Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [HL]

(Limited Text - Ministerial Extracts only)

Committee stage
Thursday 21st November 2024 Grand Committee

[Lord Lucas (Con)]

My Lords, I share many of the concerns expressed by noble Lords. The Bill should by no means leave the House in the state in which it entered it. It is important that whatever body Skills England occupies has a great deal more status than the Government have proposed. I just do not think that what they have proposed will ever work in Whitehall. We need to take more care with the preservation of the relationships that have been established by IfATE, which make it work so well. I do not see anything in the transition proposed here that does that and, as I said at Second Reading, I would like to know what is going to happen to the Careers & Enterprise Company.

[The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)]

I thank noble Lords for their broad enthusiasm for Skills England that we heard on this first set of amendments. I hope my response will reassure noble Lords not only that the intention behind the legislation is precisely to transfer functions from IfATE into Skills England—legislatively, that needs to be done via the Secretary of State—but that, furthermore, Skills England is already making an impact on the types of issues that have been identified in the debate. Legislation is important, but it does not always drive action. This Government’s absolute commitment to bringing the current fragmented landscape together has enabled us to make progress already, which I will outline for noble Lords.

The Institute for Apprenticeships and Technical Education has worked closely with employers to develop, approve, review and revise apprenticeships and technical qualifications. It is important to acknowledge IfATE’s achievements, most notably to develop and revise a suite of more than 700 high-quality occupational standards across sectors.

However, despite IfATE’s success in embedding employers into the processes for designing technical qualifications and apprenticeships, the wider skills system remains too fragmented and complex. It is insufficiently responsive to the present and future skills needs of the economy.

To address this fragmentation and unlock the potential for skills which drive growth and widen opportunity, we are creating a single organisation—Skills England. On the point sort of implied by some people that Skills England is, in some way, just a figment of Ministers’ imagination, I reassure noble Lords that it is not just the Department for Education; it is already operational in shadow form. Noble Lords may remember its announcement by the Prime Minister in July, which was one of the earliest actions of this Government. It is already driving change in the way that skills gaps are identified and how key organisations are working together to fill them.

On 24 September, Skills England published its first report, Driving Growth and Widening Opportunities, which provides an authoritative assessment of the key skills challenges that limit growth and opportunity, and an initial assessment of the skills needs in the economy. It also laid out its ambitions for the way in which it would operate, for noble Lords and others to read.

Over the coming months, Skills England will continue to work closely with government departments and relevant stakeholders to expand on the initial assessments of skills needs within 10 particular sectors, both identified in the industrial strategy and because they need quick action. Skills England will continue to develop a detailed, consistent approach to skills measurement and cement its position as the single authoritative voice on skills needs in the economy, which should be addressed to support growth and opportunity.

As I say, Skills England is already working across government. It is working with the industrial strategy advisory council to support the industrial strategy. Regarding when Skills England will broadly take on functions currently delivered by IfATE, it is our intention to lay commencement regulations promptly following Royal Assent to bring into force the provisions that transfer IfATE’s functions, along with its assets and liabilities. Skills England is already operational, and we are determined to ensure that there is no delay in enabling it to become even more effective.

The noble Lord, Lord Aberdare, referenced the Government’s post-16 education and skills strategy, which we are currently working on. I talked about the broad principles of the strategy at the Association of Colleges conference last week. We will publish a broad framework for that relatively soon, with further detail at the beginning of next year.

Skills England will provide an authoritative assessment of skills needs in the economy. It will then use those data and insights to develop and maintain a comprehensive suite of technical qualifications and apprenticeships. As I said, it is already working with key stakeholders to ensure that the identified need and available training are reflected in local and regional skills systems. In response to the noble Baroness, Lady Barran, who argued that it would be appropriate to run Skills England and IfATE concurrently, that would very much lose the benefit that comes from bringing those functions together so that the available training and qualifications that are developed exactly reflect the analysis that Skills England will be in a better place to do. Skills England will take on functions currently delivered by IfATE, delivering them alongside and in line with its broader strategic purpose. In doing so, it will ensure that the system becomes more responsive and better able to quickly and efficiently supply the skills most needed by the economy.

We intend to establish Skills England as an executive agency of the Department for Education. In our debates on the Bill so far, and in Amendment 33 in the name of the noble Baroness, Lady Barran, it has been suggested that Skills England should instead be established as a statutory body. I reassure the Committee that we have considered carefully the risks, opportunities and benefits of different models, to understand from the beginning how the organisation will be successful.

Thanks to the progress that IfATE itself has driven, the system for developing technical qualifications and apprenticeships has matured since IfATE was established in 2017. However, as I said, at the same time we have seen a growing severity in the skills challenges the economy faces. We need Skills England to be a different type of organisation, to support the Government’s growth and opportunity missions. Working as an executive agency, Skills England will balance on the one hand the need for rapid action and independent objective analysis of skills gaps and on the other—this was the point made by the noble Lord, Lord Johnson—proximity and clear links into central government to inform decision-making. This is an appropriate balance of independence and the ability to drive at speed what all noble Lords have argued is the impact that we need Skills England to have.

Skills England will, as with any arm’s-length body, be subject to the highest standards of governance and transparency, including any relevant requirements for review. I will come to some of the questions raised on that in a moment.

Clause 1 introduces Schedule 1, which transfers functions to the Secretary of State and will therefore enable Skills England to take on and deliver functions currently delivered by IfATE, alongside other functions as appropriate, in line with its strategic purpose. This will help address the fragmentation that is holding the system back and restricting improved workforce development and productivity gains.

Clause 2 introduces Schedule 2, which makes provision for a transfer scheme to transfer IfATE’s property, rights and liabilities smoothly to the Secretary of State. It will ensure functional continuity of property, rights and liabilities, including the many contracts that are critical to the operation of the skills system, and it will set a firm basis for the operation of Skills England.

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[Lord Knight of Weymouth (Lab)]

I am sorry to interrupt my noble friend’s flow, but is it likely that this framework document will address that issue of the Secretary of State becoming, in effect, the awarding body for T-levels? Does she have any reflection on how precarious that makes the Minister if things go wrong with being an awarding body, which they do? Sometimes that becomes a resignation matter.

[Baroness Smith of Malvern (Lab)]

Perhaps I could write to my noble friend with more details on that point. Currently, IfATE controls the licensing of T-levels, which is awarded to awarding organisations for them to develop and deliver. IfATE is not an awarding organisation but the contractor; that responsibility will transfer to the Secretary of State. It is the certification of T-levels that is delivered by the department. As I say, I will respond to my noble friend with a bit more detail on T-levels.

I was attempting to provide noble Lords with some assurance about the governance of Skills England through its framework agreement. On the point made by the noble Baroness, Lady Barran, about internal governance, Skills England will be run by a permanent CEO within a clear governance and accountability framework, and with a robust management structure at all levels. The CEO will be supported and challenged by an independent chair and a strong board with the experience and knowledge to support Skills England’s delivery. Once appointed, the chair and the board will help set the direction of the organisation, establish key relationships and provide important expertise on matters related to Skills England’s strategic aims and core functions. We are currently recruiting for these positions; we have received a large volume of very high-quality applications. In the meantime, I put on record my gratitude for the work of Richard Pennycook, who has been working as the interim chair of Skills England to support the creation of the new body.

I understand the noble Baroness’s specific point in relation to the governance and the reporting arrangements of the CEO, and I accept her point about the reporting arrangements and the role of the board. Perhaps I could come back to her with more clarity on her point about the advert for the CEO and where we see that accountability going.

[Baroness Garden of Frognal (LD)]

I apologise to the Minister but can she explain something? We are all talking about Skills England but there is no mention of it in this Bill. Can she explain why that is?

[Baroness Smith of Malvern (Lab)]

It is because, as with all executive agencies, the process for setting up Skills England as an executive agency does not require legislation, but for it to hold the functions that enable it to operate in the coherent manner I described, the functions currently held by IfATE need to be transferred to and delivered by Skills England as an executive agency of the DfE. It is the route through the Secretary of State that enables that to happen. I reiterate my earlier point: Skills England might not appear in the legislation in this place, but it very much appears on the country’s skills landscape. Notwithstanding the significance of the scrutiny that this place is able to give, as well as the concerns about Skills England’s longevity, that is probably more important than whether it is in a Bill.

The passage of the Bill provides an opportunity for both Houses—as we are doing today, in fact—to consider the approach we are proposing, which is to move away from the current, narrow IfATE model. Creating any further requirement for parliamentary approval before Skills England operates fully would frustrate the intentions of the Bill to enable a smooth transfer and the delegation of functions to Skills England; the efficient and orderly closure of IfATE; and the ongoing work in the service of employers and learners. I assure noble Lords that the practical transition of functions will be designed to ensure that, where standards or apprenticeship assessment plans are in the process of preparation or approval at the point of transition, these will continue. Similarly, approval decisions for technical qualifications that are part-way through the process will also continue. It is our intention that employers and other stakeholders perceive no interruption in that work.

The noble Lord, Lord Johnson, asked about the progress on the review of level 3 qualifications. Briefly, let me say that we will, as I have said all along, make public our decisions on the review of those qualifications; they are due to be defunded in 2025, before Christmas.

I have talked in the House about this Government’s commitment to the lifelong learning entitlement. We will now be introducing it for courses starting from January 2027, precisely to ensure that it has the impact that the noble Lord rightly identified that it can have for lifelong learning.

I hope I have set out the intentions behind Clauses 1 to 3. For these reasons and those that I outlined on the remaining amendments, I hope that the noble Baroness, Lady Barran, will not press her stand part notices and amendments.

[Baroness Barran (Con)]

I thank all noble Lords who contributed to this debate and the Minister for her remarks. I hope she heard loud and clear that no one in this Committee is arguing about the Government’s ambition for skills reform; rather, we are all rooting for success in this area. This is not about what the Government are trying to do but more about how they are trying to do it.

I was struck by the almost unanimity of view about the importance of greater independence from the department for Skills England. It was raised by the noble Lords, Lord Aberdare and Lord Knight of Weymouth. He triggered what I think is the ex-ministerial version of PTSD—I call it PLSD, or post-legislative stress disorder—by talking about the Schools Bill, but I will forgive him this once. Importantly, it was also raised by my noble friend Lord Johnson, who talked about the importance of credibility with employers, which need stability in our system, and by the noble Baroness, Lady Blower, who rightly mentioned the importance of bringing students, families and others on this journey.

I was also struck by the constructive tone of the noble Baroness, Lady Wolf, and the aspiration to make this the best it can be to deliver for our country. However, as the noble Baroness went on to say, there is a lack of confidence that this approach will deliver without that independence. Ironically, it is almost the fact that, as the Minister says, Skills England is already operating when the Bill has not even passed. It is just kind of happening within the department. There will be a framework published, but without any potential to input to it. It feels like DfE marking its own homework, which is not a healthy place to be.

I did not feel a lot of movement in the Minister’s remarks. I am sure that, when she looks at Hansard, she will note the strength of feeling across the Committee but, for the moment, I withdraw my opposition to the clause standing part.

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[Baroness Garden of Frognal (LD)]

My Lords, it is great to see the noble Lord, Lord Blunkett, with us, because his voice has enormous stature in these discussions. These amendments are all to do with the creation of standards. My noble friend Lord Storey added his name to Amendments 2 and 6, but we are broadly supportive of all the amendments in this group. It is vital that in any work-based qualification the voice of employers is heard loud and clear. I should perhaps have declared that I worked for 20 years for City & Guilds on what we always called “vocational qualifications”, because while some were technical, some were craft qualifications. I always regretted the fact that we had taken over the word “technical” to cover all those myriad work areas.

Of course, employers may not be expert in teaching or assessment, as we discovered in spades when we were developing national vocational qualifications. Employers had wonderful, grandiose ideas about all the things that they wanted to assess, but when we got the colleges and City & Guilds with them, they realised that if they wanted staff to know about fire, they could not actually create a fire for every member of staff to have a real experience of dealing with fire. Assessment bodies had their place, as well as the colleges.

I was working for City & Guilds when the first national vocational qualifications were established. NVQs were going to revolutionise the “skills” word with a very easy to understand grading, which would have enabled parents, teachers and everybody to understand exactly where the vocational system was in relation to the academic one. Alas, where are they now? Why do we have local skills improvement plans and partnerships if they are not to be used for all the skills they have in this brave new world? I think it is important that the Secretary of State must set the priorities for LSIPs and review them regularly to ensure that their priorities are reflected in national strategies for the creation of standards, so I think this set of amendments has a great deal to commend it.

[Baroness Smith of Malvern (Lab)]

My Lords, like others, I welcome the fact that my noble friend Lord Blunkett has both attended and made his usual well-informed and passionate contribution in this debate. It appears that very little in the way of ill health or accident will prevent him from making his contribution. We all hope that he recovers as soon as possible. He rightly made an argument about the centrality of skills for everything that the Government are trying to achieve. He is exactly right about the role of skills in delivering all the missions that this Government have set out: growth, opportunity for individuals, rebuilding the NHS, delivering a green superpower, providing opportunities for young people as part of the contribution to keeping our streets safer, and building new homes. I completely agree with him about that and I hope that his words will help our efforts with the Treasury in the way he identified to ensure that that is recognised there as well.

The debate on this set of amendments has been interesting. I will talk about the relatively narrow nature of Clause 4 in a moment, but noble Lords have understandably also taken the opportunity to argue for the significance of a broad range of inputs into the activity of Skills England. I agree with the overarching argument about the importance of the involvement of a wide-ranging set of stakeholders. That is how Skills England has already set off in its work. It has already begun to engage with a wide range of employer representative bodies, individual employers and education and training providers. As I said, it will work closely across government and, in working on the industrial strategy, it will work in partnership with business, devolved Governments, regions and other stakeholders in developing the industrial strategy sector plans.

As my noble friend Lord Blunkett emphasised, there needs to be a sectoral approach to the way we develop skills across the economy. That has been an early focus for Skills England. It will work with employer representative bodies and directly with employers. It will work with education and training providers and with mayoral combined authorities. My right honourable friend the Secretary of State and I had a good meeting just last week with mayoral combined authorities on skills, and Skills England has been meeting regularly with them. On the point raised by my noble friend Lady Blower, one of the important elements of Skills England has been the engagement of unions, in a way that was not the case previously in the development of the skills landscape. I hope that I can give noble Lords some assurance that that is already the approach that Skills England is taking.

Narrowing the discussion down more specifically to the nature of the intention behind Clause 4, I make it clear that this is to provide the Secretary of State with greater flexibility in the minority of circumstances where preparing occupational standards using a group would be disproportionate or unnecessary for the limited scale or nature of the change or where the system needs to move particularly quickly to respond to employer demand. With over 700 standards currently in place, this clause ensures that the system for preparing and reviewing standards is fit for the future.

[Baroness Wolf of Dulwich (CB)]

Can the Minister give an example of what might spark that off? I am finding it hard to imagine a situation in which it might occur.

[Baroness Smith of Malvern (Lab)]

I will be delighted to, and I was coming to that.

Before I do that, I note the comments of the noble Baroness, Lady McGregor-Smith, and repeat from Second Reading my gratitude for her contribution to the development of IfATE. I recognise her point about what is necessary to get employer engagement in some of the detailed work that IfATE has been engaged in and that will be transferred under this legislation to Skills England. She is absolutely right about that; it needs consistent work. But it also needs, as employers have told us, appropriate flexibility and agility to enable those standards to be developed in a way that reflects changing developments and does not put too onerous a responsibility on employers in terms of their engagement.

Let us be clear that the default position will remain that a self-forming group of persons will prepare a standard. It is probably worth noting that this definition of “a group of persons” also legislatively guided IfATE in its engagement on occupational standards and apprenticeship assessment schemes. Our proposals do not weaken legislatively the engagement of employers. When a group does not convene itself to prepare a standard for an occupation which the Secretary of State is satisfied requires a standard, the Secretary of State may convene a group to prepare one. In both circumstances, we would expect that such a group would normally, but not exclusively, include employers that are representative of that occupation. Only when the Secretary of State is satisfied that it is more appropriate for them to prepare a standard than for a group of persons will the Secretary of State then do so.

To come to the noble Baroness’s point, scenarios in which it may be appropriate for the Secretary of State to use this power to prepare a standard are those where using a group would be disproportionately onerous for employers or other stakeholders; unnecessary because only minor adjustments or revisions were required; or where it could create undue delays. This might include—I say for illustrative purposes—updating standards to align with changes to mandatory qualifications within the standard; creating or updating standards to align with industry-recognised qualifications or statutory requirements; or creating or updating standards more efficiently where employers do not have the capacity. We envisage that the Secretary of State may also use the power to create and update standards for emerging or rapidly developing occupations, such as those in the digital sector. The clause also enables the Secretary of State to ensure that standards are developed or updated quickly to respond to acute skills needs or urgent regulatory changes required in an emergency, such as the updates to the level 3 community fire safety adviser following the Grenfell disaster.

Finally, employers themselves tell us that current processes for preparing standards can feel slow, bureaucratic and time-consuming. This is not a criticism of IfATE; it is a criticism of a requirement currently in legislation that we want to use this opportunity to make more flexible. It is a barrier to their engagement. We want to focus their input where it has the most impact.

[Lord Aberdare (CB)]

Those are all reasonable grounds for using the power, but there is nothing in the Bill that says that the default is a group of persons or that those are the kinds of circumstances in which the Secretary of State might take the power. There is nothing in the Bill that reassures employers that the powers would not be used unreasonably. There is nothing to stop them being used in any circumstances; nothing says that using a group would have to be disproportionately onerous, or indeed what the definition of “disproportionate” or “undue delays” is. In one sense, I am reassured, but in another, I do not see why there cannot be something in the Bill that lays it out a bit more clearly.

[Lord Addington (LD)]

Before the Minister continues, I have been listening as attentively as I can manage. That exact thought occurred to me. Could we get something, such as some guidelines—or, at least, some idea of the current government thinking—on when you would not consult and the criteria around pressure and speed? This would put my mind slightly more at rest.

[Baroness Smith of Malvern (Lab)]

I hope to provide noble Lords some reassurance by way of guidelines, which I will come to in a moment, but I also hope to convince noble Lords—I shall try—that there is, in fact, a conflict between the idea of doing something as flexibly as possible in order to engage employers and spelling it in the Bill. I will make that argument as I continue.

I turn first to Amendment 1 in the name of the noble Lord, Lord Blunkett, Amendments 2 and 8 in the name of the noble Lord, Lord Aberdare, and Amendment 3 in the name of the noble Baroness, Lady Barran. They all relate to the membership of the group of persons. At present, as I have suggested, there are no statutory criteria that prescribe the make-up of a group that forms or is formed to prepare an occupational standard. Employers play a prominent role and are well placed to define or describe what occupational competence looks like in most cases, but different expert voices might have a role to play in different circumstances. This point was made by the noble Baroness, Lady Garden —although probably more with respect to assessment, which we will come on to in Clause 5.

We do not see any benefit in seeking to shape or fetter the structure of these groups with criteria that would prevent the membership of a group reflecting the specific factors relating to the need for its preparation. IfATE is under an existing duty to publish information about matters that it will take into account when deciding whether or not to approve groups of persons; I assure noble Lords that this duty is being transferred to the Secretary of State unamended, so it will remain in existence. Novel and additional criteria in primary legislation to specify the make-up of a group, for which noble Lords are arguing, might provide some assurance here. However, it would be a new constraint in the system.

Slowing down groups coming together, and slowing down the development and maintenance of occupational standards, could lead to a focus on ticking boxes instead of flexibly, broadly and inclusively finding the best people to define the knowledge, skills and behaviours required to be competent in the occupation. The optimal composition of a group will vary from occupation to occupation; for example, to represent the breadth of an occupation and the employers in it that will employ apprentices, it may be necessary in new, emerging or highly specialised occupations to look openly at who can bring to bear the relative expertise in the preparation of a standard. Retaining the existing flexibility around the make-up of a group of persons is critical to achieving high-quality occupational standards.

Amendment 4 in the name of the noble Baroness, Lady Barran, would remove the ability of the Secretary of State to prepare a standard if they are satisfied that it would be more appropriate for the standard to be prepared by the Secretary of State than by a group of persons. I hope I have assured the noble Baroness of the need for this greater flexibility. I reiterate that it is needed for a minority of cases to ensure that standards are kept up to date without a disproportionate burden, given the volume of standards that now exists.

Amendment 5 in the name of the noble Lord, Lord Aberdare, would create a duty on the Secretary of State to consult with the relevant industry skills and standards-setting body when preparing a standard. Such bodies are important to the preparation of occupational standards, and in most cases high-quality occupational standards are developed by an inclusive and independent group. In fact, current guidance states that groups must seek advice and guidance from organisations with responsibility in their industry for defining skills standards in England and the wider UK. We expect this requirement to remain.

I emphasise that in only the minority of circumstances, where the Secretary of State considers it more appropriate, will standards be prepared by them rather than by a group, so there is a role for industry bodies in this process and we expect that they will continue to be engaged. However, this amendment would undo the flexibility and efficiency sought through Clause 4, by placing a requirement on the Secretary of State to consult specific bodies when they consider it more appropriate for the Secretary of State to prepare a standard than by using a group. That would be exacerbated in circumstances where the relevant industry skills or standards-setting body is unable to participate when required. It therefore risks giving them precedence over others, including employers.

Amendment 6, also in the name of the noble Baroness, Lady Barran, and Amendment 7, in the name of the noble Lord, Lord Aberdare, would impose a duty to publish criteria for the preparation of occupational standards by the Secretary of State. To be clear again, employers remain best placed to define and describe what occupational competence looks like in most cases. As I have indicated, the Secretary of State would not convene a group in only a minority of circumstances. Setting criteria for that minority of circumstances would frustrate the necessary agility that this clause aims to bring to the process. It would restrict the Secretary of State’s ability to be responsive and to ensure that the suite of high-quality standards is kept up to date and relevant.

I hope that I have set out the intentions behind Clause 4 and provided some assurance and reassurance for noble Lords. For the reasons that I have outlined, I hope that the noble Lord, Lord Blunkett, will withdraw his amendment.

[Lord Blunkett (Lab)]

My Lords, I am grateful to my noble friend the Minister for her kind words, which I hope do not turn out to be a hostage to fortune. I am grateful to everybody who has contributed to a thoughtful debate.

As my noble friend the Minister described, we are debating areas that are obviously very much in flux. I was interested in the earlier debate about consistency and continuity on the one hand and collective memory on the other. It is important to carry this forward in a way that picks up the best of what is already in place and iterates that very speedily and easily, with the support and confidence of employers. The noble Baroness, Lady McGregor-Smith, was quite right to draw attention to the importance of that.

The amendments in this group were trying to explore the way in which the operation proceeds. There may be things that we come back to, as I know that amendments in later groups will return to this issue. On that basis, it is appropriate to withdraw my amendment now.

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[Baroness Smith of Malvern (Lab)]

I thank noble Lords for their concise contributions on these amendments. As the noble Baroness, Lady Wolf, made clear, that does not undermine how important the nature of assessment is. I wholly agree with the noble Lord, Lord Addington, that the best chance of getting assessment right is by engaging appropriately at the right time.

On Clause 5, we are talking specifically about proposals regarding apprenticeship assessment plans and the transfer of the function from IfATE. Clause 5 amends the requirement for assessment plans to be prepared by a group of persons by making it subject to a power for the Secretary of State to prepare apprenticeship assessment plans if that is more appropriate. This will simplify the process for updating and creating assessment plans.

Noble Lords will recognise that our previous discussion also related to the use of groups of persons. We might find that some of the considerations are similar, but I assure the noble Lord, Lord Aberdare, that I will have a few different arguments in response to this, not least because the arguments for apprenticeship assessment are different to the arguments for standards. But the principle about agility and flexibility remains at the heart of this.

Where the intention behind Clause 4, which we have just discussed, is to provide the Secretary of State with greater flexibility in a minority of circumstances in respect of preparing occupational standards, here we are concerned with flexibility in respect of apprenticeship assessment plans. In both cases, our intention is for employers to have a continuing and vital role in the composition of groups of persons. In both cases, it is important, as I am setting out, for the Secretary of State to have some limited flexibility not to define the membership of the group in advance and not to have a group if it is not needed in a small number of cases.

The default position will be that an assessment plan will be prepared by a group of persons that has been approved for this purpose. Only when Skills England or the Secretary of State is satisfied that it is more appropriate for them to prepare an assessment plan, rather than a group of persons, will the Secretary of State do so. Scenarios in which it could be appropriate to consider the use of this power are where using a group would be disproportionate or create undue delay—I hear the point made by the noble Baroness, Lady McGregor-Smith, about the need for speed.

Scenarios could be, first, updating assessment plans to make adjustments that do not materially change the assessment or occupation competence of learners—for example, where they are aligned to deliver the competence required by a regulator, such as in regulated professions in the health sector. In such circumstances, using a group is unnecessary and burdensome because it is a reflection of updating that has happened in a regulated profession. The second scenario is creating assessment plans for emerging occupations, such as certain digital occupations. The third is creating or updating assessment plans where there are acute skills needs requiring an urgent response, and where there is a lack of capacity in the system to respond. Relying on a group in instances such as these can create undue delays and hinder responsiveness. Without this clause, changes to assessment plans to reflect straightforward adjustments would incur delays and require unnecessary time and resource.

I note Amendment 11 in the name of the noble Baroness, Lady Barran, which seeks to remove the power held by the Secretary of State to prepare an assessment plan if they are satisfied that it would be more appropriate for the plan to be prepared by them than by a group of persons. However, for the reasons I have outlined already, it is crucial that we respond to feedback from users of the system to make the process for developing apprenticeship assessment plans more agile.

Amendments 9 and 15 in the name of the noble Lord, Lord Aberdare, and Amendment 10 in the name of the noble Baroness, Lady Barran, seek to set criteria for membership of a group of persons and to name in legislation a particular type of person that must be included as part of a group of persons. In the discussions on Clause 4, we went through some of the arguments about the impact this would have in reducing flexibility. There are no existing statutory criteria for how a group is formed to prepare an apprenticeship assessment plan but, as I said previously, IfATE is under a duty to publish information about matters it will consider when deciding whether to approve groups of persons. That existing duty is being transferred to the Secretary of State unchanged.

When a group is convened, it is critical to consider who the experts are in the field in question. The noble Baroness, Lady Garden, correctly identified that the experts in assessment will not always be the same as the experts in developing an occupational standard—and, of course, this will vary from occupation to occupation. Employers play a prominent role and are well placed to define and describe occupational competence, but they do not always exclusively hold expertise about how apprenticeships are assessed, and other contributions may be valuable. It is important that there is the opportunity for groups of persons responsible for preparing apprenticeship assessment plans to reflect and draw on a broader range of expertise, such as in assessment methodologies, practical training delivery and costs.

Professional bodies, awarding organisations, providers, regulators and others with a background in assessment can be well placed to be involved in the development of an assessment plan. In new and emerging occupations or highly specialised occupations, such as digital, artificial intelligence and nuclear, it may be necessary to take a broad and creative look at who is best placed to be part of a group preparing an assessment plan. There are scenarios where it is unnecessary or disproportionate to rely on a group to create or update assessment plans. For example, attempts have been made to convene a suitable group to update the interior systems installer assessment plan for nearly a year. This has significantly delayed the commencement of necessary, time-sensitive revisions in the important construction and built environment industry—a sector that is critical to this economy.

Setting criteria would therefore create additional hurdles for, and potentially even prevent, groups being convened. This would further slow the development of assessment plans and risk employers and others losing confidence in the system and in our ability to meet acute skills needs. It is not in anyone’s interest, not least learners or employers, to incur such delays. That is why we are removing unnecessary barriers to simplify and speed up processes.

Amendment 12 in the name of the noble Lord, Lord Aberdare, would undo the intended flexibility and efficiency by placing a requirement on the Secretary of State to consult specific bodies when they have considered it more appropriate for them to prepare an assessment plan than to use a group. That also risks slowing progress when that body is unable to participate, and it risks giving unintended precedence to those bodies over others who may be well placed to determine how competence should be tested.

I should also note that we see no reason why Skills England would not continue the approach currently taken by IfATE whereby all new assessment plans and those that have undergone material revisions—whether prepared by a group of persons or the Secretary of State—are published online for comment by any interested parties before approval.

Amendment 14, in the name of the noble Baroness, Lady Barran, and Amendment 13, in the name of the noble Lord, Lord Aberdare, would establish a duty to set and publish criteria in relation to the preparation of an apprenticeship assessment plan by the Secretary of State. As I emphasised, we are improving the system in response to feedback from key partners. Employers, trade bodies and providers tell us that the processes for developing and reviewing assessment plans need more pace and agility to respond quickly to changing and future skills needs. They report that current processes can feel bureaucratic, drawn out and time consuming—all barriers to the expert engagement that we need from them and to the smooth operation of assessment for employers and learners.

Setting criteria that the Secretary of State would need to meet in order to prepare assessment plans—in the minority of circumstances when it is more appropriate to do so than using a group of persons—would restrict the Secretary of State’s ability to be responsive. It would be overly prescriptive and fly in the face of stakeholders telling us that processes need to be simpler. I hope I have set out the intentions behind Clause 5 and, for the reasons I have outlined, I hope that the noble Lord, Lord Aberdare, will feel able to withdraw his amendment.

[Lord Aberdare (CB)]

My Lords, I thank all noble Lords who have taken part on this group, particularly my noble friend Lady Wolf and the noble Baroness, Lady McGregor-Smith, who added some valuable points. I thank the Minister, who mostly but not entirely managed not to give me the impression that I had wandered into a Groundhog Day scenario—there were some additional points there, I was glad to see.

The Minister emphasised agility and flexibility as the advantages of the proposed system. This is probably something wrong with me, but I have an inherent unease about flexibility in the hands of Secretaries of State when compared with flexibility in the hands of an organisation with an independent statutory role. The noble Baroness, Lady McGregor-Smith, mentioned that agility might not be quite such a feature once it gets into the hands of the department. Also, there is a slight conflict with the point that my noble friend Lord Hampton made earlier: employers are looking for clarity, and there is a slight danger of clarity being obscured by too much flexibility. Of course, all these concerns reflect points raised with me and, no doubt, with others by employers about the way the new system might work in comparison with the existing one.

Having said all that, I will study all the contributions, including the detailed differences from the previous set of amendments. Meanwhile, I beg leave to withdraw the amendment.

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[Baroness Barran (Con)]

My Lords, I was delighted to add my name to the Clause 6 stand part notice in the name of the noble Lord, Lord Hampton. Like him and the noble Lord, Lord Aberdare, I am baffled about why the Government do not want to review the approvals of technical education qualifications, published standards and assessment plans at regular intervals. As the noble Lord, Lord Hampton, intimated, it seems that the closer one is to the department and any Secretary of State, the more one will need independent scrutiny to retain the confidence of employers, learners and providers. Obviously, there is a risk that, without that independent oversight, standards of technical qualifications could be eroded or become less relevant than they should be.

Does the Minister agree that Clause 6 potentially introduces conflicts of interest? By removing the requirement for independent oversight, are the Government not placing an undue burden on those directly involved in the design and delivery of standards to act as their own assessors, where they end up marking their own homework? It would be helpful if the Minister could explain to the Committee why the Government do not believe that this level of scrutiny is needed. I absolutely appreciate that, in some areas, the review might be very light-touch—for example, because of the suitability of a set of qualifications—but we have seen how qualifications rise and fall in popularity and relevance over time. As we have heard from a number of noble Lords this afternoon, including the noble Baroness, Lady Wolf, there are clear calls from the sector for greater simplification of qualifications.

At Second Reading, the Minister committed to publishing information about the intervals for reviews of different qualifications. I wonder whether she could update the Committee on when that will happen.

Similarly, my Amendment 16 to Clause 7 seeks just to restore the status quo; namely, that the Secretary of State “must”, rather than “may”, make arrangements for an independent third party to carry out an examination of a standard or an apprenticeship assessment plan. As the Committee knows, independent reviews are there to provide feedback to policymakers and training providers by, for example, identifying areas for improvement and best practice. I very much hope that the Minister will consider this amendment and stand part notice positively.

[Baroness Smith of Malvern (Lab)]

I thank noble Lords for their contributions on this group. I feel confident in thanking noble Lords, because I am confident that I am on strong ground on this one. I hope nobody proves me wrong.

In preparing to transfer functions from IfATE to the Secretary of State, an assessment of the current operation of the system was undertaken to identify any functions that should be amended rather than simply being transferred in their current form. In that consideration, the proposal for a relatively small change to Clause 6 came forward. Clause 6 amends the requirement to review technical education qualifications and standards, and apprenticeship assessment plans, at regular and published intervals, by removing the requirement to publish information about the intervals at which reviews will be conducted.

The noble Lord, Lord Aberdare, argued, rightly, that there is a need for review. The point about this clause is that there is no change to the broader review requirement. The Secretary of State and Skills England will still be required to maintain arrangements to review approved technical education qualifications and standards, and apprenticeship assessment plans, with a view to determining whether they should be revised, be withdrawn or continue to be approved. I wholeheartedly agree with noble Lords who have said that that is an important function, and it is absolutely right that that duty should remain.

Removing the requirement to publish information about the intervals at which reviews will be conducted will allow Skills England to determine when reviews of technical education qualifications and more than 700 high-quality occupational standards and apprenticeship assessment plans should be carried out, based on need rather than a fixed review point, as is currently the case. Originally, IfATE expected to carry out reviews every three years but, with the proliferation of standards, assessment plans and technical education qualifications to review, it has been unable to do so; nor was it able to do this by undertaking reviews on a route-by-route basis. It has since adopted a more risk-based approach. The current approach, which fixes review points, has been too rigid and fails to recognise the differences in starts and achievement rates and rapid changes in skills needs; for example, where occupations evolve quickly.

Clause 6 will ensure that standards, technical education qualifications and apprenticeship assessment plans are kept up to date, coherent and relevant, and are reviewed appropriately. The amendment would remove a statutory obligation and provide the Secretary of State flexibility that is in line with the current risk-based approach taken by IfATE to determine whether a review should be prioritised; in other words, we believe that IfATE has arrived at the right, flexible position, but that would not be reflected without this legislative change. It recognises that flexibility is needed to take a targeted approach to administering the significant volume of reviews based on whether there are specific issues with the performance of the standard and how widely used it is, rather than on meeting an arbitrary timetable.

Without this clause, standards, technical education qualifications and apprenticeship assessment plans would need to be reviewed at published intervals, rather than based on need, preventing resources being deployed effectively to ensure that standards, technical education qualifications and apprenticeship assessment plans are kept relevant and up to date as required.

Amendment 16, in the name of the noble Baroness, Lady Barran, would remove the flexibility that we intend to create, and it would mean that the Secretary of State would be required to arrange for an independent third-party assessment for every new standard and assessment plan. Clause 7 amends the 2009 Act to substitute a requirement for independent third-party examination of all new standards and assessment plans with a discretionary power for the Secretary of State to make arrangements to do so. The default position will remain that the Secretary of State will make arrangements for independent third-party examination of new standards and assessment plans prior to their approval.

The clause will provide an alternative approach in certain circumstances where obtaining third-party examination is duplicative or not necessary. For example, the option not to arrange an independent third-party review might be deployed where employers place unequivocal high value in a professional body’s mandated qualification or key skills and behaviour learning outcomes, and where the occupational standard adopts that very closely, such as the CIPD and HR standards. In these cases, an external review would be nugatory.

In highly regulated occupations, such as the health sector, the regulatory requirements for occupational competence must be reflected in the occupational standard and assessment plan, and deviation from this is simply not possible. Again, the need for third-party review would be redundant.

Without Clause 7, examinations that do not improve standards and assessment plans but take time and resource to deliver would continue to be required. That would continue to place unnecessary burdens on those involved, slow down the process and make it excessively onerous.

For the reasons I have outlined, I hope the noble Lord, Lord Hampton, will feel able to withdraw his opposition to Clause 6 standing part of the Bill.

[Lord Hampton (CB)]

My Lords, I thank everybody who took part in this short debate. It is always quite exciting to see the noble Baroness, Lady Barran, describe herself as baffled—in my short career here, I have not seen that yet. The noble Lord, Lord Aberdare, and I talked about how there is no third-party examination and there is a conflict of interest. It looks like Skills England is not only marking its own homework but writing its own exams.

I did not join the Minister in her strength of feeling that she had got it absolutely right, because it is all based on need, but, again, who defines need? It is the Secretary of State. We are losing this clarity—this is a trust issue again. But I am sure that some conversations can be had between now and Report, so I withdraw my opposition to the clause standing part of the Bill.

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[Baroness McGregor-Smith (Non-Afl)]

Once more, I will say a few words about process and reiterate to the Minister my words on speed. Any changes to any process will slow things down; it will not improve in the short term. Creating constant momentum and change is really important, as is simplification. The more I think about having four regulators, the more worried—traumatised, almost—I begin to feel.

Whether or not we like what the current system has done and whether or not things need changing, it is important for us all to appreciate that the speed point is critical. I have yet to see things speeding up as systems move within government; they tend to slow down. So let us be very careful and cautious. I am nervous about the unintended consequences of change. Through all of this, there should be a delivery plan that talks purely about building momentum for the skills system. At the moment, we do not have that.

[Baroness Smith of Malvern (Lab)]

My Lords, in responding to this part of the debate, I am confident that I will be able to explain to noble Lords the intention of Clause 8; however, given the broader questions about the roles of a range of regulators in this field, I may well write to noble Lords to set that out, because it goes broader than Clause 8.

The amendments in this group relate to proposals regarding quality assurance and the accreditation of apprenticeships and technical qualifications. Section 138 of the Apprenticeships, Skills, Children and Learning Act 2009 allows Ofqual to set an accreditation requirement for individual qualifications or descriptions of qualifications. If it does that, any such qualification must be accredited before it is awarded.

Ofqual accredits a qualification submitted by an awarding organisation, first, if the awarding organisation has been recognised in respect of that qualification or type of qualification; and, secondly, if the qualification submitted meets the relevant criteria. This is a rigorous process that gives confidence in qualifications—our A-levels and GCSEs. However, since 2022, Ofqual has been prevented from making determinations on accreditation for technical qualifications. This means that, in respect of accreditation, technical qualifications are treated differently from academic qualifications and are prevented in all instances from benefiting from an important tool for ensuring quality.

Clause 8 will change that by enabling the Secretary of State to forge a route to technical qualifications being accredited. The clause provides the Secretary of State with the discretion to determine, should it be deemed appropriate, that an exception could be granted to the general prohibition on Ofqual being able to accredit both approved technical education qualifications and technical education qualifications that the Secretary of State is considering approving. This will mean that, where it is directed to do so by the Secretary of State, Ofqual could exercise its power to determine whether an accreditation requirement should apply to certain technical education qualifications, subject to appropriate consultation.

In some instances, the Secretary of State may deem it appropriate to ask Ofqual to consider whether imposing an accreditation requirement on the qualifications in question could help maintain their quality and signal to the wider system that they are broadly commensurate with other accredited qualifications in terms of rigour. For example, the Secretary of State could use this power in instances where it is important to ensure that students who opt into and successfully complete high-quality technical education qualifications are in no way disadvantaged as compared to their peers who pursue academic qualifications. They may consider, for example, whether a category of technical qualification provides a particularly important springboard for onward progression but where those who successfully complete the qualification may be competing with those who have studied other qualifications that have been accredited, such as GCSEs or A-levels.

It may also be the case that the Secretary of State therefore considers using this power where they are persuaded that a particular category of technical qualification is not subject to any broader review or has reached a certain level of maturity in delivery, and/or is being taken by a sizeable number of students. It is important that the potential for the accreditation of technical qualifications is reintroduced in the managed and considered way the clause allows. Here I come to the questions about why Ofqual does not have a complete permission and ability to consider technical qualifications.

The clause provides the Secretary of State with the discretion to determine, should it be deemed appropriate, that an exception could be granted to the general prohibition on Ofqual being able to accredit. This is because of the relative newness of many technical qualifications and is in order to consider carefully the interactions with the ongoing and vital reviews both of post-16 qualifications and of curriculum and assessment. These considerations are more significant for technical than non-technical qualifications. I say to the noble Baroness, Lady Barran, that we are doing this not because we necessarily have specific examples in mind but to enable them to be considered in response to some of the reviews, where it would seem appropriate.

Amendment 34, in the name of the noble Baroness, Lady Barran, would impose a duty on the Secretary of State, within six months of Royal Assent, to lay before Parliament a report on the effect of this Act on the powers exercised by regulators, including the Office for Students and Ofqual. We are committed to ensuring transparency in the way that the Bill’s powers are discharged and the effects that their transfer and execution will have on regulators, other public bodies and parts of government. We intend to follow the usual methods for agreeing and making this information available publicly and to Parliament, and therefore consider the amendment to be unnecessary, notwithstanding my commitment to write to noble Lords with some more detail about the way that different regulators work.

Specifically, Skills England’s published framework document will govern the relationship between the body, the department and the rest of government. There is a further and pre-existing published framework document already governing the relationship between the Department for Education and the Office for Students, and an equivalent document is being developed between the department and Ofqual to support effective working arrangements.

IfATE currently has memorandums of understanding with Ofqual and the Office for Students, and we anticipate that equivalent documents will be developed and published in respect of Skills England in due course. These documents will set out the nature of the relationship between Skills England and the regulators it will work with, in line with their respective framework documents.

For the reasons I have outlined, I hope the noble Baroness, Lady Barran, feels able not to press her amendment.

[Baroness Barran (Con)]

I thank noble Lords—or noble Baronesses—for their contributions to this short debate, and the Minister for her response and explanation of what Clause 8 intends to do, which, at least for the moment, I think I understand. What I heard her say is that the intent is to improve the rigour in the system and send a message to the system about rigour in relation to technical education qualifications, but that there are no current plans to use that power. That raised the question: if some qualifications are then accredited by Ofqual that have a particular status, what impact will that have on all the others? That is a little policy joy for her to consider. I very much look forward to her letter explaining the network of regulators and how this legislation will impact them, as I am sure other noble Lords do.

I very much support the comments from the noble Baroness, Lady Wolf, on the importance of moving on as quickly as possible with the lifelong learning entitlement. I hear loud and clear my noble friend Lady McGregor-Smith’s comments about the need for speed. The slight concern many of us might feel is that agility and speed are not always the first words that come to mind when thinking about central government.

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[Baroness Barran (Con)]

My Lords, I am grateful to my noble friend Lord Lucas for setting out so clearly the case for the appointment of a chief skills adviser and a network across government departments. However, I also have a lot of sympathy with the remarks from my noble friend Lord Johnson about the risk of duplication. In a way, this debate has made me feel like we are coming back to Clause 1 of the Bill, which I promised not to do, and to the appetite for understanding the Government’s thinking about how Skills England will work in practice. Clearly, this is a kind of alternative model.

I will make just a couple of brief points. In the previous Government, we benefited from the advice of Sir Michael Barber in his role as an adviser on skills policy delivery. My first point on that concerns the importance of the word “delivery”. His focus was on the delivery of skills policy. We all know that writing a great policy document is about 10% of the task while about 90% is effective delivery of that policy at scale, in real life. On behalf of my former colleagues in the department, I thank Sir Michael for his excellent advice in this regard; I had only one conversation with him but I have thought about it and used his advice many times since.

My second point is that Sir Michael reported not only to the Secretary of State for Education but to the Chancellor of the Exchequer. I wonder whether that is something that the Minister might consider.

[Baroness Smith of Malvern (Lab)]

My Lords, Amendment 17, which makes up this sixth group, was tabled by the noble Lord, Lord Lucas. As he outlined, it points us towards considering the case for a new and separate chief skills adviser—or, as I think the noble Lord described it, a network of chief skills advisers across government. I certainly agree that we need champions of skills in this country in a broad sense. Earlier, my noble friend Lord Blunkett made the case for having to make that argument across government and the challenges in doing so over the years. I do not dispute that need. Harnessing the skills of all our people is crucial to unlocking growth and spreading opportunity.

As it stands, our skills system is fragmented and not meeting the skills needs of either the economy or our people, so I have some sympathy with the idea that we need a unifying force that can also have an impact across government. However, that unifying force, as the noble Lord, Lord Johnson, said, is Skills England. As this legislation paves the way for us to establish Skills England, it is not necessary, I would argue, to include consideration of a chief skills adviser in parallel; doing so would only add a further layer of complexity and, arguably, make it less clear where the accountability for delivering a step change in skills provision sits.