Budget Resolutions and Economic Situation

Dan Jarvis Excerpts

Thursday 17th March 2016 Commons Chamber

[Dan Jarvis (Barnsley Central) (Lab)]

In common with all right hon. and hon. Members, I listened very carefully to the Budget that the Chancellor delivered yesterday. It was his eighth Budget—an opportunity to show that, after six hard years nearly, his plan has worked. Although I welcome the introduction of the sugar tax and his clear commitment to a Britain that will be stronger, safer and better off inside a reformed European Union, the reality is that, yesterday, his record of failure became clear: fiscal rules broken; cuts targeted at the most vulnerable in society; no compelling vision for our country; an ideological Budget for the better-off that seeks to reshape the state on the back of our country’s poorest. This was from a Chancellor who frankly focuses too much on the politics and not enough on the economics.

I want to speak today about the Chancellor’s fiscal record, his Budget rhetoric and his short-sighted approach to the future of our economy. First, on the fiscal record, the Chancellor stood here in 2010 and said he was going to get a grip on our country’s finances. In his Budget shortly after the general election, he said:

“This emergency Budget deals decisively with our country’s record debts.”—[Official Report, 22 June 2010; Vol. 512, c. 166.]

Despite that bold claim, six years later, public debt is still rising and household debts are growing. The Chancellor also said he would eliminate the deficit, but we learnt yesterday that this year the deficit will be over £70 billion. It has been just a few months since the Chancellor came to Parliament and presented his “long-term economic plan”—what was supposed to be the plan for the next five years. Yet already those plans are being revised, with deeper spending cuts, growth revised down and borrowing and debt as a percentage of GDP revised up. I have had goldfish that have lasted longer than some of the Chancellor’s fiscal rules.

Secondly, let us look at the Chancellor’s Budget rhetoric. Each year, he stands up and delivers a great line, but if we look at it more closely, we find it is just rhetoric, a mirage. In yesterday’s Budget, the Chancellor said that this was a Budget “for the next generation.” The reality? The Children’s Society says that the Budget “fails the next generation”, and the Child Poverty Action Group says that the next generation are to be the poorest generation for decades. The Chancellor has now been found out for what he is—someone who when he says “long-term economic plan”, really means “short-term political gain”.

The Chancellor says that he wants to talk about the future and that he wants to build a northern powerhouse, but he is not willing to fund it. He is spending three times more on transport in London than in Yorkshire and the Humber, and we now know that the Department for Business, Innovation and Skills, which is responsible for the northern powerhouse, is closing its Sheffield office, moving to London and taking the 200 jobs along with it. You could not make it up. I do not think that the people of South Yorkshire will think that this is what a northern powerhouse should look like.

Infrastructure is crucial to our country’s future. Although I welcomed yesterday’s announcement of money to scope the trans-Pennine tunnel, a project that has been championed by my hon. Friends the Members for Penistone and Stocksbridge (Angela Smith) and for Stalybridge and Hyde (Jonathan Reynolds), the reality is that investment is too low. Where it is happening, things are moving too slowly. Figures show that just 114 out of 565 infrastructure projects are in construction. If our economy is going to compete in the “global race” the Prime Minister has talked about, R&D spending will be key to our future success. Despite that, Britain is spending less than France, less than Germany, and less than half of what South Korea spends on R&D.

Speaking of our future, where were the measures to build more homes? Where were the measures to help the NHS? Where were the policies to boost the earnings of those living on low pay? These are crucial issues that will define our future, yet we got nothing from the Chancellor yesterday.

On the one issue relating to our future where the Chancellor was decisive, he was completely wrong—our children’s education. Forcing every school to become an academy is an ideologically motivated policy, and there is simply no evidence that standards will be improved. There are already concerns about the rapid expansion of a number of academy chains. This policy is likely further to antagonise the biggest asset in our education system—the teachers.

Who is going to pay for the Chancellor’s fiscal failure? It is my constituents in Barnsley and people across the country. As the Resolution Foundation said this morning, it is those in the bottom half of the income distribution who will lose £375 a year by the end of this Parliament. It is the disabled people who will be denied personal independence payments, the single biggest spending cut announced in the Budget, and one made on the same day that taxes are cut for big business. As the charity Sense said yesterday, it was “a bleak day” for disabled people. Parents who use the children’s centres in my constituency of Barnsley Central—centres that are rated outstanding and good by Ofsted—have seen their nursery provision stopped as a result of Government cuts. Women, too, have suffered from the Chancellor’s tax and benefit changes, with 81% of savings coming out of the pockets of women.

That is the cost of this Chancellor—a Chancellor who puts his own interest before the national interest; a Chancellor who talks about fixing the roof while the sun is shining, but who should be fixing the foundations; and a Chancellor whose economic record is now being exposed as a mirage.

[Several hon. Members rose—]

National Minimum Wage

Dan Jarvis Excerpts

Tuesday 16th December 2014 Westminster Hall

[Sir Alan Meale (in the Chair)]

Before the start of the final debate, I point out that the vote that we had earlier added 11 minutes to the time scale. Because that time can be carried over to the next debate, hon. Members can finish at 5.11 pm, if there is not another vote in the meantime. You have a little extra time to play with, Mr Jarvis, if you want to take it; you can stick to your time scale if you so wish.

[Dan Jarvis (Barnsley Central) (Lab)]

Thank you, Sir Alan. It is a pleasure to serve under your chairmanship. I begin by thanking Mr Speaker for granting this debate. It should really have taken place a fortnight ago, on Friday 28 November, the date for the Second Reading of my private Member’s Bill—the Low Pay Commission (National Minimum Wage) Bill. That is a Bill to make work pay: to strengthen the national minimum wage, to give greater powers to the Low Pay Commission and to tackle the scourge of low wages, which blights the lives of too many people across Britain today. Regrettably, we did not have an opportunity to debate my Bill. Two hon. Members, both of whom are known throughout the House as long-standing campaigners to undermine the minimum wage—I believe that one of them even voted against it in 1997—spoke for more than two hours to sabotage the earlier debate on a Bill to tackle revenge evictions, blocking my Bill as a result. Given that we were deprived of a debate that day and given that this issue means so much to so many across our country, I have called this debate to say now what I would have said then and to give the House the opportunity to debate the important matter of low pay.

Choosing the subject of my Bill was a difficult decision. I had no shortage of helpful suggestions, but ultimately it was the story of one woman that made up my mind. I wanted to make a difference to people such as Catherine. Catherine is a cleaner and housekeeper in my constituency. She juggles six different jobs, working in six different locations across Barnsley. She works more than 50 hours a week on the minimum wage. Like many people, Catherine struggles to make ends meet. Her pay packet does not stretch as far as it used to, especially as the real-terms value of the minimum wage has declined since 2010. When I asked her how that had affected her life, she said that she had had to cut down on what she described as “luxuries”. Soon I realised that she meant that she could not afford essentials such as clothes. “I just work to exist,” she said, “I can’t afford nice stuff. I just work to keep my head above water.”

Catherine does not have time to take notice of polls or political pundits, but what happens in our politics, what goes on in this place and the Governments we choose to serve us here will shape her life more than most. It is easy now to take it for granted that Catherine earns a national minimum wage at all. Before 1997, many workers like her were expected to work for as little as £1 or £2 an hour. In its first months of existence, the Low Pay Commission found appalling cases of factory employees earning only £1.22 an hour, care home workers taking home just £1.66 an hour and even a chip shop worker from Birmingham forced to make do with 80p an hour.

It took a Labour Government to end that scandal. Their efforts were led by Sir Ian McCartney, the former Minister of State at the Department of Trade and Industry, who piloted the Bill that became the National Minimum Wage Act 1998 through the House, and by my right hon. Friend the Member for Derby South (Margaret Beckett), the former Secretary of State. The national minimum wage was one of Labour’s greatest achievements, but its path to becoming law included a record sitting in the House of 26 and a half hours as Members, mainly from the Conservative party, sat through the night, opposing the Bill line by line, to stand in the way of working people getting a decent wage for a hard day’s work. Today, their fears have failed to materialise. They were on the wrong side of history then, and the scourge of low pay explains why the Government’s plan to balance the nation’s books is failing now. A generation on from the national minimum wage becoming law, the low pay challenge for our country has changed. The national minimum wage did help to root out exploitation and extreme examples of poverty pay, but today we have huge numbers of people across Britain who do a hard day’s work and are still living on the breadline.

Catherine, whose story I shared earlier, is just one of more than 5 million people across Britain who are stuck on low pay. The number is up from 3.4 million in 2009 and is at an all-time record. Women and young people are being hit hardest. One third of all working women and nearly two fifths of 16 to 30-year-old employees do not earn a decent wage. Nearly two thirds of children living in poverty now live in families with someone in work. If we look at the proportion of our work force that is low paid, we see that Britain is towards the bottom of the pile, coming 25th out of 30 OECD countries.

Moreover, the real-terms value of the minimum wage is losing ground. The Low Pay Commission has acknowledged that its relative value has dropped significantly since 2004, and job creation in the lowest-paid sectors has exploded at double the rate of the rest of the economy since 2010. That partly explains why the Government now spend more on tax credits and social security for families in work than they do for the unemployed. It is why the Government have been forced to spend an extra £900 million on tax credits to top up low wages, and it is part of the reason why Ministers have had to spend £1.4 billion more than planned on housing benefit for people who cannot afford a roof over their head.

John Maynard Keynes famously once said:

“When the facts change, I change my mind.”

My central argument today is that as the challenge has changed, our approach to tackling low pay needs to evolve with it. Many of our country’s leading business voices have already called for the minimum wage to increase faster than it has done in the recent past. They include Sir Ian Cheshire, chief executive of Kingfisher, and Steve Marshall, executive chairman of Balfour Beatty. Professor Sir George Bain, the first chair of the Low Pay Commission, has described the organisation as a “child of its time” and has called for an ambitious target to bring the minimum wage closer to average earnings. We need the Government to put that into action.

Labour’s plan to tackle low pay—a plan mirrored in my Bill—preserves everything that has helped to make the Low Pay Commission such a success. I am referring to decision making based on strong research; a balance between the need for wage growth and concerns about the impact on employment; and a partnership approach between the employers who create the jobs and the employees who work the shifts. Let me run through the key points.

First, we need to give a mandate to the Secretary of State to set a target for the national minimum wage to increase over a Parliament at a rate higher than that for median earnings. I did not include a specific target in the Bill. Different people will have their own views on that. We as the Opposition have already expressed our ambition for a minimum wage closer to 58% of median earnings. The important point is that the act of setting a target alone would deliver a more ambitious approach to tackling low pay and a greater focus on what progress we are making. A clear long-term target such as that would give firms certainty and time to adapt their business models to boost productivity and support higher wages. It would also bring us closer to other countries such as Australia and European economies such as Belgium and Germany, where all the evidence shows that it is possible to support a higher minimum wage without any negative impact on employment.

The Low Pay Commission would keep its leadership role in delivering on the target and would set out a plan for how it could be achieved; and flexibility could be retained in the system. We know that the success of the minimum wage has been built on an approach that works hand in hand with industry and takes into account the state of our economy, so in the event of significant economic shocks, the Low Pay Commission could be required to present compelling evidence to the Government and to Parliament, setting out why it is not possible to meet the target during the proposed time frame. The Low Pay Commission could then make further recommendations to get progress towards the target back on track.

[Steve Rotheram (Liverpool, Walton) (Lab)]

I am grateful to my hon. Friend for bringing this vital issue to the attention of the House. The rate of the national minimum wage is important, especially to those who receive it. Does he agree that it is a shocking indictment of the Government that unscrupulous employers who are paying less than the national minimum wage are getting away with it because such a small number have been prosecuted?

[Dan Jarvis]

My hon. Friend makes an important point, and the figures bear out what he has said. I would be interested to hear what the Minister has to say on that point, but I agree that the tiny number of rogue employers who have been prosecuted for paying people less than the national minimum wage is a disgrace. That reflects poorly on the Government’s record.

I believe that the proposal I have just outlined regarding the Low Pay Commission is straightforward and reasonable, and that it is the right thing to do. I would be grateful if the Minister would respond directly to that point.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing this important debate. The problem is not simply the minimum wage; many workers have had their hours reduced just to stay in employment. Some workers have not had a wage increase in three years. Some people do not even have the minimum wage let alone a living wage. Does he feel as well that the Government need to address the issue of the living wage so that people can survive?

[Dan Jarvis]

That is a helpful and constructive contribution. If the hon. Gentleman will bear with me, I will talk about the living wage later in my speech. It would be useful to hear what plans the Minister has. The hon. Gentleman makes an important point that we currently have record numbers of people in this country who are underemployed. Record numbers of people want to work full time but cannot get full-time work, so they are stuck in part-time employment and struggling to meet their costs. That is a good point, and I look forward to the Minister responding to it.

[Liz McInnes (Heywood and Middleton) (Lab)]

In his deliberations, has my hon. Friend given any thought to the practice of many employers of paying the extremely low minimum rate for apprenticeships? Some employers set up bogus apprenticeships that last for only a few months so that they can get away with paying the absolutely paltry rate for apprentices, which I believe is less than £3 an hour. Has he looked at that aspect of the minimum wage and at the age-related minimum wage for under-18s?

[Dan Jarvis]

Completely by coincidence, my hon. Friend has made a timely contribution that neatly introduces the point that I was about to make. If we want to win the fight against poverty wages, the remit of the Low Pay Commission must be expanded. It should not be simply a national minimum wage commission that sets the level of wages; I believe that it should lead our national effort to tackle the problem of low pay. We need to give new powers to the Low Pay Commission to investigate the causes and consequences of low pay in different areas of our economy.

We know that some sectors have particular, systemic problems of low wages. More than half of cleaners, 48% of hospitality workers and more than 40% of hairdressers are paid less than £7 an hour. At the same time, other sectors—the banking sector, for instance—could pay a higher minimum wage. I would be grateful if the Minister could tell us today whether the Government would consider giving new powers to the Low Pay Commission to bring together task forces to tackle such issues. Those task forces could include all the key stakeholders and recommend a strategy to the Secretary of State on the best way forward.

[Jim Shannon]

To that list of bodies that the hon. Gentleman referred to, would he add the catering industry? Many workers in the catering industry receive a wage that they cannot live on, which is below the minimum.

[Dan Jarvis]

I absolutely would. There are number of different sectors of the economy to which that could be applied.

[Alex Cunningham (Stockton North) (Lab)]

rose—

[Dan Jarvis]

I know that my hon. Friend has a specific concern about care workers, and I am happy to give way to him.

[Alex Cunningham]

I am sure that my hon. Friend will agree that no matter at what level the minimum wage is set, it must be complied with. Would he be surprised to learn that although the Government claimed to include a minimum wage requirement in their social care commitment, such a requirement was not included? Following my intervention, the Minister who is responding to the debate added a paragraph to the commitment. Does my hon. Friend agree that a paragraph on a piece of paper is one thing, but we need much more robust action by Government to ensure that no one in the care industry or anywhere else is short-changed by unscrupulous employers?

[Dan Jarvis]

I absolutely agree with that point, and I am grateful for the work that my hon. Friend has done in that area. Robust action by the Government is required to ensure that no one in the care industry is short-changed by unscrupulous employers.

I conclude by putting on record the fact that if there is a Labour Government after 7 May next year, we will set a national goal of halving the number of people on low pay over the next 10 years. We will introduce a target for a minimum wage of at least £8 by 2020. We will use tax incentives to encourage more firms to pay a living wage, and we will make a world of difference to working people such as Catherine in my constituency. When I asked her what difference a higher wage would make to her life, she could not quite imagine it. She said:

“I could cut down my hours, couldn’t I? I would have some time to do other things.”

That is the important difference that I am arguing for today.

I would like to end with the words spoken in this place by my right hon. Friend the. Member for Derby South during the debate on the introduction of the national minimum wage 17 years ago. These words were true of the case for introducing the national minimum wage then, and they are true of the case for strengthening it now:

“That policy is right, it is fair, it is just and it is sensible. It is a clear example of how a Labour Government can and will make a real difference to the lives of people across Britain, contributing to fairness and prosperity for the many, not the few. I commend the Bill to the House.”—[Official Report, 16 December 1997; Vol. 303, c. 173.]

--- Later in debate ---

[Jo Swinson]

I hope I can provide a lot of reassurance on those points. The hon. Gentleman is right that there is a fear factor, which is why it is important for people to recognise that they can make complaints in confidence. It will not necessarily be clear which member of staff has made a complaint. The HMRC investigator will not just go along to a company and say, “Can you show me the records for this particular member of staff?” The investigator can ask to see the records for all members of staff. That has two benefits. The first is confidentiality, but secondly, of course, if one member of staff is not being paid the minimum wage properly, it is possible—indeed, likely—that other members of staff are also not being paid properly.

To put the issue in context, the hon. Member for Strangford (Jim Shannon) suggested that the reason why there are not as many prosecutions as he might like is that people are not coming forward. Actually, since HMRC began enforcement back in 1999, more than 229,000 workers have received arrears worth more than £54 million. In the last year alone, £4.6 million in arrears was delivered to 22,600 workers, a significant 17% increase in the number of workers helped compared with 2009-10. The amount of arrears per case is also rising. HMRC is learning how to ensure that it does not just look at one person in the business; now it routinely looks much more widely at lots of workers within the same business. That is important to ensure that enforcement works.

We are the fastest-growing G7 economy at the moment, and that strong growth is reflected in our employment statistics, with more people in employment than ever before. That is good news, but hon. Members have raised issues about the type of employment and whether it is just insecure part-time employment. It is worth recognising that our figures from the Office for National Statistics show that full-time work made up three-quarters of the growth in employment since the election and 85% over the last year. The growth in the labour market is significantly of full-time work, but of course there are issues around the insecurity of work, which the Government are taking steps to address. We understand those issues too.

We will return to this matter, rightly, many times in this House. I pay tribute to the Members present today, who in their different elements have been campaigning on the issue. The hon. Member for Stockton North (Alex Cunningham) is particularly assiduous in the care sector, where HMRC has done a significant investigation and is seeking to follow up. That is an area where HMRC found a lot of non-compliance. We need to stay on the case of industries where there are greater problems, because lack of compliance is much less widespread in other industries.

[Dan Jarvis]

I am slightly concerned that the Minister might not address the fundamental issue that I raised in my speech, which is that the low pay challenge for the country has changed. Record numbers of people in low-paid work are struggling to make ends meet. I would be grateful if she critiqued the model that I proposed; I am thinking specifically of the five-year target and more powers for the Low Pay Commission. Will she respond on those two points?

[Jo Swinson]

Certainly; I am happy to. I understand where the hon. Gentleman and his Opposition colleagues are coming from when they call for a five-year target, but there are significant problems with that approach. Announcing an ambitious-sounding minimum wage level would not necessarily take into account future economic conditions, which could be a problem in two ways. If the economy did not perform as strongly as expected, job cuts could be the consequence of an ambitious target. Equally, if the economy did much better than anticipated, we might find that the target ended up holding back wage growth. We need to get the balance right.

My right hon. Friend the Business Secretary has said clearly that it would be helpful for the Low Pay Commission to be able to provide more forward guidance, so that it is no longer the case that once a year, business suddenly learns what the next rates will be without any idea of how things will go forward. It is worth bearing in mind what the Low Pay Commission has said about the period that we are entering now and whether we should be expecting further rises above inflation in the national minimum wage. That will be of great comfort to the many people who, like the constituent of the hon. Member for Barnsley Central, work for the national minimum wage.

On the taskforce suggestion that the hon. Gentleman made, a sectoral approach can be helpful, but there is a danger of distracting the Low Pay Commission from setting the basic rate of minimum wage. It is already considering the impact of the national minimum wage on pay, employment and competitiveness in the low-paying sectors, and it sets that out in its annual report. Members of the commission go out personally to visit lots of different organisations and employers across the UK in a range of sectors. In its recommendations, the commission manages to reflect back what it has considered after examining all the evidence.

However, there is an issue with the Government and others encouraging higher pay. The national minimum wage is not just what people are paid. It is just that: a minimum, a floor. It is right that we should set a basic level. Some employers will not be able to afford to pay more than the minimum wage. If somebody wants to come to any of our constituencies and set up a business, and they cannot afford to pay more than the minimum wage but they will provide jobs, we would probably welcome that. However, there are many businesses that probably can afford to pay more than the national minimum wage and currently choose not to. That is where we would like to encourage behavioural change.

I am heartened to see many employers making a virtue of the fact that they are living wage employers, for example, or making commitments about pay levels. We should encourage employers to compete with each other on such issues—with falling unemployment, that will be more possible in the months and years to come—because we should not just accept a situation in which it is expected that someone on the national minimum wage will stay there. We want basic jobs to be created with that wage floor, but we also want people to be able to progress from a national minimum wage job through the ranks. As their skills and the length of time with their employer increase, their wage should also. We will continue to encourage employers to pay more than the minimum wage where they can.

I know that hon. Members here will continue to campaign on the issue, and I thank everybody for such a constructive debate. I am, thankfully, not talked out.

Question put and agreed to.

Young People (Barnsley Central)

Dan Jarvis Excerpts

Monday 10th June 2013 Commons Chamber

[Dan Jarvis (Barnsley Central) (Lab)]

It is a great pleasure to speak in tonight’s debate on an issue that is extremely important for Barnsley and the country.

In these times of austerity, there is huge pressure on my constituents, including young people. This is a tough time to be growing up. Barnsley is a great place to live and raise a family. It is an exciting place to work and a good location to set up a business. It is a place to build a life. It is a town with a proud history and what should be a bright future, and the young people of Barnsley Central are key to unlocking our town’s potential. Prospects for young people are uncertain, however, and many are concerned that we risk wasting a generation of talent.

There is no shortage of talent among young people in my constituency. I see this in the Barnsley youth choir, which will perform a concert later this month alongside the world-famous Hungarian Aurin choir; at Carlton community college, where four pupils were recently awarded the prestigious Diana anti-bullying award in recognition of their commitment in tackling bullying; and at Holy Trinity school, which I visited on Friday and met some outstanding pupils. I felt privileged to meet Calum Barnes, Alex Haycock, Alexandra Ryan-Moss, Callum Mitchell, Jessica Knowles, Eleanor Coles, Lucy Towers and Tariro Munega. I came away inspired by their ambition.

I know from my time in the Army that young people can and will do the most amazing things. I have seen at first hand young people demonstrating outstanding courage, professionalism, dedication and commitment, but the potential that young people possess must be encouraged, cultivated and celebrated. Developing young people’s potential ensures not only that every individual feels valued in society, but that the UK has a bright future. Young people must be given the chance to make this future a reality, however, and my concern is that the Government run the risk of letting this wealth of potential fall by the wayside by failing to put policies in place that protect young people from the worst effects of the economic crisis.

Although I intend to focus this debate on young people’s education and training opportunities, it is important to understand the context of the challenges facing young people at the beginning of their lives. The beginning of a child’s life should be filled with hope and happiness. Instead, children and their parents face real financial challenges, at an already difficult time. In 2011, the Prime Minister assured the House that

“The money for Sure Start is there, so centres do not have to close.”—[Official Report, 2 March 2011; Vol. 524, c. 295.]

However, the budget has been cut by a third, and there are now 400 fewer centres nationally compared with May 2011. In my constituency there has been a significant reduction in funding, with a cut of £6.9 million since 2010. The Prime Minister also promised “a major step forward” on child care in the recent Budget. In reality, many families are set to lose up to £1,560 a year, at a time when wages are stagnating.

Recently I visited Darton college, a brand new Building Schools for the Future school, like all the secondary schools in Barnsley. There I met some hugely talented students who were researching the impact of child poverty. Like me, they were struck by the statistics. Twenty-two per cent of children in Barnsley Central live in poverty—a completely unacceptable figure in this day and age—so children and their parents need all the support we can give them. By supporting them in their early years, we can provide families with a stable emotional and financial platform from which they can get the best possible start in life.

I would like now to focus this debate directly on education and training opportunities for young people in Barnsley Central. I acknowledge that some of the issues I will raise sit outside the Minister’s brief and are the responsibility of other Departments. Although I do not expect the Minister to respond on all these matters, I would like to make it clear that they affect education policy and are relevant to the debate.

Everyone deserves the best possible start in life, and equal access to a high quality education should provide this. After all, education is the key to success. Young people have a range of options open to them when they reach further education, from the study of A-levels and BTECs to apprenticeships and other vocational courses, but the Government are making it harder, rather than easier, for young people to access further and higher education. The decisions to abandon the education maintenance allowance, treble tuition fees and remove the Barnsley-inspired future jobs fund have delivered a triple whammy for young people in Barnsley Central hoping to get on the career ladder. Consequently, the number of young people in my constituency in further education is falling. In 2011-12, 8,600 young people from Barnsley Central started a further education course of one kind or another. This was 400 fewer than in 2010-11 and 1,400 fewer than in 2009-10.

Proposed reforms to the way in which A-levels are studied also threaten the future prospects of some of our young people. The restructuring of exams to make assessment linear rather than modular is likely to affect the provision of education and skills needed by young people in later life. I believe we must encourage children to develop skills in school that will enable them to adapt and respond to situations and opportunities they will face in life, not simply to regurgitate remembered facts for an exam—facts that are quickly forgotten. Surely we should be equipping our young people with a more rounded and flexible education, which will better prepare them for the modern work place, rather than resorting to the old “exam conveyor belt” system in an attempt to boost league tables.

[Sarah Champion (Rotherham) (Lab)]

Last week I visited Newman school, which is a special needs school. I was struck by the vigour with which the school encourages young people to be empowered to have a voice and take an active role in society. Does my hon. Friend agree that these are also skills that children need?

[Dan Jarvis]

I am grateful for my hon. Friend’s intervention. It brings me on neatly to what I was about to say about the impact of some of the Government’s proposed reforms on special schools, which also echoes the point she has just made. I have two such schools in my constituency: Greenacre and Springwell. Both are excellent, well-led schools, with hugely committed teachers. I share the concern of my hon. Friend and many others about the impact of some of the Government’s reforms on the delivery of education, particularly in the context of assessment and examination in special schools. I am sure the Minister would agree that we must do all that we can to support young people with disabilities and additional needs.

The educational opportunities open to young people in Barnsley Central include an outstanding tertiary college. In the words of the Ofsted inspectors,

“Barnsley College provides an inspirational resource for the Barnsley community and a transformational one for many learners.”

However, I believe that, in order to create a level playing field for post-16 schools and colleges, we need to remove the basic funding differences. One issue that has been debated by Members in this House is the fact that the entitlement to free school meals in schools and academies does not extend to colleges. Another significant difference is that colleges have to pay VAT out of the money they receive for teaching and learning. The principal has informed me that if Barnsley college was treated the same as an academy for VAT, he would have around £1 million a year more to spend on teaching students.

Barnsley college also has a successful programme of encouraging community groups and school-age children to use its new building in the evenings and at weekends. The latest addition to this programme will be additional classes in English and maths, held on Saturday mornings. The principal has informed me, however, that he cannot grow that valuable work any further because Her Majesty’s Revenue and Customs regards teaching children in colleges as a business use, and he will run the risk of receiving a huge bill if he tries to grow classes or activities for the community beyond their current level.

It seems reasonable that parents and politicians should be able easily to compare the performance of post-16 provision in schools and colleges. To enable this to happen, there needs to be a level playing field in the production of the data in the Department for Education league tables. We must also ensure that Ofsted applies the same standards and judgments to all post-16 providers, including the awarding of a clear separate grade at inspection for school and academy sixth forms. May I ask the Minister or a ministerial colleague to write to me about these specific issues relating to Barnsley college?

Leaving school or college is a time of fresh challenges and tough decisions for our young people. Those pupils who opt to go to university will face the daunting prospect of high tuition fees. Those young people who feel they cannot afford to do so face missing an opportunity to further their study. The rise in tuition fees has also had a significant impact on the number of young people applying to university. According to the latest figures from UCAS, university applications are down for a second year running—[Interruption.]

[Mr Speaker]

Order. It is a long-established convention in this place that when someone is making a speech in an Adjournment debate, they are heard with courtesy and in silence. I ask the hon. Member for Suffolk Coastal (Dr Coffey) to observe that convention. If she does not feel able to do so, she can leave the Chamber.

[Dan Jarvis]

Thank you, Mr Speaker.

The figures for students in England show a drop of 6.5% from 2012. The coalition’s decision to raise tuition fees has made it even harder for young people, particularly those from less well-off backgrounds, to gain access to higher education.

The focus of this debate is on young people, but it is important to reflect for a moment on the huge contribution that teachers make to supporting them. It is a truism to say that we never forget a good teacher. I know that leadership in schools is hugely important, and in my constituency, we have some great head teachers, including Simon Barber at Holy Trinity, Neil Hutchinson at Carlton community college, Dave Whittaker at Springwell, Sue Hayter at Greenacre, Sharon Rossedes at Darton college, Nick Bowen at Horizon—just over the boundary in the neighbouring constituency—and Colin Booth, the principal of Barnsley college. I have also been inspired by many other teachers I have met, including Mat Wright, Phil Evans, Kathryn Smith, Leanne Crowther, Sharon Stacey, Steve Iredale, Kate Davies, Vicki Bruff, Eleanor Wright and many, many more.

However, the truth of the matter is that many, if not most, teachers feel undervalued. Many have told me how low morale is, and many have shared with me the fact that they struggle to sleep at night because of the pressure of the job. I recently received a letter from a maths teacher. He told me that over half his colleagues had considered leaving the profession last year. He said:

“The attacks on pay, pensions and conditions of service are without precedent...I feel angry. I feel undervalued, and as though I am a scape goat for the ills of society”.

What can the Minister say to him and the countless thousands of others in the teaching profession who feel like that? Will he come to Barnsley to meet teachers to discuss these matters and education more generally?

I want briefly to say something about apprenticeships and other vocational routes.

For too long, people have focused on the 50% who go to university; now it is time to focus on the other 50%—the forgotten 50%. For too long, politicians have viewed vocational and academic education in silos, leading to a focus on the latter at the expense of the quality and status of the former. Approaching further education as a whole will allow the benefits of both forms of learning to be experienced by a greater number of young people, offering a broader and richer education, better suited to the needs and the challenges of a modern economy because today’s apprentices face very different challenges.

Many young people can expect to go through several career changes in their lifetimes, requiring them to possess a more flexible and adaptable skill set. These new challenges demand a co-ordinated and hands-on approach from Government, as well as from figures in the business and education sectors.

[Julie Hilling (Bolton West) (Lab)]

Does my hon. Friend agree that the downgrading of careers advice given to young people has contributed to some of the difficulties faced by young people not always knowing which is the best route for them, when they are not encouraged either to stay in education or to take up apprenticeships. That lack of good career guidance is detrimental to their future prosperity and health.

[Dan Jarvis]

I am grateful and completely agree with my hon. Friend. The decision young people make about their future career destinations is an incredibly important one. It can make such a difference if they are able to receive helpful and useful careers advice in tandem with other advice that they receive from schools.

The vast bulk of additional apprenticeship places created by the Government have come in the post-25 age range, with an increase of some 367%, but the latest figures show that 69,600 16 to 18-year-olds started an apprenticeship in 2012-13 compared to 79,100 in the previous year—a drop of over 12%. Those in the 16-to-25 category risk being left behind. Our country and the town I am proud to represent are clearly in need of fresh initiatives aimed at addressing youth unemployment, and it is my constituency that is helping to lead the way in the fight against youth unemployment.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Gentleman agree that initiatives could be used to encourage more young women to enter into apprenticeships, which is one of the markets waiting to be developed?

[Dan Jarvis]

I absolutely agree, but time is running short, so I must mention briefly an initiative in my constituency.

The Minister may recall that I have written to him about the “Barnsley apprenticeship pledge”—a pilot scheme pioneered by Barnsley college, which is working in partnership with nine of Barnsley’s major public and private sector employers to ensure that 2.5% of their work force are apprentices. Schemes such as the pledge not only provide skills for young people, but provide businesses with the opportunity to expand and tailor a work force that meets their needs.

Finally, I would like to touch briefly on the issue of youth unemployment. Despite the recent figures showing that overall unemployment is going down, the job market for young people is still extremely difficult. Youth unemployment continues to climb with a growing number of NEETs—those not in education, employment or training. According to the latest figures for my constituency, the number of people claiming jobseeker’s allowance is, at 7.4%, still higher than in May 2010. With 900 JSA claimants aged 18 to 24—a figure up from this point in 2011—youth unemployment continues to remain a serious problem in Barnsley.

The Government’s answer to youth unemployment was to introduce the Youth Contract, aimed at providing training and skills. However, the Youth Contract has been ineffective, and has failed significantly to gain employers willing to support the scheme. Fewer than 6,000 young people have been helped into permanent jobs—just 3.4% of young people on the Work programme. Those left behind are often people who are desperate for work, want to earn a living, get on the housing ladder, start families and contribute to our town—but there are simply not the jobs available.

This is a tough time to be growing up. There are genuine concerns about the need to ensure that young people secure the right education, training, apprenticeships and academic opportunities. My concern is that we are running the risk that the talents of thousands of our young people will go to waste. That is why we must talk up the importance of raising aspirations among young people. Research findings have shown that low aspirations are related to poor academic attainment and professional achievement—and that is an all too common trend in times of austerity. We must therefore take every single opportunity to encourage, inspire, persuade and, when necessary, cajole the young people in our constituencies to get on and realise their ambitions, hopes and dreams.

I urge the Minister and the Government to do all that they can to support the young people in my constituency and throughout our country, so that they can be given the best possible start in life. After all, they are the future of the country.

Oral Answers to Questions

Dan Jarvis Excerpts

Thursday 21st March 2013 Commons Chamber

[Mr Willetts]

The announcement was obviously disappointing for people at Alderley Park, but we have worked with AstraZeneca in setting up a task force, which I hope will secure a future for the site. Meanwhile, we should celebrate the fact that AstraZeneca decided, having looked around the world, that the UK was the best place to invest in new R and D facilities.

[Dan Jarvis (Barnsley Central) (Lab)]

10. What his policy is on vocational education routes; and if he will make a statement.

[The Parliamentary Under-Secretary of State for Skills (Matthew Hancock)]

We are reforming vocational education to be more rigorous and responsive. We will introduce a TechBacc to recognise high-value technical education. We are strengthening further education colleges and, through the Richard reforms, strengthening apprenticeships, so that university or an apprenticeship becomes the new norm for school leavers.

[Dan Jarvis]

I thank the Minister for his response. He may not be aware that a number of major public and private sector employers in Barnsley recently signed a pledge to have 2.5% of their work force as apprenticeships. However, with the number of young people aged 16 to 18 starting apprenticeships falling, can the Minister learn anything from the innovative approach taken in my constituency?

[Matthew Hancock]

Yes, I am sure I can learn an awful lot from such an approach. It sounds terrific and I would like to hear more.

Post-16 Education Funding

Dan Jarvis Excerpts

Monday 28th March 2011 Commons Chamber

[Michael Gove]

I know my hon. Friend used to be a lecturer at Leeds Metropolitan university, and he has been committed throughout his career to ensuring that students from poorer backgrounds enjoy appropriate access. I hope the arrangements announced today will give his constituents the flexibility they need to meet the specific travel costs that his rural part of Yorkshire compels students to meet.

[Dan Jarvis (Barnsley Central) (Lab)]

Given that more than 3,500 young people in Barnsley currently claim EMA, can the Secretary of State guarantee that the number of 16 to 18-year-olds participating in education will not fall?

[Michael Gove]

It is our intention to make sure that the number participating continues to increase. As I pointed out in my statement, the number of 16 to 18-year-olds not currently in education, employment or training fell in the last quarter. I hope that the number of apprenticeship starts to be revealed later this week will show that that strong trend is continuing encouragingly.