PARLIAMENTARY DEBATE
Post-16 Education and Skills Strategy - 20 October 2025 (Commons/Commons Chamber)
Debate Detail
The House should be in no doubt: transformation is what we need, because the world is changing, with artificial intelligence, machine learning, green energy and new and exciting technologies. Global forces are reshaping the world of work more and more quickly. They bring fresh and exciting chances for growth and opportunity. However, unless education and training in this country also change, we risk missing those chances and our young people risk being left behind.
We have seen that before. Under the previous Government, who thought that colleges and technical education were for other people’s children, apprenticeship starts for our young people plummeted. They talked down our universities and were more interested in headlines for culture wars than in head-starts for students. We will never take that path. I know that Members on both sides of the House will agree that we in this country have a duty—to our people, to our businesses and to our great history—not just to keep up but to lead the way.
Today we publish our post-16 education and skills White Paper to seize the opportunities of this changing world, to deliver growth for our economy and opportunity for our communities, and to lead the way. My vision for post-16 education in this country is a skills system that drives growth and is more balanced, more responsive and more reflective of the evolving world of work. It will add dynamism, invention and expertise to our economy, and it will go further by inviting working people to be part of that economic strength and to add to and share in that success.
The young person who has just left school and is not sure of what is next deserves a range of quality options to choose the route that is right for him—a great apprenticeship, a top course at his local further education college, or to go off to university. A working mother deserves the opportunity to upskill and make the most of her talents. For her, it means more than a job; it means a career, security and opportunity. I want to see that opportunity cascade into our communities, with local businesses becoming more productive, taking on more people and paying higher salaries; hustle and bustle returning to the high street; the skilled workforce that we need to build more local homes; and empowered NHS staff with the right skills to deliver a transformed service that is fit for the future—getting this country moving again.
That is why the skills system is fundamental to national renewal. The White Paper is the turning point in how we go from a quarter of a million skilled vacancies sitting unfilled to a pipeline of top-quality training to fill those jobs and create new ones, from a muddle of confusing pathways to a coherent system meeting the needs of the modern economy, and from further education treated as the poor relation to our colleges standing side by side with our world-class universities.
The public will have heard such warm words about skills before, and they will know that warm words often fizzle out into nothing—no action and no change. But that is no longer the case, because our reform of the skills system has already begun. We have established Skills England, reformed the growth and skills levy, slashed red tape on apprenticeships, introduced technical excellence colleges and stabilised university finances, and we are rolling out the youth guarantee.
Today, we are going further, guided by our industrial strategy. We will fill gaps and meet needs, through our new foundation apprenticeships or through shorter courses in priority sectors, which from April will be funded by the growth and skills levy. To deliver growth, we are investing £187 million for our “Techfirst” digital skills and AI learning, £182 million for engineering, £182 million for the defence talent pipeline and £625 million to train 60,000 more construction workers. That is all backed up by 29 new technical excellence colleges.
Clean energy, defence, digital, advanced manufacturing, construction—what we need is technical excellence, and that is what our colleges can provide. Through this White Paper we will work with our fantastic FE staff. We will draw on their passion and expertise. We are strengthening professional development in our colleges, partnering with industry, and building on the evidence of what works. We will pair that support with improved performance measures, to bring our colleges out of the shadow of the university route, and to make it a pathway of equal importance, equal value, and equal pride in the eyes of the nation. As the Prime Minister has said, that will be a defining cause for this Labour Government: no longer a Cinderella service, but rather a system of high esteem, matching high support with high challenge, and spreading best practice from across the country to deliver high standards in every college. To seize the opportunities of the tech revolution, this country needs not just lawyers, economists, and scientists; we need wind turbine technicians, video editors, and builders—careers that we on this side of the House respect, and work that pays and lifts up communities.
We are introducing rigorous study pathways, giving young people a clear line of sight into great careers. That includes V-levels, the brand new vocational pathway unveiled in our White Paper today, sitting proudly alongside A-levels and T-levels, and building the skills and knowledge that employers value. We are backing those changes with £800 million of extra investment for young people in our colleges and sixth forms next year, above and beyond what was planned for this year and supporting 20,000 more students. That is why the target for 50% of our young people to go to university is evolving, because to compete in this changing world, we need to nurture a much broader range of talent.
As the Prime Minister has announced, we have a new ambition. No longer just half; we want two-thirds of our young people to get into high-level learning, be it academic, technical, or an apprenticeship. But pro-technical and pro-vocational does not mean being anti-academic. Our universities are a stamp of quality recognised across the world, a source of immense national pride, and a driver of economic strength in our regions. To any young person growing up in England today, I say this: if you want to go to university, if it is right for you, and if you meet the requirements, this Government will back you. That is why we are introducing new targeted maintenance grants for those students most in need, funded by a levy on international students’ fees, because in this country, opening up access for domestic students from disadvantaged communities is my priority.
We also need a system that delivers for working people living busy lives. That is why we are making higher-level learning more flexible and available in bitesize chunks, with break points in degrees, and supported by the lifelong learning entitlement. But it is not only degrees that matter. I want to see our universities working with colleges to deliver more level 4 and 5 qualifications, and to spread that excellence far and wide, making it easier for people to take those vital courses in their local further education college, and delivering the “missing middle” of skills that is so important for our economy and for our people seeking their next promotion.
To safeguard the excellence in our universities for future generations, last November I announced that tuition fees would increase by £285 this academic year. Today I confirm that we will increase undergraduate tuition fee caps for all higher education providers in line with forecast inflation for the next two academic years. We will future-proof our maintenance loan offer by increasing maintenance loans in line with forecast inflation every academic year. To provide long-term certainty over future funding, we will legislate, when parliamentary time allows, to increase tuition fee caps automatically in the future, linked to quality. We will not allow institutions that do not take quality seriously make their students pay more. Charging full fees will be conditional on high-quality teaching, balancing stability for universities with fairness for students and taxpayers.
Within this White Paper is a challenge to our universities to build on what makes them great, drive up access, drive out low-quality provision, improve collaboration and push forward innovation, deliver the research breakthroughs that will revitalise our economy, and feed that energy back into our local communities.
We will support every young person to take the pathway that is right for them—technical, academic or vocational—but I will not accept their having no pathway at all. Far too many of our young people find themselves not in employment, education or training. From there, they become isolated from society, disconnected from success and their hope fading, and that must change. We will strengthen the part played by schools in the transition to post-16 education, we will improve accountability, with a bigger role for strategic authorities, and we will introduce a new guarantee. Any 16 or 17-year-old not in education or training will automatically get a place at a local provider. I will not let opportunity slip away, just as those young people are getting going in life.
The White Paper delivers on that promise to our young people to give them the skills that they need, but the task of revitalising our skills system is not the isolated work of one Department or another. It is the collective undertaking of local and national leaders, together with our workforces, businesses and trade unions. It is mission-led Government in action and the prize is huge: opportunity for our young people, growth for our economy and renewal for our nation. I commend this statement to the House.
I will start with V-levels. If they are a continuation of the reforms that we began to simplify the post-16 qualification landscape, I welcome it, but without the White Paper it is hard to understand whether that is the case. There are fundamental questions regarding the announcement that the statement does not answer, so I hope the Secretary of State will be able to shed some light on them today. Are V-levels simply a rebranded continuation of the reforms that we began, or are they a completely new qualification that will take years to develop? What is happening with BTECs, Cambridge technicals and other applied general qualifications? Are they all being scrapped? If so, what is the timeline for that? The Secretary of State says that she will consolidate 900 qualifications, but into how many? How will employers be involved in shaping the new courses?
As I said in oral questions earlier, I am deeply concerned by reports today about the introduction of the so-called lower-level qualifications aimed specifically at white working-class people. There has long been a term for that in education policy: the soft bigotry of low expectations. We reject that. Let me be clear: if this is a plan, it is an insult. Are we really saying that white working-class children are less capable of achieving the same qualifications as their peers, or that the answer to disadvantage is to lower expectations rather than to raise ambition? We should aspire to the best qualifications, teachers and outcomes for those from disadvantaged backgrounds.
We should not hard-bake the acceptance of second best into Government policy. Will the Secretary of State guarantee that pupils who fail their English or maths GCSE will be expected to retake them? Or is she content to assign them to second-tier qualifications? Will she ensure that every single pupil, whatever their background, can expect to be supported to achieve the same high standards? The truth is that under Labour, young people are being badly let down. Youth unemployment is rising and job prospects are sinking as a result of this Government’s choices.
The Conservatives have a clear plan to put an end to debt-trap low-quality degrees and to double the budget for apprenticeships. Labour’s plan is all over the place. At the Labour party conference, the Prime Minister declared that the ambition for 50% of young people to go to university is not “right for our times”. The Prime Minister clearly has not been paying attention, as he abolished a target that the Conservatives had already got rid of. What is more, today’s plan, as set out, would mean two thirds of young people would be in higher-level learning, but, as I understand it, with only 10% in higher technical education or apprenticeships. That would increase the proportion of those going to university from 50% to around 57%. Only a Prime Minister like this one could abolish a target that does not exist, then accidentally announce one that goes further than the non-existent target he just pretended to get rid of.
It is rather rich for the Secretary of State to boast that she has taken decisive action to fix university finances—the House will forgive me if I take that with a pinch of salt. Before the election, she promised that graduates “will pay less” under Labour. Well, it turns out that they will pay more—quite a lot more—and every penny of the extra cost this year is swallowed by Labour’s national insurance jobs tax. To be absolutely clear, the rise in tuition fees is a spending commitment, as it costs the Exchequer significant sums. The cost does not just fall on students; it falls on the taxpayer too.
When we were in government, we introduced T-levels and degree-level apprenticeships and put English and maths at the heart of all vocational qualifications, because that is what ensures that young people have the best start in life. All this Government are doing is embedding the soft bigotry of low expectations in our system and doing nothing to help young people with debt-trap degrees. It is not good enough.
We are investing £800 million more in further education, while colleges were cut to the bone under the Tories. We are putting a real focus on vocational education and FE, restoring their esteem, giving them proper respect and simplifying the qualification landscape that the Tories made even more muddled, and we are securing the future of our world-renowned universities. I did not hear whether the right hon. Lady accepted, disagreed, welcomed or did not support what I have set out today about university funding. If she does not support it, I would like to know how she intends to safeguard our world-leading universities into the future.
As usual, we heard plenty from the right hon. Lady about debt-trap degrees. We often hear a lot of talk about low-value courses or Mickey Mouse degrees, with an answer never given as to which young people should not be going to university, which courses that applies to or which institutions she has in mind when she makes sweeping generalisations of that kind. It is always working-class kids and other people’s children who will lose out from the snobbery that comes from saying that education is not for people like them.
This Labour Government will deliver a world-leading university system alongside brilliant technical and vocational routes so that all our young people have access to brilliant careers and training opportunities, including throughout their lives. This is about choice for young people and finding the route and the path that is best for them. This Labour Government say to young people, “Further study is important; it is for you. It matters to us, and it should matter to you as well.” That is why we are bringing changes to the qualifications landscape.
In answer to the right hon. Lady’s question, we believe that T-levels were a welcome and important addition to the qualifications landscape. They provide high-quality technical qualifications, with strong work placements alongside them, and sit alongside well-established A-levels, but the rest of the system alongside that is missing. We are making sure that we have good, strong routes through V-levels that young people will be able to combine with A-level study. That is for those young people who are not quite so clear at the age of 16 whether they want to specialise in one particular area. As the right hon. Lady will know, a T-level is the equivalent of three A-levels, and it requires young people at the age of 16 to make a definitive choice about the future of their career. We want to ensure that there is a range of high-quality options so that those 900 qualifications will move towards becoming part of the new V-level system. We will launch a consultation on how we deliver that, and we are keen to hear from businesses as a part of that.
The right hon. Lady asked about GCSEs and English and maths resits, and she criticised our plans to get more young people through their English and maths GCSEs. In order to do that, there has to be a stepping stone to making it happen. An endless cycle of unnecessary resits is not the way to support more young people, including those from disadvantaged backgrounds, to get English or maths GCSEs. She and her party were happy to consign a generation of young people to failure, endless resits and a sense of desperation. We want to ensure that they make progress and master the basics then move on to getting that good, strong GCSE pass.
This Government will ensure that all our young people have the opportunities and chances that they need to get on. The Conservatives might be determined to ensure that fewer young people have the chance to go on to university and that our businesses do not have the skills they need, but this Labour Government will ensure that apprenticeship starts are there, with good, strong FE options alongside our world-leading universities. That is what this White Paper is all about.
I welcome the priority of increasing the quality of further education, but there are two key contributors to quality that the Secretary of State did not mention in her statement. The first is the 15% pay gap between teachers in schools and teachers in FE colleges, which is a barrier to recruitment and retention for colleges. The second is the inability of FE colleges to reclaim VAT, a situation for which my Committee found no justification and which City College Norwich told us made the difference of a whole floor to a new building that it had recently completed. How does the Secretary of State plan to ensure that the further education sector has not only the policy framework to improve quality but the necessary resources?
The first issue is V-levels. The Secretary of State talks about ending confusion, yet she is introducing a new qualification that sounds remarkably like BTECs—they are flexible, sector-based and can mix with A-levels. BTECs already work: 200,000 students took them last year, 99% of universities accept them and one in five UK workers have one. If we are recreating BTECs, why scrap them first? We should keep both until 2030, so that we can compare outcomes. T-levels reached 1% uptake after five years, so let us not repeat that mistake.
The second issue is lifelong learning. The Secretary of State rightly speaks about the working mother needing to upskill, but will the support be sufficient to make that real? The lifelong learning entitlement is welcome, but the Government have cut over-21 apprenticeships, including those in shortage professions such as nursing and social work. What confidence do the Government have that their LLE can cover the costs of providing that vocational education, particularly in subjects with high operating costs?
The third issue is the international student levy. We support maintenance grants—another manifesto commitment we made that the Government have adopted—but funding them by taxing international students is self-defeating. This is incredibly tricky to model, but analysis shows that the levy could cut up to 135,000 domestic student places over five years and reduce our economy by £2.2 billion. That is not helping disadvantaged students. Will the Secretary of State make the modelling transparent and promise that opportunity will not be narrowed by the levy? There are many more questions, but I appreciate that I do not have time to ask them all.
There is much to welcome in this White Paper’s ambition, but we must guard against unintended consequences and missed opportunities. The Lib Dems stand ready to work with the Government to get this right.
Turning to the lifelong learning entitlement, this is an important change that will transform the student finance system in England. It will broaden access to high-quality, flexible education, including for adults who want to go back into education. It will launch in academic year 2026-27 for learners studying courses that start on or after 1 January 2027. This will allow learners to use the new entitlement more flexibly than ever before to fund individual modules, as well as full courses, at levels 4 to 6, regardless of whether they are provided by a college, university or independent provider.
The hon. Gentleman asked about international students and the international student levy. To be clear, international students make an important contribution to our country, our communities, our towns and cities, and our society. However, I do think it is right that with the contribution we are seeking through the international student levy, we will be able to reinvest in new targeted maintenance grants for domestic students. While I welcome the hon. Gentleman’s support for the introduction of such new grants, the Liberal Democrats will have to set out how they intend to pay for them.
“no longer a Cinderella service, but rather a system of high esteem”.
How does she propose to do that while still maintaining the pay gap for FE staff compared with teachers in other educational settings?
The V-levels provide an exciting opportunity for vocational qualifications, and the Secretary of State is right to praise colleges, but she will know that those same colleges are deeply worried about the defunding of BTECs and what that means for student choice in the 2026-27 academic year. Will she give a commitment from the Dispatch Box that BTEC funding will continue until V-levels are in place, and if she cannot, can she explain what young people accessing further education next year will be able to look to before they are in place?
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.