Adult and Further Education

Robert Halfon Excerpts

Wednesday 5th July 2023 Commons Chamber

[The Minister for Skills, Apprenticeships and Higher Education (Robert Halfon)]

I am pleased to respond to the debate. When my hon. Friend the Member for Worcester (Mr Walker), the former Schools Minister and now the Chair of the Education Committee, said that he had applied for the debate, I welcomed it because I wanted a good debate on further education. Despite the kind words of the right hon. Member for Hayes and Harlington (John McDonnell), I do not know if he is quite the secret weapon I would take with me when I have negotiations with the Treasury, but his point was well made.

I heard a lot of rhetoric from the shadow spokesperson, the hon. Member for Chesterfield (Mr Perkins). Warm words butter no parsnips. Last year, FE Week reported that:

“Labour cannot commit to boosting FE funding levels”.

The article went on to say that speaking to FE Week, the hon. Member for Houghton and Sunderland South (Bridget Phillipson)

“said the economic landscape had changed significantly and could not pledge any uplift in cash for further education or address the disparity between FE and higher education funding until the economic outlook was clearer.”

So despite what the hon. Member for Chesterfield says, the Opposition are not guaranteeing any uplift in further education funding.

I thank the hon. Member for Wirral West (Margaret Greenwood) for opening the debate. She is passionate about adult education; I am with her and I understand the absolute importance of community learning. I have seen that in my own constituency and I champion it in the Department. I will say more about adult and community learning later in my remarks, but looking at all the programmes together—the skills boot camps, the level 3 offer, Multiply and adult apprenticeships—we are spending well over £3 billion.

My hon. Friend the Member for Waveney (Peter Aldous) as well as the hon. Member for Wirral West raised the issue of community learning, which has actually increased over the past year. If we look at the key focus, we will see that, in the 2021-22 academic year, 304,000 learners participated in a community learning course, compared with 243,000 in the 2020-21 academic year. That is an increase of 24.9%. I have other figures that I could quote, but that does not mean that everything in the garden is rosy. We are doing a lot of work to try to support adult and tailored learning, which I will go on to discuss a bit later in my speech.

I am experiencing a bit of déjà vu here. This time last year, I believe that I was the Chair of the Education Committee leading the estimates debate, and my hon. Friend the Member for Worcester was answering it. What we say here is, I think, touché. What I would say to him is that, absolutely, he has made a valid case for funding for further education, as have many other Members. I will go on to talk about that a bit later in my remarks. I also think that it is important that we do not paint just a partial picture. We should look at the 10% uplift in T-level funding, the £300 million that we are spending on institutes of technology, the £115 million spending on higher technical qualifications, which are now being taught in more than 70 institutions, the £2.7 billion that we will be spending on apprenticeships by 2025, the up to £500 million that is being spent on Multiply, and the many millions of pounds being spent on boot camps. Billions and billions of pounds are being spent on skills, which is absolutely right. It is right, too, to make the case for ever more resources—I always champion more resources—but it is important to paint the whole picture, not just a partial one. There are many good things happening, and it is fair to acknowledge that.

The hon. Member for Twickenham (Munira Wilson) raised the issue of BTECs, as did my hon. Friend the Chair of the Select Committee. He was resolute on this, so I will be quite resolute in return. BTECs have already been delayed. They have already been reviewed, and are being reviewed. There will be a significant number of BTECs that remain. We have specifically introduced the T-level transition year, the whole purpose of which is to prepare those students for T-levels, because, as was rightly said by my hon. Friend the Member for Great Grimsby (Lia Nici), T-levels are harder. But there is now a T-level transition year, and more than 60 institutions are teaching it, and there will be another 70 along the way to prepare students.

Importantly, we are removing some BTECs and other qualifications that have low uptake or poor progression. The hon. Member for Twickenham mentioned the tourism qualification. I shall write to her with the details and the figures. I shall also come on to childcare in a bit because of the brilliant speech by my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom). As I was saying, though, we are removing T-levels that have low uptake or not great progression, or that significantly overlap with other T-levels. The whole purpose of this is that we have created employer-led qualifications through our apprenticeship reforms. The T-levels and the higher technical qualifications are all employer-designed with the Institute for Apprenticeships and Technical Education; I was proud to legislate for them in my last stint in this role. Employers will be able to develop new qualifications. For example, if they wanted to, they could develop a new tourism qualification.

There is another important issue, which has come up time and again. I have said that some BTECs will remain. I recognise that disadvantaged students are doing some of these BTECs, but we go down a very dangerous road if we say that we want to keep some qualifications because disadvantaged students do them, and the other ones, the middle class and everybody else can do. That is a dangerous road, because I do not want to have two-tier qualifications: some for the disadvantaged and others for the middle class and the well-off. What I want, and what I have devoted my whole parliamentary life to, is to develop state of the art, world-beating vocational and technical qualifications that are as good as, if not better than, A-levels. That is what is important. That is how I would respond, politely but robustly, to my hon. Friend the Chair of the Select Committee.

[Mrs Drummond]

That is a very interesting comment on the people who are doing BTECs at the moment. We were told by several people that T-levels had a very high entry requirement. Can my right hon. Friend confirm that that is no longer the case? The other point we heard in our inquiry was that 20% were dropping out of T-levels. What will they be doing if they are not able to carry on with T-levels?

[Robert Halfon]

First, as I say, a significant number of BTECs remain and will remain. There are new qualifications that can be developed so that those who do not pass will be able to do some other qualification at level 3, or they may want to do a level 2 or level 3 apprenticeship instead. There will be options for those people, but we could make the same arguments about those people who fail A-levels. We should not just have one rule for T-levels and another rule for those doing A-levels.

I will come on to funding, because every hon. Member has raised that. The hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss) talked about it, and I am pleased that she has had more £7 million invested in Sheffield City College. My right hon. Friend the Member for Aldridge-Brownhills (Wendy Morton) was thoughtful as always; we have talked a lot about skills over the years and I reiterate that we are championing quality qualifications, which will address the skills deficits, and introducing lifelong learning through the lifelong loan entitlement.

The hon. Member for Stretford and Urmston (Andrew Western) again talked about funding; I will come on to that, and I am happy to write to him about the specific issue that he raised regarding Trafford College. I was pleased to meet my hon. and learned Friend the Member for Eddisbury (Edward Timpson) and the principal of Reaseheath College. Land colleges have been beneficiaries of important capital funding and I know the college has received more than £6.5 million. I said in that meeting that I would work with my hon. and learned Friend on the issues he has raised and I will continue to do so as much as I possibly can.

The hon. Member for Twickenham talked about the skills wallet, and we do have a difference here. I have sympathy with many of the things she says and I genuinely admire her for her knowledge of education and skills, but we looked at the skills wallet and, as I understand it, it gives every adult £10,000 to spend on training, but with incremental payments, starting with £4,000 at age 25, £3,000 at age 40 and the final £3,000 at age 55. That would mean that learners would be constrained by when the funding became available. We want to be fair to students and fair to the taxpayer. Our lifelong loan entitlement will be transformative, because everyone will have access to up to £37,000 that they can take any time up to the age of 60. There are 12 entry points and they can do short courses or modules of courses.

I have nothing but incredible admiration for the way my right hon. Friend the Member for South Northamptonshire champions early years. I have good news for her, because when I found out she was on the list to speak in this debate, I wanted to be sure about what we were doing on early years skills—as my Department officials, who are watching, will know.

To let my right hon. Friend know what is going on, there is a lot. The first-ever national professional qualification in early years leadership cohort began in October 2022 and the second cohort commenced in February 2023. The employer trailblazer groups have developed level 2 and level 3 apprenticeships, but we now have a level 5 apprenticeship and we fund more than 20 childcare courses through our free courses for jobs offer. Some 2,000 learners started T-levels in education and childcare in September 2022, and there is a load of early years higher technical qualifications. There is masses going on, so we will have the trained workforce that she passionately and rightly talks about, right across that sector.

My right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett) has great experience and wisdom. He too talked about funding, and he will know that his college—I think it is the London South East Colleges group—has had £24.5 million since 2020. I think the shadow Minister has also had £18 million in capital funding for Chesterfield College in his constituency; again, that is a brilliant investment by the Government that no doubt he will be celebrating to the rafters.

I have mentioned the right hon. Member for Hayes and Harlington. I appreciated the way in which he said what he did. We have spending constraints, but I will talk more about those in a moment. My hon. Friend the Member for Waveney spoke powerfully about the skills revolution in his area.

My hon. Friend the Member for Great Grimsby made a brilliant speech. There was a lot that I agreed with. On the maths to 18 issue, I was one of those people who had a fear of maths. I passed my maths O-level, but it took me three months and a second time around—I was slightly dyspraxic; it was a nightmare. It is wrong that I was told that I would never have to do it again. We should have practical numeracy—basic numeracy, times tables and so on—and what I call numerical literacy, so that people can read bills and understand budgets. That would help those who have difficulties. Of course, any maths teaching should promote careers in mathematics. I think that the Prime Minister is right: we must have maths to 18 along the principles that he set out in his speech. I absolutely believe in that. The experience of my hon. Friend the Member for Great Grimsby was clear to see.

This is an estimates day debate, so we have to talk about facts and figures. The DFE’s resource budget is about £86 billion—an uplift of more than £2 billion since the spending review—and £9 billion is directly linked to apprenticeships and further education. Apprenticeships are a key rung on what I call—colleagues have nicely quoted it back at me—“the ladder of opportunity”. We redesigned the programme in partnership with industry. There are now accredited routes to more than 670 occupations, from entry level to expert. Government funding for apprenticeships will reach £2.7 billion by 2024-25, as I have mentioned, and that money is reaching the economy.

The hon. Member for Twickenham mentioned the apprenticeship budget. We spent 99% of the apprenticeship budget, and let us not forget that we send hundreds of millions to the devolved authority, so the levy is being used. I can give her a raft of quotes from businesses that are supportive of the levy. The Opposition quote one or two businesses here and there that perhaps want it to be a skills levy, but—I have to disagree with the hon. Lady and the shadow Minister—a skills levy would mean no apprentices or a diluted number of apprentices. We are spending billions of pounds on skills. I have already given the figures on that.

As the Chair of the Education Committee, my hon. Friend the Member for Worcester, mentioned, the Association of Colleges has called for 50% of the apprenticeship levy to be spent on apprentices at levels 2 and 3, who are below the age of 25. Under-25s made up 50% of starts in 2021-22; 70% of starts were at levels 2 and 3, providing an entry-level springboard into work. Contrary to the bad news set out by the shadow spokesman, we have had a 22% increase in apprenticeship achievements in the academic year—that is what counts: achievements. The 90% who achieve get good jobs when they finish their apprenticeship. There were 8.6% more starts in 2021-22 than in 2021. We are pushing and encouraging more degree apprenticeships. They are a brilliant route up the ladder. We are now putting in £40 million over the next couple of years—it was £8 million previously—to encourage providers to take up more students for degree apprenticeships.

My goodness, what a brilliant visit we had to the college in the constituency of my hon. Friend the Member for Loughborough (Jane Hunt). Anyone who wants an example of T-level success should go to Loughborough College, where state-of-the-art T-levels are being taught brilliantly—including healthcare T-levels, creating a pipeline for future NHS workers—and an institute of technology is being built. It was an honour to lay the groundwork. As I mentioned, we are spending £300 million on 21 institutes of technology around the country, of which there are already 12. They are the Rolls-Royce of further education in collaboration with higher education and big and small businesses, and an example of the Government’s commitment to skills and of the investment in the skills that we need for the future. Sadly, I understand that the principal is leaving Loughborough College, but I am sure that the college will find a principal who is just as brilliant as her to take over.

I mentioned the higher technical qualifications and new and existing levels 4 and 5. We have the T-levels. Yes, there are delays in some of them, but we want to get them right. We have 164 providers across the country, and 10,000 students started T-levels in 2022—that is more than double the 2021 figure. We will roll out T-levels in 2024-25 so that more young people can benefit from those high-quality qualifications. More than 92% of students achieved a pass.

[Mr Perkins]

rose—

[Robert Halfon]

I want to come on to FE funding, but I cannot not let the hon. Gentleman in.

[Mr Perkins]

I am grateful. There is much I would like to come back to the Minister on, but I want to ask specifically about T-levels. He mentioned that 10,000 people are starting them, and many of the T-level students I have met have very much enjoyed their courses. However, at the moment, 230,000 students do applied general qualifications whereas 10,000 are doing T-levels. In two years’ time, the vast majority of those 230,000 students will not have that course to study. Does he not hear why the call for a moratorium, for him just to take his time, is so powerful and why that view is so widely held?

[Robert Halfon]

I absolutely understand the reason why. There will, of course, be some worry when we change to a new system, but we have already delayed the onset under the previous Secretary of State for Education. We want to encourage people to do T-levels. They are world-beating qualifications, and those students will also be offered the chance to do a T-level transition year. As I said, new qualifications can be developed.

I want to talk about funding, because it has been raised significantly. We are allocating £3.8 billion more to further education and skills over the Parliament. We announced the final stage of the FE capital transformation programme, worth £1.5 billion. We are investing up to £584 million in skills boot camps. There is an extra £1.6 billion in 16-to-19 education. Many Members have raised the issue of VAT for colleges, and of course, that needs to be considered in the context of wider public finances. As hon. Members know, those things are decided by the Treasury. The Financial Secretary to the Treasury recently responded on this issue in a Westminster Hall debate, but the views of Members across the House will have been heard by the Treasury today.

We are offering tax-free teacher training bursaries of up to £29,000 in priority subjects to encourage more people to come into FE. There are other funds, including a Taking Teaching Further incentive payment of £6,000 for those coming from industry into FE. We are doing a lot to try to encourage more teachers, and we have spent a fair bit of money on advertising to try to encourage more FE teachers, even with the financial constraints that we have.

[John McDonnell]

rose—

[Robert Halfon]

The hon. Member for Wirral West spoke passionately about adult education, and I want to let her know about the five pillars that I have for adult education: community learning; careers support; learning for jobs; the lifelong loan entitlement, lifelong learning; and empowering local decision making. I will briefly explain what I mean by them, but first I will answer the question from the right hon. Gentleman.

[John McDonnell]

Before the Minister moves on from FE, it is worth acknowledging that only a few weeks ago, the University and College Union decided that it will ballot its members in September, with the potential result being industrial action in October if there is not some realistic offer with regard to pay and working conditions. Is the Minister addressing that at the moment?

[Robert Halfon]

The right hon. Gentleman will know that FE colleges are autonomous on these matters, so they have to make their decisions with the UCU. However, I certainly urge members not to strike, because it causes significant damage to students and learners, many of whom have suffered enormously during covid because of the lockdown.

Let me go through the five pillars that I mentioned to the hon. Member for Wirral West. Community learning refers to the education that we provide for adults in the community. It forms part of the overall adult education budget of £1.34 billion a year. We will continue to use the skills fund provision to support learners furthest from the workplace who may need a stepping stone towards formal learning. The provision is not qualification-based and is part of what we call tailored learning. She will know that there are a significant number of courses that people can do, if they do not have those qualifications or have not done those courses already, that are completely free. That supports adults to access further learning and employment, and their wellbeing. I accept the hon. Lady’s argument that adult community learning is vital for wellbeing.

Careers support is another issue that was raised by the Select Committee Chair, my hon. Friend the Member for Worcester. I am considering the Committee’s report carefully. We are investing over £87 million in high-quality careers advice, both for adults and for young people. We have careers hubs in over 90% of secondary schools; we have the new Baker clause, which means that schools have to have encounters with apprentice organisations or technical colleges as well; and we have the National Careers Service providing advice to adults. The Apprenticeship Support and Knowledge network is also going around schools and colleges, promoting careers.

Learning for jobs is the third pillar—all of the pillars are linked. I have talked about the Multiply programme, the free courses for jobs—there are over 400 courses—and skills boot camps, in everything from engineering to heavy goods vehicles and the green economy. We also have the local skills improvement plans, which ensure that communities can advise on what skills they need in their local areas, and when we have skills deficits, we have the Unit for Future Skills to look at the national situation. We have the lifelong loan entitlement, which I have spoken about briefly. That entitlement will be very powerful and absolutely transformative, because it will allow people to have the end destination of a qualification, but to get on and off at various stations along the way by doing short courses and modules of courses.

The final pillar of adult education is empowering local decision makers: Mayors, learners and employees. As the hon. Member for Wirral West pointed out, we have devolved 60% of the adult education budget to 10 areas of the country, amounting to almost £800 million going to the mayoral authorities, but empowerment is not just about devolution to local government. The lifelong loan entitlement will devolve power to individuals, and apprenticeships devolve power to employers, allowing them to develop the skilled workforce that their businesses need. We plan to publish the mandatory FE workforce census findings later this year as experimental statistics, which will include findings on workforce sector pay—I think it was the hon. Member for Wirral West who raised that issue.

To conclude, we are investing in FE and skills in difficult circumstances. I absolutely recognise the pressure on resources, and will do everything I can to champion resources with the Treasury and elsewhere. I welcome the thoughtful cross-party debate that we have had right across the House of Commons. I have a picture of John Kennedy in my office at the Department for Education, because I am a big fan. He said that “We choose to go to the moon, not because it is easy, but because it is hard.” Like JFK, this Government are unwilling to postpone our FE and skills reforms because they are difficult. In testing times, we know how much the benefits that they will bring to our nation’s economy and prosperity are needed. We are determined to build an apprenticeship and skills nation.