I agree wholeheartedly. Later in my speech, I will highlight some of the strategic working that is required to make the most of the opportunities in the offshore energy sector that are emerging not just on the east coast, but all around the UK.
I have the privilege and honour of chairing the all-party parliamentary group for further education and lifelong learning, for which the Association of Colleges provides the secretariat. It is appropriate to take stock of the work that colleges do and the impact they have on their local communities. English colleges educate more than 1.6 million students every year and employ approximately 103,000 full-time equivalent staff. Some 913,000 adults study or train in colleges, while 611,000 16 to 18-year-olds study in colleges. There are 166,000 people on apprenticeship provision in colleges, and the average college trains 1,000 apprentices. Some 110,000 people study higher education in a college. Some 23% of 16 to 18-year-olds and 24% of adult students at colleges are from minority ethnic backgrounds; 21% of students in colleges have a learning difficulty and/or disability; and 46,000 college students are aged 60 and over.
Those figures demonstrate that colleges are the Heineken of the UK education and training system: they reach the parts and the places that other establishments do not. They invariably do this to a high standard, with 91% of colleges judged “good” or “outstanding” at their most recent inspections. Colleges support the Government’s ambitious plans to roll out T-levels, increase apprenticeship delivery, promote adult learning and introduce higher technical qualifications. While colleges are up for these challenges, there are significant obstacles in the way of them playing the role they want to—a role that will bring so many benefits to local people and communities.
First, despite a 2021 spending review that recognised some of the long-established funding issues facing colleges, further education funding still compares extremely unfavourably with both university and school funding. In its 2021 annual report on education, the Institute for Fiscal Studies highlighted that:
“Further education colleges and sixth forms have seen the largest falls in per-pupil funding of any sector of the education system since 2010–11.”
Although the budget for 16 to 18-year-olds is rising for the five-year period from 2020 to 2025, the pressures of extra catch-up hours, increased prices and the cost of living are holding back progress on flagship programmes in key national skill shortage sectors. The situation is exacerbated by the dramatic energy price increases. Some colleges have long-term contracts with suppliers
agreed in 2021, which means that they are not covered by the six-month scheme. However, it means that they face the prospect of treble, quadruple or even worse price increases in 2023. It should be borne in mind that for many technical and vocational courses, there is no good alternative to in-person education at the college.
Secondly, colleges across the country are finding it increasingly difficult to recruit and retain staff, given the widening gap between what skilled teachers can earn in colleges and what they can earn in industry or even in schools. An Association of Colleges survey, commissioned by the Financial Times, shows that 85% of colleges reported staff shortages in construction courses, 78% in engineering and 62% in IT and computing. In August, the AOC wrote to the then Prime Minister, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), urging her to make investment in schools a central plank of her premiership. I hope the Minister will confirm, following this morning’s comments attributed to the new Prime Minister, that his Government will make that commitment.
Thirdly and finally, colleges are concerned about the speed of the Government’s reforms to level 3 qualifications. It is right to have the ambition of having a respected and well-understood set of technical qualifications in place across England. However, it is a worry that funding for 160 existing qualifications will be withdrawn when clear replacements are not yet in place. It should be demonstrated that these replacements properly prepare students for progression, meet the needs of industry and promote social mobility. Concerns remain that T-levels will not be accessible to all students ready to do a level 3 qualification and that the required industry placements will not be readily available. I urge the Minister to work with colleges and business to address these worries, so that this flagship policy has a positive and proper launch and does not immediately run aground.
One of the great things about colleges is that they are innovative, imaginative and entrepreneurial. It is in that spirit that Stuart Rimmer, the principal of East Coast College in Lowestoft and Great Yarmouth, has brought together colleges and trainers from across the UK that run energy-related courses to form the national energy skills consortium. The consortium meets virtually three to four times a year, and I have the privilege of being invited to those meetings. Clean energy and the low-carbon economy provide an enormous opportunity for creating new and exciting well-paid long-term jobs, often in deprived areas where they are badly needed. The consortium has the objective of maximising those opportunities and removing barriers that might get in the way. My right hon. Friend the Member for Spelthorne (Kwasi Kwarteng) made a presentation to the consortium when he was Energy Minister, and my hon. Friend the Member for Brentwood and Ongar (Alex Burghart) joined us in the summer, when he was skills Minister. I hope the Minister will also meet us in the near future.
In following up the meeting with the former skills Minister in July, Stuart Rimmer highlighted three issues that must be addressed if colleges are to properly train people to acquire the necessary skills to work in the energy sector. First, he said it is wrong that colleges and universities are required to take high-risk, up-front investment decisions to build capacity and deliver training
for nationally important infrastructure projects, such as Hinkley Point and Sizewell C. Secondly, he said that energy and civil construction qualifications required by employers should be brought into core funding for young people, apprentices and adult learners. Thirdly, he said that, while local skills improvement plans will play an important role in ensuring that skills promotion is tailored to, and bespoke for, local areas, it is important for the energy sector, where supply chains often extend across the whole the UK, that a national framework is in place. The consortium, along with the National College for Nuclear and other bodies, such as the Engineering Construction Industry Training Board, is keen to work with Government to ensure that this strategic approach is pursued.
The UK desperately needs sustained economic growth that reaches all parts of our four nations, and in which all people, whatever their backgrounds and ages, can participate. Colleges are already doing great work, but if they are given the resources and means, they can do much more. Working with the Government, they can help to put this traumatic and turbulent time behind us, and we really can build back better.
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