Skills and Post-16 Education Bill [HL]

Lord Adonis Excerpts

Committee stage
Tuesday 6th July 2021 Lords Chamber

My last point is this: when you look through the Bill, it is often the case that local plans will have to have regard to national plans, national frameworks and national guidance. So when does a local plan stop being a local plan and just become a mirror image of everyone else’s local plan, which makes up the national plan? My question to the Minister on that would be: how brave are the Government going to be in allowing local plans to do their own thing, which might not always accord with the national plan? Who is going to prioritise this big list of things they have to do, and what will the Government do to welcome innovation, which might be ideas they themselves have not yet thought of?

[Lord Adonis (Lab)]

My Lords, this Bill is largely a Bill in search of a policy, and indeed a Bill that is a substitute for policy. It does almost nothing that actually requires legislation. As far as I can tell, there is only one aspect that actually requires a change of the law to be accomplished, which is the extension of student loans to further education courses—a reform I support. But all the rest of it is the enshrining in legislation of policy goals—some of which are inherently contradictory —which do not require legislation at all.

I am surrounded by former Ministers on all sides, and we all know that whenever you do not have a policy and cannot quite work out what to do, but want to proclaim a priority, you produce a Bill. The Civil Service loves producing Bills. It has Bill teams. The one thing you can do from Whitehall and that big building on Great Smith Street is produce reams of paper—White Papers, Bills and all that. It does not actually mean you do anything to improve skills levels in the country, but you do produce Bills and White Papers and requirements on other people to produce plans and so on themselves.

In my experience of big change in education, the biggest changes are usually produced by the smallest pieces of legislation that focus in particular on funding—because the one thing the Government control in this is funding. In parenthesis, further education funding is declining; let us not get away from that. No amounts of legislation, no White Papers extending to whatever this latest one is—it is in very large type, but it extends to 73 pages—can make up for the fact that funding is being cut. There is some opportunity for substituting public funding with private funding through the loans scheme, but public funding is being cut.

That is one way you can do it. The second is by great ministerial and Civil Service drive on the ground, which we desperately need in this sector. But this sector has had, by my calculation, one Minister of Further Education each year since 2010. The only one who was any good was sacked and now chairs the Select Committee in the House of Commons—I think because he was actually too committed to making a reality of further education.

The one big reform in this area, which is the apprenticeship levy, has been so badly mishandled that, astonishingly, it has managed to lead to a decline in the number of apprentices, particularly at entry level, which is the area where we have the biggest skills failures. So this is an absolutely farcical piece of legislation. The Minister has my deep commiserations on having to spend hour after hour camped in this House proclaiming mantras and platitudes that will have been written for her by civil servants and will do absolutely zero to improve further education or the skills level.

Producing local skills improvement plans does not require legislation. The Government could today announce —and, with funding, incentivise and require—public authorities to do them. I can assure noble Lords that employers’ bodies, if some money was waved in front of them, would willingly co-operate in the production of local skills improvement plans. So legislation is absolutely not necessary.

But, because one always hopes the Government are actually producing a policy that is well thought out and crafted and has a proper chain of connection between the conception of the policy and the levers, goals and outcomes, I actually read the White Paper. It is always a big mistake to read the actual policy statement that underpins the legislation. The White Paper says on page 14, in one of its many platitudinous statements:

“At the moment, employers do not have enough influence over the skills provision offered in their local area or enough say in how all technical training and qualifications are developed.”


We are then referred to footnote 14, which states:

“See for example England’s Skills Puzzle: Piecing Together Further Education Training & Employment (Policy Connect Learning & Work Institute, 2020.”


Well, I read that report. It is not a survey of employers; it is not even a proper study of employers. It is a report of an ad hoc commission chaired by Conservative MP Sir John Hayes, one of the former Ministers of Further Education. Having done a few dipstick surveys in different parts of the country, it makes five recommendations, none of which is for these local skills improvement plans.

The first of the five recommendations is that there should be national targets, monitored by the new skills and productivity board in the way the Climate Change Commission monitors its targets. I am not up on the creation of the latest quangos, so I am not yet fully familiar with the skills and productivity board. No doubt the Minister will tell us what this new quango is doing. But that does not require this reform. The second recommendation is for further devolution of budgets. That may be a worthwhile thing to do but, since the budgets are declining, that does not inherently help. As King Lear told us:

“Nothing will come of nothing,”


But, in any case, devolving budgets does not require these skills plans; it can be done by fiat from the department tomorrow.

The third recommendation is further funding incentives for collaboration—which, again, can be done without any of these local skills improvement plans. The fourth is a national campaign to recruit teachers to further education. I entirely support that; again, it does not require this reform. The fifth is piloting personal learning accounts. I strongly urge the Government to be cautious about that one; some of us on this side of the House are deeply scarred by things called individual learning accounts, which turned out to be a massive scam for rapidly created local skills organisations to cream off all the money. They certainly should not go there at all; the extension of the student loans reform would be much better. So the statements that underlie this are not rooted in any evidence base.

We then come to the skills plans themselves. I thought that, since this Government are deeply versed in evidence-based policy, they would have piloted these properly so we can see: what these local skills plans are going to look like; what employer bodies are going to produce them; and what the relationships are with the local further education colleges, the mayoral authorities and the other public authorities. I thought we could perhaps read one or two of them. I am very keen to read them because, from my experience of the centre trying to mandate other people to produce plans, it is not the bodies charged with producing the plans that produce the plans; it is consultants employed by the bodies, who are paid a fortune and have no responsibility whatever for delivery of any of the outcomes. Some of us on this side of the House will remember the words “education action zones.” A whole army of consultants grew up to produce the plans for education action zones, which led to precious little further education and no action—except by the people producing the plans for the education action zones, who made tens of millions of pounds. I see this happening again.

But I thought, “Well, maybe it’s being piloted”. So I googled “pilots,” because the White Paper’s pages 15 and 16 refer to pilots of these local skills improvement plans. The pilots have not started. There was an article on 20 April in a magazine called FE Week—which is after my time, a new entrant to the block, and seems to provide a lot of good information on what is going on—and the headline was:

“Hunt begins for ‘employer representative bodies’ to pilot local skills improvement plans.”


There is not long between 20 April and 6 July, but none of these bodies has yet appeared. It turns out that these local skills improvement plans are to be piloted in six to eight “trailblazer” areas. “Trailblazers” is a word the Government always use when they want to proclaim action when absolutely nothing is happening—so we are having six to eight trailblazers that do not exist.

Now, bids for those trailblazers, which are to be backed by £4 million of revenue funding—all of which will go to the consultants charged with writing these plans—were being sought by 25 May. Perhaps the Minister can tell us how many bids had been entered by that date, give us some description of who they are, tell us when they will start and tell us what indication there is that they will be coherent. I do not want to detain the Committee unduly, but all the indications as to who the bodies are reference bodies that do not exist at the moment.

We have a whole box on page 15 headed “Case study: German Chambers of Commerce”. I strongly welcome the Government’s study of Germany and aligning more closely with the European Union; it is something that I have spent my political life seeking to do. If we had taken our membership of the European Union more seriously and done a better job of learning from the Scandinavian countries, Holland and Germany, our skills system would have made a much better start. So it is good that, as we leave Europe, we none the less regard as a model for policy the German Chambers of Commerce. However, there is nothing in these proposals that will lead to anything like the construction of the German Chambers of Commerce. There is no statutory power for the establishment of chambers of commerce. There is no requirement on employers to be members of these bodies and no public duties are imposed on them.

So who are the bodies that will be the skills-based bodies that will produce these local skills improvement plans? I should say “employer bodies” because the Government say that they must be employer bodies. Who are they? I look forward to the Minister telling us so that, by the time we come to Report, we will have been able to test this and perhaps propose a few amendments—perhaps, indeed, to remove this entire provision, save the public tens of millions of pounds and have some real action in terms of further education skills and what they will be.

My further remark is one that causes me real concern. The one area of policy that has at least taken some steps forward in this area over the past 10 years is the development of the mayors. For the first time, we actually have public authorities outside London with some real strength and political credibility. Andy Street is a great guy and is doing a fantastic job in Birmingham and the West Midlands. There is Andy Burnham in Greater Manchester. Ben Houchen has created a big name for himself and is perhaps the only major recognisable political figure apart from Tony Blair to have come out of the north-east in recent times. This is very welcome. It is something that, at the political level, England desperately needs.

However, the one body specifically banned from producing these local skills improvement plans—I must get the jargon right—are the mayors. The reason why, it turns out, is that they are not employers. Well, as a definitional thing, obviously they are not employers—they are mayors—but they are the people who have the capacity to generate real activity and engagement by employers and colleges in a serious way. They should be tasked with this mission, but instead they are totally isolated from the process on the grounds that they are not employers and the Government want to be promoting employers.

Instead, in paragraph 8 on page 16 of the White Paper, Mayor Burnham, Mayor Street and Mayor Sadiq Khan—very big political figures whom we want to seize this agenda—are told this:

“Mayoral Combined Authorities will be consulted in the development of these plans.”


That is a fat lot of good, is it not? The most dynamic, potentially active and crucial agents of the state—they are also the people who, as public authorities, are closest to employers—are simply going to be consulted by bodies that do not for the most part exist at the moment. They are going to engage consultants who also do not exist; I suppose at least the consultants can engage with the consultees quite easily because they both have “consult” at the root of their job descriptions. However, the one thing that this is not going to do of its own volition is produce more skills education and training.

My noble friend Lady Whitaker made the point that the fundamental problems with the education system in these areas—I look at the noble Lord, Lord Baker, who wrestled with these problems 40 years ago; we wrestled with them too—is that basic skills are still too low and we have do not have high-quality apprenticeship routes for those who do not go on to university. This is not rocket science. It is simple. If we got this right, employers would be cheering from the rafters and we would not need this whole new panorama of local skills improvement plans, which I suspect will simply lead us to have exactly the same debates with very little progress having been made in 10 years’ time.

--- Later in debate ---

[The Deputy Chairman of Committees (Baroness Pitkeathley) (Lab)]

My Lords, I have received requests to speak after the Minister from the noble Lords, Lord Adonis and Lord Knight of Weymouth, and the noble Baroness, Lady Whitaker. I will call them in turn. I call the noble Lord, Lord Adonis.

[Lord Adonis (Lab)]

My Lords, the Minister said that over 40 applications for LSIP trailblazers have been received by the department. Could she make them available for the Committee to see? It would be very helpful if, while we are considering the Bill, we could see what is going on in the real world. Could she also assure us that, when the selection of those trailblazers is made, they will not just go to areas that have Conservative MPs, reflecting the gerrymandering that took place with the towns Bill? There is a very acute concern that the funding that is available under the Bill is just going to places that are favoured with Conservative representation in the House of Commons, which would be par for the course for this Government.

[Baroness Berridge (Con)]

The successful ones will be announced later on this month. There are no plans—and I clarify that it is not our normal process—to release the applications of those who have not been successful. I will write to the noble Lord if I am wrong about that.