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The Minister for Apprenticeships and Skills (Robert Halfon)
It is a pleasure to serve under your chairmanship, Mr Bailey. I genuinely congratulate the hon. Member for Great Grimsby (Melanie Onn) on securing this debate; she is a brilliant advocate for her constituency. I also pay tribute to my genuine hon. Friend the Member for Cleethorpes (Martin Vickers) and thank him for his remarks.
It is clear from the hon. Lady’s interest in this subject that she rightly wants to ensure that people of all ages in Grimsby have access to high-quality further and higher education to acquire the technical skills that employers are increasingly demanding. The Grimsby Institute is already helping to meet those needs as one of England’s largest providers of higher education, providing a wide range of training at a variety of levels. The hon. Lady spoke movingly about the apprentice she met. She will know that there were 840 apprentice starts in her constituency last year, and there were more than 5,210 between 2010 and the end of 2015. I know she would like to see more; hopefully, the impact of our commitment to deliver 3 million apprenticeships by 2020 will be felt in her constituency.
The hon. Lady raised important issues about the skill needs of the energy industry, which is timely because it allows me to set out what the Government are doing to address the skills needs across all sectors of the economy in England. It is a key priority of the Government to ensure that we have the skilled workforce required to support development and growth in all areas of the UK economy. The country has all the ingredients required to compete with other skilled nations, but we have to create an education system that can harness and develop that talent, starting at school and going right through to the highest levels of education and training.
We are making progress. Many more of our young people are now taking up high-quality apprenticeships and training, leading to good jobs and careers in their chosen profession. Our post-16 skills plan will build on that, creating a more streamlined system of high-quality technical education that truly delivers the skills that industry need, but the Government cannot do the job by ourselves. We want to work with employers and colleges to unlock the potential in this country. There are already good examples of colleges and employers working in close partnership to create world-class facilities and teaching, but there is more to do.
I am not afraid to acknowledge that our education system does not always deliver the high-level technical skills in the volumes that our economy demands, especially at levels 4 to 5—the bit between A-level and graduate level. The fact that only 10% of people in England hold higher-level technical qualifications has contributed to a chronic shortage of highly skilled technicians. The OECD estimates that we will need around 300,000 trained technicians entering the labour market by 2020. Every year, the UK produces only around a third of the number of people trained at technician level that Germany produces. Higher apprenticeships are beginning to address that, but we are growing from a low base. Things are not going to get any better in a system in which only 4% of students are studying further education at level 4. Although there is good higher-level technical provision in some areas, it is spread too thinly across the country overall.
National colleges, which we have heard about this afternoon, will play an important role in helping to meet the gaps, within the context of the wider reforms set out in our 16-plus skills plan, which outlines the most radical shake-up of post-16 education since the introduction of A-levels almost 70 years ago. It will transform technical education for most young people and adults into an education that is world class, with clear pathways to skilled employment. It will build on the success we have already had by investing in apprenticeships, with the aim of creating a skilled workforce that is the envy of every other nation and that meets the needs of our growing and rapidly changing economy.
National colleges will have an important place in the new technical skills landscape, helping to define and deliver the routes required. They provide specialist facilities and training and lead the way in the design and delivery of higher level technical skills in industries or sectors that are critical to economic growth—industries that currently rely heavily on imported skills to meet the skills gaps at higher levels.
Gordon Marsden
The Minister is setting out some of the Government’s new proposals in this policy area, on which we will no doubt touch again as part of our discussions of the new Further Education and Technology Bill, which was announced last week. Regarding the hopes of my hon. Friend the Member for Great Grimsby (Melanie Onn) for the college at Grimsby, does the Minister accept that there needs to be a recalibration in Government to ensure that older people who have experience and skills participate in the new set of national colleges as well as younger people? It seems that too often the Government’s rhetoric has excluded them.
Robert Halfon
I would like all people to participate if they need the skills. I do not agree with the hon. Gentleman: our apprenticeships, skills offerings and national colleges are all open to all ages.
The Government are investing £80 million to support the development of five national colleges, and we expect that money to be matched by investment from industry in the respective sectors. The ambition is for the colleges to train up to 20,000 learners by 2020. I recently visited the new Hackney-based National College for Digital Skills. The facilities, the enthusiasm of the staff, the passion of the students and the strong support from employers such as Google will make it the success that I know it will be. Employers in other industries are crying out for higher-level skills, and particularly for technicians who combine deep knowledge of technology with up-to-date experience in industry.
National colleges will be set up only in those sectors where there is a clear gap in skills and where employers have clearly demonstrated their support and willingness to contribute to the operation of the colleges. Those that have been successful so far have had a clearly defined scope and sector focus, with evidence of strong employer support—High Speed 2, nuclear and the creative and digital industries—and wind energy is no exception. An industry-focused skills solution would need to demonstrate strong employer commitment and willingness to contribute capital, equipment, senior management time and access to facilities.
I am encouraged by the considerable work done to date by key partners to develop a proposal that meets the existing and future needs of the energy sector. Officials from my Department have been in discussion with the local enterprise partnership and others to provide advice on what we would want to see from a national college for wind energy. I understand that the LEP and RenewableUK are working with industry to identify skills gaps and to build a case for a viable national college model. The latest proposal has changed, but it is still very much consistent with the original vision of a national college. I am encouraged by the work that is going on, and look forward to further progress on the national college proposal. It will follow, as it must do, the same robust assessment process as for every other national college that has been agreed. Widespread employer buy-in and engagement will be a critical factor.
Melanie Onn
Might this be an opportune moment for the Minister to throw his full and forceful weight behind accelerating the programme as much as possible and encouraging all the agencies in the area to provide a blueprint so that we can all receive some assurance? My original concern was about the problem of the timing, in advance of the autumn statement; perhaps he can comment on that as well.
Robert Halfon
As I have said, as long as the same propositions that others who have set up national colleges are followed—it looks as if a lot of work is being done to do that—I will of course support and work with the relevant bodies, such as the LEP, as well as with the hon. Lady and others. Nevertheless, the detailed plan must be produced, and it has to meet the conditions that the plans for other national colleges had to meet. There is no doubt that, as I have said, this industry is vital to the economy and that, as I have also said, we need a skills training system that can deliver the skills needed to fill these jobs.
During the Commons debate on the Humber energy estuary in February, the Government set out our ambition to have a strong industrialised UK supply chain with the capability and capacity to win even more orders. We are working with developers to see how we can attract further investment and promote rejuvenation in areas such as Hull. We want UK companies to be able to benefit from offshore wind development, by ensuring that they are in the best possible position to compete for business.
I am grateful to the hon. Member for Great Grimsby for raising this important issue today and I know that she will work hard to try to help establish the national college in her area.