Institute for Apprenticeships and Technical Education (Transfer of Functions etc) Bill [HL]

Debate between Lord Lucas and Baroness Smith of Malvern

Committee stage
Thursday 21st November 2024 Grand Committee

[Lord Lucas (Con)]

My Lords, I share many of the concerns expressed by noble Lords. The Bill should by no means leave the House in the state in which it entered it. It is important that whatever body Skills England occupies has a great deal more status than the Government have proposed. I just do not think that what they have proposed will ever work in Whitehall. We need to take more care with the preservation of the relationships that have been established by IfATE, which make it work so well. I do not see anything in the transition proposed here that does that and, as I said at Second Reading, I would like to know what is going to happen to the Careers & Enterprise Company.

[The Minister of State, Department for Education (Baroness Smith of Malvern) (Lab)]

I thank noble Lords for their broad enthusiasm for Skills England that we heard on this first set of amendments. I hope my response will reassure noble Lords not only that the intention behind the legislation is precisely to transfer functions from IfATE into Skills England—legislatively, that needs to be done via the Secretary of State—but that, furthermore, Skills England is already making an impact on the types of issues that have been identified in the debate. Legislation is important, but it does not always drive action. This Government’s absolute commitment to bringing the current fragmented landscape together has enabled us to make progress already, which I will outline for noble Lords.

The Institute for Apprenticeships and Technical Education has worked closely with employers to develop, approve, review and revise apprenticeships and technical qualifications. It is important to acknowledge IfATE’s achievements, most notably to develop and revise a suite of more than 700 high-quality occupational standards across sectors.

However, despite IfATE’s success in embedding employers into the processes for designing technical qualifications and apprenticeships, the wider skills system remains too fragmented and complex. It is insufficiently responsive to the present and future skills needs of the economy.

To address this fragmentation and unlock the potential for skills which drive growth and widen opportunity, we are creating a single organisation—Skills England. On the point sort of implied by some people that Skills England is, in some way, just a figment of Ministers’ imagination, I reassure noble Lords that it is not just the Department for Education; it is already operational in shadow form. Noble Lords may remember its announcement by the Prime Minister in July, which was one of the earliest actions of this Government. It is already driving change in the way that skills gaps are identified and how key organisations are working together to fill them.

On 24 September, Skills England published its first report, Driving Growth and Widening Opportunities, which provides an authoritative assessment of the key skills challenges that limit growth and opportunity, and an initial assessment of the skills needs in the economy. It also laid out its ambitions for the way in which it would operate, for noble Lords and others to read.

Over the coming months, Skills England will continue to work closely with government departments and relevant stakeholders to expand on the initial assessments of skills needs within 10 particular sectors, both identified in the industrial strategy and because they need quick action. Skills England will continue to develop a detailed, consistent approach to skills measurement and cement its position as the single authoritative voice on skills needs in the economy, which should be addressed to support growth and opportunity.

As I say, Skills England is already working across government. It is working with the industrial strategy advisory council to support the industrial strategy. Regarding when Skills England will broadly take on functions currently delivered by IfATE, it is our intention to lay commencement regulations promptly following Royal Assent to bring into force the provisions that transfer IfATE’s functions, along with its assets and liabilities. Skills England is already operational, and we are determined to ensure that there is no delay in enabling it to become even more effective.

The noble Lord, Lord Aberdare, referenced the Government’s post-16 education and skills strategy, which we are currently working on. I talked about the broad principles of the strategy at the Association of Colleges conference last week. We will publish a broad framework for that relatively soon, with further detail at the beginning of next year.

Skills England will provide an authoritative assessment of skills needs in the economy. It will then use those data and insights to develop and maintain a comprehensive suite of technical qualifications and apprenticeships. As I said, it is already working with key stakeholders to ensure that the identified need and available training are reflected in local and regional skills systems. In response to the noble Baroness, Lady Barran, who argued that it would be appropriate to run Skills England and IfATE concurrently, that would very much lose the benefit that comes from bringing those functions together so that the available training and qualifications that are developed exactly reflect the analysis that Skills England will be in a better place to do. Skills England will take on functions currently delivered by IfATE, delivering them alongside and in line with its broader strategic purpose. In doing so, it will ensure that the system becomes more responsive and better able to quickly and efficiently supply the skills most needed by the economy.

We intend to establish Skills England as an executive agency of the Department for Education. In our debates on the Bill so far, and in Amendment 33 in the name of the noble Baroness, Lady Barran, it has been suggested that Skills England should instead be established as a statutory body. I reassure the Committee that we have considered carefully the risks, opportunities and benefits of different models, to understand from the beginning how the organisation will be successful.

Thanks to the progress that IfATE itself has driven, the system for developing technical qualifications and apprenticeships has matured since IfATE was established in 2017. However, as I said, at the same time we have seen a growing severity in the skills challenges the economy faces. We need Skills England to be a different type of organisation, to support the Government’s growth and opportunity missions. Working as an executive agency, Skills England will balance on the one hand the need for rapid action and independent objective analysis of skills gaps and on the other—this was the point made by the noble Lord, Lord Johnson—proximity and clear links into central government to inform decision-making. This is an appropriate balance of independence and the ability to drive at speed what all noble Lords have argued is the impact that we need Skills England to have.

Skills England will, as with any arm’s-length body, be subject to the highest standards of governance and transparency, including any relevant requirements for review. I will come to some of the questions raised on that in a moment.

Clause 1 introduces Schedule 1, which transfers functions to the Secretary of State and will therefore enable Skills England to take on and deliver functions currently delivered by IfATE, alongside other functions as appropriate, in line with its strategic purpose. This will help address the fragmentation that is holding the system back and restricting improved workforce development and productivity gains.

Clause 2 introduces Schedule 2, which makes provision for a transfer scheme to transfer IfATE’s property, rights and liabilities smoothly to the Secretary of State. It will ensure functional continuity of property, rights and liabilities, including the many contracts that are critical to the operation of the skills system, and it will set a firm basis for the operation of Skills England.

Sex and Gender: Official Data

Debate between Lord Lucas and Baroness Smith of Malvern

Tuesday 5th November 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

The first part of the review has been received by the Government, who are currently considering it. I undertake to come back to this House with a response to that.

[Lord Lucas (Con)]

My Lords, do the Government have a working definition of gender and gender identity and, if so, could they share it with the House?

[Baroness Smith of Malvern (Lab)]

The noble Lord would be well advised to look at the Equality Act, for example. I have to say that this would be a better debate if we spent more time worrying about how we provide services and account for people’s needs, and less about how we catch our political opponents out.

Higher Education Reform

Debate between Lord Lucas and Baroness Smith of Malvern

Tuesday 5th November 2024 Lords Chamber

[Baroness Smith of Malvern (Lab)]

I understand my noble friend’s point about young people, particularly those from less well-off backgrounds, being worried about their student debt. We all, therefore, have a responsibility to continue pointing out that this is a very different type of debt to a credit card or another form of loan. There is no upfront payment for their university education, and their repayment is dependent on their level of income; and if that is not paid off at the end of the period of the loan, it will be written off completely; that is a very different category of debt. I understand her point, which is why I can give her the commitment that we will prioritise, as part of the reform programme we will work on, how we improve participation, how we close that gap, so that disadvantaged students can achieve the ability to go to university when that is something that they want to do and they have the ability, and we will ensure that their experience when at university makes them more likely to continue and be successful.

[Lord Lucas (Con)]

My Lords, I too welcome the Statement and look forward to the ideas that are coming forward over the next few months. The Secretary of State said:

“I heard too often from students of the gap between the course they were promised and the experience they had”.

In that context, will the Government encourage universities to give much better information to students about what courses lead to and what jobs and careers their students go on to from each course? At the moment, it is extremely thin, and it is very hard for a student, who will after all invest a large amount of money, to see whether a particular course actually does lead on to the career that they hope to follow.

Secondly, the Secretary of State said she had heard from international students that they felt “neither valued nor welcomed”. Will the Government, therefore, put their weight behind the British Council’s excellent Alumni UK initiative, which would give international students a real and lifelong sense of belonging to the UK, with real, lifelong practical benefits and connections? It would considerably benefit this country, but it seems to me that universities are being very slow to sign up at the moment.

Lastly, in deciding to increase fees, did the universities provide evidence of why it costs them 50% more than a sixth form college to educate a student when universities provide less contact time and less pastoral care by a considerable margin? If they provided that information, will the Government share it with the House?

[Baroness Smith of Malvern (Lab)]

The noble Lord is right in his demand and his expectation that universities need to improve the information that they provide for students about the course and about potential progression. That is an important area that we will want to work with the sector on improving.

On international students, I would strongly support anything that enables international students to maintain their contact with the university and with the country. One of the big benefits of our ability to attract international students is precisely that, for example, nearly 60 world leaders are former students at UK universities. That is an enormous amount of soft power, as well as very strong relationships that have been built up, and I would support any initiative that ensures that continues.

On the noble Lord’s final point, one of the first things that we did in government was to ask the Office for Students to focus more clearly on identifying the financial situation of universities. I cannot say that, at this point, we have the metrics around the value for money that the noble Lord is asking for, but that is one of the areas where, in terms of the efficiency work, we need to have much better transparency within the sector about how money is being spent, how it is being allocated, for example, between research and teaching and how that then results in student experience. That will be one of the things we expect to see.