Further Education: St Austell

Michelle Donelan Excerpts

Monday 21st October 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Education (Michelle Donelan)]

I congratulate my hon. Friend the Member for St Austell and Newquay (Steve Double) on securing today’s debate. He is an excellent champion for his constituency and never misses an opportunity to stand up for his constituents.

I begin by emphasising and reassuring the House that further education provision is at the heart of the Government’s plans. We have heard much today about how Cornwall College has removed A-level provision from the St Austell campus, how learners have been affected, and how students in the area need access to good-quality post-16 provision, and we take such matters seriously. The Government have a duty to protect the interests of students, which we always prioritise. However, it must be noted that decisions about the provision that a college delivers are for the college to make. Unfortunately, I may disappoint my hon. Friend a little this evening, but I will try to be as honest and frank with him as possible to help his constituents.

I appreciate that the decision will have been of concern to students who had already applied to the college. We cannot escape the clear fact, though, that A-level provision had been diminishing over time at the campus to around 100 learners over the two years of study. When we consider that the generally accepted minimum is that 200 learners are needed to ensure financial viability and quality within a school sixth form, the difference is stark. Quality must always be prioritised, as learners must continue to come first. It is also worth noting that the college had been offering around 13 A-levels, so with most providers offering in excess of 20 and the best providers offering up to 40, the choice being offered was somewhat limited. I am sure my hon. Friend wants his young constituents to have the choice they deserve in order to broaden their opportunities.

In addition, work at Cornwall College had shown that its A-level provision was making a loss, and a stocktake by the Further Education Commissioner questioned the quality of the learner experience with such low numbers. When the college took the decision to stop its A-level provision, it worked with other providers in the area to ensure that all applicants had a suitable destination to study. To be clear, no current student will suffer. The college will remain committed to ensuring that current learners can complete their second year of A-levels.

With the closure of A-levels at St Austell, potential learners will be faced with two options: alternative courses at St Austell, or A-levels at an alternative college or school. I appreciate that this will disappoint my hon. Friend, who is passionate about St Austell and the need for it to have its own A-level provision. Having looked into the local provision, I can see there is a wealth of post-16 provision in the area.

One example is Callywith College. Although the college has not yet been inspected, it has been open since 2017 and is supported by Truro and Penwith College, which has a long track record of being outstanding. Callywith College is now in scope for inspection, and results to date suggest strong outcomes compared with national benchmarks, which is extremely encouraging.

Callywith College, a 16-to-19 free school, is 15.6 miles from St Austell and offers 29 A-levels, substantially more than the current provision. The college is a 25-minute drive away, and a bus service from St Austell and surrounding areas has been arranged, with the journey taking about 35 minutes.

Another option is Bodmin College, an 11-to-18 academy that is 13 miles and about a 20-minute drive from the St Austell campus. It offers 20 A-levels, and the journey on public transport will take a little over an hour.

The Truro campus is 25.5 miles and a 45-minute drive away, and it delivers more than 39 different A-levels. It is rated outstanding, so students already travel considerable distances to go there, although I appreciate that the journey on public transport would be over an hour.

I have heard my hon. Friend’s concern about transport costs, but the Cornwall post-16 transport policy confirms support for all students with a journey in excess of three miles, so all those affected will qualify. The transport is subsidised at around 75%, with the individual paying the first £500, although providers have access to bursary funding that can offset all of that £500.

We must consider provision other than A-levels, and Cornwall College continues to provide a broad offer across its two general sites, with 40 courses available from foundation learning right up to level 3. Those courses cover a broad range from bricklaying to media, engineering and hospitality, giving students a broad choice.

The outcome of a Further Education Commissioner review of FE provision in Cornwall last summer was that Cornwall College had to work with Truro and Penwith College to consider how they would work together for the mutual interests of Cornwall learners.

I reiterate that choice and quality must always be at the core of our decision making, and they must remain our priorities because learners must always be at the heart of all decisions and provision. Although the college’s decision was disappointing for the college and for learners in the area, it needs to be considered against a backdrop that it had been struggling financially for some time and was unable to rectify the situation. Since May 2017, it has been operating through a Fresh Start process, following the assessment of its financial health as inadequate in April 2016 and the recommendations from the area-based review in April 2017. Since July 2017, the Further Education Commissioner has engaged in formal intervention, with an initial stocktake completed in October 2017. As my hon. Friend pointed out, the college has applied for support through the Department’s restructuring facility, and successfully secured in excess of £30 million. That cannot be used to support unviable provision; it is there to support the college to restructure and maintain sustainable provision.

The college has also been inspected by Ofsted, with the last inspection having taken place in May 2019, when the outcome was “requires improvement”. That is not the type of provision that students in my hon. Friend’s constituency will be getting at the other options. The self-analysis undertaken through Fresh Start, the Further Education Commissioner stocktake and the Ofsted review has required the college to undertake a fundamental review of its provision and estates, and make some difficult decisions in order to achieve long-term stability. Unfortunately, the decision before us today is one of those. The college’s progress to sustainability has proved long and complex, and will take significant time to achieve. I can assure my hon. Friend and his constituents that we are carefully monitoring the situation. The Further Education Commissioner’s team is present at the monthly Fresh Start meetings and has undertaken two stocktakes over a period of five months, making 14 recommendations.

Nobody wants to see a college fail or struggle financially. It is in everyone’s interest that the FE sector is on a stable footing and able to offer high-quality provision that delivers on our transformational policies such as T-levels, apprenticeships and better basic skills. Further education is at the heart of this Government’s plans to improve productivity, fill the skills gaps and equip people with the skills that both they and the country need. So I know my hon. Friend will be pleased to learn that we are now actively considering the efficiency and resilience of the FE sector, and will be assessing how well current funding and regulatory structures support world-class provision. That is part of the Dame Mary Ney independent review.

It is also important to note that we are committed to ensuring that post-16 providers, including FE colleges, can deliver high-quality training. To that end, last month we announced significant increases in funding: overall 16-to-19 funding will receive an increase of £400 million in 2020-21 alone, which is an increase of 7% and the biggest year-on-year increase since 2010, with funding increasing faster for 16-to-19 than in five-to-16 schooling. That is on top of the additional £500 million per year we are making available for T-levels, and this additional funding will ensure that we are building the skills that our country needs for us to thrive in the future.

I have noted my hon. Friend’s concerns in relation to free school status and the potential change. My colleague Lord Agnew, the Minister responsible for the school estate, will be looking at that, and I am happy to facilitate a meeting between them and also a further meeting with me if that is of use.

In conclusion, I wish to thank my hon. Friend for bringing this debate to the House. I know that the removal of A-level provision from the St Austell campus will be disappointing to students who wanted to go there and to those who have studied there before and have a personal reminiscence of that. However, we can be reassured that we always prioritise quality and choice, so that all learners in the St Austell and surrounding areas will continue to have a wide range of high-quality post-16 options from which to choose. Those, taken together with our skills and technical education polices, will ensure that people of all ages in St Austell have the opportunity to get the education, training and skills they need and deserve.

Question put and agreed to.

Unregulated Accommodation: 16 to 17-year-olds

Michelle Donelan Excerpts

Tuesday 15th October 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Education (Michelle Donelan)]

Let me begin by congratulating my hon. Friend the Member for South West Bedfordshire (Andrew Selous) on securing this important debate. I know that he is working particularly hard to highlight the concerns of his constituents and his local police force that some children and young people placed in independent and semi-independent provision are being put at risk.

I share his concerns and fears about the current state of affairs. As a recently appointed Minister, this is one of my key priorities, and I want to reassure my hon Friend that this Government are clear: it is completely unacceptable for a child to be in placed in a setting that does not meet their needs and keep them safe, and I am considering the checks and inspections needed.

[Mr Jonathan Lord (Woking) (Con)]

First, I wish to join the Minister in saying what a brilliant speech we heard from my hon. Friend the Member for South West Bedfordshire (Andrew Selous). He talked about a wide range of local authorities putting these youngsters into such unregulated and unsatisfactory dwellings. Is the Minister able to tell us why we think that is happening? He came up with some brilliant solutions, but, as someone new to this debate, I want to know why this is going on, as it is completely unacceptable.

[Michelle Donelan]

I thank my hon. Friend for his comments. This is a complex problem and we have a rising number of children in care, which we need to get to grips with. Those children are predominantly at an older age, which is resulting in such outcomes. So there are strains on the supply of accommodation. I will get on to the rest of what he raised within my speech, if he will just be patient with me.

As I said, a rising number of children are in care, and most of them live in registered children’s homes or foster care. However, the age of those children is rising; the demand on the system is increasing; and it is a somewhat unprecedented situation. We are not only taking steps to help local areas to manage the situation, but supporting local authorities to improve the work that they do with families to safely reduce the number of children who enter care in the first place—something I am particularly passionate about. Last week, I announced the investment of £84 million over five years to support 18 local authorities to do exactly that, as part of the strengthening families programme. We have already provided funding through our £200 million children’s social care innovation programme, and £5 million of that funding is specifically targeted at residential care.

For the most vulnerable children who need secure provision, we are working to increase the number of beds in secure homes through our £40 million capital grants programme. We are funding local authorities, with £110 million to date to implement “staying put” arrangements, under which care leavers remain with their foster carers while they are under 21. We are working with the Ministry of Housing, Communities and Local Government to help local authorities to develop more effective accommodation pathways for care leavers.

Currently, a small but growing number of children are placed in settings that are not registered with Ofsted. Some of these settings are not registered because they provide only accommodation and not care, although they may provide some support. They offer semi-independent living for older children and care leavers who are ready to live with some independence, and they can act as a stepping stone to adult life. Let me be clear, though: we set a high bar for the level of care that must be provided by registered children’s homes, and children who need this care should not be placed anywhere else.

I have visited some excellent examples of semi-independent living, even in my own constituency. There is a place for this type of provision when local authorities have taken the required steps to ensure that it is of high quality and is used appropriately.

[Ruth George]

Will the Minister give way?

[Michelle Donelan]

Time is really tight and I have a lot of ground to cover. If I have time in a moment, I will give way.

Not all the provision of the type I have described is being used correctly, and the quality across the board is simply not good enough. I am determined to tackle that. Just as worrying is the placement of children in settings that are offering care but have not been registered with Ofsted. Such settings are illegal, and Ofsted has the power to prosecute such providers. I invite my hon. Friend the Member for South West Bedfordshire to meet me to flag up any homes that he believes fit the criteria, and I invite any other Member to do the same, because they must be stopped. Permanent settings that deliver both accommodation and care must be registered with and inspected by Ofsted.

Another policy area on which the Department is focused is the age of those in unregulated provision, as referred to by my hon. Friend. I have received reports from Ofsted, local authorities and police forces about some younger children living in unregulated, semi-independent provision. Let me be clear again that I do not want children under the age of 16 to be living in an environment without care. Today, I call on all local authorities to put their houses in order on this issue and to ensure that further action is taken. My hon. Friend will know that if a child is placed in a semi-independent, unregulated setting, the local authority is required by law to ensure that the provision is suitable. My predecessor wrote to all directors of children’s services earlier this year to remind them of this duty. As I stressed earlier, such providers should be registered, and those that choose not to be are acting illegally.

Ofsted is taking a lead and has, over the past few months, already ramped up its focus. Ofsted has conducted more than 150 investigations in the past year alone. I will continue to apply pressure in this policy area. Alongside that, Ofsted has tightened up the requirements, under its inspection regime, for local authorities to share how they monitor children in unregulated provision, by increasing the data that they request from local authorities and issuing further advice to inspectors. However, recent research commissioned by the Department suggests that, despite our guidelines, some local authorities are genuinely unclear about what is permissible in relation to the use of unregulated and unregistered provision. I want to ensure that there is no confusion at all, so I am working with my Department to ensure that there is new statutory guidance so that everyone involved in providing care to looked-after children and care leavers is absolutely clear about what is required of them.

My hon. Friend and the hon. Member for High Peak (Ruth George) highlighted the number of children who go missing in unregulated provision. Not only is that a threat to a young person’s safety, it can also be a serious flag to other things that are going on in their lives. Some local areas are already developing effective responses, but we need to ensure that all local areas recognise the threats to vulnerable children and young people and respond appropriately.

On 9 May, the Department for Education announced a £2 million tackling child exploitation support programme to provide dedicated advice and practical support. This programme will help areas to develop effective multi-agency responses to deal with things that will affect vulnerable children, including county lines.

I want to take this opportunity again to thank my hon. Friend for South West Bedfordshire for securing this debate to highlight this crucial issue here today. It is clear to me that the current system leaves far too much room for variability and inconsistency across the whole sector. Although we have tried to address that, I recognise that there is still so much more to do and so much more that can be done. Alongside the Education Secretary, I have been meeting members of Ofsted and others in the sector to determine where further action should be taken and the broader landscape of checks and inspections on the types of provision that we want to see. I know that local authorities do not take decisions lightly. These complex issues should not be underestimated, but children must be placed in settings that are suitable for their needs.

I thank all Members who have contributed to this debate. I am aware that this is not a new issue and it is right that, as a newly appointed Minister, it is at the top of my agenda. Both the Secretary of State and I are clear that the current system is completely untenable. We must get this right, and I will ensure that we do.

Question put and agreed to.

Adult Learning and Vocational Skills: Metropolitan Borough of Dudley

Michelle Donelan Excerpts

Tuesday 1st October 2019 Westminster Hall

[The Parliamentary Under-Secretary of State for Education (Michelle Donelan)]

It is a pleasure to serve under your chairmanship, Mrs Moon, and I welcome the comments from other hon. Members who have welcomed me to my post.

I congratulate the hon. Member for Stourbridge (Margot James) on securing this debate. I know that she worked closely with my predecessors on this issue. I am delighted to have the opportunity to discuss it further today, especially given that we share a passion for further education and recognise the importance of adult education.

The closure of the Stourbridge campus is regrettable. I do not want to underestimate the impact that it has had across the community and the ripples that we have seen. As the hon. Member for Stourbridge noted, the site has been used for more than 150 years and is seen as part of the fabric of the community. We have heard a great deal about the closure of the campus, which is within Birmingham Metropolitan College’s provision. I assure her that we take the closure seriously, but it is important to keep in mind the fact that colleges are incorporated bodies and thus independent. Of course, the Government have a duty to protect the interests of the students and will do everything in their power to do so, but decisions about how an individual college is structured and how it operates remain the responsibility of the college’s corporation.

We have, however, been working closely with Birmingham Metropolitan College to ensure its sustainability and protect the interests of learners, who must always come first. Despite our efforts and assistance, the college has been in financial difficulty for some time and subject to intervention by the Further Education Commissioner since August 2015. It received a Government loan and emergency funding, but problems persisted.

Between December 2018 and April 2019, we conducted a structure and prospects appraisal of the college to assess the options. A range of options was considered but removing provision at Stourbridge was the best option to support the college’s financial sustainability and, crucially, to ensure that good-quality provision was available for current and future students. Students getting the best learning experience is the most important thing.

Affected students have been a topic in today’s debate. I reassure hon. Members that they have been relocated to Dudley College of Technology and Halesowen College, where they will benefit from high-quality learning experiences delivered by providers with better Ofsted ratings and will therefore have better chances of better outcomes. As I said, I do not underestimate the problems that the closure has caused the community, but I stress that, in the long term, it should leave the college in a stronger financial position and, crucially, enable learners to receive the high-quality technical education that they deserve.

There have been calls, in particular from the hon. Member for Stourbridge, for an inquiry into the financial problems of BMet College. The Further Education Commissioner is planning to undertake a capacity and capability review to assess its progress under the new leadership team. Furthermore, Dame Mary Ney will carry out an independent review of how the Government monitor college finances and financial management. The review will also look at their effectiveness in practice, including the work of the Education and Skills Funding Agency and the Further Education Commissioner’s team. It will recommend changes that will reduce the risk of such problems recurring.

I want to put it on record that I have listened to the proposal mentioned by the hon. Member for Stourbridge for the site to continue as an educational facility with some adult education. Although I do not have jurisdiction over that option, I encourage all local stakeholders to review and explore it. It is a matter for BMet, however, and its governors will need to demonstrate that they secure the best value from the sale of the asset to satisfy their legal responsibilities as trustees.

The hon. Member for Blackpool South (Gordon Marsden) noted the issue of travel for students. I reassure him that no student will be travelling more than 10 km. In addition, in Dudley, there is a free west midlands travel pass, and Halesowen provides a coach that goes through Stourbridge. We are making our best efforts to ensure that those problems are minimised.

On the hon. Gentleman’s question about the number of students with special education needs and disabilities, I do not have those figures to hand, but I will certainly write to him. I will also write to him about those doing apprenticeship schemes. Throughout the process, all stakeholders have worked together to minimise the disruption to current students as a priority.

As Members will know, the West Midlands Combined Authority is now responsible for certain adult education functions and is funded by the adult education budget. It receives the second-largest share of devolved AEB funding, worth a total of £125.6 million for the academic year 2019 to 2020. It has provided funding for Stourbridge and Dudley residents, transferring funding to Dudley College and Halesowen College. I hope that that alleviates some of the concerns referenced by the hon. Member for Stourbridge.

I am grateful to the hon. Lady, who has been working tirelessly with the authority and the borough council to provide assurances on the continuity of provision. As I mentioned, students have been relocated to other providers, and I want to touch on what the hon. Member for Dudley North (Ian Austin) said about the excellent Dudley College. It is one of the largest apprenticeship providers in the west midlands, with a total income of over £10 million between 2018 and 2019. Some 90% of the adult learners from Stourbridge go to Dudley College. It has a broad curriculum offer and hundreds of full-time and part-time courses. It specialises in engineering, manufacturing and modern construction technologies—perfect for local industry. It is also at the forefront of our plans for T-levels, being a pilot provider.

Dudley really is an area of focus and investment. As noted by the hon. Members for Dudley North and for Stourbridge, it will be home to the Black Country and Marches institute of technology, one of the first 12 IOTs announced by the Government earlier this year. Those will deliver high-quality, high-level education across the country, backed by £170 million of Government funding. That has been led by Dudley College, working in conjunction with the University of Wolverhampton and key employers, which is testament to the joined-up thinking across the borough. Dudley College is clearly leading the way in delivering and equipping people with the technical skills that employers need now and will need in the future.

I must also highlight the fact that Halesowen College has a strong reputation for standards and is ranked in the top 10% of colleges for examination performance. It offers a wide range of provision for young people and adults, and it has been selected to deliver the new T-levels, but from 2021. Two thirds of students aged 16 to 19 from Stourbridge have gone to Halesowen. It offers a broad choice, as well as quality, which must always be the focus.

It would be apt for me to touch on the wider importance of adult education. The Government are committed to ensuring that everyone has the opportunity to access the education and training they need, whatever their circumstances, background and age. Investment in skills is a priority, and we want to ensure there is high-quality provision that will lead to high-quality outcomes and better employment opportunities for all.

As noted by the hon. Member for Dudley North, we have an ageing population. People are working longer. There are also advances in technology and artificial intelligence—something touched on by the hon. Member for Stourbridge. That all means that the need for high-quality adult education that can upskill and reskill our population is increasing ever more. We therefore need to ensure not only that our young people leave school equipped with the skills that employers and industry need, but that adults can improve their skills and learn new skills. Our adult skills system needs to improve productivity, employment and social inclusion. It supports people who are starting out on their career, but also those who are continuing on that journey.

That is all paid for by the adult education budget that I have I referenced, and is in addition to high-quality apprenticeship schemes. It is easy to associate apprenticeship schemes with those who are young, but 41.4% of starts between 2017 and 2018 were for those aged 25 and over. For many, an apprenticeship opens up a new world of work and learning, and it builds their confidence and helps them to progress.

I will briefly touch on the launch of the national retraining scheme, which will help prepare adults for changes to the economy, including those brought about by automation, and help them to retrain for better jobs. It will focus on adults aged 24 and over, without a degree qualification, who are earning low to medium wages, as they have less access to existing support and so will be most in need of the ability to retrain. We are initially investing £100 million, and the first part of the service, “Get help to retrain”, has been launched in three areas, including the west midlands. The region really is helping to shape the scheme. Dudley College of Technology—yet again—was involved in the recently completed pilot of the flexible learning fund.

As was noted by the hon. Member for Dudley North, who is a big advocate of the fact, Dudley is one of the first 100 towns to secure funding under the towns fund—it is important to flag that up—and we expect there to be a strong skills component to that. I hope that all local stakeholders will make sure that these issues are a key theme in discussions on how to spend the money that is granted.

I thank everyone who has contributed to the debate. The closure of the Stourbridge campus will continue to cast a shadow over the area, but as I have stressed, there is so much to be positive about in our local area—a point echoed by the hon. Members for Dudley North and for Stourbridge. I would be delighted to accept the invitation to Dudley; I will arrange that as soon as possible. To recap, the area will boast one of the first IOTs, and one of the first T-level providers. It has excellent, wide-ranging provision in highly performing colleges that deliver high-quality outcomes for students. There is also the towns fund and the work of the West Midlands Combined Authority. These, taken together with our policies on skills and technical education, paint an extremely positive picture and will ensure that people of all ages in Dudley can get the education, training and skills that they deserve.

Financial Guidance and Claims Bill [Lords]

Michelle Donelan Excerpts

3rd reading: House of Commons & Report: 3rd sitting: House of Commons
Tuesday 24th April 2018 Commons Chamber

[Jack Brereton]

I thank my hon. Friend for that point; I agree that it is critical that we take action to stop cold calls, and I am about to come on to some of those points.

This change will also ensure that the advice that is available is joined-up and better suited to our constituents’ needs, ensuring that decisions are not made in isolation, but with consideration to the wider implications of investment decisions on an individual’s overall finances. Measures in the Bill will also ensure that people receive the appropriate advice as a matter of course and that they should opt out if they do not wish to receive such advice. I also hope that the commitment made by the Government and the industry to develop a pensions dashboard will be delivered, making it easier for our constituents to have access to the information that they need about their pension savings to make suitable decisions.

Thirdly, the Committee heard about the increasing number of pension scams that are being reported, with more people being actively deceived into making investments that are not in their best interests. It was suggested that many rogue companies are using cold calling to target people and to get them to invest without full thought of whether it is the right and best decision for them. I am sure that many right hon. and hon. Members have, like me, been contacted by constituents who have been continually badgered by cold calling. It is a real issue in Stoke-on-Trent South and I am sure that it is a challenge in other areas, too. Many of the people targeted by cold calling are elderly or vulnerable and are taken advantage of by those seeking to cheat our constituents out of their hard-earned life savings.

[Michelle Donelan (Chippenham) (Con)]

Does my hon. Friend agree that although the pension freedoms that were introduced in 2015 were a fantastic opportunity for our constituents, they have led to an increase in rogue scammers and cold calling? That is why new clauses 9 and 4 are so important for the Bill.

[Jack Brereton]

I absolutely agree. That is why it is so important that this legislation is passed and that the Government have proposed these amendments. I am pleased that the Government have put measures in the Bill to ban the use of unsolicited marketing on pensions and financial products and services. It is a significant step towards preventing future abuses.

Of course, this legislation can never stop all scams being attempted—we cannot legislate away those who have nothing but contempt for legislation—but it does send a clear message not just to those conducting this behaviour, but to those who are at risk of being conned. By raising awareness of the challenge of scams, the Government can make more people wary of them. This will mean that those who are targeted can have the confidence that whenever they are cold-called by people trying to offer this sort of advice about their pensions or information about their investments, the calls are not legitimate but in fact illegal, and they should put the phone down. The Government are taking a balanced approach, acting if necessary to target where cold calling is most prolific and most damaging, such as in the area of pensions and financial products and services.

Finance (No. 2) Bill

Michelle Donelan Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 21st February 2018 Commons Chamber

[Anneliese Dodds]

I am aware of what Mr Johnson said, but I think he has fallen into the trap of looking only at the impact of the change on an individual buyer and forgetting that it will have an impact on the housing market, particularly in areas where there is strong supply and strong demand, and where such a change is likely to push up prices. I agree with Mr Johnson on many things, but in this case, unfortunately, the context has been missed, and it is important that we bear it in mind.

[Michelle Donelan (Chippenham) (Con)]

The evidence suggests that house prices are not increasing—in fact, the Royal Institution of Chartered Surveyors has echoed the point, saying that although there was scaremongering, the evidence suggests that prices are not rising.

[Anneliese Dodds]

I am sure the hon. Lady is well versed in the subject, but when it comes to the cost for first-time buyers, there has been an increase. That assertion is supported by the evidence, and that is exactly what we are concerned about. We need to take action. The Government often say they want to help first-time buyers, and I think it is important that we take them at their word. We should also look at what the OBR said in its assessment of the policy. Again, I go back to whether the Government received any advice about the likely impact of their policy. It is disappointing that we have not had any clarity on that matter.

Community Bank Closures

Michelle Donelan Excerpts

Thursday 8th February 2018 Commons Chamber

[Michelle Donelan (Chippenham) (Con)]

I commend my hon. Friend the Member for Hazel Grove (Mr Wragg) and the hon. Member for Stoke-on-Trent North (Ruth Smeeth) for securing the debate.

My constituency is formed of four market towns and a lot of villages, so it will be no surprise to Members that we have seen a number of bank closures in the past few years. In fact, there are no branches left at all in Bradford on Avon and Corsham. Locally, a key part of the problem has been insufficient transport infrastructure to get people into those towns, particularly from surrounding villages such as Neston, and an above-average ageing population.

Nationally, the banking industry estimates that branch visits have fallen by roughly a third since 2011. I understand and recognise that banks are businesses and that branch closures happen for commercial reasons. Fundamentally, advances in technology—online and mobile banking—have significantly reduced demand. Cheques are still the main reason customers go into a branch, but cheque usage has declined severely—by 13% between 2014 and 2015 alone. Things have changed: I remember back in the day my Mum paying in the supermarket with a cheque and cheque guarantee card. Now she uses Apple Pay on her iPhone!

To explain the decrease in demand, we must consider the purpose of banks. For some people, as Members have suggested, banks are more than a normal service. They are a part of the community, offering people a personal relationship and an opportunity to chat. They can prevent loneliness. That is why, for some, closures are not just an inconvenience or a sting: they can actually hurt. I know that that has been the sentiment in my constituency.

That view of banks, however, is decreasing, especially among younger generations, hence the need to specifically help and consider the elderly when banks close. I must note at this point, as other Members have, that provisions are already available to reduce the impact of bank closures. The industry’s access to banking standard, launched in 2017, makes a commitment to provide information about branch closures, along with options locally to continue to access banking services. It also includes specialist assistance to customers who need specific help. Importantly, it commits to providing a minimum of three months’ notice of branch closures. However, I do not think that three months is long enough for people to change their habits or prepare themselves. I ask the Minister to call on the banks to operate a six-month policy, which would be fairer and more adequate. It is vital that when banks make decisions on closures they review the transport network and infrastructure, and ensure that provision is available so that banks are accessible in the area.

Mobile banking is a perfect example of a halfway house, costing only 19% of a physical branch. RBS group and Lloyds have built a large network of mobile banks across the country, and HSBC has just started to do the same. They help in areas where there is no accessible alternative provision, and they can be used as transitional arrangements to enable people to adapt and have more time.

[Jamie Stone]

I take on board completely the point about mobile banks, but there are issues with them. The public have to queue up outside in inclement weather and get soaking wet, and they do not have the ability to handle paper transactions.

[Michelle Donelan]

I do not believe that mobile banks are the answer; I am proposing that potentially they are a part of the solution. I agree on the point about cold weather. That is a very valid and worthy consideration.

I have worked locally with Lloyds to reduce the impact and to manage the transition of the loss of branches in Bradford on Avon and Corsham. I am pleased to say that we have a provisional agreement for a mobile bank trial in Corsham. Madam Deputy Speaker, I am sure you will agree with me that the case for such a trial is just as valid in Bradford on Avon. I am sure the Minister, as a local Wiltshire MP, also agrees.

Turning to the impact of bank branch closures, each case is different in every circumstance. When severe, it can suggest, alongside closure, a lack of investment in training and support for older and vulnerable people. That is why I reiterate that a three-month notice period is not long enough. It takes time to build some people’s confidence in the security of digital banking. Alongside Lloyds bank and Barclays, I have run three fraud workshops, which were heavily attended, particularly by the elderly community. Support to vulnerable residents and the elderly is crucial. It is important to remember that about 4 million people—mainly the elderly—are not online at all. However, we must not write off older people as incapable of using the internet. We must support and manage them, and give them the tools and skills to make progress. More than 600,000 people aged over 80 already have online banking. They put me to shame, as I joined only last year.

Another stumbling block to digital banking can be deprivation, which can render people unable to own a computer or a smartphone. Mobile blackspots and patchy internet services are both common in the villages in my constituency. Banks should ensure that an alternative option is accessible, such as mobile banking or sufficient public transport to the nearest branch, and I again make the point that Bradford on Avon really needs mobile banking.

Post offices are not the answer, but they are part of the solution and can play an essential role. Our post offices have been struggling for years, but incorporating banking into their services is proving to increase their footfall and helping to engage people in their services again. The Post Office currently offers basic banking services to many bank customers and is expanding that to business customers. As has been noted, awareness is the key problem, but it is also about changing consumers’ habits. I was pleased that at the autumn Budget of 2017, the Treasury wrote to the Post Office and UK Finance to stress the importance of raising public awareness. I would like to hear the result of that from the Minister.

In conclusion, it is important that we do not resist technology, but that we accept and embrace change to enable progress, grow our economy and compete on the international stage. However, I want to be realistic. I believe that it is inevitable that all branches will eventually close. The supply of them has reduced by 60% in my lifetime, so I think that we should encourage a sustainable hub model to emerge—a one-stop shop—where post office and banking facilities can be offered, as well as debt advice and potentially even a citizens advice bureau. That will help to safeguard our high streets. The transition period is so important, along with the support available. Banks need to lead the way in training and supporting people who are currently unable to support themselves through their digital skills. We must also encourage the roll-out of mobile banking.

I hope I have outlined today that the banking world is changing, but that there is a process whereby we can improve the transition, so that everybody in society can continue to embrace technology. We must support our community.

--- Later in debate ---

[Susan Elan Jones (Clwyd South) (Lab)]

It is a pleasure to follow the hon. Member for Waveney (Peter Aldous), my hon. Friend the Member for Bury North (James Frith) and all other contributors to the debate, but of course I particularly thank my hon. Friend the Member for Stoke-on-Trent North (Ruth Smeeth). I was intrigued by her description of her first experience of banking and I remembered my wonderful chequebook with a nice colourful kingfisher on it. I thank the hon. Member for Hazel Grove (Mr Wragg), too, who secured this debate along with my hon. Friend.

I have to say that I am completely fed up, as are my constituents and many businesses in my constituency. We are fed up because we are a constituency of 240 square miles and we have a grand total of one bank branch left. I do not know what happened to all the rhetoric of the last bank in the community. Whatever happened, it did not work in areas such as mine and it is not working across swathes of the country.

I welcomed the banking protocol. In fact, I was part of a cross-party group of Members that went to see Professor Griggs about the protocol. I welcomed it and many of the suggestions in it. For example, I welcomed the fact that it highlighted the need for the collection of cash from businesses and the like and the co-ordination of that. I welcomed many of the things in that voluntary code, but it strikes me that not enough has been done subsequently. It certainly has not halted branch closures.

In 2016, when the last two branches were to close, at Chirk and Ruabon, a staff member and I took it upon ourselves to visit 126 businesses on the high streets of Chirk, Ruabon, Rhosllanerchrugog, Johnstown, Cefn Mawr, Plas Madoc and Acrefair—apologies to any constituents I have missed out—to ask about the many issues they face. Earlier in the debate reference was made to post offices. Having worked with local businesses and post offices in my constituency, I welcome any improvements where they have been made. I also welcome the work that the Treasury has done on standardisation, because we are no longer in the daft position where some things work for some banks, and other things work for other banks. There are post office branches where that works absolutely magnificently, but in others it simply does not work. If someone comes into a post office to buy a packet of crisps, and then someone else buys a bar of chocolate, but the person working there has to deal with a banking transaction in the middle of that, that is not a sustainable solution.

If we are looking to develop post offices in that way, that might be one exciting option to consider around the country. I know for a fact that post offices are doing all sorts of things, for example, granting credit union members access to their cash. I welcome that when it works, but we have to look at what provision is put in place when bank branches close.

Earlier in the debate it was suggested that the notification period for bank branch closures should be longer. I think that there is a case for that, but in too many cases we know that, when a bank gives notice that it is going to close a branch, that is what it is going to do. We can petition to our hearts’ content, with 38 Degrees petitions, petitions in this House, Change.org petitions—we could even create our own website and have some more petitions—but in most cases it does not make one jot of difference.

[Michelle Donelan]

Does the hon. Lady agree that more time would allow people to hone their digital skills and that banks have a role to play in that to ensure that people are prepared for the closure? The branches might still close, but a longer notice period would give people time to prepare.

[Susan Elan Jones]

Yes, I would welcome that. I think that is a positive point.

We also have to consider what the banks have been telling us. My right hon. Friend the Member for Don Valley (Caroline Flint) spoke about some commercially sensitive information that she was not allowed to have. I, too, have asked for commercially sensitive information, such as how many people had accounts at the branch, and clearly the bank was unable to tell me. Better still, I asked how many people on a typical week went in with queries. I was told something earth-shattering: that queries might not really be queries. I asked what that meant. I was told that, if someone goes into a bank, stands at the counter and asks a question, that might not be a query. I made the point that, for the customer asking the question, it very much was a query. I was told that, if there was no formal transaction, it was not a query. It is a parallel universe.

As we move at this juncture, we need to know what on earth the banks are planning to do next. An hon. Member has made the point that first we were fobbed off by being told that one could go to the next village, and then to the next, and then to the next, and that it was all right because it is just a little walk down the road—rather like an old-fashioned countryside treasure hunt. Suddenly, one realises that one has to go quite a long way to get to the next post. That cannot be the way to deal with the problem.

What we do about cashpoints and ATMs is of utmost seriousness. There are currently some 70,000 in the country, the bulk of which are free to use. At the start of 2016, the then Chair of the Treasury Committee, Andrew Tyrie, said that cashpoint charging and closures were of great concern. His point was that, if the ATM companies were not going to deal with the problem, this House needed to look at it, because people in rural communities and those on low incomes would be affected the most. As far as I can see, one problem with cashpoints is that the 38 or so banks and the like that are part of the ATM network are having a little scrap with each other. As they knock metaphorical spots off each other, each deciding that they are all paying too much, it is the customer who loses out.

Oral Answers to Questions

Michelle Donelan Excerpts

Tuesday 18th July 2017 Commons Chamber

[James Cartlidge (South Suffolk) (Con)]

2. What progress is being made on reducing the national debt.

[Michelle Donelan (Chippenham) (Con)]

6. What progress is being made on reducing the national debt.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

Debt has climbed steadily since 2009 as a result of the high levels of deficit. Since 2010, we have reduced the deficit by three quarters, so national debt will now peak at just under 90% of GDP this year. As the OBR’s “Fiscal risks report” of last week makes clear, that level of debt—a legacy of Labour’s recession—leaves us vulnerable to future shocks, which is why the Government have committed to eliminating the deficit and reducing the level of debt as a share of GDP. As a result of the actions taken to bring the public finances back under control, the OBR now forecasts that debt will start falling next year and will be below 80% of GDP by 2021-22.

[Mr Hammond]

My hon. Friend is absolutely right. He might have added that were anyone to suggest that they were able to do that, they could be accused of practising a deception on the people to whom they were offering that proposal. The cruelty of that would become apparent when it would have to be admitted that the proposal could not possibly be delivered. We face a debt challenge in this country, and we cannot borrow our way out of debt. The Opposition would do well to acknowledge that. Stronger growth and sound public finances are the only sustainable way to deliver better public services, higher real wages and increased living standards.

[Michelle Donelan]

Does my right hon. Friend agree that last week’s OBR study shows that the debt level is 89% of GDP, highlighting that we must continue to be responsible with the public finances to weather any future uncertainty and to ensure that the Wiltshire economy continues to thrive?

[Mr Hammond]

My hon. Friend is right to express concern about the vulnerability created by the high level of debt. As the OBR made clear last week, that debt means that if the economy were to face an external shock, we would not be in a position to respond in the way that we would ideally like. That is why we have to get debt down, and the only way to get debt down is to get the deficit down. That means responsible fiscal policy, not the kind of rubbish we hear from Labour Front Benchers.

Class 4 National Insurance Contributions

Michelle Donelan Excerpts

Wednesday 15th March 2017 Commons Chamber

[Mr Hammond]

As the hon. Gentleman will know, this Government have introduced a raft of measures over the years to target the avoidance of tax by large corporations, and we have raised a very substantial amount of additional tax—well over £100 billion—through those measures. The VAT flat rate scheme, which he mentioned, was introduced to assist the smallest businesses, but it had been turned into a systematic route for abuse, and I am afraid that we had to deal with it to make sure that the tax base was not eroded. However, we will always seek to support the genuinely self-employed hard-working people who are the backbone of this country’s economy.

[Michelle Donelan (Chippenham) (Con)]

On behalf of all the hard-working self-employed people in Wiltshire, I thank the Chancellor for his announcement today and welcome it. The introduction of a new state pension marks a significant increase in retirement provision for the self-employed, but without any auto-enrolment scheme, they still do not have parity on pensions. Will the Chancellor please remember that and look at it?

[Mr Hammond]

Yes. As we have now cast more widely our review of the differences in how employees and the self-employed are treated, it is right that we should look at that particular aspect as well, and we will do so.

Small Charitable Donations and Childcare Payments Bill

Michelle Donelan Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons
Tuesday 11th October 2016 Commons Chamber

[Rebecca Pow (Taunton Deane) (Con)]

I am very pleased to follow the hon. Member for Clwyd South (Susan Elan Jones) who made some very sensible points about euros. I also welcome her positivity about the Bill in general. We have had some fascinating insights into the charities in our constituencies. It is very heartening to hear how interesting and fascinating they are and also what a charitable lot people are on the whole. That must be welcomed.

Like many Members, I have been at the end of the supermarket check-out shaking my bucket. I have helped to pack people’s groceries into bags in the hope that they will put some money into my box. I usually put on my environmental hat as well and check that they have a recycled bag. I have often been there supporting charities with my children, my friends and my family, and I know that so many other people in my constituency do that on a regular basis for so many deserving causes. For example, there is the Young Farmers Club, the West Hatch scouts, and village school fundraisers.

The SURE cancer charity in my constituency earns most of its money from small collections such as the bucket collections I have referred to. They are essential. Many of our amateur sports clubs have to collect money in that way. I have collected money with the Blackbrook tennis club, Taunton Vale hockey club and many more besides. Usually small sums of money are collected, but they are so useful. The charities really do rely on such collections.

I applaud the people who go out day in, day out collecting for small charities in my constituency, gathering money to do good work that really needs to be done—often to protect vulnerable people.

[Michelle Donelan (Chippenham) (Con)]

Does my hon. Friend agree that it is fantastic that the changes in the Bill also include community amateur sports clubs? I know that that will be particularly welcome to groups such as bowls clubs and various other clubs in Wiltshire and up and down the country, which will help us to tackle obesity and champion healthy lifestyles.

[Rebecca Pow]

I welcome that intervention. I will come on to sports clubs. I know that my hon. Friend is sporty herself, as am I. Everything that we can do to help sporting charities is welcome. She raises an important point about the connection between health and wellbeing. Anything that we can do to help such clubs should be encouraged, and the Bill will definitely help.

--- Later in debate ---

[Chris Green (Bolton West) (Con)]

It is a pleasure to follow so many fantastic contributions from Members on both sides of the House, especially my hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson), who relayed his personal experience.

I am pleased that the Bill seeks to simplify and increase access to the gift aid small donations scheme, which has been criticised by some charity bodies for being too difficult for small charities to access. By scrapping the 2012 requirement that charities must have made successful gift aid claims in at least two of the previous four years, the Bill will enable newly formed charities to access the gift aid scheme. That will be especially helpful for volunteers working for charities when they have less administrative experience and smaller charitable organisations.

I am pleased that broadening the scheme will allow charities to make an additional claim in respect of donations raised as part of charitable activities in community buildings.

[Michelle Donelan]

Does my hon. Friend agree that the scrapping of the two-year rule will prove invaluable for new charities, because it is in their first few years that they either succeed or fall? I am the trustee of a charity in Chippenham called Helping Victims of Domestic Violence. It is flourishing but overcame a number of problems in its first few years and would have benefited invaluably from the measure.

[Chris Green]

I agree entirely with my hon. Friend. In that sense, charities are a little bit like small businesses. The most challenging time for both is at the beginning.

The Bill gives freedom of movement for charities such as churches, meaning that donations do not necessarily have to be made on the site of the church for the gift aid scheme to apply.

Like many constituencies, mine boasts many charitable organisations that do fantastic work for the community. I should take this opportunity to thank them all for their work. I have always appreciated the various different charities in and around my constituency but it was only when I became a Member of Parliament did I appreciate how much work is done. The Horwich Community Working Together event, which involved 50 different charitable organisations coming together to share ideas and best practice, was such an eye-opener. Westhoughton Community Network is another fantastic organisation that works to bring together different charitable organisations to share that experience and knowledge, and to stand in solidarity with one another.

Summer Adjournment

Michelle Donelan Excerpts

Thursday 21st July 2016 Commons Chamber

[Michelle Donelan (Chippenham) (Con)]

A little over a year ago I had the privilege of delivering my maiden speech, during which I set out my pledges to my constituents. I emphasised that the point is not where people come from but where they are going, and that our duty in this House is to create opportunities. I would like to use this debate to discuss the engineering skills gap and the work I have done to open up opportunities in my constituency.

One of my key pledges was to back businesses—to help them to create and retain jobs and to encourage more apprenticeship schemes—and ensure that local people, young and old, are aware of the fantastic opportunities available in Wiltshire. I also want to inspire them with the knowledge that we have some leading companies, such as Siemens, Hitachi, Good Energy and the Moulton Bicycle Company—the list is endless. In the past year I have visited more than 100 local businesses to learn more about what they need and what the Government can do to support them.

Despite the importance of this House, I must stress that it is the businesses that are the job creators that put food on the table and money in the pockets of local employees, not the politicians. We are blessed in Wiltshire with record levels of high employment, boosted by the figures that were released yesterday, and record numbers of apprenticeship schemes, but there is still a lot more to do to make sure that our disadvantaged get opportunities and to tackle the problem that we have with long-term unemployed.

The real issue in the Chippenham constituency is found by looking a little deeper. The real problem is the skills gap in technical, design and engineering roles. In September this year I will hold the inaugural Wiltshire festival of engineering, with more than 40 local manufacturing, design and engineering companies. They will meet more than 1,200 local school pupils, with the aim of addressing the local science, technology, engineering and maths skills gap, inspiring the next generation to consider those career options and dispelling any misconceptions. It is also designed to showcase the impressive array of businesses I have mentioned across the region and highlight the fact that Wiltshire is a hub for this sector.

I pledged also to address the infrastructure problems that we have locally, to help to tackle our skills gap. Owing the time constraints, I cannot explore the issues of Corsham station, how I have worked to protect the TransWilts railway service, or what I have done to address Bradford on Avon’s long-term traffic problem.

I will, however, explore the topic of the letter sent to the new Prime Minister and Secretary of State today, signed by me and 86 colleagues from both sides of the House, about a slight tweak to the English baccalaureate that we believe would dramatically improve the qualification. I have developed a reputation in the House for banging the drum on—some might say, banging on about—this topic, but it is crucial. The campaign is for the inclusion of the new, vastly improved design and technology GCSE in the English baccalaureate qualification. It is supported by the James Dyson Foundation, the Design and Technology Association, the Royal Academy of Engineering and a host of other businesses and organisations across the country.

Earlier this year, I had a Westminster Hall debate on the topic, which was well attended and supported. Many of our constituents suffer from the skills gap that threatens our businesses and fuels the local and national productivity crisis. The UK faces several challenges, with the annual shortage of 69,000 trained engineers and only 6% of the engineering work force being female. As I have stressed, businesses have told me that they cannot recruit adequately. That means that they might leave not just Wiltshire but, potentially, the country and that would turn our market towns into dormitory towns, threatening the very fabric of our communities. It is, therefore, the Government’s responsibility to ensure that our education system serves our businesses and our economic needs, as well as ensuring that students are encouraged into areas that can actually get them jobs.

Despite the fact that the EBacc has been reformed, its current form still threatens to undermine any progress being made and does not address the stigma associated with careers in engineering and STEM. There has been a massive drop in the uptake of design and technology courses, and in the schools offering them. Students do not have the opportunity to taste such careers, so how can the stereotypes be dispelled to let them understand what such careers are all about?

There has been a great deal of investment in design and technology as a course, and the new course will be launched in September 2017. It has been designed over years in partnership with business. It is robust, science-based, academic and a valuable option as a GCSE. However, it comes a little too late and will not really stop the growing trend of high uptake of EBacc subjects and five more, meaning that the credible design and technology course will be squeezed into a single or double subject option box. I hope the new Prime Minister and the Secretary of State will bear that in mind. There is currently a unique opportunity to include the new robust and rigorous design and technology course within the English baccalaureate certificate as one of the science qualifications, and as an either/or with computer science. This opportunity must be seized. The skills shortage is a ticking time bomb and we must get to grips with it if we are to remain at the forefront of global product design and tackle our productivity crisis.

We have a duty and an economic need to plug the skills gap on both a local and national level, and to address our productivity crisis. It is also, as I have said, threatening the very fabric of the market towns in Wiltshire, as well as the country as a whole. I have touched briefly on what we can do to improve the situation in just a few areas, in particular reforming the EBacc to include design and technology. We must address this issue to encourage and enable opportunities. If we do not, rest assured that the ticking time bomb will one day explode.