Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [HL]
Tuesday 26th November 2024
(1 day, 11 hours ago)
Grand CommitteeInstitute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [HL] 2024-26 View all Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [HL] 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 38-II Second marshalled list for Grand Committee - (22 Nov 2024)
The Deputy Chairman of Committees (Lord Ashton of Hyde) (Non-Afl)
Good afternoon, my Lords. If there is a Division in the Chamber while we are sitting, which I do not expect, this Committee will adjourn as soon as the Division Bells are rung and resume after 10 minutes.
Amendment 18
Lord Storey
“Report: functions transferred to the Secretary of StateWithin six months of the day on which this Act is passed and annually thereafter, the Secretary of State must lay before Parliament a report, explaining how they have discharged the functions transferred to them by virtue of this Act.”Member’s explanatory statement
This amendment requires the Secretary of State to lay a report before Parliament at regular intervals detailing how they have used powers transferred to them by virtue of the Act.
Lord Storey (LD)
My Lords, I offer my apologies for not being able to be present at the first day in Committee, but I have read the Hansard of that day.
My amendment is very similar to lots of others in the various groups, and I think they all point to the same thing, really. The Minister talked about the “narrow IfATE model”. I would have thought an executive agency within her department is a very tight model, and I can perhaps see why from her point of view, whereas on these Benches we would prefer a wider, more inclusive model. Having said that, I understand and can see the driving force behind what the Minister wants to achieve from the comments she has made. She said that the Government want
“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”.—[Official Report, 21/11/24; col. GC 96.]
I suppose we are all anxious for progress in this area. The skills shortages are frightening. You have only to look at any particular industry. I have spoken to the construction industry, and the number of job vacancies and areas where it just cannot get skilled labour are holding back not just that industry but the country.
Given that we are where we are, and that I, no doubt like my colleagues, trotted along to the Bill office and said, “I’d like to put an amendment down on this”, to be told, “Oh no, it’s not in the scope of the Bill”—the Bill is very tightly written, so we are frustrated in that we cannot talk about or suggest for improvement some of the things in the area of skills that we wanted to—mine is a simple amendment. It simply says that the Secretary of State must lay before Parliament at regular intervals how they have used the powers transferred to them. It is a supportive and helpful amendment because you do not want, in 12 months’ or two years’ time, to say, “Do you know what? I’ve been let down by my executive agency. It has not delivered”. But if you are able to report to Parliament on a regular basis—it does not specify a time—then we can share those successes and concerns and maybe, from time to time, we can make some helpful suggestions.
I should add that I added my name to the amendment from the noble Lord, Lord Knight, which I also support. I beg to move.
Lord Knight of Weymouth (Lab)
My Lords, as the noble Lord, Lord Storey, said, this is part of a range of amendments all essentially about reporting and, as he accurately described, any number of us were wrestling with how to get something that looks like Skills England into the Bill. A way involved a reporting requirement— I was not allowed to mention Skills England in my amendment—in which I lifted some of the detail in paragraphs (a), (b), (c) and (d) from statements that the Government have made about Skills England and what they want it to be able to focus on and achieve. Hence the amendment lists:
“identification of skills gaps … the provision and funding of training to meet the skills needs of employers; … the development of occupational standards; …work with regional and local bodies to improve the skills of the workforce in England”.
I pay tribute to the noble Lord, Lord Ravensdale, for managing to get in something around the green skills agenda, which I tried to get in in my amendment but failed to draft it as skilfully as he clearly was able to do in order to get that in. I also support having a specific mention of the responsibilities in climate legislation and its relationship to green skills.
As I understand it, IfATE has a requirement to report to Parliament annually. It does so well and has shown its success, so the capacity is there, assuming that IfATE’s capacity will successfully transfer into the executive agency. So I do not see this as onerous, and it is important that we as Parliament should receive a report on the additional things that IfATE does not currently cover that would be covered by Skills England.
It is, incidentally, important for Parliament to have an opportunity to scrutinise the really important work that Skills England will be able to do. The annual report is a common mechanism that we all use when we are trying to get a little more traction for Parliament, but I think it is merited in this case. I hope that, reflecting on this group and the next, which is also about reporting in slightly different ways, the Minister will be able to give some consideration as to whether this is a relatively straightforward crumb of comfort to give some of us who have been slightly anxious about the absence of Skills England in the legislation.
Baroness Evans of Bowes Park (Con)
My Lords, I shall speak to Amendment 35 in the name of my noble friend Lady Barran, to which I have added my support. Although we have only just started this debate, the range of reporting requirements set out in amendments in the group and mentioned in the speeches we have already heard is because we are all concerned about the lack of detail and statutory underpinning for Skills England currently in the Bill. We share concern that there needs to be greater clarity and purpose for the organisation in the legislation. It is certainly that lack of detail about the way the Government will decide their strategic priorities and create new technical qualifications, where IfATE has previously acted independently and consulted with employers and businesses, that is the rationale behind the amendment I am speaking to now.
The amendment is an attempt to understand how the Government will make these decisions and mandate Skills England to publish the process it intends to follow. I hope that, in her reply, the Minister can provide some further detail and reassurance to the many in the sector who are rightly concerned by the uncertainty that the Bill is creating—about the lack of detail, in particular, on what were previously established and well-understood processes. In order for Skills England to have the effect that we all hope, the decision-making process it undertakes and uses to decide which sectors will receive new technical education qualifications needs to be transparent, robust and retain the confidence of employers, training providers and, of course, the students themselves.
I hope that, in addition to Amendment 35, the Minister will give careful consideration to Amendments 23, 31 and 36 in this group, which, if adopted as a whole, would bring some much needed further clarification and credibility to the work of Skills England from the outset and, as the noble Lord, Lord Knight, just said, provide a suitable opportunity for parliamentary scrutiny of its work.
Lord Addington (LD)
My Lords, it might be an appropriate time to mention my Amendment 22. There seems to be an unwritten law in Parliament that, if the noble Lord, Lord Addington, is taking part in an education debate, he has to mention special educational needs. Yet again, I remind the Committee of my interests in that area.
The opportunity for the cock-up school of history to strike has been pointed out here on numerous occasions. If you do not have an opportunity to write it in, it gets ignored and left behind. I am sure that a lawyer would be rubbing his hands at that, saying, “Yes, we have legislation that will mean you can get into it”, but, as we know, at the moment, special educational needs is an area that is a little too rich with lawyers and court cases. I hope that the Minister will be able to tell me that, in future, the Government will make sure that there is a clear and definable duty—and, indeed, limitations—for where special educational needs and disabilities have to be covered in getting qualifications, and that, where there are practical difficulties, we would find out what is going on.
The technology is moving on all the time. I thought the stuff that I was using for my day-to-day activity was cutting-edge 10 years ago and discovered that it is not, and that I should have an upgrade, often using stuff that is built into computers now. There is a need to address this. Exams are now so much easier to take by means other than pen and paper—indeed, it is the norm—but only if you make sure that the system works and is compatible with what is required out there, which means monitoring.
I hope the Minister will be able to give me an answer that means I can stop worrying, and that we can take the Pepper v Hart reference and use it in any future disputes. Unless we get somebody who is on the ball and being told they have to do it, history says that the aforementioned cock-up school of history will come in and we will make other lawyers happy and certain candidates unhappy.
Lord Aberdare (CB)
My Lords, I never know what the protocols are for when to speak in Committee, but since both the amendments that I have added my name to in this group have been introduced, I will leap in. I hope the Minister does not think I am stalking her, having attended her evidence session this morning with the Industry and Regulators Committee, which was very interesting. I also look forward to reading the Government’s new White Paper Get Britain Working.
I have added my name to Amendment 18 in the name of the noble Lord, Lord Storey, which I see as a catch-all for some of the reporting required from the Secretary of State by many of the amendments tabled. Of the 22 amendments we are discussing today, 12 would require the Secretary of State to produce reports, so I very much welcome the idea of the noble Lord, Lord Knight, that an annual report might cover most if not all of those requirements.
I have also added my name to his Amendment 23, another reporting requirement, which focuses on many of the central functions of Skills England, identifying skills gaps and shortages and promoting ways of addressing them. It includes looking at training needs. One thing I would add to that is the education side of the picture, not just the training stage: making young people aware of the skills they need to find rewarding employment suited to their abilities and of the range of opportunities available to them.
I also welcome the inclusion in the amendment of working with regional and local bodies. I would expect to see Skills England, as I think the Minister mentioned this morning, playing an active role in consolidating local skills improvement plans, to ensure that, together, they properly address national as well as local needs and seek to forge a joined-up approach between the different government departments, which might otherwise be tempted, as they have been in the past, to develop their own skills policies that may not add up to a coherent whole. I am pleased to add my support for those two amendments.
Lord Blunkett (Lab)
My Lords, I was pleased to add my name to Amendment 23 in the name of my noble friend Lord Knight, and I thank noble Lords who have supported Amendment 31 in my name. I said quite a lot last Thursday, which seems a lifetime ago—I was on so much medication I would have been disqualified from the Olympics—so I will try to keep it brief today.
Amendment 31 has elements which have already been overtaken by announcements by the Government, reinforced, at least as far as I can manage to access it, by the White Paper produced today. Thankfully, the foreword, signed by four Secretaries of State, mentions skills a lot and indicates the critical importance of the skills agenda to getting some of the 2.8 million people who are economically inactive back into work. It also mentions the youth guarantee and the reappraisal of priorities—for Skills England, I hope, but it is not entirely clear who is making decisions about what in terms of the growth and skills agenda and the new levy, and therefore who has actually made the decision in respect of what we are pressing for and what has been pressed for publicly in terms of prioritising entry-level and foundation apprenticeships.
Baroness McGregor-Smith (Non-Afl)
My Lords, I just want to give some context on IfATE being a statutory body, since I chair it. Statutory bodies take their responsibility very seriously when they issue reports to Parliament. First, when we go through that detail at IfATE annually, it is a rigorous and detailed process. It is absolutely evidenced and fact-checked. I would like to see that level of reporting, or even more, done in Skills England. I will not stand up and say that I am the expert on mechanisms, but I am concerned to think that that level and standard of reporting will not happen under a new, enhanced body.
Secondly, it is important that we do not lose sight, during the progress of the Bill, of what this transfer of powers is going to do. By transferring the powers of IfATE to the Secretary of State, we transfer the approval of technical qualifications as a whole—an end-to-end process that is understood and respected by employers and understood by colleges. Everyone must understand how qualifications will be arrived at and approved. I would like some assurances from the Minister that that process of end-to-end scrutiny with employers will continue and be enhanced in Skills England.
Lord Watson of Invergowrie (Lab)
My Lords, I am pleased to speak in support of my noble friend Lord Blunkett’s important Amendment 31 on apprenticeships and the growth and skills levy. Although it is important that apprenticeships are available to all age groups, thus ensuring that lifelong learning plays a key role in skills development in the years ahead, I am particularly keen that more young people should see them as a first step on a career ladder. That is clearly set out in Amendment 31.
Unfortunately, the bright new dawn that many of us expected when the apprenticeship levy was introduced in 2017 has failed to materialise. Noble Lords will be familiar with the analysis commissioned on behalf of the Association of Colleges earlier this year, which showed —I think this was for 2022-23—that some 160,000 fewer apprenticeships were started than in 2017. You might ask “How on earth can that possibly be the case?”, but it is. That decline was particularly alarming because it disproportionately impacted on those most in need of training, particularly younger people and those from disadvantaged backgrounds.
There were regional aspects to it as well, because the decline was particularly prevalent in regions of the country such as the north of England, which traditionally had high levels of apprenticeships, and among SMEs. There are particular structural issues with the levy for SMEs, but that is for another day. That decline in the apprenticeship statistics must be reversed and returned at least to the pre-2017 levels, so I was pleased to hear my noble friend the Minister say on Second Reading that foundation apprenticeships are to be developed as an alternative route for young people who may have faced barriers in the past.
The noble Lord, Lord Storey, recounted how difficult it had been to get some of his amendments tabled, because the words “Skills England” could not be used. In today’s Marshalled List, any time that “Skills England” is mentioned it is in quotation marks. It is almost as if it is some soiled rag that needs to be picked up with a glove and held at some distance from your body. It is astonishing. Why should we be so afraid to say that, when we all know what we are talking about here? Let us just be open about it.
Critical to the effectiveness of “Skills England” will be the reshaped growth and skills levy. That must be released from the straitjacket of its predecessor, whose unspent employer funds reverted to the Treasury rather than being retained in the education and training budget. I think that there was some disappointment across the House that the Chancellor had nothing to say about the growth and skills levy in the Budget. I am at a disadvantage because I have not had the opportunity to look at today’s White Paper, to which other noble Lords have referred, but I hope that my noble friend might be able to say something about the growth and skills levy in her reply in respect of this amendment, regarding the scope and level of investment that it might enjoy.
This must affect local priorities, of course, which is why the amendment stresses the role of local skills improvement plans in delivering the co-ordination needed to plug the skills gaps. LSIPs already play a role there and I retain my belief that Skills England should be established as a statutory body, rather than an executive agency, the better to co-ordinate efforts across departments to ensure that we have the most effective approach and that we develop the skills that the country needs going forward.
That said, it is encouraging that Skills England, still in skeletal form, has already published its first report. Its title, Driving Growth and Widening Opportunities, is one that it must live up to. The report to Parliament outlined in Amendment 31 should further concentrate minds in the DfE to set out the direction being pursued and to provide a clear delineation of Skills England’s role in that, having been given those tasks and—I say this only to be helpful, I hope, to my noble friend the Minister—looking to the outcome of a buoyant skills landscape, which the Government and every noble Lord here today want to see emerge.
Baroness Wolf of Dulwich (CB)
My Lords, I support this amendment. Indeed, I express strong support for all the amendments that have managed to get themselves tabled in spite of the language of this Bill, which at this point are just calling for report. It seems quite extraordinary that, at a time when we have a Government who recognise the centrality of skills and have committed to a system-wide approach—as in today’s White Paper, for example—we are being asked to pass legislation that puts everything inside the department, reported to a DfE official, so that under this Bill there is not even a report for other government departments, never mind for the public at large and for Parliament. I cannot believe that this makes sense in terms of the Government’s expressed ambitions for Skills England: that it should be system-wide; that it should do something that goes beyond the remit of individual agencies and quangos; and that it should take in the whole scene effectively. I would very much prefer to see it as a statutory body, but I hope that, between now and Report, the Minister will at the very least take away this widely expressed request for us to have regular public reporting of what is going on, which everybody can use, so that we have documents in the public domain allowing us to see what is happening and how the Secretary of State’s new responsibilities are being carried out.
Lord Johnson of Marylebone (Con)
My Lords, I add my support for Amendment 36 in the name of the noble Baroness, Lady Barran. Like other amendments, it calls for—among other sensible things—a report, in this case on levels of investment in skills by employers.
If you have believed the CBI over the past few days, you would think that the investment climate for business had taken a turn for the worse in recent weeks, with what it is calling the “triple whammy” of increased employers’ national insurance contributions, the higher national minimum wage and various changes in labour market rules. The CBI feels that there is a palpable sense in the business community that the UK is becoming a more difficult environment for investment. Of course, skills are very much part of that picture. There is a clear risk that our levels of investment in skills, which are already running at half the levels of our peer group in the OECD, will suffer further if this climate of paralysis in the UK with respect to business investment is allowed to continue.
On the uncertainty that noble Lords have alluded to with respect to big government policy, notably the development of the growth and skills levy and the future of the LLE, these things may become compounding factors that risk current low levels of investment in skills dipping even further. Clearly, we cannot afford that as a country, so I believe it is vital that the Government take steps as rapidly as possible to lift the policy uncertainty that will potentially blight levels of investment in skills over the current year and accept the amendment, which will provide a healthy baseline against which we can measure progress in this respect in the months to come.
Lord Hampton (CB)
My Lords, I have a tactic nowadays of speaking towards the end, when everybody else has said it better than I can. I just want to add that I have put my name to Amendment 18, and I agree with Amendment 23 and pretty much everything that includes the word “reporting”.
I am slightly concerned that our positions became entrenched in the last day in Committee, and that nimbleness is seen as being reduced by reporting. There is a lot that we do not know and a lot that we need to know. In my own profession of teaching, we have to teach with the door open and, at any time, somebody senior could come in, observe your lesson and give you formal feedback. At the very least, you get one formal observation a fortnight and—let us face it—we all work better with that kind of incentive. Skills England needs to be held to account; otherwise, we are looking at it being held to account by Henry VIII.
Baroness Barran (Con)
My Lords, I am also slightly uncertain about the order of speakers; I thought it was in the same order as the amendments.
The Deputy Chairman of Committees (Lord Ashton of Hyde) (Non-Afl)
It can be in any order.
Baroness Barran (Con)
It can be in any order. I rise to speak to my Amendments 35 and 36 and to support Amendment 31 in the name of the noble Lord, Lord Blunkett. Before I talk to the amendments in detail, I will reflect briefly on some of the important points that were raised earlier in Committee and that have a bearing on the groups that we will be debating today.
In addition to the fundamental concerns raised about the abolition of IfATE, which we have heard again from your Lordships today, and the absorption of its powers by the Secretary of State, we heard concerns from my noble friend Lady McGregor-Smith about how long it takes for a new body to bed in and gain the trust of employers and, again from her, from my noble friend Lord Johnson and from the noble Lord, Lord Blunkett, about the risk that we lose momentum in implementing the Government’s skills reforms. Similarly, the noble Baroness, Lady Wolf of Dulwich, and the noble Lords, Lord Aberdare and Lord Knight of Weymouth, among others, expressed their doubts about the Government’s approach.
In particular, there was a real sense, as we have heard again today, that everybody wants Skills England to succeed but there is a worry that it will be swamped by the volume of technical work that it will have to do, which could prevent it from delivering on the changes that the nation needs to see. I absolutely echo the earlier words of the noble Lord, Lord Blunkett, in hoping that the Government will bring forward their own amendments to address these concerns on Report.
My Amendments 35 and 36 seek to bring some focus and clarity to the work of Skills England by requiring regular reporting to Parliament. I congratulate the noble Lord, Lord Aberdare, on the 12 different versions that he tracked in the Marshalled List. Without this, Skills England might disappear from view, buried under a mountain of technical processes. Importantly, critical accountability disappears with that; we will not be able to name who is accountable for different decisions.
I will first explain my Amendment 35. There are many people in the sector who are concerned by the uncertainty that the Bill creates surrounding previously established processes, such as the granting of new technical education qualifications. As your Lordships know, IfATE was an independent body and new qualifications were decided with the help of employers and businesses, informing them what skills were needed in the economy. However, with the arrival of Skills England we need to understand two things: first, how will the Government decide on its strategic priorities and, secondly, how will this be operationalised in the creation of new technical qualifications? With this transition, it is likely that the processes to decide which sectors receive new qualifications could change, so my Amendment 35 seeks to clarify how these decisions will be made and what will guide this decision-making. We need a level of transparency that retains the confidence of employers, training providers and, crucially, students for this approach to have a chance of success.
Next, I will give details on my Amendment 36, which seeks to place a duty on the Secretary of State to produce an annual report on various skills metrics. Your Lordships will have noted that this is a long list that reflects the complexity of this area. There may of course be better metrics and, ideally, a shorter list, but this is our starter for 10—or perhaps I should say 12, since the list stretches from paragraphs (a) to (l). I will go through these points individually—I apologise to your Lordships for the length of this, but it underlines how many areas we do not have clarity on where we need clarity.
Paragraph (a) in the proposed new clause seeks clarity on the level of need or skills gaps by sector, level of qualification and region. Without this, I fear we will get a generic report with broad-brush headings that might well reflect the national averages but does not give any actionable insight about where to focus or prioritise, or about the amount of progress made from year to year.
Paragraph (b) aims finally to bring some consistency to different qualifications across the sector, particularly as they apply to key core competencies. At the moment, we have a long and varied list of qualifications, and they are not really interoperable. For example, the standard of generic digital skills is not the same in two digital skills qualifications at the same level, and this contributes to the complexity of our system and is a blocker to streamlining it. This would be a key step to achieving the aims also mentioned in paragraph (i).
Paragraph (c) intends to give visibility to the earnings impact of completing different qualifications at different levels and in different regions. I do not think that we could answer that question today with solid data.
Paragraphs (d), (e) and (f) follow the same structure as paragraph (c) but in relation to how the Government are spending their budget in the area and how the landscape is evolving in terms of new qualifications, as well as the impact of both of these on trainees.
Paragraph (g) intends to explore whether the system is still meeting employer needs. We keep hearing from employers an urgent need for more clarity on what would happen if there were a gap in, say, engineers on Teesside, and what the Government, through Skills England, would do about it.
Paragraph (h) turns to the funding of skills training by employers. I thank my noble friend Lord Johnson for his comments on this. As he said, this is an area that we all know has declined significantly in real terms over the past 20 years, and we now lag badly behind other industrialised nations. We hope that there is some way that this can be measured annually to shine a light on this important area, both in financial terms and in relation to take-up by employers of new qualifications. Of course, this will be impacted by changes to the apprenticeship levy that the Government have proposed.
All these elements intend to create a far clearer picture of the impact of technical education qualifications on the people who take them, and the differences that happen through their learning. It also seeks to explore the way in which Skills England will work differently to IfATE and to provide an outcome-based framework by which its efficacy can be judged and adapted if necessary.
The letters after that intend to provide a framework to evaluate Skills England more generally, judged on the factors that matter to both employers and students. As noted above, paragraph (i) intends to ensure that this new system is created in a manner that is easy to understand for employers and students. For example, it is unclear how and where the Secretary of State will get advice on the content, accessibility, assessment and rigour of T-levels. This has much in common with Amendment 30 in the name of the noble Lord, Lord Blunkett.
Paragraph (j) seeks to get regular updates on the impact of changes in the post-16 education strategy that the Government have committed to delivering, and its inclusion would commit the Government to detailing how they are delivering the objectives of the new strategy and what difference it is making on the ground.
I hope that, if my noble friend Lord Lucas reads the Hansard of this debate, he will be pleased to see paragraph (k), which looks at careers advice and seeks to ensure that there is a sufficiency—to be clear, I mean quality rather than just volume—of careers information, advice and guidance.
Paragraph (l) mirrors the wording in paragraphs (a) to (c) in subsection (1) of the proposed new clause to be inserted by Amendment 31 in the name of the noble Lord, Lord Blunkett. This would ensure that the Government’s reforms focus on the areas where there is the most urgent need for increased participation.
Finally, I want to touch briefly on Amendment 31 in the name of the noble Lord, Lord Blunkett, which I support; I have already spoken about its proposed subsection (1). The second subsection seeks to get a clearer sense of how the skills and growth levy will operate in practice and to build on the promising start that we have already seen from the local skills improvement partnerships.
I look forward to hearing the Minister’s comments on this, but I hope that she has heard the message from all noble Lords who have spoken this afternoon: there is a pressing need to build confidence in the Government’s approach. A commitment to putting Skills England on a statutory footing, linked to a rigorous reporting regime, would be a helpful step in that direction.
Lord Ravensdale (CB)
My Lords, I declare my interests as set out in the register, including as a chief engineer working for AtkinsRéalis and as a director of Peers for the Planet. I shall speak to my Amendment 36A; I thank the noble Lord, Lord Knight, for his earlier support. I agree with the noble Lord, Lord Watson: I am a bit bemused that I was unable to mention Skills England in my amendments, but we are where we are.
The skills landscape in the UK is undergoing seismic change and gearing up for both the industries of the future and the energy transition. In my engineering business, we are recruiting as fast as we can to deliver the transition in clean energy that is currently working its way through the economy. Renewables, carbon capture, nuclear, hydrogen and grid expansion are all seeing bottlenecks in terms of the skills availability in the UK to deliver the Government’s aspirations in this area. Of course, net zero is much broader than just the energy system. It is interesting to note, perhaps, the success that we are having in reskilling engineers from other industries. For example, we have recruited from Dyson many engineers who have fallen victim to the recent job cuts there and reskilled them to work on clean energy projects. They have gone from designing vacuum cleaners to designing nuclear reactors—no problem.
In 2021, I worked on my first Bill, which became the Skills and Post-16 Education Act 2022. Following the excellent work of the noble Baroness, Lady Hayman, and others, the Government agreed to include a climate duty in local skills improvement plans; this was a great step forward. Although that climate duty is very welcome for the development of LSIPs, what we have seen to date is quite a piecemeal approach in that area. I set out some of the issues with LSIPs at Second Reading, including the need for a greater, systems-level join-up of these plans in order to avoid duplication and ensure consistency.
At the heart of this is the fact that we are currently without a national picture of how the UK can prepare workforces to close the skills gaps related to our net-zero targets; to seize new net-zero opportunities; and, crucially, to address the challenges posed by transitioning from high-carbon sector roles, for example in the oil and gas industry. That last point is crucial in maintaining public support for this agenda.
Some really good work has been done at a sector level, which I think we can work from. I highlight the excellent work done by the Nuclear Skills Taskforce, which resulted in the National Nuclear Strategic Plan for Skills. Crucially, it recognised that a tailored approach to the UK regions was necessary; as a result, we now have a number of new regional skills hubs for nuclear that co-ordinate approaches across regions, all tied together through an overarching strategy. We can learn from that. In the Midlands, we are planning to expand this regional hub approach more broadly across clean energy. One of our offers to the Government includes working to set up regional skills hubs and to provide the skilled workforce that will be so important if we are to maximise the opportunity from the energy transition. But we do need that national plan.
It reminds me in some ways of the commonality here with how we are implementing clean energy. We have local area energy plans rolling up to regional plans and the national plan, which is the Strategic Spatial Energy Plan. In the same way, we need that roll-up through the skills system, as also brought out by the noble Lord, Lord Blunkett, in his excellent Amendment 31.
The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)
My Lords, in speaking to amendments in this first group, I wholly recognise the point made by noble Lords that this is about the importance of accountability and reporting, and I begin by reassuring your Lordships that the department, in this legislation and all the work we have done so far, takes transparency, accountability and reporting very seriously, including to Parliament. As the noble Lord, Lord Aberdare, said, I was accounting to the Industry and Regulators Committee just this morning on the inquiry that my noble friend Lord Blunkett referenced. Alongside my honourable friend the Minister for Employment, hopefully we both demonstrated cross-government working and gave a considerable amount of detail on a range of issues that have been raised during the course of this debate and were raised last week as well. In addition, the Government have today published the Get Britain Working White Paper that noble Lords have referenced.
I will just say, in response to the points made by my noble friend Lord Blunkett about the name of the Bill, that I remember, back in 1997, sitting on the Bill Committee for that piece of legislation. I was not clear at the time that the name had been as significant as my noble friend suggests, but I know that what was included not only in that legislation but in the commitment of that Government to make progress was what made such a difference to the education system under the leadership of my noble friend and that Labour Government.
All noble Lords have complained about how difficult it was to talk about Skills England, while talking at length about Skills England. Nevertheless, I would argue that there is a lot of information already in the public domain. In less than three months, this Government announced Skills England and ensured its first public report was delivered, which talks a lot about many of the questions that noble Lords have rightly identified as important: where are the current skills gaps; what will be the role of Skills England; how will Skills England work across government and with other stakeholders, including employers, trade unions and others? That was in less than three months after the start of the Government.
But we take accountability and reporting seriously and, as noble Lords have said, Amendments 18, 23, 31 and 36A, in the names of the noble Lords, Lord Storey, Lord Knight, Lord Blunkett and Lord Ravensdale, and Amendment 36 in the name of the noble Baroness, Lady Barran, all touch on that issue.
Through this legislation specifically, as we discussed last week, functions currently held by IfATE will be transferred to the Secretary of State, who is already accountable to Parliament. This fundamental accountability to Parliament naturally includes the exercise of any functions that are transferred from IfATE through this legislation. However, I understand that we need to go further than that to reassure noble Lords about the public accountability of Skills England. These functions, having been transferred to the Secretary of State, will be exercised by Skills England where appropriate.
As already discussed, we intend for Skills England to operate as an executive agency of the Department for Education. I emphasise that we are establishing Skills England as a new arm’s-length body, not as a department within the DfE or, as one noble Lord suggested, in some corner of Sanctuary Buildings. In establishing it as a new arm’s-length body, the department will adhere to the requirements set out in guidance published by the Cabinet Office, which provide the highest standards of corporate governance. Once set up, Skills England will report on its functions and performance in publicly available documents. In response to several noble Lords who argued for Skills England producing an annual report, I absolutely commit to that. In response to the noble Baroness, Lady McGregor-Smith, I assure her to the extent possible that equal care will be taken with that report to ensure that it is rigorous and accurate.
I can go even further than that. A sponsor Minister within the department will be accountable to Parliament on all matters concerning Skills England, including setting the policy framework in which it will operate. We will ensure that an annual letter from the Secretary of State sets the priorities on which Skills England will focus. That letter will also be publicly available.
As discussed at last week’s session, a framework document will be agreed between the Department for Education and Skills England in accordance with the Treasury’s handbook Managing Public Money. That publicly available document will set out matters including the governance and accountability framework within which Skills England will operate, Skills England’s core responsibilities and how the relationship between Skills England and the department will work in practice, including on financial matters. This will include setting out the responsibilities of the chief executive to the board and to the department. Once in place, the independent board will provide scrutiny of Skills England, ensure that it is operating effectively within this framework and provide assurance functions, as well as leadership and direction.
In response to the specific points made by noble Lords, particularly my noble friend Lord Watson, about progress on the growth and skills levy, first, we have committed to developing the growth and skills levy out of the apprenticeship levy precisely because we have heard calls from business for greater flexibility in our apprenticeships system and on how employers spend levy funds. It is true that fewer young people are starting apprenticeships now; there has been a 40% drop since 2015-16. That is why a key first step we announced back on 24 September was shorter-duration apprenticeships and new foundation apprenticeships for young people in targeted, growing sectors. These will help more people learn high-quality skills at work and fuel innovation in businesses across the country. The reformed growth and skills levy will also enable employers to fund training that meets priority skills needs identified by Skills England.
The noble Lord, Lord Johnson, rightly made an important point about the fall-off that we have also seen in employers’ investment in skills—an issue that we discussed at some length in the committee that I attended this morning. However, it is certainly the case that one of the things that would be likely to encourage employer investment is the flexibility and the listening to businesses that we have already done in order to ensure that the products available respond to the concerns of employers, both for more flexibility and for those changes to apprenticeships that will enable them to use them more freely.
This new offer will also be aligned with our industrial strategy, which I will return to in a moment, thereby creating routes into good skilled jobs in growing industries such as construction, digital and green skills. Skills England is currently engaging on the details of the growth and skills levy, and we expect to be able to say more about that when Skills England has completed that engagement in the spring next year.
I move on to the reporting requirements that the noble Baroness, Lady Barran, included in her Amendment 36, all of which I consider to be important to be in the public domain. Much of what the Secretary of State would be required to report on as a result of that amendment, however, is already publicly available, or will be available as a result of the establishment of Skills England. I hope that I can provide some reassurance to noble Lords about that. Skills England will consolidate different sources of data and insight to inform its assessments of national and regional skills needs, which it will publish regularly. As I have already alluded to, the shadow Skills England published the first such assessment in September this year.
Skills England will also publish further analysis, including the delivery of a standardised taxonomy for the UK and mapping of education pathways to understand the most common routes into priority professions. The noble Baroness, Lady Barran, is right to say that it is important to bring greater clarity for learners about the appropriate pathways and routes. It will continue to provide published assessments of skills analysis as needed in support of the industrial strategy and the growth and opportunity missions.
Alongside Skills England, the Department for Education publishes a comprehensive catalogue of data. There are currently 11 statistical summaries available relating to further education and a further 119 datasets publicly available to explain the statistics. These include the Employer Skills Survey, which provides information on the skills challenges that employers face within their workforce and when recruiting, the nature of any training provided, and awareness and involvement in various initiatives and programmes. They include apprenticeship data that includes starts, achievements and participation, as well as breakdowns by age, sex, ethnicity, subject, provider and geography, and they include statistics on the employment, earnings and learning outcomes of further education learners in the year after completion of their qualification, including national and regional breakdowns available, and are split by the level and sector subject area of qualification.
Given the significant amount of data already published and Skills England’s role as the single authoritative voice of skills analysis and its publication of data and insights, placing an additional requirement in statute on the Secretary of State to report on a long list of different skills metrics is not necessary. We are taking action through Skills England to ensure skills, data and insight are better used to identify skills gaps and to help determine how they should be addressed. We have been clear from the outset that this is central to its role within an improved skills system.
Lord Storey (LD)
My Lords, I listened with great interest to what the Minister said and will read Hansard carefully—particularly her comments about accountability and accessibility to all. But, at this stage, I beg leave to withdraw my amendment.
Lord Addington
“Report: effect on other Government departmentsWithin six months of the day on which this Act is passed, the Secretary of State must lay before Parliament a report on the impact of this Act on the remits of all government departments.”Member’s explanatory statement
The amendment requires the Secretary of State to lay before Parliament a report detailing the impact of the Act on the remits of all government departments.
Lord Addington (LD)
My Lords, noble Lords will not be surprised to find this amendment in this group, which basically says, over and over again, “Tell us what you’re going to do in this new structure”. It starts by saying that, when the new structure is in place, we will find out how it will relate to the rest of government. The noble Lord, Lord Blunkett, tabled an amendment—to which I put my name—that mentions the departments. Either amendment would do, but, starting with government, at least government can talk to itself quite easily—or it should be able to. We all know that it does not often happen and that there are different agendas, but it should be able to happen. Other amendments in the group track different groups in a similar vein: they all want to know how we will structure this new arrangement for skills, which is necessary for growth going forward.
There is not much point in going on because, as the noble Lord, Lord Aberdare—who is a contributor to this—pointed out, everybody is in agreement that we do not have enough knowledge. When the Minister answers on these amendments, can she tell us how the Government intend to bridge this gap? If we just say that it is all published somewhere, that will not really do it. It should be published in a place where we can find it out and get hold of it, so that Parliament can discuss it. That is what we are about here.
I hope that, when the Minister responds, she will have an answer that addresses this basic point. We do not know how this body will relate or how it will work, and we do not know how to monitor it. We also do not know how to raise when something goes wrong. Everything goes wrong at some point or does not work as well as it should. I hope that, by having reports coming backwards and forwards, we will have a way to get in, see where the problems are, allow government to change it and allow the agenda to happen. Having said those words, I hope the Minister will give us a favourable response and I beg to move.
Lord Aberdare (CB)
My Lords, I have Amendment 20 in this group, and I am grateful to my noble friend Lord Hampton and the noble Lord, Lord Storey, for adding their names to it. I apologise for any repetition that may creep into what I say.
The Labour manifesto states that Skills England will
“bring together business, training providers and unions with national and local government to ensure we have the highly trained workforce needed to deliver Labour’s Industrial Strategy. Skills England will formally work with the Migration Advisory Committee to make sure training in England accounts for the overall needs of the labour market. And we are committed to devolving adult skills funding to Combined Authorities”.
My Amendment 20 would require the Secretary of State to report on how it has engaged with these and other bodies in discharging the functions transferred under the Bill. Specifically, it includes the industrial strategy advisory council, since the industrial strategy will provide the overall context for skills policy. It includes the Migration Advisory Committee and mayoral combined authorities, in line with the commitment made in the manifesto. It includes employers through the industry sector skills bodies, as well as the employer representative bodies responsible for developing the 38 local skills improvement plans across all areas of England. It includes education and training providers at all levels, which will need to deliver the skills identified as needed. It also includes other government departments, most of which will have their own skills needs and challenges, as well as trade unions and the devolved Administrations.
Like others, the amendment seeks to spell out the tasks that Skills England should undertake by requiring the Secretary of State to report on them. Taken together, all these reporting amendments underline the breadth and extent of these tasks, from taking over IfATE’s existing functions—which it seems to be performing pretty well—to defining new technical education qualifications and defunding existing ones, and to a wide range of new strategic tasks requiring close engagement with employers, other government departments, local and regional bodies, and trade unions. The only omission I can find is Uncle Tom Cobbleigh.
I cannot help thinking that it might be better if the issues on which we are seeking reports from the Secretary of State were embodied in the Bill. The crucial purpose that the Bill seeks to promote—developing a skills system that will more effectively identify the skills we need and match them with the skills we produce through our education and training systems—will not be reliably met by abolishing IfATE and setting up Skills England as an agency within the Department for Education, with a hugely broad and important remit but no statutory basis and limited scope for parliamentary oversight.
As I have said, I strongly support the concept of Skills England as the key to addressing this purpose, but the Bill seems a somewhat underwhelming first step to establishing it on the right footing. Despite the Government’s laudable desire and commitment to tackle the systemic skills challenges we face, I am not convinced that it will—or about how it will—avoid the fate of so many unsuccessful previous attempts to resolve them.
I hope we may find a way on Report to encourage the Government and the Commons to think about whether the Bill should more clearly spell out the status of Skills England, ideally through a government amendment, as suggested by the noble Lord, Lord Blunkett, in his remarks on the previous group. Much of what the Minister said was extremely encouraging but none of it is in the Bill, which is where I would like to see at least some of it.
Baroness Evans of Bowes Park (Con)
My Lords, I shall speak to Amendment 27 in the name of my noble friend Lady Barran, to which I add my support. It would require the Secretary of State to consult LSIPs, mayoral combined authorities and other relevant employer-related groups on the introduction and number of technical education qualifications before exercising her powers under the Act. Such consultation is vital to ensure that any technical education qualifications introduced align with local and regional skills needs—one of the priorities of Skills England—to ensure that the workforce is equipped with the skills required to support the improved economic growth that we all want to see.
I recognise that Skills England has the potential to play a crucial strategic and co-ordinating role in bringing together local and national skills agendas—the Minister touched on this in her comments on the previous group—but I again come back to the fact that the approach set out in the Bill, in terms of the centralisation of powers in the Secretary of State, jars with the Government’s stated intention that Skills England will
“bring together business, training providers and unions with national and local government to ensure we have the highly trained workforce needed”
to ensure that our regional and national skills systems are meeting skills needs. I am afraid the approach set out in the Bill raises questions that the Minister is hearing time and again around whether we can be truly confident that this is the approach that will be taken when there is nothing in legislation or out there to ensure that that happens. As the Learning and Work Institute has said, it is important that Skills England must
“not be primarily a creature of Whitehall”.
I hope that the Minister can set out again, in a bit more detail, how Skills England will engage and involve local areas, local leaders and employer groups from the outset; and the mechanisms that will be developed to ensure we can have confidence that Skills England will effectively and consistently ensure, through the technical education qualifications introduced, that our regional and national skills needs are met.
Lord Blunkett (Lab)
My Lords, I shall speak to Amendments 28 and 29 in my name. Given my noble friend the Minister’s comprehensive and extremely thorough response to our debate on the first group, I will try not to fall into the trap of once again appealing to the Oscar Wilde agency that cannot speak its name. If we are to have a whole-system approach—the White Paper on getting people back to work, which was published today, mentions this—and we start with ensuring both that there is joined-up thinking in government and that that is translatable in terms of relationships with business, then we need to be reassured that we are clear on where decisions are being taken. Again, I mentioned this in our debate on the first group.
I declare an interest in this group because I have some interest in a major infrastructure project at the moment. The excellent contribution from the noble Lord, Lord Ravensdale, on the first group highlighted the issues around net zero and other environment-related issues, but there are major problems for us as a nation, as we know. HS2 has set us back. In this country we tend to look at what we are bad at rather than what we are good at, so we will obviously be affected by what has taken place with HS2 and by the massive mistakes that have been made, but there are other major infra- structure projects—some of which, in the nuclear industry, have been mentioned—where success has been substantial.
I had the privilege of going down to a college in Somerset to talk about Hinkley Point. I was deeply impressed with what has been done there but there seems to be a mismatch between the overall picture—the holistic picture, if you like—and the minutiae. I have written to my noble friend the Minister so I do not expect her to deal with this matter in detail this afternoon but, whatever we call boot camps in future and whatever immediate requirements on the ground are to be met by something such as one, if the decisions on funding them are to be devolved, how should an infrastructure project covering a substantial geographical area—as well as a sectoral one—deal with them?
I have another interest because, on Friday, I have the pleasure of initiating the new learning resource digital centre at the Northern College for Residential Adult Education. There are only two left in the country, and one is at Wentworth in Barnsley. That project has been funded because of the local schools improvement plan and the partnership that is arisen from it in terms of the digital needs of learners through lifelong learning. The reason why I am raising this and have touched on boot camps is that there is a real danger that, in our enthusiasm for devolution—I am an enthusiast for it—we start to create joins that did not exist. The Northern College has survived only because the elected Mayor of South Yorkshire has so far managed to find the resources but it was not possible to find resources joined up with West Yorkshire, which has students at the college because it is very much on the edge of South Yorkshire and West Yorkshire but does not fall within West Yorkshire—so it is not West Yorkshire’s concern any more.
With the best will in the world, the devolution that we are engaged in could disable unique things, where there is limited provision available and a holistic approach is difficult to achieve if people are not collaborating. With this Bill and the new executive agency, it would be possible to join things up if we knew where decisions were taken. It would be possible, if we accepted Amendment 29, to make sure that departments across government think and work together in order to ensure that the department responsible for housing, say—whatever it is called these days—understood what was needed to ensure that workers had a green card to get on site in the construction industry and be able to do the job.
Somehow, we have to put the bits back together while we are doing devolution where appropriate, either regionally or sectorally, and ensure that we do not by default end up with the department and Skills England, which will be part of the department, not being clear about who is doing what. In the example I gave in relation to infrastructure projects, it is not yet totally clear. I hope that, by raising the issue, we might be able to clarify it, but, at the moment, the embryo Skills England body will have to refer that to the department because nobody can give me an answer.
Baroness Garden of Frognal (LD)
My Lords, I have added my name to Amendment 30 in the name of the noble Lord, Lord Blunkett, partly because—I remind the Committee of this—I worked for City & Guilds for 20 years. I was working for it when national vocational qualifications were introduced—1990, I think—precisely to reduce the complexity in the qualification system. There are times when one feels that one has been around too long, but that was exactly it.
Those qualifications came in with levels 1 to 5 in order to be a simple way in which people could understand practical qualification levels. Levels 6 and 7, covering managerial and degree-level subjects, were then introduced as well. The qualifications were called “vocational” because we always wanted to include craft qualifications as well as technical ones. I worry now about what is happening to the encouragement of craft qualifications, which are vital to the economy of the country. I am not suggesting that we go back to NVQs again—they had their day and they went—but it worries me that memories are so short on this. It is a complex system because anything as complex as the myriad variations of employment inevitably will be so, but having a simple way in which one can measure levels of expertise seems to have some advantage to it.
This made me wonder how much discussion there has been with the awarding bodies. City & Guilds has been around for well over 100 years, as I say. Obviously, apprenticeships have been around since the Middle Ages, but I am not suggesting that we go back to then to find out what they did with them. The BTEC has been around for at least 50 or 60 years, I think. There is a mass of expertise there, yet they do not seem to be referenced or involved; I wonder why this is because they have some very useful skills to offer to this Bill.
I just felt that I needed to go down memory lane when I saw that the noble Lord, Lord Blunkett, had referred in his amendment to reducing
“the complexity of the qualifications system”.
Lord Storey (LD)
My Lords, I added my name to the important amendment in the name of the noble Lord, Lord Aberdare. I was fascinated to hear that he actually read the Labour manifesto; that is very impressive. I also support my noble friend Lord Addington’s amendment.
It is quite important that the noble Lord, Lord Ravensdale, and the noble Baroness, Lady Barran, mentioned mayoral combined authorities—the noble Lord called them pan-regional partnerships, which I had not heard before—and local skills improvement partnerships. Can the Minister tell us how those will feed into the department or how she will consult them?
Lord Ravensdale (CB)
My Lords, my amendment follows on nicely from what the noble Lord, Lord Blunkett, said earlier. He put it very well: devolution is really good and something that we can all support, but it creates joins that we then have to knit back together. We have to consider carefully how we do that knitting together, which is what my Amendment 36B is aimed at.
I shamelessly copied Amendment 27 in the name of the noble Baroness, Lady Barran, which I support, in order to do this. However, I made one slight tweak to include the regional perspective, which I mentioned in our debate on the previous group, so that pan-regional partnerships are consulted; that refers to partnerships such as the Midlands engine and the northern powerhouse.
At Second Reading, I set out my concern that local areas that are not part of a combined authority or have other devolution deals could lose out under the proposals that the Government are putting forward. I listened carefully to the Minister’s response at Second Reading, which allayed some of my concerns, but I would like to test this issue in some additional detail.
Taking the Midlands, where I live—I live in Derby—as an example, following welcome devolution in recent years, we are now blessed with two really good combined authorities. We have the West Midlands Combined Authority and, as of recently, the East Midlands Combined County Authority. Although these combined authorities cover areas of the west and east Midlands, they account for less than half the population in the Midlands region, which is around 11 million people.
As I said at the start, this highlights something of a problem with the devolution agenda. The combined authorities have been successful at working with governments to unlock additional funding for their areas, but this has meant that those living outside combined authorities have sometimes been left behind. As an example, for many years, the East Midlands has lagged behind the West Midlands on many indicators, for example when we look at transport spend per head or public investment per head of population. This will be partly remedied by the new East Midlands Combined County Authority, but many areas of the Midlands are not covered. I am concerned that the same pattern will follow with skills, so the question is: how will Skills England ensure that the approximately 6 million people in the Midlands who do not live in a combined authority area are considered?
The Minister has stated that Skills England will consult regional bodies but it would be helpful for her to clarify how that governance structure will operate; that is the subject of my amendment. Pan-regional partnerships such as the Midlands engine are set up to consider these regional issues. They would be well placed to pull together those plans and to co-ordinate combined authorities and other areas of local government in order to ensure that regional skills needs are met; they could also act as a focal point for regional skills needs in working with Skills England.
In this way, the Government can unlock the benefits of an integrated regional skills approach, flowing up from local areas to the regions and to the national view that Skills England will have, and ensure that no areas of the regions are left behind or inadequately represented. The Government could also benefit from the powerful data capabilities of pan-regional partnerships such as the Midlands Engine Observatory. This would align with the approach I set out in the previous group on regional skills hubs and the work already ongoing there. The pan-regional partnerships are helping to facilitate those regional skills efforts. It would also be a means of achieving the join-up of local skills improvement plans that the noble Lord, Lord Aberdare, referred to on the previous group.
Lord Watson of Invergowrie (Lab)
My Lords, I was just looking through my noble friend Lord Blunkett’s Amendments 28, 29 and 30, to which I added my name. I am sure noble Lords will be aware that, since Skills England was announced, the DfE has been using a pretty coloured diagram in five sections to describe the planned functions of the new executive agency. One of the sections says that Skills England
“identifies priorities for and shapes technical education to respond to skills needs”.
Having done that, it will need to update the necessary technical standards and work with sectoral industry bodies to develop them. Indeed, the Government will need to set out which functions currently with IfATE will be delegated to sectoral organisations and regional bodies. That is what Amendment 28 seeks to achieve.
My noble friend the Minister said in Committee last week that there needs to be “a sectoral approach” to the way that skills are developed across the economy. Of course, that is right. With that in mind, it is necessary that the Government’s plans for the powers that they anticipate will be required are set out, and this amendment would facilitate that.
Another of the sections in that DfE diagram says that Skills England will ensure
“national and regional systems are meeting skills needs”,
explaining that this will entail:
“Working with Mayoral Combined Authorities, Employer Representative Bodies, and other regional organisations to align national and regional systems with each other and with skills needs”.
All that seems fairly straightforward, but it is not clear how Skills England will achieve that without the necessary powers and some resources. We do not as yet know what these might be, so it is important that criteria for national skills priorities are set out and that the expectations of departments other than the DfE are made clear. My noble friend the Minister stated on several occasions how important the effect of joined-up government will be for the involvement of a wide range of stakeholders. Amendment 29 offers the opportunity for that to be spelled out.
Finally, there is more than a little uncertainty as to how the plethora of qualifications to be transferred will be subject to oversight. My noble friend Lord Blunkett has covered this, but I will simply say that qualifications at levels 3 and 4 are crucial in allowing young people the opportunity to build their skills in an environment in which they are not intimidated by unrealistic expectations or other barriers to entry, as has been the case too often with apprenticeships. The unfortunate tangle—let me put it no less kindly than that—that we currently have involving the introduction of T-levels and the consequent often rash and sometimes reckless defunding of some BTECs must not be allowed to happen with the transfer of the many essential qualifications validated by IfATE in its short lifetime.
Baroness Barran (Con)
My Lords, I will speak to my Amendment 27 and in support of Amendment 28 in the name of the noble Lord, Lord Blunkett. I start by noting that I support very much the spirit of the amendments in the name of the noble Lord, Lord Aberdare, and the aspiration of the amendment in the name of the noble Lord, Lord Addington, although I have a certain sympathy with the Minister in trying to actually deliver on that.
My Amendment 27—I thank my noble friend Lady Evans of Bowes Park for adding her name to it—aims to ensure that the Government’s strategy is up to date and relevant for local areas and that the Government do this by consulting the relevant bodies. I suggest local skills improvement partnerships and mayoral combined authorities although, in his Amendment 36B and his extremely helpful, clear and practical explanation of it, the noble Lord, Lord Ravensdale, raises the relevance of other groups and the importance of making sure that we do not miss out significant parts of the population as we try to aggregate and understand these local views.
What we are trying to do is to balance technical education qualifications that can be tailored, to a degree, and that best support the needs of a local area, with the ability to aggregate and use the data and intelligence from them to inform national policy. That needs to then feed into an ability for the Government and those to whom they devolve their powers to understand where providers are delivering efficiently on these plans and where they are not, identifying gaps and seeking to address them.
I also want to speak to the importance of the Government setting out how they intend to delegate these powers that are being centralised. As my noble friend Lady Evans said, what the Government talk about and what is actually happening in terms of centralisation rather jars, so I am glad that the noble Lord, Lord Blunkett, has brought this forward through his Amendment 28. I do not think anyone is suggesting to the Minister that this is an easy task—if it was easy, somebody would have cracked it already—but it is clearly a very important task and the more she can say about how these different groups will interact with Skills England and how there will be lines of communication from the local to the national and back again, the more confident the Committee will feel.
Baroness Smith of Malvern (Lab)
My Lords, we have had a good discussion on this group of amendments about the importance of ensuring that there is both appropriate engagement across government and improved coherence of the qualifications system, alongside the challenges of ensuring that we get appropriate local and regional input into our skills system while maintaining some coherence across it.
The noble Baroness, Lady Barran, is right that some of these issues around devolution are not neat government, as I think I said in a committee this morning, but they are nevertheless important in ensuring that local employers can contribute and there can be differentiation depending on different needs in different parts of the country. I will return to that as I address the amendments, but I wholeheartedly agree that it is very important that we are clear about the way in which a range of different stakeholders will be engaged. Some of this is already very clear; other aspects—I will be honest—will be part of the work of developing Skills England in the building of those relationships.
I turn to Amendment 19 in the name of the noble Lord, Lord Addington, and Amendment 20 in the name of the noble Lord, Lord Aberdare, regarding Skills England’s work with key bodies, in particular government departments. It is really important that we are able to work collaboratively with a whole range of different partners. Extensive work is already under way across departments to ensure that skills sit at the heart of joined-up decision-making across government.
As I probably said on the first day of Committee— I usually say it when talking about skills—Skills England and our improved skills infrastructure will play a key role in supporting the skilled workforce needed to deliver the Government’s five missions: driving economic growth, breaking down barriers to opportunity, supporting our NHS, delivering safer streets and the clean energy transition. Therefore, it is crucial that there is a cross-government approach and input into improving our skills provision.
Skills England will work closely with the industrial strategy advisory council. The chair of Skills England will sit on that council and, although I accept that that is not sufficient on its own to ensure join-up, it is an important signal. It will work closely with the Migration Advisory Committee, because it is important that we identify how to understand the analysis of where migration is needed as well as understand what more we need to do to boost the domestic pipeline of skills development. It will also work with the Department for Work and Pensions to ensure that the Government have the analysis and advice needed to inform a coherent approach to the labour market. The publication of the Get Britain Working White Paper, which we touched on, is an important example of that joint working.
In order to ensure that Skills England’s first report was informed and took in this need to look at skills needs across government, the report was informed by a skills audit across government departments. The cross-government approach will also be driven forward through the regular mission boards, which bring together Ministers from across government, helping to break down departmental silos and ensure a strategic approach to our mission priorities. Together, these connections are creating a coherent approach to skills, migration and labour market policy.
Amendment 27 was tabled by the noble Baroness, Lady Barran, and Amendment 36B was tabled by the noble Lord, Lord Ravensdale. Regarding consultation with contributors to local skills improvement plans on the introduction and number of new technical education qualifications, it is my view that local skills improvement plans are playing an important role in giving employers a voice in this area. When I was on a visit last Friday and heard from FE principals, one in particular had feared that the development of LSIPs would be just another quango, but she was actually finding it useful to have that engagement with local employers.
Mayoral combined authorities also have an important role to play, using the elements of skills funding that are devolved to them and their convening power, to bring together a clearer view of regional growth needs, through the regional growth plan, and to work alongside local skills improvement partnerships—as well as the other initiatives announced today in the Get Britain Working White Paper—to build a coherent approach to the labour market and to skills development at a regional level.
The assessment of skills needs set out in the first report by Skills England—published in September, as I said—drew strongly on evidence from LSIPs. Skills England has already begun to engage and gather evidence from mayoral combined authorities, employer representative bodies and others on skills needs. This will inform decisions on where standards and, therefore, technical qualifications or apprenticeships are required.
Several noble Lords talked about the challenges of devolution, as I suggested at the beginning. Supporting a more joined-up approach to decision-making on skills at regional and national levels will be central to Skills England’s role, putting the bits back together, as my noble friend Lord Blunkett described it. I accept that there is a challenge, as the noble Lord, Lord Ravensdale, identified. While there is a very clear remit for those areas that are mayoral combined authorities, those that are not have less devolution of skills funding. However, the Government are preparing a devolution White Paper and we will want to encourage further devolution. We will also want to support local authorities in carrying out their role to input into skills discussions in those non-mayoral combined authority areas. I share the noble Lord’s interest in this, living as I do in the Midlands, in an area without a mayoral combined authority.
Lord Aberdare (CB)
My Lords, the Minister has made many encouraging statements about how the system will work. I still do not entirely understand why none of this can be in the Bill and why we are totally reliant, it seems, on the Secretary of State for Education as the only point of accountability to Parliament or indeed anybody else. It seems that something is missing here in terms of how Parliament in particular can hold Skills England to account.
Baroness Smith of Malvern (Lab)
I went on at some length in my response to the previous set of amendments to spell out what the accountability mechanisms to both the public and Parliament will be for Skills England, both directly in its publication of an annual report and, via the sponsoring department, to Parliament. In respect of specific amendments, the concern is that what we are trying to do here is create a strategic body that brings together the data analysis and insights with the ability then to inform efficiently, effectively and agilely—if that is the proper word—the development of occupational standards, assessment plans and the technical qualifications that employers tell us they need. Creating legislative requirements in advance of it being able to do so will, the Government believe, limit that flexibility, when we really intend to improve it. That is one of the criticisms that employers have made of the current IfATE process.
Baroness Barran (Con)
I have two points. First, if I heard correctly, the noble Lord, Lord Aberdare, was asking why none of that could be in the Bill. Secondly, what the Minister just said might be a starter for 10, for the drafters, on what could go in the Bill. Of course, if you are incredibly precise about exactly what would be reported on, that limits you, but if something in the Bill says that this spirit will be aligned, it retains a degree of flexibility. With the level of flexibility that the Bill now affords the Government or any future Government, flexibility trumps accountability squarely, as the Minister has heard. I wonder whether she could reflect on that.
Baroness Smith of Malvern (Lab)
I understand why the amendments are formulated as they are, but most of them would create not just the requirement to describe but a condition that would be inserted into the process and that would therefore limit the flexibility and speed with which qualifications and occupational standards could be developed. I contend the suggestion that there is no public or parliamentary accountability in the way we are setting up Skills England. I went through at some length the routes through which both of those forms of accountability will be delivered to Parliament and, more widely, the public—while conceding the point about the requirement for an annual report, for example, and outlining the accountability through the sponsor Minister to Parliament to account for the progress and success in a whole range of areas that noble Lords have talked about.
Lord Addington (LD)
My Lords, as nobody else wants to come in, I will try to bring the discussion to a close. I think the Minister effectively just opened up what the consideration is. I remember saying, in the briefing that the Minister courteously arranged for us, that she would be testing our ability for probing amendments here. I think we have come up with a reasonable pass grade on that. We have found out that, yes, there will be some reporting, but it is complicated, we do not know exactly where to find it and somebody new coming to the field might miss it. That happens all the time. Do the right people know about it? Do you have to be an expert to find out about it? That is one of the problems we have in going through this.
Before I withdraw my amendment, I will say that, if you do not allow us to get at this information easily, certain things will be missed. That is a guarantee. It tends to be that things are missed that it may even be helpful for the Government to address and correct. I hope that, by the time we get to the next stage, the Government will have had a little more time to think about how they can start to address this, because we all wish that Skills England—or what becomes Skills England, or the dark secret that is Skills England—becomes known to the public and functions properly. We just need to know, because that is what we are here for. I beg leave to withdraw my amendment.
Baroness Barran
“Report: approval of new technical education qualifications Within six months of the day on which this Act is passed, the Secretary of State must lay before Parliament a report on mechanisms for employers to apply for the approval of new technical education qualifications and to appeal the removal of any technical education qualifications.”Member’s explanatory statement
This amendment clarifies the route employers will take to approve new technical education qualifications.
Baroness Barran (Con)
My Lords, in moving Amendment 24, I will also speak to my Amendments 25 and 26. As we heard on earlier groups, there is a lot of concern among experts in the sector about how the Government’s plans will work in practice and whether the proposed changes in the governance of the skills sector will result in confusion and delay—obviously to the detriment of the Government’s growth agenda. My amendments seek to bring clarity to this confusion.
My Amendment 24 seeks to place a duty on the Secretary of State to explain to employers the way in which they will be able to approve new technical education qualifications and appeal where qualifications are planned to lose funding. It is, obviously, essential that employers know how to get new qualifications approved so that our qualifications can remain up to date and relevant to the needs of businesses, and that the Government can receive the input from businesses on what skills our economy is lacking.
My Amendments 25 and 26 seek to address the delays that will happen when these powers are transferred from IfATE to the Secretary of State, as laid out in the impact assessment that the Government published alongside the Bill. The impact assessment lays out details of how the creation of end-point assessments and the approval of new technical education qualifications will both be delayed. In order to minimise the impact that this has on students who are seeking to undertake a technical qualification, students who are midway through their course and businesses that are seeking to introduce qualifications, I felt it necessary to encourage the Government to give details as to how long this delay will be and the steps they are taking to ensure that it is as short as possible. It is important that businesses and students have certainty about the extent to which any delays will impact them. These amendments propose a timetable, when the Bill is passed, by which the Secretary of State must report on how long these delays will last and what the Government are doing to ensure as minimum a disruption as possible to the qualifications and to the students seeking to undertake them.
I hope the Minister will agree that these amendments are not controversial and may come back on Report with government amendments that look like mine. I beg to move.
Baroness Evans of Bowes Park (Con)
My Lords, I rise briefly to support Amendments 25 and 26, tabled by my noble friend, because the policy impact assessment also notes that mature students, learners with disabilities, ethnic minority learners and disadvantaged learners are likely to be disproportionately impacted by the delays she is talking about, which is obviously of concern. I just wanted to add that, because clarity on the delays, as would be addressed by the amendments of my noble friend, would be extremely reassuring, particularly when one looks at the groups that the Government’s policy impact assessment says may be disproportionately disadvantaged.
Baroness Smith of Malvern (Lab)
My Lords, quite rightly, the noble Baronesses have raised the issue of how we can ensure continuity of provision while transferring functions under the auspices of this Bill.
I reflect that coming back 14 years—probably 16 years —after the last time when I was responsible for doing any government legislation directly, there are some important improvements in the way in which Governments are expected to lay out the impact of their legislation, with the development of impact assessments. Of course, such things also provide grist to the mill for those who look at them and say, “Well, you’ve identified that there is potential concern about delay, and that must mean that the delay is going to happen”. The point of an impact assessment is that it enables, quite rightly, the Government pre-emptively to identify potential risks that could result from the transfer of functions and property from IfATE to the Secretary of State and think about how those risks can be mitigated. We are confident that that they can be, so I hope I can provide noble Lords with some reassurance about that.
I should also like at the outset to repeat assurances that I provided to noble Lords at last week’s session. We will ensure that the practical transition of functions from IfATE to the Secretary of State will be designed so that standards or apprenticeship assessment plans that are in the process of preparation or approval at the point of transition 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 and, as rightly identified by the noble Baronesses opposite, learners perceive no interruption. The transition scheme that is being developed will be designed to ensure the minimum possible disruption for stakeholders.
I note that Amendments 25 and 26 in the name of the noble Baroness, Lady Barran, seek to place on the Secretary of State a duty to lay before Parliament a report on the timetable for the creation of, respectively, endpoint assessment and new technical education qualifications. As the noble Baroness said, Amendment 24 seeks to place on the Secretary of State a duty to lay before Parliament, within six months of Royal Assent, a report on mechanisms for employers to apply for the approval of new technical education qualifications and to appeal the removal of approved status for existing technical qualifications.
Skills England will undertake ongoing engagement with employers and other key stakeholders to identify skills needs that are not being met through the existing suite of technical qualifications and apprenticeships. This engagement will help identify where new standards should be produced and where existing standards and/or apprenticeship assessment plans should be updated, ensuring that the system responds quickly. With that in mind, Amendment 25 in the name of the noble Baroness, Lady Barran, would, to some extent, frustrate the Bill in enabling more effective prioritisation of the preparation and updating of apprenticeship assessment plans. We intend for the functions transferred to the Secretary of State to focus on where there is greatest need for a new or updated plan, informed by feedback from employers and other key stakeholders.
We also anticipate that plans in development at the point at which the functions transfer will continue and be finalised by the Secretary of State. Standards approved by the Secretary of State will be published, as is the case in the current system, as the basis for new technical qualifications to be developed. Awarding bodies will then, as now, submit applications for new technical qualifications to be approved in line with standards and reflecting employer demand. IfATE is currently responsible for the approval of technical qualifications; its function is being transferred through this Bill. Responsibility for decisions on the withdrawal of approval from technical qualifications will also transfer through this Bill, which includes a duty to publish information about matters taken into account when deciding whether or not to withdraw approval.
We would argue that Amendment 26 is also unnecessary as it would duplicate existing transparency, which will occur as a matter of course through the Secretary of State’s routine engagement with Parliament and through the establishment of Skills England as an arm’s-length body. As I have outlined previously, Skills England will report on delivery in line with standard practice, including as set out in its framework document and in a manner consistent with other executive agencies.
I turn to Amendment 24 in the name of the noble Baroness, Lady Barran. Placing on the Secretary of State a requirement to report on mechanisms for employers to apply for the approval of new technical education qualifications and to appeal the removal of approved status for existing technical qualifications is unnecessary. It would give employers an additional role in the approval of technical qualifications, which would risk undermining their central focus on highlighting skills needs and, as appropriate, preparing standards that reflect those needs. Where there was clear evidence of continued employer demand, it would be unlikely in practice that approval status would be removed—unless, for example, other significant issues had been identified in relation to the successful delivery of the qualification.
I hope I have provided some assurance that we do not expect a delay due to the transfer of functions in this Bill. We have already put mitigations in place and we will, in relation to the approval of—and the withdrawal of approval of—technical qualifications, continue to follow the current arrangements.
Lord Hampton (CB)
Before the Minister sits down, can I ask for a bit of clarification here? The Minister has described Skills England as an arm’s-length body a couple of times today. I apologise if everybody else knows this, but can you have an arm’s-length body within a department? I thought that the definition of an arm’s-length body was that you cannot.
Baroness Smith of Malvern (Lab)
Yes, you can. There is a whole range of different types of arm’s-length bodies. Executive agencies are one such type. They are governed by a governance document—the framework document that I have previously described—and by a set of requirements and relationships that I would be happy to spell out for noble Lords.
Baroness Barran (Con)
My Lords, I thank my noble friend for highlighting the impact on the groups and communities that could be most affected by delays, as set out in the impact assessment.
I am honestly a bit puzzled by the Minister’s response. She said that my Amendment 24 is unnecessary, but employers are telling us that it is necessary. There is obviously a gap between what the Minister knows and what is being understood, so the more clarity the Government can bring to those specific points, the better.
Similarly, the Minister spoke very confidently about minimal delays—my words, not hers—in approving endpoint assessments and new qualifications. We do not want to frustrate the Government’s plans, but if it is so clear to the Minister that this is a very low-risk area then perhaps she can put that and the exact timescales she expects formally on the record on Report.
Baroness Smith of Malvern (Lab)
I commit to providing to the Committee more detail about the process for transition and some reassurance, which I suspect I have not sufficiently provided, on how that will mitigate some of the risks identified in the impact assessment.
Baroness Barran (Con)
When the Minister does that, which would be much appreciated, I request that, in addition to more detail about the process, she includes a sense of timescale, which would be most helpful. With that, I beg leave to withdraw my amendment.
The Deputy Chairman of Committees (Baroness McIntosh of Hudnall) (Lab)
My Lords, I inform the Committee that, were Amendment 37 to be agreed, I would not be able to call Amendments 38 or 39 by reason of pre-emption.
Clause 9: Power to make consequential provision
Amendment 37
Member’s explanatory statement
This amendment removes the power for consequential changes to be made by delegated legislation to Acts other than those specified in the provisions of the Act.
Baroness Garden of Frognal (LD)
My Lords, Amendment 37 in my name, which is supported by the noble Lord, Lord Aberdare, would remove the Government’s power to introduce regulations that make consequential changes to Acts beyond the scope of this Bill. Like so much in the Bill, this represents a classic Henry VIII power. As we have highlighted elsewhere in our discussions on the Bill, it facilitates an Executive power grab and gives far too much power to the Secretary of State, who, as I have said before, may be someone with no interest or understanding of colleges and further education. We are lucky in our current Minister and I hope she lasts a long time, but Ministers can be moved without rhyme or reason.
The power in this clause would undermine parliamentary scrutiny and allow significant changes to be made without proper oversight. The amendment is a small safeguard in a potentially dangerous Bill. I also support Amendments 40 and 41 in this group in the name of my noble friend Lord Addington. I beg to move.
Lord Aberdare (CB)
My Lords, I have added my name to this amendment, inspired by what might be described as the crusade of our much-missed former convener, Lord Judge, to root out unjustified Henry VIII clauses wherever possible. I considered putting down an amendment to make it clear in the Bill that the power under this clause could be exercised only where the provisions to be made by such regulations relate specifically to functions previously exercised by IfATE that are to be transferred under the Bill. However, Amendment 37 from the noble Baroness, Lady Garden, addresses this point in a more straightforward way, so I have willingly added my name to it. I look forward to hearing from the Minister why she feels the power in Clause 9 to be necessary.
Lord Addington (LD)
My Lords, I hope to be as quick as I can. My amendments suggest that everything should be under the affirmative procedure when it is reported back. That is just to make sure that Parliament gets a real look and a chance not to have those reports buried in the huge piles of SIs that are brought forward. We should guarantee that we are all looking at what happens in this new body.
Baroness Barran (Con)
My Lords, despite the Minister’s dismissal of my concerns about the Henry VIII powers at Second Reading, I have brought two amendments in this group to make sure that the scope of those powers is less broad.
Amendment 38 seeks to restrict the Secretary of State’s powers to amend only the Acts that are already listed in Schedule 3, so that both Houses can appropriately scrutinise the way in which these powers are being used. Surely it is the job of the Government and the department to identify all the Acts to which these powers apply. I cannot see the need for such a clause, unless the Bill has been rushed and the Government are worried that they have failed to capture all the legislation that requires amending with the abolition of IfATE. If this is indeed the case, perhaps there is more redrafting to do than we have already attempted.
My Amendment 39 is focused on the same issue but, rather than restricting the Secretary of State’s powers specifically, it simply removes the power to amend future legislation. Again, I note that all Bills which name IfATE as the body for apprenticeships and technical education have already been passed, so there should be no need to amend future legislation, unless the Government have plans to refer to IfATE in any future legislation that they intend to draft. Given that this seems unlikely, I am once again left with the question as to why this is necessary. I urge the Minister to reconsider this.
Baroness Smith of Malvern (Lab)
My Lords, I begin on this group of amendments by reassuring the Committee that the department recognises and takes very seriously the important role that Parliament has in scrutinising consequential amendments. For this reason, we have made every effort to identify all the consequential amendments to primary legislation that are necessary, and to include them as Schedules 1 and 3 to the Bill.
Despite those extensive efforts, there is a risk that in the future we may uncover Acts which need amending because of provisions in this Bill. I reassure the Committee that this is a very limited and narrow power and that any use would be subject to parliamentary scrutiny. We have carefully considered the power and believe that it is entirely justified in this case. In fact, the inclusion of similar powers as a safeguard is well precedented in legislation. Our delegated powers memorandum has been considered by the Delegated Powers and Regulatory Reform Committee, which has confirmed that there is nothing in the Bill which it would wish to highlight to the House.
Therefore, the amendment, and Amendments 38 and 39 in the name of the noble Baronesses, Lady Barran and Lady Garden, would remove the delegated power to make consequential amendments to primary legislation. If this were accepted, it would be unnecessarily burdensome on Parliament and require greater amounts of parliamentary time should we uncover Acts that needed minor and genuinely consequential amendments to be made as a result of the Bill. It would, of course, require all those changes then to be made through primary legislation.
Depending on the nature of the issue, and to go back to the previous group of amendments, we might see an increased risk of disruption in the functioning of the skills system for learners and employers. I hope it might provide some reassurance to the noble Baroness, Lady Barran, although perhaps not to the noble Baroness, Lady Garden, that previous legislation, including legislation passed by the previous Government, has included a power such as this because it provides that important safety net should future amendments be identified.
The power is limited to consequential amendments to previous Acts and Acts passed later in the same parliamentary Session. It does not encompass all future legislation, as the noble Baroness, Lady Barran, seemed to suggest. The amendments would limit consequential amendments to those Acts specified in Schedules 1 and 3 to the Bill, but our approach in relation to amending Acts passed later in the same Session is not unusual, notwithstanding the challenge from the noble Baroness, Lady Barran. We have reviewed legislation and identified that including a power to amend primary legislation passed in the same parliamentary Session has been done in at least 20 other Acts since 2020. It may well be that the noble Baroness has now seen the light, but I suspect it is more likely that this is a sensible, narrow and reasonable provision to put into this legislation. That was why the previous Government decided to do it at least 20 times.
Amendments 40 and 41, tabled by the noble Lord, Lord Addington, would require regulations making consequential provisions that are subject to the negative procedure by virtue of Clause 9(5) to instead be subject to the affirmative procedure for a period of six months. As is customary, any consequential amendments to legislation other than primary legislation, which would be subject to the affirmative procedure, will be subject to the negative procedure. The limited and uncontroversial nature of such changes means that this procedure provides sufficient parliamentary oversight while enabling changes to be made without unduly taking up parliamentary time.
Consequential amendments to secondary legislation are not included in the Bill as the power to make or amend such legislation is held by the Secretary of State by virtue of the passing of that legislation previously. We have already identified the amendments to secondary legislation that are needed; these are of a similar nature to those included in Schedules 1 and 3 to the Bill. There is a strong precedent for delegated legislation under the negative procedure to be used to make consequential amendments to delegated legislation. Therefore, the amendment seeking affirmative resolution is not necessary.
I have set out in a letter to the noble Baroness, Lady Drake, the chair of the Constitution Committee, how the clause is inherently narrow in scope as it is limited to making amendments that are genuinely consequential on the provisions in the Bill.
Therefore, for the reasons that I have outlined, I hope that the noble Baroness, Lady Garden, will feel able to withdraw her amendment.
Baroness Garden of Frognal (LD)
My Lords, the noble Baroness is doing a mighty job in trying to convince us that this is a helpful Bill. Sadly, some of us still have concerns but, for now, I beg leave to withdraw my amendment.