Trades and Apprenticeships

Tuesday 17th December 2024 Westminster Hall

[Mr Clive Betts in the Chair]

14:30

[Amanda Martin (Portsmouth North) (Lab)]

I beg to move,

That this House has considered public perceptions of trades and apprenticeship completion rates.

It is a pleasure to serve under your chairmanship, Mr Betts. One of the many toxic legacies of the previous Government is a crisis in education and training, overwhelming barriers to opportunity for many young people and the denigration and downplaying of the construction industry. Young people in my city are not accessing well-paid jobs, despite the many opportunities on our doorstep in the maritime, space, science and trade sectors. To fix that, we must improve and promote vocational pathways through increasing the number of apprenticeships available, improving apprenticeship completion rates, simplifying the apprenticeship system and increasing its flexibility.

Much of the research for this debate has come from Checkatrade, a home improvement platform based in Portsmouth North. I will therefore focus mainly on the construction sector. The trade and construction sector sits at the heart of the national mission to get Britain building, to reach net zero and to drive economic growth. From plumbers and electricians to roofers and carpenters, there will be huge opportunities for careers and job creation in building the skilled workforce we need to deliver those targets.

Research by Checkatrade has found that the UK economy faces a severe skills challenge. The UK must find 1.3 million new skilled trade people and 350,000 new apprenticeships over the next 10 years to meet the Government’s ambitious but much-needed housing and net zero targets. London will require at least 55,000 qualified construction apprenticeships, but the demand is not just in England; it is spread across the UK, with Scotland needing 26,000 new apprenticeships, Manchester 15,000 and Birmingham 13,000. With 35% of those working in the sector over the age of 50, and almost three fifths of tradies planning to retire between the ages of 61 and 65, the industry is facing a cliff edge of retirement with little or no succession planning.

The transition to net zero is also impacting jobs and apprenticeships, with 59% of jobs affected and 29% of those jobs requiring upskilling. However, apprenticeship starts have declined in recent years, highlighting the urgent need for a renewed focus. In 2022-23, there were 337,140 apprenticeship starts, compared with more than half a million in 2011-12. Challenges in the sector, such as high apprentice drop-off rates and high levels of self-employment—37%—make addressing the skills gap even more challenging and crucial.

What solutions can we explore? First, we must create more apprenticeships: despite a chronic skills gap in the UK, for every apprenticeship there are three applications, but only one successful candidate. That can be achieved by restoring financial incentives to small and medium-sized enterprises to take on apprentices under the age of 25, offering an apprenticeship incentive payment and expanding funding to create apprenticeships.

SMEs have a crucial role to play in boosting the number of apprentices, and we need to find ways to incentivise them to invest in training. We must provide them with the support they need to take on an apprentice and ensure flexibility in training that works for their businesses and for the apprentices. Making the apprenticeship funding model more transparent to help to improve businesses’ understanding of and confidence in the apprenticeship system is vital.

Secondly, we must improve completion rates. Only a third of apprenticeships are currently completed—a shockingly low statistic. We could improve that rate by increasing financial support. The apprenticeship rate of pay currently sits at £6.40 per hour, making apprenticeships financially unattractive. More targeted support should be made available to attract those with dependants and other financial responsibilities, and those wishing to change career. Financial mentoring for apprentices could also go a long way towards improving the completion rates. We should also look at expanding foundational apprenticeships and introducing a shorter apprenticeship course for those who cannot afford the minimum length of 12 months in a placement.

Lastly, we must simplify the system and increase flexibility. That could be achieved by creating more flexibility through the apprenticeship levy. For example, the functional skills requirement is cited by employers as a barrier to learning and is not always relevant to the role or individual. Those could be removed in some cases. Apprenticeships and training programme providers should be enabled to deliver three, six or even nine month-courses, which could be used to help workers to reskill and retrain in areas that are part of the green transition. We must also end geographical differences; apprenticeship levy funds can currently be spent only on apprenticeships in England.

To do all that, we must value all the pathways. The toxic legacy of the Tories in education was the undervaluing of certain subjects, including vocational courses and apprenticeships. We must value all pathways if we are to move towards a productive, highly skilled population and achieve our growth targets. Apprenticeships of all kinds create successful business owners and entrepreneurs who are well paid. Average weekly earnings in the construction sector are £761, surpassing the national average by 13%.

Furthermore, not all apprenticeships are low-paid during training. Roofing apprentices can earn more than £24,000 a year, plastering apprentices £19,000 and plumbing apprentices £18,000. Apprenticeships can be a stable and reliable route to success: with success rates remaining stable at 93% over past years and many apprentices staying on with their employer after qualifying, they offer value for money and a good career.

Despite that, however, many young people and their parents do not see a trade career as aspirational. We must highlight those benefits of vocational courses to young people, to inspire them into diverse sectors and to elevate vital sectors, including construction. That could be achieved by using the money raised by the growth and skills levy on access and outreach activities, and by the Department for Education ensuring that careers advice highlights the training provisions available, including T-levels, BTecs, skills bootcamps and more, as well as the career opportunities accessible through apprenticeships. We must ensure that work experience gives an insight into the opportunities and, although it must have safety at its heart, we must reduce the red tape for SMEs and larger companies to offer valuable work experience places.

In conclusion, to achieve our national mission of kick-starting growth and breaking down barriers to opportunities, we must look at people and skills in the round and value them. To create a highly skilled and highly paid workforce, we must provide accessible, well-funded and fairly paid vocational training. We must provide balanced education about vocational options and provide support for those on vocational pathways to help them to complete courses. That will help to diversify vocational pathways.

Apprenticeships in construction are currently almost 91% male and 92% white. Although there has been some progress in diversifying the workforce, its composition remains highly disproportionate compared with society and other sectors. As an ex-teacher, I truly believe in the saying, “If you cannot see it, you cannot do it.” Those opportunities must be visible and open to local communities, whether that is our young people or someone who wants to change career or upskill to a new one.

We must place pride, value and respect in this sector. As the proud sister of an electrician, the daughter of a plumber and the granddaughter of a painter and decorator, I know the value of tradespeople in our communities and families. They are the backbone of our everyday lives—building, fixing, and ensuring that our houses, schools, hospitals and communities are safe, functioning spaces.

[Mr Clive Betts (in the Chair)]

Probably much to his surprise, I am going to call Jim Shannon as the next speaker.

14:39

[Jim Shannon (Strangford) (DUP)]

It is becoming a bit of a habit for me to be called almost first in Westminster Hall debates, Mr Betts—but whatever the case may be, it is a real pleasure to speak at any stage and to serve under your chairship. I commend the hon. Member for Portsmouth North (Amanda Martin) for leading this very apt debate.

In my constituency, we have a tradition of work in the construction sector, whether in building, plumbing, electrical or roofing, or even in painting and décor. There is just so much to do when it comes to building. I live in the countryside, so there are always houses needing repairs, and many people I have known have been in the business for umpteen years and continue in it. However, and I will come back to this shortly, we seem to have a small dearth of people in apprenticeships, which is disappointing. Of course, those figures are for Northern Ireland as a whole; perhaps my Strangford constituency may not have seen the same fall, because of that strong tradition of working in this sector.

Many hon. Members will know that I am a big supporter of apprenticeships and the opportunities they bring for young people. They provide a real chance for those who have just left school to get out into the world of work, to gain skills, to specialise in a trade and to earn money. It is great to be in Westminster Hall to discuss that. I think it may have been last week that we had a debate here about universities, and we were saying that there are those who have adapted to academia out of necessity; but for those who are not academically focused, perhaps the opportunity is in the skills we are referring to today.

This debate is really important, and I look forward to the Minister’s response. I know she does not have responsibility for Northern Ireland, but I like to come along and give a Northern Ireland perspective, because I think it adds to the debate. I am ever mindful that this House of Commons represents all four regions of the United Kingdom, and we can do things here to better them. I know the Minister would choose, as I would, to share benefits and good things that we have with other parts of the United Kingdom. It is also a pleasure to see the shadow Minister, the hon. Member for West Worcestershire (Dame Harriett Baldwin), in her place and I look forward to her contribution as well.

Just last week Labour announced its commitment to the 1.5 million new houses to be built, which I welcome; it is important for boosting the economy and it will create opportunities and jobs. However, to make that happen we must ensure that we have the apprentices and the workers in all the different sectors we have referred to. When it comes to apprenticeships, one company last week in the news said that to help to build those houses, 2,800 new plumbers would be needed. I will give some examples later on of some of the things we are doing across the water, but that figure perhaps tells us that, if we are going to build all these houses—again, I commend the Government for doing that—we must ensure we have the workers in place to do that, and apprenticeship opportunities must be part of that.

I know sometimes apprenticeships involve working out in the fresh air—that never bothered me, by the way, although other people might want to stay in an office—but, if people can get paid well in an apprenticeship and the number of years for apprenticeships is reduced from five down to three, people can get the qualifications early on and then start to earn. We do not want to decry young people; we want to encourage them and ensure that the apprenticeships come, that they do their three years and that at the end of those three years they are qualified and earning big money. With Labour’s commitment to 1.5 million new houses, the opportunity to earn big money is here now.

I would love to hear what the Minister has to say in relation to that and how the hon. Member for Portsmouth North will encourage people to take those jobs. I have listened to her comments in previous speeches where she has emphasised the necessity of tackling our skills shortages across the United Kingdom. She has spoken a few times in the debates she has been involved in about how we can do that through apprenticeships and dealing with skills barriers.

In Northern Ireland specifically, numbers of new participants in apprenticeships decreased by 12% between 2018-19 and 2022-23 and by 24% between 2021-22 and 2022-23. Those figures are unfortunately quite disappointing, highlighting that fewer young people are taking up apprenticeships as a form of education and employment. I suppose it depends on the society people live in; we in the Ards peninsula and Strangford see a tradition of building and house building and repairs, but across the whole of Northern Ireland apprenticeships are unfortunately decreasing.

In addition, participants who leave their course, either with or without leaving their framework, are known as leavers. The question that I want to focus on, and that the hon. Member for Portsmouth North focused on in her speech, is those people who start but do not finish apprenticeships. Perhaps the Minister has some ideas about how to encourage them to stay. I am very keen to hear what she has to say, because perhaps we can share her comments with those in Northern Ireland.

In 2022-23, 5,746 participants left ApprenticeshipsNI courses: 3,091 at level 2, 301 at level 2/3 and 2,354 at level 3. More than half—56%—achieved a level 2 full framework. That was six percentage points lower than in 2018-19, but 13 percentage points higher than in 2021 —again, that shows the need to be more focused. The figures show that thousands of people are leaving apprenticeship courses, and a further section of people complete only levels 1 and 2, and do not continue to level 3—level 3 is where the money is, guys! They need to be encouraged to focus, stay the course and do what they are asked to do, because at the end of that they progress to good, constant employment, which will be reinforced because of all these houses that are going to be built. We need to make apprenticeships accessible, encourage people to continue with their apprenticeships and increase financial support through the apprenticeship payment rate. We must give those workers the pay they deserve and highlight to young people that there are opportunities for career progression and stable, secure pay.

For many, working for someone else can be the start of having their own business. In the Ards peninsula, where I live, an incredible number of people have their own business as a result of starting out on an apprenticeship. I will give an example to show where the opportunities are. One of my staff members was having issues with her gas boiler last week. One of her children is asthmatic and must be in a temperature-controlled room; therefore, heating the house is incredibly important. She phoned every single gas company in the area to get a call-out, and only one company could get someone out in the morning. The engineer said that he was able to come out so promptly only because he had an apprentice. In other words, he had seen that it is necessary for young people to have apprenticeships, and that enabled him to do certain jobs and delegate others. That young fella was learning the trade and the business, and was at a stage where he could do some of the work. That took the burden off the single owner of the gas company, but it also gave an opportunity to that young fella, who one day, because there is demand for it, will have his own business and do well. So apprenticeships are an opportunity and they help businesses to grow.

Young people are under the impression that apprenticeships are only for skills such as plumbing, engineering, mechanics, electrical maintenance and so on—jobs that some see as male-dominated—but that is not the case. I am very pleased to say that we have a number of ladies who are progressing in construction. I understand that the business may be different, but there are opportunities for young ladies to involve themselves in any of those skills. They are more than capable of doing that, and I support them.

There are other sets of skills that young people can take advantage of, such as food and drink manufacturing, construction craft, sign making and print production. Some have done so and some will in the future. Our responsibility as Members is to ensure the correct provisions are in place so that people push themselves and stay in their apprenticeship. Sometimes they need to be encouraged, because the work can be hard or repetitive, but it is rewarding, and it can lead to employment and their own business further down the line. We must fix the wage and give them the working conditions they need to succeed.

I appreciate the hon. Member for Portsmouth North for bringing this issue to the House. It is time for the Government to focus on where the shortages are and how we can encourage young people to take these opportunities. There are so many young men and women out there who could benefit from apprenticeships, but we do not talk about the harsh reality that our completion rates are low and that a large percentage decide to leave. What can we do to make that better? I hope that the Minister will endeavour to deal with these issues, in parallel with her counterparts in the devolved nations. I always ask that, because it is important to recognise that, although we may live in different parts of this great United Kingdom of Great Britain and Northern Ireland, the things that confront us—this debate today—are salient to every part of every region. We want a strong apprenticeship system across the whole of this great United Kingdom of Great Britain and Northern Ireland.

14:49

[Andrew Pakes (Peterborough) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate my hon. Friend the Member for Portsmouth North (Amanda Martin) on securing this debate. It is a privilege to follow both her and the hon. Member for Strangford (Jim Shannon), who have given us such a passionate case for the importance of apprenticeships to our economy, to young people and to those changing their careers. I will put on record that I am co-chair of the all-party parliamentary group on apprenticeships. I also refer to my entry in the Register of Members’ Financial Interests: I am on the skills advisory board for Google’s artificial intelligence campus, looking at new skills and new technologies.

Just last month, I welcomed the Secretary of State for Work and Pensions to Peterborough college to visit apprentices and businesses and launch the Government’s “Get Britain Working” White Paper. I had the great privilege to meet excellent businesses and apprentices doing brilliant work, including EML, Baker Perkins, Taylor Rose, Codem and Gen Phoenix. Those businesses and learners are excelling in a system that has failed too many of our young people.

Today’s debate goes to the heart of my passion in this House to improve job opportunities for young people and career changers in Peterborough and around the country. I pay tribute to Peterborough college and to my new university campus, Anglia Ruskin University Peterborough, for the work they are doing in my city to transform life opportunities. In my constituency, apprenticeships are down and youth unemployment is up. Under the previous Government, the number of young people not in education, employment or training reached around 900,000, at a time of skills shortages and record net migration to the country. That includes a 40% slump in 16 to 19-year-olds taking an apprenticeship —unforgivable. This Government, I am pleased to say, recognise the severity of the situation. I pay tribute to the Minister for her sterling work to champion the cause of skills.

I will talk about two challenges around the perception and reality of apprenticeships. First, following my hon. Friend the Member for Portsmouth North, I want to look at how the Government must mend the broken apprenticeship levy and increase opportunities. The levy has strayed from its original purpose of providing paid, skilled opportunities mainly for young people, and ensuring that employers target their levy spend to tackle skills gaps and shortages. I thank the Minister, alongside her colleagues in the Department, for their drive to make reform of the levy a reality.

All of us have a focus on certain elements of change, and I want to highlight a few areas that matter in my constituency. The first area is removing barriers related to English, maths and functional skills. We should allow flexibility on functional skills requirements, focusing on workplace-specific competencies rather than mandatory qualifications that block completion. I know from my conversations in Peterborough that that would be particularly important for construction, trades and other areas that we are talking about, where sometimes the competencies required are holding back young people who could flourish in those workspaces.

The second area is increasing the availability of level 2 programmes as a crucial entry point, aligned with local skills gaps and economic needs, particularly in sectors such as construction and healthcare, and for traders and small businesses. The third is providing fast-track options for those with technical certificates or prior experience, enabling them to complete apprenticeships faster. I would also like to see the expansion of degree apprenticeships, enabling more working-class young people to acquire skills in a paid job from day one.

At the end of the day, we cannot ignore the problems we face: poor skills, declining youth opportunities, stagnant wages and an over-reliance on workers from abroad. Some 11 million people of working age are currently inactive. That is a scandal, and it is the legacy of the last 14 years of Conservative Government. We all have a duty to turn it around by generating thousands more apprenticeships for young people, especially those under 25. That will be central, I believe, to the mission of this Government.

That brings me to my second challenge, which is a much broader one, about how we talk about apprenticeships. The topic of this debate, the perception of trades and apprenticeships, is central to that. We need to change the language, culture and approach to careers guidance and apprenticeships. I totted up the entries in a list I got from my office, and since I was elected, as part of my work on apprenticeships, I have met more than 100 businesses and learners from my constituency and more widely. Not one learner said to me that they started their apprenticeship because of help at school.

In our education system, we have a language for university but not one for apprenticeships. That cultural bias in our education system is holding young people and our country back. It needs to end. School are too often geared towards helping young people enter higher education. The language is about higher education: “What do you want to study?”, “Where are you planning to go?”, “Have you been to an open day?” We need a Government-wide and country-wide mission to change that—to make apprenticeships as important a choice as university for our young people. If we do not, we will fail.

As co-chair of the all-party parliamentary group on apprenticeships, I am working across the House to help find workable solutions to those issues. I am lucky enough to meet great employers and apprentices in Peterborough and around the country—particularly those in construction, which my hon. Friend the Member for Portsmouth North focused on so clearly. I have met with Laing O’Rourke on building sites in east London, with Travis Perkins to look at its work to support the trade, and with young people and construction workers in my own constituency. I know the will is there.

My dedication to apprenticeships is why I support the plans to get Britain working. It is why I welcome the youth guarantee, under which all young people will be offered the chance to earn and learn. It is why I will continue to campaign for an apprenticeship system that is fit for purpose—because apprenticeships are the lifeblood of decent work and growth in our economy, offering more young people a ladder of opportunity to the jobs of the future, and ensuring that our economy can sustain higher living standards through the right kind of skills training, which leads to economic growth.

We are committed to changing both the scope and perception of apprenticeships. Sir Martyn Oliver’s recent Ofsted report emphasised the transformative impact that apprenticeships can have, offering young people practical skills, experience and opportunities. Those milestones underscore an important truth: apprenticeships are not a fallback, they are a springboard to success.

14:57

[Clive Jones (Wokingham) (LD)]

It is a pleasure to serve under your chairship, Mr Betts. I thank the hon. Member for Portsmouth North (Amanda Martin) for securing this important debate.

We do not have a construction college in Wokingham borough, and residents hoping to undertake a trade apprenticeship will find that the closest colleges are in Bracknell, Reading or even Basingstoke. Anyone who wishes to undertake a civil engineering course will need to travel as far away as Fareham, an hour and 18 minutes away by car. The lack of local training centres has proved to be a challenge for construction companies in the area. Often, young apprentices do not have cars, and so cannot drive long distances, or lack the financial means to travel very far out of the borough. Given that the existing public transport is not very good, the problem is set to get bigger with the Government’s removal of the £2 bus fare cap. More must be done to support young apprentices.

It is unfortunate that there is a currently significant skills gap in the construction sector in my constituency of Wokingham, and across Berkshire. I thank Paul Britton of the Thames Valley Chamber of Commerce for its work on Berkshire’s local skills improvement plan. It has calculated a 19% decline, locally, in the number of carpenters’ and joiners’ jobs, an 8% drop in electricians’ and electrical fitters’ jobs, a 9% decrease in construction operatives’ jobs, and a 7% fall in elementary construction occupations. Despite that overall decline, we have an estimated need for an extra 4,300 jobs, and 14,900 replacement workers in those sorts of jobs will be needed by 2035. What will the Minister do to cover the shortages that we know are in the pipeline?

Just about everybody will say that they have difficulty finding a carpenter, a plumber or an electrician. Employers state that greater knowledge of the sector is needed in schools to show the opportunities and career progression that is available. Employers also note that the skills gap is not just limited to traditional trades, but to digital and sustainable skills in the construction sector. Can the Minister explain the Government’s plans for building awareness of apprenticeships in schools?

The Liberal Democrats would create a new lifelong skills grant for every adult, giving them £5,000 to spend on approved education and training courses to gain skills for the jobs of the future. Our existing system is not set up for a world of work in which the skills we learn at 18 or 21 will not last a lifetime. How will the Minister’s plans for Skills England and reforming the apprenticeship levy yield better opportunities for apprentices in Wokingham, especially in the construction sector? Will the Minister commit to meet me and the companies that offer apprenticeships to discuss what they need from the Government to deliver better opportunities for apprenticeships in Wokingham?

Turning to the issue of recruitment and completion rates, there is a perception of trade apprenticeships as muddy boots and jobs for young boys. Through the work of Wokingham’s section 106 employment and skills plan, we hope to change that perception. Locally, 30 community skills events have been held to help break down the stereotype, including work experience, careers talks in schools and site visits. However, there are foundational issues with the existing structures that the Government need to address before firms can consider establishing apprenticeships.

Specifically, Wates Construction is currently managing the Gorse Ride redevelopment project in my constituency. It has highlighted a problem that similar and smaller subcontractors experience. They sometimes do not have the capacity to take on apprentices due to the value of the contract and the duration, where they may not be on site for long enough. Although shared apprenticeship schemes are great, they have to pay agency fees on top of apprenticeship wages, which makes it an unaffordable option. Can the Minister address the issues raised by Wates Construction about the affordability of apprentices? What more can be done to ensure businesses like theirs can take on more apprenticeships?

15:03

[Dame Harriett Baldwin (West Worcestershire) (Con)]

It is a great honour to serve under your chairmanship this afternoon, Mr Betts. I congratulate the hon. Member for Portsmouth North (Amanda Martin) on securing this important debate. I must start by declaring an interest: I am married to someone who did a BT apprenticeship back in the day, and he always talks about how incredibly valuable that was as a way to learn after leaving school. So I did slightly bridle at the rather attacking political tone that I heard from the hon. Lady in her opening remarks, because if there is one thing that we have complete cross-party consensus about in this Parliament, it is about the value and importance of apprenticeship routes. We may occasionally differ on the means and the approach, but I think we would not differ in terms of the end and how important it is for our country and economy to have more people doing apprenticeships, because they offer a wonderful opportunity for young people to learn valuable skills on the job and earn a salary while they learn. As a nation, we need to ensure that school leavers and employers view an apprenticeship on equal terms with going to university.

I will point out some of the positive statistics from the last Government’s track record. Nearly 70% of occupations could be entered via an apprenticeship by the time the last Government left office. In 2009-10, there were fewer than half a million people participating in apprenticeships, but by 2023-24, there were more than 735,000 participating and training under the more rigorous industry design standards introduced in 2014. The 178,220 achievements reported for the 2023-24 academic year represented the highest number since the pandemic, in 2018-19. Between 2010 and 2024, the previous Government delivered 5.8 million apprenticeships, and passed legislation requiring children to be informed about technical education opportunities. It is crucial that the Government build on this legacy, and I am sure we will hear from the Minister on how they intend to do that.

According to the Liverpool School of Plastering, the UK will need to recruit more than 1 million tradespeople by 2033 to meet the demands of a growing population and the infrastructure requirements. The hon. Member for Portsmouth North highlighted some of the important roles in her constituency that would require that. The shortfall we have in this country is driven partly by an ageing workforce, but also, as the hon. Lady rightly highlighted, by negative perceptions of trades, and by demand outstripping supply. Some of the negative perceptions that young people have include seeing these jobs as being physically demanding, low paying, and lacking in career progression. That does not reflect the diverse and rewarding career paths that exist today in trades.

In the autumn Budget, we heard that the Chancellor is increasing the rate of pay for apprenticeships by some 18% up to £7.55 an hour. On top of that, the Government have raised employer national insurance contributions, and the threshold at which national insurance is paid has been lowered from £9,100 to £5,000 a year. It will be important to note how this cost squeeze will impact the number of apprenticeships that businesses are able to provide. We will follow and scrutinise that in the weeks and months to come.

I endorse what we have heard from so many Members this afternoon about the importance of apprenticeships, the incredible opportunities they offer to so many young people, the importance of issues such as transport, and the awareness and knowledge that both businesses and young people need to have. With that, I look forward to hearing from the Minister.

15:08

[The Parliamentary Under-Secretary of State for Education (Janet Daby)]

I congratulate my hon. Friend the Member for Portsmouth North (Amanda Martin) on securing this important debate. I thank her for speaking so passionately about the importance of apprenticeships as a route into the construction sector and many other vital industries. I will endeavour to respond to all the points she made. I would also like to thank the other Members that have contributed to the debate: my hon. Friend the Member for Peterborough (Andrew Pakes) and the hon. Members for Strangford (Jim Shannon), Wokingham (Clive Jones), and West Worcestershire (Dame Harriett Baldwin).

Everyone across this Chamber cares about young people and fully accepts that young people need to be in apprenticeships, where that is suitable for them. If it is right for them, it is also right for getting the economy going and ensuring the growth in our country that we so desperately need. It is right that we put our efforts as a Government towards making sure that young people succeed in this area. However, I would also say that we have inherited a picture that is not as positive as the shadow Minister laid out.

We know that around a third of vacancies in the UK are hard to fill due to a lack of skills in these sectors, with large shortages in construction and information and communications. Skills shortage vacancies make up a significant proportion of all vacancies in construction, information and communications, manufacturing and health and social work. We have actually inherited a picture where many companies and organisations are finding they cannot employ people because they do not have the relevant skills, and we have millions of people that need to be in work that do not have the skills for certain jobs where they could fulfil their potential.

Between 2020 and 2035, the construction industry will need an additional 1,143,000 people in the workforce, in order to take account of additional workers and to replace existing workers. As Members have said, we really do have our work cut out for us.

All Members will recognise the long and proud history of apprenticeships and trades in this country. Apprenticeships in England can be traced back to the middle ages when craft guilds were first established—they are part of our DNA. The first national apprenticeship system of training was introduced as far back as 1563.

Despite that long-standing history, especially in construction, it is concerning that, in recent years, we have seen declining apprenticeship opportunities in vital occupations such as bricklaying, plastering, plumbing and so on, particularly for younger people. It is of great concern that, following reforms of apprenticeships, including the introduction of the apprenticeship levy in 2017, apprenticeship starts by young people under 25 fell by almost 40% according to data published by the Department for Education. It is also concerning that so many workers and employers have told us they find it difficult to access the skills they need, particularly in critical areas such as construction trades.

The UK construction workforce is just over 2 million people, according to the latest figures from the Office for National Statistics. Despite an average of 38,000 vacancies advertised per month, almost a third of construction employers report that finding suitable skilled staff was their key challenge, as I have already mentioned. In addition, our labour market and skills projections suggest that between 2020 and 2035, we will need to work hard to make sure there are more than a million people to replace people in this sector.

We need reform of our skills system so that we are able to meet such demands. That is exactly what this Government are going to do, and have begun to do. It is clear that the skills system is fragmented and has lacked a clear plan, which has resulted in a lack of clarity around which sectors need prioritising and has led to a skills landscape that is confusing to learners and employers.

There has been lots of concern, as has been mentioned, about the drop-out rate of young people in apprenticeships. That is of course very concerning, and there are different reasons for those rates. Surveys have been done and people move on for many reasons, such as other employment or promotion, or finding the apprenticeship difficult. The situation is being reviewed and assessed.

The issues have been compounded by insufficient investment in skills, which has led to a decrease in adult participation in further education and training. To address that, the Government have established Skills England, a new body that will tackle skills shortages and support sustained economic growth. Skills England will help to ensure that the skills system is clear and easy to navigate for young people and adults, strengthening career pathways into jobs across the sector. It will increase the quality and quantity of skills development in the workplace. It will work together with combined authorities and other places with devolution deals, as well as other regional organisations such as employer representative bodies, to ensure that regional and national skills needs are met at all levels—from essential skills to those delivered via higher education, in line with the industrial strategy.

We have also set out plans for a more flexible levy-funded growth and skills offer, building on the current apprenticeship offer. I assure hon. Members that the Government are listening to employers. Employers have told us that the current apprenticeships offer is inflexible and that the system does not work for them. We want to support employers, not only in the trades, but in all sectors, to develop the skills that they need to thrive. That is why we have introduced a more flexible levy-funded growth and skills offer that will provide employers with greater choice.

As a key first step toward greater flexibility, we are introducing new shorter-duration apprenticeships and foundation apprenticeships, as employers have told us that not all roles or all learners need a minimum of 12 months’ training. We are responding to employers who have said that more support is needed to generate a pipeline of talent that can access occupationally specific apprenticeships, and we are exploring the best way in which shorter-duration apprenticeships can better meet the needs of specific sectors such as construction, where occupational competence can be reached in less than the current minimum duration of 12 months, or where individuals have relevant prior learning.

We will, of course, protect the elements that make apprenticeships work so well and ensure that they retain the credibility and prestige they hold with employers. Our new work-based foundation apprenticeships will focus on ensuring that training is directed towards real vacancies. They will provide young people with a broad training offer, with clear and seamless progression into their next opportunity, whether that is the next level of apprenticeship or other valuable occupational learning. We will work closely with employers and providers. The Government will make sure that we get this right.

[Jim Shannon]

I thank the Minister for her positivity and for her response to the hon. Member for Portsmouth North. I hope I have not jumped the gun with this point—perhaps the Minister is coming to it. Has she had discussions with those back home in the Northern Ireland Assembly about working together to progress things in a positive way for everyone?

[Janet Daby]

I thank the hon. Member for his intervention and for his earlier speech. We are working with our devolved Administrations and are committed, along with them, to making sure that we get this right for young people. I thank him for his contributions about, and concern for, young people needing to complete their apprenticeships. I am very willing to engage further with him on these conversations.

In addition to the declining numbers of apprenticeship opportunities in recent years, it is also concerning that only around half of apprentices go on to achieve their apprenticeships. The latest available data for the 2022-23 academic year shows that the apprenticeship achievement rate was 54.3%. In the construction sector, the achievement rate was slightly lower, at 52.7%. Although that represents an increase on the previous year, as in so many areas of the skills system, we need to do much more. We all know that apprenticeships, when completed, deliver great outcomes, so it is critical that we work together with employers, learners and providers to make sure that more apprentices achieve. The Government are working hard to deliver that.

There are concerns around the English and maths requirements for apprenticeships, which are sometimes a barrier to completion and achievement. We are looking carefully at this policy to make sure that we set high standards while supporting apprentices to achieve. We will continually improve other areas of apprenticeships, including end-point assessment, to ensure that they are robust yet proportionate and aligned with key professional qualifications. I am clear that this is a partnership, so we will also make sure that employers and providers have the support and challenge that they need to improve by sharing best practice and improving guidance, alongside an inspection and accountability system that drives improvement.

I welcome the work of the Construction Industry Training Board to support construction apprenticeships in key trades, such as bricklaying and carpentry. The CITB, which is sponsored by the Department, provides financial support to both construction employers and learners. Employers can claim £2,500 a year per apprentice while individuals complete their apprenticeship and a £3,500 achievement grant on successful completion of their full apprenticeship. Apprentices that go on to complete their apprenticeships can look forward to wage returns and more secure employment.

I gently remind my hon. Friend the Member for Portsmouth North that the Chancellor set out in the Budget that the apprenticeship minimum wage will increase by 18% from April 2025, from £6.40 to £7.55 per hour. The median annual earnings for apprentices achieving a level 3 apprenticeship in the construction, planning and built environment sector in 2015-16 were £21,730 one year after studying, rising to £29,620 five years later. We will ensure that many more apprentices, including those in key trades, see those benefits in the future.

As my hon. Friend mentioned, small and medium-sized enterprises are a key area of interest. They are a driving force in the construction sector, playing an important role in providing local opportunities to young people, and we provide a range of financial support to help them to take on apprentices. For non-levy paying employers—they are likely to be smaller employers—we pay 100% of the apprenticeship training cost for young apprentices aged 16 to 21. We also provide £1,000 to employers when they take on apprentices aged under 19, in recognition of the additional support that younger apprentices may need when entering the workplace. Employers can choose how best to spend that, and they are not required to pay anything towards employees’ national insurance contributions for apprentices up to the age of 25.

I strongly encourage any young person to consider a rewarding career in the trades, whether that is as an electrician, scaffolder or plasterer. My hon. Friend the Member for Peterborough spoke so passionately about apprenticeships being an excellent entrance to jobs and occupations. It is a brilliant route for young people, and I could not agree with him more. The Government are really ambitious for young people, where it is right for them, to pursue apprenticeships, and it is our job to make sure that we give them every opportunity to do so. This Government are about breaking down barriers and ensuring that young people have those opportunities.

The Government have an ambitious plan for rebuilding Britain. We have committed to building 1.5 million homes in England to ensure that people have access to quality housing, and skilled trades are absolutely necessary if we are going to achieve that target. We are working closely with industry to ensure that we have a skilled workforce to deliver that commitment. Last month, we announced a £140 million package of industry investment to create 32 home building skills hubs in areas that need more housing. The hubs are an example of how sectors can use existing flexibilities to solve skills shortages and support growth. They will make use of existing flexibilities in our apprenticeship system to deliver fast-track home building training and apprenticeships for skills in critical demand for home building, including groundwork, site carpentry and bricklaying. The Government are committed to building on that type of innovation.

I am enormously grateful for the support that my hon. Friend the Member for Portsmouth North has given this agenda today and for all the very significant and relevant contributions. The hon. Member for Wokingham spoke about his local area and the support that is needed. He emphasised the decline in many of the apprenticeships that are needed for young people, and he asked for a meeting. I invite him to write in and I will endeavour to ensure that my noble Friend, Baroness Smith, will have a meeting for that very important discussion.

Hon. Members have raised some important concerns about skills shortages in critical trades, and about the perception of careers in those vital occupations. I am grateful for the considered contributions of everyone who has spoken. It is clear that there are widespread skills shortages in vital industries, such as construction. We will all need to benefit from young people being in those jobs at some point or other in our lives, and it is especially needed for our country when we are looking at growth. I have set out today how we will begin to tackle this issue, starting with the establishment of Skills England and by developing a more flexible and levy-funded growth and skills offer. Those actions will support employers and learners across the country in accessing high-quality skills training.

15:29

[Amanda Martin]

Thank you for your chairmanship during this debate, Mr Betts. I thank everyone for their valuable contributions, and I welcome their research and insight into this topic. I will touch on a few points, if I may. I thank the hon. Member for Strangford (Jim Shannon) for his Northern Ireland perspective and the questions he posed. However, I want to say that working in a trade is, and can be, a career for those academic kids, as well as those who would traditionally follow a vocational route. I met a wonderful young man at Springfield secondary school’s year 11 awards evening. He did very well in getting grade 9 in all his GCSEs, and had proudly taken up a carpentry apprenticeship. He was so passionate about the opportunity he had that it gave me goosebumps to have that conversation with him. We need to put lads like that at the forefront to say that this career path can be taken.

I thank my hon. Friend the Member for Peterborough (Andrew Pakes) for his promotion of the trade sector in his constituency and in this place, and for his solutions, ideas and passion to elevate the status of trades, which I echo. The hon. Member for Wokingham (Clive Jones) presented stark statistics, showing the difficulty that young people face in accessing training and a start to their careers. I can echo that it is difficult enough to find a tradesperson, as they are always busy, but try doing that when it is someone in your family and you become a love job—you definitely to go to the bottom of the list. My mum has had a dripping tap for over a decade, and I had a light in my front room—we call it “the big light”—that did not work for 18 months. So I know that it is even worse when it is a love job from your family.

I want to make a few points in response to the shadow Minister. First, it is good that she made a commitment—obviously, she has her background with her husband—to apprenticeships and their value, because previous Government initiatives did not seem to do that. Levelling up did not work, with areas of affluence seeing more sign up to apprenticeships while deprived areas saw a drop. Also, the high-level apprenticeships did not work because there was a drop in the construction industry.

I thank the Minister for her contribution and commitment to people working in the trade sector, be that businesses, apprentices or future apprentices, through the changes that we have started, identified and hope to continue. I would like her to take back to the Department some points from today’s debate. To achieve the ambitious growth in house building targets that I am pleased the Government are pursuing, we must upskill, and vocational education must be central to that across the country. Broadening the pool of apprenticeships not only solves an important part of the skills gap facing several sectors—notably construction—but it unlocks opportunities for young people and those who want a career change.

We need more people to use the flexible apprenticeships that have been mentioned, and we need those to work for a diverse range of people. I was one of the first girls to take a GCSE in design and technology, which is why it has always been a big passion of mine. We need to look at what we are doing in our education system. We need a system that values all pathways equally, so that the young man from Springfield school is not unique in pushing himself into this career. We must celebrate and elevate this vital sector, showing young people, and those not so young wishing to change their career, the possibilities, the positivity and opportunities available. I thank everyone working in the sector who is doing that day in, day out.

Apprenticeships can lead to successful businesses, higher wages and skills to be proud of, and I would like to see our education system and society placing vocational training at the heart of its ambition. As I have said, and continue to say, if someone cannot see it, they cannot do it. I am pleased that the Government recognise that and are beginning to unlock and make improvements immediately.

Question put and agreed to.

Resolved,

That this House has considered public perceptions of trades and apprenticeship completion rates.

15:33

Sitting suspended.