 education next year to more than £7.5 billion, which is equivalent to more than 1.5 million places in schools, colleges and training. Within that £7.5 billion, £770 million is being spent on supporting the education of disadvantaged 16 to 18-year-olds. That is £150 million more than would previously have been available to schools and colleges specifically for the education of the most disadvantaged 16 to 19-year-olds. Nearly 550,000 young people will benefit from that student premium.

As we plan for more students to stay on, so we must reform how we fund the institutions that educate young people over the age of 16. I will therefore consult on a fairer funding formula for all schools and colleges in the sector. Already, thanks to the measures taken by the coalition Government, there will be more places in schools and colleges for students, particularly those who want a high-quality technical and vocational education. Because of the steps that we have taken to reduce waste and remove inefficiencies, my right hon. Friend the Chancellor of the Exchequer released in the Budget another £125 million to build new schools and colleges in England. We will double the number of university technical colleges planned from 12 to 24, and we will work with leading figures in industry and commerce to create a new generation of 16-to-19 technical academies that will support the growth industries of the future.

All schools should have the ability to benefit from a closer engagement with business, so I have today asked Bob Wigley, the chair of the Education and Employers Taskforce, to bring forward proposals that will allow every school to develop a link with local businesses through engagement with volunteer governors.

However, we must also ensure that no young person is prevented from staying in education or training for financial reasons. The education maintenance allowance was used by the previous Government to provide an incentive for young people to stay on, and it led to a small increase in overall participation, but as a report commissioned by the previous Government pointed out, there are real questions as to whether it is socially just to pay 45% of students a cash incentive to stay in learning when we could concentrate our resources on removing the barriers to learning faced by the poorest.

The social justice case for reform has already been made—by the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson), when he was Education Secretary in the previous Labour Government. He said in 2007 that the EMA was an incentive that

“we will not be using”

in future. Instead, he argued, a Labour Government would need to “divert that” EMA “money into other areas”.

“What we will need to do”,

he argued on behalf of the Blair Government, is

“offer…assistance to youngsters…from poorer backgrounds”,

which is precisely what I propose to do.

Today, I can announce the shape of the new, more targeted, student support scheme that we pledged to introduce last autumn. We have consulted extensively to ensure that we support those most in need, and I am particularly grateful to my right hon. Friend the Member for Bermondsey and Old Southwark for the work that he has done to help to secure a progressive solution.

The Government have already ensured that every household in which the family are not on the higher rate of tax, and where children stay on in school after the age of 16, will receive increased child benefit, and today I propose to increase the amount of support that we give to the most vulnerable. Twelve thousand students, those in care, care leavers and those receiving income support, including the severely disabled, should in future all receive an annual bursary of £1,200 if they stay on in education—more every year than they ever received under EMA.

I also propose that those most in need who are currently in receipt of EMA be protected. All young people who began courses in 2009-10 and who were told that they should receive EMA will still receive their weekly payments. Young people who started courses in the 2010-11 academic year and received the maximum weekly payment of £30 should now receive weekly payments of at least £20 until the end of the next academic year.

In addition, those students will be eligible for support from an entirely new post-16 bursary scheme. Our scheme will help to ensure that the costs of travel, food and equipment for poorer students are properly met, so that no one is prevented from participating through poverty. One hundred and eighty million pounds will be available for that bursary fund, which is enough to ensure that every child eligible for free school meals who chooses to stay on could be paid £800 per year—more than many receive under the current EMA arrangements.

Schools and colleges will have the freedom to decide on the allocation of the bursary. They are best placed to know the specific needs of their students, and we will give professionals full flexibility over allocating support. We will now consult on the implementation of the new scheme, so that allocations can be made for the new arrangements to come into effect from this September.

In these extremely difficult economic times, the coalition Government are prioritising the reform and investment we need across the education system. We are providing more investment in the early years to tackle entrenched poverty; tougher action to turn around underperforming schools; more investment in improving the quality of teaching, especially for the most disadvantaged; higher standards for all children at every stage, to get more going on to college and into fulfilling jobs; more academies to extend opportunity across the country; sharper accountability for how every penny is spent and how every pupil is taught; and more autonomy for all professionals, so that we can compete with the best.

We must ensure that we at last have a world-class education system in the decade ahead, and I commend this statement to the House.

[Andy Burnham (Leigh) (Lab)]

On Saturday, thousands of young people came out on to the streets to speak out against the unfair decisions of this Secretary of State. On the “Today” programme, he was dismissive of their actions:

“Evan Davis: Will the march, however big it is, change your mind about any aspect of this cuts agenda? Michael Gove: No.”

Given that so many people no longer have any faith in a word he says, perhaps it is entirely to be expected that he is here, just 48 hours later, announcing a humiliating climbdown. I do not think that we can dignify today’s announcement with the word U-turn. He has taken a successful policy that improved participation, attendance and achievement in post-16 education, and turned it into a total shambles.

I will remind the House of the background. Before the election, both the Secretary of State and the Prime Minister made personal promises to young people that the EMA would stay. Even after the election, the schools Minister, the hon. Member for Bognor Regis and Littlehampton (Mr Gibb), pledged to keep it. Then, out of nowhere, the Secretary of State cut it by 90%, and today, under pressure, he tries to put a positive gloss on a 60% cut. Whatever he says, that is what it is—a successful scheme praised by the Institute for Fiscal Studies and leading economists cut by two thirds. Young people have seen through this and will not be taken in by this Secretary of State.

The truth is that with his confused decision making, the Secretary of State has already thrown into chaos thousands of young lives. Even today, many will be none the wiser about their futures. I will take three issues. First, on the money, I have a simple question: where is it coming from? How much is coming from elsewhere in the education budget? Will this announcement not cause chaos elsewhere? Is it true that he is cutting the careers service even further to pay for it—a service already in meltdown thanks to the complete failure of Ministers to manage the transition to a new service? If new money is being provided by the Treasury, how much and why was it not announced in last week’s Budget?

Secondly, on the numbers who will benefit, the Secretary of State claims that the poorest 12,000 students will receive more than under the current scheme. What he did not say is that it amounts to 77p a week more. What has he got to say to the other 588,000 young people who stand to lose over £1,000 a year and to whom he gave a personal promise that they would keep this support? On the Opposition day debate, he stood at that Dispatch Box and promised that his new scheme would help with travel costs and equipment, and provide help for young parents, carers, those leaving care and young people with learning disabilities. Can he today assure the House that all of those promises are met by this announcement? What about the estimated 300,000 first-year students in the middle of a two-year course? He knows that a legal opinion obtained by the Labour party showed that these students had a strong case against the Secretary of State. Is it not the case that today’s partial climbdown was only prompted by the threat of legal action and the panic realisation that he was at risk of yet another reverse in the courts?

Thirdly, on how this scheme will work, we welcome the Secretary of State’s climbdown on keeping a national automatic payment system for about 2% of current recipients. Is it not the case, however, that under his proposed scheme more than half a million young people will no longer have any guarantee of the level of support they can expect? Does not that lack of clarity in this new scheme run the same risk of thousands of young people walking away from education altogether? The fact is that his proposals fail to build on the strengths of the current system. Is it not the case that college principals and senior staff will be spending a huge amount of their time administering this fund and will be placed in the invidious position of having to make impossible decisions between equally deserving claims for support? Will there be any national criteria for eligibility and, if not, are we looking at an unfair postcode lottery?

Will the new scheme replicate the weekly conditional payments that have helped to boost attainment and stay-on rates? Five months ago the Secretary of State made a decision that dropped a bombshell on young people in this country, and we are told today that there will now be a further period of consultation—more consultation! Young people are facing a difficult enough future, but still they do not know what financial support they will get. We are five months away from the start of the academic year, yet people working in education do not have the precise details.

This is yet another shambles from a Secretary of State who lurches from one disaster to another: Building Schools for the Future, school sport partnerships, Bookstart and now EMA. The pattern is always the same—a snap decision, no consultation, no evidence to support it and then a grass-roots backlash as his policy unravels before our eyes. It is becoming ever clearer that this is a Secretary of State out of his depth—who has not worked out the difference between being a journalist and being a Minister, and whose shortcomings have been cruelly exposed in office. His transformation is indeed a remarkable one—from the Tory golden boy to the coalition Mr Bean.

But the danger with this Secretary of State is that his incompetence is having a direct effect on the hopes and dreams of thousands of young people. Even after today’s announcement, with universities lining up to charge the full £9,000 in fees and youth unemployment at record levels, thousands of young people will still have to downgrade their ambitions, leave their studies and give up hope of a university education. Is that not a damning indictment of any Secretary of State for Education?

[Michael Gove]

I am very grateful to the right hon. Gentleman for those questions. I am grateful for his reference to people being out of their depth—I will of course acknowledge his expertise in this area. I am also grateful to him on behalf of my right hon. Friend the Secretary of State for Business, Innovation and Skills for once more recycling the Mr Bean joke—the copyright on that joke will ensure that the right hon. Gentleman enjoys a successful and happy retirement in years ahead.

The first question that the right hon. Gentleman asked was: where is the money coming from? The answer is that the money for all public spending comes from the taxpayer. It was on his watch that the taxpayer got a spectacularly bad deal from a Government who spent every penny and left this coalition Government with a difficult economic inheritance. He asked whether the money would be allocated by discretionary means. I pointed out in my statement that it absolutely will. He argued that college principals would face an invidious decision, but he must know that it was the Association of Colleges that argued that the new fund should be put in place on discretionary principles. Perhaps he should consult college principals before claiming to speak on their behalf.

The right hon. Gentleman accused the coalition at one point of engaging in no consultation, and of having too much at another. There was no consistency at all in the questions that he asked. There has been a certain consistency in his position in one area, however, and that is his consistent refusal to state what his alternative would be. The truth is that Labour does not have a policy on this issue or any other education issue. We know what the right hon. Member for Kingston upon Hull West and Hessle thought: he said that we should divert money from the EMA to the poorest. We know what the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) thought: that we should divert money from child benefit to pay for EMA. However, we do not know what the right hon. Member for Leigh (Andy Burnham) thinks, beyond believing that students should have money to go out for drinks with friends.

We do not know how the right hon. Gentleman would pay for his alternative to our proposal, because he has opposed every saving that we have made. We do not know what he thinks people should be studying when they are not going out, because he has opposed every reform to raise standards. He has no policies on education other than blanket opposition. No wonder he did not join the march for an alternative on Saturday—he does not have one.