Social Mobility and the Economy

Justine Greening Excerpts

Wednesday 28th March 2018 Westminster Hall

[Geraint Davies (in the Chair)]

May I say at the outset that there are 11 speakers, so I will impose a time limit? I call Justine Greening to move the motion.

[Justine Greening (Putney) (Con)]

I beg to move,

That this House has considered social mobility and the economy.

Most of our debates in this place are about problems, but today, I want to have a debate about solutions. Improving our poor social mobility is this country’s biggest challenge, and our biggest opportunity. Britain will not truly succeed until it becomes a country where there is equality of opportunity for the first time.

Like other hon. Members present, I did not grow up with advantage or privilege. I grew up in Rotherham, south Yorkshire, where my father and grandfather worked in the steel industry. My father would probably have benefited from the national minimum wage being in place and he spent time unemployed, so I know what it is like to grow up in a family on benefits. I am sure that many young people who are starting out today feel the same as I did: I never wanted to have extra advantages over my peers; I just wanted to have the same opportunities as everyone else—a level playing field.

Most people in our county are not connected. They do not necessarily have someone who they can ask for advice on careers when they need it. They do not have someone to make the right introductions to get them work experience. When they apply for jobs, they do not have anyone who knows x, y or z in that company to put in a good word for them. They do not have the contacts to help them to get work experience in the kinds of companies that they might be interested in working for, so they tend not to get as much experience and do not do as well when they apply for jobs. Because of that, far too much of our nation’s talent goes to waste, which is totally unacceptable and has to change. There is still such a thing as a class ceiling for most people in Britain, and we have to get rid of it.

A year from now, Britain will be on the verge of Brexit. The debate has divided our country, but the time is rapidly approaching when we will need to come together behind some sort of common vision of what kind of country we want Britain to be post-Brexit. That common vision should be of finally creating a Britain that has equality of opportunity for the first time. Brexit must be a moment for change when we smash that class ceiling on opportunity once and for all. In a knowledge-based, global economy, it has never been more important to use all our nation’s talent to the max.

I will focus on social mobility and the economy, and the huge role that businesses can play in driving the economic benefits of social mobility. The social mobility dividend for our economy and our people is significant.

In July, the Sutton Trust published its modelling of the link between stronger social mobility and productivity. The research looked specifically at European countries and found that, if the UK simply improved its performance on social mobility to match the western European average, the benefit to our economy would be an improved annual GDP of between 2.1% and 9%. That is an annual benefit to our economy of between £39 billion to £179 billion, which is the equivalent of each household being £590 to £2,620 better off. We talk about minimising tariffs and barriers to have strong trade, but talent is no different. We know the benefits of free trade, and a free market in talent is just as, or perhaps even more, important.

Education has a huge role to play. The social mobility action plan that I launched before Christmas sets out a clear agenda for the Department for Education to strongly tilt its strategy to lift up the educational prospects of children being left behind. Business has a key role to play too.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I congratulate the right hon. Lady on securing the debate. On educational underachievement, does she agree that, in many working class communities, getting beyond that barrier to achieve is about getting beyond looking at school as a dredge or as something that minimises capability? We have to try to promote that, to ensure that people break the class ceiling, as she puts it.

[Justine Greening]

I absolutely agree with the hon. Gentleman. There are three elements to that. First, it is great that the educational attainment gap is steadily closing, but it needs to happen faster. Secondly, businesses can play a role in lifting the aspirations of young people while they are in our education systems, starting from the earliest age in primary school, which is part of what the social mobility pledge asks companies to come forward and do. Thirdly, we must ensure that businesses continue to nurture and develop young people’s talent once they enter the world of work, and that they have a level playing field when they seek to progress their career after leaving the education system.

[Peter Kyle (Hove) (Lab)]

This is an important debate and having a former Secretary of State for Education here is a real treat for us. At the moment, the Government fund young people who go to university to the tune of about £10,500. For people who go to a further education college, the funding is about half that. For young people who get an apprenticeship, it is about £1,500 on average. For people who fall off the cliff altogether, there is very little money and it is a confused landscape, unless they end up in the criminal justice system, in which case we spend a fortune on them. Does the right hon. Lady believe that it is time the money followed the young person rather than the institution?

[Justine Greening]

The hon. Gentleman makes a powerful point. The T-levels reform will help to ensure that the route a young person follows, whether they are interested in a more academic route and university, or want a more vocational, technical route, will be every bit as high quality as any other. Towards the end of my comments, I will briefly talk about how Government reform could enable that to happen more easily.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

My right hon. Friend makes a powerful case for social mobility. It is important to record that we still have big issues with the attainment gap in Scotland, where children from the most deprived households are much less likely to go to university compared with those in England. Social mobility needs to be spread across the whole United Kingdom. The benefits of people being mobile need to spread to every part of the kingdom, not just those living in London and the south-east.

[Justine Greening]

I could not agree with my hon. Friend more. We face a simple but powerful problem: talent is spread evenly across the country, but opportunity is not. We need to ensure that we nurture that talent. I share his concern that educational attainment in Scotland looks like it is slipping backwards relative to the rest of the UK.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

In response to the point made by the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont), it is important to point out that the UCAS website says that

“in Scotland, around one third of admissions are not processed through UCAS, so this provides only part of the picture of entry to higher education”.

That should be placed on the record and hon. Members should keep it in mind. It is important not to do down Scottish education, because there are many positive things about it. A higher percentage of our students who attend university have been to further education courses first, which is not picked up by the UCAS stats either.

[Justine Greening]

A lot of hon. Members, particularly Conservative Members, would dispute those facts.

I recognise that there is an important debate to be had on higher education, but I want to focus my comments on business and the economy because business has a key role to play in improving social mobility in our country. Today, I am asking businesses large and small to commit to a universal social mobility pledge.

I hugely thank David Harrison and the Harrison Centre for Social Mobility for crucially supporting the work to enable us to launch the pledge today. The social mobility pledge is about three things: partnership between schools and businesses; businesses offering access to work experience or apprenticeships; and businesses having recruitment practices that are transparent and open, to promote a level playing field for talent.

First, partnering with schools is something that every single company, big or small, can do. It does not have to be hard. Some outstanding organisations are already providing a platform for action, and the resources needed for companies and businesses to make a start: Speakers for Schools; Inspiring the Future; the Careers and Enterprise Company; and the Prince’s Trust, which is setting up the e-mentor scheme, to name just a few. A lot of these organisations want to do more working through business, and they also want to do that in locations outside London and the south-east, where young people often have fewer opportunities. However, we need the fantastic employers in those areas to come forward to help make that happen.

Some great organisations are doing amazing work on access to work experience and apprenticeships, such as the Social Mobility Business Partnership, which can help. I also say a massive “thank you” to Barry Matthews, who set up the SMBP, for his help in working with me recently to help put together the social mobility pledge, so that companies large and small can get behind it. The Social Mobility Foundation does a huge amount of great work. Alongside that is the Sutton Trust, which I mentioned earlier and which has pioneered so many of the great initiatives that we have learned from and that companies can get involved in.

All companies can make a decision to open their doors and let young people who might not have any idea about that organisation come in and spend time learning about it, shadowing people and working on projects that give them a sense of what working in those careers is like.

[Sarah Champion (Rotherham) (Lab)]

This is a fantastic speech and I thank the right hon. Lady for sharing her experience and ideas. In Rotherham, which she knows well, employers are looking to open their doors, but we also need teachers and parents to give the young people a shove to go over the threshold.

[Justine Greening]

The hon. Lady is right—this must be a two-way street. I put the call out to teachers to have the confidence to work with businesses that want to come and help raise aspirations for their young people, just as teachers themselves do. Inspiring the Future works successfully with thousands of schools—primary and secondary—around our country. We know such activity can work and we know how it benefits those children. Today, I am seeking to expand the opportunities for children who currently do not have enough of them.

[Helen Whately (Faversham and Mid Kent) (Con)]

Businesses such as South East Coachworks, Macknade and BMM Weston in my constituency make huge efforts to give kids work experience and opportunities, as do schools such as the Abbey School. However, the children still tell me that they want more work experience, and to know more about career opportunities and what work will be like. I fully support my right hon. Friend’s initiative to make it easier for businesses and schools to work together and give children the opportunities that can help them to get ahead in life.

[Justine Greening]

I am grateful for that intervention because it gives me the chance to point out that a recent study up in the north-east showed that 83% of young people felt that having work experience should be a compulsory part of the school curriculum. The challenge that they and we face is that there are not enough opportunities for them to do that—it does not matter whether they are growing up in Kent or in Newcastle. Businesses alone can help us to close that gap between the work experience that young people know they need and want, and the opportunities for them to do that while they are going through school.

The final piece of the pledge is about open recruitment practices. Changes such as introducing name-blind recruitment or contextual recruitment can help to promote a level playing field for candidates. In name-blind recruitment, the candidate’s name is replaced by a number and their CV is then assessed as normal. Employers can have unconscious bias in respect of black and minority ethnic candidates, and name bias based on gender and traditional working-class names, so name-blind approaches work. That is why Clifford Chance, a major law company, uses name-blind recruitment—in fact, it is one of the founding companies signed up to the pledge.

Contextual recruitment, which was referred to in the Social Mobility Commission’s annual report in 2016, takes into account the situation in which the academic and personal success of a candidate have been achieved, and how their performance compares with that of their peers from similar backgrounds who have had similar opportunities. It is already used by companies such as Deloitte, and by some of the magic circle law firms such as Linklaters. The research shows that disadvantaged applicants were 50% more likely to be hired using contextual recruitment than they otherwise would have been.

Finally, I am especially grateful for the support of the CBI, the Federation of Small Businesses, the British Chambers of Commerce, and the many businesses that have signed up to the pledge, including companies such as BT, ITV, Adidas, Severn Trent, Viacom, KPMG, Aviva and PwC, to name just a few. The British Chambers of Commerce is encouraging all 75,000 of its members to sign up to the pledge, which is fantastic. Achieving that would be transformational. Similarly, the Federation of Small Businesses is behind the pledge and is encouraging its 170,000 members to commit to it.

[Colin Clark (Gordon) (Con)]

What my right hon. Friend is saying is very powerful. In the north-east of Scotland, we are obviously dominated by the oil and gas industry, but there are skills shortages—they are not necessarily among graduates but among those from a technical college or technical college background. I do not want to overly politicise this debate, but we have to ensure we get the balance right. In my constituency, Aker Solutions and Wood Group—two huge employers—are concerned about getting enough technical and engineering staff. Are we getting the balance of academia—technical colleges and universities—and apprenticeships right?

[Justine Greening]

The short answer is that we do not know, because to date young people have not really had the choices that they want and deserve when they want to follow a technical education route. If our technical education reforms open up that form of education as an opportunity for young people, it would not only be a win for them—young people should not have to stop their education just because they do not want to follow an academic route—but a huge win for British business, which is crying out for the skills these young people want to learn. In launching the pledge today, I seek to knit together those aligned incentives and hopes, so that we can start to unlock opportunity for both young people and businesses.

I will briefly draw my comments to a close. As I have said, with this level of support from companies large and small, I believe that we can work together to have a huge impact. I would also like Members of Parliament from both sides of the House to work collectively to make a difference in our local communities. That is what I will do. I will ask my local companies to commit to the social mobility pledge, and will sign up to the pledge as an employer. We should seek to work on a cross-party basis to galvanise British business, because we know that, when Parliament speaks with one voice, business listens.

I also hope the Government support the social mobility pledge and align cross-departmental policy to help us to go further and faster on social mobility. For example, we could look at how the apprenticeship levy can evolve, whether extending into supporting work experience or focusing on geographic areas that need more investment in training, such as opportunity areas. We can look at the development of degree apprenticeships, which are hugely popular but are in the early days of making the impact that they can make.

In the spring statement two weeks ago, the Chancellor rightly set out how he is asking the Office for National Statistics to assess how we can better value our human capital. That is crucial, because if things are not valued properly, they are not invested in properly. I hope the Treasury can reform even more to shift its decision making to more overtly invest in a socially mobile Britain. That is not just about smarter valuing of our investment in people, but better measurement of our national progress on social mobility and opportunity. That means having a longer timeframe for investments and budgeting, so that when we invest in children and young people, we see the value that it creates over a lifetime and not just over the next five years. Realistically, five years gives little chance for this sort of investment to be demonstrably realised.

In conclusion, it might feel like a huge ask to change the country forever and deliver on social mobility, which we have never been able to do, but it is about a collective effort. It is about lots of people doing lots of things. I am not asking all of us to do everything. I just need us each to make a change in our local communities, whether as MPs, businesses or individuals. It is a start if Putney businesses improve Putney, and if Rotherham businesses improve Rotherham. If the Government back that up with smart policy at a national level, things can change. Tackling social mobility is complex. It is like a million-piece jigsaw puzzle, but people need to do their piece. If we all do that, the picture gets completed. We need to do that to get more opportunities for more young people, so that we have equality of opportunity. I hope the social mobility pledge can be a step along the road to delivering just that.

[Several hon. Members rose—]

--- Later in debate ---

[Justine Greening]

I simply want to finish the debate by thanking all hon. Members who have taken the time to contribute. For me, social mobility is something that we have never had in this country; it is not about this Government or the one before. It is a structural deficit on opportunity that has persisted for decades and we need to recognise that. The sooner we realise that we need to raise our sights and work cross-party on this, while reserving the right to have a debate on resourcing and policy, the better, because one of the reasons things do not change is that there is not enough longevity to our approach.

I hope that over the coming months and years, we can really improve the evidence base on this issue, because the more that can inform our policy, the more successful we will be.

Motion lapsed (Standing Order No. 10(6).