Technical and Further Education Bill

Rob Marris Excerpts

Money resolution: House of Commons & 2nd reading: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 14th November 2016 Commons Chamber

[Justine Greening]

I would like to make a little more progress. I recognise the hon. Gentleman’s long-standing interest and expertise in this area, but let me get on to the Bill itself.

Alongside our wider education reforms, the Government’s work on technical and further education over the past six years represents a firm foundation on which we can now build a really strong technical route in this country. The Bill serves to do exactly that. Part 1 focuses on technical education. It extends the role of the Institute for Apprenticeships to give it responsibility for classroom-based technical education in addition to apprenticeships. It will be renamed as the Institute for Apprenticeships and Technical Education. The measures take forward and support the reforms set out in Lord Sainsbury’s report and the skills plan so we can truly streamline the technical education system and ensure young people can follow clear routes to skilled employment. That will ensure that we have strong standards as part of an employer-led approach on technical education so that courses and apprenticeships develop knowledge, skills and behaviours in individuals that meet the needs of employers and improve overall productivity.

[Rob Marris (Wolverhampton South West) (Lab)]

The right hon. Lady may well know that those of us who have worked in factories and in similar jobs realise that often the people at the chalk face, as it were, know at least as much as employers about what skills are needed. How will we ensure the revamped institute includes workers or their representatives—as well as employers, of course—so that there is a rounded view of what is needed and what is appropriate for a particular skill?

[Justine Greening]

As the hon. Gentleman knows, the Government have talked significantly about our plans to make sure that workers have more representation at the higher echelons of business. As the Institute for Apprenticeships becomes responsible for technical education, it will of course have employers at its heart, but it will also work with other stakeholders including, importantly, further education colleges themselves. We will make sure that the institute can truly deliver on our ambition for it to be at the heart of how we drive forward and improve standards in technical education.

Part 2 of the Bill puts in place protections for students for the first time and provides greater certainty for institutions by introducing an insolvency regime for further education and sixth-form colleges. It applies normal insolvency procedures to colleges. At present it is not clear whether or how colleges are covered by existing insolvency law, and the resultant uncertainty is bad for colleges and for students. The Bill will remove the uncertainty for all parties by putting in place a regime that allows for an orderly process in the very unlikely event of a college becoming insolvent. As I have said, we need to rectify the lack of protection for students. Crucially, chapter 4 of part 2 will put in place a special administration regime that will have the special objective of minimising or avoiding disruption to the studies of existing students at affected colleges. These measures will ensure that students can be protected if a college becomes insolvent.

As I mentioned earlier, the current programme of area-based reviews is already putting the sector on a sustainable financial footing for the future. Part of the review process is to encourage colleges to consider needs and provision locally. That will help to ensure that the right provision is available in the right places. The proposed insolvency regime and technical education measures also require certain delegated powers, and we will be providing more information about those to the House before the Bill goes into Committee.

Part 3 of the Bill, the title of which is “Further education: information”, includes a measure to amend existing legislation to ensure that, after the devolution of further education functions and the adult education budget to a combined authority, FE providers and others will continue to submit relevant information to the national data system. This will ensure the continued availability of relevant data that are needed to make intelligent and strategic policy decisions about investment in further education.

Six years ago, we inherited a system from Labour in which too many young people—often those from the most disadvantaged backgrounds—left school or college without the skills and qualifications that they needed to build a successful future. Our wide-reaching reforms have had a transformational effect on the education system in this country, and it is important that we now build on the work of my two immediate predecessors in this role, my right hon. Friends the Members for Surrey Heath (Michael Gove) and for Loughborough (Nicky Morgan).

We know that there is still so much more to do, which is why we are doubling free childcare for working parents of three and four-year-olds to 30 hours a week. We are also working hard to put our first-class universities on an even stronger footing so that they can continue to compete with the very best in the world. We are starting work on opportunity areas to ensure that the education system as a whole can work better to drive social mobility in those parts of the country where it has been stalled for generations, and we have doubled the previous Labour Government’s spending on school places and set out plans to make more good and outstanding school places available to more families all over the country.

The newly broadened remit of the Department for Education, with skills and further education back under one roof alongside schools, gives us an exciting opportunity to build on the excellent work that has already been done over the past six years, both in FE and in the wider education sector. In the end, education underpins how this Government want to create a country that works for everyone so that, irrespective of their background, people can get the skills that they need to take advantage of the opportunities in our country. This is not only good for individuals, but will ensure that we have the skills that our businesses and our economy need so that we can drive up prosperity across the country. The Bill will allow us to take the next steps to give the technical and further education route the status and the spotlight it deserves so that it can flourish as a genuine, high-quality alternative to the academic route, and one that leads to successful careers for those who choose to pursue it. I commend the Bill to the House.

[Angela Rayner (Ashton-under-Lyne) (Lab)]

I start by associating myself with the well-wishes for the hon. Member for Grantham and Stamford (Nick Boles).

The Opposition do not intend to oppose the Bill’s Second Reading, but many questions remain for the Government to answer during its passage. We accept that the provisions on insolvency are necessary, but their necessity is a sad reflection on the circumstances facing providers under this Government. Further education helps 4 million people a year, playing a vital role in giving our young people the skills they need and supporting older learners into retraining and learning new skills. Since 2010, however, the sector has suffered a real-terms budget cut of 14%. I am sure that the Secretary of State will have seen the National Audit Office report on “Overseeing financial sustainability in the further education sector” and will know that 110 colleges had recorded an operating deficit by 2013-14—more than double the number that had done so in 2010, when her party took office—and that the number of colleges judged by the Skills Funding Agency to have inadequate financial health has more than doubled. However, in the face of that financial crisis, the Government’s solution is not the investment that the sector needs, but is simply a way to sweeten the bitter pill of insolvency.

I needed a second chance at education, and many of my Opposition colleagues have experienced the transformative effect that technical and further education can have on young people’s lives and on learners at all stages in their lives. That is why the Opposition see the Bill as a missed opportunity. Britain needs a highly skilled, highly trained workforce to succeed in the economy of the future, particularly following Brexit and given the productivity gap that we face.

[Rob Marris]

Does my hon. Friend share my bemusement at the Secretary of State standing before the House this afternoon extolling the transformational—that was the adjective she used—changes brought about by her Government and the previous coalition Government and extolling the high-quality work that has been done? Does my hon. Friend share my bemusement that, despite apparently hordes more skilled workers as a result of the changes introduced by this Government and the previous Government, this country’s productivity is still absolutely rubbish? If technical and further education were so fantastically transformed, productivity would have improved a whole lot, but it has not.

[Angela Rayner]

I absolutely agree that this Government have done nothing to provide technical skills. Colleges have faced dramatic budget cuts. It is audacious for Ministers to stand at the Dispatch Box and say what they have done when they have failed. In fact, the Government included the word “technical” in the Bill only as an add-on—it was not there in the first place.

I would be the first to say that an excellent academic education must be provided to all pupils from all backgrounds, but given that many will not go to university, other educational routes remain vital. That is why it is so important that further education is put on a sustainable financial footing. It is not too late for the Government to do that and to bring forward the changes that the sector needs. Next week, the Chancellor will stand at the Dispatch Box and deliver his first autumn statement. The Government could take that opportunity to ensure that the hundreds of millions of pounds that has been cut from the further education sector since 2010 are reinvested in colleges across Britain, in our future and in our best and most valuable asset: the people.

The Secretary of State could get the Chancellor to bring back the education maintenance allowance, which helped hundreds of thousands of young people from low and middle-income backgrounds to stay in education. The Institute for Fiscal Studies confirmed that the EMA represented value for money for the taxpayer, boosted the rates of young people staying in education and improved attainment. I fear, however, that we will be left disappointed once again. After all, this Government have struggled to match warm words with policy when it comes to education.

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[Angela Rayner]

I will be interested to see what the Secretary of State has to say about that. I find it absolutely shocking—

[Rob Marris]

Shocking.

[Angela Rayner]

Absolutely shocking. We have seen the Skills Funding Agency lose nearly half of its staff since 2011, and we have seen continued and accelerating decline in the staffing of the National Apprenticeship Service and the UK Commission for Employment and Skills. Of course, all those bodies were threatened with further cuts under the “BIS 2020” project, which was overseen by McKinsey for the former Secretary of State. We found out about the details of that not from any ministerial statement, but through internal documents leaked to my hon. Friends the Members for Sheffield, Heeley (Louise Haigh) and for Sheffield Central (Paul Blomfield) in April. Perhaps the Secretary of State can take the opportunity today to clarify that that process is no longer ongoing, and what her plans are for the staffing of bodies transferred from the former Department.

Given that businesses will contribute to the apprenticeships programme through the levy, it would help if the Minister reassured them that they will not be short-changed or end up just paying in to cover for cuts rather than for a genuinely new and improved level of service. As welcome as the institute is, there is concern that it will not deliver if it is not resourced for the job. With all the challenges facing the further education sector today, with the hundreds of millions of pounds of funding lost, and with the sky-rocketing number of providers facing deficits or requiring direct intervention of the Government, now is the time for radical action to ensure that our further education sector is able to continue on a sustainable footing in years to come.

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[Rob Marris]

My hon. Friend is making a powerful case. We need to think about technical education not just for the jobs of tomorrow, but for the jobs of the day after tomorrow. I am considerably older than her and my hon. Friend the Member for Luton North (Kelvin Hopkins) is a little older than me. When he entered the workforce, let alone when I did decades ago, many skilled jobs existed that do not exist now, such as in printing. Typesetting basically does not exist now. The world has changed and we have to equip the coming generation with not only the skills they need now, but the flexibility to adapt to what the workforce will look like, inasmuch as we can foretell that, in the next 30 years.

[Lucy Powell]

My hon. Friend makes a great point, although I do not want to get into the relative ages of Members here. But I look at my own children and think of the world of work ahead of them. We perhaps have an old-fashioned view of jobs such as engineering—engineers come in all shapes and sizes now, from digital engineers, sound engineers and construction engineers to the other types of engineer that we may know about. A key issue with the productivity gap we are facing in this country is the problem we have in applying technology and technological advances in small and medium-sized companies.

I want children from Manchester Central to have exactly those types of skills; they will therefore need literacy, numeracy and other academic qualifications but also education in digital engineering and many other technical areas. The combination of the two will be the route for so many, and for all jobs in the future—I firmly believe that. I look at my own son, who I think will want to be an engineer one day; he is highly technically able—he has great skills there—but is highly academic as well. I want him to have the option to do both right through till 18.

The Minister seems to recognise the issue here, as he has recently the launched degree-level apprenticeship scheme, which I welcome. However, the tiny numbers involved in that scheme can in no way make up for the tens of thousands already going through the university vocational pathway. I hope that he is not falling foul of the same ideological dogma that his colleague the Minister for Schools and a previous Secretary of State for Education perhaps fell for in trying to cut away entirely the university professional pathway into teaching. As the Minister will know, that has in no small part caused the recruitment crisis in the teaching profession; stripping away the university pathway to teaching has meant that teacher supply is now at crisis point. I know the Minister, and so know that he is a lot more pragmatic than some of his colleagues; I urge him to watch the situation carefully, and make sure that these well-trodden routes—both academic and vocational—into professions remain very much open for our young people.

I will touch on a couple of other points that have already been raised. My hon. Friend the Member for Stoke-on-Trent Central raised resits. I concur with him entirely. We have to look again at the enforcing of required resits post 16. In many cases, less than 50% of children are passing those GCSEs the second time around. Many FE and post-16 institutions are struggling to get in the teaching skills needed to get children through GCSEs, as that is not something they are used to doing. The size and nature of the maths and English curricula make them increasingly difficult for some children to pass, and they are not necessary for the types of careers those children may want to go on to.

Like my hon. Friend, I entirely support the notion that children should do English and maths right through to the age of 18, but the Minister should clarify what will be required for resits. Will it be a level 4 or a level 5? I understand that it is a level 4 this year and next year, and will then go to level 5. We do not know what is happening; never mind parents and children, what are employers to make of that?

Finally, we should not have this debate without looking at the international comparisons for our funding levels for 16-to-19 education in this country. We compare really badly with our OECD competitors: we do well in terms of funding from five to 16, but then there is a significant dip in per-pupil funding. After that, funding goes through the roof for those who make it to higher education. We need a better and more consistent funding stream. The transformation we need in this area will be achieved only when we couple this sort of reform with funding.

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[Kelvin Hopkins (Luton North) (Lab)]

It is a great pleasure to speak in the debate and to follow my hon. Friend the Member for Hove (Peter Kyle). He is currently the chair of the all-party parliamentary group on further education and lifelong learning—a job that I had many years ago. I have had a long association with the further education and post-16 sector. I taught in further education more than 40 years ago, and while I was teaching a basic statistics course I discovered that one of the major problems with education in Britain is the poor level of mathematics teaching. The students I taught had difficulty with basic computation, multiplication and division. I found that quite shocking at the time, but the problem has continued.

Some 20 years ago, the great Lord Claus Moser produced a report on numeracy and literacy, finding that more than 50% of the population was functionally innumerate. He illustrated that point by saying that 50% of the population did not understand what 50% meant, which is quite surprising—if not shocking. More recently, I asked the former Secretary of State, the right hon. Member for Surrey Heath (Michael Gove), why we were having to recruit so many qualified engineers from abroad and he said that it was because our mathematics is not good enough to produce sufficient engineers. There is a serious problem.

[Rob Marris]

Does my hon. Friend agree that part of the problem with mathematics is down to English culture? It is still acceptable for people to say words to the effect of, “Ooh, I don’t do maths,” without that being seen by their interlocutors as an admission of abject failure. It is just seen as a bit of a joke. It is a cultural problem. This is about not only the education system, but our culture, particularly in England. It is appalling.

[Kelvin Hopkins]

I agree with my hon. Friend, but it is changing and I am optimistic about that. People such as me who are good at maths are regarded as being a bit of a geek, but what is wrong with being good at maths? In the country of Isaac Newton, Isambard Kingdom Brunel and Alan Turing, why should we be ashamed of being good at maths? That is being addressed, but we are still having to recruit thousands of engineers from abroad because people cannot do the maths to become engineers through our education system.

As I said, I taught in further education 40 years ago, but I also spent four years as chair of governors at the then Luton College of Higher Education when we were producing hundreds of qualified engineers doing ONCs, HNCs and then AMIMechEs and so on. They were good engineers and they could do the maths. It may just be that we have declined in some areas because the manufacturing demand is not as great as it was. We are now trying to pick up the manufacturing sector again and we are realising that we have missed out on maths.

I am happy to say that Luton College of Higher Education went on to become the University of Luton and then the University of Bedfordshire. The vice-chancellor is now Bill Rammell, a former colleague in Parliament, and its chancellor is Mr Speaker—the greatest honour of all—and I am absolutely delighted about that. I have also been a governor of the superb Luton Sixth Form College for 25 years. It does brilliant work and gets better and better every year.

Barnfield College is also in my constituency. A dozen or so years ago, it was the first ever general FE college to be given beacon status, but it went into serious decline and wound up almost collapsing into a state of failure a year or two back. It has now been picked up by its great new principal Tim Eyton-Jones and I am sure that it will be revived, but it needs Government support. It should never have been allowed to get into that situation. The neglect of colleges was criminal. Barnfield is now on the up and will be great again, but it needs the active support of Government, particularly in finance.

In Parliament, I was for some years chair of the all-party parliamentary group on further education and lifelong learning—lifelong learning is also important—but I am now chair of the all-party parliamentary group on sixth form colleges and am pleased about that. Colleges in general, FE colleges in particular, have been neglected over decades. Colleges represent an abused sector of education, and one reason for that is that so many people in the political sphere have no connection with further education. They go to posh schools—grammar schools, public schools, whatever—and then to university. Indeed, some become special advisers—a former Spad is in our midst now—and then go into politics never having touched further education or understood what it is about.

[Rob Marris]

Does my hon. Friend recall the reorganisation of Government Departments in about 2007—sadly under a Labour Government—when the Department for Innovation, Universities and Skills was set up? It took a week for the Government to realise that they had not put further education in either of the two possible Departments.

[Kelvin Hopkins]

There is another story, which may not be true, about what happened when incorporation was introduced in 1993. When the legislation was going through, the then Education Secretary was asked what was going to happen to sixth-form colleges and he said, “Oh, shall we put them in the FE sector?” It was a last-minute thought just to drop them into that sector. Sixth-form colleges are really schools and had they stayed with the local education authorities, we would by now have a lot more of them because LEAs would never have given away all the sixth-forms from their schools to create new sixth-form colleges because they were a different, independent sector.

Unfortunately, LEAs, and indeed, councillors are possessive about their institutions and do not want to give them away. I have experience of that, because when I was chair of governors of the Luton College of Higher Education, we had a battle royal to get that college into the higher education sector—out of LEA control and into the Polytechnics and Colleges Funding Council. The chief education officer threatened to sack the college principal for pursuing that avenue, and I had to intervene to say to the CEO publicly, “If you sack the principal, you will have me to contend with and I will fight you all the way.” He backed off and we got what became the University of Luton and, subsequently, the University of Bedfordshire. LEAs are, understandably, possessive and they are not going to give away their sixth-forms to move towards sixth-form colleges. Had they done that, our education system would be much better, but that is another story.

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[Lucy Powell]

My hon. Friend is making some good points. I did an A-level in not just maths, but further maths. [Hon. Members: “Ooh!”]

[Rob Marris]

Good for you!

[Lucy Powell]

I did not do very well in the further maths.

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[David Rutley]

The Government have already put in place improvements to the national living wage and will do more in that arena. Productivity is about a lot more than wages. From contributions that the hon. Gentleman has made in previous debates, I know that he is fully aware of that, too. The situation is more complicated.

One in four jobs left vacant in 2015 were due to skills shortages. The CBI has found that one in five employers want candidates for jobs who not only have academic qualifications but can demonstrate other skills as well. So the Government must ensure that their efforts to close the skills gap inspire and motivate those who would gain most—those in training and businesses that need their skills. If we are to strive to achieve the greater parity of esteem that we have talked about and to get businesses actively involved in education and training, we need to motivate more young people who are planning to pursue the non-academic track to gain the skills that will transform their lives. Only then will we secure the prize of greater national productivity. Wages have a role to play, but so, increasingly, does motivating young people to want to acquire these skills.

The key to promoting technical training will be the Government’s drive to provide 15 clear routes to 3 million quality apprenticeships. These routes are set out in the post-16 skills plan, which was published in July. It is a strong plan; my hon. Friend the Member for Grantham and Stamford (Nick Boles) deserves real credit for setting it out, and I join the hon. Member for Hove (Peter Kyle) in wishing him a speedy and full recovery from his current health challenges. Those routes—or “occupational categories” as they are called in the Bill—will signpost such sectors as construction, catering and hospitality, and vital ones such as engineering and manufacturing. The obvious, recognisable nature of these categories will give young people the assurance they need that apprenticeships are, and will be, focused on delivering identifiable careers and are relevant to their own fields of vocational interest. Relevance is absolutely key.

Confidence in these routes as genuine career paths can be bolstered only by involving businesses in their design. Fostering links between business and schools, and between business and the rightly reconstituted Institute for Apprenticeships and Technical Education, has never been more urgent. The Government have taken the initiative in encouraging businesses to step up to the plate and to deliver employer-led technical education that addresses the skills gap. I hope businesses will now seize this opportunity—it is vital that they do.

The Bill should be seen as part of a process of going further in breaking down the barriers between education and business—between school lessons and work experience. I have talked to my right hon. Friend the Minister about this. We need to get more young people out of school and into business, and more businesses into schools and further education. Indeed, schools themselves need to be made more aware of the options for, and the importance of, motivating young men and women in the classroom about wider opportunities to develop skills and career options.

No one in the House wants schools to feel they are being imposed on by the Bill; we want them to recognise the benefits of the Bill for the futures of the young people in their care. It is important to establish, as set out in part 3 of the Bill, an information-sharing relationship between the Department, schools, academies, colleges and other providers. Businesses, too, will need to find it easy to engage with education providers to be motivated to participate. Those relationships will need to be forged—in some cases, from scratch.

Fortunately, there is good practice—from existing schemes to introduce business skills into schools—to learn from and extend. For example, Young Enterprise and Enabling Enterprise provide teachers with opportunities to link up with business, and supply model exercises in flexible, transferable life and work skills. Young Enterprise already has relationships with over 50% of secondary schools. I shall be interested to hear—although this is not directly relevant to the Bill; it relates to the wider issue of what we can do to engage and motivate people—what role my right hon. Friend believes these schemes will play in this vital area of motivating more people.

There is much more that we need to do to close these skills gaps. In South Korea, for example, there is a clear difference between the skills gap among 55 to 65-year-olds, nearly half of whom are low-skilled, and among 16 to 24-year-olds, who have a much higher skills base. In England, however, about 30% of the 16 to 24-year-old age group and the 55 to 65-year-old age group are classified by the OECD as having low skills. It is clear that we are not closing the gap for the different age cohorts, and the Bill will be fundamental in taking that work forward.

My right hon. Friend is absolutely keen to move things forward on social mobility and to play his part in the party for the workers, which he has helped to articulate in recent years.

[Rob Marris]

The hon. Gentleman is extolling the party for the workers, so does he agree that workers and workers’ representatives, and not simply employers, should be involved in institutions?

[David Rutley]

The hon. Gentleman makes an interesting point. The Prime Minister has already talked about how we should look at having workers on the boards of companies. Let us see how we can take that forward, and what role they can play.

My right hon. Friend the Minister has a role to play in taking the Bill forward, and he has helped to articulate it further. I wish him well in the work that he is doing. He has already done important work in securing extra funding for businesses that take on an apprentice who has grown up in care. That shows that he has real credibility in driving this agenda forward.

As Conservative Members seek to build a Britain that works for everyone, we must promote social mobility and open up young people’s horizons to new experiences and aspirations beyond their own backgrounds. The Bill is vital in taking that work forward. I hope that my right hon. Friend the Minister will also take the opportunity to learn ways to bring businesses into the classroom and help more young people get out into the world of work. The Bill is an important start, and I wish him well with it.

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[Robert Halfon]

I will not give way because of the shortage of time.

A number of hon. Members mentioned the Maynard reforms. We will implement those as soon as we possibly can, particularly with regard to the issue of maths for those with disabilities. We will inform the House as progress is made.

The hon. Member for Hove (Peter Kyle) talked about the levy and technology. The thing is that if companies have apprentices, they do not pay the levy, and they get 10% on top. This is about changing behaviour and raising money to fund millions of apprenticeships in our country.

We have substantially grown apprenticeships, with 619,000 starts, which is why we have the levy. It will have an impact on employers with a pay bill of £3 million or more and help to fund the quantity and quality of apprenticeship training. We are dramatically reducing the number of technical qualifications available, ensuring even better quality for students.

A lot has been said about FE funding, but by 2020 more will be spent on FE and skills participation than at any time in our island’s history—£3.4 billion in the year 2019-20. My hon. Friend the Member for Dover (Charlie Elphicke) correctly described FE as a ladder of opportunity for young people.[Official Report, 20 December 2016, Vol. 618, c. 11MC.]

We are adopting the Sainsbury report, as has been suggested, and will put in place 15 high-quality technical routes to skilled employment. Those will be implemented by the Institute for Apprenticeships and Technical Education, which will oversee the employer-led reforms.

We are proud of the university technical colleges. There is clearly a debate here, as some Members want those for pupils at 14 and some for education at 16. That debate will no doubt continue, but we allow flexible entry to UTCs in certain circumstances.

My hon. Friend the Member for Macclesfield (David Rutley) asked about the role of business. We have created the Careers & Enterprise Company to boost businesses’ linking up with students in schools.

The hon. Member for Wolverhampton South West (Rob Marris) talked about representation. I am very keen for all kinds of organisations to be represented. I am a trade union member myself, and I am very proud that this Government give Unionlearn £12 million. It has an incredible fund that supports thousands of learners and apprentices. I very much hope that trade unions will be involved in the Institute for Apprenticeships and Technical Education. The institute will ensure that all technical provision, across both apprenticeships and college-based courses, matches the very best in the world.

[Rob Marris]

Will the Minister give way?

[Robert Halfon]

I am sorry, but we have very little time.

[Rob Marris]

On a point of order, Madam Deputy Speaker. The Order Paper I have says that this debate can continue until 10 pm. Am I misreading it?

[Madam Deputy Speaker (Mrs Eleanor Laing)]

No, indeed. The hon. Gentleman is technically absolutely correct that the debate can continue until 10 o’clock.