Further Education Funding

Rachael Maskell Excerpts

Wednesday 4th November 2020 Westminster Hall

[Rachael Maskell (York Central) (Lab/Co-op)]

It is pleasure to serve under you, Mr Hosie, and to follow the hon. Member for Bath (Wera Hobhouse). I wish to start on the point with which she ended. I have seen the power of the union learning fund and how it can transform people’s lives and prospects. At a time such as this, when we know that so many people will lose their jobs, we see the importance of the fund. It is not just about the fund; it is about the union learning reps who accompany people into training and support them through it in the workplace. That is the transformative element that the trade unions have worked on, offered and developed, It is not just a beacon in the workplace, but a springboard to take people forward in their career.

[Meg Hillier]

I thank my hon. Friend and the hon. Member for Bath (Wera Hobhouse). The fund is so much better value for money because through it people can be properly supported into training and that does not involve throwing good money after bad. Someone is properly trained and qualified when they have completed their course.

[Rachael Maskell]

I thank my hon. Friend for that point. She is absolutely right. When a course is completed, we see the impact on productivity. We know that the Government have had a real problem improving productivity, so I would have thought that would have seen the value of something that helps them with that. If the ULF is ending, I trust that a Rolls-Royce version of a new fund will come forward that embraces the value of trade unions on the ground. They are there to work alongside workers.

I want to touch on my local colleges in York. We are fortunate to have two: York College under its principal, Lee Probert, and Askham Bryan College, our agriculture college under its principal, Tim Whitaker. They face specific challenges in this covid period and I thank them both for their leadership and all the staff for what they have done over the past few months. It has been a really challenging time in ensuring that their environments are covid secure and that they are gearing up to support our economy. They certainly need help.

The two colleges have come together with York’s two universities to form Higher York, which does not look inwards in education, but looks out to localities, society and the economy to see how we can rebuild our city’s economic base, which is so important at this time, and so release the potential opportunities for our community. That will be particularly important at a time when unemployment in York will be absolutely devastating—among the worst in the country. We are staring down that barrel at the moment, and it is deeply disturbing. Higher York needs more support to deliver that transformative agenda, which we desperately need.

Higher York can drive the economic recovery in our city, and I believe that further education, blended with higher education, is the key that is needed to unlock our economic recovery at this time. As Higher York is proving, we need colleges to be at the heart of shaping the local economy and the skills base that will be required in the future. Taking a local economy place-based approach to skills planning is so important. I recognise the matrix of needing to look at sector skills, which has very much driven skills strategy for a long time, but we also need to look at local place. With devolution and many other measures being put in place, the local economy is very much coming to the fore.

Given how our economic base is developing, with specialism in particular segments of the economy, skills provision can really boost the local economy and blend with employers’ opportunities and needs now and in the future. A lot of work has been done in York on the green economy and how we can sustain the bioeconomy, which I spoke about in this Chamber only a few weeks ago. That could see a growth of 25,000 people through a skills process to enhance skills. That is at the root of how we build a recovery into the future.

I want to address a number of things with regards to covid. The first is what I shall call the basic need of having a covid-secure environment. The Government have come forward with the obligation to provide that, and rightly so, but there are costs, none of which are recoverable at the moment. York College, for example, has spent £400,000 on becoming a covid-secure environment. That is money that the college wants to put into education, and therefore it is important to see some of it recovered.

Secondly, cash-flow issues are particularly acute at the moment. My colleges have come forward with a simple solution to help—something the Minister probably barely needs to ask to change, but it could make a real difference—which is the alignment of the economic cycle between the Education and Skills Funding Agency, the funders of FE, and the colleges. The ESFA funding year runs from April to May and the colleges’ from August to July. That causes a real cash-flow difficulty. A little tweak to the system would make a world of difference.

On the issue of capital funding, which my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier) mentioned earlier, Askham Bryan College in particular is an old college. The facilities are tired and yet the match funding is prohibitive, especially at a time such as this, with the additional pressures the college is facing. I ask that the issue is revisited, so that some more capital grants can be made available to FE, because the estate is important to delivering vital education to young people and adult learners.

The fourth issue is the wider funding formula, which we know is crucial in order to gather skills. We often look at the minimum cost of provision, but there is a wider cost. We need to look at the wider costs of not investing in our learners, particularly in things such as the recruitment and retention of staff—technical as well as teaching staff—which is really important. Obviously the wider economy is a draw, but we must ensure that we can deliver classes. Class sizes at the college in York are getting bigger and bigger, and the opportunities in the curriculum are getting smaller and smaller, in order to try and balance the books. This should be a key investment. I would therefore welcome a further education White Paper if it had a proper funding formula for FE hardwired into it.

My fifth point is about mental health investment. Many young people have felt the stress and strain of covid. I know from discussions with the principal and previous principals that York College has had challenges around the mental health of its students. We need to ensure proper mental health facilities are in place. It does not have the resources that are invested in universities and is not benefiting from any of the investment in the schools mental health programme. I ask the Minister to look at a mental health approach for FE, and for proper resourcing for facilities.

Finally, I want to talk about the longer-term opportunity and planning for further education. We have a really big challenge ahead in the skills that people are going to demand for the new economy. As I have said, it is for local areas to plan their approach. It will improve productivity and rebuild the economy, but, more importantly, it will give people a bridge from their current place of employment into new employment, without having to go through the massive dip of unemployment. That is what I fear. That linking through for every person on the cusp of losing or their job—or even before that, as my hon. Friend the Member for Hackney South and Shoreditch pointed out powerfully—would enable us to sustain our economy and protect people. Everything should be done to enable that process. I am working with the trade unions and the local not-for-profit sector, as well as Citizens Advice and the jobcentre, to see how we can ensure that there is a skills-based approach to recovery injected into our city, but we need support from the Government.

I was concerned about the impact of the apprenticeship levy being returned to the Treasury; it is a lost opportunity for investment. Back at the beginning of the current crisis, there was a call-out for shovel-ready projects to try to kick-start the economy and build skills. I would ask for shovel-ready apprenticeships and opportunities in order to use that money wisely and to invest in the skills that are needed now. Colleges would welcome the opportunity to reach out further.

I have a final point on asylum seekers, who are arriving at this very difficult time and are being placed in difficult circumstances. There is a lack of connectivity into FE. In my city, young people have been placed in a hotel, without a connection into college and skills. I appreciate that that could be quite a transient group, but there is an opportunity to engage young people who are coming here and to ensure that they are on that learning journey. It is a good use of resource and time, but the connectivity between the Home Office and education is not there. It would be really good to see more investment in those connections at a time when people are waiting for their applications to be processed, not least because it is taking so long at the moment.

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[Gillian Keegan]

The flexibility that we have introduced is to make sure that attendance is not impacted by coronavirus, through having blended learning and dual systems in place. That is going to be increasingly important, because some people may be shielding or may be with people who are shielding, and will have concerns. That is why we have insisted on having the capability and flexibility to offer that learning in many different ways.

For those people who are not able to take up a job or a work-based learning offer when they come to the end of their learning, we are investing over £100 million in a brand-new offer of classroom study in high-value subjects to support 18 and 19-year-old college and school leavers to progress into employment. These courses are aligned to priority areas for economic recovery and well-paid, rewarding jobs, and as the hon. Member for Hackney South and Shoreditch mentioned, in some cases that could lead to increased numbers for those particular courses. We are considering the impact that this will have, and are considering providing extra funding during the year to help support those colleges.

For those who have minimal work experience and lack the skills or confidence to enter employment or start an apprenticeship, we are making £111 million available to triple the scale of traineeships. These are like pre-apprenticeships, and they can be very flexible, specifically tailored to the needs of young people and adults to help them into the workplace. They provide opportunities to develop further skills, work preparation training, work placements and sector-focused vocational learning or support a transition into work or an apprenticeship. They are also designed to help people get on to the next stage of an apprenticeship.

A number of hon. Members have mentioned apprenticeships. Some £2.5 billion a year is invested in apprenticeships, and we have introduced a lot more levy flexibilities to try to ensure that all that money can be utilised. We have put in place 25% to transfer within a sector or a supply chain, which I know has been welcomed. We need to work more to make this function better, because it is a bit clunky at the moment.

We need to focus on SMEs and the opportunities that they provide for apprenticeships. We also have a redundancy service, which we have just put in place, for apprenticeships. There are some signs of good news. More than 1,000 employers are advertising vacancies and opportunities at the moment on that service for those who find themselves redundant.

It is essential that every young person has access to an excellent education when they finish compulsory schooling at 16. The Government plan to spend over £7 billion this academic year to ensure that there is a place in education or training, including apprenticeships, for every 16 to 18-year-old. I appreciate that the base rate of 16 to 19 funding has been static for many years, so I am pleased that we were able to increase it by 4.7% this year.

We are also transforming technical education in this country, providing a lot more opportunity, particularly through the introduction of new T-levels. These pioneering qualifications will create a highly skilled generation of students who are able to meet the needs of industry. It is fantastic to see that providers have begun the roll-out of T-levels for 16 to 19-year-olds. I am sure hon. Members will visit their local colleges and I urge them to see the students there. It will give hon. Members a real boost. One chap said to me, “When I saw the curriculum and I heard about it in my school assembly, I thought it was too good to be true. Now I am on my eighth week and it is even better than I thought.” To hear young people so excited about those qualifications is amazing. They are also welcomed by the sector, because they attract a significant amount of funding and capital investment. I look forward to rolling those out, because that will provide another stream of funding—up to £500 million per year when they are all rolled out.

I recently visited my local college in Chichester and met some of the trailblazing students. Their enthusiasm and excitement is really catchy. The state-of-the-art technologies that they are using are brilliant to see. I have seen the latest equipment in manufacturing and the latest technology and software. I have seen them using virtual reality and immersive technologies. Those are the gold standard in technical education, which is why I feel confident that we will have a world-beating system.

We want to support and encourage providers to deliver programmes that will really help young people and adults to succeed in the labour market and, in particular, are valuable to employers, even if they cost more to deliver. That is why we have introduced a premium pay to providers to deliver level 3 qualifications, which are of high value to businesses but cost more to deliver

We need to provide the skills that employers and businesses are looking for. It is vital that we are in step. It is such a fast-moving market; we have seen that even more with coronavirus. I have worked for 30 years, and technology has impacted businesses’ operating models unbelievably quickly. We need to ensure that we keep in step.

The lifetime skills guarantee will give adults who missed out on that first opportunity the chance to succeed by fully funding their first full level 3 qualification, as was mentioned by the hon. Member for Hackney South and Shoreditch. I hope that is welcome, because it is a breakthrough and it is something additional. It will really give adults a great chance to progress further in their careers or change careers completely.

[Rachael Maskell]

In the light of the current economic situation, will the Minister look at extending that opportunity to allow people who have already achieved a level 3 qualification to change the direction of their career and secure future employment?

[Gillian Keegan]

I think the hon. Lady will accept that we have only just announced this initial opportunity. We are considering providing other opportunities to upskill and reskill. We are providing digital bootcamps and we are providing learner loans for levels 4 and 5. Digital bootcamps can really help to provide opportunities to fill in-demand vacancies. Those will be targeted. The digital bootcamps will start first of all in some of the areas in the west midlands, Greater Manchester, Lancashire and Liverpool city region. They will then be developed out to Leeds city region, heart of the south-west, Derbyshire and Nottinghamshire.

We will keep that model under constant review. It is quicker to respond. The courses are intensive over 12 to 16 weeks and are delivered in a specific way. If the model works, we will look to expand those courses further. We are also looking at other industries that may benefit from that approach. We are trying to respond quickly.