Education Maintenance Allowance

Nadhim Zahawi Excerpts

Wednesday 19th January 2011 Commons Chamber

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

I echo the words of my hon. Friend the Member for Bradford East (Mr Ward) and thank the Opposition for this debate on EMA. Historically, they have been vexed about how to pay for the scheme.

If we are to have a credible debate today—[Interruption.] I apologise, Madam Deputy Speaker. My tie to support the campaign against bowel cancer was making that noise—it is a musical tie that the campaign was giving out.

[Madam Deputy Speaker]

Order. Perhaps next time the hon. Gentleman will be more selective in the ties that he wears in the Chamber, and then we will not need to have the musical accompaniment.

[Nadhim Zahawi]

Your words of wisdom are taken on board, Madam Deputy Speaker, and I apologise to you.

If we are to have a credible debate, we must look at this issue in the round, and that means that we must look at the economic legacy we inherited from the previous Government. Our structural deficit is one of the largest in the world, and it is simply unsustainable. We are having to borrow £500 million a day. Every time we go to sleep and wake up in the morning, we rack up another £500 million. The debt interest—the money that we have to pay in interest to foreign banks and foreign countries to build their own hospitals and schools with—is £120 million a day, every single day.

I come from a rural constituency with some areas that have no post-16 provision, so I am all too aware of the additional costs that students will have to bear. Shipston high school in my constituency has lobbied me very hard on this subject, as has Martin Penny, the head of Stratford-upon-Avon college—a fantastic institution in my constituency with 5,000 students and 450 staff. I addressed the students during the week of the tuition fees debate, and after we had cut through the misinformation they understood why we were having to make these decisions.

[Charlotte Leslie (Bristol North West) (Con)]

I apologise for missing the beginning of this very important debate.

I thank my hon. Friend for setting out the economic realities. Does he agree that when there is a dire economic reality, the correct moral thing to do is not to bury our heads in the sand and carry on spending unsustainably, which will end up damaging the very people we want to protect because in the long term it will do the country no good, but to be really rigorous and focused in ensuring that the resources that we do have are absolutely focused on the most vulnerable?

[Nadhim Zahawi]

That is exactly right. In fact, the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), when he was Prime Minister, hoped to pay for EMA by reducing the debt on the young people of this country.

Transport is an important issue that was raised with me by Martin Penny from Stratford-upon-Avon college and has been aired by Members on both sides of the House. As my hon. Friend the Member for Nuneaton (Mr Jones) said, it is an issue not only for rural constituencies but for urban areas too. I am pleased that the Secretary of State has made some encouraging remarks about opening up the discretionary fund to allow such colleges as Stratford-upon-Avon college—which are best placed to judge because they are closest to students and their families—to target some of that money on those who most need it.

In the spending review, the Government committed to refocus the support, because all the data show that the £560 million spent on EMA every year was not well targeted. I am pleased that the Secretary of State confirmed in his opening remarks that the Government will target the money on those with special educational needs. I was a governor of a special educational needs school that was shut down by the previous Government and I know how important it would be to those families if the money was targeted in that way.

I ran a research company for 11 years, and I am passionate about evidence-based strategy. The National Foundation for Educational Research report commissioned by the previous Government, which we have heard about today, found that almost 90% of young people who receive EMA would have completed their education or training course if they had not received it. In an interview, the shadow Secretary of State admitted that some of the money went towards students buying drinks and partying. He therefore probably agrees with me that the money is not well targeted. I see him leaning forward, and am happy for him to intervene.

[Andy Burnham]

I will intervene, because I did not say that, and I would be grateful if the hon. Gentleman corrected the record. I said that young people should be able to play a full part in the life of the college. If that means trips to musical events, the theatre or political events in the evening, they should be supported to play a full part in them. I would be grateful if he was a bit more careful with his language in future.

--- Later in debate ---

[Nadhim Zahawi]

I thank the shadow Secretary of State, but let me quote him:

“Yes, they may spend some of it on food and even the occasional time out with friends… But part of being in a college means taking part in the whole life of a college, and why should we say to young people from the least well-off backgrounds, well, ‘you can’t have those things’.”

That settles that one. We also know that almost 50% of students are in receipt of EMA. That fact demonstrates that it is not well targeted.

In my old profession, when the research has been done and there is evidence for a strategy, if one does not like the findings, one should not throw them away and go into denial about them. Several Opposition Members have trashed the research because it does not suit their argument. As well as saying that he hoped to pay for the EMA through a reduction in debt, the right hon. Member for Kirkcaldy and Cowdenbeath said that he would pay for it by scrapping post-16 child benefit. I wonder whether that will become Opposition policy.

The Government have demonstrated their commitment, as we heard clearly today, to invest in the young people of our country. They are investing £7 billion in a fairness premium designed to support young people of all ages. The introduction of the all-age careers service will improve the information, advice and guidance that the National Foundation for Educational Research said needed to be improved. The Government are continuing to invest in providing apprenticeships, and have committed to improving the apprenticeship package so that level 3—the A-level equivalent—becomes the level to achieve.

In government, tough choices have to be made. We on the Government Benches have made those tough choices. We have chosen to safeguard spending on the national health service and education. I urge the Opposition, if they want to have a constructive debate, also to safeguard the national health service and education.

[Mr George Howarth (Knowsley) (Lab)]

Unfortunately, I do not think I will be able to compete with the hon. Member for Stratford-on-Avon (Nadhim Zahawi) as regards our ties, but I rather hope that I will surpass the arguments that he made.

Before I get into the meat of my argument, I wish to express a debt of gratitude to Frank Gill, the principal of Knowsley community college, of which I am a governor; to the director of children’s services in Knowsley, Damian Allen; and to Jette Burford, the principal of Hugh Baird college in Bootle, which some students from my constituency attend.

The points that I wish to make have been shaped by a number of conversations and briefings that I have had, but also by a very interesting meeting that I had last year with some students at All Saints centre for learning in Kirkby, in my constituency. They talked about their hopes and aspirations and said that EMA had been a help to them and would continue to be. They also expressed their concern about the reduction in spending on Aimhigher, which had inspired some of them to go to university when they had not previously thought it possible.

The Secretary of State seems to have three arguments about EMA and his replacement for it, the pupil premium. The first is that EMA does not have any real impact on participation and on young people staying on in education. Unfortunately, the hon. Member for Stratford-on-Avon cited a piece of research that does not quite indicate what he thinks it does. It was based on a flawed sample, as several of my hon. Friends have said.

[Nadhim Zahawi]

Will the right hon. Gentleman give way?

[Mr Howarth]

I will not. The hon. Gentleman has had his opportunity.

[Nadhim Zahawi]

You have mentioned me twice.

[Mr Howarth]

Okay then.

[Nadhim Zahawi]

The right hon. Gentleman claims that the sample was flawed. Can he explain why he believes that? It was a representative sample of at least 2,000 interviews, taken in a scientific way.

[Mr Howarth]

I do not know how long the hon. Gentleman has been in the Chamber, but several of my hon. Friends have gone through the flaws in the report’s methodology in great detail.

[Nadhim Zahawi]

What are they?

[Mr Howarth]

I am not going to repeat them. I do not want to make a speech about that particular issue, but I raised it because the hon. Gentleman used flawed research to support his argument.

On participation, I know that 80% of those attending Knowsley community college who are in the relevant age range receive EMA, and the figure is 84% for Hugh Baird college. Neither the hon. Gentleman nor the Secretary of State can gainsay that. Since 1997, the number of young people from Knowsley who have gone on to higher education has gone up by 187%. EMA was not in place for all that period, of course, but those figures indicate to me that it was part of the package of things that enabled people to stay on into further and higher education.

The Secretary of State’s second argument is that there are better ways to reward young people and improve attainment. When he first made his announcement about EMA, I was prepared to accept that that might be the case. I have waited patiently since October for him to explain how it might be, but he has failed to do so, including today. I sat and listened carefully to his speech, but as several hon. Members have said, he chose to make a speech that was more about economic policy than about EMA. Other ways of supporting young people might work better, but unfortunately we have not been told what his case is and nobody has yet demonstrated it.

My final point is that some on the Government Benches seem to believe the argument about the 90% dead-weight, but there is something wrong about saying to young people in less favourable circumstances, “You don’t need any support.” Actually, it is a real struggle for families on low incomes. It is a struggle for young people not only to get to college—there has been a lot of discussion of transport costs—but to live anything like a decent life without some support. I find it deeply offensive when people use phrases such as “dead-weight” when we are talking about people who are struggling to realise their potential and to gain academic qualifications and, in many cases, to go on into higher education when that would have been inconceivable a generation ago.

The hon. Member for Blackpool North and Cleveleys (Paul Maynard) said that he regretted the tone of this debate, but I regret how the needs of those young people seem to have been jettisoned without any real thought or debate whatever. The Secretary of State had to prove that the changes would work, but he did not do so, and he should now withdraw his proposals.

--- Later in debate ---

[Gavin Barwell (Croydon Central) (Con)]

The shadow Secretary of State was right to open the debate with his characteristic passion. I come from a borough that is diverse in every sense and in which there is a shocking gap between the educational qualifications and life chances of the haves and have-nots. I cannot think of an issue that is more worthy of being passionate about than widening access to education and closing that attainment gap.

The coalition Government have done good things in that regard already, such as introducing the pupil premium and school reform. The English baccalaureate will ensure that children from less well-off backgrounds will study academic qualifications that they will need in the workplaces of tomorrow, and the Government have also taken action on apprenticeships and investment in the early years. However, given the economic situation that we are in, not every budget can be protected, so the Government had to take a painful decision on education maintenance allowance. It was right in principle to examine that budget, but I have several concerns about the detail.

EMA is an archetypal Labour policy. Its aim, objective and principle were absolutely right. It is laudable to attempt to widen participation in education, so the previous Government should be congratulated on trying to do that. However, the execution of their policy was expensive and extremely centralist. People have talked about the impact on the poorest in our society, but EMA is paid to people in households earning up to £31,000, which is significantly above average national earnings.

There is some debate about the exact number of people who would not have gone on to further education if they had not received EMA. We have heard about the two reports that have been produced and there is a dispute about the figures. However, everyone to whom I have spoken accepts that some money is going to young people who would have stayed on in further education anyway.

[Nadhim Zahawi]

Does my hon. Friend agree that if the targeting were somehow linked to those who are closest to the students, the system would be much better?

[Gavin Barwell]

My hon. Friend neatly brings me to my next point, which is about centralism. I tried to make this point to the shadow Secretary of State. One of the points that has been effectively raised in speeches made by hon. Members on both sides of the House is the differences among students. Young people who have a caring responsibility, a special need or a long distance to travel to college, or who are young parents, have much greater needs than some other students, so a national scheme that makes a flat-rate payment to everyone who comes from a household that earns a certain amount is not necessarily the best way to address the problem.