Thursday 17th June 2021

(2 years, 10 months ago)

Lords Chamber
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Lord Shipley Portrait Lord Shipley (LD) [V]
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My Lords, I thank the noble Baroness, Lady Morris, for the opportunity to have this debate today and for her very persuasive explanation of the issues in her introduction.

I am genuinely puzzled by Treasury attitudes towards catch-up funding. I do not understand why the Treasury opposed the £15 billion levelling-up money recommended for the next three years, instead agreeing to only £1.4 billion for the first year, with the vague suggestion that the forthcoming spending review might allocate more. Why did the Treasury decide not to address the immediate and serious learning loss for so many disadvantaged school pupils? I wonder whether the Minister is in a position to tell us.

The National Audit Office has reported that £372 billion was spent by the Treasury on measures announced between February 2020 and March 2021 to counter the pandemic. That puts into context the comparatively small sum for educational catch-up funding refused by the Treasury. A difficulty with its decision is that it is not clear what expertise the Treasury has in matters of detailed educational policy. Perhaps it should consult the Education Policy Institute, which has published a fully costed recovery plan for schools amounting to £13.5 billion over three years, based on learning loss.

As it is, there will be extra spending of only £50 a pupil in England, so this summer 90,000 children transferring to secondary school will be significantly behind in basic literacy skills. Perhaps the Minister might be able to explain why catch-up funding seems so much higher in Northern Ireland, Scotland and Wales than in England. The Education Policy Institute reports that spending is around £200 per pupil in Northern Ireland and Scotland and around £300 per pupil in Wales, compared with only £50 in England.

There is a broader issue. The Government’s understanding of levelling up seems to relate primarily to infrastructure funding and investment in places, but surely levelling up also means creating opportunities to level up individuals who suffer disadvantage, many of whom live in those left-behind areas. In the end, success in levelling up will be led by people.

For example, take digital skills. In my home region, the north-east of England, the Office for National Statistics and Ofcom estimate that there are 55,000 families without access to a laptop, tablet or desktop computer at home. We must get all pupils connected from their homes.

The Institute for Fiscal Studies has estimated that there could be as much as £350 billion in lost lifetime earnings for this generation of schoolchildren, yet there would seem to be long-term benefits to the Treasury if catch-up spending was seen as capital investment because it could generate a return in future tax stream growth. As we have heard, too many children live below the poverty line, of whom half are in working households. Child poverty is rising, as we know from this morning’s announcement on increasing demand for free school meals.

The Joseph Rowntree Foundation has warned against a two-tier recovery: those who own their own homes and have a secure income should be fine, and those who rent and have insecure incomes may not be. In this context, the need for social housing is becoming increasingly acute, yet it does not seem to be a government priority. It should be.

In 2019, before the pandemic, pupils from the poorest backgrounds were more than a year behind their fellow pupils, and that gap has been widening because of the pandemic. This is worst disruption to education since the Second World War. Pupils need interventions to close that widening gap. This needs a catch-up recovery plan. For it to be achieved, a will, right across government, for it to happen is essential.