College Funding

Iain Duncan Smith Excerpts

Monday 21st January 2019 Westminster Hall

[Robert Halfon (Harlow) (Con)]

It is a pleasure to serve under your chairmanship, Mr Walker. I welcome the Minister, who is my successor in the role. I know that she has a passion for further education.

We know that FE is vital for our economy. Done well, it can tackle three huge deficits: our skills deficit, our social justice deficit and our social capital deficit. Our colleges are vital assets. They are institutes that should be at the heart of every community. Although we are talking about funding today, I will take this chance to praise my local college, Harlow College, which is one of the finest colleges in the country. It has had a significant amount of funds to develop an advanced manufacturing centre, a new maths school and an aircraft college at Stansted airport, one of the first of its kind in the United Kingdom. I know that some funds are coming to our colleges, and that is one reason why I have visited Harlow College more than 65 times since I became a Member of Parliament. Nevertheless, the chasm in funding for education either side of a student’s 16th birthday has now widened to 24%.

The Institute for Fiscal Studies has given FE the dubious accolade of “biggest loser” in education, noting that it is the only area to fall in real terms, year on year, for more than 10 years. By 2020, we will be spending the same amount in real terms on educating and training 16 to 18-year-olds as we were in 1990. People might be forgiven for thinking that that is an accidental failure of policy making; the truth is that it is much worse. On 31 January 2017, the Minister for Schools told the Education Committee that in 2010 the Government decided to prioritise spending on five to 16-year-olds—on the grounds that it had a more demonstrable impact on life chances—than on post-16 education, when presumably it would be “too late”. But people develop at different points on the education ladder of opportunity and, for some, FE can be the chrysalis stage between the caterpillar and the butterfly.

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

A recent report by the Centre for Social Justice showed that only 15% of people in the UK who start work at entry level will ever rise above that level, and that is one of the lowest percentages in the developed world. Does my right hon. Friend agree that colleges such the excellent Waltham Forest College are key if people are to upskill and change skills, and that we should not, therefore, write people off at the age of 16, 17 or 18, or even 35 or 40? Colleges such as the ones that he and I have mentioned are in a real position to help people to achieve that, and therefore, in some senses, they are more important even than universities.

[Robert Halfon]

My right hon. Friend is absolutely right. Colleges are very important for social justice because they help to give people from disadvantaged backgrounds the chance to climb the education ladder of opportunity, even though we know that life chances are largely influenced during the time before a child starts school. The Education Committee, which I chair, will soon be producing a report on that subject.

FE colleges are the economic trampoline that our country badly needs. With one in 10 degrees now achieved in colleges, there is huge potential for FE to drive the revolution in degree apprenticeships that the Education Committee called for in our recent report on value for money in higher education. The introduction of T-levels is a good sign that the Government are getting behind FE rather than perpetuating its status as a poor relation of secondary and higher education, but the excellent investment in T-levels is not the same as core investment in FE. The £500 million provided for T-levels is additional funding for a new initiative. T-levels are of a scale and seriousness far beyond those of the relatively small-scale targeted funds, which are eye-catching in a Budget but will not lead to lasting long-term change.

Before embarking on costly new projects, such as national colleges and institutes of technology, the Government need to consider whether existing providers could deliver their policy objectives. We often announce new initiatives when we should really bring together and strengthen what we already have. On 10 October last year, as part of the “Love Our Colleges” campaign, we held a special session with the Association of Colleges, the National Union of Students and the Sixth Form Colleges Association. James Kewin from the SFCA told us:

“Too much of what we see in 16 to 19 now starts with the press release and works back...policy by press release is quite damaging and the much more mundane reality is we just need a higher rate of funding.”

That is exactly what the Education Committee wants to see, and it is why last April we launched our inquiry into school and college funding to examine where the truth lay in the polarised debate between those who say that education funding has been subject to swingeing cuts and those who claim it has gone up in recent years. Yes, our colleges need more money—starting with the core funding rate of £4,000 per student—but it is even more important that the Department for Education comes up with a long-term strategy for schools and colleges. If the NHS can have a 10-year plan and £20 billion extra, why can education and our colleges not have a 10-year plan and the money they need?

In the written evidence to our inquiry, the real-terms reduction in post-16 funding was deemed to be inexplicable after the raising of the participation age to 18, especially when one accounted for the fact that, as has been highlighted, the cost of providing education—particularly technical education—between the ages of 16 and 18 is higher. That is evidenced by the fact that charges for post-16 education in the independent sector have gone up rather than down.

In truth, changing all that will involve self-restraint on the part of policy makers and Ministers. We will need to resist the temptation to tweak and fiddle. We will need to focus on the outcomes that we want in 10 to 20 years’ time, not on what might be attractive over a shorter timetable. Yes, the Committee is hearing evidence that is critical of the Government’s approach, but we are trying to help the Minister and to be as supportive as we can of the Department as it enters into negotiations with the Treasury for the next spending review period. A Select Committee trying to help the Department it oversees is certainly swimming against the tide, but I hope that our report will lead to much more investment in FE colleges and a new, long-term approach. For too long, FE has been called the Cinderella of education, but we should remember that Cinderella became a member of the royal family, and she did not crash the carriage. We need to banish the ugly sisters of snobbery and underfunding.