Technical and Further Education Bill

Kelvin Hopkins Excerpts

Money resolution: House of Commons & 2nd reading: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 14th November 2016 Commons Chamber

[The Secretary of State for Education (Justine Greening)]

I beg to move, That the Bill be now read a Second time.

The background to the Bill is that the Government have worked tirelessly over the past six years to embed our school reforms so that we can raise standards and ensure that an excellent academic route is open to all students. That work continues. Thanks in no small part to the hard work of the teaching profession, over 1.4 million more children are now being taught in schools rated as good or outstanding compared with 2010. This is vital if we are to be a country in which everyone not only has a level playing field for opportunity, but has their potential unlocked and can thereby do their best. This transformational progress has been great news, particularly for those young people who choose to build on their time at school by pursuing an academic route through Britain’s world-class universities on their way to joining the workforce and making a contribution to the economy. The truth is, however, that half—last year, most—of our young people, often those from disadvantaged backgrounds will choose not to go to university, but to follow a less purely academic route, or perhaps one that plays to their individual strengths, talents and interests.

[Kelvin Hopkins (Luton North) (Lab)]

The Secretary of State will know that we are failing nationally to train enough graduate engineers to serve our own needs. One reason is the teaching of mathematics and the failure of young people to acquire skills in that subject. A lot of effort has been put into improving the quality of mathematics teaching in schools. Are we now starting to see the fruits of that extra effort?

[Justine Greening]

I believe that we are. Not only have we seen investment in more effective mathematics teaching—through some of the Mathematics Mastery work, for example—but we have tried to widen participation by making sure that girls do maths and science courses, thereby better balancing our engineering careers between men and women. Alongside that—this is why the Bill matters so much—we must recognise routes into such professions that are not purely academic which, for many of our young people, will take the form of technical education.

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[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

It is a great pleasure to follow the hon. Member for North Swindon (Justin Tomlinson).

I do not see many exciting opportunities arising from the UK’s decision to exit the European Union, but if we are feeling optimistic, as I always try to be, a rebalancing of educational provision and opportunity is one of the elements that we need to look to as we think about a new political economy for the United Kingdom, and part of that has to be a more effective technical and vocational education system.

In his great work “Our Kids”, which I urge the Secretary of State to read if she has not already done so, Robert Putnam charts the decline of social mobility in rust belt America, hinting at what has happened in recent days. He is clear that if people are interested in tackling inequality and promoting social mobility, the two areas to focus on in respect of Government provision are high-quality early years support and an excellent system of technical and vocational education. Those are the two elements that really make a difference in terms of inequality.

[Kelvin Hopkins]

My hon. Friend mentioned Brexit. Since the referendum, the pound has depreciated to a much more sensible level, such that manufacturing is starting to grow. Does he agree that it is vital that as manufacturing returns to its previous strength, as we hope it will, we have a good technical education system so that we can provide industry with all the skills it needs?

[Tristram Hunt]

I knew I would not get away with my Brexit comment with my hon. Friend sitting there. Yes, we need to provide the human capital to revive our manufacturing industry and to make sure that we succeed, but in the modern era of manufacturing, with components coming from across the single market, we are going to take a hit on inflationary pressure in relation to some of the manufacturing competitors—

[Kelvin Hopkins]

rose—

[Tristram Hunt]

But we are not going to go down that road too quickly.

I welcome large parts of the Bill. It is good to see the focus on technical and vocational qualifications. I pay tribute to the work of Lord Sainsbury, and in so doing alert the House to what is in the Register of Members’ Financial Interests. He has been a passionate supporter of technical and vocational education, and his time as science Minister taught him that one of the blocks for achieving excellence in British science was making sure that we have not just top-flight research chemists, physicists and biologists, but high-quality technicians in our science-based industries. We are not producing those level 4 or 5 qualified technicians who are fundamental to the success of the science base.

As my hon. Friend the Member for Wolverhampton South West (Rob Marris) pointed out, productivity and economic growth demand that we invest more effectively in technical and vocational education. We should also see it as an opportunity. The Edge Foundation has shown time and again that we are going to see a huge growth in jobs in science, engineering and technology, and we need to provide the professionals to fulfil those opportunities. Much of our education system works against that. Whether we think of Progress 8, EBacc or the Ofsted inspection requirements, we have on the one hand a demand for an education system almost on the model that the British set up in Germany to provide our technical and vocational system, and on the other hand every element of incentive in our education system working strongly against that.

I am excited by the addition of the technical component to the Institute for Apprenticeships. I urge the apprenticeships Minister to visit the institutes of technical education in Singapore, which are doing a phenomenal amount on cutting-edge technical and vocational education, as that economy, too, begins to think about the kind of provision it needs to fill the skills gap and about the very demanding requirements on the sector.

My reservations are as follows. First, having the divide at 16 is a missed opportunity. My passion in the next few years will be to see whether we can create a consensus in this House on committing ourselves to ending GCSEs by 2025 and to getting rid of a school leaving qualification for people who do not leave school. We should strip out an examination that is an anomaly across Europe and America and that is not providing our education system with the academic or technical, vocational learning it requires. I urge the House to think much more creatively and imaginatively about having a 14-to-19 framework that includes an academic baccalaureate and a technical baccalaureate. That would get over some of the criticisms levelled at the Bill about having too narrow a focus on educational provision from 16 to 19. A broadly constituted baccalaureate between 14 and 19 would work, so I urge the Secretary of State to think big and to set up some kind of bipartisan thinking about how we—in exactly the same way that countries such as Singapore and Finland manage their education systems—can reach a national consensus in a decade that the GCSE model, having served its time, is no longer necessary. The introduction of differing pathways at 16 in the Bill is interesting, but I urge us to think now about how we put that upstream and have some of those differing pathways from 14 to 19.

Secondly, following on from my comments to my hon. Friend the Member for Bristol South (Karin Smyth), careers guidance is so important in this. When we think about accessing UTCs or further education colleges, having decent and effective careers guidance is really significant. The last Secretary of State had a clever plan —a sort of careers guidance and business thing—that was going to work. I do not know what has happened to it, or whether it is coming under review by the new Secretary of State, and I more than accept that there was no great golden age of careers guidance, but if we want technical and vocational education to work, we must have effective careers guidance. We have to make sure that parents and young people not only have the career immersion in primary school, but have effective careers guidance early on in secondary. That is the way they can access FE and UTC provision.

Thirdly, the Secretary of State valiantly defended retakes for English and maths GCSEs. I want English and maths to continue in education until 18, but—I see this in my constituency, and I think colleagues see it in theirs—young people are retaking and retaking GCSEs on a highly academic syllabus, which the right hon. Member for Surrey Heath (Michael Gove) introduced. We can debate its merits, but it is really not useful or effective in terms of young people’s career pathways. What these young people need is a good level 2 post-16 qualification that gives them the English and maths skills they need, but does not give them an academic syllabus that they do not necessarily require. I am all for people pursuing the academic pathway, just as much as the technical, vocational pathway, but if we are forcing them to do that at great expense, and causing them to be frustrated about their learning, that is one element of the previous Secretary of State’s system that the current Secretary of State might want to think about.

When it comes to technical and vocational education, we create a lot of institutions: UTCs, FE institutions and career colleges. As I understand it, UTCs were not part of the FE review, so we have divided up the review of further education colleges without taking account of UTC provision, even though there is a lot of crossover between UTCs and further education colleges. In Sheffield, for example, the further education college sponsors the UTC. If the Secretary of State is looking for savings, overprovision and institution-building are prevalent in the English education system, and a bit of co-ordination among those institutions would be a good idea.

That leads me to my final point, which is that the best way to achieve that aim is to devolve educational provision. We are beginning to devolve skills policy to combined authorities and directly elected mayors, but we need to think much more creatively about devolving schools policy to directly elected mayors and combined authorities. The needs of the Cornish economy are different from the needs of the Birmingham economy, which are different from the needs of the Northumbria economy. If we devolve some of the authority to a local level, we will end up with a more effective technical and vocational education system.

I admire some of the principles in the Bill, and I admire the direction of travel, as we now say. I urge the Secretary of State, as she begins to think big, to push this upstream and think about the 14-to-19 technical and vocational pathways.

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[Peter Kyle (Hove) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Scunthorpe (Nic Dakin), who shared with us his professional experience of guiding many young people towards the paths that they need to take. It is a shame that we have not given greater priority to further education in the past, because the skills challenge that we face remains acute, as it has been for a very long time. My hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), the shadow Minister, shared with us her own rocky path from secondary education to a career and secure work. A number of people find it a difficult path. That is the challenge that the Bill seeks to meet, and many of us are supportive in respect of both the path and the challenge.

I left my school in Bognor Regis—ironically, the constituency of the Minister for School Standards—with almost no usable qualifications. I had to return to secondary school at the age of 25 to obtain the qualifications that I needed in order to return to the education system. I know from first-hand experience that for many young people, the door to education is slammed shut and needs to be broken down. We all tend to assume that the doors to education, and indeed to all our public services, are open all the time. I am very keen to remind Labour Members, as well as others, that doors are often shut and that it is our job to break them open, rather than expecting individuals to remove the barriers to getting the best out of our public services the first time round without waiting for the second.

[Kelvin Hopkins]

My hon. Friend is making a strong point. Some years ago, funding for adult education at sixth-form colleges was taken away. Excellent teachers and wonderful facilities are no longer used in the evenings, which used to enable adults to go back and take A-levels, for example, and possibly go to university after that. The door was shut very firmly some years ago, and it should be reopened.

[Peter Kyle]

My hon. Friend makes a good point.

This door being slammed shut, often in the faces of young people who do not have the skills to break it down or a background that encourages them to break it down, is one of the reasons why we have ended up with a society where those who are asset-rich will succeed in life and those who are talent-rich but asset-poor will very often not succeed. That is why it is incredibly important that we get this Bill right. It is of paramount importance for the Government’s plans for technical education, apprenticeships and the apprenticeship levy, which is now only a matter of months away from being launched.

It has long been my view that the levy as currently formatted is too rigid to fully take into account the skills challenges facing our country. When taking evidence on the issue of skills as a member of the Select Committee on Business, Innovation and Skills and as chair of the all-party group on further education and lifelong learning, it became clear that some sectors will struggle with the way the levy is currently formulated. The technology sector, for example, needs to invest very early, right back to the early years. I have visited many technology companies that are investing in nursery and primary education, and in secondary education. It is a sector that needs programming skills, and it needs imagination, flair and creativity in the way that people develop those skills. Often in such sectors post-16 is just too late. I support the apprenticeship levy, but we need to get it right, and if we are not careful we will end up with a perverse incentive in the system whereby technology companies are forced to invest in post-16 education, and in order to pay for it they will be withdrawing their support for pre-16 education, which would be a tragedy for our economy, particularly in the post-Brexit era when we might find that such companies struggle to secure investment and recruits from abroad with the right skills. We are entering tricky territory and we need to get this right first time. On mention of the word “Brexit”, I am very pleased to see my hon. Friend the Member for Luton North (Kelvin Hopkins) is still in his place.

It also concerns me that existing spending on employer-sponsored degrees or graduate schemes will not be recognised by the levy. That risks closing those routes in favour of what could be entry-level apprenticeships in order for companies to get back what they pay for the levy. The Bill creates an institute for apprenticeships that also covers technical education. I want to see that institute play a strong role in ensuring that standards remain high in apprenticeships and technical education. I still have real concerns that the levy, along with the Government’s pledge to have 3 million apprenticeship starts—starts, not completions, I note—risks incentivising a dash for quantity rather than quality.

I listened with great interest to the hon. Member for North Swindon (Justin Tomlinson), who made a fantastic contribution about the role of apprenticeships in providing productive pathways into the workforce for people with disabilities. At a recent surgery I was visited by the mother of a young woman who is trying to apply for an apprenticeship. She has a very specific disability that has always prevented her from succeeding in maths. It is an extremely difficult disability for her to live with, but all through the education system she has been provided with specialist support and allowances that have enabled her to succeed. However, she cannot apply for any apprenticeships because she does not have the maths qualification. She is applying for a dog grooming apprenticeship. It seems absurd to me that she is prevented from taking this incredible pathway into work because of her disability. I have raised this with Ministers in writing, and I hope that in his winding-up speech the Minister will show a willingness to inject a little common sense for those few people who struggle with the current system. Although this has an impact on very few people, it is a profound impact.

I have pressed the previous Secretary of State and the previous Minister for Skills on these matters. I should like to join other Members in wishing the hon. Member for Grantham and Stamford (Nick Boles) well. He stood as a parliamentary candidate in Hove in the 2005 general election, in which I played a key role in the winning candidate’s campaign. I got to know the hon. Member well at the time, and I say with all sincerity that I and all those who worked on the campaign wish him a very speedy recovery.

I pressed him and the then Secretary of State to introduce a target for the number of apprenticeship starts at level 3 and above, because that is where the training will really address our skills needs. It is nice to know that someone has been reading all the parliamentary questions that I have been submitting on this subject, because the Policy Exchange’s report on apprenticeships, which was released on Friday, calls on the Government to do just that. I hope that the present Minister will take heed of that report. I would support him in embedding targets for quality as well as quantity in the Government’s plans.

I have also pressed the Government to set a target for apprenticeship completions, which I am sure we all agree is the key figure. There is no point in getting 3 million people to start apprenticeships if a significant number of them simply drop out. The Minister has not previously shown any interest in setting a target for completions, but I noted that the Secretary of State was more conciliatory on this point when responding to an intervention today. I hope that means that the door is still open and that such a target will now be considered.

The Institute for Public Policy Research report calls for an assurance that the Institute for Apprenticeships and Technical Education will have the necessary resources and power properly to enforce quality standards. I totally agree with that. Only last week, I asked the Minister for details of the staffing levels for the institute. I hope that we will get clear answers to these questions during the passage of the Bill. Given the imminent closure of the UK Commission for Employment and Skills, which did a great deal of work with employers to utilise labour market information to map out skills gaps and sectoral needs, it is vital that the institute is able to fill that void. If it cannot, we will be much worse off.

The Bill also introduces a new insolvency regime for FE colleges, with the aim of protecting students if such an institution should become insolvent. The Government say that this follows on from the area reviews, which aimed to ensure that all FE colleges within a certain area were on a solid financial footing. In Brighton and Hove, we are lucky to have three excellent colleges: BHASVIC, City College and Varndean College. Our area review, covering Sussex, started last year, but despite an expectation that the final report would be published some months ago, it still has not seen the light of day. I hope the Minister can offer some reassurance to me and my neighbouring MPs, as well as those in other areas who are waiting for their reviews to be published, that they will be released shortly. Providers and students are anxious to know what the future holds for the institutions in which they work and study. In the Budget in March, which feels like a very long time ago, the Government pledged to

“review the gaps in support for lifetime learning, including for flexible and part-time study.”

Will the Minister update us on that, too. When can we expect the results of that study?

I welcome the Bill as a chance to focus on technical and further education, which often feels neglected in the overall educational landscape in this place and beyond. However, the Bill and the Government’s policy priorities leave a lot of questions unanswered, and I hope that the Bill’s passage through Parliament will give us a chance to remedy that.

[Kelvin Hopkins (Luton North) (Lab)]

It is a great pleasure to speak in the debate and to follow my hon. Friend the Member for Hove (Peter Kyle). He is currently the chair of the all-party parliamentary group on further education and lifelong learning—a job that I had many years ago. I have had a long association with the further education and post-16 sector. I taught in further education more than 40 years ago, and while I was teaching a basic statistics course I discovered that one of the major problems with education in Britain is the poor level of mathematics teaching. The students I taught had difficulty with basic computation, multiplication and division. I found that quite shocking at the time, but the problem has continued.

Some 20 years ago, the great Lord Claus Moser produced a report on numeracy and literacy, finding that more than 50% of the population was functionally innumerate. He illustrated that point by saying that 50% of the population did not understand what 50% meant, which is quite surprising—if not shocking. More recently, I asked the former Secretary of State, the right hon. Member for Surrey Heath (Michael Gove), why we were having to recruit so many qualified engineers from abroad and he said that it was because our mathematics is not good enough to produce sufficient engineers. There is a serious problem.

[Rob Marris]

Does my hon. Friend agree that part of the problem with mathematics is down to English culture? It is still acceptable for people to say words to the effect of, “Ooh, I don’t do maths,” without that being seen by their interlocutors as an admission of abject failure. It is just seen as a bit of a joke. It is a cultural problem. This is about not only the education system, but our culture, particularly in England. It is appalling.

[Kelvin Hopkins]

I agree with my hon. Friend, but it is changing and I am optimistic about that. People such as me who are good at maths are regarded as being a bit of a geek, but what is wrong with being good at maths? In the country of Isaac Newton, Isambard Kingdom Brunel and Alan Turing, why should we be ashamed of being good at maths? That is being addressed, but we are still having to recruit thousands of engineers from abroad because people cannot do the maths to become engineers through our education system.

As I said, I taught in further education 40 years ago, but I also spent four years as chair of governors at the then Luton College of Higher Education when we were producing hundreds of qualified engineers doing ONCs, HNCs and then AMIMechEs and so on. They were good engineers and they could do the maths. It may just be that we have declined in some areas because the manufacturing demand is not as great as it was. We are now trying to pick up the manufacturing sector again and we are realising that we have missed out on maths.

I am happy to say that Luton College of Higher Education went on to become the University of Luton and then the University of Bedfordshire. The vice-chancellor is now Bill Rammell, a former colleague in Parliament, and its chancellor is Mr Speaker—the greatest honour of all—and I am absolutely delighted about that. I have also been a governor of the superb Luton Sixth Form College for 25 years. It does brilliant work and gets better and better every year.

Barnfield College is also in my constituency. A dozen or so years ago, it was the first ever general FE college to be given beacon status, but it went into serious decline and wound up almost collapsing into a state of failure a year or two back. It has now been picked up by its great new principal Tim Eyton-Jones and I am sure that it will be revived, but it needs Government support. It should never have been allowed to get into that situation. The neglect of colleges was criminal. Barnfield is now on the up and will be great again, but it needs the active support of Government, particularly in finance.

In Parliament, I was for some years chair of the all-party parliamentary group on further education and lifelong learning—lifelong learning is also important—but I am now chair of the all-party parliamentary group on sixth form colleges and am pleased about that. Colleges in general, FE colleges in particular, have been neglected over decades. Colleges represent an abused sector of education, and one reason for that is that so many people in the political sphere have no connection with further education. They go to posh schools—grammar schools, public schools, whatever—and then to university. Indeed, some become special advisers—a former Spad is in our midst now—and then go into politics never having touched further education or understood what it is about.

[Rob Marris]

Does my hon. Friend recall the reorganisation of Government Departments in about 2007—sadly under a Labour Government—when the Department for Innovation, Universities and Skills was set up? It took a week for the Government to realise that they had not put further education in either of the two possible Departments.

[Kelvin Hopkins]

There is another story, which may not be true, about what happened when incorporation was introduced in 1993. When the legislation was going through, the then Education Secretary was asked what was going to happen to sixth-form colleges and he said, “Oh, shall we put them in the FE sector?” It was a last-minute thought just to drop them into that sector. Sixth-form colleges are really schools and had they stayed with the local education authorities, we would by now have a lot more of them because LEAs would never have given away all the sixth-forms from their schools to create new sixth-form colleges because they were a different, independent sector.

Unfortunately, LEAs, and indeed, councillors are possessive about their institutions and do not want to give them away. I have experience of that, because when I was chair of governors of the Luton College of Higher Education, we had a battle royal to get that college into the higher education sector—out of LEA control and into the Polytechnics and Colleges Funding Council. The chief education officer threatened to sack the college principal for pursuing that avenue, and I had to intervene to say to the CEO publicly, “If you sack the principal, you will have me to contend with and I will fight you all the way.” He backed off and we got what became the University of Luton and, subsequently, the University of Bedfordshire. LEAs are, understandably, possessive and they are not going to give away their sixth-forms to move towards sixth-form colleges. Had they done that, our education system would be much better, but that is another story.

[Simon Hoare (North Dorset) (Con)]

The hon. Gentleman makes an important point about people’s understanding or experience of the FE sector, but may I just invite him to reflect on the statement he made a moment or so ago? He said that the Conservative Benches are full of posh boys and girls who went to posh schools. A good four or five of us sitting on the Parliamentary Private Secretary Bench this afternoon paid no fees at all for our education and are products of state school, hard work and good teachers.

[Kelvin Hopkins]

I thank the hon. gentleman for his intervention, but I think the majority of Members, probably on both sides of this House, have not gone through the further education sector. A small number have, and they understand this, but a high proportion are not very familiar with FE and the vast contribution it makes to our society, in all sorts of ways.

[Karin Smyth]

I agree with my hon. Friend. I went to an FE college to do my A-levels, but what he is saying applies not just to politicians, but to people in our media, our legal establishment and throughout other walks of life. They do not have experience of going through that sector, which means that it is often the forgotten sector.

[Kelvin Hopkins]

I agree with my hon. Friend about that, and of course another cultural factor is the fact that we are not aware of things. As my hon. Friend the Member for Wolverhampton South West (Rob Marris) says, there is this idea that mathematics is something we do not do; we say, “Oh, I can’t do maths”. People do not boast about how they cannot read. I want to make sure that everybody can read, and we should have adult education to make sure that everyone can. There is a problem with our mathematics, and I invite Ministers and shadow Ministers to visit the wonderful sixth-form college where I am governor to find out how to do things well, because so much that goes on in our college is brilliant.

[Lucy Powell]

My hon. Friend is making some good points. I did an A-level in not just maths, but further maths. [Hon. Members: “Ooh!”]

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[Lucy Powell]

I find myself feeling how I did during my A-levels, when I was the only girl in the class doing science A-levels—it has taught me well for this place. Does my hon. Friend the Member for Luton North (Kelvin Hopkins) agree that the issue of maths teachers is now a looming crisis in this country? Someone who has a first or a 2:1 in maths is a very desirable potential employee, and therefore the teaching route is just not as attractive as it once was and we are facing a crisis in maths education.

[Kelvin Hopkins]

My hon. Friend is absolutely right about that. One of the most interesting things about Britain is that we produce more accountants than almost any other country in the world. People who are numerate can become an accountant and with an accountancy qualification they can earn a lot more money than they can by being a teacher. An accountancy friend of mine said years ago, “The reason we have so many accountants in Britain is that we are so bad at maths, we need accountants to do our work for us—our tax returns and so on.” I am digressing.

[Oliver Dowden (Hertsmere) (Con)]

The hon. Gentleman mentions teaching, and I have been waiting patiently for him to refer to his own experience of teaching at the excellent Oaklands further education college, to which many of my constituents send their children. As a comprehensive-educated special adviser, there I got a lot of experience of the excellent education one can get at a further education college.

[Kelvin Hopkins]

Indeed. In my day, it was certainly an excellent college and we did our very best.

I keep digressing from the points I am trying to make. One problem we have is that we try to pick up problems in mathematics post-16, in further education—as shown in Alison Wolf’s report—when the real problem is lower down. If someone misses out on maths in primary education, they will have much more serious problems later on. Picking it up later is much harder than picking it up at six, seven, eight or nine. My two granddaughters are studying at a wonderful school, and they are very good at maths. One was doing her long division, or whatever, yesterday, and she got everything right, because they are being well taught now. I hope that that will feed through the system, but it certainly was not the case all those years ago when I was teaching.

At the sixth-form college—I hope that this can happen in FE colleges as well—we are putting massive resources intensively into retakes for GCSE maths. The retake results, as in most places, were appalling until about two years ago; then we introduced a system with extra resource and the best possible teachers and we doubled the pass rate for GCSE retakes. That means that many more youngsters can go off to university or to apprenticeships with a maths qualification at A to C. It can be done, but it is hard work and takes more resource. I hope that the Government will recognise that. If they want to get the maths results up post-16, resource has to be put in. That means recruiting more teachers and ensuring that we have the best teachers teaching maths—people like my hon. Friend the Member for Manchester Central (Lucy Powell), who feel comfortable with the subject. Someone who is comfortable with maths is more likely to be a good teacher of maths than someone who feels uncomfortable or who has it as an add-on to something they have been doing elsewhere.

There are many other points I wish to make, but some have been made by my hon. Friends and by honourable colleagues on the Government Benches. The contribution that sixth-form colleges must make to our communities and our economy is vital for our future. If we do not get it right, we will not have the successful future we should have. We will see a declining scientific and technical culture, which we cannot afford. We must ensure that our maths is good and that our maths teaching is good at every level. Picking it up in further education has to be done, even though it is difficult, and I support Alison Wolf and her report, but we have a long way to go to ensure that we catch up with some of those other countries.

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[David Rutley]

Indeed.

The Bill is timely. After strenuous efforts to stabilise the economy following the financial crisis, the UK faces a new opportunity—and some challenges—in Brexit. If we are to make a success of leaving the EU, it is increasingly urgent that we tackle our long-standing productivity gap compared with other leading economies. The challenge is to upskill the existing and future British workforce. It is interesting that the Chartered Management Institute says that one in four jobs was left vacant in 2015, owing to skills shortages.

[Kelvin Hopkins]

The hon. Gentleman is right to focus on our poor productivity level, but poor productivity often results from the availability of cheap labour because employers are not forced to invest in modern technology. That is a factor in the equation. Low productivity and low-priced labour are a problem for us.

[David Rutley]

The Government have already put in place improvements to the national living wage and will do more in that arena. Productivity is about a lot more than wages. From contributions that the hon. Gentleman has made in previous debates, I know that he is fully aware of that, too. The situation is more complicated.

One in four jobs left vacant in 2015 were due to skills shortages. The CBI has found that one in five employers want candidates for jobs who not only have academic qualifications but can demonstrate other skills as well. So the Government must ensure that their efforts to close the skills gap inspire and motivate those who would gain most—those in training and businesses that need their skills. If we are to strive to achieve the greater parity of esteem that we have talked about and to get businesses actively involved in education and training, we need to motivate more young people who are planning to pursue the non-academic track to gain the skills that will transform their lives. Only then will we secure the prize of greater national productivity. Wages have a role to play, but so, increasingly, does motivating young people to want to acquire these skills.

The key to promoting technical training will be the Government’s drive to provide 15 clear routes to 3 million quality apprenticeships. These routes are set out in the post-16 skills plan, which was published in July. It is a strong plan; my hon. Friend the Member for Grantham and Stamford (Nick Boles) deserves real credit for setting it out, and I join the hon. Member for Hove (Peter Kyle) in wishing him a speedy and full recovery from his current health challenges. Those routes—or “occupational categories” as they are called in the Bill—will signpost such sectors as construction, catering and hospitality, and vital ones such as engineering and manufacturing. The obvious, recognisable nature of these categories will give young people the assurance they need that apprenticeships are, and will be, focused on delivering identifiable careers and are relevant to their own fields of vocational interest. Relevance is absolutely key.

Confidence in these routes as genuine career paths can be bolstered only by involving businesses in their design. Fostering links between business and schools, and between business and the rightly reconstituted Institute for Apprenticeships and Technical Education, has never been more urgent. The Government have taken the initiative in encouraging businesses to step up to the plate and to deliver employer-led technical education that addresses the skills gap. I hope businesses will now seize this opportunity—it is vital that they do.

The Bill should be seen as part of a process of going further in breaking down the barriers between education and business—between school lessons and work experience. I have talked to my right hon. Friend the Minister about this. We need to get more young people out of school and into business, and more businesses into schools and further education. Indeed, schools themselves need to be made more aware of the options for, and the importance of, motivating young men and women in the classroom about wider opportunities to develop skills and career options.

No one in the House wants schools to feel they are being imposed on by the Bill; we want them to recognise the benefits of the Bill for the futures of the young people in their care. It is important to establish, as set out in part 3 of the Bill, an information-sharing relationship between the Department, schools, academies, colleges and other providers. Businesses, too, will need to find it easy to engage with education providers to be motivated to participate. Those relationships will need to be forged—in some cases, from scratch.

Fortunately, there is good practice—from existing schemes to introduce business skills into schools—to learn from and extend. For example, Young Enterprise and Enabling Enterprise provide teachers with opportunities to link up with business, and supply model exercises in flexible, transferable life and work skills. Young Enterprise already has relationships with over 50% of secondary schools. I shall be interested to hear—although this is not directly relevant to the Bill; it relates to the wider issue of what we can do to engage and motivate people—what role my right hon. Friend believes these schemes will play in this vital area of motivating more people.

There is much more that we need to do to close these skills gaps. In South Korea, for example, there is a clear difference between the skills gap among 55 to 65-year-olds, nearly half of whom are low-skilled, and among 16 to 24-year-olds, who have a much higher skills base. In England, however, about 30% of the 16 to 24-year-old age group and the 55 to 65-year-old age group are classified by the OECD as having low skills. It is clear that we are not closing the gap for the different age cohorts, and the Bill will be fundamental in taking that work forward.

My right hon. Friend is absolutely keen to move things forward on social mobility and to play his part in the party for the workers, which he has helped to articulate in recent years.

--- Later in debate ---

[The Minister for Apprenticeships and Skills (Robert Halfon)]

I welcome the thoughtful contributions to the debate from Members on both sides of the House.

This important Bill has two purposes: to provide high-quality technical education to students; and, when colleges are suffering extreme financial difficulties, to provide clarity in the unlikely event of insolvency while protecting students as part of the process. The Bill has the protection and best interests of students at its heart, which is why David Hughes, the chief executive of the Association of Colleges, has stated that he is

“pleased that the Government is continuing to take forward the measures outlined in the Post-16 Skills Plan”.

The Bill is vital because we face serious challenges: a chronic shortage of high-skilled technicians; acute skills shortages in science, technology, engineering and maths; and low levels of literacy and numeracy compared with other OECD countries. A number of Members have raised an important issue about maths. We do not yet require all 17-year-olds who have not achieved an A to C in maths and English to resit the qualifications. Students who achieve lower than a D grade at 16 may take other qualifications. We are looking at functional skills. I want functional skills to be better and for them to be as prestigious to employers as other skills.

[Kelvin Hopkins]

rose—

[Robert Halfon]

I ask the hon. Gentleman to hold on one second, because he said that he wanted resources for maths, and we have invested £67 million to recruit up to 2,500 additional maths and physics teachers, and to upskill up to 15,000 non-specialists. We are investing the resources.

[Kelvin Hopkins]

rose—

[Robert Halfon]

I will not give way because of the shortage of time.

A number of hon. Members mentioned the Maynard reforms. We will implement those as soon as we possibly can, particularly with regard to the issue of maths for those with disabilities. We will inform the House as progress is made.

The hon. Member for Hove (Peter Kyle) talked about the levy and technology. The thing is that if companies have apprentices, they do not pay the levy, and they get 10% on top. This is about changing behaviour and raising money to fund millions of apprenticeships in our country.

We have substantially grown apprenticeships, with 619,000 starts, which is why we have the levy. It will have an impact on employers with a pay bill of £3 million or more and help to fund the quantity and quality of apprenticeship training. We are dramatically reducing the number of technical qualifications available, ensuring even better quality for students.

A lot has been said about FE funding, but by 2020 more will be spent on FE and skills participation than at any time in our island’s history—£3.4 billion in the year 2019-20. My hon. Friend the Member for Dover (Charlie Elphicke) correctly described FE as a ladder of opportunity for young people.[Official Report, 20 December 2016, Vol. 618, c. 11MC.]

We are adopting the Sainsbury report, as has been suggested, and will put in place 15 high-quality technical routes to skilled employment. Those will be implemented by the Institute for Apprenticeships and Technical Education, which will oversee the employer-led reforms.

We are proud of the university technical colleges. There is clearly a debate here, as some Members want those for pupils at 14 and some for education at 16. That debate will no doubt continue, but we allow flexible entry to UTCs in certain circumstances.

My hon. Friend the Member for Macclesfield (David Rutley) asked about the role of business. We have created the Careers & Enterprise Company to boost businesses’ linking up with students in schools.

The hon. Member for Wolverhampton South West (Rob Marris) talked about representation. I am very keen for all kinds of organisations to be represented. I am a trade union member myself, and I am very proud that this Government give Unionlearn £12 million. It has an incredible fund that supports thousands of learners and apprentices. I very much hope that trade unions will be involved in the Institute for Apprenticeships and Technical Education. The institute will ensure that all technical provision, across both apprenticeships and college-based courses, matches the very best in the world.