Technical and Further Education Bill

Lord Storey Excerpts

2nd reading (Hansard): House of Lords
Wednesday 1st February 2017 Lords Chamber

[Lord Storey (LD)]

My Lords, I welcome this thin Bill. I have always been concerned about how we regard technical and vocational education in this country; we are obsessed with young people having to fulfil an academic route. It is almost akin to failure if you do not succeed academically. I am not keen on the word “vocational”, and I do not think parents understand what it means. It is like saying, “I am doing it for love, not money”. Teaching was a vocation. I am pleased that the word is not being used.

If we are to develop a country which provides first-class skills, we need to enhance the status of technical education. Like the noble Lord, Lord Watson, I reflected—a word that was apparently much in use during the Higher Education and Research Bill—that we had 69 speakers at Second Reading for that Bill, while for the Technical and Further Education Bill we have 20. Does that not say something about our regard for this subject?

The Secretary of State said at Second Reading—this is important—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 less academic route, or perhaps one that plays to individual strengths, talents and interests”.—[Official Report, 14/11/16; col. 41.]

The key to all this is not only providing a first-class academic, technical or further education but ensuring that young people know what the routes are, what they can do and what careers they might choose. Mike Tomlinson said at a recent Edge Foundation meeting on the EBacc that careers education is at best “pretty b….. awful”, and he is absolutely right. We pretend that we do careers education, but we do not: “There is a cupboard with some books in”, “Here is the latest government initiative”, and “here is what work we might do”. These are young people whose futures are in our hands so we have a responsibility to make sure that first-class technical education is available to them. If we want technical and further education to work, we must have effective careers guidance.

I understand that the Government are shortly going to announce their strategy. That is good, but any strategy, policy or provision is effective only if there is some regulatory support behind it, whether that is through Ofsted inspections, accreditation or a kitemark; nothing less will do. My own view is that a school, whether it is an academy, a maintained or a free school, should be described as “outstanding” or “good” only if its careers education is up to scratch.

The other problem we face with careers education is financial. The head teachers of maintained schools, academies and free schools are anxious to hold on to their students. They want them to move on into the sixth form because they are each worth a sum of money. They do not want them to go off to one of the UTCs of the noble Lord, Lord Baker, or an FE college because they will then be lost. Even if students are struggling academically the cry is, “Keep them in the sixth form. Let them repeat a subject and try again”. That is no way to deal with young people. We need to think outside the box about this. Why, for example, cannot UTCs and FE colleges have the right to go into schools and show students what is on offer? If schools are not prepared to do this in terms of careers advice, the colleges and UTCs should do it themselves.

Some people have referred to this legislation rather sarcastically as the “insolvency Bill”. I do not particularly go along with that, but there are issues with insolvency, some of which we will no doubt come to in various amendments. Again as the noble Lord, Lord Watson, has just said, if, God forbid, an establishment becomes insolvent, we need to make sure that protections are in place in terms of the real estate and the property, as well as for students and for courses. If a student in Northumberland is travelling 20 or 30 miles to their further education college—there is in this an issue about transport costs, and so on—and the course suddenly stops because of insolvency, what is the student to do, for goodness’ sake? We need to make sure that students and courses are supported and protected. Some colleges are already having difficulties regarding the banks’ willingness to lend to them and pension funds tightening their regulations because they are worried, so we need to make sure that those issues are addressed.

The noble Baroness, Lady Wolf, said in her excellent report, Review of Vocational Education, that at least 350,000 young people have been let down by courses which have,

“little or no labour market value”.

Young people are taking courses that are of little or no value in the labour market. I can remember when we got objective 1 funding in my own city of Liverpool. We filled the FE colleges with courses that were not relevant to our skills needs, such as hairdressing and beautician work. Both were fantastic, but actually they did not help the economy of the city one iota. However, the college was able to attract students because for some reason there was a certain cachet about taking a hairdressing or beautician’s course. As the Wolf report says, we need to make sure that the courses on offer are relevant.

We welcome the Institute for Apprenticeships and Technical Education and we are delighted that the Government have listened and included FE in the institute’s role. I had not realised, and was quite surprised to learn, that we have already announced the membership of the institute. I thought we would have had to wait for the Bill to pass. I am not sure how this happens. I am delighted that we have included two people from further education.

That is good news. The Minister looks puzzled, but I was told this by someone this morning. The noble Lord, Lord Hunt, indicates that I am right. Although I might be puzzled as to why this has been set up ahead of the Bill, I do not mind because we have included two people from the further education sector. That is good. I hope that that same principle will apply to the implementation routes and that we will include the FE sector in those as well. We need to understand how bridging between routes will be achieved. No doubt we will also want to understand in Committee how the transition year will work in practice, and where work experience might fit into this.

We constantly talk about social mobility—rightly so. We have talked about our world-class education system. Our Prime Minister has talked about a country that works for everyone. If a student goes into higher education between the ages of 18 and 21, their family gets tax credits. They get free prescriptions, free dental care, free eye tests, et cetera. When a young person— often from a disadvantaged background—takes an apprenticeship, which will of course include an element of training so in a sense they are still learning, the family loses out on tax credits. That is often a major disincentive for young people, particularly those from deprived backgrounds, to take up the apprenticeship. I hope the Minister will look at how we can support those families. We are talking about people we really want to attract. We want to get them on the road to employment.

The needs of the Cornish economy are different from those of Liverpool’s, so I welcome the fact that we are devolving some of the authority to a local level. Part 3 includes a measure to amend existing legislation to ensure that we devolve further education functions and adult education budgets to the combined authorities, if and when they are established. But as the National Audit Office reported, there is a growing financial crisis in further education. Indeed, it was its report that recommended the creation of an insolvency regime. We need another “I”—investment.

Another issue that we will explore in Committee is that if a young person is training on the job—doing their apprenticeships and getting their training at the same time, at their place of work—we need to ensure the quality of the training provided. From speaking to the Government about that, we have been told that Ofsted will probably do sample inspections. We need to be careful that this is absolutely right.

To conclude, I quote again the Secretary of State for Education, who said at Commons Second Reading:

“The Government want to build on what exists in the further and technical education sector and steadily create a gold standard of technical education … that students can be confident that … they will be building towards a successful career”.—[Official Report, Commons, 14/11/16; col. 43.]


I think we all say “Hear, hear” to that, but it requires the Government to listen and to commitment the resources.