Technical and Further Education Bill Debate
Full Debate: Read Full DebateDepartment: Department for Education
David Rutley
Main Page: David Rutley (Conservative - Macclesfield)Department Debates - View all David Rutley's debates with the Department for Education
Monday 14th November 2016
(8 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
David Rutley (Macclesfield) (Con)
I must declare that I, too, am a comprehensive-educated special adviser from a long time ago, which may be familiar to you, Madam Deputy Speaker. We will move on from that. I spent many years in business, too, and that is why I am pleased to be able to speak in this debate.
Before I get to the meat of my remarks, I want to join my hon. Friend the Member for Dover (Charlie Elphicke) and the hon. Member for Scunthorpe (Nic Dakin) in recognising the important work that FE colleges do throughout the country. In Macclesfield, we have a great principal in Rachel Kay, who is moving things forward. That is great.
There have been lots of interesting developments over the past few months. Following on from Brexit, there has been Trexit—we might want to think what is Nexit—[Hon. Members: “Oh!”] It took a while. It is not clear what will happen, except that it is clear that there are vital lessons we need to learn. One lesson I took away from the referendum campaign and from Brexit was that there was an underlying concern from many people across the country about the impact of immigration.
As I spoke to people during the referendum campaign, it was clear to me that the concern ran deeper than just that. There was a sense of insecurity and a desire for greater security about jobs, work and prospects for the future. Those concerns will not be addressed by changes to immigration policy alone. That is why the Government are right to take a more comprehensive approach, a more comprehensive response, working to enhance an industrial strategy, continuing with welfare reforms, and pressing ahead with plans to address the skills gap that has been too prevalent for far too long. That is why this Bill is so important.
Since being elected in 2010, I have often spoken in the House on the importance of social mobility. I want to see more first-time entrepreneurs, more first-time employers, more first-time exporters and, crucially for those from the most challenging backgrounds, more first-time employees. A strong focus on those four roles, the four E’s, as I call them, and on motivating people to take on those roles, especially for the first time, delivers the key to economic success.
Progress in technical and further education and in apprenticeships is vital for the life chances of those seeking first-time employment. I therefore strongly support the Bill. I support it because it seeks to open clear, defined, aspirational paths to success, and it has the potential to help create much-needed parity of esteem between academic education and technical education, as has been talked about during the debate. That is further evidence that we on the Government Benches are the real workers party and that my right hon. Friend the Minister for Apprenticeships and Skills is at the vanguard of that movement.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. We cannot have sedentary remarks and remarks from behind the Chair. That is simply impossible.
Lucy Powell
I apologise, Madam Deputy Speaker. I want to put it on the record that it was I who was speaking from a sedentary position. The Minister is indeed at the vanguard, but the only other discernible member of the Government is the Minister for the Armed Forces, who is standing behind the Speaker’s Chair.
The Minister for Apprenticeships and Skills (Robert Halfon)
May I make a quick point? As the debate has highlighted today, it is quality, not quantity, that counts.
David Rutley
Indeed.
The Bill is timely. After strenuous efforts to stabilise the economy following the financial crisis, the UK faces a new opportunity—and some challenges—in Brexit. If we are to make a success of leaving the EU, it is increasingly urgent that we tackle our long-standing productivity gap compared with other leading economies. The challenge is to upskill the existing and future British workforce. It is interesting that the Chartered Management Institute says that one in four jobs was left vacant in 2015, owing to skills shortages.
Kelvin Hopkins
The hon. Gentleman is right to focus on our poor productivity level, but poor productivity often results from the availability of cheap labour because employers are not forced to invest in modern technology. That is a factor in the equation. Low productivity and low-priced labour are a problem for us.
David Rutley
The Government have already put in place improvements to the national living wage and will do more in that arena. Productivity is about a lot more than wages. From contributions that the hon. Gentleman has made in previous debates, I know that he is fully aware of that, too. The situation is more complicated.
One in four jobs left vacant in 2015 were due to skills shortages. The CBI has found that one in five employers want candidates for jobs who not only have academic qualifications but can demonstrate other skills as well. So the Government must ensure that their efforts to close the skills gap inspire and motivate those who would gain most—those in training and businesses that need their skills. If we are to strive to achieve the greater parity of esteem that we have talked about and to get businesses actively involved in education and training, we need to motivate more young people who are planning to pursue the non-academic track to gain the skills that will transform their lives. Only then will we secure the prize of greater national productivity. Wages have a role to play, but so, increasingly, does motivating young people to want to acquire these skills.
The key to promoting technical training will be the Government’s drive to provide 15 clear routes to 3 million quality apprenticeships. These routes are set out in the post-16 skills plan, which was published in July. It is a strong plan; my hon. Friend the Member for Grantham and Stamford (Nick Boles) deserves real credit for setting it out, and I join the hon. Member for Hove (Peter Kyle) in wishing him a speedy and full recovery from his current health challenges. Those routes—or “occupational categories” as they are called in the Bill—will signpost such sectors as construction, catering and hospitality, and vital ones such as engineering and manufacturing. The obvious, recognisable nature of these categories will give young people the assurance they need that apprenticeships are, and will be, focused on delivering identifiable careers and are relevant to their own fields of vocational interest. Relevance is absolutely key.
Confidence in these routes as genuine career paths can be bolstered only by involving businesses in their design. Fostering links between business and schools, and between business and the rightly reconstituted Institute for Apprenticeships and Technical Education, has never been more urgent. The Government have taken the initiative in encouraging businesses to step up to the plate and to deliver employer-led technical education that addresses the skills gap. I hope businesses will now seize this opportunity—it is vital that they do.
The Bill should be seen as part of a process of going further in breaking down the barriers between education and business—between school lessons and work experience. I have talked to my right hon. Friend the Minister about this. We need to get more young people out of school and into business, and more businesses into schools and further education. Indeed, schools themselves need to be made more aware of the options for, and the importance of, motivating young men and women in the classroom about wider opportunities to develop skills and career options.
No one in the House wants schools to feel they are being imposed on by the Bill; we want them to recognise the benefits of the Bill for the futures of the young people in their care. It is important to establish, as set out in part 3 of the Bill, an information-sharing relationship between the Department, schools, academies, colleges and other providers. Businesses, too, will need to find it easy to engage with education providers to be motivated to participate. Those relationships will need to be forged—in some cases, from scratch.
Fortunately, there is good practice—from existing schemes to introduce business skills into schools—to learn from and extend. For example, Young Enterprise and Enabling Enterprise provide teachers with opportunities to link up with business, and supply model exercises in flexible, transferable life and work skills. Young Enterprise already has relationships with over 50% of secondary schools. I shall be interested to hear—although this is not directly relevant to the Bill; it relates to the wider issue of what we can do to engage and motivate people—what role my right hon. Friend believes these schemes will play in this vital area of motivating more people.
There is much more that we need to do to close these skills gaps. In South Korea, for example, there is a clear difference between the skills gap among 55 to 65-year-olds, nearly half of whom are low-skilled, and among 16 to 24-year-olds, who have a much higher skills base. In England, however, about 30% of the 16 to 24-year-old age group and the 55 to 65-year-old age group are classified by the OECD as having low skills. It is clear that we are not closing the gap for the different age cohorts, and the Bill will be fundamental in taking that work forward.
My right hon. Friend is absolutely keen to move things forward on social mobility and to play his part in the party for the workers, which he has helped to articulate in recent years.
Rob Marris
The hon. Gentleman is extolling the party for the workers, so does he agree that workers and workers’ representatives, and not simply employers, should be involved in institutions?
David Rutley
The hon. Gentleman makes an interesting point. The Prime Minister has already talked about how we should look at having workers on the boards of companies. Let us see how we can take that forward, and what role they can play.
My right hon. Friend the Minister has a role to play in taking the Bill forward, and he has helped to articulate it further. I wish him well in the work that he is doing. He has already done important work in securing extra funding for businesses that take on an apprentice who has grown up in care. That shows that he has real credibility in driving this agenda forward.
As Conservative Members seek to build a Britain that works for everyone, we must promote social mobility and open up young people’s horizons to new experiences and aspirations beyond their own backgrounds. The Bill is vital in taking that work forward. I hope that my right hon. Friend the Minister will also take the opportunity to learn ways to bring businesses into the classroom and help more young people get out into the world of work. The Bill is an important start, and I wish him well with it.