Equality of Funding: Post-16 Education

Rachel Hopkins Excerpts

Tuesday 25th February 2020 Westminster Hall

[Rachel Hopkins (Luton South) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate my hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) on securing this important debate.

For the past five years, I have been a governor at Luton Sixth Form College, which is the oldest in the country and, with more than 3,100 students, one of the largest. It is the college that I am proud to have attended. I have seen how vital further education provided by sixth-form colleges is to improving young people’s life chances and laying the foundations for a successful life. In deprived areas or places with limited employment opportunities, education is integral to setting young people up with the skill set to improve their living standards and their surrounding community.

I welcome the comments already made about ensuring that we retain a mix of A-levels, BTEC and T-levels to meet students’ varied demands; that applies equally to the vital opportunities that some students at Luton Sixth Form College have to take the extended project qualification, for example, enabling them to broaden their horizons in independent study. Those things are at risk as a consequence of underfunding.

The fact that funding has been squeezed leads to pressures on both teaching and support staff, as has been said. It is absolutely unacceptable that since 2010 the Government have frozen the rate for 16 and 17-year-olds and cut it for 18-year-olds. As to funding for support staff, student services have been slashed in 78% of cases, and in 81% there are larger class sizes. The Home Secretary yesterday said that the Government are levelling up our country’s skills, but in reality that could not be further from the truth.

VAT is another point that it is vital to cover. Under the area-based review a few years ago, Luton Sixth Form College was commended and it was agreed that it would stand alone as a sixth-form college. However, it has to pay £350,000 to £400,000 in VAT. It was told that to consider becoming an academy, to claim that back for students, it could not be a stand-alone academy but would have to go into a multi-academy trust. We felt that that would detract from our core education mission, which had already been praised. We need a joined-up approach to all that.

The effect of underfunding on state schools and colleges is clear. Only 18% of state-schooled A-level students went on to attend the most selective universities in 2016-17, compared with students from the independent system. Another consideration that particularly affects my town and constituency is that the population is growing. The Office for National Statistics forecasts a 29% rise in the number of 16 to 18-year-olds in Luton by 2028, which equates to nearly 1,500 more students. Luton’s sixth-form sector will struggle to accommodate that growth. Therefore, colleges such as Luton Sixth Form College, and other school sixth forms in my constituency, such as Stockwood Park Academy and Manshead Academy, will need additional funding to ensure adequate additional capacity for those students. The rate must be raised to £4,760 per student per annum, and yearly increases must be tied to inflation. The increase must be taken alongside the wider aim of achieving funding parity with secondary schools.

As colleagues have mentioned, the funding commitment constitutes only a one-year deal for 2020-21 for sixth forms and colleges, whereas schools in the five-to-16 sector received a three-year funding deal, with a further commitment to keeping pace with inflation. We want to hear from the Minister why five-to-16 education receives funding certainty but the 16-to-18 education sector does not. Properly funding sixth-form colleges creates a bridge between school education and higher education that facilitates effective social mobility. Ten years of underinvestment have damaged that bridge, but there is a clear way forward: raise the rate and set a sustainable further education funding model.