Post-18 Education and Funding

Angela Rayner Excerpts

Tuesday 4th June 2019 Commons Chamber

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

I thank the Secretary of State for early sight of his statement.

“Augar is the epitaph for Theresa May’s government…slow, wrong-headed, indecisive and, above all, failing in its central objective, to help level up Britain.”

This is not my verdict, but that of the Secretary of State’s Conservative predecessor; nor is it a reflection on the panel and all the recommendations it has put forward; it is a reflection on the Government on this Government.

Let us start with the obvious point: the Prime Minister has welcomed the report, but is powerless to implement it. Never have I seen a sight so pitiful as the Prime Minister lobbying her own Government. Are there any recommendations in the report that the Secretary of State has the power to adopt now or ever, or will every decision be deferred until the spending review or, perhaps more accurately, until the Conservative party has a new leader and presumably a new Chancellor?

As it stands, the Government have now wasted two years on a review to reach the blindingly obvious conclusion that, as the Prime Minister now admits, abolishing maintenance grants was a huge mistake. If only she could have done something about it. Can the Secretary of State at least assure the House that he wants them restored, and guarantee a decision in time for the next cohort of students? The review also proposes extending more maintenance support to lifelong learning across the board—a point that we would echo. Can he guarantee to consider that, and can he tell us whether it would apply to part-time students?

Decisions need to be made on funding. The outgoing Prime Minister promised that austerity is over, but there is every danger it will continue in tertiary education. Presumably, the Secretary of State accepts that a cash freeze in funding for universities means a real-terms cut. Is the tokenistic fee cut pushed by the Prime Minister not the worst of both worlds, as institutions will have their hands tied on funding while students will still be graduating with tens of thousands of pounds of debt? Is there any guarantee that universities will not simply be left to bear the burden of a cut to fees that mostly helps higher-earning, mostly male graduates at the expense of middle earners? Can he assure us that any such proposal will have an equality impact assessment?

Does the Secretary of State really want graduates to spend 40 years—almost all their working life—paying off their student debt? Is that what we want for our young people? What is the Secretary of State doing about interest rates that have increased, under his Government’s watch, to over 6% a year?

What are the implications for the devolved nations? How have they been considered? The Secretary of State spoke about the value of degrees. How will that value be assessed? How does he value, for example, courses that lead to vital public sector jobs that are, frankly, underpaid? Does our society as a whole not benefit from all of us having access to learning? Adult education is vital to our economy and society. Who will decide which courses qualify, and how far will the new funding go given the terrible toll of cuts to adult education since 2010?

The review, rightly, acknowledges as a central point the need to reinvest in further education and to integrate the whole system. Does the Secretary of State accept that the base rate funding cut to further education and funding 18-year-olds at a lower rate than 17-year-olds were both crucial mistakes? Underlying all those issues is the threat that instead of investing in the whole system, the Government will play universities and colleges off against each other—the very opposite of the collaboration and integration that is needed. Can the Secretary of State guarantee that he would not rob Peter to pay Paul by transferring resources, but would instead secure proper investment in both sectors? The report is a missed opportunity to re-examine the failures of the past decade’s free market experiment in education. Can the Secretary of State give us any reassurance that yet more college closures are not on the way?

There is much in the Augar review that is welcome, but its shortcomings go back to the limits that the Government placed upon it. The aspirations that both the panel and the Secretary of State expressed for our education system will always come up against the cold hard limits of the austerity that the Prime Minister once promised was over. Instead, it is the Prime Minister who is over.

[Damian Hinds]

I thank the hon. Lady for her questions. She asked a number of times whether I would guarantee to consider x, y or z, and I do absolutely guarantee to consider everything in the report. We will come forward with the conclusion of the review at the end of the year, at the spending review. That has always been the plan.

The hon. Lady asked about timing. If she cares to compare the timing of this review of post-18 education and its financing with that of the Diamond review in Wales, under the Labour Government there, she will find that it compares favourably. Regarding the devolved nations, I confirm that if there are any spending implications in the proposals we make at the conclusion of the review, and given that education is a devolved matter, funding for the devolved nations would apply in the normal way, including through the Barnett formula.

The hon. Lady asked me to commit to not playing off further education and higher education. I give her that absolute commitment. That principle is at the heart of the independent panel’s report: both routes of higher learning are essential for widening social mobility, for letting young people fulfil their full potential, and indeed for enabling our economy and our society to fulfil theirs.

We should not lose sight of the fact that we have a successful system in place, particularly for the financing of higher education. The hon. Lady and her Front-Bench colleagues constantly complain about it, but since the 2012 reforms, resource per student has increased dramatically, the living costs support available to disadvantaged students has risen to its highest ever level, more young people are going to university than ever before, and more young people from disadvantaged backgrounds are going to university than ever before.

Look at the record of the Opposition. Labour vowed to cancel student debt and to make university free, sometimes appearing to forget that there is no such thing as free. We want a well funded higher education and further education sector in this country, and there are only two types of people who can pay for that: the people who benefit from it and the people who do not. Having made that vow, Labour backtracked on its pledge on student debt. No one will ever trust the Leader of the Opposition again on student fees. People know that talk is cheap, but paying the price of broken promises is not.