(5 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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I congratulate the hon. Member for Gloucester (Richard Graham) not only on his eloquent speech but on taking so many interventions. I also congratulate every Member who is here, because their presence sends out a strong signal, not only to the Minister for Apprenticeships and Skills, who we know gets the message, but to the Treasury. I hope that the televisions in the Treasury are blaring away with Westminster Hall on the screens, because it is the Treasury that needs to get the message. That is why a cross-party consensus is so important. We are all essentially saying the same thing—that further education has been overlooked and needs sustainable, long-term funding.
We are lucky enough in the Black Country to have some fantastic colleges, including City of Wolverhampton College. It is a place that is close to my heart because I studied my Spanish A-level there alongside those I studied at school. The college provides vital educational opportunities to both young people and adults. It offers more than 300 vocational and academic qualifications to 4,500 students, covering a wide range of full and part-time courses, including a well-regarded journalism course. It also has some fantastic, but expensive to maintain, facilities that enable people to train in the trades, such as plumbing.
Many of the facts and figures have been covered by colleagues, but it is worth saying that the Institute for Fiscal Studies recently said that further education was the “biggest” loser in cuts to education. It simply cannot be right that funding per pupil for 16 and 17-year-olds has been frozen at £4,000 since 2014 and £3,300 for 18-year-olds, or that lecturers are paid about £7,000 less than teachers. It is not about just the money or the statistics; it is about what we value as a society and what our objectives are. If we are serious about tackling inequality and about ensuring that our young people, and adults who have perhaps missed out on opportunities at school, fulfil their potential, we need to do something about the situation.
In Sheffield, we have a tale of two cities. The difference in life expectancy between the east and west is 10 years. One of the biggest differences is that in the east we have little access to schools with sixth forms, so FE is a really important unlocker for social mobility. Does my hon. Friend agree that this is fundamentally a class issue?
Indeed. If we are serious about social mobility, we must fund further education better. More broadly, if as a society and as an economy we are serious about attracting more investment into the UK and competing in the world and, crucially—the hon. Members for South West Bedfordshire (Andrew Selous) and for Gloucester mentioned this—if we are serious about tackling low productivity, we cannot do anything about those things unless we invest in the skills of our young people and adults. We know that we have a problem with that in the UK; it is not a new problem. It is pretty clear to everyone here that we need sustained increases in funding for colleges, and the Raise the Rate campaign will, I hope, ultimately be successful.
The colleges have done a good job in raising the problem. Often in education debates, we focus purely on the early years, which are very important, and on primary and secondary and then university education, and further education is overlooked. That is why today’s debate is critical.
I say again that I hope the TVs in the Treasury are switched on to Westminster Hall this morning. I thank the Minister for her advocacy. This is not just the right thing morally; increasing and sustaining further education funding is the right thing to do for the prosperity of our country.
(5 years, 8 months ago)
Commons ChamberWe do not want parents to keep their children out of school. I hope I can reassure my right hon. Friend that the intention is to say that the long-standing right to withdraw children from sex education does not apply to relationships education or the subject of human reproduction in the science curriculum, but that there is that right to request when it comes to sex education. The request is put to the headteacher, and the guidance that we issue to headteachers clearly says that the headteacher should comply with that request up to three terms before the child reaches the age of 16. Why three terms before the age of 16? Because 16 is the age of consent, so the child should be able—if they wish—to have some sex education for at least a term before they reach that age.
I welcome the Secretary of State’s statement and the impressive range of reforms that he is introducing, but will he say something about how the increasing number of children who are being home-schooled will benefit from these reforms?
There is a distinction to be drawn between children who are being home-educated and children who are not in school but who are sometimes statistically deemed to be home-educated because they are not in school; those are two different matters. Many parents are home-educating their children, sometimes because their children have had difficult experiences at school or have special needs and so on, and those parents are doing the most amazing and dedicated job in educating their children. The simple answer to the hon. Lady’s question regarding how this reform will help children who are not at school is that it will not because this is about lessons that happen in schools. Where children are able to be in school, we want them to be in school.
(6 years ago)
General CommitteesIs it not the case that many colleges that rightly focus on technical education have a lot of up-front capital costs because they have to invest in the specialist equipment that is needed for the courses they offer?
My hon. Friend makes an extremely good point, which illustrates the weaknesses of many of the Government’s initiatives in this area. I will not stray into the institutes of technology, but it is the same principle: the Government think a lot about structures in terms of capital expenditure, but seem less ready to address the issues with equipment that she mentions and—this is, of course, a big bugbear with the sector—the funding of progression and salaries.
The explanatory memorandum states:
“There are currently 37 FE colleges that have a ‘published Notice to Improve for financial health’”.
However, the Department estimated last month that on “today’s assumptions”, over the first 10 years of the insolvency regime, an additional 63 could—I am not saying that they will—
“meet the current triggers for a notice”.
The Department’s document goes on to say that,
“as a central estimate, we believe 100 colleges will need to fully familiarise themselves with the insolvency procedures.”
Again, I stress that that does not mean that they are in imminent danger of insolvency; it is a precautionary measure.
In Government and in legislation, we have to plan and hope for the best, but have backstops for the worst. That is the purpose of the statutory instrument. The Department states that there could be a best case scenario of 80 colleges and a worst case scenario of 150 colleges being at risk. It is therefore slightly strange that paragraph 7.9 of the explanatory memorandum rather blandly states that
“in reality we expect that FE colleges entering insolvency would be a very rare event.”
That seems to be written more in hope than expectation.
This extremely worrying situation cannot come as a surprise because the Institute for Fiscal Studies found that spending on FE and skills fell by £3.3 billion in real terms between 2010 and 2017. Those cuts have been most severe in adult education. That is extremely relevant to the proposals because it is often forgotten that adult learners are an important part of the FE learner area. If that group no longer attends FE colleges in the numbers that it has historically, that puts additional pressures on courses and on the colleges’ financial structures. The Sixth Form Colleges Association has said similar things about the shortfall for its students.
As David Hughes, the chief executive of the Association of Colleges said, while
“the regime being introduced in itself is not a bad thing, the problem is that it is likely to come into effect at an historic low point in college funding.”
I also agree with the University and College Union, which said in its briefing for this debate that the Government’s focus on college insolvency, without considering some of the broader issues, sends the wrong message about the importance of FE. The focus on facilitating market exit in FE rather than strengthening the sector and investing in the necessary resources to help institutions thrive sends a negative message to the public about the importance that the Government ascribe to the sector.
I want to ask several specific questions and make a number of observations that arise from the explanatory memorandum. Paragraph 10 talks about the consultation outcome. The Minister has already referred to the 30 formal responses that the Government received. Paragraph 10.3 states that in response to a question whether
“any specific modification to normal insolvency legislation were needed to allow it to apply effectively to FE and sixth form corporations”
there was
“strong support for the FE insolvency regime mirroring standard insolvency procedures for companies, which is the approach that we have taken.”
There is then a reference to several respondents saying there should be an interim moratorium.
In cold grey terms, those are of course some of the necessary things that the insolvency regime must include, but the difference between the companies that the memorandum uses for comparison and further education is that at least three groups of people are affected. One is the staff and the second is the creditors. Some of those are likely to be small business suppliers and others in the local supply chain, of which FE colleges are often a significant part. It is likely that they would be negatively affected by the insolvency proceedings. The third group is students and lecturers.
I appreciate that it is not an easy thing to include in a statutory instrument, but I appeal to the Minister and to the Department for Education in general to take account, when they consider how to take the matter forward, of those broader audiences. I ask them not simply to look at the question with the narrow scope that a bank might apply.
Paragraph 11 of the explanatory memorandum deals with guidance. It states:
“The Department will publish two sets of guidance before this instrument comes into force.”
It does not tell us when they will be published, and it would be helpful if the Minister could tell us—if not today, then by a note to members of the Committee. That is important, because she has talked about the support that the Government want to give, so as to have more experienced governors and clerks. She gave some examples, and I am pleased to hear that the Further Education Trust for Leadership will be involved in the process.
I am bound to say—and I think that it is also an issue in school governance—that at the moment, although it may change in future, the support that Governments of all hues have given governors in piling on to them various responsibilities, including difficult responsibilities for finance and insolvency, has not been commensurate with the extra time and effort involved, and the extra knowledge they are supposed to possess. I do not think it would be out of place if I were to ask the Minister what amounts of money or, for that matter, practical support from the Education and Skills Funding Agency or the Department, are going to be forthcoming on this occasion. I say that because the issue is important.
I want to touch on the special administration procedures. Concerns were expressed during the passage of the Technical and Further Education Act 2017 about how long they would take. The Minister might be interested to know that her colleague who had responsibility for the Bill in the House of Lords showed, in Committee in March 2017, that he recognised that:
“Concerns have previously been expressed…about the time a special administration might take. I share these concerns. However speedily the special administration is concluded, it will be too long for those involved. Staff, students and creditors will want certainty about what will happen to them at the earliest opportunity.”—[Official Report, House of Lords, 1 March 2017; Vol. 779, c. GC215.]
Again, I ask the Minister whether such certainty, or those timescales, will appear in the sets of guidance. If they will not appear in the guidance, will she give the Committee some idea—perhaps through a note, after consulting her officials—of how long that period is likely to be?
These regulations have been deemed necessary. They would have been necessary under any circumstances, but they are particularly necessary because of the sector’s fragility, which has been caused by the cuts that it has faced. I am sorry to say to the Minister—I know she would like not to be challenged on this today—that that was not helped by the Chancellor’s complete failure on Monday to offer any sort of funding uplift to colleges or their staff. That is not to mention the disastrous advanced learner loans policy, for which more than 50% of the allocated funding has been unused and returned the Treasury. Not much of that has been distributed to the colleges that are in dire need of it.
I appreciate that the Minister feels strongly that FEs should have more funding. She has acknowledged that, and made that point again today. She may say, in attempting to erect an air-raid shelter over her Treasury colleagues, that some relief might come on the back of the Augar post-18 report, as a result of issues to do with the Office for National Statistics investigation on resource accounting and budgeting in higher education, which is expected in the new year. The reality, as the Minister just acknowledged, is that the comprehensive spending review will be the first opportunity to offer significant financial relief if the review recommends financial help to FE. That means, in the normal scheme of things, that none of that money will feed through to FE colleges until the academic year 2020-21.
In the meantime, it is fair to ask how many other colleges will slip into a fragile state that might—I stress the word “might”—produce the need for insolvency regulations. It is instructive, in that respect, to quote the FE commissioner, who has been called upon to look at a number of the country’s biggest colleges, which are facing significant challenges as a result of funding cuts and the loans policy. These are simply examples; they demonstrate by no means the full extent of the fragility that has been exposed over the last 12 to 18 months. According to an intervention report from the FE commissioner, Northumberland College has undergone a cashflow crisis. The report says:
“After several years of growth, the college faces a substantial shortfall in income for 2017-18, which is forecast to fall short of the budget target.”
It warns that income is set to decline even further in the college in 2018-19. In July, the Northumberland Chronicle reported that more than 40 staff had taken voluntary redundancy after the college reduced the number of courses on offer.
That is an inevitable consequence of the drip, drip, drip of funding cuts over recent years. To thrive and survive, most FE colleges rely on a diverse mixture of activities, and on money. Money comes from the adult education budget. If there is a shortfall, there are problems. It comes from apprenticeships. Similarly, if something does not take off, there are problems. There are trading activities, and colleges are increasingly reliant on the European social fund and other funding.
That brings us back to the statutory instruments we have debated over the past few weeks and the issue of replacing the European social fund. The Minister is very active in those areas, so perhaps she will say whether she has had more conversations with the Treasury about that since the Budget or before it.
Let me give another example of a college that is in dire straits. Birmingham Metropolitan College was rated in March last year as requiring improvement for the second time in March last year. It is one of the largest colleges in the country, with an income of £61.3 million, total debt for the year of £23.4 million and 16,000 learners. It has had a notice of concern for financial health since July 2015, when it received a visit from the further education commissioner. My third example has been raised on the Floor of the House and elsewhere by my hon. Friends who represent Hull constituencies. It is the dire financial straits in which Hull College has found itself since November 2016, when it was forced to request exceptional financial support from the Education and Skills Funding Agency after its bank withdrew support.
In the light of the things that I have described, the idea that this insolvency thing will be bedded in and called on fairly sparingly might need to be revisited. The Minister was very clear about the timescale for cutting off exceptional financial support for colleges once the insolvency regime is introduced. To be clear, is she saying that her Department will curtail that funding completely? Is she not concerned that, owing to the number of colleges at risk, withdrawing those funds so quickly could have a significant impact on a large number of colleges? What timescale does she envisage, if one has been envisaged, for a transition period between the implementation of the regime that the order will put into place—we all know that such changes do not take place overnight—and the cut-off of that last-resort funding?
The Minister will be pleased to know that I will not rehearse our long-standing criticisms and concerns about the area-based reviews that took place largely under her two predecessors. However, I was hoping that she might be able to tell us how those reviews had reduced the possibility of future financial failures. The statistics I have listed suggest a different picture. What assessment has she commissioned of the impact of the review or their contribution to reducing the possibility of insolvencies? If she has not commissioned an assessment, will she do so—preferably as an external examination, undertaken outside the Department?
I have talked about guidance. The order alludes to the position of students with special educational needs, about whom we have particular concerns. Given the Government’s keenness to be seen to be doing the right thing on disability and equality issues, how does the Minister intend to ensure that there is no disruption to the particular requirements of students with special educational needs in these circumstances, who often require tailored support?
It seems that, as always in these cases, the devil is in the detail. However, the detail is not always there in the memorandum. I raise with the Minister a fairly fundamental issue that we discussed to some degree during the passage of the Technical and Further Education Act 2017 but which does not, needless to say, find itself in these specifics terms today. A primary concern of the Opposition and other organisations, including the UCU, was that the Act basically allowed for the assets of an insolvent college to be handed over to private companies, as long as they were delivering education. Regulation 15, which deals with section 107—the distribution of a statutory corporation’s property—goes into the detail of that, but it does not specify that the college assets that are taken over by a private company should serve the same cohort as the insolvent provider. The regulation reads as if it might allow a college’s assets to be handed to a school or university, or to a much smaller and narrower education institution, possibly for significant profit, without placing any requirement on them to continue to deliver further education as opposed to initial or higher education.
(6 years, 4 months ago)
Commons ChamberMy hon. Friend is right. We have listened carefully, including to many views in this Chamber, and we have delivered. As of September, foster carers who qualify for the 30 hours a week free childcare for three and four-year-olds can take advantage of it.
The Minister will know that nursery schools, as distinct from nurseries, provide first-class education in deprived areas in the early years. However, their funding is still in doubt beyond 2020. When will the Minister make an announcement about these nursery schools and put nursery schools in Wolverhampton, which provide good and outstanding education, on a sure financial footing?
There are 402 maintained nursery schools. The hon. Lady has championed their cause and I have seen at first hand the great work they do. She is right that the funding goes up to 2020. Clearly, we have to see what happens, but they are a very important part of the mix of provision.
(6 years, 9 months ago)
Commons ChamberThe sedentary chuntering of the hon. Member for Ealing North (Stephen Pound) would constitute a book in itself, and it might sell rather well.
This Government are committing to providing a world-class education for all our young people, raising attainment and narrowing the gap between the affluent and the disadvantaged. Working with our dedicated teachers and professionals throughout education and beyond, we must continue to raise standards, from early years through to further and higher education, and ensure that the right care and support are always there for society’s vulnerable children. I will work to make sure that our education system offers opportunity to everyone, in every phase and in every place. The successes are clear, with 1.9 million more children in good or outstanding schools, and the latest figures showing the attainment gap narrowed by 10%, but there is more to do to spread opportunity, particularly in areas of the country historically left behind.
I recently visited Ashmore Park Nursery School in my constituency, which provides outstanding education, as do 60% of nursery schools across the country. Unfortunately, the future of their funding is now in doubt. Will the Secretary of State guarantee their sustainable funding beyond 2020?
(8 years, 9 months ago)
Commons ChamberI received a full maintenance grant when I was at university, and its impact was not just money in my bank account, but the feeling of confidence and freedom that I could choose the degree that I wanted at my first choice of university—that important point has not really been covered by the debate. When I graduated, I did not have £53,000 of debt, which is what the poorest 40% of students will graduate with. I remind Conservative Members that we are talking about the poorest students from the poorest backgrounds in our country. As my right hon. Friend the Member for Tottenham (Mr Lammy) said, these are the sons and daughters of dinner ladies, bus drivers, and care workers on zero-hours contracts, and we should not forget the reality and background of those students. Let me say to the Minister, and to other hon. Members—particularly those who are chuntering from a sedentary position—that this is not scaremongering. This is a serious debate—
The debate was five years ago.
There he goes again. This is a serious debate about the impact of the proposals on our poorest constituents. That debate should be taken seriously by the Minister and by Conservative Members. This is not just about participation; this is about fair access and about which university someone chooses to go to, if they have that first choice. Some of my constituents in Wolverhampton might not choose to apply to Oxford, Cambridge or even perhaps the University of Sussex, because it is too far away and will be too expensive. This is about the choices that the poorest children must now make, given the level of indebtedness that they will face.
The hon. Lady talks about the sons and daughters of those in poorer professions, such as dinner ladies and so on. Why can those people not take out loans, make a great success of themselves and pay them back? Why are they different? They should not be different because they are special people.
The people we represent have the same ambitions and aspirations, and Government Members should not cast aspersions on what Labour Members think about that. They will be graduating with £53,000 of student debt. I hope they still will go to university. I hope that will not affect participation. However, I fear it will and I fear it will affect the choices they make. We will all be poorer for it, because the talent will not come through.
I say to the hon. Gentleman that this is part of a wider pattern under this Government: the problem of intergenerational inequality is worsening. I came into politics precisely because I want to live in a country where the background and income of someone’s parents should not determine how well they do in life and whether they fulfil their potential, but inequality is increasing. The Intergenerational Foundation calls this younger generation the packhorse generation, because the Government are burdening them with more and more debt. Yet they face more insecurity in the workplace and higher housing costs. Some have given up hope of ever owning their own home, because we are not building enough homes. To be fair, that is true of preceding Governments, too. The packhorse generation is taking on huge levels of debt and faces a much more insecure future. That is why I hope the Government will think again. Intergenerational unfairness and intergenerational inequality are growing problems.
I understand there is an increasing burden on the current generation largely because of the enormous, overweening burden of debt the Government inherited. Does the hon. Lady agree that the young people of this generation who are not going to university would otherwise be expected to pay for those who have the benefit of doing so?
We had that debate in the previous Parliament and in Parliaments before that. We are talking about the very, very poorest students. Their parents do not have a penny to give to them in support and they will graduate with a huge level of debt.
I say this again to the Government: since the election of the Tory majority Government and the previous coalition Government, the younger generation have been hit with the removal of the education maintenance allowance, the trebling of tuition fees and now, for the poorest students, the removal of grants. The Government need to think really carefully about intergenerational inequality and the social contract between young people and the state. If the state no longer supports the aspirations and opportunities of the poorest students, the social contract will break down and we will all be poorer for it.
(11 years, 1 month ago)
Commons ChamberMy hon. Friend is right to highlight the encouraging rise in the number of people who want to adopt coming forward and the number of adoptions taking place. However, we still need to do more to ensure there are no barriers in the way of anyone who wants to come forward and give a child who needs the best possible start in life that permanent future, and we are determined to see it through.
The Secretary of State said last week that poor children who do not have their own room to do their homework in do not achieve their full potential. Can he explain the policy implications of that statement, and can we assume that he will be arguing against the bedroom tax?
The policy implications are clear: every Member of this House should support the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Grantham and Stamford (Nick Boles), in his planning reforms, which will ensure that the price of houses falls and that more big family houses are built. It is shameful that the shadow Secretary of State for Communities and Local Government has taken the Labour party into a position where it is the party of nimbys, the party opposed to opportunity and the party opposed to growth and development. That is an example of how weak the Labour party is: it blows with every wind instead of standing up for the next generation.
(11 years, 7 months ago)
Commons ChamberThere are a great many initiatives taking place. Apart from the advanced manufacturing supply chain finance announced this morning, we will be talking tomorrow about a new raft of initiatives for non-bank lending. The hon. Gentleman will have seen this morning’s ministerial statement on the future role of the business bank. He is right that the closure of the carpet factory is a serious blow, but it relates more to the viability of the company than to the ability of getting credit from banks.
As chair of the all-party parliamentary group on aerospace, I want to welcome the announcement earlier this week of the aerospace technology institute. Will the Secretary of State or the Minister say more about the timetable for its creation and what types of investment it will support?
Yes, I co-chaired the aerospace growth partnership on Monday to press the industrial side of the partnership to get on with the money made available—some £2 billion spread over seven years. I have challenged them to make sure that the money starts to get put into action so that the institute is established as rapidly as possible this year.
(12 years, 2 months ago)
Commons ChamberMy hon. Friend makes a good point. The Government’s direction of travel is to give the professionals who run our schools more autonomy to run their schools as they see best. If regulation were the answer to all our country’s problems, every child would be a fluent reader and know their multiplication tables, and every local authority school would be in full compliance with the school nutrition regulations.
9. What plans he has for the future of GCSEs; and if he will make a statement.
The coalition Government will shortly announce their proposals for the future of exams at 16; we hope to ensure that future examinations work in the interests of all young people. We need exams that will keep pace with the best in the world and meet the demands of children, teachers and employers.
Today is the start of the new school year. Thousands of 16-year-olds in my constituency and across the country have had their hopes dashed and their plans devastated by this summer’s grading fiasco. When will the Secretary of State accept that it is his responsibility to tackle this injustice, and call for a regrading?
I quite agree that it is appropriate that we should tackle the problem, which arises from the structure of the GCSE examination. That is why we are removing modules and reforming examinations. For years, under Labour, Ministers sat idly by as we endured grade inflation and dumbing down. At last the tide is turning.
I am grateful to my hon. Friend, who has been a doughty champion of his local college and has visited me with its representatives to make its case. The answer is that we need to give colleges more freedom and flexibility to respond to local demand. That is why I simplified the funding regime, why I cut the number of statutory duties that colleges are burdened with, and why we removed a number of intermediary bodies. We believe in trusting colleges to respond to local learners and local businesses in Stafford and elsewhere.
T6. We should be incredibly proud of Team GB’s Olympic success, including that of my constituent, gymnast and bronze medallist Kristian Thomas. Does the Secretary of State agree with the Government’s own school sports adviser, Dame Kelly Holmes, that two hours of PE per week should be compulsory in schools?
Let me congratulate the hon. Lady’s constituents on their achievements. I know that Wolverhampton, which I think held a marathon only this weekend, is a place of sporting excellence. Dame Kelly Holmes has done a fantastic job as adviser and continues to help us in every way, but although we should do everything possible to encourage the maximum participation in and enjoyment of sporting and physical education, compulsion of the kind that she has called for is not something I believe in.
(12 years, 9 months ago)
Commons ChamberBritish Aerospace has a 17% global share, and as such is No. 1 in Europe, but its future depends on not only exports but on investment in research and development. Given that many other Governments in Europe and around the world give more support to research and development than we do, what more can the Government do to help in that vital area?
That is why the Government have provided cash protection and ring-fenced the science and research budget, and why in the autumn statement we were able to announce significant increases in funding for the Technology Strategy Board.