Richard Graham
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Further Education Funding
Richard Graham Excerpts(5 years, 7 months ago)
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Richard Graham (Gloucester) (Con)
I beg to move,
That this House has considered further education funding.
Good morning, Sir Roger. It is a pleasure to serve under your chairmanship and to see colleagues from across the House come together to debate further education colleges. I do so with my co-conspirator, the hon. Member for Scunthorpe (Nic Dakin)—165 colleagues signed our recent letter to the Chancellor of the Exchequer. This is a fantastic opportunity for hon. Members from all parties to come together without the need for indicative motions on alternatives and to reach a rare and much-cherished cross-party consensus on four simple propositions.
The first proposition is that further education is incredibly important to all of us, in every constituency in the land. The second is that our colleges need more funding to achieve important goals. The third is that the spending review and Budget are a great opportunity to make giant steps towards that objective. Lastly, today is an opportunity for many people to give a clear message to the Minister for Apprenticeships and Skills, who has been very supportive throughout, and to the wider Government: please do more to help our colleges provide the skills our young people need for themselves and for our country.
Steve Brine (Winchester) (Con)
Well done to my hon. Friend for securing the debate. Peter Symonds College in Winchester is the largest in England. It has grown significantly in recent years. Student numbers grew by 19% between 2011 and 2018, yet in the same period the college’s overall funding grew by just 3%—the relevant factors are the rising cost base, changes to pension contributions, national insurance and the part-funded pay rise—meaning that, without a long-overdue increase in the base rate, it will have to make some very difficult and significant changes. Does my hon. Friend agree that the comprehensive spending review is looking increasingly like a seminal moment for this sector?
Sir Roger Gale (in the Chair)
Order. Before the hon. Member for Gloucester (Richard Graham) answers, may I put a marker down? An enormous number of Members wish to take part in the debate. I am going to insist that interventions be brief.
Richard Graham
The short answer to my hon. Friend the Member for Winchester (Steve Brine) is yes.
Today, I want to set out briefly what the problem is—as you say, Sir Roger, many Members wish to speak—what the case for further education colleges is in more detail, what outcomes we would like to see from more funding going into the sector, what skills and productivity we should be looking for, and some of the key statistics, both locally and nationally, that are on our minds.
Let me start by outlining the problem. It is simply that education for 16 to 18-year-olds has, broadly speaking, not been funded as well as that for other age groups. The Institute for Fiscal Studies has done research that shows that. The chart we used in our letter shows clearly that, of the four main categories of education—primary, secondary, further and higher—further education is the only one on which spending has fallen in real terms recently. It is therefore the most deserving of the four categories, but let it also be said—
Richard Graham
I will give way in a second; let me just finish the sentence. I suspect that all of us here share the view that education in general is a good cause for the spending review and the Budget, so this is not to decry the other three categories but to highlight the importance of more funding for further education. Three colleagues wished to intervene—I think they were, in order, an hon. Friend and then two Opposition colleagues.
John Howell
I will be as brief as I can. Does my hon. Friend not think that FE colleges have the ability to improve the situation themselves by attracting good companies in to help fund apprenticeships? That is precisely what I am doing with the FE college in my constituency.
Richard Graham
My hon. Friend is always a great champion of these things, and he is absolutely right. Colleges can certainly help themselves by attracting great employers to offer apprenticeships, and we can help them by introducing some of the employers if need be.
Melanie Onn
Does the hon. Gentleman agree that the restrictions on FE funding have directly damaged the ability of colleges to recruit very specialist skills at the highest level, such as in engineering, meaning that vacancies exist for long periods and that colleges are often cutting short those types of course?
Richard Graham
The hon. Lady has brilliantly anticipated a line in my speech, and I agree with her.
Mr Bailey
Notwithstanding the Treasury’s historical aversion to hypothecated taxation, does the hon. Gentleman agree that, given that the Government are making a substantial surplus out of the apprenticeship levy at the moment, there is a strong moral case for recycling that money into the 16-to-18 sector?
Richard Graham
Hypothecated funds are interesting. I am an advocate of them for the field of care. I will leave my right hon. Friend the Minister to comment on the huge surplus being generated; I have not yet seen much sign of that surplus coming through in my constituency, but the hon. Gentleman raises an interesting point.
Mr Marcus Jones (Nuneaton) (Con)
The point about recruitment and retention has been raised. Does my hon. Friend agree that the sector desperately needs more funding? In a case I am aware of, there are staff who have not had a pay rise for 10 years. If that is the case, retention will become impossible.
Richard Graham
Yes. When it comes to pay rises, all of us will remember that take-home pay has increased by about £1,200 as a result of the tax-free allowance being almost doubled, but my hon. Friend is absolutely right on the wider point about being able to retain key staff. That point has been raised by other colleagues and is crucial.
Alex Chalk
Does my hon. Friend agree that FE is at its most successful when it is provided locally, in communities? Gloscol—Gloucestershire College—provides services in both Cheltenham and my hon. Friend’s constituency of Gloucester, but if the cuts increase, it will be at only one or other of those sites, and that will reduce the uptake of courses and damage FE provision in the county overall. Does my hon. Friend agree?
Richard Graham
Where my hon. Friend and constituency near-neighbour is absolutely right is that, in the case of Gloucestershire College, which provides those skills in Cheltenham, Gloucester and the Forest of Dean, there is only one provider, in effect, in the whole county. That is why further education colleges are crucial to the infrastructure of all our constituencies. I agree totally with that.
Sarah Newton
My hon. Friend is being very generous with his time. I commend him for securing the debate. There could not be a greater champion for this sector than our right hon. Friend the Minister. Our job is to give her strength to go forward to the Treasury to secure the funding, and it is great that so many of us will be on the record giving her that strength. On the point about more funding to secure better wages, Truro and Penwith College is outstanding and deemed to be so by Ofsted, yet it has not been able to give its staff a pay rise for eight years, which of course is making it difficult for the college to recruit and retain staff.
Richard Graham
My hon. Friend is absolutely right. I think we can all agree that it is time that core funding allowed for a decent increase in salaries for staff.
Mr Dunne
My hon. Friend is exhibiting, if I may say so, an almost ministerial skill in handling interventions today. He was touching on geography. The FE college in my constituency is the only location for sixth-form and technical training within a 20-mile radius. Does he agree that if pressure is placed on isolated, rural FE colleges, we may well find ourselves in a situation in which no such provision is available in parts of the country, which would not be acceptable?
Richard Graham
My right hon. Friend is absolutely correct. The crucial point, as he implies, is that, in effect, his local college, like so many of our colleges, has a monopoly. If things were to go badly wrong, who else would provide what it does? Who would provide those opportunities for young people? My hon. Friend the Member for York Outer (Julian Sturdy) was reaching for an intervention.
Julian Sturdy
I congratulate my hon. Friend on securing this important debate. He is right to highlight the importance of wider education funding, which has seen increases. However, York College, in my constituency, tells me that the big problem it faces is that while school sixth forms can cross-subsidise, colleges cannot. Does he feel that that issue affects all colleges?
Richard Graham
My hon. Friend is absolutely right. That is a significant issue, as is the issue of A-levels for those who went to schools without a sixth form, for whom further education is really important. I know that my co-conspirator, the hon. Member for Scunthorpe, will come on to that point.
Rebecca Pow (Taunton Deane) (Con)
My hon. Friend deserves huge praise for bringing this debate to the House. The Minister also deserves huge praise, and I know she is listening and believes a great deal of what we are saying. In Taunton we have an outstanding sixth-form college, Richard Huish College, and an excellent university centre. However, those institutions tell me that, by 2021, they need at least £760 more per student to deliver the apprenticeship scheme, which delivers for business. Does he agree that we want to retain those students locally, because they have the skills we need for the future, and to deliver minority subjects, such as languages?
Richard Graham
I absolutely agree. The Minister, who is a former apprentice herself, is a huge champion for that, along with colleagues from across the House.
Matt Western (Warwick and Leamington) (Lab)
The hon. Gentleman is being generous with his time. Related to the suppression of pay in the sector is a casualisation of contracts, which are being put out to subsidiary businesses within college groups, and that has an impact on the morale and pay of staff. Next Monday and Tuesday there will be strikes at Warwickshire College Group in my area. That is not what students need, and the sector does not need it either.
Richard Graham
The hon. Gentleman raises an interesting question. He is absolutely right that that is not what students need, and I am not sure that it is what colleges really need at the moment. Perhaps the Minister will touch on that.
We are looking for more funding, which is needed to ensure that good staff are hired and retained. Unused space needs to be used. Interestingly, around a third of the space in the nation’s further education colleges is currently unused, so there is a capacity opportunity, which could provide more space for more students to get those key skills.
We need more quality apprentices to be hired and trained. We all have stories from our respective constituencies about the importance of that. Colleges can make a huge difference in terms of the life opportunities apprenticeships offer. The key output from that will be a leap in business productivity, which we know is one of our country’s big, outstanding challenges.
Paul Farrelly (Newcastle-under-Lyme) (Lab)
Does the hon. Gentleman agree that, as well as funding for students, colleges face challenges with apprenticeships and, in particular, with the new non-levy apprenticeship scheme, of which the Minister is well aware? In my area, the Newcastle and Stafford Colleges Group has no funding for 18-plus, non-levy adult apprenticeships, and only enough funding until the end of September for 16 to 18-year-olds.
Richard Graham
The apprenticeship levy is an issue in itself, which I do not intend to address today, because it is slightly peripheral to what we can achieve in an hour and a half on the overall situation for further education colleges. The hon. Gentleman is right that there are ongoing issues, which I know the skills Minister is doing her best to tackle, and I am grateful to him for raising them.
More funding can achieve results in a couple of slightly softer areas, which are worth mentioning. The challenge around mental health is not unique to further education but exists across the education sector. There is no doubt about it: young students in general are facing more challenges than in the past. Funding to ensure that they get the support they need while at college is incredibly important and should increase their resilience and contribute to better results and opportunities. It is worth adding that to the checklist of things that could be achieved through more funding.
Richard Graham
Lastly, at the soft end of what could be done, there is a range of enrichment activities, particularly for students aged 16 to 18, where colleges have opportunities to demonstrate that they can compete with other, better funded institutions.
Before I turn to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), who is from the engineering sector and a great advocate for it, I will just touch on a few general facts, which it is useful for us to bear in mind. There are 266 colleges in England—almost one college for every two constituencies. They educate the majority of 16 to 18-year-olds and 2.2 million other young people and adults. On average, there are 1,200 apprenticeships in every further education college. Students who are over 19 generate an additional £70 billion for the economy over their lifetime.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Will the hon. Gentleman give way?
Richard Graham
I will just make a bit of progress, then I will come to the hon. Member for Newcastle upon Tyne Central and then the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss).
The average pay for a college teacher—a number of colleagues have mentioned salaries as an issue—is £30,000, compared to £37,000 for a school teacher. I find that a particularly interesting statistic because it implies that we put a lower value on further education teachers than school teachers, which cannot be right. It is also worth highlighting that in 2017 alone the turnover rate in further education was 17%—almost one in five—which is higher than the rate in schools. As a result of funding issues, 63% of colleges have been making compulsory redundancies. If this was a business, we would have to assume that it was in decline. I think we would all say that it is time that we halted and reversed that process.
Chi Onwurah
The hon. Gentleman is absolutely right to highlight the devastating impact that lack of funding for further education is having, particularly on young people. Colleges such as Newcastle College in my constituency are doing great work in really difficult circumstances. Does he agree that adult education and lifelong learning, such as that delivered by the Workers’ Educational Association in hard-to-reach communities in Newcastle—which has also been severely cut and is likely to be cut more in the future—provides the kind of opportunities that we need, particularly for productivity in the fourth industrial revolution, as jobs change in the future?
Richard Graham
The short answer is that I agree. Qualifications for workers in key sectors have dropped. Qualifications for construction workers have dropped from 98,000 to 62,000. For engineers, the sector from which the hon. Lady comes, including plumbers and electricians, the figure has dropped from 145,000 to 46,000. That is a huge drop in a relatively short space of time, precisely at the moment when we need more engineers in this country, to take forward our technology revolution.
Julia Lopez (Hornchurch and Upminster) (Con)
My hon. Friend highlights precisely the relevant point, namely that at the very moment when we should be looking at vocational skills in our economy, we are squeezing funding in that area. This is critical to where our country is heading in the next 10 to 20 years.
Richard Graham
I do apologise—I will come to the hon. Lady in one second. Some statistics, which the Minister is well aware of, suggest that on a national basis we are in the bottom quartile for the numbers of higher apprenticeships, which are the ones that include the greatest numbers of skills and will drive forward our technology businesses. At the same time—the hon. Member for Scunthorpe may touch on this—it is worth remembering that the entry qualifications, levels 2 and 3, play a very important role in getting some of our youngest and least-skilled constituents on to the ladder of opportunity, so we need support at both ends.
Gill Furniss
I thank the hon. Gentleman for giving way. I applaud the work of Sheffield College in my constituency during these difficult times. Does he agree that we are taking away a vital support system for many in our working-class communities, and that we will rob them of vital opportunities for the future, unless we change now, and start giving further education colleges the support that they need and individuals the community support that they need to realise their potential?
Richard Graham
I agree with the hon. Lady’s general point that it is incredibly important to give our young people maximum opportunities. Everyone has highlighted the role of further education colleges in that.
Richard Graham
I will make a tiny bit of progress. I am conscious that a lot of hon. Members want to speak, so I will try to reach the end of my comments and bring the hon. Lady in before I finish.
It would be wrong of me not to mention the importance of Gloucestershire College—Gloscol—in my county of Gloucestershire, which I have known well for the last decade. The management have done their best to try to use resources to maximum effect and give our young people the opportunities that we are looking at across the country. Its 1,000 full and part-time staff serve some 3,500 students across the three campuses in Gloucester, Cheltenham and the Forest of Dean. It is clear, however, that even such a college, which has been rated good for the last three and a half years, is struggling to maintain the range of qualifications that my colleagues in Gloucestershire and I want it to provide.
I will not touch on South Gloucestershire and Stroud College, because the hon. Member for Stroud (Dr Drew) will want to, but I suspect that he will mention some similar issues. I also pay tribute to my fellow campaigner in Stroud, Siobhan Baillie, who has visited the college twice recently and has highlighted some of the issues that it faces, including—as is true for all colleges—the teachers’ pension increases that cost it £1 million a year. I hope that the Minister will comment on those pension costs, which are a real issue for many colleges across the country; she has spoken about them before.
Karen Lee
I have one brief sentence. I agree with the hon. Gentleman about young people, but colleges support older people and people of all ages as well. I left a grammar school with two O-levels, then went to college, got my A-levels and trained as a nurse—aged 39. [Hon. Members: “Hear, hear!”]
Richard Graham
The hon. Lady makes a very good point, as shown by the warmth of approval purring through the Chamber. She is a fantastic example of what a further education college can achieve; perhaps we should have a colleges alumni group in Parliament.
Some of the comments that the Association of Colleges and other royal societies have fed in to me confirm the general picture that I and other hon. Members have painted so far, which is that we need more funding for teachers’ pay; more help to ensure that the range of subjects continues to increase rather than decrease; and more young people to get decent results in English and maths at A-level. We also need to tackle the shortage in science, technology, engineering and maths skills, which are vital for our country’s future, as several hon. Members have mentioned.
I will finish by alluding to a remarkable bundle of statistics. There are 171,000 16 to 18-year-olds doing A-levels in further education colleges—a huge army of young people who deserve to be taught well and given the resources they need—and 672,000 students taking STEM subjects in colleges, who also deserve the best teachers available from a sector where salaries are getting higher all the time.
For all the reasons mentioned, I hope that the debate encourages the skills Minister on her chosen path, which is to be the champion of further education colleges. I also hope it will ensure that, in this spending review and Budget, further education colleges finally get the increase in funding that they deserve, so that they can ultimately improve opportunities and productivity, and be the success that we all want them to be in our constituencies.
Several hon. Members rose—
Richard Graham
This debate has been 90 minutes of passionate appreciation of and support for further education colleges. I thank the Backbench Business Committee for granting it. I also thank the hon. Member for Scunthorpe, who is my co-skipper of the campaign for fairer funding for further education colleges, and all hon. Members who have spoken today for their huge message: “Let’s get the right resources for these national engines of skills, aspiration and social mobility.”
Sir Roger Gale (in the Chair)
Order. Before we move on, may I thank all hon. Members for the courtesy with which this debate has been handled? In one form or another, all hon. Members who remained in the Chamber and sought to intervene got in—my congratulations.
Motion lapsed (Standing Order No. 10(6)).