Oral Answers to Questions

Tanmanjeet Singh Dhesi Excerpts

Monday 1st March 2021 Commons Chamber

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

There have been repeated calls from the Labour party, teaching unions and others to vaccinate teachers before schools reopen fully, but they seem to have fallen on deaf ears. If teachers fall ill or there are class closures due to covid transmission, will Ministers take personal responsibility and do the honourable thing, having precipitated further chaos and disruption to our children’s education?

[Nick Gibb]

The Joint Committee on Vaccination and Immunisation has now confirmed that an age-based approach remains the most effective way of reducing death and hospitalisation from covid-19. More than 20 million vaccines have already been given—I am surprised that the hon. Gentleman did not congratulate the Government on that magnificent achievement—but modelling confirms that the speed of vaccine deployment is the most effective and important factor. The JCVI’s view is that targeting occupational groups will be more complex to deliver, and may slow down the vaccine programme. Keeping the operation simple and easy to deliver is key to the rapid deployment of the vaccine.

Exams and Accountability 2021

Tanmanjeet Singh Dhesi Excerpts

Thursday 3rd December 2020 Commons Chamber

[Gavin Williamson]

I very much join my hon. Friend in congratulating St Joseph’s school in Christchurch on such an accolade. I am sure that he, the teachers, parents and, most importantly, pupils feel incredibly proud at receiving it.

We recognise that we have had to make some changes that we would not normally want to do, in order to facilitate the smooth functioning of schools. We will continue to publish data on schools, including attendance, so that parents are in the best possible position to make the best choice for their children in school.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

Some regions of our country, including my constituency, have been especially hard hit by the pandemic. Slough schools have faced several outbreaks and huge disruption as a result. There is also the huge issue of the digital divide experienced by many of our more disadvantaged and less well-off communities. So, in addition to the Secretary of State’s announcement today on exam changes, surely he should consider regionally targeted measures to support those areas that have lost out the most.

[Gavin Williamson]

We believe that this is a comprehensive package. We will ask the expert group to look at some of the challenges that students will face in order to be able to progress to their next stages. We will look very closely at the evidence that is provided on lost learning.

Free School Meals

Tanmanjeet Singh Dhesi Excerpts

Wednesday 21st October 2020 Commons Chamber

[Kate Green]

I am grateful to the hon. Member. Initially, I would suggest that we urgently need a measure that will take us through this half term and the remainder of this academic year. We understand that nobody can predict how the virus might progress over the coming months, but it is crystal clear that what we need to vote for tonight is an urgent emergency measure to protect children and families who are struggling.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I thank my hon. Friend for allowing me to intervene in the midst of her excellent oration. There are 3,891 children in Slough who are known to require free school meals. Does she agree that if feeding those children over the summer was the right and humane thing to do in the middle of a pandemic, surely it is right and honourable to feed them over the winter when their parents are struggling to put food on the table and more than 1 million children could potentially go hungry? Or does she think that the Prime Minister has merely changed his priorities once again?

[Kate Green]

My hon. Friend makes a very reasonable point, and he is right to draw attention to the Prime Minister’s view on this matter, because Downing Street said just the other day:

“It’s not for schools to provide food to pupils during the school holidays.”

I cannot believe I have to spell this out: it is the Government’s responsibility to ensure that children do not go hungry, and they do not stop being hungry just because the school bell rings for the end of term. Surely our constituents send us to this place as Members of Parliament to vote to ensure that the children who most need our help at any time of year are protected.

--- Later in debate ---

[Gavin Williamson]

My hon. Friend raises a really important point, which I was going to come to, about the important role that the holiday activities and food programme has played in making a real difference for children. This debate should not be just about food; we have to look at different ways that we can support children and families. Children, often from the most deprived backgrounds, are sometimes in a situation over the long summer period of not being able to have the level of support that we would like to see all children benefit from, and we should look at how we can roll out that programme more into the future. It has been very successful in the previous two years and we would like to see how we can do more in the future.

[Mr Dhesi]

rose—

[Gavin Williamson]

I am looking forward with enthusiasm to turning to the hon. Gentleman, but let me just finish addressing the points made by my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard).

As my hon. Friend will know, we have invested a considerable amount of money in the opportunity areas, which are looking at some of the real long-term challenges that we have in Blackpool as well as in 12 other areas right around the country.[Official Report, 3 November 2020, Vol. 683, c. 4MC.] I would be very happy to sit down with him to see how we can link up what we are doing with the Blackpool opportunity area, and the progress that we are making on that, in addressing some of the concerns that I know he has.

Let me make just a little more progress, and then I will hand over to the hon. Member for Slough (Mr Dhesi), who I know is keen to get in. I was talking about universal credit and how it has been such an important part of our response to the covid crisis. If we had not had universal credit in place, the job of the Department for Work and Pensions and the whole of Government would have been so much more challenging in being able support everyone in this country. By tapering benefits and providing work allowances to those facing the greatest barriers to work, we ensure that people are always better off in work. Something that is often forgotten is the number of barriers that we inherited and had to deal with when we came to power back in 2010, as a result of the legacy of the last Labour Government.

That is why between 2015-16 and 2019-20, we have taken 1.7 million people out of tax. Yes, we on the Government side of the House believe that tax cuts are good, and they benefit the poorest in society by taking them out of tax. We provided approximately 32 million people with a tax cut by raising the personal tax allowance to £12,500. I personally, and I think a lot of Government Members, think that helping 32 million people is a good thing.

[Mr Dhesi]

I thank the Secretary of State for his kind words and for allowing me to intervene. Food bank usage is predicted to be 61% higher this coming winter than it was last winter. That is a mere prediction. It will take a lot more than free school meals to sort out this poverty crisis, but does the Secretary of State agree that that is the least we can do to help support struggling families?

[Gavin Williamson]

I know that the hon. Gentleman is a man who has great passion and belief on the subject of education and how we support the most vulnerable people in society, and he raises an important point about how we can support those people. Our view is, clearly, that the best way of doing that is through the universal credit system and ensuring that we have a welfare system that works for everyone in this country.

As I touched on, we have raised the personal tax allowance to £12,500 to ensure that those on the lowest incomes benefit, and at the same time we have raised the adult national living wage to £8.72, up from the adult national minimum wage of £5.80 at the start of 2010.

Exams: Covid-19

Tanmanjeet Singh Dhesi Excerpts

Monday 12th October 2020 Westminster Hall

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Stringer.

It is a privilege to take part in this important debate, which, if I may say so, has been very ably led by my hon. Friend the Member for Gower (Tonia Antoniazzi). It has been triggered by a summer of chaos in our schools and colleges. Hundreds of people in my Slough constituency have signed both the petitions that we are considering today, which shows that there is real concern and anger among the people I represent.

Like every hon. Member here, over the summer I was contacted by parents, teachers and young people themselves about their concerns, and about the confusion and chaos, surrounding this year’s exam results. There were heartbreaking stories of university places being withdrawn and people’s futures being stolen. I think that even the Government’s greatest supporters would acknowledge that things did not go well.

In March, the Education Secretary cancelled exams, saying that this year’s students should not face

“systematic disadvantage as a consequence of these extraordinary circumstances.”—[Official Report, 23 March 2020; Vol. 670, c. 1WS.]

In July, the Education Committee sounded the alarm that groups of pupils—especially those from disadvantaged backgrounds or from black, Asian and minority ethnic backgrounds—would be penalised. On 13 August, the number of pupils being awarded A or A* at A-level increased to an all-time high in England, Wales and Northern Ireland, with 27.9% of A-level students securing top grades; I congratulate all those students for that.

However, pupils from disadvantaged backgrounds were hit hardest by the algorithm that was used, with Ofqual itself showing that such pupils were most likely to have the grades proposed by their teachers overruled and downgraded, while children from affluent backgrounds were most likely to do well. The same pattern was evident a few days later with the GCSEs. Although Ministers started the summer by saying they wanted to avoid “systematic disadvantage”, by the end of the summer it was plain that Ministers were responsible for the exact opposite, hardwiring disadvantage into the system.

Where was the Prime Minister? Like Macavity, the mystery cat, the Prime Minister is not there. A report by the National Foundation for Educational Research last month revealed that school pupils were on average three months behind where they would normally have been without the lockdown, with more deprived students and schools being worst affected.

I have a rather famous top school near me, down near Slough and Windsor, but why should pupils at that particular college get enhanced opportunity, on top of the huge opportunities that they already have, at the expense of pupils at Wexham School, at Beechwood School, at Ditton Park Academy or other such great schools in Slough? It is especially cruel for those pupils who had worked hard and were on track to do well—simply because they attend a school that historically had struggled they were punished. As the joint general secretary of the National Education Union, Mary Bousted, said:

“Grades were initially awarded, for the vast majority of students, with no reference to, or evidence of, their individual achievements.”

We tell people that their children can do better than they themselves did and we tell the next generation that if they work hard they can get on. If we as a society break that fundamental promise, we risk far more than one summer of chaos; we risk there being a breakdown of trust in our institutions and a generation held back by injustice. We are storing up troubles for decades to come.

The petitioners point to two key areas where we can try to get things right next year: first, to review in forensic detail what went wrong this summer, despite the warnings from education unions, schools and the Education Committee; and secondly, to make plans for, and give much-needed clarity to, those who are taking exams next year. I am glad the Government have addressed the exams timetable for 2021, but since August, the Labour party has been calling for exams to be delayed until June to give pupils more time to catch up on lost teaching time. It is unacceptable that it has taken until today, more than a month after schools returned, for the Government to finally commit to that.

Until now, parents, pupils and schools have been left in the dark regarding the timing of exams, making it more difficult for them to plan for the academic year. Additionally, although a delay to exams is necessary, other measures must be considered by the Government to ensure that exams are fair. Perhaps the Minister can address the following three points. First, what guarantees can he give parents, pupils and teachers in Slough schools that we will not see a 2021 summer of chaos? Secondly, what measures will Ministers put in place to ensure that pupils from disadvantaged backgrounds do not have their dreams stolen by hard-wired injustice? Finally, what can he tell us about thousands of taxpayer pounds going to public relations agency Public First, which was paid by Ofqual in the summer to clear up its PR disaster?

Money was paid out of the public purse to a PR agency run by Rachel Wolf and James Frayne, former special advisers to the right hon. Member for Surrey Heath (Michael Gove), on a contract awarded without competitive tender. Does the Minister consider that a good use of public money?

Lifetime Skills Guarantee and Post-16 Education

Tanmanjeet Singh Dhesi Excerpts

Thursday 1st October 2020 Commons Chamber

[Gavin Williamson]

My right hon. Friend lists a lot of people who I want to thank and congratulate, whether at the Bucks LEP or the skills hub that has been created. This shows that we should not see education in isolation from the rest of the economy or the rest of the community, because all those elements, by working together, provide so much more opportunity. That is a brilliant example of how people can inspire children to make them understand that what they are learning in the classroom has a real relevance to the world of work, giving them the enthusiasm to look at different careers and different opportunities that they might not have considered before.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

Colleges such as Langley College in my constituency play a vital role in helping young people to realise their full potential, but they have been underfunded for too long. The Labour party has repeatedly called for the Government to integrate training into the job support scheme to help those on reduced hours to use the rest of the week to improve their skills. If the Secretary of State feels so passionately about retraining, why did the Government fail to do that?

[Gavin Williamson]

We always look at every idea, but just because the Labour party has come up with an idea has rarely meant that it is a good one. As for the idea that the hon. Gentleman highlights, we look across the board to try to ensure that we put in place the best possible opportunities for young people. That is what a series of policy announcements that we have made is about doing. It is why we will bring forward a further education White Paper later this year and why we will continue to look at every option to ensure that we deliver the best for every individual in this country.

Students’ Return to Universities

Tanmanjeet Singh Dhesi Excerpts

Tuesday 29th September 2020 Commons Chamber

[Gavin Williamson]

Quite rightly, both this Government and the previous Labour Government put a really high value on ensuring that students who started their studies were able to complete them. The ways in which universities ensure that that happens is something that we monitor closely. We have worked with the Office for Students to ensure that hardship funding is available. That is part of a quarter of a billion pound package that was made available to universities so that proper assessments could be made of students if they required that support. The Student Loans Company also offers a system whereby extra maintenance support can be made available through individual assessment if a student chooses to go down that route.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

While people can pin the exam results fiasco on the Education Secretary, they certainly cannot blame him for the shambolic privatised test and trace system, which is being personally led by the Prime Minister, his chief adviser and the Health Secretary, and which has put the lives of our young people and their families at risk. Given that many of us fear an increased university drop-out rate among students, along with increased stress and mental health issues, can the Secretary of State promise that every student will have access to tests so that they can travel home safely, especially for Christmas?

[Gavin Williamson]

As we have made clear, we want to ensure that all students who wish to do so can return home safely for Christmas. We and the university sector are confident that the best way of keeping students and young people engaged in their studies is for them to be part of the university community; that is an important step towards ensuring that we do not see high drop-out rates. As I have said, both the hon. Gentleman’s party and my own have always put a great emphasis on the need to ensure that youngsters complete their studies, to ensure that they get something incredibly important from the investment that they make, because this will stand them in good stead to achieve the very best in life. We will continue to work with the sector to give young people the support that is required in these times that are much more challenging than any of us thought we would ever have to face.

Oral Answers to Questions

Tanmanjeet Singh Dhesi Excerpts

Monday 7th September 2020 Commons Chamber

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

What steps the Government is taking to support universities accepting higher numbers of domestic students as a result of the change in policy on predicted A-level grades.

[Holly Mumby-Croft (Scunthorpe) (Con)]

What steps his Department is taking to help universities increase the number of places available to students in 2020-21.

--- Later in debate ---

[Michelle Donelan]

Last week in fact, we announced a £10 million capital fund to cover capital as well as equipment. This is on top of our announcement for additional funding to support high-cost subjects and the announcements we made in May for the sustainability of the sector and is supported by the package of £280 million from the Department for Business, Energy and Industrial Strategy.

[Mr Dhesi]

In a recent National Union of Students survey, 55% of students reported that the income of their parents or those who provided financial support to them had been negatively impacted by the coronavirus pandemic, and 80% were worried about how they would cope financially, not to mention since part-time jobs will be in short supply. Given that the university hardship funds were not designed for such demand, what extra provision will the Government make to ensure that universities can properly support students facing hardship?

[Michelle Donelan]

If a student is not already accessing the maximum loan and the income of their parents or carers has changed, they should fill in a change of income form with the Student Loans Company. On the hardship funds, we have worked with the Office for Students so that they can show more flexibility, and this will amount to £256 million for the coming academic year.

--- Later in debate ---

[The Minister for School Standards (Nick Gibb)]

We have funded the National Association for Special Educational Needs on behalf of the Whole School SEND Consortium to work to recruit teachers to deliver high-quality teaching across all types of special educational needs, and that support is available to all schools. We also funded targeted support, focused on particular areas of concern flagged by Ofsted and the Care Quality Commission. We are putting £730 million into high needs next year, coming on top of £780 million of additional funding this year, which means that high needs funding has increased by 24% in just two years.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

Young people’s futures cannot be put on hold because of Tory incompetence. With schools now returning, many parents in Slough, and particularly those who have been shielding and those living in multigenerational households or who have children with special educational needs or disabilities, remain concerned about sending their children back to school. Given that the Government have failed to put in place the necessary SEND support and have not provided enough reassurance for parents regarding safety, how does the Secretary of State intend to ensure that all children can get back to school safely?

[Nick Gibb]

We do want all children to return to school, and to return to school safely, including children with special educational needs and disability. We have given guidance to schools, and the Under-Secretary of State for Education, my hon. Friend the Member for Chelmsford (Vicky Ford), has written an open letter to parents of children with special educational needs about returning. Where there are families who have particular concerns about the safety of returning, the advice we give is to talk to the headteacher, who hopefully will be able to provide them with reassurance.

Covid-19: School Reopening

Tanmanjeet Singh Dhesi Excerpts

Wednesday 13th May 2020 Commons Chamber

[Gavin Williamson]

This does present some additional challenges, especially with the consideration of the 11-plus in September. I know that it is a concern of my hon. Friend, and I have received representations from Conservative Members in Kent about their concerns. We will be looking at working with local authorities that have grammar school systems in their areas as to how best we can ensure that children from the most disadvantaged backgrounds are not disadvantaged as they look at taking the 11-plus in future.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab) [V]]

We all, including me and my constituents, want our schools to reopen and our children’s education to continue, but Government guidance around the reopening of schools raises more questions than it answers. As a parent of two young children, I can attest to the difficulty of explaining social distancing, let alone getting the kids to practise it, and that is why so many parents fear sending their children to school. Will the Secretary of State revisit the guidance and commit to working with education unions and others to create a working plan for reopening our schools when the science indicates that it is safe to do so, and when doing so has the confidence of all those affected?

[Gavin Williamson]

We will continue to work with the whole sector to ensure that any changes or modifications that are required, in working with children and teachers in schools, are rapidly adopted. We recognise the importance of creating a safe bubble for children and teachers to operate in, which is why we have put out extensive guidance on how this is done. We have very much worked with Public Health England and the scientific community as to how to approach, in the best possible way, the return of schools, because children benefit from being in schools and they are losing out as a result of not being in schools.

Educational Settings

Tanmanjeet Singh Dhesi Excerpts

Wednesday 18th March 2020 Commons Chamber

[Gavin Williamson]

I assure my hon. Friend that teachers and social workers will be included in the designation of key workers. I note that a number of Members have raised the issue of there being an element of flexibility, so that teachers and school leaders are able to show an element of discretion. We must not forget that the reason why we are taking this action is to limit the spread of the virus. The scientific and medical advice is that taking this action and reducing the number of children in education settings will have an impact in terms of reducing the spread of the virus. Nevertheless, I have heard what the House has said about looking into providing an element of flexibility, and I will certainly take that away.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

As my hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) pointed out, millions of children in our country live in poverty, which is why I particularly welcome the Secretary of State’s announcement about the voucher system. However, in his responses hitherto there has been a palpable lack of detail about the voucher system. How will they be redeemed? Where will they be redeemed? I fear that without attention to detail, the voucher system will become merely worthless pieces of paper.

[Gavin Williamson]

That certainly will not be the case. Members on the Government Benches recognise and completely understand the importance of ensuring that every child who is eligible for free school meals is able to receive them and able to get food. We recognise that we may be dealing with this situation not just for a few weeks but for quite a long and sustained period of time, and we would want to move to a more conventional system in order to be able to get money to families in the best possible way. Another aspect is that the reason why we came up with the process of free school meals is that we recognise that for a child to be able to go to a school and receive a meal is an incredibly powerful thing to be able to offer. We are going to look into whether there is a way to deliver that much more broadly in so many more schools, but that will be dependent on the number of schools we are able to have open and available.

Apprenticeships: SMEs

Tanmanjeet Singh Dhesi Excerpts

Thursday 13th February 2020 Westminster Hall

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I beg to move,

That this House has considered apprenticeships in small and medium-sized enterprises.

It is a pleasure to serve under your chairmanship, Mr Davies.

Apprenticeships should be the perfect vehicle for meeting the challenges of social mobility, bridging the skills gap and raising productivity. With the most recent Office for National Statistics data showing that productivity is 30% higher in France and 35% higher in Germany, our widening productivity gap cannot be ignored if we are to compete successfully and obtain the supposedly easy post-Brexit trade deals promised by the Government. Having run my own small start-up construction business in Scotland, I know full well the importance of small and medium-sized enterprises investing in their people. Those that fail to do so stagnate and start to go backwards.

In previous years, employer spending on training in the UK had fallen and was low compared with other advanced economies, so there was a clear need to take action to move more employers towards investing more in the skills of their workforce. It was also vital to improve progression in apprenticeships. Only 4% of our 25-year-olds hold a level 4 or level 5 technical qualification as their highest qualification, compared with 20% in Germany, where apprenticeships are taken up by many more young people and are viewed as a high-status option for school leavers. Sadly, the Government’s rushed implementation of the apprenticeship levy resulted not in an increase in apprenticeships and opportunities for the most disadvantaged, as was hoped and very much needed, but in the exact opposite. That is devastating, especially considering the huge impact that apprenticeships can have on young people’s lives.

Just last week, I met brilliant apprentices working in my constituency. I know that their input is hugely appreciated by the many businesses in Slough. Slough is a huge business hub, with the largest singly owned trading estate in the whole of Europe and more corporate headquarters than Scotland, Wales and Northern Ireland put together, so we know a fair bit about businesses and the importance of apprenticeships. Unfortunately, far from turbo-charging our businesses and helping them further, the levy has left many of them hobbled and unable to fill vacancies, address their skills shortages or meet opportunities for expansion.

Since the introduction of the levy, apprenticeship starts in large employers—those with 250 or more employees —have fallen by 9%, but the impact on small and medium-sized enterprises has been disastrous. Apprenticeship starts have fallen by 34% in small businesses and 42% in medium-sized enterprises. Even in my constituency, despite the excellent Slough Academy, which supports growth in high-demand areas such as social care and planning in the council, overall apprenticeship starts have not reached the level they were at before 2017-18. That reflects the trend across the country. It is estimated that between 30,000 and 40,000 SME apprenticeship vacancies remain unfilled, and 75,000 apprenticeships in SMEs could be lost by the end of the year. That is 75,000 people who will be denied the opportunity to work, train and gain the confidence that comes with successfully completing qualifications.

The failure of the levy for SMEs is compounded by the fact that those “disappeared” apprenticeships were most likely to have been taken up by young people who were starting with much lower qualifications—the very group we might imagine that a revamped apprenticeship scheme should help the most. The latest Government data show that the proportion of apprenticeship starts at level 2 fell from 63% in 2011-12 to a mere 36% in 2018-19, and the proportion of people aged under 19 on an apprenticeship has fallen to a mere 25%. In the context of participation in the apprenticeship system being at its lowest level since 2010-11, with 72,400 fewer people participating in 2018-19 than in 2017-18, those figures further underline the inadequacies of the Government’s implementation of the levy. The largest reductions have been in the north-west and the north-east—areas that are in desperate need of job opportunities and economic growth.

What is behind the decline? Under the levy in England, employers are required to pay 0.5% of their payroll above £3 million per year into a so-called ring-fenced digital account to be spent on apprenticeships. That is topped up by a 10% public contribution. If levy funds are not used within two years, they expire. The system was based on the expectation that many employers would not spend all their levy funds. Those unspent funds were intended to cover most of the costs of apprenticeships for the SMEs that do not pay the levy. At the time, the Government estimated that around 50% would remain unspent and so available to non-levy payers.

Some levy payers found ways—some might say predictably—to increase their spending. Indeed, the Sutton Trust warned in November 2017 that an estimated two thirds of businesses’ apprenticeship schemes merely converted existing employees and certified existing skills, and that the levy may encourage more of that so-called conversion and rebadging as a way for large employers to reclaim their money. That looks to be what has happened.

A recent Ofsted report on employees on an Institute of Leadership and Management course stated:

“Most apprentices and their line managers do not know that they are on an apprenticeship. Too many apprentices do not develop the…knowledge, skills and behaviours needed to progress in their careers…Most apprentices do not develop substantial new knowledge and skills or build on what they already know…They just complete their management qualification.”

That is a testament to what has gone wrong. That case and others led Ofsted chief inspector Amanda Spielman to declare:

“We have seen examples where existing graduate schemes are in essence being rebadged as apprenticeships. This might meet the rules of the levy policy, but it falls well short of its spirit.”

That is why, last year, the National Audit Office expressed its concern that the use of the levy for new high-level apprenticeships was really

“public money…being used to pay for training that already existed in other forms.”

Even where higher-level qualifications are appropriate and well designed, they are expensive, so the money the Government expected to be available for SMEs to fund apprenticeships simply is not there—to the tune of around £1 billion, according to best estimates.

With the introduction of the levy came the development of new apprenticeship standards to replace existing frameworks. Those standards were designed by employer groups and are intended to establish more robustly the skills and competencies that an apprentice is expected to achieve. Again, however, the Government underestimated the cost of implementation, which has simply added to the financial pressures SMEs face in funding their apprenticeships. That has prompted calls for a proper review of what is and what is not an apprenticeship, and how the different kinds of in-work training are best targeted and delivered.

Given the reports by Ofsted, the National Audit Office and others, such a review is certainly required. Many stakeholders make the case for a more flexible approach, such as a skills levy that allows employers to invest in other forms of high-quality training. Such an approach would need extra funding from widening the levy to cover more employers, from raising contribution rates or from Government. However, the burning issue is that there is a crisis in apprenticeships for SMEs that is depriving those who most need either a solid start to their working life or a helping hand to get up and out.

As I said, disadvantaged people of all ages are disproportionately clustered at the lower levels of apprenticeships and are significantly more likely to be studying for level 2 or level 3 than for higher or degree-level apprenticeships. The levy has led not only to a dramatic fall in level 2 and level 3 apprenticeship provision, but to people from deprived communities being squeezed out of higher-level apprenticeships. In 2015-16, before the introduction of the levy, the most deprived 20% of the population accounted for 21.9% of apprenticeship starts at level 4 or higher, but by 2018-19 the figure had dropped to a mere 16.4%. That is why the Social Mobility Commission warned that

“a two-tier system…based on apprentices’ backgrounds”

may be emerging.

Almost one in five young people does not achieve five GCSEs at grades 4 to 9—A* to C in old money—or the equivalent in alternative qualifications. They will naturally face greater challenges moving from level 1 to level 2, but maths and English provision in apprenticeships—functional skills—is funded at only half the rate that would apply to any other learner. Employers want to be able to deliver and provide young people with the opportunity to succeed, but the current funding arrangements make that extremely difficult. The Minister must respond to that funding deficit, and it must be met. The Government need to acknowledge the extra challenges that those young people face, and the extra provision that they need from their employers and training providers, by increasing financial support for level 1 and 2 apprenticeships.

If we truly wish to close the skills gap and raise the floor of our nation’s skills, we must go further. There have been calls from all sides to increase the flexibility of the levy to stimulate more high-quality and accessible apprenticeships. One such change would be to allow employers to spend a portion of their levy funds on pre-apprenticeship programmes and other initiatives such as outreach programmes, with the aim of widening access to apprenticeships in under-represented groups. Further, the entitlement to attain skills at level 3 should be as accessible through the apprenticeship system as it is for young people taking college courses. The Trades Union Congress has suggested introducing a new right to progress for apprentices who have completed a level 2 apprenticeship, which would entitle them to study for a level 3 apprenticeship and trigger the necessary funding.

The lack of proper funding for some apprenticeships is, as I said, having a disastrous effect on entire sectors of our economy, such as the care sector. Many care homes are SMEs. The sector is typically low margin and low wage, and it relies on apprenticeships for the development of new and existing staff. The funding for adult care worker level 2 and level 3 apprenticeships is simply not enough to provide a quality apprenticeship programme and is leading to an over-reliance on untrained staff. It is forcing some providers out of business altogether.

I am led to believe that a monthly online apprenticeship reserve funding system is being trialled for SMEs. It has been likened to someone trying to buy a ticket for a concert, sitting at a computer, hitting refresh and hoping that this time they will get lucky. That is no way to run a programme. On top of that, the name of the apprentice is required before funding is reserved, so if an employer wants to hire an apprentice, they must do so, or at least make an offer, before funding has even been secured. That makes it easier to grant apprenticeships to existing employees instead of hiring in, as we should be looking to do. It is another barrier to those who are seeking a fresh start.

The unanimous view of SMEs is that the levy, as currently constituted, is failing—and that is to put it mildly. It is failing them, and it is failing their current and future employees. It is failing tens of thousands of the people who most need help and, by extension, the communities in which they live. The Government must listen to the broad coalition of voices—including Labour, businesses and training providers—calling for a guarantee of Government funding for SME apprenticeships, independent of the levy, through the provision of a funded pot for SMEs. I very much look forward to hearing the shadow Minister, my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy), further explain the excellent work that she and her team have undertaken in that respect. We need the Government to step up to the plate. The level of funding needs to be guaranteed to give certainty to SMEs and training providers alike, so that both parties can provide the apprenticeships that are needed and plan effectively for the future.

Education can provide equality of opportunity for everyone, at every stage of life, if there is an accessible progression pathway for everyone. It is vital that the opportunity presented by the reform of apprenticeships is used to create such a pathway. The current system prevents young people from starting their career journey, because the system fails to provide the support they need. Such a lack of support is denying SMEs opportunities to recruit the apprentices they require to help to address the productivity gap.

National Apprenticeship Week has just ended. I hope the Minister used it to listen carefully to those in the sector who have been lobbying the likes of my hon. Friend and me, and I hope that the Minister will take that advice on board to improve the system that the Government created. In this post-Brexit world, our country cannot afford to get this wrong.

--- Later in debate ---

[Mr Dhesi]

It has been a pleasure to serve under your chairmanship, Mr Davies, and to engage in this important debate. I am particularly thankful to my hon. Friend the Member for Birmingham, Perry Barr (Mr Mahmood). My experience running an SME pales into insignificance compared with his considerable experience, not only as an apprentice, but in the engineering industry. Therefore, the Minister and the Department should listen to his points, which he made with great passion, to inform effective changes accordingly.

I also thank the Scottish National party spokesman. He passionately explained the long-term future for apprentices and highlighted the problem of a competitive gap appearing, not only between us and our European and global partners, but between England and Scotland, because of the different routes we have taken.

I thank the shadow Minister. I know she is passionate about this subject and has been since long before she came to this place, given her background in education. She spoke about the need to ring-fence the sizeable £1.5 billion budget and the request to host the WorldSkills championship. The Minister did not respond to that last point, but I hope we can give the shadow Minister some good news soon.

I thank the Minister for her kind words and compliments about not only my Slough constituency, but the work of Resource Productions and my good friend Dominique Unsworth, whom I know is an excellent ambassador. The Minister also highlighted the plethora of apprentices in Slough. As I explained earlier, the explanation is that Slough is a huge business hub. It is the most productive town or city per capita in the entire country. I could wax lyrical about my constituency all day, but I can see you are yawning, Mr Davies, so I shall move swiftly on. I look forward to joining the Minister on 31 March. I thank her for her interest. I also look forward to meeting her, as she kindly suggested, and I hope the shadow Minister will accompany me to that meeting, so that we may look further into improving the current digital offer for apprentices and SMEs.

Overall, I am disappointed that, despite the disastrous figures we face, the Government are not looking to make a sea change in their approach to apprenticeships. I hope the Minister, with due consultation with others, will remove those restrictions infringing upon SMEs’ operations and introduce the necessary flexibility and funding. If we do not do that, we shall fail to address not only social mobility, but the huge productivity gap, and we shall let down that broad coalition of voices from industry, business, apprentices and political parties. It is important for the Minister to consider that; not to do so would be to let down not only those businesses but, more importantly, those young people, and thereby our country.

I thank you, again, Mr Davies, for chairing this debate, and I thank all hon. Members for their incredible contributions.

Question put and agreed to.

Resolved,

That this House has considered apprenticeships in small and medium-sized enterprises.