Bridget Phillipson's speech to North East Chamber of Commerce

Speech delivered by Education Secretary Bridget Phillipson at the North East Chamber of Commerce President's 1815 Lunch in Sunderland

This is an organisation that has stood the test of time. Because 1815 is not only the year the Battle of Waterloo was won.

Perhaps more importantly even than that, it was the year that the Chamber was established.

So I want to thank the Chamber for centuries of work giving the businesses of this region a voice.

And I have to say, it's always so nice to be here, back home in the North East. I grew up not far from here, just several miles down the Wear to Washington.

That's the community I'm from. Where I was born, where I went to school, where I made my first friends.

I have spoken about how during that time there were ups and downs where I grew up. There was deprivation and there was crime in our community.

But there was kindness too. And resolve to make the most of things.

And I saw those sharp contrasts when I came back home to the North East after university.

I worked in the women's refuge here when I was in my early 20s.

And in those years I saw some of the worst things you could ever see, the impact of the worst violence and abuse.

But I also saw the best of our community too.

I saw resilience, strength.

I witnessed so many women rebuild their lives with dignity and determination.

And it was a real honour to be able to help them do it.

So when I think about home, I think about community.

I reflect on what that word means for all of us.

Not just as a proud native of the North East, but as a proud member of this government.

Because what we want to see as this government is to grow strong communities across the North East and across this country.

Communities filled with optimism and opportunity.

But how do we do that? What does a community need?

You won't be surprised to hear me as Education Secretary say that every good community needs a brilliant school.

A brilliant college. An engaged university not too far away.

But it also has to provide proper support for families too. Our government funded childcare entitlement. Our school-based nurseries.

Our Best Start Family Hubs.

But a strong community full of opportunity needs more than that.

It needs great employers, it needs all of you here, in this room.

Because all of you in this room are drivers of growth and opportunity.

In manufacturing. Logistics. Hospitality. Tourism. Tech. Energy.

Education. Finance. Construction. Defence. Social enterprise. Healthcare, you name it.

Here in this room we have the diversity of enterprise that makes our region great.

And you are crucial to two of this government's missions – growth for the British economy, and opportunity for the British people.

So I want to say a big thank you for the role you all play in your local communities.

And I want to thank you for working so closely with the North East Combined Authority in that endeavour.

Our mayor Kim McGuiness is doing a fantastic job creating opportunities for young people.

And I know so much of this region's good work runs through the local skills improvement plans.

Because to play your vital role as good businesses in the communities that you serve you need a skills system fit for purpose, a system that works for all of  you.

One that is both comprehensive and cohesive.

One that focuses on actual skills needs – both locally and nationally.

Because I know that there is nothing more frustrating for you than being ready to expand, ready to contribute to the success of your communities, but not being able to find the right people with the right skills.

And trust me, that's frustrating for us as government too.

And for young people – who have big dreams, who want to work hard, to get on, but who can't find the right pathway –  for them, that's not just a frustration.

It's crushing.

That's the thing, skills are the route to prosperity for employees and for employers.

A skills system that works for young people is a skills system that works for business.

And that's the vision for our upcoming post-16 education and skills white paper.

To build a system that drives growth through the industrial strategy.

That's not the work of one department, but the work of the whole government.

To open up opportunity in all of our communities.

And there are opportunities to be seized.

Evidence from Skills England shows why that's so important.

By 2030 we'll need 900,000 new jobs in priority sectors.

Like digital, clean energy, advanced manufacturing.

900,000 opportunities for your businesses to expand.

900,000 opportunities for our people to get on.

But to grab those opportunities we need change. We need a rebalancing of what it is we value.

Our universities, including here in the region, are truly world-leading, a brilliant source of national pride. But for too long, our further education colleges have had to exist in their shadow.

So it's time we recognised the value of our colleges too.

And, just as we are driving up standards in our schools, it's time to drive up standards in our colleges as well.

We'll work with our brilliant FE staff, to harness their passion, to unlock their expertise, and to set in motion a skills revolution in our colleges.

Universities are the right route for many of our young people.

And we've got to make sure that all who want to go to university have the means to follow that dream.

That's why in my speech this week at Labour Party Conference I announced that we will introduce new targeted maintenance grants for students who need them most.

Available for students pursuing higher level study at college or university on courses aligned with the government's missions and the industrial strategy, because we value the technicians as well as the engineers, because what matters is not the building you study in, but the skills that you hone, because university is a fantastic option for many of our young people, but it's not all of our young people, and they need strong roots too.

That's why in his conference speech the Prime Minister announced we'll move away from the target, around 50% of young people to go to university.

Instead, Keir set a new ambition, fit for this country's future, fit for the modern world, for two-thirds of young people to reach higher-level study.

Whether that's at university. Whether that's in a college.

Or whether that's through an apprenticeship.

I'm serious about skills. The Prime Minister is serious about skills. And this government is serious about skills.

And that requires a prestigious, world-class further education system.

Raising standards. Bolstering teaching quality. Empowering our high-performing FE leaders.

And so we're backing our FE colleges with more funding.

Investing nearly £800 million extra next year.

Supporting an extra 20,000 16-19-year-olds with the skills that they need to get on.

And we're going further.

We're transforming FE colleges into specialist Technical Excellence Colleges.

And they'll focus on key sectors to support our industrial strategy.

Back in August I went to Derby College to announce the selection of 10 Construction Technical Excellence Colleges, covering the whole of England.

And we're investing £100 million to get this right and deliver high-quality construction skills for our young people.

And I'm delighted that the Construction Technical Excellence College for the North East is right here at the City of Sunderland College.

And we worked hand in hand with the North East Combined Authority to get this right.

In fact, the college's brand-new Housing Innovation and Construction Skills Academy is just right over the way from here. You might be able to see it if you shuffle down.

It'll be a centre of excellence, partnering with FE colleges, universities and employers like you across the region.

And now we're launching another 14 Technical Excellence Colleges in three more sectors for 2026 right across the country – on top of the five we announced as part of the Defence Industrial Strategy.

That's one route for young people to get the skills that your businesses need and that we all need.

Another is apprenticeships.

I know that they haven't always offered the flexibility you need, they haven't always reflected the realities of the modern world.

When the right skills can be gained in under a year, for example. Or when learners aren't starting from zero.

That's why last month we reduced the minimum duration to 8 months, to make apprenticeships work better for learners and better for you.

Also tearing away the red tape on English and maths, to open up opportunities for adult learners.

And for young people in targeted sectors we've introduced foundation apprenticeships – to give them a route into good careers in critical sectors.

But I know that sometimes supporting someone starting out in their career who needs extra support can be expensive for employers.

So we've backed the new foundation apprenticeships with support for employers of up to £2,000 for every foundation apprentice that you take on.

And It's a similar story for T Level placements.

They're an essential part of these really high quality top-quality qualifications.

But that doesn't mean they're cost free for you.

So we've brought in a new Employer Support Fund.

£6.3 million this year to support you with the costs of hosting a T Level industry placement.

Alongside this action on apprenticeships and T Levels sit our skills packages across government.

£625 million investment in construction skills.

£182 million for defence.

£172 million for engineering.

And £187 million for digital.

Skills aren't just a lever to pull, they're the cornerstone of our plans to get growth moving in every community.

But they're no good in isolation. For that growth to be felt by local families, they have to be centred in local businesses, and we need to take a step back.

Because new skills are no use to the new dad who can't go back to work because childcare is too expensive.

A new qualification is no use to the mam who can't get up her hours in the office because school drop off is too late.

That's why we're rolling out 30 hours  of government-funded childcare for working parents, until their child reaches school.

And it's why we're racing ahead with free breakfast clubs for every primary school in the country.

To give parents the choice and freedom to work the hours that suit them.

But it's more than that. We're growing a network of up to a thousand Best Start Family Hubs.

The best of Sure Start, reimagined for the future – bringing together all of the help and advice that our  families need.

This is at the root of how we will  eradicate the stain of child poverty in our region – and across the country.

Parents with the right support, with the right skills to find the work that's best for them.

Ending child poverty is the moral mission of this government.

Giving parents the power and the choices they need to build a better life for themselves and their families is my promise.

And some might wonder what's the relevance for business in all of that.

But they're wrong.

As leaders you know the value of strong and supportive communities.

The value of healthy and happy members of your team.

That's why we've been working with business on our Make Work Pay initiative.

To drive up working conditions.

To share best practice.

To boost innovation.

Because the best businesses are proud to be trusted sources of good, secure jobs in their local communities.

And that's my ask of you as I wrap up.  

To partner with us to revitalise our communities.

To take on that young apprentice with plenty of talent but who's still got plenty left to learn.

Welcome that T-Level placement student who otherwise wouldn't get the practical experience they need.

Engage in T Level Week later this month and share your success stories.

Invest in your workforce, not just for today but for tomorrow too.

And work with us in government. Work with Skills England. local colleges, your local university. Work with the team delivering the Local Skills Improvement Plan for your area.

You do all this already, because you know there is such strength in our community here in the region, but only when we work together.

So, please, keep doing it. And I'll keep on working in partnership with you.

Because you are at the centre of what this government wants to achieve.

Our skills white paper is coming – and in partnership with you it will deliver the step change in skills that our country needs.

But that's not the end game.

Because ultimately skills are a means to an end.

A means to many ends, in fact.

Driving growth.

Ending child poverty.

Breaking the link between background and success.

Security and prosperity, for businesses and workers alike.

Strong and healthy communities.

Opportunity for all.

Skills are the passport that take us from we are now to where we want to be.

As businesses, as communities, and as a country.

And that's a journey I want us all to take together.

Thank you very much.