Skills and Post-16 Education Bill [HL]

Lord Bishop of Durham Excerpts

Committee stage
Wednesday 21st July 2021 Lords Chamber

Moved by

[The Lord Bishop of Durham]

90A: After Clause 25, insert the following new Clause—
“Universal credit conditions: receiving education
(1) In section 4 of the Welfare Reform Act 2012—(a) in subsection (1) omit paragraph (d), and(b) omit subsection (6).(2) The Secretary of State may by regulations made by statutory instrument make consequential provision.(3) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.”Member’s explanatory statement
This amendment would remove the restriction that those “receiving education” cannot claim Universal Credit, which at present may impede some of the most disadvantaged from benefitting from learning opportunities. It is intended to probe how the Government plans to incentivise take-up of training programmes, and to elicit how cross-departmental working can be made more effective in transforming learning and skills.

[The Lord Bishop of Durham [V]]

My Lords, I am grateful for the support of the noble Lord, Lord Addington, and the noble Baroness, Lady Morris of Yardley. On these Benches, we welcome the Bill as the first step in implementing the much more significant role that further education needs to play in transforming the lives and life chances of individuals, communities and wider society. Quite properly, the Bill is chiefly concerned with structural or technical issues. The House has done its usual, excellent and thorough job of exploring large numbers of those matters through the four days spent in Committee. The Bill deals with what one might call the supply side of provision by aiming to make it more responsive and adaptable to the needs of employers and the community, for example. Turning any vision into action is no easy thing and I am most grateful to the noble Baroness, Lady Berridge, for an extremely helpful meeting, including on the issue of incentivising learners to take up the new opportunities that the Bill seeks to increase.

However, one of the crucial factors in radically increasing the take-up of the opportunities that should flow from such responsiveness is the provision of financial support for those who are unable to meet the costs of their studies because they are reliant on state benefits—for example, if they are unemployed. I therefore also support Amendments 92 to 98, all of which—although in different ways—aim at broadening the range and scope of support for learners. As your Lordships will have noted, Amendment 93 also specifically refers to amending the universal credit conditions in a way that would permit full-time study. There is therefore already a wide degree of support for more flexibility in the benefits system to maximise access to skills training and education.

I turn to Amendment 90A in more detail. The current welfare rules pose a major barrier to upskilling or retraining for many people out of work—a situation that is not new. Historically, that was embodied in the 16-hour rule but persists under the new universal credit system. For example, someone currently in receipt of universal credit will lose access to benefits if they take up the lifetime skills guarantee of a fully funded first level 3 qualification or other further education qualification. The Chancellor has invested in programmes in the Department for Work and Pensions and the Department for Education to support 16 to 24 year-olds but the programmes do not currently operate in tandem and it is difficult to make them work for employers, students, unemployed people and colleges. In addition, while support with tuition fees is one element in enabling people to begin their courses, living costs—the maintenance element—are often a more significant barrier, a matter often discussed in reference to students in higher education but that is just as much a problem for students in further education, if not more so.

I fully recognise that the Government have begun a significant programme of substantial and complex work over the student loan system and the LLE, and that joint work is already under way between the DfE and the Department for Work and Pensions. I am most grateful to the Minister for having shared with me and colleagues some of those issues and their proposed solutions. We appreciate that there are also significant complexities—technical, practical and legislative—in embodying detailed provision for student financial support in primary legislation, and of which those of us who participated in scrutiny of the Higher Education and Research Act and its cousins will be all too well aware. I am most grateful to the noble Baroness for the information in her recent letter about the lifelong learning entitlement amendments tabled on Wednesday and the invitation to a briefing on the matter.

However, the purpose of the amendment is to give the noble Baroness an opportunity to assure the Committee that the Government are committed to reforming those aspects of the benefits system that may act as barriers to people’s participation in gaining new skills or increasing their present skills, which our post-Covid society will need. I would welcome further discussions with her or officials as the Government’s proposals are developed. At this stage, subject to those assurances, I will leave this as a probing amendment.

[Baroness Janke (LD) [V]]

My Lords, I speak in support of Amendment 93 in the names of my noble friend Lord Storey and myself. As the right reverend Prelate said, the amendments in this group deal with finance and incentives to take up the training and development opportunities in the Bill, as well as addressing the disincentive posed by universal credit to taking up those opportunities.

Amendment 93 seeks to change the current situation of people who are unemployed and wish to follow full-time training courses to improve their job prospects by giving them entitlement to universal credit, from which they are currently excluded. As has been explained, that is because those receiving universal credit have obligations to prioritise job searches and take available jobs over full-time training. In addition, the length of time in which people can continue receiving universal credit while undertaking work-focused study has been capped at eight weeks. People taking up courses on offer would have to give up universal credit and have the choice of whether to take up chances of reskilling or have enough money on which to live, eat and pay bills. Unemployed people or those on low-paid jobs are the least likely to take out a loan, further risking indebtedness and poverty for themselves and their families.

The Bill is about the importance of training and retraining to support people and employers. The Government have rightly invested in traineeships, apprenticeships and the Kickstart and Restart programmes. However, those schemes have limited eligibility. Unemployment has risen in age groups other than those aged 18 to 25, on whom much attention is focused, but the people who would benefit from claiming universal credit are often those who would benefit most from retraining and development.

There is a lack of co-ordination across departments to make the Bill and its provisions succeed. There needs to be appraisal by the DWP and I should like to hear from the Minister what the Government have done to consider the difficulties of people who are trying to take up courses when they are unemployed and have no other means of support. Amendment 93 seeks to amend the regulations on universal credit to enable a more flexible and enabling approach to those most in need of retraining development for decent jobs. It relates only to courses leading to the lifetime guarantee and I look forward to hearing the Minister’s response.

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[Baroness Penn (Con) [V]]

My Lords, this group of amendments broadly seeks to enable individuals studying at level 3 and below to claim universal credit. It may be helpful to noble Lords if I set out the work already under way in this space, as was noted by several participants in the debate.

Officials at the Department for Education and the Department for Work and Pensions are working together—I hope that the noble Baroness, Lady Sherlock, will be reassured by that fact—to mitigate the barriers to unemployed adults taking advantage of our skills offers. In April, an extension to the flexibility offered by universal credit conditionality was announced for a trial period of six months. The noble Baroness, Lady Janke, made a point about the eight-week cap for full-time training for those on universal credit. As a result of the trial under way, adults who claim universal credit and are part of the intensive work search programme can now study full-time for up to 12 weeks, or up to 16 weeks as part of a skills bootcamp in England. This builds on the eight weeks for which claimants were already able to train full-time. Such measures are helping to ensure that universal credit claimants are supported in accessing training and skills that will improve their ability to gain good, stable, well-paid jobs.

Amendment 90A, moved by the right reverend Prelate, and Amendment 93, tabled by the noble Baroness, Lady Janke, have a similar thrust so I will take them together. Section 4(1)(d) of the Welfare Reform Act 2012 sets out that one of the basic conditions of entitlement to universal credit is that the person must be “not receiving education”, which can be defined in the regulations made under subsection (6). Financial support for students comes from the current system of learner loans and grants designed for their needs. Where students have additional needs that are not met through this support system, exceptions are already provided under Regulation 14 of the Universal Credit Regulations 2013, enabling those people to claim universal credit.

However, universal credit is not intended to duplicate the support provided by the student support system. Furthermore, the sub-paragraph of Regulation 14 referenced in Amendment 93 provides an exception to the requirement that a person must not be receiving education to be entitled to universal credit. That is designed to support care leavers aged 18 to 21 who wish to catch up on education that they may have missed when they were younger, and to make welfare support available to them. We therefore feel it would be of benefit to maintain this regulation to continue to support this group of adults.

On Amendment 98, tabled by the noble Baroness, Lady Sherlock, and the point raised by the right reverend Prelate and the noble Baroness, Lady Janke, that it is not possible to take advantage of the lifetime skills guarantee while on universal credit, I point out more broadly that an adult undertaking a course up to level 3 may still be entitled to universal credit. This is provided that their course is compatible with work-related requirements agreed with their work coach. Where the course is work-related and will give the person the best chance of securing work, the work coach may consider it a suitable work preparation activity. In such cases, time spent on the courses will be deducted from the amount of time the person needs to spend looking for work.

To answer the questions from the noble Baroness, Lady Sherlock, on this principle, she is right in noting that those on universal credit should not restrict their availability for work in favour of the course that they are undertaking. They might need to be prepared to give up or, more suitably, adjust their course in order to take up work, for example by moving to a part-time basis. The noble Baroness’s second question was on the pilot that we introduced for full-time training to last up to 12 or 16 weeks. We will evaluate the impacts of that extension before making a decision on its future. As the noble Baroness noted, the pilot runs until the end of October and then we will look at its effects.

I hope I have set out that the Government are already taking steps to ensure that the benefit system works better for those who need to undertake training to improve their prospects of finding work. As such, I hope that the right reverend Prelate is able to withdraw his amendment and that the noble Baronesses will not move theirs when they are reached.

[The Lord Bishop of Durham [V]]

My Lords, I thank the Minister for her reply and thank all colleagues for their comments on all three of the amendments in this group. I am very grateful for all the insights that were offered. Thank you, Minister, for outlining where work is already under way. That is reassuring, and it is also reassuring to hear that the DfE and the DWP are working together to help mitigate barriers—I trust that will continue and deepen—and to hear of the greater flexibility already under trial.

On reflection, listening to the complexity with which the Minister cited sections, subsections and so on from different Acts to explain the system does not give me great confidence for the poor person trying to do a level 3 qualification and decide whether they can get some financial support through universal credit. I understand that the complexity of the law is a bit different from the way that a work coach might approach it, but she illustrated one of the difficulties for young and older people seeking to find their way through this system. At this stage, of course I will withdraw my amendment, but I hope that on Report there will be evidence of further joint working with the DWP and further consideration of where this might be eased for those for whom access to universal credit would make a complete difference to their upskilling for the future.

Amendment 90A withdrawn.

Moved by

[The Lord Bishop of Durham]

90B: After Clause 25, insert the following new Clause—
“Long-term funding review
(1) The Secretary of State must commission a panel of experts to review of the long-term funding for skills and post-16 education.(2) The panel must consider and make recommendations about—(a) resources available for different types of technical training, further education and higher education; (b) support for disadvantaged students and those with special education needs;(c) the impact of this Act on the long-term funding for skills and post-16 education.(3) The panel must conclude their review and make a report to the Secretary of State with their findings and recommendations.(4) Within the period of one year beginning with the day on which this Act is passed, the Secretary of State must lay the panel’s report before Parliament.”Member’s explanatory statement
This is a probing amendment, intended to draw out the Government’s plans to introduce a longer-term funding settlement for FE, as called for by the Education Select Committee, prefigured in the White Paper and signalled, as the direction of travel by recent increases in core FE funding, capital funding allocations and the longer term Lifelong Learning Entitlement.

[The Lord Bishop of Durham [V]]

My Lords, in its 2014 report Sense & Instability, City & Guilds made a wryly humorous and powerful case for much greater coherence, greater focus on building on success and greater attention to effective implementation in skills policy. With the White Paper and this Bill, along with associated developments such as T-levels and, we hope, far more radical change to apprenticeships, it is clear that the present Government are moving in that direction—a trajectory that we on these Benches fully support. This amendment seeks to make those policy ambitions more concrete by placing their funding arrangements on a statutory footing.

The goal of joining up the wider education and skills system so that it better meets society’s needs and gives people the skills they need is by no means easy to reach. It also requires that goal to be embedded in a long-term national strategy, most appropriately on something like a 10-year horizon. That strategy needs to sit across government, so that it can more imaginatively bring coherence across departments, as well as give greater stability at college, local and regional levels. Crucially, it requires a matching long-term funding settlement.

It is already possible to see how this kind of cross-departmental approach can bring huge benefits, for example in areas such as sustainability and the green agenda, tackling the recruitment needs of nursing and other allied professions, the major changes facing the automotive industry and the significance of digital skills—all of which require colleges to play a major part in delivering the required skills to individuals, employers and businesses. The need for such a longer-term strategic investment has been called for by the Education Select Committee, is an underlying strand in the White Paper and is being signalled by the additional funding already released to colleges, as well as the lifelong loan entitlement already announced. The Augar report also signalled the clear advantages of treating HE and FE in a more comprehensive way. We look to see how the department intends to see that continue to affect policy.

Clearly, much will depend on the comprehensive spending review and the continued impact of the pandemic on public spending. It would, however, be helpful to have an indication of how such a long-term strategy is being developed and, as the amendment indicates, how it will translate into concrete recommendations and thence long-term action. I beg to move.

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[Baroness Penn (Con) [V]]

I thank the right reverend Prelate the Bishop of Durham for tabling his amendment. Based on the substance of the debate we just had, I am not sure that there is much disagreement between the Government and noble Lords.

The Government are committed to transforming further education so that everyone can access high-value provision relevant to labour market needs and job opportunities. As noble Lords noted, we published the Skills for Jobs White Paper in January, setting out the future policy direction in this area.

Over the past two years, we have invested significantly in post-16 education. In the 2019 spending round, we increased 16 to 19 year-old further education funding by £400 million, followed by a further £291 million at the spending review 2020, so the direction of travel for policy has been matched by the direction of travel for funding.

In addition, we are investing £325 million of the £2.5 billion national skills fund this year to support adult skills and retraining. We are continuing our investment in the £1.3 billion adult education budget and the £2.5 billion apprenticeships budget. We are also continuing our £1.5 billion multiyear capital investment in the FE capital transformation fund. This funding is helping to deliver on the commitments made in the Skills for Jobs White Paper and the lifetime skills guarantee. Noble Lords have rightly made the point about longer-term funding. However, funding beyond 2021-22 will be considered as part of the wider spending review later this year.

In addition, we have launched an extensive government consultation on reforms to the further education funding and accountability system to address many of the points made by the noble Baroness, Lady Wilcox. This consultation is a first step towards a funding and accountability system that will maximise the potential of further education and help us to build back better. We want to use the consultation to start a dialogue with the sector, employers and other interested parties on how government funding can be administered more simply and effectively so that colleges and other providers can focus on supporting learners to develop the skills they need.

Similarly, in the Interim Conclusion of the Review of Post-18 Education and Funding, we committed to consulting on further reforms to higher education, including on future funding. We continue to consider the recommendations made in Sir Philip Augar’s report, supported by an independent panel, and will conclude that review in due course.

Furthermore, to address the points made by the noble Lord, Lord Addington, we want all children and young people, no matter their background or special educational needs or disabilities, to reach their full potential and receive the right support. That is why we are allocating significant increases in high-needs funding—an additional £780 million in 2020-21 compared with 2019-20 funding levels, and a further £730 million in 2021-22, bringing the total support for young people with the most complex needs to over £8 billion.

In addition, the national funding formula for 16 to 19 year-olds includes extra funding for disadvantaged students. This is provided to institutions specifically for students with low prior attainment or who live in the most disadvantaged areas. Last year, the Government allocated more than £530 million in disadvantage funding to enable colleges, schools and other providers to recruit, support and retain disadvantaged 16 to 19 year-olds and to support students with special educational needs and disabilities. We also apply disadvantage uplift through the element of the adult education budget distributed by the Education and Skills Funding Agency to provide increased funding for learners living in deprived areas. The adult education budget also provides funds to providers to help adults overcome barriers to learning. This includes learner support for those with financial hardship and learning support to meet the additional needs of learners with learning difficulties.

As outlined in the Skills for Jobs White Paper, we will ensure that those with special educational needs and disabilities continue to gain direct work-related skills alongside maths and English to increase their employability. The noble Lord will know that the cross-government SEND review is identifying the reforms needed to improve support for children and young people with SEND, including those in post-16 provision, by working with system experts to design a SEND system fit for the future drawing on the best evidence available.

The breadth of measures already in train—some noble Lords may say that is a long list—contain many elements of a concerted strategy that is moving in a consistent direction on the back of a number of reports and reviews that have sought to look at this on a long-term basis, whether we go back to the Sainsbury review or the more recent Augar review. While I completely agree with the need to take a long-term and strategic approach to this issue, I am not sure that a further review supported by an independent panel at this time is the right way to knit this all together rather than the progress that we are making on delivering the important outcomes of a number of those reviews already undertaken. I therefore hope that the right reverend Prelate is able to withdraw his amendment.

[The Lord Bishop of Durham [V]]

My Lords, I thank the noble Lord, Lord Addington. I knew I could rely on him to pull out the specifics around special educational needs and the reasons for the need for long-term support and development. I thank the noble Lord, Lord Aberdare, for his support for the amendment.

I am very grateful to the Minister for her long and full answer which I will need to read carefully in Hansard to get the full breadth of all she outlined. I thank those who work with her for producing such a comprehensive list at this point. I will need time to look at and reflect on the length of the answer to determine whether there is enough guarantee or whether to pursue the possibility of this being in the Bill.

I wish the Minister well and hope she will have a safe and joyous delivery and much joy in her new child and family life. I beg leave to withdraw the amendment.

Amendment 90B withdrawn.

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How to change? To address these issues, the Government should extend the system of loans and means-tested grants to support adults to be able to live while in relevant education and training. This could be restricted to be available only for the loan entitlement and lifetime skills guarantee. Work would have to be undertaken to align a system of grants and loans with the benefits system so that everyone can access the support and funding they need. The amendment would oblige the Secretary of State to amend the 2011 education regulations to ensure that those claiming the lifelong learning entitlement qualify as eligible students for support under the regulations.

[The Lord Bishop of Durham [V]]

My Lords, as the right reverend Prelate the Bishop of Leeds observed at Second Reading, colleges play a vital role in providing for students with specific learning difficulties and disabilities—the term widely used in further education as being broader than the “special educational needs” used elsewhere. This amendment seeks to address the discrepancy between the range and funding available to younger students with specific learning difficulties or disabilities, principally those in school settings or specialist institutions, and those applicable to students in FE. It seeks also to harmonise best practice across the FE and HE sectors, as the noble Lord, Lord Addington, outlined a few moments ago. It connects with the earlier Amendments 41 and 43 to 46, especially the requirement to review how well the education and training provided by an institution meet the needs of those with special educational needs in its area, and with Amendment 99, which places a specific duty on the Secretary of State to this end.

According to the Association of Colleges, students with SLDD make up 17% of the overall intake—a figure that rises to 23% of 16 to 18 year-old learners. In 2019-20, local authorities placed more than 64,000 students with education, health and care plans in colleges, 90% of them in general FE colleges and the rest in special institutions. However, the current funding regime does not provide support for those students in FE who do not have EHCPs to anything like the degree required. Yet the Bill makes no specific reference to such students, nor to those with other specific learning needs or disabilities—something to which the noble Lords, Lord Addington and Lord Lingfield, have drawn particular attention during earlier debates and, indeed, on many other occasions in this House.

I know from discussion with the Minister that this is an issue the Government are fully aware of and are eager to address. The Green Paper promised for the summer will, we hope, set out in more detail and in more concrete terms how a much higher degree of priority could be given to this diverse cohort of learners in both policy and funding terms, and how that might best be reflected, if not in the Bill then as government policy develops. It would be most useful if the Minister were able to indicate how she sees progress with the Green Paper and some definite assurance of the Government’s commitment to greater equity or parity in the treatment of older students with SEN in our colleges. I would also welcome a further opportunity for discussion with her, which might also advantageously include other Members of this House with a particular concern for such an important area of post-16 provision.

[The Deputy Chairman of Committees (Lord Brougham and Vaux) (Con)]

The noble Baroness, Lady Greengross, has withdrawn, so I call the noble Lord, Lord Aberdare.