Skills and Labour Shortages

Debate between Lord Brady of Altrincham and Kevin Hollinrake

Thursday 12th January 2023 Westminster Hall

[Kevin Hollinrake]

I think the adult education budget has something to do with that, but the hon. Lady is right to point to the improvements that we need to make in numeracy and literacy. Clearly, that is not directly the responsibility of my Department, but I am very keen to go back to DFE and make sure that it is aware of her views.

On identifying skills gaps, evidence from the Chartered Institute of Personnel and Development shows that 46% of employers reported having hard-to-fill vacancies. The top response from employers with hard-to-fill vacancies has been to upskill staff, which is clearly key. We know which regions have the highest skill-shortage density, and we know about the impact on employers when they lose business. The key areas where we feel that the skills gaps are most acute are workforce sectors with high volumes of vacancies, green jobs, which have been mentioned by many Members, growth sectors, and science and tech. We are committed to tackling these skills gaps through major investment and reforms to skill and further education provision.

I turn to some of the excellent work done by my colleagues in the Department for Education on apprenticeships, which were mentioned by my right hon. Friend the Member for Chipping Barnet and the hon. Member for Chesterfield. There have been over 5.1 million apprenticeship starts since May 2010. In recent years we have transformed apprenticeships, driving up the quality so that they better meet the skills needs of employers. I fully recognise and support businesses’ calls for us to make the levy funds more flexible, but we have to see the issue in context.

Some of the earlier apprenticeship schemes were criticised for not being sufficiently robust and challenging, or of the right quality. It is about striking a balance, but I am very impressed by some of the skills bootcamp-type schemes that perhaps we should focus on in order to give more flexibility. I went to see a new initiative called Trade Up, which seeks to double the number of construction workers. It is a private sector initiative with very short, 10 to 16-week courses, and it involves getting gas fitters and joiners back into the sector.

There are lots of different solutions that we need to look at. The Government have launched T-levels for young people, which will boost access to high-quality technical education. The Government are also committed to ensuring that, at any stage, adults can upskill to reach their potential through skills bootcamps and level 3 free courses for jobs in priority areas. The adult education budget, and giving adults a funding entitlement to get English, maths and digital qualifications, is hugely important, as the hon. Member for North Ayrshire and Arran said.

The Government’s research and development people and culture strategy puts people at the heart of research and development, and sets out our plans to attract enough people with the rights skills across all roles. We are aiming for a full pipeline of research and innovation workers for the future. A huge part of understanding the role that skills play is making sure that we can respond to labour market shortages. The Government are working closely with businesses, and encouraging them to take a stronger role in providing their workforce with skills and training.

Do you want me to conclude, Sir Graham?

[Sir Graham Brady (in the Chair)]

That would be a good idea.

[Kevin Hollinrake]

Okay. I will touch on immigration, because it is hugely important. Clearly, this is a key part of the system. We have the new points-based immigration system, and it is critical to people who voted to leave the European Union that we control migration. Clearly, it is important that we take a pragmatic view. We are monitoring the situation—for instance, we added care staff to the shortage occupation list only this year. I have great sympathy with asylum seekers, and as a Back Bencher I said that we should be more flexible. The issue is one that Members might want to discuss with the Home Office, which has direct responsibility for it.

I thank the hon. Member for North Ayrshire and Arran for securing this very important debate. It has been fascinating and stimulating, and we have had a great discussion on a topic that everyone across these Benches believes is vital.