Skills and Post-16 Education Bill [Lords] Debate

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Department: Department for Education
Toby Perkins Portrait Mr Perkins
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I absolutely agree with all of that. BTECs are also a qualification that is understood and respected by employers. They have a long-standing track record; they are respected by learners and understood by institutions. I am not hostile to the idea of improving them, if something can be done to bring in a better qualification. There is real merit in the potential of T-levels, and as a brand they have immediate buy-in, but the Government need to tread carefully. T-levels are changing shape in front of our eyes. They were brought in as a vocational qualification, but the Secretary of State’s current favourite anecdote is about a student from Barnsley who he met, who said he can go to any university he wants.

The T-level qualification started off on a vocational path, but the Government are now saying that it is a route towards universities—[Interruption.] It could potentially be both, but I must say that the Secretary of State’s predecessor, when it was discovered that Russell Group universities were not accepting T-levels, was very sanguine about it. He said, “They’re not about universities. They’re all about going towards the world of work.” This qualification is changing shape in front of our eyes, and the Government need to be careful before they get rid of things that work and replace them with their new qualification.

Emma Hardy Portrait Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
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One concern I have around T-levels, which I have raised with the Government before, is the work placement aspect and the fact that the availability of the T-level is therefore based on the availability of businesses to provide those work placements. My fear for areas such as Hull, which I represent, and others around the country is that if they do not have the placements, they cannot have the T-level. Therefore, that opportunity is denied to many students, unlike the generalisation of a BTEC, which means that wherever people are in the country, they can study for the same qualification.

Toby Perkins Portrait Mr Perkins
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My hon. Friend characteristically raises an important point, and she is entirely right. When I go and speak to FE colleges, there is widespread concern about the availability of the amount of T-level work experience that is required. Particularly in some communities that do not have high numbers of larger employers and for the smaller colleges, we think there will be real difficulty getting the amount of work experience that is currently envisaged. I suspect that if we look at this qualification in two or three years’ time, it will not have the same demands for work experience; that remains to be seen. However, I share my hon. Friend’s concern.

The amendments proposed by the Opposition and many of the 29 other amendments proposed by hon. Members on both sides of the House seek to make substantive changes to the Bill that could make a real difference and offer a possibility that it will fulfil the proud boasts we have heard from the skills Minister, and his predecessor about the scale of reform proposed.

The other huge disappointment that many of us feel about the Government’s approach to this whole question is their failure to get what further education and vocational education is all about, as my hon. Friend the Member for Rotherham (Sarah Champion) mentioned a moment ago. Further education is magical and transformative. For so many people who leave our statutory educational providers disillusioned and uninspired by education, FE has been life-changing. In my family, it was learning in FE that changed my son’s life and career opportunities; the same thing happened 20 years before for my sister, and I know it has happened for so many other people in all our constituencies. Yet the Government’s approach to this sector has been to inflict eye-watering cuts on it while continually repeating the same lament about employers not being in charge.

As we listen to the latest skills Minister’s claims about his reforms, it is worth recalling what went before them. In January 2011 the then skills Minister, the right hon. Member for South Holland and The Deepings (Sir John Hayes), said that the entire focus of our Government’s skills strategy was in

“building a training system that is employer led.”

In 2015 the former Chancellor, George Osborne, told us that we now had a system in the hands of an employer-led institute of apprenticeships, and his skills Minister at the time said of the levy:

“At the heart of the apprenticeship drive is the principle that no one better understands the skills employers need than employers themselves.”

Two years further on, in 2017, the Government said:

“The Apprenticeship Levy is a cornerstone of the government’s skills agenda, creating a system which puts employers at the heart of designing and funding apprenticeships to support productivity and growth.”

A year later, the right hon. Member for East Hampshire (Damian Hinds) described local enterprise partnerships as

“business-led partnerships…at the heart of responding to skills needs…that will help individuals and businesses gain the skills they need to grow.”

So if the reforms in 2011, 2015, 2017 and 2018 all put employers in the driving seat, and if putting employers in the driving seat is the solution to addressing our productivity and skills crisis, why are the Government now coming back saying that there has been a generation of failure?

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Robert Halfon Portrait Robert Halfon (Harlow) (Con)
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In rising to speak to my new clauses 1, 2 and 3, I give notice that I do not intend to press them to a Division.

The Government have already made it clear that they will make changes to prisoner apprenticeships. I am conscious of the financial considerations that need to be given to new clause 2. I have faith that the Secretary of State for Education believes deeply in skills and vocational education, and I hope to be able to continue to work with him to make improvements with regard to careers guidance and the Baker clause. I thank the hon. Member for Chesterfield (Mr Perkins) for his support for my new clauses.

I welcome this Bill, which will revitalise an incredibly important part of the education sector that has seen its per-student funding reduced since 2010, although it is now going up again. The lifetime skills guarantee, the kickstart programme and the increase in support for FE colleges offer a revolutionary approach to building an apprenticeship and skills nation like never before. I commend the Secretary of State, Ministers and the former skills Minister, my hon. Friend the Member for Chichester (Gillian Keegan), on bringing forward this legislation.

Emma Hardy Portrait Emma Hardy
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rose

Robert Halfon Portrait Robert Halfon
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I am delighted to give way to a former member of the Education Committee.

Emma Hardy Portrait Emma Hardy
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Like my hon. Friend the Member for Chesterfield (Mr Perkins), I support the right hon. Gentleman’s new clauses. Does he agree that we urgently need the lifelong loan entitlement consultation before we try to bring forward primary legislation—this Bill—to ensure that when that legislation comes, it actually deals with the problem that we are all trying to address?

Robert Halfon Portrait Robert Halfon
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I am all for consultations, but I want this Bill to happen as soon as possible. I have wanted something like this for many years. I do have issues with it that I am going to talk about, but I am very excited about it and just want it to happen without any further delay.

As I mentioned, I support the Bill as a whole, but I have always lived and worked by the mantra, “Good, better, best.” When I was growing up and learning to walk, my old physio used to say, “Good, better, best, may you never rest, until your good is better and your better is your best”—it is the sort of thing you see on a toilet wall sometimes, but it has been my mantra, and it is what I want for this Bill. That is why I proposed these three new clauses to make sure that the ladder of opportunity can be extended to those most in need.

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Selaine Saxby Portrait Selaine Saxby (North Devon) (Con)
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It is a pleasure to speak today in support of the Skills and Post-16 Education Bill. Ensuring that everyone has access to high-quality training and education throughout their lives is vital. I come from a family of teachers, and I retrained in my 40s so that I myself could teach, so I am particularly passionate about the opportunities that the Bill will open up. I want to take this opportunity to highlight the support of my local FE college for some of tonight’s proposed amendments.

Much is said of talent being spread equally across our country, but opportunity is not. That is particularly true in North Devon: it is not just in the country where opportunity is not equally spread, but in our county as well. We are over 60 miles from any university, and our youngsters do not in general see university as a natural next step post 18. Devon is particularly short of highly-qualified young people. Just 24% of 20 to 29-year-olds have a degree, which is one of the lowest levels in the country. It is against this backdrop that our excellent and sole further education college, Petroc, which educates over 9,000 learners and works with hundreds of employers, is well placed not only to welcome this Bill, but to highlight areas it would like to see strengthened.

Like me, the college highlights how coastal and rural areas such as North Devon have particular challenges that are masked by aggregating data, even to a county level, when our county is the size of Devon and has such variance in opportunity across its beautiful rural and coastal spread. The college was keen that I should highlight its support for new clause 7, as it is particularly concerned that the lifetime skills guarantee includes subsequent level 3 courses, so that those without an A-level or equivalent qualification, or those who hold such a qualification but would benefit from reskilling, are able to study on a fully-funded and approved course. This would facilitate adults being able to remain in North Devon and acquire new skills, enabling them to take advantage of the new jobs opening up in the area, whereas at present staying in North Devon means remaining in low-paid, low-skill employment, despite the multiple high-skilled job vacancies that do not match our local skill base.

We also hope that steps can be taken to revisit universal credit conditionality, as in new clause 5, so that those on benefits are encouraged to increase their skills to enable them to seek better employment. I recognise the challenges in this space, but similarly we need to encourage those who, due to the seasonality of our vital tourism and hospitality economy, spend part of each year on universal credit, as in North Devon, to upskill so that they can work throughout the year, as well as to encourage employers to stay open longer and extend our tourism season, given the growth in winter visitors we have seen post pandemic.

North Devon, like many other remote, rural and coastal locations, has particular challenges in raising aspiration, improving educational outcomes and enabling adults to upskill.

Emma Hardy Portrait Emma Hardy
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The hon. Lady is making an excellent speech and I just want to echo the support for universal credit conditionality. I represent an urban seat that faces similar but different challenges from hers, and I completely support the idea that universal credit should still be allowed; we do not have an issue of seasonal workers, but we do have an issue of people on universal credit not always being able to get the opportunity to do the training they want, because they are forced to take zero-hours contracts instead. As the hon. Lady says, there is opportunity everywhere, but only if we make it so. I just wanted to speak in support of what she was saying on this.

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I can perhaps understand the Government’s reluctance to accept a large raft of amendments, but I am not asking for the earth. What new clause 5 seeks is a review of a system that is not working at present. The end result, currently, is that the UK economy suffers and many people are denied the opportunity to better their lives. We owe it to them to remove these barriers.
Emma Hardy Portrait Emma Hardy
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It is always a genuine pleasure to follow the hon. Member for Waveney (Peter Aldous), who spoke passionately and articulately of his desire to support, through new clause 5, the people who need that support the most. It was an excellent speech with which I wholeheartedly agreed.

I will not detain the House for too long in speaking about my amendment 17, which is intended to provide additional support for people with special educational needs and disabled people. The Bill proposes that there should be an employer representative body in each area to create local skills improvement plans, to which colleges would have regard. The implication is that colleges would train their students in the skills that they need, thereby improving the labour supply—that is the theory—but the Bill, in its current form, is silent on how that will work for students with special educational needs or disabilities. One of the aims of the national disability strategy is to reduce the disability employment gap, but we see no evidence of that in the Bill as it stands. I tried to raise those points in Committee, although unfortunately I missed some of the sittings because of covid.

I would like the Minister to go away and have a look at a few issues. First, LSIPs should explicitly include actions to tackle the disability employment gap. Although there have been positive moves to narrow it in recent years, the gap remains significant. That is one of the points I raised with the Minister in Committee. Figures show that the employment rate of disabled people is 28.4 percentage points lower than that of people who are not disabled.

Secondly, LSIPs should be informed by consultation with organisations representing the needs of disabled people. We know that, all too often, disabled people feel that their voices are not being heard in those forums. I think it will be a missed opportunity if we do not use the Bill, and the new process of local skills planning that it offers, to help ensure that people with disabilities are asked to contribute to their local economy, and that their voices are heard in the discussion about what that future local economy looks like. An amendment to this effect was voted down in Committee but has been incorporated in the Department’s statutory guidance. I hope that reviewing the extent to which employer representative bodies acted upon this element of the guidance, and what impact it had, will form part of the evaluation of the LSIP trailblazers.

Finally—this is the issue that amendment 17 seeks to address—the Bill should contain measures to ensure that ERBs are composed of employers who demonstrate reputable practice in relation to equality and diversity in employment, in respect of matters including disability. We do not want a board of employers planning and determining skills policy if they have no record of being inclusive and decent, because without inclusive and decent employers on the board, there will not be an inclusive and decent LSIP. That is why my amendment states:

“Representative bodies which are employers, and employer organisations which are members of employer representative bodies, must sign up to the Disability Confident employer scheme within six months of being designated, or becoming a member of, the employer representative body.”

It is a small amendment that simply seeks to ensure that there is the best possible LSIP. If that is to happen, we need the best possible employers. We want employers with a record of treating disabled employees well.

There is another point that I raised with the Minister, and I hope he has had a chance to consider it again. The definition of “local”, and the difficulties of defining a geographical region, arose in Committee, and I have not yet seen any proposals explaining how that will be dealt with. To many Members, the definition must seem fairly obvious—why is it contentious that we do not know what constitutes a local region?—but, as I pointed out to the Minister, the local enterprise partnership in Hull is different from the local authority because it covers more than one region. It is different from some of the big employers such as the Humberside police and fire and rescue services, which are different from the chamber of commerce, which is different from the Ofsted regional body, which is different from the regional skills commissioner area, which is different from the new organisation proposed in the Government’s White Paper—a board to look across the Humber at large businesses and zero carbon, which has not even been created yet. All those bodies have slightly different geographies, so I am keen for the Minister to explain the definition of “local” in his local skills improvement plans.

Sarah Champion Portrait Sarah Champion
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I largely welcome the aims of this Bill to improve the quality and funding of post-16 education, but it will do little to tackle the major skills shortages in key sectors including health and social care, manufacturing and engineering. It introduces local skills improvement plans, which would be created by employer representative bodies to assess local skills needs and help shape the courses that further education providers should offer to fill those needs.

In principle, these measures are good, but the Bill is significantly weaker in its current form than it was on Second Reading, after it had been thoroughly improved by amendments voted for by the Lords. I was deeply disappointed that during Committee stage in the Commons, Conservative Members voted to reverse these changes, which would have hugely benefited students from all backgrounds. I urge the House to take this opportunity to support Labour’s amendments, especially amendments 15 and 16.

Previously, the Bill would have retained funding for BTECs for at least four more years, ensured that no student would be deprived of the right to take two BTECs, and allowed students to keep their universal credit entitlement while studying. It would also have required LSIPs to be developed in partnership with local authorities and further education providers, rather than just by the employer representative bodies. Now all those sensible and valuable improvements to the Bill have been scrapped, and I urge the Minister to reconsider.

I am particularly outraged by the Government’s plan to scrap funding for BTECs. BTECs make up the majority of level 3 qualifications in this country, with nearly a quarter of a million young people taking at least one last year. For many young people, they are the most effective pathway to higher education or skilled employment. My hon. Friend the Member for Chesterfield (Mr Perkins) has made the important point that last year 230,000 students took a level 3 BTEC. It is the Government’s goal that in four years’ time only 100,000 students will be taking T-levels, which are the proposed replacement. Even if they achieve this, that could leave a gap of 130,000 students who will not be working towards an equivalent qualification if BTECs are no longer funded.

Who will be most affected by these changes? The Government’s impact assessment acknowledges that students with special educational needs and students from disadvantaged backgrounds are disproportionately represented on courses that risk losing funding. Some might be unable to achieve a level 3 qualification if these plans go ahead, so again I urge the Minister to reconsider. Research published by the Social Market Foundation in 2018 showed that students accepted to university from working-class and minority ethnic backgrounds are more likely to hold a BTEC qualification than their peers. Is this retrograde step really what the Government would consider to be levelling up?

I was proud to work with Natspec in tabling a series of amendments that would have strengthened the provision of LSIPs for students with special educational needs and disabilities. Some 21% of all students in general further education colleges have a learning difficulty or disability, and the figure rises to 26% among 16 to 18-year-olds. There is no mechanism in the Bill to encourage or require employers to use local skills improvement plans to help address the disability employment gap, which stands at nearly 30%.

My amendments would have required the LSIPs to include positive actions to improve the employment prospects of disabled people, and required members of employment representative bodies to demonstrate a commitment to equality and diversity, so that they can create an inclusive plan for all, especially disabled people. These amendments were debated in Committee, and though I regret that the Government did not agree to put these conditions in the Bill, I am pleased that the Minister gave assurances that these key requirements would be in statutory guidance. I thank the Minister for that, and I ask him to confirm his commitment to working with organisations such as Natspec and the Association of Colleges on the guidance to make it as effective as possible.

Disability employment and the needs of young people with SEND should not be thought of separately, or as an issue that will relate only to forthcoming SEND Green Paper. They must be integral to the Government’s plan for further education, and to addressing the nation’s skills needs.