Skills and Post-16 Education Bill [ Lords ] (First sitting)
Toby Perkins Excerpts(4 years, 4 months ago)
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Mr Toby Perkins (Chesterfield) (Lab)
It is a great pleasure to serve under your chairmanship, Mrs Miller. I would like to take a moment at the start of these proceedings to talk about the importance of the Bill and the approach that the Labour party will be taking to it, alongside Government amendments 4 and 5.
The skills Bill is of tremendous importance. We recognise that there has been, for a significant time, too little investment in skills and in the next generation. In particular, the drastic funding cuts during the past 11 years have had a dramatic impact on our further education sector and on the skills of the nation. It is recognised by many businesses, employers and players in the further education sector that we have fallen behind.
The Bill represents the Government’s approach to addressing the backlog, and they tell us that this approach places employers at the heart of the skills strategy and skills agenda. When I first heard that, it sounded familiar to me, having been a Member of Parliament for the past 11 years. I thought, “Where have I heard it said before that employers will be at the heart of the skills strategy?” I believed that I had heard that from a previous skills Minister, so we did a bit of research in my office, and it turns out that we have heard it from almost all of them.
Back in January 2011, the then skills Minister, the right hon. Member for South Holland and The Deepings (Sir John Hayes), said of the Government’s approach to skills and apprenticeships:
“The entire focus of our Skills Strategy is in building a training system that is employer led…Indeed helping meet those skills needs, in businesses across the country, will make a major contribution to economic growth.”
In 2015, the apprenticeship levy was introduced, and the former Chancellor of the Exchequer, George Osborne, told us that we now had a system in the hands of an employer-led institute for apprenticeships, and that his levy would be a
“radical, long overdue” new approach to apprenticeship funding. He said in this place that it was
“to raise the skills of the nation and address one of the enduring weaknesses of the British economy.”—[Official Report, 25 November 2015; Vol. 602, c. 1370.]
His skills Minister at the time, former Tory MP Nick Boles, said:
“At the heart of the apprenticeship drive is the principle that no one better understands the skills employers need than employers themselves.”
By 2017, the Government were telling us this:
“The Apprenticeship Levy is a cornerstone of the government’s skills agenda, creating a system which puts employers at the heart of designing and funding apprenticeships to support productivity and growth.”
In 2018, the then Education Secretary, now the Minister for Security and Borders, told us that local enterprise partnerships were
“business-led partnerships…at the heart of responding to skills needs and building local industrial strategies that will help individuals and businesses gain the skills they need to grow.”
The rhetoric behind this Bill is exactly the rhetoric that we have been listening to for the past 11 years. Indeed, if the approaches of the past 11 years, which we were told placed employers at the heart of skills policy, had worked, we would not need this Bill. The Government are once again returning with the same prescription for the same ailment. They are once again failing to meet the size of the challenge, and in some cases are heading in the wrong direction altogether.
We have a new Secretary of State in post, of course. He is at great pains to tell people that there will be a change of tone and approach. The Bill was the brainchild of the right hon. Member for South Staffordshire (Gavin Williamson), if that is not an oxymoron, who was his predecessor—a man who believed in seizing as much power for himself as possible. Since the appointment of the new Secretary of State, we have been told there will be a change of tone and approach, but the Government’s approach to the cross-party amendments brought by their Lordships is not promising.
We entirely support the amendments in this group, which are about the mayoral combined authorities, but it is remarkable that the Government needed to introduce them; that demonstrates that the Government produced the skills Bill without any recognition of the issue.
Tom Hunt (Ipswich) (Con)
The hon. Gentleman has identified a key challenge that the Government are looking to tackle. It will clearly be difficult, but we hope that they will be successful. Does he agree that part of the reason why the challenge is so significant is that the previous Labour Government almost entirely ignored technical education and skills, with their obsession with universities and a 50% target?
Mr Perkins
I am glad that the hon. Gentleman raised that question. That has long been the lament. I speak to my colleagues who were involved in skills policy under the Labour Government, and their retort is that the investment in skills under the Labour Government was far greater than what we have seen in the 11 years that followed. There is nothing contradictory in wanting a strategy that allows as many people who want a university education and who are capable of it to have one, and that also has a real commitment to investment in skills.
Over the 11 years of this Government, we have seen the trashing of the idea that universities should be an aspiration for everyone. Alongside that rhetoric—an example of which we have just heard from the hon. Gentleman—we have seen a massive reduction in the investment in skills, and we have seen policies that do not work. The apprenticeship levy led to a massive reduction in the number of apprenticeships. What is said is one thing; what is done is quite another.
Matt Western (Warwick and Leamington) (Lab)
Back in the mid-2000s, did not the Labour Government, who predated my time here, introduce national skills academies? The whole point of them was to develop skills across the piece and drive the development of courses that could run in colleges across the UK.
Mr Perkins
My hon. Friend makes an important point. We feel very strongly that we need investment in skills, but we also need a strategic approach that brings in different Government Departments and recognises that skills are the responsibility of not just the Department for Education, but of the Department for Business, Energy and Industrial Strategy and the Treasury. There has to be recognition that this is about the kind of economy, as well as the kind of skills system, that we are looking to build. My hon. Friend makes a powerful point on the Labour Government’s approach, and the investments they made.
Lia Nici (Great Grimsby) (Con)
I was a college lecturer in the era that the hon. Member for Warwick and Leamington mentioned. Curriculum 2000 was an absolute, unmitigated disaster. AVCEs—advanced vocational certificates of education—were withdrawn very quickly. The money that was pumped in was pumped into all the wrong places, and we ended up in a situation where people went to university because there were no proper options for BTECs at level 4 or level 5, or Cambridge technicals or City and Guilds, or anything else. It is not just BTECs but the Pearson monolith we are talking about here.
Mr Perkins
I thank the hon. Lady for that intervention. I accept that she has a long track record in this sector, and that is an important contribution to this debate. The investment in skills then was on a different level from the investment that has taken place since. I am very happy to spend the entire debate talking about the previous 20 years; it would be interesting but not entirely fruitful. I accept that she feels, as she said on Second Reading, that changes to higher national diplomas were damaging; she was negative about the drive towards university education. Like the Labour Government, I believe that we should recognise that it is a brutal world for those who do not have skill. A drive towards university education should not be at the expense of college education; they should be two hands working closely together.
The Chair
Order. You cannot intervene on an intervention. I will allow Mr Perkins to respond.
Mr Perkins
It was such a controversial intervention that people wanted to intervene on it. I do not entirely accept what the hon. Member for Great Grimsby says—that a university degree is not a contribution to the skills of the nation. She hits on a view that is at the heart of much of this Government’s approach, which is that education has value only in so far as it is used in the work that someone goes on to do, and that there is a very narrow distinction between skills or vocational education, which is useful, and university education, which is theoretical, abstract, and of little value. I do not recognise that distinction at all.
The Chair
May I gently remind people that, while I think it is appropriate to have a broader debate at the beginning, we are talking about amendments 4 and 5?
Mr Perkins
Sure. I take your point, Mrs Miller. However, the intervention from the hon. Member for Great Grimsby highlights an important broader issue: of course skills and vocational education will always need to lead people being able to find work, but constantly decrying university education, on the basis that it is somehow not delivering that, is mistaken. There has been a real drive by this Government to frame the further education and higher education sectors as enemies that must be pitted against each other. Our approach recognises them as two important, powerful strongholds in supporting this nation to be the kind of nation that it wants to be.
Mr Perkins
I will give way to my hon. Friend the Member for Denton and Reddish; then, if my hon. Friend the Member for Luton South wishes to come in, I will take her intervention.
Andrew Gwynne
I am grateful to my hon. Friend. I think he is absolutely right: we are heading into that age-old trap of not only dividing the academic from the vocational in further education, but implying that higher education is solely an academic route. There are many vocational higher education qualifications out there, and we must not ignore that. On Government amendment 5, the exact point that Andy Burnham—the Mayor of Greater Manchester—and the Greater Manchester Combined Authority have been making for years is that for the Greater Manchester city region to succeed, we must ensure that its skills agenda embraces not only the academic but the vocational, so that we have the skills for the jobs of tomorrow.
Mr Perkins
I encourage my hon. Friend to expand on that point, because he is absolutely right. It is remarkable that the Government have been forced to introduce Government amendment 5, because it means that they brought the Bill forward without recognising any role for authorities that already have this funding devolved to them in the first place. It is a fairly dramatic change. The approach that Labour would take to local skills improvement plans is fundamentally different from that of the Government.
The Government are taking the approach that these are employer-led documents—that phrase again. They are documents of tremendous importance, so presumably the chambers of commerce will be holding the pen on them and will now, as a result of Government amendment 5, be forced to convince the Secretary of State that they have properly taken on board the views of those democratically elected to lead on skills policy in their areas. So many other important contributors are left on the side lines.
Labour’s approach would be to say that we need to recognise the importance of local skills improvement plans that will dictate the direction of skills policy. What we need is a local skills improvement plan that brings together the role of public and private sector employers; that brings in further education colleges; that brings in significant independent training providers within an area; and that is held together by those with democratic accountability, such as metro Mayors and local authorities. That holistic approach would deliver a skills policy that everyone would be able to get behind and recognise as representative.
The Government’s approach is very much about placing the chambers of commerce at the heart of this, but in fact they have had to bring forward an amendment to even put the metro Mayors and combined authorities back into that role. We support Government amendment 5, but it is remarkable that it was necessary at all.
I would like the Minister to expand on whether Government amendment 4 impacts clause 6 in terms of the duty placed on local skills improvement plans for compliance with section 1 of the Climate Change Act 2008. It is crucial that skills policy drives us towards a net zero future, so it is important to understand whether the intention is to undermine that commitment when it comes to Government amendment 4.
Again, we support Government amendment 5, although we are confused about why it is needed and why it was not central to the approach. As my hon. Friend the Member for Denton and Reddish mentioned, it is important that we recognise that mayoral combined authorities and the Greater London Authority already have responsibilities in terms of policy and funding for further education and skills, and that they both have good professional relationships with employers, colleges and training providers in their areas. I have been along to meet them in Manchester and have seen their excellent work on careers guidance and their constructive approach to independent providers and the FE sector. That is a great example of how devolved decision makers are better in touch with the needs of their communities than a centralised approach.
It is a shame that the Bill, the brainchild of the former Secretary of State, is a return to the centralisation agenda that has too often bedevilled Whitehall thinking. It was clearly a driving force in the legislation. It is inconceivable that local skills improvement plans could have flown in the face of decisions made locally. It is therefore important to understand what protections there will be for existing funding arrangements with regard to those put in place by metro Mayors. Will they be transferred to employer representative bodies or will there be a dual system?
The Government propose that employer representative bodies consider the views of mayoral combined authorities or the Greater London Authority but, as was said by the hon. Member for Ipswich on Second Reading, what does that say about those communities that are not within metro Mayor areas? The majority of my colleagues on the Labour Benches are in metro Mayor areas—I am one of the relatively few who are not—but many colleagues on the Conservative Benches are in areas that have local enterprise partnerships, which were originally meant to bring together many of the different power brokers. It seems that democratic accountability is missing entirely in areas outside the metro Mayor areas.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
This is a crucial point, which I hope we will come to as our consideration of the Bill develops: how do we define regions and regional consultation? The hon. Member for Great Grimsby might have an idea completely different from mine about what constitutes the best region when looking at skills and skills development. I hope that the Minister will take that point away and look to define that later as we go through the Bill.
Mr Perkins
Absolutely. To return to the subject of the amendment concerning mayoral combined authorities, the phrase “due consideration” is noticeably vague. The kind of due consideration that the right hon. Member for South Staffordshire might have given to the views of the Mayor of Manchester would have left me—and, no doubt, the Mayor of Manchester—with sleepless nights. We hope that a more thoughtful approach is now in place and we welcome the change of tone, but we are not seeing a change in policy.
Emma Hardy
On that issue of “due consideration” and its vagueness, will the Minister agree to look at producing some guidance on what constitutes due consideration? Is that a consultation that has happened on one occasion, or on a number of occasions? How do we define “due consideration” to ensure that the democratic accountability to which my hon. Friend is referring is put at the heart of the Bill?
Mr Perkins
I agree with that absolutely. The next part of that—to extend what my hon. Friend is saying—is to ask whether there is a right of appeal for a combined authority or metro Mayor in the event that they do not consider that due consideration has been given to their views. If they think that the employer representative body has put together a local skills improvement plan that has not taken into account the representations made on one or more areas, will there be a right of appeal? Will the fact that the metro Mayor considers that due consideration was not given be able to pause the local skills improvement plan and bring people together?
What role does the Secretary of State consider that he will have? As I said, the previous Secretary of State was very much a centraliser—he wanted his hands on every single decision—and that clearly runs through the Bill. He had all these frustrations with the fact that individual organisations were not doing exactly what he wanted, so he wanted the power to tell them that they had to. Is that the sort of approach that this Secretary of State will take? Having appointed the chambers of commerce to make decisions before those who are democratically elected to do so, he appears to be positioning himself as the arbiter in a whole variety of local decisions. I look forward to the Minister’s response.
Emma Hardy
It is a pleasure to serve under your chairmanship, Mrs Miller. Looking at the room, I see that people on both sides are genuinely interested in education matters. I hope that this will be a good Committee that really scrutinises the legislation before us in a shared ambition to make the Bill the best that it can be.
I will be brief. I have already made an intervention about guidance on what constitutes due consideration and about the arbitration processes for conflict over whether someone believes they have been duly considered. Will there be a timeframe for that due consideration? Local engagement and agreement for the skills plans is absolutely crucial, so having that clearly laid out is fundamental.
I hope the Minister will clarify something. I may be misreading the Bill, but am I right in thinking that further education colleges have been removed from consultation, or is that part of a later amendment? The Lords tabled an amendment to ensure that local school improvement plans are co-developed with colleges, local government, elected Mayors, employers and so on. Am I right in thinking that colleges are no longer listed as part of the consultation process, or will that be addressed in another amendment? I may have made a mistake, in which case the Minister will correct me.
We are basing everything on employers and the jobs available now, but has the Minister thought about future-proofing the local skills development plans to include industries that will be developed in future, especially in relation to climate, green changes and so on? We might create the best possible plan for jobs that exist now, but that might not be the plan that we want in five years’ time, so will such future-proofing be included?
Tom Hunt
I will make just a few very brief comments. I think that the local skills improvement plans are a huge step in the right direction. It is clearly crucial that local businesses should play a role in shaping the curriculum of further education colleges. We need to have far more of an ecosystem approach when it comes to the role of employers, schools, FE colleges and further education. Too often, it seems as if they are kind of on the sides.
Mr Perkins
What does the hon. Gentleman say to my earlier point, which was that what he is saying is exactly what has been said about every single Conservative skills reform in the last 11 years? They always claim that they are putting employers at the heart of the measures. Why does he think those previous approaches have failed?
Tom Hunt
To be honest, we are dealing with the Government we have today. I can say, as somebody with an interest in further education and skills, that this Bill is actually the most significant and potentially game-changing piece of Government legislation. My job is to look at the Bill before us today, and I think it is hugely in the right place. That is not to say that improvements cannot be made at this stage, and we will engage in doing that.
There is one quick point that I would like to make. When we talk about the local skills improvement plans and local employers playing a greater role in shaping the curriculum of further education colleges, I think it is important that we consider what might happen. I imagine that the vast majority of education providers will play ball and welcome that input from local business, but on occasions where there may be some resistance and that does not quite work, is there something that could be done to ensure that they come to the table to accept the advice and a steer from local business?
On my comments on Second Reading, which the hon. Member for Chesterfield has often mentioned, I recognise that there is a significant difference between mayoral combined authorities and regular upper-tier local authorities. Certain powers and funding have been devolved to mayoral combined authorities, and we do not have them in every area. I accept that, and I accept why the Government are treating mayoral combined authorities slightly differently from regular upper-tier authorities such as Suffolk County Council. I guess my view would be that the solution is to have more devolution. As somebody who recently, with other Suffolk colleagues, supported a bid for One Suffolk, I would be very happy if there were positive movements so that Suffolk was in a place to have the powers for its principal authority to play a role in local improvement plans.
Andrew Gwynne
I am grateful to my hon. Friend for that intervention—probably almost as grateful as she is to have had the chance to make that press release—and she is absolutely right.
I firmly believe that the skills agenda is linked to the industrial strategy agenda, not just for individual city regions, towns and counties, but for the country. If we want Britain to succeed, we must think not just about the here and now, but about the future. That involves bringing together skills and industrial strategy. In a small way, that is what we are doing in Greater Manchester through the devolution agenda.
Mr Perkins
My hon. Friend is making an incredibly important point, which is at the heart of the difference between Labour and Conservative approaches. This Government’s approach is about moving towards a German-style skills system, but the Treasury and Business teams do not want a German-style economy. I very much welcome a step towards the German-style approach, but the Government are trying to impose a model on top of our economy, and that cannot be done without the drive towards an industrial strategy.
Andrew Gwynne
My hon. Friend must have eyes in the back of his head, because that was pretty much the next point that I wanted to make. It all hinges on the term “due consideration”. We are doing this in city regions such as Greater Manchester, and we are getting there. We have the skills, and we have good collaboration with local businesses to shape the agenda. We have a shared vision. I accept that that might not be the case in other devolved areas—there might be a degree of friction between the business community and the combined authority—but in Greater Manchester, it is genuinely a partnership. The skills programmes, strategies and priorities are genuinely developed in partnership.
The Minister talks about “due consideration” in relation to the amendment, but I want assurances from him that Ministers will take a genuinely collaborative approach and we will not end up with some monolithic, top-down and Whitehall-knows-best approach being imposed on city regions that are already starting to develop the very skills strategies that are envisaged in the Bill. I will be grateful if the Minister can address my concerns.
Mr Perkins
My hon. Friend is making an incredibly important point. We have a couple of enthusiasts for devolution of power on the Government side of the Committee, but I fear they may be disappointed because the Government’s approach to devolution is very much less enthusiastic than that of the previous Conservative Governments in 2015 and 2017. The Bill, which seeks to bring a lot of power back to the centre, seems to prove that.
Matt Western
I agree with my hon. Friend, and I think many hon. Members, including the hon. Member for Mansfield, will be disappointed about that. It is really important that the Government send clear messages about devolution and what they want to see, but in many facets of Government business there seems to be a greater concentration of powers coming into Whitehall and Ministers’ offices than devolution to the likes of Mansfield, Manchester, Liverpool the north-east and so on.
As I said, one of the great learnings of the last 20 months is just how brilliantly our local services and authorities can deliver things. That is because they understand their geography, their communities and their populations. I am concerned about how due consideration, a much-vented issue in the last half hour, might work, particularly given the reliance on the personality of the individual who happens to be in the seat at the time. I will not go into any further detail on that because it has already been much explored.
Will the Minister provide a bit more information on what factors will be considered in the designation of an LSIP? The Local Government Association has stated:
“the reforms need to be implemented as part of an integrated, place-based approach. Without a meaningful role for local authorities, the reforms risk creating an even more fragmented skills system, with different providers subject to different skills plans”
I urge the Government and the Minister to listen and respond to the experience of the Local Government Association.
Alex Burghart
That point is well made, and I very much hope to visit Warrington in the near future and see that good work.
Mr Perkins
The Minister may have received guidance that might help him, but as I understood it, paragraphs (a), (b) and (c) of subsection (6) all remain in the Bill; he is simply adding proposed new subsection (6A), which we have just been debating. The amendment does not take out any of the paragraphs in subsection (6), unless I have misunderstood it.
Alex Burghart
To bring a bit of clarification to proceedings, the hon. Gentleman is quite right. Contrary to some of the messages that Opposition Members gave earlier, we are keeping all of clause 1(6)—that means paragraphs (a), (b) and (c).
Amendment 4 agreed to.
Amendment made: 5, in clause 1, page 2, line 32, at end insert—
‘(6A) Where a specified area covers any of the area of a relevant authority, the Secretary of State may approve and publish a local skills improvement plan for the specified area only if satisfied that in the development of the plan due consideration was given to the views of the relevant authority.
For this purpose “relevant authority” means—
(a) a mayoral combined authority within the meaning of Part 6 of the Local Democracy, Economic Development and Construction Act 2009 (see section 107A(8) of that Act), or
(b) the Greater London Authority.’—(Alex Burghart.)
The effect of this amendment is that the Secretary of State must be satisfied that due consideration has been given to the views of a mayoral combined authority or the Greater London Authority before approving a local skills improvement plan for an area that covers any of their area.
Alex Burghart
The amendments strip back some of the detail in clause 1(7), which can be better dealt with in statutory guidance. As well as engaging a wide range of employers, a designated employer representative body should work closely with all relevant providers, local authorities and other key local stakeholders to develop its plan. Without such widespread engagement, the resulting plan is not likely to be very effective. Key stakeholders with valuable local intelligence include, but are not limited to, the Careers and Enterprise Company, local careers hubs, National Careers Service area-based contractors and Jobcentre Plus. Our expectations on local stakeholder engagement will be set out clearly within the statutory guidance. The guidance can be updated regularly to reflect evolving needs and priorities, as well as best practice. It also enables the required level of detail to be captured.
Clause 1 already places duties on relevant providers to co-operate with employer representative bodies to ensure that their valuable knowledge and experience directly inform the development of the plans, so that they are evidence-based, credible and actionable. Clause 4 makes it clear that relevant providers include independent training providers and universities. I therefore do not believe that the Lords amendment is needed, particularly given the MCA and GLA amendment that we have just discussed.
Mr Perkins
These are four significant amendments. Notwithstanding the assurances that we have just received from the Minister, they specifically take out what I think was a very strong amendment, supported by Members across the House of Lords, that added the importance of a collaborative approach to the Bill. For all the Minister said in that contribution, and the one before, about the importance of these partnership arrangements, it is not really a partnership arrangement. It is clear that all those consultees are subservient to the chamber of commerce which, ultimately, holds the pen and makes the decision. That report will then have to meet with the approval of the Secretary of State. The hon. Member for Mansfield raised in a previous debate the question of what happens, given the huge variety in the strength of different chambers of commerce, different local enterprise partnerships and so on, in the event that a local skills improvement plan goes to the Secretary of State and is considered not be adequate? Obviously, we can only assume that the Secretary of State would send it back.
Chambers of commerce are very varied organisations; I think everyone would recognise that there are some excellent ones—I count those in Derbyshire and the east midlands as an example of that. However, there are others that are much smaller and have very different areas of responsibility. Chambers of commerce are membership organisations that represent some of the businesses in their community; that is unlike chambers of commerce in Germany, which are compulsory for businesses to join, and therefore are representative, quasi-governmental organisations. In this country, chambers of commerce are one of many different business organisations that businesses might choose to join. Different chambers have different areas of priority and expertise and different industries that are particularly important to them. Even among their memberships they have, in my experience, a small number of members who are very active within them, and large numbers of members who take a much less active role.
What we have in the context of many of the consultees that the Minister referred to going into the guidance notes, are a number of organisations that are in some ways more consistent, and will definitely offer a breadth of approach. Therefore, the fundamental difference of the approach that Labour would take in the Bill, compared with the Government, is around whether it is a true partnership. The difference is whether it is a partnership that recognises the voices of public and private sector employers and of further education colleges, that recognises the power of those independent training providers that do such great work across the country, and that recognises statutory organisations such as jobcentres, all of which have a role in this, or whether, as the Bill says, they are all consultees, but the chamber of commerce ultimately writes this plan. We would like to see far greater parity in that power; we think it is a local skills improvement plan that would have more buy-in and more belief in the local community, and would be much more respected on that basis.
Emma Hardy
I am sure that my hon. Friend shares my concern, given amendment 6, that the specific reference to further education providers is removed from the Bill. Any local skills plan needs to be done in conjunction with further education providers; there is no point writing a Bill that does not have the capacity to deliver in that local area. It seems slightly odd that a specific reference to further education has been taken out of the Bill.
Mr Perkins
I agree with my hon. Friend. She is right that Government amendment 6 removes the words,
“in partnership with local authorities, including the Mayoral Combined Authorities and further education providers for the specified area”.
The Minister says that we should not worry, it will be in the guidance. However, the different approach by the Lords recognised that it was a genuine partnership. These organisations are now consultees that will make their representations to the chamber of commerce, and hope that the chamber of commerce smiles on the view they put forward. It is a totally different type of relationship. The relationship is either one of partnership or of subservience; the approach the Government choose to take is one of subservience.
Matt Western
My hon. Friend is making some very important points. On the face of it, it would seem that the Government seek to make local employers’ organisations ultimately responsible for the direction and control of our colleges, and potentially our universities as well.
Mr Perkins
In terms of areas that are not already devolved, that is absolutely right, and adult education budgets will be very relevant.
Hon. Members will be pleased to know that I will not dwell on the subsequent amendments, because we will have an opportunity to debate them, but I will touch on some of our concerns about the way in which the needs of learners might not necessarily be at the forefront of people’s minds in chambers of commerce. For example, to what extent will chambers of commerce be aware of the specific needs of people with education and healthcare plans or other disabilities? The amendments seek to reduce the extent to which it is partnership working and move to a hierarchy, with the chamber of commerce holding the pen and driving the bus, and others making suggestions about the route.
Emma Hardy
My hon. Friend is absolutely right as to whether it is a true partnership relationship or a relationship of subservience. I draw hon. Members’ attention to amendment 7. Not only does amendment 6 leave out specific reference to further education providers; amendment 7 leaves out specific reference to community learning providers, designated institutions and universities. Again, it is no longer a partnership, as was written in the Lords amendment. It becomes a situation in which central Government make the decisions and education providers are in a subservient relationship with them. My hon. Friend is absolutely right.
Mr Perkins
I thank my hon. Friend for saying that, and I agree. Government amendment 7 is consequential to Government amendment 6, and she is right about what that means. We have real concerns about how employer-representative bodies and LSIPs will fit within sectoral expertise in sectors such as construction and manufacturing, which transcend local areas but are incredibly important, particularly where our economy is hugely lacking in the development of the next generation.
It is really important to recognise that we have huge skills shortages in the public sector as well as the private sector. Health and social care is a classic example, but there are many others. The voice of the public sector must be heard, and we must ensure that it is able to support people who aim to get from unemployment into a trained-up place in the workplace, because they are also central to this sort of approach. I am interested to hear from the Minister what framework he envisages for LSIPs aligning with sectoral programmes and a national industrial strategy.
Government amendment 8 removes the words, “by people resident”, from the sentence about the skills required in a local area. The purpose of the Lords amendment was important: it was to ensure that LSIPs focused not just on the needs of employers but on the people resident in a community. What would happen in a situation whereby employers were satisfied with the extent to which they were able to access the skills that they needed, but a large number of people were employed and unable to get into the labour market? Ultimately, it is not the responsibility of chambers of commerce to address youth unemployment; it is the Government’s responsibility. If businesses consider that they are able to access the skills that they need, but there is still a large number of people who are unemployed, who takes responsibility for that? The Lords amendment ensured that the people who were resident in a local area were considered in the local skills improvement plan. The Government are taking those words out, which means that it goes back to being a plan put together by businesses to solve the needs of businesses, regardless of whether that addresses the problems of people struggling to access the labour market.
Emma Hardy
My other concern with the amendments, which I hope the Minister will address, is about areas with many small and medium-sized enterprises. Areas with large numbers of big employers can obviously exercise that strong voice, for example through chambers of commerce, but I am worried that in areas such as Hull, with predominantly SMEs, as I am sure Government Members will recognise, that voice will not come through as strongly.
Mr Perkins
My hon. Friend worries with due cause. Since the introduction of the apprenticeship levy, small businesses have found it incredibly difficult to access apprenticeships. There has been a huge driving down in the number of people getting apprenticeships within small businesses. In areas such as Chesterfield, where smaller employers make up the majority of the economy, the apprenticeship opportunities are much lower than they were a few years before. Ensuring that the voice of small business is heard within this is incredibly important.
The Minister did not really talk about this amendment at all, but the Government might say that the skills plan also needs to have a focus on those relevant to a local employer who are not currently resident—we might call it the “on your bike” amendment, with the Government saying, “We want an approach that identifies skills needs of people who are not currently here.” If that was their intention, then it could have been worded to ensure that there was a strategy for attracting new workers. Simply taking those words out means that this is a plan for the employer community that does not have to consider those questions around the learners who are excluded from the labour market if those employers consider that they are relatively satisfied with what they are able to attract.
There is an important point here. At the moment, shortly after Brexit, there is a lot of focus is on skills shortages and staff shortages, and the sense, which I totally agree with, that we need to make more of the people we have. However, there may be other times when there is a real surplus of unemployed people, and we need a strategic approach that, in those times, supports those people into work, even if there are not a huge number of vacancies in the labour market. I think that those words are important.
Government amendment 9 removes the words “and other local bodies” from the clause concerning post-16 technical education, which was an amendment that the much-respected Lord Baker of Dorking added to the Bill. The Lords amendment that this Government amendment seeks to undo was drafted to avoid being too prescriptive, but it would have allowed LSIPs to work closely with other agencies, including Jobcentre Plus and careers advisory services, in providing careers information, advice and guidance.
All those organisations are important to ensuring that they are able to get into schools and support young people to get representation and ideas from both the business community and environments that they have not been familiar with. I would have thought that an amendment recognising that the careers responsibility is not just a responsibility of schools, but something that should be open to businesses, would have very much fitted with the spirit of the Bill. It was an opportunity for the Government to enable other bodies to play an important role in that post-16 technical education and careers guidance, and it is therefore disappointing that it was taken out.
We agree with their lordships on the introduction of these amendments, and we are disappointed that the Government are seeking to remove them. On that basis, we will look to support the amendments brought in by their lordships and disagree with these Government amendments.
Rachel Hopkins
It is a pleasure to serve under your chairship, Mrs Miller. It is appropriate that I declare an interest as a vice-president of the Local Government Association and as a governor of the fantastic Luton Sixth Form College. I support the speech given by my hon. Friend the Member for Chesterfield, the shadow Minister; I was also very disappointed.
The irony is not lost on me that a slightly less democratic place wanted to put more democracy into this Bill, which I was very pleased to see. The Government amendments take out democracy by removing the references to local authorities and mayoral combined authorities. I heard the Minister’s comments about expecting it to be collaborative and wanting good will between the different organisations. In order to ensure that all parts—the legs of the chair, so to speak—are in the Bill, the amendments made in the House of Lords should stay there.
I have a great passion for local authorities and the role they play in adult education. They have already been doing great work, understanding their own areas. In the general debate the point was raised about the role that locally elected leaders, local authorities and combined authorities play in place making, and the skills agenda is key to that. One of the points that has not been referred to specifically comes under amendment 7, which would take out the reference to the “long-term national skills” strategies. That is wholly important and not just secured through local businesses thinking about the skills they need roughly now. Retaining that reference to the long term and the statutory responsibilities of local authorities and combined authorities in the Bill would create a much firmer and stronger situation in our local areas. I speak as a former councillor on Luton Council. Great work is done at local grassroots levels.
Andrew Gwynne
It not only feels unfair; it is unfair. I get that mayoral combined authorities have specific skills responsibilities devolved to them, so clearly the level of input from a mayoral combined authority is greater than that of a county council or a unitary authority that does not have those specific responsibilities devolved to them, but the council’s strategy for that area will involve education, skills and economic development. Those are important elements for county and unitary authorities.
Mr Perkins
I fear it is actually worse. The Government amendment agreed by the Committee a moment ago did give a role to mayoral combined authorities, but that role was that the Secretary of State had to satisfy himself that they had been consulted. The pen is still held by the chamber of commerce. The Lords amendment that the Government amendments in this group get rid of are about genuine partnership. The Bill, as brought from the Lords, states that it will include
“an employer representative body in partnership with local authorities, including the Mayoral Combined Authorities and further education providers for the specified area”.
That partnership is being entirely removed. Metro Mayors are being left as a statutory consultee, which the Secretary of State must satisfy himself are being consulted. The other partners will have no role whatsoever, except for in guidance, which will say, “Make sure you talk to them.” This change is about moving from a partnership approach to a consultee, subservient approach.
Andrew Gwynne
My hon. Friend the shadow Minister is absolutely right. When we look at what else is being deleted from clause 1, subsection (7)(b)(ii) talks about
“regional and local authorities, including the Mayoral Combined Authorities, within the specified area with specific reference to published plans and strategies which have been developed by these authorities”.
All those authorities have plans and strategies; I listed a number of them in relation to Greater Manchester. If the mayoral combined authorities are going to be involved in this, why take out a specific reference to the plans that have been developed by them? As I said previously, unitary authorities and county authorities have those strategies too, yet they have no say whatsoever.
Mr Perkins
On a point of order, Mrs Miller. Do we not decide on the other Government amendments? Are we doing those later?
The Chair
No, this is one of the wonderful complications of the Committee system. We do that later.
Mr Perkins
I beg to move amendment 27, in clause 1, page 3, line 4, at end insert—
“(iv) groups representing the interests of people with disabilities,”
This amendment intends to ensure that Local Skills Improvement Plans draw on the views of groups representing the interests of people with disabilities.
The Chair
With this it will be convenient to discuss the following:
Amendment 1, in clause 1, page 3, line 6, after “evidence” insert
“, including the views of relevant community groups including those representing the interests of disabled people,”.
This amendment intends to ensure that the evidence informing LSIP development includes information directly relevant to improving the employment prospects of disabled people.
Amendment 2, in clause 1, page 3, line 12, at end insert—
“(d) identifies actions to be taken to reduce the disability employment gap within the specified area.”
This amendment intends to ensure that the LSIP is used as a vehicle for improving the employment prospects of disabled people.
Amendment 28, in clause 1, page 3, line 12, at end insert—
“(d) identifies positive actions to reduce the disability employment gap within the specified area.”
This amendment intends to ensure that Local Skills Improvement Plans identify positive actions to reduce the disability employment gap within the specified area covered by the Plans.
Amendment 34, in clause 1, page 3, line 12, at end insert—
“(d) lists specific strategies to support learners who have or have previously had, a statement of Special Educational Need or an Education and Health Care Plan into employment, including but not limited to provision for supported internships.”
This amendment would require that local skills improvement plans list specific strategies to support learners who have or have previously had, a statement of Special Educational Need or an Education and Health Care Plan into employment, including but not limited to provision for supported internships.
Amendment 3, in clause 2, page 3, line 23, at end insert—
“(iii) the body is composed of employers who demonstrate reputable practice in relation to equality and diversity in employment, including in relation to disability, and”.
This amendment intends to ensure that members of the body with primary responsibility for creating the LSIP have sufficient understanding of and commitment to equality and diversity, including in relation to disability, to enable them to create an inclusive plan.
Mr Perkins
Amendment 27 was tabled by my hon. Friend the Member for Kingston upon Hull West and Hessle. Amendment 27 and amendment 1 would add the words
“groups representing the interests of people with disabilities”
and
“relevant community groups including those representing the interests of disabled people”
to clause 1, on local skills improvement plans. Given the discussion that we have just had, it is incredibly important that the consultees include those who represent people with learning disabilities and those who might be furthest from the labour market for a variety of reasons. Given the votes that have just taken place and are scheduled to take place, we are particularly concerned that there is a possibility that people furthest from the labour market, who will take the most work in order to contribute in meaningful employment, will be excluded. There is a disturbing lack of attention paid in the Bill to people with special needs or disabilities.
Amendment 1, which was tabled by my hon. Friend the Member for Rotherham (Sarah Champion), would enshrine a role for representative bodies to devise specific plans of support for people with disabilities in local skills improvement plans. That is of tremendous importance. One of the things that is most important for the FE sector, and one of the greatest contributions it makes, is to support those people who are furthest from the labour market to get the skills that they need, through such things as supported internships and other innovative ideas that many of us have seen in action in our local colleges. Those programmes often take a considerable amount of work, but they make a life-changing difference to those people. A skills Bill that genuinely represents everyone must be mindful of the need for the local skills improvement plan to ensure that no one is left behind.
Amendment 2, which also appears in the name of my hon. Friend the Member for Rotherham, is the same as amendment 28, and adds the need for an LSIP to identify positive—
Skills and Post-16 Education Bill [ Lords ] (Second sitting)
Toby Perkins Excerpts(4 years, 4 months ago)
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Mr Toby Perkins (Chesterfield) (Lab)
It is a pleasure to serve under your chairmanship, Mr Efford. I was coming on to discuss amendment 34, in my name and that of my hon. Friend the Member for Warwick and Leamington, which adds a new line to clause 1:
“lists specific strategies to support learners who have or have previously had, a statement of Special Educational Need or an Education and Health Care Plan into employment, including but not limited to provision for supported internships.”
Supported internships have huge potential. I saw an excellent example when I visited Derbyshire Education Business Partnership, which serves my constituency of Chesterfield, and witnessed its supported internship programme in Derby at first hand. Supported internships are incredibly important in supporting people who may be further away from the labour market, but they currently have a tiny take-up. Everything that can be done to drive up the number of supported internships should be done. They support people who might not be ready to go into the world of work right away but who, with the benefit of a programme like this, can get to know an employer really well; the employer can get to know their strengths as well as their challenges, and they can get into the world of work.
We tabled amendment 34 not only to encourage the Government to insist that strategies for those with special educational needs are expressly considered in local skills improvement plans, but to talk specifically about supported internships, which would make a real difference. Many of us are concerned that chambers of commerce and employers, who are experts in the needs of their workplaces and what skills they need, will not necessarily be aware of the challenges faced by those who are furthest from the labour market. They might be less likely to have strategies of that kind in LSIPs. However, if colleges had a more central role in the plans, chambers of commerce and employers would absolutely recognise the need for programmes of this sort.
I share the belief of my hon. Friends the Members for Rotherham (Sarah Champion) and for Kingston upon Hull West and Hessle, and many others who put their names to the amendments, that employer representative bodies should have the required training, knowledge and understanding of the educational and health needs of people with disabilities in general and of how people with disabilities can best be supported within a local area in particular. I hope that, when he responds to this group of amendments, the Minister will commit to ensuring that people with disabilities are not forgotten in the Bill, and signal that the Government have specific strategies to ensure that employer bodies have a duty to represent the needs of people with disabilities and support them into the workplace, so that they are not excluded any more.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
It is a pleasure to serve under your chairship, Mr Efford. I rise to speak in favour of amendments 27 and 28 in my name, and amendments 1, 2 and 3, in the name of my hon. Friend the Member for Rotherham. I want highlight that the Library briefing on the Bill states that 18% of the learners currently in the FE and skills sector have a recognised learning difficulty or disability. When we talk about people with disabilities, we are not talking about a very small minority; we are talking about 18% of those people. The amendments that I and my hon. Friend the Member for Rotherham have tabled are very similar. They all basically try to do the same thing: to ensure that the voices of disabled people are heard and recognised in the Bill. They also address the disability employment gap. Mr Efford, I should have mentioned that I am vice-chair of the all-party parliamentary group on SEND, which is where a lot of my interest comes from. I know from the work of the APPG and on the amendments that there is a lot of cross-party support for these measures, which we also saw in the Lords. This is not a party political issue. I hope the Minister takes it seriously.
Recent figures show that disabled people have an employment rate that is 28.4 percentage points lower than people who are not disabled. There is a huge disability employment gap and the amendments hope to address that. I recognise that the issue is complex and that there are a number of Government initiatives to address it, but it would be a missed opportunity not to use the Bill and the new process of skills planning that it brings about to help ensure that people with disabilities can contribute to their local economy and that their voices are heard in the discussion of what that local economy should look like. All too often, people with disabilities feel that their voices are not heard. The amendments aim to ensure they are listened to and recognised, and that some action is taken on the disability employment gap. That is the aim of all the amendments in my name and that of my hon. Friend the Member for Rotherham.
Mr Perkins
I appreciate the tone of the Minister’s response, but he has not really given us any detail on why he does not think it appropriate to have the wording in the Bill. Instead, he asks us to take it on trust that we will like the guidance when we eventually see it. We have to vote on the amendment. We have no idea what will be in the guidance. He has not said, “It’s written. It’s going to look like this—I just can’t show it to you.” There will be guidance and at some point we will see it, so can the Minister explain why it is not appropriate that we simply have a commitment in the Bill that LSIPs will have a strategy around supported internships?
Alex Burghart
On supported internships, I was very interested to hear about what the hon. Gentleman has seen going on in his constituency. I assure him that we are continuing to work to improve supported internships in England, including updating our guidance and, through our contract grant delivery partnerships in this financial year, developing a self-assessment quality framework for providers and helping local authorities to develop local supported employment forums. I respect his desire to see supported internships improve and go further. We share his ambition, but we are not putting every particular intervention that we favour in the Bill, so we will not single that one out for special treatment.
Alex Burghart
As I said in the previous sitting, statutory guidance is a powerful tool. If employer representative bodies do not adhere to statutory guidance, they may lose their designation. That is in the essence of statutory guidance. Given the significant amount of work already under way in this space, we do not believe that the amendments are necessary, but we agree with the direction in which they push.
Mr Perkins
I appreciate what the Minister has said. He has not really given us any detail on why he does not think that it is appropriate. I take his point on supported internships being one strategy: our amendment acknowledged that. However, in terms of amendment 1 on people with disabilities, we are not talking about a fractional thing that is not worth mentioning because there are so many other things that could be mentioned, but about a substantial body of people who have often been missed out by education providers. This is an opportunity to ensure that when the chambers of commerce, or whoever the employer representative bodies are, are writing their local skills improvement plans, those people do not continue to be left out.
I still think that amendment 1 should be accepted, so we will press it to a vote. I am willing to not press the other amendments in this group to a vote, but will look very carefully at the statutory guidance. I think that many people—such as my hon. Friend the Member for Kingston upon Hull West and Hessle and the cross-party group, which was very supportive of this—will listen to the Minister’s response and still wonder why the amendment is not appropriate. For future amendments, it would be useful if we had a bit more of a response as to why the Government are against it, rather than just the fact that they are.
Ben Bradley (Mansfield) (Con)
I might try to give the hon. Gentleman a clue on that question. We spent much of the morning arguing about why this policy needed to be locally led, why we wanted devolved authorities to take more control over it and why local government should have more of a say in it. Does the hon. Gentleman recognise how asking Government to dictate what must be in it conflicts with the arguments he has already made today?
Mr Perkins
The hon. Gentleman makes an interesting point, but what kind of devolution is it if we say “Well, look, it is up to local chambers of commerce to decide whether or not they have a strategy to support those who are disabled or furthest from the labour market”? If we have a document that must be signed off by the Secretary of State—so on the devolution argument, it is more “devolution of a sort”—what is wrong with saying, “And by the way, for that document that you sign off, we’d better know what the strategy is around disabilities”?
I do not think that the devolution argument is a strong one. Maybe, at a future point in the hon. Gentleman’s career, he will argue for devolution in some kind of role and say, “But trust me, I won’t be having any strategies for disabled people”. I cannot imagine that he would do that, or that any others would. Amendment 1 is just about making sure that those employment representative bodies understand the importance of this issue; that is why we will press it to a vote.
The Chair
We will come to a vote on amendment 1 after the next group of amendments. Do you wish to withdraw amendment 27?
Mr Perkins
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Mr Perkins
I beg to move amendment 33, in clause 1, page 3, line 4, at end insert—
“(iv) Local Enterprise Partnerships and the skills and productivity board,”
This amendment would require that local skills improvement plans draw on the views of Local Enterprise Partnerships and the skills productivity board, in addition to those bodies already set out in the subsection.
The Chair
With this it will be convenient to discuss the following:
Amendment 38, in clause 1, page 3, line 12, at end insert—
“(d) takes account of a provider of designated distance learning courses that are undertaken by residents of the specified area.”
This amendment would ensure that local skills improvement plans take account of distance learning providers.
Amendment 39, in clause 1, page 3, line 12, at end insert—
“(d) these conditions to include the requirement for the LSIP to give due regard to a national strategy for education and skills, which is agreed across the Department for Education, Department for Work and Pensions, Department for Business, Energy and Industrial Strategy, and the Department for Levelling Up Housing and Communities.”
This amendment would require Government to have a national strategy for education and skills, which is agreed across DfE, DWP, BEIS and DLUHC for which LSIPs would have to take account of.
Amendment 40, in clause 1, page 3, line 12, at end insert—
“(7A) The Secretary of State must prepare and publish guidance setting out the criteria used to determine the boundaries of a specified area for the purpose of this section.”
This is a probing amendment regarding the criteria the Government will use to determine what constitutes “local”.
Amendment 41, in clause 1, page 3, line 12, at end insert—
“(7A) Before local skills improvement plans are introduced outside of trailblazer areas, the Secretary of State must publish guidance relating to their implementation, subject to consultation of all Mayoral Combined Authorities and, where there is not one, the relevant local authority.”
This amendment seeks to ensure that local and combined authorities are consulted on the Government’s plans for the roll out of local skills improvement plans and are in a position to highlight any issues before publication.
Amendment 44, in clause 1, page 3, line 12, at end insert—
“(7A) Colleges and other providers may propose revisions where they consider that the plans do not appropriately reflect the full diversity of priorities across the locality.”
This amendment would allow colleges and other providers to propose revisions to LSIPs if they consider that plans do not reflect the full diversity of priorities across the locality.
Mr Perkins
I will go through these amendments relatively briefly. Amendment 33 is a probing amendment on the subject of the role of local enterprise partnerships and skills productivity boards. As I said at the start of this debate, those of us who were here in 2010 heard a huge amount from the Government about the role of LEPs. We have subsequently heard about the roles of SPBs, and they both sounded very similar in expectation to what we are now hearing, on a local level, for employer representative bodies.
It therefore strikes me that the Government do not have a great deal of confidence in the LEPs that they created, nor in the SPBs. If I was a chief executive of a LEP, I do not think I would be taking up any credit agreements right now. They must be looking at this Bill and wondering what the future holds for them.
I am interested in the Government’s response to this. Why is it that local enterprise partnerships, which—as we will all remember—were put forward as the way for business and Government to work together on a local basis on a variety of measures to drive economic growth, particularly around skills, are now seen as entirely superfluous in this Bill? Is this the beginning of the end of local enterprise partnerships?
I am interested in whether the Minister feels there should be a duty for employer representative bodies to work in collaboration with them, and what this says about the future of those organisations. Does he accept that it is a failure of Government policy to have set up these organisations that now appear to be being ignored at a time when there is a function that we would naturally think would fall to them?
Amendment 38 relates to designated distance learning. If the covid crisis has taught us anything, it is that more and more has gone online. In the skills arena in particular, that has been hugely transformational for the sector and for many learners. It creates opportunities that were not there previously. We are very concerned that designated distance learning is absent from the Bill, and that is why we have tabled amendment 38. Again, we are keen to hear the Government’s view on that.
Amendment 39 is about Government Departments working together; I think we have all been conscious, as my hon. Friend the Member for Denton and Reddish said previously, that that is not a particular strength of this Government. We saw that more than ever during the covid crisis when, on the one hand, there was a real lack of strategy around increasing apprenticeships at a time when we knew there was a boom in youth unemployment and, on the other hand, we had the Department for Work and Pensions introducing the kickstart scheme, which was much more expensive than apprenticeships and offered much less to young people. There was no sense that the different Government Departments were working together.
Our amendment would require the Government and any future Government to have a national strategy for education and skills that is agreed across the Department for Education, the Department for Work and Pensions, the Department for Business, Energy and Industrial Strategy and the Department for Levelling Up, Housing and Communities, and of which all local skills improvement plans would have to take account. Our particular concern is the lack of cross-departmental work between the Department for Work and Pensions and the Department for Education; that is something the Labour party takes very seriously, and there have been regular meetings between teams to work on that whole area.
Amendment 40 asks the Government to publish guidance setting out the criteria used to determine the boundaries of a specified area. There is a real lack of clarity about what is meant by “local area”, as my hon. Friend the Member for Kingston upon Hull West and Hessle referred to, in different parts of our forms of local government. What is our local area keeps changing. Again, that is not specified within the Bill and I think there will be real concern that we now have this document, which is of tremendous importance to an FE college; it could be the reason why a chief executive loses their job—
Emma Hardy
I mentioned to the Minister before that I have a lot of sympathy for the Government trying to work out what constitutes a local area. I was talking to a local Conservative MP and we were having a bit of a laugh about it ourselves, because in our area we have Humberside Police, Humberside Fire & Rescue Service and a police and crime commissioner for Humberside, but then we have the Hull and East Yorkshire LEP, and the regional schools commissioner, who has a different geographical area from the LEP, which has a different geographical area from the area that Ofsted covers. Apparently, they are creating a pan-Humber organisation, after the LEP was removed, to look at skills in the area. Good luck to the Minister in trying to work out what exactly the local area looks like, because it is incredibly complicated when we have a myriad different organisations with different geographical boundaries.
Mr Perkins
I think we are all dying to know who this Conservative Member of Parliament was—I have a suspicion who it may have been. My hon. Friend makes a really important point. If it is, “Good luck to the Minister”, more importantly, it is “Good luck to employers” in actually working out where they should go, which area they are a part of and which local skills improvement plan is responsible for them if they have two sites that are 10 miles apart and there are different providers they have to engage with. This is something that puts businesses off engaging in this kind of skills arena. We have seen it with apprenticeships and the barriers that have been put in the way for businesses to take up apprentices; making it difficult for businesses to engage guarantees that they will not do so. That is a really important point and it is why we have moved this probing amendment.
Mr Perkins
As I said previously, we support the principle of local skills improvement plans. Having something that everyone understands is of real value. We are not saying that there should not be any localisation. This is a probing amendment to help us understand. Colleges tend to have a specified area. The Government decided that the local enterprise partnerships would all have their own area. We cannot be, as we used to be in Chesterfield, across two different local enterprise partnerships. We are in one area. The Government have attempted to put firm lines around it, but it has been made slightly more fuzzy.
Emma Hardy
I think the hon. Member for Great Grimsby has misunderstood. When creating a local skills plan, we need to define a local area. As the hon. Member for Great Grimsby, whose constituency is opposite mine on the south bank, will be fully aware, the chamber of commerce is actually a pan-Humber organisation, but the LEPs are separate organisations. I am pointing out to the Minister that, if we are looking at creating a local skills plan for a local area, quite obviously we need to work out what that local area is.
Mr Perkins
My hon. Friend puts it very well.
Amendment 41 asks the Secretary of State to publish guidance relating to implementation, subject to consultation with the metro Mayor or relevant local authority. Under the terms of the Bill, the Secretary of State has the potential to amass new powers, which could be used without appropriate consultation or due diligence. We can see the hand of the right hon. Member for South Staffordshire (Gavin Williamson) right through the Bill. I am confident that if the Bill had been devised when the current Secretary of State had been in place for a year or two, it would look very different. The sense of a man who had lost control and was desperately trying to get back control runs right through the Bill.
Our amendments seek to establish a clear duty for the Secretary of State to consult with combined and local authorities before local skills improvement plans are finalised in areas that do not have metro Mayors, ensuring that the relevant local representative bodies are part of the formation of a board. It is about bringing together the various different organisations that would make up a strategic approach to skills. We are saying that, if there is not an employer representative body that is able to broadly represent private and public sector employers, further education colleges, independent training providers and such, the Government should appoint a board made up of those in order to deliver that local skills improvement plan, rather than the current approach, which is just a single body. Amendment 44 says that colleges and other providers
“may propose revisions where they consider that the plans do not appropriately reflect the full diversity of priorities across the locality.”
I am keen to hear the Minister’s response to the amendments.
Matt Western
My hon. Friend has given a thorough analysis on all these amendments; I will just pick up on a couple of points. On amendment 33, I want to highlight how important the skills and productivity board is, given where the country finds itself in terms of its poor productivity relative to most of our economic peers—not just in Europe, but across the globe. We have to work much more closely with that board; that is what amendment 33 is driving at, and that is why it is important to include it.
I will talk specifically about amendment 38, which is on distance learning. There are 70% fewer new part-time graduates entering and accessing higher education every year compared with a decade ago. Distance learning is really important; it is a brilliant way of encouraging people to pick up part-time study. The Open University has 72% of students in full or part-time employment. We are seeing a very concerning regional picture; the Open University’s statistics show a 40% fall in higher education participation in the north-east of the country, and a 32% fall in the north-west and Yorkshire. If the Government are really serious about their agenda, surely we have to provide and invest in more and better opportunities for distance learning—that is why amendment 38 is important. The cost of study is obviously one of the biggest barriers to adult learning. If we consider the needs of distance learners, that barrier is eradicated.
We all know that the Open University is a great institution, started in the 1960s—we will claim that as a terrific Labour success. I do not think any of my colleagues were around at that time, so none of us can claim it in particular. However, it was a great success, and I think that societally, culturally and economically we have benefited greatly from that particular institution. It is one of the five biggest higher education providers in 90% of parliamentary constituencies. It is really important that all of us remember the contribution that it makes. The Open University is also the largest HE provider in 63 of 314 English local authorities—that is 20%. It is also worth highlighting that it is a substantial provider in what might be called higher education “cold spots”, where there is limited face-to-face provision. The importance of distance learning in our education provision must be underlined.
Amendment 41 makes sure that local and combined authorities are consulted on the LSIP before roll-out. I want to echo the previous calls on the importance of including our health boards in the process. In the pandemic, we have seen the importance of local public health provision in regions, and the skills needed to be able to provide that are absolutely essential. We must be clear about how important it is to achieve the regionalisation of drawing those skills. In the visits that have been making up and down the country, that is something that has been made loud and clear to me by colleges and HE providers.
Devolved responsibilities are important but so too is the national strategy. That strategy should be extended across the Department for Education, the Department for Work and Pensions, the Business, Energy and Industrial Strategy Department and what I would call DHCLG – the Department for Housing, Communities and Local Government as was. The Association of Colleges wrote to say that it wanted to
“enshrine the creation of a national 10-year education and skills strategy sitting across government to deliver on wider policy agendas and to give stability to all parts of the system.”
It added:
“there is a lack of a comprehensive, long-term education and skills plan that brings together all parts of the system towards the same vision…this means that the role of education and skills in addressing wider policy priorities and strategies are not always recognised, for example the role of colleges in welfare, health and net-zero policies.”
I spoke about health a moment ago, but let us consider net zero policies. The Government understand their importance but I want to centre on two things that are massive national issues right now and should be critical to the skills strategy. The first is the delivery of an electric vehicle infrastructure plan, on which we way off the pace. We need to get the skills out there to put in place the necessary infrastructure. We have a growing market for electric vehicles—potentially for hydrogen vehicles as well but EV is the critical one. Manufacturers are making the vehicles, but we do not have the necessary public charging points. We are behind the curve compared with our European neighbours and other leading global economies. That is the sort of stuff that a national strategy could help to deliver. If we are serious about the sustainability agenda, the amendment can help to deliver it.
Andrew Gwynne
The hon. Gentleman has made a great case for north-west regional devolution in that case. I get what he says, but if Greater Manchester is to have a strategy, the Greater Manchester chamber, which will lead on the strategy, and the combined authority and Mayor, who have to be consulted on the strategy, cover the whole of Greater Manchester—that is nice and tidy. If he wants to make the case for Warrington to become an 11th borough of Greater Manchester so that we can placate my OCD-ness, I am more than happy to welcome Warrington into the club.
Mr Perkins
The hon. Member for Warrington South also made a powerful argument for an amendment that he had a chance to vote for a while ago, which would have ensured that the strategy is for residents. We would then have a strategy based on all the people resident in the area, regardless of where they end up working.
Andrew Gwynne
Absolutely; my hon. Friend could not have put it better. The views of residents matter as well because, as we know, although public bodies, local authorities, LEPs and chambers of commerce operate within defined boundaries, people do not. They do not necessarily know where parliamentary constituency boundaries or council ward boundaries are, and they do not always know where council boundaries are—people are fluid throughout. My hon. Friend is right that there was an opportunity to include the views of residents in the development of the plans. Unfortunately, that amendment was not passed.
Alex Burghart
I am horrified to hear the hon. Lady’s attitude to statutory guidance. Our intention will be set out in statutory guidance, so that local skills improvement plans will be informed by the work of the national Skills and Productivity Board and build on the work of local enterprise partnerships and their skills advisory panels.
Mr Perkins
The Minister talks about speaking to local enterprise partnerships, but he must see the point that this is precisely the kind of role that was envisaged for local enterprise partnerships when they were invented. The very fact that he now says that we will go to the employer representative bodies, which we assume are likely to be chambers of commerce, rather than to local enterprise partnerships, must make people wonder, “Is there a future for local enterprise partnerships?” Will he tell us why he thought that local enterprise partnerships were not the right organisation to be the employer representative body in such cases?
Alex Burghart
We have been clear that we want to have an approach that is completely employer-led. Local enterprise partnerships, which have much to recommend them, are partially informed by employers, but they are public-private partnerships and we want an employer-led process.
Amendment 38 relates to local skills improvement plans taking account of providers of distance learning. I very much acknowledge the remarks made by Opposition Members about the importance of distance learning and how valuable it is to many members of the public who are studying. All relevant providers that provide English-funded post-16 technical education or training that is material to a specified area will have a duty to co-operate with the designated employer representative body for that area in developing a plan. That will be true even if they are based elsewhere and offer the provision by distance or online learning. That will help to ensure that the views of distance learning providers are taken into account.
Amendment 39, tabled by the hon. Members for Chesterfield and for Warwick and Leamington, would require the Government to have a national strategy for education skills that is agreed across DFE, DWP, BEIS and DLUHC, and of which LSIPs would have to take account. The Government have already set out their strategy for skills reform in the “Skills for jobs” White Paper published in January last year, which was agreed by all Departments—not just the ones listed in the amendment. The proposals set out the aim to support people to develop the skills that they need to get good jobs. They form the basis of the legislation we are discussing.
On the local skills improvement plans, we have been clear that they should take account of the relevant national strategies and priorities related to skills, as well as being informed by the work of the national Skills and Productivity Board. The specific strategies and priorities will evolve and change over time. We think the best place to do that is in statutory guidance.
Amendment 40, tabled by the hon. Members for Chesterfield and for Warwick and Leamington, relates to the publication of guidance setting out the criteria used to determine a specific area. The specified areas for local skills improvement plans will be based on functional economic areas. The Government are working with local enterprise partnerships to refine the role of business engagement in local economic strategy, including skills, and to ensure that the structures are fit for purpose for the future. That includes looking at geographies—
Alex Burghart
We are clear that these will be based on functional economic areas, that they will have a defined geography and that we will ensure that no part of the country is left out.
Mr Perkins
Will the Minister also clarify this? Is it possible that an area could be in two different local skills improvement plans? For example, Chesterfield was originally part of both the Derbyshire and Nottinghamshire local enterprise partnership and the Sheffield City Region one. Both were considered functional drive-to-work areas. Is it possible that an area such as Chesterfield might be in two different local skills improvement plans, or is it the case that, as my hon. Friend the Member for Kingston upon Hull West and Hessle says, there will be a defined area and everyone will just be in one?
Alex Burghart
We are working on the basis that there will be a defined area for each one, but we will be mindful of the fact that in some areas the geography does not neatly fit reality. That goes to the point that my hon. Friend the Member for Warrington South was making.
We will consider this work, alongside evidence from the local skills improvement plan trailblazers, before making final decisions about the specified areas that local skills improvement plans will cover. However, let me reassure members of the Committee that through the designation process, the Secretary of State will ensure that there are no gaps in the coverage of local skills improvement plans across the country.
I turn now to amendments 41 and 44. Amendment 41 relates to consulting local authorities and mayoral combined authorities on guidance for the roll-out of local skills improvement plans. We regularly engage mayoral combined authorities and the Greater London Authority, for example in relation to this Bill and the LSIP trailblazers, and we will continue to do so as we develop our plans for the wider roll-out of LSIPs and the accompanying statutory guidance. We will also engage the Local Government Association and other key stakeholders and make use of the evidence collected from the evaluation of our trailblazers.
Amendment 44 aims to allow colleges and other providers to propose revisions to local skills improvement plans. The Bill already places duties on relevant providers to co-operate with employer representative bodies in developing the plans and keeping them under review. That will give providers the opportunity to propose revisions and help to ensure that the plans are evidence-based, credible and actionable. We expect local skills improvement plans to focus on key priorities for change to make provision more responsive to local labour market skills needs, but it is important to note that those will be changes that providers themselves will have had a role in specifying.
Once an LSIP has been signed off, a provider will be required to have regard to it. The plan will not tell providers what to do. Providers will remain responsible for making decisions as part of their business planning, but they will have the benefit of those decisions being informed by a credibly articulated and evidence-based statement of priorities from business that they will, in turn, be empowered and incentivised to respond to.
Mr Perkins
We have heard the Minister’s response on those issues. Amendments 33 and 38 to 40 were probing amendments through which we sought to understand the role of the different organisations and how Government would define the different areas. I understood the Minister’s response to mean that no area would be left out, but also that no area would be in two LSIPs —I think that that is what he was saying. That is quite important because if an area ends up being in two, because it is in two different functional drive-to-work areas, that will make the data collection aspect impossible.
There has been a lot of important narrative in this debate about recognising that areas may well look in two different directions. The point that the hon. Member for Warrington South made about looking towards Liverpool and towards Manchester, as well as towards the rest of Cheshire, is important. If Warrington does not end up being in one area or another, the data collection will become impossible, in terms of the success of those particular areas. We will obviously look to the statutory guidance and, if I have misunderstood what the Minister has said, he has the opportunity now to put me right. I think that it is really important to understand whether an area could be in two different local skills improvement plans.
On the basis of the responses and the fact that the amendments were probing, I propose to withdraw amendments 33 and 38 to 40. We would like to put amendment 41 to a vote, because we believe that it is not only consultation with combined authorities that is relevant; we are very concerned that areas that are outside a combined authority will have no democratic oversight whatever. We think that people within those areas will also want to know that there has been some consultation.
Emma Hardy
I know I am not intervening on the Minister, but I wonder whether a proposed map of the different areas will be put out for consultation before they are agreed and set by Government, and whether there will be an opportunity for local people to influence what the geographical areas will be.
Mr Perkins
It is the boundaries nightmare all over again. The Minister will have heard my hon. Friend’s question, and I am sure that he and his officers will think carefully on it. Again, we will put only one amendment in this group to a vote. We will not press amendment 44, but we will divide the Committee on amendment 41. I beg to ask leave to withdraw the amendment.
Amendment, by leave withdrawn.
Amendment proposed: 1, in clause 1, page 3, line 6, after “evidence” insert
“, including the views of relevant community groups including those representing the interests of disabled people,”.—(Mr Perkins.)
This amendment intends to ensure that the evidence informing LSIP development includes information directly relevant to improving the employment prospects of disabled people.
Question put, That the amendment be made.
Mr Perkins
I do not intend to detain the Committee for long. The only question I wanted clarification on, given the conversation we have just had about areas, is about what thought had been given to the responsibilities of providers that are close to borders and provide services across them. We are supportive of Government amendments 11 to 14 and the clarifications established by Government amendments 15 to 17.
Alex Burghart
As I made clear in my remarks, it depends on whether provision is English-funded; that is, whether the money comes from England. That is how we explain the jurisdiction.
Amendment 10 agreed to.
Amendment proposed: 41, in clause 1, page 3, line 12, at end insert—
“(7A) Before local skills improvement plans are introduced outside of trailblazer areas, the Secretary of State must publish guidance relating to their implementation, subject to consultation of all Mayoral Combined Authorities and, where there is not one, the relevant local authority.”.—(Mr Perkins.)
This amendment seeks to ensure that local and combined authorities are consulted on the Government’s plans for the roll out of local skills improvement plans and are in a position to highlight any issues before publication.
Question put, That the amendment be made.
Alex Burghart
It will be a great pleasure for everyone to hear that after three and a quarter hours of debate, we have nearly completed clause 1 of our 39-clause Bill. I will try not to detain the Committee for more than 45 minutes at this point.
With local skills improvement plans, clause 1 provides an important vehicle to give employers a more central role in local skills systems, working with providers, mayoral combined authorities and other key stakeholders to reshape provision to tackle skill mismatches and respond better to local labour market skills needs. To develop those plans, designated employer representative bodies will need to engage the widest possible range of employers and draw on a range of evidence, including existing analyses of skills supply and demand.
Local skills improvement plans will give providers an evidence-based summary of the skills, capabilities and expertise required by local employers, helping them to prioritise and focus investment in skills provision. The clause places a duty on providers to have regard to the plans, once developed, when making relevant decisions in relation to the provision of post-16 technical education and training in the area.
The clause will ensure the information, knowledge and expertise possessed by employers, providers and stakeholders is utilised to agree priority actions to align provision to better meet employer needs and support learners. The Bill is about making sure that we have qualifications, designed with employers, that ensure students get the skills the economy demands. Clause 1 is absolutely central to that mission.
Mr Perkins
I regret that the clause will leave this Committee in less good shape than when it arrived. The amendments agreed by the House of Lords were entirely sensible. They had cross-party support; they were agreed to only because they were voted for by Conservative Members who have tremendous knowledge and experience of these matters and who are much respected, alongside others. It is a matter of great regret that the Government have failed to take on board those helpful amendments, which were added in entirely the right spirit.
We believe that local skills improvement plans are an innovation that is of value, but we are very concerned that the way they are envisaged will make it difficult for them to achieve what might have been achieved. When we come to clause 2, we will get into the debate about how local skills improvement plans might be more representative. What will happen in the event that things go wrong with the employer representative bodies is important. I look forward to hearing the Minister’s response on those points.
We support clause 1 standing part, but we are disappointed that it leaves the Committee in less good shape than when it arrived.
Question put and agreed to.
Clause 1, as amended, accordingly ordered to stand part of the Bill.
Clause 2
Designation of employer representative bodies
Mr Perkins
I beg to move amendment 35, in clause 2, page 3, line 22, after “the” and before “employers” insert “public and private sector”.
This amendment would specify that employers operating within specified areas for the purposes of section 2(1)(a) can be both public and private sector.
The Chair
With this it will be convenient to discuss the following:
Amendment 45, in clause 2, page 3, line 22, leave out “reasonably”.
This is a probing amendment to test how the Secretary of State will determine what mix of employers is considered “reasonably representative”.
Amendment 36, in clause 2, page 3, line 22, after “employers” insert
“, local Further Education colleges, independent training providers, local authority (including Mayoral combined authorities) and Local enterprise partnerships”.
This amendment would add local Further Education college, independent raining providers, local authority (including Mayoral combined authorities) and Local enterprise partnerships to those of which employer representative bodies much be representative, in order to be designated as a representative body by the Secretary of State.
Amendment 46, in clause 2, page 3, line 23, after “area,” insert
“including the interests of small and medium sized enterprises, the self-employed and public and voluntary sector employers,”.
This amendment seeks to ensure that employer representative boards include a wider range of local employer interests including small and medium sized enterprises, the self-employed, and public and third sector employers.
Amendment 37, in clause 2, page 3, line 23, at end insert—
“(iii) in the event that there is no body in the local area that is representative of the organisations listed under subsection (1)(a)(ii) the Secretary of State will instruct the Local Enterprise Partnership or Metro mayor to bring together a board which is representative of all the organisations outlined in subsection (1)(a)(ii), who will take on responsibility for drawing up the local skills improvement plan.”.
This amendment places a duty on the Secretary of State, in the event that the Secretary of State is not satisfied that an eligible body is not reasonably representative of the employers operating within the specified area.
Amendment 42, in clause 2, page 3, line 25, at end insert—
“(c) the Secretary of State has received in writing the consent of the relevant local authority or Mayoral Combined Authority.”.
This amendment provides for local authorities to give consent in the designation of employer representative bodies.
Mr Perkins
We appear to have raced on to clause 2. Amendment 35 is important, because so much of the Government’s narrative makes it clear that when they talk about employers, they really mean private sector employers. There are huge skills shortages within the public sector. The public sector is an important employer, and it is of particular importance in some of the most deprived communities. Labour’s approach to the Bill will be about asking the Government to place employers and those responsible for education at the heart of a skills strategy.
It is essential that employers in the public sector, including those in health and social care, as my hon. Friend the Member for Warwick and Leamington mentioned, be consulted in the formation of local skills improvement plans. Employer representative bodies must ensure that LSIPs fully reflect both private and public sector employers.
Amendment 45 is a probing amendment designed to test how the Secretary of State will determine what mix of employers is considered “reasonably representative”. The Bill refers to the Secretary of State being
“satisfied that…the body is reasonably representative”.
I think it would be interesting to define what exactly is a reasonably representative mix of employers on LSIPs. It is highly likely that chambers of commerce will be the employer representative body by default in most LSIP areas. We have had representations from organisations such as the Federation of Small Businesses, which has concerns about the powers to be handed to those chambers.
The Minister has said that ERBs that are not performing could be sacked and potentially replaced, but there are not numerous organisations that have the capacity to undertake that kind of work. Indeed, there is some question over whether many chambers of commerce will immediately have that capacity, but they will have the responsibility either way. As has been said, some areas have an active and vibrant chamber of commerce, and our proposals should not be viewed as being hostile to them. There are many excellent professionals in chambers of commerce and many really excellent chambers that make an incredibly important contribution to our local economies and to skills. However, it is important to recognise that membership and attendance can vary greatly within localities. The priorities of some chambers can be dominated by a small number of particularly loud voices. It is important that there are safeguards to ensure that any ERB is representative. I look forward to the Minister’s assurance that that will be the case and that ERBs will consult widely in the formation of the LSIP.
What mechanisms are in place should the Secretary of State consider that an ERB is not representative? What mechanisms are in place to deal with complaints from others, such as further education colleges, which may consider that an ERB is not representative?
Emma Hardy
Much as I hate to return to the boundary issue, our local chamber of commerce is the Humber-based chamber, which may not end up being the geographical area represented by the skills body. To return to small and medium-sized enterprises, and the concerns of the Federation of Small Businesses to which my hon. Friend referred, in areas where most employment comes from SMEs or the public sector, how can we ensure that they are heard when the skills plan is developed?
Mr Perkins
That is a really important point. In some cases, chambers of commerce and branches of the Federation of Small Businesses have constructive relationships; in other areas the relationship is less constructive. To place the role of one above the other in respect of an ERB is potentially exclusive.
Amendment 36 would add local further education colleges, independent training providers, local authorities, including mayoral combined authorities, and local enterprise partnerships to those of which employer representative bodies must be representative to be designated as a representative body by the Secretary of State. We are seeking to ensure that colleges, independent training providers, local authorities and LEPs are not shut out of LSIPs and that all form part of the consultation when LSIPs are drafted by ERBs.
Amendment 46 seeks to ensure that ERBs include a wider range of local employer interests, including SMEs, the self-employed, sole trader businesses, and public and third sector employers. In some sectors such as construction, a huge number of those responsible for ensuring that a new generation of people come into the sector are self-employed or sole traders. Historically, they would just have taken on a young apprentice to work with them; they will now potentially be excluded from doing that. We have seen the danger in the way the apprenticeship levy was introduced. Big business was very much in mind when it was introduced, and the way it was designed has massively reduced the number of small businesses offering apprenticeships.
There is a danger of SMEs being excluded from the measures in the clause, particularly in smaller town communities where there are not the major employers that there are in larger cities. We are really concerned that SMEs, alongside charities, community organisations and others, will be excluded from the decision-making process in the formation of LSIPs. Amendment 46 would ensure a role for them, alongside the self-employed, in the drafting of LSIPs.
Amendment 37 moves towards the heart of what a Labour local skills improvement plan would look like. The other amendments attempt to ensure that there is proper consultation by the employer representative body. Given that the Bill gives wide-ranging, undetermined powers to the Secretary of State, we want to ensure that local enterprise partnerships and metro Mayors have their role in local decision making enshrined in the Bill. Amendment 37 therefore proposes that, if no suitable employer representative body is found that can represent all aspects, the Secretary of State be required to set up a board in that area, which would have wider representation from organisations like FE colleges, metro Mayors and local authorities.
Emma Hardy
I recall the Minister saying that the Secretary of State will have the power to take control from chambers of commerce if they are seen not to be working properly. I wonder whether the Minister would seriously consider our amendment as a model they could use. If there is only one chamber in the area, and that chamber loses control or oversight, who are we going to use instead? Does the Minister anticipate that there will be some form of inspection to check the competency of chambers? Will there be key performance indicators, or some way of flagging whether the chamber is successful or deemed to be failing?
Mr Perkins
Those are all important questions. My hon. Friend is absolutely right. There are significant warnings to employer representative bodies in the Bill about failing to satisfy the Secretary of State. In the event that they are dismissed, as the Bill makes clear may happen, who is responsible for the local skills improvement plan after that? Many Members have said that some chambers are really strong, others have different strengths and others are not so strong. Putting all our eggs in one basket, which the Bill pretty much does in the vast majority of geographies, is a cause for concern.
Amendment 42 would place a statutory duty on the Secretary of State to consult and seek consent from local authorities and combined authorities on the formation of employer representative bodies. Given that ERBs will be responsible for the formation of LSIPs, which will have budgetary commitments, it is vital that they have the confidence of local authorities and combined authorities, and that organisations are working in collaboration rather than in opposition, as we have said time and again would be the Labour approach.
Andrew Gwynne
I rise briefly to support the amendments. The nub of what my hon. Friend has set out to the Committee could easily have been resolved in our earlier deliberations, when the Minister promised genuine collaboration between the local chamber of commerce and a whole range of public and private sector bodies in developing the plans. The list in the Bill of those public and private sector bodies has been struck out by the defeat of the Lords amendments, so it is right that we have another go here.
Alex Burghart
I rise to speak to amendments 35 to 37, 42, 45 and 46. Amendment 36 would require designated employer representative bodies to be reasonably representative of a broad range of local stakeholders. We have already been clear that we want local skills improvement plans to be employer led, which means led by genuine employer representative bodies, but we have also been very clear that designated employer representative bodies should work closely with key local stakeholders to gather intelligence and consider their views and priorities when developing local skills improvement plans.
That includes local post-16 technical education and training providers and mayoral combined authorities, which, through our Government amendment, are already specified in the Bill as playing a key role. It also includes local authorities and local enterprise partnerships, among others. This will be covered in more detail in the statutory guidance.
Amendment 45 seeks to test how the Secretary of State will determine what mix of employers is considered “reasonably representative”. When making a judgment on whether an ERB is reasonably representative, the Secretary of State will take into consideration the characteristics of its membership compared with the overall population of employers in the area. That speaks to the point that a number of Opposition Members have made.
We certainly expect designated employer representative bodies to draw on the views of a wide range of local employers of all sizes, reaching beyond their existing membership and covering both private and public employers. They will also need to draw on other evidence, such as other representative and sector bodies, to summarise the skills, capabilities or expertise required in a specified area. That type of engagement is already happening, and happening brilliantly, in our trailblazer areas.
Amendment 35 seeks to ensure that designated employer representative bodies are reasonably representative of both public and private sector employers. The Bill already ensures that that is the case. Clause 4 gives a definition of “employer” for the purposes of interpreting clauses 1 to 3 that covers public authorities and charitable institutions—to the point made by the hon. Member for Luton South—as well as private sector employers.
Amendment 46 seeks to ensure that designated bodies represent the interests of small and medium-sized enterprises, the self-employed, and public and voluntary sector employers. Public and voluntary sector employers are also already covered under the definition of employer in the Bill. Designated employer representative bodies must of course represent the interests of small and medium-sized enterprises in order to be reasonably representative.
Many existing employer representative bodies already do this effectively. For example, SMEs comprise the vast majority of the membership of local chambers of commerce. In drawing on other evidence, designated ERBs may also need to consider the key skills needs of the self-employed in order to effectively summarise the current and future skills required in the area, and that will be referenced in statutory guidance.
Amendment 37 concerns a scenario where the Secretary of State is not satisfied that there is an eligible body within a specified area that is reasonably representative of local employers. We have thought about that, but we really do not think it is likely to happen. Although the “Skills for Jobs” White Paper mentioned accredited chambers of commerce, there are other employer representative bodies with either a national or local presence. We saw evidence of that from the expressions of interest process we ran to select the local skills improvement plan trailblazers, for which we received 40 applications despite only looking for six to eight trailblazers. Many hon. Members today have spoken about chambers of commerce, but the Government are entirely open to representatives from the Federation of Small Businesses and other geographically based organisations that could also be eligible.
Mr Perkins
To clarify, how many of the trailblazer organisations were not chambers of commerce?
Alex Burghart
All eight trailblazers were chambers of commerce. However, I believe there were expressions of interest and applications from others. For the record, we are not saying that this is solely the preserve of chambers of commerce. We are supporting the trailblazers with £4 million of funding this financial year, and we will continue to support ERBs as they are designated, so that they can develop credible and robust local skills improvement plans.
Mr Perkins
I appreciate the Minister’s response. I remain of the view that public and private sector employers should feature in the Bill, so I will press amendment 37, which spells out Labour’s much more collaborative approach to this matter, to a vote. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Amendment proposed: 37, in clause 2, page 3, line 23, at end insert—
“(iii) in the event that there is no body in the local area that is representative of the organisations listed under subsection (1)(a)(ii) the Secretary of State will instruct the Local Enterprise Partnership or Metro mayor to bring together a board which is representative of all the organisations outlined in subsection (1)(a)(ii), who will take on responsibility for drawing up the local skills improvement plan.”—(Mr Perkins.)
This amendment places a duty on the Secretary of State, in the event that the Secretary of State is not satisfied that an eligible body is not reasonably representative of the employers operating within the specified area.
Question put, That the amendment be made.
Skills and Post-16 Education Bill [Lords]
Toby Perkins ExcerptsMonday 15th November 2021
(4 years, 4 months ago)
Commons ChamberRead Full debate Skills and Post-16 Education Act 2022 View all Skills and Post-16 Education Act 2022 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 5-R-II Second marshalled list for Report - (14 Oct 2021)
Mr Toby Perkins (Chesterfield) (Lab)
It is a great pleasure to wind up for the Opposition after a good debate on this Bill, with some excellent speeches and important contributions from Members in all parts of the House. I repeat the tribute by my hon. Friend the Member for Stretford and Urmston (Kate Green) to our colleagues in the House of Lords, who adopted a constructive, cross-party approach to the Bill.
I hope that the Minister has taken note of the contributions to this debate, because much of real value was said by Members on the Opposition and Government Benches. Indeed, two contributions from Conservative Members were—I suspect inadvertently—very revealing. The right hon. Member for Harlow (Robert Halfon) revealed that adult education funding is currently at its lowest level for 23 years. That set me thinking about what might have happened 23 years ago that meant that adult education funding was at such a low level but improved substantially over time, only to reach its nadir now. Of course, a Labour Government happened 23 years ago, and it has taken 11 years to unwind that Labour Government’s investment in adult education to the current nadir.
The former Secretary of State, the right hon. Member for South Staffordshire (Gavin Williamson), also made a revealing contribution: he said that levelling up is all about investment in human beings—people in every area throughout the country. Of course, he was one of the Secretaries of State who was in power while there was a 40% reduction in adult education. He presided over that. I absolutely agree that if levelling up is to mean anything, it has to mean investment in people, which is precisely what we have not seen under this Government.
A number of Members spoke powerfully about the role of BTECs. My hon. Friend the Member for Lewisham East (Janet Daby) spoke of Lord Baker’s description of the defunding of BTECs as “act of educational vandalism”. My hon. Friend the Member for St Helens South and Whiston (Ms Rimmer) spoke up for her local college and about the number of students at that college who would miss out. My hon. Friends the Members for Luton South (Rachel Hopkins) and for Bristol South (Karin Smyth) spoke of the importance of the BTEC pathway, particularly for disadvantaged students. And my hon. Friend the Member for Birmingham, Hall Green (Tahir Ali) spoke passionately and movingly about his own journey as a BTEC engineering student who went on to be the very first person in his family to go to university, and his pride at seeing his son follow in his footsteps.
This question is really important, because the Government have set out to trash the reputation of BTECs and then come back and said, “Actually, we’re only going to get rid of some of them—only the low-quality ones.” The damage is being done already. Students are on those courses now: 230,000 students who are doing level 3 BTECs are being told that those are poor-quality qualifications. Why make that announcement and create all that uncertainty and then say, “Oh, we’re going to do a review and then we’ll look at the evidence.”? This whole approach has been wrong. I welcome the more conciliatory language that we are hearing from the new Secretary of State, but the damage has been done, and we need to quickly hear from him which of those courses will be carrying on, which ones will not and what is the plan for those students who will not be doing T-levels.
The real worry is that this will result in fewer students from more deprived communities achieving vocational qualifications at level 3. Pulling up that drawbridge will, without question, restrict opportunities, particularly for white working class and black, Asian and minority ethnic students from those communities. The Secretary of State repeated the description of BTECs as a low-quality qualification, so if we are hearing a change of tone, we need to know whether we are seeing a change of policy.
There was a lot of discussion about local skills improvement plans. My hon. Friend the Member for Rotherham (Sarah Champion) spoke about the extent to which special needs students are missing from LSIPs, which is an important point. We very much welcome the Secretary of State’s climbdown on the subject of metro Mayors and their responsibility in terms of LSIPs, but if the responsibility of those elected to local government in metro Mayor areas is accepted, as was said by the hon. Members for Ipswich (Tom Hunt) and for Central Suffolk and North Ipswich (Dr Poulter), what of areas that do not have metro Mayors? Why is there no local democratic accountability for those areas? It occurs to me that the vast majority of my right hon. and hon. Friends represent areas that have metro Mayors, but the majority of Government Members do not, so they will have no democratic accountability whatsoever. The point made by the hon. Member for Ipswich about the variation in chambers of commerce—some are very good and some are much less good—was well made.
Mr Perkins
Let me crack on. If I have time, I would be very happy to hear from the hon. Gentleman.
The Government have indicated that they will seek to overturn Lord Baker’s amendment on careers guidance, which would have allowed a range of educational and training providers access to every student in years 8 to 13. The House will be aware that my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) has committed a future Labour Government to guarantee face-to-face professional careers guidance for every pupil, and compulsory two-week work experience. The Government should seek to match that ambition.
The hon. Member for Milton Keynes North (Ben Everitt) spoke about students considering careers that they had not even heard of previously. That is incredibly important. It is one of the reasons why careers guidance is so crucial. My hon. Friend the Member for Luton South spoke about the fact that poorer children do not have the networks on which the more affluent children are able to rely.
We absolutely support the Government’s intention to introduce a lifetime skills guarantee. It is a return to what students would have been able to enjoy under a previous Labour Government. However, as has been said, there are currently 9 million jobs in our economy that will be excluded. Anyone who has a level 3 qualification already and wants to retrain in the future will be excluded from doing so. My hon. Friend the Member for Sheffield, Brightside and Hillsborough (Gill Furniss) and the right hon. Member for Kingswood (Chris Skidmore), who is growing very nicely into his beard—[Interruption.] It is always a pleasure to see someone who has aged almost as much as I have in the past 11 years. He made what I thought was a mature point, bestowing on us his status as a greybeard, that this is not actually a guarantee. The fact that it is not on a statutory footing means that it is only an aspiration. It is an aspiration that we welcome, but the word “guarantee” means something. If we cannot guarantee that this will be available to so many students, as I have already laid out, it is not a guarantee at all.
We welcome the funding changes that the Secretary of State announced, but one of our key criticisms of the Bill is that much of it is ill-defined and not fully thought through. The fact that we have an announcement that there will be an extension while the Government work out which courses are needed and which ones are not is exactly why these announcements should not have been made until the Government had done their research.
Christian Wakeford
T-levels are obviously a fantastic idea. We have already heard from the Secretary of State that there are more than 12,000 qualifications. Does the hon. Member agree that that is far too many and that, based on international comparisons, fewer than 1,000 would be really sensible?
Mr Perkins
It is an interesting point. The Government have said that there are too many qualifications. They have spoken about scrapping BTECs and are undermining them by saying that they are low-quality qualifications. Now they are going to go away and find out which ones they want to get rid of. That approach seems like it is the wrong way around. Why do the Government not identify the poor-quality qualifications and then start announcing their policy? That is where they have got it wrong.
Let me turn to the need to have maths and English as an exit-level qualification for T-levels. The Secretary of State is right to change his approach to the issue, as we have been calling for, but given that maths and English were an entry requirement for all students who are currently doing T-levels, the pilot is going to be misleading. The people who are doing T-levels currently—we will be investigating their outcomes in the pilot—will be different from those who will be able to study T-levels after this change. It is important that that is carefully considered.
The hon. Member for Waveney (Peter Aldous) was absolutely right to speak about the universal credit amendment. We keep hearing the Government talk about the importance of people on universal credit being able to get into work. If we want universal credit to be a pathway towards helping the country to solve the skills crisis, people need to be able to afford to develop their skills. The hon. Gentleman was therefore right to say that the amendment should seriously be considered.
There were a couple of other very relevant contributions. My hon. Friend the Member for Putney (Fleur Anderson) raised the important issue of FE lecturers’ pay. So many really good-quality FE lecturers have been forced to leave the profession because of real-terms pay cuts over many years. The skills drain has had a massive impact on our further education sector.
The hon. Member for Warrington South (Andy Carter) told us that he has been racing around employers in his constituency and telling them that there is an oven-ready Bill that will address all their skills needs. Well, he might be well advised to move office and not tell people where his new one is, because they might end up disappointed that he has slightly overpromised in that regard.
The hon. Member for Stroud (Siobhan Baillie) blamed the Labour Government for the fact that she was made to feel bad when she left school at the age of 15. I notice that she was 15 in 1996, so it was a Conservative Government who made her feel bad. I am sorry that she had that experience, but she is knocking at the wrong door.
The hon. Member for Mansfield (Ben Bradley) addressed the problem faced by many hon. Members—a reduction in the time limit—by doing a seven-minute speech in three minutes. In the event that he ever loses his current job, he might want to consider being a horse racing commentator. But he had a lot to say and it was important.
My hon. Friends the Members for Wirral West (Margaret Greenwood) and for Birkenhead (Mick Whitley) spoke about the scale of the cuts, and the collapse in investment in further education and adult education.
This is a small Bill, which is limited in scope. It leaves out apprenticeships and is silent on the role of independent training providers, which provide the majority of workplace learning. It lacks strategic vision, and is undermined by its lack of scale and urgency. There are some aspects that will make small improvements—we are not hostile to all that is in there—but it lacks the scale of reform and investment required to deliver the promised skills revolution.
The skills Bill is in danger of going down as an historic missed opportunity. The Government should recognise that the amendments introduced by their lordships strengthen the Bill; recognise that apprenticeships are central to skills in this country, and do more to increase the numbers studying and offering them; encourage a collaborative approach that recognises a role for all communities, whether they happen to have a metro Mayor or not; and address the chronic underfunding that has characterised the last 11 years in further education. If this Government took the approach that Labour is calling for today, they would have a chance of enabling England to compete with the very best skills systems in the world. It is the very least that English workers and employers deserve.
Oral Answers to Questions
Toby Perkins Excerpts(4 years, 5 months ago)
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Alex Burghart
I thank the hon. Lady for her question; it is nice to have two questions from Liverpool back to back. I must tell the House that we are undertaking an historic reform of technical education in this country. We want technical qualifications, at all levels, that are designed with employers, to give students the opportunities they need. At 16, that will mean that some students will get gold-standard level 3 qualifications that will lead to work, degree-level apprenticeships or higher education. For some, it will mean excellent level 2 qualifications, which will lead to apprenticeships or to work, or to our lifetime skills guarantee, announced by the Prime Minister in September 2020, allowing everybody to get a level 3 qualification.
Mr Toby Perkins (Chesterfield) (Lab)
Clearly, it would have been sensible for the Government to have finished their evidence and understood the outcome of the policy before starting to undermine BTECs by announcing that they would defund many of them. There is a widespread body of opinion that many of the 230,000 students studying level 3 BTEC qualifications might not be able to get on to that qualification in future. Will the new Minister—I should have welcomed him to his place; I do so late in my question—tell us in which year the Government are likely to meet their target of having 100,000 students studying T-levels? Will he guarantee that those changes will not lead to a reduction in the number of students studying level 3 qualifications in the future?
Alex Burghart
I thank the hon. Gentleman for his belated welcome.
We just had a historic spending review for skills in this country, with £2.8 billion of capital for skills, including money to deliver new T-levels across the spending-review period. Those T-levels will give more students the opportunity to progress into work at a higher level. Our level 2 review will enable more students to progress into work at the right level for them.
Education (Careers Guidance in Schools) Bill
Toby Perkins Excerpts(4 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Education (Alex Burghart)
It is a real pleasure to serve under your chairmanship in this, my first Bill Committee as a Minister, Mr Davies. I hope it is not my last. I must congratulate my hon. Friend the Member for Workington; he is, as the hon. Member for Hove said, the boy with the golden ticket. He may remember what happens to the boy who finds that golden ticket: Charlie goes on to run the chocolate factory. I can think of no finer job for my hon. Friend. It is a real achievement to get this Bill into Committee, and we in the Government are delighted to support it, because it really supports the aims of our skills reform agenda, which will drive up the quality and availability of technical skills for young people, and that will help them to get the great jobs that they deserve—the great jobs of tomorrow.
I pay tribute to my predecessor, my hon. Friend the Member for Chichester (Gillian Keegan), who has gone on to an even greater job, in the Department of Health. I cannot hope to match her panache and stylishness, but I promise the House that I will do my best for this agenda, because it is something I believe in deeply. I also thank the Opposition for their support for the Bill and the cross-party consensus that has broken out over this important agenda. I hope such consensus will continue throughout the day, as we go on to the Chancellor’s statement.
The Government support the Bill because we want to level up opportunity. The reforms set out in our “Skills for Jobs” White Paper will give people a genuine choice between a high-quality technical route and a high-quality academic route. As part of that, it is vital that everyone has access to careers guidance of the very highest standard.
Alex Burghart
I am honoured to give way to my opposite number for the first time.
Mr Perkins
Does the Minister agree that in order to meet the careers guidance needs of every child, we need to meet every child, and so every child should be entitled to face-to-face careers guidance during their career journey?
Alex Burghart
I thank the hon. Gentleman for his contribution. I know that we will not always agree as we stand opposite each other, but I know that he cares deeply about the prospects for young people, and I hope he respects that I do, too. Obviously, it is important that young people get high-quality careers advice, and it would be difficult to justify giving that without a degree of face-to-face support, but we respect schools’ abilities to find new, interesting ways of delivering this agenda.
As we emerge from the pandemic, it is important that we make sure that all young people have access to high-quality guidance, because if they do not, they will not know whether they are making the right choices and taking the right opportunities.
Oral Answers to Questions
Toby Perkins Excerpts(4 years, 7 months ago)
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Gillian Keegan
My hon. Friend the Member for Chippenham (Michelle Donelan) and I went to visit Lackham very recently and were delighted to see its investment in agritech facilities, which are groundbreaking and world class. It will mean that young people in that area will have the opportunity to study the very latest technology and techniques that will be required for our agriculture industry. In addition, there will also be a land management and agriculture T-level, which has been designed with the industry sector to make sure that many people across the country get the opportunity to study at that level with that investment.
Mr Toby Perkins (Chesterfield) (Lab)
Some 230,000 students have just studied BTEC level 3 qualifications. For the Minister to stand there, as she just has, and dismiss those qualifications as poor quality will disgust those students and many of the people who have supported them. The Minister suggests she has widespread support, but 86% of respondents to the Department for Education’s own consultation disagreed with the Government’s plan to scrap funding for qualifications that overlapped with T-levels. Even the former Conservative Education Secretary, Lord Baker described it as
“an act of educational vandalism.”
Why are the Government intent on removing the ladder of opportunity from so many students, particularly those from the most deprived communities, when there is such widespread opposition to this move?
Gillian Keegan
I assure the hon. Gentleman that I would definitely not dismiss the BTEC qualification or its quality, and the reason I would not is that I am one of the very few people in this place who has taken a BTEC as part of their apprenticeship. I very much appreciated my BTEC as part of my apprenticeship, as I did my other qualifications.
T-levels are unashamedly rigorous. They are high-quality qualifications, and there is no point giving access to qualifications that are out of date and have not kept up with the requirements of the workforce. The skills gap between what our employers need and what young people study should not be there. This is an employer-led system. I will tell the House what is a tragedy—a tragedy is having young people not able to get on in the workplace because they have spent two or three years studying something that does not offer the value that employers need in this high-tech economy.
Oral Answers to Questions
Toby Perkins Excerpts(4 years, 9 months ago)
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Gillian Keegan
I absolutely agree with my hon. Friend, and that is why I was really delighted to join him and our colleagues—our other Stoke MPs—to visit Stoke-on-Trent College. It was great that we were able to meet students who are on a wide variety of pathways and see the fantastic facilities that our investment has enabled at this brilliant college. There have been nearly 30,000 apprenticeship starts in the Stoke-on-Trent area since May 2010. I encourage learners and employers to take advantage of the support, including the incentive payment of £3,000, and I am sure that he will welcome the establishment of a new Home Office centre that will create more than 500 new roles over five years, with an apprenticeship-first policy for hiring at the entry grades. I agree that they are absolutely vital to the development and economic recovery in Stoke-on-Trent and beyond.
Mr Toby Perkins (Chesterfield) (Lab)
I am afraid the Minister just sounds like she is in denial. Between August and January, under-19 apprenticeship starts were 41% lower than they were in 2018-19. We keep telling the Government that their apprenticeship incentives are inadequate, and there has been widespread support for Labour’s apprenticeship wage subsidy proposal. The Conservative Chair of the Education Committee, the right hon. Member for Harlow (Robert Halfon), has joined those calling for the Government to subsidise the wages of young apprentices and help to tackle this crisis of opportunity. Why will the Minister not work with us and Members right across the House to introduce Labour’s apprenticeship wage subsidy proposal?
Gillian Keegan
I can assure the hon. Gentleman that I am not in denial. Perhaps he is forgetting the kickstart scheme, which also subsidises wages for six months for young people. That scheme is live and is going on for the rest of this year. In addition, it may have escaped his notice, perhaps, that many of the sectors have been in lockdown until relatively recently. If we look at apprenticeship starts, we notice that there is an acceleration in those using the incentive payments to get back to work. Of course, the £3,000 that has been provided can be used in any way that the employer wants to use it, including to subsidise wages. So there is a lot of support and I expect that the numbers will continue to increase.
Oral Answers to Questions
Toby Perkins Excerpts(4 years, 11 months ago)
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Mr Toby Perkins (Chesterfield) (Lab)
The Minister refers to a simpler adult education funding approach, but the decision to increase the adult education clawback threshold from 68% last year to 90% this year, and to impose it at the last minute, will place many colleges in a brutal financial situation. Leicester College, for example, is forecasting that it could be as much as £4 million worse off than expected. The Government can either commit to a skills-based revolution, as they claim they want to do, or endanger the sector by repeatedly cutting its funding; they cannot do both. Why is there such a dangerous discrepancy between what the Government say they want on further education and what they do?
Gillian Keegan
The Government have actually increased funding across the sector quite significantly in many different ways. On the issue that the hon. Gentleman refers to, it is wrong to categorise it as such. We have effectively changed from 97%, which is the clawback this year, down to 90%, thereby giving colleges some leeway. He refers to a previous year, and it is true that we did reduce it to 68%, because that was at the very beginning of the pandemic. We have asked providers to keep provision available, to move online and to give learners that experience, and we have given them time to do so. That is a fair approach.
Adult Skills and Lifelong Learning
Toby Perkins Excerpts(4 years, 11 months ago)
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Mr Toby Perkins (Chesterfield) (Lab)
It is a great pleasure to serve under your chairpersonship, Ms Rees. I thank the Committee for an excellent report, and I congratulate the right hon. Member for Harlow (Robert Halfon) not just on the report and on securing the debate, but on his wider commitment to this subject. He is a powerful voice speaking up for the sector, and his speech once again reflected that.
The report produced by the Committee is excellent. As my hon. Friend the Member for Birkenhead (Mick Whitley) said, it is a bold report that goes further than the Government’s suggestions, and the Committee has made a number of recommendations that really should be investigated more fully. We have heard a lot about how vital skills are. We have heard not only about the ways we have stepped backwards as a country in adult education and lifelong learning over the course of recent years, but about the scale of the challenge, which has been brought into particularly sharp focus by the coronavirus crisis.
I think the sector has welcomed the rhetoric from the Government and the sense that there is a greater focus on further education and skills, but the sector and, indeed, learners will judge the Government by their actions and funding, not by their words. The sector’s experience over the last 11 years is an important piece of context. It has had a decade of funding cuts. Adult education in particular has been savagely cut. As Members referred to, we have recently seen the clawback of adult education funding and the further education sector excluded from the Government’s main post-covid jobs programme—the failing kickstart programme. We have seen an obsession with programmes aimed at major employers, often excluding towns and rural communities, whose economies are based much more on small and medium-sized enterprises and sole traders. The programmes the Government have introduced have lacked scale, ambition and urgency.
The Minister probably did not help with expectation management regarding the White Paper. She regularly promised in the run-up to its publication that we were going to see transformational reforms that would offer the biggest change to the sector in 60 years. While I recognise, as the hon. Member for Waveney (Peter Aldous) did, that lasting transformation is very difficult when you only have one-year budgets, the White Paper represents a considerable missed opportunity. My initial response was that it was predominantly lacking in ambition and scale and so would not take the sector far enough down the path required at a moment of such seismic challenge. Furthermore, there are genuine worries that, far from not going far enough in the right direction, there are elements of the White Paper that are actually boldly marching in the wrong direction. I shall expand upon my views to that in a moment.
We have heard really powerful testimony from many hon. Members. I particularly enjoyed what my hon. Friend the Member for Putney (Fleur Anderson) said, that the Government just does not really get further education yet. Whatever their narrative says, successive policy and funding decisions suggest that the Government see further education very much as something that narrowly loads skills that an employer needs into a recipient who goes from unemployed to an employee. Of course, skilling people for specific jobs and careers is a vital function of the further education sector, but further education is about so much more than that. My hon. Friend spoke powerfully about what further education and adult education is all about. It is about second chances; it is about alternative learning environments, often for those who did not thrive at school; it is about providing a vehicle that helps local communities, employers, learners and learning institutions to work together.
I sense that this is a White Paper that lacks soul. Further education is not just a service; it is a way of life, a pathway and a staircase. It is transformative, empowering, beautiful, and it changes people’s lives, not just their jobs. That sense of joy and boundless opportunity is entirely missing from the Government’s very narrow approach. Close to where I live, there used to be a college called North Derbyshire Tertiary College. It has long gone now, but it was funded by a penny levy on miners that they paid at the end of their shift on a Friday. Men arriving back at the surface after an exhausting day at the coalface would drop a penny in a tin to help them learn to read and write and to educate their children, so that for the next generation there would be choices other than following their fathers down the pit. It was never about improving their use to their employers; it was about investing in their communities and themselves to widen those opportunities.
It is the Government’s failure to understand that principle that leads them to say stupid things like Unionlearn was of no value, because it mainly worked with people who were already in work. Of course! No one suggested that Unionlearn was the only skills approach the Government needed, but a programme with a great success rate of helping workers to learn skills that will help them get promoted or get a pay rise has real value. People do not need to be out of work to be able to gain value from improving their skills.
The Committee’s report makes some really sensible suggestions. I find very unconvincing the Government’s assurances that many of the issues raised by the Committee are already in hand. For example, we already know that there has been a 50% real-terms reduction in adult education funding under this Government, so the dismissal of the Committee’s suggestion that the spending increase required for adult education should be properly costed is most unconvincing.
My hon. Friend the Member for York Central (Rachael Maskell) spoke about the value of adult learning, but also about how large the real-terms reduction has been. We cannot get away from the importance of that funding, and we know that adult education has seen catastrophic reductions in funding during the past 11 years. The right hon. Member for Harlow referred to well intentioned reforms, and I am sure that in many areas there were well intentioned reforms, but it is impossible to argue that the specific cuts made to adult education were well intentioned. That was a positive decision that the Government made. The Government can address that or choose not to, but they should not pretend that those funding losses are not real or that they have been in any way addressed since the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) became Prime Minister.
I welcome the Committee’s call for funding streams to be consolidated and streamlined. The Government outlined their ambitions to do that, but their approach so far has added barriers and complexities, not reduced them, so there is—I will be generous—widespread scepticism about whether the Government will deliver on their ambitions in that regard. I welcome the lifelong learning entitlement proposal, but given that the lifetime skills guarantee has turned out to be far more limited in scope than expected, as the hon. Member for Stoke-on-Trent North (Jonathan Gullis) said, the line
“We will consult on the detail”
is doing a lot of heavy lifting in the Government response to that recommendation.
The Government have huge confidence that their desire to put employers in the driving seat will address Britain’s skills challenges, but the right hon. Member for Harlow was right to say that 39% of employers admit to providing no training whatever, so the idea that employers being in the driving seat will resolve all these challenges is, I think, deeply concerning. Of course employers are crucial stakeholders in this approach and absolutely have to be in the room, but there is considerable doubt as to the extent to which they want or are able to drive the vehicle.
It is a stunning indictment of the Government’s approach to working with businesses that local enterprise partnerships seem to be entirely missing from the White Paper. The report, in recommendation 11, refers to attempts to bring local enterprise partnerships back in, but the Government response does not even mention that recommendation on local enterprise partnerships. Clearly, they are entirely shut out. Chambers of commerce have some brilliant branches and great people and they are capable of excellent practice, but there is a large gap between where those organisations’ current capacity is and their ability to play the kind of role that the Government appear to envisage.
It is telling that 50% of the Government’s adult education budget is devolved to the seven mayoral combined authority areas and London. It is depressing that the Government seem to be doing an about-turn on devolution. The Government’s dismissal of the Committee’s suggestion about devolving the National Careers Service is an example of that. They have no plan for devolution to those areas not in the shadow of a major city, and therefore a very limited plan for addressing the skills approach needed to target town and rural areas. That is particularly damaging because those are the areas most likely to be without the major employers that seem to drive so much of this Government’s approach to skills. Many of us live in towns dominated not by three or four employers of thousands of people, but by thousands of employers of three or four people. They have been widely shut out of the Government’s reforms thus far, and there is nothing in the skills White Paper that goes close to addressing those challenges.
Turning for a moment to the specific challenges that face the Government now, I remain mystified that the Government have failed to take up the apprenticeship wage subsidy idea put forward by Labour, utilising the money that remains unspent in the apprenticeship levy pot to support funding for the first year of new apprenticeships. I would also like the Minister to offer some justification for the ridiculous and damaging decision referred to by the hon. Member for Waveney to claw back adult education funds where providers have provided less than 90% of the contracted amount. For those colleges that do most back-to-work courses or focus particularly on ESOL work, that target is totally unrealistic. It will inevitably fall to colleges to at best cancel pay awards and, in many cases, make redundancies.
I really welcome this report and the contribution that the right hon. Member for Harlow and his Committee continue to make to this incredibly important area, but I think that the Government response to the report shows that there is still a long, long way to go before these challenges are properly tackled.
Education After Covid-19
Toby Perkins Excerpts(5 years ago)
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Mr Toby Perkins (Chesterfield) (Lab)
That is very kind; I appreciate it. It is a great pleasure to serve under your chairmanship, Ms Rees—even more, now I know that you are feeling benevolent. I congratulate the hon. Member for Isle of Wight (Bob Seely) on securing the debate, and thank him for sight of his speech in advance. I was expecting to have to express my admiration for his optimism that we might, in one hour, address the many areas of improvement required in our educational system. However, as he made clear, he did not propose to have all the answers in his speech or even to address all the questions. He very sensibly identified some of the issues that a royal commission might look at, and he made some practical suggestions for consideration.
This debate is timely, and the need for substantial action is acute, as we heard from many contributors. The hon. Member for Isle of Wight understandably spent some time on the specifics of the education challenges on the Island. He also identified three national areas for consideration—term and holiday periods, the use of technology, and the coherence of the DFE’s wider approach to education. On term times, he raised some interesting issues. There are many challenges that come with the kind of approaches that he outlined, but I agree that it is useful to discuss them.
My hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) spoke passionately about the remote support scheme and the digital divide. She said that each click had increased the attainment gap. Notwithstanding the number of schools that have struggled to access devices and the number of colleges that have been completely left out, on technology, I echo the endorsement that the hon. Member for Isle of Wight made of the fine work done by many schools and colleges to address the academic vacuum that existed in the first lockdown and ensure that things were much improved in subsequent ones. I agree that, at a time when we need young people to leave our educational establishments totally tech savvy, this crisis has opened opportunities that must not simply be set aside in a return to business as usual, post covid.
On the coherence of the current system, I could not agree more on schools, further education, the closing of Sure Start, the huge growth in different apprenticeship standards, and the extent to which so many academies leave parents feeling they have no voice. We feel strongly that this Government have removed the sense of a systematic approach to education. I go further than the hon. Member for Isle of Wight and say that, while there are good providers in all areas of our educational system, there has to be a more systematic approach that empowers learners and their parents, supports educators, and involves employers and local decision makers. I am afraid to say that the skills White Paper offers little hope that the Government’s approach is likely to become much more systematic in the future.
I would like to touch on the contributions of many hon. Friends and Members. My hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) spoke passionately about the forgotten children with special educational needs and posed a challenge that we look forward to the Minister responding to. The hon. Member for Bath (Wera Hobhouse) was right about the pressures on our further education system and the need for a more holistic approach that recognises the need for FE and HE to work together. The hon. Member for North Devon (Selaine Saxby) described this as a watershed moment for education and spoke of the need, which a lot of us feel, for a Government response that matches the scale of the moment. My hon. Friend the Member for Mitcham and Morden was excoriating in her analysis of the Government’s education record over the covid crisis. The hon. Member for Westmorland and Lonsdale (Tim Farron) focused on the challenges facing our outdoor education centres, and the hon. Member for Strangford (Jim Shannon) spoke about the number of children falling behind, the pressure throughout the education system and the need to recognise that in the response post covid.
The Labour Party recognises that a decade of underinvestment in our educational system in general—and, as the shadow skills Minister, I would say in further education and skills in particular—has left our nation less well prepared for the challenges of the next decade. Covid has simply exposed many of those challenges more graphically. Labour also recognises the need for an evidence-based response to these challenges post covid and recently launched the Bright Future taskforce, with a dazzling array of contributors who have agreed to take part. I think they will provide an excellent piece of work to address this area.
The taskforce aims to identify the causes of the academic attainment gap, as it pertains to poverty, economic disadvantage, race, and many other areas. It will identify measures that a future Labour Government could take to address those causes. Specifically, the Government must acknowledge that there is a race attainment gap, which goes wider than class disparities, and set specific targets and positive steps to address the number of black, Asian and minority ethnic students who go from outperforming white students at level 2 to getting worse university and work offers and outcomes at level 3 and beyond.
We also identify many systematic failings with the Government’s approach to skills. Many of these have been caused by the missteps of the last 10 years, but we are anxious that the skills White Paper will continue to envisage an approach to education and skills that is far too corporate, and continues to leave thousands of small and medium-sized enterprises and young people on the side lines.
Apprenticeships must be the gold standard, and the Government should recognise that their failure on apprenticeship incentives and on Kickstart means that they need a fresh approach. I urge the Minister to look again at Labour’s apprenticeship wage subsidy proposal.
This has been a welcome debate, Ms Rees, and I share the view of the hon. Member for Isle of Wight that the Government need to move with real urgency and at scale if, after all their hard work, our educators are not to be left facing an uphill challenge in giving English youngsters the opportunity to compete in the global race with the very best in the world.
Mr Perkins
The Minister has announced many different pots of money. One of the things that really concerns us is that he will allocate money, but these chunks of money will not end up getting spent because the mechanisms, or systems, to get them utilised will end up with those funds not being used. What assurances can he give us that the amounts he is announcing will actually be spent on the things he is announcing they will be spent on?
Nick Gibb
The £650 million, of course, is allocated to schools on a per pupil basis—£80 per pupil—and most of that money has now been distributed. For the £300 million that we announced as part of the £700 million, again, the recovery premium is being allocated to schools on the basis of the pupil premium eligibility in those schools, so that will be allocated to schools to use at their discretion. The national tutoring programme is run by the Education Endowment Foundation, and we have approved 33 tutoring companies: we wanted to make sure that the quality of tutoring was there. So far, 130,000 pupils have been signed up for the programme, but we envisage reaching significantly more—something like three quarters of a million students—in this coming academic year.
Through the get help with technology programme, the Government are investing over £400 million to support access to remote education and online social care services, including making 1.3 million laptops and tablets available for disadvantaged children. The hon. Member for Mitcham and Morden (Siobhain McDonagh) raised this issue today, as she has done in other debates. She will be aware that we are procuring 1.3 million laptops that have to be built from scratch. They have to be ordered, shipped in, checked and have software added. On top of the 1.3 million that we have acquired and procured, there are the 2.9 million devices in schools ready to be lent to pupils that schools had before the pandemic.