Young People: Apprenticeships

Viscount Younger of Leckie Excerpts

Thursday 28th November 2013 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie) (Con)]

My Lords, I welcome the opportunity to set out what the Government are doing to encourage young people to take an apprenticeship. I am most grateful to my noble friend Lady Wilcox for tabling this debate and to noble Lords who have raised some important points. This also gives me particular pleasure because in recent times my noble friend Lady Wilcox served as a BIS Minister in my role.

Apprenticeships are at the heart of the Government’s drive to give people of all ages the skills that employers need to compete in the expanding, competitive global market. As several noble Lords have pointed out, strong returns arise from apprenticeships. As my noble friend Lady Wilcox has said, that is why we have seen a record 1.5 million people start an apprenticeship since 2010.

The fundamental underlying principle of an apprenticeship is that it is a paid job that incorporates on and off-the-job training that leads to nationally recognised qualifications. After investing heavily in an apprentice, it makes business sense for employers to keep employing individuals once their apprenticeship ends. We need to do more to spread the word that apprenticeships are good for the economy, good for business and good for individuals. The noble Lord, Lord Haskel, raised the issue of the Richard review and claimed that the implementation plan had given permission to label any training an apprenticeship. With his other comments, I take issue with him and with the points that the noble Lord, Lord Young, made about the numbers. This is not just a numbers game. Our aim in reforming apprenticeships is to make the programme the new international benchmark for excellence. This is about quality, not number-counting, and we are determined to raise all apprenticeships to the standards of the best so that the programme is rigorous, responsive and meets the changing needs of our economy in the decades to come.

I pay tribute to my noble friend Lord Baker of Dorking for his groundbreaking, unstinting and exciting work on university technical colleges, and in particular his work on addressing the shortages in STEM. The right reverend Prelate the Bishop of Derby raised an interesting point and gave an interesting example about the Rolls-Royce training programme, which we know is one of the very best in the country. He also raised a point about the university technical colleges and the need—

[Lord Young of Norwood Green]

My Lords, I do not like to interrupt, but if we are to pay tribute, as we should, to the noble Lord, Lord Baker, we should also be sure to pay tribute to Lord Dearing. It was a joint initiative of both noble Lords, and he made such a great contribution that I felt it was appropriate to remind the House of it.

[Viscount Younger of Leckie]

The noble Lord, Lord Young, is absolutely right, and I certainly pay tribute to Lord Dearing for the work he did in this area. My overall point is that we need to combine practical training and vocational training, as the right reverend Prelate pointed out, and we very much focus on that, mixed, of course, with the provision of academic study. I should also make the point that there is a shortage of science and engineering skills in this country. Again, the right reverend Prelate alluded to this, and it is very much on our radar that we should look at this in respect of apprenticeships.

Apprenticeships must be high quality, rigorous and focused on what employers need. The reforms we are making will put employers in the driving seat of developing apprenticeships that are more rigorous, more responsive and deliver the right skills. Additional rigour will come from a demand for higher standards that will stretch apprentices by setting higher expectations for achievement in English and maths, requiring more assessment at the end of an apprenticeship, and recognising an apprentice’s achievement through a grading system that ensures excellence that is clearly seen and widely understood. These changes build on those already introduced to raise quality, such as the minimum 12 months duration.

My noble friend Lady Wilcox raised a concern about over-bureaucracy. More responsiveness will be possible from the sweeping away of lengthy, convoluted, unnecessarily complex frameworks to bring in new, short, clear standards that are written by employers, not bureaucrats. Apprenticeships will then be able to focus on the skills and expertise that employers want and need. Reviewing the standards every three years will ensure that they remain relevant. The Government are also taking specific steps to support access to apprenticeships for young people as part of their work to deal with youth unemployment. We want apprenticeships to be held in the same high regard as university degrees. My noble friend Lord Stoneham and the noble Lord, Lord Young of Norwood Green, rightly alluded to this very important point. Young people must be able to choose the right route to the skills and knowledge they need for their career. Careers advice and guidance at the right time have never been so important. It is crucial that schools, colleges and universities play their part alongside the National Careers Service in inspiring and helping young people to make those choices. The noble Lord, Lord Aberdare, spoke about the importance of schools taking responsibility for promoting apprenticeships. If time permits, I should like to say more about the careers advice questions that were asked during the debate.

Apprenticeships must also be open to all. Not all young people leave school ready for the demands of an apprenticeship. I paid tribute earlier to the work done by my noble friend Lord Baker and Lord Dearing on university technical colleges. We have also introduced traineeships which enable 16 to 23 year-olds to develop the skills, experience and confidence they need to compete for an apprenticeship. Higher apprenticeships provide opportunities for able young people to undertake apprenticeship training at a level equivalent to a degree. It is precisely because apprenticeships must be open to all that the Government cannot create an “entitlement”, or a guarantee, that an apprenticeship will be available for every young person who would like one. Recruitment decisions must rest with employers for apprenticeships as much as for other jobs. Through the Education Act 2011, we have prioritised apprenticeship funding for vulnerable young people—those aged 16 to 18 and those aged 19 to 24 who have a learning difficulty or disability, or who have been in local authority care when they have found a place. This guarantee has priority over funding for other places in line with our focus on supporting vulnerable groups in all areas.

My noble friend Lord Addington, supported by my noble friend Lord Cormack, referred to vulnerable groups—my noble friend Lord Addington focused particularly on those with dyslexia—and exclusion in relation to apprenticeships. I reassure them by saying that all apprenticeships stretch and prepare individuals for sustained employment. Dyslexia should not present an insuperable barrier to those candidates who demonstrate competence and commitment in their chosen field. Access to Work and Additional Learning Support are two possible sources of funding to help provide equipment or other assistance for apprentices with dyslexia. The Government certainly recognise that there is more to be done to support apprentices with learning difficulties or disabilities and we aim to improve the operation and delivery of apprenticeships without jeopardising the standards that make them so valuable to apprentices and employers. I would be delighted to meet my noble friend Lord Cormack and the organisations that he mentioned, should that still be appropriate.

We fully fund apprenticeship training for 16 to 18 year-olds. This reflects the fact that they are likely to need more supervision and support initially and take longer to become fully productive in the workplace. For all young people, the National Apprenticeship Service—NAS for short—works with organisations that provide careers advice to make sure the benefits and demands of an apprenticeship, including what employers look for when recruiting, are understood and can be fully explained to the young people with whom the organisations work. NAS also provides an online apprenticeship vacancies job site. Between 12,000 and 20,000 vacancies are on the site at any time and can be accessed in a number of ways convenient to young people, including through Facebook, Twitter and apps for iPhones and Android phones.

My noble friend Lady Wilcox made a very valid point about the esteem of apprenticeships. Apprenticeships are something to aspire to and apprentices should be awarded recognition for their work just as graduates are. As I have said, our goal is to see an apprenticeship place valued equally to one at university. Celebrating success is so important to this. National Apprenticeship Week 2014, on 3 to 7 March, is an excellent opportunity to do just that. I know that all noble Lords will lend cross-party support when the time comes.

Apprenticeships are also promoted at large-scale events, including the Skills Show in Birmingham this month. More than 80,000 people attended that and large numbers of young people took up the offer to “have a go” at more than 40 different skills offered at different stands. The show is now going nationwide with 220 local events planned between now and December 2014. Organisers expect that more than 200,000 young people will attend the events. This shows that there is keen interest in skills and apprenticeships.

My noble friend Lady Wilcox, supported by the noble Lord, Lord Aberdare, and the right reverend Prelate the Bishop of Derby raised the issue of the careers service, and asked particularly how the new careers service is performing. They raised the issue of careers advice at schools and the important point as to whether options other than university are provided and discussed. As part of the new agenda, the National Careers Service will work with schools, colleges and employers to bring greater cohesiveness to careers guidance. We want these new arrangements to be in place from October 2014 when the new National Careers Service contracts will start.

The noble Lord, Lord Stoneham, raised the issue of apprentices in the public sector and the need for more transparent data on this. We do not currently measure a breakdown of apprenticeships in the public and private sectors. However, the fast-track Civil Service apprenticeships scheme was launched in October and is taking 100 18 to 21 year-olds through a two-year apprenticeship. At the end of the scheme they will, if successful, have earned a higher level qualification at level 4. We do intend to expand the scheme for another cohort, which we hope will be launched in early 2014. In addition, Civil Service Learning is currently working with its prime contractor to put in place a single provider or a consortium to offer to partners an easier way of sourcing apprenticeship services.

The right reverend Prelate the Bishop of Derby and my noble friend Lady Wilcox raised the issue of learning to be good citizens as well as gaining skills for work. National Citizen Service is a life-changing experience open to all 16 and 17 year-olds across England. It is a unique three-week full-time programme of fun and discovery that benefits both young people and society. Participants build skills for work and life while taking on new challenges and adventures and learning new skills and making new friends. Taking place outside school and term time, the part-residential programme is made up of four sections that focus on personal and social development, including leadership, teamwork and communication. This works alongside the apprenticeship reforms, so I am pleased to mention it.

My noble friend Lord Shipley raised the important point about the need for more apprenticeships in engineering and manufacturing, a point to which I alluded earlier. The new higher apprenticeships are available or are in development in sectors including construction, advanced engineering, engineering environmental technologies, energy and utilities including water and waste, and space engineering. It is important to articulate to young people the career opportunities in STEM-based occupations via STEM apprenticeships.

Time has pretty well run out.

[Lord Young of Norwood Green]

Before the Minister sits down, if time does not allow a response now, I should welcome a written reply on the question of public procurement contracts and apprenticeships and on the question of encouraging group training associations and ATAs.

[Lord Haskel]

Before the Minister sits down, will the Government take steps to rationalise the 48 schemes identified by the CBI from three government departments all of which can apparently be referred to as apprenticeships?

[Viscount Younger of Leckie]

In answer to the question of the noble Lord, Lord Haskel, I shall be happy to write to him. In answer to the question of the noble Lord, Lord Young, on public procurement, the Government support the appropriate use of apprenticeships in procurement as they can contribute to encouraging growth in the UK economy. I shall look at his question in Hansard to see whether we can produce a fuller answer to it.

In conclusion, I urge noble Lords to support apprenticeships, as I know they all will, and to support the reforms that the Government are making to them.