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Tories would swap ‘rip-off’ degrees for apprenticeships

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Hazel Shearing,Alice Evans

PA Prime Minister Rishi Sunak is shown how to splice a wire by a field service engineer apprenticePA

The prime minister visited apprentices in Liskeard, Cornwall, on Wednesday

The Conservatives have promised to scrap some university courses in England to help fund 100,000 apprenticeships per year if they win the July election.

The party says it would replace the “worst-performing” degrees that it considers a “rip-off” because of high drop-out rates and “poor” job prospects.

Labour criticised the government over a decline in the number of new apprentices.

It said it would prioritise “gearing” apprenticeships towards young people.

The Liberal Democrats said the government had treated apprentices like “second-class workers”.

The Conservatives said former Labour Prime Minister Tony Blair’s ambition to get half of young people going to university had “led to low-value degrees ballooning”.

In England, the Office for Students (OfS) can already investigate and sanction a university – for example with fines – if it falls below certain standards.

The Conservatives say they would introduce a new law allowing the independent regulator to go further and completely close the poorest-performing university courses.

They would be determined by drop-out rates, job progression and future earnings potential, the party said in a press release.

Speaking at a railway depot in Cornwall on Wednesday, Prime Minister Rishi Sunak added: “University is great and it makes a fantastic option for young people, but it’s not the only option… And what we do know is that there are university degrees that are letting young people down.”

Schools Minister Damian Hinds told BBC Radio 4’s Today programme there had been a “huge increase in quality” in apprenticeships under Conservative governments. Now was the time to “make sure we’re maximising the available opportunities for young people” and supporting businesses with the new scheme, he added.

Mr Hinds said it would not be “right or fair” on current students to say which courses his party considered to be “rip-off” degrees, and said it varied by individual courses rather than by subject.

“Take computer science – you get earnings outcomes from young people studying computer science degrees which will range from £18,000 to £80,000.”

A graphic which reads 'more on general election 2024'

The Conservative Party estimated that the government would save £910m by 2030 if it scrapped courses that taught 13% of students.

It said this was because the taxpayer “offsets” student loans when graduates do not earn enough money to pay them back. The logic here is that removing courses that lead to lower earnings would result in less unpaid debt.

It said its savings would allow the government to invest in 100,000 more apprentices per year by the end of the next Parliament.

The Conservatives’ calculations are based on the assumption that 75% of the students who would have enrolled on those courses would go into employment or apprenticeships instead.

However, there is no limit on the overall number of students that universities in England can admit – so universities could recruit students to other degree courses if some were closed.

The Institute for Fiscal Studies said this meant it was “unclear” whether savings from scrapping “low-value” courses would be large enough to fund the Tories’ expansion plan.

Birmingham City University (BCU) vice-chancellor, Prof David Mba, said the prospect of more apprenticeships was “great” but he did not want that to be at the expense of university courses.

He said the idea that a degree was a rip-off if it did not reach a minimum earning threshold was “bonkers”, particularly for creative subjects.

“Let’s look at my Royal Birmingham Conservatoire. We train musicians, pianists, over three years; they end up with a degree and it will take them probably a while, as a creative out freelancing, to build up a career and to reach certain earning levels that might be commensurate with what the government think it should be,” he told BBC News.

Birmingham City University Prof David Mba smiles at the cameraBirmingham City University

Prof David Mba has 1,500 degree apprentices at Birmingham City University

Prof Mba said many of his students commuted from deprived parts of the West Midlands, and that BCU’s courses – including its degree apprenticeships – offered “social mobility”.

Sabeeha Anium, who studies computer science at BCU, said her degree was “not a rip-off” as she “gets to learn different things” every day.

Speaking to the BBC on her lunch break, she added: “Every single degree is valuable.”

Aaryan Shabbir, who is on the university’s accelerated two-year digital marketing course, said he would welcome seeing more apprenticeships because of concerns around student debt and finding a job post-degree.

He added: “If I’d [known] more about apprenticeships I would’ve done an apprenticeship.”

BBC/Hope Rhodes Sabeeha Anium smiles at the cameraBBC/Hope Rhodes

Sabeeha Anium studies computer science at Birmingham City University

The Association of Employment and Learning Providers welcomed the announcement and said it hoped other political parties would “match this additional funding”.

Chief executive Ben Rowland said: “Whichever party finds itself in government, there will need to be a commitment to encouraging more employers [to] offer apprenticeship opportunities.”

Neil Carberry, chief executive of the Recruitment and Employment Confederation trade body, said the announcement was “using apprenticeships to denigrate university courses, when we need both to flourish if we’re going to grow”.

Apprenticeships are funded partly by the taxpayer as well as by the apprenticeship levy, which is essentially a tax paid by bigger businesses. Those firms, as well as smaller ones, can access the cash to spend exclusively on training apprentices.

Mr Carberry said the levy made apprenticeships more expensive to deliver – particularly lower-level apprenticeships aimed at younger people – so firms were better off if they did fewer of them.

He said while higher-level apprenticeships were replacing degrees for some people, they did not help people who would not have gone to university and needed a different route to skilled work.

Apprenticeship dropout rates in England are about one in two.

Just over half (54.6%) of apprentices completed and passed a final assessment in 2022-23 – well below the government’s 67% target by the end of 2024-25.

Asked about the dropout rate, Mr Hinds said: “It is true that some young people start an apprenticeship and then they don’t [finish it], and then they take a different turn in their career. When they do that, they’ve accumulated of course skills and experience in that job, and they’ve been earning.

“That has long been true in apprenticeships.”

Labour’s shadow education secretary, Bridget Phillipson, said the announcement was “laughable” because the Conservatives had “presided over a halving of apprenticeships for young people”.

She reiterated her party’s promises to introduce technical excellence colleges aimed at training workers for local industries, and to reform the apprenticeship levy into a “growth and skills levy”, which the party says would allow businesses to spend up to half of their levy payments on “more flexible training courses”.

Munira Wilson, education spokeswoman for the Liberal Democrats, said the Conservatives had “broken the apprenticeship system” and “urgent reform is needed”.

“The shockingly low pay for those on apprenticeships will remain, doing nothing to encourage more people to take apprenticeships up or tackle soaring drop-out rates,” she said.

Additional reporting by Branwen Jeffreys and Hope Rhodes.



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Keir Starmer hails historic Labour victory as Conservatives sink to worst-ever result

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Sir Keir Starmer has declared a historic Labour victory in Britain’s general election, urging the country to embrace “the sunlight of hope” as he headed for a huge House of Commons majority of about 180 seats.

Outgoing prime minister Rishi Sunak conceded his Conservative party had suffered a devastating defeat, as it sank to its worst-ever result. The Tory vote was decimated by Nigel Farage’s populist Reform UK.

Labour is set to win 413 House of Commons seats out of 650, according to a Financial Times projection that takes into account the 13 seats yet to declare as of 7.25am. The Tories were projected to slump to 122.

But Starmer will formally become Britain’s new prime minister knowing that Labour’s public support is shallow.

The party was set to win power with 34 per cent of the national vote, the lowest-ever winning share and only 10 percentage points higher than the Conservatives.

For most of the election campaign, polls had put Labour 20 points ahead.

“We can look forward again,” Starmer told party activists at London’s Tate Modern at 5am. “Walk into the morning — the sunlight of hope, pale at first, but getting stronger through the day.”

Labour last won an election under Sir Tony Blair in 2005.

In a highly symbolic moment, former prime minister Liz Truss was among the big Tory names to lose their seats. Her 49-day premiership, and the economic havoc it spawned, contributed to the Conservative meltdown.

The party’s performance is a personal triumph for the former chief prosecutor, who became Labour leader in 2020 after the party’s worst postwar election defeat. His victory is similar in scale to Blair’s 1997 Labour landslide.

But the party’s success was delivered on a vote share that was a much smaller share than the 40 per cent secured by leftwing Labour leader Jeremy Corbyn in his 2017 general election defeat.

Labour won scores of seats because of the rise of Reform UK, which split the rightwing vote, punishing the Conservatives under the UK’s first past the post electoral system.

“This looks more like an election the Conservatives have lost than one Labour have won,” pollster Sir John Curtice told the BBC.

Speaking at his count in Clacton, Reform’s leader Nigel Farage said his party would come second in swaths of seats as well as securing a “bridgehead” in parliament, adding: “This is the start of something that is going to stun all of you.”

Turnout was on course to be about 60 per cent, close to a record low, suggesting general public dissatisfaction with mainstream politics.

Starmer admitted that he faced an immediate task of reconnecting mainstream politics to voters. “The fight for trust is the battle that defines our age,” he said.

As of 7am, Labour had secured 34 per cent of the vote, Conservatives 24 per cent, Reform 14 per cent and Liberal Democrats 12 per cent.

By that time Labour had won 409 seats, the Conservatives 117, the Lib Dems 70 and Reform four.

The centrist Lib Dems’ tally smashed the party’s modern-era 62-seat record in 2005, as it made big gains in the Tory “blue wall” of well-heeled seats in the south of England.

The Scottish National party was behind Labour in Scotland with just eight seats, delivering a hammer blow to the party’s dream of securing independence.

The results confirmed the overwhelming sentiment reported by candidates from all parties that Britain wanted “change”. Outgoing chancellor Jeremy Hunt, who narrowly held his own Surrey seat, called it a “crushing defeat”.

But Hunt added that Starmer and shadow chancellor Rachel Reeves were “decent people and committed public servants who have changed the Labour party for the better”. He urged them to reform the NHS, adding Labour might be better placed than the Tories to achieve that goal.

Grant Shapps, defence secretary; Penny Mordaunt, leader of the House of Commons; Gillian Keegan, education secretary; Sir Jacob Rees-Mogg, former cabinet minister; and Alex Chalk, justice secretary, were among the high-profile Tory casualties on a night of Tory desolation.

Corbyn held his Islington North seat, standing as an independent, while George Galloway, the leftwing pro-Palestinian MP for Rochdale, lost his seat to Labour.

But Labour lost two seats — including one held by shadow cabinet member Jonathan Ashworth — to pro-Palestinian independent candidates, an indication of how Starmer’s position on the Israel-Hamas war has hurt his party among many Muslim voters.

The Green party also won all its four target seats in the general election, quadrupling the number of MPs it will send to Westminster and bringing its total in line with Reform UK.

Under 14 years of Conservative rule, five prime ministers presided over economic austerity, Brexit, a pandemic and an energy price shock, while frequently engaging in bouts of civil war. “We forgot a fundamental rule of politics,” Shapps said. “People don’t vote for divided parties.”

Starmer becomes only the seventh Labour prime minister in the party’s history, and his victory is the first since 2005 for the centre-left party. Labour last ousted the Tories from power in 1997.

He will move into 10 Downing Street on Friday and immediately form his cabinet, with an instruction to ministers to quickly deliver policies to jolt Britain out of its low-growth torpor.

An exit poll forecasting the Labour landslide indicated that Starmer’s avowedly pro-business agenda had paid off, as Labour bucked international political trends. Far-right parties have performed strongly in recent European and French elections, while Donald Trump is leading in polls for the US presidential race.

Chancellor-in-waiting Reeves has said she hopes investors will now see the UK as a “safe haven”.

Starmer has promised to work with business to stimulate growth, with an agenda that includes planning reform and state investment in green technology. Labour will also pursue a traditional agenda of reforms to worker rights.

For Sunak, was a personal disaster. He chose to hold an early election — against the advice of his campaign chief Isaac Levido — and ran an error-strewn six-week attempt to turn around his party’s fortunes.

The party’s projected total of 122 seats is lower than the party’s worst-ever result of 156 in 1906. Starmer’s expected seat haul is close to the 418 seats won by Tony Blair in his 1997 landslide victory.

Defeats for Tory cabinet members including Shapps and Mordaunt has reduced the cast list of potential contenders for the party leadership if, as expected, Sunak stands down.



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Democratic donors say they won’t finance party until he drops out

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U.S. President Joe Biden walks to deliver remarks after the U.S. Supreme Court ruled on former U.S. President and Republican presidential candidate Donald Trump’s bid for immunity from federal prosecution for 2020 election subversion, at the White House in Washington, U.S., July 1, 2024. 

Elizabeth Frantz | Reuters

President Joe Biden is facing an uprising from some his own party’s wealthy donors, including an heiress to the Disney family fortune, who say they will no longer fund the Democratic Party until Biden steps down following his disastrous debate performance.

Abigail Disney, the granddaughter to Roy O. Disney, who cofounded The Walt Disney Company, told CNBC on Thursday that she plans to withhold donations to the party she has funded for years until Biden drops out. The president has said he has no plans to withdraw from the race, despite calls for him to do so.

“I intend to stop any contributions to the party unless and until they replace Biden at the top of the ticket.  This is realism, not disrespect. Biden is a good man and has served his country admirably, but the stakes are far too high,” Abigail Disney said in a lengthy statement to CNBC. “If Biden does not step down the Democrats will lose. Of that I am absolutely certain. The consequences for the loss will be genuinely dire.”

The Democratic Party at large has been in a state of panic since Biden struggled to perform in the debate against former President Donald Trump last week. Rep. Lloyd Doggett, D-Texas, called on Biden to drop out of the race, suggesting the debate performance proved to voters that the president is incapable of taking on Trump and unable to overcome his distance in the polls.

A New York Times/Sienna College poll taken after the debate showed Biden behind Trump by 6 percentage points among likely voters.

Representatives for the Biden campaign did not return requests for comment.

Abigail Disney has been a longtime supporter of Democrats. She gave $50,000 to the Jane Fonda Climate political action committee in April, according to a Federal Election Commission filing. The PAC has given $35,000 to Democrats running for congressional seats, according to data from OpenSecrets.

Disney gave $150,000 in 2014 to Planned Parenthood Votes, a PAC affiliated with the health care nonprofit, according to OpenSecrets. That PAC this election cycle has spent over $400,000 supporting Democrats, including $26,000 for Biden.

Disney pointed to Vice President Kamala Harris as a solid alternative to Biden, arguing she’d be able to defeat Trump.

“We have an excellent Vice President.  If Democrats would tolerate any of her perceived shortcomings even one tenth as much as they have tolerated Biden’s (and let’s not kid ourselves about where race and gender figure in that inequity) and if Democrats can find a way to stop quibbling and rally around her, we can win this election by a lot,” Disney said.

And she’s not the only one pausing gifts until Biden steps down. Gideon Stein, the president of the Moriah Fund, said he’s decided to pause planned donations of $3.5 million, earmarked for nonprofits and political organizations aligned with the presidential race.

“Joe Biden has been a very effective president, but unless he steps aside my family and I are pausing on more than $3 million in planned donations to nonprofits and political organizations aligned with the presidential race, with the exception of some down ballot work,” Stein said. “Virtually every major donor I’ve talked to believes that we need a new candidate in order to defeat Donald Trump.”

Karla Jurvetson, a philanthropist and major Democratic donor, hinted as recently as Tuesday in a private donor call that she agrees with the sentiment on pausing donations until Biden steps down and could end up making such move, according to a person familiar with her remarks. The person was granted anonymity in order to speak freely about a private conversation.

A spokesman for Jurvetson did not return repeated requests for comment.

Jurvetson is among the top 50 donors this cycle across the country, donating over $5 million to Democrats, according to OpenSecrets. She’s given over $200,000 to the Biden Victory Fund this cycle, according to FEC records.

Jurvetson gave over $30 million to Democrats in 2020, according to the data.



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Civics are becoming a 21st-century business skill

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The Fourth of July is a day typically filled with food, festivities, and fireworks in the U.S., as our nation celebrates the passage of the Declaration of Independence in 1776. But this day commemorates something else, too.

Our celebration of Independence Day is an opportunity to reflect on our country—the progress we have made and the work we must still do to strengthen our democracy and communities as we look toward the future.

Like a successful business, democracy only works when all of its components function well. The very skills that formed this great experiment are the same skills that spark the inspiration and innovation necessary for breakthrough ideas and continued economic growth. In other words, civics is a 21st-century business skill.

Critical thinking, problem-solving, negotiation, curiosity, adaptability, shared risk-taking, and other so-called “soft skills” are increasingly called “durable skills” because there’s nothing soft about them. In fact, a recent LinkedIn survey found that nine out of 10 global executives say they are more important than ever in the workplace.

Collaboration and shared risk-taking

in government, facilitating and making decisions requires people to work together. Whether it’s running a polling station on Election Day or serving on a municipal committee, the path to getting things done includes working with others who may hold opinions and ideas that are quite different from your own.

While our neighborhoods, houses of worship, schools, and other places where we gather with others may be homogenous, in the workplace, we are likely to encounter people who are different from us.

When team members with varied opinions and perspectives can work respectfully and effectively together, organizations win. Companies and teams adept in durable skills can be expected to deliver greater employee morale, improved product service or quality, and increased innovation, to name a few.

Defusing conflict and solving problems

Failure to understand how our government works is preventing people from finding common ground on basic issues. This lack of knowledge foments division, frustration, and ultimately, incivility and an inability to communicate effectively with others, especially those who see the world differently.

Most Americans believe the nation’s tone is uncivil (58%). However, when people have a shared understanding of organizations and processes, they can listen to others’ arguments and make strong rationales of their own. In doing so, they can better use reason to compromise and manage conflict.

Honing negotiation skills

Think about the way legislation is often crafted: Someone has an idea for change. Others may disagree. In an ideal world, they discuss their differences, find common ground, and draft legislation made stronger by a range of viewpoints.

Increasingly, managers are concerned about their team members’ unwillingness to compromise and inability to sit together and come to an agreement. By many accounts, our founding fathers held wildly differing opinions and argued fiercely. However, they were able to reach compromises that became our nation’s foundation.

Training critical thinking

While sometimes met with chagrin, jury duty is one of the most important ways citizens participate in our system of governance.

Being a good juror requires weighing evidence, questioning our own preconceptions, and asking good questions. These are the same critical thinking skills necessary in making key organizational decisions.

Building leaders

Understanding and participating in how our government is run teaches us how to operate in complex systems, navigate change, and use good judgment and reason to reach a goal. In short, civic engagement builds leaders who can apply those skills in myriad ways, including in the workplace.

Americans are eager for employers to help build bridges, create healthier discourse, and strengthen cooperation in the communities they serve. Eighty-two percent of Americans believe that businesses can play a role in bringing our country together, and nearly 75% of voters agree that businesses have a responsibility to protect our economic system and national environment.

Businesses can take small yet meaningful steps to boost civic engagement. For example, employers may offer their employees time off to serve as nonpartisan poll workers during local, state, and national elections, addressing a critical shortage across America. Or they can support employees selected for jury service by providing resources to help them prepare for their duties. They can also provide educational experiences that reintroduce employees to civics basics, empowering them to learn more about how our government works and how they can meaningfully participate. The U.S. Chamber of Commerce Foundation runs one of several such initiatives that help employers enhance civic skills within their teams.

As we prepare to celebrate Independence Day, now is the time for the business community to commit to elevating civics education and skills in the workplace.

More must-read commentary published by Fortune:

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.



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