Social Mobility and the Economy

Sarah Champion Excerpts

Wednesday 28th March 2018 Westminster Hall

[Justine Greening]

A lot of hon. Members, particularly Conservative Members, would dispute those facts.

I recognise that there is an important debate to be had on higher education, but I want to focus my comments on business and the economy because business has a key role to play in improving social mobility in our country. Today, I am asking businesses large and small to commit to a universal social mobility pledge.

I hugely thank David Harrison and the Harrison Centre for Social Mobility for crucially supporting the work to enable us to launch the pledge today. The social mobility pledge is about three things: partnership between schools and businesses; businesses offering access to work experience or apprenticeships; and businesses having recruitment practices that are transparent and open, to promote a level playing field for talent.

First, partnering with schools is something that every single company, big or small, can do. It does not have to be hard. Some outstanding organisations are already providing a platform for action, and the resources needed for companies and businesses to make a start: Speakers for Schools; Inspiring the Future; the Careers and Enterprise Company; and the Prince’s Trust, which is setting up the e-mentor scheme, to name just a few. A lot of these organisations want to do more working through business, and they also want to do that in locations outside London and the south-east, where young people often have fewer opportunities. However, we need the fantastic employers in those areas to come forward to help make that happen.

Some great organisations are doing amazing work on access to work experience and apprenticeships, such as the Social Mobility Business Partnership, which can help. I also say a massive “thank you” to Barry Matthews, who set up the SMBP, for his help in working with me recently to help put together the social mobility pledge, so that companies large and small can get behind it. The Social Mobility Foundation does a huge amount of great work. Alongside that is the Sutton Trust, which I mentioned earlier and which has pioneered so many of the great initiatives that we have learned from and that companies can get involved in.

All companies can make a decision to open their doors and let young people who might not have any idea about that organisation come in and spend time learning about it, shadowing people and working on projects that give them a sense of what working in those careers is like.

[Sarah Champion (Rotherham) (Lab)]

This is a fantastic speech and I thank the right hon. Lady for sharing her experience and ideas. In Rotherham, which she knows well, employers are looking to open their doors, but we also need teachers and parents to give the young people a shove to go over the threshold.

[Justine Greening]

The hon. Lady is right—this must be a two-way street. I put the call out to teachers to have the confidence to work with businesses that want to come and help raise aspirations for their young people, just as teachers themselves do. Inspiring the Future works successfully with thousands of schools—primary and secondary—around our country. We know such activity can work and we know how it benefits those children. Today, I am seeking to expand the opportunities for children who currently do not have enough of them.

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[Sarah Champion (Rotherham) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. It is the greatest pleasure to follow the right hon. Member for Putney (Justine Greening), who is a Rotherham girl. She lives and breathes exactly what she is outlining. Her family background is very common in Rotherham. The fact that she has achieved such incredible heights is genuinely an inspiration to my constituents. It is exactly what we are looking to do. I fully support her social mobility pledge. I urge her to come back to Rotherham so that we can work together to make it happen.

I am particularly proud that a woman is launching the social mobility pledge, and a great deal is owed to the right hon. Lady for her work on this. We have now got cracks in the glass ceiling. Indeed, as she rightly said—I am going to steal her line—a ton of bricks is now falling on the class ceiling. That is something we have to address as a country, not least because this week the Children’s Commissioner highlighted the huge gaps that exist between the poorest children in the north and the poorest in the south. Her report found that a child on free school meals living in Hackney is three times more likely to go to university than a child on free school meals from Hartlepool. London children on free school meals are 40% more likely to achieve good maths and English GSCEs than children in the north. Rotherham, by contrast, ranks 188th out of 324 local authority areas for social mobility and has the seventh highest secondary school exclusion rates in the country. The Children’s Commissioner found that too many children are dropping out of education and training before 18, with several northern cities having more than 10% of children missing out on crucial parts of their education.

The all-party parliamentary group on social mobility recognised that social mobility is improved through education and high-quality teaching, yet its former chair now leads a Department that is cutting school funding by 4.6% between 2015 and 2019. Across England, more than half a million primary school children are in super-sized classes. Between 2014-15 and 2016-17, class sizes in Rotherham rose in more than half of our schools and the pupil to teacher ratio rose in two thirds. Some 57% of schools have cut their staff. While the Government talk of a fairer funding formula, schools in Rotherham will have suffered cuts of nearly £3 million between 2015-16 and 2019-20. I fail to understand how that can help our children reach their potential.

Another issue that we cannot ignore is the economic environment that children live in. I am pleased that the Children’s Commissioner recognised that northern children are proud and optimistic, but her report found that many lacked confidence that economic regeneration will mean more job opportunities for them.

Rotherham ranks 119th out of 650 constituencies on the highest number of young people claiming jobseeker’s allowance and universal credit. According to the Office for National Statistics, productivity growth nationally over the past 10 years was the weakest since modern records began. We have some fantastic businesses in Britain. As the right hon. Lady knows, we have fantastic businesses in Rotherham, but there is a serious skills shortage, as she outlined. A recent survey from the British Chambers of Commerce found that skills shortages were reaching critical levels in the last quarter of 2017. How will we address the gap and the lack of productivity if we are not training our young people in the skills needed for a modern economy?

In Rotherham, many businesses are in manufacturing. They recognise—

[Geraint Davies (in the Chair)]

Order. I invite Gillian Keegan to try to get below four minutes.

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[Mel Stride]

The hon. Gentleman and I have been in several debates where he has raised exactly that point time after time, and I am grateful to him for raising it again. There is an element of affordability to that; there is also the fact that there is a minimum wage, which we are increasing through time, for those who are under 25. We have been able to provide the above-inflation increase to the national living wage because our stewardship of the economy has allowed us to. The problem with some of the prescriptions that we hear is that they are big on spending and borrowing money and increasing taxation, and I am afraid that is just not a recipe for being able to make the kind of progress on the national living wage that this Government have been making.

I will move on to the overall economic progress that we have made as a Government. We have a near record level of employment in our country; we have more women in work than at any time in our history; and we have virtually the lowest level of unemployment for 45 years—youth unemployment is down by 40% since 2010. We have had five years of continuous growth, and the deficit and the debt are both falling.

[Sarah Champion]

I recognise the things that the Minister mentions, and of course they are to be welcomed, but we are talking about young people’s aspiration not just to get a part-time job in the corner shop but to become an MP, a judge or a surgeon. Surely that is what we are lacking, and that is why I hope he supports the pledge of the right hon. Member for Putney.

[Mel Stride]

I do not disagree with the hon. Lady, but my point is that unless there is a successful economy, with jobs, growth and all the things that this Government are delivering, it becomes more and more difficult to provide social mobility. This Government are providing all the things that I have outlined, and that is driving social mobility.

The way that the economy is managed has an important impact on poverty, which, as we know, is one of the greatest evils that hold people back. Since 2010 we have a million fewer people in absolute low income—a record low. The hon. Member for Mitcham and Morden (Siobhain McDonagh) raised the issue of child poverty; we have 300,000 fewer children in absolute low income. There are 200,000 fewer pensioners in absolute income poverty and 500,000 fewer adults of working age in absolute low income since 2010. In fact, of the 28 EU member states, our country has the fifth lowest level of persistent poverty. That is not the same as saying that where we are is acceptable or that we do not have to do more, but we should recognise that progress is being made.

Doing more is right at the heart of what my right hon. Friend the Member for Putney suggests. The Government warmly welcome her initiative; she rightly said that a lack of social mobility leads to talent going to waste. I totally endorse that. She referred to the important link between productivity and social mobility, a point that my hon. Friend the Member for Chichester (Gillian Keegan) also raised. It is a simple fact that living standards can increase dramatically if we get productivity right. In fact, if we had the same level of productivity in our country as there is in Germany, our economy would be 30% larger than it is. I am wholeheartedly with her on that.

My right hon. Friend the Member for Putney also raised the issue of Brexit and talked about the freedoms that will come with it as a moment for change. That was an apposite and far-sighted point to make. She urged companies to engage in her social mobility pledge, focusing on partnerships with schools and work experience. My right hon. Friend the Member for Bexleyheath and Crayford (David Evennett) spoke passionately about his work experience when he was a younger man—or should I say an even younger man—than he is today.

On companies’ recruitment practices, my right hon. Friend the Member for Putney raised the issue of name-blind applications and the work that Clifford Chance has done, as well as the contextual recruitment carried out by Deloitte, Linklaters and others, which takes into account applicants’ backgrounds as well as the contents of their curriculum vitae. If I may paraphrase her, it is a case of employers being blind to everything but someone’s suitability to do the job. We can all unite around that. She also raised the important matter of degree apprenticeships and made an interesting point about how the apprenticeship levy is used and whether it could be directed in ways that may be more helpful to the issues that we are debating.

My right hon. Friend raised the important point of how we measure social mobility and human capital. Personally, I think that is an area that would be worthy of greater attention. I do not believe that the Office for National Statistics or any other such bodies produce such statistics, and it may well be worth us looking at that more closely. She raised the importance of working with others, such as companies in our constituencies and organisations such as the CBI, the FSB and the others that she has already brought on board, for which I give her huge credit.

It may be impossible to discuss such a deep and important issue as social mobility without being partisan, and almost inevitably there have been elements of partisanship in the debate. But my right hon. Friend should be congratulated on at least uniting us in spirit on an issue that we are all determined to confront. She left us with a powerful legacy from her time as Secretary of State for Education. I have a feeling that there is far more to come from her; that she is far from finished in her drive for a fairer and better world, with social mobility beating alive, loud and whole at its heart, and I thank her for bringing forward this debate.