Free School Meals/Pupil Premium: Eligibility
Nadhim Zahawi Excerpts(6 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)
I congratulate the hon. Member for Washington and Sunderland West (Mrs Hodgson) and the hon. Member for High Peak (Ruth George) on securing this important debate. I thank all colleagues who have spoken today, including the hon. Member for Manchester, Gorton (Afzal Khan), my hon. Friend the Member for Brentwood and Ongar (Alex Burghart), the hon. Member for Eastbourne (Stephen Lloyd), the right hon. Member for East Ham (Stephen Timms) and the hon. Members for St Helens South and Whiston (Ms Rimmer), for Stockton North (Alex Cunningham) and for Bedford (Mohammad Yasin).
I worked closely with the hon. Member for Washington and Sunderland West on the all-party parliamentary group on water safety and drowning prevention. I hope we can continue to work closely today. May I also say how moved I was by her heartfelt speech in the debate on the Civil Partnerships, Marriages and Deaths (Registration Etc.) Bill last week? It really moved the whole House, and people beyond.
Today’s debate is timely, as we have considered the responses to our public consultation on changing the entitlement criteria for free school meals and the early years pupil premium. I will be publishing the Government response shortly. It is all part of the drive to ensure every child has the opportunity to make the most of their life, no matter where they live or their background.
Let me start by restating the importance this Government attached to providing hot, nutritious free school meals to the most disadvantaged children. We are committed to continuing to provide those meals to families in need. Last year, about 1.1 million disadvantaged children in our communities were eligible for and were claiming a hot free meal, which saves families around £400 per year, as we have already heard today.
Under the existing benefits-based criteria, children whose parents or guardians receive one or more of the qualifying benefits, such as income support, jobseeker’s allowance and child tax credits, can make a claim to a school and are entitled to receive a hot meal. However, the simplification of the welfare system through the introduction of universal credit means that a number of the benefits that currently entitle families to free school meals will cease to exist.
To ensure that any families moving on to universal credit in the early stages of roll-out in the pilot areas, which we have heard much about today, did not lose out on their entitlement, in 2013 universal credit was added temporarily to the list of qualifying benefits for free school meals pending the introduction of the eligibility criteria. The same temporary measure was introduced for the early years pupil premium when that additional funding for disadvantaged three and four-year-olds was first introduced in 2015, and for the free early years entitlement for two-year-olds, which my Department has consulted on separately. As planned, we now need to replace the temporary measure with clear eligibility criteria under universal credit as its national roll-out accelerates.
In setting the new criteria we have followed five clear principles. First, our approach must protect children from a sudden loss of a hot meal as a result of the changes. Secondly, our approach must be fair in how it treats children and families, and target our support most effectively to those on very low incomes. Thirdly, it must enable more children to benefit from these entitlements. Fourthly, it should be as straightforward as possible, both for parents to understand and for schools to deliver. Last, but by no means least, it must be consistent with the approach the Government have taken to determining eligibility for other passported benefits as universal credit is rolled out.
Nadhim Zahawi
I have a lot to say. Forgive me—I will try to address some of the issues that hon. Members have brought up in the debate. I will make some headway and see where we are on time.
Based on those principles, the proposal we have consulted on is to introduce an earnings threshold for free school meals and the early years pupil premium of £7,400. That is equivalent, depending on a family’s exact circumstances, to an income of £18,000 to £24,000, once benefits are taken into account. We will publish our response to the consultation shortly. I will briefly set out our thinking on the proposals in more detail.
Nadhim Zahawi
Let me just set out the thinking, and then I will address some of the issues that colleagues raised.
First, to ensure our proposals do not result in any child losing out on a hot meal from one day to the next as a result of these changes, we propose to offer generous protections. We propose to protect the status of every child currently eligible for free school meals at the point at which the threshold is introduced, and every child who gains eligibility under the new arrangements during the roll-out of universal credit until the end of the roll-out. Following that period, we will protect all pupils who were protected and are still of school age until the end of their phase of education—for example, primary or secondary school.
Those protections will apply to those on universal credit and the legacy benefits that qualify a family for free school meals. We are not proposing to make any changes for those eligible for free school meals because they are in receipt of asylum support or pensions credits. Those households will therefore remain entitled to free school meals for a long as they retain those benefits.
Nadhim Zahawi
Let me make some progress. I want to share a lot of information with colleagues.
The proposals will not affect the criteria for universal infant free school meals, which will continue to be available to all pupils in reception, year 1 and year 2, regardless of income. I am sure the hon. Member for Washington and Sunderland West supports and agrees with that proposal.
Once roll-out of universal credit is complete, we will move to an earnings-based system, similar to the one introduced in Scotland. Any household earning below that earnings threshold and claiming universal credit will be entitled to claim free school meals for their children. We estimate that, as a result of the threshold, by 2022 about 50,000 more—not fewer—children will benefit from a free school meal, compared with the previous benefits system. That means we will be targeting our support more effectively towards low-income families and the most disadvantaged children.
It is only right that we set a threshold and do not allow every family on universal credit to be eligible. Let me explain why. As my hon. Friend the Member for Chippenham (Michelle Donelan) said, some families can earn more than £40,000 a year and still receive a small amount of universal credit. I think that is a good thing, because it ensures that they are incentivised to continue to work. Although it is right that those families receive some universal credit, free school meals should continue, in my and many people’s opinion, to be targeted at the most disadvantaged families and those on much lower incomes.
Nadhim Zahawi
Let me share this with hon. Members. If we do not set new criteria, the effect would be that about half of all school-age children would be eligible for free school meals. As my hon. Friend the Member for Brentwood and Ongar said, the additional cost would be £600 million for free school meals, or £6.2 billion if we include the pupil premium, which follows that. In contrast, about 14% of children are eligible for free school meals today. That would not be a good deal for the taxpayer, in my opinion, and nor would it be targeting public funding at those in the most need. We have to remember that we want to target money at the frontline of teaching in our schools.
Mr Philip Hollobone (in the Chair)
Order. The Minister might want to do that, but he has got about a minute left, because Sharon Hodgson has to sum up at the end of the debate.
Nadhim Zahawi
Fair enough. I will write to colleagues about the issues I do not address.
The one issue I want to address, because it was picked up by many colleagues, is the cliff edge. First, universal credit removes the major cliff edges in the legacy system, such as 16 hours, so we are moving to a system that is better overall in that respect.
Secondly, the protections we outlined during the roll-out period will ensure that no child loses out on eligibility until after the end of universal credit roll-out. If their parents move over the income threshold, they will continue to be eligible. In the longer term, however, we need to set a threshold to ensure our support is targeted at those who need it most.
Let me pick up the point about the Labour manifesto, which the hon. Member for Wythenshawe and Sale East (Mike Kane) mentioned. The Labour manifesto contained a commitment to free school meals for primary school pupils and said that it will be paid for by a VAT rise on private schools. That is illegal until we leave the European Union. Universal free school meals, which the hon. Gentleman is suggesting now, requires a much bigger number—up to £6.2 billion—so I would like to hear from Labour where that massive increase will come from. It must come from massive tax rises. I think I shall end there, Mr Hollobone.
Mrs Hodgson
I thank the Minister for leaving me time to make some closing remarks.
This has been an excellent debate, although in my opinion it was far too short—it was over-subscribed, which is a good thing, but in the time allocated we obviously had too many speakers. I encourage my hon. Friend the Member for High Peak (Ruth George) to seek a Backbench Business debate, as she was unable to set out fully her expert knowledge in this area. Indeed, all my hon. Friends had to curtail their speeches.
I am very happy that the Minister agreed to meet me—as I think he did—
Mrs Hodgson
Excellent. Will the Minister also extend that invitation to my hon. Friend the Member for High Peak, who as he knows is a member of the Work and Pensions Committee? She has considerable expertise in the area.
I again encourage the Minister to read the school food plan—in particular, chapter 11, on the benefits of free school meals. The School Food Plan Alliance would happily meet him and become his new best friends if he wanted to take them up on that.
The cliff edge needs addressing—it is far too low. If there needs to be a cliff edge for all the reasons the Minister set out, it needs to be substantially higher up: £7,400 is too low.
Oral Answers to Questions
Nadhim Zahawi Excerpts(6 years, 9 months ago)
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Dr Rupa Huq (Ealing Central and Acton) (Lab)
The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)
By 2019-20, we will be spending about £6 billion a year on childcare support, including £1 billion to deliver 30 hours of childcare and pay the higher funding rates that we introduced in April 2017.
Dr Huq
A recent survey by the Pre-school Learning Alliance has found that one fifth of nurseries do not think they will be financially viable in a year’s time. Will the Minister—I know he likes his parties—therefore commit to review the funding rates before more places rated “good” and “outstanding” by Ofsted close down?
Nadhim Zahawi
I thank the hon. Lady for her question. The Government have always been clear that providers can choose whether to offer parents 30 hours and what pattern of days and hours they offer. Our evaluation indicated that a higher proportion of providers were willing and able to offer 30 hours, with no evidence that financial implications were a substantial barrier to that.
Tracy Brabin (Batley and Spen) (Lab/Co-op)
May I welcome the Minister to his place? The Government promised 30 free hours of childcare for all working parents of three to four-year-olds, yet it has been revealed that only a third of providers can offer all the hours for free and that four in 10 do not think they will be able to offer the scheme at all next year. The situation will only get worse if Ministers go ahead with the real-terms cuts in funding of up to £600 a year per child. Will the Minister rethink these cuts, pay providers fairly and keep the promises made to families?
Nadhim Zahawi
We have seen no significant issues with parents gaining places with providers for 30 hours. Of course we keep monitoring the situation, but there are no significant issues. Actually, the numbers are very promising at the moment.
Stephen McPartland (Stevenage) (Con)
Michelle Donelan (Chippenham) (Con)
The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)
As with all policies, we continue to monitor the pupil premium for effectiveness and value for money. Through the Education Endowment Foundation, we seek to ensure that schools are confident in using that evidence.
Michelle Donelan
Wiltshire teachers consistently stress their concerns that many parents fear the potential stigma of registering for free school meals, meaning their children do not get the pupil premium. I have stressed that for years. Will the Minister consider introducing an automatic link between the pupil premium and the benefits system, to ensure that all children who need additional funding get it?
Nadhim Zahawi
Let me be clear: we should not allow any stigma to get in the way of parents seeking the best for their children. We will continue to highlight effective practice by schools that have made a great effort to get children registered for free school meals and share that practice with all schools and local authorities.
Dr David Drew (Stroud) (Lab/Co-op)
I share the opinion of the hon. Member for Chippenham (Michelle Donelan). In rural areas, there is still stigma, and people will not put their children forward for free school meals and, therefore, for the pupil premium. Will the Minister look again at the criteria, to ensure that those children are not losing out?
Nadhim Zahawi
We want to make it as simple as possible for schools and local authorities to determine eligibility for free meals, and we are exploring opportunities to make the registration process more efficient.
Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)
In my constituency and across north Northumberland, the pupil premium and the service pupil premium for my military children are valuable additions to the school budget, as targeted interventions for those pupils. However, they are used more effectively in some schools than others. Will the Minister tell the House what plans the Department has to get Ofsted to look more closely at usage and drive best practice across our schools?
Nadhim Zahawi
There are unique challenges for servicemen and women who move around, and the Education Endowment Foundation is looking at that very seriously.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
The pupil premium is there to support children from disadvantaged backgrounds and to address poor attainment. Is the Minister as concerned as I am that the Northern Powerhouse Partnership has identified that there is a growing north-south divide, which is impacting on attainment, too?
Angela Rayner (Ashton-under-Lyne) (Lab)
I also welcome the new Secretary of State to his place. I wonder whether he will join me in getting a copy of the Conservative party manifesto from the Library, where it is filed under “Political fiction”. He will notice, under the heading “Fairer funding”, a pledge to protect funding for the pupil premium. Instead, it has been cut by more than £100 million in real terms this spending period. Will he now act to keep that promise?
Jeremy Quin (Horsham) (Con)
Maria Caulfield (Lewes) (Con)
The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)
It is clearly incredibly important that autistic children are well supported in their education. We have funded the Autism Education Trust since 2012 to deliver autism awareness training to education staff in early years, school and further education.
Maria Caulfield
I thank the Minister for his reply. We look forward to welcoming the Secretary of State on Wednesday, when the all-party group on autism, co-chaired by me and my hon. Friend the Member for Bexhill and Battle (Huw Merriman), launches its education report. Will the Minister commit to implementing the recommendations of our report, so that we can improve the educational experience for children with autism in this country?
Nadhim Zahawi
I wholeheartedly welcome the report, and I know that the Secretary of State is visiting my hon. Friend and her colleagues on Wednesday, as she said. I look forward to meeting and discussing the report fully with them.
Ruth George (High Peak) (Lab)
My county of Derbyshire is about to cut almost £3 million from children’s services, including almost £400,000 from special needs and disability services to support children. Schools are already struggling, so how on earth will these cuts help, and how will the Government ensure that support for special needs children is improved?
Nadhim Zahawi
No local authority needs to cut those services. There is actually over £9 billion being invested in children’s services because, as in the case of Hackney, for example, it is seen as a priority, so there is no reason for a local authority to do that.
Mrs Emma Lewell-Buck (South Shields) (Lab)
I, too, welcome the Minister to his place. The healthy pupils fund was designed to help pupils with a range of health needs. The Department promised to protect the fund in full but has cut it, leaving a £200 million gap between income from the sugar levy and its spending commitments. Can the Minister explain why he is content to see funding in this area slashed, and will he guarantee that there will be no more cuts?
Nadhim Zahawi
Not only is the Department spending the £275 million from the sugar levy; we are going over and above that. We are spending over £400 million on making sure that students are healthy.
Layla Moran (Oxford West and Abingdon) (LD)
Mr William Wragg (Hazel Grove) (Con)
The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)
All children must be kept safe, and we take tough intervention action when any council fails in its duty.
Mr Wragg
As the case in Rotherham today shows, the introduction of experienced and high-quality leadership is part of the answer. Will my hon. Friend, in his new portfolio, take on board the recommendation of the Select Committee on Education and place a greater emphasis on giving support and guidance to children’s services when considering intervention?
Nadhim Zahawi
Many Government interventions provide support and guidance that works within an authority’s existing structure. In serious cases, an independent commissioner can provide those recommendations, and of course the ultimate reprimand is to be put in a trust.
Tony Lloyd (Rochdale) (Lab)
Clearly, we cannot afford to have failing children’s services, but how far do Ministers recognise the massively increased demand on children’s services in Britain, because of things such as sexual exploitation of our young people and the range of difficulties caused by poverty in the home? What does that mean for the commitment of funding?
Nadhim Zahawi
I have been to see both Hackney and Doncaster. In Hackney’s case, there was a turnaround in 2006; in Doncaster, it was over the last two years. It is about leadership, and a better-quality outcome depends not just on the leaders at the top, but on the social workers on the frontline being able to feel confident in the service that they provide. [Interruption.]
Mr Speaker
The sedentary chuntering of the hon. Member for Ealing North (Stephen Pound) would constitute a book in itself, and it might sell rather well.
James Duddridge (Rochford and Southend East) (Con)
What is the Department doing to help children with special educational needs on their pathway to adulthood and, where appropriate, into the workforce?
The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)
We have introduced the supported internship programme for young people with complex needs, which is having a significant impact on supporting young people into work.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Gordon Henderson (Sittingbourne and Sheppey) (Con)
My constituency has one of the highest number of children with special educational needs in Kent. Would the Minister therefore join me in welcoming the news that the Aspire free school, which will cater for 168 young people with autism spectrum disorder, is due to be built next year in my constituency? Would he also join me in congratulating local people who campaigned for many years for such a school and the Grove Park Academies trust, which has taken up the baton to deliver that school?
Nadhim Zahawi
I congratulate everyone involved in campaigning for and setting up the Aspire free school, including the Grove Park Academies trust, which will oversee the development of the new school.
Emma Dent Coad (Kensington) (Lab)
Luke Hall (Thornbury and Yate) (Con)
Schools in south Gloucestershire have welcomed the special provision fund, which is providing targeted support for pupils with special educational needs and disabilities. Can the Minister outline any plans he has to continue that fund beyond 2018, so that south Gloucestershire can continue to improve the standard of provision we provide?
Nadhim Zahawi
The Department has allocated £250 million of capital funding over and above the basic need funding to help to build new places at mainstream and special schools and to improve existing places to benefit current and future pupils.
Wera Hobhouse (Bath) (LD)
Schools in the most deprived areas of Bath are losing between £25,000 and £75,000 under the new funding deal. What should be cut in those schools: teaching posts or mental health services?
Siobhain McDonagh (Mitcham and Morden) (Lab)
Not all children arrive at school equal, and those who are homeless and in temporary accommodation have the worst set of circumstances. Mrs Sheridan, a headteacher in my constituency, recently wrote about her pupil Jack, who has become an absentee student since going into temporary accommodation. What does the Minister’s Department say to those children in temporary accommodation?
Nadhim Zahawi
We know that moving into temporary accommodation can mean changing schools, which is strongly associated with poorer attainment. We provide schools with extra resources to ensure that all pupils, regardless of their home circumstances, can go as far as their talent and hard work take them, but I will look at the case the hon. Lady mentions.
Henry Smith (Crawley) (Con)
I congratulate the Secretary of State on his position, and I do not apportion blame for the problems at Broadfield House in my constituency, which has had school failure after school failure, but can I ask for a meeting to ensure that this facility is back in educational use for the local community as soon as possible?
School Holidays (Meals and Activities) Bill
Nadhim Zahawi ExcerptsFriday 19th January 2018
(6 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)
Will you, Madam Deputy Speaker, pass on our birthday wishes to Mr Speaker, as I understand it is his birthday today?
I congratulate the right hon. Member for Birkenhead (Frank Field) on promoting this Bill and making such a clear case for change. As a new Minister, I hope that I am able to emulate his exemplary and tireless commitment to improving outcomes for disadvantaged families, and I wholeheartedly applaud his ongoing efforts in this area.
Let me set out what this Government have done to tackle poverty and disadvantage. Last April, the Government published their “Improving Lives: Helping Workless Families” strategy, which focused on measures that tackle the root causes of poverty and improve children’s welfare. Tackling poverty, and its root causes, is a key priority for this Government, and we know that for most people work represents the best route out of poverty. Unemployment has not been lower since 1975, and the proportion of workless households is at its lowest since records began. Our welfare reforms are working. Let me give an example. Analysis by the Resolution Foundation has shown that our national living wage lifted 300,000 out of low pay last year. That is the biggest uplift out of the lowest bracket since 1970.
We recognise, however, that there is more to do, and the Government are committed to delivering a country that works for everyone. I am, therefore, keen to work with the right hon. Gentleman and other stakeholders to help the most disadvantaged pupils to have access to activities and healthy meals during school holidays. That has the dual benefit of ensuring that children have access to healthy food and enabling them to gain skills and experiences that can unlock future opportunities.
My Department’s breakfast clubs programme is one area in which we are already exploring how we can tackle that issue. The programme will not only expand breakfast clubs in at least 1,500 disadvantaged schools; it will also promote innovation through projects that focus on addressing access and delivery barriers and improving the health and education outcomes of disadvantaged children. I also agree with the right hon. Gentleman that we must look at how best to ensure that the most disadvantaged pupils have access to activities and healthy meals during the school holidays.
I am, therefore, pleased to confirm today that the Government will launch research, as the right hon. Gentleman has requested, into how best to ensure that more children from disadvantaged families benefit from healthy meals and enrichment activities during the holidays, including through targeted pilots. The programme will include engagement with stakeholders and will enable us to assess the impact of Government intervention.
Where I differ with the right hon. Gentleman is in his belief that primary legislation is required to address the issue. I do not believe that that is the case. Moreover, it would not be sensible to impose a duty on local authorities to deliver such provision until we have more evidence about the scale of the issue, the most effective ways of tackling it, and, of course, the costs and burdens associated with doing so.
The Government therefore oppose this private Member’s Bill. However, as I have already confirmed, the Government will support the right hon. Gentleman’s proposal to investigate the best way to ensure that the most disadvantaged children have access to activities and healthy meals in the school holidays. The research programme will include funding for a targeted pilot programme, as he and I have discussed. That will allow the Government to consider if and how they should intervene in the long term. That programme of work will focus on the best and most cost-effective ways to address the issue, with an emphasis on securing the best possible value for money.
We will ensure that we do that by maximising the use of existing resources and focusing on targeting those areas in greatest need, building on the good work that is already under way in many local communities. However, only once the findings from the evaluation are available will it be possible to reach an informed view about next steps. We will want to consider these findings carefully, taking account of value for money. Before we have the evidence, it would not be right for me to make any commitment today to further action, either in terms of introducing a national policy or placing a duty on local authorities to offer such provision along the lines proposed by the right hon. Gentleman’s Bill.
Frank Field
I entirely understand why the Minister does not want to go down a primary legislative route, but the main aim of the Bill was to invite the Government to match the extraordinary efforts of the voluntary sector and undertake their own pilots. Equally important, however, is the research side. We need to understand what is the best way of delivering this service to poorer children, and also to understand the educational consequences of such a programme. I hope that, in the not too distant future, we shall be ready to greet the Minister when he rises to introduce his own Bill based on the pilots and the research. As he knows, there is massive support for my Bill on both sides of the House, not least his own side.
Nadhim Zahawi
I thank the right hon. Gentleman for dealing with this issue through an evidence-led strategy. He agrees with the Government that we need to conduct the research and the pilots in order to understand what is happening.
Kevin Foster (Torbay) (Con)
I can give some evidence of Conservative support for this work. How will the pilots be selected? Will it be done on a local authority basis?
Nadhim Zahawi
It is early days. We are currently considering how we will conduct the research, and when we have conducted that research we will, hopefully, be able to tell the House how we will conduct the pilots.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
I am grateful to the Minister for announcing at least some progress. Will the pilots involve looking into how the sugar tax could be used to help to feed children during the holidays?
Nadhim Zahawi
We have secured funds for the research and the pilots. The hon. Lady will know that the sugar tax has been committed to many other matters in the Department that are equally important.
Several hon. Members rose—
Nadhim Zahawi
I will make some more headway first. Then I will take a few more interventions.
To reach an informed decision, we will work across Government. We will begin immediately to carry out rapid research, along with further stakeholder engagement. That will enable us to learn from those who are already active in the field about how to achieve the most positive outcomes. I am keen to work in partnership with the right hon. Member for Birkenhead to drive that forward, and I will be most grateful for his continued support and expertise. We will, in particular, look to colleagues in Wales, who are already offering “food and fun” holiday schemes, and to the teams who have evaluated them. We will learn lessons from similar schemes elsewhere. There are, for example, the opportunity areas, six more of which we have launched today. We will also consider how to build on breakfast club provision. Drawing on the learning from the research and engagement, we will set out our plans for the research, including the pilot programme, later in 2018.
Diana Johnson (Kingston upon Hull North) (Lab)
Will the pilots take place this year? In Hull we are already trying to plan for a scheme to be in place in the summer, and it would be nice to know whether we could apply for funds to conduct one of the pilots.
Nadhim Zahawi
We will begin the research immediately. The difficulty with beginning the pilots in the holidays this year is the procurement process, but I want to begin them as soon as possible.
Several hon. Members rose—
Nadhim Zahawi
I want to make a little more headway.
It is important for any provision to take account of local need, so we will seek to ensure that our approach can respond to a variety of circumstances and contexts. For example, we will aim to cover rural as well as urban areas, to work with different types of schools and across educational phases, and to ensure that provision can be accessed by children with special educational needs and disabilities. We will build links with and between local partners by, for instance, assisting voluntary and community sector organisations to work collaboratively with schools to achieve those aims.
Ruth Smeeth (Stoke-on-Trent North) (Lab)
Will the Government also use research from pilots that the voluntary sector led last year, when 10,500 meals were served in my constituency?
Nadhim Zahawi
I would very much like to see that research. We will both collate research already done and commission new research. We want to get this right.
The research programme will begin immediately and will include some initial work in the 2018 summer holidays followed by further piloting in the 2019 Easter and summer holidays. The Government work will investigate how to provide a balanced, enriched programme for the most disadvantaged school-age pupils.
The debate stood adjourned (Standing Order No. 11(2)).
Ordered, That the debate be resumed on Friday 27 April.
Oral Answers to Questions
Nadhim Zahawi Excerpts(8 years, 9 months ago)
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Sajid Javid
I have not seen that particular report, but now that the hon. Gentleman mentions it I will be pleased to take a look. He is right to identify skills as a key issue in helping to create jobs and increase productivity. That is why, for example, we have introduced the apprenticeship levy and are putting forward plans for that. It will make just the kind of difference that he is looking for.
Nadhim Zahawi (Stratford-on-Avon) (Con)
I thank the Minister for Skills for supporting the apprenticeship awards at Grosvenor House last week. We gave out awards to small and large businesses and to brilliant apprentices, as well. Would it not be great if next year we had awards for the public sector, with all the permanent secretaries at next year’s awards, after today’s Bill goes through the House, and if we saw the public sector really getting behind apprenticeships?
Nick Boles
Mr Speaker, you will have noticed that my hon. Friend has a badge shaped like a capital A on his lapel. I am sure that we could all think of many things that that could stand for, but in his case it stands for apprenticeship ambassador. He is a fantastic ambassador for apprenticeships and I am sure that, during next year’s awards, the public sector will be able to show itself as a supporter of apprenticeships.
Enterprise Bill [Lords]
Nadhim Zahawi Excerpts(8 years, 9 months ago)
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Ms Angela Eagle (Wallasey) (Lab)
I compliment the Business Secretary on one thing at least, and that is the title of this Bill. Just listen to how it sounds when you say it aloud, Madam Deputy Speaker: the Enterprise Bill. It sounds important, dynamic, even exciting. To me, that is the title of a Bill that should be heralding a huge change in how we do business in this country. In time, it ought to be one of those Acts of Parliament that historians will look back on and describe as the most important of the age. After all, it is clear that the world is now on the cusp of the fourth industrial revolution, and if we are not ready for the wave coming toward us, we will miss it. I want us to take advantage of what will be an age of rapidly advancing digitalisation, and an age of robotics and big data that is expected to transform our lives out of all recognition—and to do so much more quickly than we might expect. It will be an age that confronts us with profound questions about how to generate and share prosperity and fight for a fairer outcome for everyone in our society.
As the first industrial nation, we need to react to that challenge if we are to mould it to our advantage. To guarantee our future prosperity and to earn our way in this rapidly changing and competitive world, we must be ready to seize the opportunities. So, do we have a Government who realise the importance of change and transformation at this particular time and who are willing to legislate accordingly for a more active, enabling and agile state? Do we have a Government who will rise to the challenge? On the basis of the contents of the Bill, we do not. We cannot fault their high-flying rhetoric, however. According to the Government, the Bill is meant to be about creating an open, enterprising economy, transforming Britain’s business culture. It is supposed to
“reward entrepreneurship, generate jobs and higher wages for all, and offer people opportunity at every stage of their lives”.
In the other place, Baroness Brady even claimed it was “an exciting attempt” to improve the business ecosystem. All I can say is that she gets excited pretty easily. We have before us a Bill that has been variously described in the other place as a curate’s egg, a hotch-potch of minor measures, a legislative herbaceous border, a dog’s breakfast and even
“a big legal pudding made up of all sorts of ingredients”.—[Official Report, House of Lords, 12 October 2015; Vol. 765, c. 43.]
The last was from someone who supported the Bill.
We have a hugely ambitious title hiding a collection of worthy but minor and underwhelming measures that it is hard for anyone to oppose in principle—that is, in the Bill as written, although we have heard about new things that might change our minds. What we do not have is a piece of legislation that remotely meets the challenges that we know are ahead. We do not even have a Bill that matches the ambition of the Government’s own rhetoric.
Nadhim Zahawi (Stratford-on-Avon) (Con)
Despite all the hon. Lady’s flowery words, I must tell her that small businesses being paid on time will make a huge difference, that 3 million apprenticeships that give people a real opportunity in life and that are good for business will make a real difference, and that curtailing the big payments to fat cats which were the norm under Labour will make a huge difference. She should be embarrassed by her speech and I advise her to rethink her opening remarks.
Ms Eagle
I am now rather embarrassed that I gave way to the hon. Gentleman.
Hon. Members should make no mistake: our economy faces huge challenges. We have a current account deficit made up primarily of the country’s deficit of imports in relation to exports. That now stands at 5.1% of GDP, which is higher than at any point in peacetime since 1830. We also have an export target that the Government are set to miss by a third. Rather than taking action in the Bill, the Government are moving to get their excuses in early, with the Trade Minister recently describing that target as a “big stretch”.
We see no sign of the rebalancing the Chancellor promised six years ago, let alone of the march of the makers that he promised would be carrying us all aloft by now. British manufacturing has been in recession since last year, and output is still falling short of where it was in 2008. A complacent attitude to the UK steel industry is just one symptom of the Government’s neglect of manufacturing and our industrial base.
Just six weeks after presenting an optimistic comprehensive spending review, the Chancellor abruptly changed his mind. He turned up in Cardiff, warning ominously that our economy was suddenly facing a “cocktail” of threats in January that he had apparently failed to perceive in November. Instead of presenting radical action to deal with those threats, the Bill bears all the hallmarks of a frantic search by officials around the far-flung recesses of Whitehall for things to put in it. As a result, it has nine parts—mostly unrelated—dealing with issues ranging from the creation of a small business commissioner with little statutory power to the requirement that insurance pay-outs are made in a timely fashion and that regulators should be mindful of their effect on small business.
There is a welcome extension of the primary authority scheme, which was introduced by the last Labour Government, and which has been a great success. The Bill allows Ministers to set targets for apprenticeship numbers in the public sector, but without explaining where the money to pay for that will come from. It also puts a cap on exit payments, which may have unintended consequences for public sector reform.
Nadhim Zahawi (Stratford-on-Avon) (Con)
I thank the right hon. Member for Don Valley (Caroline Flint) for at least being supportive of the apprenticeship agenda. Let us see whether she votes for the Bill tonight. I support the Bill and would like to congratulate the Minister for Skills on the excellent measures relating to apprenticeships. He took the time last week to speak at the national apprenticeship awards, which, as the Prime Minister’s adviser on apprenticeships, I hosted. The Minister showed the commitment of this Government to recognising the brilliant achievements of existing apprentices and the desire to spread those opportunities even more widely.
I start by mentioning the national apprenticeship awards because they are a perfect illustration of the success that apprentices can achieve, and this Bill will play a key part in expanding that success even further. The event was attended by more than 800 apprentices and business people, all of whom had come together to celebrate. It was a celebration of what an apprenticeship had done for them personally or for their business—even though the great and the good of Great Britain plc and the future stars of our economy had to sit through almost five hours of me co-hosting the event.
I can share with the House the fact that the overriding emotion of that evening was huge optimism. There was optimism about the great careers stretching out before those apprentices, the extent of which those young people were just starting to glimpse for themselves. There was optimism about the new, well-skilled workforce that is pushing businesses to the next level, and about the better products and greater services that those apprenticeships can help to create. It was a humbling moment standing in that room and seeing what apprenticeships can do for both apprentices and businesses. This Bill is all about extending these opportunities.
One nation Conservatism—compassionate Conservatism —has to be, at its root, about providing opportunity: an opportunity for everyone, wherever they have come from, whoever they are, whatever they dream of doing or being, to be provided with the resources they need to achieve that. Great Britain is a country of great opportunity. We sometimes forget that much too easily, but I know it so well, having come from Iraq to being a Member of this House. I want everyone—every single person in this country—to have the opportunities I had. This Bill provides the measures to ensure that the next generation can find opportunity in this country, through apprenticeships, a route often as good, if not much better, than a traditional university degree.
I am delighted by the measures in this Bill to expand apprenticeships in the public sector and protect the quality of the brand.
Ian Paisley (North Antrim) (DUP)
I appreciate what the hon. Gentleman is saying about apprenticeships, but does he also accept that there must be a rebalancing and that that cannot be at the expense of public sector workers? It has to be done thoughtfully and in a fair way.
Nadhim Zahawi
The hon. Gentleman makes a good point, and I will address the public sector element of what I think is a very positive measure in a moment.
As someone who worked in marketing in a previous life, I know that when trying to sell something to someone, it is very important that the product is high quality. That is why I congratulate the Minister on adding legal protection to the term “apprenticeship”. It is vital that that is done; apprenticeships must be aspirational, and any misuse of this word on low-quality courses can be extremely damaging. Both the apprentice and the employer are let down by poor-quality courses, and have their time wasted. Even worse, it could mean that they are put off from being involved in the apprenticeships agenda ever again. Even a small minority can damage the brand and detract from the majority of good news stories which should be shining through. In my work as the co-chair of the Apprenticeship Delivery Board, I have spent time speaking to many businesses, both small and large, and I have found that there is a real appetite to hire apprentices, bring younger people into the company and protect the skills base for years to come. We cannot let them down with poor quality and chip away at this good will.
The hon. Gentleman mentioned the public sector, and the 2.3% public sector apprenticeship target is equally important. As we move towards achieving 3 million apprenticeship starts, it is only right that the public sector delivers its fair share. The public sector employs 16% of England’s workforce but lags behind on apprenticeships, and that is a real shame. There are many brilliant careers both in this country and on offer in our public sector. I am delighted that apprentices will be given a route into our civil service and have this great opportunity provided to them. But this is not just about providing opportunities for apprentices; I believe this provides a huge benefit to the civil service itself.
David Simpson (Upper Bann) (DUP)
Does the hon. Gentleman agree that in order to achieve that higher level of apprenticeship and to create the apprenticeships themselves, there needs to be a working relationship between further education colleges, universities and the business community?
Nadhim Zahawi
That is absolutely right, and the hon. Gentleman raises a very important point. It is why we are organising a roadshow for FE colleges so that best practice can be shared. The Secretary of State has met all the universities, including the Russell Group ones, to explain to them the opportunity here, in both the public sector and the private sector. Degree apprenticeships are going to be a massive opportunity for our universities and for our public sectors. Employers have told me that they are likely to run graduate recruitment alongside apprenticeships, as a means of using the apprenticeship levy funds. That is a real opportunity for universities, because a lot of those employers will be looking for degree apprenticeships. They want to hire the best people as apprentices at a young age, getting them into their company earlier, so that they can develop their skills, build loyalty and enhance productivity. It would be a real shame if the public sector lost out on those talented men and women by not offering enough places and not competing for that talent. I am a firm believer that for any organisation, the most important resource is the human resource.
Good government requires excellent people. Apprenticeships are key to ensuring that that resource remains strong and that the public sector can compete for talent. We must remember that 3 million apprenticeship starts are 3 million chances—3 million opportunities to expand one’s skills, to get a real job, to earn a wage, to contribute, to take part and to get on and do better. The measures in the Bill are vital in meeting that target and we must welcome them. I am delighted to support them tonight.
Small Business, Enterprise and Employment Bill
Nadhim Zahawi Excerpts(10 years ago)
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Nadhim Zahawi (Stratford-on-Avon) (Con)
In the short time remaining I will make only a few points and post the rest of my speech online. This is an ambitious Bill. The Government have, for the first time, legislated specifically for small business, which will strengthen the recovery and see further support directed to Stratford’s job creators.
On procurement, the Labour party left office with only 6.5% of public procurement going to small and medium-sized businesses. Not only were smaller firms denied a chance to compete on a level playing field, but the taxpayer was denied value for money. The Bill will put that right.
Next, and crucially for businesses in my constituency, the Bill contains important measures on access to finance. Everyone agrees on the need for more competition in the business lending market. The Bill will open that market. Banks will be required to refer businesses to other providers and, crucially, business lending data will be available for new challengers. This is about making sure that finance keeps up with the economic recovery.
Alongside access to capital, the Bill addresses cash flow through, in particular, measures to create a more responsible payment culture. The payment practices of all large companies will now be published, the prompt payment code will be strengthened, and the public sector will lead by example.
Oral Answers to Questions
Nadhim Zahawi Excerpts(10 years, 4 months ago)
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Nicky Morgan
I think the hon. Gentleman ought to ask his own shadow Education Secretary, who himself has been teaching unqualified. Government Members believe that head teachers are the best people to know about the qualifications of those who teach children. We want to look at the outcomes, not to be obsessed always with the structures and the people.
Nadhim Zahawi (Stratford-on-Avon) (Con)
Does my hon. Friend agree that it is a national scandal that under the previous Government an estimated 350,000 young people a year were studying for post-16 qualifications that offered no route into stable employment or higher education?
The Minister for Skills, Enterprise and Equalities (Nick Boles)
My hon. Friend is absolutely right. This Government have got rid of 3,000 poor-quality qualifications allowed in by the previous Government who, in doing so, debased the currency of qualifications and led young people up the garden path with no real prospect of getting a job at the end of it.
Oral Answers to Questions
Nadhim Zahawi Excerpts(10 years, 5 months ago)
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Matthew Hancock
The hon. Gentleman was doing quite well until that last exaggeration. I certainly agree that strengthening access to finance is a vital part of securing our recovery, and of course measures in the Bill announced yesterday will help to do that, but according to the FSB, small businesses’ confidence is at a high since Labour’s great recession. Small businesses in the hon. Gentleman’s constituency are playing their part, because unemployment on the claimant count has fallen by 30% in the past year.
Nadhim Zahawi (Stratford-on-Avon) (Con)
Small businesses in my constituency and around the country tell me that the real struggle when they are supplying large businesses is payment terms. Does my hon. Friend agree that requiring large companies to publish their payment practices is an important step in helping to drive a more responsible payment culture between large and small businesses?
Matthew Hancock
I agree with my hon. Friend so much that we put such measures in the Bill we published yesterday.
Birmingham Schools
Nadhim Zahawi Excerpts(10 years, 5 months ago)
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Michael Gove
That is a fair question. Let me say two things to the hon. Gentleman. First, I have asked the permanent secretary to look at our responses to all the warnings that the Department has received, and I think that it would be premature for me to release anything before he has finished his report. Secondly, I have described—both in my statement and in my response to what was said by the hon. Member for Stoke-on-Trent Central—some of the actions taken by my Department which have provided it with a more robust set of tools to deal with extremism than have been available before.
Nadhim Zahawi (Stratford-on-Avon) (Con)
The Secretary of State has described some shocking behaviour—shocking not only to Muslim parents, but to all parents. Does he agree that the failure of Birmingham city council to deal with this problem over a long period demonstrates the importance of the academies programme, which takes powers away from politicians and bureaucrats and hands them to teachers?
Michael Gove
My hon. Friend has made an important point. Some of the most outstanding schools in Birmingham are currently academies and free schools. Indeed, the hon. Member for Stoke-on-Trent Central has previously praised Liam Nolan, the head teacher of Perry Beeches school, who runs an academy chain and has opened free schools. I think that the hon. Gentleman’s attempt to conflate the growth of academies and free schools—and the consequent improvement in school standards—and a risk of extremism constitutes an attempt to jump on an opportunistic bandwagon, which, sadly, is becoming a characteristic of his approach to opposition.
Oral Answers to Questions
Nadhim Zahawi Excerpts(10 years, 8 months ago)
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Elizabeth Truss
I thank the hon. Gentleman for his question. I think that we are at about 90% of our target for this year. It is vital that we get more people into maths teaching, so we have removed the cap on maths teacher recruitment and we are awarding the highest level of scholarships and bursaries to maths. Importantly, we also need more people doing maths at A-level, and we now have record numbers under this Government. We also have record numbers doing further maths at A-level and doing maths degrees. That will increase the supply of maths teachers in future.
Nadhim Zahawi (Stratford-on-Avon) (Con)
6. What progress has been made on the Shakespeare schools festival.
The Secretary of State for Education (Michael Gove)
I am delighted to be able to support and fund the Shakespeare schools festival. We have provided nearly £500,000 to give students the opportunity to prepare and perform an abridged version of a Shakespeare play. More than 1,000 schools—over 62,000 students—have already benefited, and 50,000 more students should benefit this year.
Nadhim Zahawi
In this special anniversary year, the Shakespeare Birthplace Trust’s fantastic Shakespeare week has brought the works of the great bard to thousands of children across the country. Will the Secretary of State join me on 29 April to watch the talented students of Stratford-on-Avon mark the 450th anniversary of the bard’s birth in a special performance in the Speaker’s state apartments?
Michael Gove
Mr Speaker, to visit your apartments,
“Let me not to the marriage of true minds
Admit impediments.”
Yes is the short answer to my hon. Friend.