Colleges and Skills: Covid-19

Toby Perkins Excerpts

Tuesday 20th October 2020 Westminster Hall

[Mr Toby Perkins (Chesterfield) (Lab)]

I thank the hon. Member for Waveney (Peter Aldous) for securing the debate. He is a powerful advocate for our colleges as the chair of the all-party parliamentary group for further education and lifelong learning. It is clear that all contributors recognise the crucial role our colleges play. Many took the opportunity to specifically thank and acknowledge the work of their local colleges, and I have no doubt that all those contributions about the role of our colleges were genuinely felt.

As I know from my regular visits to Chesterfield College, our colleges are the providers of second chances. They are the home of about 30% of all apprenticeship learning and the focal point for our skills strategy. For so many, they are the road between school failure and academic and career success, and they have changed the life chances of people in my family. They are fundamental to our country having the skills it needs to cope with the twin threats to our economy of covid-19 and Brexit.

We have heard during this debate a familiar refrain: that our colleges have been ignored too long by successive Governments, and that they must finally be taken seriously. However, I somewhat take issue with that lazy characterisation, and with the suggestion that recent announcements by this Government constitute some kind of golden age of FE. In welcoming the campaigning zeal of the hon. Member for Waveney I also want to ensure that the record of this Government is properly put under the spotlight, because it is not a case of “it was ever thus”.

As was revealed by my recent written question, £2.61 billion was invested in further education capital expenditure in the final five years of the previous Labour Government. In the following five years, the Government reduced that spending in actual terms by a shocking 64%. In all, colleges have endured a decade of cuts amounting to a third of their budget, while attempting to continue to be at the forefront of equipping young people and adults in every area of the country with the skills they need to succeed. What is more, we have seen adult education funding slashed by 50% in real terms and appalling failure on careers guidance, and the Government announcement just this week that they were scrapping their “Get Help to Retrain” initiative—the centrepiece of the national retraining scheme—less than three years after it was announced should give us all pause for thought.

As we enter this period in which we are asked to believe that the Government have finally accepted the need for a skills-based economy, we do so in the shadow of the vindictive and destructive announcement that they are scrapping funding for the Unionlearn programme that their own assessment was so complimentary about. That is perhaps more revealing than 1,000 press releases. At the same time, we know that, just a few months ago, the Government sent £300 million of apprenticeship levy funds back to the Treasury. There is far more generous funding for the commitment-free kickstart programme than for apprenticeships, and the hon. Member for Mansfield (Ben Bradley) was absolutely right to say that SMEs are shut out of our apprenticeships far too often. The Association of Colleges has stated that colleges face a shortfall of £2 billion this academic year.

There is so much more to say about our further education sector, but unfortunately there is not the time in which to do it, so I will close with this: we need a Government that recognise that colleges are a fundamental part of our skills and economic ecosystem and that do not pit them against universities or even see them as opponents of the independent provider sector, but that see them working collaboratively across the piece. We need a Government that introduce policy based on evidence and then give policies a chance to work. We need a Government that are honest about the fact that the scale of funding cuts means that the current investment is a tiny step back up the mountain.

We need a properly resourced Department for Education that sees FE colleges working collaboratively with employers, universities, trade unions and Government schemes, and we need a Government that recognise that not all people can get careers advice from their father’s friends at the golf club. We need a skills system that works around real people’s lives and supports them to retrain without their families going hungry while they are doing so. Colleges are capable of playing the role we need them to, but not unless the Government show the humility and resolve to recognise where those colleges are starting from and what is required to help them back to the place they should be in: at the heart of a skills system relied on by employers, valued by learners and every bit as good as the very best in the world.

[Mr Clive Betts (in the Chair)]

Minister, you have 10 minutes, in order to give the mover a brief opportunity to wind up.

--- Later in debate ---

[Gillian Keegan]

My right hon. Friend is absolutely correct. I actually had a meeting about this long-standing problem just before I came here, because careers is a key pillar of our FE and skills White Paper to ensure that everyone understands the routes. The Careers & Enterprise Company has done a lot of work to ensure that young people get a broad range of opportunities to talk to businesses, look at career opportunities and visit colleges and universities, but not everyone gets all of the information they need to make an informed decision.

Hon. Members will all be aware of the skills recovery package and the Chancellor’s plan for jobs. There is a lot of investment in apprenticeships, traineeships and classroom-based study. We are also extending the National Careers Service and putting in an extra £32 million to provide additional careers support.

FE providers have always been key to delivering adult education as well. Therefore, as we develop our plans for reskilling adults, that will include an extra £2.5 billion over the course of the Parliament for the national skills fund. Contrary to what was said by the shadow Minister, the hon. Member for Chesterfield (Mr Perkins), the national retraining scheme has not been scrapped; it will be built on and become part of the much bigger national skills fund. The national retraining scheme had £100 million; it will be £2.5 billion for the national skills fund.

[Mr Perkins]

Will the Minister confirm whether the “Get Help to Retrain” scheme has been scrapped?

[Gillian Keegan]

The “Get Help to Retrain” scheme was a pilot website in six areas, and all the learnings from those pilots will be brought into the new national skills fund. It will be called something else, but the learnings will not be lost. Digital bootcamps are also a new addition, which I am sure many hon. Members will welcome.

These policies are all part of a wider rebalancing between HE and FE, making FE a more attractive choice. However, we are not leaving out the basics. We mentioned capital programme funding, much of which in the past went via the local enterprise partnerships, and it was not always ring-fenced, which led to shortages in some areas.

My hon. Friend the Member for Waveney raised some interesting ideas including business centres and focused areas of investment. There will be much discussion between colleges, the Association of Colleges, business groups and the Government to address those issues. We are listening to ideas about how to strengthen the sector, and we will publish a White Paper in the near future.

There has never been a more important time for this. We are facing significant skills shortages in key sectors, including construction and engineering, as mentioned by my hon. Friend, but there are many others. Until recently, we also had low levels of unemployment. However, the prospect of dire levels of unemployment means that now is the time to ensure that we invest in our FE sector and build back better as a nation.