Apprenticeships

Lord Macdonald of Tradeston Excerpts

Wednesday 26th March 2014 Lords Chamber

[Lord Macdonald of Tradeston (Lab)]

My Lords, in his Budget Statement the Chancellor said,

“we have doubled the number of apprenticeships, and I will extend the grants for smaller businesses to support over 100,000 more”.—[Official Report, Commons, 19/4/14; col. 789.]

That is, of course, welcome news. It builds on the progress made by previous Labour Governments and strengthens the cross-party consensus on the importance of vocational training.

As other noble Lords have already argued, more needs to be done, but we have surely come a long way since the 1990s, when apprenticeships were in danger of dying of neglect. By the time Labour left office in 2010, apprenticeships had increased significantly to almost 500,000. The forecast for this year is 931,000, for apprentices of all ages. While respecting the caveats of my noble friend Lord Young regarding the statistics, under Labour and now the coalition, apprenticeships are again being given the priority that they deserve.

I thank my noble friend and fellow engineer Lord Young for initiating this debate. I speak on the subject fondly, having served a five-year engineering apprenticeship after leaving school at 15. It is a rare pleasure, as my noble friend Lord Martin said, to speak in the company of two other time-served Glasgow craftsmen.

The focus tonight is on 16 to 18 year-olds and how best to improve the number and quality of the apprenticeship opportunities on offer. That concern is understandable. While those of my generation started their apprenticeships at 16, most of our recent successes have been in placements for those aged 19 and over. Remarkably, as has been mentioned, many of the new apprentices are over the age of 24, as my noble friend Lord Young highlighted.

The time served has gone down from five years to perhaps just one year, a minimum length introduced in 2012 to strengthen the quality and standard of training. On the positive side, while apprenticeships were once largely in manufacturing and almost exclusively male, today I am told that half the new apprenticeships are won by women. I say “won” because I read that the demand for places is 12 times the number of jobs on offer.

Other major changes are in the range of the jobs on offer. The top sector now for new apprentices is business, administration and law, which makes up 31% of the total. Next comes the health, public services and care sector with 24%, then retail and commercial enterprise with 20%. The traditional apprenticeship sector, engineering and manufacturing technologies, is in fourth place with 13%. However, that equates to 66,000 new apprentices, which is not negligible.

The breadth of these sectors, across both public services and private companies, offers job opportunities to applicants from very diverse backgrounds and with different attributes and educational qualifications. In our rapidly changing economy, this change in the nature of apprenticeships is both inevitable and largely positive. However, the particular problems of 16 to 18 year-olds remain a concern. In 2012-13 the number of apprentices from this age group was marginally lower than it was back in 2009-10. This may be explained in part by the requirement introduced last year for young people to be in education or training until they are 17—that age will be raised to 18 next year. On the plus side, the youth contract for 16 to 17 year-olds, launched in 2012, offers employers an enhanced grant of £2,200 per annum per head for each new recruit not in education, employment or training—the NEETs. The Government also forecast a boost in apprenticeships for 16 to 18 year-olds this year, up from 179,000 to 257,000. That is quite a jump so I hope that they hit that target.

Your Lordships will be aware that many 16 to 18 year-olds would like nothing more than a job in our creative industries, where talent, drive and creativity often trump academic qualifications. The appeal is even greater when the commercial creative industries have a growth rate much higher than the rest of the UK economy. These creative industries are now estimated to make up almost 5% of all UK employment. The subset of arts and culture inside the creative industries employs more than 100,000 people directly and another 150,000 indirectly. However, at a meeting of the Performers’ Alliance here in Parliament yesterday, actors, musicians and writers complained that the recent changes to the curriculum in English schools meant that the teaching of arts and cultural subjects was suffering from the Department for Education’s emphasis on science, technology and engineering—the so-called STEM subjects. In a debate in your Lordships’ House last week, the accusation was made that music and drama classes were being cut back severely and that the number taking art GCSE had fallen by 14% between 2010 and 2013.

The fear is that pupils who might not aspire to university could be denied the creative input that might help them into an arts-related job on leaving school. Looking at the figures produced by the Government, apprenticeships for arts and culture jobs seem surprisingly limited—just 1,000 out of a total of 500,000. I know that there are many excellent skills programmes in the creative sector but they are often skewed towards highly qualified graduates and well connected interns. The initiatives of the Arts Council, UK Music and the BBC to offer more accessible apprenticeships are welcome but still number only in the hundreds. Does the Minister think there is a particular problem with availability of apprenticeships in the creative industries, and what measures might be taken to ensure that they increase in number and are made more accessible to those from less privileged backgrounds, especially for 16 to 19 year-olds?