Apprenticeships

Baroness Sharp of Guildford Excerpts

Wednesday 26th March 2014 Lords Chamber

[Baroness Sharp of Guildford (LD)]

My Lords, I join others in thanking the noble Lord, Lord Young, for bringing this important debate to the House. It is about the number and the quality of apprenticeships that government has been able to establish. Like the noble Lord, I started by looking at the statistics. As he pointed out, starts in apprenticeships are up. Between 2009-10 and 2012-13, they increased from 270,000 to 495,000. I pay tribute to the previous Labour Government for laying the foundations for this increase. Equally, the coalition Government have done much to build on the foundations that were laid then and we see it in this figure of 495,000, which is almost the half a million that has been cited.

However, like the noble Lord, Lord Young, I noticed that the increase was not evenly distributed. The numbers for the 16 to 18 year-old group were down by 4%. The number of 19 to 24 year-old apprenticeships was up by 42%, but the big increase, as the noble Lord pointed out, was in the over-25 group, which saw a rise of 350%. In terms of numbers, therefore, there is undoubtedly an increase. The noble Lord, Lord Monks, mentioned that the nadir point for recruiting apprentices was in the early 1990s, when the number of apprentice starts was below 100,000. It has been building up since then.

On quality, the noble Baroness, Lady Prosser, talked about looking at where the increases in the number of apprenticeships have taken place. In health and social care, they were up by 197% between 2009-10 and 2012-13; in business, administration and law, they were up by 84%; and in retail and commercial enterprise, they were up by 64%. This compares with construction, planning and built environment, in which they are down by 7%. In engineering and manufacturing technology—vital to rebalancing the economy—they are up 24%, which is still well below some other areas. In information and communications technology, they are up by 2%. Looking at those figures, I reflected on the fact that we frequently praise the German system of apprenticeship but we should recognise that this applies to 15 to 19 year-olds and provides them with a foundation of skills for life. This compares with the United Kingdom where our young people are not going into apprenticeships, in spite of the fact that the Government pay all the costs for 16 to 19 year-olds. It is rumoured that the Government may well ask employers to contribute rather more than they do at the moment. I fear that, if that happens, it will kill apprenticeships for 16 to 19 year-olds although they are a vital part of our raising of participation.

What is holding it up? First, I agree with the noble Baroness, Lady Prosser, and others that careers education has a major influence. There are still far too many schools where apprenticeships and vocational training are seen as second best to university. Most teachers know very little indeed about vocational routes to work. We need to make sure that schools are getting proper careers advice from properly trained and experienced careers advisers and that young people get the face-to-face advice that many of them need.

Secondly, the Government are putting a great deal of emphasis on employer ownership of apprentice training. I confess to some reservations about this because there remains a huge dearth of apprenticeships. My figures show that 9% of UK firms take on apprentices, though the noble Lord, Lord Young, mentioned 13%. This is a very small proportion. There are a huge number of applications to Rolls-Royce and BAE Systems, whose apprenticeships are the cream. However, the average apprenticeship advertised by the National Apprenticeship Service gets six applications. We do not have enough of them and we must encourage firms to provide more. The answer probably lies in encouraging our small and medium-sized businesses to take them on. The £1,500 per apprentice that came in the Budget already applies to small and medium-sized businesses. Many of these SMEs are put off by the bureaucracy attached to apprenticeships and we need to encourage the expansion of group training systems and apprentice training agencies who take on the organisation of apprenticeships.

In a report published in 2007, your Lordships’ Committee on Economic Affairs concluded that apprenticeships were the most satisfactory route to skills below the graduate level and should be the standard method for providing education and training for young people in the 16 to 18 age group not going to university. We are still a very long way away from that.