National Careers Service and “The Right Advice at the Right Time”

John Hayes Excerpts

Friday 23rd March 2012 Written Statements

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

In “New Challenges, New Chances”, the Government’s reform plan for Further Education and Skills published on 1 December 2011, we reinforced the importance of first class advice on careers and skills to help individuals make informed choices. It is right at the heart of our strategy for sustainable growth and social renewal.

That is why, on 5 April 2012, I will be launching the National Careers Service. This major new service will ensure that accurate information and professional advice about learning and work is available to all.

Alongside the launch of the National Careers Service, I will be publishing a document called “The Right Advice at the Right Time” bringing together in one place all that the Government and their partners are doing to ensure young people and adults get the advice they need on learning and work. We are now entering a new phase, where high quality, high status careers advice services should be readily available.

I believe passionately in the power of careers guidance to transform lives. We have debated these plans on a number of occasions, including during the passage of the Education Bill. Throughout, the passion and commitment of my parliamentary colleagues to getting the best for young people and adults has shone through. I will be pleased therefore to make sure that copies of “The Right Advice at the Right Time” are made available to colleagues in the Libraries in both Houses.

English for Speakers of Other Languages

John Hayes Excerpts

Wednesday 29th February 2012 Written Statements

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

Together with my hon. Friend the Under-Secretary of State for Communities and Local Government, the Member for Hazel Grove (Andrew Stunell), I would like to update the House following my statement I made on 18 July 2011, Official Report, columns 59-60WS, on the provision of English for Speakers of Other Languages (ESOL) training.

The written statement of 18 July 2011 stated that the Department for Business, Innovation and Skills would work with the Department for Communities and Local Government to consider additional ESOL provision for learners with no, or extremely poor, levels of spoken English, who are not in or currently actively seeking employment, and are unable to afford course fees.

We are therefore pleased that the Secretary of State for Communities and Local Government will make available up to £10 million in the 2011-12 academic year to support this additional English language training. Funding is now being offered to further education colleges and training providers in areas facing significant integration challenges to support the delivery of English language training.

As set out in “Creating the Conditions for Integration”, published on 21 February, we believe that being able to communicate in English is vital for an individual’s personal advancement, and central to creating strong and integrated communities.

Classification of Colleges

John Hayes Excerpts

Monday 27th February 2012 Written Statements

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

I am writing to inform the House that the Office for National Statistics (ONS) has recently reviewed the classification of colleges and notified HM Treasury on 23 February 2012 that both further education colleges and sixth-form colleges will be reclassified to the private sector upon commencement, in April 2012, of the relevant parts of the Education Act 2011.

On 14 October 2010, I informed the House of the decision by the ONS to reclassify general further education colleges as part of central Government for the purposes of national accounts. FE colleges had previously been classified as part of the private sector. On the same date ONS announced that sixth-form college corporations were classified as local government entities for national accounts purposes.

Confirming the Government’s commitment to reduce burdens on further education colleges and to give them freedoms to make their own decisions on how best to manage their affairs for the benefit of learners, employers and wider communities, I pledged to work to challenge the original classification.

Through the Education Act 2011, the Department for Business, Innovation and Skills and the Department for Education have removed a wide range of restrictions and controls on further education and sixth-form college corporations, putting them on a similar footing to charities operating within the independent/private sector.

Having reviewed the changes we have made, the ONS has concluded that they are sufficient to remove public sector control over these corporations, and they will consequently be reclassified to the private sector. This reclassification is provisional upon ensuring that there are no other public sector controls in other documentation, such as the funding agreements, and keeping under review the use of remaining Government powers within legislation.

I am today writing to the Association of Colleges to inform it of this achievement. Lord Hill is similarly communicating with the sixth-form colleges’ sector.

Apprenticeships

John Hayes Excerpts

Monday 27th February 2012 Written Statements

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

Apprenticeships are now providing a record number of opportunities for individuals and employers, and the benefits that programme delivers can be felt across every community in our country and every sector in our economy. Apprenticeships deliver strong wage returns for individuals and boost their career progression; deliver higher productivity and a motivated workforce for employers; benefit communities by supporting social mobility and employment opportunity; and help to build a workforce equipped with the skills needed to compete globally.

Apprenticeships are delivering results, and the momentum that has been created will continue to reap rewards in terms of future growth in the programme. Delivering these results for individuals and employers depends upon ensuring that the value, impact and brand of apprenticeships remains strong and continues to be strengthened, raising the status of vocational learning and so for vocational learners. In this way the real and perceived value of apprenticeships impacts upon the self-worth of those that complete them and the view that others have of their achievement. So it is right that we now look to build upon this growth and momentum with a renewed and relentless focus on quality—to help ensure all apprenticeships are as good as the best, to identify and root out any instances of poor quality provision, and to raise the bar on standards.

Last year, statutory standards for apprenticeships came into effect for the first time. Following which I announced a series of further measures to improve the quality of the programme, and asked the National Apprenticeship Service to develop a comprehensive quality action plan. Now I want to direct you to the progress that has been achieved so far and the next steps.

In delivering these improvements, we will work closely with the FE and skills sector, who are best placed to drive up quality, and continue to strive to give the sector the freedoms and responsibility to tailor their provision to meet learner and employer need.

Short duration

First, an apprenticeship must involve significant new learning and time spent achieving competence and confidence in the job, which is why I am taking steps to ensure all apprenticeships are of a sufficient length to allow this learning to be embedded. Following my announcement in December, the National Apprenticeship Service will shortly publish the detail of a new 12-month duration requirement for all 16-18 year olds. This will come into effect for all starts from August 2012, although we expect many providers to change their delivery models before then.

NAS and the agency are pressing ahead with their comprehensive review of all short duration programmes:

87 training organisations providers, subcontractors and directly funded employers delivering apprenticeships of short duration (six months or less) warranted review by the agency and NAS.

29 cases have been brought to a satisfactory conclusion. These will continue to be monitored to ensure that issues do not occur and in preparation for the new requirements on duration from August 2012.

Where cases have been concluded, providers have changed their delivery models to be fully compliant or ended the delivery of frameworks that do not meet the requirements.

Most providers have revised their programmes to meet the challenge in quality standards that are required.

So far, the review has identified 10 primary contractors and three subcontractors where the agency and NAS have significant and unresolved concerns. NAS and the agency will work closely with these providers to conclude a full investigation of the specifics of the cases and identify suitable resolutions, including improving, adapting or, if necessary, withdrawing provision.

Following major reviews, in the case of three subcontractors, prime contractors have decided to end their contractual relationship.

At least one case has been referred to the agency’s special investigations unit.

It has been made clear to providers that contracts which meet funding requirements technically but fail to meet the more comprehensive quality standards we expect of apprenticeships are not acceptable. The agency will significantly tighten the contract and funding guidance from August 2012 to eliminate poor practice.

The reviews of the majority of the cases that remain will be finalised by April 2012.

Provider management and Subcontracting

Secondly, in order to ensure that all those who are being funded to deliver apprenticeship training are fit for purpose and fulfilling their responsibilities in a proper manner, I have asked the National Apprenticeship Service, working with the Skills Funding Agency, to strengthen monitoring, reporting and subcontracting arrangements to ensure quality concerns are thoroughly and systematically identified and managed routinely:

A new “enquiry panel”, which will report directly to me, will manage contractual and quality weakness as it is identified, outlining the shape and scale of any investigations being undertaken.

The agency will ensure that the contracting system is strengthened to remove any ambiguity and to protect the quality and standards of the apprenticeship programme through the funding rules, policies and contractual obligations of training organisations and employers.

A new contractual clause will be introduced to ensure training organisations and employers act within both the stated policy intent as well as the regulations of the system. Failure to uphold standards will constitute a breach of contract.

The agency will publish clear guidance on the funding that can be drawn down when an apprentice has prior learning—ensuring a clear link between delivery and investment by the Government. New funding guidance will clearly stipulate these requirements.

Effective immediately, all subcontractors over a value of £500,000 will be required from now on to pass the same due diligence test that we apply to lead providers; meaning that subcontractors will be regulated through the Register of Training Organisations. We will work to extend this condition to all subcontractors by December 2012.

From February, the agency will publish the list of all subcontracted provision that amounts to over £100,000.

The agency will publish the list of training organisations that breech its terms and conditions once all legal action and recovery of funds has been completed.

The agency will enforce minimum levels of performance on all apprenticeship providers. We are currently reviewing these to ensure that the thresholds that apply to apprenticeships are suitably rigorous.

Lead providers are now contractually required to publish details of subcontractors. We will withhold payments to any lead provider that fails to do so.

Wider next steps

Taken together, this strong and decisive action is already having a positive impact on the overall programme. But constant vigilance is necessary to ensure that every aspect of the apprenticeship programme is recognised as meeting the high quality standards I have set; to protect the taxpayer’s investment; and most importantly to ensure the greatest impact on young people, employers and the wider economy.

So over the coming months, still further measures will include:

Taking steps following our commitment to introduce minimum durations for apprenticeships for under 19-year-olds, to ensure adult apprenticeships are also of sufficient length to deliver and embed learning.

An NAS review of a number of apprenticeship frameworks and models of delivery which have been identified as needing quality improvements.

Published revised guidance on the application of SASE, and a commitment to review SASE periodically to ensure its currency and relevance

Publication of a revised quality delivery statement by NAS setting out how apprenticeship framework content should be delivered, and including final details on the new delivery and funding rules.

Confirmation of our commitment that all apprentices who do not have level 2 in English and maths should have the opportunity to progress towards this.

As these detailed measures set out, we will take every necessary step in the months ahead to protect and improve the quality of the apprenticeship programme, so that we can be confident that, as more people than ever have the opportunity to undertake an apprenticeship, they will receive the high quality training that learners and employers deserve.

Oral Answers to Questions

John Hayes Excerpts

Monday 27th February 2012 Commons Chamber

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

Ofsted found that more than half the secondary schools inspected in 2010-11 were either outstanding or good in developing workplace and other skills to assist students’ future economic prospects. However, young people should also have access to high-quality and impartial information, advice and guidance. The new national careers service, which will be launched in April, will provide just that.

[Karl Turner]

Does the Minister agree that a diploma in engineering is an important qualification and an important skill for young people? Downgrading that important qualification is, in my view, damaging to foreign manufacturers such as Siemens, which is hopefully about to invest very heavily in offshore wind in my fantastic constituency.

[Mr Hayes]

The hon. Gentleman will be delighted to learn—I hope—that I plan to visit Hull on 19 April to meet local employers and interested parties. I am very happy to add him to the list of invitees. We will then take forward just the kind of agenda that he suggests.

[Mr Speaker]

If I had known that on Thursday night when I was in Hull I might have told my audience. I didn’t, so I couldn’t, but never mind.

[Esther McVey (Wirral West) (Con)]

Having done much work in career guidance and helping young people to enter work, I am now working with the Department for Business, Innovation and Skills to do real-life pilot schemes with real-life business advisers. Could I meet the Minister so that we can have the best cross-departmental support for that scheme?

[Mr Hayes]

It is absolutely right that we should have that, and to understand that the business of providing information, advice and guidance is about giving people the wherewithal to know that the choices they make will affect their future prospects, how they will do so and how we can help. I am determined that such empirical, independent advice and guidance should be available to all. It is about redistributing advantage.

[Mr Gerry Sutcliffe (Bradford South) (Lab)]

But how are young children going to be motivated when, as in my constituency, youth unemployment has gone up by 88% in the past 12 months? Where will the jobs come from that schools can use to motivate young children?

[Mr Hayes]

It is partly about people recognising the opportunities that exist through the right kind of advice and guidance. Of course, the hon. Gentleman is right that economic growth is our key priority—he knows that that permeates all the Government do—but it is absolutely right that we equip people with the right skills on the basis of the right information to make the right choices about job opportunities.

[Mr Rob Wilson (Reading East) (Con)]

Secondary schools, particularly comprehensives, have a critical role to play in fostering aspiration and getting young people ready for higher education and for work. Has my hon. Friend seen the recent report by the Fair Access to University Group, and does he believe that we can do more to help disadvantaged pupils into our top universities and therefore into our top professions?

[Mr Hayes]

Widening access to higher education and learning is at the heart of what I am trying to achieve, but that is not principally about admissions. It is about good advice and guidance; access points to learning; modes of learning; and prior attainment. Let us be clear about how we can widen access and not be hung up on admissions.

[Alok Sharma (Reading West) (Con)]

12. How many 16 to 18-year-olds started an apprenticeship last year.

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

Final data for the 2010-11 academic year show that there were 131,700 apprenticeship starts in England by young people aged under 19—the greatest number in modern history. That is an increase of 12.8% in a year and of 32.6% in two years. The whole House will acknowledge that achievement. We are feeding social mobility and nourishing social justice.

[Alok Sharma]

I thank the Minister for his huge personal commitment to making the Government’s apprenticeships policy a success—my constituency had more than 900 apprenticeship starts last year. What is his Department doing to make eligible businesses aware that up to 40,000 incentive payments of £1,500 each are available to employers if they take on young apprentices as part of the youth contract?

[Mr Hayes]

With the modesty for which my hon. Friend is known, he understated his own involvement in national apprenticeship week, when I understand he shadowed an apprentice working in a pre-school. He is right that we need to get more small and medium-sized enterprises involved, and to that end I am delighted that the Prime Minister announced during national apprenticeship week the extra support that we are providing. Every small business that takes on a young apprentice will get £1,500—something that the previous Government never attempted.

[Mr Graham Allen (Nottingham North) (Lab)]

13. What discussions he has had with ministerial colleagues on responsibilities for early intervention.

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[Gareth Johnson (Dartford) (Con)]

T2. Does my right hon. Friend agree that the announcement that further education colleges are to be reclassified as private rather than public bodies demonstrates the genuine progress that the Government have made to free colleges from unnecessary central control?

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

Yes, and I have a letter here confirming what my hon. Friend said: the Government have achieved what we set out to do, which was to free further education and sixth-form colleges from unnecessary intervention. The Office for National Statistics decision provides a resounding confirmation of our success in that regard. We are seeing colleges that are trusted, free, ambitious and, at last, treated as grown up.

[Mr Speaker]

We are all deeply grateful to the Minister of State.

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[Fiona Bruce (Congleton) (Con)]

T4. Does the Minister agree that the National Audit Office report’s conclusion that supporting apprenticeships, such as through the excellent Beartown apprenticeship scheme in my constituency, which partners schools, local businesses, the chamber of commerce and Plus Dane, can generate a return of £18 for every £1 invested? Does that not confirm the Government’s wisdom of putting apprenticeships at the heart of vocational learning?

[Mr Hayes]

I am grateful to my hon. Friend for highlighting that fact. As she says, the NAO report, which I have with me, is absolutely clear: for every £1 we spend on apprenticeships, we get a return of £18. Can you think of any aspect of Government policy that represents better value for money than that, Mr Speaker?

[Hugh Bayley (York Central) (Lab)]

T8. To be topical, just a moment ago the Minister of State, the hon. Member for Bognor Regis and Littlehampton (Mr Gibb), rightly pointed out the importance of the English baccalaureate in encouraging young people at secondary school to learn modern languages. In order to gain the baccalaureate, young people also have to do well in maths, science and a humanities subject—history or geography. Why not also include religious education as a possible subject here?

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

T3. The National Audit Office’s conclusions about apprenticeships are very welcome indeed, but can the Minister assure the House that young people who live in truly rural areas are also benefiting from the scheme?

[Mr Hayes]

My own constituency is one of those truly rural areas—true in every respect—that have benefited. In my constituency, the figure is 86%, in Banbury 33%, in Suffolk Coastal 56% and in Mid Norfolk 59%—across rural Britain, apprenticeships are growing.

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[Guy Opperman (Hexham) (Con)]

The number of apprentices in the north-east has gone up from 18,000 to 34,000 in my area. I added one when I became the first MP to employ an apprentice in my Hexham office. What more can the Minister responsible for apprenticeships do to encourage others, including MPs, to take on apprentices?

[Mr Hayes]

The answer is simple: we must evangelise the case for apprenticeships with all our might and power. It is about numbers but it is about standards too. I draw my hon. Friend’s attention to our actions to raise standards, get small businesses involved and let people know that all this is good for apprentices, good for businesses and good for Britain.

[Meg Munn (Sheffield, Heeley) (Lab/Co-op)]

I have been contacted by one of my constituents who adopted a child from care. She faces losing the only support she gets from the state—her child benefit. Given that the Secretary of State wants more people to adopt children from care and that they often have many needs that are ongoing for X number of years, will he put aside more money to support such children and their families in the years ahead?

City Skills Fund

John Hayes Excerpts

Thursday 23rd February 2012 Written Statements

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

I am writing to inform the House that we are announcing the availability of the city skills fund, worth £4.5 million in total, designed to help cities and their surrounding areas realise the positive impact of high-quality skills training on their local economies and on the lives of people in their areas. This follows the announcement made on 8 December 2011 by the Minister of State, Department for Communities and Local Government, my right hon. Friend the right hon. Member for Tunbridge Wells (Greg Clark) who is responsible for decentralisation and cities, of the publication of “Unlocking Growth in Cities”, which described a new framework for the relationship between our largest cities and central Government

Cities are at the heart of our nation. As ever, they embody the best of what has been achieved and what could be. Each of us values civic pride and wants to inspire still greater civic purpose. Economic growth fuelled by the progress of citizens and communities feeds purposeful pride. Inspired by our determination to build ever more confident civic life and appreciative of the central role of local government in doing so, we have jointly planned a new initiative to secure economic growth by feeding opportunity.

In particular, I want cities to be able to develop apprenticeship hubs and, working with colleges and independent providers, to tailor skills provision to the needs of employers.

The fund will be administered on my Department’s behalf by the Skills Funding Agency. I am today writing to the core cities and London to invite them to express an interest in bidding to the fund for up to £500,000 each. Copies of the letters will be placed in the Libraries of both Houses.

Oral Answers to Questions

John Hayes Excerpts

Thursday 2nd February 2012 Commons Chamber

[Henry Smith (Crawley) (Con)]

9. What plans he has to facilitate the provision of higher education in further education institutions.

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

The Government see a crucial role for further education colleges in delivering higher education, because demand cannot be enlivened unless supply is diverse, so we are extending loans to part-time students; freeing up controls on student numbers; increasing directly funded places at FE colleges; widening access to higher learning; and changing assumptions about the modes of and access points to learning. It is higher education for the many, not the few.

[Henry Smith]

I am grateful to my hon. Friend for his answer. Will he join me in congratulating Central Sussex college in my constituency, which last September started a university presence on its campus? It is linking local students—under the previous Government, only 17% of them went on to higher education—with first-class local employers. Of course, he has an open invitation to visit.

[Mr Hayes]

I am aware of that excellent development, which enjoys the wholehearted support of my right hon. Friend the Minister for Universities and Science, who has done much to encourage the widening of access to higher education. My right hon. Friend will offer some exciting news about additional places when he rises to his feet, because we are determined that everyone, wherever they begin, should have their chance of glittering prizes.

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

There is very real concern in the FE sector that, arising from the core and margin provisions for higher education and a potential reduction in university places, higher education institutions may claw back provision from FE colleges. What reassurance can the Minister give the sector that that will not happen?

[Mr Hayes]

The hon. Gentleman is right to draw attention to that risk, and it is absolutely right that, given our ambition to widen access, which I articulated a few moments ago, universities should not engage in anti-competitive practices. The Secretary of State has made it clear that that is not acceptable, and my right hon. Friend the Minister for Universities and Science is taking action to prevent it. We will take a very dim view of universities that are not engaged with our mission to elevate the people through access to learning.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

University Campus Suffolk is based in Ipswich, in a neighbouring constituency to mine. One of the challenges it faces is that as it does not award its own degrees, it is not allowed to appear in the league tables, or in other listings that students readily access. Is there something that can be done to remove that element of bureaucracy, so that it can appear alongside any other university?

[Mr Hayes]

Sometimes, my relentless drive to remove bureaucracy is regarded as excessive, but if that is the charge, I plead guilty. My hon. Friend is absolutely right: we need to make the process as straightforward as possible, and we will take action to do so, partly stimulated by her question and her excellent work in this area.

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

The expansion of the role of further education colleges in providing higher education is a positive step, but it sits alongside the Government’s plans to expand the role of for-profit providers in delivering higher education. Will the Minister tell us whether the Government will bring a higher education Bill to the House later this year, and will he undertake not to introduce regulatory changes that make it easier for for-profits to enter the sector without full parliamentary scrutiny?

[Mr Hayes]

If I were a less experienced Member of this House, the hon. Lady’s erudition and charm might encourage me to make predictions about the Queen’s Speech, but it would be quite wrong to do so and I cannot possibly answer that question. What I will say is that the determination on this side of the House to seed opportunity by providing greater access to higher education is a profound one.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

10. What recent progress he has made on determining the location of the green investment bank.

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[Heidi Alexander (Lewisham East) (Lab)]

15. What recent assessment he has made of the strength of the construction industry.

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

The construction industry, as with much of the economy, has come through a difficult period and faces a challenging year ahead but, as ever, in the areas for which I am responsible I offer sunny uplands. Figures published just yesterday show that construction industry apprenticeships for 2010-11 saw an increase of 11.4%—fine words, still finer deeds.

[Heidi Alexander]

The Minister says that the construction industry faces a challenging year, but it faces a challenging decade. The Construction Industry Training Board points to new research suggesting that employment and output in the construction industry in 2016 will be 5% lower than 2007 levels. Given that the construction industry could be a real stimulant to jobs and growth, will the Minister tell me when the Government are going to come up with policies that actually work instead of ones that just sound good on paper?

[Mr Hayes]

The figures I just revealed show that the construction is not being hampered by current difficulties but is investing in its future. We know that industry sectors that invest in the future bounce out of the kind of downturn that the industry currently faces. However, I accept what the hon. Lady says and we will go further. As a result of her question and my consideration of these matters, I will, with the CBI and the Federation of Small Businesses, invite the construction industry into BIS to talk about how that boost in apprenticeships can feed the kind of improvements that she seeks and Britain needs. Talking down business is talking down Britain, and that is something we will never do on this side of the House.

[Mr Marcus Jones (Nuneaton) (Con)]

Construction is an important sector in my constituency, but its future very much depends on making sure that we have the skills available to support this sector for the future. Will my hon. Friend set out what actions he is taking to make sure that we support skills in this vital area?

[Mr Hayes]

As I said, the investment in apprenticeships is critical. No one doubts that construction industry apprenticeships are vital to building the skills the industry needs. I just want to say that no Member of the House has been more doughty in championing the interests of business in his constituency than my hon. Friend. He personifies our determination to boost skills, improve our prospects and build recovery.

[Mr Speaker]

I am sure the hon. Gentleman is very grateful for the Minister’s tribute.

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[Tony Baldry (Banbury) (Con)]

T7. What can the Department for Business, Innovation and Skills do to support the more than 1,500 community-led work clubs across the country to help young adults to recognise the apprenticeship opportunities that exist, ensure that further education colleges can provide training opportunities for those out of work, and link in the national careers service?

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

I am delighted that my hon. Friend has raised that matter again, as he has done frequently. He has done much work in Banbury in this area. The important thing to do next is to match the businesses to the young people. We can do that by getting businesses into schools and by speed-dating—that is an exciting prospect, is it not, Mr Speaker? We must use all modern media to ensure that young people know about the jobs and opportunities that exist—where they are, what they are and how they can find them.

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

T5. Somethin’ Else is a design and creation company on Silicon roundabout in my constituency. It employs 65 people and recently produced a film that was shown at the Conservative party conference. Recently, it has been battling with Her Majesty’s Revenue and Customs over disproportionate fines for the alleged late payment of tax. That has led to a fine of more than £25,000. Given HMRC’s deals with large corporations and the Government’s professed support for small businesses, which the Secretary of State has reiterated today, what discussions is the Department having with HMRC and the Treasury to ensure that businesses are aware that it is on their side and that the Government are acting in a joined-up fashion so that punitive tax attacks are not made on small businesses?

[George Freeman (Mid Norfolk) (Con)]

T8. May I, on the eve of national apprenticeship week, congratulate the Minister and the Government on the steps they are taking to increase the number of apprenticeships? I invite him to support the Norfolk Way project, which is giving youngsters work experience and entrepreneurial mentoring. I also invite him to agree with the wonderful words of Galileo Galilei, “We cannot teach people things; we can only help them discover it within themselves.”

[Mr Hayes]

John Clare, who is greatly admired by my hon. Friend, said:

“The best way to avoid doing a bad action is by doing a good one”.

Of course, he ended his life near Norfolk. My hon. Friend understated his own involvement in the project that he mentioned; he launched it, but he was too modest to say so. It says here that the project is “determined to nurture the ambition of enterprising young people and to encourage a can-do attitude.” I cannot do better than that.

[Mr William Bain (Glasgow North East) (Lab)]

T6. The Government have been sending out mixed messages recently about the extent of their financial commitment to the proposed green investment bank. Will the Secretary of State confirm that the proposed public contribution will be £3 billion as promised and not up to £3 billion, and that the bank will assume its borrowing powers in 2015?

[Damian Hinds (East Hampshire) (Con)]

T10. This week’s National Audit Office report on apprenticeships shows that for every pound of public money that is invested, there is a return of £18. Will my hon. Friend reassure us that he is taking all reasonable steps to continue the successful growth of apprenticeships?

[Mr Hayes]

My hon. Friend will know that the figures published this week show a record number of apprenticeships across the whole country, in all sectors and at all levels. What does the NAO report say? As my hon. Friend described, it shows a massive return on public investment. This is success by any measure. By the way—I did not want to emphasise this, Mr Speaker—it also states that our policy is far better managed than was Train to Gain by the previous Government.

[Diana Johnson (Kingston upon Hull North) (Lab)]

How hard did Ministers press the case for British business with their colleagues in the Ministry of Defence, who yesterday produced a written ministerial statement which said that the Government will no longer prioritise UK suppliers when purchasing defence equipment? That is another kick in the teeth for all of us who are fighting to prevent British BAE Systems jobs from being exported, at a cost of £100 million to British taxpayers.

Self-Employment

John Hayes Excerpts

Tuesday 24th January 2012 Westminster Hall

[Nick de Bois (Enfield North) (Con)]

I shall be brief. I intended to make two points, but I will now make only one, in the interest of enabling other hon. Members to speak. I want to talk about the role of education and of finance and how help can be provided to people. I fully confess to being heavily influenced by a constituent of mine, who has been working under the scheme led by Virgin Media. In the past year, she has taken steps to establish a competitive business. In fact, while she was at college, she was so entrepreneurial that she decided to use some of her student loan to help to fund the website that is driving her business. The entrepreneurial spirit is to be admired. I have no idea whether she was allowed to do that, so I will not name her, but it shows that with some lateral thinking, perhaps some of the young talent that exists can be put to good use.

I myself did not go to university. I went to a technical college in Cambridge, which I am told is now a university. The business studies course that I did was a sandwich course. It struck me that the only choice that I had during that sandwich course was to go to a placement that was put to me by the college, very helpful though it was at the time. Why cannot we set up an arrangement whereby we allow a sandwich year, even in a course of reduced time length, to become an opportunity for someone, under mentoring and guidance and with the ability to use student finance at their disposal, to take their first steps towards running a business?

If we think creatively, we can not only foster the educational and mentoring skills that are so vital; we could even allow people access to finance, perhaps on the same terms as those of the student loans scheme. I suspect that it would not be able to extend its remit to do that and we may have to look elsewhere for other sources of financing. However, if we are genuinely saying, “Let’s educate and let’s motivate,” and we have students who are showing character and willingness by seeking out the courses, there could be a useful match with an existing system in order to help them. At the end of the day, the payback to them as individuals will be substantial—the payback to the economy will be vital.

I therefore ask my hon. Friend the Minister to give the initiative that I have described some consideration and not to lose sight of something that we all too glibly talk about—

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

I have given that some consideration and I am grateful to my hon. Friend. I think we will do it. I think it is a very good idea and I will ask my civil servants to work something up.

[Nick de Bois]

I say, when you’re ahead, quit. I thank the Minister.

--- Later in debate ---

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

It is a pleasure to serve under your chairmanship, Mr Streeter, and to speak in this important debate, to which there have been many valuable contributions. I do not want to be excessively partisan—as you know, I regard it as vulgar—but it is noticeable that this debate has been dominated by my party, the party of business. It must be slightly disappointing for the shadow Minister that he has been so poorly served by his own Back Benches. There is almost no one here to support his—I was going to say oratory, but I do not want to overstate the case.

Ezra Pound, the great poet, said that genius is the capacity to see 10 things where an ordinary man sees only one, so I shall try to make 10 points in response to what has been said in this debate. Education was mentioned in the introductory remarks of my hon. Friend the Member for Watford (Richard Harrington), whom I congratulate on securing this debate. He led it with style and acumen, making a strong point about the importance of education, of ensuring that young people are imbued with a sense of enterprise, which permeated several Members’ contributions, and of countering the prevailing prejudice against business.

[Justin Tomlinson]

Will the Minister give way?

[Mr Hayes]

No, will not, because of time. Forgive me. Chesterton said that those who were impatient enough to interrupt the words of others seldom have the patience to think of good words themselves. I put on record that that is not true of my hon. Friend, but just in case, I will not give way.

My hon. Friend the Member for Selby and Ainsty (Nigel Adams) spoke about the importance of finance. My hon. Friend the Member for Nuneaton (Mr Jones) discussed enterprise and small business, and what a champion he is for the small businesses of Britain. My hon. Friend the Member for Wyre Forest (Mark Garnier) spoke about tax and the importance of having the right tax regime. My hon. Friend the Member for Maidstone and The Weald (Mrs Grant), who is no longer in her place, made a useful contribution on information about careers. My hon. Friend the Member for Montgomeryshire (Glyn Davies) made a point about the disproportionate effect of regulation on very small businesses. My hon. Friend the Member for Selby and Ainsty also mentioned skills, my hon. Friend the Member for Newton Abbot (Anne Marie Morris) mentioned mentoring and my hon. Friend the Member for Meon Valley (George Hollingbery) discussed the communal value of business. I think that I have covered most of hon. Members’ contributions. If I have not, I apologise. They were all immensely valuable, and are valued by the Government.

It is important to recognise the critical role that small business in particular plays in our economy. As an expert on these matters, Mr Streeter, you will know that small and medium-size enterprises are a crucial engine for growth and are critical to our national economic success in every sector. Together, they are responsible for almost half the private sector’s £900 billion output and 60% of private sector jobs. Since 2000, the 31% increase in businesses has been driven entirely by SMEs. Small business is the backbone of our nation and the driver of innovation. It is the embodiment of enterprise, because it is in start-up businesses that ideas have their genesis and subsequently germinate. Every business starts as a small business.

Politely—almost flatteringly—several Members referred to my own business career. I was lucky in business. All success in business is a combination of good luck and good judgment. I entered the IT industry when it was growing; what a great place it was to be in the 1980s. I learned there that politicians must be sensitive to the needs of business. They particularly need to understand that by and large, businesses want politicians to get off their back and on their side. The Government play their part through regulation, the tax system, information, support and pump-priming, but they must step back to let business thrive.

Having said that, I will mention the 10 things that Government can do, in the six minutes available to me. First, we are focusing on education. We are establishing an enterprise village website, which we will develop further, enabling teachers to access free online resources to assist them in developing school businesses. Secondly, on the “inspiring the future” website, we have made more information available about business and business education to at least 2,500 local enterprise champions and role models.

Thirdly, the National Association of College and University Entrepreneurs, which was mentioned in the debate, is building sustainable national infrastructure to develop and drive forward student enterprise societies across higher education institutions and further education colleges. I expect about 90 universities and 160 FE colleges to be involved in that initiative. Fourthly, reducing the small profits rate from 21% to 20% from April 2011 and reversing the previous Administration’s plans to raise the rate to 22% will undoubtedly help business.

Fifthly, we have increased the national insurance contributions threshold for all employers by £21 a week above indexation from April 2011, reversing the previous Government’s plan, which I think the hon. Member for Chesterfield (Toby Perkins) failed to mention because he is embarrassed about it. He is a decent and honest man, so I can understand his embarrassment, and I will not dwell on it further.

[Toby Perkins]

Will the Minister give way?

[Mr Hayes]

No, I cannot, because of time.

Sixthly, the Government also know that ensuring the flow of credit to viable small businesses is essential and a core priority for the Government. We want to ensure that the financial sector can supply the affordable credit that businesses need, and we would like to see more sources of credit and finance. I accept that banks have a role, but other organisations need to play their part too.

Seventhly, in April, we will launch a new seed enterprise investment scheme to encourage investment in new start-up companies. Eighthly, at the same time, we are launching two new Business Link services with an additional investment of £1.2 million and a new initiative to recruit and train 15,000 volunteer business mentors, which numerous people have welcomed during the debate.

Ninthly, as I am sure you know, Mr Streeter, the Government have placed great emphasis on start-up Britain. This is the year of enterprise. We want everyone to know what is happening in the UK, to promote enterprise and to give young people who wish to set up a business access to diverse sources of finance. We want to support SMEs with improved information and streamline the process by which they and others can get the knowledge and information that they require to set up their business.

Tenthly, the introduction of a national loan guarantee scheme to help businesses raise funds from non-bank sources, the £1 billion finance partnership to invest in medium-sized businesses and SMEs, the continuation of the enterprise finance guarantee scheme, a new export enterprise finance guarantee scheme, the continuation of the Government’s enterprise capital funds programme and, of course, the encouragement of the business angels scheme that we established will give businesses the boost that they need.

What has been repeated in speeches throughout this debate is that we need to change the culture to one that recognises that business has not only a communal role in delivering the growth that we need to prosper but also a vital role in enabling many of our citizens to achieve their potential to be the best they can be and, through that role, to create jobs and growth, seeding recovery in every community in Britain. The problem in Britain is not that none of that exists; far from it. We know from our constituencies and our personal business experience that that spirit exists. The problem is creating circumstances that allow it to thrive.

In those terms, the contrast between this Government and the last is profound. There is no doubt that the last Government were starry-eyed about the glitz and glamour of money, but it is clear that they were blind to the needs of small business and enterprise in particular. I hope that there has been a change, as the hon. Member for Chesterfield said. My hope is that we can understand throughout the House that business is virtuous, because it builds jobs, sustains growth and fuels healthy communities. My business is the promotion of growth, and my mission is the pursuit of the common good. It is clear that in that mission, I have the support of many colleagues in my party and throughout the House who share my enthusiasm for British business and my determination that business will prosper under this Government.

Oral Answers to Questions

John Hayes Excerpts

Monday 16th January 2012 Commons Chamber

[Mr Don Foster (Bath) (LD)]

1. What steps he is taking to promote arts and creative education in schools.

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

The Government believe that children’s education is enriched through their connection with the beauty provided through the arts. To support this mission, we invited Darren Henley, the managing director of Classic FM, to undertake a review of cultural education in schools and he is due to report shortly. As you know, Mr Speaker, in November we published a national plan for music education worth £200 million over three years.

[Mr Foster]

I am sure the whole House is looking forward to the Henley review, but does the Minister acknowledge that the expert panel on the curriculum review is concerned that the role of cultural and creative subjects in a broad and balanced curriculum is in danger of being lost? Given the significant reduction in postgraduate certificate in education art and design places and the lack of any cultural subjects in the English baccalaureate, is it not right to be concerned?

[Mr Hayes]

The right hon. Gentleman will know that the E-bac—the core curriculum that we are developing—is sufficiently small to allow space for all kinds of other activities, including those relating to music, art and culture, as well. Certainly, it is the view of the Secretary of State and the whole Government that enriching a child’s education through their experience of art, music and culture is at the heart of good education.

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

My constituency is one of the hotbeds of creative activity with a very high percentage of artists and creative businesses, and the schools have followed that through. However, I know from recent visits to primary schools such as Brook community primary school, which has excellent enrichment through the arts, that they are worried about future funding and are already having to make cuts in those areas. Will the Minister explain what the Government’s financial policy is to back up the warm words he just uttered?

[Mr Hayes]

I mentioned in my first answer the commitment we have made to music. The important thing about that commitment is that we have been very clear over the long term about what schools can expect to receive, and that will help with financial planning. The new music education hubs will help to bring this together. That recommendation very much arose from the original investigation we did. Art is not the study of positive reality; in Ruskin’s words, it is “seeking for ideal truth”. It is that spirit that imbues all this Government do.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

Plymouth’s excellent college of art is looking at trying to develop and create a free school aimed specifically at bolstering the arts economy and improving participation in the arts. Would my hon. Friend be willing to meet me and fellow representatives from the college of art to discuss how it can ensure that aspiration becomes reality?

[Mr Hayes]

Any meeting with my hon. Friend always adds to my grasp of these matters; of course I will happily meet him. It is clear from his question that he shares our view that having a richer mix of school types will allow the development of precisely the expertise he describes.

[Fiona Mactaggart (Slough) (Lab)]

Britain is a world leader in creative and cultural industries, but at the moment we are seeing in our schools a reduction in music, art and other teaching. Whatever warm words the Minister offers, what is he going to do about it?

[Mr Hayes]

The hon. Lady will know, because she is a diligent student of these matters, that this Government established a council specifically to look at the creative industries. I have met that council to discuss how we can work with it to improve links between the creative industries and schools and colleges. She will also know that we have allocated in my area specific funding with that council to develop new courses, new apprenticeships and new opportunities with creative industries.

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

2. What his policy is on the sale of school playing fields; and if he will make a statement.

--- Later in debate ---

[Mr Peter Bone (Wellingborough) (Con)]

8. What steps his Department is taking to raise awareness in schools of domestic and international human trafficking.

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

Tackling human trafficking is a key priority for the Government. Last October the Department for Education and the Home Office issued updated practical guidance on safeguarding children who may have been trafficked. This will help practitioners, including school staff, identify children who may have been trafficked and find support and advice. Schools may also cover human trafficking within personal, social, health and economic education if they judge that topic to be relevant to their circumstances.

[Mr Bone]

I congratulate the Government on what they have done so far, but there are a number of non-governmental organisations and charities that would like to go into schools to make pupils aware of human trafficking, the evil of modern-day slavery, and particularly internal trafficking within the United Kingdom. Would the Minister welcome such moves?

[Mr Hayes]

My hon. Friend has a noble record on this subject, as co-chairman of the all-party group alongside the hon. Members for Slough (Fiona Mactaggart) and for Liverpool, Riverside (Mrs Ellman), and the former Member, Mr Anthony Steen. My hon. Friend’s suggestion is most welcome. He is right. I wrote in 1998 that there is no doubt that human trafficking is today’s slave trade and that we will not rest until it is dealt with. I will write to charities as my hon. Friend suggests and invite them to do precisely what he proposes.

[Mr Speaker]

I am sure we would all in any case have remembered the precise phrasing of what the Minister of State wrote in 1998, and I cannot imagine why he would suppose otherwise.

[Lisa Nandy (Wigan) (Lab)]

Despite efforts to improve awareness, many trafficked children still wrongly believe that their trafficker is their friend. Given that the Minister has rejected the idea of guardianship for trafficked children, can he tell me who is able to instruct a child’s lawyer in cases where the child is too young, too confused, too traumatised or too afraid to do so themselves?

[Mr Hayes]

The hon. Lady will know that local authorities retain their responsibilities in this regard and, indeed, allocate a responsible person to deal with such children. I am aware of continuing doubts and problems concerning children being re-trafficked. Indeed, my hon. Friend the Member for Wellingborough (Mr Bone)—he was too polite to mention this—wrote to the Secretary of State on this subject only a couple of days ago. We will look closely at bringing what the Department does into line with Home Office and local authority practice. We should not rest until this matter is addressed, and we will not rest until children are freed, victims are protected and those who trade in pain and persecution are made to suffer.

[Mr James Gray (North Wiltshire) (Con)]

9. How many special schools have converted to academies in (a) North Wiltshire constituency, (b) the south-west and (c) England since May 2010.

--- Later in debate ---

[Brandon Lewis (Great Yarmouth) (Con)]

15. What progress his Department has made on work to reduce the administrative burden on teachers.

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

The Government are committed to reducing the administrative burden on schools. We have removed the lengthy self-evaluation form, introduced a streamlined inspection framework, removed unnecessary duties and regulations in the Education Act 2011, and cut the volume of guidance issued to schools by a half. We are reviewing all requirements on schools so that they can focus on raising standards, rather than on unnecessary administrative tasks.

[Brandon Lewis]

Many young people study in FE colleges. Places such as Great Yarmouth college have made great strides forward with clear and decisive leadership. Will my hon. Friend therefore also outline what progress the Government are making in reducing the administrative burden for colleges?

[Mr Hayes]

I am always reluctant to list my achievements in this House, as you know, Mr Speaker, at least more than is necessary to keep the House informed of the scale and scope of the progress we are making. Suffice it to say that from June 2010, when I let colleges move funding between adult learner budgets, through the reduction in duties imposed on schools by the previous Government, up to the Education Act 2011, which gives still greater freedoms, we have sought to treat further education as grown up, after it was infantilised by the previous Government.

[Mr Speaker]

I am grateful for the Minister’s self-denying ordinance, given the imperative that answers be brief.

[Mr Edward Leigh (Gainsborough) (Con)]

The Government are to be congratulated on reducing administrative burdens on teachers. Does my hon. Friend, and actual friend, agree that the way to improve standards in the state sector is for it to replicate what goes on in the independent sector? We should allow head teachers to hire and fire teachers, select their own curriculum, and select and deselect pupils.

[Mr Hayes]

What we seek is a system driven by demand, pupils who are helped to make informed judgments by the information that they are given, businesses driving the skills system, and head teachers and college principals being free to respond to local needs. That is our mantra and it is entirely in line with my hon. Friend’s intentions and ambitions.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

16. What assessment he has made of the effect of the closure of the General Teaching Council on the ability of teachers subject to disciplinary proceedings or sanctions to seek redress.

--- Later in debate ---

[Sajid Javid (Bromsgrove) (Con)]

T9. British banks employs hundreds of thousands of people and many of them are hard-working young people. Does the skills Minister agree that it would be a fantastic achievement to see an apprentice in every branch of every high street bank, and what can he do to help achieve this?

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

There are few greater champions of apprenticeships or learning in this House than my hon. Friend, although I notice my hon. Friend the Member for Gloucester (Richard Graham) sitting next to him, and he is just as worthy a champion. Just this week I will meet banks to discuss exactly what my hon. Friend the Member for Bromsgrove (Sajid Javid) proposes. It is right that apprenticeships are seen as a route into the professions, and we will make them just that.

[Ann Coffey (Stockport) (Lab)]

Stockport council estimates that it is notified of only 60% of looked-after children placed in the borough by other authorities. This is not a problem specific to Stockport and, as the Minister will appreciate, it is very difficult for authorities to plan the provision of resources that will achieve better outcomes for children in care without adequate information. What more can he do to make local authorities meet their obligations?

--- Later in debate ---

[Mr Andrew Turner (Isle of Wight) (Con)]

The Minister is well aware of my support for steps taken to prepare young people for apprenticeships and the world of work, but is he aware that an arbitrary decision about payments due for academic work undertaken in apprentices’ own time towards their qualification might threaten the ability and willingness of small employers, such as Amazon World in my constituency, to take them on?

[Mr Hayes]

I am aware of the specific issue my hon. Friend raises. I understand that the problems arose under the stewardship of a Minister in the previous Government, but none the less there are ongoing repercussions and I am happy to consider the specific matters raised by my hon. Friend. He will know that there are now national minimum standards as there is a national wage for apprentices and it is absolutely right that the deal an apprentice gets should be fair and proper.

[Ian Austin (Dudley North) (Lab)]

A university technical college for Dudley would not only transform the education available in the town but help address the skills shortage and rebalance the economy while encouraging young people to pursue careers in high-tech manufacturing. I am sure that the Secretary of State will be as pleased as I am that a bid has now been submitted for the Aston university technical college in Dudley. Will he take this bid from me today and ensure that it is approved as early as possible so that we can get the changes made that we need in Dudley?

Further Education Skills Funding

John Hayes Excerpts

Thursday 12th January 2012 Written Statements

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

Following publication of the annual skills investment statement for the 2012-13 academic year by the Department of Business, Innovation and Skills on 1 December 2011, the Skills Funding Agency issued 1,030 initial funding allocation statements, announcing recurrent funding allocations to FE colleges and other skills providers in England, on 16 December.

The allocations in question total £2.3 billion, which includes the largest ever allocation of funding to support apprenticeships.

Some providers will be able to access additional funds not included in the initial funding statement. These include initial additional learner support and discretionary learner support allocations, which will be issued on 27 January 2012. Initial 16 to 18 apprenticeships programme allocations and adult safeguarded allocations have also still to be issued.

Final funding statements for all budget lines for 2012-13 will be issued on 30 March 2012.

The Skills Funding Agency and the Young People’s Learning Agency will monitor the impact of funding allocations.

Capital funding allocations for the £100 million two-year FE college capital investment programme, which I announced in August 2011, were confirmed by the Skills Funding Agency on 21 December.

All FE colleges in England were eligible to apply for capital renewal grant funding, which they could spend on urgent capital works, or on the fees associated with developing enhanced renewal grant applications.

A total of 244 FE colleges across England were each successful in securing up to £100,000 in renewal grant funding. In addition, 46 of these were also successful in securing enhanced renewal grant funding of around £1.9 million, taking their total grant funding up to £2 million.

A further 19 colleges met the required quality thresholds but could not be funded on this occasion. I have asked officials of the Skills Funding Agency to continue to work with the colleges concerned to consider how these projects might be helped to proceed.

This latest programme builds upon the Government’s previous FE capital investments, including the £50 million college capital investment programme which provided 154 eligible colleges with a renewal grant of up to £225,000 each. Of these, 21 also secured enhanced renewal grant funding of up to £775,000 taking their total funding to £1 million.

The programme also builds upon the additional £25 million that we made available to 239 eligible FE colleges through the capital works grant.

The grand total of Government’s capital investment through these programmes of £175 million is expected to leverage over £525 million in total project funding.