21 January 2011
My speech in the EMA debate (minus the musical accompaniment and interuptions)
I echo the words of my hon. Friend Mr Ward and thank the Opposition for this debate on EMA. Historically, they have been vexed about how to pay for the scheme.
If we are to have a credible debate, we must look at this issue in the round, and that means that we must look at the economic legacy we inherited from the previous Government. Our structural deficit is one of the largest in the world, and it is simply unsustainable. We are having to borrow £500 million a day. Every time we go to sleep and wake up in the morning, we rack up another £500 million. The debt interest-the money that we have to pay in interest to foreign banks and foreign countries to build their own hospitals and schools with-is £120 million a day, every single day.
I come from a rural constituency with some areas that have no post-16 provision, so I am all too aware of the additional costs that students will have to bear. Shipston high school in my constituency has lobbied me very hard on this subject, as has Martin Penny, the head of Stratford-upon-Avon college-a fantastic institution in my constituency with 5,000 students and 450 staff. I addressed the students during the week of the tuition fees debate, and after we had cut through the misinformation they understood why we were having to make these decisions.
In fact Mr Brown, when he was Prime Minister, hoped to pay for EMA by reducing the debt on the young people of this country, something he obviously did not manage.
Transport is an important issue that was raised with me by Martin Penny from Stratford-upon-Avon college and has been aired by Members on both sides of the House. As my hon. Friend Mr Jones said, it is an issue not only for rural constituencies but for urban areas too. I am pleased that the Secretary of State has made some encouraging remarks about opening up the discretionary fund to allow such colleges as Stratford-upon-Avon college-which are best placed to judge because they are closest to students and their families-to target some of that money on those who most need it.
In the spending review, the Government committed to refocus the support, because all the data show that the £560 million spent on EMA every year was not well targeted. I am pleased that the Secretary of State confirmed in his opening remarks that the Government will target the money towards those with special educational needs. I was a governor of a special educational needs school that was shut down by the previous Government and I know how important it would be to those families if the money was targeted in that way.
I ran a research company for 11 years, and I am passionate about evidence-based strategy. The National Foundation for Educational Research report commissioned by the previous Government, which we have heard about today, found that almost 90% of young people who receive EMA would have completed their education or training course if they had not received it. In an interview, the shadow Secretary of State admitted that some of the money went towards students buying drinks and partying. He therefore probably agrees with me that the money is not well targeted.
In fact let me quote him:
"Yes, they may spend some of it on food and even the occasional time out with friends... But part of being in a college means taking part in the whole life of a college…”
We also know that almost 50% of students are in receipt of EMA. That fact demonstrates that it is not well targeted.
In my old profession, when the research has been done and there is evidence for a strategy, if one does not like the findings, one should not throw them away and go into denial about them. Several Opposition Members have trashed the research because it does not suit their argument. As well as saying that he hoped to pay for the EMA through a reduction in debt, the right hon. Member for Kirkcaldy and Cowdenbeath said that he would pay for it by scrapping post-16 child benefit. I wonder whether that will become Opposition policy.
The Government have demonstrated their commitment, as we heard clearly today, to invest in the young people of our country. They are investing £7 billion in a fairness premium designed to support young people of all ages. The introduction of the all-age careers service will improve the information, advice and guidance that the National Foundation for Educational Research said needed to be improved. The Government are continuing to invest in providing apprenticeships, and have committed to improving the apprenticeship package so that level 3-the A-level equivalent-becomes the level to achieve.
In government, tough choices have to be made. We on the Government Benches have made those tough choices. We have chosen to safeguard spending on the national health service and education. I urge the Opposition, if they want to have a constructive debate, also to safeguard the national health service and education.