Baroness Stedman-Scott
Main Page: Baroness Stedman-Scott (Conservative - Life peer)
Baroness Stedman-Scott
That this House takes note of the case for creating the right education and employment opportunities in the United Kingdom.
Baroness Stedman-Scott (Con)
My Lords, I must first declare my interests, in that I am a governor of Bexhill Academy, patron of Rye Studio School and an ambassador for the charity Tomorrow’s People. I speak not arrogantly but having had 30 years in this field, and it has consumed me, so it is in my DNA. I shall give some practical examples of the effect of there not being strong education and employment support for many of our young people.
I want to start by giving one example. About 15 years ago, a company asked Tomorrow’s People to help it recruit, induct and integrate 12 unemployed young people into its workforce. One young lady, by her own merit, got the job of booking all the executives’ travel which, for her, was very exciting. She turned up for work on Monday, Tuesday, Wednesday and Thursday, but on Friday she was missing. A member of our team went to her house and knocked on her door. It was about 10.30 am and she came downstairs in her pyjamas. When asked why she was not at work, she said that she never went to school on Fridays, so she did not think that she would be missed. The next week exactly the same thing happened. Somebody went to her house and told her to get dressed. She came and the next week she turned up—Monday, Tuesday, Wednesday, Thursday and Friday.
Quite rightly, in your Lordships’ House we often speak about great, intricate things, but some of the things our young people face are very basic. That is why we need strong education and employment support opportunities for youngsters in the UK. We must be driven when we see what happens when we do not have it. Please do not get me wrong; there is an awful lot of excellent work and progress taking place. It just seems to me that we have been presented with a window of opportunity to build and improve on what we have in place, and we have to grasp it.
During preparation for this debate, I sought to ascertain the data and statistics on those for whom the right opportunities have been in place but who have not been able to take advantage of them—those who are NEET. Obtaining those statistics has not been as straightforward as I would have hoped. However, I am happy to present to your Lordships’ House consistently reported figures from ONS. From April to June this year, there were 922,000 young people aged 16 to 24 in the UK who were not in education, training or employment. That was a welcome decrease of 21,000 from January to March 2015. Some 788,000, or 85%, of these young people were in England. The figures have remained stubbornly high during a number of strong economic periods and some difficult periods. From April to June, 370,000 NEET young people who were looking for work were classified as unemployed. The remainder were either not looking for or not available for work and were therefore classified as “economically inactive”. I will leave noble Lords to try to make sense of that.
The Impetus-PEF 2014 annual review for the ThinkForward programme states that,
“For every young person who goes on to become NEET, … £56,000 is lost to the public purse”.
When I looked at the maths—and, believe you me, I had to do it three or four times to make sure I had got it right—those 370,000 young people equated to £21 billion of lost money to the public purse. If there were ever a case for getting this right, it is now.
Those are just the fiscal costs. What about the other costs to those who are affected? There are people with special educational needs; those with dyslexia; those on the autistic spectrum; those with mental health issues; those involved in crime; those with addictions; and those suffering family breakdown. To me, family breakdown is one of the biggest generators of people not being able to achieve their potential. People talk of fiscal poverty; in my book, in this country there is a poverty of hope, a poverty of self-belief and a poverty of aspiration for the young people we are talking about.
The case for a step change has never been greater, but we must not forget the times in which we find ourselves. The employment rate is at a record high of 73.6%, with 31.1 million people in work. Unemployment is down to 1.77 million, or 5.4%. Long-term unemployment has fallen to its lowest level since 2009, down 526,000—a fall of a quarter compared to the same period in 2014. Vacancies are at a record high of 783,000. It is easy to make various comparisons, but it does not seem right that we have so many young people without employment. All this stands against the gloom and doom predictions of some that the opposite would happen—that unemployment would be up, vacancies down and the numbers of people in work would fall. We must recognise this success.
So let us concentrate on those who, thus far, have not fulfilled their destiny and ensure that what is in place will help them to do so. Prevention is better than cure and, if early intervention is genuinely accepted as being the right thing to do, it is seen by most as an investment rather than a cost. The benefits are seen as a saving of both social and fiscal capital, rather than as a cost of putting something right that had not worked in the way we had hoped.
The case for creating the right education and employment opportunities needs a little more articulation. From my experience, this means that we need to take young people on a journey, starting at school and arriving at a destination of a successful transition from school to work. We should be under no illusion that, once this destination has been arrived at, it is not the terminus. The journey does not end. There will be other phases along the way, but let us hope that we will have given them the confidence and skills to embark on that next phase with a much less heavy touch of the support that they will need.
I am grateful to all noble Lords who will speak in this debate—all of whom have areas of expertise on which their contributions will be made. I have no intention of trying to duplicate these, but I do want to talk about the journey path, about what I have seen work and about what the key components might be. I would also like to thank Gideon Levitt for his help in putting this speech together.
The journey definitely starts at school. Some say it does not start early enough—that it should be at primary school—but it should start in the education system. How can we build on the excellent progress made in our schools? There are a few things. Having focused predominantly on the academic path, can we now make sure that credible and meaningful vocational routes are bedded down into the school system and curriculum? These routes must be credible to employers. When they are considered, vocational opportunities are targeted at the most disadvantaged. Might they, too, not be more appropriate for others who enter the academic journey only to fall out too quickly?
I want to make a plea for core life and employability skills to be part of the curriculum. Perhaps the Minister could let us know the department’s position on this. This element of support is left to individual schools whose pressing priorities mean that, where they are included, they are done inconsistently and are very much dependent on volunteering with limited resources available. Employers need a well-prepared, highly motivated and energised workforce. Employers, too, are a critical component to the journey of a young person. Again, depending on resources and other priorities, employer involvement is not consistently embraced. Please can it be considered, so that all young people are able to have a good experience of the world of work?
By institutionalising the idea of a “career journey” for young people, we can break this vicious cycle of unfulfilled potential. This will in turn create the right conditions for the country to fulfil the economic potential which remains dormant within a significant portion of its population. The social benefits will be exponential, as we create motivated, focused employees where previously we sought just to shoe-horn young people into work by any means necessary. By creating an integrated, seamless system where employers have a permanent presence in the national curriculum, the truth of this interdependence can be realised. No longer should business involvement be artificially divorced from the classroom environment.
Much has been said about careers guidance. The setting up of the Careers & Enterprise Company is very welcome. The Leeds pilot has significantly improved business involvement in the enterprise network and enabled 3,500 young people to access new employer-led opportunities. We need an employment model which nurtures the career aspirations of our young people and we must shift our focus to schools. A careers guidance process which starts early and is tailored to individual needs creates a virtuous cycle of employability, rather than a reactive, costly cycle of long-term unemployment. A targeted investment in life employment and career readiness will create both a dynamic workforce over the coming decades and reduce the financial strains incumbent on long-term unemployment.
I want to introduce to your Lordships an initiative called ThinkForward, a partnership of Impetus-PEF and Tomorrow’s People, which has achieved great success: 85% of 14 to 16 year-olds have shown substantial improvements in their school attendance and behaviour; 60% of the school leavers achieved at least five GCSEs at grades A to C; and 96% of the 17 to 18 year-olds were in employment, education or training. If you remember the early figures quoted to you on NEET levels, you will see the difference this could make. Can the Minister give us the department’s view on the ThinkForward programme and any indication whether this could be offered to all young people, or at the very least those most excluded and vulnerable? Let us think about those in care who need this help, those in the criminal justice system and many others. It would be a good investment to enable them to achieve results and would negate the need for so many costly rectification programmes. It would enable young people to transition from school to work and be independent, aspirational and not dependent on welfare. I will leave it there on that for now.
I want to conclude by telling your Lordships about a young lady whom we helped. She was a bit of a handful. She got into so much trouble that she was not allowed to get on the bus to go through her high street to go to school, so her coach got on the bus with her at the beginning of the high street and got off at the end of it. The young lady went to college; the coach met her on the way back; and she never missed a day at college. And she got a job, which was great. When that coach was no longer able to support her, or it was deemed that she did not need the help, it was not too long before she came back to us and said, “I’m in big trouble”—the language was a bit more colourful than that, but the essence was that she was in big trouble. I was asked whether I could write a letter to the court to say that she really was a very good girl and that she should not go to Her Majesty’s pleasure. I said, “Well, I couldn’t possibly to do that, because if you’ve done something you’ve got to stand by it”. But I did write to the judge to say, “This young lady’s had humongous problems and when she’s had her personal coach with her she has proved what she can do. The minute the coach wasn’t there, obviously, things went wrong. Whilst I don’t condone for one minute what she’s done, when she’s got somebody with her, things are very different”. I would like to see every young person—I have said this before—with a personal coach, even if it is, to start with, for the most disadvantaged, to help them on their journey to prevent rather than cure.
I know that there is an elephant in the room—no disrespect to anybody here, I might say. Your Lordships will tell me, “It’ll cost a lot of money”. Well, it probably will, but it will not cost as much as if we do not do something. I know that social investors and big society capital are ready with finance to inject to pay for such coaches so that we can do something about this and prevent it. I know that the request to the Government for a local outcomes fund to pay only when a young person has reached a successful destiny in their journey is pure common sense and good for the public purse. So I say to the Minister that it is the curriculum; it is the coaches; and it is a financial model where the computer says yes. I beg to move.
Baroness Stedman-Scott
My Lords, I thank everybody who has taken part in this debate. I almost feel like we are just getting going. I am sure, though, that the Companion does not allow me to apply for an extension to the debate. The debate has been very lively—livelier in some parts than others—but it keeps us on our toes. This is a subject beyond political banter and I hope our hearts beat in concert to try to do something about it.
I have a few closing remarks. I think it is work in progress on apprenticeships. We have more homework to do and we had better get on and do it. As the noble Lord, Lord McKenzie, said, we have got over to people the value of apprenticeships, and we need to make sure that those apprenticeships are valuable to the people who will undertake them.
There is nothing more to say on careers advice and guidance, but we are taking too long to get this right so we must re-treble our efforts and make sure that young people get the best labour market careers advice and employment support to ensure they can fulfil their potential.
The points about the rebalancing of higher and vocational education were well made by everybody, and I thank the noble Baroness, Lady Sharp, for her contribution. Her knowledge and experience is well respected and there is much more that we will be doing.
I have got the message on early intervention and where it starts. I really have got that, thank you.
I thank the noble Baroness, Lady Jenkin, for drawing our attention to older workers. They have a great contribution to make. We have got to keep them in the workforce and they act as good role models to younger employees and sometimes they become their “parent” in a roundabout way. I completely agree that it is competence rather than age and I hope that this House at some time in the future will remember that, too.
On education, I became a governor of an academy so that I really understood them and I hoped I could make a contribution. Teachers are to be complimented. They do great jobs. Of course, like in every workforce, they could do better in some respects but they are terrific. I concur that the noble Lords, Lord Fink and Lord Harris, and others have made a great investment in academies and our country will only be the richer for that.
The noble Baroness, Lady Newlove, has paid a high price, but her girls are a credit to her. She gets all the grief—believe you me—because they are teenagers but they are doing well. I think the next debate should be the rehabilitation of victims. We must do that.
I say to the noble Baroness, Lady Fookes, who has changed her place in the Chamber, that horticulture jobs are valuable. They need doing and there are a lot of people—one in this Chamber in particular—who spend a lot of time in horticultural establishments purchasing things for their garden. Horticulture is a great contributor to the economy.
Noble Lords have seen the value of coaches first hand. If any noble Lord wants to go and see a coach, see me and I will fix it up. There was nothing half-baked about the contribution, I must say.
The noble Lord, Lord Blencathra, mentioned the importance of the economy. If the economy is strong then employers will create jobs. It is a no-brainer. Of course, there is also the importance of the family in that particular journey.
I am really grateful for the offer of a meeting. Let me know when it is—if it is tomorrow, I will be there. I will go away now and prepare for that.
I received a phone call at 6.50 am today from my niece’s six-year old son, who was crying on the telephone. He has a massive eye infection, but he was not crying at the thought of going to the doctor but because he could not go to school and the people in his class might learn something that he missed and he might feel at some disadvantage. I hope that we may create that desire to learn in our education and employment system.
I thank all noble Lords for their contributions.