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

Amanda Hack Excerpts

2nd reading
Tuesday 25th February 2025 Commons Chamber

[Amanda Hack (North West Leicestershire) (Lab)]

I welcome the introduction of this Bill as a clear indication that we are giving apprenticeships the support and recognition they deserve. I started my professional career at a training and enterprise council—a TEC—and, once upon a time, I used to sign off training contracts for apprenticeships. It was always a pleasure to speak to young people at the start of their future, so I know at first hand how needed the Bill is for the FE sector, employers and young people, and it is incredibly exciting to have this back on the agenda.

For the last 14 years, there has simply been no strategic direction. The partnership between Jobcentre Plus, FE colleges, employers and the workforce has been slowly eroded, and it is clear that we need a reset. The one in eight young people currently not in training, education or employment need that reset, and apprenticeships are a part of that agenda. This Bill paves the way for the establishment of Skills England, giving it the tools to perform its new role and delivering on our commitment to assess and address the existing skills gap and identify where training can be utilised for new growth.

Since the apprenticeship levy was first introduced by the Conservatives in 2017, we have had a decline in the growth of training in all areas where we actually need it. The new growth and skills levy being introduced will replace the old system and include a new foundation apprenticeship that gives young people a route to careers in critical sectors, enabling them to earn a wage while developing their skills. It will also allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system. I have honestly lost count of the amount of employers who have asked for changes to the apprenticeship levy, and, under Labour, we will deliver.

We are clear about our strategy and that it must be cross-departmental. We are already opening homebuilding skills hubs to deliver fast-track training to apprentices so that we can meet our target of 1.5 million new homes being built. It is clear that Labour has done this before, and we will do it again. More than two decades ago, the regional development agencies understood the challenges in their regions and funded training for sectors where there were skills shortages. I was proud of the very small role I played in setting up a construction academy and providing a boost to HGV driver training in partnership with leaders in FE, the private sector and local authorities, all funded by the East Midlands Development Agency.

Stephenson College in my constituency is a key organisation locally that serves my community. It has a strong role as an anchor organisation, and we should not forget that. It has fantastic facilities for learning and has created an environment for young people to grow and thrive, but it has not been easy. Like so many FE colleges, it has been put under huge financial pressure in recent years. We have to ensure that our colleges are financially sustainable in the long term, and I welcome the recent additional funding for the sector while recognising that there is so much more to do.

There is also a role for Skills England to support constituencies in areas that do not yet have devolved powers. My constituency of North West Leicestershire does not have a devolution deal, but we have just as much potential to grow as everywhere else, and key engagement with local authorities, the chambers of commerce and local employers, as well as the FE and HE sector, will be key in delivering that growth.

Within our approach, we must ensure that we are putting a lot of thought into how regions can work together, so that if we move across boundary lines, we are still met with the same funding and unconditional support. We will drive that ambition as a Government to meet our targets—to go bigger and better than before, ensuring that our legislation has the greatest impact possible. I look forward to the continued conversations on the shaping of Skills England, enabling our young people to develop the skills they need for the future.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.