Vocational Education

Tristram Hunt Excerpts

Tuesday 4th June 2013 Westminster Hall

[Robert Halfon]

I agree with my hon. Friend, but this issue is not just about careers advice. As I have said, children in school also need to be encouraged to do vocational education, which at the moment they are not.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

Now that careers guidance has been placed inside schools, does the hon. Gentleman believe that schools necessarily have an in-built producer interest to say to young people that their best interests are served by staying on at school because the money will follow the pupil, and that what we are seeing is exactly the fears about the lack of clear pathways into vocational education being realised?

[Robert Halfon]

Unless I misunderstand the hon. Gentleman, as I understand it the school leaving age has been extended to 18 anyway, which was something the last Government did. Given that, I think that if we change the culture in our country, schools will encourage their pupils to take vocational education over university. As I say, we need to change the culture and emphasise to pupils that the vocational qualifications that they will be encouraged to consider will be as prestigious as taking university degrees. On that basis, we should not forget that in this Parliament the Government are setting up 24 university technical colleges—in essence, pre-apprentice schools—and I am incredibly proud that Harlow is getting one, which will open next year. However, we must not settle; we should be aiming to set up at least a hundred such colleges.

We should also be encouraging employers to take on more apprentices. One major hurdle that employers face is the lack of basic literacy and numeracy skills among young people, and we must look at that issue. Recent figures show that 17% of 16 to 19- year-olds are functionally illiterate and that 22% of them are innumerate. It is essential that apprenticeships place a greater emphasis on these basic skills, so that young people are ready to join the work force.

As a country we must create the right climate to encourage businesses to hire apprentices. We have made good progress with this, creating the apprenticeship grant for employers, which gives employers who employ fewer than 1,000 people a grant worth £1,500. It is currently available to employers until 31 December 2013. We will know that the grant is successful if it boosts the uptake of apprenticeship programmes. A new charity called Access is encouraging young people, offering 10,000 youngsters work experience programmes. We need to look at and support such schemes.

Subsidising businesses to take on apprentices works. Essex county council has a groundbreaking apprentice scheme and its employability and skills unit saw apprenticeship starts increase by 87% in 2011, compared with a national average of 21%. The council provides a wage subsidy of up to 70% for businesses taking on new or additional apprentices. If possible, I would like that to be replicated across the country. I look forward to the successes in Essex, led by Councillor Ray Gooding.

I also welcome the idea of a skills tax credit, which would give employers a stronger incentive to hire an apprentice and would create a stronger relationship between the employer and the apprentice. That was recommended in the Richard review of apprenticeships last November. I urge the Government to consider it.

Parliament should lead the way, with clear apprenticeship career paths in Departments. The Minister knows, because I have spoken to him about this before, that I believe that all Departments should replicate the Department for Work and Pensions’ new model procurement contract, which encourages, but does not compel, their contractors to hire apprentices as at least 5% of the work force. That has resulted in the employment of nearly 2,000 extra apprentices who deliver goods and services to the DWP. It is revenue-neutral and should be extended across Whitehall.

As well as changes to incentivise employers to take on apprentices, there should be changes to encourage disadvantaged young people to participate in vocational education. There are currently 900,000 people aged 16 to 24 in England not in education, employment or training. This figure has increased by nearly 50% over the past 10 years and accounts for 14.5% of all young people in England.

We know that 90% of young people who complete their apprenticeship go on to further employment, but some obstacles actively discourage young people from vocational education, particularly if they are from disadvantaged backgrounds. For example, young people at further education colleges are not entitled to free school meals, even if they meet the criteria for them, whereas their peers at sixth form do receive them. The civil servants have said to Ministers that it is too expensive and that schools do not get direct funding for it, even though they are required to provide it by law. The Association of Colleges estimates the cost of extending the right to free meals to college students at around £38 million. I believe that this money can be found through efficiencies. If we are to support vocational education, we cannot say to students who attend FE colleges, which are primarily focused on vocational education, that they are not allowed to have a free school meal even if they qualify for one. That injustice cannot continue.

--- Later in debate ---

[Stephen Lloyd (Eastbourne) (LD)]

It is a privilege to serve under your chairmanship, Mr Gray. I congratulate the hon. Member for Scunthorpe (Nic Dakin) on securing the debate. His involvement with and commitment to vocational education has been long and passionate, and I share that commitment.

Tomorrow is vocational qualification day. I declare an interest as the chairman of the all-party group on further education, skills and lifelong learning. I therefore take this issue very seriously, and I have a profound commitment to it. There are many reasons why I passionately support vocational education, FE colleges and, indeed, the whole sector, but the most important is that the conversion rates from apprenticeships to jobs run at about 90%. At my local FE college, Sussex Downs, which is outstanding and has had a tremendous track record over the past few years under the leadership of its principal, Melanie Hunt, the apprenticeship conversion rate is an astonishing 92%.

A number of people who have left university with degrees and who are, sadly, still struggling to secure employment come to see me in my constituency, and I know that the same happens to other Members of Parliament. I sometimes have to resist the urge to say that if they had gone down the vocational route they would not have the student debt that so many people are, sadly, lumbered with nowadays and they would almost certainly be in employment.

On vocational education, the FE sector plays an absolutely pivotal role. There are several reasons for that. One is that the better FE and vocational colleges develop close relationships with local employers, local alternative training providers and the local DWP—the Jobcentre Plus. In Eastbourne, Sussex Downs college, where I will attend an apprenticeship event this evening before returning to Westminster tonight, is pursuing yet another initiative in a particular area of employment—in this case, retail. The college has spent a lot of time over the past year or two developing and deepening its relationships with different employer sectors and with Jobcentre Plus. A good FE sector wants to listen to employers; it talks to businesses and to the private and public sectors to try to understand their needs, so that it can train people in the vocational qualifications that fit the jobs—in other words, so that it can help people to be job ready.

My hon. Friend the Member for Harlow (Robert Halfon) has admirably championed apprenticeships since his election in 2010. I totally support—I have said this before, and I will say it again—his desire for a royal college for apprenticeships. That is a superb idea; it is exactly the kind of thing that would raise the status of apprenticeships. Perhaps we can discuss it afterwards to see how we can push it forward, because it would make a real difference.

On apprenticeship initiatives, I pay tribute to the Minister, the Government and the Secretary of State for Business, Innovation and Skills, who is probably the most passionate advocate of FE and vocational education we have ever had as a Secretary of State. I spoke to him about the issue in the main Chamber only yesterday, and he reminded me—not that he needed to—of just how important he feels vocational education is in the FE sector. He also reminded me of how important it is that colleagues who feel strongly about this issue continue to lobby the Treasury, so that it does not remove too much money from the Department.

On apprenticeships in Eastbourne, I was one of the first MPs, along with the local FE sector, to work on the 100 apprenticeships in 100 days initiative. It was essential that I developed a close relationship with my local FE college, Sussex Downs. The work, which involved us and a number of other partners, was very successful, and we achieved 181 apprentices in 100 days. More importantly, it allowed me and the FE college to open a really strong dialogue with many local employers in the private and public sectors. The success of that has been astonishing. The latest figures from the Library show that Eastbourne has recruited more than 2,100 new apprentices since the general election—more than in the previous 10 years—which shows than when things are done properly the result is tremendous success.

I want to focus on something that came out of that: it brought home to me how deskilled schools have become about pushing apprenticeships. I work closely with local secondary school heads, and they were the first to admit that because for so long—particularly under the previous Government, but, to be fair, for at least 20 years—there was a drive almost to push people into degrees, teachers had become deskilled in talking about apprenticeships and did not know anything about them. The system in the Department for Education and the school sector provides no advantages in school league tables to push people towards becoming apprentices. There are, however, advantages to A-levels and sending students to university: doing so gets more money. If I were a proactive head who wanted to educate my students towards the tremendous range of apprenticeship opportunities—let us say that I quintupled the number of people becoming apprentices—I would not get a single extra penny from the Department for Education.

[Tristram Hunt]

How then does it help to bring careers guidance into schools, so that there is a producer interest telling young people, even with the rising participation age, that the best thing for them to do is stay on at school, rather than pursuing vocational and other options?

[Stephen Lloyd]

I note that the hon. Gentleman made a similar intervention earlier, and he has a strong point: I do not see how that can help. However, that is not to say that careers services should not be in schools; the question cannot be beyond the wit of man within the DFE, because I think the Department for Business, Innovation and Skills would be keen for the careers service to be extended into FE. I do not think the solution is to stop careers guidance going into schools. I think that it is to do with the regulations and expanding the remit of careers services and the roles or opportunities that they need to talk to students about. The hon. Gentleman made a fair point.

There is a difficulty, because the issue is not one for BIS. I have spoken frequently with the Secretary of State, and several times with my hon. Friend the Minister; and it is clear to me that BIS is, considering the austerity programme, investing more, has greater commitment and is determined to continue the extension and improvement of apprenticeships and investment in FE. I think that we have now come to the tipping point with the vocational sector and FE, and the relationship with the Labour party and the Association of Colleges; there is now a profound understanding that because of the circumstances this may be a once-in-a-lifetime opportunity to move apprenticeships and vocational education up the scale, as in Germany. I am not sure that the opportunity will come again. I urge the Minister to do whatever it takes—working in partnership or working assertively with the DFE—to persuade the Secretary of State for Education to sit down with him and the Secretary of State for Business, Innovation and Skills and work on a productive, positive way forward, in which the DFE takes on board its crucial role in pushing vocational education and recognising and appreciating that there is an opportunity to transform its status, as in countries such as Germany.

--- Later in debate ---

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Gray. I congratulate my hon. Friend the Member for Scunthorpe (Nic Dakin) on securing this hugely important debate, on today of all days—coronation day, when we pay tribute to our sovereign, Her Majesty the Queen. She worked in the family firm and learned her craft from a master monarch. She upskilled on the job, and now she is involved in her own training programme. Perhaps in future we may move vocational qualification day to coronation day, to give exactly the sort of royal imprimatur that the hon. Member for Harlow (Robert Halfon) spoke so eloquently about.

My hon. Friend the Member for Scunthorpe was a long-serving principal of a sixth form college and is better placed than many of us to comment on the challenges that we face in creating an outstanding vocational education system. He set out the issues with authority and passion, and I pay tribute to his work at the Humber Skills Commission. Amazingly, he did all that while restricted by the anaconda of the omertà of the Whips Office, the perennial purdah that he suffers. Yet he still pursues his case with passion and authority. Furthermore, like me he represents an area that is on the front line of the Government’s austerity assault. One hopes that he has benefited from the recent changes in the climate change levy, but the truth is that for cities such as Stoke-on-Trent and places such as Scunthorpe, at the sharp end of the historic process of deindustrialisation, the profound brilliance of our local craftsmanship and artisanal skills has not insulated us from some challenging economic conditions. We can have brilliant craftsmanship while the situation for local skill levels is particularly challenging.

Now is not the time for a debate on the Government’s disastrous economic policies and the damage they have done to the demand side of the equation. We are gathered here today because we know that the supply side of the employment debate matters too: educational attainment and skills capacity are a vital component of rebalancing our economy to a more sustainable model. That much should be abundantly clear to all. Yet it should also be clear, as hon. Members of all parties have agreed, that we are nowhere near where we need to be on skills. Indeed, our weakness was illustrated in a recent global survey of over 1,300 chief executives by PricewaterhouseCoopers. That report revealed that UK business leaders are the most concerned in the whole of western Europe about the availability of key skills. Indeed, they rated it as the greatest threat to their businesses’ growth and three quarters of them said, rightly, that creating a highly skilled work force should be the highest priority for Government in the year ahead.

Sadly, however, there is still some complacency in Government, which, as my hon. Friend the Member for Inverclyde (Mr McKenzie) pointed out so brilliantly, is profoundly damaging to our international competitiveness, because we are, as the Government like to tell us, in a “global race”. How can we succeed in that race when we languish 21st out of all OECD countries in intermediate technical skills and while 31% of high-tech manufacturing firms have been forced to import labour from outside the UK because of a skills shortage? In this very Chamber, we recently had an excellent debate on engineering and the threat to parts of the national security supply chain because of the lack of UK-only trained engineers, particularly female engineers, as some hon. Members have suggested.

The Government, as the latest edition of The Economist eloquently puts it, are racing with their “shoelaces tied together”. That is why this debate is so important. It is absolutely clear to the Labour party that, if we are to build what we want to see—a one nation economy that can compete in a globalised economy while raising living standards right across the regions and nations of the United Kingdom—we simply must have the best skilled work force in the world. The cornerstone to delivering that must, now and in the future, be a relentless focus on driving up the standards of our vocational and technical education system.

I think it is fair to say that, as many hon. Members have noted, not least the hon. Member for Eastbourne (Stephen Lloyd), successive Governments, including the last Labour Government, have not done enough to help the 50% of young people who do not want to pursue the academic route at 16 or 18. As he suggested, we are at a moment of agreement across the parties on the need to rebalance the debate, but I introduce a note of caution. We still want young working-class kids from Stoke-on-Trent, Scunthorpe, Eastbourne and Inverclyde to be able to go to university, and we should not be in the business of precluding those avenues. Although we can rebalance the debate, and although we all want to see growth in the respect given to vocational education and apprenticeships, we must not go down the avenue of suggesting that young working-class kids should not go to university.

[Stephen Lloyd]

I entirely agree with the hon. Gentleman, but does he agree that what we are seeking is parity of both respect and esteem?

[Tristram Hunt]

I am delighted to agree with the hon. Gentleman. He is absolutely right. What we are interested in is a cast-iron commitment to academic and vocational parity, because although our focus in government on raising school standards and academic rigour, and on expanding our outstanding, world-beating higher education sector, left the education system in far better shape than we inherited, as my hon. Friend the Member for Scunthorpe said, we could have done more on vocational education. That is why the Labour party has placed vocational education not just at the heart of our education agenda but at the heart of our offer for the country in 2015, and it is why the leader of the Labour party made his call for focus on that forgotten 50% the heart of his recent party conference speech.

We disagree on the way the Government have pursued vocational education, however. Since they came to power, the Government have undermined careers guidance, which is a big issue for vocational routes. The recent report on that by the Select Committee on Education was absolutely damning. The Government have scrapped work experience and downgraded successful vocational qualifications such as the engineering diploma.

The Government have also made some bad mistakes on apprentices. When they came into power, they simply moved many of those on Train to Gain to apprenticeships. They were more interested in quantity than quality. We would like to think that there has been some rowing back on that recently, and we welcome the Richard review and all the hard work that the Minister is doing to try to enlighten the Secretary of State for Education on that, and we fully support him.

The Minister may now have persuaded his colleagues to hurry out their own version of a tech bacc, yet the difference between the Government’s technical baccalaureate and the Labour party’s original ur-version is that theirs is a performance measure whereas our ambition is for it to be a qualification that we want people to achieve. If some people are going to achieve it, other people are going to fail. If we want quality, it means some will succeed and some will not succeed. We want differentiation on the quality achieved.

As part of that, we need to raise the profile and status of vocational education to create a dual-track system that, as the hon. Member for Eastbourne suggested, genuinely gives no preference to either route. On vocational standards, that means having a clear line of sight both to work and to advanced, further or higher education, which means creating flexible and permeable pathways as a matter of importance. After all, young people are rightly wary of narrowing their options, and the whole ethos of a baccalaureate is to have a sense of broadness. Many see the option of gaining a degree or a gold-standard vocational qualification as part of their natural progression, irrespective of the route they choose at 18.

Furthermore, creating a genuine dual-track system also relies heavily on a deep-seated, collaborative ethos between institutions in delivering education and training. The countries that have enjoyed success in raising standards, such as Austria, Finland and Germany, all benefit from a system that has not only great career guidance but clearly defined roles for key stakeholders, with a great amount of time divested to building and maintaining institutional relationships.

If there is another criticism of the Government’s education policy, it is whether we are seeing the right degree of collaboration between atomistic, competitive schools, which are raising standards in certain situations but are not necessarily providing the kind of collaborative ethos that a local skills economy might need. That is some way from the institutional culture that the Government seem intent on inculcating with their slightly high-handed approach to the expertise of teachers and professionals, the lack of business involvement in delivering training and their focus on competition as the only measure of improving performance. If we want a proper industrial strategy, as the Secretary of State for Business, Innovation and Skills keeps urging, we need smarter local and regional collaboration.

Indeed, we only have to look at the shambolic execution of the Government’s careers guidance policy for a textbook display of encouraging perverse institutional incentives. In a tough funding climate, it will be a brave and outstanding school that advises its pupils not to stay on. In a recent conference in Westminster, we saw a very good example of that: a leading academy school that is part of a leading chain said that it had brought in outside careers guidance, exactly as it should be doing, but that it told the person coming in to give the careers guidance that they were not allowed to advise pupils to go to the college up the road. With in-house careers guidance, there is a producer interest in keeping kids along an easily understandable gold-path academic route, as it were, of GCSEs, A-level and university, rather than thinking far more creatively, which requires trained professionals with knowledge of local situations.

Perhaps the biggest problem we face in delivering a vocational education system for the future is the perverse and pervasive disconnect between the education system and local labour markets. All too often, skills policy is isolated from industrial and economic policy. That is why Labour’s technical baccalaureate would directly involve businesses in accrediting the quality of courses, and it is also why our tech bacc, unlike the Government’s tech bacc, would have a work experience requirement. Businesses have told our taskforce, the Husbands review, that that is absolutely crucial, which is why we would ensure that all vocational teachers spend time every year with local businesses and industry to keep their skills and experience fresh.

Those three measures would bring to education and training institutions a clear and realistic understanding of local labour markets. Closing the gap between employers and educators is vital if we are to develop a dual-track approach.

Of course, raising educational standards in vocational training does not mean that we weaken our focus on core subjects and on improving rigour. In vocational or academic routes, there should be no false division between theoretical knowledge in practical subjects. There is an interesting discussion to be had on where the journey begins for opening up pathways at 14 or 16. What have we learnt from the university technical colleges on the 14-to-19 parameter, rather than up to 16? Was the Wolf report 100% correct in saying that people should continue with the same totality of focus up to 16?

Fundamental to the Labour party’s education policy is a clear commitment to teaching English and maths to 18, irrespective of route, because although many further education teachers do an outstanding job, often in challenging circumstances—we have heard about the differences in funding and free school meals—we need to raise teaching standards in FE colleges in English and maths. Of the 40% of pupils who do not get a level 2 qualification at 16, only 20% go on to acquire one at 19 through the FE system. That needs to change if we want to upskill our country. The Minister should once again take his cue from Labour’s policy review, which is open and available to him, and from our one nation skills commission’s interim report, and commit to requiring all FE teachers to have at least a level 2 qualification in English or maths.

There are other problems with our system of vocational education, training and skills. We have acute skills shortages in crucial sectors such as engineering, too many young people who lack employment skills, low levels of employer involvement and a lack of good-quality advice for navigating the transition to work. Labour supports the proposals on traineeships that the Government are beginning to carve out. There is also a dearth of high-quality apprenticeships and a damaging divide between vocational and academic pathways.

However, I remain deeply optimistic about our ability to deliver on creating the skilled work force that we need. If we have problems with the manner of delivery, it is heartening that we have an element of cross-party consensus on the issue. We have a vast supply of dedicated, skilled, quality teachers who are willing to work with us to raise standards. If we get the system right, we can reverse the long tale of poor skills in this country and deliver a work force that can compete with the world.

We agree with the Secretary of State for Business, Innovation and Skills that there is no future in a zero-sum game of depressed wages and longer hours. That is the Conservative future outlined in the terrible book “Britannia Unchained”—I do not know whether the hon. Members for Harlow or for Suffolk Coastal (Dr Coffey) contributed a chapter—which depicted a grisly neo-liberal world in which the British are too lazy and too slow. I do not know whether that includes paternity leave; the Minister might be able to enlighten us later.

The solution to our competitive challenge is not a low-skill, low-wage economy or a divided education system—the only race that will win is the race to the bottom. Rather, we must and can compete on our own terms, which means using our competitive advantage in innovation to build a one nation economy based on high-level skills and dynamic, technologically sophisticated companies. That is what young people want, it is what businesses want and it is what the Labour party is committed to delivering. It starts with a dual-track education system and our rigorous technical baccalaureate.

[Robert Halfon]

On a point of order, Mr Gray. For the record, I did not contribute to the book mentioned by the hon. Gentleman.