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Opportunities for the Next Generation

Given the time constraints I shall cover a number of topics swiftly and litter them with personal requests in the hope that the Minister will agree to every one of those requests. First, on apprentices, about which several Members have made some excellent points, I welcome the increase in numbers both for young people and for adults as I am a huge fan of apprenticeships. As a Member of Parliament I have taken on an apprentice in my constituency office, and in my former role as a business owner I also took on an apprentice, who has gone on to have a good career. In my constituency, we have launched a scheme with a number of local businesses called plan 500, which has sought to increase the number of opportunities for work experience and apprenticeships. I am such a huge fan of apprenticeships because they help businesses by giving them an opportunity to train and shape apprentices to their organisation's needs. They are an affordable step for businesses that are looking to progress and they provide an excellent opportunity for those who participate in apprenticeships, often giving them far better career opportunities than traditional university graduate schemes. Having talked to local businesses and business forums in my constituency, I know that they are extremely supportive of apprenticeships. My hon. Friend the Member for Gosport (Caroline Dinenage) made a point about the need to improve the perception of apprenticeships, which has continued to improve over a number of years, and rightly so. One problem is that many businesses still do not understand how easy it is to employ an apprentice or what it entails. I have mentioned this in several debates, and I shall repeat it because it is still an excellent point. All businesses receive a business rate mailer, and I call on the Government to include in it information on how to take on apprentices; it would lead to the creation of further opportunities for young people. We should do all we can to encourage the next generation of entrepreneurs. Talking to young people, it becomes clear that they love, and are inspired by, ““The Apprentice”” and ““Dragon's Den.”” To make a sweeping generalisation, young people have enthusiasm, drive and cheek. These are all essential ingredients needed to innovate and challenge the norm, especially in high-tech and traditional industries where new opportunities could be created. To be proactive, I think we should encourage young enterprise schemes in schools; we should establish the network of 40,000 business mentors; we should support global enterprise week, which for all those with diary open and pen poised is 14 November; and we should tap into inspirational projects, including the excellent work of the Peter Jones Foundation and of the Premier League, which has managed to deliver enterprise activities to more than 115,000 children in just two years. Too often we actually educate people out of entrepreneurial flair. I studied business at university, and only a handful of the 300 in our year went on to set up their own business. My plea is that we just let people get on and be that next generation of business owners. I am particularly keen to see an expansion in financial education. It is essential that we equip the next generation to understand the increasingly complex financial world, and to have the confidence to be savvy consumers. That will help young people make informed financial decisions; it will help provide them with the confidence to manage their own money; it is good for their CVs, helping improve their likelihood of securing work in a challenging market; and it encourages entrepreneurs. I hope all Members will continue to support our all-party parliamentary group on financial education for young people, which is calling for compulsory financial education in the school system. On housing and the challenges for young people in becoming first-time buyers, I would like banks to show flexibility rather than sticking to the crude method of ““timesing”” income by a multiple to determine whether the young person can afford to pay a mortgage. A lot of young people are already demonstrating that they can afford a mortgage by paying rent, which is nearly always more expensive than the current mortgage. I would like banks to look a lot more carefully at the person's credit history and disposable income to determine whether they can service a mortgage. On student finance, we have a duty to provide information to allow young people to make the best career choice for their individual circumstances, so I welcome the setting up of an independent taskforce, led by Martin Lewis of moneysavingexpert.com, to provide clear, independent advice covering the good and, crucially, the bad of any changes. For example, the emphasis should be on the question, is university really the right option for an individual? It is good for some people, not so good for others, and we have a duty to ensure that young people make informed decisions to get them their best opportunities in life. I was going to set out a series of observations on student finances, but I will go straight to my plea that under the new system graduates should be allowed to repay loans early. The reason that we need to do so is set out in Martin Lewis's ““mythbusters”” on the seven deadly sins of not allowing early repayment. First, we encourage everyone to try to manage debt responsibly, and the policy flies in the face of that. It is unpopular; in a survey carried out on the website, 87% of people said they wanted to repay early. It penalises people for good financial management and success. For some it will mean that commercial loans are cheaper; student loans will no longer be good debt for them. It pressurises parents into stumping up so that students do not need loans; and higher repayment thresholds mean that people are in debt for longer. I understand that the policy is being considered because we do not want to disadvantage people from challenging backgrounds; I was one of the people who benefited from a full grant. But although a young person relies on their parents when they go to university, when they graduate their destiny is in their own hands as they secure work, and if a graduate has secured a good job and has disposable income, they should not be penalised with a lifetime of debt. I urge the Government to consider that.