What recent representations he has received on the education standard spending assessment for Cheshire. [75574]

I have received a number of representations from Cheshire welcoming the £13.8 million increase in standard spending assessment and the fact that, this year, the revenue support grant matches that increase. That was never true of such allocations under the previous Government.

Although I welcome any increase in real terms in education expenditure in Cheshire, does the Secretary of State accept that the present flawed methodology disadvantages shire counties such as Cheshire—compared with London and the south-east—in respect of area cost adjustment and pupil weighting? Will he introduce a reform of that methodology rather than leaving it to fossilise for a further three years?

I can promise that my right hon. and hon. Friends in the Department of the Environment, Transport and the Regions will not leave the methodology to fossilise for 18 years, and that will make a difference. The area cost adjustment and the additional educational needs element are serious issues and we accept that there is a requirement to get them right. The problem was that the Local Government Association and others could not come up with an agreed programme of change in time. I would very much welcome the hon. Lady's contribution in that matter.

If he will make a statement on measures to tackle the backlog in the school building programme. [75575]

The Government have made significant extra resources available to help local authorities and school governing bodies tackle the backlog in the school building programme. In July 1997, we introduced the £1.085 billion new deal for schools. The comprehensive spending review has provided an additional £1.5 billion for schools capital, and a further £660 million to support private finance initiative projects. In total, we estimate that some £5.4 billion will be available for investment in school buildings over the next three years. In respect of this year's new deal for schools round, my right hon. Friend the Secretary of State hopes to be able to announce the outcomes before Easter.

I thank my hon. Friend for that response. Having seen the backlog build up in Norfolk over 20 years, I appreciate the Government's making that matter a priority. Does my hon. Friend agree that it is important that, as we enter the next millennium, our teachers should feel that their workplaces are suitable for it? The bids received by my right hon. Friend the Secretary of State will include many categories, but does my hon. Friend agree that we have been making do with mobile classrooms in Norfolk for far too long? He will be aware that, at Smithdon county high school in Hunstanton, far too many teachers have had mobile classrooms as their workplace for far too long. Will he ensure that careful consideration—and, it is to be hoped, a positive answer—are given to the part of the £32 million bid for the county of Norfolk that relates to that problem?

My right hon. Friend will have heard my hon. Friend's reference to the school in Hunstanton. I acknowledge that standards are driven up by good-quality provision of school building and that teachers need to be able to teach in good, healthy working environments. We inherited a substantial backlog from the previous Government and we are now investing at a much higher level than they ever did; by the end of this Parliament, we shall be investing twice as much every year as they invested in any year during which they were in power.

The additional money for education is appreciated throughout the United Kingdom. Does the Minister agree that many public bodies, including education authorities, own a great deal of property and assets which are underused and could be sold to raise funds? Will he encourage the raising of money to be reinvested in new building and to upgrade the school estate?

I agree with the hon. Gentleman; that is why we are encouraging local education authorities to develop asset management plans in which they consider all the schools in their area and make a planned assessment of the maintenance, replacement and new investment that is needed for each school. Those plans will set out locally agreed priorities for capital expenditure and the approach proposed for tackling them. For that reason, we are holding consultations on the overall capital strategy and have provided a small amount to help local education authorities to develop those plans. We believe that that will lead to rational decisions on resources and better value for money for the teachers and pupils in the constituencies that we all represent.

What is his assessment of the effectiveness of the literacy hour in primary schools; and if he will make a statement. [75576]

Almost all schools are now teaching the daily literacy hour, which is having a positive impact on teaching methods and organisation of lessons. The literacy hour has already raised standards in schools that took part in the pilot national literacy project. Evaluations of the project, published in December by Ofsted and the National Foundation for Educational Research, show that, in less than two years, children who started some way below the national average in their reading scores made progress of between eight months and a year above what would normally be expected.

I thank the Minister for that reply. Is she aware of the Scottish Office-funded research into synthetic phonics? That research showed not only that children taught by that method were nine months ahead in their reading ability but that less than 10 per cent. had reading ages more than 12 months behind their chronological age, as compared with nearly a third of children taught by the analytical phonics method? Does the Minister agree that, in this era of national targets and nationally agreed teaching strategies, the Government have a duty to ensure that classroom teachers are aware of the most recent research so that they can improve and develop their teaching methods and achieve the demanding targets for success in reading at key stage 2?

I think perhaps we should not pick arguments with our Scottish colleagues when no arguments exist. My hon. Friend's comments show that the Government have succeeded in getting phonics accepted as a good way of teaching children to read. That is the focus of her question. We shall always reflect on the evidence about which phonics are best. However, synthetic and other phonics are included in the national literacy strategy that is taught to children in England.

Does the Minister agree that the best step that could be taken to improve literacy in primary schools would be to publish the results of the tests that children take at seven as well as the average amount of money that is spent on each child and the average class size in each school? We could then see whether there is a correlation between money spent, class sizes and performance or whether the correlation is between performance and the persistent use of out-dated self-discovery teaching methods in too many schools.

One wonders why the Conservative party did not do any of those things when it was in power.

I wasn't here.

The hon. Gentleman will not be here much longer if he tries to wriggle out of any responsibility for the previous Government's actions.

I have attended four or five literacy hours, and already my spelling is showing some improvement—although there is no room for complacency. More important, I have found that children enjoy literacy hours, which are becoming a popular feature of primary school life. Does the Minister have any observations to make at this stage about the applicability of the literacy hour—particularly the reading of the text at the beginning—to the most able children, who may want to turn to the next page or even the next book, and to those who are struggling with literacy and who may need more intensive support on a one-to-one basis?

I am grateful to my hon. Friend for those comments. My experience of visiting primary schools in September was that children welcomed the literacy hour. Children like the sense of order, the pattern and the pace, and they know that they are improving. I take seriously my hon. Friend's points about our most able children and those who learn less quickly. He will be pleased to hear that the evidence demonstrates that all children, whether the most able or those with special needs, make progress under the national literacy strategy. That is good news for all children.

The Minister will know that that is not the evidence of the recent survey by the Association of Teachers and Lecturers, which revealed that 80 per cent. of teachers questioned believed that the literacy hour was not helping pupils with special educational needs and that 60 per cent. thought that it was not helping especially gifted children. Do not the questions of the hon. Members for Croydon, North (Mr. Wicks) and for Slough (Fiona Mactaggart) provide two examples of the rigidity and inflexibility of the hour, which does not properly take account of synthetic phonics teaching methods or the needs of gifted children and those with special educational needs?

The hon. Gentleman must decide when he would prefer to believe. If he wants to believe the evidence of the ATL and teacher unions, let him do so, but I would sooner believe the evidence of Ofsted, NFER and independent research, which demonstrates that the literacy strategy works for all children. That is the bottom line. The policy is not about what teachers think; it is about which strategy the evidence demonstrates works with pupils. Pupils' reading standards are crucial.

How many primary schools will be acquiring new classrooms in the current academic year. [75578]

That information is not collected centrally, but we expect that the key stage l class size initiative will fund additional classrooms at 600 schools in the current financial year and at a further 909 schools in 1999–2000. Funding continues to be available to meet agreed local priorities for school premises including new classrooms through the annual capital guidelines, the new deal for schools and local education authorities' own funds.

I thank the Minister for that answer. He will know about, and not be surprised by, the huge welcome in Sheffield for the Government's funding for the reduction in class sizes to 30 in primary schools, which is beginning to be put into practice. He will also be aware that the money is scheduled to fund 45 extra teachers—which is most welcome—and three capital allocations for extra classrooms, one of which, at Marlcliffe, has been particularly welcomed in my constituency. However, consultations with primary school head teachers in my constituency have revealed that many want to reduce class sizes to 30, but will experience huge difficulties because of the shortage of rooms to accommodate children. The class size pledge has a knock-on effect on classrooms, not only on the staff who teach the classes.

I thank my hon. Friend for her remarks. I know what a welcome our programme has received in Sheffield and elsewhere in the country. I am particularly aware, as any Minister in my Department must be, of the vital contributions being made in Sheffield. I want to highlight the number of extra teachers who have been employed as a result of the initiative to reduce class sizes. On top of the extra 1,500 teachers in 1998–99, there will be an extra 2,500 teachers from next September to help to reduce class sizes. That is a long-term programme. I hope that my answer addresses the points that my hon. Friend made about the need to keep striving to reduce class sizes and raise educational standards.

Does the Minister recall that before the last general election, the right hon. Member for Sheffield, Brightside (Mr. Blunkett), now the Secretary of State, was told that the cost of meeting the class size pledge would be £60 million? Is the hon. Gentleman aware that the budget now stands at £627 million and rising, which is 10 times more than the original estimated cost?

The hon. Gentleman must have misheard what I said. I said that we have spent enough money on the initiative to employ an extra 1,500 teachers in 1998–99 and an additional 2,500 in 1999–2000 from September, which more than meets his point. We have allocated resources; we have fulfilled our pledges. I should be a little disturbed if the Liberal Democrats joined the Conservatives in taking the view that class size had no impact on educational performance.

One of the schools in my constituency that will be receiving a new nursery classroom is Ridge Meadow county primary. The building of the new classroom has been delayed because the school is in special measures. However, I am delighted to say that the hard work of Sue Robertson, the governors and all the teachers has meant that the school is now out of special measures. Will my hon. Friend assure me that, as soon as the inspectors' report hits his desk, he will quickly give Medway education authority and the school the green light to build the new classroom, to celebrate everyone's hard work in raising standards and the fact that the school has come out of special measures?

I join my hon. Friend in congratulating everybody associated with the school—the head teacher and the governors—on driving forward to take the school out of special measures. I am glad to say that that is characteristic of a number of schools which have found themselves in special measures. I can give my hon. Friend the assurance that he requests. I shall consider very carefully the specific proposals for new capital spending at the school, and recognise its achievement in reaching this point.

In addition to the provision of classrooms to reduce class sizes in primary schools, how many extra primary school classrooms have been brought into use to accommodate four-year-olds as a result of the Government's policy on early-years education? Will the Minister take this opportunity to accept the figures of the Pre-School Learning Alliance, which show that 1,500 pre-schools have already closed as a result of Government policy, and that more will close because primary schools are being encouraged to take four-year-olds and because extra costs are being imposed on pre-schools owing to the Government's policies on the minimum wage, holiday pay and national insurance?

As a matter of fact, I do not accept the figures of the Pre-School Learning Alliance. In fact, I discussed them in great detail at an event that the alliance organised just a couple of weeks ago. The figures that the hon. Lady has cited are not reliable. I recall that, in my county of Norfolk, the voucher scheme which her Government introduced created exactly the drama and worry about which she is concerned. We are looking—and continue to look—at demand for class size at all ages. We shall continue to review the matter and make statements as appropriate.

What support he is providing to further education colleges to raise standards. [75580]

We are determined to ensure that standards are raised in further education colleges. To sustain that, we established a standards fund of £35 million this year and £80 million next year.

I thank my hon. Friend for his reply. Young people and mature students alike in my constituency are very much looking forward to the planned growth in further education. The Tresham institute, which serves many people in Corby, wants to play its part in raising skills and standards. It is concerned, however, about the pressure on it. As my wife, a senior lecturer at the institute, tells me every Friday when I go home, the institute has made 30 per cent. efficiency improvements in the delivery of further education. Will quality be maintained during such growth, and will the pressure on staff to deliver be too great? Will my hon. Friend assure me that growth will not be at the expense of quality and that the contribution that staff make to delivering that increase in standards will be recognised?

As one who is married to a head teacher, and given that the banning of the subject of education in the household adds to domestic bliss, I sympathise with my hon. Friend. We are very determined on standards. We shall unashamedly maintain pressure on further education colleges. We are intent on widening participation. We have a national target of an additional 700,000 students in higher and further education by 2002. We do not accept that the introduction of more people will lead to a drop in standards.

How much has been spent on the new deal in West Sussex to date. [75581]

To the end of January £206,538 had been brought to account in the West Sussex coastal plain unit of delivery on the new deals for young people and those over 25.

I am grateful for that answer, but is the Minister aware that Employment Service figures show that, in the West Sussex coastal plain unit of delivery, only 68 new-dealers have secured unsubsidised employment? I am sure that the Minister's maths are better than mine, but does he think that that represents good value for money?

Not at all, not least because those 68 people who have got the unsubsidised jobs might well not have done so without the new deal programme and the windfall levy. What the hon. Gentleman does not mention—I am surprised that he does not pay tribute to the achievement of his constituents in this respect—are the other 51 people who have got subsidised jobs through the new deal for young people. Is the hon. Gentleman not including them in his figures? They are in employment; they are in work, earning money. They would have been on the dole under the Government whom he supported.

How many young people in (a) Scarborough and Whitby, (b) North Yorkshire and (c)the United Kingdom have obtained employment through the new deal to date. [75582]

New deal has made an encouraging start and in the North Yorkshire unit of delivery, which covers Scarborough and Whitby, 385 young people have found employment. In Great Britain, 58,500 have found employment.

My constituents and everyone in the country will be pleased to know that 385 people in the North Yorkshire delivery unit have found work. However, may I gently ask the Department whether, in an area such as my constituency, where there is a discrete travel-to-work area and where unemployment is more than 40 per cent. higher than the national average, it would be possible to focus on the actual area where there is most concern? A needs-driven agenda would enable us to do more work not only to give more help to the youngsters who have benefited from the new deal but to extend that to people over 55 who could benefit from it. We welcome the progress that will be made for those people. Many people in my constituency are looking to the Government to deliver in this area. I believe that we can, and I should like to have the statistics to prove it.

I congratulate my hon. Friend on the work that he is doing on behalf of his constituents and I know of the work that he is doing with my colleagues on linking educational standards with employment opportunities. He is right to point out that there are concentrations of unemployment in large units. I know that unemployment is 6.6 per cent. in Scarborough and Whitby, whereas it is 3.3 per cent. in the whole North Yorkshire unit of delivery. Obviously, the programme is designed to meet the needs of people who find themselves unemployed, and the purpose of the new deals, for the young unemployed, the long-term unemployed and—when it comes into being—for those over 50 is to focus on areas of greatest need.

How much taxpayers' money has been spent on each of the young people who have obtained a full-time job through the new deal?

The hon. Gentleman will know that it is far too early to make a rigorous assessment of the cost per job, but he will know that, for the first time, the Government are making a completely transparent and thorough assessment of our investment into all the new deals. We believe at this point that the figure per job is about £1,000.

Will my hon. Friend send a message of congratulation to the Employment Service in Cornwall? Does she agree that it has been particularly successful and innovative as a pathfinder of the new deal?

I congratulate my hon. Friend and the people working in her local employment office on the excellent work that they have done. It is our view that they have been one of the most successful employment offices in finding jobs for unemployed people in that area. It is interesting to note that 18 per cent. more young people are moving off benefit in the pathfinder areas than in the non-pathfinder areas. That is further evidence, for those who still require it, that our new deal for young people is working.

The Minister's complacency about the new deal flies in the face of the evidence. Will she confirm that yesterday's unemployment figures reveal that, since the national introduction of the new deal for young people, unemployment among young people has risen by 22,000, and has risen every quarter? Does she not recognise the plain truth that, in its first year of operation, the new deal is proving an expensive failure?

It is typical of the Opposition—who never did anything to tackle unemployment—to criticise a programme that is demonstrating great success, even in its early days. Unemployment among young people has dropped by 50 per cent. since May 1997. That demonstrates the success of our programme.

What role individual learning accounts will play in the university for industry. [75583]

Many account holders will want to access the advice, guidance and tailored material that the university for industry will provide, precisely because it targets individual companies and the needs of individuals. Today we have launched the development plan for the university for industry. We have announced the board membership, including the chairman, Lord Dearing, and the vice-chairman, Tony Greener, who is chairman of Diaegio plc.

Given the welcome tax incentives for individual learning accounts that were announced in the Budget, what message would my right hon. Friend send to businesses in my constituency and elsewhere to encourage them to contribute to individual learning accounts for their employees?

The message was a strong one: if businesses are prepared to invest in individual learning accounts, neither they nor the recipient will have to pay tax or have it counted for tax purposes against them. There will therefore be a substantial incentive for the individual—and encouragement for trade unions, through their bargaining-for-skills programme and similar initiatives, to make the development of negotiations over skills and the investment in the skills needs of the future a crucial part not merely of modernising our economy, but of their contribution to ensuring the well-being and security of the work force in the years ahead.

We were delighted when the Government accepted the Liberal Democrat proposals for individual learning accounts. We are pleased that they have also rolled out the issue of tax relief for students and their families, and also from employers. Will the Secretary of State tell us, first, whether there will be limits on those contributions; secondly, when individual learning accounts will be available to all students; and thirdly, whether that will mean that, in the payment of tuition fees, money put in by individuals or employers will attract up to 40 per cent. tax relief?

If it's your policy, what are you worried about?

My hon. Friend the Member for Bolsover (Mr. Skinner) puts it succinctly. If it is the Liberal Democrats' policy, I should be asking the hon. Member for Harrogate and Knaresborough (Mr. Willis) the question.

I warmly welcome the recent announcement about individual learning accounts and the way in which they will encourage individuals to take responsibility for their own learning. Will they be available to right hon. and hon. Members and their assistants, and, if so, would my right hon. Friend encourage us to take advantage of them?

I have been hoist by my own petard. Yes, I would encourage all hon. Members to take advantage of them, and I would encourage people to ensure that those who do not have basic skills can take up the scheme in a new and imaginative way. I had better stress once again that individual learning accounts will not be available for diving courses here or anywhere else in the world.

What assessment he has made of the effectiveness of the new deal programme; and if he will make a statement. [755841

The new deal has made an encouraging start. More than 230,000 young people have started on the programme and more than 50,000 have already found jobs. A comprehensive programme of evaluation is under way, much of it being undertaken independently of Government. Four reports have already been published, more are on the way, and we shall release detailed information in May on how each area is doing against core performance indicators.

Has my right hon. Friend noticed that we have succeeded in attracting only about seven Tory Back Benchers to our deliberations this morning, and does he think that there is scope for a new deal programme to reintegrate some Tories back into the world of work?

I know the close personal interest that my hon. Friend takes in the new deal in his constituency, and that is greatly appreciated by all those responsible for the programme locally. As to the challenge of what the new deal could do for the Conservative party, I have always been careful about the claims that I make for the new deal and even I would not suggest that the new deal would be capable of bringing indolent Conservatives into the Chamber, even at this late hour in the morning.

I do not recall seeing the hon. Member for Sunderland, South (Mr. Mullin) in the House last week in the Budget debate on education and employment, or the week before that, and what about the week before when we debated education in schools, when more Conservative Members were present than Labour Members?

No to all of it. First, the hon. Gentleman should use one of his brains at least to apologise to my hon. Friend the Member for Sunderland, South (Mr. Mullin), who was in the Chamber on the occasions to which he referred. Secondly, Lucy has had to be left outside the Chamber today, in case the hon. Gentleman's intemperate remarks should provoke her as they so evidently did during the education debate. Finally, it is not true that those companies have pulled out of the new deal. For example, Marks and Spencer has reported to me positive experience of the people that it has recruited and the progress that it is making on the programme. He is wrong, wrong, wrong.

If he will estimate the number of new classrooms to be provided by September 1999.[75587]

I refer my hon. Friend to my earlier answer to my hon. Friend the Member for Sheffield, Hillsborough (Helen Jackson). We estimate that the key stage 1 class size initiative will fund an additional 600 classrooms in the current financial year and a further 900 in 1999–2000.

I thank my hon. Friend for that answer. In Staffordshire, in January 1998, nearly 8,300 pupils were in classes of over 30; by September 1999, that figure is likely to be under 500. Does he recognise the particular problems of rural schools operating with mixed-age classes in buildings of limited size?

I thank my hon. Friend for her question. The kind of change that she has seen in Staffordshire is happening throughout the country, to the great benefit of educational standards. We are extremely conscious of the importance of the local school to rural communities, such as those in her constituency. Our policy is designed to raise standards in all schools, wherever they are situated. We have made it clear that no child should have to travel an unreasonable distance to school because of the class size limit and we are prepared to consider providing extra funding for an extra teacher when no alternative school is available within a reasonable distance.

Whatever importance is attached to lowering class sizes to below 30, surely it is even more important to reduce the number of children in classes of over 40. Will the Minister confirm the figures from his own Department stating that, in the first year of this Government, the number of children in classes of over 40 doubled? Why has that happened and when will he manage to get the number of children in classes of over 40 in primary schools back to the level that he inherited from the previous Government?

I can confirm that our plans will reduce the number of children in infant classes of over 30 from 485,000 in January 1998 to under 200,000 in September 1999—a drop of over 285,000. By September 2000, we expect fewer than 50,000 children to be in large infant classes. I am not aware of the particular school to which the hon. Gentleman referred, but its budget for the first year of this Government was inherited from the previous Administration. Thanks to this Government, substantial extra resources are going into schools to address precisely the issue about which he is concerned, and all the other issues of educational standards.

May I give credit where credit is due and say how pleased I am that we have such a huge programme for new classrooms and school building programmes, particularly in Staffordshire and in Stoke-on-Trent? I thank my hon. Friend for the £2.5 million under the new deal, which will fund 10 new classrooms at Holden Lane high school in my constituency, where work commences tomorrow.

I thank my hon. Friend for her question. Such improvements are being made throughout the country. I certainly give her an assurance that I will look into the backlog to which she referred, but she was justified in using the words "innovation" and "vision". The fact is that we had 18 years of stagnation, but more resources are now going into building. Teachers' governing bodies are being creative about how those resources can be used to drive up educational standards. I travel around the country a great deal and it is truly inspirational to see what many people are doing with the resources that we have been able to let them have.

What plans he has to help unemployed people aged 25 years and over in employment zones to find employment.[75588]

We aim to have 15 employment zones throughout Britain up and running from April next year, with some 48,000 long-term unemployed people eligible for help. A key innovation in the zones will be personal job accounts, which will, for the first time, bring together funding from benefits, training and employment service programmes.

I thank the Minister for that answer. Could he explain to an old-fashioned sceptic such as me how the new personal job accounts will provide the flexible help needed by the unemployed?

The rules of past initiatives have been rigid and have required that money can be used only for a particular purpose, whereas, under this scheme, the personal adviser, working in conjunction with the long-term unemployed client, will be able to plan a programme of training, work experience, enterprise and self-employment. If people want to be self-employed, the personal adviser will help them to move forward. Pooling funds that have previously be available only in a fragmented way will make a much more coherent and effective programme.

Does the Minister recognise that, contrary to his boast about the Government's policies, especially the new deal, instead of tourism and leisure businesses recruiting many more young people, at a recent trade function for one of the main trade bodies for tourism and leisure, it was revealed that not one business has taken on anyone under the new deal? Does that not show the complete bankruptcy of the Government's policies and the accuracy of what my hon. Friend the Member for Havant (Mr. Willetts) said a few moments ago?

No, it does not. It is more nonsense from a party that did next to nothing to help the long-term and young unemployed, and now cannot come to grips with the fact that the new deal has, according to independent evaluation, made an encouraging start. Tourism, leisure and catering are among those industries recruiting the most people from the new deal. From memory, I think that over a fifth of new deal recruits who are getting jobs are going into that sector.

What is the role of the personal adviser service in respect of disabled people seeking work and training.[75589]

Under the new deal for disabled people, the personal adviser service offers those who are claiming incapacity benefits a client-focused service based on the needs of the individual disabled person. It gives those people access to an extensive range of specialist disability programmes. Personal advisers carry out initial assessments of a client's employability, arrange any specialist assessments that are needed, give advice on benefits and training issues, draw up employment-focused action plans and work with clients to carry them out.

I am delighted with the response from my hon. Friend the Minister, which will meet many of the concerns that have been expressed by people with disabilities who have attended my surgeries. They are fearful that they will be forced into employment that is unsuitable for them, and that training opportunities will not recognise their needs. Personal advisers may not understand their problems of access to employment. Can they have an assurance that personal advisers will be thoroughly trained so that they know the local marketplace and how disabled people can get access to it? Disabled people need to be supported throughout their lives so as to ensure that they have a full opportunity to be citizens and not just people in receipt of benefits.

Training for personal advisers is absolutely crucial, and is professional and individually tailored to ensure that they have the skills that are necessary to help this special group under the new deal. I endorse what my hon. Friend said. We know that, of the 2.6 million people who are on incapacity benefit, 1 million would like to work. It behoves us to try to break down the barriers to employment that far too many disabled people have faced for far too long.

What estimate he has made of the numbers of adults with literacy problems; and what support is being given to them.[75590]

Just over one in five adults—some 8 million adults of working age—have poor literacy skills, according to the 1997 "Adult Literacy in Britain" survey. A wide range of Government programmes offer basic skills provision for adults. By 2002, up to 500,000 learners a year will benefit.

Many hon. Members will be staggered by the information that 8 million adults have basic literacy problems. A number of those people will be the excluded, prisoners, and others with difficulties of all kinds. May I urge my hon. Friend to give as much prominence as possible to the recommendations in the Moser report, and to the individual learning accounts that are to be introduced? The present position is clearly unsatisfactory, and cannot be allowed to continue.

I think that the whole House will appreciate my hon. Friend's concern.

No.

That probably puts the right hon. Gentleman in a minority of one.

If he will make a statement on the Government's policy on the provision of (a) playgroups and (b) nursery classes for early-years education.[75591]

Early-years services are planned in each local authority, so that the maintained, private and voluntary sectors all contribute to planning and providing early-education places for four-year-olds and, increasingly, for three-year-olds. As I announced yesterday, we are providing a further £500,000 in direct help for voluntary pre-school groups and playgroups with short-term financial difficulties. That will enable them to play a full part in the expansion of places.

I welcome the additional funds. In my constituency, despite the council's excellent early-years planning, playgroups and nursery classes in schools have drawn my attention to problems that they are experiencing in filling places. That is directly due to the aftermath of the nursery vouchers free-for-all. Will my hon. Friend keep the situation under review, and ensure that playgroups and nursery classes that are experiencing short-term difficulties have the finance to tide them over?

Because we wanted to escape from the free-for-all, we introduced early-years development and child care partnerships, so that there could be proper planning for places in each local authority area. This year, for the first time, each partnership has undertaken an audit of both supply and demand in its area, so that there can be sensible provision.

In the light of what she has said, will the Minister confirm that she agrees that the contribution of the pre-school playgroups—including the one that services the children of Marsworth, in my constituency, which I had the privilege of visiting last Friday—is just as valuable as the contribution of school reception classes? Given the primacy of personal choice for parents, does the Minister agree that, at no stage and in no way, should any parents feel that they are being pressurised or corralled into sending their children to school reception classes, as distinct from their preferred choice of pre-school playgroups?

Of course we agree—the entire thrust of our policy demonstrates our belief that diversity in provision for children in their early years is absolutely crucial. Over the next three years, we shall be investing £8 billion in providing high-quality and affordable pre-school education, and £8 billion in early education and child care. The important thing is choice for parents, families and children. The choice should be theirs, and not be determined by a producer-led interest. I hope that, in his constituency, the hon. Gentleman will be supporting parents and their children, in ensuring that they are able to choose the setting that best suits children's needs.

If he will make a statement about progress in establishing the university for industry. [75592]

Good progress has been made towards establishment of the university for industry. A three-year corporate plan was recently agreed by Ministers as the basis for future planning. This morning, the university for industry announced its proposals to take forward its development and implementation. It intends to publish a summary of those plans shortly. Lord Dearing, the newly appointed board and Dr Anne Wright—the university for industry's chief executive—will lead that exciting work. The university for industry is on target to launch nationally in 2000.

Does my hon. Friend agree that the university for industry is one of the most positive and innovative projects on the education agenda? Bearing in mind that the official launch is supposed to take place next year, will he give us a bit more detail about the project? For example, will the university for industry basically be a national learning resource centre, a degree-awarding body, or both? To what extent will it use existing academic institutions to provide nationwide access to interactive learning technology in the home and the workplace, and in local schools and libraries?

I am grateful for my hon. Friend's warm welcome—

Surprised?

I am not surprised at all, but very grateful, for my hon. Friend's warm welcome for the institution. The university for industry will not be a degree-awarding institution. It will be more a broker, bringing together existing institutions, and will—through the technology infrastructure—make individuals aware of services, courses and the availability of places. There is a separate UFI organisation for Scotland, and we are working closely with it in co-ordinating its activities.

The Minister will be aware that the Budget Red Book makes it clear that only £5 million is to be allocated to the university for industry, and that any other funds will have to be met out of the budget of the Department for Education and Employment. If Ministers have agreed a corporate plan, will the Minister say how much money has been allocated to the university for industry from within his Department's budget, and from which other budget it has been taken? Will he also explain to the House why, last Friday, when I talked to the training and enterprise council in Cambridgeshire and asked about the university for industry, I was told, "All we have seen is material suggesting that it will happen some time, but no one has told us anything about what it will do in practice"?

Similarly unhelpful and ungrateful comments are made about TECs—the hon. Gentleman should pay no attention to them. He should consider the fact that we have been appointing a board, a chief executive and a chairman—and we are delighted that Lord Dearing has accepted. The sum in the Red Book is for development costs. However, now that the corporate plan has been agreed, provision of £44 million will be triggered. The Red Book also does not show the considerable sums for development—about which, two Question Times ago, the hon. Member for Harrogate and Knaresborough (Mr. Willis) asked me—provided from European Adapt funds.

What proposals his Department has to ensure that young people on the gateway section of new deal have the skills needed to hold down full-time jobs.[75593]

The gateway help for young people includes jobsearch, careers advice and guidance and support with basic skills. There is also specialist help for those who have suffered homelessness, alcohol or substance abuse.

I am grateful to my right hon. Friend for that answer. Does he agree that the gateway phase is vital to enable young people to move from benefit into work? Taking people from a life on the dole and giving them the skills necessary to hold down a job is a crucial building block for the first stage of their career. Will he join me in commending the valuable work done by the new deal advisers in Worcestershire, where the programme has been such a success, in preparing young people for work?

I am pleased to join my hon. Friend in congratulating the advisers and others working on the new deal in his county. They, too, will appreciate the active support that he has given the new deal. He is right to say that the gateway has been an outstandingly successful feature of the new deal. The continuity of support from personal advisers is greatly welcomed by clients and employers. The extra money made available in the Budget will enable us to develop pre-employment involvement in training on the part of employers and other still more intensive help to ensure that even the hardest to help get the maximum benefit from the gateway, thereby enabling them to move into productive employment.