Skills and Post-16 Education Bill [HL]

Debate between Lord Aberdare and Lord Baker of Dorking

Committee stage
Monday 19th July 2021 Lords Chamber

[Lord Baker of Dorking (Con)]

My Lords, I warmly support the amendment moved by my colleague and noble and learned friend Lord Clarke of Nottingham. We are both members of the House of Lords Select Committee on Youth Unemployment, as are the noble Lord, Lord Layard, who is a supporter of this amendment, and the noble Lord, Lord Storey, who speaks for the Liberals. We are exploring all ways in which we can improve skills training in our country, which is pretty dismal at the moment and compares very badly with many European countries.

One aspect that the Government boast of is the lifetime guarantee. This affects in particular those people who do not have A-levels and decide in their 30s, 40s or 50s that they would like to take an A-level course. To do that they will have to pay a course fee of about £5,000 to £6,000 a year, for which they may require a loan. As they are studying, they could not apply for the minimum wage or universal credit so, if they are unemployed, they would almost certainly have to take out a maintenance loan of another £6,000 or £7,000. So we would be asking unemployed people to pay £12,000 to acquire an A-level qualification that, had they stayed at school, they would have got for free. It is simply outrageous and unacceptable, and it makes a complete farce of what a lifetime guarantee is.

I am very hopeful that the Government will accept this amendment. Why am I hopeful? Well, about four weeks ago, the Government announced a skills fund on which they are going to spend about £2.5 billion. They suggested four items on which the fund could be based, the first of which was £93 million for free A-levels. They have now said that they want to go into consultation on the skills fund, which means that those original four proposals are on ice. I suggest that they should think very carefully and put the first item back in. That would be a way for the Government to fund this. Can the Minister tell us whether the four items of expenditure on the skills fund are on ice? They have spent most of the £2 billion among them.

I would go further than my noble and learned friend has done. If you go to an FE college at 18 and you get to level 3, you will want, if you are able enough, to go on to level 4, the higher national certificate, or level 5, the higher national diploma. This is where the main skills gap in our country is. If you analyse the skills gap in digital, in engineering or in the creative industries, you see that it is greatest at levels 4 and 5. These are two qualifications just below degree level—you would describe those taking them as high-quality technicians—and we have a huge skills gap in that area. We should be promoting levels 4 and 5.

A course at level 4, which currently costs about £6,000 or £7,000, should be free. If an unemployed person is doing that, they will not be able to claim the living wage or universal credit, so they will need a maintenance grant of probably £6,000 or £7,000. So someone who wants to study at level 4 today for whom the alternative is unemployment has to find a loan of £12,000, which by the time they finish will be £15,000. I do not think that is at all reasonable. Strangely enough, neither did the Department for Education about nine or 10 months ago, because it put to the Treasury the proposal that level 4 should be free for unemployed youngsters, as should level 5, the higher national degree, which is just below level 6—a degree. The Government should consider this proposal and I hope our Select Committee will consider it as well. We have to stimulate real growth at levels 4 and 5. If we do not, our country will fall behind technologically.

I am sure the Government will accept my noble and learned friend Lord Clarke’s proposal today because it would be totally illogical and unfair not to accept it, but I hope they will think a little wider and broader because we have to upskill our country and catch up with Germany, Austria and the Netherlands. We are so far behind. This is a moment at which we can make significant changes for generations of young people to come.

[Lord Aberdare (CB)]

My Lords, I support both amendments in this group. I put my name down mainly to speak on Amendment 76, which has been so powerfully moved by the noble and learned Lord, Lord Clarke of Nottingham, and to focus on Section 3, about apprenticeship funding for young people before the age of 25, which is badly needed.

The question I am asking myself is, how will this affect the overall funding of apprenticeships and how will it help to deliver, as stated by the noble Lord, Lord Baker of Dorking, a stronger focus on levels 4 and 5 as well? Where are those apprenticeships going to come from, and what is going to persuade employers to provide those opportunities? Many employers, of course, have limited capacity to take on new staff, particularly young people coming directly from education without previous working experience, however much they might wish to do so if they could. The result has been that those employers tend to use their levy funds to upskill or reskill existing employees—although, as I have mentioned before, even that may use up only a limited proportion of their available levy funds. That creates yet another incentive for them to recast what training they need in the form of apprenticeships where they can.

So, I strongly support the amendment. My question is, where are those apprenticeships going to come from and what impact are they going to have on the ability of employers to focus on reskilling and upskilling at the same time? I suspect that a significant number of apprenticeships for young people are likely to come from SMEs, yet many are put off from offering apprenticeships because of the bureaucracy involved and a lack of time and resources to manage the process, despite the generous incentives available. I encourage the Government to look at offering specific, more generous incentives to SMEs to take on young people aged 25 or under for level 2 or 3 apprenticeships, including help with their administration and simplified arrangements for fee-paying employers to transfer part of their levy funds to SMEs for this specific purpose. There are such arrangements but they do not seem to be as effective as one might hope.

I always fail to understand why there cannot be more specific support and encouragement for apprenticeship training agencies to run apprenticeship programmes for SMEs, perhaps as a specific element of the local skills improvement plan for a particular area. That would seem a useful way in which an LSIP could contribute to the take-up of apprenticeships in its area, specifically among SMEs and new entrants to the job market, and maybe with a slight slightly broader applicability of the apprenticeship levy than it currently has.

I very much support the provisions in Amendment 80 putting the lifetime skills guarantee on a statutory footing. One of these days, I look forward to hearing an explanation of why the skills guarantee is “lifetime” and the learning entitlement is “lifelong” and what the difference may be; it would make many lives much easier if we just used one term. I hope the Government will accept the amendment of the noble and learned Lord, Lord Clarke, in particular and explain how they want to achieve a better balance between younger apprenticeships and level 4 and 5 apprenticeships, for example.

Technical and Further Education Bill

Debate between Lord Aberdare and Lord Baker of Dorking

Report stage (Hansard): House of Lords
Monday 27th March 2017 Lords Chamber

[Lord Aberdare]

My Lords, I support Amendment 17 in the name of the noble Lord, Lord Storey. It is widely recognised, including in a number of reports published by some of your Lordships’ committees, that the quality of careers education and advice in both schools and colleges has hitherto ranged on a spectrum from patchy to poor. Surely one reason for that is the lack of any real incentive for schools and colleges to up their game and improve their offer. It seems to me that one of the most effective incentives that could be put in place is for schools and colleges to know that the quality of their careers education will be a significant factor in determining what sort of rating they get when they are inspected by Ofsted.

As we have heard, some good things are happening: the National Careers Service is developing its offer and in particular I am very impressed by what I have seen of the Careers & Enterprise Company and its effort to put a network of schools co-ordinators in place. None the less, we still hear constantly that, although schools are good at reporting their academic progressions and the number of people who have gone on to university or further academic education, they are not nearly so good at talking about students who have gone on to apprenticeships or further levels of technical and professional education. I rather like that term “technical and professional”, and thought the Minister in the other place was also rather keen on it, but that does not appear to be necessarily the case.

I very much support the amendment, particularly as it would go no further than requiring Ofsted to take account of the provision of careers advice in carrying out inspections, so it would not appear to be a huge burden on either Ofsted or the schools. It just sends a signal, as we always used to like doing. I support the amendment.

[Lord Baker of Dorking]

My noble friend Lord Lucas’s amendments are an addition to the clause that I introduced in Committee, but quite a useful one. The purpose of the clause is to ensure that schools have a duty to accept—and cannot reject—various people going in and talking to students at the ages of 13, 16, and 18 about the various types of training and education they provide, which is the most effective way to improve careers advice. I have sat through several Governments who have tried to create careers advice by legislation, and it just does not work. You cannot expect many teachers to know a great deal about life outside because they leave school, go to a teacher training college and then go back to school. You have to have real, live people going into schools and talking about what life is like in a factory or a business complex and offering the opportunities—and we will now have this.

In September this year, for the first time, not only the heads of university technical colleges but those of studio schools, career colleges and FE colleges, as well as apprenticeship providers, will have a right to go and speak to 13, 16 and 18 year-olds and explain to them the opportunities that are available to them other than just getting three A-levels and going to university. That is a major change. I strongly support the amendments in the name of my noble friend Lord Lucas. Groups such as Women in Engineering spend a lot time trying to persuade more women to get into engineering. We have courses in the UTC movement to persuade more girls to go into engineering, and the numbers are going up all the time: we sometimes get over 20% or 30% girls. We like that because when a girl decides to be an engineer, she is usually very determined and confident, and in many cases the brightest member of the team. This will help in all of that, so I support it. Careers advice in FE colleges is largely an unknown area, frankly, and they should certainly improve their advice. But they have the advantage of being able to go in and talk to schools from September of this year.

Technical and Further Education Bill

Debate between Lord Aberdare and Lord Baker of Dorking

Committee: 2nd sitting (Hansard): House of Lords
Monday 27th February 2017 Grand Committee

[Lord Aberdare]

My Lords, I share the concerns that have been expressed about a single awarding body. I would have thought that the idea would be to have the sort of single recognised qualification that the noble Baroness, Lady Wolf, is looking for, but delivered in slightly varying ways by two or three highly qualified, well-regulated and well-managed organisations. Having all one’s eggs in a single basket worries me from the point of view of what happens if it does not work and what happens if you want to change the franchisee.

Amendment 17 would require,

“at least one recognised technical qualification”,

in the outcomes. I very much welcome the fact that standards are to be employer-led. That should ensure that they are focused on skills for which there is a market and which will lead to jobs, but it is also very important to ensure that the needs of the learner or trainee are properly reflected. One of those needs is to acquire portable skills and attainments that are transferable to the different jobs or activities that trainees might move into. Having recognised technical qualifications included in the standards is a way of doing that. Many of those qualifications already exist in the form of NVQs, diplomas and what have you; new ones will no doubt emerge under the new process.

When I used to run employability training programmes for young Londoners not in employment, education or training, we quickly learned the value of including recognised qualifications in our programmes. Many of the young people we worked with had what you might call relatively chaotic lives and did not necessarily follow what might be considered a well-organised career trajectory. The fact that at the end of the programmes they could demonstrate achievement of some specific qualifications, whether in English, communications, basic employment skills, or ASDAN qualifications, which we also used, or health and safety or creative skills, gave them something to work with when it came to taking a new and possibly quite distinct step into a job or a career.

The noble Baroness, Lady Cohen, mentioned that her courses are geared to what employers need, but the employers which tend to be predominant in defining those needs are the larger employers. Very often the requirements do not necessarily reflect the needs and realities of SMEs and the sort of young people seeking jobs in SMEs, as I define them. For that reason, there is great value in the amendment proposed by the noble Lord, Lord Lucas.

[Lord Baker of Dorking (Con)]

My Lords, this is an important part of the Bill because this is how the Government clearly intend the institute to instil some rigour in technical qualifications and apprenticeships. The method they are using is set out fairly clearly. There are two words which need clear definition in this part of the Bill: one is “standards” and the other is “outcomes”.

On standards, as I understand it, you have to choose your occupation. Let us say it is plumbing. The institute would then say, “We are going to do plumbing today”, so it would get a group of plumbers together to determine what the standards should be. Are the standards likely to have labels 1, 2, 3, 4 and 5? I assume that the department has worked out what a standard would look like. Could the Minister give us an example or write to us about it? It does not look as though the department have prepared them. It would be interesting to know what a standard would look like. That is not clear from the Bill.

Then there are outcomes. Can the Minister give us an example of what an outcome would be? Is it the same as on the next page of the Bill, “an approved educational qualification”? What will the outcome be of this operation? Will the institute say, “We have studied all the plumbing qualifications and we think the one from BTEC is the best”? “Outcome” means a specific something so that someone can say, “That is the end of it all”. It would be very helpful to have some explanation of how this system is to work.