Opportunities for the Next Generation

Gareth Thomas Excerpts

Tuesday 13th September 2011 Commons Chamber

[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

We have, as ever, had an interesting debate, with the first Back-Bench contribution coming from my hon. Friend the Member for West Bromwich West (Mr Bailey), who rightly raised concerns about young people being deterred from going to university.

My hon. Friends the Members for North West Durham (Pat Glass) and for Scunthorpe (Nic Dakin), in powerful speeches, rightly outlined the huge mistake that the Government have made in axing the education maintenance allowance.

My hon. Friend the Member for Islwyn (Chris Evans) set out the stark difference between a Labour Government in Wales, committed to EMA and keeping tuition fees down, and the Government here in Westminster.

My hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) rightly raised concerns about what axing Aimhigher means for the delivery of better access to university, and again she rightly pressed Ministers to look afresh at the case she has been making for the use of public procurement to drive more apprenticeship places.

My hon. Friends the Members for Swansea West (Geraint Davies) and for Chesterfield (Toby Perkins) highlighted the absence of a clear and coherent growth strategy—a point that my right hon. Friend the Member for Southampton, Itchen (Mr Denham) clearly highlighted in his opening remarks.

My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) dwelt on concerns about the impact on future social mobility of the measures from the governing parties.

My hon. Friend the Member for Derby North (Chris Williamson) quite rightly exposed the Government’s failures on Bombardier, offering a devastating indictment of the Government’s approach to manufacturing industry and of the future opportunities for young people not only in that business but, as other Members have said, in other firms such as Sheffield Forgemasters.

My hon. Friend the Member for Middlesbrough South and East Cleveland (Tom Blenkinsop raised the fears that young people in his constituency will be deterred from going to university, and he also highlighted the growing concern about rising unemployment among women, particularly in his area.

My hon. Friend the Member for Edinburgh East (Sheila Gilmore) joined in the concern about the impact on future mobility of the Government’s measures, but she also highlighted the need for more social housing funding in her constituency in particular, but also nationally.

We also heard from the hon. Members for Wirral West (Esther McVey), for Worcester (Mr Walker), for Solihull (Lorely Burt), for North Swindon (Justin Tomlinson), for Strangford (Jim Shannon), for Birmingham, Yardley (John Hemming) and for Harlow (Robert Halfon), but, apart from the hon. Member for Harlow, who joined the call from Opposition Members for a far greater effort by the Government to use public procurement to secure still more apprenticeships, we heard little from Government Members, including little sadly from the Minister for Universities and Science, who opened for the Government, that will encourage Britain’s next generation to believe that this Administration are not playing fast and loose with their prospects.

We had no apology for the decision to treble tuition fees, no apology still for axing the future jobs fund; no apology for scrapping education maintenance allowance; no apology for an economic policy that is cutting our deficit too far, too fast; and no apology for its devastating impact on prospects for the next generation.

The Government instead claim that the impact of their deficit reduction plans will be shared, but the truth, as the Institute for Fiscal Studies revealed this week, is very different. It is the next generation in particular who are bearing the brunt of the Government’s misplaced economic plans. When almost 1 million young people are out of work and Government policies are having little or no positive impact, it is surely time for the Government to come up with a plan B. Leaving young people on the dole is a waste not just of talent but of money, because it is pushing up the benefits bill.

One would have hoped that the current generation of Conservatives had learned the lessons of the 1980s. For years back then, even when recessions were officially over, youth unemployment continued to rise, and that is why action is needed now to prevent another lost generation of young people. Thanks to Labour’s youth jobs programme, youth unemployment was falling. Now, with the future jobs fund axed, youth unemployment is rising.

We have also had to listen to the complacent assertion from Conservative and Liberal Democrat Back Benchers that trebling tuition fees will not discourage the brightest and best of the next generation from going to university. Never mind that independent analysts, such as London Economics, advisers to Lord Browne’s inquiry, or the London School of Economics’ centre for the economics of education, both predict that the numbers of those going to university will drop.

[Robert Halfon]

The hon. Gentleman says that youth unemployment was falling under Labour, but Office for National Statistics figures show that from 1997 to 2010 it increased by 39.2%. Will he explain that, please?

[Mr Thomas]

As my right hon. Friend the Member for Southampton, Itchen pointed out in his opening remarks, youth unemployment was actually falling for the vast majority of our period in office. Of course, there was a global recession, and youth unemployment rose during that time, but thanks to Labour’s jobs fund youth unemployment was actually coming down when we left office.

Perhaps we need also to dwell on the quality of the higher education that will be available to young people. Before the summer recess, the Minister for Universities and Science presented a White Paper that could have meant a dynamic future for universities and their students, that could have been the centre of our country’s plans to rebalance the economy and that could have helped to drive the growth of new jobs in the new industries; instead, we had little more than a Coulson-esque smoke and mirrors exercise to try to disguise the coming auction of places to the lowest bidder in order to help close the funding hole that trebling tuition fees has created in the Government’s higher education budget.

[Mr Willetts]

The shadow Minister attacks our higher education policies, but are the Labour Opposition committed to reversing our increase in tuition fees?

[Mr Thomas]

My right hon. Friend the Member for Southampton, Itchen set out in his opening remarks what Labour would have done had we been in office. The Minister will recognise that we have in place a detailed policy review, but there was absolutely no reason why his party needed to cut university funding by as much as it did or needed to see—as a result—university fees rise so much.

Instead, the right hon. Gentleman is taking places from universities with international reputations and seeking to auction them off to the lowest bidder. He makes much of student choice, but it will not be students who decide which universities get extra places in that auction.

The Minister, under pressure back in April, praised London Metropolitan university for keeping its fees below £9,000, but just days after his praise London Met announced that 400 courses were being closed; and in July, Carl Lygo, the chief executive of BPP, one of the new providers that the right hon. Gentleman wants to see do more, said that his institution would be forced to increase staff-student ratios as it expanded. With higher tuition fees on the one hand, and cuts in courses and worse staff-student ratios on the other, this is a Government who clearly think that such measures are a price worth paying.

“And the…financial cost”

—these are not my words, but those of the independent Higher Education Policy Institute—

“to students and taxpayers—is likely to be considerable.”

As the Minister said in his opening remarks, the Secretary of State—in his more saintly past—railed against the levels of personal debt. Now he aspires to huge increases in the levels of debt that students face on graduation. If that were not bad enough, the Higher Education Policy Institute also found in its analysis that

“social mobility is likely to be”

a

“…victim of the Government’s plans, and the new methods of allocating resources and controlling numbers look likely to reinforce…disadvantage rather than remove it.”

The Conservative party is damaging social mobility and entrenching disadvantage. Why, who on earth could have predicted that? Almost 2,000 university nursing places and 4,000 university teacher training places have gone this coming academic year; 10,000 extra student places were axed last year by the former Chief Secretary to the Treasury, the right hon. Member for Yeovil (Mr Laws); and 10,000 extra places are being axed next year. Each one is an opportunity gone for the brightest and best of the next generation to fulfil their hopes and their ambitions.

The apprenticeships guarantee scheme has been axed, EMA has been ended, there is rising homelessness and we have a Government in need of a plan B. They are leaving young people with a more uncertain future than at any time in the recent past.

The Government need a serious strategy for growth; they need a plan B; the motion offers them one, and I commend it to the House.

--- Later in debate ---

[Mr Thomas]

If the hon. Gentleman aspires, as he says, to high-quality apprenticeships, why is he part of a Government who have abolished the apprenticeships guarantee?

[Mr Davey]

We are doing a lot better than under the apprenticeships guarantee. The hon. Gentleman should have apologised for his motion, because, as my right hon. Friend the Minister for Universities and Science clearly showed, it does not tell the real story—the success story—about apprenticeships by suggesting that it is a negative story. The truth is that the absolute number of all apprenticeships is up, as is the absolute number of young people on apprenticeships.

I am afraid that there was some misunderstanding of that success story, despite the support for our overall policy. That is not surprising, in a way, because Labour’s record is surprisingly poor in this respect. As my hon. Friends the Members for Wirral West (Esther McVey) and for Solihull (Lorely Burt) said, under Labour youth unemployment increased by 40%, and the number of NEETs increased. One of the most surprising facts is that as the number of NEETs was increasing under the Labour Government, it was falling internationally, so we fell behind Hungary, Greece and the Slovak Republic in what we were doing for the most vulnerable young people in our society. That is not a record for Labour to be proud of.