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The Parliamentary Under-Secretary of State for Education (Janet Daby)
It is a privilege to speak with you in the Chair, Sir Christopher. I congratulate the right hon. Member for East Hampshire (Damian Hinds) on securing this important debate, and I thank him for sharing his wide and comprehensive knowledge of past and present qualifications and awards. I am also grateful for the challenge that he and many other Members have brought to this debate. This Government are ambitious for young people, and we are excited and optimistic about what can be achieved.
As Members have rightly stated and spoken about, apprenticeships, BTECs and T-levels can offer incredible opportunities for young people. We have heard from many Members about the superb colleges and students in their constituencies, such as the hon. Members for Glastonbury and Somerton (Sarah Dyke) and for Sutton and Cheam (Luke Taylor), as well as my hon. Friends the Members for Great Grimsby and Cleethorpes (Melanie Onn) and for Dudley (Sonia Kumar). My hon. Friends the Members for Mansfield (Steve Yemm) and for Bournemouth East (Tom Hayes) both mentioned an invite to their respective colleges, and of course I will pass those on to my noble Friend the Minister for Skills.
Gareth Snell
Will the Minister also take back an invitation to Stoke-on-Trent to our noble Friend?
Janet Daby
Very smart and clever indeed—I will of course pass on that invitation to Stoke-on-Trent as well. We have also heard from the hon. Members for Broxbourne (Lewis Cocking), for Strangford (Jim Shannon) and for Mid Leicestershire (Mr Bedford)—it was great to hear about his brother’s achievements, so I thank him for that. There were contributions from my hon. Friends the Members for Hartlepool (Mr Brash) and for Stoke-on-Trent Central (Gareth Snell), the hon. Members for Westmorland and Lonsdale (Tim Farron), for St Neots and Mid Cambridgeshire (Ian Sollom) and for Wokingham (Clive Jones), and the shadow Minister—the hon. Member for Harborough, Oadby and Wigston (Neil O’Brien).
Members have spoken about many issues in this debate, such as greater diversity in the workforce, including both women in STEM and the representation of people from diverse backgrounds. Concerns have also been raised about BTECs, apprenticeships and T-levels—for example, the apprenticeship levy, the teaching of further education, the reform of qualifications, and colleges needing certainty in the future about specific courses. I hope to address as many of those and other remarks as time allows, including the points raised by the right hon. Member for East Hampshire.
It is this Government’s mission to drive and increase opportunity for young people across the country. Working with Skills England, it is also this Government’s mission to support employers to train people up and identify and develop the skills they need to grow, helping to kick-start economic growth. Early investment in young people pays off for employers. We want young people to be enthusiastic, energised and passionate about learning and developing in their work. That will benefit employers, industry and our wider economy, which will be galvanised by a new generation who are willing to work hard and progress in their careers.
It has been concerning in recent years that young people have seen their apprenticeship opportunities disappear. We ask ourselves, “Why is that?” It may be helpful to remind the shadow Minister that following apprenticeship reforms made by the previous Government, including the introduction of the apprenticeship levy in 2017, apprenticeship starts by young people under 25 fell by almost 40% according to the Department for Education’s published data. It is also concerning that so many workers and employers have told us that they find it difficult to access the skills they need. UK employers report that more than a third of UK vacancies in 2022 were due to skill shortages. That is what we have inherited.
According to a stark statement from the OECD, 26% of the UK workforce are underqualified for their job, compared with an OECD average of 18%. There are widespread skills shortages in areas such as construction, manufacturing and health and social care. We desperately need workers in those areas. That is why meeting the skills needs of the next decade is central to delivering our Government’s five missions, which, I remind everybody, are economic growth, opportunity for all, a stronger NHS, safer streets and clean energy.
This Government will create a clear, flexible, high-quality skills system with a culture of businesses valuing and investing in training that supports people of all ages and backgrounds, breaking down the barriers to opportunity and driving economic growth. We are bringing forward legislation to enable Skills England to work with key stakeholders. Skills England will make sure that we know where our skills gaps are to ensure that a comprehensive suite of apprenticeships, training and technical qualifications is aligned with those skills gaps and the needs of employers.
I have heard concerns that Skills England will not have the independence or authority it needs. I would like to dispel those concerns today: Skills England will have an independent board that will provide leadership and direction, as well as scrutiny to ensure that it operates effectively and within the agreed framework,
Growth and skills are essential. We have listened to employers, who have told us that the current apprenticeship system does not work. We must do more to support them in accessing the training they need to fill their skills gaps and spread opportunity. Our growth and skills offer will provide employers and learners with greater flexibility and choice and create routes into good, skilled jobs in growing industries aligned with our industrial strategy.
Janet Daby
I am going to make progress, and then I will take some interventions if I can.
We are introducing new shorter-duration apprenticeships and foundation apprenticeships as a first key step towards greater flexibility that will benefit employers and, indeed, students. We recognise that some roles need less than 12 months’ training and employers are currently locked out of offering apprenticeships. We want to support sectors that make use of fixed-term contracts or have seasonal demands or specific recruitment timetables. We will engage with employers via Skills England and introduce that flexibility where the justification is clear. Our new work-based foundation apprenticeship will focus on ensuring that training is directed towards real vacancies. It will offer young people broad training with clear and seamless progression into other apprenticeships. Unlike the last Government, we will work closely with employers and providers. This Government will make sure we get it right.
Neil O’Brien
The Minister talked about introducing flexibility where appropriate—it sounded like perhaps only in some sectors. Is it still the intention for all employers to be able to use 50% of their apprenticeship levy for things that are not apprenticeships?
Janet Daby
The area the shadow Minister mentioned is currently being reviewed. As that information comes out, I am sure we will make him aware of it.
To open up the growth and skills offer and to deliver opportunity where it is most needed, we will ask more employers to step forward and fund level 7 apprenticeships themselves, outside the apprenticeship budget. Of the 2.5 million workers in critical demand occupations, the vast majority—more than 80%—require qualifications lower than degree level, so it feels right that we focus our support on those at the start of their working lives, rather than those already towards the top of the ladder.
The Government believe that all young people should have access to high-quality training that meets their needs and provides them with opportunities to thrive. That is why we are committed to making a success of T-levels and extending the opportunity they provide to as many young people as possible. We have introduced three new T-levels this year, opening up more opportunity for young people in the areas of craft and design, media, broadcast and production, and animal care. It was great to see an overall pass rate this year of nearly 90% and to learn that 83% of T-level students who applied to higher education secured a place.
At the end of the last academic year, more than 30,000 young people had taken a T-level, and we want to ensure that many more have the opportunity to study them, but we know that some changes are needed if we want to make that a reality. That is why we are looking at the delivery of current T-levels to ensure that more young people are able to enrol and succeed in them. Our review of post-16 qualifications reforms will ensure that there is a range of high-quality qualifications at level 3, alongside T-levels and A-levels, to support the skills needs of employers and the needs of learners.
Neil O’Brien
Will the Government agree to publish the terms of reference of that review?
Janet Daby
I have heard the shadow Minister mention that already, and I believe he has already received a response. [Interruption.] No, the shadow Minister has already received a response.
Janet Daby
I am sorry—I have already answered.
Last month’s Budget saw a good settlement for further education and skills, including £300 million revenue funding for further education and £300 million capital investment to support colleges to maintain, improve and secure the suitability of their estates.
Each one of us here knows the importance of high-quality skills training for young people, and I am grateful for the considered contributions of everyone who has spoken. When we look at the statistics, it is clear that for too long, young people have been locked out of the opportunities that can benefit them most. The actions I have outlined today will give us a real sense of how to make a difference for learners and employers. That is at the heart of the Government’s mission to spread opportunity and drive economic growth across all parts of our country.