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The Parliamentary Under-Secretary of State for Education (Janet Daby)
It is a real pleasure to speak in this debate. I congratulate my hon. Friend the Member for Tipton and Wednesbury (Antonia Bance) on securing a debate on this important subject. I am delighted to be the first Minister in this Parliament to respond to a debate on skills, which I am sure everyone across the House will agree are crucial to both individuals and our economy.
The honour of being Minister for Skills actually falls to my noble friend, Baroness Smith, who has recently laid a skills Bill before the other House. I know that she has already been out and about in her short time in the role, meeting people at the sharp end of skills delivery: providers, colleges, teachers and also students, young people taking T-levels and apprentices. It is for those people—people of all ages and backgrounds—that we need to ensure that the skills system is working.
As this is a debate about skills, I must mention the fantastic results that the UK achieved in the World Skills event in Lyon last month. Students and apprentices from across the UK competed with the best from around the globe and won two silver and two bronze medals, as well as 12 medallions for achieving the internationally recognised standard of excellence. The team finished 10th in the medal table out of 60 countries, which demonstrates the real commitment to excellence of our young learners. I pay tribute to them.
We need to ensure that learners like that—indeed, all learners—have access to the right opportunities. We know that the skills landscape is ever changing, and that new technologies, businesses and approaches all bring new skills needs. However, we have not always kept up with that need. The current system is incoherent, and too many people are unable to benefit from it.
Helen Grant (Maidstone and Malling) (Con)
I have the excellent MidKent College in my constituency, and they tell me that there has been constant change in the skills landscape over the last 10 years, with qualifications being removed and then reintroduced. They have put it to me that more certainty would make for much better long-term planning, not only for students but for colleges.
Janet Daby
I thank the hon. Member for mentioning the college in her constituency of Maidstone and Malling. She raises a concerning factor that should have been dealt with, so I am pleased to say that in July the Secretary of State announced a review, led by Becky Francis, of post-16 qualifications. Skills policy has too often been made in isolation, which has made the system confusing, as she has mentioned in relation to MidKent College.
Jim Shannon (Strangford) (DUP)
Just for the information of MPs from the mainland here, Northern Ireland supplies construction workers to the mainland, who come over to London by plane every week on Monday morning or Sunday night. If we can produce workers in Northern Ireland who do work in London, perhaps some contribution should be made to our construction sector and our colleges back home so that we can keep producing workers of great skill.
Janet Daby
I thank the hon. Gentleman for that very interesting point. I have not grasped the whole of that issue, so I would be happy to have a further conversation with him about it.
The lack of a clear plan has led to confusion and widespread skills shortages, which hinder economic growth. The lack of basic skills among adults and reduced employer investment limit our ability to meet domestic skills needs. Too many people have been unable to access the benefits of quality post-16 education and are more likely to face unemployment, lower wages and poorer health. That is why meeting the skills needs of the next decade is central to delivering the Government’s five missions: economic growth, opportunity for all, a stronger NHS, safer streets and clean energy. We aim to create a clear, flexible, high-quality skills system that supports people of all ages, breaks down barriers to opportunity and drives economic growth.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
On economic growth, nearly 50% of UK businesses have experienced a cyber-security breach in the past 12 months, and cyber-attacks cost the UK economy £27 billion annually. The country faces a shortage of 93,000 cyber-security professionals, so does the Minister agree that cyber-security skills development should be prioritised in Skills England’s agenda?
Janet Daby
I thank the hon. Lady for that important and pertinent point. Skills England’s very purpose—[Interruption.] Indeed, I will come on to speak about that. It will ensure that there is training when employers identify skills gaps and those jobs are needed.
Skills England will ensure that we have the highly trained workforce we need to meet the national, regional and local skills needs of the next decade, and it will be aligned with the upcoming industrial strategy. That is a critical part of the Government’s mission to raise growth sustainably across the country, support people to get better jobs and improve their living standards. Skills England will provide an authoritative assessment of national and regional skills needs in the economy now and in the future. It will combine the best available statistical data with insights generated by employers and other key stakeholders. It will ensure that there is a comprehensive suite of apprenticeships, training and technical qualifications for individuals and employers to access, which will align with skills gaps and what employers need. As part of that, it will identify what training should be available via the new growth and skills levy, which will replace the rigid apprenticeship levy, as many have been calling for, to ensure that levy-funded training delivers value for money, meets the needs of businesses and helps to kick-start economic growth.
Andrew Pakes
Will the Minister join me in congratulating my constituent Grace Gourlay, who two weeks ago won the Peterborough Telegraph advanced apprentice of the year award for her work at the end of her second year of a four-year course at Caterpillar in engine and test design? Does she agree that one of the big challenges for Skills England in reforming the growth and skills levy is to ensure that we reverse the decline in the number of young people entering apprenticeships in skilled areas? We must begin to reverse the 70% drop in young people taking up an apprenticeship course.
Janet Daby
I absolutely agree with my hon. Friend and join him in celebrating all of Grace Gourlay’s achievements.
Skills England will work together with combined authorities and other places with devolved deals, as well as with other regional organisations such as employer representation bodies, to ensure that regional and national skills needs are met at all levels, from essential skills to those delivered via higher education, in line with the forthcoming industrial strategy.
To support our aim to ensure more local say in skills provision, local skills improvement plans, or LSIPs, provide an agreed set of actionable priorities that employers, providers and other stakeholders in the local area can get behind, to drive change and help to make technical education and training more responsive to local labour market and employer needs.
Since autumn 2022, the designated employer representative bodies leading the LSIPs have engaged thousands of local businesses on their skills needs, helping to forge new and dynamic relationships between businesses, skills providers and other stakeholders in the skills system. The plans are a valuable source of information and will provide important intelligence for the newly established Skills England.
A £165 million local skills improvement fund has been made available across all areas of the country to support providers to respond collaboratively to the skills needs identified in the plans. I am aware that a local collaboration of colleges in my hon. Friend the Member for Tipton and Wednesbury’s local area, which is led by Solihull College and University Centre, has been awarded £10.3 million of funding to support the west midlands LSIP’s priority actions. For example, Dudley College of Technology is leading a project that has received £2.1 million to support an expansion of the regional electrification and engineering technical training offer, capital investment is being used to upgrade existing facilities and offer new provision.
Janet Daby
I am afraid that I will not, as I really need to make progress.
The west midlands LSIP has been recognising local challenges, as well as opportunities, including the advancement of the country’s fastest growing tech sector, facilitating emerging strengths in clean tech and green energy, and stimulating growth in priority growth clusters identified by the West Midlands Combined Authority, and creating a pipeline of new entrants into the logistics and distribution industry by increasing the availability of apprenticeships.
Offshore wind is a new technology that is being deployed around the UK, including in the Celtic sea. It is estimated that up to 5,000 new jobs could be created in the area from the new supply chain. Skills that will be critical to this industrial progress include welding, marine vessel operation and cable laying.
It is good to know that Truro and Penwith College wants to explore this sector. I know that green skills are a priority for the college, with its focus on electric and hybrid vehicles, renewables and retrofit for construction. The college also leads the local skills improvement fund project for Cornwall, which focuses on upskilling in these fields. We encourage colleges, including those in Cornwall, to utilise their full adult skills fund allocations. Colleges can grow their allocation by overdelivering on their formula-funded provision by up to 110%.
I again thank my hon. Friend the Member for Tipton and Wednesbury for securing this debate, on a matter that we both agree is important. It has given me the opportunity to talk about our plans for Skills England and for skills more widely. I am sure that in the coming months and years there will be more discussion and debate about skills, because they are critical to the prosperity of our businesses and employers, the prosperity of individuals, and indeed the prosperity of the nation. As I have set out today, we are already starting to make reforms to the skills system with the introduction of key measures, such as establishing Skills England to ensure that we have the highly trained workforce needed to meet the national, regional and local skills needs of the next decade and beyond.
Question put and agreed to.