Skills and Post-16 Education Bill (Second sitting)

(Limited Text - Ministerial Extracts only)

Committee Debates: 2nd Sitting & Committee stage
Tuesday 30th November 2021 Public Bill Committees

[Matt Western (Warwick and Leamington) (Lab)]

I welcome you to your place, Mr Efford. I want to lend my support to my hon. Friend the Member for Kingston upon Hull West and Hessle and others on this group of amendments. They seek to ensure that the LSIPs take the needs of disabled people and those with special educational needs into account.

Currently, further education caters for a large number of students with such needs, which can be complex. The latest data shows that roughly half of disabled people are in employment—just 53%—compared with just over four out of five non-disabled people. The employment rate for disabled people with severe or specific learning difficulties was 18% back in 2019, the lowest rate of any impairment group. The House of Commons Library briefing notes that 52% of disabled people were in employment, down from 54%, which is really concerning.

The Workers Educational Association notes that

“adult learners in community provision are those with low or no qualifications, who require the most support in order to progress to higher level qualifications.”

Learning disabilities add to that complex state of affairs, which justifies the inclusion of an amendment to provide more support for people with learning disabilities. In its evidence to the Committee, Engineering UK said:

“38% of respondents…reported a lack of role models to be a barrier for pupils with special educational needs”.

One of the employers in my region, the National Grid, is doing extraordinary stuff in engaging and giving work opportunities to young people with complex needs, through its EmployAbility scheme. It is an exemplar project that it has been running for several years.

Those are some of the reasons why the amendments are important to the Bill. The Government’s impact assessment says that those from SEND backgrounds are “disproportionately” likely to be affected, and it is therefore a cruelty not to legislate where possible to mitigate that disproportionate impact. We think it is vital that such provisions be written into the Bill, which is why the amendments have been tabled. We need to highlight the challenges and make sure that we are as inclusive a society as possible, and that we allow for the needs of people with SEND in skills provisions.

[The Parliamentary Under-Secretary of State for Education (Alex Burghart)]

It is a pleasure to serve under your chairmanship, Mr Efford. I rise to speak to amendments 1, 2 and 3 tabled by the hon. Member for Rotherham, amendments 27 and 28 tabled by the hon. Member for Kingston upon Hull West and Hessle, and amendment 34 tabled by the hon. Members for Chesterfield and for Warwick and Leamington.

Those amendments all relate to LSIPs and the importance that we all place on improving the employment prospects of people with disabilities. The criteria for designation of employer representative bodies in the Bill are intentionally focused on the key characteristics and capabilities required for that specific role. We do, of course, want all employers to demonstrate good practice in equality and diversity in employment, including in relation to disability. The Bill is clear that LSIPs should draw on a range of evidence, but we do not consider it appropriate to list all that evidence in the Bill. Instead, I assure Opposition Members that we will set out further details in statutory guidance and continue to engage key stakeholders representing learners with special educational needs and disabilities as that guidance is developed.

The guidance will make it clear that employer representative bodies should absolutely engage groups that can help them to understand the needs of learners with disabilities and the barriers they face, and consider how people with disabilities can be supported to progress into good jobs that meet local skills needs, thereby supporting activity to reduce the disability employment gap. In the work I have been doing in the run-up to the Bill, among many other stakeholders, I spoke to a specialist college in Kent, which had a very powerful message for me. They said that they had catered for a lot of young people whom they believed had a bigger role to play in the local economy, which would be good for employers and the economy, but particularly important for the individuals themselves. That very much reflects my own experience.

For eight years, I was vice-chair of governors at a special school for children with autism in west London. It was an excellent school, not because of my vice-chairmanship but because we had an exceptional head and exceptional staff. It started as a primary school, but went on to become an all-through school. The work the school was engaging in when I left to enter politics was to make sure that it could help young people—often with really profound needs—to transition into the workplace. The alternative for too many people is a life of isolation and loneliness.

I commend the work that the hon. Member for Kingston upon Hull West and Hessle is doing on the APPG. I am sure that the APPG will want to look at the statutory guidance when it comes out and feed back to us, and we welcome that conversation. There are great opportunities here for dialogue between the ERBs, local providers, and local disability groups to make sure that the needs and the talents of young people with special educational needs are reflected.

[Tom Hunt (Ipswich) (Con)]

Does the Minister agree that it is actually the most logical fit for businesses to embrace and be accessible to those who have learning disabilities? As we know, they are often among the most unconventional, creative and brilliant thinkers.

[Alex Burghart]

My hon. Friend makes an excellent point. That is absolutely right; something I will come on to in a moment is that when we help young people with special educational needs overcome the barriers to employment, and when we help employers overcome some of the barriers that they may feel exist to employing those young people, it is an extraordinarily mutually beneficial relationship.

[Emma Hardy]

I want to push the Minister a little more on the guidance. He has mentioned that it will be statutory, which I welcome, but I wonder whether it will include some of the wording that is in this amendment, which looks specifically at what action will be taken to reduce the disability employment gap. Will that be seen in the statutory guidance?

[Alex Burghart]

Obviously, we are very keen to reduce the disability employment gap, and we are always mindful of ways in which we can achieve that. I am sure that it will be in the Secretary of State’s mind when he considers the statutory guidance.

Local skills improvement plans are not the only solution to this issue. Colleges already have a duty to use their best endeavours to secure the special educational provision called for by a student with special educational needs, as set out in the SEND code of practice. That should include a focus on preparing the young person for adulthood, including employment.

In addition to the duties on providers in relation to LSIPs, clause 5 introduces a broader duty for colleges and designated institutions to review how well their whole curriculum offer meets local needs. The duty requires governing bodies to consider the needs of all learners, including current and future learners, and those with special educational needs or a disability.

[Mr Perkins]

I appreciate the tone of the Minister’s response, but he has not really given us any detail on why he does not think it appropriate to have the wording in the Bill. Instead, he asks us to take it on trust that we will like the guidance when we eventually see it. We have to vote on the amendment. We have no idea what will be in the guidance. He has not said, “It’s written. It’s going to look like this—I just can’t show it to you.” There will be guidance and at some point we will see it, so can the Minister explain why it is not appropriate that we simply have a commitment in the Bill that LSIPs will have a strategy around supported internships?

[Alex Burghart]

On supported internships, I was very interested to hear about what the hon. Gentleman has seen going on in his constituency. I assure him that we are continuing to work to improve supported internships in England, including updating our guidance and, through our contract grant delivery partnerships in this financial year, developing a self-assessment quality framework for providers and helping local authorities to develop local supported employment forums. I respect his desire to see supported internships improve and go further. We share his ambition, but we are not putting every particular intervention that we favour in the Bill, so we will not single that one out for special treatment.

[Lia Nici (Great Grimsby) (Con)]

We already know that these kinds of activities are happening. I declare an interest as the chair of the apprenticeship diversity champions network. Employers are recognising that they need to offer these skills and support already. I am sure that the Minister knows that that is already happening.

[Alex Burghart]

I am grateful to my hon. Friend for that intervention. The Government are also developing an adjustments passport that aims to smooth the transition into employment and support people changing jobs, including people with special educational needs and disabilities. That goes back to the point that my hon. Friend the Member for Ipswich made. When I was on the Work and Pensions Committee with the great Frank Field, that was exactly the sort of thing that we were calling for. I am very pleased that this Administration have seen it go out.

The 12-month pilots of the adjustments passport that are under way in HE and post-16 provider pilot sites are capturing the in-work support needs of the individual and we hope that they will empower individuals to have confident discussions about adjustments with employers. It goes back to my point about breaking down barriers both for the individual and for the employer. More broadly, the Government’s national disability strategy sets out how we will help disabled people to fulfil their potential through work, to help reduce the disability employment gap further.

[Emma Hardy]

With respect to the comments made by the hon. Member for Great Grimsby, if everything were all fine and dandy as it is, we would not have a 28 percentage points disability employment gap. The Minister talks about the statutory guidance. Will there be some sticks as well as carrots in the guidance? If employers and people do not feel that they are being represented, and they are not taking effective measures to deal with the disability employment gap, will there be sanctions?

[Alex Burghart]

As I said in the previous sitting, statutory guidance is a powerful tool. If employer representative bodies do not adhere to statutory guidance, they may lose their designation. That is in the essence of statutory guidance. Given the significant amount of work already under way in this space, we do not believe that the amendments are necessary, but we agree with the direction in which they push.

[Mr Perkins]

I appreciate what the Minister has said. He has not really given us any detail on why he does not think that it is appropriate. I take his point on supported internships being one strategy: our amendment acknowledged that. However, in terms of amendment 1 on people with disabilities, we are not talking about a fractional thing that is not worth mentioning because there are so many other things that could be mentioned, but about a substantial body of people who have often been missed out by education providers. This is an opportunity to ensure that when the chambers of commerce, or whoever the employer representative bodies are, are writing their local skills improvement plans, those people do not continue to be left out.

I still think that amendment 1 should be accepted, so we will press it to a vote. I am willing to not press the other amendments in this group to a vote, but will look very carefully at the statutory guidance. I think that many people—such as my hon. Friend the Member for Kingston upon Hull West and Hessle and the cross-party group, which was very supportive of this—will listen to the Minister’s response and still wonder why the amendment is not appropriate. For future amendments, it would be useful if we had a bit more of a response as to why the Government are against it, rather than just the fact that they are.

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[Andrew Gwynne]

Absolutely; my hon. Friend could not have put it better. The views of residents matter as well because, as we know, although public bodies, local authorities, LEPs and chambers of commerce operate within defined boundaries, people do not. They do not necessarily know where parliamentary constituency boundaries or council ward boundaries are, and they do not always know where council boundaries are—people are fluid throughout. My hon. Friend is right that there was an opportunity to include the views of residents in the development of the plans. Unfortunately, that amendment was not passed.

[Alex Burghart]

I rise to speak to amendments 33, 38 to 41, and 44. I will start with amendments 33 and 38 in the names of the hon. Members for Chesterfield and for Warwick and Leamington.

Amendment 33 would require that local skills improvement plans draw on the views of local enterprise partnerships and the Skills and Productivity Board. We have been clear that local skills improvement plans should be informed by the work of the national Skills and Productivity Board and build on the work of local enterprise partnerships and their skills advisory panels. We will reiterate that in statutory guidance.

[Emma Hardy]

This is a quick one on statutory guidance. To clarify, will that statutory guidance state “act in accordance with” or “have regard to”? We all know that statutory guidance that states “have regard to” means “read and ignore.”

[Alex Burghart]

I am horrified to hear the hon. Lady’s attitude to statutory guidance. Our intention will be set out in statutory guidance, so that local skills improvement plans will be informed by the work of the national Skills and Productivity Board and build on the work of local enterprise partnerships and their skills advisory panels.

[Mr Perkins]

The Minister talks about speaking to local enterprise partnerships, but he must see the point that this is precisely the kind of role that was envisaged for local enterprise partnerships when they were invented. The very fact that he now says that we will go to the employer representative bodies, which we assume are likely to be chambers of commerce, rather than to local enterprise partnerships, must make people wonder, “Is there a future for local enterprise partnerships?” Will he tell us why he thought that local enterprise partnerships were not the right organisation to be the employer representative body in such cases?

[Alex Burghart]

We have been clear that we want to have an approach that is completely employer-led. Local enterprise partnerships, which have much to recommend them, are partially informed by employers, but they are public-private partnerships and we want an employer-led process.

Amendment 38 relates to local skills improvement plans taking account of providers of distance learning. I very much acknowledge the remarks made by Opposition Members about the importance of distance learning and how valuable it is to many members of the public who are studying. All relevant providers that provide English-funded post-16 technical education or training that is material to a specified area will have a duty to co-operate with the designated employer representative body for that area in developing a plan. That will be true even if they are based elsewhere and offer the provision by distance or online learning. That will help to ensure that the views of distance learning providers are taken into account.

Amendment 39, tabled by the hon. Members for Chesterfield and for Warwick and Leamington, would require the Government to have a national strategy for education skills that is agreed across DFE, DWP, BEIS and DLUHC, and of which LSIPs would have to take account. The Government have already set out their strategy for skills reform in the “Skills for jobs” White Paper published in January last year, which was agreed by all Departments—not just the ones listed in the amendment. The proposals set out the aim to support people to develop the skills that they need to get good jobs. They form the basis of the legislation we are discussing.

On the local skills improvement plans, we have been clear that they should take account of the relevant national strategies and priorities related to skills, as well as being informed by the work of the national Skills and Productivity Board. The specific strategies and priorities will evolve and change over time. We think the best place to do that is in statutory guidance.

Amendment 40, tabled by the hon. Members for Chesterfield and for Warwick and Leamington, relates to the publication of guidance setting out the criteria used to determine a specific area. The specified areas for local skills improvement plans will be based on functional economic areas. The Government are working with local enterprise partnerships to refine the role of business engagement in local economic strategy, including skills, and to ensure that the structures are fit for purpose for the future. That includes looking at geographies—

[Emma Hardy]

rose—

[Alex Burghart]

I am sure that the Secretary of State, as he engages in the process, will be mindful of the muddle that is Hull and, indeed, mindful of the many economic areas in which hon. Members find their constituencies.

[Emma Hardy]

I want to clarify that, whatever boundary it might be, defined boundaries will be set. If we do not set a defined boundary of any type, I cannot see how it will be possible to collect the data and the intelligence to know whether a strategy is working.

[Alex Burghart]

We are clear that these will be based on functional economic areas, that they will have a defined geography and that we will ensure that no part of the country is left out.

[Mr Perkins]

Will the Minister also clarify this? Is it possible that an area could be in two different local skills improvement plans? For example, Chesterfield was originally part of both the Derbyshire and Nottinghamshire local enterprise partnership and the Sheffield City Region one. Both were considered functional drive-to-work areas. Is it possible that an area such as Chesterfield might be in two different local skills improvement plans, or is it the case that, as my hon. Friend the Member for Kingston upon Hull West and Hessle says, there will be a defined area and everyone will just be in one?

[Alex Burghart]

We are working on the basis that there will be a defined area for each one, but we will be mindful of the fact that in some areas the geography does not neatly fit reality. That goes to the point that my hon. Friend the Member for Warrington South was making.

We will consider this work, alongside evidence from the local skills improvement plan trailblazers, before making final decisions about the specified areas that local skills improvement plans will cover. However, let me reassure members of the Committee that through the designation process, the Secretary of State will ensure that there are no gaps in the coverage of local skills improvement plans across the country.

I turn now to amendments 41 and 44. Amendment 41 relates to consulting local authorities and mayoral combined authorities on guidance for the roll-out of local skills improvement plans. We regularly engage mayoral combined authorities and the Greater London Authority, for example in relation to this Bill and the LSIP trailblazers, and we will continue to do so as we develop our plans for the wider roll-out of LSIPs and the accompanying statutory guidance. We will also engage the Local Government Association and other key stakeholders and make use of the evidence collected from the evaluation of our trailblazers.

Amendment 44 aims to allow colleges and other providers to propose revisions to local skills improvement plans. The Bill already places duties on relevant providers to co-operate with employer representative bodies in developing the plans and keeping them under review. That will give providers the opportunity to propose revisions and help to ensure that the plans are evidence-based, credible and actionable. We expect local skills improvement plans to focus on key priorities for change to make provision more responsive to local labour market skills needs, but it is important to note that those will be changes that providers themselves will have had a role in specifying.

Once an LSIP has been signed off, a provider will be required to have regard to it. The plan will not tell providers what to do. Providers will remain responsible for making decisions as part of their business planning, but they will have the benefit of those decisions being informed by a credibly articulated and evidence-based statement of priorities from business that they will, in turn, be empowered and incentivised to respond to.

[Mr Perkins]

We have heard the Minister’s response on those issues. Amendments 33 and 38 to 40 were probing amendments through which we sought to understand the role of the different organisations and how Government would define the different areas. I understood the Minister’s response to mean that no area would be left out, but also that no area would be in two LSIPs —I think that that is what he was saying. That is quite important because if an area ends up being in two, because it is in two different functional drive-to-work areas, that will make the data collection aspect impossible.

There has been a lot of important narrative in this debate about recognising that areas may well look in two different directions. The point that the hon. Member for Warrington South made about looking towards Liverpool and towards Manchester, as well as towards the rest of Cheshire, is important. If Warrington does not end up being in one area or another, the data collection will become impossible, in terms of the success of those particular areas. We will obviously look to the statutory guidance and, if I have misunderstood what the Minister has said, he has the opportunity now to put me right. I think that it is really important to understand whether an area could be in two different local skills improvement plans.

On the basis of the responses and the fact that the amendments were probing, I propose to withdraw amendments 33 and 38 to 40. We would like to put amendment 41 to a vote, because we believe that it is not only consultation with combined authorities that is relevant; we are very concerned that areas that are outside a combined authority will have no democratic oversight whatever. We think that people within those areas will also want to know that there has been some consultation.

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Division 3

Ayes: 6

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Labour: 6

Noes: 10

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Conservative: 10

Amendment proposed: 8, in clause 1, page 3, line 8, leave out “by people resident”.—(Alex Burghart.)

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Division 4

Ayes: 10

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Conservative: 10

Noes: 6

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Labour: 6

Amendment 8 agreed to.

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Division 5

Ayes: 10

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Conservative: 10

Noes: 6

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Labour: 6

Amendment 9 agreed to.

[Alex Burghart]

I beg to move amendment 10, in clause 1, page 3, line 10, after “any” insert “English-funded”.

This amendment limits the post-16 technical education or training about which a local skills improvement plan must identify actions that can be taken to such education or training that is English-funded.

[The Chair]

With this it will be convenient to discuss Government amendments 11 to 17.

[Alex Burghart]

Officials in my Department have engaged closely with counterparts in the Welsh Government, and we believe that we have reached a satisfactory position from a devolution perspective. Government amendments 11, 12, 13 and 14 provide further clarification as to the definition of ‘relevant providers’ that may be in scope of the duties relating to local skills improvement plans in clause 1.

The amendments make it clear that those duties can only apply to institutions within the further education sector in England, English higher education providers, and independent training providers that provide post-16 technical education or training in England. Local authorities, 16-to-19 academies and schools in England may also be subject to the duties in the future should the Secretary of State exercise their power to make regulations under clause 4. Relevant providers will only be subject to the duties relating to local skills improvement plans if they provide English-funded post-16 technical education or training that is material to a specified area in England, including by distance or online learning.  

Government amendments 10, 15, 16 and 17 provide further clarity in relation to the scope of local skills improvement plans. Amendment 10 limits the post-16 technical education or training about which a local skills improvement plan must identify actions that can be taken to such education or training that is English-funded. Education or training should be treated as English-funded where amounts are paid directly to providers in accordance with the regulations made by the Secretary of State under certain legislation, including, for instance, payments made in respect of student loans.

[Mr Perkins]

I do not intend to detain the Committee for long. The only question I wanted clarification on, given the conversation we have just had about areas, is about what thought had been given to the responsibilities of providers that are close to borders and provide services across them. We are supportive of Government amendments 11 to 14 and the clarifications established by Government amendments 15 to 17.

[Alex Burghart]

As I made clear in my remarks, it depends on whether provision is English-funded; that is, whether the money comes from England. That is how we explain the jurisdiction.

Amendment 10 agreed to.

Amendment proposed: 41, in clause 1, page 3, line 12, at end insert—

“(7A) Before local skills improvement plans are introduced outside of trailblazer areas, the Secretary of State must publish guidance relating to their implementation, subject to consultation of all Mayoral Combined Authorities and, where there is not one, the relevant local authority.”.—(Mr Perkins.)

This amendment seeks to ensure that local and combined authorities are consulted on the Government’s plans for the roll out of local skills improvement plans and are in a position to highlight any issues before publication.

Question put, That the amendment be made.

Division 6

Ayes: 6

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Labour: 5

Noes: 10

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Conservative: 10

Question proposed, That the clause, as amended, stand part of the Bill.

[Alex Burghart]

It will be a great pleasure for everyone to hear that after three and a quarter hours of debate, we have nearly completed clause 1 of our 39-clause Bill. I will try not to detain the Committee for more than 45 minutes at this point.

With local skills improvement plans, clause 1 provides an important vehicle to give employers a more central role in local skills systems, working with providers, mayoral combined authorities and other key stakeholders to reshape provision to tackle skill mismatches and respond better to local labour market skills needs. To develop those plans, designated employer representative bodies will need to engage the widest possible range of employers and draw on a range of evidence, including existing analyses of skills supply and demand.

Local skills improvement plans will give providers an evidence-based summary of the skills, capabilities and expertise required by local employers, helping them to prioritise and focus investment in skills provision. The clause places a duty on providers to have regard to the plans, once developed, when making relevant decisions in relation to the provision of post-16 technical education and training in the area.

The clause will ensure the information, knowledge and expertise possessed by employers, providers and stakeholders is utilised to agree priority actions to align provision to better meet employer needs and support learners. The Bill is about making sure that we have qualifications, designed with employers, that ensure students get the skills the economy demands. Clause 1 is absolutely central to that mission.

[Mr Perkins]

I regret that the clause will leave this Committee in less good shape than when it arrived. The amendments agreed by the House of Lords were entirely sensible. They had cross-party support; they were agreed to only because they were voted for by Conservative Members who have tremendous knowledge and experience of these matters and who are much respected, alongside others. It is a matter of great regret that the Government have failed to take on board those helpful amendments, which were added in entirely the right spirit.

We believe that local skills improvement plans are an innovation that is of value, but we are very concerned that the way they are envisaged will make it difficult for them to achieve what might have been achieved. When we come to clause 2, we will get into the debate about how local skills improvement plans might be more representative. What will happen in the event that things go wrong with the employer representative bodies is important. I look forward to hearing the Minister’s response on those points.

We support clause 1 standing part, but we are disappointed that it leaves the Committee in less good shape than when it arrived.

Question put and agreed to.

Clause 1, as amended, accordingly ordered to stand part of the Bill.

Clause 2

Designation of employer representative bodies

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[Matt Western]

Briefly, the amendments seek to reflect the reality on the ground, as we have heard. Let us think about HS2 and what has been happening. We have had years—decades—of plans for HS2, but we have seen skills sucked out of the regions so that we cannot get normal construction projects completed. That is because there has not been the co-ordination that there should have been. How was that allowed to happen? The result has been a huge impact on our regional economies.

Amendment 35 looks at the inclusion of public and private sectors as employers on the ERB. How can we not include the national health service, for example, and yet are able to include Virgin Care or Circle and others? It is bizarre that the public sector is not included.

On linking to the public sector, amendment 46 also seeks to include other employers, such as SMEs, the self-employed—as my hon. Friend the Member for Chesterfield said—and public and third-sector employers. Right2Learn, in a written submission, stated:

“We believe it is critical that local skills and training strategies need to look far more widely at including third sector organisations, as well as HE and FE providers. There must be far more opportunities for the direct involvement of SME clusters and organisations and the so-called gig economy which the Taylor Commission highlighted, including co-operatives and self-employed.”

I have said before, we must include charity-heavy provision and I gave the example of the Workers’ Educational Association.

Amendment 46 states that we need to include the third sector and the local health boards. As I said, we have seen how good that can be through the pandemic. Local primary care networks and public health in our localities really stepped up and showed that what they do is what they know, which is their regions, their populations and their geographies, to deliver good services. The same would apply to the provision of skills across our regions.

[Alex Burghart]

I rise to speak to amendments 35 to 37, 42, 45 and 46. Amendment 36 would require designated employer representative bodies to be reasonably representative of a broad range of local stakeholders. We have already been clear that we want local skills improvement plans to be employer led, which means led by genuine employer representative bodies, but we have also been very clear that designated employer representative bodies should work closely with key local stakeholders to gather intelligence and consider their views and priorities when developing local skills improvement plans.

That includes local post-16 technical education and training providers and mayoral combined authorities, which, through our Government amendment, are already specified in the Bill as playing a key role. It also includes local authorities and local enterprise partnerships, among others. This will be covered in more detail in the statutory guidance.

Amendment 45 seeks to test how the Secretary of State will determine what mix of employers is considered “reasonably representative”. When making a judgment on whether an ERB is reasonably representative, the Secretary of State will take into consideration the characteristics of its membership compared with the overall population of employers in the area. That speaks to the point that a number of Opposition Members have made.

We certainly expect designated employer representative bodies to draw on the views of a wide range of local employers of all sizes, reaching beyond their existing membership and covering both private and public employers. They will also need to draw on other evidence, such as other representative and sector bodies, to summarise the skills, capabilities or expertise required in a specified area. That type of engagement is already happening, and happening brilliantly, in our trailblazer areas.

Amendment 35 seeks to ensure that designated employer representative bodies are reasonably representative of both public and private sector employers. The Bill already ensures that that is the case. Clause 4 gives a definition of “employer” for the purposes of interpreting clauses 1 to 3 that covers public authorities and charitable institutions—to the point made by the hon. Member for Luton South—as well as private sector employers.

Amendment 46 seeks to ensure that designated bodies represent the interests of small and medium-sized enterprises, the self-employed, and public and voluntary sector employers. Public and voluntary sector employers are also already covered under the definition of employer in the Bill. Designated employer representative bodies must of course represent the interests of small and medium-sized enterprises in order to be reasonably representative.

Many existing employer representative bodies already do this effectively. For example, SMEs comprise the vast majority of the membership of local chambers of commerce. In drawing on other evidence, designated ERBs may also need to consider the key skills needs of the self-employed in order to effectively summarise the current and future skills required in the area, and that will be referenced in statutory guidance.

Amendment 37 concerns a scenario where the Secretary of State is not satisfied that there is an eligible body within a specified area that is reasonably representative of local employers. We have thought about that, but we really do not think it is likely to happen. Although the “Skills for Jobs” White Paper mentioned accredited chambers of commerce, there are other employer representative bodies with either a national or local presence. We saw evidence of that from the expressions of interest process we ran to select the local skills improvement plan trailblazers, for which we received 40 applications despite only looking for six to eight trailblazers. Many hon. Members today have spoken about chambers of commerce, but the Government are entirely open to representatives from the Federation of Small Businesses and other geographically based organisations that could also be eligible.

[Mr Perkins]

To clarify, how many of the trailblazer organisations were not chambers of commerce?

[Alex Burghart]

All eight trailblazers were chambers of commerce. However, I believe there were expressions of interest and applications from others. For the record, we are not saying that this is solely the preserve of chambers of commerce. We are supporting the trailblazers with £4 million of funding this financial year, and we will continue to support ERBs as they are designated, so that they can develop credible and robust local skills improvement plans.

[Mr Perkins]

I appreciate the Minister’s response. I remain of the view that public and private sector employers should feature in the Bill, so I will press amendment 37, which spells out Labour’s much more collaborative approach to this matter, to a vote. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 37, in clause 2, page 3, line 23, at end insert—

“(iii) in the event that there is no body in the local area that is representative of the organisations listed under subsection (1)(a)(ii) the Secretary of State will instruct the Local Enterprise Partnership or Metro mayor to bring together a board which is representative of all the organisations outlined in subsection (1)(a)(ii), who will take on responsibility for drawing up the local skills improvement plan.”—(Mr Perkins.)

This amendment places a duty on the Secretary of State, in the event that the Secretary of State is not satisfied that an eligible body is not reasonably representative of the employers operating within the specified area.

Question put, That the amendment be made.

Division 7

Ayes: 6

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Labour: 6

Noes: 10

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Conservative: 10

Ordered, That further consideration be now adjourned.— (Michael Tomlinson.)