Peter Aldous highlights the challenges facing the FE sector; such as the rising number of 16 and 17-year-olds, rising costs, and the workforce crisis and calls on the Government to ensure that the 2023-24 funding rate keeps up with inflation, allow colleges to reclaim VAT and ensure that 50% of the apprenticeship levy is spent on apprentices at levels 2 and 3, below the age of 25.
Peter Aldous (Waveney) (Con)
I congratulate the hon. Member for Wirral West (Margaret Greenwood) and my hon. Friend the Member for Worcester (Mr Walker) on their efforts in securing the debate, and my hon. Friend on his work chairing the Education Committee, in particular for the publication in April of the Committee’s report “The future of post-16 qualifications”, which in many respects is the cornerstone of the compelling case for change to the way that post-16 education is provided in the UK.
Further education in its many forms—whether full-time in college, on day release, in the evening or through an apprenticeship—is the bridge between school and the workplace. It enables people from all backgrounds to realise their full potential and achieve their ambitions. It is also the means through which Great Britain plc can operate as an efficient economy, with increased output, improved profitability for businesses large and small, and high economic growth. Further education is the route to removing what is becoming the 21st century British disease of low productivity. To perform that role, FE and colleges must be fairly funded and their courses properly structured. At present, they are not, although my hon. Friend and his Committee have shown us how to remove the many obstacles they face.
My interest is as an MP serving a coastal constituency where there are exciting opportunities emerging in such sectors as renewable energy, sustainable fishing, and maritime and ports. East Coast College, with its campuses in Lowestoft and Yarmouth, is doing great work in preparing people for those exciting careers. However, despite significant investment by the college and Government in new facilities, such as the Energy Skills Centre in Lowestoft and the Eastern Civil Engineering Construction Campus in Lound, it feels that it is operating with one arm behind its back.
The FE sector is facing significant challenges. The number of 16 and 17-year-olds is rising rapidly as a result of the population boom moving through the education system. Many young people have been severely disadvantaged by covid and the ensuing lost years of learning. Colleges are helping to support them, ensuring that they catch up and assisting them in making the right education decisions and career choices. Colleges and sixth forms, like everyone else, are facing rising costs as a result of rising levels of inflation. There is also, as we have heard, a workforce crisis. Without further investment, there will be no staff to deliver the skills that our economy so desperately needs. It is important to emphasise the vital role that colleges perform in delivering the economy’s future skills needs.
On the East Anglian coast, significant opportunities are emerging in renewable energy, with the transition to a zero-carbon economy. Over half of the nation’s UK offshore wind fleet is anchored off the Suffolk and Norfolk coast. Sizewell C will be one of the largest construction projects in the world. There is enormous potential for retrofitting, for hydrogen and carbon capture, and for the oil and gas infrastructure, both in the southern North sea and running through East Anglia to serve much of the UK.
East Coast College is doing great work in training, upskilling and providing careers advice. The scale of the opportunity is both enormous and exciting, but the college needs the revenue and resources to rise to the challenge. It also faces a similar dilemma in the NHS and social care sector, where it works closely with the James Paget University Hospital at Gorleston and other care providers in the north-east Suffolk and south-east Norfolk area.
The case for investment in colleges and FE is compelling. Despite recent uplifts, FE funding compares unfavourably with both the university and school sectors. That was confirmed by the IFS in its 2022 annual report on education. It highlighted both larger cuts than other areas after 2010 and no extra funding announced in the 2022 autumn statement. At a time when we are rightly promoting lifelong learning, it is concerning that participation in adult education has fallen at all qualification levels, particularly among those who are worse off.
Colleges are facing extreme challenges in the recruitment and retention of staff, which are exacerbated by funding rates rising by less than 3%. Further education colleges are facing their worst staffing crisis for two decades and they are increasingly constrained from delivering much-needed courses as the pay they are able to offer their staff is way below that which they can earn in industry and in schools. Colleges, I am afraid, are losing staff because they cannot match the pay in those other sectors. There is an ever-widening pay gap with those industries where skills shortages are at their worst: construction, engineering, digital and care.
The college workforce crisis is impacting on the Government’s delivery of key policy priorities, including the roll-out of T-levels and higher technical qualifications. This will ultimately result in growing skills gaps, impacting on our nation’s productivity, efforts to address regional inequalities and the transition to a low-carbon economy. This will leave people in poorly paid, insecure work.
At East Coast College for over a year there have been vacancies in the engineering, electrical and science teaching teams, where there is an urgent need for staff and new recruits. This means the college has had to restrict teaching where businesses urgently need staff, such as for plumbing and electrician apprentices. The college has also been unable to recruit civil engineering teachers for T-levels. Those vacancies are putting enormous pressure on existing staff who in turn, as matters stand, will be looking at minimal pay increases, with their wages comparing very poorly, as we have heard, with other similar local sectors. If the situation is not addressed, with more funding provided, the crisis will get even worse, and at a time when the FE sector has such a vital role to play.
I chair the all-party parliamentary group on further education and lifelong learning, whose secretariat is provided by the Association of Colleges. It has a straightforward five-point plan to address the crisis, which my hon. Friend for Worcester set out and which I will re-emphasise. First, the 2023-24 funding rates must be raised in line with inflation, in recognition of the fact that prices are significantly higher than they were when the three-year budgets were set in October 2021. That would cost £400 million and is in line with what many of us campaigned for ahead of the spring Budget. Secondly, as we have heard, there are clear advantages in allowing colleges to reclaim VAT. Thirdly, we need to ensure that 50% of the apprenticeship levy is spent on apprentices at levels 2 and 3, below the age of 25. Fourthly, we need to provide a larger skills fund to support skills in high-priority areas such as low-carbon energy and healthcare, both of which East Coast College has prioritised. Finally, the Department for Education should collate evidence on college pay, similar to that which it provides for the School Teachers’ Review Body.
I look around and see gaps everywhere, not just gaps on these Benches, but alarming gaps in our economic and education systems; gaps that are ever widening—skills gaps, pay gaps, productivity gaps. We must eliminate these gaps as quickly as possible. It is clear from today’s debate that we are united behind, dare I say it, our champion, my right hon. Friend the Minister, in seeking to secure the funding that will be the first step that is needed in this vitally important work, so that Cinderella really can go to the ball.