Thursday 15th July 2021
(2 years, 9 months ago)
Lords ChamberSkills and Post-16 Education Act 2022 View all Skills and Post-16 Education Act 2022 Debates Read Hansard Text Amendment Paper: HL Bill 5-III(Rev) Revised Third marshalled list for Committee - (15 Jul 2021)
The Parliamentary Under-Secretary of State, Department for Education and Department for International Trade (Baroness Berridge) (Con)
My Lords, I am grateful to noble Lords for the engagement that we have had since the first day of Committee. I assure the noble Baroness, Lady Garden, that this legislation is part of the FE sector having its moment and being rescued from often being described as the Cinderella of the sector.
I re-emphasise that the local skills improvement plans will not be master plans that specify in minute detail all the provision that is to be provided by every provider to every learner in the area. They are a vehicle to give employers a more central role in local skills systems by articulating a clear, evidence-based assessment of priority skills needs and working with providers to shape technical education to better meet those skills needs, which many noble Lords have outlined. They are about employers working hand in hand with providers and key local stakeholders, such as local and combined authorities and Jobcentre Plus, and they are about agreeing a limited number of priority changes that, if enacted, will make post-16 technical education and training more responsive to employers’ skills needs.
I would also like to take this moment to update the House that we have announced the local skills improvement plan trailblazers, literally within the last hour, and I will now outline them to noble Lords. In the north of England, we have Cumbria Chamber of Commerce covering Cumbria, Doncaster Chamber will cover Sheffield City Region, the North East England Chamber of Commerce will cover Tees Valley, and North & Western Lancashire Chamber of Commerce will cover Lancashire. In the Midlands, East Midlands Chamber will cover Leicester and Leicestershire. In the south of England, GWE Business West will cover the west of England, Kent Invicta Chamber of Commerce will cover Kent and Medway, and Sussex Chamber of Commerce will cover Sussex. In relation to the question from the noble Baroness, Lady Morgan, and others, if you look also at the strategic development pilots alongside those areas, you will see a multiplicity of providers, including FE colleges, institutes of technology and universities. By the very nature of those bids, we can see that there has been a great deal of co-ordination in these areas, with the support, where relevant, of the mayoral combined authority.
The next update to noble Lords deals with the point that the noble Baroness, Lady Morris, made about how we prevent providers from just going for the easiest, lowest-cost qualifications. We have today announced the consultation on new funding and accountability arrangements to simplify the system and focus on outcomes rather than processes and to avoid this descent to the bottom. It will include proposals for how local skills improvement plans fit into the wider funding and accountability landscape. That is also part of the development. The trailblazers will, of course, start work very soon and I look forward to being able to share with noble Lords details of their early progress ahead of Report.
Amendment 8, which was moved by the noble Baroness, Lady Wilcox, relates to broadening the duty on who should have regard to these plans; the noble Baroness, Lady Garden, also mentioned this. Clause 1 already provides for the duty to apply to the universities and sixth-form colleges mentioned in the amendment, and the large majority of post-16 technical education and training providers will be captured.
The noble Baroness, Lady Greengross, raised a specific point about independent training providers; they are specifically outlined as a relevant provider within Clause 4, so they are covered. The Secretary of State will be able to lay regulations before Parliament to add local authority providers, 16-to-19 academies and schools to those already identified and subject to the duty.
Amendment 40A would require local authorities to distribute these local skills improvement plans to all schools that provide sixth-form education. The plans will be published by the Secretary of State and publicised to relevant bodies through appropriate communication channels. Obviously, designated employer representative bodies will have worked closely on the ground with the relevant providers, who should be aware of that. I have to say that, of the many criticisms the department has faced over the last 18 months, publicising guidance to the relevant people has not been one of them.
I hope that my remarks provide assurance to noble Lords on the approach we are taking to local skills improvement plans and access to them. I therefore hope that the noble Baroness, Lady Wilcox, will feel comfortable in withdrawing this amendment, and that the noble Lord, Lord Baker, will not feel the need to move his when it is reached.
Baroness Wilcox of Newport (Lab)
I agree with my noble friend Lord Liddle that local authorities and devolved Administrations are best placed to deal with local skills planning. I reiterate to the Minister that, if a whole education system approach is not taken to local skills planning, the system will be disjointed and will not be efficient or the best use of public money. I welcome the Minister’s announcement of the trailblazers pilot; I look forward to reading the reports of the projects and, indeed, the early progress reports. Therefore, although the Minister has outlined an amount of detail, I remain somewhat unconvinced. I will wait to see whether that joined-up progress takes place. However, with the approval of the House, I beg leave to withdraw the amendment.
Lord Watson of Invergowrie (Lab)
My Lords, we welcome the amendments and congratulate the noble Lord, Lord Lucas, and the noble Baroness, Lady Garden, on reminding us of the bigger picture in skills development. Effectively, these amendments relate to the national skills strategy and seek to ensure that employers, colleges and universities adopt a far-sighted approach by planning to develop the skills and apprenticeships for the jobs of the future and, in doing so, help to shape a more secure and sustainable economy for the country. An employer representative body that did not follow that path should not last for long.
It is crucial that we maximise the power of the economy by delivering on genuine lifelong learning so that people can grasp the opportunity to reskill or upskill when they need it and as often as they need it. Equipping the workforce with new skills for the jobs of the future will help build job security, which in turn will bring sustainability and resilience back to the economy and public services, at the same time helping our high streets to reinvent themselves and, hopefully, begin to thrive again.
From green jobs in manufacturing electric vehicles and offshore wind turbines to fintech, digital media and film, there is a pressing need to grow modern industries to build a long-term economy that provides good-quality and well-paid jobs and is thus fit for the future I am sure that the Minister will be keen to tell noble Lords how the industrial decarbonisation strategy, launched earlier this year, would fit in to this future-proofing approach, which will be enhanced if the Government are willing to accept these modest but, I would say, important amendments. They are complemented by Amendment 85, which would require the Secretary of State to establish a panel to undertake a national strategic skills audit to be updated every three years. The Government's industrial decarbonisation strategy cannot exist in a vacuum. It must interact with the industrial strategy which, noble Lords may remember, was published in 2017, but seems to have been hidden in plain sight ever since, the green jobs task force, to which the noble Baroness, Lady Sheehan, referred and the broader skills agenda into which the Bill will play.
In fairness to the Government—not something I am characterised by—the industrial strategy was indeed dusted down and updated as recently as January, setting out what are termed “grand challenges”, designed to put the UK at the forefront of the industries of the future and improving the country’s productivity.
That is all good, stirring stuff, and absolutely necessary because, as my noble friend Lord Knight highlighted last week, on our first day in Committee, we currently have a reactive skills system that is too often tortuously slow in responding to new demands, never mind anticipating them. A strategy formulated with an understanding of the need to embrace net-zero future jobs and skills would address that issue and, over time, could open up many more employment markets. I genuinely hope that that is a role that the industrial strategy will adopt, with a national skills strategy a key part of it.
My noble friend Lord Liddle rightly pointed to the lack of evidence that the Department for Education has a long-term vision. If there were one and it were cross-cutting in nature, a national skills strategy could benefit from a comprehensive assessment of our medium and long-term skills needs, with the goal of creating not simply secure employment but, in doing so, achieving the country’s climate change and biodiversity targets. I say to the Minister on these amendments: what is not to like?
Baroness Berridge (Con)
My Lords, I thank the noble Lord, Lord Lucas, for tabling these amendments. We completely agree with him and the noble Baroness, Lady Hayman, that designated employer representative bodies should take into account evidence of future skills needs and national priorities as they develop their local skills improvement plan. Of course, much will be included in guidance, but each employer representative body will be expected to co-ordinate and collaborate with its neighbouring employer representative bodies in writing the local skills plan, and with others across England.
In relation to Amendment 15 and potential student needs, I draw noble Lords’ attention to Clause 1(6)(b), which many noble Lords mentioned. It states that a local skills improvement plan
“draws on the views of employers”.
I hope that that answers some of the points made by the noble Lord, Lord Liddle, on what is expected of the Cumbria Chamber of Commerce in reaching out to the big employers that he mentioned. The clause also talks about
“skills, capabilities or expertise that are, or may in the future be, required”.
Although the approval process for the Secretary of State is about whether the relevant people have been consulted, as I outlined to noble Lords, the Bill states that the plan must look at the future. I obviously cannot comment on whether individual plans will pass or fail the Secretary of State’s test, but it is here in the Bill that a plan must look to the future. The future outlined is obviously the “potential students” that are mentioned in Amendment 15. They were the subject of much discussion on the first day of Committee. I remain of the view that, by being focused on the needs of employers, the LSIPs will also, by virtue of this, include the needs of potential students in relation to jobs in their areas. The vision that the noble Lord, Lord Watson, referred to is found within the White Paper that we launched earlier this year.
The noble Baroness, Lady Garden, I think, referred to other employment—it might relate to a skill that is needed for a neighbouring area. There is obviously the wider local needs duty under Clause 5. We are expecting that the trailblazer programmes will not only help to inform the guidance but help us to see how they engage with one another and the national skills priorities. The advice on national skills needs will clearly be part of the guidance. We have also previously discussed, both in this House and outside it, the role of the national Skills and Productivity Board, which will report later this year. This will enable each employer representative body to have access to its high-quality advice. The statutory guidance will highlight the types of evidence that they should have regard to.
The noble Baroness, Lady Hayman, made reference to the flexibility that people need nowadays in terms of skilling and reskilling. Of course, that will be part of what we discuss later in Committee in relation to the lifelong loan entitlement. A lot of the additional support for young people that the noble Lord, Lord Aberdare, mentioned is provided through Jobcentre Plus. People can sometimes be a bit sniffy about that, but what the work coaches are doing to make young people aware of the opportunities such as Kickstart is amazing. We have also given additional funding for apprenticeship starts in that group in particular and there has been an expansion of the traineeships. However, the National Careers Service and the Careers & Enterprise Company obviously depend on the age of the person. We will also make those young people aware of that. The noble Lord, Lord Watson, mentioned the Industrial Decarbonisation Strategy, which, again, will be one of the national strategies that a good local skills improvement plan will look to.
Amendment 85 looks to set up a national strategic skills panel, particularly in relation to our targets on net zero and biodiversity. As mentioned, we have been busy in the department—we have launched the Green Jobs Taskforce, which I hope gives some reassurance to the noble Baronesses, Lady Sheehan and Lady Bennett, that we are looking at those recommendations now. The recommendations in relation to the response to the need for net zero and biodiversity were not just for government but also for business and the skills sector, as we extensively debated on day 1 of Committee.
On the points made by many noble Lords, including the noble Baroness, Lady Morris, and the noble Lord, Lord Aberdare, there is a balance between a framework within a piece of legislation and having so much detail within it that the accusation can then be made, potentially rightly, that Whitehall is trying to fix all. There is a framework to try to set up the appropriate situation so that providers work with the employer representative bodies and that each local area works with the others and the national picture. I do not think that we should be more prescriptive than that. There is strategic development funding to deal with the concern of the noble Lord, Lord Liddle, on the capacity for these areas.
I hope that I have reassured noble Lords and that my noble friend Lord Lucas will feel comfortable to withdraw his amendment and not press the others when they are reached.
Baroness Wilcox of Newport (Lab)
Amendment 30 requires that the Secretary of State must publish LSIPs and distribute them to schools and all post-16 education providers. However, there is little point in having a plan if no one is aware of its contents. Yet, despite the requirements for providers to have regard to LSIPs, the Bill is silent on how LSIPs will be published or disseminated. I know that the Minister responded that a model LSIP can be provided, but this amendment seeks a much wider and co-ordinated task. Does the Minister intend, as the amendment suggests, for the DfE to take responsibility for this? Does she agree that publishing all local skills improvement plans will allow for areas to draw on each other’s strategies? That would be particularly helpful for a complementary regional approach and would promote best practice. Or does she envisage that such responsibility will fall to ERBs? If so, can she advise whether they will have the resources and a dedicated budget for such a responsibility?
Perhaps the Government believe that the onus should be on providers themselves to track down where LSIPs have been published. If so, where should they look—to the chamber of commerce, or local authority websites? How does that fit with the lack of role of local authorities and mayoral combined authorities in the process? I hope that she can assure the House that there is indeed a plan for publication and distribution, and I further reiterate my noble friend Lord Liddle’s probing question around the role of the Secretary of State in relation to local plans.
I also speak in support of Amendment 27 in the name of the noble Lord, Lord Patel, which requires the Secretary of State to publish a response to each LSIP, including an action plan for how they will support areas to address their skills need. I agree with the question asked by the noble Lord, Lord Aberdare, about where the strategies approach will be developed, using LSIPs to feed into national strategies and creating the feedback loop that is so essential. It is very important, given that LSIPs will need to be responsive to national level strategies, and given the Secretary of State’s powers to intervene if they believe that providers are failing to adhere to LSIPs or not meeting local needs, as seen through the lens of local employers.
I further understand that the notion and definition of “local” has been much discussed during the passage of this Bill already—but I respectfully point out that it continues to be raised by noble Lords because of the still undefined nature of the link between local and national priorities. When I entered local government almost 20 years ago, I was reminded that all politics is local, and I came to recognise that most assuredly throughout my tenure. I would further add that local knowledge and experience is invaluable in feeding into the national strategic overview.
Baroness Berridge (Con)
My Lords, I am grateful to be able to speak to this group of amendments relating to publication and response to local skills improvement plans. We expect them to be an important resource to inform decision-making by local providers, stakeholders and national policymakers.
On publication, in Clause 1(7) it is clear that a local skills improvement plan means one that has been
“approved and published by the Secretary of State”.
I presume that that will be on GOV.UK. I cannot prescribe that, but I do not think that we need to go into any further detail in relation to that, or to put such matters in the Bill. I am grateful for the comments of the noble Lord, Lord Young, about what we do and do not put in a Bill and what goes into statutory instruments—and then, of course, what is published in guidance.
Amendment 27 talks about how local skills improvement plans can inform national policy on skills. As outlined previously, we expect the plans to be informed by, and in turn inform, national skills priorities highlighted by the Skills and Productivity Board. This is envisaged to be a two-way relationship. In relation to the collaboration between employer representative bodies and the co-ordination point, which has been quite a theme throughout a number of amendments, the Secretary of State can set terms and conditions for the employer representative body and, should it be necessary, they can be used to mandate in the approval that they collaborate—but, obviously, one would hope that that will not be necessary.
On the point from the noble Lord, Lord Liddle, I hope that the trailblazers will reveal whether his doubts will materialise about whether the appropriate national skills priorities are taken into account.
On the approval process by the Secretary of State, it is not about the Secretary of State second-guessing the priorities and actions agreed by local areas but about ensuring that a robust process has been followed. In Clause 3, there are provisions that enable the Secretary of State to remove the designation if he sees fit: if terms and conditions have been broken, if the body is no longer impartial or reasonably representative or if it does not have regard to the guidance. Of course, when one talks about process, one normally thinks about judicial review—but, if a plan says that we are going to invest in coal mining in an area, for example, there might be a case for such a priority that is way outside. But it is a process that he will be looking at; he will not be second-guessing the choices and priorities decided by the employer representative body.
As I have said, we expect the LSIPs to complement the funding system reforms outlined in the Skills for Jobs White Paper. The consultation that I mentioned was launched today, aiming to give providers more autonomy to use government funding to meet the skills needs of local employers, including those articulated in LSIPs. We expect these plans to be a relevant factor for the Secretary of State to consider when making decisions about funding and support for local areas. Again, implicit in that is a co-ordination point as well.
Turning to Amendment 30, in the name of the noble Lord, Lord Watson, concerning the publication and distribution of LSIPs, I have mentioned Clause 1(7). The ERBs will lead the development of the plans, and the Secretary of State will approve and publish them. Obviously, if they are defective, there is the remedy I outlined for the noble Lord, Lord Aberdare. They will be published on a website to ensure that relevant bodies across England can easily find and access them, and this will be publicised through appropriate communication channels. The department has good relationships with stakeholders, as I say.
I hope that my remarks in relation to these amendments have provided some reassurance to noble Lords. One noble Lord who requested a meeting—it may have been the noble Lord, Lord Lucas—in relation to these matters. Of course, I am happy to engage with any noble Lord to give further detail outside of Committee. I hope to be able to report to the House on the progress of the trailblazers, but they are not due to conclude until March 2022. I therefore hope that the noble Lord, Lord Aberdare, will feel comfortable in withdrawing his amendment and that the noble Lord, Lord Watson, will not feel the need to move his when it is reached.
Lord Aberdare (CB)
My Lords, I thank all noble Lords who have spoken and the Minister for her response. This is a Bill whose aims I strongly support. It is absolutely focused in the right direction, and it has lots of great ideas in it. My occasional frustration is that I do not quite see how it is going to work in various aspects that have been raised by a number of noble Lords. I take the point made by the noble Lord, Lord Young, that it may well make sense to answer a lot of these points in the guidance rather than in the Bill itself, but we do not have the guidance and we do not know what is going to be in it so all we can do is say “We want this to be dealt with somewhere” and keep asking how it is all going to work in practice. Having said all that, I live in considerable hope and expectation, and I am happy to withdraw my noble friend’s amendment.
Lord Addington (LD)
My Lords, this is one of those occasions where I thought I knew what I was going to say before the debate started, but I have changed my mind—or, at least, my words—considerably having listened. When the Minister replies to this, I feel that the audience behind her might be the most worrying. I suggest that when the noble Lords, Lord Willetts and Lord Baker, are saying “beware of this”, any sensible Minister would listen. I know the noble Baroness falls into that category.
The Minister has to pay attention to what has been said. Everybody here said, “We are not sure what you are doing yet”. T-levels may sound neat, but we do not quite know what they are. Are they doing something else? Are they a replacement? I think it was the noble Lord, Lord Willetts, who asked if they are replacing BTECs, which are an established way forward and allow flexibility, university entrance and other qualifications. That is the sort of thing we want, especially as we are giving more power to level 4 and 5 qualifications, which is overly due. Can we have some assurance that there is no government thinking that T-levels will be used to replace all this? They will simply not lead to these places; they cannot.
Other institutions with qualifications which are understood and known, such as City & Guilds—if I do not mention City & Guilds, I fear that my noble friend might well have a few words with me afterwards—will be saying, “Everybody knows what these are.” If you are going to bring in T-levels, do it slowly and make sure that you are adapting them to take over these functions. A one-off exam at this age cannot do what these do because they do wonderful and flexible things. A few employers cannot find their way around them, but others can. You could simplify them a little and not sweep them away to do something else.
I will not follow the noble Lord, Lord Lucas, into his very intellectual comments about the destruction of post-modernism because we have quite enough on our plates without thinking about the centre of Glasgow and its planning issues. But I hope that when the Minister answers she will say that we are not getting rid of all of these good and established things straightaway, just because we have a lovely new toy that sounded good when we first put it forward. T-levels, I am afraid, will have to earn their stripes. They may become something that replaces or works into the rest of it, but further education deals with a diverse range of subjects and paths. It will never be that straightforward. I look forward to the Minister’s response and do not envy her task.
Baroness Berridge (Con)
My Lords, these amendments relate to the measures that support the implementation of the Government’s reforms to align the majority of technical qualifications to employer-led standards by 2030. To respond to the noble Lord, Lord Lucas, we are aiming here for all qualifications for learners to be of high quality and connected to those employer-led standards.
I was disappointed that the noble Baroness, Lady Garden, was not down to speak in this debate, because we had a very interesting discussion today where, as the noble Lord, Lord Flight, outlined, the key to what we are trying to do is to clarify the roles of a number of the institutions involved—IfATE, the OfS, which is relevant to the next amendment, Ofqual, the department and Ofsted.
We believe that the technical qualifications should cover the knowledge, skills and behaviours that are essential to an occupation. But the heart of the matter here, and one cause of the problems, is that although Ofqual accredits general qualifications such as A-levels and GCSEs, which are developed by awarding organisations, usually of the exam boards, in line with content set by government, the content of the majority of publicly funded technical qualifications is not specified or scrutinised centrally before the qualifications can be taught. That really is the nub of the problem here: Ofqual is not performing that function.
For parity of esteem, these reforms will bring the treatment of technical qualifications more in line with general qualifications. We have already done that process with T-levels, which were developed along with 250 employers to ensure that they met that standard. The content and employer-led standard then delivered, which could be by an FE college, is inspected and overseen by Ofsted. This process will raise the quality bar and deal with the issue of why we have, at level 3 and below, more than 12,000 qualifications, of which only about 800 are GCSE and A-level. As the Sainsbury review identified, we have had a proliferation of qualifications at that level, and many of them are currently created by the awarding organisations.
On the question of no one overseeing the content and it not being connected to an employer standard, we would not tolerate that in relation to GCSEs and A-levels, and someone needs to do that function. I have outlined the process for academic qualifications; the question then is who does that function. The institute currently manages the system of employer-led standards, and we believe it has the expertise to ensure that qualifications genuinely meet the skills of the economy, and the needs of learners and employers, and that it is right for the institute to lead this reform.
I explained some of these issues to noble Lords in the letter on 1 July. It is quite helpful that at the moment the position of chief regulator is being sorted out. Dr Jo Saxton, the Government’s preferred candidate, appeared last week in front of the Education Select Committee for the approval hearing, and was approved for the role. She was specifically asked about Ofqual and IfATE. She outlined that Ofqual will continue to play a key role with regulatory oversight of the standards of technical qualifications in live delivery, as it does currently. Ofqual and the institute are both needed as they contribute different and complementary sets of function and expertise. The two bodies will work together to assure, on Ofqual’s side, the consistency and reliability of assessment and awarding, as it does over the exam boards, and on the institute’s side the relevance to employers of the content of technical qualifications. When asked by the chair, she said:
“At its simplest, the curriculum side of it sits with IfATE. Once the curriculum has been agreed and approved to go forward, Ofqual’s job will be to make sure that any endpoint assessments and examinations continue to assess the curriculum that has been determined by IfATE and the employers and that receivers of the endpoint assessments and qualifications know that the awards they end up with accurately reflect what they know and can do. The relationship should work well. At its heart, it is essentially a separation between curriculum and regulation”.
I find that really helpful. That was the core purpose—she outlines why Ofqual was set up to be the regulator while the content of the curriculum was set out by the department.
Baroness Garden of Frognal (LD)
My Lords, this amendment, so ably moved by the noble Baroness, Lady Wilcox, raises an issue that engaged us at Second Reading—namely, the relationship between Ofqual and the Institute for Apprenticeships and Technical Education—and was raised by the noble Lord, Lord Watson, on a previous group. The matter of regulation is causing concern in the awarding sector, because it is not clear who has authority for end-point assessment for apprenticeships, and it is surely not desirable for there to be any confusion over which of these two bodies has most power, nor where the expertise lies.
The Minister tempted me to come in on the previous group and I nearly came in after her—but I knew I had the opportunity to speak on this group, so I thought I might as well save my thunder.
My noble friend Lord Addington referred to my connections with City & Guilds. I remember that it was the employers who set the curriculum, because they have always been involved with vocational workplace qualifications. Of course, there was heavy regulation of everything we did but, over many years, both BTEC and City & Guilds have developed a reputation for standards and quality. They are understood and trusted by employers, and BTEC has the added cachet that it is accepted by universities, in many cases, because of the academic rigour of its awards. Part of the work I did for many years at City & Guilds was talking to universities to see where they could accept City & Guilds vocational qualifications for their degree programmes. There were certainly some, in engineering and areas such as that, who were prepared to accept that people who had the right level of City & Guilds qualification had met the criteria for entry to a university programme. They are doing different things, by and large, so not many people went down that route, but it was possible. So this constant mention that employers are in control, as though it was something new, always concerns me, as it has been going on for over 100 years.
The noble Baroness also made a brief mention of copyright. I remember going through the Technical and Further Education Bill, which was cut short by the election, and having stunningly good amendments that were all of course dropped in the wash-up. The suggestion then was that the copyright of any of the awarding bodies would immediately be taken over by the Government. I objected strongly and said “You can’t do this. You can’t just assume the copyright of an organisation”. I got a phone call from the noble Lord, Lord Sainsbury, who asked me why I was objecting to his wonderful Bill. I said that it seemed to me outrageous that the Government could just take over the copyright of other organisations. He said, “Oh, I didn’t mean for that to happen at all”. I said, “Would you mind very much ringing up the department and telling them that?” I do not think he ever did, because nothing happened on it. But the issue of copyright is vital, because many awarding organisations earn income from the copyright of their qualifications.
Anyway, the noble Baroness very kindly sent us a chart of Ofqual and the institute, showing where they all were, and the complexity of it is absolutely mind-boggling—I am sure that a brighter soul than me would reckon that it is all very straightforward. The institute has responsibility for the curriculum, but Ofqual has end-point assessment. Ofqual provides advice to the institute with regard to the validity of technical education qualifications submitted for approval and the reliability of assessment, but the institute will be responsible for reviewing technical education qualifications to determine whether they continue to meet the criteria. This seems to be an incredibly complicated way of running these qualifications. However, I agree with the noble Baroness, Lady Wilcox, that it is obviously more appropriate that responsibility lies with Ofqual, which is an independent regulator, whereas IfATE is of course less independent, as a non-departmental public body.
We have no information about how IfATE’s approval fees would be regulated, how often the fees would be charged and how accurate the estimation costs are. Would the fees be per qualification, per sector, annually or for the lifetime of the qualification? That is not clear. There is a lot of obscurity around the setting up of these qualifications.
I find it very strange that, as has been mentioned, Ofqual has regulatory and approval responsibility for all vocational and technical qualifications apart from T-levels. I thought that T-levels were supposed to be the be-all and end-all of vocational qualifications, so why have they been split off into another body? I am afraid that I am a simple soul and I find this very complicated, so perhaps the Minister could enlighten us and clarify it all for us.
Baroness Berridge (Con)
My Lords, the external quality assurance of apprenticeships’ end-point assessment is a vital tool in ensuring that all apprentices receive a robust, high-quality assessment. In this amendment, we are now dealing with what is an Ofqual function. Ofqual does not set any curriculum for A-levels or GCSEs and neither would it, in our view, be the appropriate body to set any content for any level 3 or level 2 technical qualifications. It oversees the assessment process, seeing whether grading is fair and examinations are being run properly.
The Institute for Apprenticeships and Technical Education introduced an external quality assurance framework in 2019 in order to bring consistency to the sector. Following this, the institute put the matter of external quality assurance out to public consultation between February and May last year. This resulted in the institute taking the decision that the EQA for most apprenticeship end-point assessments would transfer to Ofqual to bring further consistency and quality to the assessment of apprenticeships. This is Ofqual’s bread and butter: overseeing examinations.
There are a small number of exceptional standards—chartered surveyors, for instance—where an existing statutory regulator oversees entry to a profession. The best way to quality assure these standards is currently being worked through with those regulators. I would like to make it clear that the Office for Students must continue to provide EQA for integrated degree apprenticeships—because Ofqual does not have statutory jurisdiction over degrees and therefore cannot provide EQA for apprenticeships at that level.
I will specifically address the noble Lord’s suggestion that regulations under this proposed amendment must prohibit the Institute for Apprenticeships and Technical Education from providing EQA. While the institute is stepping back from direct delivery of EQA, it is an employer-led organisation, working to develop apprenticeships that meet the needs of employers. It is right that it should continue to have responsibility for securing the quality assurance of apprenticeship assessment in order to retain an independent, impartial voice in the sector and to maintain clear focus on supporting employers to develop the right apprenticeship skills for the labour market.
Regarding the suggested six-month timing for the transfer proposed in the amendment, the pace of the EQA transition currently taking place from the institute and other EQA providers to Ofqual has been carefully planned to ensure the development of a balanced end-point assessment offer to continue to develop a high-quality apprenticeships system. The first phase of the transition is well under way and is focused on transferring the majority of standards that currently have the institute as the named EQA provider. This phase will conclude at the end of the year. The second phase is to transition to Ofqual the remaining standards that are externally quality assured by other EQA providers, excluding the standards that will be regulated by OfS and statutory regulators, as aforementioned. This will conclude at the end of September 2022.
The sector is made up of a great number of end-point assessment organisations of different sizes and natures, some covering single standards, some covering around 50 standards. To attempt to transition all these organisations and standards over to Ofqual in a six-month period would cause severe disruption in the sector and would negatively affect the apprentices’ experience. The proposed amendment would also place a great burden on universities, as under this amendment they would be required to be regulated by the OfS and Ofqual, rather than just by the OfS, as is currently the case. I hope I have set out that, as the successful transition of EQA is already under way, it would have a detrimental effect if we were to remove the institute from the process entirely.
In relation to the question from the noble Baroness, Lady Garden, on fees, any future approach that is developed will be proportionate and take account of the operational costs of institute approval in the reformed landscape. This may differ across qualification categories and levels.
On this basis, and with the explanations and reassurances I have given, I hope that the noble Baroness will feel comfortable to withdraw her amendment.
Baroness Wilcox of Newport (Lab)
I thank the Minister for the further explanation. I will analyse it in greater detail when I read it in Hansard tomorrow. The point from the noble Baroness, Lady Garden, about regulation being a matter of concern is absolutely correct. Indeed, employers have always been involved in qualifications. I am afraid that I am unsure of the background of many of my fellow Peers, but I can assure noble Lords of the quality standards of BTEC qualifications because I taught them for many years, alongside A-level qualifications, which are another quality qualification—I actually wrote A-level examination papers, as I was a principal examiner for the AQA examination board.
Nevertheless, the principle remains that we need responsibility and accountability. That is what Ofqual would give. I am sure we will return to this issue on Report, so I beg leave to withdraw the amendment.
Baroness Wilcox of Newport (Lab)
My Lords, Amendment 74 probes the charging of fees in connection with entries on the list of relevant providers. The Bill would enable the Secretary of State to make regulations to provide for a list of post-16 education or training providers, including independent training providers.
We have no argument with the principle of introducing legislative measures to protect the interests of learners, and agree wholeheartedly that those who run providers on the proposed list of relevant providers should be “fit and proper persons”. But we are concerned that many of the provisions appear to be just piling costs upon ITP delivery without any consultation or rationale as to why they are necessary. Can the Minister explain why no such exercise has taken place and assure the Committee that meaningful consultations will take place before any new requirements for providers are introduced via regulations?
Under the proposals, any provider not on the approved list will not be granted funding agreements or be allowed to subcontract with another provider that is on the list, so this will not be an option going forward. Yet being on this list does not guarantee future financial sustainability, given that the Government admit that listing will have a “significant impact” on the costs of smaller providers because of the need to pay to join and the imposition of mandatory professional indemnity insurance, as highlighted by the noble Lord, Lord Aberdare, in his Amendment 72.
If this is in response to concerns about provider failure, I too fail to see how enhanced liability insurance and more stringent entry registrations will have any impact or give protection to learners. Meanwhile, it risks destabilising the entire ITP sector at a time when the economy desperately needs more skilled staff as we emerge from the pandemic and as the effects of Brexit on the labour market are felt.
The Association of Employment and Learning Providers has also raised concerns about the practicality of this indemnity requirement, given that it is not aware that the insurance product that the Government may have in mind actually exists, despite such a requirement being written into primary legislation. I hope the Minister is able to address this in her response.
There is also understandable concern in the sector that increasing costs may be a backdoor way to reduce the number of ITPs in the market. Can the Minister confirm whether this is indeed the Government’s intention? If it is, I am concerned that such a policy could backfire spectacularly and have significant adverse consequences for learners and communities.
ITPs deliver three-quarters of all apprenticeship, traineeship and adult education budget programmes. While many are small, they provide crucial and valuable opportunities and bring much-needed responsiveness, innovation and competition to the skills training marketplace. Many ITPs are either specialist providers or serve areas out of easy reach of a local college—indeed, there are 1,186 towns but only 170 FE colleges in England. Does the Minister recognise that ITPs are very good at reaching out to small businesses in small towns and rural areas which do not have a local college, including the Chancellor’s Yorkshire constituency and some red wall areas? Does she agree that they have a major contribution to make to the Government’s levelling-up agenda?
I hope the Minister can provide some clarity on these issues and assure the House that independent training providers will be able to continue to provide value opportunities, which will be crucial to the country’s post-pandemic recovery.
Baroness Berridge (Con)
My Lords, I am grateful to noble Lords for the agreement in principle that a list of independent training providers is a requirement, as I believe it was suggested in this House in previous legislation. The noble Lord, Lord Aberdare, is correct: the core focus of the list is to protect learners and reduce the significant disruption to learners that provider failure can cause. We value highly the role of relevant providers, including independent training providers and in particular those small providers noble Lords have mentioned. We are not unduly negative at all about their role in providing a diverse and innovative learning offer. They provide a great deal of variety to many learners.
The provisions in Clause 18(7) include a requirement for a provider to have insurance for examples of conditions that may be specified in regulations that providers must meet in order to be on the list. In a similar way, subsection (10) gives examples of provisions that may be specified in regulations in connection with the keeping of the list, which would ultimately help deliver a well-functioning, transparent and fair scheme to all those involved.
We propose that the student support plans we envisage providers having will, subject to consultation—which I will mention further—follow the approach in the HE sector, where the Office for Students requires a statement of the level of risks to the continuation of study. We must remember this is study paid for by the taxpayer, and obviously it is in everybody’s interests that that course of study is completed.
I would like to allay the fears of the noble Baroness, Lady Wilcox: as the clauses require, we will consult on the conditions and provisions for being on the list, prior to making the first set of regulations, to help ensure that those conditions manage and mitigate the risk of disorderly exit. That consultation will allow us to fully take into account the views of those affected by the scheme, particularly the small providers noble Lords have outlined.
I turn to the specifics of the amendments. Amendment 72 is intended to ensure relevant providers will not be subject to further costs relating to obtaining insurance cover. The introduction of insurance, or an equivalent, may be useful in preventing or mitigating the risk of provider failure and assist with learner transfers at that point. If we were to introduce a condition in relation to insurance, the aim would be for learners to benefit from greater continuity of provision. Clause 18(9) allows different conditions to be applied for different descriptions of providers. It is not one size fits all. This would ensure that, where appropriate, we could make the scheme as flexible as possible.
Amendment 74 is intended to probe how the charging of fees in connection with entries on the list will be regulated. It is reasonable to expect that some fees may be necessary to recover the costs—I emphasise “costs”—of administering the list. It is important that we retain the ability to introduce fees if they are deemed necessary to run an effective and fiscally responsible scheme. I can, however, offer an assurance that this would be the sole purpose of any fees. They would be set to a reasonable level, with reasonable notice and with consideration of the impact on providers of all sizes. There would be no intention to make a profit at the expense of providers.
Regulations to create the list are subject to the affirmative procedure, so there will be further opportunity for parliamentary scrutiny of any conditions or provisions specified. This includes regulations relating to any requirements for providers to have insurance or an equivalent, if proposed in the regulations following consultation, as well as any requirement to charge fees. If regulations setting out the basis for charging fees were to change again in the future, those amending regulations would also be subject to the affirmative procedure.
I therefore hope the noble Lord, Lord Aberdare, will feel comfortable in withdrawing his amendment and that the noble Baroness, Lady Wilcox, will not feel the need to move her amendment when it is reached.
Lord Aberdare (CB)
My Lords, I am grateful for the support of the noble Baroness, Lady Wilcox, who made some good points, very strongly. I entirely agreed with her.
Despite the Minister’s hope, I am rather less comfortable with her response. This is going to have a very big impact, particularly on the smaller ITPs. The Minister talked about it being designed to avoid significant disruption to learners. What is this “significant disruption” and where are the examples? I have heard of two major cases, and a lot of others where nobody can produce any evidence at all, so I am not clear whether the problem being addressed justifies the scale of the sledgehammer being used to address it. I appreciate that the conditions in the Bill are examples, but the fact that they are there seems to make it very likely that they will turn up as conditions when the actual contracts get written. I would much rather see that left to the ESFA or the contracts, or whatever.
I think the Minister also mentioned that the approach was based on the higher education sector, but there is no comparison at all between a university and some of these small ITPs. It is just ludicrous to have the same sort of requirements placed on them as would be placed on a university. I very much hope that this consultation will be serious and deep, and taken great account of when it happens. I also hope that the fee will indeed be reasonable.
Before I withdraw my amendment, as the only Back-Bencher left standing I congratulate those on the Front Benches who remain in place, and particularly the two Ministers, on their efforts today, unhappy as I am with this final response. I beg leave to withdraw my amendment.