With permission, Mr Deputy Speaker, I would like to make a statement regarding the lifetime skills guarantee and post-16 education. Ever since I was appointed Education Secretary, I have been determined to raise the status of further, technical and vocational education. In a speech in July, I set out that, for decades, this sector has been overlooked and underserved, playing second fiddle to higher education. All too often, it has not given the young people and adults of this country the skills that businesses are crying out for, or enabled them to pursue the careers they dreamed of.
What we are determined to do, and what we must do, is give people the opportunity to retrain and upskill, so that if one door closes, they will have the key to open others. This Government stand for empowering everyone in this country, wherever they live. We stand for the forgotten 50% who do not go to university. We stand for those who find that their jobs no longer exist because technology has redefined industries overnight. We stand for young and old alike. Talent exists everywhere in this country. We have to ensure that we give it every opportunity to flourish, wherever people come from.
Two days ago, the Prime Minister outlined plans to bring closer alignment between further and higher education, to end the outdated distinction that one is better than the other and to offer world-class education after the age of 16 that is fit for the 21st century. We want every student who has the ability and the desire to go to university to do so, but we also want all young people to be given a real choice in what route they take.
We will introduce a lifetime skills guarantee that will help people to retrain and upskill. This will be the backbone of our covid recovery and will enable us to come back stronger and build back better. The measures will embed greater flexibility in the technical and vocational system to support not just young people but adults who need to retrain and upskill at any point in their working lives.
This is not merely a response to the pandemic. It is a continuation of our whole-hearted commitment to level up every inch of the country. Our reformed apprenticeships programme already provides a vital route for employers to meet their skills needs and for apprentices to learn and earn through high-quality training programmes and on-the-job experience. We are going to expand apprenticeships, making it easier for people to get a high-quality apprenticeship, and connect them to local employers who know what jobs their industry or community will need in the future.
We know that some employers will be nervous of taking on apprentices in the current climate. We are therefore making sure that we address some of the barriers that employers, especially small and medium-sized businesses, face in taking on apprentices—for example, by making it easier for larger employers to transfer their unused levy funds to smaller employers. Where apprentices have been made redundant as a result of the pandemic, we will ensure that more of them have the opportunity to continue their training. We have just begun the roll-out of T-levels, our new high-quality technical and vocational qualifications, and we have just welcomed the first intake of students, who are taking them in digital, education and childcare, and construction. One T-level is the equivalent of three A-levels, and these qualifications will open up further routes of study or employment for those who take them.
For those who have not achieved the equivalent of A-levels by the age of 18, the chances of proceeding to higher levels of qualifications are, as Philip Augar’s report put it, “virtually non-existent”. The lifetime skills guarantee will therefore fund technical courses equivalent to A-levels for adults, all of which teach skills that are in high demand in our economy. These will give anyone who left school without an A-level or its equivalent the qualifications they need to upskill or to change jobs, and give them a much better chance of finding work, achieving their dreams and doing what they want in life. We have already announced plans to sharpen the job focus and the quality of higher technical education. The process of getting employers to review and approve the best digital higher technical qualifications began last month. We want to invest in, and increase take-up of, these courses as they are developed to meet the skills needs of the economy.
Another key element of the lifetime skills guarantee is to open up funding and alternatives to degrees for students. We are going to transform the funding system so that people can get a loan just as easily for a higher technical course as they can for a university degree, and we will ensure that further education colleges have access to funding on the same terms as universities do. Everyone will be able to call on a flexible lifelong loan entitlement for four years of post-18 education, so any adult who wants or needs to retrain with high-level technical courses can do so, instead of being trapped in unemployment.
Our flexible lifelong learning allowance is going to enable people to study high-quality courses across further and higher education at a level and time that best suits their life. This will make it easier for people of all ages to do courses locally and to study and train part time to acquire the skills that can transform their lives. This new arrangement will provide finance for shorter-term studies, rather than people having to study in one, three or four-year blocks. People will be able to break up their study into segments, transfer credits between colleges and universities, and take on more part-time study. We will consult on this matter next year and bring forward legislation as necessary later in this Parliament.
We also want to transform our left-behind towns and regions, but we are not doing this just by investing more money in universities. We are going to do it by investing in local colleges. In the spring Budget, we announced an additional £1.5 billion to upgrade the further education college estate. The largest capital investment in the sector in a generation, it will enable colleges everywhere in England to have buildings and facilities that can deliver world-class tuition.
We are setting up 20 employer-led institutes of technology with capital funding for state-of-the-art equipment and facilities. They will be specialist institutions that are a unique collaboration between employers, colleges and universities. They will give businesses the skilled workforce that they need to drive growth and productivity and get more people into rewarding jobs. We have already committed £170 million to establishing the first 12 institutes and are making a further £120 million available for another eight in areas of the country currently without access to one. The competition for the next wave will open shortly.
We are going to inject £111 million in the largest ever expansion of traineeships, as well as an extra £32 million for recruiting extra careers advisers and £17 million for work academies in England. We are also providing £101 million to support school and college leavers to take high-value level 2 and level 3 courses.
Even before covid, the country faced a challenge in terms of providing the skills that the country needed. We are desperate for more skills in digital, and more electricians and technicians, right across the board, from healthcare to construction. Our productivity continues to lag behind that of our neighbours and competitors—Germany, France and the United States all produce more than 25% more per hour than we do. If we were to match German productivity, it would enable us to recoup billions of pounds that we need to recover from the economic effects of covid. Put another way, our productivity levels are only 4% higher than they were in 2008.
To bounce back from the pandemic, we will need a lot more people with the vital skills to drive productivity in our economy. Technology is one area with an ever-growing need for skills. This week, the Prime Minister announced that £8 million would support boot camps for digital skills in the west midlands, Liverpool, Lancashire, Leeds, the south-west, Derbyshire, Nottinghamshire and Manchester. The boot camps will be led by local employers, and from next year we hope to extend the delivery model to other areas and other sectors.
Greater productivity will drive our economy as we seek to build back better after covid. Businesses will be able to hire more, people will earn more and the quality of life will be much greater for more of our citizens. We will publish a White Paper later this year to take a holistic look at post-16 education and training. It will set out how we will continue to rebalance higher and further education, making sure that people understand the benefits of a greater technical education that offers them flexible ways to get the skills needed to progress and for our economy to prosper.
This is not a subject that just Conservative Members feel passionately about; it is something all Members feel incredibly passionately about. It is something that I think we all recognise is an area that has maybe been neglected a little bit too much in the past, and I hope that there is a sense of will across both sides to work together to make changes and to make improvements for the life chances of all.
I believe this dynamic programme of measures is not just about weathering the covid storm; these reforms will lay down a marker for the age. They will bring an end to the post-16 career lottery and decades of indifference to further education, and they will set up each and every member of society with the means to get a satisfying and well-paid job. I commend this statement to the House.