Oral Answers to Questions

Gillian Keegan Excerpts

Monday 7th September 2020 Commons Chamber

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

What recent assessment he has made of the adequacy of further education college finances.

[The Parliamentary Under-Secretary of State for Education (Gillian Keegan)]

Colleges are facing financial uncertainty as a result of covid-19, and many face reductions in commercial income and uncertainty with apprenticeship starts. We have a team, including skilled finance professionals, who are working closely to support colleges, and we are also working with banks to ensure access to commercial lending where required. Since April, only five colleges have needed to access emergency funding.

[Gill Furniss]

Further education colleges provide lifelong learning, and they will be essential if we are to provide the levelling up agenda that the Prime Minister speaks so fondly of. However, coronavirus has left many with a black hole in their funding. We understand that it could be as much as £2 billion, and at the moment we are facing unprecedented demand. I fear that the Government do not understand the value of further education to the economy and the new skills we require in this country. FE colleges are flexible and adaptable, and they can help many young people who have been let down by this Government during the fiasco of the GCSE and A-level results. Will the Minister confirm today that she will look into this and provide the necessary funding, which, according to the Sixth Form Colleges Association, should be £4,760 per year for 16 to 17-year-olds and 18 year olds?

[Gillian Keegan]

Let me assure the hon. Lady that we absolutely have FE colleges at the very heart and centre. We are planning a big reform of the sector, and as somebody who went to FE college myself from the age of 16, I am absolutely passionate about this area. The colleges have done an amazing job in responding to covid-19 to support students throughout coronavirus. We continue to pay the grant funding and monthly payments for 2019-20, and will do so for 2020-21. We have also provided catch-up funding of £96 million for small group tutoring for those disadvantaged students who need it. On top of that, we have allocated £200 million to enable FE colleges to improve their buildings. We have a team of officials right now working with every college that needs that support. We are working with 40, and so far only five have needed financial assistance, but we will keep this under review.

[Mr Toby Perkins (Chesterfield) (Lab)]

The Government’s own commissioner for further education has warned that as many as 40 colleges are currently at risk of running out of cash, and despite the measures that the Minister has just spoken of, the Association of Colleges is warning of a £2 billion cash shortfall. We also know from the May report that the Government have inadequate mechanisms for identifying colleges in crisis, so the truth is that all those measures that the Minister speaks about simply are not enough. We need far greater action if we are going to see our colleges and their pupils and staff not being let down and left in financial crisis this autumn.

[Gillian Keegan]

I thank the hon. Gentleman for his question. Just so we are clear, we have provided grant funding to the FE sector, with more than £3 billion for a full year, and it gratefully received that. We have also announced an increase of funding of £400 million for 2020-21, an increase of 7% in overall funding. As he rightly said—and I said in answer to the earlier question—we are working with 40 colleges to structure their finances and helping them to get the advice and support they need. If they need emergency funding, as has been available, it will be available to them as well. We have a team of people working on this all the time, and the colleges accept that we are putting our arms around them to ensure that they get through this period.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

If he will make an assessment of the adequacy of testing, marking and examination systems.

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[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

What recent assessment he has made of trends in the number of unemployed people accessing adult education.

[The Parliamentary Under-Secretary of State for Education (Gillian Keegan)]

We understand that ensuring adults can access the training they need is vitally important and more important than ever. Latest figures show that between August 2019 and April 2020 over 195,000 learners, out of a total of 1,624,000 further education learners over 19, benefited from support for the unemployed. We are supporting people by investing £1.34 billion in 2020-21 in adult education and we are investing £2.5 billion over the course of the Parliament in the National Skills Fund.

[Seema Malhotra]

I thank the Minister for her response. The Centre for Ageing Better highlights that the number of older workers on unemployment-related benefits more than doubled to over 600,000 in July. The Minister will know that the core adult education budget is still frozen in cash terms at last year’s amount. Those who are recently unemployed or redundant and who want to access training or retraining to upskill often cannot afford it, or risk losing universal credit if they do so. She will, I am sure, not want that to sum up the Government’s approach to lifelong learning, so will she meet me, Ruskin College and West Thames College to hear about the issues we are facing in Hounslow, an aviation community, and to give people hope so that they, too, can have the opportunity to move forward and get back into work?

[Gillian Keegan]

We are, of course, absolutely committed to helping everybody who may find themselves looking for a job during this period through no fault of their own, to have access to training at any age, at any stage. That is why the Chancellor set out his plan for jobs to give businesses confidence to retain, hire and get careers back on track. That includes £1.6 billion of scale-up employment training support and apprenticeships. We are investing in high-quality careers provision, incentivising employers to hire new apprentices, tripling the number of sector-based work academy placements and doubling the number of work coaches. We are also investing £2.5 billion, which will be available in April 2021. I am sure the colleges will be very much looking forward to that. We are working to make sure that everyone has access to training. I am, of course, very happy to meet colleges and will be very happy to do so with the hon. Lady.

[Ms Karen Buck (Westminster North) (Lab)]

What steps he is taking to ensure the financial stability of early years providers during the covid-19 outbreak.