Vocational Qualifications Day

Maria Miller Excerpts

Tuesday 9th June 2015 Westminster Hall

[Neil Carmichael]

I thank the hon. Gentleman for that intervention and for appreciating my success in securing the debate. The key point is really the one that I made to the hon. Member for Huddersfield (Mr Sheerman). There are opportunities for FE colleges, working with business and working in their communities, to develop novel and interesting ideas about getting funding from sources other than the ones that hon. Members are talking about. That is what we should be thinking about, and I will articulate more thoughts about it as I progress through my speech.

[Mrs Maria Miller (Basingstoke) (Con)]

I join in the expressions of support for the debate that my hon. Friend has secured. I hear what other hon. Members are saying with regard to funding in further education, but does my hon. Friend agree that the Government’s commitment in this area is clear in the funding that has been put in for apprenticeships, and the success that the Government have had in increasing the numbers of people securing apprenticeships in our communities?

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[Mrs Maria Miller (Basingstoke) (Con)]

It is a great pleasure to serve under your chairmanship, Sir Roger, in this interesting debate. It is also a great pleasure to follow the hon. Member for Scunthorpe (Nic Dakin). He is absolutely right that awareness of further education qualifications is one of our key challenges, and I will discuss that in my contribution. However, the issue is not just about awareness; it is also about attitudes. They are part of the key to finding the solution.

I congratulate my hon. Friend the Member for Stroud (Neil Carmichael) on securing this debate and for giving us all the opportunity to recognise the eighth annual national Vocational Qualifications Day, as well as the organisers of the day; it always takes a great deal of organisation to ensure that such days have longevity. My hon. Friend put his finger on it when he spoke about productivity. It is one of this Government’s greatest challenges to ensure that Britain is fighting fit for an increasingly competitive global marketplace.

Today, in the main Chamber, right hon. and hon. Members might be discussing the future of the EU, but I am sure that many Members would agree with me that we should be looking beyond the EU to consider what trade deals we can do with other countries to secure the future of the United Kingdom. Productivity—ensuring that we are as competitive as any other country in the world—will certainly be one of our biggest challenges. Although the Government’s investment in infrastructure such as high-street broadband, railways and roads are all important, the key to productivity is skills: ensuring that our workforce is as skilled as it can be and that every single citizen can contribute to the best of their ability, making us a successful nation. I congratulate my hon. Friend on securing this debate and I look forward to hearing other Members’ contributions.

[Mr Sheerman]

The right hon. Lady is making a brilliant speech, but does she accept that this conundrum of the lack of productivity in our country, which we face across parties, is often related to management—a skill that we do not talk about enough? A recent report shows that there are a lot of highly skilled people in our nation, but they are poorly managed. Does she agree?

[Mrs Miller]

The hon. Gentleman makes his own point. I am not sure. If we look at the analysis of productivity, we see that among the most important factors are transport systems. As a result of woeful investment in recent decades, this Government are running to catch up with some of the problems that we have inherited. I am sure that the hon. Gentleman makes an important point, but we should not forget that productivity is not just about skills; it is about the ability to export and to move goods around a country. I congratulate the Government on how much support they are giving transport systems, some of which are woefully unable to relieve congestion. We should not forget that productivity is not simply a UK problem but a problem of all mature markets, so we should not beat ourselves up too much.

Before moving to my own comments, I want to respond to what my hon. Friend the Member for Stroud said about the festival of manufacturing and engineering in his constituency—an idea that I think all of us will want to emulate. What a great way to highlight to young people the job opportunities available in their community and the importance of vocational qualifications to securing such jobs! It is a fascinating idea that I am sure we will all want to consider in more detail.

My constituency understands further education, primarily as a result of incredibly strong leadership in FE at Basingstoke College of Technology. I have had the privilege of introducing Anthony Bravo, the principal of that college, to my hon. Friend the Minister, who was extremely generous with his time, in order to discuss some of our ideas for FE, particularly apprenticeships in Basingstoke. Business responds well to such strong leadership. We have engaged businesses in Basingstoke in further education and in valuing its role, particularly apprenticeships, in a way that has impressed me. I also echo the point about the role of local enterprise partnerships in providing such leadership. We in my constituency are fortunate to have one of the best LEPs in the country: the M3 LEP, which has implemented a special management position to consider apprenticeships and how we can maximise them in our area, as they are critical to business growth.

I will make three short observations on the future of vocational education and how we can make it even more vibrant, and I will be interested to hear the Minister’s response. The first was mentioned by the hon. Member for Stretford and Urmston (Kate Green) in her intervention earlier. It is important to support a positive attitude to vocational qualifications and ensure that schools and parents, as has been mentioned, understand what role such qualifications can play in their children’s educational careers.

Both my grandfathers were tool room workers. There was no way to work one’s way up the ladder 60 or 70 years ago without embracing the idea of apprenticeships. For my family, it was a huge way to move forward. We talk about social mobility; apprenticeships were critical to families such as mine in the black country all those years ago.

In the drive to increase university participation—I was incredibly fortunate to be part of it, as one of the first people in my family to go to university; the London School of Economics, a fabulous university, set me up for life—we have, in many ways, marginalised the further education that my grandfathers’ generation so valued. I urge the Minister to share with us, perhaps today, how he anticipates the Government working with not only schools, but parents, to encourage them to understand how vocational qualifications can fit their children with the right skills for life and help in retraining us all, as we work for much longer and have one, two or three different careers.

My second point relates to the importance of building business into a vocational educational approach. The reason why we in Basingstoke have been so successful in driving forward apprenticeships is our links with local businesses. My local college has taken that to such a degree that it is developing a work-based university centre to deliver degree-level apprenticeships in digital engineering and the construction industries. It has an employer advisory board, which includes the likes of Sony and the Atomic Weapons Establishment—I am fortunate to represent one of the top 10 centres for employment in the south-east, and many such household names are local employers. I applaud the work that Anthony Bravo is doing on the degree-level apprenticeship, because such developments can help to build further education’s credentials.

My third point picks up on some of the funding concerns that other Members have raised. If we want to encourage people to see further education as a viable option, they need the confidence that the funding is there. On a slightly different note, the Minister will remember the conversation he had with me and Anthony Bravo about the funding issues around apprenticeships, and I hope he has been able to make progress in removing some of the uncertainty, which, as we discussed, was creating delays in expanding the number of apprenticeships.

In conclusion, education is all about fulfilling the potential of every citizen in the country. It is the reason why I became a Member of Parliament, and why I am fascinated by the issues we are discussing today. Vocational qualifications have a huge part to play in getting young people on to a career ladder and in helping us all to stay in a lifelong programme of employment. The country faces a productivity gap, which we need to address head on, and although infrastructure investment and better ways of trading with other nations are important, skills are central. The Minister knows that and in him we have an effective champion in the Government. I look forward to hearing his thoughts.

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[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

It is a privilege to serve under your chairmanship, Sir Roger. I, too, want to start by congratulating the hon. Member for Stroud (Neil Carmichael) on securing the debate. I was of course very disappointed at his re-election to the House, but I notice that he is back with an increased majority; that is a testament to the work that he has put in, in his constituency. He reminded us of some of the reasons for his re-election by making an excellent speech in an excellent debate.

I want to add a word of praise and congratulation to the organisers of Vocational Qualifications Day. The wisdom of the hon. Member for Stroud in securing the debate has been much in evidence as we have listened to a wide range of excellent speeches. It can be seen, at the beginning of the present Parliament, that there is great interest in this field of policy, and a shared agenda across the House for strengthening it and moving it forward. We all know how important it is to our economic future.

I also congratulate the Minister. I am disappointed that he is doing the job and I am not; but there is no better member of his party to serve in that role. He has taken a huge interest in the subject and has bothered to spend a great deal of time in colleges, talking to students, teachers and principals. I hope that he will bring energy to the brief, and maintain and sustain it in the months and hopefully years ahead. What this field of policy needs above anything else is stability, and I very much hope that he will provide that. For my part, I will provide the Minister with all the support and scrutiny that he has enjoyed over the last year. When he does well, he will get hymns of praise, and when he does badly he will get a forensic verbal assault here and elsewhere. I hope that the hymns of praise greatly outnumber the words of verbal assault.

However, I will start where the hon. Member for Stroud started: I too welcome the fact that, rather belatedly, the Chancellor has woken up to the grave productivity crisis that our country confronts. The truth is that we have the worst productivity record in the G7. There is something like a 20% productivity gap between ourselves and our major competitors, and it is not getting better; it is getting worse. We have to ask ourselves what it is about this country today that means that despite our long history of genius and innovation on these islands, what the rest of the G7 finishes making on a Thursday afternoon takes us until the end of Friday to get done. If we want to break out of the cost-of-living challenges that many families still confront, we have to earn more as a country, and skills are absolutely at the core of that problem.

I look forward to the Chancellor putting his money where his mouth is in the Budget later in the parliamentary Session, because of course setting out a Budget that seeks to raise UK productivity is incompatible with further withdrawing money from skills and from the Minister’s domain.

[Mrs Miller]

I know that the right hon. Gentleman is not implying that workers in this country do not work as hard as workers elsewhere. Perhaps he will agree that, when considering productivity, he cannot ignore either the figures on congestion on our roads or the need for us to trade more broadly as a nation.

[Liam Byrne]

That is absolutely right. The right hon. Lady helpfully points to the fact that global competition is intensifying, and if we are to improve our performance in trade markets in which we have been losing market share during the last four or five years, we will have to raise our game. Skills are absolutely at the core of that, because there is a risk, given the pattern of economic development over that time, that our country is becoming a cheap labour economy. About 80% to 85% of the jobs that have been created have been low-paid jobs, which is a problem if we are to earn our way out of the cost of living crisis that we are trapped in. There are not necessarily the column inches devoted to this issue that there should be; The Economist has done a good job, as has Nigel Nelson of the Sunday People, in highlighting the risk associated with this change.

We have to look hard at the competition that we are up against. When the programme for international student assessment results in Shanghai are so much better than ours, when China is about to spend more on science than the whole of Europe put together and when four out of the top 10 global tech firms are Asian, we can see how the battle for good jobs will intensify over the next 10 years, and the risk is that we will lose it. We will not beat the global competition without a much bigger and bolder plan to improve the skills of our country in the years ahead.

Of course, that situation has particular consequences for not only families but young people. All of us now serve the younger generation, which is the first generation in a century that is worse off than the generation that came before it. Social mobility is, in effect, going into reverse; none of us can be proud of that, and all of us must want to alter it. Young people in particular desperately need breakthroughs in this policy area, and I know that the Minister is absolutely focused on it, like a laser.

I hope that the Minister will use this debate and this great day to begin telling us a bit about an ambitious vision for system reform—reform that is evolutionary, perhaps, but revolutionary in scale. The truth is that although we talk about a system of technical education in this country, we do not have a system worthy of the name. We have a piecemeal, ad hoc system of institutions, exams and funding entitlements that are yoked together, often in a very rudimentary way. That does not allow young people from the age of 14 a clear line of sight for a technical education career that goes up to the degree level of skill, which many hon. Members have talked about, celebrated and underlined as being critically important.

In his speech, my hon. Friend the Member for Scunthorpe (Nic Dakin) forensically exposed the inadequacies of the current system. If I might be so bold, I will throw a few suggestions on to the pile that hon. Members, particularly the hon. Member for Stroud, have given us this afternoon. In our schools, there has to be a bigger and bolder effort to expose more 14-year-olds to technical education. That is why I support many of the reforms pioneered by Lord Baker. I hope that the Minister, with his colleagues at the Department for Education, can continue to lobby for practical and empirical subjects.

I hope that we make serious progress in building a stronger careers service during this Parliament. I think it was the CBI, of all organisations, that said before the election that the careers service in this country was “on life support”. That situation will not help us to compete with the global competition that we now confront. Although small amounts of money were offered before the election, the Minister will know, and in his heart believe, that that was not a solution to the problem, given its scale. We need a radical increase in apprenticeships; I am glad that there is all-party consensus on that. The Minister will know that we intend to focus constantly on ensuring that quantity does not come at the expense of quality. Quite simply, there is no point in putting our people on to programmes that do not genuinely equip them with the skills to compete globally. I know that he, too, cares about that issue passionately.

However, the bigger and more complicated question is about the whole system of qualifications, entitlements and funding arrangements for our constituents who are aged between 18 and 24. At the moment, there is not a smooth pathway on a technical education track for our constituents in that age range. There are entitlements to maintenance, which stop at the age of 18 but restart at the age of 24, with the availability of advanced learning loans. The funding entitlements for colleges differ according to whether their students are under 18, between 18 and 24, or over 24. There is a quagmire of qualifications. There are too many qualifications; they are too disjointed; they are delivered at far more cost in England than in Scotland; and, frankly, the whole field of technical qualifications needs a good root-and-branch review. I know that there has already been some simplification of the system, but we have much further to go.

Crucially, there must be a revolution in the collaboration between further education and higher education. Hon. Members made some very good contributions this afternoon about the need to join those systems up. It is not good enough that just 2% or 3% of apprentices go on to degree-level skills; we will not compete globally if that situation continues. There have been some welcome advances, which I know the Minister helped to drive through before the election, but there must be a revolution in the number of apprentices going on to degree-level skills. Apprenticeships should be a route to the top in the same way that doing A-levels and going to university is. At the moment, I believe that many people are not taking the apprenticeship route because they know that the ladder only goes so far up the wall. We want an apprenticeship to be a fast track to the top, in the same way that a degree at a good university is.

I know that all of this work will be detailed and involved, and there are few better minds than that of the Minister to puzzle all of it through. However, his bigger challenge will of course be the funding settlement that he will have to contend with. As the last Government put up our national debt to £1.5 trillion, this Government will have to deliver some savings. I hope that they will also sensibly raise some taxes from those who can afford to pay just a little bit more. The Budget will tell us more.

If we are to close the productivity gap that our country confronts, we must support technical education in a radically new way. My hon. Friend the Member for Scunthorpe made an excellent point when he sounded the alarm about the 24% cut in adult skills delivered in-year.

During the many visits he made before the election, the Minister will have been lobbied about some colleges now being unviable. I know this because I visited many colleges after him. Some colleges are at risk of falling over without urgent action this year. On top of that, a third of the cuts announced by the Chancellor last week are set to hit the Department for Business, Innovation and Skills and the Department for Education. Many colleges are already on the brink. The Minister will have to move fast with his colleagues at the Treasury to ensure that colleges do not fall over and become unviable, despite the Chancellor saying that we need to fix the productivity gap, and many in this House saying, “Look, technical education is key to this.”

The Minister will also want to, or have to, consider other funding pressures, including the performance of advanced learning loans for those over 24, because they are vastly underperforming at the moment. There has to be a sevenfold increase in the number of people taking up these loans if the budget is to be consumed. I want to put on record my thanks and congratulations to the Association of Colleges and the National Institute of Adult Continuing Education for their work in consistently highlighting this risk.

I hope that the Minister shows us a little bit of leg this afternoon as regards his plans for system reform. We famously designed a wonderful system of technical education for the new Germany after the war, but forgot to implement a similar blueprint for our own country. Perhaps it is time to move on and introduce system changes of our own. I hope that the Minister can tell us about those changes. I hope that he can say a bit more about his ambitious plans to devolve control over skills to local authorities, and particularly city regions. Many people throughout the country told me that they would not have had to contend with a 24% cut to the adult skills budget this year if they had just been given the budget they were entitled to and were allowed to make decisions about priorities much more locally.

I hope that the Minister tells about his conversations with the new Minister for Universities and Science, whose father was rather unfair in attacking his lack of exposure to science as a young man. I have always found that new Minister a thoughtful, clever and progressive individual. I hope that the Minister here today and the new Minister in BIS will make a good double act, because, heaven knows, there is an awful lot of work to do.