Social Mobility and the Economy Debate

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Department: HM Treasury

Social Mobility and the Economy

Deidre Brock Excerpts
Wednesday 28th March 2018

(6 years ago)

Westminster Hall
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Justine Greening Portrait Justine Greening
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I could not agree with my hon. Friend more. We face a simple but powerful problem: talent is spread evenly across the country, but opportunity is not. We need to ensure that we nurture that talent. I share his concern that educational attainment in Scotland looks like it is slipping backwards relative to the rest of the UK.

Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP)
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In response to the point made by the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont), it is important to point out that the UCAS website says that

“in Scotland, around one third of admissions are not processed through UCAS, so this provides only part of the picture of entry to higher education”.

That should be placed on the record and hon. Members should keep it in mind. It is important not to do down Scottish education, because there are many positive things about it. A higher percentage of our students who attend university have been to further education courses first, which is not picked up by the UCAS stats either.

Justine Greening Portrait Justine Greening
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A lot of hon. Members, particularly Conservative Members, would dispute those facts.

I recognise that there is an important debate to be had on higher education, but I want to focus my comments on business and the economy because business has a key role to play in improving social mobility in our country. Today, I am asking businesses large and small to commit to a universal social mobility pledge.

I hugely thank David Harrison and the Harrison Centre for Social Mobility for crucially supporting the work to enable us to launch the pledge today. The social mobility pledge is about three things: partnership between schools and businesses; businesses offering access to work experience or apprenticeships; and businesses having recruitment practices that are transparent and open, to promote a level playing field for talent.

First, partnering with schools is something that every single company, big or small, can do. It does not have to be hard. Some outstanding organisations are already providing a platform for action, and the resources needed for companies and businesses to make a start: Speakers for Schools; Inspiring the Future; the Careers and Enterprise Company; and the Prince’s Trust, which is setting up the e-mentor scheme, to name just a few. A lot of these organisations want to do more working through business, and they also want to do that in locations outside London and the south-east, where young people often have fewer opportunities. However, we need the fantastic employers in those areas to come forward to help make that happen.

Some great organisations are doing amazing work on access to work experience and apprenticeships, such as the Social Mobility Business Partnership, which can help. I also say a massive “thank you” to Barry Matthews, who set up the SMBP, for his help in working with me recently to help put together the social mobility pledge, so that companies large and small can get behind it. The Social Mobility Foundation does a huge amount of great work. Alongside that is the Sutton Trust, which I mentioned earlier and which has pioneered so many of the great initiatives that we have learned from and that companies can get involved in.

All companies can make a decision to open their doors and let young people who might not have any idea about that organisation come in and spend time learning about it, shadowing people and working on projects that give them a sense of what working in those careers is like.

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Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP)
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It is a pleasure to serve under your chairship, Mr Davies. I commend the right hon. Member for Putney (Justine Greening) for holding this debate on an important topic. One thing she said that rang true with me was that when she started out, she was not asking for special treatment, she just wanted the same opportunities as everyone else. That is such an important point to make. She spoke of the significant gains to the economy from nurturing its talent and the part that businesses have to play in that. That is crucial as well. She also set out some interesting proposals that might address that, along with her pledge, and made some points about blind and contextual CVs. As she said, we all have our part to play. She spoke of a million-piece jigsaw puzzle, which is a good image for us to take away. We should all play our part in trying to make social mobility possible for our young people and others throughout society.

The hon. Member for Rotherham (Sarah Champion) spoke of the importance of economic regeneration and the part that that plays in social mobility. She highlighted this Government’s cuts to school funding and talked of the gaps in productivity, and asked how training can be provided urgently to fill those gaps.

The hon. Member for Chichester (Gillian Keegan) shared her personal experiences with us. I always find such points very interesting. She spoke at length of the benefit of apprenticeships, but stressed the importance of them being high-value apprenticeships, which is another good point.

The hon. Member for Mitcham and Morden (Siobhain McDonagh) gave a passionate speech. She spoke of poor accommodation, poor schooling and the social systems that put children “far behind the starting line” before they even start. That is a very good point indeed. She spoke of the effect on young people’s confidence and feelings of security, and the longer term impact on them.

The right hon. Member for Bexleyheath and Crayford (David Evennett) also spoke of personal experiences and how the opportunities he received helped him along his way. He called for everyone to receive the same opportunities. He made one point that really startled me: that only 6% of doctors come from working-class backgrounds. That is an extraordinary and sobering point.

The hon. Member for Barnsley East (Stephanie Peacock) pointed out that less than 10% of young people in her constituency will go on to university. She suggested that what was needed was an inclusive economy with secure employment that allows for future planning.

My hon. Friend the Member for Glasgow East (David Linden), in a very fine speech, also talked about the importance of investing in apprenticeships and of fair pay for those apprenticeships, and about what he is doing personally as a politician with the internship scheme in his office. That is a great example to set. He also spoke of how social tourism can help in taking children away from their day-to-day environment and exposing them to different experiences.

In preparation for this debate, I turned to the “State of the Nation” report with interest, anticipating a thoroughly good read. The chapter on Scotland and Wales—neither nation got its own chapter, unfortunately— pointed out right at the start that the data available for Scotland does not measure social mobility, nor does the data for Wales. It seems that that is because successive Scottish Administrations have concentrated on alleviating poverty rather than measuring social mobility. Of course, alleviating poverty is not easy if the Government are hellbent on cutting social security payments and limiting the funds available to the most vulnerable members of society for ideological reasons. So we find ourselves discussing England and its problems again. The Social Mobility Commission’s “Time for change” report was clear that two decades of chasing higher social mobility have made no difference. Fervent ministerial announcements turn out not to deliver results—who would have thought it?

It is important to acknowledge that when the right hon. Member for Putney was in office she put in place a plan for addressing some educational inequalities, and it appears to have been well received. I admit that I have not read it because it concentrates on English education, but I was intrigued to see that it followed the Scottish Government down the path of addressing the attainment gap. That is a very good thing and is to be encouraged. I hope the Minister will indicate whether that plan will be implemented.

As many, many people tell us at great length, education is one of the great levellers. It is key to ensuring that talent rises and talented people are rewarded. How education is paid for is equally important. I was intrigued by the recent publication of evidence from Robert Plomin and Emily Smith-Woolley of King’s College, which showed that selective schools add next to no benefit to education. Funnily enough, the “Freakonomics” economist Steven Levitt found the same thing in Chicago.

The real inhibitor of social mobility in education comes when a young adult leaves tertiary education. The burden of student loans that graduates carry is substantial. I think I am correct in calculating that an English student studying in London for three years could leave with more than £60,000 of debt. For someone from a less affluent background who secures employment in a graduate entry-level job, that debt will stay with them for years.

Luke Graham Portrait Luke Graham
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Setting aside the discourtesy of not being mentioned in the hon. Lady’s summation—I am a Scottish Conservative colleague, but that is fine—on tuition fees, perhaps she can advise her colleagues in Edinburgh truly to lead the way and not charge tuition fees to English, Welsh and Irish students, who are great friends in our one United Kingdom.

Deidre Brock Portrait Deidre Brock
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That point has been made many times by the hon. Gentleman’s colleagues, and he has heard the very good reasons why that is not happening. He wants me to mention his contribution, but I find it difficult to get past the fact that, once again, the Scottish Tories talked down the Scottish education system. It is a constant disappointment that every time they mention Scottish education in this place, they do nothing but complain about the work that is being done there. Some fantastic work is going on in Scottish education at the moment, and it would be lovely to hear the Scottish Tories occasionally acknowledge that.

David Linden Portrait David Linden
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Does my hon. Friend share my bemusement about the fact that the Scottish Tories who are left in this debate—two thirds of them have left the Chamber—continue to harp on about investing in education, yet they rail against any increases in income tax for higher earners in Scotland? The options are either to increase income tax or to cut public spending, which would mean cuts to education. Does she agree that the position of the Conservative party in Scotland seems ridiculous?

Deidre Brock Portrait Deidre Brock
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Indeed. I agree with my hon. Friend. It is difficult to see exactly where the Scottish Tories are coming from on this—they are so confused.

For someone from a less affluent background who secures employment in a graduate entry-level job, that debt will stay with them for years. That is if they even manage to get what we once would have considered a graduate job. One in 20 graduates do not find any work at all, and the destinations of others is often less than optimal.

During the time that graduates carry that debt, they have less disposable income, their contribution to the economy is lessened, they find it more difficult to get on to the property ladder, decisions about starting a family are made more difficult, and their career decisions are limited. When they have children, that disadvantage is passed on, because they will not have advanced as far in life as they might have done if they did not have to carry that debt. It might be advisable for anyone who believes in improving social mobility to look at removing or alleviating that debt. Abolishing tuition fees would be a start.

To digress a little, I recommend that Members read the Joseph Rowntree Foundation’s paper on migration and social mobility from 2005, which suggests that immigration encourages social mobility in the UK. That is on top of what we know already.

Siobhain McDonagh Portrait Siobhain McDonagh
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If I could take the hon. Lady to my constituency, I would take her to homes where there is not a stick of furniture. In those homes are Tamil and African families, whose children are the doctors, lawyers and engineers of tomorrow. Social mobility is an issue of class and ethnicity. That is difficult for us to talk about, but in London we certainly need to talk about it.

Deidre Brock Portrait Deidre Brock
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I thank the hon. Lady for that interesting point about her constituency. We already know that immigration is a driver of the economy, and I would recommend a dose of extra immigration to any nation that wants to forge ahead.