Social Mobility Committee Report

Lord Wallace of Saltaire Excerpts

Tuesday 20th December 2016 Lords Chamber

[Lord Wallace of Saltaire (LD)]

My Lords, it has been an excellent debate and I welcome the noble Lord, Lord Fraser, in his maiden speech. I came to the debate, having read this excellent report alongside the State of the Nation report from the Social Mobility Commission, from a concern about the “left behind” and a set of questions about why so many of the left behind whom I have canvassed over the years in Bradford and Leeds voted to leave the European Union as a sort of, “Sod off to the lot of you; we get nothing out of globalisation and nothing out of the state. We are fed up with the world as it is”.

I have to say that I share very strongly the views of the noble Lord, Lord Bird, that I am not sure social mobility is what we now need to talk about. My father-in-law is a classic example of the old social mobility. He was the youngest child of a mill-working family who got a scholarship to Bradford Grammar, became a schoolteacher, then an Army officer and then a university teacher. That was the old social mobility—one or two people out of each working class community got out and up.

That is not what we want any longer. What we want is to teach life skills to everyone, including the left behind. We need to recognise that these are not the undeserving poor—a phrase that, as the right reverend Prelate rightly said, is creeping back into our discourse these days. They are part of our national community and our citizens, and we have to make sure that life chances for all in a national community which consists in its turn of strong local communities is what we are about. There will be some social mobility. We have to tell the people at the top, incidentally, that they also belong to the national community and have obligations to the national community, starting with paying tax. That is the different discourse that we need to talk about.

A number of other reports have been mentioned in this debate which are highly relevant—the State of the North and Growing Up North reports and the Joseph Rowntree Foundation studies. We will be debating some of these—on 12 January we have a Question on the State of the North report—and I hope this House will continue actively to follow the debate. In terms of sessional committees, I am aware that there are two proposals to look at the content of citizenship as such, and I think it right that we ought to look at some other aspects of life chances because these are all fundamental issues.

There are four key points in the whole transition area. I have been most concerned with two to five year-olds. Children in north Bradford arrive at school already a long way behind their fellows from the middle classes in literacy, social skills, numeracy—the lot. If you have lost out by the time you are five, you start structurally behind. Then there is the transition from primary to secondary school. I visited a summer school being run in north Bradford this summer by local Liberal Democrats, dealing with 10 to 11 year-olds from vulnerable families who do not get regularly fed at home. They had not learned to read or count properly in their primary schools and there is a lot of evidence that that is the point at which aspiration and ambition begin to drop off—as they go to secondary school—if we are not careful.

Then there is the transition from school to work which this excellent report is about. We must not forget—maybe this is a subject for another sessional committee—the very difficult transition from a first career to a second. People in their 40s and 50s will lose their jobs because of technical change but will be expected to go on working until they are 70 in our new world. They will need the opportunity for part-time education and retraining—all the things they are now dropping. The number of people in part-time education has dropped quite radically in the last three or four years. I had some interesting figures from the Open University the other day and it is something to which we absolutely need to pay more attention.

My concern here is with intermediate skills in particular. I noted paragraph 73 of the report, which says:

“The most recent UK labour market survey found that ‘Jobs with intermediate skills demands tend to have high shares of skills shortages. These include skilled trades’ roles in manufacturing, construction, wholesale and retail, and hotels and restaurants. This partly reflects longstanding shortages of skilled construction trades workers such as plumbers, electricians and carpenters, and skilled chefs within the hotel and catering industries’”.

That is a scandal, and we have come to rely on immigrants to fill the gap. I tried to interest Migration Watch in looking at the linkage because I am conscious that the pull factor in immigration, particularly from eastern Europe, is precisely in the intermediate skill areas—above all in construction and building.

The apprenticeship scheme I know best is the Bradford social housing association Incommunities, which now trains 10 apprentices a year. Last year it had only 400 applications; the previous year it had 500 applications. That is 40 applicants per place, compared to Oxford and Cambridge, which have six to eight applicants a place. That is absurd. The figures on the overall apprenticeship scheme in the report suggest that in 2014-15 there were 1.5 million applications for just under 200,000 apprenticeships. That is an 8:1 ratio, which is higher than the ratio of applications to most Russell group universities.

It shows that the demand is there from people who want to have apprenticeships, but the supply is not there. We know from the extent to which companies are recruiting directly from abroad that the demand is there. It is not quite such an hourglass. Agencies do recruit from Slovakia and Poland for builders, long-distance truck drivers and for nurses, chefs, and others. There are some interesting questions about why companies find it cheaper and easier to recruit from abroad than to train their own. Incidentally, I was told this morning that in British universities 20% of technicians are from abroad—above all from eastern Europe. That also suggests that universities should be looking at how much they train the people they require for their intermediate skills—perhaps paying more attention themselves.

My anecdotal impression from across Yorkshire is that companies have been finding it much easier to recruit people already trained abroad than to put the effort into training and motivating people from this country. I am sorry that Migration Watch has not taken this up because it does not fit its anti-European narrative. This applies to the public sector as well as the private sector. I am very grateful that, when I was ill in June, Portuguese nurses in St Thomas’ looked after me very well and Polish physios in St George’s did my rehabilitation afterwards. But there were not many British-trained nurses there. The Government’s new scheme for training nurses has lifted the cap, which left us structurally short of trained nurses, and has imposed loans instead, which has apparently led to a reduction in young British people applying for nursing.

The report talks about the underlying bias in the English education system—the cultural preference for arts and finance as against engineering and crafts. That is not new. When I first became a university lecturer in Manchester, I remember the dean of my faculty telling me how he was trying to close down our evening degree because it was only really for teachers and was not what an international university should be doing. Since I had spent five years at an American university which had several Nobel Prize winners on its staff and a department of home economics and a school of hotel administration, that seemed a little odd to me—but it is there in too many of our universities. Happily, some few of our new universities bridge the gap between the academic and the vocational.

As several noble Lords said, we neglect our FE colleges and we are squeezing the funding for them further. The noble Baroness, Lady Wolf, is quoted in the report as suggesting that we may be facing a “downward spiral” in the ability of the further education sector, which would be disastrous for all these people who need to train, and for the secondary schools, some of which, certainly in my part of West Yorkshire, rely on their partnership with FE colleges to offer the spread of courses in the sixth form that they want to offer.

Some of this is down not just to the Government but to corporate responsibility. We have to say to companies that it is their responsibility to train our own—to train young people. I am horrified by the cynicism that I have heard in West Yorkshire about the new apprenticeship scheme: that it will be used by large companies to rebadge their existing management training rather than bringing in new youngsters and giving them new skills. I hope that that is not the case, but the cynicism is out there, and I hope that the Government are aware of it—that it will be about quantity and rebadging and there will not be much that is new or that improves skills or, crucially, brings in new young people from the left-behind and equips them with the skills that they need.

The report is very valuable. The Government have provided, as all noble Lords have said, an extremely inadequate answer. They are a Government for whom reinventing grammar schools is a greater priority than funding secondary schools, particularly in their sixth form, or thinking about the future of FE colleagues. This does not provide the right incentives. What we need is a partnership between schools, FE colleges and companies, large and small. That, I hope, would provide an answer to our problem of the structural skills shortages that leave so many of our youngsters behind.