Vocational Education

Nic Dakin Excerpts

Tuesday 4th June 2013 Westminster Hall

[Nic Dakin (Scunthorpe) (Lab)]

On this sunny morning, it is a real joy to see you in the Chair, Mr Gray, and I hope that our expectation of great chairmanship will be delivered by the end of the sitting.

Tomorrow is vocational qualifications day, so this debate is particularly timely. That annual celebration of vocational qualifications is organised by the Edge Foundation and quite properly supported by all political parties and, most importantly, by colleges, training providers and awarding bodies. Celebrations and events will be held around the country, with outstanding achievements being recognised through VQ learner and employer awards. By celebrating learners and employers, VQ day recognises that the relationship between them, supported by providers, is crucial if we are to deliver effective vocational learning that meets the needs of both employers and the economy.

I have been struck by the number of individuals and organisations that have contacted me to say that they are extremely interested in today’s debate, including Cambridge Assessment, Clive Wilson—Franklin College’s excellent associate principal—the Association of Colleges, the National Grid, the Society of Motor Manufacturers and Traders, Pearson, the National Institute of Adult Continuing Education, the Prince’s Trust, the Federation of Small Businesses, the National Union of Students, McDonald’s and the Science Council.

That avalanche of interest is all the more amazing for the consistency with which those different organisations have raised the key issues for setting the landscape fair for vocational education in future. I can identify four broad concerns: first, the need for vocational education in key stages 4 and 5 to be placed in a broad and balanced curriculum offer; secondly, the importance of careers information, advice and guidance being impartial and linked to the economy’s needs; thirdly, the role of apprenticeships; and finally, the challenge of reskilling adults, particularly those who have become workless. Let me take each in turn.

The first issue is about all students having access to a vocational offer within a broad and balanced curriculum. Edge states a bold vision that I hope we can embrace. It has stated that it wants

“an education system where people discover all their talents achieve excellent results and are better prepared for apprenticeships, higher education and work”.

In my opinion, having worked hard to lead a college in delivering improving progression outcomes for students year on year, secondary education in 2010 had arrived at a positive place. That was largely down to the practical good sense of school and college leaders, exam boards and employers, working together within a largely stable framework set by the Government.

[David Simpson (Upper Bann) (DUP)]

I apologise for being late, Mr Gray. I congratulate the hon. Gentleman on obtaining this debate. For many years in Northern Ireland, it was them and us—it was the industry and educationists—but over the past couple of years, the two sides have come together, which encourages young people and helps them to get the skill base that is essential. Does he agree that that is certainly one way to achieve what he wants?

[Nic Dakin]

Absolutely. The hon. Gentleman makes an excellent point about employers and educationists coming together to set an agenda, which can be very powerful in liberating young people and delivering on their potential.

Through a focus on personalised learning, student achievement was being raised and student progression to work and higher education improved. Such personalisation of learning is important. Through the flexible use of BTEC firsts and BTEC nationals, as well as similar qualifications, general vocational qualifications were finding a place alongside GCSEs and A-levels, which led to students achieving more at both 16 and 18. Most importantly, progression into employment and higher education, though not perfect, was strong and improving.

Interestingly, a new study by London Economics shows that a higher proportion of students who do a BTEC and a degree end up in work than those who do straight A-levels and a degree. The research also shows the highly vocationalised HE choices of ex-BTEC students, particularly in STEM subjects—science, technology, engineering and maths—and business finance. Across all regions, BTEC graduates in skilled occupations earn more than their contemporaries. The curriculum we had in 2010 is therefore delivering results for us today. Even the ill-fated diploma spawned the engineering diploma, which has been fêted by engineering employers and HE providers for placing industry in the curriculum driving seat, thereby delivering for young people and the economy, as the hon. Member for Upper Bann (David Simpson) has pointed out.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for securing in this Chamber a very important debate, which every one of us can relate to our own constituencies. Does he agree that one important opportunity in engineering at the moment is for young girls and young ladies? It is a job not only for young men, but for ladies and girls. There has been an example of that in Northern Ireland, with more young girls—and young people—being involved and wanting to do engineering. Should more be done to promote that among the female part of the population?

[Nic Dakin]

The hon. Gentleman makes an excellent point. Many good projects are in place to get girls into engineering, and they must continue to be supported. I noticed in the information sent out by the National Grid how much it stresses the importance of bringing more women into engineering. After all, that covers 50% or so of the potential talent pool, so we need women engineers to help to drive forward the economy.

I hope that the Government, in their consultation to reform vocational qualifications for 16 to 19-year-olds, listen to the wise counsel of the Association of Colleges and others, who caution against a rigid approach to routes that divide qualifications and young people into particular outcomes. The AOC’s Martin Doel has made the point well:

“Currently students can choose a mix of qualifications: they can study an A level alongside a substantial vocational qualification. We are concerned that separate ‘routes’ which segregate qualifications into pre-determined categories will restrict student choice.”

Edge’s insights are also helpful. It has argued:

“Vocational education is often presented as suitable for the 50% of young people who don’t go to university. Young people who do well in academic subjects are systematically steered away from vocational options. This is wrong: it limits choice. All young people should experience academic, artistic, technical, practical and vocational learning as part of a broad and balanced 14-18 curriculum which leads to an overarching diploma at 18.”

The overarching diploma sounds like Labour’s excellent tech bacc initiative, which the party is sensibly consulting on, and which forms part of the ongoing work of Labour’s skills taskforce, chaired by Professor Chris Husbands. By contrast, the Government are in danger of rushing out their alternative tech bacc without sufficient thought and planning, on a time scale that risks endangering the principle of developing a sound alternative for the forgotten 50%.

The Government would do well to listen to organisations such as Edge, which has a track record of engaging successfully with employers in delivering change through their university technical college programme and other initiatives, but, sadly, listening is not one of the Government’s strong points. They turn a deaf ear to those who speak with experience and knowledge, and instead assert that they, the Government—many of them have never worked outside policy think-tanks or media bubbles, and never worked in the real world—know best, even when confounded by the evidence. They pooh-pooh the evidence and press on regardless with their curriculum vandalism. A prime example is their insistence on imposing their narrow key stage 4 EBacc and the limited number of facilitating A-levels, set in a nostalgic image of 1950s grammar schools. Even today, The Times reports that these curriculum vandals are planning to replace GCSEs—a well understood and recognised brand—with something called “I-levels”. Will they never learn?

Before the Minister splutters that to criticise such a direction of travel is to accept lower standards and to become globally uncompetitive, let me assure him that it is not. Wanting high standards is a given across the parties; they are what we all want for our young people. Such an aim is not negotiable. Ironically, the Government’s deafness to evidence and their rejection of the common-sense approach of building on what they inherited in 2010 imperil the high standards that they say they seek. If there is any doubt about that, just reread the Education Committee’s excellent report on the EBacc.

The second area of universal concern was the state of careers education, information, advice and guidance. Again, the Select Committee did some excellent work in exposing the disastrous impact that the Government’s policy has sometimes had on that area. In our debate on the Select Committee’s report in this Chamber last month, it was clear that MPs across the House shared its concerns, but are the Government listening? I fear not. The AOC points out that good advice and guidance is crucial to helping young people make the right choices, and it draws attention to the perverse incentives in the current system that allow new schools to be established even where there is an over-supply of places, which is madness. As it points out, that militates against the provision of truly independent information, advice and guidance, because such advice might, for example, encourage a young person to consider other options than simply staying in the sixth form and doing A-levels.

The National Grid, and other such employers, recognises the value of work experience. It is disappointed that it is no longer a statutory requirement for schools in key stage 4. It says:

“We would urge policy makers to ensure that pre-16 students do get the opportunities to see industry at first hand—particularly STEM based occupations.”

The Federation of Small Businesses calls for a significant programme of careers education from early on in a young person’s education. As Edge says, a show-and-tell approach to careers is badly needed. Starting in primary schools, young people should meet and visit a wide variety of employers, apprentices, further education colleges, training providers and universities. They should also go to events such as the skills show in Birmingham, which has skills competitions, exhibitions and “have a go” areas.

Interestingly, we have just completed an employer-led investigation into the skills needs of the Humber, which I chaired on behalf of the Humber local enterprise partnership. The report, “Lifting the Lid: the Humber Skills Challenge”, will be published on Thursday. Two of the most significant concerns are the quality of careers education, information, advice and guidance and the lack of overriding priority given to teaching those essential employability skills. Why do the Government not rectify that by giving the resource, capacity and capability to LEPs to make the improvements that are badly needed to ensure that the education service delivers what local employers need both now and into the future? That is a way to deliver through City Deals what is needed and to allow city region leaders to make things happen. Why not go further and let LEPs commission Ofsted to do area-wide inspections of the teaching of employability skills in their areas? That would be localism in action and would directly empower employers and reward positive engagement between employers, education and training providers in a locality.

The third thing on which everyone agrees is that apprenticeships provide a significant work-based training opportunity as part of the vocational offer. The National Union of Students underlines the relationship between good impartial careers information, advice and guidance and the uptake of apprenticeships. It says:

“If more people are to be encouraged to enter higher level apprenticeships then work must be done to raise the profile amongst those responsible for delivering IAG.”

Both the previous Government and the current one have done some good work in developing and strengthening the apprenticeship brand, but, as Tim Oates of Cambridge Assessment points out, what is really needed is a strong focus on revitalising the classical apprenticeship. The Richard review represents a strong step in the right direction, and Labour’s skills taskforce interim report is right to take the matter further. It says:

“Apprenticeships need to be longer, more rigorous and focused on the skills that will take our economy forward.”

The Work Foundation is right to recommend that Government should seek to persuade all large employers to sign an agreement to offer high-quality apprenticeships. There is an important leadership role to be played by employers’ organisations such as the CBI and the British Chambers of Commerce to encourage even more employers to come forward and get involved.

In the Humber, we also identified a possible leadership role for the LEP not only in championing apprenticeships, but in considering establishing an apprenticeship training agency or an apprenticeship hub to support more small and medium-sized enterprises to take on apprentices.

In the quite understandable rush for robust higher level apprenticeships, there is a real danger of unintended consequences. We need to be alert to the concerns of the Society of Motor Manufacturers and Traders, which says that

“it is imperative that the overall framework remains the same in order to provide stability and consistency for users.”

Furthermore, if access to level 2 apprenticeships is swept away, we risk leaving a significant gap for the almost 50% of youngsters who do not achieve the progression benchmark of five A* to C grades with maths and English to access level 3 programmes. Currently, they can access work-based training through that route.

[Jim Shannon]

Are we not in danger of leaving some people behind? I am talking about those who perhaps do not have the educational skills but who have the hand skills. It is important that we bring on those people as well. What opportunities can we give such people to enable them to reach high levels of achievement as well?

[Nic Dakin]

The hon. Gentleman puts his finger on the button. I am sure the Government will think through this matter carefully, because it is an area where further thought is needed.

Around 350,000 learners are currently on entry level and level 1 and 2 courses in colleges. The number of students seeking those sorts of courses will rise with the raising of the participation age. Serious thought needs to be given to how to give them the best work-based training options in the future. One option might be to look at developing longitudinal traineeships—the Minister is keen on championing traineeships—that can be matched to longer-term vocational training when considered as part of 16-to-19 study programmes. It would also be sensible to consider how the model might be extended into employment for those who are ready for work, but who are not academically able to access level 3 apprenticeships. If level 2 apprenticeships are no longer available, there needs to be funded flexibility in approach to support young people into meaningful, sustainable work through the traineeship brand.

The final area of concern relates to adult reskilling, particularly when trying to support and encourage people out of worklessness into employment. The National Institute of Adult Continuing Education, which has a long history of success in this arena, makes a strong argument for allowing flexibility and bite-sized learning to be funded in a way that supports learners and employers. More than anything else it believes that

“adult vocational qualifications need to be recognised by learners and employers as well as providing flexibility in terms of design and credit accumulation. There is no doubt that the current levels of learning are not well understood; there is also no doubt that A-levels and degrees have better recognition even though they may not be fully understood. Our work with learners, employers and providers has shown that the unitised and credit accumulation approach which the QCF allows is powerful in helping people get into work and to improve their skills.”

In addition, it is clear that vocational skills delivery for the unemployed requires much more effective join-up between the Department for Business, Innovation and Skills and the Department for Work and Pensions. There have been improvements to the delivery, and the Government should be congratulated on them, but there need to be more. The divide between those who are on the Work programme and those who are the responsibility of Jobcentre Plus does not encourage the development of the holistic, collaborative, personalised programmes that are needed to get people into sustainable employment. There remain silly barriers to accessing training, whereby people’s benefit receipts can cease prior to their securing work even when appropriate training is being followed.

In our Humber Skills Commission, we are bidding for the LEP to be empowered to control and oversee the delivery of programmes to tackle unemployment locally, and to be granted the authority to align local resources more effectively to that end. Such an approach, which would put local businesses and employers in the driving seat to motivate and reskill their local work force, may well be part of the answer. What is undoubtedly clear is the need for more ladders of opportunity and success to be created if we are to get the best out of the people we have already got. So, on the eve of vocational qualifications day, I am pleased to have had this opportunity today to stimulate a debate on the future of vocational education.

--- Later in debate ---

[Robert Halfon]

Unless I misunderstand the hon. Gentleman, as I understand it the school leaving age has been extended to 18 anyway, which was something the last Government did. Given that, I think that if we change the culture in our country, schools will encourage their pupils to take vocational education over university. As I say, we need to change the culture and emphasise to pupils that the vocational qualifications that they will be encouraged to consider will be as prestigious as taking university degrees. On that basis, we should not forget that in this Parliament the Government are setting up 24 university technical colleges—in essence, pre-apprentice schools—and I am incredibly proud that Harlow is getting one, which will open next year. However, we must not settle; we should be aiming to set up at least a hundred such colleges.

We should also be encouraging employers to take on more apprentices. One major hurdle that employers face is the lack of basic literacy and numeracy skills among young people, and we must look at that issue. Recent figures show that 17% of 16 to 19- year-olds are functionally illiterate and that 22% of them are innumerate. It is essential that apprenticeships place a greater emphasis on these basic skills, so that young people are ready to join the work force.

As a country we must create the right climate to encourage businesses to hire apprentices. We have made good progress with this, creating the apprenticeship grant for employers, which gives employers who employ fewer than 1,000 people a grant worth £1,500. It is currently available to employers until 31 December 2013. We will know that the grant is successful if it boosts the uptake of apprenticeship programmes. A new charity called Access is encouraging young people, offering 10,000 youngsters work experience programmes. We need to look at and support such schemes.

Subsidising businesses to take on apprentices works. Essex county council has a groundbreaking apprentice scheme and its employability and skills unit saw apprenticeship starts increase by 87% in 2011, compared with a national average of 21%. The council provides a wage subsidy of up to 70% for businesses taking on new or additional apprentices. If possible, I would like that to be replicated across the country. I look forward to the successes in Essex, led by Councillor Ray Gooding.

I also welcome the idea of a skills tax credit, which would give employers a stronger incentive to hire an apprentice and would create a stronger relationship between the employer and the apprentice. That was recommended in the Richard review of apprenticeships last November. I urge the Government to consider it.

Parliament should lead the way, with clear apprenticeship career paths in Departments. The Minister knows, because I have spoken to him about this before, that I believe that all Departments should replicate the Department for Work and Pensions’ new model procurement contract, which encourages, but does not compel, their contractors to hire apprentices as at least 5% of the work force. That has resulted in the employment of nearly 2,000 extra apprentices who deliver goods and services to the DWP. It is revenue-neutral and should be extended across Whitehall.

As well as changes to incentivise employers to take on apprentices, there should be changes to encourage disadvantaged young people to participate in vocational education. There are currently 900,000 people aged 16 to 24 in England not in education, employment or training. This figure has increased by nearly 50% over the past 10 years and accounts for 14.5% of all young people in England.

We know that 90% of young people who complete their apprenticeship go on to further employment, but some obstacles actively discourage young people from vocational education, particularly if they are from disadvantaged backgrounds. For example, young people at further education colleges are not entitled to free school meals, even if they meet the criteria for them, whereas their peers at sixth form do receive them. The civil servants have said to Ministers that it is too expensive and that schools do not get direct funding for it, even though they are required to provide it by law. The Association of Colleges estimates the cost of extending the right to free meals to college students at around £38 million. I believe that this money can be found through efficiencies. If we are to support vocational education, we cannot say to students who attend FE colleges, which are primarily focused on vocational education, that they are not allowed to have a free school meal even if they qualify for one. That injustice cannot continue.

[Nic Dakin]

The hon. Gentleman makes an excellent point. He probably recognises, as I do, that FE colleges take a higher proportion of people from disadvantaged backgrounds than sixth forms in schools and that they are also a large provider of education to young people aged 16 to 18.

[Robert Halfon]

I am grateful to the hon. Gentleman, with whom I am pleased to have worked on this issue. We have only one sixth-form school in Harlow and the rest of the children go to a sixth-form college, where disadvantaged students are denied free school meals. That situation is untenable.

The Association of Colleges found that 79% of colleges thought that free school meals for 16 to 18-year-olds would encourage them to stay on in education. The principal of my local college says, “If I can get them through the door and we can give them a good meal, I know that I can turn their lives around.”

I would like to follow the lead of Essex council, which has an apprenticeship scheme that primarily helps disadvantaged young people, particularly single mothers. I was pleased that the Government replaced the education maintenance allowance with a bursary for 16 to 19-year-olds. That is good news, as it provides targeted support for those who need it most, but it is important that the Minister assesses what impact it is having and whether it is encouraging participation. The terms of the bursary must also be looked at. It should not operate in a similar way to the House of Lords, where you get paid just for turning up, but should reward students for their hard work, for example, if they meet or exceed their academic targets. It is right that we reward hard work, and doing so would proactively reward those who are in the most need and who are doing the right thing.

At the beginning of my speech, I said that improving apprenticeships is not just about economic efficiency, but is a necessary consideration. In 2012, youth unemployment cost the Treasury £4.8 billion. That is more than the total budget for 16 to 19-year-olds in England. According to a study by the Association of Chief Executives of Voluntary Organisations and the University of Bristol, the net present value of the cost to the Treasury, even looking only a decade ahead, is approximately £28 billion. So it is essential that in these tough economic times we take action quickly. But we must not forget that this is about social justice. Young people are our best defence against poverty. If we give them opportunities, skills and training, we get them off the street, give them stability and a real chance of a job in the future. The Government, in many ways, are taking the right decisions, but we must go further and faster. We need a conveyor belt of apprentices changing the culture, changing our schools, and changing how vocational education is perceived.

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[Stephen Lloyd]

I note that the hon. Gentleman made a similar intervention earlier, and he has a strong point: I do not see how that can help. However, that is not to say that careers services should not be in schools; the question cannot be beyond the wit of man within the DFE, because I think the Department for Business, Innovation and Skills would be keen for the careers service to be extended into FE. I do not think the solution is to stop careers guidance going into schools. I think that it is to do with the regulations and expanding the remit of careers services and the roles or opportunities that they need to talk to students about. The hon. Gentleman made a fair point.

There is a difficulty, because the issue is not one for BIS. I have spoken frequently with the Secretary of State, and several times with my hon. Friend the Minister; and it is clear to me that BIS is, considering the austerity programme, investing more, has greater commitment and is determined to continue the extension and improvement of apprenticeships and investment in FE. I think that we have now come to the tipping point with the vocational sector and FE, and the relationship with the Labour party and the Association of Colleges; there is now a profound understanding that because of the circumstances this may be a once-in-a-lifetime opportunity to move apprenticeships and vocational education up the scale, as in Germany. I am not sure that the opportunity will come again. I urge the Minister to do whatever it takes—working in partnership or working assertively with the DFE—to persuade the Secretary of State for Education to sit down with him and the Secretary of State for Business, Innovation and Skills and work on a productive, positive way forward, in which the DFE takes on board its crucial role in pushing vocational education and recognising and appreciating that there is an opportunity to transform its status, as in countries such as Germany.

[Nic Dakin]

The hon. Gentleman makes a clear point about the difficulty that schools and colleges face because of confused and contradictory messages. He was right to praise the messages that BIS is giving out, including those from the Skills Minister. Those are often contradicted in some of what is measured in schools, and in schools’ lack of capacity to take forward the careers education, information, advice and guidance that has been mentioned.

[Stephen Lloyd]

I agree with the direction of travel of those remarks. I emphasise that the problem is an old one. It has been around for 25 to 30 years, so I understand that it cannot be laid solely at the door of the current Secretary of State for Education. It has a history. However, I believe we have reached the point where there is enough collegiate agreement between all the political parties and across the whole economic spectrum to transform vocational education. Some good steps have been taken. Now is the time for us to make the leap. I urge the Minister to continue firmly in the direction of travel that he and his colleagues have taken. For BIS and the Department for Education, it is time to work together productively for a transformation that would be universally popular.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Skills (Matthew Hancock)]

It is a great pleasure to serve yet again under your chairmanship, Mr Gray. It is a partnership that I hope will continue for a long time to come. This debate is extremely important and timely. I pay tribute to the hon. Member for Scunthorpe (Nic Dakin) for securing it today, the day before vocational qualifications day, which was set up to celebrate vocational qualifications in a similar way to results days for GCSEs and A-levels. It is part of the twin track discussed by the hon. Member for Stoke-on-Trent Central (Tristram Hunt).

The debate has been wide-ranging—it is typical to say so at the start of a winding-up speech, but it is also true—and important. Some valuable points have been made on both the detail and the big picture. The hon. Member for Scunthorpe began by discussing four areas of concern: vocational education at key stages 4 and 5, careers advice, apprenticeships and traineeships and adult skills and unemployment. I will try to answer all his questions in the time available.

The hon. Gentleman also set out a rather Panglossian view of the world in 2010, not mentioning that youth unemployment was rising even before the crisis and had reached 1 million. Thankfully, it is now falling, although it is still far too high. There were skills shortages at the same time, which says to me that the education system has not been producing the skills that businesses need. I was rather more encouraged by the hon. Member for Stoke-on-Trent Central, who took that argument apart and made a passionate case for increased standards. He was willing to criticise the previous Labour Government, rightly, for not focusing enough on standards in vocational education.

To address a point made by my hon. Friend the Member for Eastbourne (Stephen Lloyd), I sit in two Departments. In the Department for Education, the action taken to increase standards in vocational education came first. Since the Wolf report, commissioned in 2011, we have taken action in the 14-to-16 age group, and we have now finalised a consultation on improving the quality of qualifications for 16 to 19-year olds. The area was radically in need of reform, and radical reform is coming through.

The devotion to increasing standards in vocational education—which has cross-party support, including clear agreement that there was a significant problem in 2010—has been led by my right hon. Friend the Secretary of State for Education, with the strong support of my right hon. Friend the Secretary of State for Business, Innovation and Skills. All three major parties agree on the matter. I think that we can now all accept that a serious weakness needed to be addressed and that we are taking steps to address it.

I say to all involved in this debate that, given that we will the ends, we must also will the means. That involves clearly, carefully and in a spirit of high consultation going through the qualifications offered, funded and recognised and ensuring that we support high-quality, stretching, rigorous qualifications that are responsive to the needs of employers.

On the point about the engineering diploma, we must encourage the creation of stretching, high quality new qualifications that fit the needs of modern employers. We encourage their creation in areas needed by business, and that has begun in the engineering industry and across different economic sectors.

This has been a helpful debate on both detail, to which I will come, and the big picture. As the hon. Member for Stoke-on-Trent Central said, of the 40% who do not get a level 2 qualification in English and maths, only 20% get one by the age of 19. That situation cannot be allowed to continue. I have read the Labour plan to increase English and maths requirements for FE teachers. That is already happening; I will send him the details of what we have done to address the issue. That is hopefully another outbreak of consensus.

In setting out what we are doing to achieve those goals, I will answer the questions put. Satisfyingly, the questions put were already answered in the draft of my speech, which is always good news. Professor Wolf found in her report, commissioned in 2011, that as many as 350,000 students were being funded to study for qualifications that they could pass but that were too small or low-level to get them a job. We are changing the requirements for qualifications to be funded and recognised, but we are doing so alongside changing how we fund all education between the ages of 16 and 19.

From September, funding will be on a per-student, not a per-qualification, basis, removing the unintended and perverse incentive to offer more qualifications, rather than focusing on what individuals need. Pupils will be offered a study programme including either a substantial vocational or academic qualification or an extended programme of work experience.

I return to the point about work experience, which is part of the study programme. This will give schools, colleges and training providers the flexibility to offer the most challenging qualifications to students who want to excel, whether in a technical field, in practical, employment-based training such as an apprenticeship or in an academic field. The need to ensure that people have a choice to pursue technical or vocational education, academic education or a combination of the two is important, and the Government’s job is to provide excellent options in all of those fields. I was delighted that Her Majesty said in the Queen’s Speech that it should become typical for young people to go either to university or into an apprenticeship. Our job is to ensure that excellent options are available on both sides, and not to have a target that falsely pushes people one way or the other.

My hon. Friend the Member for Harlow (Robert Halfon) argued that vocational education is social justice. The change in the funding system means that all students will be funded at the same base level, once the transitional protections are past. Instead of the average person who goes to an FE college being funded less than the average person who stays on at sixth form, because of the different amounts of funding awarded per qualification, everyone will be funded per pupil, on the same basis, with factors allowing for location, background and the higher cost of some qualifications.

[Nic Dakin]

The Minister is making a good point, but the plan is for 16 to 18-year-olds to be funded significantly less than students younger than that or than students who go on to higher education. There is an issue about the quantum, which I hope that the Government are examining.

[Matthew Hancock]

I do not quite take the point on higher education, because students in higher education fund themselves through loans. I am pleased that through our introduction of loans and the progressive rules on repayment—only if people have a good job and earn £21,000—a record number of people are applying to university, and that also provides the hon. Gentleman with a response to an intervention that he made. To make the right comparison on how much we fund someone in an age group, we need to ensure that in the first instance the funding is equal across the different sectors and options, which is what the change will achieve.

I pay tribute in the strongest possible terms to my hon. Friend the Member for Harlow on the parliamentary apprenticeship scheme, which he set up and champions. I support him for doing that, and now dozens of MPs and peers have apprentices. Knowing the impact that apprentices have on employers—they become much more passionate about apprentices when they have apprentices themselves—I am sure that the scheme will have an effect on MPs. Indeed, it was a great pleasure to take the parliamentary apprentices of all parties to No. 10 Downing street to meet the Prime Minister, and I enjoyed grinning with the apprentice of the hon. Member for Scunthorpe on the steps of No. 10.

An important point to make is about the participation age rising from 16 to 17—for those starting this year—and then to 18. The participation age will ensure and require that young people stay in education or training until, by 2015, they are 18, although not necessarily in school—it could be in college, in an apprenticeship, in employment with training or in voluntary work with part-time training. That is an important point because we do not want to close down the options available, but we want people to stay in education. An apprenticeship is a good way to deliver that.

Why are we making the reforms, which fall under the title of increasing rigour and responsiveness to the needs of individuals and of employers? What I call the motivating fact is the link between having youth unemployment that is far too high and skills shortages. To deal with that, it is important to ensure that the education system is more responsive and more rigorous and stretching.

How are we going to achieve that? I will go through some of the measures, four of which form the core goals that I think are necessary and the first of which is the introduction of traineeships. Many young people are highly motivated by the prospect of work, but are not yet ready or able to secure an apprenticeship or sustainable job. From this August, therefore, we are launching a high-quality traineeship programme within the study programme for 16 to 19-year-olds, to include work preparation, work experience, and English and maths, because English and maths are the No. 1 and No. 2 vocational skills. Other flexible training will be tailored to meet individual need.

[Nic Dakin]

The introduction of traineeships is positive, but my understanding is that they will be about six months in length. Will the Minister consider being flexible on how they are delivered, so that they could be delivered in a longitudinal way alongside other qualifications over a year, for example?

[Matthew Hancock]

The plan is to introduce the traineeships this year and to have a full analysis of how they work over their first year of operation. I am willing to look at all questions, because the preparation for the traineeships has been highly evidence-based and consultative. Over the years, we have had many different programmes to help people who are not yet ready to take on a job, and some have been successful and some not. My Twitter account is full of descriptions of experiences of YTS—the youth training scheme—or the flexible new deal, for example, and all sorts of different Government schemes that have been in this space. We want to ensure that we learn where they have worked and where they have not.

The second big change is in apprenticeships, and I am delighted with the cross-party support for the Richard review. The number of apprenticeships has almost doubled since 2010 and, we found out last week, apprenticeship applications are up a third on the previous year. The new higher apprenticeships allow people to get into the law through an apprenticeship and to become a fully qualified solicitor, or, likewise, into the upper reaches of the worlds of engineering and manufacturing and even to become an accountant. People will get the same qualifications as those who go through university.