(8 months, 4 weeks ago)
Ministerial Corrections…The Minister talks powerfully about apprenticeships, but why does he think that young people are now half as likely to be on an SME apprenticeship than they were when the levy was introduced?
I hugely respect the hon. Gentleman. I know he is a bruiser, but I had been looking forward to his question. I thought he would celebrate the 13,000 apprentices in Chesterfield since May 2010, the 11,270 apprentices at levels 2 and 3, or the £19.5 million investment in Chesterfield College.
[Official Report, 11 March 2024, Vol. 747, c. 10.]
Letter of correction from the Minister for Skills, Apprenticeships and Higher Education, the right hon. Member for Harlow (Robert Halfon):
An error has been identified in the response given to the hon. Member for Chesterfield (Mr Perkins).
The correct response is:
(9 months, 1 week ago)
Commons ChamberSixty-five per cent of all apprenticeship starts so far this year have been at levels 2 and 3, with level 3 remaining the most popular level, accounting for 43% of all starts. Over 360 apprenticeship standards are at levels 2 and 3, covering more than half of all apprenticeships.
I can understand why the Minister does not refer to the trends, because he knows that level 2 apprenticeships are way down. The Government’s reforms have seen level 2 apprenticeship starts fall by two thirds since 2012-13, and the number of people employed on an apprenticeship with a small and medium-sized enterprise has fallen by 49% since the levy’s introduction. The Minister talks powerfully about apprenticeships, but why does he think that young people are now half as likely to be on an SME apprenticeship than they were when the levy was introduced?
I hugely respect the hon. Gentleman. I know he is a bruiser, but I had been looking forward to his question. I thought he would celebrate the 13,000 apprentices in Chesterfield since May 2010, the 11,270 apprentices at levels 2 and 3, or the £19.5 million investment in Chesterfield College. If I were him, I would be urging his party to stop its plan to destroy the apprenticeship levy, which would halve the number of apprenticeship starts overall. It would be back to square one.
(1 year, 5 months ago)
Ministerial CorrectionsHe talked about the budget, but he will know that 99.6% of the apprenticeship budget, which is set by the Treasury, was spent in the 2021-22 financial year.
Skills and Apprenticeships: Funding
The following are extracts from Education questions on 17 July 2023.
New research from the House of Commons Library has shown that the amount of the apprenticeship levy paid by employers that has been allocated to the apprenticeship budget has fallen from 89% in 2017 to just 77% in the most recent year. The truthful answer to the question from the hon. Member for Stroud (Siobhan Baillie) is that the Secretary of State is doing nothing to reform the apprenticeship levy, as she believes it is working perfectly. Can the Minister confirm that any employer that, like the hon. Member for Stroud, wants greater flexibility in the levy should vote Labour in the next general election?
(1 year, 5 months ago)
Commons ChamberFirst, 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.
I want to come on to FE funding, but I cannot not let the hon. Gentleman in.
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?
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.
(1 year, 9 months ago)
Public Bill CommitteesI do not intend to dwell on these two amendments; my hon. Friend the Member for Warwick and Leamington has forcefully set out their purpose. Regarding the consultation, given what we heard in the evidence session, it is important that the sector is engaged. There is a real concern that until there is clarity about a new method of funding further education and skills, which we know will be more expensive for providers to provide, although—quite rightly—it will not be any more expensive for learners to learn, there will be a gap there. So, unless someone steps forward, there is a real danger that an excellent opportunity will be created for learners that they will not actually be able to access in their local area.
On the subject of the definition of a credit, it is important to remind the Committee what we heard in the evidence session. My hon. Friend asked:
“Should the Bill have written into it some sort of definition of what a credit is?”
Ellen Thinnesen from Sunderland College responded:
“My personal and professional opinion is that it should. If we are defining fee limits attached to credits, it is really important to communicate to a student what a credit means. Essentially, a student wants to know a number of things. First, how much is this going to cost me? Secondly, what will I have to expend in effort and energy to complete this module? Thirdly, what will I get for that module and those credits from the institution that I am choosing to go to? So transparency about the relationship of credit to fees, and of credit to module content and what is expected within that, is very important.”––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 21 March 2023; c. 12.]
It was crucial and right that she said that, with her understanding of what motivates learners. It is also important, of course, that future employers understand what those credits mean; other witnesses referred to receiving a handful of certificates, but said that there was no clarity about what those certificates meant.
Alun Francis from Oldham College responded to a question from the hon. Member for Bassetlaw by saying:
“The more important questions will be about the standardisation of the credits…so that learners know what they are getting and paying for. That needs to be absolutely transparent.
It is also important to say that in these technical areas there is a big difference between what learners pay for here and in a traditional degree, because some degrees are positional goods—they are paying for the credential as much as the content—but in these qualifications they are paying for the content. Learners therefore need to be clear that what they are getting is what it says on the tin. The other aspects, I think, we will just get used to.”––[Official Report, Lifelong Learning (Higher Education Fee Limits) Public Bill Committee, 21 March 2023; c. 13.]
Those are very powerful voices from the sector speaking in support of my hon. Friend’s amendment and if the Minister is not minded to support it, we will need real clarity for the sector as to how the definition of a credit will be assured if it is not in the Bill.
I thank the shadow spokesman, the hon. Member for Warwick and Leamington, for tabling his amendment and for his comments on it. He talked about the timing of the consultation and he said that it came out quite late. It came out quite late because we wanted to make sure that we got it right: we were having extensive consultation with the sector and with other stakeholders, as he rightly wants, and we wanted to make sure that we responded carefully. I do not know if he has seen the recent tweet by the vice-chancellor of the Open University, who said that he welcomed the engagement with the Government. There has been an LLE roundtable with previous Ministers and officials. I attended one such meeting only a few days ago on the LLE.
I thank the hon. Gentleman for moving the amendments. Let me respond first to how they are worded before I address the specific issue of the 30 credits. Amendments 2 and 6 have been worded to limit the default credit value to 10 and 20 credits respectively. I completely get that the intention is to probe the extent to which the Government are prepared to loan-fund modules of fewer than 30 credits under the LLE, but the amendments would not achieve that end because that is not what the default credit values in the Bill relate to.
It is worth clarifying the purpose of the default credit value: it is intended to allow fee limits to be set on full courses if they are not credit-bearing or the course is more suited to annual fee limits than credit-based fee limits. As mentioned, such courses may include some degree programmes at Oxford and Cambridge, and other courses such as nursing. For those types of courses, the fee limit will be calculated using a default number of credits instead of any provider-assigned credits. The default values will be set at 120 credits a year for full-time courses, which aligns with the sector-recognised standard number of credits in a full year.
The default credit values are there to provide a credit value for non-credit-bearing full courses only. They will not apply to modules. As all modules under the LLE will be credit bearing, modules will always have the fee limit calculated using the actual provider-assigned number of credits, not a default number of credits.
The Government have been clear that the modules must have a minimum size of 30 credits for funding purposes. We believe this is a suitable level to attract fees and maintenance loans as it represents a substantial-enough package of learning. It is based on significant consultation with stakeholders and is much smaller and more flexible for training, retraining and upskilling opportunities than the current one-academic-year minimum-size offer.
As mentioned, modules of a smaller size can also be funded—provided that they are bundled together in a single entry from a parent course to meet the 30 credits—to allow sufficient flexibility for retraining purposes. This will mean that funding will be available for a 20-credit module and a 10-credit module of the same course combined.
The hon. Gentleman cited the Augar report. Philip Augar is the key architect of this reform, alongside the former shadow spokesman for skills and universities, Gordon Marsden, who often spoke about lifelong learning. The Augar report is clear that a 30-hour credit represents a
“a significant amount of teaching and learning, and is an appropriate minimum for upskilling or reskilling.”
Will the Minister clarify for the Committee and for others listening to our proceedings how much loan a student who took on 30 credits would need?
Under the current loan system, the loan would be divided up in proportion to the 30 credits that the student was taking. It would depend on whether the credit is charged at £77 or £60, which would depend on whether the provider had a teaching excellence framework or an access and participation plan. If the credit was charged at £77, it would be £77 times the 30 credits. It would then be up to the student to decide whether they wanted to do the course.
To return to amendment 2, to cap all default values at 10 credits would make them unfit for purpose, as a full-time year is 120 credits. With that in mind, the Government cannot support the amendment.
(1 year, 9 months ago)
Public Bill CommitteesIt is an honour to serve under you, Mrs Cummins. I am supportive of the sentiment behind these amendments and recognise the importance of considering the impacts on providers. The Government have been fully mindful of the financial sustainability of providers during the development of the LLE, particularly of FE colleges. The Government are also mindful of the additional costs that providers may incur when offering shorter modular provision at large scale.
We engaged with a wide range of stakeholders to gather input, to inform policy development and to build awareness of the LLE. We are grateful to the stakeholders that have engaged with the Department on the LLE and, of course, we will continue to work closely with the sector on its design and delivery. It is important to note that the LLE and its ambitions have been strongly welcomed by the sector for the most part. Stakeholders responded positively to the flexibility and the keenness of a simpler finance system.
The Committee will be aware that the Government published an impact assessment for the Bill, which included a consideration of impact on the providers. The hon. Member for Warwick and Leamington and the hon. Member for Chesterfield both asked how the cost was constructed. The basis of the calculation is set out on pages 36 and 37 of the impact assessment. That sets out the estimates of the potential implementation costs to providers, which is separate to the wider assessment of the benefits of the LLE.
The hon. Member for Warwick and Leamington also mentioned FE reclassification. He will know that the decision was taken by the Office for National Statistics, but we are supporting colleges with a package that includes an additional allocation of £150 million over the 2023-24 period, and we have invested £300 million in the reprofiling of payments before the end of the financial year, to eliminate the current deficit.
How does that capital allocation compare with the number of colleges that had, were in the process of negotiating, or have received offers for, private sector loans in advance of becoming public sector institutions? Will the amount of money allocated enable all those arrangements to go forward? Or is it likely that some will no longer go forward?
As well as the figures I mentioned, the DFE is working closely with colleges to try to deal with the difficulties that have come about because of the reclassification of FE colleges. I hope to be able to set out more on that in the weeks ahead.
Is the Minister saying that he is cognisant of the concerns, but that no additional money has been allocated in the recent Budget for the additional costs that providers have told us will be attached to this style of learning?
These things will be decided in future spending statements, and I have highlighted the extra money going into further education over the Parliament and over the coming Budget period.
The pilot scheme was mentioned briefly. I strongly recommend an article about the pilot scheme—the hon. Member for Warwick and Leamington has probably read it—by a witness to our Committee, the vice-chancellor of Nottingham Trent University, who says that the whole purpose of the scheme was to show the system working. It was not about quantity, even though there are 100 available courses. He writes that
“the effective administration of those received shows that SLC systems and processes are ready to support modular study.”
In the rest of the article, which I will not detain the Committee by quoting at length, he mentions all the other courses and pilots on modular learning that there have been, stating:
“The In-Work Skills pilot was also a pathway policy for the LLE. Delivered by Institutes of Technology (IoTs)…10 IoTs delivered the In-Work Skills pilot, which was a 1-year pilot that delivered high quality, higher technical short courses…The IoTs delivered a total of 59 short courses to 3,060 learners”.
He also cites other figures to show the extent of the move towards flexible and modular learning.
Importantly, as the hon. Member for Warwick and Leamington will know, the strategic priorities grant provides Government funding on an annual basis to support higher education providers’ ongoing teaching, and of course funding levels will be considered in the round at the next spending review, with the LLE in mind. Therefore, as the Government have been mindful of these concerns throughout the development of the LLE, and are confident that providers will be able to consider their own financial sustainability and costs when deciding which courses and modules to offer, we will not support the amendment.
(1 year, 9 months ago)
Public Bill CommitteesQ
Julie Charge: It is the connectivity. Students will be familiar with modules as part of something that, when they are applying, they see described to them in a range of different ways. There is therefore some work that we as a university would need to do to make it easy for them to understand the relationship between the module of the course that they want to participate in and the credits.
I think there is another aspect here, which is that, again, as a university, we link hours to credits. If we can link all those things in a way that gives much more clarity for a student, by saying, “This is the undertaking in hours, which equates to number of credits, which is therefore part of a module, and the module then builds up your course,” that clarity will help with that sort of common understanding.
Q
Julie Charge: Probably a combination of both. We did the pilot on short courses. It was a very small sample size in terms of the take-up, but 40% of the applicants and those who went on to do the short course were in the 26 to 30 age group—and it was a combination of retraining after some initial work or an initial degree, and some initial training. Then we saw a different group: the other big group, who were retraining and upskilling, was aged 36 to 40. Of that group, some were continuing their studies, but the majority were external and returning to do that training. I cannot comment on whether there was unemployment, but there were certainly two big groups, in terms of age profile, that were returning to do the pilot course with us.
(1 year, 9 months ago)
Public Bill CommitteesQ
Professor Rigby: Probably, in this Bill, the solution resides in that course year. If one could identify a course year with a loose allocation of credit—let’s say, plus or minus 20 or 25—that would not break the intent of the lifelong loan entitlement being a 30-credit minimum, but it allows 18-year-olds to fall over once or twice during a year and to be picked up in-year, rather than getting another £3,000 taken off their lifelong loan entitlement.
Q
Dr Norton: Coventry has multiple start dates throughout the year already—we have six, I believe—so the volume of applications may increase throughout the year, which would cause some capacity issues, but overall I think it is a positive.
Professor Rigby: Most universities currently have multiple start dates, even the research-intensive ones, mainly because a lot of international students start their master’s courses in January. In the Bill as written, this is a technical realignment, which means that instead of someone starting partway through a year and their fees running through four years if they are on a three-year course, their fees will run over three years but in practice they will start and end in the same month. It is a technical change.
Throughout the Bill, I have identified a multitude of technical changes that will affect the provision of probably a couple of million existing students in order that, in ’27-28, we will start to see the roll-out of the LLE. Intuitively, I wonder why form does not follow function, in that we should design the LLE and then make sure that the funding system will permit it, rather than changing the funding system ahead and precluding some of the design opportunities that would otherwise reside in the LLE.
(1 year, 11 months ago)
Commons ChamberThe Minister was a huge champion for the FE sector when he was Chair of the Education Committee, so it is depressing to hear him now speaking up for the Government. Their funding settlements for FE colleges are the worst in post-war history—and that is not just my view but that of the independent Institute for Fiscal Studies, whose analysis exposes that per-student funding fell 14% in real terms between 2010 and 2019. Is not the reality that, after 13 years of this Government, only the election of a Labour Government will allow our colleges to play the role that we truly need from them?
That is wishful thinking on the part of the hon. Gentleman. The Government are increasing investment in apprenticeships to £2.7 billion by 2024-25. We will be investing an extra £1.6 billion in 16-to-19 education over the same period of time. That includes £500 million a year for T-levels. I mentioned the £290 million being spent on institutes of technology and we have committed £1.5 billion to an upgrade of the FE college estate in England over the next few years. The Government are investing in, and championing, further education and skills. The hon. Gentleman should recognise that.
(2 years, 8 months ago)
Commons ChamberLast week’s spring statement showed that this Government have a Chancellor ill-equipped to tackle the size of the cost of living challenge in front of him. This week, the Skills and Post-16 Education Bill shows that, when it comes to addressing the key skills challenges our growth-starved nation faces, we have a Government ill-equipped for that challenge too.
We should remember that in the Chancellor’s statement last week he referred to reviewing the apprenticeship levy and other taxes, and by Friday he was forced to deny that there would be any formal review of the levy or the system at all. What a mess. This is a Government who spend the back-end of the week denying what they said in the first part of it. No wonder the sector is utterly disillusioned with their approach.
Let us stop for a minute and think how it could have been. A skills Bill worthy of the name would have seized the challenge posed by the huge reduction in apprenticeships since the introduction of the levy and demanded a review that ensured that small businesses were better served and that more level 2 and level 3 apprenticeship opportunities were created, and sought to return at least to the numbers we had before the levy was introduced.
A transformative skills Bill would also have ensured that all the relevant bodies were around the table directing local skills funding. It would also have recognised that, if universal credit is really going to be a bridge from the dole to a rewarding career, people on universal credit must be able to afford to invest in themselves in the way that the excellent Lords amendment suggested.
One can only imagine what their noble Lordships made of the Commons consideration of their amendments. A range of peers from across the political spectrum had brought their considerable knowledge and experience to bear to strengthen this “act of educational vandalism”, as Lord Baker described it, and voted through a series of amendments that a wide variety of knowledgeable judges, including groups such as the Association of Colleges, had described as strengthening the Bill.
Yet, one by one, the Government rejected those amendments, meaning that they have failed to grasp the huge opportunity, presented by the first skills Bill in their 12-year period in office, to put England’s approach to skills on a comparable footing with the best systems around the world. Their noble lordships reluctantly agreed to place just two further amendments in front of us today.
On amendment 15B, when this Bill was first debated nine months ago we had the then Secretary of State and the skills Minister in dismissive mood, decrying BTECs for all they were worth. Since then, we have had the more ameliorative approach, which we welcome, of the current Secretary of State first offering an extension to funding for BTECs into the next Parliament, then saying that the Government would conduct a qualifications review and tell us which level 3 qualifications they consider not of sufficient quality or duplicating T-levels.
All the while, however, the suspicion remains—reinforced by the Minister’s speech a moment ago—that the Government believe that only by discrediting or defunding BTECs will T-levels flourish. I am confused about why they so lack confidence in this new qualification. As my great friend Lord Blunkett said when moving amendment 15B last week, the Opposition have no hostility towards T-levels; indeed, we believe they are of real value. Just two weeks ago, I was at Barnsley College—a fine institution where I met several good T-level students studying construction, digital production, and health and care. They were hugely impressive, as were the lecturers and the leadership team, and had a real vision for where they might go following this qualification. I have no problem with saying that I have seen good quality T-level provision.
Nor should the Government refuse to recognise that BTECs, CACHE diplomas and other level 3 qualifications have also been transformational for so many students, and they should proceed cautiously before abolishing them. If the qualification, in its current form or in any future form, is a strong one, it will prosper, without the need to try and kill other level 3 qualifications and leave tens of thousands of students without a qualification to study. BTECs are widely respected by employers, learners, universities, colleges, training providers and other key stakeholders. When I asked the Minister about this earlier, he refused to answer, but the DFE’s own figures showed that 86% of respondents to its consultation urged it to continue the twin track of T-levels and BTECs. The Minister referred to Labour opposing T-levels. We are not opposing T-levels at all. In fact, it was the Conservative-dominated House of Lords, with the support of Conservative peers, that voted to place this amendment back before us last week.
The Government have optimistically suggested that 100,000 students might be doing T-levels by 2024. Given that 230,000 students currently study for level-3 qualifications, the Government need to come clean, when their review is published, about their plan for those who do not move on to do T-levels. It really is not good enough to continue dodging this question. Institutions need to know, learners need to know, and employers need to know. Do the Government expect that more students will complete level 2 and then go into the world of work at the age of 17? Do they expect that anything like the missing 130,000 would stay on alternative level 3 courses? If not, what is the plan? The Government need to come clean.
On amendments 17B and 17C, while Labour Members would have preferred that the Baker clause was adopted in its entirety, we are prepared to accept this compromise as a way to move the issue forward. It was interesting to hear the Minister talk about that compromise. I still fail to see what it was about having more than one intervention in a single school year that the Government thought so radical an idea. Why is two in every two years considered the very most that we can expect of our schools? Notwithstanding that, given that at least 50% of pupils do not progress on to an academic route, children and young people should have as much support as possible to learn about the wide range of opportunities open to them. It is welcome that the two interactions must be separate and different from each other. I would like to impress upon the Minister that these interactions must be of high quality and must be impartial.
The Government need to acknowledge that the perspective on the current operation of the Baker clause differs considerably depending on whether you are a student or a provider. All too often, apprentices I have met have told me that they were not made aware of apprenticeships while at school. Just a few weeks ago, I was at the Remit Training automotive apprenticeship academy, where just five of the 25 students I met said that apprenticeships had been discussed at school and that they had received proper careers guidance. I suspect that if we spoke to their school, we would have heard a different tale. Ensuring that these interactions are done in a meaningful way that really opens schoolchildren’s horizons is so important.
While it remains a regret that more of the Lords’ excellent amendments were rejected by this House, it is our intention to support their lordships’ two remaining amendments before us tonight. Beyond that, we give notice that as this Government have clearly run out of the ideas required to address the skills shortage they have created, a future Labour Government will tackle the systemic failure that has seen this country fail too many students and leaves England’s employers consistently complaining that under this Government too few young people leave our schools ready to work. It will take a Labour Government to drive the partnership and collaboration required to bring Government, employers, metro Mayors, local authorities and others together to reform what is not working and develop a skills ecosystem fit for purpose that delivers the work-ready students our employers demand, and our economy, and our country, so desperately need.
I am pleased to be called to speak today, and glad that this Bill is reaching almost the end of its yellow brick road. Sometimes the Government are like the Tin Man and need a bit of oil in them. I pay tribute to the Secretary of State, the skills Minister and the Minister for Higher and Further Education, as well as the previous skills Minister, my hon. Friend the Member for Chichester (Gillian Keegan), who first set the wheels in motion for this legislation.
I have always passionately believed in the need to build an apprenticeships and skills nation. I disagree with the Opposition in that I think that the Bill is fundamentally important. The lifetime skills guarantee and the lifelong learning entitlement will transform lives for the better. It is backed by real funding of an extra £3 billion announced in the autumn Budget. That will do a lot to reverse the decades of neglect and snobbery that have often surrounded the FE sector. Culture change must start at the top. I am genuinely proud of the way that the Government have met the challenge of skills. We will always need more to be done, but this is a fundamental Bill and it should be recognised as such. While I absolutely want to make sure that the core BTECs are kept until the T-levels are rolled out, I would certainly not want a delay in T-levels. If anything, I would be happy for the Minister to introduce them even faster than their planned roll-out.
Culture change must also come from the bottom up. One of the biggest obstacles to students undertaking more skills-based courses is the fact that schools do not encourage students to do apprenticeships or vocational learning in the same way that they encourage progression to university. As I mentioned in relation to amendments that came to the House a few weeks ago, my maiden speech in 2010 was on this very subject, so the Minister will understand why I care about it. Sadly, not a lot has changed since 2010 in terms of encouraging students to do apprenticeships. Many teachers have themselves qualified by going to university, so their familiarity with this pathway has helped to foster the age-old mantra of “university, university, university”. I would like the Government to allow us to have not just postgraduate teachers but teachers who have qualified through a degree apprenticeship. We have policing and nursing apprenticeships, so why not teaching apprenticeships and undergraduates at higher apprentice level?
The way the inspection framework has been framed and the nature of A-levels being seen as more academic has also contributed to the focus on university as the gold-plated standard. I hope that the roll-out of T-levels will help to ensure that the same procedures apply to technical education and then divide between academic and vocational learning. Personally speaking, I would be delighted if students could mix their alphabet of learning and take A-levels and T-levels together, which would essentially establish an international baccalaureate-style system of the kind that has benefited so many pupils from countries around the world.
However, the most critical thing we can do is improve careers guidance in schools. I am sure that my colleagues on the Front Bench will have tinnitus from the amount of times that I have gone on about this, but it is fundamental. The more encounters that pupils have with further education providers, technical colleges and university technical colleges, the more likely we can demonstrate that there is another, and arguably better, path forward. On one occasion, when I was lucky enough to have the role of skills Minister that my hon. Friend the Member for Brentwood and Ongar (Alex Burghart) performs with such distinction, I went to visit an exhibition in Birmingham—a skills show—and met a father and daughter who were in the process of deciding whether she should go to university. I showed them what was on offer—the high-quality skills courses and the jobs as well. By the time we had finished, the father and the daughter had absolutely decided that she would go and do a higher apprenticeship. I thought to myself, “I’ve converted one person to do this and I hope we convert many millions more of our young people.” That is why these encounters are so important—because without that skills show, that father and daughter would probably have just taken the traditional academic route of her going to university.
Last time I spoke on this Bill, I was addressing my new clause 3, which would have provided for three careers guidance encounters per pupil in each key year group. The Secretary of State said that while he was unable to make an announcement at that time, he would consider it further and move in due course and, as is so often the case with him and his Ministers, they have kept their commitment and their word, which is hugely appreciated. I am delighted to speak in support of Government amendments 17B and 17C, which allow for two careers guidance meetings per pupil per key year group, making a total of six such meetings, which is double what is on offer today. That goes to show that if the Secretary of State says he will do something, it will happen.
(2 years, 10 months ago)
Commons ChamberAs so often, the hon. Lady has got it absolutely right, and I am sure the Secretary of State has heard what she said. I hope very much that that is part of the regulations that he and the Justice Secretary introduce.
New clause 2 would provide funding for level 2 education and skills training for any person of any age, providing that they can demonstrate their intent to progress to level 3. The Education Committee’s adult skills and lifelong learning inquiry identified significant problems with low basic skills. Over 9 million working-age adults have poor literacy or numeracy skills, and 6 million adults do not have a level 2 qualification. Some 49% of adults from the lowest socioeconomic group have received no training since leaving school, and in the last 10 years just 17% of low-paid workers moved permanently out of low pay.
The lifelong learning entitlement is a really welcome intervention, allowing adults to undertake level 3 qualifications—the equivalent of an A-level—to retrain for different and better-paid jobs. However, we know that many of these adults will not have the skills needed to go straight into level 3 without further support. Level 2 qualifications are a key stepping-stone for progression for low-skilled adults. They provide those who have left school without GCSEs or equivalent qualifications with a vital chance of learning. Not having that stepping-stone of support is like asking someone who has little maths ability to dive straight into the deep end of A-levels without first learning to swim by taking GCSEs.
However, I recognise that there is a financial cost and that we are in difficult financial times. In 2018-19—the last year before covid—the adult education budget had a £56 million underspend nationally. More recently the trend of underspend has continued. In London only £110.6 million—60.7% of the £182 million given out to grant-funded providers through the adult education budget—had been spent by April 2021.
Investing in level 2 provision provides value for money for the taxpayer. Estimates suggest that for every £1 spent the net value is £21 and that could contribute an additional £28 billion to the economy. The Further Education Trust for Leadership review estimates that an additional £1.9 billion per year could be used to fund level 2 qualifications in maths, English and digital skills for the 4.7 million adults without such qualifications.
I get the financial restraints, which is why I will not press this new clause to a Division. However, I ask that the Government genuinely commit to look at funding options in the next spending review and particularly at using the underspend from budgets such as the adult education budget, even if they just introduce these provisions for maths and English. I would welcome the Minister’s views on that when he responds.
Finally, let me turn to the new clause I care most about. New clause 3 seeks to increase the number of careers guidance encounters that young people have at school and to toughen up what is called the Baker clause. As has been mentioned, I was the skills Minister responsible for bringing in the Baker clause in 2017, but despite the good intentions of all involved it has not been implemented correctly.
I have had so many encounters with young people doing apprenticeships. When I have spoken to them, they have said, “Although I’m doing an apprenticeship, they were hardly spoken about at school.” Everyone at their school seemed to be funnelled towards the sixth form, and lots of their friends and families had not heard of apprenticeships. That is precisely why this new clause is so important. We need to make sure that every young person, whether an A-grade student or not, has the opportunity to consider apprenticeships and other alternative strategies, as well as sixth form. That is why I really welcome this new clause, and I strongly encourage the right hon. Gentleman to put it to a vote.
I thank the hon. Gentleman, and he is absolutely right. I go all over the country, and my first speech in this House was about apprenticeships and careers. I have done everything possible since I have been an MP to promote apprenticeships across the country, and I have employed apprentices in my office. Whenever I go around the country and meet apprentices, the most depressing thing is that eight out of 10 say their schools told them nothing about apprenticeships—sometimes it is nine out of 10, and sometimes it is 10 out of 10. Worse, I have met degree apprentices doing the most incredible, high-quality apprenticeships in engineering or whatever it may be who have offered to go back to their schools to talk to the kids—to do one of those encounters—about apprenticeships, but the schools have said no. Why? Because we have a culture in this country of university, university, university. That is partly because every teacher has to be a graduate, and I hope that the Secretary of State will one day allow degree apprenticeships in teaching, not just postgraduate degrees in teaching. We have a culture that is university, university, university, when it should be skills, skills, skills.
The reason why I am not pushing the new clause is that, in my discussions with Ministers, they say they are going to deal with this problem properly. If I did not believe them, I promise you I would bring through the new clause, and those in the House who know me and who know how I campaign know that.
(6 years, 9 months ago)
Commons ChamberI will come to the hon. Member for Chesterfield (Toby Perkins)—we will save him for now. He can cook for a little longer.