Geraint Davies
Main Page: Geraint Davies (Independent - Swansea West)Department Debates - View all Geraint Davies's debates with the HM Treasury
Social Mobility and the Economy
Geraint Davies Excerpts(6 years ago)
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Geraint Davies (in the Chair)
May I say at the outset that there are 11 speakers, so I will impose a time limit? I call Justine Greening to move the motion.
Justine Greening (Putney) (Con)
I beg to move,
That this House has considered social mobility and the economy.
Most of our debates in this place are about problems, but today, I want to have a debate about solutions. Improving our poor social mobility is this country’s biggest challenge, and our biggest opportunity. Britain will not truly succeed until it becomes a country where there is equality of opportunity for the first time.
Like other hon. Members present, I did not grow up with advantage or privilege. I grew up in Rotherham, south Yorkshire, where my father and grandfather worked in the steel industry. My father would probably have benefited from the national minimum wage being in place and he spent time unemployed, so I know what it is like to grow up in a family on benefits. I am sure that many young people who are starting out today feel the same as I did: I never wanted to have extra advantages over my peers; I just wanted to have the same opportunities as everyone else—a level playing field.
Most people in our county are not connected. They do not necessarily have someone who they can ask for advice on careers when they need it. They do not have someone to make the right introductions to get them work experience. When they apply for jobs, they do not have anyone who knows x, y or z in that company to put in a good word for them. They do not have the contacts to help them to get work experience in the kinds of companies that they might be interested in working for, so they tend not to get as much experience and do not do as well when they apply for jobs. Because of that, far too much of our nation’s talent goes to waste, which is totally unacceptable and has to change. There is still such a thing as a class ceiling for most people in Britain, and we have to get rid of it.
A year from now, Britain will be on the verge of Brexit. The debate has divided our country, but the time is rapidly approaching when we will need to come together behind some sort of common vision of what kind of country we want Britain to be post-Brexit. That common vision should be of finally creating a Britain that has equality of opportunity for the first time. Brexit must be a moment for change when we smash that class ceiling on opportunity once and for all. In a knowledge-based, global economy, it has never been more important to use all our nation’s talent to the max.
I will focus on social mobility and the economy, and the huge role that businesses can play in driving the economic benefits of social mobility. The social mobility dividend for our economy and our people is significant.
In July, the Sutton Trust published its modelling of the link between stronger social mobility and productivity. The research looked specifically at European countries and found that, if the UK simply improved its performance on social mobility to match the western European average, the benefit to our economy would be an improved annual GDP of between 2.1% and 9%. That is an annual benefit to our economy of between £39 billion to £179 billion, which is the equivalent of each household being £590 to £2,620 better off. We talk about minimising tariffs and barriers to have strong trade, but talent is no different. We know the benefits of free trade, and a free market in talent is just as, or perhaps even more, important.
Education has a huge role to play. The social mobility action plan that I launched before Christmas sets out a clear agenda for the Department for Education to strongly tilt its strategy to lift up the educational prospects of children being left behind. Business has a key role to play too.
Several hon. Members rose—
Geraint Davies (in the Chair)
Order. I am going to need to immediately impose a time limit of four minutes, which I may need to reduce if there are interventions. I call Sarah Champion to set an example by speaking for four minutes or less.
Sarah Champion (Rotherham) (Lab)
It is a pleasure to serve under your chairmanship, Mr Davies. It is the greatest pleasure to follow the right hon. Member for Putney (Justine Greening), who is a Rotherham girl. She lives and breathes exactly what she is outlining. Her family background is very common in Rotherham. The fact that she has achieved such incredible heights is genuinely an inspiration to my constituents. It is exactly what we are looking to do. I fully support her social mobility pledge. I urge her to come back to Rotherham so that we can work together to make it happen.
I am particularly proud that a woman is launching the social mobility pledge, and a great deal is owed to the right hon. Lady for her work on this. We have now got cracks in the glass ceiling. Indeed, as she rightly said—I am going to steal her line—a ton of bricks is now falling on the class ceiling. That is something we have to address as a country, not least because this week the Children’s Commissioner highlighted the huge gaps that exist between the poorest children in the north and the poorest in the south. Her report found that a child on free school meals living in Hackney is three times more likely to go to university than a child on free school meals from Hartlepool. London children on free school meals are 40% more likely to achieve good maths and English GSCEs than children in the north. Rotherham, by contrast, ranks 188th out of 324 local authority areas for social mobility and has the seventh highest secondary school exclusion rates in the country. The Children’s Commissioner found that too many children are dropping out of education and training before 18, with several northern cities having more than 10% of children missing out on crucial parts of their education.
The all-party parliamentary group on social mobility recognised that social mobility is improved through education and high-quality teaching, yet its former chair now leads a Department that is cutting school funding by 4.6% between 2015 and 2019. Across England, more than half a million primary school children are in super-sized classes. Between 2014-15 and 2016-17, class sizes in Rotherham rose in more than half of our schools and the pupil to teacher ratio rose in two thirds. Some 57% of schools have cut their staff. While the Government talk of a fairer funding formula, schools in Rotherham will have suffered cuts of nearly £3 million between 2015-16 and 2019-20. I fail to understand how that can help our children reach their potential.
Another issue that we cannot ignore is the economic environment that children live in. I am pleased that the Children’s Commissioner recognised that northern children are proud and optimistic, but her report found that many lacked confidence that economic regeneration will mean more job opportunities for them.
Rotherham ranks 119th out of 650 constituencies on the highest number of young people claiming jobseeker’s allowance and universal credit. According to the Office for National Statistics, productivity growth nationally over the past 10 years was the weakest since modern records began. We have some fantastic businesses in Britain. As the right hon. Lady knows, we have fantastic businesses in Rotherham, but there is a serious skills shortage, as she outlined. A recent survey from the British Chambers of Commerce found that skills shortages were reaching critical levels in the last quarter of 2017. How will we address the gap and the lack of productivity if we are not training our young people in the skills needed for a modern economy?
In Rotherham, many businesses are in manufacturing. They recognise—
Geraint Davies (in the Chair)
Order. I invite Gillian Keegan to try to get below four minutes.
Gillian Keegan (Chichester) (Con)
It is a pleasure to serve under your chairmanship, Mr Davies. I thank my right hon. Friend the Member for Putney (Justine Greening) for securing this debate.
Everybody should be given the opportunity to make the most of their life, irrespective of where they were born. It is equality of opportunity that matters. The Social Mobility Commission report published last year identified hotspots and coldspots, which were areas with higher and lower levels of social mobility. I never considered Knowsley, where I grew up, to be a particularly socially mobile region, but it ranks reasonably well at 171st out of the 325 local authorities in England. What may come as a surprise is that my constituency of Chichester is 287th. Chichester is not unique in that respect, as a quarter of coastal authorities were classified as coldspots, and only 6% were identified as hotspots.
The problems are clear and have been for generations. Tackling the issue is complex, but incredibly important, not only for the young people who gain an opportunity to change their circumstances, but for the economy. In 2016, the Sutton Trust estimated that just reaching Europe’s social mobility average would equate to an annual increase to GDP of 2%. It is key that we bring out people’s talents at all ages. Almost every one of my classmates in my failing comprehensive school in Knowsley had talent and the potential to achieve whatever they put their minds to. Some of us beat the odds despite our school, but others did not get that opportunity. They were let down in school and were not offered enough support or alternative routes into work when they left at just 16. From attending a failing comprehensive school every day for five years, I know there was as much talent there as on the playing fields of Eton.
My social mobility journey came in the form of an apprenticeship that I started at 16, so I know from personal experience the benefits they can provide. It gave me seven years of work experience, a degree and no student debt—all I needed to build a career. It was a business that changed my life, not school. More than 3.4 million young people have started apprenticeships since 2010. Although that is a significant achievement, we must work to ensure that they are high-quality training programmes. I am pleased that we are seeing a greater emphasis on quality, with advanced and higher level apprenticeships up by 35% last year as compared with the previous year.
Colleges, universities and business are developing successful, collaborative relationships. Chichester College has seen more than 25,000 apprentices pass through its doors, and its success continues with increased participation year on year. Some 94% of level 2 apprentices continue into employment or further education. The college has put employability at the heart of its curriculum, and it is working with around 5,000 businesses to do that. At the University of Chichester, 34% of its largely regional intake are from the lowest household income groups, and more than half are the first generation in their family to participate in higher education. The university has increased its numbers and is reaching out to the latent local marketplace.
It is important to remember that even if all those opportunities pass someone by, it is never too late for them to learn and improve their opportunities in life. There are such programmes as “Get into”, which is run by the Prince’s Trust; the “Choose Work” programme that Chichester District Council runs, which is designed to help young people get work experience; and the brilliant work of Business in the Community, which works to give young people CV and interview training and work experience. Many businesses are now involved in Business in the Community.
Different areas have always varied in social mobility outcomes. My life has been what some might call a social mobility success story. The solution to better outcomes for young people is multi-faceted, but we should tap into talent wherever it is to satisfy growing demand and bolster our economy.
David Evennett (Bexleyheath and Crayford) (Con)
It is a great pleasure to be able to contribute to this debate today. I congratulate my right hon. Friend the Member for Putney (Justine Greening) on her excellent speech and on opening the debate on this important topic, which I know she is passionate about. I was honoured to be able to work closely with her as her Whip when she was Secretary of State for Education. I particularly welcome her speech, her approach and the support she has already received from the business sector. I welcome and endorse strongly her social mobility pledge. Partnership, access to work experience, a level playing field and of course open recruiting are vital if we are to go forward and utilise the talent that we have across the whole country.
As a former teacher and lecturer, education and social mobility are particular passions of mine and are areas in which I have always tried to be involved. We are discussing social mobility in Britain to ultimately ensure that everyone has the opportunity to build a good life for themselves, regardless of their family background or the area of the country that they come from. In a socially mobile society, every individual should have a fair chance of reaching their full potential. Social mobility is not only good from a moral perspective, but from an economic perspective. By ensuring that talent is harvested across the social spectrum, we have the opportunity to boost productivity and GDP, more of which later.
I come from a family that grew up in the east end of London. It was education, opportunity, good teachers, family encouragement and also some businesses that allowed me work experience that gave me an appetite to develop. I grew up in Essex, but my family background was in Bow, where opportunities were very limited except through education, so we need to look across the country to make sure that opportunities are greater than currently exist in some places.
I actually enjoyed work experience because it meant I met other people and did other things. I learnt and got into the habit of getting up and getting there on time and participating as far as I could.
The Government have made considerable progress on education and opportunities, with 1.9 million more children now in good or outstanding schools. That is a real achievement and we should not minimise that. We should be proud of what has been done, but we need to do more. Local and central Government cannot do it all. It has to be businesses and communities—all of us—contributing and participating.
We are rather fortunate in my borough of Bexley. We are a hotspot when it comes to these things. We achieve things and I am proud of the opportunities that businesses, the council and Government policies have encouraged, which has resulted in a very good situation, but it is not enough. Even within Bexley there are children who underachieve and do not have ambition. I have always fought hard against people who say, “What can you expect? They come from that background in more deprived parts of the borough.” That is absolute rubbish. Everyone has the potential wherever they come from, and we must realise it and get opportunities for every individual. I had a longer speech, but unfortunately I have not got time to do it.
The Government, of course, have a key role, but when we look at the figures, the “State of the Nation 2017: Social Mobility in Great Britain” report found that only 6% of doctors and 12% of chief executives were from working class origins. More has to be done. In conclusion, we need a plan, and my right hon. Friend the Member for Putney has offered us a good plan that we can all sign up to. It is not party political; it is something for the benefit of this country and I endorse it strongly.
Geraint Davies (in the Chair)
Because of the discipline and rigour of Members, I am now able to raise the limit to five minutes. Somebody has kindly pulled out of the debate.