Skills and Post-16 Education Bill [Lords]

Stephen Timms Excerpts

Report stage
Monday 21st February 2022 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

To be of assistance, I am going to put in place a six-minute time limit. If we cannot stick to my helpful guidance, not everybody will get in.

[Stephen Timms (East Ham) (Lab)]

We are having an interesting debate. I congratulate my hon. Friend the Member for Chesterfield (Mr Perkins) on the case that he set out from the Front Bench by rightly highlighting that, every couple of years, the Government say they will solve the skills problem by putting employers at the centre, and it never works, so they come back and do the same thing again. He was also right to highlight the failure of the apprenticeship levy, about which the Government were warned.

I rise to speak to new clause 13 in my name. Nine years ago, the Government pledged to introduce alternative student finance, but it still has not been delivered, barring large numbers of Muslims from higher education. The problem became a serious one in 2012, when tuition fees were drastically raised and student loans became essential for pretty much everybody. For some British Muslims, having to take an interest-bearing student loan simply meant that they could not go to university at all. Riba—interest—is prohibited in Islam as it was in Christianity until the middle ages. Some Muslim young people defer university until they have saved to pay the fees outright. Some, with a heavy heart, take out a loan and feel bad about it ever after. Others do not attend at all. That is the reality facing young British Muslims today.

Last October, Muslim Census published the findings of a survey on the scale of the problem. It concluded that, every year, 4,000 Muslim students opt out of university altogether because alternative student finance is not available, 6,000 choose to self-fund, severely limiting their course choice and student experience, and four in five who took loans felt conflicted as a result, sometimes leading to mental health consequences requiring clinical intervention. It is in nobody’s interests to fail such a large group of bright young people who we need to contribute their full potential in the years ahead. As Prime Minister, David Cameron promised to change that. At the World Islamic Economic Forum in London in 2013, he said:

“Never again should a Muslim in Britain feel unable to go to university because they cannot get a student loan - simply because of their religion.”

The promise he made was very clear. Nine years later, there is still not even a timetable for keeping it. It looks to young Muslims as if Ministers simply cannot be bothered.

A year after David Cameron’s speech, a Government consultation attracted 20,000 responses—a record at the time—on a proposed takaful system, in which students pay into the system to guarantee each other against loss. This co-operative structure is generally recognised as sharia-compliant. Repayments, debt levels and cost to the Government would be the same as for conventional student loans. But progress since then over eight years has been glacial. In November 2015, a Green Paper said:

“we are looking to develop the ‘Takaful’ product more fully.”

A White Paper the following year said there was a “a real need” to support students who felt unable to use interest-bearing loans and that:

“we will introduce an alternative student finance product for the first time”—

which—

“will avoid the payment of interest”.

That was seven years ago. In 2017, campaigners hoped the new Higher Education and Research Act 2017 would enable a takaful loan model. Ministers then said that the May 2019 Augar review would cover it. It did not, but ever since Ministers have used the forthcoming response to that report as a justification for still not doing anything. The response to the Augar review was supposed to be published at the time of the spending review, but six months later there is still no word.

British Muslims make up nearly 5% of the UK population and almost 10% of students. In the borough I represent, Muslims are about a third of our population. It is extremely hurtful that the Government simply cannot be bothered to keep the promise they made nine years ago to so many people. Thousands of young Muslims miss out on university. Others struggle over the conflict between what they believe and their hopes for higher education. Our system should not be doing that to people, as the Government recognised nine years ago. New clause 13 requires the Secretary of State to at last make the long-awaited regulations. I hope the House and the Minister will support it.

[Siobhan Baillie (Stroud) (Con)]

I rise to speak on new clause 4 and will make a brief round-up in support of new clauses 2, 5 and 7.

On new clause 4—our proposal for a green skills strategy—I and others firmly believe that we have a green skills emergency and that net zero cannot happen without know-how. Existing workers, who in some cases are already losing their jobs due to covid or chronic instability in the oil and gas sector, can be brought over to new industries such as wind, low carbon, hydrogen and energy-efficient homes. Meanwhile, young people want to work in sectors they know are good for them and good for the planet. Providing green skills is therefore a positive part of the net zero debate. I ask my hon. Friend the Minister, and the Department, to seize this opportunity, with his leadership and influence over other Departments. Young people will not only be prepared for the future, but provide solutions for the future.

I welcome the much-needed focus on how the country will deliver its net zero targets, and what they mean for individuals and families. That honest conversation cannot come soon enough. We have lived with our 2050 targets for some time now. The majority of people want to protect the planet and ensure they leave a healthy environment for their children, grandchildren and future generations. Yet people are nervous. With inflation and energy prices starting to bite and the cost of paying for the pandemic in the background, it is understandable that suggestions that they are going to be forced into changing their cars, changing the way they live or insulating their homes in an expensive way are quite terrifying for some. However, when I speak to families who are worried about that aspect of the 2050 targets, they are absolutely clear that they recognise there are jobs to be had not only for them, but their children.

We know that the market will do a lot of the work of creating demands for a skilled net zero workforce, but the market also needs help to plug gaps to ensure the right qualifications are in the right place. Unfortunately, education settings are not quite there yet. They need more support to deliver courses and qualifications. My right hon. Friend the Member for Kingswood (Chris Skidmore) made a few points about what we are missing. Only 5% of mechanics know how to fix an electric car. In 2019, only 3,500 workers could install energy-efficient measures. It is estimated that we will need an additional 20,000 engineering graduates a year.

In Stroud, a combination of businesses—Active Building Centre, South Gloucestershire and Stroud College, The Green Register—have come together. We recognise there is a lack of standardisation in qualifications, and a lack of understanding and confidence on the part of the public around being able to hire people who know what is best for their homes and next steps. If we do not grasp this issue, we will not provide that confidence to the public and to the tradespeople who want to retrain and reskill. They will not invest in a course if they do not think it will be important next year and the year after. They want guidance from the Government and they need to know that the public will believe in it. I fear that if we do not do that, we will end up with cowboys in the market or people not taking the actions we know they need.

It is not just my amazing Stroud experts who talk to me about this issue all the time, but small, medium and big companies. I have had some good conversations with SSE, which was one of the first companies in the world to publish a just transition strategy. It sets out a number of principles for supporting the transition to net zero in a socially just and fair way. Key principles for green jobs and skills include guaranteeing fair and decent work, and attracting and growing talent. It has created principles for action and I urge the Department to look at them if it has not already done so. I believe the example recommendations for the Government fit very neatly into what we think could be a green skills strategy by the Department for Education, the Department for Business, Energy and Industrial Strategy and the Government as a whole.

Arguably, the Government do not need to wait for Back-Bench MPs to agitate for a green skills strategy and nor does it really need to be in legislation. My hon. Friend the Minister can agree to create a green skills strategy, or get his bosses to do so, and set out a plan to support people to attain education that creates the support and meets environmental goals. I therefore urge the Education team to work with us those of us on the Back Benches to do that work and support the plans. We can certainly bring some fantastic examples to make that a reality.

Very briefly, in conjunction with my local further education college, South Gloucestershire and Stroud College, which the Minister very kindly came to visit, I support new clauses 2 and 7, which put the lifetime skills guarantee on a statutory footing and extend it to level 3 courses, so that those without A-level or equivalent qualifications will still benefit from fully funded courses. I believe that the college spoke to the Minister about that when he was with us. I also support new clause 5, on reforming benefit entitlement rules, so that people on benefits can still attend college while unemployed without losing out. However, I am very grateful for the passage of the Bill at pace.