Educational Opportunities

Sarah Dyke Excerpts

Wednesday 13th November 2024 Westminster Hall

[Tony Vaughan (Folkestone and Hythe) (Lab)]

I beg to move,

That this House has considered the matter of tackling barriers to educational opportunities.

It is a privilege to serve under your chairship, Mr Pritchard.

In the UK today, most 18-year-olds—around 64%—do not go to university. I want to focus on the barriers facing the 64% of young people in accessing the education and training that they need to lead fulfilling working lives. I do not believe that they have benefited from the same educational opportunities as the minority of young people who leave school for university, and that makes no moral, social or economic sense. In my view, our system of vocational education and training is not working for the 64%, or for our country.

My constituency of Folkestone and Hythe has incredible potential for a thriving vocational education and training system. It has strengths in the creative industries, independent retail, tourism and hospitality, as well as green energy and nuclear decommissioning. We are home to the Little Cheyne Court wind farm and the former Dungeness nuclear power station. However, the potential for a technical education system to supply those industries, and others, with skilled workers in both Folkestone and Hythe and the UK as a whole remains untapped. In 2022-23, there were 677 apprenticeship starts in Folkestone and Hythe, but only five in the leisure, tourism and travel sector, despite the size of that sector. And despite the significant number of regeneration projects in Folkestone and Hythe, the number of apprenticeship starts in construction, planning and the built environment fell by 49% in 2022-23 compared with the previous year.

Our country has some incredible further education colleges; I commend the work of East Kent college in Folkestone. When I visited during the general election campaign, I was shown workshops, kitchens and classrooms where, among many other vocations, the builders, electricians, carpenters, programmers, chefs and healthcare workers of the future are being educated. The college, which was judged to be “outstanding” by Ofsted in 2023, offers an incredible range of qualifications, including BTecs and T-levels. It offers adult education and there is also a junior college, with a two-year creative curriculum for learners aged 14 and over who want to specialise in arts or business studies. I thank its staff and students for their hard work, and for the grilling that they gave me and the other candidates at a hustings event hosted by the college before the election.

Unfortunately, in many colleges like East Kent college, not all students who complete courses in specialist areas actually go on to work in those fields. That is not always down to students changing their minds; it is also because of the lack of jobs and apprenticeships available in the labour market. Under 14 years of Conservative Governments, apprenticeships starts plummeted, the apprenticeship levy was exposed as inadequate and further education was starved of vital funds. In 2015-16, the total number of apprenticeship starts was 509,000; by 2022-23, that number had fallen to 337,000. Between 2017 and 2024, the number of engineering apprenticeship starts fell by 42%. It was encouraging to see that apprenticeship starts grew by 3% in the month Labour took office, demonstrating employers’ optimism following the change of Government.

I am afraid to say that the Conservatives’ reforms, such as the apprenticeship levy and T-levels, were ineffective. There was not enough flexibility built into the apprenticeship levy and not enough investment in apprenticeships for younger learners. As the chief executive officer of Make UK, Stephen Phipson, has said, successive Governments have provided inadequate funding for engineering apprenticeships, rendering them uneconomical for FE colleges and private providers to deliver. Neither have we had proper alignment between our industrial and our vocational education strategies.

As a result, our skills policy has not been supporting the sectors of our economy we most need to grow. Sectors such as battery technology, electrical vehicle production and renewable technology manufacturing do not receive the funding for apprenticeships that they need, and in turn do not benefit from a steady supply of skilled workers. We need to end the mismatch between what is taught and the skills needed by the labour market. I warmly welcome the Government’s agenda for skills and vocational education and the Budget announcement of an additional £300 million funding boost for further education next year. But we know that in this policy area, as in so many others, funding is not enough—ambitious reform is what we need.

I will touch on three aspects of the Government skills policy: Skills England, devolution and reform of the apprenticeship levy. I support the creation of Skills England, which will end the fractured skills landscape and bring together combined authorities, businesses, workers, trade unions and colleges so that there is co-ordination to meet local economies’ skills needs. It is incredibly important that Skills England will be a strategic body so that it can make sure that our industrial strategy, Invest 2035, and the vocational educational strategy work as one. Only then will sectors such as advanced manufacturing, which is rightly a focus of our Invest 2035 plan, benefit from a predictable supply of skilled labour.

I also support the fact that part of Skills England’s mandate will be to collaborate with the Migration Advisory Committee so that we ensure that our own young talent is trained up and joins our labour market before we reach out to recruit from abroad. We have an abundance of young talent. This is about ensuring that our skills policy makes the most of the talent, work ethic and creativity of our young people while having an immigration system that welcomes the workers we need to get our economy growing and our public services working again. The Migration Advisory Committee has for far too long looked at labour market shortages in a vacuum without thinking about how our skills policy can address those shortages in the long term.

I also believe that it is important for more powers over skills and technical education to be devolved, because the UK still has variation in our regional economies. For example, the creative industries are very important in Folkestone and Hythe, and nationally that sector contributed £124 billion to the UK economy in ’22. In the west midlands, the automotive sector is important. On Teesside, there is a resilient chemical sector, and there is still a proud steel industry in Scunthorpe and Port Talbot. Different regional economies will demand different focuses and priorities for policymakers, so I endorse the Government’s plan to ensure that there are local skills improvement plans and that adult skills funding will be devolved to combined authorities.

Reform of the apprenticeship levy is long overdue. The levy is a tax on employers with a wage bill of over £3 million a year that funds apprenticeships. The problem is that the funds levied can be spent only on very specific types of training. For example, businesses cannot use the money to fund any courses shorter than one year. The new growth and skills levy will be critical, because it will mean that businesses will be able to pay for a greater range of training options, apprentices will have more choice and apprenticeships can be shorter than a year. It is very important that employers will be required to fund more of their level 7—that is, master’s degree-level—apprenticeships. The money saved there will be reinvested into foundation apprenticeships, which will give younger workers more opportunity and flexibility.

I know that the road ahead is challenging. Between 2017 and 2022, the number of skills shortages in the UK doubled to more than half a million, and by 2022 skills shortages accounted for 36% of job vacancies. Training expenditure is also at its lowest level since records began in 2011. Yet if we get skills policy right, the opportunities are huge. Total revenue from the apprenticeship levy is forecast to grow from £3.9 billion to £4.6 billion by 2029 due to rising wages. A broader skills base will mean more productive jobs, higher labour productivity, stronger wage growth and rising living standards for all workers, not just university-educated professionals. That will benefit young people, many of whom feel demotivated and disenfranchised and believe that the 21st century economy does not serve them. In places where they have been given a pound shop instead of a workshop, they may be right.

On future policy development, can the Minister provide more detail on the timeline for when we can expect the different phases of development of Skills England? I would also be grateful to know how the Government plan to align Invest 2035 with their post-16 education strategy. Both those strategies require prioritisation, so what sectors do the Government plan to focus on to drive up the number of apprenticeship starts? Are there any other areas of education and skills policy that the Government would like to devolve to local economies rather than combined authorities? For example, there is no combined authority in Kent. What plans do the Government have to ensure more apprenticeship starts in the industries of the future, such as artificial intelligence, autonomous vehicles, green energy and new nuclear?

[Sarah Dyke (Glastonbury and Somerton) (LD)]

I thank the hon. Member for securing this important debate. Somerset is home to Agratas, which is a 40 GWh gigafactory at the Gravity Smart Campus. It is creating jobs and boosting the green economy. It is important that local people in Somerset have the skills to work in those jobs, so does the hon. Member agree that we should encourage local partnerships between schools and industry to teach science, technology, engineering and maths skills and offer those opportunities?

[Tony Vaughan]

The hon. Member is absolutely right, and that is exactly what Skills England is going to do. It is about the collaboration between all the different stakeholders in society, not just businesses and colleges, to enable us to get to a point where the skills need is being facilitated by education providers.

A high quality vocational education system will improve social mobility, and be one of the best ways to tackle the precarity of the low skill, low productivity and low pay economies that have been built over the last 14 years. I look forward to working with the Government to break down the barriers to opportunity for the 64% of young people who do not go to university, and to build a vocational training system that we can all be proud of.