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The Parliamentary Under-Secretary of State for Work and Pensions (Lilian Greenwood)
It is a pleasure to serve under your chairmanship, Sir Christopher.
I congratulate my hon. Friend the Member for Isle of Wight West (Richard Quigley) on securing this important debate and making such a strong case for manufacturing skills, both on the Isle of Wight and across the country. As he set out, the Isle of Wight punches above its weight in advanced manufacturing. Businesses including Wight Shipyard, Diverse Marine and GKN Aerospace demonstrate the breadth of modern British manufacturing, from shipbuilding and aerospace to clean energy, defence and precision engineering. My hon. Friend is right that this is not simply about preserving Britain’s industrial heritage; it is about building the industries, supply chains and skilled careers of the future.
I particularly welcome my hon. Friend’s focus on the new Large Structures Innovation Centre and Isle of Wight College’s specialist centre for engineering and advanced manufacturing training. Investment in facilities and innovation must go hand in hand with investment in people, so that employers have access to workers with the skills they need, and local people can benefit from the opportunities being created.
My hon. Friend was also right to recognise the strengths of Derby, from rail and automotive to aerospace and nuclear power. Alongside the Team Derby initiative, those strengths demonstrate the benefits of bringing together industry, skills and investment to support growth.
As we have heard, across the UK manufacturing contributed £229 billion to the economy last year and supported 2.5 million jobs, with advanced manufacturing alone supporting around 770,000 jobs. But we need to prepare for the future: 36% of the manufacturing workforce is aged over 50, and Skills England projects demand for around 148,000 workers in priority occupations in advanced manufacturing by 2035, reflecting both growth and the need to replace those who leave the sector. That is why skills are central to our approach to growth in every postcode. We are investing more than £1 billion in sector skills packages, including £182 million for engineering, to strengthen technical training and build the workforce needed by advanced manufacturing and other growth-driving sectors.
My hon. Friend the Member for Isle of Wight West made an important wider point. As well as creating the skilled workforces that businesses need to grow, we need to ensure that young people have the opportunities they need to start, stay and succeed in high-demand sectors. The Opposition spokesman, the hon. Member for Meriden and Solihull East (Saqib Bhatti), talked about youth unemployment; I remind him that between 2021 and 2024 the number of young people not in employment, education or training rose by a quarter of a million and the Conservatives did nothing. That is why we are reforming vocational routes for young people, including apprenticeships and technical education, and investing in technical excellence colleges, strengthening careers education and expanding work experience to help young people to move from education into skilled employment.
As my hon. Friend the Member for Portsmouth North (Amanda Martin) said, we need clear technical pathways that begin before young people make crucial choices and continue into further education, apprenticeships and skilled work. That starts with technical education from age 14, on an equal footing with academic education, to help more young people to access technical qualifications alongside their GCSEs, careers guidance and relevant work experience.
Lilian Greenwood
I will not because I am short on time. If I have time later, I will.
We have also announced new vocational GCSEs to give young people greater choice and equip them with practical knowledge and skills. After GCSEs, young people need routes that are easy to understand and valued by employers. This week is T-level week; these qualifications in engineering and manufacturing combine specialist classroom learning with a substantial industry placement, giving students experience of the workplace and a route into skilled employment, an apprenticeship or further study.
From 2028, V-levels in engineering design and engineering manufacturing will provide a broader applied route, while occupational certificates will offer a two-year route towards skilled roles such as engineering operative, autocare technician and welder. Foundation certificates will help students who need additional preparation before they progress to level 3 study. Together, the reforms will provide greater choice and clearer progression into manufacturing careers.
Gareth Snell
I declare an interest as a governor of City of Stoke-on-Trent sixth-form college. The previous Government decimated the BTEC programme, creating the gap that V-levels are filling, but V-levels are going to be short qualifications as opposed to larger qualifications that mirror BTECs. Given that the Department is looking at the roll-out of future V-levels, will the Minister consider making them a large qualification that could be studied independently—rather than alongside A-levels, or requiring three for a university application—as a way to make the breadth of opportunity mirror BTECs while keeping the values of the V-levels that the Government are going to try to introduce?
Lilian Greenwood
I thank my hon. Friend for making that point. The whole point is that we want to offer young people a range of options and choices.
Apprenticeships will remain central to our offer because they allow people to earn while they learn, and help employers to develop the skills that they need. I know there are calls for the maximum funding band levels to be reassessed in certain occupational areas, and we are working closely with the sector and Skills England to determine how best to use all available funding sources, based on robust evidence of cost of delivery.
Transforming the apprenticeship levy into a growth and skills levy is giving employers greater flexibility and supporting 50,000 more young people into apprenticeships. New apprenticeship units will also help the system to respond more quickly to changing skills needs. I am grateful to the hon. Member for Taunton and Wellington (Gideon Amos) for recognising that apprenticeship units in battery manufacturing, mechanical fitting and assembly, and mechanised welding were developed by Skills England in just three months, following consultation with employers and sector experts. I am sure the Skills Minister will be happy to meet the hon. Gentleman to discuss the dedicated support that Skills England has established.
We are also increasing support for employers. We fully fund apprenticeship training for employers of all sizes for eligible young apprentices under 25, while smaller employers will receive a £2,000 hiring payment when they recruit an apprentice who is under 25. That support matters, particularly to smaller manufacturers, which are vital to local supply chains but can find it harder to meet the initial cost of recruiting and supporting an apprentice.
Alongside clearer routes and strong apprenticeships, colleges need the specialist facilities, equipment and teaching expertise required by modern manufacturing. That is why we have established four advanced manufacturing technical excellence colleges, including the one my hon. Friend the Member for Wolverhampton North East (Sureena Brackenridge) highlighted in her city. They are part of a wider network of 29 technical excellence colleges, representing an investment of £295 million, that is expected to benefit more than 100,000 learners by the end of this Parliament. The colleges will provide advanced facilities, expert teaching and training shaped by employer demand. Through a hub-and-spoke approach, they will share expertise with other providers, thereby strengthening technical education beyond their own campuses.
Perran Moon
The announcements over the past two months relating to post-14 skills have been largely targeted at mayoral strategic authorities. Some 48% of the country is not in a mayoral strategic authority, and Cornwall never will be. Does the Minister agree that funding and flexibility for post-14 skills need to be spread across every postcode, not just in mayoral strategic authorities?
Lilian Greenwood
My hon. Friend pre-empts what I was going to say, which is that a key part of our approach is about shifting power, funding and accountability away from Westminster. We will work with mayoral and strategic authorities to shape their local skills systems and support economic growth in their regions. I assure my hon. Friend that that will apply to Cornwall, just as it will apply to the opportunity to work with our mayors in the west midlands, west Yorkshire and south Yorkshire, as colleagues asked about.
We want to design locally tailored, vocationally focused pathways for each region. Strategic authorities are well placed to bring together employers, schools and colleges, to strengthen the links between education and work, and to help to broker relevant work experience. As my hon. Friend the Member for Mansfield (Steve Yemm) highlighted, they can build on existing successful partnerships such as that between Nottingham Trent University and West Notts college. They can connect skills decisions with their understanding of local investment, workforce demand and the needs of employers. That really matters, because the opportunities available on the Isle of Wight are not the same as those in Derby, Stoke-on-Trent, Mansfield, Lichfield, Cornwall, Doncaster, Portsmouth, Wolverhampton, Lancashire, Alloa and Grangemouth, Taunton and Wellington, Glasgow, Cambridgeshire or Meriden and Solihull. Local leaders can shape delivery around the strengths and needs of their economies—I hope the devolved Government in Scotland have listened carefully to hon. Members’ points.
My hon. Friend the Member for Isle of Wight West rightly highlighted the success of manufacturing on the Isle of Wight and the importance of investing in the workforce that will sustain it. The businesses that hon. Members have described demonstrate that world-class advanced manufacturing can thrive and create skilled jobs throughout the country. But that is only half the job; investing in the skills that power them is what turns ambition into long-term economic success. That is already visible on the Isle of Wight, showing what is possible. Our task now is to ensure that more people, particularly young people in all parts of the country, have the skills and opportunities to be part of that success. I have not had a chance to address a number of questions raised by colleagues, but I am sure that my noble friend the Minister for Skills will listen to their representations and perhaps write to them on any specifics.