Select Committee on Education and Skills Minutes of Evidence


Examination of Witnesses (Questions 880 - 899)

WEDNESDAY 21 APRIL 2004

MR DAVID MILIBAND MP AND MR IVAN LEWIS MP

  Q880  Chairman: One last point on this section. No-one wants you to do that. We understand the impetus behind 14-19 and all of that. Many of us on this Committee believe that there are many young people in this country of ours who need not only Modern Apprenticeships but qualifications through Modern Apprenticeships, and they also should be protected from going into the market, whether they work for SMEs or for larger companies, with no skills or education or training at 16. That seems to be the worst exploitation of children, and I have not really had any answer from you yet whether you agree that it is exploitation to turn a child into the workplace with no education and training.

  Mr Lewis: I think it represents a major failure of our society, and I think it should be the motivation that drives us to go to work every morning in terms of our contribution to the education system, to make sure that we minimise—I will not say eliminate because utopia is sometimes difficult to achieve, as we find out from time to time—the number of young people who leave our education system before the age of 18   without any form of recognised, decent qualifications. That should be our passion, it should drive us from a social justice point of view, but it should equally drive us from an economic, competitiveness and productivity point of view.

  Q881  Mr Jackson: I want to ask a general question about the extent to which the Department is looking at international experience. I know the Minister of State referred to the United States when answering my question about higher education, 50% from the vocational aspects of higher education. We have recently been to Germany and to Denmark, and one of the things that we noticed in Denmark was the employer levy system, which we used to have and scrapped. At one point the Labour party was in favour of restoring it. Would you like to say something in general about international comparisons and the extent to which we are learning from international experience, and perhaps particularly say something about the point about training levies?

  Mr Miliband: Can I say I think there is a growing market across national education comparison advice testing, etcetera, I think that is very helpful. The PISA Study by the OECD is the leading example of that.

  Q882  Chairman: And TIMMS. There are others which we do not score so highly.

  Mr Miliband: The PISA Study has got 32 countries engaged in it and it is very, very rigorous. I was at the OECD Ministers' meeting in Dublin where we were looking at whether we can bring together a group of countries to do a more in-depth study to get this sort of comparison. If you take something like the Tomlinson Committee report, I do not know if you remember but when the Government published the response to the Green Paper that Ivan referred to earlier that launched the Tomlinson Committee, an annex to that was on the foreign experience of 14-19 education, deliberately drawing out the contrast between foreign systems and our own. I am pleased that the Tomlinson Committee have taken that cue and are really thinking hard about the foreign comparisons in their deliberations. I think both from a school standards point of view about what works and from a reform point of view in relation to 14-19, we have got to be conscious that there are different ways of doing things. It is worth saying that I do not believe in the simple import/export model for policy because you have got cultural, historical and other differences. A final point: the UK does not have one system, different systems exist within the UK and it is important to think about them as well.

  Mr Lewis: The Government position on levies is we will facilitate through legislation levies where both sides of industry can demonstrate that they want it. I will give you two examples. The British film industry and the print industry are both actively exploring the employers and the trade unions as to whether that is desirable for their particular sectors. So where both sides of industry can demonstrate objectively that there is significant support, majority support, within those industries then we will be happy to facilitate legislation to make that happen. This is, again, something that has not generally been promoted. The Sector Skills Councils are being given the opportunity to put together sector agreements. What that means is that they define very clearly what they assess the skills needs are of their particular sector. They demonstrate also a significant level of employer willingness to put some investment into making that plan happen, and then the Government will reconfigure and flex some of the money that we spend through the Learning and Skills Council to directly respond to the needs that specific individual sectors identify as being their priority. You could argue that that is very similar without introducing the compulsion element, a more voluntarist approach but very much the Government saying "If you can be clear, if you can put some investment upfront, we will ensure that an element of the public money we spend on education and training is configured to meet directly the needs of specific sectors where these sector agreements are brought forward". The final point I would make, Mr Jackson, is that we have said repeatedly, and since I have had this job I think it has been confirmed for me, that we have a responsibility to create an education and training system which is far more responsive to the needs of employers and far more demand led than it has been to date and we have not done that yet, we are in the process of doing that. I believe that we are making significant inroads towards achieving that. Having put in place an architecture, an infrastructure, that does that in a far more significant way than in the past I think it is reasonable to say to employers "You have to come to the table now. You have to step up to the mark. You have to make your contribution because" and this is something that is very important and we need to have this debate with the Committee at some point, "we will not raise our national skills performance to the level that we need to if it is purely about the state". There has to be a much clearer level of responsibility from employers and, indeed, from individuals if we are going to raise our national skills performance, both in terms of young people but particularly in terms of adults, to the level that we are going to need in terms of competitiveness and productivity. One of the things that the Skills Strategy sought to do, and seeks to do, is be much clearer about the respective responsibilities financially and behaviourally of the state, of employers and of individuals. I think that is a really important step forward. We need a more demand-led system.

  Q883  Mr Jackson: Can I just comment on this idea of employers stepping up to the mark. We did have an experiment in voluntarism that started in the early 1980s with the scrapping of the levy system and I have to say that I do not think the verdict would be that that experiment was very successful, so getting the employers to step up to the mark is quite a big task. On the point about investment, I absolutely agree about both the importance and the difficulty of international comparisons and learning from international experience. I wondered whether the Ministers could say something about how we compare with the other G8 countries in terms of the level of expenditure and funding of our overall skills infrastructure?

  Mr Miliband: What do you mean by skills infrastructure?

  Q884  Mr Jackson: Everything that is connected with investment and training. I am talking in very general terms, I agree, and it is difficult—

  Mr Miliband: Everything with training or education as well?

  Q885  Mr Jackson: Specifically training and the skills aspect of education. I do not know whether the Ministers have got any figures on this. Are we towards the top end of the scale, the middle of the scale?

  Mr Miliband: Public or private investment?

  Q886  Mr Jackson: I think I am talking both, public and private.

  Mr Miliband: I think we should write to you.

  Mr Lewis: Yes, we need to write to you about that issue.[7] Can I respond to one other point that Mr Jackson has just made. I think that there is an encouraging step forward in terms of the relationship, for example, between the Government, the CBI and the TUC. On this agenda at a national level we do now have, the TUC likes to describe it as a social partnership on skills, the CBI likes to describe it as an economic partnership, so we all agreed to call it a social and economic partnership. This is for the first time really at a national level the employers, the unions and the Government signing up to try and drive this agenda forward. I would also say to you on the question of voluntarism that we are beyond the entirely voluntarist approach. I have described the Sector Skills Agreements and also I talked earlier about employer training pilots where we are giving wage compensation to employers providing they are willing to release staff to train for a certain period of time up to level two. We have always said that it is our job to get the education and training system fit for purpose, and it has not been in the past. I think we are getting to the stage where it is much closer to fit for purpose. I make this clear: it is at that point that we will be evaluating whether employers are willing to make a significant enough contribution to achieve our national skills goals, and if they are not we will have to revisit that position. We are not persuaded that the old-fashioned style levies are the route that will achieve that objective.

  Mr Jackson: Chairman, could I just pick up this point about the international comparisons. I think this is actually quite important. I know we do not want to be dominated by debates about inputs, outputs are really more important, but I think it would be very helpful to have a letter from the Ministers for our future thinking which analyses in a comparative way the funding of skills training, specifically vocational education, both public and private with the leading G8 competitors. I think that would be very useful for us.

  Chairman: If we can do that for the health system, why can we not do it with the skills sector. One of the things that we did pick up in Germany and in—

  Jonathan Shaw: Denmark.

  Chairman: Denmark, not Norway. Certainly the feeling that I had, and some of my colleagues had, was that it was a very good system for the 20th century but it was showing a lot of creakiness about it for the 21st century. What they were both finding was less involvement and willingness of the employers to be engaged in training and to take on apprentices.

  Mr Jackson: More in Germany than in Denmark.

  Q887  Chairman: Much more in Germany. Greater responsibility to keep those young people involved by retaining them in colleges rather than having host employers. It seemed to be more of a problem that certainly we were struck by.

  Mr Lewis: All I would say, Chairman, is the state cannot achieve what we need to achieve in terms of national skills performance alone. I think Mr Jackson asked a very, very important question. We have to be better at being clearer about what the state's contribution needs to be and what the employers' contribution needs to be and also what we expect from individuals. I know that Mr Jackson played a very honourable role in the recent debate about higher education and, in a sense, central to that was what were the respective responsibilities of the different stakeholders in terms of delivering world class education.

  Chairman: That might divide the Committee a bit so we will not pursue that for a moment.

  Q888  Mr Gibb: I just want to pick up the point that the Chairman hinted at, the two international surveys. The Minister is very fond of reciting the PISA comparison where we come fourth in science and eighth in maths in the group of countries, whereas in TIMSS, which the Minister is less keen to cite, we come 20th out of 41 countries in maths and science. Could you explain why there is a difference?

  Mr Miliband: There is also the Durham study, which is an internal study, and there are methodological differences between them in that certainly the Durham study is closer to an IQ test than an achievement test. I do not know how many times I have cited PISA. There is another one coming out in December so I might stop citing it, or I might cite it some more, you never know. There is also PIRLS.

  Q889  Mr Gibb: For reading.

  Mr Miliband: For reading, which is a study of 10-year-olds. There are different tests being organised.

  Q890  Mr Jackson: Like opinion polls.

  Mr Miliband: I hope it is not like opinion polls.

  Q891  Chairman: You just said you would quote the one that agrees with you the most.

  Mr Miliband: It depends who I am talking to. In all seriousness I think that there is a maturing international set of comparisons being developed. We have moved from the era of defining equivalences of different systems to having tests that are applied across but they are all part of it.

  Mr Lewis: It is the "Miliband survey" that we are most interested in!

  Q892  Valerie Davey: Can I come to information, advice and guidance. You have mentioned complexity, Minister, for the employer and I think for young people and their parents it is particularly difficult. I am wondering whether you are satisfied with the level of advice and guidance, or otherwise, careers service, which young people are being given?

  Mr Miliband: Let me just say a word by way of introduction. The more complicated the system is, the more advice and guidance you need. The more you can create simplicity and transparency, the more young people can do their own navigation. I think it is important to have that in mind. In a way the demands on advice and guidance are partly a function of how clear the system is. We have got the challenge that our system is not as transparent and as clear as it should be. That places big demands on our advice and guidance system, some of which is very good, some of which is not. Ivan may want to say a bit more about that.

  Mr Lewis: I think it was mentioned to the Committee recently that we are doing an end-to-end review of the advice and guidance available to young people from 11-19 at the moment. David is absolutely right, the more complex the system, the more this becomes important. The National Audit Office report of last week on Connexions was on the whole very, very positive indeed. I think we have made a mistake sometimes by imagining that advice and guidance is all about a two hour interview in some golden age we used to have with young people that made all the difference and transformed their decisions about their careers, which is a load of nonsense. We have to be more sophisticated in the way that we look at advice and guidance that we offer to young people, both in terms of their curriculum choices and in terms of their labour market aspirations and that involves a number of players. It involves the Connexions service, it involves the careers infrastructures and teachers within schools, it involves the relationship with employers in the local community outside of schools, it involves the use of IT. There is a whole range: the education of young people about labour market realities, earning potential in different jobs, different sectors. There is a whole variety of factors that contribute towards supporting young people to make positive choices. Of course, long-term there is the need to ensure that we do try to achieve a closer convergence of esteem between the different ways that young people can progress and develop and achieve through the education system.

  Q893  Valerie Davey: What you are actually saying is not only is the training base complex, but the careers guidance is very complex as well, the whole range of provision being made, so where does a young person and their parents start? Before you come back, let me just say that one of the brand names which is now getting credibility, certainly in my area, in the West of England, is Connexions which has good resonance. The idea now that we are going to have this end-to-end survey, when, as you rightly say, the Audit Office has just come out and said by November the target of 10% fewer young people being left without training, education or employment is saving the Government 180 million in the short-term and 1.4 billion in the long-term, what are we doing? What are we saying to the parent and the child, that we are not satisfied with the careers guidance you are getting so we are going to review it all again? Why are we doing that?

  Mr Lewis: Absolutely not. There are people who are going to make sweeping generalised statements that careers advice is not very good in this country as though it was good five years ago, ten years ago or 20 years ago. I would argue it has never been great. The National Audit Office report on Connexions is very positive indeed, very, very encouraging for those of us who believe strongly in the Connexions service and the work that it is doing. I know Ms Davey is a great supporter. An end-to-end review is something that we ought to be doing as a matter of good practice. We did that on apprenticeships recently, we do it on a whole range of policy areas because that is the appropriate thing to do if you want to build on success and improve different parts of the Department. Just because we are doing an end-to-end review of a particular policy should not cause alarm, it should simply say that it is good practice to look within the DfES and with our partners outside at how we can improve the different policy areas for which we are responsible.

  Q894  Valerie Davey: Minister, can I just say that everything we do in this area depends on the staff who deliver. Neither you nor I now teach in the classroom actually delivering the careers service and those staff who are doing it need to hear the message you have just given rather than "We are going to have to cut 25 million for some tax problem, we are going to have to do this, that and the other and we are doing a big review". I think you need, please, to get your message out. I am delighted you have made it to this Committee, I hope the press and other people pick it up, that this is routine, that we are building on success, not that, as you said earlier, we are concerned about the careers service.

  Mr Lewis: I think that is true, Chairman, very briefly, but it is true, also, that we are looking at all of the services, all of the interventions which affect young people's lives outside of school, to bring those together, to make them more coherent, to make sure they interact properly with the school standards' agenda and the work that goes on directly within the workforce employed in schools. It is absolutely right that we try and bring some coherence to that, which is why the Every Child Matters Green Paper was important, why the Children's Bill will be important. It seems to me we cannot leave out of that process the Connexions service, it is a very, very important part of what we are seeking to do in terms of supporting young people's progress and development through the system and making sure they do not drop out without any form of education or training at the age of 16.

  Chairman: The reason I am looking to you, Minister, is I want five minutes on school and college provision and Jonathan has waited patiently, I really have to move on.

  Q895  Jonathan Shaw: You will be aware of complaints from colleges about the inequity of funding between sixth forms in schools and the funding for those same pupils in colleges. Obviously if we are going to get this fusion between different institutions to provide different parts of the curriculum for a young person they might be moving between different institutions and it seems to me and the Committee that it does not cost any more in a school than it does in a college. There is this funding gap which has been around for years. Do you agree it is not defensible and are you making any progress to reduce that gap?

  Mr Miliband: I think the facts and figures are that there is progress being made with a significant infusion of funds into further education. I would just say two things though. Of course the terms and conditions under which teachers and lecturers operate are not the same, so it is not only pay that is different, I think I am right in saying, and secondly—

  Q896  Jonathan Shaw: It is not the pay, it is the funding, is it not, in terms of how much the LSC gives the colleges and how much the LSC gives the schools.

  Mr Miliband: Yes but it is often framed in terms of pay.

  Q897  Jonathan Shaw: I am aware of that.

  Mr Miliband: In terms of pay issues for staff. Obviously there are a whole source of economies and diseconomies of scale depending on the size of a plant or estate which go well beyond the staffing. In relation to pay, what I always look out for is, is there the evidence that lots of colleges are losing staff into the school sector and when I have asked about that I have not seen figures suggesting that there is that sort of movement.

  Q898  Jonathan Shaw: Would you be alarmed if you saw those figures?

  Mr Miliband: I would be alarmed if colleges were saying they were unable to find the staff to deliver the curriculum that they need to. I think that there are pinch points in schools and in colleges, they are being addressed in a number of ways. There is a significant investment going into both the sectors. I think the college sector is rising to some of the challenges of the successful document. I think it sees the Government's commitment through its revenue investment as well as some capital investment. I think we have got growth in both sectors, if I can put it that way.

  Q899  Chairman: We have had evidence from colleges here, really refreshing, we had two colleges here, Bury College and another, which both said "Look, we have 500/600 pupils in our FE college between 14 and 16 years of age, and that indicates to us . . . " whichever programme it was ". . . a Pathfinder programme, increased flexibility programme, whatever was happening, seemed to us to be very encouraging and that we are getting that appropriate kind of mix of basic education back at school, a day at work and two days in college." That all seemed to us going along the right road but then there is the subtext of people saying "It is only a short term funding, it is going to stop. We are not going to be able to do it". How do we commit staff and an institution to carry on when it is all very short term?

  Mr Miliband: Helen Gilchrist from Bury College is on the Tomlinson Committee.

  Mr Lewis: Bury Metropolitan College.

  Mr Miliband: Excellent. I share your enthusiasm for this. I would say two things about the funding problem. One is it is very much my view that certainly for the schooling system, for the whole of public service actually, the move away from the annual budget round to a three year budget year is absolutely essential, it really is. You cannot expect people to make the sort of strategic decisions they need to about staffing and other issues if they have not got that sort of timeframe. You then have got the issue of when you are launching new things like the increased flexibilities programme or the 39 Pathfinders you need new money to start things off and people then say "Is the money going to be there afterwards" and the answer to that is "It depends on the success of the programme". If the programme is as successful as you and I believe it to be, I think any government of any kind would want to pile in behind it. We are in the midst of a pilot phase and that does raise a perfectly legitimate question about what happens beyond, how can we sustain the funding. We have to respond to that. We have to do justice, also, to the evidence based policy making that you enjoin us to go in for and make sure this is value for money before we say everyone should be doing it.


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