Monday 14th November 2016
(7 years, 5 months ago)
Commons ChamberRead Hansard Text
The Secretary of State for Education (Justine Greening)
I beg to move, That the Bill be now read a Second time.
The background to the Bill is that the Government have worked tirelessly over the past six years to embed our school reforms so that we can raise standards and ensure that an excellent academic route is open to all students. That work continues. Thanks in no small part to the hard work of the teaching profession, over 1.4 million more children are now being taught in schools rated as good or outstanding compared with 2010. This is vital if we are to be a country in which everyone not only has a level playing field for opportunity, but has their potential unlocked and can thereby do their best. This transformational progress has been great news, particularly for those young people who choose to build on their time at school by pursuing an academic route through Britain’s world-class universities on their way to joining the workforce and making a contribution to the economy. The truth is, however, that half—last year, most—of our young people, often those from disadvantaged backgrounds will choose not to go to university, but to follow a less purely academic route, or perhaps one that plays to their individual strengths, talents and interests.
Kelvin Hopkins (Luton North) (Lab)
The Secretary of State will know that we are failing nationally to train enough graduate engineers to serve our own needs. One reason is the teaching of mathematics and the failure of young people to acquire skills in that subject. A lot of effort has been put into improving the quality of mathematics teaching in schools. Are we now starting to see the fruits of that extra effort?
Justine Greening
I believe that we are. Not only have we seen investment in more effective mathematics teaching—through some of the Mathematics Mastery work, for example—but we have tried to widen participation by making sure that girls do maths and science courses, thereby better balancing our engineering careers between men and women. Alongside that—this is why the Bill matters so much—we must recognise routes into such professions that are not purely academic which, for many of our young people, will take the form of technical education.
Tristram Hunt (Stoke-on-Trent Central) (Lab)
Do the Government still want young people who do not achieve a C or above in maths and English to repeat their GCSEs, rather than having a more useful level 2 post-16 qualification?
Justine Greening
We have been clear that we do not want children to be left behind by not getting a GCSE in maths or English when they could have achieved one, so we want those who score a D to take resits. For others, however, there is the option to study for functional skills qualifications, and it is important for employers that we make sure those functional skills qualifications work effectively.
Justine Greening
I will make a little more progress. I will definitely let the hon. Gentleman intervene but, as he will know, I have some way to go as I introduce the Bill.
I was setting out how most young people will not necessarily go down an academic route, but choose more a technical educational route. Despite that fact, the technical education route open to those young people for decades has often lacked sufficient quality and failed to offer a proper pathway into the world of work. That is not acceptable. If we are to create a country that works for everyone, it is time that we gave technical education the focus its deserves, alongside our school and academic education reforms, so that people who choose to pursue this route have as good a chance at getting a high-skilled career as someone taking an academic route.
Nic Dakin
I think that everyone applauds the direction of travel for technical education. In response to the point made by my hon. Friend the Member for Stoke-on-Trent Central (Tristram Hunt) about GCSE maths and English, the Secretary of State focused on functional skills. Is she saying that those functional skills will remain as an equal qualification in the future, because I do not think that that is being said to institutions or students?
Justine Greening
What we are saying is that we want an education system, particularly at the primary and secondary level, that really stretches our young people to get through their GCSEs and to come out with GCSE qualifications that are well recognised and respected by employers. Alongside the resit policy, we want strong functional skills qualifications that can, in conjunction with a broader offer for technical education, enable young people to demonstrate their attainment in both maths and English. No young person should leave our education system without something to show for all their time spent on maths and English. It is important that they are able clearly to demonstrate their level of attainment to employers. At the same time, we need to make sure that people achieve as high a level of attainment as possible to recognise their potential in maths and English. STEM subjects, especially maths and English, have been a strong push for this Government so that we ensure that we give young people the critical building blocks that are important not just for their future careers and work but, much more broadly, so that they have a chance of being successful in life.
Lucy Powell (Manchester Central) (Lab/Co-op)
The Secretary of State is being generous with her time. There is still quite a lot of confusion about this point. She says that she wants to make sure that GCSEs are well understood and that they have a certain status, so will she clarify whether those who will take the new maths and English GCSEs next year will be required to resit if they get a 4 or if they get a 5? Will that apply thereafter, or is it a transitional arrangement?
Justine Greening
Of course, a level 4 broadly equates to a C grade. We will make sure that the resit policy aligns with the new way of grading GCSEs that will come through next summer. I hope Members recognise that the most important thing is to ensure that young people come out of our education system with adequate skills, particularly in maths and English, as well as—dare I say—adequate digital skills, which are also important.
The aim of the Bill is to ensure that there is a genuine choice between high-quality academic and technical education routes. The Government want to build on what exists in the further and technical education sector and steadily create a gold standard of technical education for the first time so that students can be confident that if they commit their time and effort to a course, they will be building towards a successful career. We will unlock those opportunities only by addressing the challenges facing further education. We need to get to the root causes of poor-quality provision, including weak employer engagement, ineffective training methods, the proliferation of qualifications that are not highly valued and, of course, institutions with uncertain finances.
James Berry (Kingston and Surbiton) (Con)
Is collaboration between local institutions part of the process? Will my right hon. Friend commend the work of Kingston College in leading the way by federating with Carshalton College to provide a much better offer to local students?
Justine Greening
That work shows that colleges acting collectively can provide not only a higher-quality offer, but a broader one. We hope that through the local area review, other colleges will steadily make sure that they are co-ordinating their local provision for young people. Wherever young people are growing up, it is vital there is a strong further education offer on their doorstep if they want to follow a technical education route.
The good news is that much of the work is already well under way. Lord Sainsbury’s report on skills in this country led to the skills plan, which was published in July by my hon. Friend the Member for Grantham and Stamford (Nick Boles). Let me take this opportunity to wish him well, as will Members on both sides of the House, following the recent announcement about his health. I am sure that all Members look forward to seeing him back in the House as soon as possible.
The vision that my hon. Friend outlined in the skills plan involves streamlining technical education so that, despite the plethora of career opportunities, there are clearly identified routes into work that students can easily understand and that enable them to make informed decisions about their futures. The skills plan also explains how important it is for employers to play a big role so that the qualifications that young people obtain equip them with the skills and knowledge that they need to enter the jobs market successfully and start their careers. I shall come on to how the Bill will help us to deliver that.
Some 2.4 million apprenticeships were created during the previous Parliament. We want to build on our commitment to increasing both the quantity and quality of apprenticeships, and we remain committed to our target of creating 3 million more by 2020.
Peter Kyle (Hove) (Lab)
I accept that the Secretary of State is determined to ensure that enough students and other young people take up apprenticeships, but will she commit herself to a target for completing them, as well as a target for starting them?
Justine Greening
We do want to ensure that students complete their apprenticeships. As the hon. Gentleman will know, the Higher Education and Research Bill commits us to widening our review of how inclusive and open higher education is, taking account of not just the number of young people who embark on courses, but the number who finish them, particularly if they are from more disadvantaged and diverse backgrounds.
As part of last year’s spending review, we announced that we would provide more than half a billion pounds this year alone to help further education colleges and sixth forms to support students from disadvantaged backgrounds or those with low prior attainment. Moreover, we are already committed to future funding levels. Those assurances will give the sector the security that it requires to deliver the skills that young people need if they are to succeed in modern Britain. We are committed to doubling the 2010-11 spending on apprenticeships, in cash terms, by 2019-20, and to protecting the national base rate of £4,000 per student in 16-to-19 education for the duration of this Parliament. By 2019-20, our funding for 19-plus skills participation will be £3.4 billion, which represents a cash increase of 40% on 2015-16. The steady progress of the Government’s programme of area reviews for the further education sector means that we have taken another important step towards giving institutions the opportunity to put themselves on a secure financial footing.
Lucy Powell
I thank the Secretary of State for her generosity. I welcome the fact that further education funding streams have stabilised recently, but does she accept that the pernicious and deep cuts that the Government imposed on further education and technical education budgets during their first five years in office had a long-lasting and difficult impact on further education, and that that is why we are now so far behind our international comparators when it comes to post-16 funding?
Justine Greening
I do not accept the picture that the hon. Lady presents. In the long term, our technical education offer for young people has not met the ambitions that all of us should have had for it. However, when we went into government in 2010, we asked Alison Wolf to look into further education. Her report said that at least 350,000 young people had been let down by courses that had
“little to no labour market value.”
She said that those courses were not valued by employers and did not prepare young people for further study. Perhaps as damagingly, she also said that students had been “deliberately steered” away from challenging qualifications—that
“funding incentives have deliberately steered institutions, and, therefore, their students, away from qualifications that might stretch (and reward) young people and towards qualifications that can be passed easily.”
I make the point about what Alison Wolf said about the further and technical education system to demonstrate why the body of work undertaken over the last six years is so important. It has at its heart the Sainsbury review that was undertaken alongside Alison Wolf’s work, and what came out of that was the skills plan. I hope that Members on both sides of the House will now swing in behind the skills plan and, indeed, the Bill, which is part of how we will develop it.
Mike Freer (Finchley and Golders Green) (Con)
What steps are being taken to address the continuing gender imbalance in our apprenticeships?
Justine Greening
My hon. Friend raises an important point. We want to make sure that young girls get exactly the same opportunities as young boys. We know that part of the challenge relates to the kinds of industries that might offer apprenticeships. The hon. Member for Luton North (Kelvin Hopkins) asked me about the engineering profession. It is important to ensure that the technical education route is as desirable for young women as it is for young men, and among the ways we will do that is by steadily changing its image, by ensuring that it is of high quality, and by making sure that people know that if they follow this route, they will come out with experience and qualifications that employers truly value. That is why part of the Bill’s purpose is to put employers at the heart of our technical education strategy.
University technical colleges have also been established to address skills gaps in local and national industries. They provide technical education that meets the needs of modern businesses. Indeed, they also give a much different offer to young people who are interested in specialising through a technical education route.
Justine Greening
I would like to make a little more progress. I recognise the hon. Gentleman’s long-standing interest and expertise in this area, but let me get on to the Bill itself.
Alongside our wider education reforms, the Government’s work on technical and further education over the past six years represents a firm foundation on which we can now build a really strong technical route in this country. The Bill serves to do exactly that. Part 1 focuses on technical education. It extends the role of the Institute for Apprenticeships to give it responsibility for classroom-based technical education in addition to apprenticeships. It will be renamed as the Institute for Apprenticeships and Technical Education. The measures take forward and support the reforms set out in Lord Sainsbury’s report and the skills plan so we can truly streamline the technical education system and ensure young people can follow clear routes to skilled employment. That will ensure that we have strong standards as part of an employer-led approach on technical education so that courses and apprenticeships develop knowledge, skills and behaviours in individuals that meet the needs of employers and improve overall productivity.
Rob Marris (Wolverhampton South West) (Lab)
The right hon. Lady may well know that those of us who have worked in factories and in similar jobs realise that often the people at the chalk face, as it were, know at least as much as employers about what skills are needed. How will we ensure the revamped institute includes workers or their representatives—as well as employers, of course—so that there is a rounded view of what is needed and what is appropriate for a particular skill?
Justine Greening
As the hon. Gentleman knows, the Government have talked significantly about our plans to make sure that workers have more representation at the higher echelons of business. As the Institute for Apprenticeships becomes responsible for technical education, it will of course have employers at its heart, but it will also work with other stakeholders including, importantly, further education colleges themselves. We will make sure that the institute can truly deliver on our ambition for it to be at the heart of how we drive forward and improve standards in technical education.
Part 2 of the Bill puts in place protections for students for the first time and provides greater certainty for institutions by introducing an insolvency regime for further education and sixth-form colleges. It applies normal insolvency procedures to colleges. At present it is not clear whether or how colleges are covered by existing insolvency law, and the resultant uncertainty is bad for colleges and for students. The Bill will remove the uncertainty for all parties by putting in place a regime that allows for an orderly process in the very unlikely event of a college becoming insolvent. As I have said, we need to rectify the lack of protection for students. Crucially, chapter 4 of part 2 will put in place a special administration regime that will have the special objective of minimising or avoiding disruption to the studies of existing students at affected colleges. These measures will ensure that students can be protected if a college becomes insolvent.
As I mentioned earlier, the current programme of area-based reviews is already putting the sector on a sustainable financial footing for the future. Part of the review process is to encourage colleges to consider needs and provision locally. That will help to ensure that the right provision is available in the right places. The proposed insolvency regime and technical education measures also require certain delegated powers, and we will be providing more information about those to the House before the Bill goes into Committee.
Part 3 of the Bill, the title of which is “Further education: information”, includes a measure to amend existing legislation to ensure that, after the devolution of further education functions and the adult education budget to a combined authority, FE providers and others will continue to submit relevant information to the national data system. This will ensure the continued availability of relevant data that are needed to make intelligent and strategic policy decisions about investment in further education.
Six years ago, we inherited a system from Labour in which too many young people—often those from the most disadvantaged backgrounds—left school or college without the skills and qualifications that they needed to build a successful future. Our wide-reaching reforms have had a transformational effect on the education system in this country, and it is important that we now build on the work of my two immediate predecessors in this role, my right hon. Friends the Members for Surrey Heath (Michael Gove) and for Loughborough (Nicky Morgan).
We know that there is still so much more to do, which is why we are doubling free childcare for working parents of three and four-year-olds to 30 hours a week. We are also working hard to put our first-class universities on an even stronger footing so that they can continue to compete with the very best in the world. We are starting work on opportunity areas to ensure that the education system as a whole can work better to drive social mobility in those parts of the country where it has been stalled for generations, and we have doubled the previous Labour Government’s spending on school places and set out plans to make more good and outstanding school places available to more families all over the country.
The newly broadened remit of the Department for Education, with skills and further education back under one roof alongside schools, gives us an exciting opportunity to build on the excellent work that has already been done over the past six years, both in FE and in the wider education sector. In the end, education underpins how this Government want to create a country that works for everyone so that, irrespective of their background, people can get the skills that they need to take advantage of the opportunities in our country. This is not only good for individuals, but will ensure that we have the skills that our businesses and our economy need so that we can drive up prosperity across the country. The Bill will allow us to take the next steps to give the technical and further education route the status and the spotlight it deserves so that it can flourish as a genuine, high-quality alternative to the academic route, and one that leads to successful careers for those who choose to pursue it. I commend the Bill to the House.
Lucy Powell
I apologise, Madam Deputy Speaker. I want to put it on the record that it was I who was speaking from a sedentary position. The Minister is indeed at the vanguard, but the only other discernible member of the Government is the Minister for the Armed Forces, who is standing behind the Speaker’s Chair.
The Minister for Apprenticeships and Skills (Robert Halfon)
May I make a quick point? As the debate has highlighted today, it is quality, not quantity, that counts.
David Rutley
Indeed.
The Bill is timely. After strenuous efforts to stabilise the economy following the financial crisis, the UK faces a new opportunity—and some challenges—in Brexit. If we are to make a success of leaving the EU, it is increasingly urgent that we tackle our long-standing productivity gap compared with other leading economies. The challenge is to upskill the existing and future British workforce. It is interesting that the Chartered Management Institute says that one in four jobs was left vacant in 2015, owing to skills shortages.
The Minister for Apprenticeships and Skills (Robert Halfon)
I welcome the thoughtful contributions to the debate from Members on both sides of the House.
This important Bill has two purposes: to provide high-quality technical education to students; and, when colleges are suffering extreme financial difficulties, to provide clarity in the unlikely event of insolvency while protecting students as part of the process. The Bill has the protection and best interests of students at its heart, which is why David Hughes, the chief executive of the Association of Colleges, has stated that he is
“pleased that the Government is continuing to take forward the measures outlined in the Post-16 Skills Plan”.
The Bill is vital because we face serious challenges: a chronic shortage of high-skilled technicians; acute skills shortages in science, technology, engineering and maths; and low levels of literacy and numeracy compared with other OECD countries. A number of Members have raised an important issue about maths. We do not yet require all 17-year-olds who have not achieved an A to C in maths and English to resit the qualifications. Students who achieve lower than a D grade at 16 may take other qualifications. We are looking at functional skills. I want functional skills to be better and for them to be as prestigious to employers as other skills.
Robert Halfon
I ask the hon. Gentleman to hold on one second, because he said that he wanted resources for maths, and we have invested £67 million to recruit up to 2,500 additional maths and physics teachers, and to upskill up to 15,000 non-specialists. We are investing the resources.
Robert Halfon
I will not give way because of the shortage of time.
A number of hon. Members mentioned the Maynard reforms. We will implement those as soon as we possibly can, particularly with regard to the issue of maths for those with disabilities. We will inform the House as progress is made.
The hon. Member for Hove (Peter Kyle) talked about the levy and technology. The thing is that if companies have apprentices, they do not pay the levy, and they get 10% on top. This is about changing behaviour and raising money to fund millions of apprenticeships in our country.
We have substantially grown apprenticeships, with 619,000 starts, which is why we have the levy. It will have an impact on employers with a pay bill of £3 million or more and help to fund the quantity and quality of apprenticeship training. We are dramatically reducing the number of technical qualifications available, ensuring even better quality for students.
A lot has been said about FE funding, but by 2020 more will be spent on FE and skills participation than at any time in our island’s history—£3.4 billion in the year 2019-20. My hon. Friend the Member for Dover (Charlie Elphicke) correctly described FE as a ladder of opportunity for young people.[Official Report, 20 December 2016, Vol. 618, c. 11MC.]
We are adopting the Sainsbury report, as has been suggested, and will put in place 15 high-quality technical routes to skilled employment. Those will be implemented by the Institute for Apprenticeships and Technical Education, which will oversee the employer-led reforms.
We are proud of the university technical colleges. There is clearly a debate here, as some Members want those for pupils at 14 and some for education at 16. That debate will no doubt continue, but we allow flexible entry to UTCs in certain circumstances.
My hon. Friend the Member for Macclesfield (David Rutley) asked about the role of business. We have created the Careers & Enterprise Company to boost businesses’ linking up with students in schools.
The hon. Member for Wolverhampton South West (Rob Marris) talked about representation. I am very keen for all kinds of organisations to be represented. I am a trade union member myself, and I am very proud that this Government give Unionlearn £12 million. It has an incredible fund that supports thousands of learners and apprentices. I very much hope that trade unions will be involved in the Institute for Apprenticeships and Technical Education. The institute will ensure that all technical provision, across both apprenticeships and college-based courses, matches the very best in the world.
Rob Marris
On a point of order, Madam Deputy Speaker. The Order Paper I have says that this debate can continue until 10 pm. Am I misreading it?
Madam Deputy Speaker
Mr Hunt is excited at the prospect of another three hours from the Minister, but it is incumbent on every Member of this House to judge the mood of the House, the pace of the debate and the necessity of taking up the time of the House. From my observation and experience, a speech of between 10 and 15 minutes from a Minister winding up is usually appropriate and welcomed by most Members of the House.
Robert Halfon
The hon. Gentleman and other Opposition Members talked about quality, not quantity. They should practise what they preach.
Let me give an example of the technical education reforms in practice. For someone aspiring to be an engineer, rather than choosing from the 500 qualifications that are currently on offer, many of which hold very little value for employers, there will be one clear route: the new engineering and manufacturing route. That individual will choose an apprenticeship or college-based technical education course by choosing an occupation. They will initially learn a broad base of knowledge based on one approved standard per occupation, and then they will specialise, for example towards electrical engineering. The awarded certificate will be universally recognised and have real value for employers. That is an example of the nature of our technical reforms.
There is no doubt that FE and sixth-form colleges play a vital role in our education system, as the hon. Member for Scunthorpe (Nic Dakin) noted so brilliantly. That is why I have visited my own FE college more than 50 times since becoming an MP. FE colleges act as genuine centres of expertise. We know that, because 80% of colleges are either good or outstanding, and 79% of adult FE students get jobs, move to apprenticeships or progress to university afterwards. It is worth noting that 59% of institutions are in good financial health and 52% are operating with a surplus.
A minority of colleges, however, are in serious financial difficulties—about 40 colleges face these problems. In supporting these colleges, we forecast by March 2017 a total spend of £140 million on exceptional financial support. That £140 million could have been invested in students. We have to deal with the roots of these problems and ensure that we protect students, which was why we started the area reviews, about which there has been much discussion. They will be completed by March 2017 and will ensure financial resilience, strong leadership and well-governed institutions. We have a moral duty to students that money is spent on learning, and a duty to deliver value for money for the taxpayer. Money that would otherwise be spent servicing debt will be freed up to invest in high-quality education and learning.
Robert Halfon
I am very sorry, but I cannot because of time, even to my hon. Friend. I apologise.
Let me be clear: no FE or sixth-form college will close as a direct result of the Bill. The Bill will help to ensure prudent borrowing and lending, and to safeguard the protection of students.
The insolvency regime under the Bill will clarify what will happen should a college become insolvent. The special administrative regime we are introducing will allow Ministers to take action to ensure that learners are protected. There will be duties on the Secretary of State to promote education, and to provide suitable apprenticeship training and basic skills training for certain people. All existing statutory requirements will stay in place. Local authorities are also legally responsible for promoting effective participation and making clear how transport arrangements support young people of sixth-form age to access opportunities. That is not to say, however, that creditors are not important. Colleges and banks have long worked together to grow and develop the FE sector. The Bill will introduce a clear process for all involved should a college become insolvent, and will reassure creditors about how their debt will be treated.
The reforms in the Bill are fundamental to the Government’s vision for a country that works for everyone. It will ensure that we improve the skills base in our country, that we increase our economic productivity, that we protect students, and that those from the most disadvantaged backgrounds have a chance to climb up the ladder of opportunity. I commend the Bill to the House.
Question put and agreed to.
Bill accordingly read a Second time.
Technical and Further Education Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Technical and Further Education Bill:
Committal
1. The Bill shall be committed to a Public Bill Committee.
Proceedings in Public Bill Committee
2. Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 6 December 2016.
3. The Public Bill Committee shall have leave to sit twice on the first day on which it meets.
Proceedings on Consideration and up to and including Third Reading
4. Proceedings on Consideration and the proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
5. Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
6. Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading.
Other proceedings
7. Any other proceedings on the Bill (including any proceedings on consideration of Lords Amendments or on any further messages from the Lords) may be programmed.—(Heather Wheeler.)
Question agreed to.
Technical and Further Education Bill (Money)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Technical and Further Education Bill, it is expedient to authorise the payment out of money provided by Parliament of—
(1) any expenditure incurred under or by virtue of the Act by the Secretary of State, and
(2) any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Heather Wheeler.)
Question agreed to.
Technical and Further Education Bill (Ways and Means)
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the Technical and Further Education Bill, it is expedient to authorise—
(1) the charging of fees, and
(2) the payment of sums into the Consolidated Fund.—(Heather Wheeler.)
Question agreed to.
Homelessness Reduction Bill (Money)
Queen’s recommendation signified.
Resolved,
That, for the purposes of any Act resulting from the Homelessness Reduction Bill, it is expedient to authorise the payment out of money provided by Parliament of any increase attributable to the Act in the sums payable under any other Act out of money so provided.—(Mr Marcus Jones.)