English Devolution and Community Empowerment Bill

Baroness Taylor of Stevenage Excerpts

Monday 2nd February 2026 Grand Committee

I used to measure the impact of what we were doing. It first started when my boss said to me, “Debbie, I’m getting a company in. I’m going to get them to look at all your data, and I’m just going to see how effective you are to make sure that what you say is true”. My heart was going, I tell you. When the company finished its work, it found that 76% of the young people we got into work were still there a year later; if they were there a year later, they would be there the next year and the year after, so it does work. I hope to see some metrics deployed in the measurement of what we are doing to give us encouragement, and I thank the noble Lord, Lord Ravensdale, for bringing this to the attention of the Committee.

[The Parliamentary Under-Secretary of State, Ministry of Housing, Communities and Local Government (Baroness Taylor of Stevenage) (Lab)]

My Lords, before I speak to the amendments before us, I thank my noble friend Lord Hendy and the opposition spokespeople for dealing with the transport groups. They are very technical areas, and I was very grateful to them and the noble Baroness, Lady Pidgeon, for their contributions. I thank the noble Lord, Lord Ravensdale, for amendments relating to social mobility, socioeconomic disadvantage, local growth plans, skills, education and health determinants.

Economic growth and breaking down the barriers to opportunity are two of the driving missions of this Government. Amendments 137 and 143 go right to the heart of that work. They recognise that supporting business, promoting innovation and increasing productivity are central to growing the economy and, by extension, to addressing socioeconomic disadvantage. This is a core purpose of local growth plans, increasing productivity and attracting investment to grow local economies for the benefit of those living and working there.

We are already seeing local growth plans emerge that recognise the importance of tackling ill health, youth unemployment and child poverty very much as part of growing the economy, and I really welcome that. It is because mayoral combined authorities and mayoral combined county authorities understand the challenges affecting their areas and how to solve them. They do not need the Government to require the detail of this through primary legislation. Instead, we have set an expectation via our guidance on the contents of local growth plans, which specifies that they should set out an ambitious long-term vision for making the region they cover more productive. That includes by identifying actions across a range of areas aligned to their competences and powers, including housing, planning, skills and transport. Mayoral combined and combined county authorities are encouraged to build on this to ensure that their plan properly identifies and addresses local needs and opportunities, and that they respond with the right solutions for their area.

I completely understand the impulse of noble Lords to prescribe everything in the Bill—it has happened in every Bill that I have taken part in, in this House—but it must be up to mayoral combined and combined county authorities to determine what is best. Otherwise, we risk being too prescriptive and stepping back from the spirit of devolution, which is the only way we are really going to solve some of these embedded challenges.

Local growth plans should provide an overarching and guiding strategic framework for growth in a region. Other, more focused plans will then provide the detail on specific areas such as transport and skills, with those plans developed in consultation with local communities and other organisations. Our published guidance already expects mayoral combined authorities and mayoral combined county authorities to engage a range of stakeholders when developing and delivering their plan, and we know that they are already doing so ahead of the requirement to have regard to that guidance following the passage of the Bill. It is our view that clear guidance is proportionate in this case and that the noble Lord’s amendments are not necessary.

I turn to the noble Lord’s amendments that would seek to require strategic authorities to consult with the Social Mobility Commission on how to collect evidence of social mobility outcomes as a result of devolution arrangements, and to require the Secretary of State to publish an annual report on action taken by strategic authorities. We fully appreciate the intent of these amendments and recognise that the policies and interventions that strategic authorities deliver have a significant impact on the public and the opportunities available to them. Central and local government will continue to work together to ensure that outcomes delivered by strategic authorities align with national and local priorities, including the design and delivery of effective and equitable local services.

Additionally, the newly formed Mayoral Data Council will join up senior local data leaders with central government decision-making on data issues that affect them. Strategic authorities under the public sector equality duty are already required to work towards advancing the equality of opportunity between people who share a protected characteristic and those who do not. Adding a statutory duty is unnecessary and risks creating an additional administrative burden on strategic authorities that could potentially distract them from the very delivery that we all want to see.

I turn to the noble Lord’s amendments that seek to embed social mobility principles in the Bill’s provisions relating to skills and education. Strategic authorities already consider a wide range of local factors, including provision in areas of deprivation, how their provision aligns to local growth objectives and how to tackle the challenge of people not in employment, education or training. This local insight is their great strength, and I think the noble Lord would agree with that. Schedule 11 to the Bill, which states that strategic authorities will be under a duty to secure appropriate adult education provision in their areas, already allows them to secure the provision prescribed in Amendment 123 and indeed to consider wider objectives as needed.

Local skills improvement plans provide an ongoing mechanism through which local employers, strategic and local authorities, providers and other stakeholders come together and identify skills needs and issues. Local growth plans, which set out long-term opportunities for economic growth in a place, are led by mayoral strategic authorities and will inform the development of local skills improvement plans and engagement with employers on their specific skills needs. The existing framework delivers on the intent of the noble Lord’s amendment and we therefore believe that it is unnecessary.

As set out in the Post-16 Education and Skills White Paper, reducing the number of young people aged 16 to 24 who are not in employment, education or training is a national top priority—I agree with all that noble Lords said about that. In all areas of England, mayoral strategic authorities have been asked to establish partnerships as part of developing their local Get Britain Working plans. This will bring together local government, employer representatives, education and skills providers, Jobcentre Plus and the NHS. These partnerships will consider a range of local labour market challenges, including youth unemployment, and how they can work collectively to tackle them.

The story that the noble Baroness, Lady Stedman-Scott, told us reminded me of a youth training scheme run by our local fire service in Hertfordshire. They introduced us to a young man whom they had had some difficulties with, in the early days of the scheme, about his approach to whether he turned up on time. He had started to make some progress but, when he did not turn up on the second or third Friday, they were worried that he had slipped back again. What had actually happened was that his bus had not turned up, so he turned up about half an hour late, having walked the seven miles from Hitchin to Stevenage because he was so keen to carry on participating in the scheme. He eventually passed the scheme with flying colours, so we must never make assumptions. The scheme really worked for him.

Strategic authorities have a key role to play in tackling the NEET rate, which is why we are delivering eight strategic authority-led youth guarantee trailblazers. These are testing how best to join up services and offer targeted support to young people who are NEET, or at risk of becoming NEET, through those localised approaches. We fear that putting a rigid statutory requirement in place at this time could stifle the innovative, locally tailored solutions that arise during the piloting phase, reducing local labour market flexibility and limiting our opportunity to learn from these pilots and innovations.

As set out in the skills White Paper, we will update local oversight and accountability for young people who are NEET, with an enhanced role for strategic authorities. This means working in partnership with local areas to explore how to bring strategic authorities into the statutory duties that local authorities already have. These duties require them to support young people to remain in education until their 18th birthday by identifying and tracking young people not in education or training, involving partnership with local education providers. This Government are already taking steps to empower strategic authorities and leverage their local knowledge and relationships to reduce local youth unemployment, so we believe that Amendment 122 is not necessary.

On Amendment 124, further education colleges are a critical stakeholder with which strategic authorities already have close relationships—I know the key role they play in my area. Further education colleges that provide post-16 technical education and training are already under a statutory duty to work with employer representative bodies to develop the local skills improvement plan. The views of FE colleges and other providers are readily reflected. It is also the case that strategic authorities can draw insight on skills needs from a number of sources, including employers, local jobcentres and Skills England. We want strategic authorities to plan adult education provision that is right for their areas, drawing on stakeholders and insight that can inform their decision-making. This Bill and the existing legislative framework, including local skills improvement plans, already put the structures in place for that. Therefore, we believe that Amendment 124 is not necessary.

On Amendment 125, statutory entitlements to free courses of study are set out in the legislation and are long-standing, broad and universal to each strategic authority to ensure consistency of access. Learners who are eligible for statutory entitlements to free minimum qualifications will have access to a free course of study irrespective of whether they are from an area of high deprivation or are experiencing long-term unemployment. Amendment 125 would not be appropriate, as we do not need to qualify access to statutory entitlements and believe that eligible learners should have free literacy, numeracy, IT and level 2 qualifications to ensure that they have the skills for employment and everyday life.

This Government are on a mission to create an apprenticeship and skills system that drives growth and leaves no place or person behind, and are committed to working with mayoral strategic authorities to achieve this. However, it would be extremely complex to devolve the levy funding to local areas, as it would be hard to administer and make it more difficult for employers that operate across regional boundaries to access funding. Employers hire apprentices, choose their training providers and direct funding to meet their skills needs, with funding coming directly from the national apprenticeship budget to meet employer demand where it arises. Devolving the levy is unlikely to be achievable without significantly constraining employer choice and adding complexity for the large number of employers operating across local boundaries. Therefore, the Government have no plans to devolve growth and skills levy funding and see no merit in publishing a report of this kind.

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I hope we will find the Government prepared to listen, consider and change their policies over what is now 18 months of effective failure, because the level of youth unemployment has continued to rise. We should be grateful to the noble Lord, Lord Ravensdale, and the noble Baroness, Lady Stedman-Scott, but I hope the Government are in listening mode on this issue so that, when we come back to this on Report, it may be possible to unify all parts of the House in coming forward with a set of policies that will encourage all parts of England to reduce the level of youth unemployment.

[Baroness Taylor of Stevenage (Lab)]

My Lords, I thank the noble Baroness, Lady Stedman-Scott, for her amendments on welfare and work. I also thank her for her service in this area; I am sorry that she is not in her place.

Amendment 122A is unnecessary because the Bill and the English devolution accountability framework already ensure that there is discretion for strategic authorities when using their adult skills funding and that there is accountability for their delivery of skills outcomes. The Bill already places a duty on strategic authorities to secure the provision of education or training appropriate to their area, which means they will fund such provision accordingly.

Strategic authorities use adult skills funding to meet the growth and employment needs of their local areas and to ensure that they meet their duty to offer statutory entitlements for eligible learners in their region. They are also subject to strong and wide-ranging transparency and accountability requirements. Under the English devolution accountability framework, strategic authorities should publish annual assurance reports on their adult skills delivery and undertake a stocktake with Skills England. This amendment is therefore not needed. We already have an approach that ensures local flexibility combined with transparency and accountability for adult skills delivery, while empowering strategic authorities to make choices that benefit learners and drive economic growth.

Similarly, Amendments 124A and 124B are unnecessary. The existing legislative framework has the right balance, providing support and guidance to strategic authorities while allowing them to shape provision that is right for their area. Strategic authorities have flexibility in the use of their adult skills funding, and can use it to support employment and growth in their areas and to link up to other employability-focused programmes. Strategic authorities already consider a wide range of local factors when planning and securing adult education provision, including how adult provision will lead to sustained employment outcomes.

Strategic authorities will also draw on their Get Britain Working plans, which will focus on reducing unemployment in their areas. As I have set out, the Bill provides for strategic authorities to secure education for adults across the skills system. This could include the Government’s free courses for jobs and skills training camps, which are designed specifically to provide pathways into employment. We want strategic authorities to secure adult education to meet local labour market needs. However, these amendments are of no further benefit in relation to this objective.

Finally, let me respond to Amendments 196EA and 196EB on youth employment. Supporting young people into education, employment and training is a top priority for this Government. The Secretary of State already has powers to devolve funding to strategic authorities—and they are using them. Almost 1 million young people are not in education, employment or training. That is why the Government have recently announced more than £1.5 billion of investment in young people through the youth guarantee and the growth and skills levy. This investment will provide young people with support to find a job, training or an apprenticeship, and involves close partnerships between the Government, strategic authorities and local authorities.

As set out in the skills White Paper, we will update local oversight and accountability for young people who are not in education, employment or training, with an enhanced role for strategic authorities. This means working in partnership with local areas to explore how to bring strategic authorities into the statutory duties that local authorities already have. As I set out in the discussion on the previous group, these duties require them to support young people to remain in education or training until their 18th birthday, including identifying and tracking those who are not in education or training, as well as working in partnership with local education providers to help them to re-engage with the system.

Strategic authorities are also central to wider local planning. All areas of England, including mayoral strategic authorities, have been asked to establish partnerships to bring together local government, employers, education and skills providers, Jobcentre Plus and the NHS as part of the Get Britain Working plans. Furthermore, as part of the local skills improvement plan process, strategic authorities, businesses and providers are already working together to consider how to boost skills, which will help address youth unemployment.

Strategic authorities already have powers to deliver services to support the youth guarantee and deliver youth employment programmes and pilots. The Secretary of State already has the powers to fund strategic authorities to deliver these services, either with or without ring-fences. Using these powers, the Government have been able to fund and enable eight mayoral strategic authorities to develop and deliver the youth guarantee trailblazers I mentioned earlier; they are receiving two years of funding to test those innovative approaches.

In December 2025, we also announced £140 million to pilot the new approaches with mayoral strategic authorities, which I mentioned during the discussion on the previous group. An evaluation, commissioned by the Government and launched in January 2026, will provide evidence to inform the future roles of strategic and local authorities in supporting the youth guarantee. As noble Lords can see, the Government are already taking steps to empower strategic authorities to deliver youth employment support and to determine their future role in the youth guarantee. Therefore, these amendments are not appropriate while that work is ongoing.

With these reassurances, I hope that the noble Baroness will feel able to withdraw the amendment.

[Baroness Scott of Bybrook (Con)]

I thank all those who have contributed to this debate. These issues are close to the heart of my noble friend Lady Stedman-Scott. I am grateful to the Minister for her reply and appreciate the funding that the Government are putting into this important issue. We will consider carefully what the Minister has said, and we may well return to her with some specific questions to ensure that we collectively get this right, both nationally and locally.

[Baroness Taylor of Stevenage (Lab)]

I am very happy to meet with the noble Baroness, Lady Stedman-Scott, in between now and Report to take her through some of the work that has been happening in more detail than we can in Committee. Perhaps the noble Baroness could take that back to her.

[Baroness Scott of Bybrook (Con)]

My noble friend would be delighted to meet the Minister and I will certainly tell her.

I think we still believe that the Government could go further and perhaps take the opportunities that the Bill provides to do that. I remain convinced that, with the right focus and the appropriate safeguards, the Bill can do more to address the realities of unemployment and skills mismatch on the ground. I know that my noble friend Lady Stedman-Scott established a number of successful pilots and that they worked, and I think that it would be useful to also discuss that with the Minister.

I therefore hope that the Government will reflect carefully on the points that were raised today as the Bill continues its passage. Decisions on adult education and employability programmes are best taken as close to the local labour markets as possible. Each labour market is different, each region distinct and each opportunity shaped by local needs. If we are serious about improving outcomes, our approach must reflect that reality. But at this point I wish, on behalf of my noble friend Lady Stedman-Scott, to withdraw her amendment.