Technical and Vocational Education

Matt Hancock Excerpts

Wednesday 9th July 2014 Commons Chamber

[Tristram Hunt]

We have a proud record of tackling unemployment and youth unemployment. We championed the delivery of young people into work with a future jobs fund which this Government scrapped when they came into office. As this week’s CBI—

[The Minister for Skills and Enterprise (Matthew Hancock)]

rose—

[Tristram Hunt]

I would have thought the Minister would want to listen to what the CBI has to say. This week’s CBI survey found that 58% of businesses are not confident that they will have enough highly skilled staff available for their future needs, which is up from 46% last year. [Interruption.] I know the Under-Secretary of State for Education, the hon. Member for South West Norfolk (Elizabeth Truss) is keen on maths, so let me tell her that that is a rise of 12% in a single year under this Government. The Government’s focus has been on tinkering with the curriculum, undermining teaching and introducing a mishandled free schools policy.

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[Tristram Hunt]

My hon. Friend is exactly right.

Talking of political divisions, the Government’s focus, as we have seen, has been not on the vocational demands of our education system but on tinkering with the curriculum and a free schools policy. At the Skills Minister’s favourite school, the Swedish private equity free school IES Breckland, which he has supported so much, Ofsted discovered “inadequate” teaching, poor behaviour and declining student literacy levels. The Swedish for-profit model that the Government were so keen to import has been exposed and discredited in the Skills Minister’s own backyard—responsible for one of the biggest falls in educational standards anywhere in the world.

[Matthew Hancock]

I am grateful that the hon. Gentleman broke away from his overly partisan tone when mentioning the Secretary of State, who apologises for not being able to be here. My right hon. Friend made it clear that if the Labour party had made this the first and most important debate this afternoon, he would have been here at the Labour party’s request. He would have liked to have been here, but the Labour party chose to make this the second debate, and therefore he cannot, and so I shall be responding for the Government.

[Tristram Hunt]

The record will note that the Skills Minister did not want to defend IES Breckland and the free schools policy.

We are beginning to see a widening attainment gap, but it is on vocational education where the Government’s negligence hits hardest. The Government are failing young people who want a gold-standard technical education, and they are not securing our skills base.

Let us be clear about the Government’s record. The number of apprenticeship starts by under-25s has fallen by 11,324 since 2010. The number of STEM apprenticeships for 16 to 24-year-olds has fallen by more than 7,000 since 2010. Too many apprentices in England are existing employees, not new job entrants, and too many are over 25. Let us add to that the Government’s scandalous destruction of careers advice.

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[Tristram Hunt]

I think, Madam Deputy Speaker, that a national baccalaureate might enable the Minister to learn about character, self-control and resilience in these kinds of situations. If he wants to pursue life-long learning, that is an ambition Labour Members absolutely pursue.

[Matthew Hancock]

rose—

[Tristram Hunt]

I am trying to conclude.

The culmination of our vision for young people on a technical or vocational pathway is our new plan, announced by the Leader of the Opposition yesterday, for technical degrees. These courses will be designed by some of our best universities and our leading employers, teaching people the skills they need to prosper in the new economy. Currently, just 2% of apprenticeships are available at degree level. For the first time, those who have excelled in vocational education and training—those who have gained a first-rate tech bacc and completed a level 3 apprenticeship—will be able to take their aspirations further. For the first time, young people will have the chance to earn while they learn at university, with a degree that provides a clear route to a high-skilled technical or professional career.

At the next general election, we have a choice between a Labour party determined to equip an outward-facing Britain with the skills and education it needs to succeed and, on the other hand, coalition parties tinkering with the curriculum here and there, increasing the number of unqualified teachers, and promoting for-profit schooling. It is a choice between more young engineers and more IES Breckland free schools; between a modern curriculum focused on thinking and doing, building character and creativity and harnessing the aspirations of all young people, and the narrow exam-factory model of recent years; and between a low-wage, low-skill, business-as-usual race to the bottom and a high-skill, high-innovation economy that works for all. Only one party is offering this country an economy and an education system fit for the punishing demands of the 21st century. I commend the motion to the House.

[The Minister for Skills and Enterprise (Matthew Hancock)]

We heard a regrettable tone from Labour in opening this debate. Before going into the details of the radical reforms of vocational education that we are undertaking to promote apprenticeships and to strengthen vocational qualifications, it is worth going through a couple of points of detail.

The hon. Member for Stoke-on-Trent Central (Tristram Hunt) stated that the number of apprenticeships for those under 25 has fallen by 11,000 since 2010. He refused to take my intervention, probably because he knew I was going to point out that figures show that since 2010 the number of apprenticeships for those under 25 has risen by 49,000. He mentioned careers advice but forgot to mention the new National Careers Service, which has 3,700 careers advisers who have in the past year delivered 1 million pieces of careers advice. He did not even know that education is a devolved area of policy and talked about education across the UK. On the withering away of skills in science, according to Ofsted that is precisely the legacy we were left by the Labour party. On degree-level apprenticeships—I take this one as a personal compliment—he was critical of their representing only 2% of apprenticeships. I introduced degree-level apprenticeships this time last year, and under Labour there were no degree-level apprenticeships. Perhaps now we know why the hon. Member for Streatham (Mr Umunna) left the Chamber halfway through the opening speech—it was to go and cross off another name from his list of leadership challengers.

[Mr Rob Wilson (Reading East) (Con)]

I thank my hon. Friend for giving way, because the shadow Education Secretary would not do so when I tried very hard to get in earlier on. I listened very carefully to the shadow Education Secretary and heard a lot of top-down stuff, but very little about business. Why would he be so afraid of talking about business? Is it because his party is the anti-business party?

[Matthew Hancock]

It is certainly true that Labour is the anti-business party, but it is much more worrying that the Labour party seems to oppose our reforms to bring the world of education and the world of work closer together. We are undertaking the most radical reform of vocational education in Britain for a generation. We have swept aside thousands of qualifications that employers did not value and replaced them with clear tech awards, tech levels and the tech bacc, which the hon. Member for Stoke-on-Trent Central mentioned and which starts in September. We have boosted apprenticeship numbers—there are record numbers under this Government—and introduced higher-quality apprenticeships that reflect the modern economy, and strengthened the requirements for English and maths.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

I have raised this point before, but I think it would be useful to do so again. The Minister is currently consulting on changing the apprenticeship rules, and 400 businesses, including small and medium-sized enterprises in the north-west, have responded by raising very serious concerns about the future for apprenticeships under his proposals. Why will he not address their legitimate concerns and ensure we can have those apprenticeships in the future?

[Matthew Hancock]

The hon. Lady is absolutely right that we have to ensure that the reformed apprenticeships are super simple, especially for small businesses, but representatives of 500,000 businesses wrote in support of the principle of the reforms and that is why we are going ahead with them.

The reforms are starting to pay off. Standards are starting to rise. Youth unemployment, which rose 40% in the first decade of this century under the Labour Government, is falling—it is down 10% over the past year—and is lower than it was at the election.

[Mr Newmark]

I would almost like two bites of the cherry by asking a question about youth unemployment as well, but I will not do so. The shadow Education Secretary said that our performance on vocational courses was lamentable, but is my hon. Friend aware that the proportion of 16 to 19-year-olds studying at least one of the post-16 level 3 vocational courses available—[Interruption.] I am actually delivering the facts, which might be helpful. Is my hon. Friend aware that that proportion rose from 100,000 under Labour to 185,000 under this Government?

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[Matthew Hancock]

I will have to add that to my list of erroneous facts from the Labour party that need sorting out.

[Mr John Denham (Southampton, Itchen) (Lab)]

Does not a more measured view of the history tell us the following: in 1997, fewer than 20,000 people completed apprenticeships, but by the time the previous Labour Government had finished, 285,000 people were starting apprenticeships each year? That number has continued to grow, but there are legitimate concerns about an increasing number of late starts and a smaller proportion of youthful starts, and those are the issues we need to address.

[Matthew Hancock]

That intervention was rather better than the whole speech given by the hon. Member for Stoke-on-Trent Central. It is absolutely true that modern apprenticeships were started by the great Lord Hunt of Wirral in 1994 and they grew. Under this Government, they have doubled in number and the latest figures show an increase in the proportion of apprentices who are under 25, which I welcome. More apprenticeships are good news, but we have to make sure that they are also of a high quality.

[Steve Rotheram]

Will the Minister give way?

[Matthew Hancock]

I will take this intervention, because I think I know what the hon. Gentleman is going to say.

[Steve Rotheram]

I hope not. When I was first elected in 2010, I took on an apprentice who has turned out to be an absolutely fantastic employee. How many of the Minister’s colleagues on the Tory Front Bench have put their money where their mouths are and taken on apprentices?

[Matthew Hancock]

Plenty have done so, including me. I went out to recruit one apprentice and came away with two because the applicants were so good. They are both absolutely brilliant. There are many more in the Department—there are now 58 apprentices in the Department for Business, Innovation and Skills. I recommend an apprentice to everyone.

[Richard Benyon (Newbury) (Con)]

It might help my hon. Friend to know that, as an employer, I took on an apprentice under the Labour Government. The course he was required to do and the apprenticeship bore no relationship to, and were a disaster for, each other. Quality as well as quantity has improved in recent years, which is a point Labour Members always forget.

[Matthew Hancock]

That is certainly true. I want to address an important point sensibly made by the hon. Member for Liverpool, Walton (Steve Rotheram). He asked whether too many apprenticeships are short courses and whether they are not high enough quality. It is true that the Government inherited a system in which apprenticeships could be less than six months. That was wrong, so we have said that every apprenticeship must be for a minimum of a year. We have increased quality while increasing the number of apprentices.

It is good news for the nation that the Opposition have accepted their failure in office—the wording of their motion shows that they forgot half the population— and now back our reforms. Some say that imitation is flattery, and I suppose they are right. On Sunday, the hon. Member for Stoke-on-Trent Central called for a new elite grade of master teachers. That sounds like a good idea, and we have them. They are called specialist leaders in education—top teachers who get dedicated training and share their expertise with other schools. There are 3,800 of them in England. By next year, we will have 5,000.

On improving reforms and driving up standards, the hon. Gentleman mentioned technical degrees, which the right hon. Member for Doncaster North (Edward Miliband) described yesterday. They sound like a good idea, and we have them. More than 200 colleges already teach technical degrees. It is called higher education in further education. I suggest he goes around the country and has a look.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

May I return the Minister to the subject of apprenticeships? Apprenticeships need to be of a decent length, but they also need to be high quality. There have been steps forward on both, but the other vital element of a successful apprenticeship is that it should be income transformative—it should lead to a significant increase in the market value of the person doing it. Has he looked at any mechanisms that could be put in place to ensure that, however worthy in concept apprenticeships are, they are held to account for delivering true market transformation of income expectation for the people who take them, young or old?

[Matthew Hancock]

Absolutely. The evidence shows that apprentices on the existing scheme increase their lifetime earnings, but we are not content to rest, so we are redesigning apprenticeship standards. Four hundred employers from different sectors of the economy are engaged to ensure not only that the training is rigorous, which is important, but that it responds to the needs of employers and gets people into higher-paid jobs. We want to ensure that the money that we, on behalf of taxpayers, put into subsidising apprenticeships, is well spent and that we get value for it. Ensuring that the money helps people to get higher-paid jobs is a vital part of that reform. I welcome any suggestions on how to entrench that link between what is taught to apprentices and the needs of employers. That can lead to higher pay for young people, which is what the policy is all about.

[Mr Newmark]

Does my hon. Friend agree that it is important to have joined-up thinking in government? The Chancellor’s proposal, working with the Million Jobs campaign, to abolish national insurance for young people who get jobs, saves employers about £500 a year, and gives them the extra impetus they need to hire a young person.

[Matthew Hancock]

As my hon. Friend may well know, I am an enormous fan of the work of the Million Jobs campaign. The idea that we should not require national insurance from those who employ young people under the age of 21 is such a good one that the Chancellor put it in the Budget.

[Bill Esterson]

I am happy to withdraw my earlier remarks about the Secretary of State’s absence.

On quality and ensuring that apprenticeships do the job needed for the economy and for the individuals involved, does the Minister accept that we need the same approach as in Germany, where vocational and academic qualifications are of the same quality and have the same status? Does he agree that we need to offer apprenticeships in businesses of all sizes? That happens in Germany, but is it really happening in this country? I do not think it is.

[Matthew Hancock]

It was gracious of the hon. Gentleman to withdraw his remarks about the Secretary of State.

In the hon. Gentleman’s constituency, the number of apprenticeships has gone up by 118% since the election, so I know that he is a supporter of apprenticeships. Of course we must ensure that we drive up their quality. More than half of apprenticeships are in small and medium-sized enterprises, so they can be got in smaller businesses. An important part of the reform is to ensure that they work for small businesses as well as large ones, and that is happening at the moment.

The crucial point is that apprenticeships are based not only on the needs of employers, but on the basics, especially the key vocational skills of maths and English. We are strengthening maths and English at primary and secondary school, but it is shocking that, despite recent improvements, 40% of pupils do not get GCSEs at A* to C in English and maths by the age of 16. It is a national scandal that nine out of 10 of those who do not reach that basic standard by 16 do not achieve it by 19 either.

Under Labour, Britain was the only major country where young people were less numerate and literate than their grandparents, and we became one of the few major countries that did not insist on continued studies of maths and literacy for those who did not get such qualifications the first time around. We are ending that scandal. From September, all students will for the first time have to continue studying maths and English if they do not get a good GCSE, which will improve the life chances of millions.

[Mr Steve Reed]

I am sure that the Minister understands that it is important for many young people who do not gain the qualifications they need at school to be able to go back to college to get them later on. Will he therefore take this opportunity to apologise for trying to impose on Croydon college the largest cuts in the country for 18-year-olds in further education, despite the continuing high levels of unemployment in many parts of the borough?

[Matthew Hancock]

The hon. Gentleman mentions unemployment in Croydon. In his constituency, it has fallen by 29% over the past year, and the number of apprenticeships has increased by 170% since the election, so he should be saying thank you very much. As for the difficulties of managing a tight budget, whose fault is that? It is the fault of the Labour party, which left us with the biggest deficit in modern peacetime history.

[Mr Sheerman]

I apologise for having made a political point earlier. People outside the House are worried about the fact that we get into an argy-bargy between the two parties. [Interruption.] Come on. Surely there must be commonality of purpose in doing something for the young people in this country who do not go down the higher education route. Will the Minister please now give his attention to the further education sector? As hon. Members from either side of the House who care about this know, we must galvanise the FE sector to deliver what we want.

[Matthew Hancock]

Absolutely, and I am happy to work with the hon. Gentleman and the right hon. Member for Southampton, Itchen (Mr Denham), who spoke so powerfully earlier. It is a great pity that the Front-Bench spokesman’s speech was one of unremitting negativity and, crucially, that it was based on an utter misunderstanding of what is happening in vocational education. The reforms we are pushing through are about driving up standards, having higher expectations and ensuring that more young people have the chance to achieve their potential. Instead of saying that 50% should go to university and not caring—indeed, forgetting—about the rest of them, we are making sure that all young people get the chance to succeed.

[Guy Opperman]

Like the hon. Member for Liverpool, Walton (Steve Rotheram), I have hired and trained an apprentice, who I have retained for the past four years. She is outstanding and has been a great success.

To take the Minister back to what he said a moment ago about education funding on a difficult budget, is it not fantastic that the fairer funding formula has been readdressed so that—in these difficult times—Northumberland, for example, will from next April have an extra £10 million for schools that have been so underfunded for so long?

[Matthew Hancock]

Of course it is. Furthermore, in the 16 to 18 sector, instead of providing funding on the basis of how many qualifications young people take, we are providing it on a per pupil basis, with extra support for those from the most disadvantaged backgrounds. That has strengthened the funding for those who take fewer qualifications, and it provides an incentive for FE colleges and schools to do what is right for the young person.

The second part of our reform is about strengthening qualifications and having clearer pathways through tech awards, tech levels and the tech bacc. People must know that, instead of the mushy muddle that went before, we have strong and clear vocational pathways that are endorsed by employers.

The third and final strand is apprenticeships. In the previous Parliament, there were just over 1 million apprenticeship starts. We are on track to deliver 2 million apprenticeships over this Parliament. We have doubled the number of apprenticeships and driven up quality. There are stronger English and maths requirements. Apprenticeships now have a minimum duration of a year. Employers have been given the pen to design apprenticeship standards. We are reforming funding so that the training that apprentices receive follows the needs of employers.

As apprenticeships become more stretching, we are, for the first time, introducing traineeships for young people who need extra help with work experience, maths and English so that they have the skills and behaviour that they need to hold down an apprenticeship or a sustainable job. We are reforming the advice that young people receive so that they can be inspired by work experience, and we are ensuring that there are more mentors. We are reforming league tables so that schools are rewarded not only for exam results, but for where their pupils end up to take account of whether they get to university, get into an apprenticeship or end up not in education, employment or training. That change never happened in 13 years under the Labour party.

It is rapidly becoming the norm across the country that when young people leave school or college, they go into an apprenticeship or go to university. Our job is not to set arbitrary targets, but to ensure that there are high-quality options in both those areas. We must bring together the worlds of work and education, and break down the apartheid between academic and vocational education to give all young people the skills, knowledge and behaviour that they need to succeed. This task is vital. Yes, it is part of our long-term economic plan, but it is more than that—it is a battle for social mobility and a moral mission for social justice. The Government know that social justice is about earned reward and that jobs are created by endeavour, not handouts. There can be no higher justice than economic opportunity for all. That is our policy and these are our tools. We are ending the previous Government’s decade of neglect for vocational education so that every young person can reach their potential.

[Several hon. Members]

rose—