Social Mobility (Wales) Debate

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Department: Wales Office
Tuesday 19th December 2017

(7 years ago)

Westminster Hall
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Nick Thomas-Symonds Portrait Nick Thomas-Symonds (Torfaen) (Lab)
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It is a pleasure to serve under you as Chair, Mrs Moon.

I warmly congratulate my hon. Friend the Member for Ogmore (Chris Elmore) on securing the debate and on the very considered and thoughtful way in which he opened it. He covered a number of the issues, and I propose to focus my remarks on early years, vocational qualifications, and the academic sphere and our elite universities.

The early years are without doubt extraordinarily important. A lot of data suggest that by the age of seven people’s likely GCSE results can be predicted, which suggests that the biggest difference can be made in those very early years of life. In that regard, I praise the important work of the Welsh Government focusing on the early years. As the years go by, clearly that investment will feed through.

Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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Does the hon. Gentleman share my concern about Wales’s performance in the PISA—programme for international student assessment—tables? Endeavours to improve teaching and learning in Wales should be concentrated on releasing teachers to be trained, unlike some of the temporary initiatives we have seen in the past.

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Justin Madders Portrait Justin Madders (Ellesmere Port and Neston) (Lab)
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It is a pleasure to serve under your chairmanship, Mrs Moon. I congratulate my hon. Friend the Member for Ogmore (Chris Elmore) on securing this debate and on the considered way that he introduced it.

As chair of the all-party group on social mobility and a Member who represents a constituency that has not only a border but many economic, cultural and political links with Wales, I have two reasons for participating in the debate. As we all know, it does not matter whether someone lives in Bangor, Buckley or Birkenhead; in too many parts of this country, their place of birth can override their ability and potential, and generation after generation struggles against entrenched disadvantage that should put us all to shame. We have mistakenly and unquestioningly accepted the myth that greater economic growth leads to increased opportunity for all, despite overwhelming evidence that tells us otherwise.

Earlier this year, my APPG published a report entitled “Increasing access to the leading professions”. It looked at opportunities in law, finance, the arts, media, medicine, the civil service and politics, and found that, whatever the profession, there is a similar lack of opportunity and similar reasons for that. Privilege and opportunity go hand in hand across the board. For example, Sutton Trust research shows that three quarters of senior judges, more than half the top 100 news journalists and more than two thirds of British Oscar winners attended private schools.

The APPG recommended that there should be a legal ban on unpaid internships lasting more than a month. We found that their unpaid nature was not the only barrier: many of those placements are in London, which means that unless someone is from that area and has parents who can support them for an extended period, there is no prospect of them being able even to consider such an internship.

Liz Saville Roberts Portrait Liz Saville Roberts
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Does the hon. Gentleman agree that the excellent Speaker’s internship scheme should consider providing means for people to afford accommodation in London, so that we can reach out to people who could not otherwise gain from such paid experiences?

Justin Madders Portrait Justin Madders
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I thank the hon. Lady for that intervention. We took evidence from several successful applicants to the Speaker’s internship scheme. The geographical challenges were certainly very apparent, and that ought to be fed back.

How can anyone from outside London—from the north-west of England, Wales or anywhere else in the UK—go and do unpaid placements in London for months on end? There also need to be fair, transparent and open recruitment processes for such placements, which we found are often determined by existing connections, be they family or business contacts. The same rigour needs to be applied to those placements as would be applied if they were permanent jobs, otherwise we may just ease the path for people who are already on it.

One simple change could make a big difference to improving social mobility. There is a private Member’s Bill in the other place that seeks to end unpaid work placements. However, given what we have seen so far in terms of Government action, that does not seem easy to deliver in practice. Although I understand that responsibility for social mobility rests primarily with the Department for Education, any action on unpaid internships must be taken by the Department for Business, Energy and Industrial Strategy. There has of course been no action, which proves Alan Milburn’s recent point that commitment to social mobility does not spread out across the whole of the Government. It needs to. Yes, it is to do with early years, schools and universities, but it also involves the world of work, housing and health. The Social Mobility Commission provided us with a wholesale national analysis of all those issues, but the Government’s response is too often constrained by Departments’ silo mentality, which is sometimes exacerbated by devolved responsibilities getting in the way.

I am sure that if I asked a group of young people from many of the constituencies represented in the Chamber what they wanted to do when they are older, they would not say they wanted to be a doctor, a lawyer or an actor. For too many young people, the very notion that they should even consider such careers is almost universally absent. They need role models, mentors and inspirers—people from their communities who have been there and done it. We need to inspire young people from an early age to aim for wherever their abilities and interests take them. We should not accept that coming from the wrong part of town means low horizons. Getting a job should mean following dreams and forging a career, not simply working to survive.

In keeping with the Welsh theme, we were fortunate to have Michael Sheen give evidence to the APPG. There is no doubt that he is an inspirer and mentor for the kids of Port Talbot. We are not going to get a Michael Sheen in every constituency, but I hope there will be others in every other town who will provide similar inspiration.

Mentorship and inspiration are important, but without academic equality they will not be sufficient. The Sutton Trust report, “Global Gaps”, looks at attainment gaps across 38 OECD countries and as a result can pinpoint how each of the devolved Administrations is performing. Unfortunately, it showed Wales performing rather poorly compared with other industrialised nations, in particular in reading and mathematics, where the skills of the most able pupils are some way behind those of pupils in comparable nations. On a more positive note, it did say that the gap between the most able, advantaged and disadvantaged pupils in Wales was relatively small compared to other industrialised nations. However, sadly, the report concludes that the situation for high-achieving pupils across the whole of the UK is “stagnant at best”.

Stagnation is a good description of where we are now. I urge all Members, if they have not already done so, to read the Social Mobility Commission’s latest “State of the Nation” report, which paints a bleak picture of a deeply divided nation in which too many people are trapped in geographical areas or occupations with little hope of advancement or progression. It talks about an “us and them” society, in which millions feel left behind. Specifically, the report talks about major changes to the labour market in recent decades, which have imprisoned 5 million workers in a low-pay trap from which there appears to be no escape. The report highlights places that offer good prospects for income progression and those that do not, showing that real social mobility is in fact a postcode lottery, with the worst problems concentrated in remote rural or coastal areas and former industrial areas—that description will be familiar to Members in the Chamber today—not only in Wales but in England.

Encouragingly, the report finds that well-targeted local policies and initiatives adopted by local authorities and employers can buck the trend and positively influence outcomes for disadvantaged residents. In short, where there is a will and strong leadership, things can be done.

This country is too closed. It is a country where too often people’s life chances are defined by where they are born and who they are born to. We are now in a world where many parents believe their children will have less opportunity than they did, and I deeply regret that. Automation and artificial intelligence will only exacerbate the problem, and we are miles away from even beginning to understand the social impact that will have. The only way we will be able to meet those challenges in the future is by intensive, long-term Government intervention, not just at the ages of five or 15, but at 35 and 50 and so on. The world of work will change more rapidly than ever before, and we need to recognise that opportunity will need to be addressed not just in our younger years, vital though that is, but throughout our lives. We have to invest in ourselves through all of our working lives, but we cannot do that without Government support.

We have heard about the geographical divide, and the APPG is looking at that, but there is also a generational divide. I do not believe that the recent election was a ringing endorsement of the status quo. What we saw was that the more young people engaged with the question of what they want from their Government, the more they turned away from the existing set-up, and who can blame them? Do they want to better themselves and study at university? Yes, there are opportunities, but they come with eye-watering debt that may never be paid off. Want to own a home? Unless the bank of mum and dad is there to fall back on, there could be a very long wait. Want to build a career in a profession doing something rewarding financially and intellectually? Those opportunities exist for the few, not the many.

The more likely experience for our young people in the job market is casual work, low pay and chronic insecurity. It is time we offered them hope. Across the years, across the Government and across the nations, we need total commitment to delivering opportunity for all.

Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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Diolch yn fawr iawn, Mrs Moon. It is a pleasure to serve under your chairmanship. I thank the hon. Member for Ogmore (Chris Elmore) for securing this important debate, and I am honoured to follow the hon. Member for Ellesmere Port and Neston (Justin Madders), who made a considered and quite inspiring speech.

To speak plainly, responsibility for social mobility lies with the National Assembly. The Welsh Government have a crucial role to play in reducing inequality in Wales, but it is also true that every decision taken in Westminster has a very real impact on people’s prospects in Wales, whether it be on social security, digital connectivity or infrastructure, to name just those areas I intend to concentrate on today. I have to return to my expertise in a former life—I was a director in a large further education establishment—and I must reiterate the integral role that education plays in promoting social mobility.

In one of the earlier speeches, early years, vocational education and higher education were mentioned. Those, in terms of funding, targets, quality of achievement and the curriculum, are entirely within Labour’s remit in Wales. It is important to emphasise that in the role that we expect education to play. I have seen how the effects of the political choices made in different areas of Wales have played out, and it would be extremely disingenuous of me not to remind the Chamber of the role of Labour in that respect. However, today I intend to be “on location” and direct my arguments to the Minister.

One other thing I would like to question slightly is using Oxbridge as our measure of success. It is interesting that so many people here attended Oxford and Cambridge, but we should be building a society where someone can gain that capability and confidence without having public, or private, school education and Oxbridge university education behind them. We should be building that in Wales for our young people to achieve near to their own homes.

In the effort to champion social mobility, redistribute wealth and provide opportunity, every socioeconomic pillar must carry its load. The Government are failing to raise the people of Wales through the measures in their remit of social security, infrastructure and digital connectivity in particular. Changes to social security made by the Government will hit the poorest areas hardest. Analysis by the Institute for Fiscal Studies has revealed that Westminster’s benefit cuts will trigger a rise of over 5% in child poverty in Wales, compared to 1.5% in London. Wales remains the only country in western Europe without an inch of electrified railway, and all the while Welsh taxpayers are contributing towards High Speed 2. We hear disingenuous arguments as to how HS2 will benefit us. Frankly, I have concerns about how it will affect services from Cardiff to Manchester via Crewe and services along the north Wales line as well.

Only yesterday, we read reports in the Financial Times that the Westminster Government are having cold feet over the Swansea bay tidal lagoon project—we already had that impression—which is an investment that would bring £316 million of gross value added in its construction alone. What about digital connectivity? Recently, the Westminster Government invested significant sums to improve broadband infrastructure in three of the four UK nations—but not in Wales. They found £20 million for ultrafast broadband in Northern Ireland and £10 million was found for full-fibre broadband in six trial areas across England and Scotland, yet nothing for Wales. According to Ministers, the decision on where to invest the money was based on how likely they believed it was that the investment would stimulate short-term economic growth, effectively to boost headline statistics. That is where the fundamental problem lies and where the link between social mobility in Wales and Westminster’s priority is at its weakest.

It is not the Government’s job to pick who wins and who loses in the British state; it is their job to provide equality of opportunity. There is of course a complex link between regional inequality and social mobility. Poverty in the UK is particularly concentrated in Wales, affecting nearly one in four people, while the UK poverty rate remains at 16.8%. Median weekly salaries stand at £393 in Wales, compared with £434 in England. When I hear about the employment rate, yes, I am delighted that people are in full-time worthwhile work, but I also know of people in my constituency who are holding down three or four jobs in order to make a living. There must be a question about salaries and regional inequality in the United Kingdom.

In the past 10 years, under successive Westminster Governments, productivity in my county of Gwynedd has fallen by 10% while productivity in central London has risen by more than 5%. Unlike the Westminster Government, the EU recognises wealth inequality as a problem to be addressed, and attempts have been made to make up for Westminster’s neglect and to strengthen Wales’s economy by redistributing wealth. I know we discussed the effects of European structural funds. Could we take a step back and consider where Wales would be if we had not received those funds? They were there for the noble principle of addressing inequality and poverty.

Guto Bebb Portrait Guto Bebb
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The hon. Lady is somewhat unreasonable in her comments. The European structural funds were provided to ensure that GDP levels in Wales were comparable with the average of the European Union. That measure failed significantly in the Welsh context, and I want to stress that that was not the fault of the European Union. It failed as a result of the way in which the projects were designed in a Welsh context. That has been the problem.

Liz Saville Roberts Portrait Liz Saville Roberts
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Again, what would the position of Wales have been if we had not received those funds? We may not agree on the way they were used, but I am truly concerned that we are moving to a future in which there is no principle on addressing and raising those funds.

Guto Bebb Portrait Guto Bebb
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Will the hon. Lady give way?

Liz Saville Roberts Portrait Liz Saville Roberts
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I am coming to a close.

At a time when we are being pulled out of the European Union, the Westminster Government must stick to their promises at the time of the referendum and ensure that Wales will continue to receive every single penny that it received thanks to the EU’s redistributive wealth policies. I beg to ask the Minister to say what Wales’s fair share will be.

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Guto Bebb Portrait The Parliamentary Under-Secretary of State for Wales (Guto Bebb)
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It is a pleasure to serve under your chairmanship, Mrs Moon, and to follow the hon. Member for Vale of Clwyd (Chris Ruane). I want to ensure that the hon. Member for Ogmore (Chris Elmore) is not only congratulated on securing the debate but also has a few minutes to respond at the end of the debate, so my contribution will be somewhat curtailed.

It has been an interesting debate, and I argue that it has been at its best, and the speeches have been at their best, when they have not been partisan. I know I am guilty of being one of the most partisan Members in this place when I want to be, but I will try to respond in a manner similar to most of the speeches we have heard, rather than those with a “Money, money, money” theme, which seemed to be the message from some hon. Members. However, on the whole, the debate has been thoughtful, useful and constructive. I particularly thank the hon. Member for Ogmore, as I have said, for securing the debate and for the majority of his speech, which looked at the core issues at stake. On the whole, it was a constructive speech, although it occasionally fell into supporting the Welsh Government come what may.

The hon. Member for Torfaen (Nick Thomas-Symonds) made an impassioned speech on the importance of people being aware of whether they can or cannot take their opportunities for further education. While I would describe the universities in Wales as the elite universities—not least Aberystwyth University, which I attended—the hon. Gentleman made an important point about aspiration. When looking at some of those giants of recent Welsh history, who came from valley communities, slate quarrying villages and farming stock, and who actually aspired to education, we have to ask why we have lost that in the Welsh context. The hon. Gentleman’s comments are well worth further consideration by those who actually take an interest in the goings-on of this place.

I also welcome the hon. Member for Ellesmere Port and Neston (Justin Madders) to the debate. I congratulate him on his work as chair of the all-party parliamentary group on social mobility, and I appreciate his interest in the cross-border work of the Wales Office. He made some really important points about the London-centric nature of the UK economy, which I subscribe to. I believe that one problem we have, not only in the Welsh context but throughout the UK, is that we have a London-centric view of the world, which needs to be challenged. The hon. Gentleman is clearly doing excellent work as part of the all-party parliamentary group system here in Westminster. I would argue that most of my constructive contributions in this place between 2010 and 2015 were made through all-party parliamentary groups, so I encourage the hon. Gentleman to carry on with his work and to keep on being involved with us in north Wales, in relation to the potential of the north Wales growth deal.

I also pay tribute to the hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), who highlighted that many of the issues we have talked about, including educational attainment and training and so on, are devolved to the Welsh Government. That point was worth making. However, at the same time, she was quite happy to challenge me, as the Wales Office Minister representing the UK Government.

At this point, I think I need to once again clarify my point about EU structural funds. I congratulate the hon. Members for Vale of Clwyd and for Caerphilly (Wayne David), and all politicians who ensured that Wales received EU structural funds at the highest level, on their involvement at the time. I have said that on the record time and again. The point I have also made, which is still worth reiterating, is that the reason Wales achieved the highest level of EU funding intervention was to ensure that our GDP was comparable to the EU average.

That was not achieved, so before we ask for more money, we need to ask ourselves why that investment did not achieve the desired goals. It is simply not good enough for the hon. Member for Dwyfor Meirionnydd to claim that the situation would have been even worse without that intervention; we need to ensure that in the future, if we have intervention through a UK Government shared prosperity fund, that intervention improves the GDP of Wales and the life chances of all people in Wales. We should be willing to learn lessons from the fact that the whole purpose of EU structural funds in Wales did not deliver the growth we were hoping for.

Liz Saville Roberts Portrait Liz Saville Roberts
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In the spirit of planning ahead, much mention has been made of apprenticeships today. I represent an extremely rural area, where we have a shortage of skills when we are looking at developing, say, the Wylfa site. We need workplaces in which people can undertake apprenticeships. We do not have those workplaces in north-west Wales in sufficient numbers. Will the Minister commit to looking at creative ways of finding workplaces that will enable young men and women to be trained for engineering and construction in the future?

Guto Bebb Portrait Guto Bebb
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The hon. Lady makes a point that I fully subscribe to. The Wales Office stands ready to support any initiative in a Welsh context that extends the number of apprenticeship places available. We are certainly of the view that the financial contribution made by the UK Government to the Welsh Government through the apprenticeship levy has been significant, and that money should be spent.

The opportunities that exist in north-west Wales include the development of a new nuclear power station in Wylfa and the work going on in Airbus, with the apprenticeship schemes available at RAF Valley. Those schemes are strong. They are making a difference and showing young people that there is an alternative to going to university. I have seen the success stories in north Wales of Coleg Cambria and Grŵp Llandrillo Menai replicated in south Wales with Coleg Merthyr and other colleges, as a result of my role as a Minister in the Wales Office.

I highlighted, for example, how impressed I was with the enthusiasm and commitment of apprentices when I visited the General Dynamics site in Merthyr Tydfil. That is the way to show young people that educational achievement does not necessarily mean aspiring to Oxbridge. There is no reason why anybody in Wales should not aspire to improve themselves from an educational perspective, but that improvement can happen in their local communities. Opportunities should be enhanced for people to get qualifications in the workplace, ensuring that they are earning while learning.

In Wales, we have some of the better further education institutions. They are doing great work, but they should be fully supported by the Welsh Government in delivering more for the people of Wales. I genuinely thought that the comments from the hon. Member for Islwyn (Chris Evans) were inspiring. Colleagues have said clearly that we need to sell the concept of going further in education. We need to sell the ability of young people to see themselves attending some of our finest institutions.

We need to be proud of the fact that we have a significant entrepreneurial spirit in Wales. How often is that sold in local schools? The biggest success in my constituency since I was elected has been Sean Taylor, a veteran who left the Army and decided to set up a high ropes training and outdoor pursuits centre. He subsequently created the Zip World business, which now employs 240 people in my constituency and the constituency of the hon. Member for Dwyfor Meirionnydd, 75% of whom are local Welsh speakers. Those people have had an opportunity to work, develop skills and gain qualifications while seeing that setting up a business in their community can make a real difference. I am proud to say that Sean Taylor is the type of entrepreneur who is willing to go out and explain to young people, “You can aspire to university and to a medical or legal profession, but you can also make a big difference in your community.”

I am proud to represent a constituency with one of the highest levels of self-employment. It has been said that in rural Wales, self-employment is often a case of doing anything to earn a living because of people’s pride in themselves and their community, and because no other opportunities are available. We need to make setting up a business and being entrepreneurial a key opportunity for young people to move forward in their communities. Nothing gives me greater pride than when, in my role as a Minister in the Wales Office, I meet young people who have set up businesses in my constituency and across the length and breadth of Wales.

While I thought the hon. Member for Cardiff North (Anna McMorrin) was somewhat partisan in her comments, I am happy to agree that we need to deal with the lack of social mobility. I want to allow the hon. Member for Ogmore a few minutes to respond, but before I finish my comments, I need to touch on some of the issues raised in the debate. Clearly social mobility is important for this Government. It was said in some of the most thoughtful comments by Opposition Members that nobody in the Chamber can be proud of our record on that issue. If, as the hon. Member for Vale of Clwyd said, the highest point of social mobility in our history was achieved in 1958, that is a stain on all of us. If, 10 years before I was born, we reached the high point of social mobility in our communities, we genuinely need to ask ourselves what went wrong. No amount of finger pointing between Westminster, the UK Government and the Welsh Government will change anything unless we are willing to acknowledge where we have a weakness.

This debate is entitled “Social mobility in Wales”. We have agreed that education is crucial, and we need to acknowledge that in Wales we are not performing as we should. I am not going to say anything more than that, but we all acknowledge that we are not performing in Wales to the standard of the UK as a whole or the rest of our competitors in the European Union. We need to be very clear about that. When Germany found itself failing under the PISA regime, it acted, and in 10 years it managed to get itself from a very low level to once again leading. The report on PISA in Germany sent shockwaves through the German political system, and the question I ask is: why are those shockwaves not resonating through the corridors of the Welsh Government in Cardiff? We need to do a lot of work on education. It is not perfect in England, but it is certainly not as good as it should be in Wales, and Members should acknowledge that.

Members have highlighted the need to ensure that the concept of lifelong learning is understood. That is why investment in our further education colleges is crucial. The hon. Member for Ellesmere Port and Neston made the crucial point that education, and certainly education in the workplace, does not end at the age of 18 or 21. It is increasingly the case that 35 to 50-year-olds are looking to retrain. As we are all living longer and expected to work longer, we have to acknowledge that we need to adapt to the workplace. One of the key things I have seen at further education colleges that I have visited in Wales is their commitment to take on apprentices regardless of their age.

Another issue that we need to be aware of is the importance of making work pay. We have seen in Wales since 2010 a significant reduction in the number of children in workless households. That is very important. The Office for National Statistics has highlighted that families in which members are in work are, on the whole, in a position to make more of their lives and have better outcomes than those where that is not the case. Interestingly, the ONS statistics also highlight that, regardless of a household’s income level, where there is someone in employment, outcomes are better. I often hear complaints from the Labour party about the type of jobs being created, but we should always take pride in any jobs that are being created and in allowing people to take care of their own future.

One thing that has come out of the debate is that poverty can be measured in financial terms. I acknowledge that. The hon. Members for Torfaen and for Islwyn and others highlighted the importance of dealing with poverty of ambition. We need to be champions within our communities, highlighting to young people that there are financial difficulties in terms of ensuring equality of opportunity, but also challenging the poverty of ambition that blights too many of our communities in Wales and across the United Kingdom.