Education Funding for 18-year-olds

Julian Huppert Excerpts

Tuesday 28th January 2014 Westminster Hall

[Kate Green]

The hon. Lady is right. The issue of the uneven playing field in relation to VAT charging was raised in this Chamber shortly before Christmas by my hon. Friend the Member for Wigan (Lisa Nandy), and many other hon. Members have repeatedly brought the matter to the Government’s attention.

Ministers have argued that the cut announced just before Christmas is justifiable because they want to focus spending on 16 and 17-year-olds, and because 18-year-old students would already have received two years of post-16 full-time study. Perhaps Ministers believe that the affected students are undertaking a repeat year of study in order to resit their A-levels and upgrade their results, but that is not the case at all. As has been pointed out by the Association of Colleges, the 157 Group and others, the students most affected are most likely to be those on vocational courses.

Those students may have achieved good GCSE results at school but may have had no opportunity to undertake vocational study at key stage 4. If they wish to pursue a technical route, they cannot begin level 2 vocational studies until they enter college post-16. Colleges report a reluctance among, and lack of incentive for, schools to co-operate with them to provide early vocational training to students aged 14 and 15, and it seems particularly unfair that such students should be penalised.

However, it is perhaps even more concerning that many of the students who will be affected are likely to be those whose school experience was the least successful. For such students, full-time study undertaken at college offers a vital second chance. These are the students who may have found the school environment difficult, but who flourish in a college setting. They may have had their education disrupted by health problems or difficult family circumstances. Some will have started out their studies in a school sixth form but will have left after the first year, having failed to attain good AS grades —often as a result of the poor information, advice and career guidance offered in the school.

[Dr Julian Huppert (Cambridge) (LD)]

I thank the hon. Lady for giving way and for securing this very important debate. Does she agree that there is also an issue with the number of schools not providing information about the existence of FE colleges and sixth-form colleges? There needs to be a much better link, with schools encouraging people to look at apprenticeships and other opportunities.

[Kate Green]

I very much support what the hon. Gentleman says. This is a matter of the incentives and funding arrangements, and it is about having a level playing field for all educational institutions, something that I know other hon. Members will wish to allude to in the debate.

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[Dr Julian Huppert (Cambridge) (LD)]

It is a pleasure to serve under your chairmanship in this excellent debate, Mr Williams. I warmly congratulate the hon. Member for Stretford and Urmston (Kate Green) on securing it. There is clearly passion about the issue throughout the House.

The further education and sixth-form sector has been neglected and under-supported for many decades. It has not had the rightful support that it needs, which is a great shame, because it does extremely well with the resources that it has. We have heard that education for 16 to 18-year-olds gets about 22% less funding than for pupils up to 16, which seems problematic. We in Cambridge are hit particularly hard, because our county gets the lowest funding in the country for all schools, followed by poor funding afterwards. That is a separate issue and not for the Minister, but I hope the Government will correct the long-standing anomaly that pupils in Cambridgeshire get £600 less each per year than the English average. That does not seem fair to me.

My constituency is served by three excellent institutions, all of them for some reason right on the boundary; some are just inside, some just outside. They are Long Road sixth-form college, Hills Road sixth-form college and Cambridge Regional college, and they do extremely well. Hills Road sixth-form college has a national reputation for leading the way in the sector. If one looks at entry into Oxbridge, which I do not think is the only way to measure success, its performance is right up there; it gets more pupils in than anywhere other than Eton and Westminster, and it is a state-funded sixth-form college. That is what we should be aspiring to in state-sector education throughout the country.

However, the Government changes, of which the measure we are discussing is one, will make it hard for those colleges to provide the four A-levels that they have often provided and that are often provided in the private sector. They are worried about whether the example that they have set for so many years will continue, or whether that excellent exemplar of what the state can provide will be lost. They have huge problems.

[Bill Wiggin (North Herefordshire) (Con)]

Hereford sixth-form college is another outstanding performer. Does the hon. Gentleman agree that the Government could—it would be much appreciated by everybody if they could—consider how much VAT such schools can reclaim?

[Dr Huppert]

The hon. Gentleman is right. I was going to say that next. I have debated this matter in the House, as have many other hon. Members. One big problem is that the general education sector does not have to pay VAT, but the sixth-form sector does. If equal money is given at the beginning but one sector has to pay VAT and the others do not, that is a huge problem. A sixth-form college’s VAT load is typically £300,000. If the Minister could fix the problem with the Treasury, that would be solved. Cambridge Regional college pays £1 million in VAT. That is a huge difference and there should be a much easier way to solve the problem.

[Caroline Lucas]

Does the hon. Gentleman agree that it adds insult to injury that because the Office for National Statistics classifies free schools and academies as public, they have a much more favourable VAT situation than sixth-form colleges, which have, because of an anomaly, been beset with this problem? That ought to be sorted out now.

[Dr Huppert]

I agree. It is perverse to say that a free school or academy is more public than a sixth-form college or a regional college; it simply does not make sense and must be changed.

Long Road sixth-form college has its own problems. It has one of the lowest levels of funding of any sixth-form college; it has £480 per pupil per year less than the average. If it got average funding it would have an extra £940,000 and there would not be such a problem. It does not get protection, because it was not one of the high-funded sixth-form colleges, and it gets hit by another £70,000 or so, and pupils will miss out as a result. It was also hit years ago, because the Learning and Skills Council told it to put together a bid for new buildings that it desperately needed, but the calculations were done wrong and there was no money available, and it is stuck with poor buildings. Yet despite that it is in the top 10% of value added in the entire sector.

All three institutions do well and they would be delighted if the Minister visited—it is not a long distance—to look at what they are doing and at the problems they face. They do a great job, but this is the straw that can break the camel’s back, because it is not something that they can do much about.

Long Road sixth-form college does not have a way of changing its curriculum offer to students who are already enrolled in level 2 courses at the moment; it will not have the opportunity to take on a new system. It would be completely wrong to say, at the end of somebody’s level 2 year, “Sorry, you can’t do the course you signed up for. You can only do a 12-unit applied qualification: two A-levels rather than three.” That simply cannot be done; that would not be reasonable.

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

On that point, will my hon. Friend give way?

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[Dr Huppert]

No, I am afraid I will not. I have given way twice already.

The speed of the proposal is a problem. It is not helpful, either, because the non-qualification elements that the Government talk about are things that we should want to see and should not want to take away—employability skills, work experience, skill building and personal and social development. An investment now will save a huge amount of money over the lifetime of those pupils. Let us not cut the support there.

These institutions do a phenomenal job. Cambridge Regional college has responded actively to the Government’s drive for apprentices; it has just had its 10,000th apprentice and 4,000 are studying now. That is a huge increase. Such institutions throughout the country do their best to deliver education and social mobility on a fairly limited budget. Let us not have these small but incredibly damaging cuts—and they should certainly not be announced so late. I urge the Minister to listen to what all hon. Members have said and to think again.