Post-16 Education and Skills Strategy

Nusrat Ghani Excerpts

Monday 20th October 2025 Commons Chamber

[The Secretary of State for Education (Bridget Phillipson)]

With permission, Mr Speaker, I will make a statement to update the House on the Government’s work to transform further and higher education in this country.

The House should be in no doubt: transformation is what we need, because the world is changing, with artificial intelligence, machine learning, green energy and new and exciting technologies. Global forces are reshaping the world of work more and more quickly. They bring fresh and exciting chances for growth and opportunity. However, unless education and training in this country also change, we risk missing those chances and our young people risk being left behind.

We have seen that before. Under the previous Government, who thought that colleges and technical education were for other people’s children, apprenticeship starts for our young people plummeted. They talked down our universities and were more interested in headlines for culture wars than in head-starts for students. We will never take that path. I know that Members on both sides of the House will agree that we in this country have a duty—to our people, to our businesses and to our great history—not just to keep up but to lead the way.

Today we publish our post-16 education and skills White Paper to seize the opportunities of this changing world, to deliver growth for our economy and opportunity for our communities, and to lead the way. My vision for post-16 education in this country is a skills system that drives growth and is more balanced, more responsive and more reflective of the evolving world of work. It will add dynamism, invention and expertise to our economy, and it will go further by inviting working people to be part of that economic strength and to add to and share in that success.

The young person who has just left school and is not sure of what is next deserves a range of quality options to choose the route that is right for him—a great apprenticeship, a top course at his local further education college, or to go off to university. A working mother deserves the opportunity to upskill and make the most of her talents. For her, it means more than a job; it means a career, security and opportunity. I want to see that opportunity cascade into our communities, with local businesses becoming more productive, taking on more people and paying higher salaries; hustle and bustle returning to the high street; the skilled workforce that we need to build more local homes; and empowered NHS staff with the right skills to deliver a transformed service that is fit for the future—getting this country moving again.

That is why the skills system is fundamental to national renewal. The White Paper is the turning point in how we go from a quarter of a million skilled vacancies sitting unfilled to a pipeline of top-quality training to fill those jobs and create new ones, from a muddle of confusing pathways to a coherent system meeting the needs of the modern economy, and from further education treated as the poor relation to our colleges standing side by side with our world-class universities.

The public will have heard such warm words about skills before, and they will know that warm words often fizzle out into nothing—no action and no change. But that is no longer the case, because our reform of the skills system has already begun. We have established Skills England, reformed the growth and skills levy, slashed red tape on apprenticeships, introduced technical excellence colleges and stabilised university finances, and we are rolling out the youth guarantee.

Today, we are going further, guided by our industrial strategy. We will fill gaps and meet needs, through our new foundation apprenticeships or through shorter courses in priority sectors, which from April will be funded by the growth and skills levy. To deliver growth, we are investing £187 million for our “Techfirst” digital skills and AI learning, £182 million for engineering, £182 million for the defence talent pipeline and £625 million to train 60,000 more construction workers. That is all backed up by 29 new technical excellence colleges.

Clean energy, defence, digital, advanced manufacturing, construction—what we need is technical excellence, and that is what our colleges can provide. Through this White Paper we will work with our fantastic FE staff. We will draw on their passion and expertise. We are strengthening professional development in our colleges, partnering with industry, and building on the evidence of what works. We will pair that support with improved performance measures, to bring our colleges out of the shadow of the university route, and to make it a pathway of equal importance, equal value, and equal pride in the eyes of the nation. As the Prime Minister has said, that will be a defining cause for this Labour Government: no longer a Cinderella service, but rather a system of high esteem, matching high support with high challenge, and spreading best practice from across the country to deliver high standards in every college. To seize the opportunities of the tech revolution, this country needs not just lawyers, economists, and scientists; we need wind turbine technicians, video editors, and builders—careers that we on this side of the House respect, and work that pays and lifts up communities.

We are introducing rigorous study pathways, giving young people a clear line of sight into great careers. That includes V-levels, the brand new vocational pathway unveiled in our White Paper today, sitting proudly alongside A-levels and T-levels, and building the skills and knowledge that employers value. We are backing those changes with £800 million of extra investment for young people in our colleges and sixth forms next year, above and beyond what was planned for this year and supporting 20,000 more students. That is why the target for 50% of our young people to go to university is evolving, because to compete in this changing world, we need to nurture a much broader range of talent.

As the Prime Minister has announced, we have a new ambition. No longer just half; we want two-thirds of our young people to get into high-level learning, be it academic, technical, or an apprenticeship. But pro-technical and pro-vocational does not mean being anti-academic. Our universities are a stamp of quality recognised across the world, a source of immense national pride, and a driver of economic strength in our regions. To any young person growing up in England today, I say this: if you want to go to university, if it is right for you, and if you meet the requirements, this Government will back you. That is why we are introducing new targeted maintenance grants for those students most in need, funded by a levy on international students’ fees, because in this country, opening up access for domestic students from disadvantaged communities is my priority.

We also need a system that delivers for working people living busy lives. That is why we are making higher-level learning more flexible and available in bitesize chunks, with break points in degrees, and supported by the lifelong learning entitlement. But it is not only degrees that matter. I want to see our universities working with colleges to deliver more level 4 and 5 qualifications, and to spread that excellence far and wide, making it easier for people to take those vital courses in their local further education college, and delivering the “missing middle” of skills that is so important for our economy and for our people seeking their next promotion.

To safeguard the excellence in our universities for future generations, last November I announced that tuition fees would increase by £285 this academic year. Today I confirm that we will increase undergraduate tuition fee caps for all higher education providers in line with forecast inflation for the next two academic years. We will future-proof our maintenance loan offer by increasing maintenance loans in line with forecast inflation every academic year. To provide long-term certainty over future funding, we will legislate, when parliamentary time allows, to increase tuition fee caps automatically in the future, linked to quality. We will not allow institutions that do not take quality seriously make their students pay more. Charging full fees will be conditional on high-quality teaching, balancing stability for universities with fairness for students and taxpayers.

Within this White Paper is a challenge to our universities to build on what makes them great, drive up access, drive out low-quality provision, improve collaboration and push forward innovation, deliver the research breakthroughs that will revitalise our economy, and feed that energy back into our local communities.

We will support every young person to take the pathway that is right for them—technical, academic or vocational—but I will not accept their having no pathway at all. Far too many of our young people find themselves not in employment, education or training. From there, they become isolated from society, disconnected from success and their hope fading, and that must change. We will strengthen the part played by schools in the transition to post-16 education, we will improve accountability, with a bigger role for strategic authorities, and we will introduce a new guarantee. Any 16 or 17-year-old not in education or training will automatically get a place at a local provider. I will not let opportunity slip away, just as those young people are getting going in life.

The White Paper delivers on that promise to our young people to give them the skills that they need, but the task of revitalising our skills system is not the isolated work of one Department or another. It is the collective undertaking of local and national leaders, together with our workforces, businesses and trade unions. It is mission-led Government in action and the prize is huge: opportunity for our young people, growth for our economy and renewal for our nation. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

--- Later in debate ---

[Bridget Phillipson]

It is a real shame that the right hon. Lady cannot bring herself to welcome anything that we have announced today. It is par for the course; that is how she likes to do things. In government, the Conservatives talked about how they valued post-16 education. Their record was very different, of course. The difference between record and rhetoric is the difference between our parties, and it is clear for all to see.

We are investing £800 million more in further education, while colleges were cut to the bone under the Tories. We are putting a real focus on vocational education and FE, restoring their esteem, giving them proper respect and simplifying the qualification landscape that the Tories made even more muddled, and we are securing the future of our world-renowned universities. I did not hear whether the right hon. Lady accepted, disagreed, welcomed or did not support what I have set out today about university funding. If she does not support it, I would like to know how she intends to safeguard our world-leading universities into the future.

As usual, we heard plenty from the right hon. Lady about debt-trap degrees. We often hear a lot of talk about low-value courses or Mickey Mouse degrees, with an answer never given as to which young people should not be going to university, which courses that applies to or which institutions she has in mind when she makes sweeping generalisations of that kind. It is always working-class kids and other people’s children who will lose out from the snobbery that comes from saying that education is not for people like them.

This Labour Government will deliver a world-leading university system alongside brilliant technical and vocational routes so that all our young people have access to brilliant careers and training opportunities, including throughout their lives. This is about choice for young people and finding the route and the path that is best for them. This Labour Government say to young people, “Further study is important; it is for you. It matters to us, and it should matter to you as well.” That is why we are bringing changes to the qualifications landscape.

In answer to the right hon. Lady’s question, we believe that T-levels were a welcome and important addition to the qualifications landscape. They provide high-quality technical qualifications, with strong work placements alongside them, and sit alongside well-established A-levels, but the rest of the system alongside that is missing. We are making sure that we have good, strong routes through V-levels that young people will be able to combine with A-level study. That is for those young people who are not quite so clear at the age of 16 whether they want to specialise in one particular area. As the right hon. Lady will know, a T-level is the equivalent of three A-levels, and it requires young people at the age of 16 to make a definitive choice about the future of their career. We want to ensure that there is a range of high-quality options so that those 900 qualifications will move towards becoming part of the new V-level system. We will launch a consultation on how we deliver that, and we are keen to hear from businesses as a part of that.

The right hon. Lady asked about GCSEs and English and maths resits, and she criticised our plans to get more young people through their English and maths GCSEs. In order to do that, there has to be a stepping stone to making it happen. An endless cycle of unnecessary resits is not the way to support more young people, including those from disadvantaged backgrounds, to get English or maths GCSEs. She and her party were happy to consign a generation of young people to failure, endless resits and a sense of desperation. We want to ensure that they make progress and master the basics then move on to getting that good, strong GCSE pass.

This Government will ensure that all our young people have the opportunities and chances that they need to get on. The Conservatives might be determined to ensure that fewer young people have the chance to go on to university and that our businesses do not have the skills they need, but this Labour Government will ensure that apprenticeship starts are there, with good, strong FE options alongside our world-leading universities. That is what this White Paper is all about.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Education Committee.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I thank the Secretary of State for her statement. I welcome the Government’s focus on further education and skills, which have been overlooked for far too long and are critical to the delivery of the Government’s missions. My Committee has recently undertaken an inquiry into FE and skills, and I am pleased to see a number of our recommendations reflected in the statement, particularly in the commitment to address the vortex of failure in which the current system of English and maths resits traps far too many young people.

I welcome the priority of increasing the quality of further education, but there are two key contributors to quality that the Secretary of State did not mention in her statement. The first is the 15% pay gap between teachers in schools and teachers in FE colleges, which is a barrier to recruitment and retention for colleges. The second is the inability of FE colleges to reclaim VAT, a situation for which my Committee found no justification and which City College Norwich told us made the difference of a whole floor to a new building that it had recently completed. How does the Secretary of State plan to ensure that the further education sector has not only the policy framework to improve quality but the necessary resources?

[Bridget Phillipson]

I am grateful to the Chair of the Education Committee. We continue to keep all such matters under review, and I can be clear with her that we believe that further education colleges are engines of growth and opportunity in our communities. This White Paper is about ensuring a prestigious, world-class system in which we will reform initial training in further education, continue to invest in whole-career professional development for FE teachers and build ties with industry to ensure that FE teachers have the greatest opportunity to develop their teaching skills and subject expertise to help young people to achieve and thrive. Alongside that, we will match that support with appropriate challenge, so that we continue to raise the bar on standards through the new Ofsted system with the backstop of the FE Commissioner.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Ian Sollom (St Neots and Mid Cambridgeshire) (LD)]

I too thank the Secretary of State for advance sight of her statement. There is far too much in this White Paper to respond to comprehensively in two minutes, so let me focus on three critical issues.

The first issue is V-levels. The Secretary of State talks about ending confusion, yet she is introducing a new qualification that sounds remarkably like BTECs—they are flexible, sector-based and can mix with A-levels. BTECs already work: 200,000 students took them last year, 99% of universities accept them and one in five UK workers have one. If we are recreating BTECs, why scrap them first? We should keep both until 2030, so that we can compare outcomes. T-levels reached 1% uptake after five years, so let us not repeat that mistake.

The second issue is lifelong learning. The Secretary of State rightly speaks about the working mother needing to upskill, but will the support be sufficient to make that real? The lifelong learning entitlement is welcome, but the Government have cut over-21 apprenticeships, including those in shortage professions such as nursing and social work. What confidence do the Government have that their LLE can cover the costs of providing that vocational education, particularly in subjects with high operating costs?

The third issue is the international student levy. We support maintenance grants—another manifesto commitment we made that the Government have adopted—but funding them by taxing international students is self-defeating. This is incredibly tricky to model, but analysis shows that the levy could cut up to 135,000 domestic student places over five years and reduce our economy by £2.2 billion. That is not helping disadvantaged students. Will the Secretary of State make the modelling transparent and promise that opportunity will not be narrowed by the levy? There are many more questions, but I appreciate that I do not have time to ask them all.

There is much to welcome in this White Paper’s ambition, but we must guard against unintended consequences and missed opportunities. The Lib Dems stand ready to work with the Government to get this right.

[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. We will have just another 30 minutes or so of questions, because we have a big debate later, so colleagues must keep their questions short.

[Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)]

The previous Government tried hard to take a hatchet to many vocational courses, reflecting how little they valued those hugely important subjects and skills. Can the Minister confirm that the new V-level qualifications show that this Government have listened to the education sector, employers and students, and will allow more young people greater choice in achieving their pathway to a successful future?