Small Business, Enterprise and Employment Bill

Debate between Baroness Perry of Southwark and Lord Young of Norwood Green

Wednesday 11th March 2015 Lords Chamber

[Baroness Perry of Southwark (Con)]

My Lords, I want to follow the powerful points made by my noble friend with a small point which has occurred to me while listening to this debate. We heard the very moving thoughts of the noble Baroness about the single mother on a zero-hours contract who has to pay her babysitter when she turns up and then cannot afford her the next day. I, too, have been a working mother who has needed to use babysitters for my children if there was a sudden crisis and one of them was ill and could not go to school on the day that I was due to work. Like that single mother’s babysitter, my babysitter was also on a zero-hours contract. She was able to be paid for the day she turned up but, when she was not needed the next day, she was cancelled. We need to think more broadly about the needs even of single mothers who use a babysitter on a zero-hours contract just as much as we think about the needs of those on zero-hours contracts in other kinds of jobs.

My noble friend made the point that there is a varied range of employment positions and a wide range of ways in which people are employed. The way in which people are employed in domestic situations is usually on zero-hours contracts. We use our babysitters when we need them, not when we do not. Sometimes we cancel them at the last minute because we do not need them after all. We need to stop trying to see everything in terms of good and evil, right and wrong; there are shades. Trying to make regulations across that range would be a very dangerous thing.

[Lord Young of Norwood Green (Lab)]

My Lords, I intend to be brief. My noble friends Lady Hollis and Lady Drake have given a forensic examination, based on factual analysis, and I do not feel I need to go through it again. I want to address some of the comments made by the noble Lords, Lord Stoneham and Lord Deben, and the noble Baroness, Lady Harding.

On the UK labour market, the first thing we need to understand is that it is probably the most flexible labour market in Europe. Nobody could say that we are like France, Italy or Spain or that we have something that makes it almost impossible for employers to hire people flexibly. I will leave noble Lords with the following thought. On grounds of fairness, are we going to say that a zero-hours contract means zero rights? Just to remind us, under zero-hours contracts there is no sick pay, no holiday, no national insurance contributions and nothing towards a pension—that is a pretty demanding contract as it is, and it is hardly weighted against the employer.

Nobody on this side who has supported these amendments has suggested that we want to do away with zero-hours contracts in their entirety. We accept that, for some people, they are a valid and necessary means of employment, both for the employee and the employer. However, there ought to be some reasonable ground rules. If you are running a business, yes, there will be changes in circumstances; that is undoubtedly right. However, this amendment aims to lay down a principle which it says will be interpreted in regulation and which will not just be dealt with by the spectre of solitary civil servants, who apparently between them have never experienced an hour of work in industry at all. From my brief ministerial career, I know that that does not necessarily apply to all civil servants, so I do not accept the idea that they will work in a total vacuum—that is an unnecessary fear.

Are we really putting forward the basic argument that, if I am being contacted and told by the employer, “I want you to turn up for work”, and I turn up, honouring my side of it, the employer has no responsibility whatever? I listened carefully to the noble Baronesses, Lady Perry and Lady Harding, and there might be other circumstances, but that is a question of taking into account how we phrase the regulations, so we can take those into account. That is not an argument for saying that there should be no control over this situation at all.

The noble and learned Baroness, Lady Butler-Sloss, reinforced the point, which my noble friend Lady Hollis had made, that it is curious that the CBI supports this. That is hardly an organisation that would support something it thought totally inflexible. Surely this is about basic fairness, is it not? If we are enjoying the services of somebody who is working under those conditions, surely it is right that they should have some fairness applied in the way they are summoned to their employment.

Surely we are seeking to encourage reasonable standards of management. I will give another statistic from the Chartered Institute of Personnel and Development: only one in five British managers has any training at all. I point that out to the noble Baroness, Lady Harding, because it is as important as some of the other statistics she quoted. Of course, people will declare that they are satisfied—they need the money and are glad to get into work. However, when we are being served by those people, do we not feel that there should be certain basic rights? This is one of them.

We commend the Government for getting rid of the exclusivity provisions in such contracts, which was clearly unfair. However, because of the way this amendment has been made it ought to attract cross-party support. We are not taking a political stance here, but a stance on responsible and effective management—that is what it is all about—and on giving a reasonable right to the employee. It can be dealt with very effectively in regulations, and I hope that the House will overwhelmingly support it.

Deregulation Bill

Debate between Baroness Perry of Southwark and Lord Young of Norwood Green

Thursday 6th November 2014 Grand Committee

[Lord Young of Norwood Green]

I welcome that clarification and apologise to the Committee for any confusion caused.

My Lords, Amendment 69A seeks to amend Schedule 14 to ensure that teachers at further education establishments have specified qualifications. It seems that there is a dichotomy in government policies: on the one hand, they stress the importance of vocational careers and apprenticeships—we heard the Minister pointing out the difficulties in some areas, such as construction—and the need to enhance public perception of young people, parents and teachers, yet the schedule seeks to remove the requirement for teachers at further education institutions to have a specified qualification.

The Opposition are not alone in their concern. The City & Guilds institute, in written evidence to a consultation on the proposed revocation of further education teachers’ qualifications, said:

“City & Guilds wishes to see further exploration of the impact of removing the statutory requirements for Further Education (FE) sector teachers to have specific teaching qualifications at the same time as other changes resulting from the establishment of the Education and Teaching Foundation. The Sector faces uncertainties about the expectations for staff qualifications … The Coalition Government’s Skills for Sustainable Growth made clear that a strong FE system should play a key role in social mobility. Qualitative evidence suggests that the 2007 Regulations had a big impact in relation to the FE sector. There has been a year-on-year increase in the proportion of staff with a teaching qualification at Level 5 or above and an increase in the overall proportion of teaching staff in FE colleges holding a recognised teaching qualification (at whatever level) since the introduction of the Regulations (an increase from 74% of staff in 2005-06 to 77% in 2009-10). The majority of teaching staff in FE colleges are either qualified or on the way to becoming qualified according to the most recent data (from late 2010, but including earlier returns for 25% of providers). The Deregulation Bill now puts responsibility on the FE sector to consolidate and improve this momentum, so the sector will need to define and establish clear direction on how it will sustain and enhance its professionalism … City & Guilds is keen to ensure that the quality of FE teaching is maintained. ‘The quality of an education system cannot exceed the quality of its teachers. If we are committed to high quality vocational education, we must have teachers with the experience and skills to deliver it.’ It is vital for FE providers to strike the right balance in relation to teaching skills and industry/subject expertise within their workforce”.

Those closing points about striking the right balance between having specific qualifications and “industry/subject expertise” lie at the heart of this. I applaud the Government’s commitment to vocational training, but we question whether the schedule’s act of removing the need for teaching requirements is a step too far.

I go further and refer to the proposals of Labour’s independent Skills Taskforce, led by Professor Chris Husbands, director of the Institute of Education, and comprised of leading business and education experts. The work of the task force informs Labour’s shadow business and educations teams. It feeds into Labour’s work and business policy commission, and its education and children policy commission.

Under the proposals put forward by the independent Skills Taskforce, colleges will apply to become institutes of technical education, specialising in technical subjects suited to their local labour markets and focusing on offering high-quality technical education to young people. Gaining a licence should be contingent on three core criteria: demonstrable specialist vocational training and expertise; strong employer and labour market links; and high-quality English and maths provision. I would add IT to that. Having a licence would allow these institutes to access funding streams to deliver the technical baccalaureate and off-the-job apprenticeship training. They will consult on the process for licensing colleges.

One option recommended by the Skills Taskforce is to give the UK Commission for Employment and Skills responsibility for determining the full criteria and method for awarding the licences. The report goes on to recommend that, under Labour, college lecturers would be required to obtain a teaching qualification to ensure that standards are high. This is in contrast to the policy of the previous Minister, Michael Gove, of allowing unqualified lecturers, and it is consistent with Labour’s position of insisting on qualified teachers in schools.

All further education lecturers will have to become qualified to minimum standards, determined by the Education and Training Foundation. FE lecturers will need to have at least level 2 English and maths, which is surely not an unreasonable requirement. As part of a new agenda for the professional development of FE lecturers, they will also be required to spend time in industry to top up their skills and expertise. Again, I think that strikes the right balance—requiring a qualification plus the need to know what is going on in their particular industry.

Despite calls from industry, the Government have refused to back these steps. We believe that these bold new policies will build on Labour’s agenda for those young people who choose not to go to university. It may not be an either/or decision; they may well go on to qualify for a degree later as a result of their technical education. These announcements follow a commitment made by Labour to dramatically increase the number of level 3 youth apprentices over the next five years. We will ask all firms that want a major government contract to provide high-quality apprenticeships for the next generation, in contrast to this Government’s attitude of allowing public contracts to have no requirement for apprenticeships.

In closing, I ask the Minister whether there will be any guidance or criteria for FE colleges to consider when appointing teachers in the FE sector and encouraging their career and personal development. Surely all of us in this Committee know that we face a real challenge in meeting shortages of those skills that are vital to the development of industry and the growth of the economy. Quality further education which inspires students, parents, teachers and industry surely lies at the heart of the solution. I look forward to the Minister’s response. I beg to move.

[Baroness Perry of Southwark (Con)]

My Lords, I hesitate to contradict anything said by the noble Lord, Lord Young, because I know that his heart is absolutely in the same place as mine so far as vocational education is concerned. I also hesitate very much to go against anything said by the City & Guilds of London Institute, having been its vice-president for many years and then the chair of its quality and standards committee. However, on this occasion I think that the amendment has got it wrong, and the way the Bill is currently drafted is right.

Let me explain why I think that. I started my own career teaching in further education, so I have worked alongside many people who taught courses in mechanical vehicle repairs and so on who were not qualified teachers and had no teaching qualification. However, they had a passionate commitment to the education and training of the young people for whom they were responsible. Very recently, I visited a further education college and went to see the construction course. I talked to a young man who I think was about 16 or 17. He told me quite openly that he had been truanting from school for many years and was not at all interested in it, but then he saw this course and decided that he would have a go. He absolutely loved it, and he was learning and upping his skills in maths and English and so on.

I then talked to the tutor on the course, who did not have a teaching qualification. He told me that he himself had been very much like the young man who was now his student. He had played truant from school; he had “messed about”, as he put it. Finally, he had got himself an apprenticeship in the building trade, had worked his way up and become a foreman and had decided that he would go to night school and do some A-levels and so on. He had then sought and obtained a job as a teacher. He was not a qualified teacher but he was a highly self-educated and aspirational young man, and deeply aspirational for the young students he was teaching.

We would deny to principals of further education colleges the freedom to offer jobs to people like that, who have all the right experience in terms of their knowledge of the industry and a deep commitment to bringing other young people along the path they have themselves followed. The 2002 Act says that it would prohibit the provision of education by a person who does not have that specified qualification. To insist that they have a teaching qualification, as well as all the other qualifications of experience and vocational qualifications, would make for a very sad day for further education. I beg the noble Lord to think again. I pass to him.