Technical and Further Education Bill

Angela Rayner Excerpts

Money resolution: House of Commons & 2nd reading: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 14th November 2016 Commons Chamber

[Angela Rayner (Ashton-under-Lyne) (Lab)]

I start by associating myself with the well-wishes for the hon. Member for Grantham and Stamford (Nick Boles).

The Opposition do not intend to oppose the Bill’s Second Reading, but many questions remain for the Government to answer during its passage. We accept that the provisions on insolvency are necessary, but their necessity is a sad reflection on the circumstances facing providers under this Government. Further education helps 4 million people a year, playing a vital role in giving our young people the skills they need and supporting older learners into retraining and learning new skills. Since 2010, however, the sector has suffered a real-terms budget cut of 14%. I am sure that the Secretary of State will have seen the National Audit Office report on “Overseeing financial sustainability in the further education sector” and will know that 110 colleges had recorded an operating deficit by 2013-14—more than double the number that had done so in 2010, when her party took office—and that the number of colleges judged by the Skills Funding Agency to have inadequate financial health has more than doubled. However, in the face of that financial crisis, the Government’s solution is not the investment that the sector needs, but is simply a way to sweeten the bitter pill of insolvency.

I needed a second chance at education, and many of my Opposition colleagues have experienced the transformative effect that technical and further education can have on young people’s lives and on learners at all stages in their lives. That is why the Opposition see the Bill as a missed opportunity. Britain needs a highly skilled, highly trained workforce to succeed in the economy of the future, particularly following Brexit and given the productivity gap that we face.

[Rob Marris]

Does my hon. Friend share my bemusement at the Secretary of State standing before the House this afternoon extolling the transformational—that was the adjective she used—changes brought about by her Government and the previous coalition Government and extolling the high-quality work that has been done? Does my hon. Friend share my bemusement that, despite apparently hordes more skilled workers as a result of the changes introduced by this Government and the previous Government, this country’s productivity is still absolutely rubbish? If technical and further education were so fantastically transformed, productivity would have improved a whole lot, but it has not.

[Angela Rayner]

I absolutely agree that this Government have done nothing to provide technical skills. Colleges have faced dramatic budget cuts. It is audacious for Ministers to stand at the Dispatch Box and say what they have done when they have failed. In fact, the Government included the word “technical” in the Bill only as an add-on—it was not there in the first place.

I would be the first to say that an excellent academic education must be provided to all pupils from all backgrounds, but given that many will not go to university, other educational routes remain vital. That is why it is so important that further education is put on a sustainable financial footing. It is not too late for the Government to do that and to bring forward the changes that the sector needs. Next week, the Chancellor will stand at the Dispatch Box and deliver his first autumn statement. The Government could take that opportunity to ensure that the hundreds of millions of pounds that has been cut from the further education sector since 2010 are reinvested in colleges across Britain, in our future and in our best and most valuable asset: the people.

The Secretary of State could get the Chancellor to bring back the education maintenance allowance, which helped hundreds of thousands of young people from low and middle-income backgrounds to stay in education. The Institute for Fiscal Studies confirmed that the EMA represented value for money for the taxpayer, boosted the rates of young people staying in education and improved attainment. I fear, however, that we will be left disappointed once again. After all, this Government have struggled to match warm words with policy when it comes to education.

[James Berry]

The hon. Lady is listing a litany of failures, but would she like to take this opportunity to welcome the massive boost in apprenticeships, which I am sure many of her constituents, like mine, have enjoyed?

[Angela Rayner]

I will come on to that, because although I welcome some of the Government’s proposals on the Institute for Apprenticeships, some of the substance is lacking—let’s be honest, it is not in the Bill. The Government have struggled to match their warm words, and were planning to push ahead with cuts to apprenticeship funding that would have been devastating to those in disadvantaged areas. It was only the concentrated opposition in this House, led by my hon. Friend the Member for Blackpool South (Gordon Marsden) and my right hon. Friend the Member for Tottenham (Mr Lammy), along with many other Labour Members, that forced the Government to do a U-turn.

[James Berry]

rose—

[Angela Rayner]

I will make progress and let the hon. Gentleman in again later.

Even then, the Government did not announce new investment, nor did they abandon the cuts. Instead, cuts of 40% have become cuts of 20%, and cuts of 50% have become cuts of 30%. So although we welcome the Institute for Apprenticeships, now to be renamed the “Institute for Apprenticeships and Technical Education”, we are concerned that changing the name is the extent of the progress made in the Bill. For example, there is no role for apprentices or learners on the institute’s board. First, the Government gave us an office for students with no students, and now we get an Institute for Apprenticeships with no apprentices. There is no inclusion of further education providers, colleges, universities, the relevant trade unions or local authorities either, and I cannot help but wonder whether anyone in the sector will actually be allowed on the board. Despite that, we have long welcomed the institute in principle, as the body to implement a plan to improve both the quality of apprenticeships, and access to and participation in them. We will now have the institute, but where is the plan? Why is there so little mention of the institute’s need for a strategy to promote participation among care leavers, learners from black, Asian and minority ethnic backgrounds, and learners with disabilities? Why have the Government not used the Bill as an opportunity to enshrine in law the recommendations of the Maynard review on apprenticeship accessibility? We simply know too little of the Government’s plans for what the institute will do, and how it will help providers and students in the years to come.

However, that is not really a surprise. After all, the Government do not seem to know what the capacity of the institute will be. In a recent written answer, the Minister for Apprenticeships and Skills said:

“We are currently developing the detailed structure of the Institute for Apprenticeships, and therefore we are not yet able to set out initial staff numbers”.

So the Secretary of State and the Minister can come to this House with a Bill to set up this institute, but they cannot tell us how it will be structured, staffed or operated. We can only hope that the institute will fare better than every other body this Government have set up to help them deliver their policies in further education.

[Tristram Hunt]

Is my hon. Friend also aware that the Minister for School Standards, having said at the Dispatch Box that the royal college of teaching was up and running and had full Government support, has said in answer to my parliamentary questions that there have been no meetings with the Secretary of State, no meetings with Ministers of State, and no effective funding? The royal college of teaching is something we should all support in this House, and I would hope those on the Treasury Bench were behind it. [Interruption.] That is what the parliamentary answers said.

[Angela Rayner]

I will be interested to see what the Secretary of State has to say about that. I find it absolutely shocking—

[Rob Marris]

Shocking.

[Angela Rayner]

Absolutely shocking. We have seen the Skills Funding Agency lose nearly half of its staff since 2011, and we have seen continued and accelerating decline in the staffing of the National Apprenticeship Service and the UK Commission for Employment and Skills. Of course, all those bodies were threatened with further cuts under the “BIS 2020” project, which was overseen by McKinsey for the former Secretary of State. We found out about the details of that not from any ministerial statement, but through internal documents leaked to my hon. Friends the Members for Sheffield, Heeley (Louise Haigh) and for Sheffield Central (Paul Blomfield) in April. Perhaps the Secretary of State can take the opportunity today to clarify that that process is no longer ongoing, and what her plans are for the staffing of bodies transferred from the former Department.

Given that businesses will contribute to the apprenticeships programme through the levy, it would help if the Minister reassured them that they will not be short-changed or end up just paying in to cover for cuts rather than for a genuinely new and improved level of service. As welcome as the institute is, there is concern that it will not deliver if it is not resourced for the job. With all the challenges facing the further education sector today, with the hundreds of millions of pounds of funding lost, and with the sky-rocketing number of providers facing deficits or requiring direct intervention of the Government, now is the time for radical action to ensure that our further education sector is able to continue on a sustainable footing in years to come.

[James Berry]

The hon. Lady could at least welcome the apprenticeship levy, which her party considered so radical that it would not even include it on its platform for the last election.

[Angela Rayner]

It is always a pleasure to take an intervention from the hon. Gentleman. I will come on to that point.

I have no doubt that the Secretary of State read the same National Audit Office report that I did on the growing financial crisis in further education. It was that report that recommended the creation of an insolvency regime. That recommendation is in the Bill, but it would be alarming if that were the only response on offer. The Secretary of State seems to be aware that dozens of providers are reaching crisis point, but instead of deciding that something needs to be done about it, she seems to think that we should be helping that process along. While Labour Members call for investment, Government Members offer insolvency.

This Bill offered the Government an opportunity to improve the situation faced by providers and students. Instead, they seem content with managed decline. We should make no mistake that the decline of a sector that helps more than 4 million people every year will fail not only them, but the needs of our economy and society as a whole. For that reason, I urge the Secretary of State to look again at the opportunities that may have been missed in this Bill. We will not oppose the Bill tonight, but we will most certainly seek to improve it.