16-to-19 Education Funding

Mike Kane Excerpts

Thursday 7th September 2017 Westminster Hall

[Mike Kane (Wythenshawe and Sale East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hanson.

I thank my hon. Friend the Member for Scunthorpe (Nic Dakin) for securing this debate. He has a long track record—it began long before he came to this place —in governing and managing further education institutions. And just look at the turnout that he has got today. It shows the respect in which he is held, particularly on this subject.

I pay tribute to my local college leaders: Lesley Davies at Trafford College and John Thornhill at Manchester College. They run absolutely fantastic colleges, but they face the same pressures as all college leaders up and down the country.

In July, the Local Government Association published a report warning the Government about the failure to address the lack of skills in the UK, which is the fundamental point of this debate. That lack of skills could cost our economy £90 billion a year. The LGA estimates that by 2024 there will be a lack of more than four million highly skilled people to meet the demand for high-skilled jobs. We will have to change.

In Greater Manchester, we are trying to plug the skills gap; I look forward to the discussions that the Department for Education will have about the section 28 designation of the college in the area. Hopefully, the Minister will approve the exciting new plans in the weeks and months ahead.

Those plans need to be approved. With Brexit looming, and frankly a remarkable lack of clarity from the Government on the reciprocal rights of EU workers, there is an urgent need to face up to the skills gap. I normally cover the schools brief. In this country, we have 16,000 school teachers who are EU nationals. We already have a crisis in teacher recruitment and retention, which will only be exacerbated in the future, yet although there is an urgent need to upskill our workforce, since 2010 there has been an overall reduction of £1 billion in the funding for 16 to 18-year-olds. As was highlighted in the debate, the funding for a young person drops by 25% when they reach the age of 16.

According to the Institute for Fiscal Studies, education for 16 to 18-year-olds has been the big loser from education spending changes over the last 25 years. I disagree with my hon. Friend the Member for Scunthorpe: the Government did announce £1.3 billion before the rise of the House, but they have not told us how that money will be spent, and it will not even touch the sides of what is required, given the funding cuts hitting schools. For many years after 1990-91, spending per student was nearly 50% higher in further education than in secondary schools, but by 2015-16 it was 10% lower.

According to the IFS,

“spending per student in 16-18 education is set to fall further”.

This funding gap becomes even starker when we consider the impact on teaching hours and make a comparison with other countries, as the hon. Member for Waveney (Peter Aldous) quite rightly pointed out. The former Secretary of State for Education, the right hon. Member for Surrey Heath (Michael Gove), wanted to compare our education system with that of other countries, as set out in the programme for international student assessment. However, as the hon. Member for Waveney said, pupils in Shanghai receive twice as much teaching and face time as pupils in England. That has to change. How can we expect our children to reach the skills level of Shanghai children when we give such limited time to our young people in college?

Despite the Chancellor’s announcement in the Budget of plans to invest £500 million in technical education, that money will cover only around 25% of those in education and it will not be fully in place until 2021. It does nothing to impact on the cuts that have already been implemented.

Colleges also face confusion over the apprenticeship levy. The levy puts employers in the driving seat when it comes to funding, and we do not know whether moneys will be passed on to colleges in the future.

[Mr Bailey]

An issue that has been brought to my notice is that colleges have to make two applications: one for levy work and one for non-levy work. The tendering process is incredibly complex and very difficult for colleges to plan for, and there is also the fear that small and medium-sized enterprises will be put off by it. Does my hon. Friend have any comments to make on that?

[Mike Kane]

I have, and I am grateful to my hon. Friend for that intervention. There is a huge reconfiguration of training going on, and it has not been properly thought out. That puts additional burdens on colleges. He is right to highlight the point.

There is also confusion about students between 16 and 18 who do not hold a GCSE grade A* to C—or 9 to 4 with the changes that have come in this year—in maths or English. In future allocations, these students have to study maths and English as a condition of funding. Therefore, on top of other funding pressures, there is a risk that colleges will fall off a precipice. That is where we are at, and that is why there are so many Members here today. In May 2015, the Skills Funding Agency suggested that there were around 70 financially unstable colleges.

In the few minutes that I have left, I was going to talk about area-based reviews, but the former Minister, the right hon. Member for North Norfolk (Norman Lamb), spoke very eloquently about the issues we have had with them up and down the country. In Greater Manchester, the process was ably led by the Conservative leader of Trafford Council, Sean Anstee, but these area-based reviews really had no teeth, because colleges have gone away and done their own deals with the Department for Education, even though we have gone through a huge area-based review system up and down the country. The Minister really needs to get a grip on this issue and take a good look at it, as well as taking advice about it from fine council leaders and councillors up and down the land who have struggled to do the right thing but found that the review process just did not work out.

In conclusion, post-16 education faces a perfect storm: low levels of funding per pupil; no acknowledgement of inflationary or cost increases by the DFE, as was ably pointed out by my hon. Friend the Member for Scunthorpe; the unknown impact of the apprenticeship levy; the maths and English funding condition; and a costly and potentially failed review of post-16 education. If we truly want to meet the challenges of Brexit and address the problems it will create for our economy, we must face up to the country’s skills shortage. We cannot do that by undermining our post-16 sector.

I pay tribute to every Member who has contributed today. I am afraid that I have not got round to mentioning them all, but all of them—from all parties in this House—have ably stood up for their colleges; well done to them for that.

[David Hanson (in the Chair)]

Before I call the Minister to respond to the debate, I remind her to leave, if possible, one minute at the end for the hon. Member for Scunthorpe (Nic Dakin) to sum up.