Department for Education

Debate between Robert Halfon and John Redwood

Tuesday 3rd July 2018 Commons Chamber

[Robert Halfon (Harlow) (Con)]

It is a pleasure to open this debate on the spending of the Department for Education in my capacity as Chair of the Select Committee on Education. I thank the Backbench Business Committee for allowing the debate and particularly my colleagues on the Committee who are here in the Chamber for all the work they do alongside the Committee officials.

If we regard the NHS as the guardian of our health, we should regard education as the guardian of our future. Almost every citizen is affected by education. I welcome the positive announcements made by the Department recently, and there certainly seems to be no lack of initiatives from within the Sanctuary Buildings. However, I have some concerns that, across the Department’s remit, funding might be too atomised to be coherent and effective. There is an initiative here and an initiative there.

I am concerned that the Department’s estimate is not strategic enough to deliver the outcomes we need. Let me take, for example, the recent announcement on grammar schools. I am not against grammar schools—I believe in parental choice—but I am not sure why spending up to £200 million over the next two years on expanding grammar schools is more important than spending £200 million on looking after the most vulnerable pupils. We could look after hundreds of thousands of vulnerable pupils with tuition for 12 weeks a year and transform their life opportunities.

[John Redwood (Wokingham) (Con)]

Surely we have to do both. Expanding grammar schools provides opportunities, and this expansion will particularly target those from disadvantaged backgrounds, which is a great idea in support of it, but we also need to do what my right hon. Friend says for other children. I hope that he, like me, would welcome more rapid progress on better and fairer funding for all our schools, because it is still very low in areas such as mine.

[Robert Halfon]

As I said, I am not against grammar schools, but the problem is whether they are providing opportunities for the most disadvantaged pupils. Only 3% of pupils in grammar schools get free school meals, and I would rather the Government increase that proportion of pupils before giving grammar schools extra funding. That extra £200 million of funding will benefit only a few thousand pupils, but I have shown how it could benefit a lot more. I have huge respect for my right hon. Friend. He often campaigns for more funding in his constituency, but it is because such funding has been spent in this way that schools in his area and others do not get as much money as they need.

Draft Industrial Training Levy (Engineering Construction Industry Training Board) Order 2017

Debate between Robert Halfon and John Redwood

Tuesday 21st March 2017 General Committees

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

I beg to move,

That the Committee has considered the draft Industrial Training Levy (Engineering Construction Industry Training Board) Order 2017.

It is an honour to serve under your chairmanship, Sir Alan. The order enables the Engineering Construction Industry Training Board, the ECITB, to raise and collect a levy on employers in the engineering construction industry. We must equip people for the future, and there are acute shortages of technical skills: engineering and technology alone face an annual shortfall of 69,000 level 3 and 4 technicians. Established by the Industrial Training Act 1982, the core activity of the ECITB is to invest money it receives by way of the levy in skills training for the engineering construction workforce. The ECITB develops the skills of the existing workforce and new entrants to the industry by providing training grants and putting in place strategic initiatives that will benefit the industry in the long term and secure a sustainable pipeline of skills.

The technical education reforms are crucial to ensure that we enable people from every background to climb the ladder of opportunity. The first rung of the ladder is enhancing the prestige of the technical and professional education system. The ladder of opportunity’s social justice rung will give all those from disadvantaged backgrounds the opportunity to progress to skilled employment. All of that will combine to ensure greater job security and prosperity. The ECITB is well positioned to support and embed the technical education reforms in the engineering construction industry. We must ensure that the skills exist in the engineering construction workforce to deliver critical new infrastructure projects such as Hinkley Point C in Somerset, which I visited during national apprenticeship week.

Engineering construction is characterised by significant levels of project working, where demand can be unpredictable. Workers in the sector are often highly skilled and in high demand, both domestically and internationally. The ECITB works to retain those vital skills within the UK economy. The reforms to technical education will address the nation’s skills needs and ensure that people, whatever their background, have the skills they need to secure high-quality, fulfilling jobs that are fit for the future. The ECITB’s support of further education qualifications increases employment chances and wages and improves social capital.

The ECITB is led by industry and has a central role in training the workforce in the engineering construction industry. It provides a range of services, including setting occupational standards, developing vocational qualifications and offering direct grants to employers that carry out training.

[John Redwood (Wokingham) (Con)]

I hope that the Minister will explain whether there is an overlap with the apprenticeship levy and how this long-standing industry initiative relates to the Government measures. I am all in favour of more training, but I want to know how it fits together with the public sector.

[Robert Halfon]

I am delighted to explain that. The apprenticeship levy is very different from the ECITB levy, which is used for a range of things—for example, it supports national colleges such as the National College for Nuclear, and it has special scholarship schemes and graduate trainee schemes. The other important thing to note is that 65%-plus of the ECITB’s members, who are levy payers, voted to have this levy. It is up to them to choose the levy. I will come on to that in more detail.

The ECITB also has a role in encouraging greater diversity and equality of opportunity across the engineering construction industry. Only 7% of the current engineering construction workforce are women, so I strongly congratulate the ECITB on its extensive careers programmes in schools, promoting female engineering role models. Also, 10.8% of apprentices in construction have a learning difficulty or disability. That is an excellent place to build from, and I know that the ECITB is investing in programmes to provide further support. The Department for Education is also investing £20 million in business mentors, to help disadvantaged and vulnerable young people to get the right information about skills and training and a fulfilling role that is right for them.

Industry support is fundamental to the success of the ECITB. The vast majority of employers in the engineering construction industry continue to support a statutory framework for the ECITB levy, and the order will enable those statutory levy arrangements to continue. The Industrial Training Act allows an industrial training board to submit a proposal to the Secretary of State for the raising and collection of a levy on employers to ensure the effective provision of skills in the industries it serves. The order will give effect to a proposal submitted to us for a levy to be raised by the ECITB for the levy periods ending 31 December 2017, 31 December 2018 and 31 December 2019.

People may ask, as my right hon. Friend the Member for Wokingham did, for more detail on how the order interacts with the apprenticeship levy. Given the introduction of the apprenticeship levy, the ECITB has reviewed its levy arrangements and made the decision to reduce its rates. The levy rate attributed to site employees will be reduced to 1.2% of total emoluments—by emoluments, I mean all salaries, fees and wages and anything else that constitutes earnings of an employee—plus net expenditure on subcontract labour; that is down from 1.5% of total emoluments in the 2015 order. The rate in respect of off-site employees, often referred to as head office employees, will be reduced to 0.14% of total emoluments plus net expenditure on subcontract labour, down from 0.18% of total emoluments in the 2015 order.

The proposal involves the imposition of a levy in excess of 1% of payroll on some classes of employer. In accordance with the provisions set out in the Industrial Training Act, we are satisfied that the level of the levy is necessary to encourage training in the industry. In line with the requirements of the Industrial Training Act and the detail of the ECITB’s proposal, the ECITB has taken reasonable steps to ascertain the views of the majority of employers that together are likely to pay the majority of the levy. The Secretary of State is satisfied that that condition has been met through an industry consultation. The ECITB’s proposal for the levy obtained the support of the majority of employers in their respective industries. The three major employer federations in the industry—the Engineering Construction Industry Association, the Offshore Contractors Association and the British Chemical Engineering Contractors Association—supported the levy. All 84 levy-paying members of the employer associations were deemed to be supportive. Of the 149 employers not represented by those federations, 41 did not respond and only 10 declined to provide their support. On that basis, 78% of levy-paying employers were supportive of the ECITB’s proposal, and such employers are likely to pay 87% of the value of the levy.

The Industrial Training Act also requires that the ECITB includes within its proposal how it will exempt small employers from the levy. The order therefore provides that small firms are exempt from the levy if their total emoluments are below a threshold that the industry considers to be appropriate. If the total gross emoluments and total gross payments are less than £275,000, no training levy will be payable in respect of site-based workers. If the total gross emoluments and total gross payments are less than £1 million, no training levy will be payable in respect of off-site-based workers. Employers that are exempt from paying the levy can and do still benefit from grants and other support from the board. Of all the establishments considered to be leviable by the ECITB, it is expected that around 32% will be exempt from paying the levy.

The order is expected to raise £78 million for the ECITB in levy income over three years and will enable the ECITB to continue to carry out its vital training responsibilities alongside the apprenticeship levy. I commend the order to the Committee.

--- Later in debate ---

[Robert Halfon]

I welcome the thoughtful response from both Opposition spokesmen. The hon. Member for Blackpool South stressed that training is not just about apprenticeships and mentioned the Institute for Apprenticeships. He is absolutely right, and I hope that—it is subject to the will of the Lords—the institute will become the Institute for Apprenticeships and Technical Education. The reforms to apprenticeships go alongside the Sainsbury reforms, the extra money announced in the Budget and much more beside. I was careful to say that the levy is not a stand-alone agenda, but part of our efforts to have widespread quality provision, helping those who are socially disadvantaged and making sure that we meet our skills needs.

The hon. Gentleman asked about the CITB. The ECITB has 330 members, whereas the CITB has thousands. The ECITB wanted to get its levy arrangements made, but I believe the CITB intends to wait until after the review is announced; then the usual procedures regarding its members will be gone through. I am reminded that the CITB will consider industry views on future levy arrangements in its field in October.

I welcome the strong support given the ECITB by the Scottish Government. I know they collaborate closely in the work the ECITB does in Scotland. The hon. Member for Glasgow South West will know that the instrument applies in England, Wales and Scotland—its remit covers the three nations. Some 40% of ECITB levy employers are based in Scotland, working primarily in the offshore gas and oil sector. Skills policy is devolved to the Scottish Government, so the ECITB needs to be responsive to both English and Scottish Government skills policy. Both the Scottish Government and the Welsh Assembly have confirmed their support for the order.

[John Redwood]

The ECITB levy will raise less after 2018 than it does now. Is the amount of the reduction to take into account the apprenticeship element, which is now supplanted?