Careers Advice (14 to 19-Year-Olds)

Neil Carmichael Excerpts

Wednesday 25th February 2015 Westminster Hall

[Stephen Lloyd (Eastbourne) (LD)]

It is a privilege to serve under your chairmanship, Mr Williams. I appreciate the opportunity to debate what I and obviously the many others present in the Chamber consider a tremendously important issue. I chair the all-party group on further education, skills and lifelong learning, and believe that reforms and further improvements to careers advice for 14 to 19-year-olds are still needed. The matter is an important one, which will clearly shape future job sectors and markets in the UK for better or worse.

Many of us will have memories of the careers advice that we received. I am sure that today it is better than it was in my day, but it is an issue that comes up pretty consistently—only yesterday I was talking to some young people when I had a visit from my local college, Sussex Downs. Careers advice is one of those issues that MPs who have employed or hired people, or been hired, know is crucial. Yet we have known for a long while that it has not been as good as many of us think it should be. It is a profoundly important issue, particularly as we are clearly in an ever-more globally competitive society.

Good and appropriate careers advice is crucial and we are not where we should be yet. There have been pluses in the past decade, but I profoundly believe that there have also been weaknesses. As I shall explain, some of what the Government have done has improved things, but there is a need to go further. As we are approaching the general election I am waiting to hear also from our Opposition Front-Bench colleague, the hon. Member for Makerfield (Yvonne Fovargue), whom I am delighted to see here. There are many colleagues in the Chamber and they will make suggestions, and this is an opportunity for both the Front Benchers to consider them and come up with further improvements to careers advice after the election.

We all understand that our children deserve comprehensive and fully informed careers advice, so that pupils can make informed decisions. That is more complicated now than in my day because there are many more jobs. Swathes of career opportunities exist now that did not when I was young; but that brings its own complexities. If young people are not informed properly and intelligently about the wide range of jobs, how can they make an informed choice? They cannot, and that is a terrible waste.

[Neil Carmichael (Stroud) (Con)]

Does my hon. Friend agree that it is essential that young people be given access to the kinds of businesses they might be interested in, and that that applies particularly to engineering? Then, they can get the taste for it and choose the right subjects to study in due course.

--- Later in debate ---

[Stephen Lloyd]

I concur very much with that intervention.

There is an issue to do with careers advice that I find extraordinary. We all understand the importance of good careers advice and careers officers, and I have always found it slightly odd that Governments of either side have never made a song and dance about them, or applauded or provided incentives or reward programmes for very successful careers officers. A really good careers officer can play one of the most significant of roles in a young person’s career or future. Yet I have never seen in the paper a picture of Jane Smith or John Doe as the best careers officer in the south-west, rewarded by the Prince of Wales. I hope hon. Members see what I mean; the role should be much more of a career. We should get the best people, who should be rewarded. They should be financially rewarded even better than they are, but more importantly there should be a sense that it is desirable for talented and able people to become careers officers. If we could get to that situation, it would make a difference.

[Neil Carmichael]

To move away from that theme slightly, does my hon. Friend agree that university technical colleges provide a good launch pad for careers? Getting that training, in engineering, for instance, with the support and involvement of businesses, is in itself a useful careers advice process.

[Stephen Lloyd]

Yes, I agree, with one caveat. The principle of UTCs is good, but I would like them to be clear about working closely with further education in their area. For decades, one of this country’s challenges with the issue has been that changes and improvements have often been fragmented. UTCs are a good example of that. I admire Lord Baker’s good work on them, but some of them already appear to be acting in silos without the local FE colleges and other training groups, and that is a mistake. I take on board my hon. Friend’s intervention, but, because he has good links with the UTCs, I ask to him to remind them to work closely in partnership with others.

Partnership was mentioned, which is crucial in careers. When partnership works, we can get young people into the right jobs and give them the right opportunities to understand what is available out there across the piece with FEs, UTCs, business and schools. That gets a successful outcome, but with fragmentation in silos we do not get that.

As MPs we are often told, and we recognise, that there is a growing skills gap in the workplace. A recent piece, I think in the Financial Times, highlighted that again and we know that is a problem and a challenge. When it comes to universities, everyone holds the same qualifications after graduating and a high proportion of young people compete furiously for the same jobs, while other sectors such as engineering, which my hon. Friend the Member for Stroud (Neil Carmichael) talked about earlier, struggle desperately to entice and recruit people into their profession.

My whole background was in business before I entered politics and I am convinced that, nine times out of 10, the problem is ignorance: young people simply do not know about the wide range of different opportunities and jobs. There are many ways to deal with that, but they come back to why I am holding this debate: clearly, the most important professional in that regard is the careers adviser.

Young people are often misled—that is a tough word, but it is true—to believe that the only, or superior, way into a job is to take A-levels and go on to university. After the general election, I was the first MP to launch “100 apprenticeships in 100 days,” because I had a plan. It was terribly successful in Eastbourne and we have had more than 3,500 apprenticeships since, but more importantly, that galvanised the whole town around apprenticeships. Businesses large and small all got involved and the success rate has been tremendous.

I was at Dominic Hill accountancy only last week, a small company of 10 or 11 people that has three apprentices. One started four years ago and she now has the Association of Consulting Actuaries qualification. Another is two years into his Association of Chartered Certified Accountants qualification, and the brand-new one started on his ACA apprenticeship three weeks ago. When those individuals qualify as accountants—one already has—they will not be loaded with tuition fee debt. They all have jobs and I am pretty darn sure that, after they have qualified, they will stay at Dominic Hill because it is a good company, but, because their accountancy qualifications are portable, they can go anywhere. Therefore, the conversion rate is not 90% or 80%, but 100%.

I had a meeting the other day with the chief executive of AIG, the big insurance company, which is now providing apprenticeships in insurance broking and underwriting, but the vast majority of people still do not know that. The key individuals who would have that information and be able to feed that on to young people in schools and colleges are the careers advisers. Therefore, they are an absolute game changer.

I appreciate that the coalition Government have tried to address these problems, and that is laudable. The Education Act 2011 put schools under a statutory duty to provide independent careers guidance to pupils since its implementation in 2012. I also welcomed the announcement in last year’s autumn statement about the £20 million to be given to improve careers advice, and I applauded the Department for Education’s announcement in December that a careers and enterprise company is to be created to work with employers to inspire and educate pupils. That highlights the Government’s recognition that more needs to be done to improve careers guidance. We are heading in a positive direction.

[Stephen Lloyd]

I do applaud that; that is a really good example of partnership working locally and of a school being proactive. The colleges play a key role—I am the chair of the all-party group for further education, skills and lifelong learning—but schools are crucial. I work closely with schools in Eastbourne and Willingdon in my constituency, so I would be interested in getting some more detail from my hon. Friend to downstream that locally.

I still retain some concerns about the Government’s announcements. Will the Minister shed any further light on what the £20 million will be spent on specifically? What will the remit be for informing young people about the range of apprenticeships in the programme? Will the company work with the FE sector as well? I wait to hear from him on that.

I also note that the Secretary of State for Education took part in a session run by the Select Committee on Education that looked into the state of careers advice. We await the Committee’s report and I look forward to seeing that. More still needs to be done to highlight pathways into vocational or academic education and training.

[Neil Carmichael]

I am grateful to my hon. Friend for giving way for a third time. This time I want to talk about destinations from schools and colleges into workplaces and further and higher education. Does he agree that a better way of measuring the performance of schools is destinations, which would in turn stimulate more involvement in schools in promoting the right kinds of careers?

[Stephen Lloyd]

My hon. Friend has intervened frequently, but with very good points. I concur totally with him. I had a discussion with the head of Cavendish school a few months ago—he is a good guy at a really good school. He said, “Stephen, if I get my brightest youngsters really focused towards A-levels and university, I get a gold star from Ofsted,”—I am paraphrasing a wee bit—“but if I start pointing my brightest and youngest towards apprenticeships, I really don’t.” That is really important. He said, “But I do that anyway.” He is from the north, so he profoundly believes in apprenticeships even though he is in Eastbourne, but that was such an important point.

The Government have to find a way to ensure that the right outcomes for our young people are properly incentivised. Without that, we rely on individual heads and teachers to be brilliant and that is not good enough. I want our teachers to be brilliant, but I have been in business long enough to know that we need processes that underpin the teachers. Funnily enough, the next line of my speech is: how are schools to be incentivised to improve their careers advice provision? I look forward to hearing answers to that from both the Minister and the shadow Minister.

The Association of Colleges recently released a report titled “Careers Guidance: Guaranteed,” which uncovered some figures. They are not rocket science or surprising to the people here—otherwise, they would not be here—but 70% of young people turn to parents for careers advice and 57% turn to teachers. That is completely logical but mad, because, with the best will in the world, parents know only about their specific area unless they are careers professionals or they have a passionate interest in discovering about all of the extra 750 careers options that we seem to have today, compared with in my youth.

I have already explained about teachers. Great though they are, the challenge for teachers is that unless they have been trained, they will only know about their specific experience. We cannot change the fact that kids will go to their parents or teachers; it is logical. Whom do they trust most? They trust their parents. However, we need systematically and profoundly to improve the situation, and to pour focus and resource into improving the careers advice of teachers and improving the careers knowledge of parents, for example, through open days—I run apprenticeship initiatives constantly—so even parents know about the different careers. If we do not do that, in 10 years’ time we will be in exactly the same boat. We will be saying, “We are doing our best with careers advice. It’s not too bad, but—”. Thirty-five years ago, when I was starting out on my business career, the phrase could have been, “Careers advice is not too bad, but—”. Broadly speaking, that is still the case and it has to change. I look forward to the Minister and shadow Minister giving me an update on their proposals.

Recent research carried out by the Local Government Association shows that the drop-out rates cost the country over half a billion pounds. That does not surprise me at all. It will always happen a bit, but I am sure that a lot of that is related to poor advice.

I pay tribute to the National Union of Students, which has been very active and supportive on the issue. It is working closely with me on a separate apprenticeship initiative. It says that because the job market is so competitive these days, it is more important than ever for quality advice to be provided to 14 to 19-year-olds, as I am sure hon. Members would agree.

In my constituency, the unemployment claimant rate has dropped to 2.8%. A lot of the reason why is not just the national economy and the push we are doing locally, but the apprenticeship initiative that has been so successful in Eastbourne. The youth unemployment figure is now 325, which is almost 35% lower than at the height of the recession.

My hon. Friend the Member for Pendle (Andrew Stephenson) talked about a school hub. I would like to share something we are doing in Eastbourne with the Chamber and the Minister, because it is another example of partnership and working together that is very successful. We have the Eastbourne jobs hub, which is slightly similar to my hon. Friend’s example, although not just from a school perspective. It has partners, including Sussex Downs college, Eastbourne borough council, the county council, the chamber of commerce—it is really important to get business right in the tent. We also have a dedicated manager, and I have match funding from each of the different groups, which means that even in a difficult economic climate, the funds can be provided to run it. There are also volunteers supporting the dedicated manager. I opened the hub myself about nine months ago. It is in the library, because having something like that in a central location is really important. It is all about careers advice, recruitment and helping to guide people into different job opportunities, and it is a really successful scheme.

For me, the key thing about schools, which is why I was interested in my hon. Friend’s intervention, is that that sort of scheme needs to be done much more in schools. It is a very good way of bringing businesses into the tent. A lot of companies, small and large, really enjoy going into schools, as long as there is a structure and they know what they are supposed to do. Equally, colleges can support schools on that, because my view is that young people need to start being informed about options around the age of 14, as they do in Germany. From a young age, kids begin to learn more about the different professions and different vocational and training opportunities that are available.