Debate on the Address

Debate between Iain Wright and Simon Hughes

Wednesday 8th May 2013 Commons Chamber

[Simon Hughes]

There are all sorts of reasons. The hon. Gentleman must know that the last quarter has just been on the right side of zero. Growth has been small but positive. We avoided the triple-dip recession that people were saying was likely, given the terrible winter and the dreadful weather we had. The answer is that there has been a combination of failure.

The banks failed the economy at the end of the last Labour Administration. They were not sufficiently dealt with or regulated by that Administration, and they still have not got into a position where they are lending our constituents and small businesses in the right places the money to enable them to invest. Every single colleague around the House tells tales, rightly, of how difficult it is; people come to see us and tell us that they do not get the investment.

We have not been selling enough around the world, which is one of the avenues by which we must earn our way. That is why the Prime Minister, the Deputy Prime Minister, the Business Secretary and others have been out and about, going not just to our traditional trading partners but to the large, developing partners—Brazil, Mexico, Turkey, India, China—to develop our trade. That is why we are working very hard to get an EU-USA free trade agreement, to deliver growth.

The answer to the question is that the economy has been faulty as a result of a combination of historic and more recent factors, but the Government are seeking to do as many things as they can. Last year, the green investment bank was another initiative to get growth going in an economy in which the Energy Bill this year is likely to assist in the creation of up to 250,000 new jobs in green energy. That is really valuable and important. The hon. Member for Hartlepool called for a Bill to set up another form of investment bank. The Government have, as he knows, a plan for further investment lending to companies as well as the green investment bank, and that is welcome.

So jobs are up; apprenticeships are hugely up. The state pension is significantly up—higher than at any stage since Lloyd George introduced it. The income tax threshold is significantly up, from £6,500 more or less when we started, to nearly £9,500 this year, and next year to £10,000 before anyone pays any tax. Inflation is still low. Interest rates are very low, and that is hugely important for people with mortgages and businesses borrowing. Crime is at its lowest level for many years. Those are significant achievements, and I think we should be proud of that. It shows that many of the things that the Government have done over three years are working.

[Mr Iain Wright]

Given what the right hon. Gentleman has said about those “significant achievements”, do people in his constituency think they are better off now than three years ago? Does he think that living standards are rising?

[Simon Hughes]

No; many people’s living standards are not better than they were three years ago, but we have been dealing with what my right hon. Friend the Business Secretary calls the greatest economic heart attack we have had in his lifetime and mine. My constituents have seen, over several months, unemployment come down—not consistently, but there have been months when it has come down and youth unemployment has come down. They have seen an economy that is picking up. The construction industry in my patch is powering ahead; although I appreciate that it is not the same around the country.

But what my constituents have not yet seen, and what the Government are trying to deal with, is the inequitable opportunity and an inequitable distribution of the available wealth. One thing that the Liberal Democrats need to continue to argue for in the coalition, and which I hope the coalition will buy, is that we need to deal with the inequity in Britain whereby there are still people a mile and half from this building, in the City, and in Canary Wharf a bit further away, who have bonuses that are completely without justification, while there are many people on the minimum wage and struggling to get work. We need a redistribution of wealth—I am not ashamed to call for that—and a redistribution of the profits, and we need the banking industry to understand that it has to pay itself reasonable wages. The European Union has the right idea, in my view—not a view shared by the Chancellor—in seeking to make sure that we limit the bonuses given to people across the financial sector so that they do not, in effect, take far more than they deserve.

Debate on the Address

Debate between Iain Wright and Simon Hughes

Wednesday 9th May 2012 Commons Chamber

[Simon Hughes]

No, because other colleagues wish to speak and I am bringing my comments to a close.

The new President of France said after he was elected on Sunday that his two priorities were a fairer country and support for the next generation, the young people of France. I think that those are good things for us to champion for our country from these Benches. We need a redistribution of wealth and of work, an end to the obscenity of top pay and a closing of the gap between rich and poor. We need to make sure that work always pays, to create more apprenticeships and a more skilled work force, to give more opportunities for employment and self-employment and to build the largest opportunity for infrastructure investment that we can manage, in all countries and regions of the UK, and the largest affordable programme for housing that we can deliver, particularly social rented housing, which is desperately needed in my constituency and elsewhere. I guess that there is not a single colleague who does not have constituents coming to their surgery every week pleading with them to find somewhere where they and their partner, or they and their parents, or they and their children can live. Young people need a decent careers and youth service, decent work experience, decent mentoring, good apprenticeships and good further and higher education.

To the Prime Minister and the Chancellor, I say, “You were right, of course, to take as many poor people out of tax as you have, but please do not again reduce tax rates for the well-off.” Whatever the balance of equity, it came across very badly, it did not look as if we are all in this together and the evidence does not show that any further reduction will do any greater good for the economy. We have had one Budget which does this and we know the outcome, but no more please. Let us take the poorer out of tax, not the people at the top.

To colleagues here who sometimes have disagreements with the Government—we all do—I say that we have to remain strong, united, determined, liberal and radical. We have to be committed to the things we came here for: the spreading of wealth and power and a cleaner, greener, safer and, above all, fairer Britain.

To the people outside who wonder what we are doing in this difficult coalition, I say that we are clear that we cannot achieve everything we want because in a coalition, by definition, that is not possible, but it is better to be in government influencing a huge amount than in opposition influencing nothing. We are determined to use our influence not unfairly, disproportionately or unreasonably, but this is a partnership of two parties. That is the deal and that is what we will stick to.

We won 16% of the vote in the local elections the other day; we won 23% in the general election. It is not an impossible task over three years to build confidence, but it depends on whether we can get the economy going, help growth, make sure that we are seen to be economically competent and deliver a fairer Britain.

I think that we can do it, and Asquith gave us something 100 years ago this year as an encouragement on our way. In his speech in Nottingham to our party conference, at a time when he was leading one of the greatest Governments in British history, he said this—

[Mr Iain Wright (Hartlepool) (Lab)]

Were you there?

[Simon Hughes]

I was not there, no—not even in my previous life!

Asquith said:

“If we have—and I believe you will see that we have—concentration of purpose, unity of spirit, and unshaken firmness of resolve, then, long and stormy though the voyage may have been before it comes to an end, the ship will find her way with a full cargo into the desired haven.”

Liberal Democrats are determined to deliver us safely on the other side and, much more importantly, to deliver our constituents to a better Britain, with better prospects, higher employment, lower unemployment and a much more secure economy for the five years following 2015 than the one we inherited when we took over in 2010.

Careers Service (Young People)

Debate between Iain Wright and Simon Hughes

Tuesday 13th September 2011 Commons Chamber

[Mr Wright]

I disagree. The right hon. Member for Bermondsey and Old Southwark made an excellent and measured contribution about expanding the provision of careers advice to younger pupils, about making sure that we have a wide variety of work experience and about making sure that careers guidance is not offered on a wet Wednesday afternoon, as we mentioned in the Committee on the Education Bill. I agree with every word. This is more complex than it just being about face-to-face guidance, but face-to-face guidance is an important complementary step. I should have thought that he agreed with that and would want to show his support and put pressure on the Government by joining us in the Lobby tonight.

[Simon Hughes]

The hon. Gentleman knows that I respect his commitment to these issues both before he came to the House and since he has been here. We are very clear that we want the same objective. Tonight is a chance for the Labour party to put its cards on the table, and we have made our position clear about where we want the Government to get to. I believe that they have listened and that the Minister will respond, and I hope that in not many weeks from now we will end up where we all want to be.

[Mr Wright]

The Minister said earlier that he did not want to rule anything in or out regarding the right hon. Gentleman’s recommendations and I should have thought that meant an abstention in tonight’s debate to make sure that all the cards were on the table, but that does not seem to be the case. I do think that the Minister is thinking about moving in that direction and I hope that he will accept an amendment to the Education Bill—we will certainly put pressure on him as the Bill makes its way through the Lords—but it is disappointing that, in the spirit of consensus that we have seen in tonight’s debate, he cannot make more positive remarks to make sure that we make provision for face-to-face guidance.

Two or three weeks ago, our young people got excellent GCSE and A-level results and, as hon. Members have said tonight, we should all celebrate their success. The Minister said in August that

“we have to make sure we prepare young people for the future, whether they are going onto further education, training or into the workplace.”

He reiterated that tonight by saying that it is important for young people to make the right choices in order for them to be guided in the future. We could not agree more, but it is abundantly clear that the Government are failing to do that.

As my right hon. Friend the shadow Secretary of State has made clear, young people are facing the most difficult and turbulent prospects for at least a generation. The modern world is complex and often disorienting and is unrecognisable from what it was a few short years ago, both in its challenges and in its opportunities. The certainties that we had in the labour markets in the 1950s and 1960s when the Minister of State, Department for Education, the hon. Member for Bognor Regis and Littlehampton (Mr Gibb), listened to his gramophone records have gone for good. Much of that change is due to large-scale shifts in global forces, such as the economic rise of China. The present economic situation is made more difficult by the current turbulence in the global economy. I fully accept that when global aggregate demand goes down, additional pressure is placed on youth employment, but the Government’s policies are making a bad situation very much worse.

As we heard in an earlier debate today, the loss of EMA, the abolition of the future jobs fund, the scrapping of the young people’s guarantee, the trebling of tuition fees and the ending of Aimhigher have made it more difficult than ever for young people in this country to work hard, to get on and to succeed. That implicit contract that we had, in place since the post-war era and shared by successive Governments, that somehow the next generation would do better than the previous generation, is in real danger of being broken. That was made clear in an excellent contribution by my hon. Friend the Member for Liverpool, West Derby (Stephen Twigg).

In difficult and confusing times such as these we need, now more than ever, an effective, functioning and professional careers service to support and navigate young people through the turbulence. We need a personalised service, with close links between the young person and the adviser. We need, as the right hon. Member for Bermondsey and Old Southwark said tonight, face-to-face guidance, helping to motivate, inspire and enthuse young people in difficult times.

In the current economic difficulties, when a young person receives rejection letter after rejection letter, it is neither use nor ornament just to point them to a phone. As my hon. Friend the Member for Huddersfield (Mr Sheerman) said, IT is important but we cannot do it with technology alone. We need a professional to say to that young person, “Keep going,” or “I think you should try this,” or “This might suit you.” As my hon. Friend the Member for Bolton West (Julie Hilling) said, we need in the careers service trusted professionals who know the young people—young people such as Thomas—who can help inspire and motivate them. Tragically, the cuts to such services mean that the professionalism and expertise of careers personnel has been lost, and lost for good.

Time and again in the debate we heard that our young people from places across the country have been denied such opportunities. We heard that from my hon. Friends the Members for Huddersfield and for Darlington (Mrs Chapman), who in a powerful speech expressed her concern that high-quality advice might be confined to those in fee-paying schools.

Ministers in the Department for Education pride themselves on trusting professionals to make the right decisions, but we have had in the last month the astonishing, and possibly unprecedented, situation where a Government advisory group of some 20 renowned experts and professionals considered resigning en masse in protest at the Government’s shambolic and incompetent handling of careers services for young people. Steve Higginbotham, president of the Institute of Career Guidance, blasted the Government and stated that the service

“will not be an all-age careers service. It is a rebranded Next Step service for adults plus an all-age telephone advice line and website.”

As my hon. Friend the Member for Darlington said, if the Government truly wish to aid social mobility and break the cycle of multigenerational worklessness or low aspiration, they need to provide all possible tools. By removing face-to-face careers guidance for all young people, they are taking one of those vital tools away.

Ministers also often cite international comparisons to support their policies. The hon. Member for South West Norfolk (Elizabeth Truss) cited those a lot tonight. But international evidence shows clearly that devolving such career advice to schools has not worked in other countries. Professor Tony Watts, giving evidence to the Education Committee, stated that in studying 55 countries it emerged that three negative things happen when it comes to school-based guidance. First, impartiality goes out of the window because schools have a direct and vested interest; secondly, there is a weakening in links with the labour market; and finally there is an unevenness in performance in schools. Professor Watts said that two countries, New Zealand and the Netherlands, have recently done what this Government are now doing, and in both cases it resulted in a significant erosion in the quality of help as well as the breadth of its extent.

I mentioned the Education Committee. In its excellent report on participation in education and training by 16 to 19-year-olds, it makes a valued point on the unease about the Government’s changes to careers. That was highlighted several times tonight. It draws attention to the fact that the Department for Education’s funding commitments to an all-age careers service consists only of online and phone services. As we heard tonight, the Select Committee makes the very clear recommendation that the Departments should fund face-to-face careers guidance for young people under the age of 18. Opposition Members very much agree.

So I ask the Minister—for the sake of his career, let alone the careers of hundreds of thousands of young people—to look again at this important matter. Will he listen to the impassioned pleas made tonight by hon. Members on both sides of the House? Will he consider the almost unanimous view of professionals? Will he take on board the Education Committee’s reasoned comments? Will he listen to what is best for young people? Will he listen again to the right hon. Member for Bermondsey and Old Southwark and act urgently to guarantee face-to-face careers information, advice and guidance for all and not just some young people in schools? Listening to the speeches made by hon. Members on both sides of the House, that definitely seems to be the will of hon. Members tonight. I commend the motion to the House in a spirit of consensus.

Education Bill

Debate between Iain Wright and Simon Hughes

Wednesday 11th May 2011 Commons Chamber

[Mr Wright]

Let me concede that the Minister has been the best Minister for Further Education, Skills and Lifelong Learning that I have ever seen in this Government. He has been exceptional in that regard.

The Minister talked about online and electronic information, advice and guidance about careers. That has its place, but this is my point and the point of new clause 9: a central part of any successful careers advice system is the face-to-face personalised and tailored interaction between a young person and a careers professional, preferably not on a one-off basis on a wet Wednesday afternoon, as we discussed in Committee, but repeated time and again so that trust can be established between the student and the careers professional, and a relationship built up where the professional can know about the student’s wishes, skills, ambitions, potential and limitations, and accordingly challenge, motivate and provide good tailored advice about their prospects.

In Committee, the Schools Minister did not provide huge reassurance on the matter. He seemed to believe that face-to-face information, advice and guidance was not appropriate for all students. I asked him whether he thought such face-to-face access should be the cream of careers advice, available only to a select few students, and he said in Committee that it would depend on the school, which might think it was appropriate for some students, but then again, might not. That is worrying.

Steve Higginbotham, the president of the Institute of Career Guidance, said that as a result of the Government’s plans and the incompetence regarding the transition scheme and because face-to-face advice has not been prioritised,

“The likely reality is that hundreds of thousands, and possibly millions, of young people will never get access to personalised impartial career guidance, having to rely on the national telephone helpline or website and school staff”.

Young people deserve better than that. I believe very much in allowing the professional judgment of teachers and head teachers to flower, but more than anything else I want the potential of the young person to be nurtured. For a Department that states that it trusts the judgments of professionals, Ministers seem remarkably reluctant to allow careers professionals to meet pupils at the school.

The purpose of new clause 9 is to ensure that that would occur. The clause would help to ensure that relevant and personalised advice could be provided for every single student, rather than just a select few in a school. The school governing body—the Minister will recall that I have always believed that school governors have a positive and largely untapped role to play in the provision of first-class careers advice—would have the responsibility to ensure that careers professionals had face-to-face meetings with pupils. It would make sure that, as my hon. Friends the Members for Scunthorpe and for Wigan mentioned and as the hon. Member for Wirral West alluded to, there was not a postcode lottery or even a school lottery for careers advice, with pupils from disadvantaged backgrounds being disadvantaged still further by a lack of resources to fund face-to-face services. If the Minister and the Front-Bench team are serious about wishing to help every child fulfil their potential—and I think they are—I cannot see how they would have a problem with new clause 9. I therefore hope that the Minister will accept it. I give notice that I wish to test the opinion of the House by pressing it to a vote.

Finally, I hope that the hon. Member for North Cornwall (Dan Rogerson) did not take offence earlier when I commented from a sedentary position about flabby liberalism. I was speaking about his policy position, rather than any personal appearance. On careers advice, I think the Liberals are like Joe Bugner rather than Muhammad Ali or the late, great Sir Henry Cooper, whom we lost earlier this month. I wish they were more like Ali and Cooper, and it is disappointing that they have not been so in debate in Committee and in the House today.

[Simon Hughes]

I, too, am conscious of the time so I shall be brief. I welcome the debate, as I welcome the co-operation and exchanges that I have had with the Minister responsible for these matters. I know he has been listening to Opposition Members in Committee, colleagues in both parties and those outside.

On new clause 6 moved by the hon. Member for Scunthorpe (Nic Dakin), and his comments and those of the hon. Member for Wigan (Lisa Nandy), they are right about the need for the new system for EMA, for those who will continue to receive it, to be subject to the two criteria of attendance and punctuality. That is extremely important. That was seen to be a discipline, and in one of the reports I gave to the Prime Minister and the Deputy Prime Minister I made the point that EMA should be continued for those who have started receiving it and that it should be subject to eligibility criteria.

I am sure that the Government will have noticed the equality impact assessment on the EMA plans. In my recommendations to Ministers, I made it very clear that entitlements were better than general localised discretion, because knowing how much they will receive is a consideration for young people, just as knowing what the score is for university costs is a consideration for students. I hope that the Government’s response to the consultation—there are a few days remaining for anyone who has not yet responded and wishes to do so—will not be so prescriptive that it is burdensome and that it will make it clear that certain things will, in effect, be entitlements for young people so that from this summer they will be able to say, “Yes, I’m going to college next year. It will be a good thing for me.” I hope that there is a favourable response. The wording of the proposed new clauses as they are given might not be accepted, but we have more opportunities during the passage of the Bill to get to the same place.

[Mr Iain Wright]

Under the existing provisions for EMA, around 600,000 young people were helped to continue their education. Under the Government’s new plans, 12,000 people will be helped. Does the right hon. Gentleman seriously think that that is good enough?

[Simon Hughes]

Again, the hon. Gentleman would not want to mislead people. The scheme proposes that everyone who this year is in their first year of receiving EMA at the top rate—£30 a week—will next year receive £20 a week. We are talking about hundreds of thousands of people, not 12,000. The figure he refers to relates to the additional agreement, which was never there before, that those with special needs, such as those on income support, those who have been carers and those who have been in care, will be entitled to a minimum of £1,200 a year. I welcome that. The Government will have to keep under review whether that is enough for that cohort of young people and whether the figure might have to be adjusted in years to come.

New clause 9, which was tabled by the hon. Member for Cardiff West (Kevin Brennan) and his friends, makes an important point that was also raised by the hon. Members for Scunthorpe and for Wirral West (Esther McVey). I am in the process of finishing my report for the Government on the careers service and the implications for access to further and higher education, and I am very clear not only that there should be a careers service available for every secondary school child, but that it should include a personalised service. It is not enough that everyone should have access to a telephone service or an online service or be given a book. I know that the Minister understands that point and is sympathetic to it. I hope that we will arrive at the situation in which everyone knows that they will be able to engage with someone who knows about careers and can assist them. It should certainly be one session, but more may be needed.

Those careers advisers also need to be professionally recognised. The six main groups that have provided careers guidance are getting their act together and hope to be together in one organisation this summer. When that is done, they can be recognised, which I think will give us the basis for a good service of general careers information, advice and guidance. I welcome that and hope that Ministers will be sympathetic to the fact that that service must be offered by recognised professionals.

There is obviously a concern in the House, which the hon. Member for Wirral West expressed, about the transition from the current Connexions service, which was good in parts and less good in others, to the all-age careers service, which is generally welcome and could be very good when it is up and running. Ministers understand the need to ensure that a year’s worth of young people do not fall through the gap between the old and new services. We must ensure that resources and arrangements are in place to prevent that.

I want to make one last pair of suggestions for Ministers to consider. I have been across the country talking with school students, and students in sixth-form colleges and universities, and some very unfortunate evidence has come out of that. Some young people, of course, say that their careers advice was excellent, but the majority say that they did not get good enough careers advice or work experience. This was a clear majority, probably about 80%, whether on Merseyside, in Cornwall or anywhere else, and we really have to improve those things.

At the end, I hope Ministers will accept that, in every sixth form, college and school, somebody should have responsibility for the careers service and careers advice, and that another person should have responsibility for the access arrangements—for making sure that people are shown the life opportunities that will come to them after school or college.

Education Maintenance Allowance

Debate between Iain Wright and Simon Hughes

Wednesday 19th January 2011 Commons Chamber

[Mr Wright]

When I was a Minister in the Department for Children, Schools and Families, difficult decisions were made with regard to the £100 bonus that students received. We are prepared to talk about this. We want to ensure that we have the best possible system, but frankly, we cannot reduce a scheme of £600 million to around £50 million without a devastating impact on many communities, which was mentioned many times, including by my hon. Friends the Members for Halton (Derek Twigg) and for Huddersfield.

My hon. Friend the Member for West Ham (Lyn Brown) made a very passionate speech, as she is prone to do in this Chamber, mentioning Newham sixth-form college, which I have visited. My hon. Friend the Member for Wigan (Lisa Nandy), who has always stood up for her constituents and particularly for young people, highlighted the poverty of ambition that the Government’s decision produces. She also said that EMA is a something-for-something initiative, because students sign a contract and are bound by certain conditions in respect of attendance, punctuality and behaviour, which is an important point.

It was nice to see a number of my hon. Friends from the north-east. My hon. Friend the Member for Darlington (Mrs Chapman) mentioned Queen Elizabeth sixth-form college and Darlington college. In a former life, I audited those colleges, for my sins. My hon. Friend the Member for Gateshead told how in his part of the world—I think I audited Gateshead college too—EMA changed the landscape of ambition with regard to staying on, which my right hon. Friend the Member for Wythenshawe and Sale East (Paul Goggins) also mentioned.

My hon. Friend the Member for Leyton and Wanstead (John Cryer) mentioned the stance of the Liberal Democrats. Although they are taking over the Conservative party—as we heard from the Secretary of State—they have an important decision to make, as they did on tuition fees. The right hon. Member for Bermondsey and Old Southwark (Simon Hughes) said that he is willing to work to ensure that we have the best possible system and that it is adequately funded, as the Opposition are. The Government need to think again. He is quoted in The Times Educational Supplement as saying:

“If what Labour is saying is a call for the government to rethink its plans, I will support that. There’s some careful brokering to do.”

I absolutely agree with that, and I hope that he walks with us through the Lobby tonight.

[Simon Hughes]

The hon. Gentleman knows that I respect him and value his judgment. I have been working with his colleagues openly, and with Ministers, and I think that the Government’s amendment shows, as the Minister will say in a minute, that they are rethinking what they are doing, and that they are committed to trying to come up with a decent replacement. We will see whether we can deliver that, but I will try to do so, and I hope the shadow Minister will work with us.