That this House do agree with the Commons in their Amendments 1 and 2.
1: Clause1, page 2, line 21, leave out “subsection (6)” and insert “subsections (6) and (6A)”
2: Clause1, page 2, line 32, at end insert—
“(6A) Where a specified area covers any of the area of a relevant authority, the Secretary of State may approve and publish a local skills improvement plan for the specified area only if satisfied that in the development of the plan due consideration was given to the views of the relevant authority.
For this purpose “relevant authority” means—
(a) a mayoral combined authority within the meaning of Part 6 of the Local Democracy, Economic Development and Construction Act 2009 (see section 107A(8) of that Act), or
(b) the Greater London Authority.”
My Lords, with the leave of the House, I beg to move that this House do agree with the Commons in their Amendments 1 and 2 en bloc. I will speak also to Amendments 3 to 6, 15 and 16 and associated Motions.
I am delighted to be back in the Chamber to discuss the Skills and Post-16 Education Bill. It is the Government’s belief—which I know is shared by your Lordships—that the skills sector has been forgotten for too long. This Bill represents a landmark moment for skills, bringing greater parity between further and higher education. Noble Lords will have seen the letter from my right honourable friend the Secretary of State for Education outlining the Lords amendments tabled, the key issues raised throughout the Bill’s passage and our position on each. I ask noble Lords to consider their positions alongside the concessionary amendments and policy changes that the Government have already announced since the Bill was in this House. These include delaying the removal of funding for technical educational qualifications that overlap with T-levels by a year and putting the role of mayoral combined authorities in the development of LSIPs into the Bill.
Furthermore, we tabled a number of amendments on Report in the Lords in response to issues raised by your Lordships in this House, including the criminalisation of cheating services and the requirement for LSIPs to consider skills needed for jobs relating to climate change and other environmental targets. I am delighted also to announce that we have tabled a further concession relating to the number of encounters for years 8 to 13 students with a range of providers of technical education, which I will come to in the third grouping.
First, I address Commons Amendments 1 to 6 and the amendments from the noble Lord, Lord Watson: Amendments 3A, 4A and 4B. We have been clear that local skills improvement plans should be developed by designated employer representative bodies working closely with employers, relevant providers, mayoral combined authorities, the Greater London Authority, local authorities and other local stakeholders.
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The Institute for Apprenticeships and Technical Education will continue to involve employers actively when making decisions about qualification approval, including through its route panels. These panels hold national sector expertise and expert knowledge of occupational standards which have portability across employers. Institute approval will in itself be a mark of quality and currency with business and industry; it ensures both employers and employees have the knowledge, skills and behaviours they need. The requirement for a public consultation and consent from employer representative bodies would duplicate existing good practice and introduce an unnecessary burden.
I next turn to Commons Amendment 16 and Amendment 16A. Throughout the discourse around the Government’s technical education reforms, there has been some misunderstanding about our intentions. I must make it clear that while A-levels and T-levels will be the best academic and technical options for most 16 to 19 year-olds, our reforms do not mean we are replacing all applied general qualifications, such as BTECs.
I can assure noble Lords that we recognise the need for other qualifications—ones that provide knowledge and skills in areas that are not covered by T-levels or not well-served by A-levels. We see a valuable role for such qualifications in the reformed landscape where there is a clear need for them and they meet new criteria for quality and necessity. Our reforms will ensure that every qualification is high quality and has a clear and distinct purpose. All learners should be able to attain the skills they need to succeed in higher education or progress into skilled employment.
We set out the types of qualifications we intend to fund, alongside A-levels and T-levels, in our response to the level 3 consultation in the summer. This includes large academic qualifications, such as BTECs or similar, as a full programme of study in areas that do not overlap with T-levels and are less well-served by A-levels—for example, performing arts or sports science. We have made it clear that students will be able to take BTECs and applied general qualifications alongside A-levels as part of a mixed programme—for example, taking applied general-style qualifications in subjects such as IT, engineering or health, alongside an A-level core. These qualifications will still need to meet the new criteria for quality and necessity.
We have listened to the views expressed in this House and have acted on them. The Secretary of State’s policy announcements are significant changes that acknowledge and satisfy the aims of these amendments. To push these amendments would risk the whole reform programme and potentially let down a generation of learners. I therefore urge your Lordships to accept these Commons amendments. I beg to move.
My Lords, I thank the Minister for her introductory remarks. I begin by speaking to Amendments 3A and 4A in my name. We fully support the principle of employers playing a central role in driving the development of identified local skills needs. We also recognise the more specialised role of FE colleges in delivering higher-level technical skills, although that should take place within the context of a holistic and more objective overview of the whole education, skills and employment support system.
If local skills improvement plans are to be successful, they must draw on the expertise and knowledge of all important players. That must certainly include mayoral combined authorities where they exist, and local authorities where they do not, in shaping the development of LSIPs, reflecting their unique understanding of their communities and job markets. We believe they merit a formal role and that that role should be clearly set out in the Bill.
We also believe it is appropriate to acknowledge the role played by contributors to the skills delivery equation, which is often overlooked; namely, independent training providers. ITPs are distinct from other types of FE providers, in that they are not run or directly influenced by the public sector, yet they form an intrinsic part of the country’s skills landscape. It appears that the breadth of provision that ITPs offer, and the impact they have, is not as understood as it could be among DfE officials and perhaps the public at large.
In Committee, I highlighted that there was no provision or requirement within the Bill for the Secretary of State or the designated employers’ representative body to engage with mayoral combined authorities or local authorities, or indeed any other stakeholder, in relation to the development of LSIPs. The same argument was advanced by the Opposition in another place and, credit where it is due, as the noble Baroness has outlined, the Government have listened. Commons Amendment 2 provides for such input, albeit it on a limited scale. It refers to “due consideration” being given to the views of the relevant authority. At least it is clear what, in the Government’s eyes, the relevant authority means, although noble Lords could still be here at this time tomorrow were we to attempt to define what “due consideration” might mean.
My Lords, I have a historic declaration of interest; I refer to it today to ensure entire transparency.
I will speak to Amendment 15A and respond to the Minister. I have no doubt whatever of this Bill’s significance and the importance of getting it right. I also have no doubt about the significance of the vote that I will ask the House to divide on today. I am not in any way opposed to the general thrust of the legislation, nor to the introduction of T-levels; I have made this clear over and again.
I have not had the opportunity to speak to the noble Baroness, Lady Wolf, who spends time in Downing Street, but I did have a productive and constructive meeting with Lord Sainsbury just a few weeks ago. The only thing that divides he and I—I refer to both because the noble Baroness did—is the belief that you have to have a scorched earth policy to make T-levels work. I do not believe that for a minute. I believe that T-levels will succeed on their own merits and in their own right, meeting a specific, focused, technical need—and a wider vocational need, in some cases—where employers and those involved in shaping these qualifications get it right for the future. Picking up on my noble friend Lord Watson’s point, so much of what we have done in education over many years—I include my time in government—has involved catching up on the past and putting in place measures that reflect a bygone era. I do not want us to be in danger of doing that with T-levels—in other words, catching up on a German or Finnish model that is already changing—I want T-levels to succeed in their own right and on their own merits because they are relevant to and appropriate for the future.
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However, they are specifically focused on particular sectors and employers. Every employer I speak to, and everyone you hear on the television or the radio—the Government must hear this as well—tells us that we also need broad-ranging qualifications geared towards enabling young people to cope with rapid and fundamental change in the workplace. In other words, we need something that gives them the skills to be able to change and move not just within but between sectors; to take on the enormous challenge of technical and business change; and to take on the introduction of artificial intelligence and robotics, including in terms of what that will mean, in every possible workplace in the country.
My appeal today is for people not to focus on whether this is about T-levels. It is not. I am absolutely certain that T-levels will succeed. However, as my noble friend Lord Rooker said on Tuesday, sometimes it is beholden on Back-Benchers and the Opposition to save the Government from themselves—not an easy thing to do when they know that, when they make a mistake, it might come home to bite them very hard indeed, including in red wall seats. If levelling up means anything, it has to mean choice and diversity for young people in different circumstances at different stages of their maturity and education.
My noble friend Lord Watson referred to the fact that many 16 year-olds are not absolutely clear what they are going to do in life. If you are taking A-levels and are determined that you want to be a medic, you will take the right qualifications. At one time, the Russell Group had preferred A-levels; I have never come across anything so nonsensical. I have three A-levels. Two of them are economics and law, neither of which featured on the Russell Group’s list. However, they are pretty fundamental to our economic development and well-being and professional lives. Let us not make the same mistake here with the vocational and technical thrust, which the Government are right to highlight. Yes, it is far too long since we gave vocational education the status and standing it needs, but doing away with part of what we have, which has been building quality, because we believe that it is the only way of introducing a new system is both short-sighted and extremely dangerous. We want quality in every possible area of our vocational and academic life but oranges are not the only fruit. That is why I humbly suggest that diversity of choice should be the mantra of a Conservative Government.
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The Bill already places duties on relevant providers to co-operate with employer representative bodies to ensure that their valuable knowledge and experience directly inform the development of the plans. This includes independent training providers, which are referred to in Amendment 4B, that provide English-funded post-16 technical education or training. Let me reassure the noble Lord, Lord Watson, that the views of independent training providers will be taken into consideration in the development of the plan.
The Government also recognise the importance of mayoral combined authorities and the Greater London Authority and their work as commissioners and convenors in their areas with devolved adult education functions. That is why, in the Commons, the Government brought forward Amendments 1 and 2, which place a duty on the Secretary of State to approve and publish a local skills improvement plan only if satisfied that, during the development of the plan, due consideration has been given to the views of the mayoral combined authority or Greater London Authority where it covers the specified area.
Further details will be set out in statutory guidance, informed by ongoing engagement with key stakeholders and evidence from the trailblazer pilots. Guidance can be updated regularly to reflect evolving needs and priorities, as well as best practice. We will ensure that the views of key stakeholders including mayoral combined authorities, the Local Government Association and the Association of Colleges are considered in the development of the statutory guidance.
Furthermore, relevant providers and key local stakeholders are already playing an important role in the local skills improvement plan trailblazers running this spring, which are spurring new collaborative working. I therefore hope that the noble Lord, Lord Watson, will not insist on his amendments.
I now turn to Commons Amendment 15, Amendments 15A and 15B from the noble Lord, Lord Blunkett, and my noble friend Lord Baker’s Amendment 16A. Many of your Lordships have spoken passionately about our reforms to post-16 qualifications, both now and when the Bill was last in this House. We listened carefully to these issues and have made some significant changes as a result.
At Second Reading in the other place, the Secretary of State announced that we are allowing an extra year before public funding is withdrawn from qualifications that overlap with T-levels, and before reformed qualifications are introduced that will sit alongside T-levels and A-levels.
Our reform programme is rightly ambitious, but we understand that it would be wrong to push too hard and risk compromising quality. The additional year strikes the crucial balance between giving providers, awarding organisations, students and other stakeholders enough time to prepare and moving ahead with our important reforms. That is why we cannot accept a three-year delay, as the amendments to this Motion propose.
These changes are part of our reforms to our technical education system that will be over a decade in the making from their inception, building on the recommendations in the Sainsbury review, published in 2016, which itself built on the findings of the Wolf review of 2011.
T-levels are a critical step change in the quality of the technical offer. They have been co-designed with more than 250 leading employers and are based on the best international examples of technical education. We have already put in place significant investment and support to help providers and employers prepare for T-levels. By 2023, all T-levels will be available to thousands of young people across the country. The change to our reform timetable means that all schools and colleges will be able to teach T-levels for at least a year before overlapping qualifications have their funding removed.
Last November, the Secretary of State also announced the removal of the English and maths exit requirement from T-levels. This is about making the landscape fairer, so that talented students with more diverse strengths are not prevented from accessing and successfully completing a T-level. The change brings T-levels in line with other level 3 study programmes, such as A-levels, which do not have such a requirement.
In addition, Amendment 15B would also require consultation and consent from employer representative bodies before the withdrawal of funding approval from qualifications. As your Lordships will be aware, we have twice consulted on our intention to withdraw funding from qualifications that overlap with T-levels. T-levels were designed by employers to give young people the skills they need to progress into skilled employment or to go on to further study, including higher education.
The definition of relevant authority has been kept very narrow: just mayoral combined authorities, of which I think there are currently nine, and the Greater London Authority. Why are local authorities not included in places in the country where there is no mayoral authority? What is to happen there? I suspect the Minister will say that, for the past two years, the adult education budget has been devolved to mayoral authorities and the GLA, which of course is the case, but LSIPs are not just about the contribution of adult education funding to the skills agenda; it surely goes much wider than that.
Here we come up against a right-hand/left-hand dilemma as far as the Government are concerned. The nine mayoral combined authorities and the Greater London Authority are to be given arm’s-length input to the development of LSIPs but other local authorities are to be given none at all, as things stand, and yet, in the levelling-up White Paper, launched last month amid great fanfare, the Government say:
“We want to usher in a devolution revolution … we will support local leaders to make a difference in their communities by … bringing local leaders into the heart of government decision-making with a new role for mayors and strong local leaders in the shaping of local growth strategy.”
I think those of us on these Benches would be happy to sign up to that, but what is it to be for government? Are democratically elected local leaders being brought into the heart of government decision-making or are they being marginalised, with merely “due consideration” being given to their views? There is certainly a disconnect; the Government cannot have it both ways.
I would say that, as they have got it right in the levelling-up White Paper, it would be consistent—perhaps not an adjective often applied to this Government—to give the same importance to mayoral combined authorities and local authorities in the development of LSIPs. Reflecting the status and expertise of FE colleges and independent training providers would enhance such a role for the mayoral combined authorities and would benefit the local skills strategy of their area. This is all the more important as the levelling-up White Paper gives the green light for fully devolved budgets at county level in the near future.
Perhaps in passing, might the Minister clarify the situation with Cornwall? It is not a mayoral authority, but I understand it has devolved responsibilities for skills and adult education.
It will become increasingly important for LSIPs to involve local and regional government, as well as providers and other community representatives. These amendments give the opportunity to get ahead of the curve and, in that respect, I hope the Minister will understand that argument and accept it.
The way in which the amendments have been grouped means that I also have to speak to Amendment 15A in the name of my noble friend Lord Blunkett. I would have preferred to have spoken separately. Before I begin on that subject, I need to point out further evidence of a lack of consistency in the Government’s position on technical skills and training.
In yesterday’s Spring Statement, the Chancellor said that
“we lag behind international peers on adult technical skills.”
He then gave some figures:
“a third lower than the OECD average, and UK employers spend just half the European average on training their employees.”
Perhaps we should ask: who has been in government for the past 12 years? The Chancellor went on to say:
“We will consider whether the current tax system, including … the apprenticeship levy, is doing enough to incentivise businesses to invest in the right kinds of training.”—[Official Report, Commons, 23/3/22; col. 341.]
In the skills Bill in another place, the Opposition pressed an amendment calling for a review of the apprenticeship levy, with particular regard to those at level 3 and below. The Government voted against that amendment, so there again it is a left-hand/right-hand dilemma. What are the Government doing?
I want to signify our support for Amendment 15A in the name of my noble friend Lord Blunkett. I have said on many occasions that I welcome the introduction of T-levels and genuinely want to see them establish parity of esteem with A-levels as a path into post-school education or employment. However, we do not accept that BTECs and other applied general qualifications need to be sacrificed to ensure the success of T-levels because we do not believe that they are mutually exclusive. Let it be understood that T-levels are as yet unproven. The first of them will reach completion only this summer. Until they are fully embedded and acceptable to students, parents—they are important in this regard—employers and universities, it is important that other options are available to young people for whom neither T-levels nor A-levels are appropriate.
In his letter to Peers last week, the Secretary of State claimed of this Bill that its measures will change people’s lives across the country. He is right, although, in too many cases, it will not do so in a positive way; he seems unable to grasp that for some reason. Defunding most BTECs would seriously affect the future life chances of many young people. These qualifications are well established and are often a springboard for young people from disadvantaged backgrounds into well-paid, skilled employment or university. Studying a BTEC empowers a young person to shape their own pathway, whether it is going to university or pursuing a technical qualification. Restricting a young person’s choice at 16 seems to make no sense. Withdrawing BTECs without an alternative pathway that still meets the needs of people, employers and the labour market is not responsible policy-making.
Last month, Ofqual launched a consultation on the reform of level 3 qualifications. Perhaps the Minister can tell noble Lords where that will fit with the proposals in the Bill. As engines of social mobility—and, indeed, of social justice—BTECs play a significant role in the skills agenda. I know that the Minister gets out and about a lot. She must have heard the overwhelming opposition from FE colleges, universities, independent training providers and many employers to these proposals relating to BTECs. That is because BTECs are qualifications that are understood and respected by employers. They have a long-standing track record; they are respected by learners and understood by institutions. These are real strengths that should not be cast aside lightly.
Almost unbelievably, the DfE’s own equalities impact assessment stated that scrapping BTECs would disproportionately impact those from SEND backgrounds, Asian ethnic groups and disadvantaged families. Yet the department decided to ignore that warning and press ahead regardless. This could mean years of progress in increasing the numbers of students entering higher education from the lowest-participation neighbourhoods being lost by the defunding of BTECs.
I have heard it said that those refusing to abandon BTECs in favour of T-levels are looking backwards rather than forwards. Well, BTECs date only to 1984. A-levels were introduced in 1951. Is advocating the continuation of A-levels backward-looking? Of course it is not. That is why we reject the false dichotomy between BTECs and T-levels. A block in the development of T-levels is the requirement of employers to provide 45 days of workplace training. In the current climate, that is difficult but, ultimately, that issue will be overcome. For now, the need is to defend, not defund, BTECs.