Education, Skills and Training

Seema Kennedy Excerpts

Wednesday 25th May 2016 Commons Chamber

[Marion Fellows]

If Scotland was independent, that would not happen, because we would be members of the European Union. So the answer is: give us our independence.

Although I welcome a lot of what is in the Bill, it is important to say that encouraging mature disadvantaged people to go to university only increases the standing of any country within the UK. Everyone from across the Chamber should agree with that. Education does not just benefit the person who gets it. I stand here as someone who went to university in 1967, at a time when women did not go to university and when women of my background did not get a chance; I had very far-sighted parents who actively encouraged me to make the best of what I could. As a result of that, I have been able to contribute back to Scotland greatly. As I have said, I ended up working in further education. I do not want to name names, but for someone in this Chamber to say that education benefits only those who get it is a total piece of nonsense.

[Seema Kennedy (South Ribble) (Con)]

I totally agree with the hon. Lady that having more and more of our fellow citizens in higher education is good for the whole nation, which is why we are here to promote that. Does she therefore welcome the fact that the proportion of young people from disadvantaged backgrounds in higher education has increased from 13.6% in 2010 to 18.5% in 2015-16?

[Marion Fellows]

I welcome any increase in access for people from poorer backgrounds, but I do not think accessing education should come at the risk of being in debt for the remainder or quite a long part of someone’s adult life.

The National Union of Students in Scotland and in England has said that it is really likely that higher education fees will rise yet again here, and that just underlines my point.

--- Later in debate ---

[Seema Kennedy (South Ribble) (Con)]

It is pleasure to follow the hon. Member for Heywood and Middleton (Liz McInnes) and my hon. Friend the Member for Romsey and Southampton North (Caroline Nokes), who are both great champions of their constituents. It is a great honour to speak in this debate on the Gracious Speech.

Many hon. Members have spoken passionately about education, skills and training. It is absolutely vital that, as a nation, we get these elements right if we want to build up a cohort of our fellow citizens who are ready to face the world of work at 18 or 22, but also later in their lives as lifelong learners, because our workforce is changing, and our economy is changing, in a profound a long-lasting way.

I pay tribute to the Federation of Small Businesses for its excellent report, “Going it alone, moving on up: Supporting self-employment in the UK”, which provided many of the statistics that I will use in the next few minutes. Today 15% of the workforce is self-employed, compared with 8% in 1980. To support this strong and growing economy, we, as legislators, need to be as nimble as those entrepreneurs—that 15% of our constituents. There is always a balance between laissez-faire and red tape, and in our legislative programme we need to adapt to the changing economy.

I have great hopes of some of the Bills in the Gracious Speech, but I also have some questions for Ministers, and some suggestions on three Bills in particular. I would like to begin by speaking briefly on the better markets Bill. Competition law is always one step behind the market; I speak as somebody who spent part of my training in a competition law department. I very much welcome this Bill to keep pace with the changing markets. I welcome the “faster switching” principle for energy suppliers. I have done that myself, as have many other right hon. and hon. Members, I am sure. I particularly welcome the clarification of the roles of economic regulators. We are dealing with very adept businesses—people who are highly lawyered—and if, as legislators, we want to protect consumers, we need strong measures in place.

I want to speak briefly about the regulation of one market that is quite unsexy but utterly vital—the water market. Last summer, my constituents in South Ribble, along with another 300,000 households in Lancashire, had no drinkable water for one month. The contamination of cryptosporidium in our drinking water had a massive effect on consumers and, particularly, on small businesses in the catering industry. My hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) has spoken about this because, of course, he has many cafés and restaurants in his constituency. That incident highlighted very clearly the monopolistic nature of the water market.

I am therefore happy that from April next year a new non-household retail water and waste water market will be opening up. However, I am concerned about the implications of this new regime for small businesses and sole traders, because after the cryptosporidium outbreak many small businesses found it hard to access the compensation—the process was not quite as simple as for domestic consumers. Ofwat has clearly stated that part of its remit in this new water market is to ensure that the market operates effectively. It has made representations to DEFRA Ministers that the guaranteed service standards should cover all non-household customers in the market. Unfortunately, there are no Business, Innovation and Skills Ministers present, but I am sure we will be told whether anyone from that Department has discussed the issue with DEFRA and whether the guaranteed service standards will be rolled into the better markets Bill.

From one unsexy subject—water and sewerage—to another, namely savings and pensions. Our national statistics on savings are woeful compared with those of our EU neighbours. The French save about twice as much as we do.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

Does the hon. Lady agree that, if we are to address that issue, it is extremely important that financial education on both savings and financial management is taught at school?

[Seema Kennedy]

I agree wholeheartedly with the hon. Lady. Some 21 million people in this country do not even have £500 of savings. As she has said, part of the reason for that is lack of financial education. I welcome the lifetime savings Bill, which will provide a flexible product that enables young people to save for a home and for their retirement, and the increase in the individual savings account limit.

The statistics on savings for the self-employed are even worse than those for the nation as a whole. Only 31% of respondents to the FSB survey said that they are saving into a pension, compared with 59% of people who are employed. The remaining respondents intend to rely on their business and existing savings, and about 15% of them have absolutely no savings or pension plan. The lifetime ISA is welcome, but are there any plans to adapt it to suit the new and growing cohort of the self-employed? The age restriction limits it to the under-40s and there is growing evidence that more of the self-employed are aged 45 or over. I hope that the Government will consider finding ways of encouraging and normalising savings for the self-employed, because they do not get the same nudges that auto-enrolment gives people who are employed.

On the pensions Bill, I will not repeat the statistics of self-employed people who have no pension or savings plan, but I urge the Government to consider carefully the needs of the self-employed. The Work and Pensions Committee has made submissions about the issue, particularly in relation to the National Employment Savings Trust auto-enrolment scheme, to which MPs have signed up our own employees. It is very good, but it also needs to include a solution for the self-employed.

In an ideal world, the self-employed will go on to become micro-employers, or perhaps even large employers, and set up their own pension fund. There needs to be adequate communication with micro-businesses about their obligations under auto-enrolment, which can be burdensome. Once small businesses do set up pensions, robust regulation needs to be in place to ensure that such funds give good returns and are adequately protected.

The Bills on which I have touched briefly are welcome in adapting to our changing workforce. I look forward to seeing the detail as they progress through this place.