Digital Skills and Careers

Seema Malhotra Excerpts

Tuesday 16th April 2024 Westminster Hall

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Dame Caroline. I welcome the Minister to his new role, and I congratulate the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) on securing the debate. She has hit on one of the important and strategically significant issues of our day, and made the point that there is a whole set of issues and new disciplines that policymakers need to catch up with.

The subject of digital skills covers a range of disciplines. It could mean digital literacy for engagement with services; accessing information online; office-based skills, such as creating spreadsheets or presentations; or new digital social media tools. It also covers business software use and development; confidence with hardware, including mobile phones; social media for businesses; data analytics; and so much more, as has been highlighted. Indeed, the hon. Lady talked about how Britain becomes a science and technology superpower and leads the way in cyber-security, AI and so much more.

Digital skills are crucial for the future of our economy, businesses and workforce. That is why a core pillar of Labour’s industrial strategy is to harness data for the public good and to transform digital skills. Database technologies are already transforming our economy. For example, AI is being used to prevent fraud, enable search engines and develop vaccines and medicines.

Hon. Members, including my hon. Friends the Members for Wirral West (Margaret Greenwood) and for Pontypridd (Alex Davies-Jones), have made powerful points. The key point about inclusion—whether by place, demographics, needs, disabilities or the gender divide—is how, not by accident but by design, we can create and work towards the future in terms of how Britain performs.

As a nation, we are way behind where we need to be. The Government have failed to equip young people and the existing workforce with the digital skills they need. That has been demonstrated in some of the research that has been quoted today. Fewer than half of British employers believe that young people have the right digital skills, and we do much worse in computer skills than most of our economic rivals.

As has been mentioned, the 2023 Lloyds bank report commissioned by the Department for Education found that about 13 million people in the UK had the lowest level of digital capability, which means they are likely to struggle to interact with online services. That is an enormous number. The digital skills gap is estimated to cost the UK economy £63 billion per year, and 46% of businesses struggle to recruit for roles that require hard data skills. That also absolutely has an impact on our productivity, such that we sit 16% below international competitors such as the US and Germany.

The Digital Skills Council has found that the barriers to the uptake of digital skills courses include opportunity barriers such as lack of encouragement, restricted options, low teaching quality or even the capacity to access courses in local areas. It also found that those barriers hinder early-career switches for those aged between 27 and 35 and prevent those people from upskilling digitally. That is critical, given the points that my hon. Friend the Member for Wirral West made about people being able to move from job to job or from career to career in a changing economy. We also know that the total number of information and communications technology-related apprenticeship starts has fallen by almost 30% since the start of this Parliament. There are core structural and strategic issues that have not been dealt with effectively by the Government.

There need to be solutions that are commensurate with the challenge. The last Labour Government introduced the statutory digital entitlement for adults with low digital skills. Similarly, boosting digital skills will be a national priority for the next Labour Government. That work will be led by a new national body, Skills England, which will drive the skills needs of our industrial strategy and the green prosperity plan, making sure that we deliver those things in line with what is needed on the ground through the local skills improvement plans, working with employers, unions and civil society. We will also reform the apprenticeship levy so that employers can use up to 50% of their total levy contributions on more flexible course, which, as the Minister will know, was called for by the Manufacturing 5, UKHospitality, techUK and so many others.

The system needs to work together. Young people need to understand developing technologies, to be able to use and shape them, and to understand the opportunities and risks. That is why our curriculum review will embed digital literacy and skills throughout children’s learning and ensure that the curriculum keeps up with technological change.

In conclusion, I have some questions for the Minister. Will he outline what steps the Government are taking to reduce the barriers to uptake of digital skills courses and to address digital literacy gaps? Why are the Government not sufficiently addressing the significant gender disparity in the uptake of computing GCSEs and A-levels, with 92% of those starting A-level courses being male students? That critical issue needs addressing. Finally, how is the Minister working with businesses to understand the digital skills needs of the future, how skills needs can best be met now and what we can do to future-proof our courses? Ensuring that the workforces of today and tomorrow have the digital skills they need is vital for our citizens, our economy, our industry and our public services.

Education

Seema Malhotra Excerpts

Monday 25th March 2024 Ministerial Corrections

[Robert Halfon]

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 11,720 apprentices at levels 2 and 3, or the £19.5 million investment in Chesterfield College.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is not just that level 2 and 3 apprenticeship starts have plummeted by over 50% since the levy was introduced, but that 16 to 18-year-old apprenticeship starts are down by 41%. Research by the Sutton Trust and the London School of Economics further shows that, by 2020, the proportion of apprenticeship starts by those from poorer backgrounds had dropped significantly. Opportunities for all our young people to earn and learn expanded every year under Labour. Is it not now painfully clear that the biggest barrier to opportunity is this Tory Government?

[Robert Halfon]

As always, Labour Front Benchers are obsessed with quantity over quality. We have transformed the quality of apprenticeships. Seventy per cent of occupations are covered by over 680 apprenticeship standards.

[Official Report, 11 March 2024, Vol. 747, c. 11.]

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 Feltham and Heston (Seema Malhotra).

The correct response is:

Oral Answers to Questions

Seema Malhotra Excerpts

Monday 11th March 2024 Commons Chamber

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is not just that level 2 and 3 apprenticeship starts have plummeted by over 50% since the levy was introduced, but that 16 to 18-year-old apprenticeship starts are down by 41%. Research by the Sutton Trust and the London School of Economics further shows that, by 2020, the proportion of apprenticeship starts by those from poorer backgrounds had dropped significantly. Opportunities for all our young people to earn and learn expanded every year under Labour. Is it not now painfully clear that the biggest barrier to opportunity is this Tory Government?

[Robert Halfon]

As always, Labour Front Benchers are obsessed with quantity over quality. We have transformed the quality of apprenticeships. Seventy per cent of occupations are covered by over 680 apprenticeship standards. There has been a 6% increase since this time last year in the number of under-19 starts, and overall starts are up by 3% over the same period. The crucial thing is achievement, which is up by 22%. Female STEM starts are up by 7.5%, starts by people with disabilities are up by 6.3%, and starts by people from ethnic minorities are up by 15.4%, compared with 10.6% in 2010. Not only are we focusing on quality over quantity; we are improving the number of starts and achievements too.

Colleges Week

Seema Malhotra Excerpts

Thursday 29th February 2024 Westminster Hall

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Sir Robert, and to speak in this debate.

It is right that we pay tribute to the hon. Member for Waveney (Peter Aldous) for securing this debate. I know that he is incredibly passionate about further education and the skills sector, and he has raised a number of very important issues, which I will address. I also acknowledge his work on the all-party parliamentary group on further education and lifelong learning—I am a passionate supporter of that group—and work of the Association of Colleges, as the secretariat to the group.

I thank all our colleges up and down the country for the vital contribution they make to our national skills system, and to young people and adult learners across the country. In addition to noting the support and advice from the Association of Colleges, it is worth our reflecting on the support and advice that comes from the Sixth Form Colleges Association, the Association of Employment and Learning Providers, and our qualification providers, including City & Guilds and others, which have also played an important role in the Future Skills Coalition. In addition, this week, FE Week and City & Guilds put on the annual apprenticeships conference, which played an important part in pulling everybody together during this important week.

I acknowledge the contribution made by the hon. Member for Harrogate and Knaresborough (Andrew Jones), who made important points about engagement with employers and about how Harrogate College is helping to meet local skills and workforce needs. That is a story that all our colleges could share, so it was good to hear those examples.

The hon. Member for Waveney said that colleges play an important role around the UK in our skills system and are firmly embedded in our communities. They understand the needs of our local economies, and have played an important role in the development of our local skills improvement plans. Like many other college leaders, Tracy Aust, the principal of West Thames College in Hounslow, who also oversees the Feltham skills centre, has been pivotal in pulling together those voices so that we can better match the skills needs in our local economy with the provision coming through our colleges. That also helps local authorities and other players to develop a deeper understanding of the community learning requirements.

In that context, our FE institutions truly stand as pillars of knowledge and ambition, but they are also beacons of adaptability. They work together to foster an environment that encourages lifelong learning. One of the best parts of my role as shadow Minister is going to colleges across the country to meet and listen to learners and employers. That includes West Thames College and the Feltham skills centre, which do important wrap-around work on employability and mentoring. Logistics apprentices from the Institute of Couriers are in Parliament today to celebrate their achievements. I pay tribute to the chairman of the institute, Carl Lomas, for all he does, with great enthusiasm, including building links and investing in colleges. The apprentices I saw today feel they know him personally. Those relationships and that social capital around our systems are really important.

I have spoken to students studying T-levels, apprenticeships and higher technical qualifications, and adult learners upskilling, at City and Islington College. I have spoken to people working and learning at the National College for Nuclear, and health and aerospace apprentices in Milton Keynes, Newcastle and Liverpool. Last week, I visited South and City College in Birmingham to see the important new facilities for robotics, electric vehicles and so on. This is not just about connecting young people and adult learners with the content of learning, but about giving them hands-on experience with new technologies.

I am launching my colleges tour over the next few months, which will focus on how we are engaging with small and medium-sized enterprises in our communities and what the barriers are. SME apprenticeship levels have been dropping significantly—they have fallen by 49% since 2016—and we absolutely must turn that around.

As a nation, our No. 1 priority is to grow our economy so that we can invest in our public services and greater opportunities for all. To achieve that ambition for growth, we need to invest in human talent to grow our skills and our workforce across all sectors where there are skill shortages. Colleges play an important role in delivering skills for green infrastructure, our creative industries, our life sciences sector, our public services and our everyday economy, including hospitality. All those things require workforces with specialised skills. It is vital that people across our country have pathways into high- quality vocational training, secure, enjoyable work, and opportunities to upskill. I have talked to adult learners who have told me that the qualifications they did five or 10 years ago have left them out of date, compared with those coming through the system now. Given that nine out of 10 adults are likely to need some retraining in the next decade, that will be an important part of all our futures.

Colleges are uniquely placed to deliver on this combined mission of economic growth and improved life chances for all. They provide an exceptionally diverse range of education and training courses to meet the needs of local economies. They are centres of lifelong learning for people of all ages and at all levels, as the hon. Member for Waveney so effectively highlighted. But just as it is important to acknowledge the successes of colleges this week, we must also acknowledge the challenges they face, a number of which were eloquently outlined by the hon. Member.

As examples, apprenticeship numbers have fallen, real-terms funding for the further education sector has fallen to record lows, and vital decision-making powers have been taken away from local communities. The Conservatives have also overseen more than a decade of decline in skills and training opportunities. I say that because apprenticeship starts have fallen by 200,000 since 2017—it is important to recognise the figures. In every region, apprenticeship starts have fallen since 2010, and small and medium-sized enterprise engagement with apprenticeships has fallen by 49% since 2016.

[Mr Robin Walker (Worcester) (Con)]

I am grateful to the hon. Lady for giving way. I apologise to the Chair, as I will not be able to stay to the end of the debate as I have a meeting with the head of the Universities and Colleges Admissions Service to talk about progression and issues of this sort.

With apprenticeships, it is very important that we compare like with like. It is a great thing that all apprenticeships now involve a year of work and a qualification. That was not the case under the last Labour Government.

I want to put on the record my tribute to the Heart of Worcestershire College and the Worcester Sixth Form College, for the fantastic work they do. I commend to both Front Benches the report from the Education Committee on post-16 qualifications, which made a number of recommendations, including increasing the number of youth apprenticeships and setting a target for the proportion of apprenticeships that lead people into work.

[Seema Malhotra]

I thank the hon. Member for his contribution and for sharing the work of the colleges in his area, with which I know he is well connected. I acknowledge his work as Chair of the Education Committee, including on that report.

It is important that we are clear about the figures, but it is also important to recognise that things have got harder, particularly for small businesses, since the implementation of the levy. We need to address those challenges. For level 2 and level 3 apprenticeships, the numbers are falling in proportion to apprenticeships as a whole—these are challenges that the Education Committee has rightly highlighted. It is important to make sure that there are pathways post-16 for those who may not have the same qualifications at GCSE. That is a point I will refer to further in my remarks.

It is also true that the Government are on track to miss the 67% achievement rate, with almost half of apprenticeships not being completed. There are a range of reasons for that. Level 2 and level 3 apprenticeships have seen some of the worst falls; there has been a 69% fall in the number of starts at level 2 and a 21% fall in the number of starts at level 3. In addition, too many young people and adult learners say they are not aware of the opportunities available to them. Colleges have also seen real-terms funding cuts under successive Tory Governments. Since 2010, spending per pupil has fallen by 14% in colleges and 28% in school sixth forms.

Labour will put colleges at the heart of our plans for breaking down barriers to opportunity and boosting Britain’s skills. Central to that is our plan to develop technical excellence colleges, enabling colleges in local skills improvement plan areas to specialise in the particular needs of their local economies and businesses, driven by LSIP priorities. We know that Whitehall does not have all the answers for what is needed in our local communities. That is why we will continue to build on the already begun process of devolving and combining power and budgets for skills and adult education to combined authorities and local areas, so that the right decisions and right priorities are led by those with the most local information, who are in the right places.

These plans will empower FE colleges to take a lead in responding to local needs. We see it as important that we reform the apprenticeship levy to become, in part, the growth and skills levy, giving businesses and employers the flexibility they need to invest in skills and training and to continue to support SMEs to take up apprenticeships, too. An estimated £3 billion in unspent levy has gone to the Treasury since 2019 that could have been spent on more training opportunities for learners and, through that, on training providers too, supporting capacity to grow the sector. The system is not working as it needs to be. Bringing more flexibility is a policy backed by the Manufacturing 5, the British Retail Consortium, techUK, the Co-operative Group, City & Guilds—the list goes on.

It is vital that young people are aware of their post-16 options so that they know which routes are open to them and how to take them. That is why Labour wants to train more thsn 1,000 new professional careers advisers. I recognise the point made by the hon. Member for Waveney about fragmented advice and guidance, but we want to train those new advisers for students in our colleges and schools and introduce two weeks of compulsory work experience for every student to connect them earlier with the workplace.

There are real concerns about the chaotic roll-out of T-levels and the phasing out of many overlapping qualifications among college staff and young people—a serious issue that has been raised with me. The Protect Student Choice campaign estimates that 155,000 students could be left without an appropriate course of post-16 study if the Government go ahead with these plans in this way. That is why Labour will ensure that all students are able to complete their qualifications and will pause and review the proposed removal of courses until we can be sure that these reforms will not prevent young people from pursuing high-quality vocational qualifications.

In conclusion, boosting Britain’s skills will be a national ambition for Labour, led by our new body Skills England, which will help provide that overarching national skills framework, connecting that with regional and local need, and will bring together businesses, training providers and unions to meet the skills needs of the next decade across all our regions. I am proud to say that colleges will be at the heart of that ambition.

[The Minister for Schools (Damian Hinds)]

It is a great pleasure to see you in the Chair, Sir Robert. I join colleagues in congratulating my hon. Friend the Member for Waveney (Peter Aldous) on securing this debate in Westminster Hall on this important subject. He rightly mentioned that he and I have talked about these topics many times over—I think it is fair to say—many years. I know he has a fervent passion for and deep knowledge of the subject, and I thank him for what he does with the all-party parliamentary group on further education and lifelong learning. I join him in thanking and congratulating the Association of Colleges. Like many colleagues, I had the opportunity earlier this week to go over the road—the other side of Parliament Square—to the AOC awards event. It was great to meet an award winner from my local college in Alton and its other campus in Havant, but also to see the huge variety of people benefiting from all that colleges have to offer. Both my hon. Friend and my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) spoke with passion about the importance of colleges and the great work they do in educating and training people of all ages and backgrounds, as well as the key role they play in communities. They rightly talked about the challenges they face, and I do not argue with any of that.

I am the Minister for Schools, but I still know there is no more important subject than colleges. I see every day that we have great schools educating our children, giving them a great education and grounding to take them on whatever path they choose at age 16. Of course, we also have strong higher education institutions, delivering world-class higher education to young people and equipping them with the high-level education and skills they need. We then have further education colleges, which are the filling—if you like—in the education sandwich. Like the best sandwich options, there is a variety to choose from because colleges do just about everything, including all the things I have just mentioned. They do basic skills, English and maths and so-called level 3 provision. More recently, there has been the introduction of T-levels. They do apprenticeships, as we have been talking about, and I will come back to adult learning. As my hon. Friend the Member for Waveney reminded us, FE colleges also do HE, as well as pre-16 provision for certain groups of young people. To cap it all, some colleges even have their own nursery—they are really providing the full range of education. We are not talking about jacks of all trades, because they do not just do lots of things; they do them very well. The latest figures show that approximately 92% of colleges were judged to be good or outstanding at their most recent inspection, which is quite an incredible figure.

The Secretary of State and the Minister for Skills, Apprenticeships and Higher Education visit colleges around the country frequently. I should say, by the way, that the latter would have loved to be here today. He phoned me this morning to say so, and to ask me to pass on his best wishes, in particular in celebration of Colleges Week. He is not able to physically be in two places at once; otherwise, he would have been here. The Secretary of State and the Minister meet staff and students and see at first hand some of the excellent work they are doing, as I have had the opportunity to do in previous roles in the DFE. They are astounded by the range and breadth of high-quality provision on offer in fantastic facilities.

My hon. Friend the Member for Waveney rightly alluded to another key role that FE colleges carry out, which is acting as agents of social mobility. Many learners in FE come from disadvantaged backgrounds, so our colleges are essential for ensuring that individuals from all backgrounds are supported to progress into employment or further learning. It is fair to say that for many years, colleges were unsung heroes, doing fantastic work without ever really getting commensurate recognition for that work. That has changed now, because everybody understands and recognises the importance of what they do. This debate is a great example of that recognition.

The skills agenda, in which colleges play a critical role, is one of my Department’s key priorities. Colleges are delivering our radical skills reforms, helping individuals with basic skills needs right up to challenging the highest performers to reach their potential, raising the stages of technical education through the delivery of apprenticeships and the introduction of rigorous T-levels.

It is easy for us to say that colleges are great, and that we recognise all they do, but we need to back that up with support and investment. That is why we are making major investment in post-16 education, in which colleges play a huge part, with an additional £3.8 billion over this Parliament for education and skills. In particular, throughout this Parliament, we have consistently increased overall funding for 16-to-19 education year on year, including an extra £1.6 billion in 2024-25 compared with 2021-22—the biggest increase in 16-to-19 funding in a decade. FE colleges, like all 16-to-19 providers, have benefited from that investment. We are investing £3 billion in capital between 2022 and 2025 to improve the condition of the post-16 estate, deliver new places in post-16 education, provide more specialist equipment and facilities for T-levels and deliver institutes of technology.

We recognise that the issues colleges are facing are not just about whether they have enough funding and how to make the funding stretch to deliver everything they need to do, but about systems, procedures and bureaucracy. Colleges have told Government that we need to address those things, and we have listened. That is why we have consulted on reforming the further education funding and accountability systems, and last year issued our response. We have committed to simplifying funding systems and creating a single adult skills fund and a single development fund. We have already started delivering on those commitments and will continue this work to reduce the bureaucracy associated with funding. We have set out a much clearer approach to support an intervention for colleges, and will also remove duplicative data collection and take steps to simplify and improve audit. All these things will help to minimise burdens on colleges and let them focus their efforts on delivering that excellent education and training.

Of course, FE would not be what it is without teachers and teaching. The quality of teaching and leaders is the biggest determinant of outcomes for learners, and that is why we are investing £470 million over the financial years 2023-24 and 2024-25 to support colleges and other providers, and to address key priorities, including on recruitment and retention. That funding has already fed through to colleges and other providers via increased 16-19 rates and programme cost weight increases from last September.

It is part of a wider programme to support the sector to recruit excellent staff. That includes a national recruitment campaign to strengthen and incentivise the uptake of initial teacher education, teacher training bursaries and the Taking Teaching Further training programme. We also announced £200 million to improve teacher recruitment and retention by giving those who teach key shortage subjects a payment of up to £6,000, tax-free, per year in the first five years of their career. For the first time, that applies to those teaching eligible subjects in all FE colleges.

Let me turn to some of the comments made by the hon. Lady who speaks for the Opposition, the hon. Member for Feltham and Heston (Seema Malhotra). This debate has not been primarily party political, and nor should it be. We are celebrating Colleges Week, and that is something on which colleagues right across this House agree. I welcome a number of the things that the hon. Lady said, but there are a couple that I cannot quite let go, particularly on the subject of apprenticeships.

My hon. Friend the Member for Worcester (Mr Walker) was quite right in saying that, if we are going to talk about apprenticeships, we must talk like for like. I am afraid that, before 2010, there were some people who, when asked about the quality of their apprenticeship, did not know that they were on an apprenticeship. We have changed that and underpinned the apprenticeships programme with guarantees of quality: the minimum length of the course; the minimum amount of time in college; the creation of the Institute for Apprenticeships and Technical Education; and, critically, employer-designed standards. That has made a very solid set of very high- quality apprenticeships. I would urge the hon. Lady and her party not to pursue the plans and policy that they appear to be—not to undermine those apprenticeships or have fewer of them, and instead create a new quango.

[Seema Malhotra]

I thank the Minister for his comments, and we do not need to get into a debate today—there are many other opportunities for that. He is right that it is important that we do not create dividing lines where we do not have them, in an area that needs both stability and long-term planning, but I want to challenge him on the point he has made. It is true that apprenticeships starts have fallen, and I am not saying that we have not also supported some changes through the passage of time. However, we all know that there are challenges, such as employer involvement in start-ups, employer fatigue due to the difficulties with the current apprenticeship system and the drop in SME engagement, and it is really important that the Government acknowledge those challenges.

It is also important not to misrepresent Labour’s call for a reform where employers, if they so chose, could spend up to 50% of their apprenticeship levy more flexibly. Too much of that levy is being returned to the Treasury because employers are unable to spend it on any learning. For most employers, the reform would not make much of a difference because they are only able to spend about 50% of their levy, and that would not change. Perhaps the Minister might also know that, if we see more growth in the economy, we will also see more of the levy coming in and greater apprenticeships there too.

[Damian Hinds]

Again, let us not have a party political debate—that is not the nature of this discussion today. I can absolutely assure the hon. Lady that I have not misrepresented the Labour party’s policy in the slightest. She then went on to repeat it, which is to say that there would be less money guaranteed to be available for apprenticeships. That would surely lead to a move away from those high-quality apprenticeships that I mentioned. I understand the attraction of voices saying that the levy is not a good way of doing things, but I have to tell the hon. Lady that it addresses a fundamental problem—

[Seema Malhotra]

Will the Minister give way?

[Damian Hinds]

Absolutely, and I will come back to the fundamental problem in a moment.

[Seema Malhotra]

I thank the Minister again, but I think he does not fully understand the Labour policy and that may be because he has not engaged with it in detail. The point on the growth and skills levy is that the opportunity to spend on more modular courses and more flexible learning, creating the opportunity to build qualifications through more modular approaches, could support more engagement with learning and contribute to a reduction in the early ending of apprenticeships, where the targets of apprenticeship completion are not even being met. That is a real issue.

[Damian Hinds]

I assure the hon. Lady that if there is any misunderstanding about the Labour party’s policy, it is not because people have failed to engage with it; it is because it is not clear—and one great benefit of our apprenticeship system is that it is clear. The approach of the apprenticeship levy resolves one of the fundamental questions of investing in human capital, training and people, which is the so-called free rider problem.

For many years, some employers invested strongly in their workforces and then some of the members of those workforces, after a couple of years of training, would get up and go to the competitor. The levy is precisely to make sure that the whole of our economy and the whole of industry has a like interest in developing those skills and developing investing in the potential of people. I advise the hon. Lady to be careful in deciding to get rid of that and replace it with a new and unneeded quango.

I turn to my hon. Friend the Member for Harrogate and Knaresborough, who also spoke about the centrality of apprenticeships and the quality of them. He spoke about the importance of colleges to the whole local economic area. I too represent an area with a particularly low level of unemployment, even though unemployment across the country is low compared with historical norms—it is at slightly less than half the level it was when I and my hon. Friends the Members for Harrogate and Knaresborough and for Waveney came into Parliament in 2010.

Particularly in areas of even lower unemployment, however, skills matching becomes vital for the local economy. I also join my hon. Friend the Member for Harrogate and Knaresborough in congratulating both Harrogate College and the Luminate Education Group on their work on the renewable energy skills hub. That is a great example of colleges being future-looking, forward-looking and innovative, making sure we are equipped with the skills for the future and creating facilities that contribute to that.

I come now to my hon. Friend the Member for Waveney, who has brought us to this Chamber today—and we are all grateful to him for doing so. He listed some of the several ways in which colleges are vital to our economy and society. He too spoke of the importance of colleges in their local communities. He reminded us that that is about people of all ages—including those who might not have had that great an experience coming through education the first time, who can have another chance, and those who had a fantastic experience the first time around, who can further develop their skills. It is also about the jobs of tomorrow and making sure we can continue to adapt and that in so doing we offer social mobility to people throughout the country.

My hon. Friend also talked about productivity, which is so important here. We know that there has long been a big productivity gap—since the year I was born and beyond, and I am 54—between this country and the United States and Germany in particular. It has improved, but it is still a gap and we need to move further. Making sure we can match skills to where they are needed and hone those skills is incredibly important.

My hon. Friend also spoke about the importance of colleges themselves as big employers in local areas, and we should never forget that. He also discussed the importance of working with employers, a subject also covered by our hon. Friend the Member for Harrogate and Knaresborough. In particular, I note the work of Suffolk New College in leading on the local skills improvement fund for my hon. Friend the Member for Waveney’s area. Indeed, I pay tribute to all three colleges serving his local area—East Coast College, Suffolk New College and West Suffolk College.

We are getting close to a fiscal event, and my hon. Friend quite rightly put in his Budget bids, which will have been heard. He also talked about some of the progress made. I agree that the value of the Baker clause is not just what it does directly, but the symbolism and the message it gives that all children should know about the full range of what is available to them at the age of 16. Some of those children will be better suited to going to a school sixth form, some will be better suited to going to a sixth form college and some will be better suited to going to an FE college. Some will be better suited to a largely academic route and some will be better suited to a technical and vocational route. Having those options made known at a suitable time in that journey is really important.

There are also T-levels. Of course, colleges are not the only places that deliver T-levels, but they are at the centre of that great reform. They offer more hours in college and bring English, maths and digital skills right into integration with the core vocational subjects and, crucially, the nine-week or 45-day industrial placement. When I meet employers or young people who have done T-levels, that is the thing they always talk about the most: the opportunity to apply what they learn in college directly in a workplace and develop the workplace skills that we know are so valued by employers. By the way, they bring an opportunity to see a young person in action in the workplace for an extended period.

There are the higher-level technical qualifications and the advanced British standard, which is in development now. My hon. Friend the Member for Waveney was quite right that we are developing that landmark reform to remove fully the artificial divide between the academic and the vocational. In doing that, we need to start investing now—and we are investing now. That is such an important point to make, and it is understood across Government.

When people think about a college, probably the first thing that comes into their head is a picture of a building, but my hon. Friend and I, and everyone here, know that it is all about people. That is why those investments in people are so important, including the extension of the levelling-up premium to further education colleges for the first time. The Teach in FE recruitment campaign is running, and there is the Taking Teaching Further programme. We know that there is a particular importance to, and sometimes a challenge in, getting people with recent industrial experience—those “on the tools”—into college to impart those skills onwards. There are FE teacher training bursaries worth up to £30,000, depending on the subject, tax-free, in the academic year 2024-25.

I will close by thanking everybody who has taken part in this debate, particularly our hon. Friend the Member for Waveney for tabling it and convening this important discussion. It was informative to hear from him and others about local issues, successes and, of course, how much we value our colleges—“Love our Colleges”, to coin a phrase from Colleges Week. The one clear thing coming from this debate is that we all recognise the importance, value and role of our colleges, as the strapline that I just mentioned makes clear.

I have set out how we are backing our recognition of colleges through investment and support by increasing funding, investing in facilities and estate, reforming accountability and funding to reduce burdens and investing in programmes to support and boost the further education workforce. I hope and believe that those things will benefit colleges and support them to deliver. I know that we ask colleges to deliver a lot these days, but that is because we know that they can and do deliver incredibly well.

Education

Seema Malhotra Excerpts

Thursday 29th February 2024 Ministerial Corrections

[Gillian Keegan]

… As I said in answer to the earlier question, there is a golden thread of high-quality teacher training reforms. We will be looking at a revised framework and working with providers so that they can ensure that the contracts deliver the very best support for teachers. What will be vital, and something that Members will feel, is the addition of up to 7,000 early years SENCOs that will be trained in the coming years.

Degree-level Apprenticeships

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Next week is National Apprenticeship Week, and I look forward to celebrating apprenticeships across the country. As the Secretary of State knows, small and medium-sized enterprises are crucial to delivering high-quality apprenticeships at every level throughout our economy, but the number of SME apprenticeships has plummeted by 49% since 2016, and research shows that the levy is failing to reverse the decline in employer training more widely. The Secretary of State pretends that everything is fine, but is not the real answer to back our businesses, giving them greater flexibility to enable them to deliver the training that we need to get our economy growing again?

Access to Education: South-East Northumberland

Seema Malhotra Excerpts

Wednesday 21st February 2024 Westminster Hall

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is a pleasure to serve under your chairship today, Mr Henderson. I am grateful for the opportunity to speak in this debate on behalf of my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell).

I want to start by congratulating my hon. Friend the Member for Wansbeck (Ian Lavery) on securing this very important debate about access to education in his constituency and across south-east Northumberland. The issues he raised in his speech will resonate with Members of Parliament across the country in relation to their own communities. He speaks with passion and eloquence about the difficulties faced by children, their families and schools in his region. I pay tribute to him for his passion in speaking up for the needs of children and young people in his constituency and the quality of their education. He has focused on parental choice and engagement, recognising that barriers to learning and engagement are having a real impact. There are consequences of structural and other policy changes within our public services and education system on opportunity and equality. He speaks with a deep knowledge of the circumstances in his local area, and what has resulted from how changes have been made.

The reality is that children, students, teachers and parents in south-east Northumberland and across the country have been let down in cumulative ways by the many failures of the Conservative Government over the last 14 years, in our schools as well as in our infrastructure. Councils and their budgets have also been stripped to the bone, which has reduced their capacity and resilience.

My hon. Friend raised the concerning issue of parents and children not getting the schools of their choice. I think we all recognise that parental choice in education is important. As my hon. Friend set out in relation to the case studies he highlighted, issues can arise when year groups and friendships are split up, and children sometimes have to travel much further just to attend school. It is concerning to hear of students in his constituency who have been left out of education because of a lack of choice. I know that the Minister will be sympathetic to some of the challenges that have been outlined, and will give the Government’s response on what can be done for those students.

Let me turn to the main areas of concern for my hon. Friend the Member for Wansbeck. Because of fragment-ation in admission policymaking, some schools have policies that effectively can prioritise high-achieving students and exclude disadvantaged pupils. It is important to ensure that there is more democratic control and oversight over the admissions system. That is why Labour wants to require all schools, including academies, to co-operate with their local authorities on pupil admissions and place planning, and ensuring fairer access and greater certainty for children and their families. I look forward to hearing from the Minister on that; I am sure that there are points he will want to raise.

My hon. Friend the Member for Wansbeck also discussed, extremely effectively, other issues that affect access to education in south-east Northumberland. He referred to the difficulties faced by students with special educational needs. We know that the system isn’t working, and he set out the impact on families of not getting the support that they need. Issues around special educational needs and disabilities need to be a much greater priority for the Government. In all our constituencies, the system is beyond breaking point. Too many families face an uphill battle for the support their children need. It is often a battle that must be fought multiple times across a child’s school life—for support in primary school, to find the right secondary school and ensure that support is in place, and for places and support in further or higher education.

That creates huge pressures on the system, as we have seen across Northumberland and throughout the country. In councils across the country, SEND has been cited as contributing to the issuing of section 114 notices. Local authorities are struggling to balance their budgets, with reduced resilience in their finances for all sorts of reasons. Indeed, more is coming to light about the impact on council finances of the Budget of the former Prime Minister, who was in office for just over 40 days.

What has the Government’s response been? A review of SEND provision was announced in 2019 but delayed three times, and much of the SEND and alternative provision improvement plan will not come into effect until next year—six years after it was announced. The Minister may want to enlighten us as to whether any of that will be brought forward. It is desperately needed in all our communities.

Let me say a few words on child poverty, which my hon. Friend the Member for Wansbeck highlighted alongside the cost of living crisis. The impact of child poverty on access to education in south-east Northumberland and across the country should concern us all. The challenges that children face at home do not stop at the school gates, and the extent of poverty in the north-east is appalling. The impact of that is demonstrated in the fact that some leave school without any qualifications at all.

Indeed, in the north-east we have seen the steepest rise in child poverty anywhere in the UK: almost 190,000 babies, children and young people now live below the poverty line. We hear about dedicated people across our education system going above and beyond every day for our children—for those who do not have books to read, pens to draw with or enough food in their bellies when they go to school. Of course, it is the Government’s role to break down those barriers, but their decisions often make the barriers higher. The previous Labour Government were laser-focused on tackling child poverty, and the next Labour Government will be too.

We also know about the challenges of persistent absence in our schools. Across the autumn and spring terms, more than one in five children were persistently absent from school—more than double the number just five years ago. The Education Secretary continues to claim that absence is her No. 1 priority, but in the north-east there has been a huge increase in the number of children missing days of education: between 2016 and 2022, there was a 169% increase in the number of children in Northumberland missing half their lessons, and the figures are starker yet in Sunderland, Newcastle and County Durham. It is just not good enough.

My hon. Friend the Member for Wansbeck also raised the devastating impact of school funding cuts in his constituency. Official figures show that, thanks to the Conservatives, per-pupil spending in schools will recover to 2010 levels only in 2024-25. Those are 14 lost years. If the Minister is not familiar with those official figures, he may want to look at them, because that is the case. I have heard from school students in my constituency who have been left without a maths teacher for an entire year, as teachers are leaving the profession. Young people told me last week that, due to teacher shortages, English class sizes have doubled, because classes have been combined, and they take place in the school hall.

I want to say a word about access to post-16 education, because the decline of accessibility in education under the Conservatives is not just limited to schools. Under their watch, apprenticeship starts have plummeted by more than 200,000. In the north-east, starts have fallen by 45%, and in Wansbeck by almost 40%, since 2010. Schools and colleges seem to be an afterthought, but they will be at the heart of the next Labour Government’s mission to break down barriers to opportunity at every stage. We will recruit 6,500 more teachers across our schools, because the shortage of teachers is impacting the way schools are able to recruit, provide subjects to ensure a wide curriculum, and expand their offers. To create opportunity, we will recruit 1,000 new careers advisers and introduce two weeks’ work experience, which will be vital in bridging the gap between education and employment. That is so important for the quality of education that all young people receive.

The Labour party wants high and rising standards in all our schools and across all our communities, so that every child everywhere gets the chance to thrive and benefit from the opportunities that flow when they have access to the best education available. That must apply not just to some schools and some children, but to every child in every community.

I am grateful to my hon. Friend for his speech and for outlining the issues in his constituency, which are reflected in constituencies across the country. That is why the next Labour Government will be focused on breaking down barriers to opportunity in south-east Northumberland and across the country.

[The Minister for Schools (Damian Hinds)]

It is a great pleasure to see you in the Chair, Mr Henderson. It is an auspicious day: I believe it is your maiden chairing of Westminster Hall, and it is a privilege for us all to be part of it.

I congratulate the hon. Member for Wansbeck (Ian Lavery) on his passionate and comprehensive remarks about access to education in his area. The Government are committed to ensuring that every child in the country has a first-class education and every opportunity to make the most of their abilities. We are also committed to ensuring fair access to a good school place for every child, including the most vulnerable. That is why we have taken steps to ensure that schools allocate places in a clear, fair and objective way.

As the hon. Gentleman knows, all state-funded schools, including academies, are required to comply with the school admissions code. In 2021, a new code came into effect, which aims to improve access to school for vulnerable children and to reduce any gaps in their education. The latest data available show that the admissions system is working well. Nationally, in 2023, 94% of parents received an offer of a place at one of their top three preferences for secondary schools, and 98% an offer at one of the top three preferences for primary schools. That matches 2022, so we are maintaining that high level.

Anyone who thinks a school’s admission arrangements are unlawful or unfair can object to the schools adjudicator. The adjudicator’s decision is legally binding. If a school fails to meet its statutory duties, it can be directed to do so by the Secretary of State. I understand that the hon. Gentleman and his constituents will be concerned when children and young people are unable to attend the parents’ preferred choice of local school. The Department works closely with local authorities and admissions authorities on those matters.

Overall in 2023, in Northumberland 99% of parents received an offer at one of their top three preferences for secondary, and 93% were offered their first preference. That compares with 94% nationally for top three and 82.5% for first preference. So, the Northumberland rates are above the national average. As he will know, academy trusts are their own admissions authority, but we do expect local authorities and schools, academy trusts and diocesan authorities to work together, to ensure there is a co-ordinated approach, which helps local authorities to meet the duty on place sufficiency.

I do, though, recognise the frustration of parents and carers living in south-east Northumberland, who may now be less sure of their child’s chance of accessing a place at their school of choice, due to the academy’s change of admissions criteria in 2020, which considers distance from the academy rather than attendance at specific feeder schools, as the hon. Gentleman rightly identified.

Distance is not an uncommon criterion; in fact it is very commonly used for admissions. It does ensure that children living close to the school can access their local school and avoid travelling longer distances. Data provided by the local authority indicate that the number of year 7 pupils in the area will decrease over the current forecast period, up to 2029. To provide wider background for colleagues, there is a general effect going on in the demography of the country. It is not the same everywhere; there are different patterns in different communities.

There has been a bulge—not the most elegant term—of pupils coming through primary school who are now going to secondary school. The secondary school will initially grow, and primary numbers overall will tend to come down somewhat. Over time, that effect will work its way through secondary school as well. The long and the short of that is to say that one would expect that in year 7 admissions those numbers will change over the years.

The local authority is reporting that there are sufficient physical places to meet demand. I do accept that, in some cases, those would be places lower down in preference, due to established patterns of travel, the over-subscription criteria of some schools, or where a school is continuing its improvement journey. We will do all we can to speed up that improvement, so that there is genuine choice in local areas.

The hon. Gentleman asked me to reflect on and respond to some specific points, some of which I have covered in my remarks already. I would say overall on school choice, all parents want the best for their children. In any system where there is school choice, not quite everybody gets their first, and that is a by-product of that choice. As was the policy of the previous Government prior to 2010, we also believe that parents having that choice to rank their preferred schools in order carries great benefits, including for families and children themselves.

The hon. Member asked specifically about housing development. Local authorities make projections of birth rates and the expected effect of rates of housing development, depending on the type of housing, how many families with children there are likely to be and the likely age of those children. I am sure that his authority in Northumberland will do that as well.

The hon. Member referred to PANs, and schools can and do change PANs over time. He is right to identify that in the particular case that we are talking about today, those admission numbers were reduced. That was part of the school improvement plan to give greater headroom. As he rightly said, that improvement has been happening in those schools and we have been seeing better results. I gather that the trust has also been allowing some admission over the PAN, which has been of some assistance.

The Opposition spokesperson, the hon. Member for Feltham and Heston (Seema Malhotra), took the debate into wider areas beyond just south-east Northumberland, which gives me an opportunity to respond to some of those points, so I am grateful to her. She mentioned having to provide for school choice, and I agree entirely. That is why we have created over a million new places in the school system since 2010, specifically to make sure not only that there are adequate numbers, but that school choice is facilitated. That stands in contrast to the 100,000 that were cut in the years leading up to 2010. There is now the highest funding that there has been in schools.

The hon. Lady spoke about attendance, and she is right to identify that we have an issue with school absence, and particularly persistent absence. By the way, we share that issue with most other countries in the world. We certainly share it with the other countries in the United Kingdom, including where other political parties are in control, but we see this much more broadly. During covid, there was an adverse impact on some people—not just directly connected with covid, but in its aftermath—and that has been difficult to work through. That is very understandable and no one is blaming parents for it, but some attitudes to the threshold at which a child should stay home from school if they are under the weather have moved a bit. We are trying to change those attitudes back to where we were pre-covid, and there has been progress. If we look at the autumn term that just finished, absence was markedly lower than it was in the autumn term a year before, but we know there is further to go and we will continue to work on that.

The hon. Lady also mentioned wider questions around society, income levels and the effect on children. She will know that we have extended eligibility for free school meals much more widely than the previous Government did. When her party was in government, one in six children received free school meals, but it is now one in three. That comes at a time when the number of children in workless households has come down markedly—by 600,000 since 2010—and at a time when the proportion of those in work who are on low pay, as a result of the national living wage, has come down very significantly as well. We have also invested heavily in breakfast clubs, holiday activities, food funds and more.

We have made five major extensions to early years and childcare entitlement, and there is a sixth very big extension on its way. In higher education, the opportunities for people from lower income backgrounds to attend university are greater than they have ever been.

The hon. Lady even touched on apprenticeships, which I was surprised about. Apprenticeships have been totally overhauled and reformed. We have modern apprenticeships designed by employers with proper end assessments. We have introduced T-levels with a very substantial, industrial work placement at the centre of them, with English, maths and digital and more hours in college. Again, that is designed and certified by employers. Those are materially increasing the life chances of children taking vocational and academic routes.

We see the results in such things as the PISA—programme for international student assessment—comparisons of international performance in education. In the period from 1997 to 2010, although ostensibly results domestically looked like they were improving, on the international comparisons we were coming down. Since 2010, we have come back up—

[Seema Malhotra]

rose—

[Damian Hinds]

I would be delighted to hear from the hon. Lady.

[Seema Malhotra]

I do not propose to come back on all the points that the Minister has made, but the poverty and the challenges of the cost of living crisis and the sustained impact of austerity are having a huge impact on children and families. The impact has been cumulative over many years. Apprenticeship numbers have been dropping since 2017, with the impact of the levy that was implemented, and the engagement of small and medium-sized enterprises with apprenticeships has dropped by 49% since 2016. Those are official figures. Does he agree that it is important, in terms of a good-quality education, that we look at the sustained engagement of employers and tackle the barriers? It is important to recognise that they exist rather than pretending that there is not a problem.

Oral Answers to Questions

Seema Malhotra Excerpts

Monday 29th January 2024 Commons Chamber

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Next week is National Apprenticeship Week, and I look forward to celebrating apprenticeships across the country. As the Secretary of State knows, small and medium-sized enterprises are crucial to delivering high-quality apprenticeships at every level throughout our economy, but the number of SME apprenticeships has plummeted by 49% since 2016, and research shows that the levy is failing to reverse the decline in employer training more widely. The Secretary of State pretends that everything is fine, but is not the real answer to back our businesses, giving them greater flexibility to enable them to deliver the training that we need to get our economy growing again?

[Gillian Keegan]

Absolutely. Obviously, one reason for the reduction in some of the SME numbers is the fact that we made improvements to ensure that every single apprenticeship was of high quality. I want to make sure that all young people who embark on an apprenticeship, as I did, put their trust in the system and get what they deserve. We have removed the limit on caps on SMEs, and we are working on reducing the number of steps to make it easier for them to access the system. We are also looking at what more we can do: we are focusing on a number of ways in which to ensure that apprenticeships work well for SMEs, which account for 70% of employment.

Foster Carers: Allowances and Tax Arrangements

Seema Malhotra Excerpts

Monday 15th January 2024 Westminster Hall

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

It is a pleasure to serve under your chairship, Sir Graham, to debate this important petition on foster care allowances and support for foster families. I am standing in for my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), who is travelling back from a memorial service abroad and is very sorry to miss the debate.

I thank the hon. Member for Linlithgow and East Falkirk (Martyn Day) for opening the debate so powerfully on behalf of the Petitions Committee, and the more than 13,000 people, including those from my constituency, Feltham and Heston, who signed the petition. I also thank all our foster carers across the country, including in my borough of Hounslow.

Foster families provide a loving home for 68% of looked-after children in England. Foster caring can be challenging but also very rewarding, and it can be absolutely transformative for vulnerable children. Fostering relationships can last long beyond the duration of a placement, giving some of our country’s most vulnerable children lifelong, stable and loving relationships too. I am grateful to FosterTalk and the Fostering Network for their tireless support and campaigning on the impacts of the cost of living on foster families and the children they care for.

We have heard today about the enormous challenges facing foster carers. I thank my hon. Friend the Member for Stretford and Urmston (Andrew Western) for his speech, in which we heard the story of Emma from his office and the change in support that she has experienced over the last decade. He also referred to the ongoing recruitment and retention challenges, which I will comment on further.

Fourteen years of Conservative government has stripped away vital family support, shifting the focus of children’s services to providing an emergency service rather than early intervention to help families stay together. The cost of living crisis has pushed so many families into hardship, but foster families, who have been undervalued for many years, have been impacted particularly hard. FosterTalk’s 2022 survey, which the hon. Member for Linlithgow and East Falkirk referred to extensively, found that 92% of foster carers feel financially worse off, and 18% have been pushed into debt in recent years. Reference was also made to the use of food banks. Some 66% of carers have been forced to cut down on their heating to cope with soaring energy costs, and 38% feel that their mental health has been affected due to the increase in the cost of living.

The Government set the national minimum allowance for foster carers annually in April. The increases in April 2023 and the planned above-inflation increases from April 2024 are very welcome, but it is essential that the funding actually reaches foster families. Across the country there is a postcode lottery, with some fostering services paying families significantly below the national minimum allowance. The Fostering Network has found that some services significantly underfund the allowance for an 11 to 15-year-old, for example, by as much as £2,333 per year. I hope that the Minister can update us on what he is doing to ensure that all services offer at least the national minimum allowance, and to ensure proper monitoring of that allowance across the country.

It is important that support for foster families reflects the impact of the last two years on family finances. Although the headline rate of inflation may have fallen, let us remember that food inflation remains high, at more than 9%, while the Government’s mismanagement of the economy has hammered households with rising mortgage and rent costs. The Labour party will always put children and families first. We have already set out plans to help address the cost of living for families. Just some of the costed measures we have announced include acting now to ensure that every family caring for a primary-aged pupil has access to a free breakfast club, and limiting the number of costly branded school uniform items to save families hundreds of pounds through a child’s time at school. What assessment has the Department made of the specific impacts of rising costs on foster families?

The hon. Member for Linlithgow and East Falkirk talked powerfully about the urgent crisis in recruitment and retention of foster families. Worryingly, more than four in 10 foster carers are thinking of leaving fostering. At the same time, fewer and fewer households are registering to become foster carers, and the conversion rate of people who express interest in fostering to actual foster carers is vanishingly small.

We also need diversity in our foster carer network so that families have options for closer matches to their cultures, foods or faiths, which helps a child to feel settled at an anxious time. The Department’s own figures show a 26% decrease in newly registered households since 2019. The same figures show more households leaving fostering during the year than joining, at a time when the number of children in care continues to increase. Without the right placements, more children will end up being placed in homes that do not meet their needs. In 2021, all but six local fostering services reported a shortage in the number of carers they need for their local population.

There is an urgent need for more foster carers who can look after teenagers, large sibling groups, children with complex needs, and children with special educational needs and disabilities. Foster caring is more than simply opening a home to an additional child; it requires skill and dedication. Looked-after children are more likely than other children to have experienced a severe trauma in their lives, such as bereavement, abuse or neglect, and foster carers need to have a good understanding of a wide range of needs.

In response to the independent review of children’s social care led by Josh MacAlister, the Government committed to a nationwide recruitment and retention programme for foster carers. When does the Minister expect to be able to update the House on the progress of pathfinder areas and plans for any wider roll-out across the country?

The challenges facing foster carers and the children they look after must be placed in the context of the wider crisis in children’s social care. The number of children entering the care system continues to rise, but the Government have eroded the support that they need. More than 1,300 Sure Start centres have closed since 2010, while the funding offer to local councils for children’s services has fallen by an estimated 24% since 2010.

Perhaps the Minister will point towards his Department’s family hub programme, but he cannot escape the fact that that programme is funded in only half of all local authority areas. The high turnover in children’s social workers and the loss of experienced staff are creating uncertainty for foster families and those applying to foster. At the same time, the 10 biggest providers of children’s homes and private foster care placements are raking in huge profits from public money, more of which should be spent on the wellbeing of vulnerable children.

Foster carers are a vital part of our children’s social care system. They provide a loving and safe home to tens of thousands of children across the country, but they urgently need better support and recognition for their wider role. I hope that the Minister will set out how the Government will act quickly to ensure that all foster carers are better supported, so that more people who are able to offer a stable and loving home to vulnerable children can be urgently encouraged to take up the very important role of being a foster carer.

Oral Answers to Questions

Seema Malhotra Excerpts

Monday 11th December 2023 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Shockingly, results last summer revealed that one in three students dropped out of their T-level course, which is higher than for earlier cohorts. Something is going very wrong. In April, the Education Committee raised major concerns about T-level roll-outs, regional variations and falling employer engagement. Access to opportunity really matters, so should the Minister not now pause and review the defunding of alternative qualifications, as Labour would, and urgently bring forward the 2023-24 T-level action plan in order to address concerns raised by the Select Committee and Ofsted and bring much-needed clarity and support for colleges, employers, parents and students?

[Robert Halfon]

Not content with being in the anti-apprenticeship party, given her plans to weaken the apprenticeship levy and halve the number of apprenticeships, the hon. Lady is also taking on the mantle of T-level denier. We have 18 T-levels; we have, as I mentioned, a 90.5% pass rate; we have 10,000 students doing our T-level programme; and we expect the data that we will release early next year to show that many thousands more students are doing the T-level programme. I am very proud of our T-level programme. I know that the hon. Lady will be eating mince pies at Christmas, but I suggest that early next year she may be eating humble pie, because our T-level programme is something to be proud of.

Apprenticeship Levy

Seema Malhotra Excerpts

Wednesday 22nd November 2023 Westminster Hall

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

I pay tribute to the hon. Member for Stoke-on-Trent North (Jonathan Gullis) for securing this debate. I know he cares deeply about the issue; his experience and expertise certainly came through in his speech.

I also acknowledge the contributions from other Members, particularly the hon. Members for Strangford (Jim Shannon) and for Waveney (Peter Aldous) and the right hon. Member for Suffolk Coastal (Dr Coffey). It is interesting that there almost seems to be a consensus that there is a need for some reform and refinement of the system. The issues raised have included access for people who may be from more disadvantaged backgrounds or who may not have the standard qualifications; access for SMEs; the need for flexibility; the potential for shorter courses; the retention of apprentices after their apprenticeship starts; making sure that people are able to complete their apprenticeship; and recognising that this is a mode of work and study that seems to be catching on with the older generation, as the right hon. Member for Suffolk Coastal commented. The oldest apprentice I have heard about was 73 years old.

I also recognise the work of the Association of Colleges and the all-party parliamentary group on further education and lifelong learning, which the hon. Member for Waveney leads. He made a very important point about the need to respond to changes in the economic landscape. I hope that I will be able to address a number of those issues in my remarks.

Labour believes that apprenticeships are a gold standard in skills development, incorporating both on and off-the-job training. Apprenticeships are transformative for social justice, career progression and business growth. Of course, the greatest advocates for apprenticeships are apprentices themselves. UCAS recently reported that 63% of apprentices were likely to recommend the training route to others. Research by the apprenticeship provider Multiverse found that 78% of businesses that hire an apprentice say that it has a positive impact on their organisation.

As shadow skills and further education Minister, and before, I have appreciated meeting and hearing from apprentices in different sectors around the country and learning from their experiences. That includes those in my constituency, those working at Heathrow, those on nursing apprenticeships at Hugh Baird College in Liverpool, and those at the Newcastle Aviation Academy, which I visited last week. They have told me how life-changing apprenticeships are and how they allow people to earn while they learn, give them specialist skills and empower working people, their regions and the country’s economy at the same time as teaching valuable employability skills and giving important workplace experience. At the same time, they support the employer’s development of the workforce, closely aligning training with skills needs.

The Labour party knows that apprenticeships are one of the most valuable tools we have to break down barriers to opportunity and shatter the class ceiling. Right now, the way the apprenticeship levy works is letting down working people, our businesses and our economy. The Conservatives have overseen a decade of decline in skills and training opportunities. Businesses are unable to fill job vacancies, and are held back by a lack of people with the skills they need. The Tories’ failure on skills is holding back our economic growth.

Apprenticeship starts have plummeted, with 200,000 fewer people starting these training opportunities. Since the introduction of the levy, intermediate apprenticeship starts have been slashed by 69%. Seven in 10 students miss out on professional careers advice, making it even more difficult for young people to discover pathways with good prospects, such as apprenticeships. At the same time, employers have surrendered more than £3 billion to the UK Treasury since 2019 in apprenticeship levy cash that they were unable to spend. According to the Government’s own findings, more than one in 10 employers report at least one skills gap.

Research by City & Guilds and the charity the 5% Club early this year found that a staggering 96% of businesses wanted to see a change to the levy, with just 4% of employers spending their full apprenticeship levy funding. SMEs have been hit hard, with apprenticeship starts in small businesses down 35% since the introduction of the levy. New data also shows that less than one in 50 apprenticeship starts in the past academic year were funded through transfer from levy-paying organisations to smaller businesses.

Today, the Government announced £50 million more investment for apprenticeships, in a pilot with Make UK and others. Investment in apprenticeships is always welcome, but I await more details. Perhaps the Minister will have some. We do know that £50 million does not scratch the surface of the £3 billion handed back to the Treasury. It is important to understand what these new pilots will address.

Just this week, there were announcements of levy reform at a time when we have the botched reform and defunding of the level 2 and level 3 qualifications, as well as a decline in apprenticeship starts. That is an issue, because our number one priority as a nation must be to grow our economy and to achieve the higher living standards and better public services that our constituents deserve. That requires investment in skills.

We have a proud record on boosting skills and training opportunities. We removed the age cap of 25 on apprenticeships, and ensured that work experience was compulsory for every student. Boosting Britain’s skills will similarly be a national priority for the next Labour Government, led by a new national skills body, Skills England, bringing together our regions, businesses, training providers and unions to drive the ambitions and skills of our industrial strategy and green prosperity plan. That is why we will also transform the apprenticeship levy into a growth and skills levy. Under our proposed system, companies will have the freedom to use up to 50% of their total levy contributions on non-apprenticeship training, with at least 50%—or 100%, if they wished—reserved for apprenticeships. SMEs that do not pay the apprenticeship levy would continue to receive 95% co-payments. We believe that that would give businesses the flexibility that they are asking for and would allow them to train their workforce, deliver growth, create modular skills in priority areas such as green skills, digital skills, social care and childcare and create functional skills and pre-apprenticeship training. It would tackle key skills gaps that hold back individuals and organisations.

The Minister will be well aware of the calls across business and education for greater flexibility in the levy, but let me remind him of some of them. The Manufacturing 5 have called for more flexibility. During National Apprenticeship Week, the British Retail Consortium, techUK and others called for more flexibility. Calls came from the Co-operative Group and City & Guilds in February, the British Chambers of Commerce and Superdrug in August, and the Chartered Institute of Personnel and Development in October. Despite the Government’s best efforts in recent days to resist reform through a couple of half-hearted calculations about our policy, the chief executive of the Learning and Work Institute said that the Government’s analysis was

“pretty simplistic and we need a bit more of a nuanced analysis.”

Opportunity for all, skills for business, and growth for our regions and our country—that is what lies at the heart of our reforms. What a contrast they would be with this Government. We plan and will build growth from ordinary people, for ordinary people. We will back young people by expanding opportunities and boost Britain’s skills to meet the economy’s needs over the next decade. That is how we will get Britain’s future back.

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[Robert Halfon]

I would be very happy to write to the hon. Gentleman, and I respect the thoughtful way he set out his remarks today.

The hon. Member for Feltham and Heston quoted organisations that do not like the levy. I have a whole list of businesses that do like the levy and use it brilliantly. Virgin Atlantic has used the levy extensively.

[Seema Malhotra]

It was a call for flexibility. It is not the case that they do not like the levy.

[Robert Halfon]

That is a fair point. I just want to point out that many businesses not only support the levy and have used it effectively, but recognise the flexibilities that we have introduced. For example, Virgin has created an apprenticeship programme that attracted 500 engineering apprenticeships alone. I think the apprenticeship levy is like the Ronseal advert, which is one of my favourites: it does what it says on the tin. As I said, 98% of the apprenticeship budget was spent in the last two years. It is clear that employers understand this message well.

I know the value of apprenticeships to young people and under-25s. As I say, they continue to make up over 50% of starts, and just under 70% of starts are at levels 2 and 3. It is important to mention that we are spending billions of pounds not just on the apprenticeship offering and the 680 apprenticeship standards, but on skills bootcamps, T-levels and higher technical qualifications—all Government investment in skills.

The hon. Member for Feltham and Heston spoke about careers. We have introduced the Baker clause to ensure that schools encourage students to do apprenticeships. The awareness of apprenticeships in schools has now rocketed up, although there is lots more work to do. We have the apprenticeship support and knowledge, or ASK, network, reaching 2,300 schools and something like 625,000 pupils, ensuring that they know about apprenticeships. I visited the Oasis Academy to see that. We have also worked with UCAS to introduce the UCAS apprenticeship scheme, which will bring a dramatic transformation in the take-up of apprenticeships, because people will be able to access them when they decide to go to university.

Hon. Members have also spoken about apprenticeship achievement volumes, which are substantially higher than they were the previous year—in 2022-23, they are up by 20%—so we are doing a lot to drive up the achievement rate, which I know my right hon. Friend the Member for Suffolk Coastal cares about. We also have £7.5 million of investment in professional development to support the workforce.

My hon. Friend the Member for Stoke-on-Trent North talked about English and maths skills. He rightly challenged me, and if he does not mind I would like to challenge him back. I absolutely believe that people need basic English and maths if they are to do an apprenticeship. He wants that to happen in schools, and with the advanced British standard people will be learning English and maths till the age of 18, so we should have the same for apprenticeships. We should not say that one group of people does not have to do English and maths because it is too much of a burden, but that it should happen in schools, which my hon. Friend cares about. He will be pleased to know that we are increasing the English and maths funding rate for apprentices by 54% to match the adult education budget. That will kick in from January 2024.

I have talked about removing the regulation on small businesses. We have an expert provider pilot to allow the best providers to offer more support to SMEs. We have a transformation in degree apprenticeships. We created degree apprenticeships—those are my two favourite words in the English language. There have been 200,000 starts at levels 6 and 7 since 2014, and starts are almost 9% higher than last year. We are investing an additional £40 million to support more people to access degree apprenticeships.

The hon. Member for Feltham and Heston spoke about social justice, which is why I am such a passionate supporter of apprenticeships—it is what motivates me. We increased the apprenticeship care leavers bursary to £3,000 this August and, as I said, we give £1,000 to employers and providers who take up apprenticeships; that is very welcome.

I really hope the hon. Lady moves away from the policy that the Labour party announced on skills. As I said, you had a target of 50% of people going to university because Labour believed it to be the only route to success. That led to the growth of poor-quality university courses, although of course most of our universities provide excellent courses. That was all about quantity over quality. The DFE analysis has found that your apprenticeship policy would slash the number of apprenticeship starts.

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[Robert Halfon]

DFE analysis has shown that the policy the hon. Member for Feltham and Heston is suggesting would reduce the number of apprenticeship starts by 140,000 per year, cutting them in half. The reality is that the moment the apprenticeship levy is diluted, there will be gaming of the system and much less spending on apprenticeships. The policy would undermine the apprenticeship starts that the hon. Lady says she is so keen to increase.

[Seema Malhotra]

I return to the quote I shared from the CEO of the Learning and Work Institute, who said that the Government’s analysis of our policy was pretty simplistic and that we need a bit more of a nuanced analysis. There is a long way to go before that analysis challenges our policy and the outcome it would achieve. We should remember that it is up to 50%. For those who spend their full apprenticeship levy, it does not say that they have to spend it any other way.

[Robert Halfon]

The reality is that if the levy is diluted and people are allowed to spend it on skills, there will be thousands and thousands fewer apprentices. As I say, I want the apprenticeship levy to do what it says on the tin: it should be a levy that supports the take-up of apprenticeships. I want to build an apprenticeship nation.