Education Funding for 18-year-olds

Rushanara Ali Excerpts

Tuesday 28th January 2014 Westminster Hall

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is a pleasure, Mr Williams, to serve under your chairmanship. I congratulate my hon. Friend the Member for Stretford and Urmston (Kate Green) on securing this important debate, and I welcome the contributions from throughout the Chamber. We are united in our concern about the impact that the decision that the Minister and the Department made just before Christmas will have on 18-year-olds, given the drastic cut in funding for further education colleges. Colleagues from across the Chamber and I want to hear from the Minister, so I will not go through the speeches of individual Members, but I want to pick up some of their points.

As my hon. Friend the Member for Stretford and Urmston highlighted, the funding cut from £4,000 to £3,300 per 18-year-old student will have a massive impact on more than 150,000 young people, particularly in FE colleges. I represent a London constituency and have received representation from the FE college that I attended. There will be a disproportionate impact in London because of the high number of young people who continue their post-16 education in FE colleges and the high number of ethnic minority students. The Government’s belated impact assessment also highlights the disproportionate impact on ethnic minority groups, white people from disadvantaged backgrounds and many other vulnerable students. Those points were well made by hon. Members, including my hon. Friends.

There is particular concern about the consultation process. We are all deeply worried about lack of consultation and the irresponsible and reckless way in which the decision was made. The Minister should know better than to leave FE colleges, which work hard to support millions of young adults with varied life circumstances, high and dry and having to deal with a set of decisions that will cause disruption. I appeal to the Minister to listen to my hon. Friends, and his many hon. Friends, who said that the decision must be rethought. At the very least, we need some breathing room for FE colleges so that there is no disruption in the system, which many, including the Association of Colleges, have said is likely.

There is deep and genuine concern that there will be a disproportionate effect on young people who desperately need a second chance. Almost all hon. Members highlighted that. For various reasons and in various circumstances, as the hon. Member for Romsey and Southampton North (Caroline Nokes) eloquently highlighted, young people, including young women who are high achievers, may suffer crises—bereavement is an example—and may need an additional year. It is unbelievable that the Government are so short-sighted that such circumstances are not taken into account, because those young people may end up with the other 900,000 who are not in education, employment or training. Surely we should not increase the number of people in that category. Surely the Minister wants young people to stay in the education system and take vocational courses, so that they can service our economy, which needs the technical skills and high-quality apprenticeship schemes that FE colleges are increasingly delivering.

My hon. Friend the Member for Rochdale (Simon Danczuk) told us that his local students rose to the occasion and serviced his wedding preparations. We are direct beneficiaries of educating young people, and many of us who attended FE colleges recognise the significant contribution that they make to the life chances of people from a variety of backgrounds.

[Dr Julian Lewis (New Forest East) (Con)]

The principal of Brockenhurst college in my constituency has made similar points about people who have gone on to serve the nation—for example, in the police and armed forces. Does the hon. Lady have a policy on the point that was made so clearly by the hon. Member for Cambridge (Dr Huppert) about the differentiated VAT regimes for sixth-form colleges and other schools? If so, what is that policy, and will she urge it on the Minister?

--- Later in debate ---

[Rushanara Ali]

The issue has been discussed; my hon. Friend the Member for Stretford and Urmston mentioned it, and hon. Members have raised concerns about it. The question today is for the Government, and the hon. Member for New Forest East (Dr Lewis) should focus on getting a response from them. We will certainly look at the issues and at how we respond when we form a Government. There are deep concerns about the issue, and we need to look at how to ensure parity across providers. He should focus his question at the Minister. Too often, the Government throw questions back at the Opposition as though we were still in government. The Government are in their final year and they should take responsibility for issues, particularly today. Perhaps the Minister will respond to the question.

I want to highlight the issue of the education maintenance allowance, which played a big role in reducing the number of young people not in education, employment or training. Reducing the allowance will risk adding to the number of people in that category, which surely cannot be acceptable for anyone, including the Government.

I conclude by reiterating points that colleagues in all parts of the Chamber have mentioned: the disproportionate impact on those who need a second chance; the pressures on the FE sector at a time when it already faces drastic changes and cuts; and the fact that the FE sector often takes risks with students whom other institutions are not prepared to take, as hon. Friends have said.

The Government’s decision and their belated impact assessment, which acknowledges the disproportionate impact on ethnic minority groups, suggest that the Minister is, at best, indifferent to the impact on some groups. Considering the high number of black Caribbean boys and white working-class boys who are affected, it is shocking that the Minister is not taking the issue seriously. I hope that he will do so today, because we cannot tolerate the creation of greater inequality and social immobility. The Government’s policy is damaging for young people in general and particularly those who need a second chance, and it is damaging for our economy, our society and our ambition of promoting equality of opportunity and social mobility. It is a complete contradiction of the Government’s rhetoric. I hope that the Minister will think again and consider the issues that hon. Members have raised.