HC Deb 18 March 2004 vol 419 cc37-40WS
The Secretary of State for Education and Skills (Mr.Charles Clarke)

In his Budget statement yesterday, my right hon. Friend the Chancellor of the Exchequer set out measures to ensure stability for education, children's services and skills and the continued progress across the Department's agenda that is crucial to the economic and social well-being of the country.

Education expenditure in England will grow by an average of 4.4 per cent. across the Spending Review period: that is by 6.0 per cent. in 2005–06; 3.6 per cent. in 2006–07 and 3.5 per cent. in 2007–08. The tables below show the plans for the Department's Expenditure Limit and local authority provision for education and children's social services; and plans for total education spending in England over the Spending Review period.

£million 2005–06 2006–07 2007–08
Departmental Expenditure Limit 31,105 32,905 35,153
Local Authority Formula Spending Share Education 27,963 29,863 31,663
Children's FSS 4,016 4,316 4,516
£million 2005–06 2006–07 2007–08
Total Education Spending (England) 56,529 60,122 63,910
As a result of this settlement, education spending in the UK will be 5.6 per cent. of GDP in 2007–08, up from 5.4 per cent. in 2004–05.

In every area, investment will be accompanied by reform.

Children

Over 1.6 million children have benefited from free part time nursery education for three and four year olds; and 400,000 children and their families in deprived area have been helped by 524 Sure Start centres.

As a result of this settlement, the number of children's centres will rise to 1,700 by 2008, covering all 20 per cent. of the country's most disadvantaged wards. We will also announce in due course an expansion of childcare places, family support services, and an expansion of extended schools, which bring together education, health, children's social services and childcare.

This settlement will provide the funding necessary to address the agenda set out in the "Every Child Matters: The Next Steps", including the establishment of Children's Trusts to develop in each locality integrated services for children and families and improved care and life chances for children in care.

Schools As a result of the Government's class size pledge, 350,000 five, six and seven year olds are no longer in classes of 31 or more. There are around 25,000 more teachers and 80,000 more support staff than in 1997. In 1997, half of all 11 year olds went to secondary school unable to read, write and count well. Now it is a quarter. And the international PIRLS study in March 2003 showed that our 10 year olds are the third best readers in the world. This settlement will enable primary schools and teachers to continue to raise standards of literacy and numeracy supported by workforce reform and the recruitment of more teaching assistants.

In 1997, just 45.1 per cent. of pupils got five good grades at GCSE. Last year it was 52.9 per cent. And it is rising fastest in our toughest area—pupils in Excellence in Cities areas are improving at more than twice the rate of pupil everywhere else.

Half of all secondary pupils are now taught in specialist schools—there were just 257 specialist schools in 1997. And they are getting better results—56.7 per cent. of pupils in specialist schools get five good grades at GCSE. This settlement will continue the drive to achieve excellence and to narrow the gaps in attainment between schools and between pupils within individual schools. It will make a reality of our commitment that every school that meets the standard will have the opportunity to gain specialist status; and will allow a continued expansion in the number of academies.

The resources will also enable us to respond to the recommendations of the Tomlinson report, including ensuring that education equips young people for the world of work.

Over the spending review period total Departmental capital spending will rise from £3.85 billion in 2004–05 to £6.78 billion in 2007–08. This will ensure that, through our Building Schools for the Future programme, by 2015 every secondary school can be refurbished or rebuilt with world class technology in every school and the best state of the art learning in every classroom.

Accompanying this new investment, we will develop a new relationship with schools to help deliver personalised learning tailored to the talents and needs of every pupil, underpinned by a strengthened accountability framework, a simplified school improvement process and improved information and data management.

Higher Education Publicly planned funding for higher education has risen dramatically under this government. Expenditure on science and research will have increased in 2005–06 by £1.25 billion a year compared to 2002–03—around 30 per cent. in real terms. The settlement will allow investment in the sector to continue to grow in real terms. It will enable the Government to advance progress towards its target for 50 per cent. participation in higher education and at the same time maintain real terms student funding per head. It will provide the resources needed to deliver the reforms set out in our White Paper "The Future of Higher Education": improving and rewarding excellent teaching; increasing investment in science and research; enabling more people to enter higher education; and supporting those from disadvantaged backgrounds by restoring a grant worth up to £2,700 in 2006, and abolishing up-front tuition fees for all students.

Lifelong learning

In December 2003, 255,000 young people were studying Modern Apprenticeships, compared with just 75,800 in 1997. The number of working age people in England with no qualifications in 1985 was 10.5 million. In 2003 it was 4.6 million. Between 2001 and 2002 over 300,000 adults were helped to raise their numeracy and literacy skills.

The settlement will provide for new measures—through the New Deal for Skills—to tackle the UK's large number of adults with low skills in the workforce. It will offer, in job centres, for the employed and well as unemployed, a one-stop skills service with access to personal skills advisers and training. By 2007 1.5 million adults will have improved their basic skills as part of our longer term aim of ensuring that by 2010 that the number of adults in the workforce who lack NVQ2 or equivalent qualifications is reduced by at least 40 per cent.

We will take forward the measures set out in our Skills Strategy to meet the needs of employers, employees and individual learners; including a key role for the new Sector Skills Councils.

Efficiency The front-line will al so see resources freed up and cost pressures reduced through efficiency gains worth at least 2.5 per cent. each year over the Spending Review period. These will be delivered through reducing administration costs, reforming procurement and unlocking productivity gains from technology and workforce improvements. For example: There will be a 31 per cent. reduction in Department for Education and Skills headquarters staff by 2008–1,460 fewer staff. On procurement, we will take a more pro-active role to help schools and colleges achieve savings through collaboration and wider agreements—the recent agreement with Microsoft which reduces the cost of software to schools by £46 million over three years shows what is possible. We will work with our partners in children's services, education and training to ensure that resources—people and money—can be used as effectively as possible, for example through reduced bureaucracy and workforce reform. The Government's aim is to achieve excellence in standards of education and levels of skills, and to give everyone the opportunity to develop their learning. This settlement provides the necessary resources to support and deliver these objectives.