Select Committee on Education and Employment Minutes of Evidence


Examination of Witness (Questions 200 - 218)

TUESDAY 23 MAY 2000

RT HON DAVID BLUNKETT, MP

  200. So if it is that important, which PSA targets do you think relate to the skills targets?
  (Mr Blunkett) When we work those out with the discussions on the spending review from July, we shall be able to publish them. People will then be aware of what we are setting in terms of the development of the new learning and skills council programme, including the actual direction.

  201. So there are no targets at the moment?
  (Mr Blunkett) We have a range of targets which were established by NIESR, obviously with information and data from Government, but they were established with business in terms of targets for achievement of intermediate and advanced-level skills. Those targets are still being worked on at this moment in time, but the resources devoted to them will make a difference to their achievement. However, unlike the schools or early-years sector, we do not have direct control over the resources which are being applied by businesses themselves, although businesses are rightly seeking a substantial say over the six billion resources which from 2002 we shall be devoting to skills education.

  202. Can I come in on that?
  (Mr Blunkett) Yes, I just wanted to finished my answer.

  203. In fact, you have some control, because you seem to have borne down on franchising in the FE sector, to such an extent that the number actually completing FE courses is probably half a million less over the last three years than if you had sustained the number going into FE at the level you inherited. Does that not worry you, at a time when the number of vacancies in the economy is at an all-time high?
  (Mr Blunkett) It is possibly 200,000 less.

  204. Full-time equivalent.
  (Mr Blunkett) And no, it does not worry me, because weeding out two-hour courses provided by a franchisee 50 miles away, on a subject area and on a discipline of no relevance whatsoever to the economic prosperity of that locality, did not achieve a bridging of the skills gap; and weeding out that lack of quality and those spurious franchising deals is something that I am proud of and not something to apologise for.

  Mr St Aubyn: I do not think we would dispute that.

  Chairman: We need to move on, because time is getting very short.

Dr Harris

  205. There has been a lot of stress on reducing class size. That has brought to light issues to do with teacher supply, which relate to that. How worried are you about teacher supply in, for example, the sciences and maths?
  (Mr Blunkett) I am worried enough to have invested the substantial sums from the March Budget in the new programme of £6,000 training salaries for postgraduate trainees, the additional top-up new-style golden hellos to make £10,000 for those shortage subjects, including science, and of course the £13,000 payment per trainee to schools offering employment-based routes, which I think is a very imaginative and effective programme. There has already been a substantial uplift over the last six weeks, in comparison with the six weeks this time last year, of over a fifth in terms of applications, which is very encouraging.

  206. If that works, do you wish you had done it a year or even two years earlier, because it is an admission that the previous policies had not worked in a significant way?
  (Mr Blunkett) There has been a graph from 1992/93 onwards of just making targets in the primary and failing substantially to meet targets in secondary recruitment. If I had the resources and I had been in a position to do so, would I have liked to have done it earlier? The answer is yes.

  207. So sticking to those spending plans famously, perhaps infamously, may have stored up problems for the future, for the future supply of teachers, is that what you are saying?
  (Mr Blunkett) No, I am not, because each individual element that this Committee, myself and Ministers would like to spend on would have had to have been weighed against each other. Clearly, if you take a view that at any moment in time you would like to have done everything possible, you would have done absolutely nothing; in other words, you can only get so much even out of £1 billion extra.

Judy Mallaber

  208. May I ask about the Objective 3 PSA targets on helping people without a job into work. Specifically, I would like to ask you how you interpret the achievements on those targets. Are they showing that the Employment Service has been performing well, or were the targets too easy, or is it just that there is a healthy job market, or is there some other factor which we should take into account in why there is success in achieving those targets?
  (Mr Blunkett) I do not think we should make the mistake that people make on A Level and GCSE reports that every time you do well there must be something amiss. I think that actually achieving targets at a time when 920,000 additional men and women are in a job, and when we have claimant unemployment down to levels of January 1980, is something to be really proud of and is successful. I think the change in the operation of the Employment Service, including the operation of the various New Deal programmes, has been very effective. I think that the change in culture and attitude has been effective. We still think there is more that can be done, which is why we are transferring resources for work-based learning to the Employment Service from next April, so that as with the New Deal programmes for 18 to 24, we can link skills and training. We are looking very closely, as Members will be aware, at how we can link into employers with induction and training, so that there can be specific programmes linked to a particular sector or company, rather than simply training people and hoping that within the market they will be picked up.

  209. Can I move on to asking about your relationship with the Treasury, because clearly employment policy in getting the unemployed back into work is one of the apples of their eye. Can you tell us something about how that responsibility is shared, and would it in any sense be fair to say that it is the Treasury that decides what the target should be and makes the important policy decisions?
  (Mr Blunkett) No, it would not be fair to say that. I am in constant negotiations with the Chief Secretary about what is achievable, and that is understandable. Fortunately for me, he understands these matters very well. The macro role of the Treasury is crucial in terms of being able to achieve our employment objectives. The ability of my department to deliver—and it is our job to deliver both through the Employment Service and through the development of the skills agenda—is made possible by the role of the Treasury in terms of their overall macro policy, not simply in terms of demand within the economy, but the changes which are worked through with myself and with the Secretary of State for Social Security on a more responsive and reflective welfare state and benefits system, which is why the amalgamation of the Employment Service and the Benefits Agency is a sensible and natural process which in retrospect probably ought to have been done years ago, but where the computer facilities probably would not have been up to it.

Mr O'Brien

  210. Following on the previous line of questioning, if one looks at the New Deal, and particularly with the youth unemployment, certainly on the statistics which appear to have been accepted and published between April 1993 and May 1997 when long-term youth unemployment was falling at the rate of 5,000 a month and is now only at 2,700 a month, and now, even on the Government's own figures where the figures variously range in terms of the spend to date on New Deal for young unemployed people between £750,000 and £1 billion, could you give some indication of your understanding of the number who have actually moved into new jobs, those who would have got jobs anyway and those who stay in those jobs beyond the first 13 weeks, so that we can actually get a real readout of sustainable employment?
  (Mr Blunkett) Fortunately I have checked what you asked the Permanent Secretary last week. I am able to assure the Committee that in the just over two years the New Deal programmes have been up and running, for the New Deal employment there has been a 70 per cent drop compared with a 52 per cent drop for the equivalent period prior to that, so there has been a substantial improvement in terms of that cohort. I am particularly proud of that, because we are dealing with a difficult cohort under the New Deal programmes and those who have been unemployed for a substantial period of time, and we are dealing with an increasingly challenging group within that cohort, because the greater the propensity to get people into jobs, the easier it is to get those jobs for those who have already got skills or are able to present themselves well, therefore the greater the challenge for those who remain. But yes, we are pleased. The figures will be brought out this Thursday or possibly next Thursday on the next monthly cohort. Under the last monthly cohort we got just under 2,000 or 3,000 18 to 24 year olds into work, three-quarters of them in sustained jobs, and on the NIESR analysis—which you will be familiar with—which was only for the first period of the full New Deal programme in its 1998/99 run, there was an analysis that at least 40 to 50 per cent of those who got jobs would actually not have found themselves in work had it not been for the New Deal programmes. I think in any comparator with previous schemes—and this is not a job scheme, it is a preparation for employability—those figures are very good.

  211. If I can follow that up briefly, Chairman, it seems to be easy to bandy about figures, so I shall try to avoid that. It does seem, though, that if you take into account the number who would have got jobs anyway or, as you put it, those who would not have got jobs anyway, that is a proportion of the overall number, so what assessment have you made of the training and education option for those who did not get a sustainable job? I am very mindful of the number who are not sustaining their job beyond the first 13 weeks.
  (Mr Blunkett) I think it is a very fair question. We are having a look at what happens to those on the education and training full-time option when they subsequently continue education and come out at the other end. In other words, the analysis of the figures at the moment is inadequate, and I do not think we make any bones about this. My colleague, the Employment and Equal Opportunities Minister, was, I think, giving separate evidence on a separate day last week and may well have referred to this fact that we need to refine the statistics so that we actually find out when someone has got the first part of qualifications under their belt and they go on, because of that opportunity, to take a qualification which requires a second or subsequent year, whether that has actually assisted them directly to get a job which is relevant to, and can therefore be assigned to, having taken that particular qualification. We have not got those statistics yet, and when we have I think we shall have a much better idea as to whether the full-time education option has been more successful than would apparently be the case at the moment.

Judy Mallaber

  212. You have referred to the fact that we are now trying to deal with those young unemployed people who are the hardest to place, and we have had some comments from the Employment Minister, in giving evidence on seeking to tackle the problems of numeracy and literacy in that group. How optimistic would you be that we can tackle that seriously, once they have got to that stage in their development without those skills? What would you see as the key things which we need to be doing to tackle that within the New Deal programme?
  (Mr Blunkett) I am optimistic, but I think that the delivery of those basic skills needs to be seen in the context of the very substantial number of those young people who have other challenges, and therefore we need to ensure that in providing rehabilitation support services we take co-ordinated action rather than simply saying, "We'd like you to take a numeracy course", important as that is. I also think that looking into competence with information and communication technology can help, partly because young people in particular are interested in learning and are turned on by, are enthused by, engaging with ICT, partly because obviously you can then develop the kind of software programs which are being so successful in reading recovery and in numeracy recovery in schools. In other words, we can apply to adults the lessons that we are learning in terms of integrated learning systems.

Valerie Davey

  213. I think every fair person must say that New Deal is a good news story, especially for those young people and now older ones who are now finding employment again. Can I come back to your relationship, though, over another PSA agreement with the Treasury? Is there a good news story for you when you go back to the Treasury for the next spending review? Are you told, "Right, here are higher targets", and if you have not achieved the target you have got less money? How does it work when it is now put on the table in front of the Treasury?
  (Mr Blunkett) I need to be very careful how I answer your question. We establish targets in our department with the partners who have the responsibility for delivering them. We indicate what can be achieved with a given resource. We then talk through with colleagues whether that is robust, and we have the normal discussions about the robustness of our expectations within that given sum of money, given the historic delivery, what has been managed in other areas, what comparators we can use elsewhere. So they are, and have been, our targets. Fortunately, we have done a lot of work in the past on what could be expected within the system, and we have stretched very hard those who are our partners in delivering them, whether it is in schools or whether it is in the Employment Service, in delivering on the ground.

  214. The implication, however, is that you reward those who clearly are doing well, but in education terms there is a problem there, because those who do not achieve or do not necessarily do so well have traditionally been those who have received most money. There is a conundrum here which I do not understand for the now very clearly defined PSA and targets which you yourself are setting and also the Treasury.
  (Mr Blunkett) There is an interesting debate about whether you set PSA targets, whether you lay down objectives and maybe floor targets and then you simply leave people to get on with it. We have adopted the notion of intervention in inverse proportion to success. We have, as you know, been accused of being very hands-on and centralist. I think that is necessary and at the moment remains necessary in order to provide greater equality of opportunity, to ensure best practice is spread and used and that we do not simply allow those who are failing within the system to continue failing those who rely upon them, given that whether it is children in school or whether it is unemployed people attending a job centre, they have no control mechanisms over the failure of those who are delivering. We do, and we are now using them. The difficulty of governments in the past, of all persuasions, was that they pronounced, they appealed, but they had no mechanisms—certainly from the previous Department of Education and Science and the Department of Employment—actually to ensure that there was a delivery mechanism. From the 1998 Act and from the changes in the Employment Service and New Deal, we have put those in place. Inevitably, that brings cries from people who believe that we are being too hands on. I hope that we will reach a position before very long where the changes are effective and where the system is working well for all those who rely on it.

  Valerie Davey: Thank you. I hope the Treasury thinks so too.

  Chairman: Very quickly, Secretary of State, perhaps we could move on to a couple of questions on red tape in schools.

Mr Sheerman

  215. There is no doubt that if spending is going to be effective, it has got to be effective at the chalkface, in the school, where the education is delivered. In this Committee we hear, as we go round the country, two complaints. One is about red tape, and it is certainly borne out by Lord Haskins' suggestions and inquiry. The other is that there is an initiative fatigue there. Indeed, an impeccable source over the weekend seems to have said that "sometimes it looked as though the Government strategy was just one damned initiative after another". At the chalkface it does seem sometimes that the communications system is overloaded, so that even though there is a desire for Government to make things happen at the chalkface, it is communicated in not quite the form that makes the people on the ground feel highly motivated—in other words, they get demotivated because they are getting a mixed message or the wrong message. Is there anything your Department could rapidly do to clear up that lack of communications which Lord Haskins put his finger on?
  (Mr Blunkett) If there is perceived to be a problem, then there is a problem, therefore we should address it, and we will. The working party that was established with the involvement of the teacher unions went part way to addressing the issue of bureaucracy, but not the whole way. The issue of communications was a point well made by Chris Haskins and those who were working with him. Incidentally, there were nine head teachers, I think, on the group, so it is not surprising that their views were fairly predominant. I accept the thrust of what was being said. Not only do I accept it, we were actually working on it and working alongside the investigation material which they were drawing on. So I will take action in these areas. I do not accept the point about the "initiative-itis", although I do plead guilty to having asked those in the system, throughout the Education Service, to do an enormous amount in a very short period of time. The youngsters do not have another round, they will not come round again in the schools system, so we have to move as fast as we can. All I can tell you is that these initiatives that people complain about are enormously popular, people are scrabbling to get them; they want Excellence in Cities, which I have not heard anybody criticise yet, although I am sure that there are Members who will get round to it eventually. I have far more schools than we can cope with wanting specialist school status, working with their neighbouring schools in the community, far more wanting to work on the Beacon School initiative than we can cope with, far more schools wanting mini education action zones as part of the development of their programme of co-operation, and a tremendous enthusiasm, both from pupils and teachers, for the literacy and numeracy programmes. Therefore, when we get down to identifying which initiatives it is that they like and dislike, there seems to be a great enthusiasm for taking up the plethora of initiatives enthusiastically,

Chairman

  216. Finally, a very brief question from Nick St Aubyn.
  (Mr Blunkett) You are not going to criticise Excellence in Cities?

Mr St Aubyn

  217. There are some things we do agree on, Secretary of State, including the value of small class sizes in the early years, but according to a recent letter received from your Department[1], it would appear that you are now claiming that the full costs of funding the early years infant class pledge is to be funded by the savings from the assisted places scheme—not just the marginal cost of the assisted places scheme, but the full cost. Do you think it is a price worth paying to have smaller class sizes in the first three years, when we are now seeing larger class sizes in secondary schools, partly because children who would have been on assisted places are being absorbed into those schools, and according to this analysis there is no extra funding for extra teachers to provide for them?
  (Mr Blunkett) Of course, in answering the last part of your question I was working on the presumption of the previous Secretary of State, Ken Clarke, who made it absolutely clear that the marginal cost of absorbing a particular pupil into a particular class was so small that it could not be taken account of by Treasury allocations.

  218. If you let the class size rise.
  (Mr Blunkett) We have not been letting the class size rise. Firstly, the assisted places scheme—and this was a clear manifesto proposal—has assisted very substantially in enabling us in the medium and long term to be able to sustain those lower class sizes which are effectively being put in place. Secondly, clearly there has not been shown to be a knock-on in Key Stage 2 for the 8 to 11 year olds which people said there would be, because we have seen for the first time in ten years an adjustment downwards in both class size and PTR. Thirdly, the amount that was allocated to secondary schools from this year's Budget alone, as part of the major uplift of over 8 per cent in real terms, would have allowed secondary schools to employ an extra 3,500 teachers. We are not pressing secondary schools to spend the money on additional teachers; we are giving them flexibility to make choices about how best to address the standards agenda. If we did, however, if we were centralist enough to determine a class size pledge for secondary, we could cut the pupil teacher ratio in secondary schools by 0.4 now, from this September, thereby reversing that decade of year-on-year increase.

  Chairman: It is now 10.45. We must keep faith with the Secretary of State. Can I thank you, David, on behalf of us all, for giving us this time. We have only scratched the surface of the subjects we wanted to explore with you, but it has been a very productive session, if I may say so. Thank you very much indeed.


1   See HC 502-i, p29. Back


 
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