Lifetime Skills Guarantee and Post-16 Education

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.

Next, I turn to funding. Additional investment in further and adult education is obviously welcome, which is why we on the Labour Benches have spent years advocating it, while year after year the Conservative party cut it. The funding that the Secretary of State has announced today will not even reverse the damage, let alone mean increased investment. Funding is supposed to be available for every adult who is not qualified to A-level or equivalent. There are 9 million of those people in the country. Can the Secretary of State guarantee that every single adult not qualified to level 3 who wants to access this support will be able to do so? His £2.5 billion amounts to less than £280 for each of these learners. Does he really think that is sufficient for an adult learner to get the necessary skills and qualifications? He has stated that a full level 3 qualification would be made available for adults aged over 23 for courses that are shown to be valued by employers. How are the Government determining that? Will he commit to a date to publish these details? I think that he said that T-levels will be included. Will he confirm that?

What conversations has the right hon. Gentleman had with the devolved authorities and Metro mayors about these proposals? Will metropolitan combined authorities that have their adult education budget devolved be able to set the eligibility criteria for this spending, and is the £8 million for the boot camps genuinely new money? He talks about increasing apprenticeship opportunities, but since the Government introduced the apprenticeship levy, numbers have been consistently down, especially at lower levels. Can he provide more detail on the support available for small and medium-sized enterprises and non-levy payers?

Finally, I want to emphasise the scale and urgency of what is needed. The Government rightly found billions of pounds for the job retention scheme, but when it comes to retraining, their ambitions do not stretch further than last year’s manifesto, as though the global pandemic has had no impact on the need for workers to get new skills and new jobs. Labour called for the Government to integrate training into the job support scheme to allow workers on reduced hours to improve their skills. Why have the Government failed to do that?

The Office for Budget Responsibility’s central projection is for unemployment to reach 12% before the end of the year. That is when the need for skills and retraining will be most acute, so why is this package available only from April next year? Will courses starting under the new guarantee begin in April or follow the usual academic calendar? Why has the procurement of the contract for the 30,000 traineeships announced in July not yet even begun?

Labour has spent years calling for investment in the skills of working people and those seeking work. They are, and always have been, the greatest asset in our economy. It is only by making the most of all their potential that we can truly recover from the effects of this terrible pandemic and achieve a lasting and shared prosperity. We now face a crisis of unemployment that could be the worst in my lifetime. It is vital that the Government support those at risk of losing their jobs and that they support them in finding new careers and opportunities. The Government must get this right, and they have one chance to do so. I implore Ministers to listen to our concerns. The task is urgent, and it is essential.