Further Education Funding

Anne Milton Excerpts

Tuesday 2nd April 2019 Westminster Hall

[The Minister for Apprenticeships and Skills (Anne Milton)]

It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate my hon. Friend the Member for Gloucester (Richard Graham), ably abetted by the hon. Member for Scunthorpe (Nic Dakin), on securing this debate, which follows on from our debate on college funding on 21 January. That 45-odd colleagues attended demonstrates the considerable concern across party boundaries about further education funding. I wonder whether that is a record for a Westminster Hall debate—perhaps the Clerks will let us know.

[Scott Mann (North Cornwall) (Con)]

Will the Minister give way?

[Anne Milton]

Only once—I have a lot to say and not much time.

[Scott Mann]

I am grateful. If the Minister looks around the Chamber, she will see many colleagues who represent areas that have not benefited from globalisation. As we move into a skills-based economy, may I urge her, on behalf of the people of Cornwall, to strengthen every sinew when she goes to the Treasury to argue for this money? We are desperate for these skills.

--- Later in debate ---

[Anne Milton]

I will come to that point in a minute.

[Jim Shannon]

Will the Minister give way?

[Anne Milton]

I would love to give way to lots of hon. Members, but time does not allow. I will make some progress.

FE delivers not only high-quality provision for 16 to 19-year-olds but lifelong learning, which was mentioned briefly. As we heard in a moving story from one hon. Member, it gives people chances to learn that they never had as a young person and the opportunity to retrain when their skills become outdated, to gain higher qualifications and to move along the career path. It also provides patient and caring support for those who are struggling to gain basic skills, opportunities for families to learn together and support for parents to help their children, as we all want to help ours. Although further education’s breadth is its strength, that breadth makes it hard to define: it is not school, but it is not university, so we need to articulate a clear vision.

As hon. Members have noted, funding per student has not kept up with costs. For 16 to 19-year-olds, we have protected the base rate of funding at £4,000 until the end of this spending review period, but that has been eroded by inflation. The Association of Colleges and the Raise the Rate campaign’s funding impact survey report have highlighted many of the issues and financial challenges. Reductions in 16-to-19 funding over recent years have partly been due to falling numbers of students; the number of 16 to 18-year-olds in the population has been falling for 10 years. The level is now 10% lower than in 2008-09, which poses difficult challenges for the sector, but it will start to increase again from 2020.

FE colleges are complex institutions that need to manage ebbs and flows in training provision and finance. On average, vocational courses cost more per student than academic programmes, so we provide more funding for most vocational courses for 16 to 19-year-olds through the programme cost weights. Further education institutions therefore actually receive more funding per 16 to 19-year-old student than school sixth forms, but that is purely a reflection of the greater costs.

I think that the thrust of the message from my hon. Friend the Member for Gloucester was that we need to do more to help our colleges. My hon. Friend the Member for South West Bedfordshire (Andrew Selous) spoke about the productivity potential of people who attend FE and about fairness. My hon. Friend the Member for Colchester (Will Quince) spoke about equality of opportunity; I wonder whether he might send a nice YouTube clip of this debate to the Chancellor, who I am sure would find it riveting. My right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett) rightly noted that, despite it all, 81% of colleges are rated as good or outstanding.

Our debates on FE put the case for it front and centre as a driver of social mobility. Bearing in mind the precious little time we have had today, I am sure that the opportunity for part 2 of this debate will come very shortly. My hon. Friend the Member for Clacton (Giles Watling) and the shadow Minister, the hon. Member for Blackpool South (Gordon Marsden), spoke about T-levels, which will receive an additional £500 million in funding when they are rolled out. In fact, it was in Clacton that I met a woman who said probably one of the most poignant things I have ever heard. She had left school with no qualifications and was a single parent with three children, but she had gone back and done level 2, level 3 and level 4 qualifications. When I met her, she was doing level 5. I asked her why she had done it—what had suddenly inspired her to do it when her children were in their teens? She said, “Because I thought I was worth it.” There is nothing better to hear.

Wages of FE staff are lower than in schools. FE staff are incredibly committed individuals who carry on because of the demonstrable difference that they make to young people’s lives. Further education colleges are independent and set their own wages, but that does not make recruitment and retention any easier.

Differences in life expectancy were briefly mentioned. One of the most significant correlators with poor health is level of education. Better-educated people have better health; I say that as a former public health Minister. The issue needs to be highlighted, and there may be an opportunity to expand this campaign into questions of health—I put that forward as a suggestion, and I am sure that my hon. Friend the Member for Gloucester and the hon. Member for Scunthorpe will take it on board.

One hon. Member spoke about second chances, and we often talk about third or fourth chances. I have had the privilege of seeing those fourth chances change people’s lives.

[Jim Shannon]

I congratulate the Minister and the hon. Member for Gloucester (Richard Graham) on their speeches. One of the great issues in my constituency is mature students who had a family early or who did not have much interest in education at school but pursued an interest in it at a later stage. Further education can give them that opportunity, as it does at South Eastern Regional College in my constituency. Does the Minister agree that mature students need opportunities in the same way that young people do?

[Anne Milton]

Very much so. This is absolutely about those second, third and fourth chances.

My hon. Friends the Members for Winchester (Steve Brine) and for Truro and Falmouth (Sarah Newton), both former superb Ministers, are now putting their weight behind the campaign to raise the profile of FE and highlight just how important it is for the prospects of young and—never let us forget—older people.

I am pleased to hear that my hon. Friend the Member for North Devon (Peter Heaton-Jones) met the Chief Secretary to the Treasury—keep on meeting her. We also heard from my right hon. Friend the Member for Ludlow (Mr Dunne) and my hon. Friends the Members for Cheltenham (Alex Chalk), for York Outer (Julian Sturdy), for Taunton Deane (Rebecca Pow), for Cleethorpes (Martin Vickers), for Stafford (Jeremy Lefroy), for Waveney (Peter Aldous) and for Northampton South (Andrew Lewer), among many others. They all made excellent contributions.

[Rachael Maskell (York Central) (Lab/Co-op)]

I hoped to speak in this debate on behalf of Askham Bryan College and York College, two outstanding colleges in York. I urge the Minister to ensure that further education colleges have a fully professional mental health service, because the levels of self-harm, eating disorders and even attempted suicide are way above the national average. Will she respond to that point?

[Anne Milton]

The hon. Lady is absolutely right. There are younger people, and indeed older people, for whom the school education system has not worked for whatever reason, who probably have a history of failing external examinations and who are often quite vulnerable or have special needs and all the associated problems that go with it.

We are listening to a wide range of feedback from many sources, including hon. Members present, and we are looking at the efficiency and resilience of the FE sector. The post-18 review will take a systematic view of provision and funding across post-18 education. We are also looking at levels 4 and 5, where we know that we need a much wider programme. If I had time, I would love to talk about the national retraining scheme, a partnership between the Government, the TUC and the CBI that we hope to roll out later in the year.

I must say to the shadow Minister that comparing apprenticeships today with apprenticeships before the 2017 reforms is like comparing apples and pears. I know that the apprenticeship system is not perfect, but believe me, in National Apprenticeship Week, I saw the extraordinary progress that has been made in the past year.

I am very aware that there are non-levy employers who are not yet on the apprenticeship service, and I want them to be on it as soon as possible. We are currently at the mercy of procurements and training providers. With procurements it never feels as if we are getting the right answer, but I assure hon. Members that all the levy money is recycled into the apprenticeships system.

I have been to south Devon, Bradford, Uxbridge, Harlow, Gloucester and many other places. Some colleges are thriving and some are struggling, but it is clear to me that they all have a motivation that is rarely seen in any other sector. We have put in £470 million to help colleges to restructure, but until we collectively recognise the added value that FE colleges give us, we will not see the changes in funding that are needed. That is how we give people a chance to turn their lives around and ensure that whatever their background, wherever they come from, whatever their family do and whoever they know, they too can get a great job and a career.

I congratulate my hon. Friend the Member for Gloucester and the hon. Member for Scunthorpe once again on their campaign, and I know that they will now be joined by many others. For me, they are pushing at an open door. Amid the cries for schools funding and the concerns for universities, FE can get lost. However, if we accept not only the personal gain for individuals but the potential productivity gains for the country, the case to the Chancellor is surely clear. With tin hats on, we continue into battle to make the case for further education.