Education: 16 to 18 Year-olds

Baroness Hughes of Stretford Excerpts

Monday 4th April 2011 Grand Committee

[Baroness Hughes of Stretford]

My Lords, I, too, congratulate the noble Lord, Lord Willis, on securing this debate. It is an extremely important time to be talking about these issues. He has a reputation from the other place and from his earlier career of being a terrier on these issues, a real champion of young people in education. It is good to see him continuing that.

I also thank all Members for their contributions, particularly the noble Lord, Lord Fink, for his maiden speech. I was very pleased to hear that his priorities as a new Member of the House are the improvement of children’s health and education. They are very fine objectives and I very much look forward to hearing his contributions to future debates.

Among Members right across the House and among teachers, parents and others working with young people up and down the country, there is a growing concern about this generation of young people, particularly those aged 16 to 25. That concern, which in some ways is unintentional, is none the less the cumulative effect of many of the cuts being brought in by the Government and they are falling hardest on that age group. We have seen dramatic cuts in youth services, in Connexions, in services to address teenage pregnancy, NEETs and so on, limitations on the school curriculum, on sports, music and enrichment activities, tuition fees and rising unemployment for young people and for their families. In this context it is even more important that as many as possible of the subset of the 16 to 25 group, the 16 to 19 year-olds, can stay in education or training as long as possible. There are in fact a range of cuts that, taken together, make it more difficult for thousands of young people and they fall disproportionately on disadvantaged young people affecting their ability to stay on. We have seen the scrapping of the September guarantee, the abolition of the diploma entitlement, the abolition of the apprenticeship guarantee, mentioned by the noble Baroness, Lady Walmsley, and the abolition of the EMA. I want to touch briefly on the apprenticeship guarantee before talking about the EMA, as most Members have done.

The additional funding for more apprenticeship places for young people is very welcome, but I wonder whether the Minister understands that in this regard funding is the easy bit. From my experience in government, it is much more difficult to secure high-quality places, engaging employers and matching young people to those placements. The guarantee was designed to put the onus on local agencies and the providers to ensure that the apprenticeship placements were there and to give a guarantee to a young person. I am concerned that if this guarantee is abolished as the Education Bill proposes—the previous Government did not abolish it, they introduced it; the current Government are proposing to abolish it—then, despite the funding, we will not see a substantial increase in apprenticeships.

[Baroness Walmsley]

The noble Baroness has slightly misunderstood what I said. It was the guarantee for information about apprenticeships that was dropped, not the guarantee of an apprenticeship if suitably qualified.

[Baroness Hughes of Stretford]

I thank the noble Baroness for her clarification but my point remains valid: there is a proposal to abolish the guarantee itself, which is arguably more important. What are the Government going to do to ensure that there is a sufficient supply of good placements?

Secondly, on the abolition of EMAs, despite repeated promises from the Prime Minister and the Secretary of State before the election that they would not abolish them, and despite the independent evaluation from the IFS, to which my noble friend Lord Watson referred, that EMAs increased participation and boosted grades, even if you accept the Government’s dead weight costs, which are dubious, the cost of EMAs is still outweighed by the financial gain of getting young people into training. Despite all this evidence, there was a rush, without consultation and without any alternative plan in place, to abolish them.

The bursary scheme that has now been announced after fierce public protest and the threat of legal action from students in the middle of courses is not only much reduced, with about a third of the previous level of funding, but also has a number of questions about it which I hope the Minister can clarify. First, on the guaranteed bursary of £12,000 for a tiny minority of the most vulnerable students—less than 2 per cent—the Secretary of State made much of the claim rehearsed by the noble Baroness, Lady Walmsley, that this is more than those students would have received under the EMA. It is more—it is 77p per week more. Does the Minister agree that it is only 77p more per week than those students would have received under the maximum EMA to which they would have been entitled?

Secondly, the Secretary of State also announced two other elements—a discretionary pot of the balance of £165 million for colleges to pay out, as well as transitional protection for those students already receiving EMAs to the end of the course. However, he did not make clear whether both of those elements are to be paid out of the £165 million that is left after the bursary for the vulnerable students. Can the Minister clarify this matter? Does he agree that the transitional protection for existing students at the level announced by the Secretary of State will come to about £130 million, as my noble friend said? Does that mean that there is a balance of only £35 million for the discretionary pot for colleges? They already receive £26 million, so if that is the case it is not much of an increase. If these two elements are not coming out of the discretionary pot, where is the £130 million for the transitional protection coming from and what other services have been cut to pay for it?

Thirdly, the Secretary of State claimed that the poorest students on free school meals would receive more than they do at present, with a potential under the discretionary pot scheme of £800 per annum. Does the Minister agree that with a household income of under £17,000, as the noble Lord, Lord Willis, identified, to qualify for free school meals, these students would be entitled now to the maximum of £1,170 of the EMA and that therefore, under this scheme, they would face a reduction of over £300 a year?

Fourthly, does the Minister agree that many thousands of young people, whose hard-up families have an income of more than the threshold of just under £17,000 for free school meals but less than the threshold of £21,800 for the maximum EMA—let alone the £30,800 to get any EMA at all—will not be guaranteed anything under this scheme and could end up with nothing?

Finally, as the IFS pointed out, after the proposed discretionary scheme—and this is a very important point, notwithstanding the limitations that we have already identified—young people will not know from their colleges whether they qualify for any support from the discretionary pot before they decide to apply for courses. My big concern is that, unless many young people from very hard-pressed families have some certainty that they will get some financial support, they may well not take the chance and sign up for the course.

The noble Lord, Lord Willis, has made an interesting suggestion of diverting child benefit to preserve a larger budget for EMA under the scheme proposed by the Government. I think there were any number of ways, with the right commitment, that the Government could have approached this differently, with careful consideration and a real attempt to keep the main benefits of the scheme for more of those who qualify. As it is, I feel that the Secretary of State acted very rashly and irresponsibly on this, reneged on those pre-election promises and created a great deal of uncertainty and potential hardship for many hundreds of thousands of young people.

[The Parliamentary Under-Secretary of State for Schools (Lord Hill of Oareford)]

My Lords, like other noble Lords, I congratulate my noble friend Lord Willis of Knaresborough on securing today’s debate and setting out the issues, which he did quite clearly. I know he cares passionately about supporting young people to continue their education, a passion that everyone here today obviously shares. I also congratulate my noble friend Lord Fink on his speech. He said, rather movingly, that he was taught to speak again after he had a brain tumour. We are all extremely glad that the noble Lord was taught to speak again and we hope that we hear him speak again on many occasions in your Lordships' House.

I shall try to respond to the main themes raised today. There were some specific questions which, if I may, I shall follow up if I do not respond to them all in the time that we have. Like the noble Baroness, Lady Hughes of Stretford, I want to start briefly by setting some of this in a broader context.

I start with the question of why 16 to 18 education matters. It matters for the economy because to compete internationally we need a well trained and well educated workforce. It matters financially for the young people concerned because better-qualified people earn more in their working lives. But, above all, it matters educationally because, regardless of any financial benefits, education is a good in itself. It enriches lives and opens the doors of opportunity. For all these reasons, this Government, like the previous one, are committed to reaching full participation in education, training or employment for all young people up to the age of 17 by 2013 and 18 by 2015.

In difficult financial circumstances we have secured funding for 1.6 million places for 16 to 18 year-olds in education or training, which includes 230,000 apprenticeship places, for 2011-12. Total funding for 16 to 18 participation in 2011-12 is over £7.5 billion, which is a record. I recognise that there are concerns, which have been perfectly fairly spelled out by the noble Baroness, Lady Hughes of Stretford, but overall it is important to emphasise that the commitment to full participation and the funding for 1.6 million places as well as the increase in the number of apprenticeship places—and I shall respond to the noble Baroness’s point on the guarantee—are all there. I do not pretend for one moment that this means that there will not be financial challenges for schools and sixth forms—there will be—but at a time when many other budgets are facing heavy cuts, it is a reflection of the priority we attach to 16 to 18 education.

We know we have challenges to overcome. Despite the best efforts of the previous Government, we have a wide gap in attainment between rich and poor. Half of our 16 year-olds fail to secure five decent GCSEs, including English and maths. As Professor Alison Wolf has shown in her recent report on vocational qualifications, too many of them, sadly, do not seem to be respected by employers and colleges.

I agree very much with my noble friend Lady Walmsley that it is important that we listen to employers. I also agree that some of the soft skills that she talked about—employees turning up on time, for example—are as important as some of the academic qualifications if they are going to get on in life. We also know that we have a group of 16 to 18 year-olds who are not in education, employment or training, although I am glad to say that in the last quarter the number of NEETs in that age group fell by 15,000.

What are we doing to raise standards and increase participation? We know that the biggest determinant of whether students stay on is their attainment at 16, and specifically whether they secure good GCSEs in subjects that universities and employers value. Therefore, we have introduced the pupil premium to try to tackle disadvantage from the earliest years and narrow the attainment gap. The funding for that will grow to £2.5 billion by 2014-15. We have announced a new focus on reading at age six; we have increased our emphasis on tackling under-performing schools; we have rolled out our academies programme; and we have introduced the English baccalaureate.

I take the point made by my noble friend Lady Walmsley about the disengaged. That is why we are also seeking to increase the number of studio schools, which I think can play an important part in engaging children who have not been turned on by what goes on in the classroom. By learning some practical skills—for example, how to lay a wall—they also learn about angles and measurements, so there are many benefits there too. We have announced a review of vocational qualifications and more funding for technical academies and UTCs. We have expanded the apprenticeships programme for 16 to 18 year-olds from 116,000 last year to 131,000 in 2010-11 and 133,000 next year. Given that we are dependent on employers to provide those apprenticeship places, we are not able to give a guarantee on their behalf. If employers will not make the places available, we cannot offer such a guarantee. However, I share my noble friend’s commitment to apprenticeships. I also agree with everything that she said about the importance of securing high-quality places, and we will need to work at that.

We have also switched more funding to tackle disadvantage post-16, building on the pupil premium. Therefore, within the overall budget of £7.5 billion that I mentioned, £770 million is being spent on supporting the education of disadvantaged 16 to 18 year-olds. That is £150 million more than would previously have been available to schools and colleges, and it is specifically for the education of the most disadvantaged 16 to 19 year-olds.

Perhaps I may say a few words to try to pick up the questions raised about the end of the education maintenance allowance and its replacement by the 16 to 19 bursary fund. Clearly, we want young people to stay on in education and training and not to be discouraged for financial reasons. The education maintenance allowance was used by the previous Government to provide an incentive for young people to stay on and I recognise that it led to an increase in overall participation. I do not accept the picture painted by my noble friend Lord Willis of Knaresborough and the noble Baroness, Lady Hughes of Stretford, about the research into the impact of the EMA. This was not research conveniently commissioned by the new Government; it was commissioned by the previous Government to be carried out by a number of different research bodies. It seems that it was found that some 10 per cent of those in receipt of the EMA said that they would not have participated without it, yet it was paid to almost 45 per cent of young people at a cost of around £560 million. It is also the case that since it was introduced—and I recognise the argument that it was an incentive payment when it was introduced—we have moved further and further towards compulsory participation post-16. Therefore, the case for an incentive payment is, I think, reduced.

Rather than paying nearly half of all students an incentive to stay in learning when it is becoming compulsory, we argue that we should concentrate our resources on removing the barriers to learning which are faced by the poorest. Therefore, last week we set out our proposals. We have consulted extensively to ensure that we support those most in need, and we are grateful for the work that Mr Simon Hughes has done in helping us to refine our proposals. In response to the question raised by my noble friend Lord Willis of Knaresborough and the noble Lord, Lord Watson of Invergowrie, I can confirm that there is new money from reserves at the Treasury exactly as was described.

As a result of that additional funding and the funding that we have found from within the DfE budget, 12,000 students—those in care, care leavers and those receiving income support—should receive an annual bursary of £1,200 if they stay on in education. That is only slightly more, I accept, than they received under the EMA. Asylum seekers are not caught by the category of entitlement that my noble friend Lady Walmsley raised, but they would be eligible for support through the discretionary fund which schools and colleges would have at their disposal.

We want those most in need who are currently in receipt of the EMA to be protected. All those young people who began courses in 2009-10 and who were given a guarantee by the previous Government that they would receive the EMA will still receive their weekly payments. Young people who started courses in 2010-11 and received the maximum weekly payment of £30 should now receive weekly payments of at least £20 until the end of the next academic year. In addition, those students will be eligible for support from the new post-16 bursary scheme. That can help to cover the costs of travel, food and equipment, particularly for poorer students and those in rural areas where transport is an issue. One hundred and eighty million pounds will be available for that bursary fund.

Reference was made to the £800 figure in relation to those eligible for free school meals. That was intended as an illustrative figure, to demonstrate the amount of the money, rather than saying that those in receipt of free school meals would be eligible for £800.

[Baroness Hughes of Stretford]

Can I be absolutely clear? The Minister said that money has come from the Treasury reserves as well. Is the £130 for transitional protection coming from the Treasury? In other words, will the £180 million earmarked for the whole scheme be used exclusively for the two purposes of the bursary scheme and a discretionary pot?

[Lord Hill of Oareford]

Because the figures are complicated and time is short, I am very happy to set out the position as clearly as I can subsequently. The contribution from the Treasury is to help to cover the steady state of the scheme, and the other costs will be found from within the department, but I will clarify that for the noble Baroness.

Schools and colleges will have the freedom to decide on the allocation of the bursary because, as my noble friend Lady Walmsley said, they are best placed to know the specific needs of their students. We are consulting on the scheme. That will take eight weeks. I know how important it is that young people know what is happening, but it is also important that there should be a consultation.

I am grateful to my noble friend Lord Willis for his ambitious and imaginative proposal. It is probably career-limiting for me to respond in detail to his point, but I know that it is a discussion that he will continue to pursue in his terrier-like way.

In these difficult economic times, we are trying to prioritise the reform and investment that we need, particularly for those aged 16 to 18. We want all children to have the chance to benefit from education or training post-16. We believe that our package of measures and reforms, starting with the pupil premium, working through school, increasing the number of apprenticeships, funding post-16—which has increased—and providing a targeted package of support for 16 to 18 year-olds, will help to bring that greater participation about.