Education Maintenance Allowance

Simon Hughes Excerpts

Wednesday 19th January 2011 Commons Chamber

[Andy Burnham]

My hon. Friend is exactly right—that is borne out by the experience of many colleges around the country. Some of those young people are at risk of ending up in the benefits system. Will not the Secretary of State’s policy lead to an increase in 16 to 17-year-olds seeking to claim jobseeker’s allowance in exceptional circumstances, or certainly to an increase in the numbers claiming JSA at 18? We know that every young person not in education, employment or training costs more than £55,000, according to research for the Audit Commission. The IFS has said that EMA successfully reduced the number of NEETs. Will it not therefore cost more to get rid of EMA?

Those costs will add up on many levels. As Paul Gregg at Bristol university has found, youth unemployment imposes a “wage scar” that can last for decades. He suggests that scrapping EMA fails to take account of other benefits, such as lower crime. That adds to the fears that through a combination of the Government’s policies, they are taking hope away from a whole generation.

I have set out the education case, the social mobility case and the economic case for keeping EMA, so let us now deal with the democratic case. The Prime Minister and the Secretary of State made personal promises to young people to keep EMA. Failing to honour them will do great damage to young people’s trust in Parliament and politics. From this Dispatch Box, the Secretary of State said:

“We are entirely in favour not only of the existence of the EMA but of the provisions in the Bill to secure an extension to it.”—[Official Report, 14 January 2008; Vol. 470, c. 669.]

Weeks before the general election, he said:

“Ed Balls keeps saying we are committed to scrapping the EMA. I have never said this. We won’t.”

On the back of these statements, does the Secretary of State not accept that young people embarking on a two-year course in September 2010 had a reasonable expectation that they would receive EMA support for the duration of their course, and that they could not have expected that the rug might be pulled from under them?

Beyond that, do the Government have a democratic mandate for this change? This time it is not the yellow Tories, but the real Tories who have broken their promises to young people. However, did any of the people who voted Lib Dem in May vote to curtail the life chances of the least well-off in this way? Unsurprisingly, the Government’s amendment shifts the ground on to deficit reduction, but if that is now the Government’s main argument why did the schools Minister, the hon. Member for Bognor Regis and Littlehampton, say to the House in a holding answer dated 7 June:

“The Government are committed to retaining the education maintenance allowance”?—[Official Report, 14 June 2010; Vol. 511, c. 307W.]

What changed after June? Did the full costs of the risky, unwanted reorganisation of the NHS become known, or did the Prime Minister choose his marriage tax break—costed before the election at £550 million, which is almost the same amount as EMA—as a priority above EMA? This confirms the growing impression that this is a shambolic ministerial team that changes its argument and does not know what it is doing.

The House may be forgiven for feeling a certain sense of déjà vu. This is a rushed decision with no warning, no consultation with those most affected, no evidence to support the decision, a growing backlash as the implications sink in, and a desperate rearguard action to justify it with dodgy statistics. If this is starting to sound familiar, it is because we have been here before with, for instance, Building Schools for the Future, school sport partnerships, and Bookstart. The fingerprints of this repeat offender are all over the scene of the crime. My question today to Liberal Democrat Members is this: how much longer are they prepared to carry the can in their constituencies for the disastrous decisions of this Secretary of State?

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

The right hon. Gentleman knows that I respect both his passion and his commitment on this issue, and he also knows that there is concern on both sides of the House about the policy to get rid of EMA without an adequate replacement. I repeat now what I have said privately, however: I will work with him, as I am working with the Secretary of State, to make sure, as far as I can, that the successor scheme achieves the objectives that are expressed in both the Opposition motion and the Government amendment. If together we can do that, then together we will improve the reputation of this House and politics in this country.

[Andy Burnham]

I respect the right hon. Gentleman’s intentions on this issue, but what he has just said will not be good enough for young people listening to this debate whose lives will be directly affected by the loss of EMA. A vague promise to work with the Secretary of State, with an unspecified amount of money to produce an unspecified result, is not going to do the job for them. The Lib Dems have to decide whether they want to keep the benefits of this successful scheme. Do they want the same numbers of young people in their constituencies to enter further education, or are they prepared to take a risk on this Secretary of State and this Tory-led Government?

Today’s debate provides the House with an opportunity to change the message that this Government are sending out to young people. They feel bewildered and angry that they have been singled out to bear the brunt of deficit reduction, and do not understand why they in particular are to face higher costs than generations before. In Newham, they ask why they are paying with their life chances for the mistakes of others a few miles away in the City of London. In Leigh, they cannot understand why the Government want to turn the clock back to an education system based on social class, with places at university going only to those with money and connections. Today, we can show that we are listening to them. We can make a stand for equality of opportunity in education, and stop these moves towards a more elitist education system. We can call a halt to this all-out attack on the aspirations of those who have least, and keep hope alive for the hundreds of thousands of young people who will be cut adrift if the Government get their way. We can tell all young people that we value them, and stop a Government who are gambling with their life chances. I commend this motion to the House.

--- Later in debate ---

[Mr Wright]

When I was a Minister in the Department for Children, Schools and Families, difficult decisions were made with regard to the £100 bonus that students received. We are prepared to talk about this. We want to ensure that we have the best possible system, but frankly, we cannot reduce a scheme of £600 million to around £50 million without a devastating impact on many communities, which was mentioned many times, including by my hon. Friends the Members for Halton (Derek Twigg) and for Huddersfield.

My hon. Friend the Member for West Ham (Lyn Brown) made a very passionate speech, as she is prone to do in this Chamber, mentioning Newham sixth-form college, which I have visited. My hon. Friend the Member for Wigan (Lisa Nandy), who has always stood up for her constituents and particularly for young people, highlighted the poverty of ambition that the Government’s decision produces. She also said that EMA is a something-for-something initiative, because students sign a contract and are bound by certain conditions in respect of attendance, punctuality and behaviour, which is an important point.

It was nice to see a number of my hon. Friends from the north-east. My hon. Friend the Member for Darlington (Mrs Chapman) mentioned Queen Elizabeth sixth-form college and Darlington college. In a former life, I audited those colleges, for my sins. My hon. Friend the Member for Gateshead told how in his part of the world—I think I audited Gateshead college too—EMA changed the landscape of ambition with regard to staying on, which my right hon. Friend the Member for Wythenshawe and Sale East (Paul Goggins) also mentioned.

My hon. Friend the Member for Leyton and Wanstead (John Cryer) mentioned the stance of the Liberal Democrats. Although they are taking over the Conservative party—as we heard from the Secretary of State—they have an important decision to make, as they did on tuition fees. The right hon. Member for Bermondsey and Old Southwark (Simon Hughes) said that he is willing to work to ensure that we have the best possible system and that it is adequately funded, as the Opposition are. The Government need to think again. He is quoted in The Times Educational Supplement as saying:

“If what Labour is saying is a call for the government to rethink its plans, I will support that. There’s some careful brokering to do.”

I absolutely agree with that, and I hope that he walks with us through the Lobby tonight.

[Simon Hughes]

The hon. Gentleman knows that I respect him and value his judgment. I have been working with his colleagues openly, and with Ministers, and I think that the Government’s amendment shows, as the Minister will say in a minute, that they are rethinking what they are doing, and that they are committed to trying to come up with a decent replacement. We will see whether we can deliver that, but I will try to do so, and I hope the shadow Minister will work with us.