My Lords, I thank noble Lords for their contributions today; I appreciate the expert knowledge that they bring and the many passionate speeches. As the noble Baroness, Lady Garden, said, I hope I have retained some of my rationality during this interesting debate.
I begin by giving a special thanks to the noble Baroness, Lady Black, for her maiden speech. Like my noble friend Lady Morgan, I am the beneficiary of a touch typing course, which has stood me in good
stead. I was fascinated to hear of the career of the noble Baroness, Lady Black, in forensic anthropology—but, as one of the more squeamish Members of your Lordships’ House, I do not need to know anything further. I wish her well, and hope that she enjoys her time in this House as much as I do.
I turn now to the points that noble Lords have raised. But given that there have been 50 speakers, as was outlined by the noble Baroness, Lady Young, I am afraid that the department will be writing some letters after I have concluded.
Before I turn to the specific questions, many of your Lordships followed the lead of my noble friend Lord Willetts, including the noble Lord, Lord Blunkett, and my noble friends Lord Baker and Lord Cormack. I am the beneficiary of the wisdom of previous holders of junior and Secretary of State positions in the department, in that my homework has been corrected: there is no artificial distinction between vocational, technical and academic—no sense that one is better than the other. We are trying to achieve a system where they all have parity of esteem, where the institutions that teach these qualifications have parity of esteem and where the quality of all those qualifications is there.
The reforms in the Bill are aimed at bringing the system closer together and the lifelong loan entitlement, for instance, will bring together all the funding support for learners—that is, level 4 to level 6—wherever you might be studying that. One can also look at the system at the moment and see that there is not a conflict or a battle between FE and HE—the Government do not desire that at all. We recognise the collaboration there is. When we look at the recent introduction of institutes of technology, we see that they have been a collaboration; the university technical colleges of my noble friend Lord Baker have also been a collaboration, as have been the recent specialist maths sixth-form colleges, with universities involved in 16 to 19 provision. So the system is not even that twofold—just FE and HE. We will also fund T-levels, A-levels and other high-quality academic and technical qualifications for young people and adults at level 3. This will ensure that, whatever option learners choose, they will have a pathway to success.
A few noble Lords mentioned being disqualified from access to LLE. If you want the funding for level 4 and you are accepted by the institution to study that, it does not matter if you do not have level 3 or level 2. That is how universities have operated for a while: they sometimes have different access routes. Therefore, although obviously we have the funding situation for levels 1 and 2, you will have that entitlement. If you get accepted on a course at level 4, you will be in the lifelong loan entitlement pot. There is no prerequisite that you have to have level 3. However, of course we recognise the value of those qualifications, as many noble Lords have said, and therefore the advanced learner loans will still exist for level 3 courses that are not the 400 courses that we are currently funding if you do not have the full entitlement or if you have the full level 3 entitlement and want to do something different. I hope that clarifies that everyone will have that lifelong loan entitlement between levels 4 and 6.
On the measures in the Bill on local skills improvement plans, I agree with my noble friend Lord Taylor on the importance of localism. The local skills improvement plans are putting employers at the heart of the skills system in a way similar to the apprenticeship situation and the T-levels that we have designed. Many noble Lords talked about that tension: someone has to be in the driving seat here. There cannot be a cast of thousands but there needs to be appropriate consultation. So the Government have decided that these will be employer representative groups. To clarify to the noble Baroness, Lady Bennett, we did not define them as businesses but as employers. That might be the big local hospital, or a university might be an employer for that purpose rather than just being the provider. They are well placed to have that convening role, including of course the SMEs, in their local area. As the right reverend Prelate the Bishop of Leeds highlighted, their involvement is crucial.
My noble friend Lady Morgan asked what the Government envisage ERBs to be. We consider them to be independent bodies designated by the Secretary of State to develop local skills improvement plans. They are capable of developing that plan in an effective and efficient manner and many noble Lords talked about the future—the noble Baronesses, Lady Morris and Lady Lane-Fox. The plans have to be dynamic and will include not just existing skills but what the future for the local area looks like. I want to reassure the noble Baronesses, Lady Coussins, Lady Janke, Lady Henig, and the noble Lord, Lord Watson, that in Section 4 the relevant providers are not just FE and HE; they include the schools that are delivering post-16, as well as the independent training providers. So the educators are included, and it is supposed to be a dynamic relationship between the employer representative body and the relevant providers that, as I say, we have outlined.
On a point raised many hours ago by the noble Baroness, Lady Wilcox, the mayoral combined authorities will be engaged in developing the local plans. The White Paper talked about the fact that they will be consulted on this and, as I mentioned, we have these trail-blazers that we have recently procured, so we will know the particular areas where we will be starting there. They will help to shape the local plans.
However, one reason to have local skills improvement plans is the gaps we have at the moment. The noble Earl, Lord Shrewsbury, referred to this position for parts of Shropshire, in such a dynamic region as the West Midlands. There will be a local skills improvement plan across the country and it is obvious to state, but perhaps I need to say it, that not everyone has a mayoral combined authority. As noble Lords have often said, we do not have a settled, defined geography out there for many things—our police authorities, our local government—so this is where “local” will be defined by the local employers coming forward. Many of the current trailblazers have come with the endorsement of local government or, where relevant, the mayoral combined authority.
The noble Lord, Lord Patel, the noble Baroness, Lady Coussins, and the noble Lord, Lord Triesman, asked how the local skills improvement plans will interact with national strategies. They will be informed
by the national skills priorities, as highlighted by the Skills and Productivity Board; that will remain. The board will undertake expert analysis of the national skills that we need to inform government policy.
The noble Baroness, Lady Morris, asked what powers the Government have should businesses take a back seat and rest on their laurels. If the ERB does not comply with the set conditions, the Secretary of State may not approve and publish its skills improvement plan and could remove its designation. Obviously, it goes without saying that all the powers of the Secretary of State are subject to criteria for judicial review. These powers must be used in a proportionate manner, et cetera; they are obviously not an absolute power.
The noble Lord, Lord Stunell, and the noble Baronesses, Lady Sheehan, Lady Young and Lady Bennett, talked about the importance of green jobs and net-zero carbon. We expect the LSIPs, led by the employer-represented bodies with that link to the national strategy, to look at what future green jobs are in the area. An element will be national because of what needs to happen with household boilers, as I think the noble Baroness, Lady Bennett, mentioned, so there will be an interconnection there.
The noble Baroness, Lady Wilcox, and the noble Lord, Lord Curry, raised questions on local needs. It is about the needs of the learners and the employers in a local geographic area served by the college. The noble Lord, Lord Bradley, questioned the centralisation here, but what we are saying here is that we are allowing “local” to define itself. We have not said that it has to be the local authority area, the MCA area or the LEP area. There is a dynamic here to areas being able to say, “This is the area that we, as employers, need to look at.” The plan will be an important point of reference.
As the noble Lord, Lord Curry, spoke, I mouthed “Newton Rigg”. I am aware that there have been issues in relation to the provision of land-based education in that part of Cumbria. I regularly see questions about it, so I will happily engage with him if I can offer any further assistance.
I reassure the noble Lord, Lord Storey, the noble Baroness, Lady Garden, and other noble Lords that the purpose of the section of the Bill dealing with technical educational qualifications, which includes a lot of hospitality within that sector, is to simplify the approach to regulations between the institute and Ofqual. The two bodies already work effectively together. They are effectively collaborating; we are embedding, or perhaps futureproofing, it so that they carry on working in the way that they do at the moment. In the legislation, we are extending the technical qualifications that IfATE can regulate but Ofqual will continue to have independent regulatory oversight of technical qualifications in live delivery. The legislation will bring the treatment of technicals more in line with A-levels and GCSEs, where the content is subject to regulatory scrutiny. Obviously, we have been talking to Ofqual during preparation of the Bill.
Extending the institute’s power will raise the quality bar and ensure that the majority of these qualifications, like apprenticeships and T-levels, are aligned to employers’ standards. This will place the employers’ voice at the heart of the system. We are creating a clear progression
pathway for learners and there will be an opportunity for Parliament to consider the details of the regime when the regulations are laid.
It has become clear today that a lot is happening around this legislation; this is the statutory underpinning to the skills White Paper, but we also have the consultation that has just finished on level 3, the call for evidence on level 2 and the consultation on the details of the lifelong loan entitlement. Turning to that, I confirm to the noble Baroness, Lady Wilcox, that it is our intention, as outlined in the Explanatory Notes, to bring forward amendments to the lifelong loan entitlement ahead of Committee. I can also confirm to the noble Lord, Lord Bichard, that the LLE will be available to be used from levels 4 to 6. The noble Baroness, Lady Wilcox, also mentioned the funding of level 3. As I have outlined, that is covered by the national skills fund and there are now the boot camps—flexible courses for up to 16 weeks. As I have said, that is in addition to the availability of the ALL and bursary support fund for level 3 qualifications.
Many of your Lordships, including the noble Lords, Lord Bichard and Lord Watson, and my noble friend Lady Wyld, raised questions on the detail of the LLE ahead of the upcoming consultation. We will do that as soon as possible during the passage of the Bill. I am not able to give a clearly defined timeline on this, but the consultation will cover questions on, as the noble Lord, Lord Watson, mentioned, maintenance credit transfers; the noble Baroness, Lady Garden, and many other noble Lords mentioned the ELQ rules, which will also be within the consultation. I am happy to ask officials to set up briefing sessions with noble Lords once the consultation has been launched.
Many noble Lords, including the noble Lords, Lord Shipley and Lord Curry, my noble friend Lord Cormack, and the noble Baroness, Lady Lane-Fox, asked about the introduction date of the LLE. As well as the consultation, we have got a lot of work to do with the Student Loans Company to co-design a system capable of delivering the required operational changes, and we will introduce secondary legislation to enable the LLE to function. This, as I have outlined, is the whole pot for level 4 to level 5, so there will of course be changes. Once you release the maximum loan amount for the academic year, that has a knock-on implication for that which it already funds—mainly the level 6 undergraduate degree. We have got to get this right operationally and, unfortunately, it is going to take more time than we would ideally like.
The question of part-time study was raised by the noble Baronesses, Lady Lane-Fox and Lady Greengross. I have to say, having been to a graduation at Birkbeck university, I was overcome by emotion seeing people getting their degrees, many with their families and children there. The decline in part-time study and adult education is a great shame, and I thank my noble friend Lord Willetts for his humility in accepting that it is something that we are seeking to put right. One of the main purposes of this is to ensure that the loan entitlement enables that modular, part-time learning to begin again. But I accept the questions raised about how adults access loans, as opposed to young people; I am sure there are behavioural scientists looking at how we get people to take these loans up.
In response to my noble friend Lord Willetts and the noble Baroness, Lady Stowell, the LLE will be available regardless of where you study—it will be “institution blind”, as I think another noble Lord said. It will be based on the level of qualification you are studying, not which institution you have selected to study in.
On the parts of the Bill that relate to initial teacher training, as I have outlined to the noble Lord, Lord Watson, the powers we are taking are to deal with the small part of the market that is not producing the quality that it should for initial teacher training for FE. Once we have worked in collaboration with the sector, if we still need that power, we will use it, but we want to make sure that the quality is there.
I believe the questions raised by the noble Lord, Lord Knight, relate to the current review of the ITT market for school-based training, and so I will ask officials to write to him, as that is outside the scope of this Bill.
On that note, there were other matters, as this Bill sits quite narrowly within a framework of a lot of other interconnected issues. I will deal with a few of those in the time I have left.
I am very grateful again to the noble Lord, Lord Addington, and the right reverend Prelate the Bishop of Leeds for highlighting the importance of special educational needs and of using the assistive technology to support FE learners with SEND. This is an important part of the Bill. Obviously, the figures for those with SEND show that a higher proportion of them go into technical or vocational qualifications or into FE institutions.
The noble Lord, Lord Storey, asked about alternative student finance. We are considering a student finance project that is compliant with Islamic finance principles in parallel with the post-18 review of education and funding. That review is due to conclude alongside the next multi-year spending review, so we will provide an update then. I know that that is an issue that has been talked about for a number of years.
Of course, many noble Lords raised questions about apprenticeship funding. Again, apprenticeship levy funding is not part of the scope of the Bill, but £2.5 billion is available this year and the funds available to levy-paying employers are available to be transferred down the supply chain. We are working on the apprenticeship levy to ensure that it is meeting those needs. Most employers who pay the levy might not spend all of their funding, and they can fund apprenticeship starts in smaller employers. We will make improvements to support employers offering more apprenticeships
and to make them more flexible through accelerated front-loading and flexi-job apprenticeships and making transfers easier. We also have a specific piece of work on the sector that the noble Lord, Lord Puttnam, is in—that is the creative industries—where apprenticeships have been difficult because there is not one employer and people are going from project-based work.
The importance of careers advice was mentioned by many noble Lords, including the noble Lords, Lord Patel, Lord Addington and Lord Bichard, the noble Baroness, Lady Garden, and my noble friend Lady Morgan. Obviously, that is not within the Bill, as far as I am concerned, because we do not need statutory underpinning for that. However, I recognise that the Bill is sitting in this wider framework of connected issues, and we have given £100 million to the National Careers Service and the Careers & Enterprise Company this year.
On the perennial issue of cross-government working, which was mentioned by many noble Lords—particularly the noble Lords, Lord Puttnam and Lord Patel, and the noble Baroness, Lady Coussins, and my noble friend Lady Stroud—and also came up in one of our meetings in advance of today’s Second Reading, we are looking to answer those questions, so I will write to noble Lords about the interconnection of this with the benefits system. It is not straightforward to answer in a Second Reading debate how we can ensure that it connects properly, but I will write to noble Lords.
In relation to the specific question on the Kickstart scheme, I am told here that universal credit claims are eligible if the claimants are aged 16 to 24 and meet the relevant conditions. We are working with DWP to turn those as well into apprenticeships when it is right for the employer and that young person. I hope that answers the specific question posed by the noble Lord, Lord Storey, but if it does not, I will write further to him.
Obviously, I have read the concerns of the noble Lord, Lord Johnson, in the Times, which I think were more properly addressed to the Treasury in relation to the finances. The issue was also raised by the noble Baroness, Lady Blackstone, and that will also be passed on.
In conclusion, I wholeheartedly agree with the statement by the noble Lord, Lord Puttnam, about the importance of the Bill. The imperative is the need now for us to follow through, to fund this and to deliver it. I beg to move.
Bill read a second time and committed to a Committee of the Whole House.
House adjourned at 8.09 pm.