Energy Supply

John Hayes Excerpts

Thursday 6th September 2012 Westminster Hall

[Mr Yeo]

That is an interesting point. France is exposed to the risk of something that derails nuclear technology. Last year’s Japanese accident, which was actually an industrial rather than a nuclear accident, effectively led to the closure of nuclear power in Germany. France has rightly taken a more robust attitude. The factors that led to the Japanese accident would not apply for the most part to French nuclear power stations. None the less, a great reliance on a single technology inherently puts a country in an exposed position, although that is perhaps less the case for nuclear power, given that the supply of uranium is probably reliable for the foreseeable future. Interestingly, France is also quite a big investor in wind power which, again, is not something that depends on imports. I would not say that France is excessively exposed, but would be in the event that something went wrong with its nuclear power stations. It is also struggling to renew its nuclear power stations, and cost overruns and time delays have affected EDF quite badly. None the less, I remain a strong supporter of investment in new nuclear power.

[The Minister of State, Department of Energy and Climate Change (Mr John Hayes)]

I thank my hon. Friend for allowing me to intervene as I may not have a chance to deal with this issue in my summation. He made two interesting points, which I should like to test a little further. The first is about the relationship between gas and competitiveness. After reading the work that his Committee has done on low-carbon growth links with China and listening to his general comments on China, may I ask him to say something about the changing character of demand, especially from the emerging economies, and the effect that it may have on the world price of gas and our competitiveness? I have another point, but I have gone on long enough. I do not want to test your indulgence, Mr Amess, beyond reasonable limits.

[Mr Yeo]

I am always encouraged when a Minister intervenes on my remarks. It suggests that he is listening, not that I expect anything else from the present Minister, and that we are debating something that is of some consequence. It is an interesting question. We are likely to see from China and the other Asian tigers huge demand for imported energy. China has a lot of coal and it may have some more gas that we do not yet know about, but the likelihood is that it will become an importer. Countries such as Korea are already huge importers of fossil fuels. I suspect that the world price of gas will tend to be driven up by the growth in these economies. There will be some interesting consequences. America, which may well be self-sufficient in gas for the time being, will thereby have a competitive advantage because if it wants, it can keep down its gas prices, although if I were a gas producer in America I would wonder about exporting it to a jurisdiction where the price was higher. It would be prudent for Britain to assume that, even if the price of gas remains decoupled from that of oil, we may see a significantly higher gas price by 2030, and that if we were too dependent on gas we might find that we were paying more for our energy than if we had a more diversified mix. A lot will depend on how much investment takes place in nuclear power in some of these countries, because at the moment that seems to be an open question.

[Mr Yeo]

I agree with my hon. Friend: clearly, there is an opportunity for the very low price in the United States to influence prices here. If the US is allowed to do that—and it is converting some of its terminals to export rather than import LNG—the differential is too attractive not to pursue it. However, I doubt whether that by itself would be sufficient to offset the upward pressure from the much faster-growing and larger economies in the east.

Security also depends on a much greater investment in energy efficiency. As we all know, Britain now needs a huge investment in generating capacity. There is no guarantee that that will be forthcoming unless we have clarity and general stability of policy. I urge the Minister to ensure that there is no slippage in the discussions—not just those about the energy Bill but the negotiations on strike prices for contracts for difference—that are under way. The nuclear industry in particular requires as much clarity as possible as it has enormous capital needs and long delays before any return is achieved. I am sure the Minister will find that matter pretty high up his briefing pack.

[Mr Hayes]

I hear what my hon. Friend says about certainty being a pre-requisite for getting the kind of investment necessary over the term about which we are speaking. The Committee has spoken about that before: its report on the emissions trading system talks about a strong and stable carbon price signal being another component that is needed to achieve certainty and predictability, which are the pre-requisites of investment. Will he explain that to me? After all, I am on a sharp learning curve.

[Mr Yeo]

I am sure that the Committee is encouraged by the fact that the Minister keeps quoting from our reports. He could not have a better textbook from which to embark on his learning curve. The signal that we would like to see of a strong and stable carbon price is one that has been conspicuously absent from the EU emissions trading system, for a variety of reasons. First, the cap was originally set much too high in phase one, and phase two was scuppered by the recession. It will probably be the latter part of this decade, at the earliest, before we see that strong, stable carbon price emerging, but we will see it eventually. I would be surprised if, by the 2020s, we do not see a stable carbon price. Moreover, if more countries, including some large ones, adopt emissions trading as one of their instruments to address climate change, I suspect that the prospects for that strong and stable carbon price will be greatly increased.

--- Later in debate ---

[The Minister of State, Department of Energy and Climate Change (Mr John Hayes)]

As ever, it is a pleasure to serve under your chairmanship, Mr Amess.

Benjamin Disraeli said,

“What we expect seldom occurs, but what we least expect generally happens to us.”

In that spirit, I stand here as the Minister responding to this important debate. I thank the Committee for drawing the matter to the House’s attention.

Energy security is a vital subject with ramifications and implications of all kinds for our economy and for wider society. In addition, there are implications for employment, skills and many other areas, as the shadow Minister, the hon. Member for Rutherglen and Hamilton West (Tom Greatrex), who I look forward to working with closely, said. That is why energy security is at the heart of the Government’s energy policy.

Time does not permit me to go into the detail that I would like, but I will happily write to hon. Members about any queries that they might have, in particular those arising from the debate or indeed from the Committee’s report, because that is the right thing to do in the circumstances. I also want to take some time to thank my predecessor, as several hon. Members already have. I will of course draw on his experience; I am meeting him for lunch next week—[Interruption.] I will be paying. I will also draw on the experience of members of the Committee.

The business of ensuring that we can maintain energy supplies without disruption, and that we have adequate infrastructure investment to do so, is central to our aim. That objective sits alongside and must be delivered with others to which hon. Members have referred. Significant among them is the affordability of energy, but we also have obligations in respect of carbon emissions and renewables. My hon. Friend the Member for Warrington South (David Mowat) made a powerful point about some of their perhaps contradictory effects, on which I shall ask my officials to brief me thoroughly after the debate.

Fundamentally, the basis of our energy security policy is to ensure that there are competitive market structures that incentivise companies to provide reliable supplies at attractive prices, combined with robust regulation. The arrangements must be made to work in the national interest. Obviously, there have been no major physical interruptions to UK oil supplies in recent history, and electricity capacity margins are currently very high. Our gas market coped admirably with the coldest December for 100 years in 2010 and, more recently, with the cold snap that we had this winter. In addition, in recent years, the gas market has brought forward import infrastructure equivalent to some 150% of annual demand.

My hon. Friend the Member for South Thanet (Laura Sandys) is nevertheless right to say that we must not be complacent. Politicians, at least in this country, are accustomed to being fired, but not to being fired at, and I hear what she says about that not being true elsewhere. We certainly need to recognise the challenges that we face with a degree of seriousness that affirms that this is an imperative.

The challenges can be summarised as follows. First, over the coming decade, UK production of oil and gas will continue to decline and our dependence on volatile global fossil fuel markets will increase. In the longer term, the pressure on price from increased global demand creates uncertainties—that was mentioned by the Committee Chairman, with the point clarified still further in an intervention—and supply constraints are expected to increase.

Secondly, many of our coal and nuclear power stations will reach the end of their lives over the next decade, as hon. Members know, and we need to ensure that the market brings forward sufficient generating capacity to replace them. I have asked about that already in the Department, and the Committee is familiar with the issue.

Thirdly, the Climate Change Act 2008 committed the UK to reducing our greenhouse gas emissions by at least 80% by 2050. European legislation commits the UK to producing 20% of its energy from renewables. Those are most ambitious goals, which brings me to the fourth challenge: the tough market conditions for energy investors and developers. With typical courtesy and acumen, the hon. Member for Brent North (Barry Gardiner) made a salient point about the need to ensure the circumstances in which investment is possible. As the shadow Minister said, we must ensure a degree of certainty and predictability in an extremely volatile set of world circumstances if we are to get the necessary investment. Investment requires such a spirit of certainty, and the Government must help to deliver that, irrespective of world conditions which are, to put it politely, challenging.

In addressing the challenges, we have developed a vision for the future of energy security in which low-carbon technologies, including renewables, nuclear, and fossil fuel generation equipped with carbon capture and storage, compete on price. As several hon. Members said, that diversity of provision is at the heart of our vision. Our aim is a secure energy system with adequate capacity, diverse and reliable energy supplies, and a demand side that is responsive to unexpected changes in supply.

As has been said, the policy response involves huge uncertainties—we are predicting for at least a 40 or 50-year period, which is bound to be full of change. The carbon plan explores a range of plausible scenarios of what the UK might look like in 2050. Our energy mix and energy security challenges will depend on which of those scenarios ultimately comes to pass.

I can deal only with headlines in the time available, but there are key elements of policy; we certainly have to focus on adequate capacity, which raises the issue of the reduction in demand, which was mentioned by the shadow Minister and my hon. Friend the Member for South Thanet. Secondly, we have to look at energy efficiency in business and the public sector—that is critical. The Energy Efficiency Deployment Office will publish the Government’s energy efficiency strategy before the end of the year. As the shadow Minister emphasised, we will certainly be looking closely at electricity market reform, which includes the difficult issue of the capacity market, on which I know there are different views in the House, as well as in the sector, as I found out last night when I met a range of players from it. Nevertheless, that debate needs to take place if we are to get our thinking right about certainty and predictability.

[Mr Graham Brady in the Chair]

We constantly monitor and assess risks to ensure that there is adequate gas capacity, and the Government are working to ensure that planning and regulatory barriers are minimised so that the market can continue to provide such capacity. The UK oil refining industry, with its good links to other European refiners and access to North sea crude oil, provides the UK with a secure, reliable and economic source of transport fuels and other petroleum products. I heard what my hon. Friend the Member for New Forest East (Dr Lewis) said about that, and I emphasise that the UK’s refining industry has developed a strategic policy framework for the UK—we will be saying more about that before the end of the year.

I have talked about the diversity at the heart of our policy. That diversity requires each part of the energy mix to be commercially viable. Many points were made about viability and its relationship with what the Government do and do not do. I do not have time to respond to them, but I assure hon. Members that such points are at the heart of my early investigations into the subject, my discussions with officials and my connections with the industry.

On reliability, it is vital that we have the right electricity grid to connect generation to demand if we are to ensure energy security, to meet our climate change targets and to deliver affordable electricity. The “connect and manage” grid connection regime is enabling the faster connection of new generation projects, and significant transmission investment has been approved in principle by Ofgem to extend and reinforce the onshore transmission network. As has been said, gas plays a vital role in our electricity supply. My hon. Friend the Member for Warrington South talked about a dash for gas. I would not put it in those terms, but he is right that gas will continue to play a significant role, and it is vital that we have a considered strategic view of what that means.

[Mr Graham Brady (in the Chair)]

Order. I remind the Minister that we have only one minute left for the debate.

[Mr Hayes]

I am about to leap to my exciting peroration, Mr Brady.

The report, which was introduced with style by my hon. Friend the Member for South Suffolk, is important. It is now for me to sit down and allow him to say a word in conclusion.

Oral Answers to Questions

John Hayes Excerpts

Monday 3rd September 2012 Commons Chamber

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

I should like to answer Questions 5 and 21 together, Mr Speaker, as they are identical, but I seek your permission to do so.

[Mr Speaker]

There was no request in advance for that, but my natural leniency may assert itself.

[Mr Hayes]

Your benevolence, Mr Speaker, is exceeded only by your sagacity.

[Mr Speaker]

I agree with that, too.

[Mr Hayes]

The proportion of young people not in education, employment or training has been too high for too long. It is a structural problem, reflecting wider changes in the labour market, which we are determined to tackle. This month sees the start of our £126 million youth contract programme for 16 to 17-year-olds supporting some 55,000 young people who are not currently participating. That is on top of our record spending of £7.5 billion on education and training places for young people.

[Mr Bailey]

I thank the Minister for his reply. The latest increase in the number of NEETs seems largely to be a result of the drop in employment in the 16 to 18 age group. Local manufacturers in my area report that they have great difficulty in getting young people to go into manufacturing, but that those who do have successful apprenticeships have normally done work experience. Will he lobby his colleagues to reintroduce compulsory work experience in secondary schools to overcome this problem?

[Mr Hayes]

The hon. Gentleman is a champion of apprenticeships, as am I. He will be delighted that there are now a record 104,500 apprenticeships for 16 to 18-year-olds, but he is right to say that the engagement of employers is needed, and employers do indeed say that early contact with the world of work is important. He is right to make that case and I share his argument. We will continue to pursue that course of action.

[Several hon. Members]

rose—

[Jessica Lee (Erewash) (Con)]

Does my hon. Friend agree that the Erewash jobs fair that I have arranged for this Wednesday is an excellent opportunity to showcase to young people, and indeed to those of all ages, the employment opportunities and opportunities in training and skills that are currently available?

[Mr Hayes]

In Erewash, they speak of little else than the hon. Lady’s job fair and her continuing work in the interests of young people and local employers. She is right that through marketing manufacturing opportunities of the kind she mentions we will seed a thirst for such work, which is so vital if people are to fulfil their potential and the economy is to prosper.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

May I remind the Minister that there is nothing amusing about the 1 million young people who are unemployed? Is it not a fact that the lack of leadership and imagination in our schools and in the leadership of this country means that those people are languishing with little hope? Can we not use unemployed graduates, working with NEETs, to make something happen and make it happen soon?

[Mr Hayes]

The hon. Gentleman is right that this is not a matter for levity, but he is also wise enough to acknowledge, I hope, that it is a structural problem. The number of young people not in education, employment or training began to rise, as he knows, long before the current economic challenges. It requires a structural solution and at the heart of that is building the skills people need to get and to keep jobs, which is precisely what this Government are doing.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

The Minister has been good at understanding that we need good careers guidance for young people, but if we are to have fewer people out of work and doing nothing at all post-16, high-quality work experience for all young people must be delivered in every school and college. Will colleagues in the Department for Education work with colleagues in the Department for Business, Innovation and Skills to ensure that such a programme is in place very soon?

[Mr Hayes]

I am the personification of the relationship between the two Departments to which the right hon. Gentleman refers. It is essential that our strategy for growth and our approach to business work in tandem with what we do in schools. Although he cannot welcome it, as he has already asked his question, I am sure that he will want at least to contemplate the excellent advice to schools on this very subject that I issued just before the summer recess.

[Hugh Bayley (York Central) (Lab)]

7. What proportion of students at state schools in York achieved five or more GCSEs at (a) grade A* to C and (b) grades A* to E in 2012.

--- Later in debate ---

[Andrew Stephenson (Pendle) (Con)]

T5. My right hon. Friend will know that schools will shortly have a duty to provide comprehensive and independent careers advice to their pupils. What support will he provide to schools to ensure that that they meet these important new obligations?

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

My hon. Friend will know that this Government take careers advice very seriously, which is why we established the National Careers Service. He will also know that we have not only changed the law, ensuring that schools secure independent advice and guidance, but introduced statutory guidance for schools and, furthermore, a practical guide to how they should go about it. This is a record that we can be proud of and that the whole House should enjoy.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

T3. Where was the Secretary of State when so many parents and young people were traumatised by what was happening with GCSEs? Why did he not go on radio and television to explain his position? None of us wants him to interfere with Ofqual, but over the past two years he has been responsible for producing a climate of fear in which Ofqual and the examination boards operate.

[Jeremy Lefroy (Stafford) (Con)]

T8. I welcome the help that the Minister for Further Education, Skills and Lifelong Learning and the Skills Funding Agency have provided in showing flexibility over the number of 16 to 18-year-old apprentices taken on by my local college in Stafford. How can he ensure that this common-sense attitude always prevails?

[Mr Hayes]

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.

[Emma Reynolds (Wolverhampton North East) (Lab)]

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?

[Steve Baker(Wycombe) (Con)]

T9. Apprenticeships are being promoted vigorously by the Government, but what progress is being made on the higher levels and, in particular, on their quality?

[Mr Hayes]

Proust said:

“We do not receive wisdom, we must discover it for ourselves, after a journey”,

and a journey from the age of 16 to higher learning can be a journey down a practical pathway—no longer a cul-de-sac but a highway to higher learning. To that end, I am working to create 25,000 higher apprenticeships during this Parliament; when I became a Minister, there were 180.

[Alex Cunningham (Stockton North) (Lab)]

T7. The Department’s consultation on the future of child care ran for all of 44 days over the school summer holidays, greatly limiting the potential for parents to make their views heard. Given the importance of this issue, will the Minister reopen the consultation for at least another six weeks? If not, is that because she and her colleagues have already decided what they are going to announce during conference?

Further Education Loans

John Hayes Excerpts

Tuesday 17th July 2012 Westminster Hall

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

It is a pleasure to speak in this debate, and I congratulate the hon. Member for Stoke-on-Trent Central (Tristram Hunt) on securing it. He is right to say that it is timely and, to pick up on his first point, that we should have an opportunity to debate the issue at greater length. I have already made, and I will continue to make, overtures to create some space for such a debate when we return, not least because I am always happy to debate skills and further education. I do not say that those things are the Government’s only shining example of success—far from it—but they are certainly shining brightly. That is because we are determined to give FE colleges the freedoms and flexibilities that they need to become increasingly responsive to employer need and learner choice—my hon. Friend the Member for Wirral West (Esther McVey) referred to that.

Disraeli said that it is easier to be critical than to be correct. The hon. Member for Stoke-on-Trent Central was not terribly critical and was correct to welcome the measures that have been put in place, which I shall mention in a moment. First, however, let me set the scene. With the new freedoms that I have given the sector, it is essential that further education is able to offer as many people as possible the opportunity to gain learning as a means of improving their prospects through progressive learning or access to employment.

When we debated the comprehensive spending review, I and my colleagues in Department for Business, Innovation and Skills—in particular the Secretary of State—were determined that our priority should be those who are most disadvantaged, either by an absence of prior learning or by their circumstances, and those to whom we could make the most difference in terms of further education. That is not to underestimate the significance of lifelong learning or second and third chance education. Indeed, in the same CSR negotiations we cemented and safeguarded the adult and community learning budget that had been threatened and—I am reluctant to say this—sometimes disparaged by the Labour party when in government. That safeguarding surprised some who had not anticipated that we would be so protective, but I believe in adult and community learning not only as a means of re-engaging people but because it adds to the individual and collective well-being of our nation. As you know, Dr McCrea, I believe in the promotion of the common good and would not do anything to inhibit the interests of the people.

To that end, we made it clear that priority would continue to be placed on basic skills, younger learners and people below level 3. When introducing loans, we limited them to people over the age of 24 and those studying for a qualification at level 3 or above. That was a deliberate attempt—more than an attempt; a deliberate policy decision—to prioritise the least advantaged, because in my judgment, it is the duty of the fortunate to promote the interests of the less fortunate, no less in government than in our personal affairs.

In net terms, around 10% of FE learners will be affected by the new loans, and as I have said, they will be older learners and people studying at level 3 and above. Notwithstanding, however, that that is a small minority of the FE cohort, I received representations over time, we conducted an impact assessment, we surveyed the sector, and we engaged in discussions with the 157 Group, NIACE, the AOC and others—the hon. Member for Blackpool South (Mr Marsden) referred to them all. Those representations made it clear to us, and that analysis showed, that some kinds of learner might be, in the words of the right hon. Member for Wentworth and Dearne (John Healey), disproportionately affected by the prospect of loans. One has to be a little cautious, because similar evidence before the introduction of HE loans suggested a lower take-up than subsequently occurred. One therefore needs to qualify one’s doubts in those terms, but I do share the view that we needed to do more. Indeed, that was set out in the very good letter sent to me at the end of June by the hon. Member for Blackpool South, who has contributed for the Opposition. He identified four areas in which he believed that there was a particular issue and he put his case, as ever, very reasonably and fairly. Those four areas were essentially access to—

[John Healey]

Will the Minister give way?

[Mr Hayes]

Yes, I will happily give way.

[John Healey]

When I came into the Chamber, the Minister said, “Are you here to pay tribute to my work?” I have been known to do that and I suspect that his hand has been forced somewhat on this question of student loans. Before he moves off the impact assessment and the research, is he not worried that that research showed that only one in 10 current students would definitely do their course if they were faced with having student loans as he is proposing?

[Mr Hayes]

Actually, if one looks at the impact assessment closely, it suggests that after clear communication of the offer, we will expect full take-up of the funding for loans. A very significant majority of people, when the circumstances of the loans were explained to them, said that they would participate. Initially, some were very likely to do so and some were less certain, but the number saying that they would participate grew as these things were explained to them. By the way, full take-up of the loans would be 90% of 24-plus learners studying at level 3 and above. We are therefore talking about a very significant majority of 10% of the cohort. That is where we are in terms of the overall FE numbers.

It should be borne in mind that the impact assessment was carried out before I announced the mitigation package, to which the hon. Member for Blackpool South has referred. I was coming on to why we put that in place. A case was made about access to HE. It seems to me perfectly fair to argue that it would be unacceptable for someone to borrow to study an access course and then borrow again to study an HE course. The hon. Member for Blackpool South asked whether we could look at the issue of timing. I think that we should and I will do so. I think that there is an argument for people who do not immediately progress to HE, but do so perhaps a year or two years later. We need to consider how we manage that, but the hon. Gentleman makes a fair point and I will certainly look at it.

[Jonathan Lord (Woking) (Con)]

Would my hon. Friend the Minister care to tell us a little more about the £50 million bursary fund that is available over two years, because that is quite an important element of the mitigation and support package?

[Mr Hayes]

I am almost as excited about that as my hon. Friend. I will certainly come to it, because it is wonderful news. I have been asked to give more detail and I will in the time available. Let me just finish my point about the access-to-HE measures. They mean that anyone who goes on to HE will see their access loan written off. That is very important, as that route disproportionately contains people with poor levels of prior attainment; after all, that is why they are doing access-to-HE courses. They are often doing so later in life. There is also a disproportionate number of women and women returners in that group. That is very important, too. What we are doing is therefore socially regenerative; it is about social justice. All I do is driven by my passion for social justice. That is what those courses are about and that is why we have taken this action.

However, that alone, in my judgment, would not have been sufficient. That is why I wanted a bursary fund. The hon. Member for Blackpool South has asked how much of that is drawn from existing provision. About £20 million is completely new money. As hon. Members will know, there is some existing learner support money in FE. It is targeted at, for example, people with learning difficulties and disabilities. That will be made part of this bursary, but I do not anticipate that any learner will be worse off as a result of these changes. In other words, we are not displacing the interests of any group of learners. It is just more straightforward for colleges and learners to have these things in a single national bursary package.

I have always favoured the idea of a national bursary fund, by the way, so this is the fulfilment of another long-held ambition, framed by the discussions that I have had over many years with the sector, which argued that it would be a very effective way of allowing colleges to respond to local circumstances. They know their cohort best; they know their circumstances better than I ever could. We therefore need to build in a level of discretion to allow colleges to work with their communities, their learner base and their local employers to ensure that what they are providing meets the needs.

However, the point made from the Opposition side of the Chamber about how much discretion there will be was well made. I think that we should set down some criteria according to which we expect the money to be allocated and I will do so, having had discussions with the sector and bearing in mind—let us get the time scale clear—that the application period for loans opens in April 2013 for courses starting in August or September 2013. Therefore, although it is true that we will not have a chance to debate the matter more fully until this September, it is not happening until the year after the next academic year. The hon. Member for Blackpool South makes the point that FE colleges must plan and he is right. That is why we have done what we have now, rather than waiting any longer. I hope that the fund will address the issue of older learners, who were, according to the impact assessment, disproportionately risk averse in terms of loans. That is hardly surprising. Someone of 55 might perceive a 30-year loan in a rather different way from someone of 20 or 25.

[George Eustice (Camborne and Redruth) (Con)]

My hon. Friend the Minister makes a very important point. May I welcome the cautious approach that he has taken in this area? Does he agree with me that at a time of recession, when we are trying to get our economy going, supporting adult learning is incredibly important for reskilling the work force and those who may find themselves out of work?

[Mr Hayes]

As I am the champion of apprenticeships, my hon. Friend would hardly expect me to disagree with that analysis. He is right that skills are critical to recalibrating the competences of our work force in a way that makes our economy more sustainable by making our businesses more resilient.

The bursary fund is exciting and new and will allow us to address some of the perfectly properly argued concerns of Opposition Members, but more than that, I wanted to accept NIACE’s proposal of a mid-life learning health check, so that we could look at people at the age of 40 and 50 perhaps and use the national careers service to gauge when and where they could study to upskill or reskill. That there is a need for that has been argued by the sector for some time, and we have taken it on board as part of this package.

On the issue of STEM, which was raised specifically, I take the view that tying capital investment to STEM is not only about growing capacity, but about pinning down the costs of those courses. It is often argued that the costs are so high because of the need to resource in order to deliver them. I will look at how we can be specific about that in the next FE capital round. We have already had a number of such rounds, and we will have many more, because it is vital that we invest in our college infrastructure. We have excellent colleges, such as the one that I visited in Stoke, when, as a result of the kindness of the hon. Member for Stoke-on-Trent North (Joan Walley), I was able to take away with me an Arnold Bennett volume to read over my brief summer sojourn.

All of that represents responsiveness. It was developed after discussion with hon. Members on both sides of the House. It was certainly discussed with the sector. It is a considerable step forward. But I just say this. Our determination is to ensure that it is put in place efficiently and effectively, so there will be no paper-based system. This will be done properly. The Student Loans Company will get it right, as the hon. Member for Blackpool South urged it to do, quite properly. This is a fair package—a just package. It is a package of which we can all be proud. We should now move forward together with confidence to put in place loans and get rid of up-front fees—a point that the hon. Member for Stoke-on-Trent Central very generously made and that I would have made otherwise. We should do so in the spirit that has imbued all we have done; one of elevating practical learning by elevating those who teach and learn in our FE colleges, who change so many lives by changing so many life chances.

[Dr William McCrea (in the Chair)]

Order. I wish right hon. and hon. Members a very pleasant recess.

Question put and agreed to.

Community Learning Trust (Pilots)

John Hayes Excerpts

Friday 13th July 2012 Written Statements

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

In December 2011, “New Challenges, New Chances”, the Government’s reform plan for further education and skills, set out the Department’s intention to pilot a range of community learning trust models from August 2012, against the background of revived and strong Government support for lifelong learning. The pilots will lead the way in giving local people a real say in decisions about adult learning in their communities and maximising the value of public investment.

I am announcing today that 15 partnerships have been invited to pilot local community learning trusts. Local organisations, including learning providers, businesses, voluntary sector organisations, training organisations and local services, will work together to increase local decision-making about learning priorities and develop robust financial strategies that will enable community learning to grow and flourish.

The pilot trusts will test a range of different models to identify effective approaches to:

increase the overall number of learners;

motivate and progress people who are disadvantaged;

make the most impact on people’s lives;

generate income to reinvest in learning.

Pilot trusts will have support in developing a consistent evidence-gathering strategy and a robust external evaluation will review the different models and their impact on learning, learners and local communities.

I strongly believe that learning is not just for local people and their communities, but still more belongs to local people and must answer to them for its success or failure. These pilots will enable communities to have more control over their local learning offer and will help shape the future of community learning, which is surely among the brightest jewels of civil society.

The following organisations have been invited by the Skills Funding Agency to become pilot trusts:

Birmingham CLT

Blackburn with Darwen (Sustainable Neighbourhood Services)

Brighton and Hove Community Learning Trust BHCLT

CLCumbria (CLC)

Community Learning in Cheshire (CLiC)

Derby Community Learning Trust

Learning-for-All (Bedfordshire and Luton)

Liberate (West Sussex)

Liverpool Opportunities for Community Adult Learning (LOCAL)

Sheffield Community Learning Trust

Sunderland’s Community Learning Trust

The Luton Trust

The Solihull Source

Trust in Learning—new curriculum, in new places for new learners in Exeter

West of England Community Learning Trust (Bristol)

Advanced Learning Loans

John Hayes Excerpts

Thursday 12th July 2012 Written Statements

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

Today we lay regulations before Parliament which will allow adults over 24 to benefit from loans for fees in further education: 24+ advanced learning loans. The regulations are made under the same powers as the Education (Student Support) Regulations, which underpin the higher education student support system. From the 2013-14 academic year, loans will be available for learners aged 24 and above studying courses at level 3 and above, replacing grant funding for this group as we focus our state investment on those under 24 years of age, those without basic skills, and those seeking work.

The intention to offer loans in further education was confirmed in November 2010, as part of the Government’s strategy “Skills for Sustainable Growth”. A public consultation followed in 2011, leading to the publication of impact assessments. Implementation is well under way, and these regulations are the final step in what has been a full and open process.

This is a progressive system. Learners will pay nothing up front, removing one of the main barriers to participation in training that adults commonly report. Repayment will be linked to income so there is nothing to pay until the learner is earning more than £21,000. Rates of interest will be lower than anything in the high street; and outstanding balances will be written off after 30 years.

Research published by the Department for Business, Innovation and Skills shows that 74% of people say they might, probably would or definitely would undertake learning following the introduction of loans. When the terms and conditions are explained, they become even more positive. This is why, in our impact assessment, we conclude that with clear and transparent communication to learners, we expect full take-up of the available funding for loans.

However, this is the first time that loans have been available in further education, and we want to ensure that appropriate safeguards for learners are in place. Our commitment to social mobility, and the critical contribution of further education to it—our mission that learning should drive social purpose and serve the common good—remains unabridged, undiluted.

In this spirit, I can therefore confirm that we will put in place an extensive and substantial range of support measures alongside the introduction of loans. The package will comprise:

An offer to individuals taking access to higher education courses that on completion of their higher education programme, the Student Loans Company will write off the amount outstanding on the loan for their access course. Access courses are designed to help those with low qualifications but high ambitions progress into higher education:, it is our duty to support those learners.

A £50 million bursary fund over two years, disbursed by colleges and training organisations. This will help vulnerable learners such as those with learning difficulties or disabilities, parents who need help with child-care, and ex-military personnel. The level of the bursary fund will be kept under review so we continue to provide the right level of support for those who need it.

Additional information, advice and guidance for adults who are uncertain about loans, provided by the National Careers Service, including a targeted face-to-face session—a “learning healthcheck”—with a careers adviser for older adults who research published by BIS in May suggest are less likely to respond positively to the idea of taking out a loan.

We have been working with the Association of Colleges, the 157 Group of Colleges, and the National Institute for Adult and Continuing Education to develop this package. They are supportive of this additional offer and we will continue to work with them on the detail.

The Government will ensure that potential adult learners who are eligible have the clear information they need about 24+ advanced learning loans. Alongside this, we will align our other resources, such as capital funding, to ensure we can maintain and grow participation in STEM programmes—through investment in infrastructure to provide the tools for learning, and stop costs rising—working with the Sector Capital Group to determine the best means of doing so. It is vital that we continue to drive sustainable growth as well as social mobility.

The existing policy, inherited from the previous Administration, requires the student to contribute in cash before they start the course; loans will ensure that fees are no longer a barrier to access. We want to build an FE system fit for purpose for the future and loans in FE will help to deliver capacity. In a tighter spending environment, it is right to focus available funds on 19 to 24-year-olds who did not complete their education at school, those without basic skills, and those seeking employment; and it is right to maintain access to learning for people outside these groups.

Colleges and training organisations are preparing now, so that as many adults as possible can benefit from 24+ advanced learning loans when the application system opens on 1 April 2013. I urge you to give the sector your support, as I have given my own, as they manage this important change.

Oral Answers to Questions

John Hayes Excerpts

Monday 18th June 2012 Commons Chamber

[Mr Peter Bone (Wellingborough) (Con)]

5. What steps schools are taking to raise awareness of the effect of human trafficking.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

Human trafficking is an outrage. William Wilberforce spoke of

“this bloody traffic, of which our posterity, looking back…will scarce believe that it has been suffered to exist so long a disgrace and dishonour to this country.”

We must be in our age as determined as he was in his to end the pain of this wicked trade in human lives.

[Mr Bone]

The Minister and the Prime Minister have shown their commitment to fighting human trafficking, but the dreadful case that was recently reported of internal trafficking within the United Kingdom shows the necessity of our schools highlighting this evil crime. Will the Minister meet me, other members of the all-party group on human trafficking and Anthony Steen to discuss how we can take the matter forward?

[Mr Hayes]

Yes, of course I will. My hon. Friend is absolutely right that schools have a vital role to play, which was why we issued new guidelines to that end. He will also know that since he last asked me about this matter—he is a doughty champion of the victims of this dreadful trade—I have, as he asked, written to charities to engage them in the process.

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

In line with the recommendations in today’s report on children who go missing from care, will the Minister please discuss with his colleagues in the Home Office the importance of keeping on the police national database the details of all trafficked children who go missing, so that they are not forgotten and so that if, for example, they turn up in a cannabis factory, they can be treated immediately as victims rather than criminals?

[Mr Hayes]

The right hon. Gentleman is quite right to draw attention to that excellent report, which I was able to read this morning. He is right that co-ordinated action by local authorities, the Home Office and the Department for Education is vital, and we will indeed go about that business in the fashion and spirit that he describes.

[Jane Ellison (Battersea) (Con)]

On the subject of raising awareness of crime in schools, some primary-age girls are at particular risk of being taken abroad in the long summer holidays to suffer female genital mutilation. Will the Minister take this opportunity to emphasise the safeguarding responsibilities of schools in that regard?

[Mr Hayes]

Yes, indeed. I had a meeting with my officials and discussed just that matter. It is, as my hon. Friend will know—because she has also been a champion of these matters—something that happens across the year in different volumes. There are peak periods for this, and we need to take action to take account of that and to use all agencies to offer the right kind of advice in those areas that are most vulnerable and to those young people who are most vulnerable.

[Lisa Nandy (Wigan) (Lab)]

In the response to today’s report on children in care, Ministers made no mention of the 60% of trafficked children who routinely go missing. Will he respond to widespread concerns surrounding the move of the Child Exploitation and Online Protection Centre into the National Crime Agency, described by CEOP’s former head as about saving face, not saving children, and ensure that child safeguarding is made an explicit strategic priority for the NCA so that the focus on these children is not lost?

[Mr Hayes]

The Secretary of State and the Under-Secretary of State for Education, the hon. Member for East Worthing and Shoreham (Tim Loughton), who has responsibility for children, are having a meeting this afternoon on just those matters, to ensure that our response is co-ordinated in the way the hon. Lady describes. It is fair to say that there is an issue about the different claims about the number of children who go missing and the need for a more consistent approach to how those records are maintained. I hear what she says and it will no doubt help to inform the discussions that will take place this afternoon—because we do not hesitate on these matters—between the Secretary of State and the Under-Secretary.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

6. What steps he is taking to improve the status and quality of the teaching profession.

--- Later in debate ---

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

17. What steps he is taking to improve the quality of careers advice provided by those working in the education sector.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

The Government have established a national careers service, placed a new duty on schools to secure independent advice, established a new National Council for Careers, created a new destination measure to hold schools to account and we have asked Ofsted to conduct a thematic review of careers guidance next year. In short, we have done more in two years than the last Government did in 13 years.

[Jonathan Reynolds]

Quality face-to-face careers advice is essential not just to ensure that young people have access to opportunities and services, but to inspire them so that social mobility actually happens. Is it not therefore a mistake for the Government to be moving away from face-to-face advice? Surely, no one has ever been inspired by a telephone hotline.

[Mr Hayes]

We have invested in the biggest and best website we have ever had for careers guidance. We will have more than 3,000 places available across the country where people can access the national careers service. Yes, face-to-face guidance matters, but each school will make its own judgment in line with its own needs to do the best by its own pupils. We trust schools; the last Government simply did not.

[Margot James (Stourbridge) (Con)]

Good quality careers advice is affected by the image that different career choices have among young people. Will my hon. Friend give his backing to campaigns such as See Inside Manufacturing, which was designed to inspire young people to think about career choices in manufacturing?

[Mr Hayes]

Indeed. When visiting Jaguar Land Rover in Liverpool, I was fortunate enough to see that working in practice. St Margaret’s primary school was visiting that great British company as part of that programme, gaining the sort of insight into learning, manufacturing and employment that my hon. Friend rightly highlights. Of course we will continue to support that kind of initiative.

[Ms Karen Buck (Westminster North) (Lab)]

Last week’s CBI education survey found that 68% of employers were dissatisfied with the quality of careers guidance, but in just three months’ time the statutory duty for schools to provide a careers service will become effectively meaningless as the amount of money is reduced and schools have to define for themselves and pay for themselves from within their already squeezed resources. Given that the number of young people not in education or training and youth unemployment is at crisis levels, how will the Minister act from day one to ensure the consistency, accessibility and quality of careers advice?

[Mr Hayes]

The Connexions service was roundly criticised for doing none of that. Connexions, over which the last Government presided, failed according to Ofsted, the Skills Commission inquiry into information, the Panel on Fair Access to the Professions, and the Edge survey. We will do better, because we understand that good-quality advice and guidance help people to change their lives by changing their life chances. Of course this is a challenge; it is a catharsis leading from failure to success.

[Caroline Dinenage (Gosport) (Con)]

Given the number of young people who are still not in education, employment or training, does the Minister agree that it is vital for young people to be made aware, throughout the education process, of the apprenticeships and the vocational and other opportunities that are available to them?

[Mr Hayes]

As I have said in the House before, for too long we convinced ourselves that the only means of gaining prowess came through academic accomplishment. Like William Morris and John Ruskin, I believe that technical tastes and talents deserve their place in the sun, and the careers service will highlight that so that people with such aspirations can achieve their full potential.

[Mr Speaker]

We are grateful for the fact that the Minister of State’s literary allusions are as plentiful and apposite as ever.

--- Later in debate ---

[Mr Douglas Carswell (Clacton) (Con)]

T2. If Britain is to be competitive, apprenticeships need to be a route to higher skills and to a much more highly skilled work force. How many young people are now taking advanced A-level equivalent apprenticeships?

[Mr Hayes]

We have increased dramatically the number of students doing such apprenticeships to 153,900 starts in 2010-11, which is an increase of nearly 90%. The really exciting thing is that, by the end of this Parliament, we will have more than 20,000 people beginning level 4 —degree-level—apprenticeships. When I became the Minister, there were just 200. From 200 to more than 20,000 is our record and I am proud of it.

[Mrs Linda Riordan (Halifax) (Lab/Co-op)]

T3. Why has Moorside school in Halifax not been included in the latest round of funding for new schools, despite the fact that it did everything it could to meet the criteria for that funding for its much-needed new build? Will the Secretary of State reconsider that decision?

[Mr David Ruffley (Bury St Edmunds) (Con)]

T4. What further steps will the Minister of State take to induce small and medium-sized businesses to create apprenticeships? In that context, I draw his attention to the excellent work of West Suffolk college, which is at the centre of my constituency and is now very much on board with his brilliant initiative for making vocational education “front of house” when it comes to improving the chances of our young people.

[Mr Hayes]

I am grateful to my hon. Friend for working with his local further education establishment and for highlighting the opportunities available to young people. He is right that we need more SMEs to be involved. That is why I commissioned Jason Holt to conduct a review of how we can be more helpful on bureaucracy and on allowing people to navigate the system more straightforwardly. It is also why we introduced cash incentives of £1,500 for every young apprentice that an SME takes on. My goodness, the previous Government could not have dreamed of that kind of record.

[George Galloway (Bradford West) (Respect)]

New Labour in Bradford has achieved the seemingly impossible by presiding over secondary schools in the city that are even worse than they were when the Conservatives ran them. In the youngest city in England, we are the eighth worst in the country—eighth out of 150. What special measures can the Government take these schools into to save the youngest city in England from the perdition of ignorance?

[Mr David Amess (Southend West) (Con)]

T5. What action are the Government taking to ensure that our vigorous vocational education at our university technical colleges leads to apprenticeships?

[Mr Hayes]

I share the view of my noble friend Lord Baker, who has been such an inspiration in respect of university technical colleges, that a key part of the offer should be apprenticeships for 16 to 18-year-olds. Aston UTC, which opens this September, will offer those kinds of products for its students, and I expect many other UTCs to follow suit. We are doing what Rab Butler in 1944 asked us to do—delivering a vocational route as rigorous, as navigable and as seductive as the academic route.

[Ann Coffey (Stockport) (Lab)]

On behalf of my parliamentary colleagues and the very brave young people who came to our inquiry and talked about their personal experience in care, I thank the Minister with responsibility for children for his positive response to our report on children missing from care. Does he agree that we need to take urgent action to improve a care system that is failing to protect and keep safe vulnerable children who run away and go missing?

[Julian Smith (Skipton and Ripon) (Con)]

T6. There have been recent complaints about the rigour and discipline of beauty therapy skills academies. Although the Minister may have had less time for a pedicure or manicure recently, will he confirm that he will bring rigour and discipline to beauty therapy skills academies, wherever possible?

[Mr Hayes]

Yes, the national skills academies were an invention of the previous Government, but none the less we believe they do an important job of focusing on those parts of the economy where investment in skills can facilitate growth. The academies are an important part of what we intend, but it is vital that they are led by employers, so that the system is responsive to need and sensitive to changing demand. I accept my hon. Gentleman’s support for them. He can be assured that that support is endorsed by the Government, who will continue to invest in them.

[David Simpson (Upper Bann) (DUP)]

The Minister will be aware that in Amnesty International’s recent young human rights report 2012, young students had written pieces on child brides and on human trafficking. Does he agree that teachers have a key role in both challenging and inspiring pupils to take up such causes?

--- Later in debate ---

[Mark Pawsey (Rugby) (Con)]

T7. The Minister for Further Education, Skills and Lifelong Learning will recall visiting Warwickshire college’s Rugby site. This week, in support of vocational qualification day and together with Rugby borough council, the college has established the Rugby apprentice of the year award. I know how important he considers it to be to recognise the achievements of apprentices, so will he join me in congratulating the first recipient of the award—brickwork apprentice Lee Bradley?

[Mr Hayes]

I am delighted to do that; I look back on my visit to Rugby with great fondness. My hon. Friend told me then that every day spent away from Rugby is a day wasted. He is absolutely right that that college is doing exceptional work, and that award signifies it.

[Stephen Pound (Ealing North) (Lab)]

I do not wish to distract the House in celebration of today’s birthday of one of our greatest living poets, Sir Paul McCartney. However, may I say that the Secretary of State is no stranger to the Twyford Church of England high school in Acton, which is well known for its inspirational head teacher? An insanitary cordon of fast food outlets rings that school, selling congealed, deep-fried lumps of mechanically extruded neo-chicken sludge, thus fatally undermining any attempt at a healthy eating regime. Will he speak to his colleague in the Department for Communities and Local Government to consider whether any linkage can be brought to prevent those foul premises from springing up around some of our better schools?

--- Later in debate ---

[Mr Hayes]

I have news for the whole House, Mr Speaker. I have asked the National Apprenticeship Service to organise a workshop for colleagues who want to find out more about how they can take on an apprentice. I have an apprentice in my office, my hon. Friend has one in hers and I would like every Member of Parliament to have an apprentice to show just how strongly we support opportunities for young people.

[Valerie Vaz (Walsall South) (Lab)]

Joseph Leckie school in my constituency has now for the third time been refused funds for repairs under the priority school building programme. Will the Secretary of State meet me and the head, Keith Whittlestone, to see for himself and to say what can be done to access funds to repair that vital building?

--- Later in debate ---

[Mr Mark Spencer (Sherwood) (Con)]

T10. The number of apprenticeship places in Sherwood has risen from 640 to 990. That is excellent news, but what can the Minister do to ensure that the quality of those apprenticeships rises at the same time?

[Mr Hayes]

There are those, including many Opposition Members, who think that I have gone too far on quality. They want to return to the days when we did not have statutory standards, when we did not insist on a minimum length for apprenticeships and when we were not as demanding in terms of rigour. No, I say—we must focus on quality just as much as quantity, so I have done all those things. The previous Government could have done them and should have done them, but they did not.

[Mr Dennis Skinner (Bolsover) (Lab)]

Month after month, I ask the Secretary of State for Education about the need for a new school at Tibshelf, and month after month, he gives the impression that “It is a good case, but…” Whatever has happened to the plans for Tibshelf school? He has not left them in a pub somewhere, has he?

--- Later in debate ---

[Derek Twigg (Halton) (Lab)]

May I ask the Minister whether it is the case that the further education sector is being asked to find a cut in funding of up to 5% in the next year, or to give an idea of its possible impact? If that is the case, what has been the response and will he resist any cuts to the further education sector, which will impact disproportionately on my constituency?

[Mr Hayes]

The further education sector has been given unprecedented support by this Government. When I think of the Opposition, I am reminded of Eliot’s words:

“Shape without form, shade without colour,

Paralysed force, gesture without motion.”

[Annette Brooke (Mid Dorset and North Poole) (LD)]

What advice would the Secretary of State give to parents of summer-born four-year-olds who, for very good reasons, wish to defer their child’s entry to school to next year, but feel coerced by the local authority to let them start this September?

Oral Answers to Questions

John Hayes Excerpts

Thursday 24th May 2012 Commons Chamber

[Andrew Stephenson (Pendle) (Con)]

5. What recent progress he has made on the recruitment of business mentors.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

The value of mentoring guides all we do. After all, it is at the heart of the Government’s flagship apprenticeship programme. Business mentoring is just as important and “Get Mentoring” is a fantastic example of businesses working together. No fewer than 11,000 volunteers have already signed up and, buoyed by that, I congratulate the hon. Gentleman on his personal commitment and support for this exciting initiative.

[Andrew Stephenson]

As ever, the Minister is backing Britain and backing business, but as he often says, we can always do more. What does he expect the increase to be in the number of mentors during the final part of this year?

[Mr Hayes]

I do not know, Mr Speaker, whether you have yet had the chance to see my hon. Friend’s local newspaper, the Burnley Express. In that paper, he says:

“Mentoring is a great way for business leaders to invest in and give back to their communities.”

The truth is that we intend in the short term—by the end of this year—to grow that number from 11,000 to 26,000 mentors.

[Mr Speaker]

We are obliged to the Minister.

[Valerie Vaz (Walsall South) (Lab)]

I am sorry to introduce a note of caution into this backslapping, but given that women make up only 12.5% of FTSE 100 boards, what steps is the Minister taking to get more women business mentors?

[Mr Hayes]

I agree with the hon. Lady. It is important that mentors are drawn from across the business community and that everyone, regardless of who they are and from where they start, gets their chance to prosper as a result of the scheme. As a result of her question, I will look again at what more we can do in that respect.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

6. What funds his Department makes available for training and employment for adults.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

Despite the pressures and challenges, this Government protected the adult and community learning budget. In the wake of adult learners week, Mr Speaker, I know that you will want me to congratulate all those who are involved in giving people a second chance. Overall, funding in adult and further education will be £3.8 billion in 2012-13. The expansion in provision will be focused on young adults, the low-skilled and pre-employment training for the unemployed. The reason for that is that this Government are committed to redistributing advantage. We are a Government driven by social purpose.

[Alec Shelbrooke]

What specific help can my hon. Friend’s Department make available to those not in employment, education and training, such as a constituent of mine who has a job lined up as an electrician but cannot afford the £600 training course he needs to undergo in order to gain the latest addition to the qualifications? He has been out of the trade for only 18 months.

[Mr Hayes]

My hon. Friend is right that we need to allow people to access education at the point that is right for them. That is why continuing education is so important and why the apprenticeship programme is both for young people entering the labour market for the first time and for those who want to upskill and reskill. I strongly support, as he does, the expansion of that programme in both quantity and quality.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

The ability of mature students to access further education courses in order to access higher education courses is vital both for social mobility and for upgrading the nation’s skills. As things stand, anybody taking that route incurs debts at the FE course level and, potentially, at the higher education course level—in effect a double whammy. What is the Minister going to do about it?

[Mr Hayes]

The hon. Gentleman will know that loans in further education are restricted to older learners and those learning at higher levels precisely because of my determination that the people I have described are protected from additional cost. The information that we have garnered from our early research suggests that the overwhelming majority of people would not be deterred from engaging in the way that he describes.

[Mr Gordon Marsden (Blackpool South) (Lab)]

The Minister rightly praised adult learners week, but the truth is that Ministers plan to scrap grants to nearly 400,000 adult learners, including apprentices, forcing them to take out personal loans of up to £4,000 a year. His own Department’s research shows that only one in 10 learners said they would definitely do courses on that basis. Do we not face a complete shambles, with blocked social mobility and a lost generation of adult learners? The Minister’s boss, the Secretary of State, told the Association of Colleges:

“We don’t know how it’s going to work.”

Can the Minister give a guarantee now? Will we have more adult learners on loans or not?

[Mr Hayes]

I guarantee this: the scheme we have built to deliver the most apprenticeships in our history, of the highest quality, will not be altered. I also guarantee that adult and community learning, which was constantly threatened when Labour was in government, will be secure and safe under this Government, with £210 million a year for adult and community learners: second-chance education delivered by this Government.

[Susan Elan Jones (Clwyd South) (Lab)]

7. What recent assessment he has made of the Government’s relationship with the business community.

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

8. What recent assessment he has made of the employment circumstances of apprentices on completion of their placement.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

My Department has recently led an extensive survey of 5,000 apprentices. The results, published on 15 May, show that 85% of the apprentices who completed their apprenticeships in the past 12 months are employed; 4% are self-employed and 3% are in further education or training.

[Duncan Hames]

That is very welcome news. The success of apprenticeships will be judged not just by the growth in their number but by the difference they make to apprentices’ future employment. Reports on the future jobs fund found that 14 months after starting their placement, nearly half the participants were back on benefits. Will the Minister ensure that he continues to conduct evaluations of the new apprenticeships?

[Mr Hayes]

Absolutely. The survey that I have just mentioned—the biggest survey, producing the best ever results in terms of satisfaction—showed that 92% of apprentices were satisfied with their apprenticeship, and that 88% of the businesses that took on apprentices felt they had gained a business benefit. That information is critical to guiding our policy, described last week by the Business, Innovation and Skills Committee, which I went before dutifully, as a flagship. My apprenticeship policy: our victory.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Hackney community college does excellent innovative work on apprenticeships, but along with other further education colleges it faces a 7% cut this year. Earlier, the Minister waxed lyrical about increasing social mobility, and in my constituency and others in east London, further education is a crucial way for adults who missed out to get back on track, often even before they get to the apprenticeship stage. What message does the Minister have for my constituents, as the college has to cut back further?

[Mr Hayes]

The message is plain: further education has never been given the priority in the past that it has been given by this Government. It is about the flexibilities and freedoms to respond to need in the hon. Lady’s constituency and elsewhere. Further education, once the Cinderella sector, when I became the Minister found its Prince Charming.

[Mr Speaker]

I sometimes think that the Minister of State would like dedicated oral questions for himself alone, but I am not aware that the House has any plans to provide such, so I hope he can contain his disappointment at that news.

--- Later in debate ---

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

T7. The Government’s introduction of the national careers service is welcome. The Business Secretary has made it clear that there must be face-to-face careers advice for targeted groups of adults. Will the Department try to win the argument across Government, including in the Department for Education, that face-to-face careers guidance is vital for everybody, and that mentoring for all young people in an important complementary project?

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

It was Odysseus who entrusted Mentor with the guidance of his son, as now the nation’s sons and daughters are entrusted to me. To that end, we have set up the first all-age careers service in England’s history. It is right that schools should have a statutory duty to secure independent and impartial advice and guidance. The right hon. Gentleman is correct that face-to-face guidance is an important element of that. I commit to having further discussion to see what more we can do to ensure that such guidance happens.

[Jessica Morden (Newport East) (Lab)]

T3. It is six years this year since the collapse of Farepak. The victims have still not received any of their money back, even though the administrators’ costs to wind up the company far outstripped the minimal compensation that they will eventually receive. Does the Minister understand just how frustrated Farepak customers and agents are, and does he have any positive progress to report?

National Careers Service and the National Careers Council

John Hayes Excerpts

Thursday 10th May 2012 Written Statements

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

On 5 April 2012, I launched the National Careers Service, and published “The Right Advice at the Right Time” in which I said that we would establish an independent National Council for Careers.

I am now writing to announce that I have appointed Dr Deirdre Hughes OBE to be the council’s first chair. Dr Hughes has a wealth of experience in the careers guidance sector; she is a commissioner and member of the executive board of directors at the UK Commission for Employment and Skills (UKCES). She was recently awarded an OBE in the 2012 new year honours list for her services to careers guidance. She will be supported on the council by a team of experienced and dedicated specialists drawn from across the public, private and third sector, as well as from the careers profession, and with a range of backgrounds including HR, finance, and communications.

The National Council for Careers will be a driving force for excellence in careers guidance and will provide independent, expert advice to the Government on the future development of the National Careers Service.

The National Careers Service and the National Careers Council will transform the provision of careers guidance, which is a vital part of an efficient labour market which drives growth. I have today published a press release which gives more details including the names of the members of the council. It is available from www.bis.gov.uk.

Oral Answers to Questions

John Hayes Excerpts

Monday 16th April 2012 Commons Chamber

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

We are making a record investment of more than £7 billion in 2012-13 to fund a place in education or training for every 16 to 18-year-old in England who wants one. In addition, we are investing £126 million to provide a new programme of intensive support for the most vulnerable 16 and 17-year-old NEETs.

[Dame Joan Ruddock]

Will the Minister congratulate Lewisham council on its highly successful NEETs programme and, in particular, the 150 successful apprenticeships, which stand in stark contrast to those exposed by the “Panorama” programme in “The Great Apprentice Scandal”? What will he do to root out the very poor providers that still exist in this country?

[Mr Hayes]

The right hon. Lady will know that this Government have done more on apprenticeship standards than any previous Government, including the one she supported. Minimum lengths for apprenticeships; statutory national standards; every level 2 apprenticeship moving to GCSE English and maths equivalent; tighter frameworks—these are things that the last Government could have done, but did not. Record growth, record standards—she should be proud of that, as we are.

[Paul Blomfield]

As the latest apprenticeship figures show, the Government are failing to make progress among 16 to 18-year-olds. Will the Minister therefore join me in congratulating Sheffield city council on its scheme for young people who are not in education, employment or training, which has created 100 new apprenticeships this year and promises 100 more next year, and will he urge other councils to follow that example?

[Mr Hayes]

The hon. Gentleman is a great authority on these matters, and he is wise enough to know that he needs to get his figures right if he is to quote them in the House. Although they are provisional, the latest data, for the first two quarters, show that apprenticeships for 16 to 18-year-olds continue to rise. That is not a surprise, given that over the last two years those young apprenticeships have risen by over 30%. Doing the best by young people—that characterises all that this Government do.

[Alex Cunningham]

At a time when nearly 12% of young people in the Stockton borough and 1 million nationally are not in education, employment or training, surely removing the requirement for schools to provide vital work experience for their pupils is a regressive step. Will the Government now do the right thing and reverse this bizarre policy?

[Mr Hayes]

I agree with the hon. Gentleman: it is right that we have work experience as one of the tools at our disposal, and I congratulate Stockton North, where the number of apprenticeships has risen by 76%. I know he will be very proud of that; however, he has been beaten by the right hon. Member for Lewisham, Deptford (Dame Joan Ruddock). As I think she said, in Deptford apprenticeship numbers are up 106%. What a record! What progress! What a Minister!

[Lilian Greenwood]

In my constituency, Nottingham city council has developed the employer hub, to ensure that public investment leads to job and training opportunities for local people, especially the young unemployed. Should not the Minister and the Education Secretary learn from Nottingham city council and put the full weight of their Department behind calls for apprenticeship guarantees in government procurement as a way of helping to reduce those not in employment, education or training?

[Mr Hayes]

The hon. Lady will know that I know Nottingham very well, having been a county councillor there for 13 years, and I am well aware of the economic profile of that city. I am also sure she will be aware that, together with the Minister for cities, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), I launched a new initiative in Nottingham—city apprenticeship hubs, which combine the work of local authorities with the work of the private sector and the work of government to boost apprenticeships in just the way she describes.

[Simon Kirby (Brighton, Kemptown) (Con)]

Does the Minister agree that when it comes to apprenticeships, it is not only the quantity that is important, but also the quality?

[Mr Hayes]

Absolutely, and that is why this Government have placed unprecedented emphasis on quality. I repeat—for the sake of clarity, Mr Speaker; no more than that—that we have said that all apprenticeships should be on an employed basis. The last Government did not do that. They believed in programme-led apprenticeships —faux apprenticeships from a faux Government.

[Dan Rogerson (North Cornwall) (LD)]

Through the youth contracts and apprenticeship programmes, which the Minister has already mentioned, the Government have demonstrated their commitment to tackling these problems. Is the Minister working with Departments across Government to ensure that those programmes reach into the most deprived urban neighbourhoods, and also isolated rural communities?

[Mr Hayes]

My work across Government is constant—almost endless. In particular, we are working closely with the Department for Work and Pensions. Of course, I am a Minister in two Departments—I am not just a one-Department man, but a two-Department man—so the relationship between the Department for Business, Innovation and Skills, the Department for Education and the DWP is critical to ensuring that our skills policy works across Departments.

[Mr Speaker]

The Minister expresses himself, as always, with the eloquence of Demosthenes, but I fancy that Demosthenes was somewhat briefer.

[Nicky Morgan (Loughborough) (Con)]

The Minister will be aware that good careers advice and guidance are critical in tackling this problem. What are the Government doing to ensure that such advice and guidance are embedded in local communities and available to all young people?

[Mr Hayes]

Mr Speaker, you will know that, over the Easter break, while others were enjoying eggs and buns, I was launching the national careers service—a new, all-age service and the first ever in England. It will give impartial, informed, well-researched advice to people on learning, education, training and jobs.

[Bob Blackman (Harrow East) (Con)]

The explosion of apprenticeship places is indeed welcome, but small businesses in particular have difficulty taking on apprentices. What is my hon. Friend doing to help small businesses to take them on?

[Mr Hayes]

My hon. Friend is right: Britain’s small businesses are the backbone of our economy and of our communities. In the light of that, we are reducing the bureaucracy associated with apprenticeships and, excitingly, we are giving a special apprenticeship bonus of £1,500 to every small business that takes on a young apprentice.

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

The Minister mentioned the launch of the national careers service. Will he tell the House whether the proportion of 14 to 16-year-olds receiving face-to-face careers advice will be higher or lower this year compared with last year?

[Mr Hayes]

The hon. Gentleman knows that we have put in place new statutory guidance for schools which, for the first time, insists that they secure independent, impartial careers advice and guidance. That is a massive step forward and I know that he will want to welcome it. For my money, face-to-face guidance is an important part of that.

[Stephen Twigg]

So it will be lower. Careers England described the much-delayed guidance to which the Minister has referred as “dismal”. Is not the reality that Government action has ended statutory work experience, closed the Connexions service and left no guarantee of face-to-face careers advice? Is this not yet another example of this Government kicking away the ladder of opportunity for young people in this country?

[Mr Hayes]

The national careers service is the first all-age service, and the previous Government could have introduced such a service; there were calls for them to do so on many occasions. We estimate that its website will get 20 million hits a year, and that its telephone helpline will get 1 million calls a year. I expect 700,000-plus people to benefit from the face-to-face guidance that the hon. Gentleman describes. New professional standards will also be set out for the careers industry for the first time. That is progress by any measure, and he should acknowledge that.

[Mr Christopher Chope (Christchurch) (Con)]

3. What steps he is taking to reduce regulatory burdens on schools.

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[Mike Weatherley (Hove) (Con)]

16. How many people aged 16 to 18 started an apprenticeship in (a) Hove constituency, (b) the south-west and (c) England in 2011.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

For the academic year 2010-11, final data for young people aged under 19 show that there were 110 apprenticeship starts in Hove constituency, which is an increase of 8% on the 2009-10 figure; 15,720 apprenticeship starts in the south-east region, which is also an increase of 8% on the 2009-10 figure; and 131,700 apprenticeship starts in England, which is an increase of more than 32% over the past two years.

[Mike Weatherley]

I congratulate my hon. Friend on the outstanding progress he has made in promoting apprenticeships. The previous Government provided for so-called apprenticeships without even a requirement for apprentices to have a job. Will he reassure me that under this Government the requirement to be in proper work will remain the core of our apprenticeship offering?

[Mr Hayes]

One of the first things I did when I became a Minister was to insist that apprentices should be employed, in order to end programme-led apprenticeships. They were the hallmark of the previous Government’s approach, as was recently highlighted in the programme referred to a few moments ago.

The letter that I am holding was sent to me, and it says:

“We warmly welcome the Government’s focus on Apprenticeships and its efforts to guarantee”

apprenticeship “quality”. It is signed by some of Britain’s leading companies and by the TUC. So business, unions and the Government are coming together—only the Labour party is standing apart.

[Mark Lancaster (Milton Keynes North) (Con)]

17. What steps he is taking to speed up the adoption system.

--- Later in debate ---

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

High-quality vocational education is vital, underpinning economic growth, and vocational qualifications must enjoy the same rigour as academic qualifications. If we are to build the status of practical learning, it is critical that they do so, and that is why, alongside our focus on apprenticeships, we are incentivising schools to offer the best vocational qualifications to provide a high-quality and respected route into employment and further and higher education.

[Julian Smith]

Andrew Cummings, head teacher of the excellent South Craven school in my constituency, is concerned that the current focus on purely academic subjects is threatening that school’s focus and efforts on vocational learning. I have tried to reassure him—can the Minister help?

[Mr Hayes]

I know of the good work of that school, and my hon. Friend has been a doughty champion of that good work. He is right that good vocational education is as important as good academic learning. For too long, we conned ourselves into believing that only through academic prowess could people gain a sense of worth and purpose. I believe it is time to elevate the practical; this Government will do so.

[Mr Speaker]

It is also important to me to reach the hon. Member for Chippenham (Duncan Hames).

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[James Morris (Halesowen and Rowley Regis) (Con)]

I recently launched an apprenticeship challenge in my constituency, encouraging local businesses to provide 50 new apprenticeships by the Olympic games. What can we do to break down barriers and get more apprentices into small and medium-sized businesses?

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

My hon. Friend is doing a great job in promoting apprenticeships in his constituency, and the whole House will want to celebrate that fact. He is right that small businesses sometimes perceive the risk of taking on apprentices as being greater than larger firms do. We need to make the process much simpler and take out the bureaucracy. We have provided a toolkit and put financial incentives in place, but we will go still further to ensure that in every village and town, every business has the chance to take on an apprentice.

[Jim Dobbin (Heywood and Middleton) (Lab/Co-op)]

T10. It is important, when individuals and groups apply to open a free school, that proper checks on them are made. Can the Secretary of State give me guarantees that those checks are in place?

--- Later in debate ---

[Andrew Bridgen (North West Leicestershire) (Con)]

Last week I presented certificates to 12 young people in my constituency who had completed the Prince’s Trust team programme, a programme designed to help those not in education, employment or training gain the skills and the confidence to return to the world of work. Does my hon. Friend agree that such programmes are an invaluable tool in getting young people back to work?

[Mr Hayes]

Absolutely. Third party organisations, notably the Prince’s Trust, do an extremely good job in providing such support and good quality information, opening up opportunities and giving people a sense of what they can achieve. I congratulate them and my hon. Friend for drawing their work to our attention.

[Lisa Nandy (Wigan) (Lab)]

The Government recently started X-raying children whose age is in dispute, despite an overwhelming body of medical evidence that this practice is unethical, exposes children to harmful doses of radiation and is entirely ineffective in determining a child’s age. As the Minister responsible for safeguarding and the welfare of children, will he tell the House what he is doing to ensure that this appalling trial ceases with immediate effect?

Bursaries for Initial Teacher Training

John Hayes Excerpts

Tuesday 27th March 2012 Written Statements

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

I am writing to update the House on the level of bursaries for initial teacher training in academic year 2012-13.

On 23 February I announced funding of £11.5 million for bursaries to support initial teacher training undertaken by teachers in the FE sector in 2012-13. As I said then, it is a powerful demonstration of the Government’s wholehearted commitment to the FE and skills sector that despite the current financial pressures and in challenging times, we are looking to secure the talents and skills of potential FE teachers.

Recruiting the best talent is central to making the sector as good as it can be, and a key element in our approach to driving up standards and increasing professionalism in the sector. Further education is at the heart of economic revival; at the core of social renewal.

In my written answer of 1 March, Official Report, column 446W, to a question from the my hon. Friend the Member for Beverley and Holderness (Mr Stuart), I promised further details of that bursary scheme, which are outlined below.

FE Bursaries

Two levels of bursary will be available:

(a) a bursary of £1,000 available for up to 10,000 applicants seeking to teach in the FE and skills sector and following an HEI-accredited route; and,

(b) a bursary of £1,500 available for up to 1,000 applicants seeking to teach basic maths and English (including functional skills) and also following an HEI-accredited route.

Bursaries are open to both in-service and pre-service trainees who will be following a Diploma in Teaching in the Lifelong Learning Sector (DTLLS) at level 5 or a post-graduate qualification such as PGCE at level 6 or 7. Bursaries will be allocated on a first-come, first-served basis.

BIS officials are discussing the most effective administration of the bursaries with the Learning and Skills Improvement Service (LSIS), who will need to discuss with key stakeholders further details of the administration of the scheme.

The bursaries are currently for 2012-13 only. Funding arrangements for teacher training beyond 2012-13 will be reviewed in the light of the recommendations announced today in the independent review of professionalism, chaired by my noble Friend Lord Lingfield, and changes to FE and skills funding that will introduce loans for training at this level from September 2013, aligning it more closely with arrangements in higher education.

Other related arrangements

(a) Fee grant: there are currently in excess of 2,500 part-time ITT trainees in the first year of their teacher training and who have received their fee grant of £400 from the Institute for Learning (IfL.) These trainees will not be eligible for the FE bursary. However, those continuing into their second year will be eligible for a further £400 fee grant, to be administered by IfL.

(b) Awarding body provision: ITT qualifications accredited by awarding bodies and on the qualifications and curriculum framework will continue to be funded in 2012-13 by the Skills Funding Agency.

(c) Priority subjects: I am reviewing whether more needs to be done specifically within the FE and skills sector to support priority subjects such as STEM.