Vocational Qualifications Day

Nicholas Dakin Excerpts

Tuesday 9th June 2015 Westminster Hall

[Neil Carmichael]

I thank the hon. Lady for that intervention. My hon. Friend the Minister will have heard it—indeed, he is writing a note about it. Obviously, all areas of education have an interest in fair funding and more funding, but there is a cake and we have to slice it up in a sensible way. We will be having that debate throughout this Parliament.

[Nic Dakin (Scunthorpe) (Lab)]

I congratulate the hon. Gentleman on initiating this very important debate, but let me press him further on funding. Although further education colleges are in the vanguard of providing vocational qualifications, they have had to suffer, in addition to the cut in February that my hon. Friend the Member for Stretford and Urmston (Kate Green) mentioned, an in-year cut of £450 million in post-16 funding and another £450 million cut in FE and higher education funding—in-year and retrospective—for which they have not planned, so however brilliant they are, these are challenging times for vocational education.

[Neil Carmichael]

I thank the hon. Gentleman for that intervention and for appreciating my success in securing the debate. The key point is really the one that I made to the hon. Member for Huddersfield (Mr Sheerman). There are opportunities for FE colleges, working with business and working in their communities, to develop novel and interesting ideas about getting funding from sources other than the ones that hon. Members are talking about. That is what we should be thinking about, and I will articulate more thoughts about it as I progress through my speech.

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[Neil Carmichael]

I thank the hon. Gentleman for that intervention. I am a firm proponent and supporter of the FE sector. I have been a governor of two or three colleges and have worked hard for the success of them all, so hon. Members can be sure that for anything that happens about the FE sector, I will be there, fighting its corner.

In short, what we are hoping to do and should be doing is celebrate achievement and promote aspiration through vocational qualifications. That is a good strapline for this debate. Our purpose is essentially to enable people to fulfil their lives. That is a very important thing in the structure of my political beliefs. I want people from all walks of life and all places to be able to fulfil their lives, and they will do that through satisfying and rewarding work, which in many ways comes from good vocational training and qualifications.

Our purpose is also to ensure that we can create an economy that is full of opportunity, responsive and modern, and I think that that is completely in line with vocational qualifications and the whole framework around them.

Thirdly, we must ensure that our economy has the skills that it needs—the appropriate pools of skills in all the big sectors. For instance, in engineering, we will still need 83,000 new engineers each year to keep the show on the road, and many of them will be individuals with vocational qualifications. However, this is not just about engineering; the world of construction is just as thirsty for these kinds of qualification. That is an essential part of this debate.

We need an education system that is adaptive, responsive and aware of the changing framework in the world of work and in society. Our working patterns have changed, our aspirations are greater and our attitude to work is different, because we expect to find more opportunities, to advance in our careers and to change careers from time to time. That difference is reflected in our society as well, because we want our families to be able to develop their careers.

[Nic Dakin]

Does the hon. Gentleman agree that careers advice is crucial, and that it is unfortunate that even today, 63% of young people, when asked, can name A-levels but cannot name any vocational qualifications? That shows the distance that we need to travel to achieve the parity of esteem that we need if vocational qualifications are to deliver in the way in which he indicates, quite rightly, that we need them to.

[Neil Carmichael]

I will go on to address that issue, but I am glad that the hon. Gentleman has touched on it. As I will say in a few moments, we need to make it clear that it is not just A-levels that people need for future employment; there are a whole range of other possibilities.

We need to reinvigorate practical learning. We all know that that happened in the past and still happens now, but it must happen more. We need more specialist schools in the 14 to 18 sector to address the skills shortages—I have already alluded to some—that various sectors have identified. University technical colleges are part of that, but there are other ways of providing such schools, which have a relationship with the business world and the community, and which can run appropriate activities. We should be encouraging that.

I support a baccalaureate to recognise young people’s achievements up to the age of 18. That is in line with what the hon. Member for Scunthorpe (Nic Dakin) has said. A baccalaureate is the right way to demonstrate that huge achievement has been notched up through vocational qualifications, and I want to put that firmly on the agenda.

We have to work hard at bringing together the world of education and the world of business, the professions and employment in general. That is important not only for education, but for employers and organisations that might extend some form of training. Unless the interface between those sectors and organisations is improved, opportunities will constantly be missed because schools produce one kind of output and businesses require another.

I have come across that problem in my constituency, and I tackled it by setting up the Festival of Manufacturing and Engineering. One in every four jobs in my constituency is connected to manufacturing and engineering, but when I first went around the schools, I did not get the sense that they understood that at all. I felt that they were quite unaware of the appetite for skills in electronics, in certain aspects of the automotive sector and in aviation, so I got schools and businesses to work together and we came up with the Festival of Manufacturing and Engineering. It is held every year, and it really brings young people into the world of work. It ensures that schools understand what kind of job opportunities are coming along, and it underlines the need for vocational qualifications. We should recognise the importance of bringing those sectors together.

We have talked a bit about further education, and I want to underline its importance. Right now, 3 million students are being equipped with valuable employment skills. That is a huge chunk of our young people, and it demonstrates the large footprint that the further education sector has in the matter. We need to recognise that the FE sector has a role to play. In my patch, as I have mentioned, a really good college has seen the strategic advantage of merging with another, and it is now able to produce a whole range of useful courses and training opportunities for young people and for adults who seek to change their direction of travel.

In fact, the arrangement is now so successful that we are going to have a new training centre at a disused—but properly maintained—nuclear power station. It will be known as Berkeley Green, and it will provide training opportunities for people who are interested in renewable energy, nuclear energy, manufacturing and other activities. That huge investment has been made because the college understands that there is a huge requirement for such skills in my constituency. That has led to another investment in a university technical college to ensure that advanced manufacturing opportunities are being offered and places are being filled by people who are properly trained, as we would expect them to be, at a UTC.

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[Nic Dakin (Scunthorpe) (Lab)]

It is a pleasure to speak briefly in support of this debate. We should all seize the opportunity to celebrate vocational qualifications, and it is good that we are doing so today. Vocational qualifications play a huge part in the mix of qualifications that young people and older people gain throughout their lifelong learning and development. I was a co-ordinator for the Technical and Vocational Education Initiative back in the 1980s, and I know well that vocational education is a holy grail that politicians, academics, practitioners, the general public, parents, businesses and industry have been working towards for many years.

This is not a quick fix, but we must ensure that we take full advantage of this day that celebrates vocational qualifications. Further education colleges, along with other institutions, are the fulcrum of ensuring that things happen in that space. My local FE college, North Lindsey College, does an excellent job of bringing together the worlds of work and study, because it has a pivotal role in the local community. The college has lots of links with local companies and businesses, and students of all ages come to work and study at its various premises. Further education is a key partner, and it needs to be backed and supported. I illustrate that with a local example: the work that North Lindsey College is doing with Bradbury Security on Youth Engineering Scunthorpe, a scheme that gives people who have been out of work for some time an opportunity to come back into it, doing work that would otherwise not exist. That work is not displacing jobs that would otherwise be taken by other people; these are new jobs. The scheme is onshoring jobs that Bradbury Security previously delivered from China. We need such work in order to reskill, develop capacity and secure and grow new business.

[Mr Sheerman]

My hon. Friend knows more about this sector than almost anyone else in the House of Commons, and I defer to his great knowledge and professional experience. This is not party political, but does he agree that, across successive Governments, further education has been the neglected area of UK education? Does he agree that FE has been neglected in terms of budget, focus and interest for many years?

[Nic Dakin]

My hon. Friend is right that further education has been a Cinderella area of education and training. One reason why I applaud Vocational Qualifications Day is that it represents a real effort to rebalance what we are saying out there, and what is being said back to us. It is important that we seize that with both hands.

Careers advice is an area in which the Government need to up their game. We have a new careers and enterprise company in place, but it is not clear—the Minister might tell us that it is crystal clear—exactly what that company is doing, or how it will address the current deficit that means that whereas 63% of young people can name A-levels as a post-GCSE qualification, only 7% can name apprenticeships and only 26% are able to name national vocational qualifications as post-GCSE qualifications. Despite the plug that the hon. Member for Stroud (Neil Carmichael) gave for BTECs, only 19% of pupils were able to name them. When I was a college principal, I expanded the BTEC curriculum within my college because it acts as a very good bridge between the academic and the vocational. That applied learning is the sort of bridge we need in order for people to develop and move on to both vocational and academic pathways, as he described.

[Kate Green]

My hon. Friend is right to highlight the importance of careers advice in raising young people’s awareness of alternative education and qualification routes, but will he say something about what can be done better to inform parents? Parents influence their children’s choices, and many parents assume that a university education is the best and only suitable option for their children.

[Nic Dakin]

Absolutely. That is where there is a real danger in the fragmentation of schools, academies, UTCs and other provision. Sadly, the evidence is that in schools with their own sixth form, the quality of careers education, as regards raising awareness of the various pathways available, is lower than in schools that do not have their own sixth form. We must ensure that impartial advice is available to all young people, wherever they undertake their secondary education. That includes connecting better with parents and ensuring that they get information about the range of available pathways from the secondary school, which is the main vehicle through which they receive such information. Research commissioned by the Association of Colleges shows that only 14% of 11 to 16-year-olds have heard of apprenticeships, which is just not good enough. That is evidence that, collectively, we all need to up our game.

The hon. Member for Stroud mentioned LEPs, which are well placed to maximise the value of careers education locally. They seem to be the other player in the mix, with a good connection with the worlds of work and education. LEPs are in an opportune place to bring those things together. Given that LEPs are becoming more mature as organisations, any opportunity to allow them to show more leadership with regards to careers information, advice and guidance would probably benefit young people in their area. I commend Humber local enterprise partnership for its work in promoting gold standard awards for quality in careers information, advice and guidance in the Humber area. It is an example of good practice.

The adult skills budget is disappointing. Vocational qualifications are not just for younger people; they are for older people, particularly because many people will lose one job and have to retrain for another. Given that people are living longer, that is likely to be a challenge for older as well as younger people. It is disappointing that the adult skills budget was cut by 24% in February 2015, as my hon. Friend the Member for Stretford and Urmston (Kate Green) said earlier. It is equally disappointing that just last week, further cuts were announced of £450 million to the non-schools budget and £450 million to the further and higher education part of the Department for Business, Innovation and Skills budget.

Those cuts will cause challenges and pressures, particularly if there are retrospective funding cuts. As a former principal of a college, I know what it is like to set out my stall and put my plans in place. If schools are told halfway through the year that they need to save more money, it is difficult to do so, even for the best-run organisations. I have concerns about the impact on providing the better vocational education and better pathways that we all want for young people, as well as better understanding and support for older people retraining. We might accidentally achieve the opposite. I know that the Minister is passionately committed to ensuring that this works, and I am sure that he did not decide to decrease funding in certain areas to benefit the bit of the world that he champions. I am sure that he will take away from this debate the desire to bat even harder in private for the people whom we want to deliver well for us in public: that is, young people coming into the workplace, as well as older people needing retraining. For both those groups, vocational qualifications are a key underpinning of bridges and platforms into the future.

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[Caroline Nokes (Romsey and Southampton North) (Con)]

It is a pleasure to see you in the Chair, Sir Roger, for a Westminster Hall debate early in the new Session. Like other hon. Members, I congratulate my hon. Friend the Member for Stroud (Neil Carmichael) on securing this interesting and important debate to celebrate national Vocational Qualifications Day.

Romsey and Southampton North is quite unusual in that within the constituency there is no 16-to-18 state sector provision, which means that those in that age range are effectively exported out. That is sometimes seen as a negative, but I regard it as something of a benefit, because it gives me the opportunity to work with a range of college principals, albeit at the edge of my constituency.

For example, I am an advisory governor at the further education college in the constituency of my hon. Friend the Member for Eastleigh (Mims Davies). For many years I have been invited annually to Eastleigh College to present the awards at its apprenticeship celebration event. That is exactly the sort of initiative that we want to happen everywhere, to celebrate the apprentices and their achievements, as well as the achievements of the employers who have taken the plunge and taken apprentices on. Many employers arrive annually having been nominated by their apprentices for the brilliant experience that they give young people in the Hampshire area.

We want more vocational qualifications and more high- quality apprenticeships. It is crucial that apprenticeships should provide the quality training that young people deserve. I have been pleased over the past nearly 12 months to have a business administration apprentice in my office. That has been a learning curve for us and for her. I hope that she has benefited from the experience. I guess we will know about that at the end of it, and I hope that she will get a good certificate, which she will be able to take to future employers, or potentially to university. We have a responsibility to practise what we preach, and that was one reason for my taking on an apprentice. I was struck by Eastleigh College’s determination to promote its provision and to make things as easy as possible for the employer. That is crucial. Sometimes there are far too many barriers, although many are perceived rather than real.

[Nic Dakin]

The hon. Lady is right that taking on an apprentice—and I have taken on two so far in my current role—helps to educate us as employers about the challenges in taking on such a responsibility. It is hugely rewarding, and we should celebrate the employers’ role.

[Caroline Nokes]

The hon. Gentleman is right. Taking on apprentices is great for us, for the employers, and for the economy and everyone else. I have long held that the first rung on the employment ladder is the hardest, and that is why vocational qualifications are so important. They provide a fantastic bridge from school to work. Whether they be tech-levels or technical awards, and at whatever age they are achieved, we need the suite of qualifications of which they are part to be attractive and available to students, and we need it to have parity of esteem, as various hon. Members have said.

Life is about more than a clutch of good GCSEs. It is about acquiring the life skills necessary to make the transition to the world of work. My hon. Friend the Member for Stroud mentioned the soft skills that can be obtained from work experience and vocational qualifications—whether in retail, catering or the example that he used of sport. Such opportunities can also build confidence, which is important for young people who too often have just experienced the classroom, and who lack the interaction that they will need in later life to play a constructive role in the world of work.

Southampton has some great vocational qualification providers, such as City College in the constituency of my hon. Friend the Member for Southampton, Itchen (Royston Smith) and the Southampton Engineering Training Association, which I enjoyed visiting last summer for its annual presentation and celebration evening. There are hundreds of courses for thousands of students, which all provide obvious and successful routes into work. City College makes much of the fact that its young people who undertake vocational qualifications often go on to be self-employed. They will be small business owners, employing other people. We need to encourage that, because if every small business employed one more person we would have zero unemployment.

At the SETA evening, 70 young men and one girl received engineering qualifications. We still have an enormous amount of work to do to encourage young women to take up engineering qualifications and follow that vocational route. We must make sure that, just as GCSE and A-level results are celebrated annually in local papers, when we see young people with brilliant achievements and fantastic certificates, there is also an opportunity to celebrate just as vehemently and vigorously those who get vocational qualifications. It is great to see exactly that happening on the website of the Edge Foundation, but I would love to see more of it in my local paper.

The hon. Member for Scunthorpe (Nic Dakin) made a point about careers advice, which is crucial. In my constituency there are some great examples of best practice, with opportunities to expand on career options and choices. The Romsey School has done brilliant work, particularly with young girls, on vocational qualifications. They set up their own beauty studio in the school, to try to get across the message that science qualifications are needed to go on vocational courses in beauty and hairdressing. That was a practical way of conveying to girls the importance of continuing with science studies, when perhaps they were not finding them that interesting.

Just up the road is The Mountbatten School, which has done brilliant work linking up with local businesses. That is crucial; we must have such opportunities to bring companies into schools, so that young people can see the opportunities and the range of jobs out there. I take part annually in what The Mountbatten School refers to as its enrichment day. The poor year 10 children have to do a mock interview with me. They appeared slightly horrified the first year I did it, because they were used to doing it with their teachers, but the event has expanded every year, and the school now brings in the Rotary Club and eminent members of the local chamber of commerce. The children are confronted with real live employers and they go through a real interview, so they understand how tough it can be to make that important first impression. We must make sure that 14-year-olds make the right decisions about their future, based on what they want, enjoy and are interested in, and that they avoid the age-old problem of choosing to do exactly what their friends are doing.

I congratulate the Edge Foundation, which has done great work on establishing, celebrating and promoting VQ Day. It plays a crucial part in reinforcing parity of esteem between academic and vocational qualifications. In the words of Lord Baker,

“By 2022, 90% of the most in-demand job areas will be accessible through technical, practical and vocational learning.”

That gives a very clear steer about the scale of the opportunity, and we must make sure that we grab it with both hands.

Today I have given some local examples of best practice throughout Hampshire, and there are others throughout the country. We need to celebrate and promote them, and make sure that they are rolled out across the country.

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[The Minister for Skills (Nick Boles)]

Sir Roger, it is a pleasure to serve under your chairmanship during my first outing in Westminster Hall since the election and my reappointment as Skills Minister.

I congratulate my hon. Friend the Member for Stroud (Neil Carmichael) on securing this important debate. He congratulated the Edge Foundation on setting up this day of celebration of all that is good in technical and professional education, and all those people, young and not so young, who take advantage of those opportunities to secure qualifications that enrich their lives and promote their careers. This is an excellent debate with which to kick off the deliberations in this five-year Parliament. Technical and professional education has an important role to play in making our economy more productive and providing opportunities for all people in all parts of the country.

Before getting into the meat of my argument, I want to deal with a few issues raised by hon. Members. First, it is important to say that the 24% cut in the adult skills budget—in the allocations offered to colleges and providers —is obviously an average figure and, more importantly, relates to the non-apprenticeship portion of the adult skills budget. It does not take a genius to work out that if the overall scale of a budget is reduced and the size of an important element in it is doubled, there will be larger reductions in what is left. Even I could work it out. That is what has happened to the non-apprenticeship portion of the adult skills budget. We have reduced the overall budget and doubled the spending on adult apprenticeships funded out of that budget. That has necessitated rather larger cuts in that particular area.

[Nic Dakin]

Does not the Minister agree that by doing that certain activities currently very much valued by employers will disappear from the offer that is available locally?

[Nick Boles]

I fear that cuts often require difficult choices to be made. Colleges are all trying to ensure that they make economies chiefly through efficiencies and in areas of lower value. Following on from that, I should like to correct something said by the hon. Member for Huddersfield (Mr Sheerman), who is no longer in the Chamber, about the relative value of full-time FE courses and apprenticeships. I am not for a minute suggesting that full-time FE courses do not have a positive impact—they do—but their positive impact on people’s earnings between five and seven years later is not nearly as high as the positive impact of apprenticeships. We have just done one of the biggest data studies undertaken by Government, matching people’s education performance and their earnings as recorded by Her Majesty’s Revenue and Customs. Almost 500,000 individuals were covered by this study, which found that a level 2 apprenticeship leads to approximately a 16% improvement in the individual’s earnings five to seven years later, whereas the impact for a full-time level 2 is roughly 6%. At level 3 it is 16% for those on an apprenticeship, against 4% on a full-time course. There are positive impacts from full-time courses and some of those courses—not least the BTEC mentioned by my hon. Friend—may well have a higher value, but the averages suggest that it is sensible to do what the Government have been doing and shift resources out of full-time FE courses into apprenticeships, while continuing to invest in full-time FE.

My neighbour, the hon. Member for Scunthorpe (Nic Dakin), mentioned the in-year cuts to both the DFE and BIS budgets. Although I cannot go into detail, because it would be way above my pay grade to do so, he should not assume that the only way of cutting the unprotected part of the DFE budget is by cutting funding for 16 to 19 education, including funding for FE colleges. He should also not assume that the only way of cutting the part of the BIS budget that has been subject to in-year cuts is by cutting funding for FE colleges. No doubt everybody will have to make a contribution, but he should not assume that those cuts involving large figures will fall entirely on the sectors that he so admirably represents in the House and in this debate.

We are at the start of a five-year Parliament, so we have a bit of time to think and plan and be strategic, and to try to build something that addresses some of the problems that have afflicted us as a country for decades. There has been a huge amount of agreement across the House about the nature of the productivity challenge that we face as a country. We have lower productivity—all that means is how much value people are producing for every hour that they work—in part, I am glad to say, because we manage to find jobs for people with very low skills who are less productive. Of course, a large number of the least productive workers in countries not too far from here are not employed, and by necessity that means that their average productivity per hour of employment is higher. I prefer to live on this side of the channel rather than on the other side, where that is so, but that does not in any sense diminish the challenge to us of ensuring that the productivity of everybody, whether relatively low-skilled or high-skilled, is improving so that they can command higher wages, pay higher taxes and have better lives for themselves and their families. That is, of course, a fundamental challenge for this Parliament.

The Opposition spokesman was right to say that Members of all parties have long bemoaned our inability to create a system of technical and professional education that commands the same level of understanding in the country, and in families and schools, and in this House—not to mention the level of respect—as the academic education system, which is admired around the world. He is absolutely right to challenge the Government in these early weeks to grapple with the problem systematically, rather than in a piecemeal way, and I hope and intend to rise to the challenge.

I will resist the temptation, long though my legs are, to show too much of them in my response to the debate. That is not because I am coy, because I am not naturally that coy, as you may have noticed, Sir Roger, but because it is a little premature for me as a Minister, although I was in this post for 10 months before the election, to start rushing to judgment. I would like to hear from others, and it has been tremendously useful to hear the contributions of my hon. and right hon. Friends and Opposition Members on the elements of the system that they see as needing to be reformed, changed or improved.

I also want to learn from other countries. The Opposition spokesman referred to the example that we always beat ourselves over the head about: the German system of technical education. He is right to say that we honourably and admirably had some part to play in creating that system, but it is also right to observe that it is the product of a deep economic, educational and social culture that is somewhat different from ours. We need to ensure that we are looking to learn from relevant examples that are, in a sense, transferable and applicable to our system. I am keen to look at—I encourage Members to come forward if they have better example—the Dutch example. The Dutch economy is more similar to our own in culture and approach than the German one. It is smaller, but it has what we would see as—I am not sure that the Dutch would accept this—Anglo-Saxon features. As the Opposition spokesman said, they seem to have a better system of clear routes through education to high, degree-level qualifications.