Oral Answers to Questions

Anne Milton Excerpts

Monday 17th December 2018 Commons Chamber

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

The Government’s industrial strategy specifically targets STEM shortage skills. Between 2012 and 2018, entries to A-level maths rose by 25%. It is now the most popular A-level. Exam entries for GCSE computer science have increased from 2013, when it was first examined, from just over 4,000 to more than 70,000 in 2018. That is in part down to the £7.2 million funding that is going into maths hubs. A number of programmes have given STEM a real drive in schools and further education.¹

[Luke Graham]

I recently co-hosted a STEM workshop in Crieff High School in my constituency with the support of the Royal Navy. Will my right hon. Friend meet me to talk about what education opportunities we can provide across the United Kingdom working with educational institutions, the Ministry of Defence, the Department for International Development and the National Citizen Service?

[Anne Milton]

Well done to Crieff High School, the NCS, DFID and the Royal Navy. There is no doubt that weaving education into life jobs and everything we do with young people is how we get results. I would be delighted to meet my hon. Friend any time.

[Antoinette Sandbach]

When I visit STEM businesses in my constituency, I often ask how many of their apprentices are women. They say that there are not enough coming through the pipeline, the same excuse for why they do not have female directors. What is the Minister doing to increase the take-up by women and girls of STEM subjects?

[Anne Milton]

My hon. Friend is right that, without doubt, gender stereotypes affect what young girls do. Those stereotypes are changing because we are making sure that we change them. For instance, since 2010 we have seen 26% more women entering STEM A-levels. However, we recognise that the take-up for physics is notably low and we have put money into the Stimulating Physics Network. I praise hon. Members who have taken part in the Year of Engineering. We know that at primary school girls and boys have similar levels of interest in STEM subjects, but that that tails off quite substantially at secondary school. We are doing research to understand that better.[Official Report, 20 December 2018, Vol. 651, c. 5MC.]

[Jessica Morden (Newport East) (Lab)]

Students from Coleg Gwent had great success recently at the WorldSkills UK competition, including a gold in forensic science, which is a great advert for taking up STEM subjects. Will the Minister join me in congratulating all Welsh students and colleges who did fantastically well across the board in that UK-wide competition?

[Anne Milton]

Yes, I am very happy to join the hon. Lady in congratulating them. Right hon. and hon. Members who do not know anything about WorldSkills should take a look—it is fantastic. I am disappointed that the Scottish Government have chosen not to put in any money, despite its success. WorldSkills is a way of showcasing exactly what young people can achieve.

[Carol Monaghan (Glasgow North West) (SNP)]

I was about to thank the Minister for her positive comments about STEM, however I should point out that the Scottish Government properly fund further education. STEM careers are still not attracting enough young people and we have a continuing need to tap into Europe’s talent streams. Does the Minister share my concern that limited uptake of STEM subjects, now coupled with potential restrictions on EU nationals based on salary, is a serious issue? What discussions has she had with the Home Secretary on keeping the EU talent pipeline open?

[Anne Milton]

It is extremely important that we use talent from wherever it comes. I reiterate that I am disappointed at the Scottish Government for refusing my invitation to put some money into WorldSkills. This is an opportunity to boost engineering careers and choices, particularly for women. I am disappointed in the Scottish Government’s attitude.

[Mr Marcus Jones (Nuneaton) (Con)]

6. What steps his Department is taking to increase the number of good school places in England.

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[Robert Courts (Witney) (Con)]

T8. West Oxford- shire has a plethora of high-tech engineering companies, including ICE Oxford, Polar Technology, Siemens, Owen Mumford, and Abbott. What progress is being made with T-levels to ensure that those vital local employers have access to the local high-quality skills they need?

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

The first three T-levels—digital and construction in particular—are on track for teaching from 2020, and we have recently announced seven more for introduction in 2021. This is the way we build skills—by making sure that pre-16 and post-16 education gives young people the drive, desire and ambition to succeed at whatever level. The industry is a critical component of T-levels, and this will be an ideal opportunity for local employers to build local skills.

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

Over the weekend, the former Universities Minister, the hon. Member for East Surrey (Mr Gyimah), suggested that the Prime Minister was not acting in the national interest. On that theme, the hon. Member for Orpington (Joseph Johnson) has said:

“I was in strong disagreement with keeping foreign students in the immigration cap. The sooner it is dropped, the better.”

I am glad that he agrees with us on that. We have been told to expect the immigration White Paper later this week. Can the Secretary of State tell us whether it will finally take students out of the migration target, allowing the Government to find at least one policy that the majority of this House and indeed the country can support?

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[Rebecca Pow (Taunton Deane) (Con)]

Will the Minister join me in congratulating the fabulous University Centre Somerset, part of Bridgwater & Taunton College, on being awarded centre of the year in the Lion awards for innovation across the centre in learning, vocational courses and apprenticeships? It is a phenomenal establishment.

[Anne Milton]

I will happily join my hon. Friend in congratulating that institution. What a wonderful story it is. Apprenticeships are how we ensure that young people have opportunities that would otherwise not be open to them.

[Ms Karen Buck (Westminster North) (Lab)]

T6. New figures show that primary schools in my borough of Westminster are now operating with one in five places unfilled, meaning that some schools will be threatened with closure. Will the Minister tell us when conversations were last had with the Department for Work and Pensions and the Ministry of Housing, Communities and Local Government to establish why we are exporting families from an area with a surplus of school places to boroughs with a shortage?

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[Tom Pursglove (Corby) (Con)]

A fortnight ago, I was delighted to visit Tresham College in Corby to meet many of its brilliant engineering apprentices. Would my right hon. Friend be willing to join me on another visit to share in that success? What is being done to promote such opportunities more widely?

[Anne Milton]

I would be delighted to join my hon. Friend on a visit to Corby. We are seeing the success that he describes right across the country. It is an awful shame that Opposition Members do not join us in congratulating good colleges on the work that they do.

[Lilian Greenwood (Nottingham South) (Lab)]

T7. My constituent, Keith Tilson, a senior maths teacher in Nottingham, asks:“Given the real-terms funding cuts to schools, growing class sizes, year-on-year decline in properly qualified teacher numbers, and given also the fact that the Government has missed its teacher recruitment targets for the last 6 years, how does he intend to reduce the hours worked by UK teachers, which are the longest in Europe by 20% and the third longest in the world?”

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[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

T10. The “jam tomorrow” approach to the funding of further education is letting down our 16 to 18-year-olds. When will the Secretary of State get a grip, speak to the Treasury and raise the rate? That is the only answer to the crisis we see in further education.

[Anne Milton]

Some £500 million is going into T-levels as they are rolled out in 2020. I have got a grip, as has the Secretary of State, and I would remind the hon. Gentleman that we have put considerable funding into FE. I am very aware of the challenges it faces, which is why we are looking at the resilience of the FE sector right now.

[Several hon. Members rose—]

Improving Education Standards

Anne Milton Excerpts

Thursday 29th November 2018 Commons Chamber

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

I, too, want to pay tribute to some of the speakers in this debate. I must mention the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy), because she is so passionate about this subject that she could have had the whole debate to herself. I also thank my right hon. Friend the Minister for School Standards for opening the debate and setting out all the things we are doing to improve education in schools. I completely reject what the Opposition said. While the Schools Minister and I have different responsibilities in education, we have a shared aim to improve quality and have high standards. I pay tribute to all those who contributed to the debate, and it is clear that everybody has a passion for education and a desire for this county to set high standards of education at every level and to keep on raising those standards.

Let me reiterate some of the improvements that there have been. The phonics screening check has increased since its introduction from 58% success in 2012 to 82% in 2018; that is a 24% improvement. Between 2016 and 2018 the proportion of pupils reaching the expected standards has risen from 66% to 75% in reading tests and from 70% to 76% in maths. [Interruption.] Opposition Members do not like hearing this stuff. Critically, the gap between disadvantaged pupils and others in secondary schools narrowed by 10% between 2011 and 2017.

My right hon. Friend the Schools Minister opened the debate by talking about many of those figures and commenting on the impact of the improvements in teaching and learning. I pay tribute to King’s College in my constituency, which has made a massive improvement. In the words of Ofsted,

“staff have transformed the atmosphere in the school through raising expectations of pupils’ behaviour.”

Principal Alastair McKenzie should rightly, along with the staff, be proud of what he has achieved. My hon. Friend the Member for Harborough (Neil O'Brien) mentioned the need for good behaviour and order in schools, and King’s College shows what can be done when schools put their mind to that.

I praise my right hon. Friend the Schools Minister for the work he has done, and I say to those on the Opposition Front Bench that no one is better read in teaching methods. Against considerable opposition, he has driven ahead, because he, like me, knows that young people and children deserve nothing less.

I am fully aware of the funding pressures in FE. Opposition Members mentioned austerity as if it just dropped on us from the sky; it came upon us as a result of the financial crisis, and Conservative Members do not want our children and grandchildren to be burdened with paying back the debt that Opposition Members would rack up.

The results in FE are very good. Some 82% of colleges are outstanding or good, and the proportion of good or outstanding general colleges has increased from 69% to 76% over the last year, while 83% of sixth-form colleges and 80% of independent learning providers are outstanding or good. Of learners who completed FE courses in 2014-15, 58% got jobs and 22% went into further learning. Some 90% of 16 to 19-year-olds completing level 3 courses at sixth-form colleges and 86% completing level 3 courses at other FE colleges went on to further learning or sustained employment.

The figures are good, but I know that there are significant funding pressures in the FE sector. My hon. Friend the Member for Gloucester (Richard Graham) raised that point, and he, like me, will continue to raise the critical role that FE plays in improving social mobility, giving younger people a chance and older people a second or even third chance. FE plays a critical role in productivity and improving social mobility, and I am sure hon. Members will not hesitate to highlight that to the Chancellor.

I want to mention two things that are behind many of the reforms we have made in apprenticeships and technical education. The Richard review in 2012 said that apprenticeships should be redefined, that the focus should be on their outcome, that they should recognise industry standards and that it should be clearly set out what apprentices should know. It also stated that apprenticeships should be meaningful and relevant for employers, that apprentices should have achieved a level 2 or 3 in English and maths before they can complete their apprenticeship, be it in functional skills or at GCSE, and that some off-site learning was essential, with a minimum duration of a year. We have ensured all those things.

Apprenticeships are available to all, at every level from level 2 to level 7, with 20% of the learning off the job and a meaningful assessment at the end, which gives apprentices a currency that they can take to future employers. It is critical that we get them right. In fact, there is a tsunami of apprenticeships coming. I recently visited an NHS trust that is now spending 20% of its levy, and it will be spending its levy out by 2020. That is the way we can get the skills this country needs and give young people—and, indeed, older people—the opportunities they need.

I also want to mention the Wolf review, which made a number of findings and conclusions regarding vocational and technical education. Those findings have largely guided many of the reforms, along with the work that Lord Sainsbury has done. It is vital that we take this once-in-a-lifetime opportunity to get technical education right. The introduction of T-levels will be critical to ensuring that we have technical qualifications that are on a par with academic qualifications. I have mentioned the contribution of Lord Sainsbury, which, along with the work of the Gatsby Foundation, has guided much of our work on the forthcoming T-levels. As I said, this is a once-in-a-lifetime opportunity for change.

I want to mention a number of the contributions that have been made today. My hon. Friend the Member for Stafford (Jeremy Lefroy) never misses an opportunity to praise those working in the public sector. He mentioned exclusions, and I know that a review is being led by Edward Timpson, who spent a long time as a Minister in the Department for Education. That review will be reporting in the new year. The hon. Member for Kingston upon Hull West and Hessle made many contributions, and I know that she will use every opportunity to raise the issue of further education funding. Her college has been through a difficult time, but it has had considerable financial support. The bit that frequently gets missed is the £330 million that we spend on supporting the FE sector. There is more to come down the line, and that funding is critical to getting colleges such as hers back on track.

My hon. Friend the Member for Harborough raised a terrible incident of bullying in his constituency. Hearing about it today bears no relation to how terrible the impact is when we watch it online. Relationships and sex education and personal, social, health and economic education have a role to play, and he also mentioned the role of behaviour in schools in young people’s lives. That is indeed critical, as are many other issues.

My hon. Friend was appropriately moved by those who have turned around the lives of young people. I have the best job in the Government, because I spend my life doing things like attending the national apprenticeship awards, which I did last night, and hearing stories of young people who have turned their lives around —who have had that second, third or fourth chance and have got an apprenticeship and some qualifications so that they can start a life that they never would have thought possible when they left school.

The hon. Member for Kingston upon Hull West and Hessle also paid considerable attention to off-rolling, and I know that my right hon. Friend the Minister for School Standards would be happy to meet her to talk about that. He was not present in the Chamber at the time, and I am sure that she would like a more detailed conversation.

The hon. Member for Lewisham, Deptford (Vicky Foxcroft) was absolutely right to say that education is at the heart of so much. As a former Public Health Minister, I know that education correlates more closely to health than to many other things. She also mentioned crime, and we have much to do in that area. We have a project running in five cities, including Leicester, the west midlands, Manchester, Leeds and London. I have been listening to the details of the work that is being done down in Bristol, which has been brilliant in increasing diversity and turning young people away from crime.

In closing, I must mention a couple of issues briefly. We all face a world, politicians as much as anybody else, in which our lives are dominated by social media. It is not only the children who are affected; the problems that teachers face are not dissimilar to those facing their pupils. A number of Departments are working to ensure that the impact of social media on all our lives is reduced, because its adverse effects on mental health and the stresses it brings are truly dreadful in some instances.

I must also mention the role of WorldSkills. You might not be familiar with it, Mr Deputy Speaker; I suggest you go to the website. WorldSkills sees 50 or 60 countries competing in a similar number of disciplines, with some of the national winners coming from our devolved Administrations. I am particularly disappointed that the Scottish Government are not going to contribute financially to WorldSkills, particularly bearing in mind the success of some of the young people in Scotland.

My right hon. Friend the Member for Chipping Barnet (Theresa Villiers) highlighted the successful performance of young people and the improvement of many. Like me, she sat on the Opposition Benches during the Blair and Brown years, when performance most certainly did not match the words that we heard from the then Government—there was nothing on further education or technical education, just a lot of political rhetoric, I am afraid.

My hon. Friend the Member for Hendon (Dr Offord) raised some of the issues around teacher recruitment. I know that the Schools Minister would be happy to meet him again, but he is right that social mobility is at the heart of why we need good-quality education.

I do not blame the current Opposition Front Benchers—they possibly were not involved at the time, and I am much older than many of them—but I do blame the Labour party of all those decades ago for how we saw children’s education sacrificed to pursue political ideology. I remember—[Interruption.] Opposition Members say it is nonsense. I remember the Inner London Education Authority, which banned punctuation, banned grammar, banned capital letters and refused to let the police into schools. All of us on the Conservative Benches involved in education—I also give considerable praise to our officials in the Department—want to make sure that, wherever someone comes from and whoever they know, everybody gets the chance to get on in life that they deserve. We will never cease in our mission to make changes, refine what we are doing and take on political rhetoric and ideology to make sure that young people get the education that they deserve.

Question put and agreed to.

Resolved,

That this House has considered improving education standards.

College of West Anglia and Worksop Football Academy

Anne Milton Excerpts

Monday 26th November 2018 Commons Chamber

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

I congratulate the hon. Member for Bassetlaw (John Mann) on securing this debate. As he knows, I really appreciate him raising his concerns with me about the educational provision delivered by the College of West Anglia at Worksop Town football club. We have discussed this case on several occasions, and he has taken a close interest in the investigation undertaken by the Education and Skills Funding Agency. When things go wrong, it is critical that, first, we do all we can to put them right—we cannot always do so, and we cannot turn back the clock—but equally important, as he rightly said, we need to look back and learn lessons to prevent them from happening again. He is right that this case has wider implications beyond those confined to Worksop Town football club and the College of West Anglia.

Subcontracted provision needs careful management. The ESFA allocates £5.7 billion annually to provide study programmes for young people. It is very important, as the hon. Gentleman said, that public funds are appropriated correctly with the interests of our young people protected. As he is aware—I hope he will forgive me if I mention a few things that it is quite important to put down for the record—the programme at Worksop Town football club was completed in 2016, and the College of West Anglia independently took the decision to terminate its contract with the subcontractor, GEMEG, from July 2016.

Once the concerns about the provision were brought to our attention, we commissioned an investigation, but it was the hon. Gentleman’s efforts that brought this to a head. In June 2018, we published the findings, so that all in the sector can learn the lessons of this case. The hon. Gentleman was persistent in getting to the bottom of this case. It was clear that the original ESFA draft investigation report was not as comprehensive as it should have been, and his insistence has ensured that a full and proper report has now been published.

We are clear that the arrangement between the college and the subcontractor was unacceptable. The investigation highlighted that the college needs to carry out a full review of its subcontracting controls and assurance systems and processes. That must include the college’s process for monitoring subcontractors, as well as subcontractors’ methodology for conducting enrolment, induction and initial assessment of learners.

As a result of the investigation, the College of West Anglia is barred from starting any new subcontracting arrangements for 16-to-19 learners until the ESFA is satisfied that all the proper procedures are in place. The ESFA continues to monitor progress against the college action plan, but it is not yet satisfied, and the bar on new 16-to-19 subcontracting remains in place.

The hon. Gentleman raised a number of questions. He talked about the purchases that young people were required to make. Young people are quite vulnerable. In fact, they were not required to purchase sportswear that was not necessary for their learning programme, but the fine definition of that might well have been lost to some of them. Critically, the use of taxpayers’ money comes into question, but as important are the young people who have been let down, and sadly we cannot turn the clock back on that. The ESFA has subsequently clarified the funding rules to ensure that in future, that distinction is made clear to students who undertake studies as part of the sports academy, so that they fully understand what is and is not essential to the completion of their programme.

The hon. Gentleman raised questions about whether students received support funding to which they may have been entitled, in respect of expenses incurred. The investigation found that some students did receive payments of bursaries. However, it is clear that the College of West Anglia and GEMEG could have done a great deal more to make learners aware of funding support, in particular helping them to evidence their eligibility to make a claim.

I commend the hon. Gentleman for his quest for answers, with the most serious question he raises being about the safeguarding of young people; nothing is more important. The investigation fully explored that area and was able to conclude that all teachers who worked with the learners had been CRB—now DBS—checked. No allegations of breaches of safeguarding were reported to the College of West Anglia while this provision was being delivered.

[John Mann]

I commend the Minister for her work and her approach throughout this unhappy episode. Safeguarding does not protect the young people who are put in the position of training four or five-year-olds without having the competence or accreditation to do so. I am pleased to inform her that Nottinghamshire County Council has agreed that a gold-plated qualification on top of all existing requirements is now the aim for anyone who does sports coaching in schools in Nottinghamshire. Is that not a great step forward?

[Anne Milton]

It is an important step forward, and I congratulate Nottinghamshire County Council. Safeguarding and anything to do with the training of young people should be gold-plated; it is as simple as that. Nothing less than the best will do, particularly in this day and age, when we hear of so many cases where things have gone wrong.

As a result of this case, the College of West Anglia is prevented from entering into any further subcontracting arrangements until it has provided evidence of independently verified improvements in its arrangements for control and quality assurance of subcontracting and has systematically addressed all the recommendations in the report.

This is a worrying case, and the report reached a number of conclusions highlighting areas of concern about where controls were simply completely inadequate. However, the lessons learned are being used to improve the experience for learners. The ESFA has revised its guidance and rules on subcontracting. It has also set in motion a wider review of its monitoring and enforcement of subcontracting rules across all post-16 funding. That review is due to reach its conclusions shortly, and it is already highlighting areas where we can learn lessons from such cases.

From 2019, the ESFA will introduce an annual review of subcontracting for all providers that subcontract. That will look across ESFA programmes, including 16-19 funding, the adult education budget, apprenticeships and the European social fund. It will protect students by looking for signs of non-compliance and checking with main providers that the rules are being followed. It is all very well to have rules, but one actually has to check that they are followed.

It is vital that directly funded organisations properly monitor and control all subcontracted delivery. They must ensure that safeguarding is rigorously policed, that students enjoy the same entitlements as those learning in schools and colleges, and that their education is of high quality. There are huge opportunities for young people if this is done well.

Linked to this case, the ESFA has taken the opportunity to review and strengthen the funding guidance for subcontracting and how it relates specifically to sports academies. Specifically, the rules state it is essential that the delivery of the ESFA-funded programme and the delivery of the academy or club’s activities are distinct from each other and, critically, that students understand the rules and requirements pertaining to each. The rules have been strengthened to emphasise that directly funded institutions are responsible for all aspects of provision delivered under subcontracting arrangements.

We have met the Football Association to raise concerns about the risks associated with sports academies. The ESFA continues to work with the FA to ensure that the rules outlined in the guidance to their football clubs and academies are in place for the next academic year. ESFA officials have worked with the FA and developed a quality assurance framework for football clubs, which is a big step forward, and we will continue to work with them.

I commend the hon. Gentleman for his efforts to pursue this case.

[John Mann]

The FA, at an appropriate level, has been happy to meet me, and I believe it remains happy to do so. The Minister and her officials have—I think, on six occasions—deigned to meet me and have had the joy of doing so. Does she not think it is appropriate for the College of West Anglia also to enjoy the opportunity of at least one meeting with me to discuss this situation?

[Anne Milton]

I always enjoy the opportunity to meet the hon. Gentleman. In fact, I have to say to him that, as he is possibly aware, many Members of the House would perhaps have fallen at the first or second hurdle, but he persists and it is such persistence that gets results.

This is a complex situation that requires persistence and tenacity. I know that at heart what drives him is the fact that learners are being let down. That is what this is all about. It is important that we make good use of taxpayers’ money, but it is the young people who suffer if we do not get it right.

The hon. Gentleman and I have a shared commitment to seeing that all young people receive a high-quality education and are safe while they do so. I am enormously grateful for the support he has given to me and my officials. He has raised important concerns, and I hope he is happy that I echo them on behalf of the Government. The steps we have taken underline the importance we place on learning lessons from this case. Where there is Government money, there will always be people trying to get around the rules—as I said in Committee recently, there are vultures out there waiting to take that money for less effort—but I hope we can move forward, that lessons have been learned and that this is an end to this sorry tale.

Question put and agreed to.

Apprenticeships

Anne Milton Excerpts

Monday 19th November 2018 Ministerial Corrections

[Damian Green (Ashford) (Con)]

22. What steps his Department is taking to improve the quality of apprenticeships.

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

Apprenticeships are now of high quality, with more off-the-job training and holistic end-point assessment. This ensures that, at the completion of an apprenticeship, the apprentice can demonstrate that they have the skills, knowledge and behaviours for their existing employer or a new employer in the future. Forty-four apprenticeships are now at the new higher-quality standard, and training is up from 540 hours to 670 hours, which is a 20% increase—well ahead of where we thought we would be on quality.

[Official Report, 12 November 2018, Vol. 649, c. 2.]

Letter of correction from the Minister for Apprenticeships and Skills:

An error has been identified in the response I gave to my hon. Friends the Members for Thirsk and Malton (Kevin Hollinrake) and for Redditch (Rachel Maclean), and to my right hon. Friend the Member for Ashford (Damian Green).

The correct response should have been:

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

Apprenticeships are now of high quality, with more off-the-job training and holistic end-point assessment. This ensures that, at the completion of an apprenticeship, the apprentice can demonstrate that they have the skills, knowledge and behaviours for their existing employer or a new employer in the future. Forty-four per cent. of apprenticeship starts are on the new higher-quality standards, and training is up from 540 hours to 670 hours, which is a 20% increase—well ahead of where we thought we would be on quality.

Oral Answers to Questions

Anne Milton Excerpts

Monday 12th November 2018 Commons Chamber

[John Mann (Bassetlaw) (Lab)]

1. What discussions he has had with West Anglia College on his Department’s document “Investigation Report: the College of West Anglia”, published in August 2018.

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

The Education and Skills Funding Agency has been clear that West Anglia College cannot undertake any further subcontracting until the ESFA is satisfied that all the proper procedures highlighted in the report are in place. Frequent dialogue with the college continues, and I will keep the hon. Gentleman informed. I praise him for his tenacity in highlighting this issue.

[John Mann]

West Anglia College is avoiding me. Some £160,000-worth of taxpayers’ money, yet not a single student—all from my constituency—is fulfilling and passing the course. The college did not even know that the course was taking place 50 miles away from where it thought it was taking place. Is it not incumbent on the college now to attend a meeting and to pay back the money that has been lost by some of my constituents, in terms of facilities and expenses, because of the shambles delivered by West Anglia College?

[Anne Milton]

The hon. Gentleman’s term “shambles” is not inappropriate. This has been a shocking case, and it is from such cases that we learn lessons to make sure that it does not happen again. He talks about paying the money back, and I am sure the ESFA is looking at all possible options to make sure that his constituents are well served.

[Mr Speaker]

I have a feeling the hon. Member for Bassetlaw (John Mann) might seek an Adjournment debate on the matter. Who knows, he might be successful.

--- Later in debate ---

[Damian Green (Ashford) (Con)]

22. What steps his Department is taking to improve the quality of apprenticeships.

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

Apprenticeships are now of high quality, with more off-the-job training and holistic end-point assessment. This ensures that, at the completion of an apprenticeship, the apprentice can demonstrate that they have the skills, knowledge and behaviours for their existing employer or a new employer in the future. Forty-four apprenticeships are now at the new higher-quality standard, and training is up from 540 hours to 670 hours, which is a 20% increase —well ahead of where we thought we would be on quality.[Official Report, 19 November 2018, Vol. 649, c. 6MC.]

[Kevin Hollinrake]

Derwent Training Association in Malton in my constituency offers very high-quality precision engineering apprenticeships, but too often it comes up against headteachers who would rather see their students go to university. What more can we do to make sure that schools promote high-quality apprenticeships?

[Anne Milton]

We have a lot more to do; there is no doubt about it. Wherever I go, I often hear from student apprentices who say that they had very little support from their school. Since January 2018 schools are required to allow technical education and apprenticeship training providers to come in to talk to pupils, and our apprenticeship support and knowledge project provides schools with resources to help them promote apprenticeships. The apprenticeship ambassador network also visits schools so that pupils can hear at first hand about the fantastic opportunities that an apprenticeship can bring.

[Mr Speaker]

I call Rachel Maclean. [Interruption.] Beetle in, beetle in. It is very good of the hon. Lady to drop in on us. I hope she was advised of the grouping by the Government—I am sure she was. I hope she is now ready, as I have given her a bit of injury time.

--- Later in debate ---

[Rachel Maclean]

What steps is the Department taking to improve the quality of apprenticeships?

[Anne Milton]

I do not want to fluster my hon. Friend. The Department is doing a great deal to improve apprenticeships. It is important to make sure that apprenticeships offer high-quality education that rivals that of our universities, so we are doing exactly that. There is no doubt that apprenticeships are already offering such education. We have a £10 million development fund available to develop degrees at a high level, and apprenticeship starts at high levels continue to grow—up almost 30% on last year.

[Damian Green]

Many large firms in my constituency, notably Premier Foods, have great apprenticeship schemes and are using the new system very creatively to improve the quality of those apprenticeships, but it is often more difficult for small companies to do the same. What steps is my right hon. Friend taking to ensure that small businesses can benefit from apprenticeships as much as large businesses do?

[Anne Milton]

I congratulate Premier Foods on what it is doing in my right hon. Friend’s constituency. Levy payers can already transfer up to 10% of their funds to other employers, including SMEs, and we are increasing that to 25% from next year. SMEs have taken longer to put in place their apprenticeship programmes, although many have already grabbed the opportunity.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I apologise to the Minister for not being able to welcome her on her visit to Huddersfield and to Kirklees College? It was a very good visit and was well received, but did she talk to the principal about what is happening up and down the country, where so many people want to get on quality apprenticeships but cannot get the GCSE in English or in maths? Surely there should be a practical maths and practical English so that these kids can get the education they deserve.

[Anne Milton]

I had a wonderful visit to Kirklees College and I was impressed with all I saw there. It is important that young people have a grounding in English and maths. I know this is difficult for some young people, and we are doing a great deal to improve the teaching of maths. Where people have failed after all those years in school, we cannot just go on doing the same thing. We have the opportunity to offer functional skills, which offers those young people an alternative way of getting a good qualification in maths.

[Sir Vince Cable (Twickenham) (LD)]

A very successful Queen’s award-winning company in my constituency provides examinations and training standards throughout the world in contemporary music, but it cannot provide these apprenticeship standards in the UK because of the Government’s rigidity in not allowing them or providing them in industries with a lot of freelance workers. Can the Minister address that problem?

[Anne Milton]

Yes, I can. The right hon. Gentleman perhaps ought to know that I have continued contact with my fellow Ministers in the Department for Digital, Culture, Media and Sport, because this issue is important. We are not being rigid. There are ways around this, and I had a recent meeting to discuss exactly this point. It is important for the industry to get together and talk to the Institute for Apprenticeships, because there are ways around this.

[Mr Jim Cunningham (Coventry South) (Lab)]

How can we improve the quality of apprenticeships when further education—or certainly Coventry College—has had a 30% cut? What is the Minister going to do about it?

[Anne Milton]

By 2020, there will be £2.5 billion available for apprenticeships. In fact, a lot of apprenticeship training is done by independent training providers, so I urge all further education colleges to make sure they get involved and take up the opportunity that the levy money makes available.

[Mr Edward Vaizey (Wantage) (Con)]

Surprisingly, my question is a segue to that asked by my old boss, the right hon. Member for Twickenham (Sir Vince Cable). Apprenticeships are a great success story for this Government, although they are being terribly undermined by the clunking fist that is the apprenticeship levy. Will the Minister look specifically at the position in the film industry, where apprenticeships do not last the standard length of time? When people are apprentices on a film production, it might last only three months. There needs to be some flexibility in order to support apprenticeships in our award-winning creative industries.

[Anne Milton]

Although I often agree with my right hon. Friend, I disagree entirely with his description of the apprenticeship levy as a clunking fist. It is what has driven all the improvements and is part of the reason we have the £2.5 billion available. I am very aware of the issues in the film industry. I have had several meetings with people from the industry and we are working with it to make sure that where people are working on a contract, or are not on a permanent contract, apprenticeships may be available.

[Maggie Throup (Erewash) (Con)]

3. What steps his Department is taking to improve social mobility.

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[Karin Smyth (Bristol South) (Lab)]

15. What recent assessment he has made of the adequacy of funding for further education.

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

We are working closely with the Treasury, as finance has been challenging for further education colleges, and this work will continue in preparation for the spending review. We are also undertaking a look at the resilience of the sector to make sure that the regulatory structures and funding give us the high-quality provision that we want to see. I have mentioned the £2.5 billion that will be available by 2020 for apprenticeship training. When T-levels are fully rolled out in 2020, there will be an additional £500 million a year.

[Scott Mann]

I thank the Minister for that response. As we approach the spending review, may I emphasise, particularly from North Cornwall, the passion and drive that we need to make sure that this money does go into further education? In the post-Brexit world we will be living in, it is more important than ever that our young people have the skills to benefit, so can we make sure that we push the Treasury hard on this?

[Anne Milton]

My hon. Friend is a doughty champion for those in his constituency. Education is crucial, and we need to help young people to acquire the skills to thrive in life and work. For many, further education offers a second, third or even fourth chance, so it is important that we make sure they have the resources they need. Sadly, further education often gets squashed between the discussion about schools and that about university. I know my hon. Friend will be making his own representations to the Treasury.

[Karin Smyth]

We have had an interesting half hour. We are being told that funding in this sector is tight and not protected. We have just been told that this is the second, third or fourth chance for people in this sector. Given that young people have to stay on until 18, what assessment has been made of the impact of the reduction in income to the further education sector on their outcomes under this Government?

[Anne Milton]

As the hon. Lady will have heard, we are looking at the resilience of the sector. I mentioned the £2.5 billion by 2020 and the £500 million for T-levels. There is a lot of work going on to ensure the sector has the resources it needs. Colleges are delivering extraordinarily high-quality training and education—three-quarters of colleges are good or outstanding—and they have high-quality financial management. We put a huge amount of money into restructuring, with exceptional financial support for this sector. A number of pots of money are now being made available to increase the number of teachers in further education.

[Gordon Marsden (Blackpool South) (Lab)]

The Minister says she has been working very closely with the Treasury, but it seems as though they are close encounters of the failed kind. FE’s financial woes are now at crisis. She knows that the Institute for Fiscal Studies says that spending is down by £3.3 billion since 2011. She knows that a stream of departing principals highlight the problem: 37 colleges on notice to improve their financial health. Now, Ofsted’s chief inspector says funding cuts are affecting FE’s sustainability. Before the Budget, the Minister urged everybody in FE to speak up for funding. They did with one voice through the brilliant Love our Colleges campaign, but the Chancellor ignored them. How is she going to address the crisis now that the Treasury has cold-shouldered FE?

[Anne Milton]

I will not attempt to compete with the hon. Gentleman’s jokes about close encounters. I do not agree that we have been given the cold shoulder. We are looking at the resilience of the sector. I made it quite clear that I am fully aware of the challenges that FE faces. We have been putting in a lot of money, but I know that in the longer term we have to ensure that the core funding allows FE to deliver the high quality education that young people and, indeed, older people need.

[Greg Hands (Chelsea and Fulham) (Con)]

9. What steps his Department is taking to increase the number of new schools in (a) London and (b) England.

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[Justine Greening (Putney) (Con)]

Every year, we rightly celebrate the achievement of students getting their A-level results. Will the Secretary of State set out a plan to bring forward a similar celebration for young people and their achievements in vocational qualifications as well?

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

I thank my right hon. Friend for that question. She is absolutely right that a lot of coverage is given to A-level and GCSE results, and that very little is given to all the other vocational qualifications. We must ensure that we do everything to encourage the media to do more to highlight those achievements as well.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

T10. Children in Hackney with special educational needs have had their support protected because Hackney Council found funding from other sources to backfill the cuts in Government funding, but after cuts of 40% to the borough’s budget, and with £30 million-worth of cuts still to come in the next four years, that is now being stretched. Will the Secretary of State commit to ensuring that children with special educational needs get the full support that they need for the rest of their lives?

--- Later in debate ---

[Paula Sherriff (Dewsbury) (Lab)]

There was not a single penny in the Budget for further education—a sector that has lost a quarter of its funding since 2010. What does the Minister say to Greenhead College, which serves my constituency and has written to me to say that it fears it will not be able to provide the education that our young people deserve if cuts continue?

[Anne Milton]

We have protected the base rate of funding for FE colleges. I have said before that we are looking at the resilience of the sector. I would be happy for the college to contact me, so that we can discuss what steps might be taken. The strategic college improvement fund and a number of other funds are available to help colleges to improve.

[Robert Neill (Bromley and Chislehurst) (Con)]

We have excellent academy schools in Bromley, but we have been badly let down by the failings, unveiled by the Education and Skills Funding Agency, in the Education for the 21st Century trust. Will my right hon. Friend meet me urgently to discuss the findings of the ESFA report, and in particular the extraordinary circumstances where the chief executive who presided over and profited from these failures has been allowed to remain in post as headteacher of one of the largest schools?

Draft Further Education Bodies (Insolvency) Regulations 2018

Anne Milton Excerpts

Wednesday 31st October 2018 General Committees

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

I beg to move,

That the Committee has considered the draft Further Education Bodies (Insolvency) Regulations 2018.

It is a pleasure to serve under your chairmanship, Mr Stringer. The regulations were laid before the House on 5 September. Along with the education administration rules that are due to be laid before Parliament next week, they are the final part of the legislation needed to bring into force the new insolvency regime for the further education sector. I shall set out the context of further education insolvency before we discuss the detail of the regulations.

Further education and sixth-form colleges are statutory corporations governed by the Further and Higher Education Act 1992. They are exempt charities, with the Secretary of State as principal regulator. They enjoy a high degree of operational autonomy and are independent of Government. They appoint their own governors; they make commercial decisions; and they can borrow, invest and set up companies. In this way, FE bodies can develop high-quality provision that best meets local needs for the area they serve, whether that is apprenticeships for local businesses, support for students struggling with maths and English, the new T-levels, or in future the national retraining scheme.

Three things are particularly important to the financial resilience of the FE sector. First, we need a sufficiently funded sector. I am very aware that there are challenges, but they are not the subject of the debate. Secondly, the sector should have outstanding leadership. There are some exceptional and committed governors and principals in the college sector and I pay tribute to their work. We want every college to have great leaders, both principals and governing bodies. We have been supporting the sector so that it can improve and so that all colleges benefit from the great leadership they need in difficult times. We want leaders to spread best practice and provide mentoring to weaker colleges to help them to improve and strengthen. We have a group of national leaders of further education and are recruiting a group of national leaders of governance—experienced governors and clerks who will help to build up the expertise of other governing bodies.

Thirdly, a resilient sector is structured and organised effectively. The area review process that began in 2015 made great strides towards achieving that. In some cases, the reviews led to recommendations for structural change, which are being implemented. We have provided significant financial support to help colleges implement the changes through the restructuring facility. Since 2016, we have made more than £330 million available through that route to support major college restructuring, supporting significant improvements to financial sustainability in the sector. The deadline for the restructuring facility has passed. We are considering the final applications and expect the final figure to rise significantly before the programme ends in March 2019.

[Stephen Timms (East Ham) (Lab)]

I am listening carefully to the Minister. Does she accept that college funding has not increased in cash terms since 2013, and that that has made the likelihood of insolvency, which the regulations address, much greater?

[Anne Milton]

I am very aware of the issue of college funding. We are doing a piece of work on the FE structure to make sure that it is sustainable in future. As I have said, we have put significant amounts of money into FE to make sure that we get the structure and college mix right. We want to make sure that each college has the opportunity to make an independent offer to young learners and prove its financial sustainability. I am sure that, like other Members, the right hon. Gentleman will continue to make representations to the Chancellor ahead of the spending review in 2020.

We wanted to make sure that, once the area reviews were completed and the restructuring facility had closed, there was a new robust set of arrangements in place that recognised college autonomy, enabled FE leaders to manage their college finances and provided support for students in the event that something went wrong. In particular, we wanted to avoid a chaotic failure in the event that a college ran out of money. That was why we announced in 2016 plans to introduce an insolvency regime for the sector. The main provisions for the regime are in the Technical and Further Education Act 2017 and were debated in both Houses when it went through Parliament.

The legislation was introduced to address uncertainty on whether insolvency law applied to FE bodies. The new regime puts in place an orderly process for managing a college insolvency. It delivers a special administration regime known as education administration, which prioritises the protection of learner provision in the unlikely event that a college becomes insolvent.

The regime will give the Secretary of State the power to apply to court for an education administration order. That could happen either in response to an FE body facing insolvency proceedings or if the Secretary of State is persuaded that the FE body is insolvent and that applying to court for an education administration order is the best course of action. At the heart of education administration is the special objective to avoid or minimise disruption to the studies of existing students of the FE body as a whole while ensuring that the education administration is no longer than it needs to be, which is beneficial for both students and creditors. That is what we mean by the protection of learner provision. In contrast, when a business becomes insolvent, the purpose is to get the best deal for the creditors.

The 2017 Act applied certain provisions of insolvency law to the FE sector, subject to modifications that were set out in the Act and that are specified in the regulations we are debating. The regulations modify insolvency provisions in the Insolvency Act 1986 and other legislation to make them work effectively for further education bodies. The regulations are necessary to ensure that the insolvency regime for the FE sector functions properly.

A further piece of legislation will be needed before the special administration regime can be enacted—a statutory instrument setting out the rules that apply to the education administrator’s conduct of an education administration. That legislation will follow the negative procedure. I would be very happy to meet the hon. Member for Blackpool South to discuss the details in further depth.

The insolvency regime is designed to provide certainty to creditors and to the further education sector. It is not certain under the existing legislation what would happen if a college became insolvent. This regime clears that up. It includes the special administration regime to protect provision for existing learners at a college in financial distress. It will not exist as a mechanism to summarily close colleges. Rather, it will be a device to deal with extreme circumstances.

The insolvency regime will sit within a wider financial intervention system, providing a structured and measured approach to preventing and responding to failure. Leaders that manage their colleges effectively will be key to preventing financial distress. This wider system will start with the monitoring of colleges that are experiencing difficulty. If things get worse, there will be a wide range of intervention tools. The insolvency regime is the mechanism of last resort and we would expect it to be used only rarely. However, it will be used if necessary for an orderly process to manage financial distress and protect learner provision. It is important to stress that, when a college becomes insolvent, it will not necessarily lead to provision being closed. Indeed, in some cases, students may barely realise that there has been a change, but our hope would be that they ended up in a more financially resilient college.

The regulations modify provisions in the Insolvency Act 1986 and legislation made under those provisions so that they apply effectively to college corporations. That not only ensures that the regime works technically, but deals with practical issues. For example, as autonomous entities, FE bodies have the power to amend their instruments and articles—it is a bit like a company’s articles of association—following incorporation to better suit their operational needs. The regulations make provisions that might not be contained in those instruments and articles but that are necessary for managing insolvency proceedings. For example, if there is no provision for meetings of governors as required by insolvency legislation, the regulations provide it to ensure that insolvency proceedings can run smoothly.

The regulations also set out provisions for filing documents with Companies House so that insolvency procedures are transparent for further education corporations, as they are for companies. I have stressed the importance of strong leadership to improve financial resilience. Governors, as charity trustees, have responsibilities for good financial management and prudence in the colleges that they run. We are finalising the preparation of guidance for governors on their duties and liabilities, reminding them, through revised general guidance, of their responsibilities, and explaining the position on insolvency so that they are clear about how the legislation affects them and staff in the college.

Support is available through the Inspiring FE Governance service to help colleges to find people with the right skills to join their governing bodies, including chairs of finance committees. We are extending investment in leadership and governance development programmes, including working with the Education and Training Foundation on a tiered programme of development for governors. That will include support on financial management duties and insolvency.

The regulations exempt student governors from certain offences and from duties that will be required of other college governors so that insolvency proceedings work effectively. It would be unlikely that student governors would have a meaningful say in decisions that gave rise to the offence, so it would not be right to expose them to liability.

More often than not, college articles exclude student governors under the age of 18 from voting on decisions about spending money and contracts. If they cannot have a say in financial decisions, they should not be liable for offences linked to those decisions. It would also be unreasonable to expect student governors to comply with some duties expected of other governors—for example, to prepare a statement of the affairs of the college corporation for an administrator or liquidator that included a summary of the corporation’s assets, liabilities and details of its creditors. However, all governors, including student members, will be expected not to make false statements when they make returns, and all governors are expected to co-operate with the insolvency practitioner to allow insolvency proceedings to be concluded efficiently.

Part 3 of the regulations modifies provisions of the Insolvency Act 1986 and the Insolvency (England and Wales) Rules 2016 as they apply to FE bodies that are statutory corporations. Part 4 applies provisions of other legislation relating to insolvency to FE bodies, subject to modifications. For example, the Land Registration Rules 2003 need to be modified in their application to FE bodies to allow references to “company” to include references to “statutory corporations”, which means that the provisions will operate correctly. That will enable the Land Registry to make an entry in the register that an administrator or liquidator has been appointed over a statutory corporation.

Similarly, part 5 modifies provisions of the Companies Act 2006, applied to statutory corporations by regulation 3, to ensure that they work effectively for FE bodies that are statutory corporations, allowing registration of key insolvency documentation with the registrar of companies.

Let me provide assurances about the process we have taken to get to this point. We carried out consultation on the policy adopted in the regulations to be certain that the insolvency regime delivers for the sector. We spoke to insolvency practitioners, lenders, colleges and organisations that represent the sector, including the Association of Colleges and the Sixth Form Colleges Association. We consulted in summer 2016 prior to the introduction of the Technical and Further Education Act 2017, and again as I described earlier. We have also worked closely with both Companies House and the Insolvency Service to ensure that the regulations are fit for purpose and that they do not depart from the standard approach to insolvency proceedings. The regulations apply to FE bodies and companies conducting designated further education institutions in England and Wales. Welsh Ministers are fully supportive of the approach taken in the development of this legislation.

The regulations contain the technical detail necessary to bring into force the FE insolvency regime, including education administration. They are required to deliver much needed protection of learner provision effectively in the unlikely event of an FE body becoming insolvent, and I commend them to the Committee.

--- Later in debate ---

[Anne Milton]

I hope that I can deal with all the issues that the hon. Gentleman has raised. If I miss anything out, I hope that hon. Members will let me know and I will come back to them, but I think I can answer most of the points that were made.

The hon. Gentleman made some important points. He pointed out that the situation colleges are in is due to legislation passed in 1992, when I was not a Member of Parliament. A long time has lapsed before anybody got round to dealing with this. The previous three Governments, one of which was Labour, did not address this. Although I was not in post when the area review process was kicked off, at that time sharp focus was put on the fact that an insolvency regime was needed for FE colleges, to make sure that the process was orderly and, critically, to make sure that learners were protected.

The hon. Gentleman mentioned the group of people who would be affected, including the staff. We think of teachers, but there are also ancillary staff and everybody else, and that is why this must be done in an orderly fashion.

Nothing has been more at the forefront of my mind in the time I have been dealing with FE colleges than the insolvency regime that is coming down the tracks. The number of colleges that have problems is not a guesstimate. I meet weekly with the FE team. I meet frequently and regularly with the FE commissioner and a great deal of his work has been directed at colleges that are not in trouble, but where the books suggest that there might be a problem. The idea of the FE commissioner’s team is to get in early and give them the support they need in order to balance the books.

In a debate such as this, the danger is that we forget that there are some excellent colleges, so I asked my officials to obtain two examples. Walsall and York are both outstanding for financial management and quality. I am fully aware of the constraints on colleges and their funding, but it is possible to run a very successful college that is both financially sustainable and has very high-quality teaching. Of course, they need the money at the base, but strong leadership and management, along with strong governance, are critical.

I do not have the figures with me, but I mentioned that the Education and Training Foundation was doing a lot of work with governors. In some of the more successful colleges I have seen, getting in good employers, particularly from the local area, has been important to management success. They have the expertise for managing the finances. That close relationship between employers and colleges is important. I went to a college recently that was very pleased about the levy, as it is an income stream for colleges, but I was slightly distressed to hear the college leader say, “Well, it now means that we are starting to go out and talk to business.” I thought, “You should have been talking to business 10 years ago.” A lot of our reforms are making that relationship closer. In many ways, FE colleges are the anchor for all the reforms that we want to bring in in education and in improving skills and technical education.

I do not have the precise date on when the guidance will be published, but I am happy to let the hon. Gentleman know when I do. He also asked how long special administration will last, which I think will be on a case-by-case basis. Protection of learners is very important, as is staff employment in those colleges, because we do not have huge numbers of people queuing up to teach in FE. Finding them alternative posts will be important to the social and teaching capital of the sector.

The hon. Gentleman asked what will happen in this area, and learner protection is important. I was pleased that he and the hon. Member for Wolverhampton North East mentioned young people with special educational needs, who are often taught in colleges and achieve phenomenal results that are well above the original estimates of what they might be able to do at the beginning of their course. They are learners. That is why they will be at the top of the list for protection. The duty to ensure that they have ample and equal opportunity—the word “equal” is important—to go on and have fulfilling lives will be paramount.

The hon. Gentleman asked specifically whether the area reviews have been successful and whether I have commissioned any work. Work is ongoing. In fact, I met the FE commissioner today and our conversation went along those lines. We need to look back and ask what success there has been. Without doubt, there has been success. Of course, we cannot compel colleges to merge or to do anything.

[Gordon Marsden]

The Minister is being fair and looking at this issue in the round, for which I am grateful. I was making a specific point about whether the Department had done any analysis—I realise it may be too early—of the implications financially for the structures of the institutions, as well as asking about the broader aspects of how things were going.

[Anne Milton]

I should reassure the hon. Gentleman that I do not feel the need to erect an air-raid shelter over anybody, and certainly not Her Majesty’s Treasury, which is quite good at looking after itself to be absolutely honest. I am not really in that business. However, it will be important to look back and ask what has worked and why. The problem is that the debate at the moment, not just in this House but among the public, is all about money. That is a mistake; it is not just about money. I know that the hon. Gentleman appreciates that. It is about what you do with the money. Good management and leadership are important in making these institutions work.

The hon. Gentleman quoted the UCU, but it would be unfair to suggest that we have got to this moment without me or any of my predecessors being acutely aware of where FE colleges get their money and of the need to make sure that that is funded in future. We are doing several pieces of work. He referred to Philip Augar’s review of post-18 education funding. FE colleges come into that remit. We are also looking at level 4 and 5 provision. A lot of universities are providing level 4 and 5 provision. Should that happen or would it be better done in FE colleges?

[Sir Robert Syms (Poole) (Con)]

Clearly there are concerns about funding for FE colleges. One difficulty is that many of them have foreign students and under the current visa regime, if they change their course they have to go back to their country of origin and if they want to go on to university they have to go back to their country of origin. That does not help. When the Government publish the White Paper, I assume that the Ministers who have responsibility for FE will make representations to make the situation a little easier, because this is additional money for the sector that many colleges can earn. Bournemouth and Poole College earns about £1 million a year in such fees, so this is a way in which we could get more money into the sector.

[Anne Milton]

I hesitate to talk about joined-up Government because it never feels as joined up as it ought to be, but joining it up so that a decision about the visa rules does not have an adverse impact on the sector is critical, because having students on courses means financial income. We are doing quite a lot of work on that at the moment, as my hon. Friend might imagine.

I know that Hull has had huge problems; I have spoken to the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy) about that. I would just say that money is going in; there is a danger of forgetting that when we look at the base rate of funding of further education colleges. The pot of money that the Treasury made available for the restructuring facility was £700 million, and a substantial amount of that will have been spent; that is important. We will also put in £500 million by 2020, with the full roll-out of T-levels.

On the subject of T-levels, we are putting in £20 million over the two years to March 2020 to support providers as they prepare for them. The hon. Member for Wolverhampton North East mentioned technical education; this is at the heart of that. We are also putting together a £20 million investment, including recently through Taking Teaching Further, which tries to get industry expertise into colleges. People with that expertise are often exactly the people we want teaching in FE colleges. There is quite a light regime regarding what qualifications people need in order to teach in an FE college—rightly so. We need to inject people like that into the system. We are providing a maths premium and £38 million for the initial providers of T-levels, so that they can invest in the sort of equipment that is needed.

[Catherine West]

I thank the Minister for her generous approach to discussing this. Will she lay out the steps that her Department is taking to deal with poor practice? The National Audit Office has pointed out that there have allegedly been corrupt practices in the past. What is being done differently to avoid that with the training providers?

[Anne Milton]

I thank the hon. Lady for reminding me of the bit that I had left out: the issue around independent training providers and some of the problems there. There was learndirect, which was a quality issue, and recently of course there was 3aaa; that was not a quality issue—it was actually rated quite highly—but a financial issue.

I am a simple soul; I sometimes find it extraordinary that we cannot keep tabs on all this money that we give out, and it is so important. Experiences should teach us lessons that enable us to tighten the regime as we move forward, but it is important that we do not make things bureaucratic, or the costs of applying for, or getting, funding onerous, with disproportionate cost. There are a number of things going on in the Department—not all of which I can share with the hon. Lady—to ensure that we reflect on this issue. Certainly, after learndirect, I asked officials to go back and find out how they could have realised that this was going to happen. In any sector, a number of organisations wait like vultures for the pickings of Government spending. We always have to protect ourselves from that, keeping in mind that the learner is at the heart of this. We also have to make sure that every £1 of taxpayers’ money gives £1 of value for learners.

It is disappointing to me—I am, of course, an advocate for this sector—that this debate is happening here. I would be interested to see whether, by the end of debate on the Budget at 5 o’clock tomorrow, there has been any mention of FE on the Floor of the House of Commons. I hear a great deal about schools and their concerns about funding. I rarely hear—except in obscure Committees such as this, or on one occasion in Westminster Hall—about FE. It is the squeaky wheel that gets the oil in this world, and if the wheel does not squeak, it is hard for me to make the case for the oil. I commend the regulations to the House.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Further Education Bodies (Insolvency) Regulations 2018.

Draft West of England Combined Authority (Adult Education Functions) Order 2018 Draft Cambridgeshire and Peterborough Combined Authorthy (Adult Education Functions) Order 2018

Anne Milton Excerpts

Tuesday 23rd October 2018 General Committees

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

I beg to move,

That the Committee has considered the draft West of England Combined Authority (Adult Education Functions) Order 2018.

[The Chair]

With this it will be convenient to consider the draft Cambridgeshire and Peterborough Combined Authority (Adult Education Functions) Order 2018.

I call the Minister to speak to both instruments. At the end of the debate, I will ask her to move the second motion formally.

[Anne Milton]

It is a pleasure to serve with you on the Committee, Mr Stringer.

The orders, if approved and made, will provide for the transfer of certain adult education functions and associated adult education budgets to the Cambridgeshire and Peterborough and West of England combined authorities, and provide an opportunity for them to help their residents fulfil their potential. In 2015 and 2016, through a series of devolution deals agreed between the Government and the combined authorities, we made the commitment to fully devolve the adult education budget—AEB—and the orders will deliver on that commitment.

The orders are made under the Local Democracy, Economic Development and Construction Act 2009 and will transfer certain adult education functions set out in the Apprenticeships, Skills, Children and Learning Act 2009 from the Secretary of State to the combined authorities in relation to the area of each specified authority for the academic year 2019-20 and thereafter. The transfer does not include the functions in so far as they relate to apprenticeships or those subject to adult detention.

In the 2015 spending review, the Government made available £1.5 billion annually until 2020 for the AEB. Across England, that support to help adults with the skills and learning they need is vital in equipping them for work, an apprenticeship or further learning, and it acts as an integral stepping stone, particularly for those who have suffered a disadvantage. In 2016-17, the AEB supported adults to study courses in English, maths and English for speakers of other languages—ESOL—for level 2 or 3 qualifications and a wide range of community learning provision.

Combined authorities and, indeed, all local authorities have a role to play in supporting the introduction of T-levels, including working with employers to provide high-quality industry placements. Each combined authority has its own needs and circumstances. In my view, local authorities, including combined authorities, are fantastic enablers and facilitators. We are working with combined authorities, businesses and learning providers to establish how skills provision and reforms can be best shaped to fit the needs of local areas.

The orders will transfer certain adult education functions in the Apprenticeships, Skills, Children and Learning Act 2009 from the Secretary of State to the combined authorities in relation to their area, and enable the transfer to them of the relevant part of the AEB. In particular, the following functions will be exercisable by the combined authority in relation to its area instead of by the Secretary of State: section 86, which relates to the education and training of persons aged 19 or over; section 87, which relates to the learning aims of such persons and the provision of facilities; and section 88, which relates to the payment of tuition fees for such persons.

Conditions are set out in relation to the transferred functions, in particular that the combined authority must have regard to guidance issued by the Secretary of State and adopt eligibility rules in accordance with any direction of the Secretary of State. The Department for Education will transfer the relevant part of the AEB to the combined authority to undertake the functions. It will be the responsibility of each area to manage its overall AEB allocation efficiently and effectively to meet the needs of its population.

Before the introduction of the orders, the Department considered business cases from the combined authorities for implementation funding, in preparation for the transfer of functions. After evaluating the cases, the Department agreed to provide appropriate implementation funding to support the combined authorities’ preparations and ensure that each area was able to prepare effectively for taking on the functions.

From the 2019-20 academic year, the Cambridgeshire and Peterborough and West of England combined authorities will be responsible for providing funding for statutory entitlements for eligible learners in maths and English up to and including level 2, the first full level 2 qualifications for learners aged 19 to 23, the first full level 3 qualifications for learners aged 19 to 23, and the forthcoming digital skills entitlement.

It is stating the obvious to say that skills are an essential driver of economic growth. Devolution gives the Cambridgeshire and Peterborough and West of England combined authorities the opportunity to address the skills challenges that they face and improve economic growth in their areas. I have a number of examples of the good work going on in both areas. I will not detain the Committee unnecessarily by going through them now, but I would be happy to share that information with any hon. Members should they like me to do so.

Despite the social and economic strengths in these areas, a number of key challenges remain. Out of approximately 31,000 national lower super output areas, the West of England Combined Authority has one area that is ranked 65; a ranking of 1 denotes the most deprived area nationally. There are 43 LSOAs in the combined authority area that fall within the 10% most deprived LSOAs nationally. Both the Cambridgeshire and Peterborough and West of England combined authorities have skills shortages and hard-to-fill vacancies that are constraining local businesses.

Cambridgeshire and Peterborough Combined Authority has five areas that it has identified as major growth sectors: aerospace and defence, clean technology, agri-tech, creative and digital, and life sciences. Additionally, seven sectors are important to growth in the area but face persistent and significant skills gaps: advanced manufacturing, food manufacturing, logistics and warehousing, health, information and communications technology, financial services and construction. That is quite a list.

The position is similar for the West of England Combined Authority. In 2016, 23% of respondents to the West of England local enterprise partnership’s employer skills survey reported that they faced some sort of skills gap—that compared with 14% nationally, according to the 2015 survey of the UK Commission for Employment and Skills—with the greatest skills gaps being technical in nature. Some 805 employers reported that they had a vacancy, with 46% stating that vacancies were hard to fill.

Through these orders, the combined authorities can deliver a step change to support their residents into good jobs, with opportunities for people to progress and develop; improve the earnings potential of their low-paid, low-skilled workers; deliver a thriving and productive economy; and, critically, harness the collaborative enthusiasm of business, local authorities, the third sector and the public sector.

--- Later in debate ---

[Anne Milton]

The hon. Gentleman and I agree on many things—maybe not all—and this is one. I acknowledge his points on the issue of transition. Not everybody was here last time, so I will repeat that transition is always difficult and I know there are particular issues for the WEA. I want to mention a few of the important points that the hon. Gentleman made. Wealthy areas may have significant pockets of deprivation that get overlooked among the leafy suburbs. That is a shame and this is an opportunity for the combined authorities to address that.

The hon. Gentleman mentioned the world-class university at Cambridge and the ripples that need to go out from it. I think that is right. When there is a very high graduate population there is always a tendency, in this place and elsewhere, to forget the 50% or so who do not go to university or have the benefit of a degree. Many of them have talents and skills, but they have somehow got lost on the educational train. I hope that Cambridgeshire and the West of England use this opportunity to pick that up.

I would mention one other project that includes Bristol. It is a five cities project that focuses on increasing diversity and inclusion, especially in apprenticeships. The figures in an area like Bristol are truly shocking. In some wards 90% of young people go to university and in other wards the figure is down at 2%. No self-respecting local authority should be happy with such figures.

The hon. Gentleman mentioned Anglia Ruskin university, and Cambridgeshire and Peterborough offer one example I will pull out. They are involved as the skills specialist in the feasibility study for bringing a new Cambridgeshire Academy of Transportation, Logistics and Sustainable Energies to the area. Maybe devolution is an opportunity for local authorities and combined authorities to pick slightly catchier titles for their initiatives and deliver more opportunities for people to take up skills and produce initiatives, projects and working groups that mean something to their local population, because some initiatives are slightly lost on even many of us in the Government.

Question put and agreed to.

Draft Cambridgeshire and Peterborough Combined Authority (Adult Education Functions) Order 2018

Resolved,

That the Committee has considered the draft Cambridgeshire and Peterborough Combined Authority (Adult Education Functions) Order 2018.—(Anne Milton.)

Draft Liverpool City Region Combined Authority (Adult Education Functions) Order 2018 Draft Tees Valley Combined Authority (Adult Education Functions) Order 2018

Anne Milton Excerpts

Tuesday 16th October 2018 General Committees

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

I beg to move,

That the Committee has considered the draft Liverpool City Region Combined Authority (Adult Education Functions) Order 2018.

[The Chair]

With this it will be convenient to consider the draft Tees Valley Combined Authority (Adult Education Functions) Order 2018.

[Anne Milton]

I apologise if I sound slightly out of breath, Mr Hanson.

The orders, if approved and made, will provide for the transfer of certain adult education functions and associated adult education budgets to the Liverpool City Region and Tees Valley combined authorities. They provide an opportunity for the authorities to help their residents fulfil their potential. Although I made many of the same comments in yesterday’s Fourth Delegated Legislation Committee sitting, I will repeat them for the record.

In 2015 and 2016, through a series of devolution deals agreed between the Government and the combined authorities, we made the commitment fully to devolve the adult education budget. The orders will deliver on that commitment. They are made under the Local Democracy, Economic Development and Construction Act 2009 and will transfer certain adult education functions set out in the Apprenticeships, Skills, Children and Learning Act 2009 from the Secretary of State to the combined authorities. Those functions will relate to the area of each specified combined authority for the academic year 2019-20 and thereafter. The transfer does not include the functions in so far as they relate to apprenticeships or those subject to adult detention.

In the 2015 spending review, the Government made £1.5 billion available annually until 2020 for the adult education budget. Across England, that support to help adults with skills and learning is vital in equipping them for work, an apprenticeship or further learning. It acts as an integral stepping-stone, particularly for many who have suffered disadvantage. In 2016-17, the adult education budget supported adults to study courses in English, maths, English for speakers of other languages, full level 2 or level 3 qualifications and a wide range of community learning provision.

Combined authorities, and indeed all local authorities, have a role to play in supporting the introduction of T-levels, including working with employers to provide high-quality industry placements. Each combined authority has its own needs and circumstances. Local authorities, including combined authorities, are fantastic enablers and facilitators. We are working with combined authorities, businesses and learning providers to establish how skills provision and reform can be best shaped to fit the needs of local areas.

The orders will transfer certain adult functions of the Secretary of State in the Apprenticeships, Skills, Children and Learning Act to the combined authority in relation to its area and enable the transfer of the relevant part of the AEB to the combined authority. In particular, the following functions will be exercisable by the combined authority in its area instead of by the Secretary of State: section 86, which relates to education and training for persons aged 19 or over; section 87, which relates to the learning aims for such persons and the provision of facilities; and section 88, which relates to the payment of tuition fees for such persons.

Conditions are set in relation to the transferred functions, in particular that the combined authority must have regard to guidance issued by the Secretary of State and must adopt eligibility rules in accordance with any direction of the Secretary of State. The Department for Education will transfer the relevant part of the AEB to the combined authority to undertake the functions. It will be the responsibility of each area to manage its overall AEB allocation effectively and efficiently, to meet the needs of its residents.

Prior to this, the Department considered business cases from the combined authorities for implementation funding in preparation for the transfer of functions. After evaluating the cases, the Department agreed to provide appropriate implementation funding to support the combined authorities’ preparations and ensure that each area was able to prepare effectively to take on the functions.

From the 2019-20 academic year, the Liverpool City Region and Tees Valley combined authorities will be responsible for providing funding for statutory entitlements for eligible learners in maths and English up to and including level 2, first full level 2 and level 3 qualifications—learners aged 19 to 23—and the forthcoming digital skills entitlement. We talk about the northern powerhouse, and I think we can agree that skills are an essential driver for economic growth in the region. I have a number of examples that I am happy to provide if hon. Members would like to hear them, but I will not detain the Committee now.

The scale of the challenges faced by the combined authorities is significant. Liverpool City Region Combined Authority has one of the highest rates of economically inactive residents of any combined authority area—that is from an Office for National Statistics source—and this is most pronounced for residents in receipt of sickness benefit. The figure is in the region of 93,720. Similarly, despite employment levels rising at a rate higher than the national average, Tees Valley Combined Authority still has claimant unemployment above the national average—4.2% compared with 2.2%. In both authorities, the proportion of residents without formal qualifications is higher than the national average of 7.7%, with Liverpool City Region at 11.3% and Tees Valley at 12.1%.

Through the orders, the combined authorities can deliver a step change, to support their residents into good jobs with opportunities to progress and develop, to improve the earnings potential of their low-paid, low-skilled workers, to deliver a thriving and productive economy and—critically for me—to harness the collective enthusiasm of business, local authorities, the third sector and the public sector. I commend the orders to the Committee.

[The Chair]

The Minister has moved the motion and has initiated the debate on both orders. At the end of the debate, I will ask her to move the second order formally.

--- Later in debate ---

[Anne Milton]

I want to pick up on a couple of points. First, the issue of further education funding was raised; that is not for this Committee to debate or decide on, but I am sure hon. Members will use every opportunity to ensure that the Chancellor is aware of their concerns ahead of any spending decisions.

Secondly, to pick up on the issue of skills, Brexit or no Brexit—I will also mention it briefly and go on to European funding—we have a skills shortage. We have a world skills shortage; there is no doubt about that. My hon. Friend the Member for Middlesbrough South and East Cleveland raised the particular issue of the north-east. I am very pleased with what the Secretary of State is doing, but there is a particular issue in the north-east. As a former Health Minister, I must say that the correlation between educational and health outcomes is pretty shocking; if people do not achieve well educationally, their life expectancy and health chances are greatly reduced. There is more than just an educational imperative to ensure that we get this right and do not let down future generations of young people who will then live less long. It is shocking.

Thirdly, I will pick up the point that the hon. Member for Blackpool South made first about the shared prosperity fund and ESF funding. I cannot give him a definitive answer and I am sure that he would not expect me to, but he should be aware that I have had a number of discussions and am having ongoing discussions with officials about what we do when funding arrangements change because, as he rightly says, ESF money is often well spent.

Taking a broader view, the reason why I think that devolution is important and that this is a positive step is that although the Government have money, often they are not the best people to decide how that money is spent. I sincerely hope there will be no tension between the smaller local authorities within these combined areas, because it is important that they work together; the granularity of knowledge on how that money should be spent is critical to achieving good outcomes. History is littered with Governments who, with the best possible intent, have spent large sums of money and achieved very little.

Adult education is particularly challenging. The hon. Gentleman mentioned the fact that these are not all big urban conurbations. There are rural areas and different needs for different people in different areas, which must often be met with a bespoke approach. This is the opportunity to do that. I was impressed that the consultation got what I think was one of the highest numbers of responses, so there is obviously engagement in the local area. We must now ensure that it works.

The hon. Gentleman mentioned today, as he did yesterday, the issue of further devolution of skills budgets. People do not always understand, although I know he does, that we have devolved the money to the smallest possible point—to employers. Levy-paying employers have access to levy funds; from April next year, they will be able to transfer 25% of the levy-payers’ pot. On 1 May next year I would expect all levy-paying employers in every region of this country, including Liverpool and Tees Valley, to have decided who they are going to transfer that 25% to, because that money is for training young people and older people through apprenticeships. That is the way we build skills. Whatever we have done, we have not done it well enough. Employers are acutely aware of skills shortages, but now they have the power and the opportunity to ensure that their workforce builds its skills and makes them prosperous. On a personal level, this is also about providing an opportunity for individuals to have a fulfilling career.

The timing of transition and the risks involved are always difficult to manage. Even when they know that they will end up in a better place, the transition may be difficult for training providers and authorities. However, there is no question of the orders being the end of the story; I want us to continue to work closely with combined authorities. We have set up learning pilots around the country to look into the training and education of adults; along with the work of the combined authorities, they will add to our collective pool of knowledge about what works. Although for some reason we in this country find it very difficult to share best practice, I hope that that will give us the opportunity to do so.

I look forward to hearing from the Mayors and from those in combined authorities about what has worked in their areas. There will be innovative approaches designed to meet the areas’ specific needs, which will add to our understanding. The more we do to support that work and share knowledge and expertise, the better we will serve our local residents.

The orders must be introduced to allow the Liverpool City Region and Tees Valley combined authorities to work with providers to tailor adult education provision in preparation for the academic year 2019-20. They will provide a real opportunity for residents to reach their potential and for combined authorities, local authorities, businesses, the third sector, training providers and everybody in the local area to work together to ensure that they have a real impact on people’s lives. They will allow the skills system to deliver in flexible and responsive ways with the agility required to sustain a flexible economy. Once again, I commend the orders to the Committee.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Liverpool City Region Combined Authority (Adult Education Functions) Order 2018.

Draft Tees Valley Combined Authority (Adult Education Functions) Order 2018

Resolved,

That the Committee has considered the draft Tees Valley Combined Authority (Adult Education Functions) Order 2018.—(Anne Milton.)

Draft Greater Manchester Combined Authority (Adult Education Functions) Order 2018 Draft West Midlands Combined Authority (Adult Education Functions) Order 2018

Anne Milton Excerpts

Monday 15th October 2018 General Committees

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

I beg to move,

That the Committee has considered the draft Greater Manchester Combined Authority (Adult Education Functions) Order 2018.

[The Chair]

With this it will be convenient to consider the draft West Midlands Combined Authority (Adult Education Functions) Order 2018.

[Anne Milton]

What a pleasure it is to serve under your chairmanship, Sir Henry. These orders, if approved and made, will provide for the transfer of certain adult education functions and associated adult education budgets to the Greater Manchester and West Midlands combined authorities. They provide an opportunity for the authorities to help their residents to fulfil their potential in life.

In 2015 and 2016, through a series of devolution deals agreed between the Government and the combined authorities, we made the commitment fully to devolve the adult education budget. The orders will deliver on that commitment. They are made under the Local Democracy, Economic Development and Construction Act 2009 and will transfer certain adult education functions set out in the Apprenticeships, Skills, Children and Learning Act 2009 from the Secretary of State to the combined authorities. Those functions will relate to the area of each specified combined authority for the academic year 2019-20 and thereafter. The transfer does not include the functions in so far as they relate to apprenticeships or those subject to adult detention.

In the 2015 spending review, the Government made £1.5 billion available annually until 2020 for the adult education budget. Across England, that support to help adults with skills and learning is vital in equipping them for work, an apprenticeship or further learning. It acts as an integral stepping stone, particularly for adult learners who may have suffered disadvantage. In 2016-17, the adult education budget supported adults to study English, maths, English for speakers of other languages, full level 2 or level 3 qualifications and a wide range of different community learning provision.

Combined authorities have a role to play in supporting the introduction of T-levels, including working with employers to provide high-quality industry placements. Each combined authority has its own needs and circumstances. Local authorities, including combined authorities, are fantastic enablers and facilitators. We are working with combined authorities, businesses and learning providers to establish how skills provision and reforms can be best shaped to fit the needs of local areas.

The orders will transfer certain adult education functions of the Secretary of State in the Apprenticeships, Skills, Children and Learning Act to the combined authority in relation to its area and enable the transfer of that relevant part of the AEB to the combined authority. I apologise for getting technical, but it is important that this is covered. In particular, the following functions will be exercisable by the combined authority in its area instead of by the Secretary of State: section 86, which relates to education and training for persons aged 19 or over; section 87, which relates to the learning aims for such persons and the provision of facilities; and section 88, which relates to the payment of tuition fees for such persons.

Conditions are set with the transferred functions. In particular, the combined authority must have regard to guidance issued by the Secretary of State and must adopt eligibility rules in accordance with any direction of the Secretary of State. The Department for Education will transfer the relevant part of the AEB to the combined authority to undertake the functions. It will be the responsibility of each area to manage its overall AEB allocation efficiently and effectively to meet the needs of the local population.

Prior to the introduction of the orders, the Department has considered business cases from the combined authorities for implementation funding in preparation for the transfer of functions. After evaluating those cases, the Department agreed to provide appropriate implementation funding to support the combined authorities’ preparations and ensure each area was able to prepare effectively for taking on the functions.

From academic year 2019-20, Greater Manchester and West Midlands combined authorities will be responsible for providing funding for statutory entitlements for eligible learners in maths and English up to and including level 2; first full level 2 for learners aged 19 to 23; first full level 3 qualifications for learners aged 19 to 23; and the forthcoming digital skills entitlement. We talk about the northern powerhouse and the midlands engine, and I think we can agree that skills are an essential driver for economic growth in those regions; they also ensure that adults can fulfil their potential.

I have a number of anecdotal cases of success in those areas. I will not detain the Committee with them, but I am happy to outline them should anybody want to know about them. I would also be happy to write to Committee members with those examples.

The scale of the challenges faced by those combined authorities is significant. There are 41,000 Greater Manchester combined authority residents with no qualifications at all, and across the districts there are significant variations between residents’ skills levels. West Midlands combined authority has the lowest employment rate of any of the mayoral combined authorities—72.3%, against a national average of 78.4%. Employment in both combined authority areas is typically lower skilled and lower paid than the UK average.

Through these orders, the combined authorities will be able to deliver a step change to support their residents into good jobs with opportunities for people to progress and develop; improve the earnings potential of their low-paid, low-skilled workers; deliver a thriving and productive economy; and—it is important to reiterate this—harness the collective enthusiasm, expertise and social capital of the local area from the third sector, businesses, the public sector and local authorities. I commend the orders to the Committee.

--- Later in debate ---

[Anne Milton]

The shadow Minister raised a number of points, and I hope I can address them all. To collect the comments together, I suppose that some of the delay was to do with the combined authorities not feeling that they were ready. We felt it was very important that they felt ready to take the functions on, because, as he rightly raised, transition is difficult. Thinking about the providers, he mentioned Mark Dawe and combined authorities getting up to speed. I know that Mark will have raised that point from the providers’ point of view.

Even if we are doing the right thing, in the end we have to manage the process. We have all seen good ideas fall victim to the baby going out with the bathwater, and we want to ensure that that does not happen. Some of the delay was important in ensuring that everything was in place. All the combined authorities have to have skills plans in place so that local residents can see how their money is being spent and so that the aims of the combined authorities are clear. The shadow Minister is also right to raise the issue of horizontal working and managing the system from Whitehall.

I want to say a word or two about apprenticeships. In some ways, apprenticeships have been devolved down to the smallest point possible, in that they are in the hands of employers. Thinking of the colleges I have been to and the local authority leaders I have met, what has struck me—it is also true of London—is that they can play a significant role not as doers, but as enablers and facilitators in gathering together employers and helping them to understand this new world of apprenticeships.

As a Minister, I am aware of the fact that in some areas, training provision is lacking. There are employers that desperately want training programmes for certain skills and there is not currently a provider. The Mayors can do a great deal more in that area as enablers and facilitators, but also, I hope, by working with us to ensure that employers have all the information they need to take on apprentices.

When things work well—I talk to employers that do well spending their levy, and there now is the facility to pass 25% on to non-levy employers—that is fantastic, but apprenticeships have to become part of workforce planning. There is not a skills budget to devolve, because it is in the hands of employers. I hope that the non-levy employers will soon also benefit from that in a similar way.

The hon. Gentleman specifically asked about adult education for adults in detention. I hope the situation is clear, but I am happy to give more detail. This is obviously a critical area, and there are some imaginative plans and work happening in the construction industry in London, where the Construction Industry Training Board—I know it is familiar to you, Sir Henry—has done some fantastic work with the employment of reoffenders. I will not detain the Committee by going through examples, but previous offenders have got into work and reached senior levels in construction. That sort of joined-up approach is what we want to see.

The memorandums of understanding have been signed and I hope that there will be no more delays, but should there be any that I am not aware of, the hon. Gentleman will perhaps let me know.

Aligning national and local interests is tricky. The hon. Gentleman rightly spoke about the fact that when thinking about combined authorities we think of cities. That disguises the truth. The skills and education needs of individuals in rural areas are complex, as is the need to provide such things in a way that meets their needs. Devolving that to the combined authorities means that there can be a much more granular and locally responsive approach.

I should mention the skills advisory panels; we have been working in seven areas on those. We need to learn how we can best make the panels’ work effective. They were launched at the end of 2017, and we are rightly taking a phased approach, working with local enterprise partnerships and local authorities, and—critically—aligning them with local industrial strategies.

The hon. Gentleman mentioned ESOL, and he will be aware of the rules about its availability to unemployed jobseekers. When I go around the country, I see brilliant examples—as I am sure he does—some of which are quite small, of English delivery being done really well. For instance, I was at a project in the north where they literally grabbed parents—often women—who culturally might not have felt the need to learn English, when they were taking their primary schoolchildren to school, asking them how they get their children ready for the standard assessment tests. That was an effective way of getting to those women, who are sometimes difficult to reach, and of ensuring that they could help and support their children while increasing their ability to speak and get language skills that ideally will get them into the world of work.

Will there be additional funding for FE and the AEB in the Budget? The hon. Gentleman’s comments would be best addressed to the Chancellor.

[Gordon Marsden]

I take any opportunity.

[Anne Milton]

The hon. Gentleman should take any opportunity, as do I. I am an unashamed cheerleader for the sector, because it is hard for further education and adult education to get attention. We hear a lot of noise about schools, which are important, but they are just the start of the story. To take a rough figure, about 50% of the population do not go on to higher education. Often, the education system has not worked for those people—they have often underachieved. We must ensure that further and adult education gets the attention that it rightly deserves. I am sure he will take every opportunity to raise that with the Chancellor and Treasury Ministers.

Money spent on administration is important. I hope that local residents and locally elected Members will examine what the combined authorities are doing and ensure that the administration budget is kept as low as possible. It is surprising what can be delivered without over-burdensome administration.

[Gordon Marsden]

I am sorry to interrupt the Minister, who has been very helpful in laying out these things. However, unless I misunderstood her, she said in her first comments that the principle of an administration budget had been agreed, and I asked her whether she was in a position to say anything about what that budget —or indeed logistical support from the Department—might be. If she cannot do so today, I would be happy with a letter to the Committee.

[Anne Milton]

I was referring to start-up money, which has been distributed. We are working closely with the devolved administrations. I did much work on those budgets: we asked them to put in bids and all the rest of it and make sure that it felt as it should for their size of population and so on. From memory, there were wide variations in bids for what one combined authority felt it needed to do the administrative set-up work compared with another. That variation in itself is interesting and of note.

Importantly, the combined authorities will be able to keep any underspend, which will help them to support their administration. The adult education budget—sadly, in some ways—is often underspent: allocations are made, and providers do not use all of their budget. However, we are keen to ensure an open dialogue.

For me, no one has adult education right, because a different approach is needed in different areas, as I said. The work we are doing on the pilots in various areas around the country is complex—how we reach adult learners, how we get them on to courses, how we make them recognise that there is an opportunity for them. We are running the learning pilots at the moment, and those combined authorities that have the adult education project will in a way be another opportunity to see what different areas do.

I have been around the public sector for a long time—well over 40 years—and ever since I started people have been talking about sharing best practice and working more closely together, but the truth of the matter is that we are still saying it and people are not doing it. Why do we not do it? We need to look at the barriers. It is important, and I am keen that, although the Department wishes to devolve those responsibilities, we continue to work with the areas to grab best practice. I also hope that they will work with each other, because they will be greater than the sum total of their individual parts. I hope that they will share what is and is not working, and any ideas, while we will feed into them any intelligence that we get from our learning pilots.

The hon. Gentleman mentioned the WEA. It was founded in 1903 and is the largest voluntary sector provider of adult education and has been rated good by Ofsted. Its object is to widen participation. I am aware of its concerns, as the combined authorities will be. I do not underestimate the situation: transition is never easy. However, we have to take that instability head on to get to where I think will be a better place in the future. I am not a believer in change for change’s sake, and I think that the hon. Gentleman recognises that from my time in the Department. I am a great believer, if something is working well, in making it work better incrementally. That is all we need to do; we do not need to change things radically. He and I have enjoyed such conversations, and that is important, because a direction of travel is what matters to the providers.

If I have missed anything, I am sure that the hon. Gentleman will write to me. I am happy to answer any questions. To summarise, the orders must be introduced now to allow the Greater Manchester and West Midlands combined authorities to work with providers to tailor adult further education provision in preparation for the academic year of 2019-20; to give their residents the opportunity to reach their potential, improve their earnings and gain progression in their jobs; and to allow the skills system to deliver in flexible and responsive ways, and to have the agility required to sustain a flexible economy. I therefore commend the orders to the Committee.

Oral Answers to Questions

Anne Milton Excerpts

Monday 10th September 2018 Commons Chamber

[Thelma Walker (Colne Valley) (Lab)]

1. What recent discussions he has had with the Chancellor of the Exchequer on the adequacy of funding for sixth form students.

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

The Department is working closely with the Treasury to look at spending on 16-19 education ahead of the 2019 spending review. We are also looking at the resilience and efficiency of the further education sector to make sure it is sustainable and continues to give the excellent education it already does.

[Thelma Walker]

What advice would the Minister give to the 50% of schools and colleges that have already cut modern foreign language courses and the 67% that have already cut additional support and extracurricular activities?

[Anne Milton]

Of course, the figure for those taking foreign language GCSEs, which fall into that age group, has gone up from 40% to 47%. We have also protected the base rate of funding for 16 to 19-year-olds until 2020. I should add, too, that the proportion of 16 and 17-year-olds in education or apprenticeships is the highest since records began, and of course we are putting in significant support for disadvantaged students as well.

[Mr Philip Hollobone (Kettering) (Con)]

What extra support and funding is going in to help these disadvantaged students between the ages of 16 and 19?

[Anne Milton]

Some £500 million was made available for disadvantaged students in 2017-18; there is a supplement of £600 for every additional level 3 maths student; £34 million is going in for free school meals; and, of course, there are discretionary bursaries totalling up to £130 million—because we feel it is right that sixth-form and FE colleges distribute that money as they think best.

[Nic Dakin (Scunthorpe) (Lab)]

There has not been a rate rise for 16 to 18-year-old provision for a very long time, and there is a real danger of cost pressures from pay increases and pension increases. What will the Government do to make sure that those cost pressures do not act as yet a further cut to funding for this very important age group?

[Anne Milton]

As the hon. Gentleman is aware, I recognise that many providers feel that the base rate is too low, and I am sure that he will use whatever opportunities arise to make sure the Treasury is aware of his concern, as indeed will I. We will look to make additional funding available for the teachers’ pension scheme. I am very aware of the current issues.

[Alex Chalk (Cheltenham) (Con)]

Hon. Members on both sides of the House will want to be satisfied that our schools are getting a proper allocation of funding. Will my right hon. Friend indicate how UK education spending compares to the OECD average?

[Alex Chalk]

Precisely, Sir.

[Anne Milton]

Certainly with regard to schools, it compares very favourably. It is important to recognise—

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

The question is about sixth forms.

[Anne Milton]

I am aware, as Mr Speaker reminded my hon. Friend, that the question is about sixth forms, and there is no doubt that sixth-form colleges do a superb job. It is important in the post-16 landscape that we have multiple providers providing this education to 16 to 19-year-olds to make sure that there is ample choice for young people after GCSEs.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

There have already been cuts to FE courses, to teaching hours for those courses and to pastoral support in FE, and the entire sector is extremely concerned about the Budget to come and is expecting further cuts. Will the Minister commit right here and right now to no further cuts to FE colleges?

[Anne Milton]

I know that the hon. Lady is a doughty champion of her local college and all the work it does, but it has to be remembered that FE and sixth-form colleges are independent organisations—I think that people forget that or are unaware of it. I have recognised—[Interruption.] I have made it clear that I recognise that providers feel that the base rate is too low. There is a post-18 review coming along, and we need to make sure that it aligns well with our work on the resilience and efficiency of the FE sector. I am aware of the pressures, however, and I am sure that the hon. Lady, like the hon. Member for Scunthorpe (Nic Dakin), will make her representation to the Treasury for improved funding.

[Ms Karen Buck (Westminster North) (Lab)]

2. What estimate he has made of the number of surplus primary school places in Westminster.

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[Mr Laurence Robertson (Tewkesbury) (Con)]

3. What recent discussions he has had with schools on promoting apprenticeships to pupils.

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

From January 2018, technical education apprenticeship providers must be allowed into schools to talk to those in years 8 to 13 about technical education and apprenticeships. I urge my hon. Friend, and all other Members when they visit schools, to ask what providers have been into them and to ensure that they hold schools in their constituencies to account, because they have a legal obligation. Schools are also responsible for giving those pupils independent careers advice on a range of education and training opportunities.

[Mr Robertson]

In my constituency, engineering companies find it difficult to recruit young people. I think that more should be done to help schools to give pupils the kind of career guidance that they need. Universities are only one option: apprenticeships are another. Can the Minister do even more to help schools to provide that advice?

[Anne Milton]

I will do everything that I can. I understand that 140 engineering starts have been reported so far in my hon. Friend’s constituency, and our Apprenticeship Support and Knowledge for Schools project, or ASK, is raising pupil awareness through assemblies, application workshops and live broadcasts involving employers such as the national health service and IBM. It is absolutely right that university is one of the options that are available to young people when they leave school.

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

Many midlands businesses, especially manufacturing businesses, are desperate for apprentices. Schools are currently focused on, and judged by, their ability to get students through exams and into university. Will the Secretary of State develop a set of performance indicators to demonstrate the success of schools in enabling their students to graduate into apprenticeships?

[Anne Milton]

The hon. Gentleman might like to have a look at destination tables. If companies in his constituency are finding it hard to find apprentices, in national apprenticeship week the National Apprenticeship Service offers some very good opportunities. Members on both sides of the House have run incredibly successful apprenticeship fairs, and the hon. Gentleman might consider doing that himself. A huge range of local employers and public sector organisations are involved, including the NHS, the UK Border Agency and the armed services, but on his particular patch, the engineering companies that are looking for apprentices might well want to take advantage of an opportunity with which he can provide them.

[Rebecca Pow (Taunton Deane) (Con)]

Does my right hon. Friend agree that it is also important to engage parents in encouraging students to take on apprenticeships? Parents often have an old-fashioned view of apprenticeships, and are unaware of our modern version. What is my right hon. Friend doing to try to improve communication with parents?

[Anne Milton]

We are looking at every opportunity to improve that communication, and the apprenticeship fair is one option. If it is run from 5pm to 7pm it allows parents to come. As my hon. Friend rightly says, there is rather an old-fashioned view of apprenticeships being just about plumbers and electricians, but the world has changed. We can look at the figures and at what is now being done by some of the big engineering companies, big banks and other companies—such as KPMG, but I could name a whole host—and see that it is amazing how apprenticeships have changed; it is amazing how this Government have changed apprenticeships.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Minister surely knows that there is an attitude in so many schools that they want to keep that bum on the seat for as long as possible because they get that revenue. The fact is that she needs champions: she needs employers to get into schools more and she needs the FE colleges, as champions, to get into schools as well. If she backs the FE sector, she will get a very good result.

[Anne Milton]

We do have ambassadors: the young apprentice ambassadors network does a fantastic job of giving talks in schools, and I urge the hon. Gentleman to have those conversations with schools. I will do all I can; I feel passionately about the fact that there needs to be more choice for young people both at 16 and at 18. As my hon. Friend the Member for Taunton Deane (Rebecca Pow) says, we need to educate the parents, and we also need to educate the schools. I point out again that schools have a legislative responsibility to make sure that technical education apprenticeship providers are allowed into schools, and you should call your local schools into account, Mr Speaker, as should all hon. Members.

[Michael Fabricant (Lichfield) (Con)]

4. What progress his Department is making on the introduction of T-levels; and if he will make a statement.

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[Stephanie Peacock (Barnsley East) (Lab)]

T2. Before the recess, the Minister promised me in a written answer that the Carillion apprentices would be supported to find new placements and continue to be paid in the meantime, but just days after the House rose, hundreds were laid off. What will she now do to honour her commitment and support all these victims of corporate failure?

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

The Construction Industry Training Board has worked with all 1,148 apprentices. For 776 of them, the issue has been resolved and they have got training places and employers, for 225 we are still looking to find a match for them, and 147 have failed to respond following repeated attempts to get in touch with them. The Construction Industry Training Board should be congratulated on what it has done. It has used letters, emails and texts—every way possible—to get hold of those 147, and it is to be praised.

[Will Quince (Colchester) (Con)]

I welcome the Government bringing forward proposals to introduce first-aid education in our schools. Does the Minister agree that giving children these skills will give them the confidence to save lives, and we can create a new generation of life-savers?

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[Jo Platt (Leigh) (Lab/Co-op)]

T4. The skills and T-level plans are very thin on how SEND—special educational needs and disability—students fit into these reforms, including pupils with ADHD who thrive in the creative and arts subjects. What support will Government give to help those students to participate in T-levels?

[Anne Milton]

This is extremely important. We are very aware of the specific problems for children with SEND. We are working very closely with a number of providers to make sure that this is available. We have made adjustments on apprenticeships. We will continue to make adjustments to make sure that T-levels are available for all.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

One of the most effective engines of social mobility in this country remains the Army. Does my right hon. Friend agree that, contrary to what some are saying today, our schools should remain open and welcoming places for members of our armed forces to come in and inform, inspire and give good career advice to young people, especially those from working-class backgrounds?